Earnings Conference Call 3 rd Quarter 2022 November 3, 2022 IDACORP. Forward-Looking Statements In addition to the historical information contained in this presentation, this presentation contains (and oral communications made by IDACORP, Inc. and Idaho Power Company may contain) statements, including, without limitation, earnings guidance and estimated key operating and financial metrics, that relate to future events and expectations and, as such, constitute forwardlooking statements within the meaning of ...

Financial Data and Key Metrics Changes - IDACORP's Q3 2022 earnings per diluted share were $2.10, an increase of $0.17 from the previous year, driven by customer growth, weather, and a midyear regulatory order, partially offset by higher costs [5][6] - Year-to-date earnings per diluted share reached $4.28, up $0.08 from the first nine months of the previous year [5] - The company raised its full-year 2022 earnings guidance by $0.10 to a range of $5.05 to $5.15 per diluted share, marking the 15th consecutive year of earnings per share growth [6][42] Business Line Data and Key Metrics Changes - Customer growth for Idaho Power was 2.5% year-over-year for the 12 months ending September 30, contributing positively to operating income [8][22] - Higher weather-related usage resulted in a 7% increase in usage per residential customer, a 5% increase for commercial customers, and a 10% increase for irrigation customers compared to Q3 of the previous year [25][26] - Operating income was negatively impacted by higher operating and maintenance expenses and net power supply expenses not deferred for future recovery [22][30] Market Data and Key Metrics Changes - The economy in the Idaho Power service area is projected to grow, with GDP growth estimates of 1.9% for 2022 and 3.4% for 2023, while unemployment stands at 3%, below the national average [10] - The company anticipates significant commercial and industrial growth, with a projected annual peak demand growth rate increasing from 2.1% to 4.8% in the upcoming Integrated Resource Plan (IRP) [24][42] Company Strategy and Development Direction - IDACORP is focusing on significant infrastructure investments, including battery storage and solar facilities, to meet anticipated load growth [13][15] - The company plans to file a general rate case in Idaho within the next 12 months to recover costs associated with infrastructure investments [16][17] - A dividend increase of 5.3% was announced, marking 12 consecutive years of dividend growth, reflecting strong financial performance [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer growth despite signs of recession-like conditions in the housing market, noting that a housing price reset could improve affordability [23][24] - The company is committed to managing costs effectively in the face of inflationary pressures and anticipates a moderation in O&M cost increases for 2023 [51][43] - Future capital expenditures are expected to increase due to inflation and the need to address capacity deficits [38][39] Other Important Information - The company reported a 55% increase in capital expenditures on a cash basis compared to the first nine months of the previous year, primarily for large battery storage projects [35] - IDACORP maintains a strong balance sheet and liquidity, with solid investment-grade credit ratings [39][40] Q&A Session Summary Question: Insights on O&M guidance expectation for 2023 - Management indicated that they do not expect the same level of increase in O&M costs for 2023 as seen in 2022, focusing on cost management and efficiency [50][51] Question: Clarification on the 5-year capital plan and incremental capital needs - Management clarified that the $400 million figure for resource deficits was based on the 2021 IRP, and new growth assumptions will lead to an updated CapEx forecast in February [52][55]

[Part I. Financial Information](index=7&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for IDACORP, Inc. and Idaho Power Company, including income, balance sheet, cash flow, and equity statements, with detailed notes on accounting policies and regulatory matters [IDACORP, Inc. Financial Statements](index=7&type=section&id=IDACORP%2C%20Inc.%20Financial%20Statements) IDACORP reported increased net income and diluted EPS for Q3 and nine months 2022, with total assets growing to $7.52 billion IDACORP, Inc. Condensed Consolidated Statements of Income (in thousands, except per share amounts) | | Three months ended Sep 30, 2022 | Three months ended Sep 30, 2021 | Nine months ended Sep 30, 2022 | Nine months ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues (in thousands)** | $518,012 | $446,944 | $1,221,023 | $1,123,072 | | **Operating Income (in thousands)** | $128,224 | $124,192 | $270,398 | $277,705 | | **Net Income Attributable to IDACORP, Inc. (in thousands)** | $106,380 | $97,897 | $216,928 | $212,752 | | **Earnings Per Share - Diluted** | $2.10 | $1.93 | $4.28 | $4.20 | IDACORP, Inc. Condensed Consolidated Balance Sheet Highlights (in thousands) | | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total current assets (in thousands)** | $659,668 | $595,873 | | **Property, plant and equipment - net (in thousands)** | $5,077,507 | $4,901,822 | | **Total Assets (in thousands)** | $7,523,945 | $7,210,515 | | **Total current liabilities (in thousands)** | $475,422 | $325,624 | | **Long-Term Debt (in thousands)** | $2,071,402 | $2,000,640 | | **Total IDACORP, Inc. shareholders' equity (in thousands)** | $2,778,298 | $2,668,436 | | **Total Liabilities and Equity (in thousands)** | $7,523,945 | $7,210,515 | IDACORP, Inc. Condensed Consolidated Statements of Cash Flows Highlights (Nine months ended, in thousands) | | Sep 30, 2022 | Sep 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities (in thousands)** | $268,975 | $303,407 | | **Net cash used in investing activities (in thousands)** | $(290,383) | $(167,619) | | **Net cash provided by (used in) financing activities (in thousands)** | $32,394 | $(111,232) | | **Net increase in cash and cash equivalents (in thousands)** | $10,986 | $24,556 | [Idaho Power Company Financial Statements](index=14&type=section&id=Idaho%20Power%20Company%20Financial%20Statements) Idaho Power Company reported increased net income for Q3 and nine months 2022, driven by higher operating revenues and asset growth Idaho Power Company Condensed Consolidated Statements of Income (in thousands) | | Three months ended Sep 30, 2022 | Three months ended Sep 30, 2021 | Nine months ended Sep 30, 2022 | Nine months ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues (in thousands)** | $517,101 | $446,353 | $1,218,690 | $1,120,979 | | **Operating Income (in thousands)** | $127,690 | $124,179 | $269,942 | $277,359 | | **Net Income (in thousands)** | $104,532 | $98,222 | $213,181 | $211,414 | Idaho Power Company Condensed Consolidated Balance Sheet Highlights (in thousands) | | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets (in thousands)** | $7,346,459 | $6,990,839 | | **Long-Term Debt (in thousands)** | $2,071,402 | $2,000,640 | | **Total Equity (in thousands)** | $2,565,552 | $2,464,302 | Idaho Power Company Condensed Consolidated Statements of Cash Flows Highlights (Nine months ended, in thousands) | | Sep 30, 2022 | Sep 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities (in thousands)** | $294,087 | $278,036 | | **Net cash used in investing activities (in thousands)** | $(277,796) | $(179,732) | | **Net cash provided by (used in) financing activities (in thousands)** | $35,462 | $(108,018) | [Notes to Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, regulatory matters like the Bridger Order, revenue disaggregation, debt, and derivative instruments - The Bridger Order, approved in June 2022, allows Idaho Power to accelerate depreciation and recover costs for the Jim Bridger plant through 2030, resulting in an increase in net income of approximately **$15 million** for the first nine months of 2022[69](index=69&type=chunk)[71](index=71&type=chunk) - Idaho Power is deferring costs related to its Wildfire Mitigation Plan (WMP) for future recovery, with a deferred amount of **$20.6 million** as of September 30, 2022, and an additional estimated **$16 million** filed for deferral in October 2022[72](index=72&type=chunk)[73](index=73&type=chunk) - In March 2022, Idaho Power entered into a two-year, **$150 million** senior unsecured delayed draw term loan facility for general corporate purposes, which was fully drawn and outstanding as of September 30, 2022[85](index=85&type=chunk) - Idaho Power uses derivative instruments, primarily physical and financial forward contracts for electricity and fuel, to manage commodity price exposures, with unrealized gains or losses recorded as regulatory assets or liabilities as these instruments are not designated as cash flow hedges[111](index=111&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2022 net income drivers, capital expenditure plans, regulatory developments, and liquidity, highlighting customer growth and O&M expenses Reconciliation of Net Income Attributable to IDACORP, Inc. (in millions) | | Three months ended | Nine months ended | | :--- | :--- | :--- | | **Net income attributable to IDACORP, Inc. - Sep 30, 2021 (in millions)** | **$97.9** | **$212.8** | | Customer growth (in millions) | $3.6 | $9.4 | | Usage per retail customer (in millions) | $12.6 | $(3.1) | | Retail revenues per MWh (in millions) | $10.6 | $15.9 | | Other O&M expenses (in millions) | $(12.9) | $(31.5) | | Depreciation expense (in millions) | $(1.8) | $5.8 | | **Total increase in Idaho Power net income (in millions)** | **$6.3** | **$1.8** | | Other IDACORP changes (net of tax) (in millions) | $2.2 | $2.3 | | **Net income attributable to IDACORP, Inc. - Sep 30, 2022 (in millions)** | **$106.4** | **$216.9** | - Customer count grew by **2.5%** for the twelve months ended September 30, 2022, contributing to higher operating income and driving the need for substantial capital investments due to anticipated continued growth from large commercial and industrial customers[160](index=160&type=chunk)[164](index=164&type=chunk) - Other O&M expenses increased by **$12.9 million** in Q3 2022 and **$31.5 million** year-to-date, primarily due to inflationary pressures on labor, services, and supplies, as well as scheduled maintenance at several power plants[168](index=168&type=chunk)[177](index=177&type=chunk)[215](index=215&type=chunk) - The company anticipates capital expenditures of up to **$2.8 billion** from 2022 through 2026 to support customer growth and infrastructure needs, with management likely to file a general rate case in Idaho within the next twelve months to recover these investments[160](index=160&type=chunk)[219](index=219&type=chunk)[266](index=266&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company details exposures to interest rate, commodity price, and credit risks, including potential impacts on earnings and collateral requirements - A hypothetical one percentage point increase in average variable interest rates would decrease annual pre-tax earnings by approximately **$0.9 million**[332](index=332&type=chunk) - If Idaho Power's credit rating were downgraded to below investment grade, it could be required to post approximately **$47.7 million** in additional collateral for its wholesale commodity and derivative contracts[245](index=245&type=chunk)[336](index=336&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures with no material changes to internal control over financial reporting - Management for both IDACORP and Idaho Power concluded that their respective disclosure controls and procedures were effective as of the end of the period covered by this report[340](index=340&type=chunk)[341](index=341&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the companies' internal controls[342](index=342&type=chunk) [Part II. Other Information](index=67&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) No material legal proceedings were reported for the period - There are no material legal proceedings to report[344](index=344&type=chunk) [Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2021, indicating no material changes[345](index=345&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock during Q3 2022, with dividend restrictions detailed in Note 6 - IDACORP did not repurchase any of its common stock during the third quarter of 2022[347](index=347&type=chunk) [Defaults Upon Senior Securities](index=67&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - There were no defaults upon senior securities during the period[349](index=349&type=chunk) [Mine Safety Disclosures](index=67&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are provided in Exhibit 95.1 as required by the Dodd-Frank Act - Mine safety disclosures are provided in Exhibit 95.1, as required by Section 1503(a) of the Dodd-Frank Act[350](index=350&type=chunk) [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) No other information was reported for the period - There is no other information to report for the period[352](index=352&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files

IDACORP, Inc. (NYSE:IDA) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Justin Forsberg - Director, IR and Treasury Lisa Grow - President and CEO Brian Buckham - SVP and CFO Adam Richins - COO Conference Call Participants Julien Dumoulin - Bank of America Brian Russo - Sidoti Anthony Crowdell - Mizuho Operator Welcome to IDACORP's Second Quarter 2022 Earnings Conference Call. Today's call is being recorded and a webcast is live. A replay will be available later today and for ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q | ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | | | --- | --- | --- | | | EXCHANGE ACT OF 1934 | | | | For the quarterly period ended June 30, 2022 | | | | OR | | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | | | | EXCHANGE ACT OF 1934 | | | | For the transition period from __________ to __________ | | | | Exact name of registrants as specified | I.R.S. ...

Financial Data and Key Metrics Changes - IDACORP's Q1 2022 earnings per diluted share were $0.91, an increase of $0.02 from the same quarter last year, marking the highest first-quarter results in over two decades [7] - The company affirmed its full-year 2022 earnings guidance estimate to be in the range of $4.85 to $5.05 per diluted share, assuming normal weather conditions [8][40] - Operating income increased by $3 million due to customer growth, with a total increase in operating income of $9.3 million attributed to combined usage changes [28][29] Business Line Data and Key Metrics Changes - Customer growth in the Idaho Power service area was 2.6% year-over-year, with significant new connection requests from large load customers [10][12] - Increased economic activity led to a 4% rise in commercial customer usage and a 5% increase in industrial customer usage [29] - Operating and maintenance expenses increased by $6.4 million, returning to more normal levels after an abnormally low first quarter last year [34] Market Data and Key Metrics Changes - The unemployment rate in the Idaho Power service area is at 2.7%, significantly lower than the national average of 3.6% [11] - GDP growth is forecasted at 2.4% for 2022 and 5.1% for 2023, indicating sustained economic growth in the region [11][60] Company Strategy and Development Direction - IDACORP aims to achieve 100% clean energy by 2045, with plans to end coal operations at the Jim Bridger power plant by 2028 [16] - The company is pursuing a new rate class for large-scale cryptocurrency mining customers to mitigate financial risks [14] - IDACORP plans to invest over $400 million in capital expenditures from 2022 through 2025 to address projected capacity deficits [22] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures are impacting operating and maintenance expenses, but they remain committed to keeping these expenses relatively flat [42] - The company is monitoring weather conditions closely, with projections indicating warm and dry conditions for the summer, which could affect electricity demand [25][70] - Management expressed confidence in the continued growth of the customer base and economic activity in the service area [10][28] Other Important Information - IDACORP's first-quarter capital expenditures increased by 33% compared to the same period last year, primarily for battery storage projects and natural gas plant upgrades [36] - The company has a strong balance sheet and liquidity position, enabling it to fund its growing capital expenditures and maintain its dividend plan [38] Q&A Session Summary Question: Discussion on cryptocurrency tariffs and potential off-takers - Management indicated ongoing conversations with cryptocurrency companies but noted challenges in reaching agreements that meet all parties' needs [46][47] Question: Impact of inflation on operating and maintenance expenses - Management confirmed that inflation is putting pressure on expenses but is maintaining guidance for O&M costs [54] Question: Customer growth trends and supply chain disruptions - Management acknowledged that supply chain issues may be affecting customer growth but emphasized ongoing construction activity in the area [58] Question: Outlook for irrigation season and electricity demand - Management noted that hot and dry conditions are generally good for load, but they are monitoring water availability closely [61][70] Question: Financing additional capital expenditures - Management discussed the potential use of IDACORP's balance sheet to support capital expenditures, emphasizing a cautious approach to equity issuance [75][76]

Earnings Conference Call 1 st Quarter 2022 IDACORP May 5, 2022 Forward-Looking Statements In addition to the historical information contained in this presentation, this presentation contains (and oral communications made by IDACORP, Inc. and Idaho Power Company may contain) statements, including, without limitation, earnings guidance and estimated key operating and financial metrics, that relate to future events and expectations and, as such, constitute forwardlooking statements within the meaning of the Pr ...

[Commonly Used Terms](index=4&type=section&id=Commonly%20Used%20Terms) This section provides a glossary of abbreviations and terms for report clarity [Cautionary Note Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks and uncertainties, and actual results may differ - Forward-looking statements are not guarantees of future performance and involve estimates, assumptions, risks, and uncertainties[14](index=14&type=chunk) - Factors that could cause actual results to differ materially include regulatory decisions, ongoing impacts of COVID-19, changes in growth patterns, severe weather, and cyber-security attacks[15](index=15&type=chunk) - The companies disclaim any obligation to publicly update forward-looking information, except as required by applicable law[17](index=17&type=chunk) [Part I. Financial Information](index=7&type=section&id=Part%20I.%20Financial%20Information) This part presents unaudited consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This item presents unaudited consolidated financial statements for IDACORP and Idaho Power with detailed notes [IDACORP, Inc. Condensed Consolidated Statements of Income](index=7&type=section&id=IDACORP%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Income) IDACORP, Inc.'s unaudited consolidated statements of income for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------- | :------------------ | :------------------ | :----------- | | Total operating revenues | $344,288 | $316,054 | +8.9% | | Total operating expenses | $283,620 | $254,945 | +11.2% | | Operating Income | $60,668 | $61,109 | -0.7% | | Net Income Attributable to IDACORP, Inc. | $46,260 | $44,831 | +3.2% | | Earnings Per Share - Basic | $0.91 | $0.89 | +2.2% | | Earnings Per Share - Diluted | $0.91 | $0.89 | +2.2% | [IDACORP, Inc. Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=IDACORP%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) IDACORP, Inc.'s unaudited consolidated statements of comprehensive income for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Net Income | $46,184 | $44,800 | +3.1% | | Unfunded pension liability adjustment, net of tax of $290 and $289, respectively | $837 | $836 | +0.1% | | Total Comprehensive Income | $47,021 | $45,636 | +3.0% | | Comprehensive Income Attributable to IDACORP, Inc. | $47,097 | $45,667 | +3.1% | [IDACORP, Inc. Condensed Consolidated Balance Sheets](index=9&type=section&id=IDACORP%2C%20Inc.%20Condensed%20Consolidated%20Balance%20Sheets) IDACORP, Inc.'s unaudited consolidated balance sheets as of March 31, 2022 and December 31, 2021 | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (QoQ) | | :--------------------------------- | :------------------------------ | :------------------------------- | :----------- | | **Assets:** | | | | | Total current assets | $611,898 | $595,873 | +2.7% | | Property, Plant and Equipment - net | $4,986,103 | $4,901,822 | +1.7% | | Total assets | $7,284,557 | $7,210,515 | +1.0% | | **Liabilities and Equity:** | | | | | Total current liabilities | $327,578 | $325,624 | +0.6% | | Long-Term Debt | $2,050,634 | $2,000,640 | +2.5% | | Total IDACORP, Inc. shareholders' equity | $2,677,508 | $2,668,436 | +0.3% | | Total equity | $2,684,230 | $2,675,234 | +0.3% | | Total liabilities and equity | $7,284,557 | $7,210,515 | +1.0% | [IDACORP, Inc. Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=IDACORP%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) IDACORP, Inc.'s unaudited consolidated statements of cash flows for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | Net cash provided by operating activities | $92,999 | $83,662 | +11.2% | | Net cash used in investing activities | $(98,287) | $(79,349) | +23.9% | | Net cash provided by (used in) financing activities | $8,595 | $(39,422) | N/A (swing from outflow to inflow) | | Net increase (decrease) in cash and cash equivalents | $3,307 | $(35,109) | N/A (swing from decrease to increase) | | Cash and cash equivalents at end of the period | $218,550 | $240,007 | -8.9% | [IDACORP, Inc. Condensed Consolidated Statements of Equity](index=13&type=section&id=IDACORP%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Equity) IDACORP, Inc.'s unaudited consolidated statements of equity for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Common Stock Balance at end of period | $875,067 | $868,944 | +0.7% | | Retained Earnings Balance at end of period | $1,841,644 | $1,742,994 | +5.7% | | Accumulated Other Comprehensive Loss Balance at end of period | $(39,203) | $(42,522) | +7.8% (reduction in loss) | | Total IDACORP, Inc. shareholders' equity at end of period | $2,677,508 | $2,569,416 | +4.2% | [Idaho Power Company Condensed Consolidated Statements of Income](index=14&type=section&id=Idaho%20Power%20Company%20Condensed%20Consolidated%20Statements%20of%20Income) Idaho Power Company's unaudited consolidated statements of income for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------- | :------------------ | :------------------ | :----------- | | Operating Revenues | $343,921 | $315,568 | +8.9% | | Total operating expenses | $282,759 | $254,291 | +11.2% | | Operating Income | $61,162 | $61,277 | -0.2% | | Net Income | $46,214 | $44,369 | +4.1% | [Idaho Power Company Condensed Consolidated Statements of Comprehensive Income](index=15&type=section&id=Idaho%20Power%20Company%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Idaho Power Company's unaudited consolidated statements of comprehensive income for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Net Income | $46,214 | $44,369 | +4.1% | | Unfunded pension liability adjustment, net of tax of $290, and $289, respectively | $837 | $836 | +0.1% | | Total Comprehensive Income | $47,051 | $45,205 | +4.1% | [Idaho Power Company Condensed Consolidated Balance Sheets](index=16&type=section&id=Idaho%20Power%20Company%20Condensed%20Consolidated%20Balance%20Sheets) Idaho Power Company's unaudited consolidated balance sheets as of March 31, 2022 and December 31, 2021 | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (QoQ) | | :--------------------------------- | :------------------------------ | :------------------------------- | :----------- | | **Assets:** | | | | | Total current assets | $461,001 | $440,285 | +4.7% | | Property, Plant and Equipment, net | $4,973,369 | $4,889,108 | +1.7% | | Total assets | $7,070,637 | $6,990,839 | +1.1% | | **Liabilities and Equity:** | | | | | Total current liabilities | $322,976 | $315,624 | +2.3% | | Long-Term Debt | $2,050,634 | $2,000,640 | +2.5% | | Total equity | $2,473,155 | $2,464,302 | +0.4% | | Total liabilities and equity | $7,070,637 | $6,990,839 | +1.1% | [Idaho Power Company Condensed Consolidated Statements of Cash Flows](index=18&type=section&id=Idaho%20Power%20Company%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Idaho Power Company's unaudited consolidated statements of cash flows for Q1 2022 and 2021 | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | Net cash provided by operating activities | $90,359 | $78,902 | +14.5% | | Net cash used in investing activities | $(94,943) | $(79,349) | +28.3% | | Net cash provided by (used in) financing activities | $11,728 | $(35,956) | N/A (swing from outflow to inflow) | | Net increase (decrease) in cash and cash equivalents | $7,144 | $(31,068) | N/A (swing from decrease to increase) | | Cash and cash equivalents at end of the period | $67,219 | $134,536 | -50.0% | [Notes to Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed explanatory notes to IDACORP and Idaho Power's unaudited financial statements [Summary of Significant Accounting Policies](index=19&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the significant accounting policies applied in preparing the condensed consolidated financial statements - IDACORP is a holding company with Idaho Power as its principal operating subsidiary, engaged in electric utility services across southern Idaho and eastern Oregon[48](index=48&type=chunk) - Idaho Power's operations are primarily regulated by state utility commissions (Idaho and Oregon) and the Federal Energy Regulatory Commission (FERC), influencing pricing and financial condition[48](index=48&type=chunk)[50](index=50&type=chunk) - Financial statements reflect regulatory accounting principles, deferring or accruing costs as regulatory assets or liabilities based on probable future recovery or refund from customers[51](index=51&type=chunk) [Income Taxes](index=20&type=section&id=2.%20INCOME%20TAXES) This section details the income tax expense and effective tax rates for IDACORP and Idaho Power - Income tax expense for Q1 **2022 increased** compared to Q1 **2021**, primarily due to **higher** pre-tax earnings[58](index=58&type=chunk) | Metric | IDACORP 2022 (in thousands) | IDACORP 2021 (in thousands) | Idaho Power 2022 (in thousands) | Idaho Power 2021 (in thousands) | | :--------------------------------- | :-------------------------- | :-------------------------- | :---------------------------- | :-------------------------- | | Income tax at statutory rates (federal and state) | $13,458 | $12,849 | $13,619 | $12,932 | | Excess deferred income tax reversal | $(2,503) | $(1,606) | $(2,503) | $(1,606) | | Other | $(4,929) | $(6,157) | $(4,419) | $(5,453) | | Income tax expense | $6,026 | $5,086 | $6,697 | $5,873 | | Effective tax rate | **11.5%** | **10.2%** | **12.7%** | **11.7%** | [Regulatory Matters](index=20&type=section&id=3.%20REGULATORY%20MATTERS) This section details regulatory matters impacting Idaho Power's rates and cost recovery - Idaho Power's current base rates are derived from IPUC and OPUC orders, with a May **2018** Idaho settlement stipulation allowing **accelerated amortization of ADITC** to help achieve a **minimum 9.4% Idaho ROE**[60](index=60&type=chunk)[61](index=61&type=chunk) - In Q1 **2022**, Idaho Power recorded **no additional ADITC amortization** or provision for earnings sharing, with **$45 million** of ADITC **remaining available**[63](index=63&type=chunk) - Idaho Power filed an application in April **2022** requesting a **$103.4 million net increase** in Idaho-jurisdiction PCA revenues for the **2022-2023** period, reflecting forecasted reduction in hydroelectric generation and higher market energy/natural gas prices[65](index=65&type=chunk) - The company filed an amended application in February **2022** for the Jim Bridger plant, requesting **accelerated depreciation** and cost recovery for coal-related investments, **totaling $27.1 million**, pending at the IPUC[68](index=68&type=chunk)[69](index=69&type=chunk) - The IPUC authorized Idaho Power to defer incremental O&M and depreciation expenses for its Wildfire Mitigation Plan (WMP) as a **regulatory asset**, **totaling $8.8 million** as of March **31, 2022**[70](index=70&type=chunk) [Revenues](index=24&type=section&id=4.%20REVENUES) This section provides a detailed breakdown of Idaho Power's operating revenues by source | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | Revenue from contracts with customers | $318,182 | $291,327 | +9.2% | | Alternative revenue programs and other revenues | $25,739 | $24,241 | +6.2% | | Total electric utility operating revenues | $343,921 | $315,568 | +8.9% | | Revenue Source | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------- | :------------------ | :------------------ | :----------- | | Residential | $169,295 | $154,785 | +9.4% | | Commercial | $78,566 | $72,269 | +8.7% | | Industrial | $49,060 | $45,430 | +8.0% | | Wholesale energy sales | $3,035 | $6,259 | -51.5% | | Transmission wheeling-related revenues | $16,466 | $14,467 | +13.8% | | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :------------------------------------ | :------------------ | :------------------ | :----------- | | FCA mechanism revenues | $10,376 | $16,304 | -36.4% | | Derivative revenues | $15,363 | $7,937 | +93.6% | - Allowance for uncollectible accounts related to customer receivables **increased** to **$4,850 thousand** at March **31, 2022**, from **$4,499 thousand** at the beginning of the period, reflecting higher aged accounts receivable due to COVID-19 impacts[76](index=76&type=chunk)[77](index=77&type=chunk) [Long-Term Debt](index=25&type=section&id=5.%20LONG-TERM%20DEBT) This section details Idaho Power's long-term debt activities and outstanding balances - Idaho Power entered into a **$150 million** two-year senior unsecured delayed draw Term Loan Facility on March **4, 2022**[78](index=78&type=chunk) - As of March **31, 2022**, **$50 million** in principal amount had been drawn and was outstanding on the Term Loan Facility[79](index=79&type=chunk) [Common Stock](index=26&type=section&id=6.%20COMMON%20STOCK) This section outlines IDACORP's common stock activities and dividend restrictions - IDACORP granted **73,131** restricted stock unit awards and issued **42,685** shares of common stock during Q1 **2022**[80](index=80&type=chunk) - Dividend payments are restricted by credit facility covenants requiring a leverage ratio of consolidated indebtedness to total capitalization of no more than **65%**[81](index=81&type=chunk) - As of March **31, 2022**, IDACORP's and Idaho Power's leverage ratios were **43%** and **45%** respectively, well within compliance limits[81](index=81&type=chunk) [Earnings Per Share](index=27&type=section&id=7.%20EARNINGS%20PER%20SHARE) This section presents the basic and diluted earnings per share for IDACORP, Inc | Metric | 2022 | 2021 | Change (YoY) | | :--------------------------------------- | :----- | :----- | :----------- | | Net income attributable to IDACORP, Inc. | $46,260 | $44,831 | +3.2% | | Weighted-average common shares outstanding - basic | 50,632 | 50,567 | +0.1% | | Weighted-average common shares outstanding - diluted | 50,660 | 50,580 | +0.2% | | Basic earnings per share | $0.91 | $0.89 | +2.2% | | Diluted earnings per share | $0.91 | $0.89 | +2.2% | [Commitments](index=27&type=section&id=8.%20COMMITMENTS) This section details Idaho Power's contractual commitments and guarantees - Idaho Power entered into new contracts for a non-PURPA solar facility and battery storage assets, **increasing** contractual purchase obligations by approximately **$223 million**[90](index=90&type=chunk) - Idaho Power guarantees its one-third share of BCC's reclamation obligation, **totaling $51.0 million** at March **31, 2022**, which is supported by a reclamation trust fund valued at **$202.2 million**[89](index=89&type=chunk) [Contingencies](index=28&type=section&id=9.%20CONTINGENCIES) This section addresses IDACORP's and Idaho Power's legal claims and potential loss contingencies - IDACORP and Idaho Power are involved in various claims and legal proceedings, including those related to utility operations, personal injury, property damage, and wildfires[91](index=91&type=chunk)[92](index=92&type=chunk) - Accruals for loss contingencies are not material to the financial statements as a whole, but future accruals could be material[91](index=91&type=chunk) - Idaho Power is monitoring pending environmental regulations and executive orders, but the financial impact is currently unestimable due to uncertainties[93](index=93&type=chunk) [Benefit Plans](index=28&type=section&id=10.%20BENEFIT%20PLANS) This section details the net periodic benefit costs and contributions for employee benefit plans | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Pension Plan Net periodic benefit cost | $8,761 | $12,265 | -28.6% | | SMSP Net periodic benefit cost | $2,397 | $2,217 | +8.1% | | Postretirement Benefits Net periodic benefit cost | $193 | $292 | -33.9% | | Net periodic benefit cost recognized for financial reporting | $7,266 | $7,367 | -1.4% | - Idaho Power made **no contributions** to its defined benefit pension plan in Q1 **2022** but **contributed $10 million** in April **2022** and is **considering an additional $30 million** in **2022**[98](index=98&type=chunk) [Investments](index=29&type=section&id=11.%20INVESTMENTS) This section describes Idaho Power's investment activities and portfolio composition - Idaho Power's rabbi trust purchased **$29.7 million** of held-to-maturity corporate fixed-income and asset-backed debt securities in Q1 **2022**[100](index=100&type=chunk) - As of March **31, 2022**, all held-to-maturity securities had a gross unrealized holding loss of **$1.8 million** due to **increased** market interest rates[100](index=100&type=chunk) [Derivative Financial Instruments](index=29&type=section&id=12.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This section details Idaho Power's use of derivative instruments to manage commodity price risk - Idaho Power uses derivative instruments (physical and financial forward contracts) to manage commodity price risk for electricity and fuel, with primary objectives to meet demand, ensure reliability, and utilize surpluses[101](index=101&type=chunk) | Location of Realized Gain/(Loss) | 2022 (in thousands) | 2021 (in thousands) | | :------------------------------- | :------------------ | :------------------ | | Financial swaps - Operating revenues | $582 | $0 | | Financial swaps - Purchased power | $116 | $249 | | Financial swaps - Fuel expense | $1,460 | $733 | | Forward contracts - Operating revenues | $179 | $47 | | Forward contracts - Purchased power | $(179) | $(47) | | Forward contracts - Fuel expense | $(54) | $(1) | - The aggregate fair value of derivative instruments with credit-risk-related contingent features in a liability position was **$1.8 million** at March **31, 2022**; a downgrade below investment grade could require up to **$3.6 million** in collateral[107](index=107&type=chunk) | Commodity | Units | 2022 (in thousands) | 2021 (in thousands) | | :---------------- | :---- | :------------------ | :------------------ | | Electricity purchases | MWh | 538 | 155 | | Electricity sales | MWh | 128 | 0 | | Natural gas purchases | MMBtu | 16,635 | 10,106 | | Natural gas sales | MMBtu | 0 | 78 | [Fair Value Measurements](index=31&type=section&id=13.%20FAIR%20VALUE%20MEASUREMENTS) This section categorizes financial instruments by fair value measurement levels and presents their values - Financial instruments are categorized into Level **1** (quoted prices in active markets), Level **2** (observable inputs from non-active markets or models), and Level **3** (unobservable inputs)[113](index=113&type=chunk)[115](index=115&type=chunk)[119](index=119&type=chunk) | Metric | March 31, 2022 (Total in thousands) | December 31, 2021 (Total in thousands) | | :--------------------------------------- | :---------------------------------- | :----------------------------------- | | **Assets:** | | | | Money market funds (IDACORP) | $77,838 | $80,406 | | Money market funds (Idaho Power) | $21,900 | $10,393 | | Derivatives | $19,696 | $6,598 | | Equity securities | $22,698 | $54,431 | | IDACORP assets measured at NAV | $1,864 | $1,363 | | **Liabilities:** | | | | Derivatives | $5,598 | $5,747 | | Metric | March 31, 2022 (Carrying Amount) | March 31, 2022 (Estimated Fair Value) | December 31, 2021 (Carrying Amount) | December 31, 2021 (Estimated Fair Value) | | :--------------------------------------- | :-------------------------------- | :------------------------------------ | :---------------------------------- | :------------------------------------- | | IDACORP Notes receivable | $3,804 | $3,804 | $3,804 | $3,804 | | IDACORP Held-to-maturity securities | $29,366 | $27,521 | $0 | $0 | | IDACORP Long-term debt | $2,050,634 | $2,166,197 | $2,000,640 | $2,381,172 | | Idaho Power Held-to-maturity securities | $29,366 | $27,521 | $0 | $0 | | Idaho Power Long-term debt | $2,050,634 | $2,166,197 | $2,000,640 | $2,381,172 | [Segment Information](index=33&type=section&id=14.%20SEGMENT%20INFORMATION) This section provides financial information for IDACORP's reportable utility operations segment - IDACORP's only reportable segment is utility operations, primarily Idaho Power, which encompasses generation, transmission, distribution, purchase, and sale of electricity[122](index=122&type=chunk) | Metric | Utility Operations 2022 (in thousands) | All Other 2022 (in thousands) | Consolidated Total 2022 (in thousands) | Utility Operations 2021 (in thousands) | All Other 2021 (in thousands) | Consolidated Total 2021 (in thousands) | | :--------------------------------------- | :----------------------------- | :---------------------------- | :----------------------------------- | :----------------------------- | :---------------------------- | :----------------------------------- | | Revenues | $343,921 | $367 | $344,288 | $315,568 | $486 | $316,054 | | Net income attributable to IDACORP, Inc. | $46,214 | $46 | $46,260 | $44,369 | $462 | $44,831 | | Total assets (as of March 31, 2022 / Dec 31, 2021) | $7,070,637 | $274,805 | $7,284,557 | N/A | N/A | N/A | [Changes in Accumulated Other Comprehensive Income](index=34&type=section&id=15.%20CHANGES%20IN%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME) This section details changes in accumulated other comprehensive income for the reporting periods | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Balance at beginning of period | $(40,040) | $(43,358) | +8.1% (reduction in loss) | | Amounts reclassified out of AOCI | $837 | $836 | +0.1% | | Balance at end of period | $(39,203) | $(42,522) | +7.8% (reduction in loss) | | Details About AOCI | 2022 (in thousands) | 2021 (in thousands) | | :--------------------------------------- | :------------------ | :------------------ | | Amortization of defined benefit pension items - Prior service cost | $70 | $74 | | Amortization of defined benefit pension items - Net loss | $1,057 | $1,051 | | Total before tax | $1,127 | $1,125 | | Tax benefit | $(290) | $(289) | | Total reclassification for the period, net of tax | $837 | $836 | [Changes in Idaho Power Retained Earnings](index=34&type=section&id=16.%20CHANGES%20IN%20IDAHO%20POWER%20RETAINED%20EARNINGS) This section outlines changes in Idaho Power's retained earnings, including net income and dividends | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Balance at beginning of period | $1,696,304 | $1,599,155 | +6.1% | | Net income | $46,214 | $44,369 | +4.1% | | Dividends to parent | $(38,198) | $(35,941) | +6.3% | | Balance at end of period | $1,704,320 | $1,607,583 | +6.0% | [Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP](index=35&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20-%20Deloitte%20%26%20Touche%20LLP) Reports from Deloitte & Touche LLP on IDACORP and Idaho Power's interim financial information - Deloitte & Touche LLP found **no material modifications needed** for IDACORP's and Idaho Power's interim financial information to conform with GAAP[132](index=132&type=chunk)[137](index=137&type=chunk) - The auditors confirmed the fair statement of the December **31, 2021**, consolidated balance sheets in relation to the audited full-year financial statements[133](index=133&type=chunk)[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of IDACORP's and Idaho Power's financial condition and operations [INTRODUCTION](index=37&type=section&id=INTRODUCTION) Introduction to IDACORP as a holding company and Idaho Power as its principal regulated electric utility - IDACORP is a holding company whose principal operating subsidiary, Idaho Power, is an electric utility regulated by the IPUC, OPUC, and FERC[143](index=143&type=chunk) - Idaho Power generates revenues primarily from the sale and distribution of electricity, with highest retail energy sales occurring during the summer irrigation and cooling season[143](index=143&type=chunk) [EXECUTIVE OVERVIEW](index=37&type=section&id=EXECUTIVE%20OVERVIEW) Executive overview of management's strategic outlook, financial results, and influencing factors [Management's Outlook and Company Initiatives](index=37&type=section&id=Management's%20Outlook%20and%20Company%20Initiatives) Management's strategic outlook, company initiatives, and growth expectations - Idaho Power's strategic areas include growing financial strength, improving core business, enhancing brand, and focusing on safety and employee engagement[145](index=145&type=chunk) - Customer count grew by over **3,000** in Q1 **2022**, with a **2.6% growth rate** over the past twelve months, and positive customer growth is expected to continue[145](index=145&type=chunk) - Idaho Power anticipates total capital expenditures of up to **$2.8 billion** over the five-year period from **2022** through **2026**[145](index=145&type=chunk) - The company is committed to providing **100% clean energy** by **2045**, alongside water stewardship and workforce unity initiatives[145](index=145&type=chunk) [Summary of Financial Results](index=38&type=section&id=Summary%20of%20Financial%20Results) Summary of IDACORP's and Idaho Power's financial performance for the reporting period | Metric | 2022 | 2021 | Change (YoY) | | :--------------------------------------- | :----- | :----- | :----------- | | Idaho Power net income | $46,214 | $44,369 | +4.1% | | Net income attributable to IDACORP, Inc. | $46,260 | $44,831 | +3.2% | | IDACORP, Inc. earnings per diluted share | $0.91 | $0.89 | +2.2% | - IDACORP's net income **increased** by **$1.5 million** in Q1 **2022**, primarily due to Idaho Power's **higher** net income[147](index=147&type=chunk) - Customer growth (**2.6% increase**) contributed **$3.0 million** to operating income, and **higher** usage per retail customer (due to colder weather and **increased** economic activity) added **$9.3 million**[147](index=147&type=chunk) - **Increased** O&M expenses (**$6.4 million**) due to a planned maintenance project and inflationary pressures, and a **decrease** in Idaho FCA revenues (**$5.9 million**), partially offset these gains[147](index=147&type=chunk)[149](index=149&type=chunk) [Overview of General Factors and Trends Affecting Results of Operations and Financial Condition](index=39&type=section&id=Overview%20of%20General%20Factors%20and%20Trends%20Affecting%20Results%20of%20Operations%20and%20Financial%20Condition) General factors and trends influencing IDACORP's and Idaho Power's operations and financial health - Idaho Power is undertaking **significant infrastructure enhancements**, including major transmission projects and generation facility upgrades, with plans to timely include completed capital projects into rate base[151](index=151&type=chunk) - The company expects **continued customer growth** (**2.6%** over the past **12** months) and peak demand, necessitating additional power supply, transmission, and distribution infrastructure investments[153](index=153&type=chunk) - Hydropower generation is expected to be in the range of **5.0** to **6.5 million MWh** in **2022**, compared with a **30-year** average of approximately **7.7 million MWh**, due to less carry-over storage and below-normal snowpack[153](index=153&type=chunk)[161](index=161&type=chunk) - Idaho Power faces **increasing regulatory and environmental compliance costs**, including those related to the Jim Bridger plant's accelerated depreciation and wildfire mitigation efforts[155](index=155&type=chunk) [RESULTS OF OPERATIONS](index=41&type=section&id=RESULTS%20OF%20OPERATIONS) Detailed analysis of IDACORP's and Idaho Power's operating results for Q1 2022 versus Q1 2021 [Operating Revenues](index=43&type=section&id=Operating%20Revenues) Analysis of IDACORP's and Idaho Power's operating revenues, including retail and wholesale sales | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Total retail revenues | $295,843 | $271,451 | +8.9% | | Total retail MWh sales | 3,624 | 3,369 | +7.6% | | Number of retail customers at period end | 606,823 | 591,548 | +2.6% | - Retail revenues **increased $24.4 million** in Q1 **2022**, primarily due to **customer growth** (**$4.8 million**) and **higher usage per customer** (**$17.1 million**) driven by colder weather and **increased economic activity**[166](index=166&type=chunk)[167](index=167&type=chunk) - Wholesale energy sales **decreased $3.2 million** (**77% volume decrease**) due to **lower system generation** and **higher retail sales**[169](index=169&type=chunk) - Transmission wheeling-related revenues **increased $2.0 million** (**14%**) due to new long-term agreements and **4% higher OATT rates**[169](index=169&type=chunk) - Idaho FCA revenue **decreased** by **$5.9 million** due to **higher usage per residential and small commercial customer**[171](index=171&type=chunk) [Operating Expenses](index=45&type=section&id=Operating%20Expenses) Analysis of IDACORP's and Idaho Power's operating expenses, including purchased power and fuel costs | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Total purchased power expense | $85,424 | $67,988 | +25.6% | | Total MWh purchased | 1,782 | 1,397 | +27.6% | | Weighted average cost per MWh - all sources | $47.94 | $48.67 | -1.5% | | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (YoY) | | :--------------------------------------- | :------------------ | :------------------ | :----------- | | Total fuel expense | $45,702 | $33,306 | +37.2% | | Total MWh generated | 1,278 | 1,178 | +8.5% | | Average cost per MWh - Coal | $33.77 | $31.54 | +7.1% | | Average cost per MWh - Natural gas | $39.31 | $25.54 | +53.9% | - Other O&M expenses **increased** by **$6.4 million** in Q1 **2022** due to a planned maintenance project at the Langley Gulch natural gas plant and inflationary pressures on labor, professional services, and supplies[182](index=182&type=chunk) - Power cost adjustment mechanisms in Idaho and Oregon **largely mitigate** the **financial impact** of fluctuations in power supply costs, though **cash flow timing can differ** from cost recovery[178](index=178&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=46&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Discussion of IDACORP's and Idaho Power's liquidity, capital management, and significant capital expenditures [Overview](index=46&type=section&id=Overview) Overview of IDACORP's and Idaho Power's liquidity and capital management strategies - Idaho Power anticipates total capital expenditures of up to **$2.8 billion** over the five-year period from **2022** through **2026** for utility infrastructure[184](index=184&type=chunk) - IDACORP and Idaho Power generally seek to maintain capital structures of approximately **50% debt and 50% equity**[188](index=188&type=chunk) | Metric | IDACORP | Idaho Power | | :----- | :------ | :---------- | | Debt | **43%** | **45%** | | Equity | **57%** | **55%** | [Operating Cash Flows](index=47&type=section&id=Operating%20Cash%20Flows) Details of IDACORP's and Idaho Power's cash flows from operating activities - IDACORP's operating cash inflows for Q1 **2022** were **$93 million**, an **increase of $9 million** YoY[190](index=190&type=chunk) - Idaho Power's operating cash inflows for Q1 **2022** were **$90 million**, an **increase of $11 million** YoY[190](index=190&type=chunk) - The **increase** in operating cash flows was **primarily due to changes in other current liabilities**, including compensation, customer deposits, and accrued interest, related to payment timing[190](index=190&type=chunk) [Investing Cash Flows](index=48&type=section&id=Investing%20Cash%20Flows) Details of IDACORP's and Idaho Power's cash flows from investing activities - IDACORP's net investing cash outflows were **$98 million**, and Idaho Power's were **$95 million** in Q1 **2022**, mainly for **utility infrastructure construction**[191](index=191&type=chunk) - Idaho Power's rabbi trust purchased **$20 million** in equity and **$30 million** in held-to-maturity securities, and received **$51 million** from equity security sales during Q1 **2022**[192](index=192&type=chunk) [Financing Cash Flows](index=48&type=section&id=Financing%20Cash%20Flows) Details of IDACORP's and Idaho Power's cash flows from financing activities - IDACORP's net financing cash inflows were **$9 million**, and Idaho Power's were **$12 million** in Q1 **2022**[194](index=194&type=chunk) - Idaho Power drew **$50 million** from a **new delayed draw term loan facility** in March **2022**[194](index=194&type=chunk) - IDACORP and Idaho Power paid **$38 million** in **common stock dividends** during Q1 **2022**[194](index=194&type=chunk) [Financing Programs and Available Liquidity](index=48&type=section&id=Financing%20Programs%20and%20Available%20Liquidity) Description of IDACORP's and Idaho Power's financing programs and available liquidity sources - Idaho Power entered into a **$150 million** Term Loan Facility in March **2022**, with **$50 million** drawn and **$100 million remaining available**[195](index=195&type=chunk)[197](index=197&type=chunk) - IDACORP and Idaho Power have **revolving credit facilities** of **$100 million** and **$300 million**, respectively, and **shelf registration statements** for debt and equity issuances[186](index=186&type=chunk)[204](index=204&type=chunk) - Idaho Power is **seeking authority to issue** up to **$1.2 billion** in new debt securities and first mortgage bonds and plans to **increase its Indenture limit** from **$2.5 billion** to **$3.5 billion**[203](index=203&type=chunk) [Available Short-Term Borrowing Liquidity](index=52&type=section&id=Available%20Short-Term%20Borrowing%20Liquidity) Presentation of IDACORP's and Idaho Power's available short-term borrowing capacity | Metric | IDACORP (March 31, 2022) | Idaho Power (March 31, 2022) | IDACORP (December 31, 2021) | Idaho Power (December 31, 2021) | | :-------------------------- | :----------------------- | :--------------------------- | :-------------------------- | :---------------------------- | | Revolving credit facility | $100,000 | $300,000 | $100,000 | $300,000 | | Commercial paper outstanding | $0 | $0 | $0 | $0 | | Identified for other use | $0 | $(24,245) | $0 | $(24,245) | | Net balance available | $100,000 | $275,755 | $100,000 | $275,755 | - As of April **29, 2022**, neither IDACORP nor Idaho Power had loans outstanding under their revolving credit facilities or commercial paper outstanding[209](index=209&type=chunk) [Impact of Credit Ratings on Liquidity and Collateral Obligations](index=52&type=section&id=Impact%20of%20Credit%20Ratings%20on%20Liquidity%20and%20Collateral%20Obligations) Impact of credit ratings on IDACORP's and Idaho Power's liquidity and collateral requirements - Moody's rating outlooks for IDACORP and Idaho Power were modified to **negative** in June **2021**, though ratings remain **investment grade**[210](index=210&type=chunk) - A downgrade to below **investment grade** could trigger requests for approximately **$12.8 million** in **additional performance assurance collateral** from wholesale counterparties[211](index=211&type=chunk) [Capital Requirements](index=53&type=section&id=Capital%20Requirements) Idaho Power's estimated capital expenditures and construction plans - Idaho Power's **construction expenditures**, excluding AFUDC, were **$99 million** during Q1 **2022**[213](index=213&type=chunk) | Year | Estimated Capital Expenditures (in millions) | | :--------- | :----------------------------------- | | 2022 | $480-$500 | | 2023 | $690-$715 | | 2024-2026 | $1,450-$1,550 | [Major Infrastructure Projects](index=53&type=section&id=Major%20Infrastructure%20Projects) Details of Idaho Power's significant infrastructure projects, including transmission lines - Idaho Power plans over **$400 million** in capital expenditures from **2022-2025** for **resource additions**, including **120 MW** of battery storage and a **40 MW** solar facility, to **meet projected capacity deficits**[215](index=215&type=chunk) - The Boardman-to-Hemingway transmission line project has expended approximately **$129 million** through March **31, 2022**, with **total cost estimates** between **$1.0 billion** and **$1.2 billion**[217](index=217&type=chunk)[222](index=222&type=chunk) - Idaho Power's **interest in the Boardman-to-Hemingway project may increase** to approximately **45%** following a non-binding term sheet with co-participants[221](index=221&type=chunk) - The Gateway West transmission line project has seen Idaho Power expend approximately **$49 million** for its share of the **permitting phase**, with **total estimated costs** for Idaho Power between **$250 million** and **$450 million**[224](index=224&type=chunk) [Defined Benefit Pension Plan Contributions](index=54&type=section&id=Defined%20Benefit%20Pension%20Plan%20Contributions) Discussion of Idaho Power's contributions to its defined benefit pension plan - Idaho Power made **no contributions** to its defined benefit pension plan in Q1 **2022**, but **contributed $10 million** in April **2022**[226](index=226&type=chunk) - The company is **considering an additional $30 million** contribution in **2022** to **balance regulatory collection and mitigate underfunding costs**[226](index=226&type=chunk) [Contractual Obligations](index=55&type=section&id=Contractual%20Obligations) Summary of IDACORP's and Idaho Power's contractual cash obligations - **Contractual cash obligations** include long-term debt, interest payments, purchase obligations, and pension/post-retirement benefit plans[227](index=227&type=chunk) [Off-Balance Sheet Arrangements](index=55&type=section&id=Off-Balance%20Sheet%20Arrangements) Address of IDACORP's and Idaho Power's off-balance sheet arrangements - Off-balance sheet arrangements have **not materially changed** from the **2021** Annual Report[228](index=228&type=chunk) [REGULATORY MATTERS](index=55&type=section&id=REGULATORY%20MATTERS) Overview of Idaho Power's regulatory environment, rate filings, and cost recovery mechanisms [Introduction](index=55&type=section&id=Introduction) Introduction to Idaho Power's regulatory environment and the need for rate filings - Idaho Power is **regulated by the IPUC, OPUC, and FERC** regarding rates, service, accounting, and securities issuance[229](index=229&type=chunk) - **Significant infrastructure investments are accelerating** Idaho Power's **need to file general rate cases** in Idaho and Oregon[231](index=231&type=chunk) [Notable Pending Retail Rate Changes](index=56&type=section&id=Notable%20Pending%20Retail%20Rate%20Changes) Details of significant pending retail rate changes for Idaho Power | Description | Status | Estimated Annual Rate Impact | Notes | | :--------------------------------------- | :--------------------------------------- | :--------------------------- | :--------------------------------------- | | Jim Bridger plant accelerated recovery | Amended application filed Feb 16, 2022; Pending | $27.1 million increase effective June 1, 2022 | Contemplates conversion of units 1 and 2 to natural gas in 2024, removing related assets from proposed cost recovery. | | Power Cost Adjustment Mechanism - Idaho | Filed April 15, 2022; Pending | $103.4 million PCA increase for the period from June 1, 2022, to May 31, 2023 | Reflects forecasted reduction in low-cost hydroelectric generation and higher market/natural gas prices; includes $0.6 million of 2021 earnings shared with customers. | | Fixed Cost Adjustment Mechanism - Idaho | Filed March 15, 2022; Pending | $3.1 million FCA decrease for the period from June 1, 2022, to May 31, 2023 | Designed to remove financial disincentive for energy efficiency by decoupling fixed cost recovery from volumetric charge. | [Idaho Earnings Support and Sharing from Idaho Settlement Stipulation](index=56&type=section&id=Idaho%20Earnings%20Support%20and%20Sharing%20from%20Idaho%20Settlement%20Stipulation) Explanation of Idaho Power's earnings support and sharing mechanisms from the Idaho settlement - The May **2018** Idaho Tax Reform Settlement Stipulation provides **earnings stability** by allowing **accelerated amortization of ADITC** to help achieve a **minimum 9.4% Idaho ROE**[236](index=236&type=chunk) - In Q1 **2022**, **no additional ADITC amortization or earnings sharing provision was recorded**, leaving **$45 million** of ADITC **available for future use**[236](index=236&type=chunk) [Change in Deferred (Accrued) Net Power Supply Costs and the Power Cost Adjustment Mechanisms](index=56&type=section&id=Change%20in%20Deferred%20(Accrued)%20Net%20Power%20Supply%20Costs%20and%20the%20Power%20Cost%20Adjustment%20Mechanisms) Changes in deferred net power supply costs and power cost adjustment mechanisms - Idaho Power's **power cost adjustment mechanisms** in Idaho and Oregon **address power supply cost volatility**, allowing recovery or refund of fluctuations[238](index=238&type=chunk) - The Idaho PCA mechanism **passes through 95%** of net power supply expense differences to customers, **impacting operating cash flows due to timing differences** between payment and recovery[238](index=238&type=chunk) - Idaho Power filed for a **$103.4 million net increase** in PCA revenues for **2022-2023**, reflecting forecasted reduction in hydroelectric generation and higher market/natural gas prices[239](index=239&type=chunk) | Metric | Idaho (in millions) | Oregon (in millions) | Total (in millions) | | :--------------------------------------- | :------------------ | :------------------- | :------------------ | | Deferred (accrued) net power supply costs at December 31, 2021 | $33.8 | $(0.3) | $33.5 | | Current period net power supply costs accrued | $(4.4) | $0 | $(4.4) | | Prior amounts refunded through rates | $4.2 | $0.1 | $4.3 | | SO allowance and renewable energy certificate sales | $(4.1) | $(0.2) | $(4.3) | | Interest and other | $0.7 | $0 | $0.7 | | Deferred (accrued) net power supply costs at March 31, 2022 | $30.2 | $(0.4) | $29.8 | [Oregon Resource Procurement Filing](index=57&type=section&id=Oregon%20Resource%20Procurement%20Filing) Discussion of Idaho Power's Oregon resource procurement filing and competitive bidding rules - Idaho Power's request for a waiver of Oregon's competitive bidding rules for resource procurement was **denied** by the OPUC in March **2022**[243](index=243&type=chunk) - The company is now **pursuing exceptions to competitive bidding rules** for certain projects to **meet resource needs** for **2023**, **2024**, and **2025**[243](index=243&type=chunk) [Filing for Certificate of Public Convenience and Necessity for Battery Storage Projects](index=57&type=section&id=Filing%20for%20Certificate%20of%20Public%20Convenience%20and%20Necessity%20for%20Battery%20Storage%20Projects) Idaho Power's application for battery storage facilities to meet peak energy needs - Idaho Power **filed an application for a CPCN** in April **2022** to **install, own, and operate two battery storage facilities** (**120 MW** combined capacity) to **meet peak energy needs** by summer **2023**[244](index=244&type=chunk) [Jim Bridger Power Plant Rate Request](index=57&type=section&id=Jim%20Bridger%20Power%20Plant%20Rate%20Request) Idaho Power's rate request for accelerated depreciation at the Jim Bridger Power Plant - Idaho Power's amended application for the Jim Bridger plant requests authorization to **accelerate depreciation by 2030** and **adjust customer rates** by **$27.1 million** annually[245](index=245&type=chunk)[246](index=246&type=chunk) - The amended application **contemplates converting units 1 and 2 to natural gas** in **2024**, **removing associated investments** for gas-fired operations from the requested regulatory treatment[246](index=246&type=chunk) [Wildfire Mitigation Cost Deferral](index=57&type=section&id=Wildfire%20Mitigation%20Cost%20Deferral) Deferral of wildfire mitigation costs as a regulatory asset for Idaho Power - The IPUC **authorized** Idaho Power to **defer incremental O&M and depreciation expenses** for its Wildfire Mitigation Plan (WMP) as a **regulatory asset**[247](index=247&type=chunk)[249](index=249&type=chunk) - Idaho Power **projects spending approximately $47 million** in **incremental O&M** and **$35 million** in capital expenditures over five years for wildfire mitigation[249](index=249&type=chunk) - As of March **31, 2022**, **$8.8 million** of Idaho-jurisdiction WMP costs have been **deferred**[249](index=249&type=chunk) [Industrial Customer Dedicated Renewable Resource](index=59&type=section&id=Industrial%20Customer%20Dedicated%20Renewable%20Resource) Idaho Power's special contract with Micron for a dedicated solar facility - Idaho Power **filed an application for a revised special contract** with Micron, where Micron would **purchase energy from a new 40 MW solar facility**[250](index=250&type=chunk) - The solar facility is **scheduled to begin operating** as early as June **2023**, and the contract includes **revised electric service rates** for Micron[250](index=250&type=chunk) [Renewable and Other Energy Contracts](index=59&type=section&id=Renewable%20and%20Other%20Energy%20Contracts) Summary of Idaho Power's renewable and other energy contracts and their capacities | Resource Type | On-line (MW) | Under Contract but not yet On-line (MW) | Total Projects under Contract (MW) | | :---------------- | :----------- | :-------------------------------------- | :--------------------------------- | | **PURPA:** | | | | | Wind | 627 | 0 | 627 | | Solar | 316 | 74 | 390 | | Hydropower | 150 | 1 | 151 | | Other | 44 | 0 | 44 | | **Non-PURPA:** | | | | | Wind | 101 | 0 | 101 | | Geothermal | 35 | 0 | 35 | | Solar | 0 | 160 | 160 | - FERC Order No. **872** could **affect how states determine PURPA project avoided cost rates and eligibility**, but Idaho Power is **unable to determine the full impact** on future obligations[254](index=254&type=chunk) [Relicensing of Hydropower Projects](index=60&type=section&id=Relicensing%20of%20Hydropower%20Projects) Details of Idaho Power's ongoing relicensing efforts for major hydropower facilities [HCC Relicensing](index=60&type=section&id=HCC%20Relicensing) Details of the ongoing relicensing efforts for the Hells Canyon Complex hydropower facilities - A **settlement was reached** in April **2019** for **CWA Section 401 certification** for HCC, requiring **increased Chinook salmon releases** and **$12 million** for **research/water quality improvements** over **20** years[257](index=257&type=chunk) - Idaho Power **expects the FERC to issue a new HCC license** in **2024** or thereafter, with **estimated annual relicensing costs** of **$30 million** to **$40 million** until issuance[258](index=258&type=chunk)[259](index=259&type=chunk) - Relicensing costs of **$397 million** for the HCC were **included in construction work in progress** at March **31, 2022**[260](index=260&type=chunk) [American Falls Relicensing](index=61&type=section&id=American%20Falls%20Relicensing) Details of the ongoing relicensing efforts for the American Falls hydropower facility - The FERC **formally initiated the relicensing** of the American Falls hydropower facility in April **2020**[262](index=262&type=chunk) - Idaho Power's **final license application** for American Falls is due in **2023**, with a **new license expected** before the current one expires in **2025**[262](index=262&type=chunk) [ENVIRONMENTAL MATTERS](index=61&type=section&id=ENVIRONMENTAL%20MATTERS) Address of IDACORP's and Idaho Power's environmental compliance and potential impacts [Overview](index=61&type=section&id=Overview) Overview of IDACORP's and Idaho Power's environmental compliance and potential impacts - Idaho Power is **subject to a broad range of federal and state environmental laws**, including the Clean Air Act, Clean Water Act, and Endangered Species Act[263](index=263&type=chunk) - Compliance with current and future environmental laws may **increase operating and construction costs**, **require plant modifications or curtailments**, and could **materially affect financial results if costs are not fully recovered** in rates[264](index=264&type=chunk) [Endangered Species Act Matters](index=62&type=section&id=Endangered%20Species%20Act%20Matters) Lawsuits challenging sage grouse habitat plans and their impact on transmission projects - **Lawsuits challenging BLM's sage grouse resource management plans could impact** Idaho Power's **transmission projects** (Boardman-to-Hemingway and Gateway West) if exemptions are overturned, **potentially causing re-routing, higher costs, and delays**[267](index=267&type=chunk) - The lawsuits are **currently stayed** as parties await further administrative actions from the BLM regarding sage grouse habitat management[270](index=270&type=chunk) [Changes to NEPA](index=62&type=section&id=Changes%20to%20NEPA) Discussion of changes to NEPA rules and their potential impact on infrastructure projects - The CEQ's April **2022** final rule **restored requirements for federal agencies to consider all indirect and cumulative environmental impacts** under NEPA, **potentially delaying and increasing costs** for Idaho Power's infrastructure projects[271](index=271&type=chunk) - Further climate change-related reforms to NEPA are **anticipated** by the current Presidential Administration[271](index=271&type=chunk) [Clean Air Act Matters](index=62&type=section&id=Clean%20Air%20Act%20Matters) Details of Clean Air Act regulations affecting the Jim Bridger plant and compliance efforts - Jim Bridger plant units are **subject to regional haze rules** under the CAA, **requiring NOₓ controls**[272](index=272&type=chunk) - Wyoming's temporary emergency suspension for Jim Bridger unit **2 expired** in April **2022**, and the U.S. Environmental Protection Agency (EPA) has **proposed disapproving** Wyoming's **2019** State Implementation Plan (SIP) revision[273](index=273&type=chunk) - A February **2022** consent decree requires PacifiCorp to **submit a revised permit application for natural gas conversion** of Jim Bridger units **1** and **2** and **propose an RFP for carbon capture** at units **3** and **4**[273](index=273&type=chunk) - Idaho Power is **evaluating the impact of the EPA's proposed CSAPR rule** on Jim Bridger plant operations, which could **establish NOx emissions budgets**[275](index=275&type=chunk) [Clean Water Act Matters](index=63&type=section&id=Clean%20Water%20Act%20Matters) Coverage of the evolving definition of "Waters of the United States" under the Clean Water Act [Definition of "Waters of the United States" Under the CWA](index=63&type=section&id=Definition%20of%20%22Waters%20of%20the%20United%20States%22%20Under%20the%20CWA) Discussion of the evolving definition of "Waters of the United States" under the Clean Water Act - The EPA has **proposed a new rule to restore broader protections** under the CWA's "Waters of the United States" (WOTUS) definition, **reversing the narrower Navigable Waters Protection Rule**[276](index=276&type=chunk) - The U.S. Supreme Court is **reviewing a challenge to the EPA's WOTUS jurisdiction**, which could **clarify the definition**[276](index=276&type=chunk) - Idaho Power **expects additional permitting and regulatory costs** from potential WOTUS definition changes but **does not anticipate a material adverse effect**, partly due to Idaho's arid climate[277](index=277&type=chunk) [Section 401 Water Quality Certification](index=65&type=section&id=Section%20401%20Water%20Quality%20Certification) Address of the Clean Water Act Section 401 water quality certification for HCC relicensing - The **CWA Section 401 water quality certification** for HCC relicensing is **pending FERC's decision on an Offer of Settlement**[278](index=278&type=chunk) - The July **2020** Rule, which **amended CWA Section 401 regulations**, was **vacated by a U.S. District Court**, **temporarily reverting to 1979 regulations**, but the **U.S. Supreme Court stayed the vacatur**[279](index=279&type=chunk) - The EPA plans to **repeal the July 2020 Rule and finalize a new certification rule**, which could **impact HCC certification timing and cost** if FERC declines the settlement[279](index=279&type=chunk)[280](index=280&type=chunk) [CWA Permitting](index=65&type=section&id=CWA%20Permitting) Idaho Power's compliance and permitting obligations under the Clean Water Act - Idaho Power's hydropower generation facilities are **subject to CWA compliance and permitting obligations**[281](index=281&type=chunk) - Idaho Power and IDEQ **entered a consent judgment** on April **7, 2022**, to **resolve a permitting issue** for **15** hydroelectric projects, **requiring a $1.1 million fine and new permit applications**[282](index=282&type=chunk) - The permitting issue **stemmed from a misinterpretation** that led to the **cancellation of water discharge permits** in the mid-**1990s**[282](index=282&type=chunk) [OTHER MATTERS](index=65&type=section&id=OTHER%20MATTERS) Critical accounting policies and recently issued accounting pronouncements [Critical Accounting Policies and Estimates](index=65&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Discussion of critical accounting policies and estimates used in financial reporting - Financial statements **rely on management's estimates and judgments** related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt[283](index=283&type=chunk) - Critical accounting policies and estimates have **not materially changed** from the **2021** Annual Report[284](index=284&type=chunk) [Recently Issued Accounting Pronouncements](index=66&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Impact of recently issued accounting pronouncements on financial statements - **No recently issued accounting pronouncements are expected to have a material impact** on the condensed consolidated financial statements[285](index=285&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) IDACORP's exposure to market risks, including interest rate, commodity price, credit, and equity price risks [Interest Rate Risk](index=66&type=section&id=Interest%20Rate%20Risk) IDACORP's exposure to interest rate risk, primarily from fixed-rate debt - As of March **31, 2022**, IDACORP had **no net variable rate debt**, as **short-term investments exceeded variable rate debt**[288](index=288&type=chunk) - IDACORP had **$2.0 billion** in **fixed rate debt**, with its fair value estimated to **increase** by approximately **$196 million** if market interest rates declined by one percentage point[289](index=289&type=chunk) [Commodity Price Risk](index=66&type=section&id=Commodity%20Price%20Risk) IDACORP's commodity price risk, largely mitigated by power cost adjustment mechanisms - IDACORP's commodity price risk, related to Idaho Power's utility operations, is **largely mitigated by Idaho and Oregon power cost adjustment mechanisms**[290](index=290&type=chunk) - Commodity price risk has **not materially changed** since the **2021** Annual Report[290](index=290&type=chunk) [Credit Risk](index=66&type=section&id=Credit%20Risk) IDACORP's management of credit risk through counterparty reviews and collateral requirements - IDACORP **manages credit risk through counterparty credit quality reviews, credit limits, and contractual arrangements**, including **collateral requirements**[291](index=291&type=chunk) - A **downgrade to below investment grade could trigger requests for approximately $12.8 million in additional performance assurance collateral** from wholesale counterparties[292](index=292&type=chunk)[293](index=293&type=chunk) [Equity Price Risk](index=67&type=section&id=Equity%20Price%20Risk) IDACORP's equity price risk from pension plan assets and other investments - IDACORP's **equity price risk stems from Idaho Power's defined benefit pension plan assets, a mine reclamation trust fund, and other equity security investments**[295](index=295&type=chunk) - Equity securities are **diversified across broad market participation** to **reduce the impact of single investments, sectors, or regions**[295](index=295&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Conclusion on the effectiveness of disclosure controls and internal control over financial reporting [Disclosure Controls and Procedures](index=67&type=section&id=Disclosure%20Controls%20and%20Procedures) Effectiveness of IDACORP's and Idaho Power's disclosure controls and procedures - IDACORP's and Idaho Power's **disclosure controls and procedures were deemed effective** as of March **31, 2022**[297](index=297&type=chunk)[298](index=298&type=chunk) [Changes in Internal Control over Financial Reporting](index=67&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting during Q1 2022 - **No material changes in internal control over financial reporting occurred** during Q1 **2022** for either IDACORP or Idaho Power[299](index=299&type=chunk) [Part II. Other Information](index=68&type=section&id=Part%20II.%20Other%20Information) Other information, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) Idaho Power's recent consent judgment with the Idaho Department of Environmental Quality - Idaho Power **entered a consent judgment with IDEQ** on April **7, 2022**, to **resolve a permitting issue for 15 hydroelectric projects**[302](index=302&type=chunk) - The judgment **requires Idaho Power to pay a $1.1 million fine, implement interim compliance measures, and submit applications for new permits**[302](index=302&type=chunk) - The issue **arose from a misinterpretation that led to the cancellation of water discharge permits** in the mid-**1990s**[302](index=302&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) Reference to external reports for factors that could materially affect the companies' business - Readers are **referred to the "Risk Factors" in the 2021 Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements"** in this report for factors that could **materially affect the companies' business and financial condition**[304](index=304&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Common stock details and confirmation of no share repurchases during the quarter - **Restrictions on dividend payments are detailed** in Note **6** - "Common Stock"[305](index=305&type=chunk) - IDACORP **did not repurchase any shares of its common stock** during Q1 **2022**[306](index=306&type=chunk) [Item 3. Defaults Upon Senior Securities](index=68&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirmation of no defaults upon senior securities during the reporting period - **No defaults upon senior securities were reported**[308](index=308&type=chunk) [Item 4. Mine Safety Disclosures](index=68&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures provided in an exhibit to the report - **Mine safety disclosures are provided** in Exhibit **95.1** of the report[309](index=309&type=chunk) [Item 5. Other Information](index=68&type=section&id=Item%205.%20Other%20Information) Confirmation that no other information is reported in this section - **No other information was reported** in this item[311](index=311&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) List of all exhibits filed or furnished with the Quarterly Report on Form 10-Q - **Key exhibits include** the Sixth Amendment to the Idaho Power Company Employee Savings Plan, the Term Loan Credit Agreement, and **various certifications** (e.g., Section **302** and **906** of Sarbanes-Oxley Act)[313](index=313&type=chunk) - **Mine Safety Disclosures are included** as Exhibit **95.1**[313](index=313&type=chunk) [Signatures](index=70&type=section&id=Signatures) Official signatures for IDACORP, Inc. and Idaho Power Company - The report is **signed by Lisa A. Grow (President and CEO) and Brian R. Buckham (SVP and CFO) for both IDACORP, Inc. and Idaho Power Company**[316](index=316&type=chunk)

Earnings Conference Call 4 th Quarter & Full-Year 2021 February 17, 2022 Forward-Looking Statements In addition to the historical information contained in this presentation, this presentation contains (and oral communications made by IDACORP, Inc. and Idaho Power Company may contain) statements, including, without limitation, earnings guidance and estimated key operating and financial metrics, that relate to future events and expectations and, as such, constitute forwardlooking statements within the meaning ...

Financial Data and Key Metrics Changes - IDACORP's Q4 2021 earnings per diluted share were $0.65, a decrease of $0.09 from the previous year's fourth quarter [4] - Full-year 2021 earnings per diluted share were $4.85, which was $0.16 above 2020, marking the highest earnings in the company's history and the 14th consecutive year of growth [4][5] - The company initiated its full-year 2022 earnings guidance estimate to be in the range of $4.85 to $5.05 per diluted share [5] Business Line Data and Key Metrics Changes - Customer growth remained strong, with a 2.8% increase in the customer base, now serving over 600,000 customers [10] - The company experienced record low totals for injury and vehicle accidents, highlighting a strong safety culture [6][7] - The quarterly common stock dividend increased from $0.71 to $0.75 per share, marking the tenth consecutive year of dividend increases [9] Market Data and Key Metrics Changes - Idaho led the U.S. in population growth rate for 2021, which is expected to continue attracting new business and residential customers [10] - Unemployment in the Idaho Power service area was at 1.8%, significantly below the national average of 3.9% [12] - Moody's GDP forecast predicts sustained economic growth of 5.9% in 2022 and 4.9% in 2023 for the Idaho Power service area [11] Company Strategy and Development Direction - The company is transitioning to a 100% clean energy future, with plans to convert two coal units to cleaner natural gas by summer 2024 and exit coal-fired generation entirely by 2028 [12][14] - The Integrated Resource Plan (IRP) anticipates a significant increase in capital expenditures, with nearly $800 million or 40% increase expected [12] - The company is focusing on enhancing transmission capabilities, with the Boardman to Hemingway high-voltage transmission project expected to be in service by 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving earnings without needing to go to customers for rate increases, while monitoring capital expenditures and operational costs closely [38][39] - The company is optimistic about future earnings growth driven by new large customers and ongoing infrastructure investments [40] - Management acknowledged the challenges posed by inflation and cost pressures but emphasized a commitment to maintaining flat operating and maintenance expenses [62] Other Important Information - The company has a strong balance sheet and investment-grade credit ratings, which are expected to support its growing capital expenditures and dividend plans [31][32] - Management changes were announced, with Steven Keen retiring and Brian Buchanan set to take over as CFO [19][20] Q&A Session Summary Question: Can you elaborate on the timing of the rate case? - Management indicated that capital plans, financing costs, and operational expenses are key factors influencing the timing of the rate case [38][39] Question: What is the long-term EPS trajectory? - Management noted that future earnings predictions will likely shift towards a rate base model, reflecting the company's growth and capital investments [40] Question: What is the company's approach to capital structure? - The company plans to prioritize debt financing to maintain a 50-50 capital structure, with equity issuance considered only when necessary [42][43] Question: Can you provide an update on the Boardman to Hemingway project? - Management confirmed that they expect to complete the state permitting process by the end of 2022 and are making progress on pre-construction activities [53][54] Question: How does the company view ownership versus PPAs? - The company prefers ownership of resources to ensure reliability and cost-effectiveness, while also recognizing the role of PPAs in their portfolio [78] Question: What are the future capacity plans? - Management emphasized the importance of diversifying energy sources, including solar, wind, and battery storage, while also considering new technologies like hydrogen [80][81]