IDACORP(IDA)2020-07-30 11:54Financial Performance - Electric utility revenues for Q2 2020 were $317.666 million, a slight increase from $315.774 million in Q2 2019, while total operating revenues decreased to $318.766 million from $316.895 million[19]. - Net income attributable to IDACORP, Inc. for Q2 2020 was $60.389 million, compared to $53.156 million in Q2 2019, representing an increase of approximately 13.3%[19]. - Earnings per share (EPS) for Q2 2020 were $1.19, up from $1.05 in Q2 2019, reflecting a growth of about 13.3%[19]. - Total operating expenses for Q2 2020 were $239.326 million, down from $245.115 million in Q2 2019, indicating a decrease of approximately 2.9%[19]. - The company reported a total electric utility expense of $238.390 million for Q2 2020, compared to $244.025 million in Q2 2019, a reduction of about 2.3%[19]. - Net income for the three months ended June 30, 2020, was $60,659,000, an increase of 13.6% compared to $53,400,000 for the same period in 2019[22]. - Total comprehensive income attributable to IDACORP, Inc. for the six months ended June 30, 2020, was $99,373,000, compared to $96,818,000 for the same period in 2019, reflecting a growth of 2.6%[22]. - Operating revenues for the three months ended June 30, 2020, were $317,666,000, a slight increase from $315,774,000 in the same period of 2019, while six-month revenues decreased to $608,154,000 from $665,546,000[36]. - Net income for the three months ended June 30, 2020, was $58,923,000, compared to $51,176,000 in 2019, representing a year-over-year increase of 15.5%, while six-month net income rose to $95,700,000 from $92,760,000[38]. - The company reported a total comprehensive income of $59,670,000 for the three months ended June 30, 2020, up from $51,664,000 in 2019, indicating a 15.5% increase[38]. Assets and Liabilities - Cash and cash equivalents increased to $460,365,000 as of June 30, 2020, from $217,254,000 at the end of 2019, representing a significant increase of 111.7%[25]. - Total current assets rose to $828,041,000 as of June 30, 2020, compared to $565,146,000 at the end of 2019, marking an increase of 46.5%[25]. - Long-term debt increased to $2,000,455,000 as of June 30, 2020, from $1,736,659,000 at the end of 2019, indicating a rise of 15.2%[28]. - Total assets as of June 30, 2020, were $6,860,477,000, compared to $6,494,159,000 at the end of 2019, marking an increase of 5.6%[43]. - The current portion of long-term debt increased to $175,000,000 from $100,000,000, indicating a rise of 75%[43]. - Long-term debt, including current portions, increased to $2,175,455,000 as of June 30, 2020, from $2,083,931,000 at the end of 2019[128]. Regulatory and Operational Challenges - The company anticipates continued challenges due to the impacts of the COVID-19 pandemic on loads and revenues, which may affect future financial performance[16]. - IDACORP's management highlighted the importance of regulatory cost recovery mechanisms in maintaining financial stability and performance[16]. - The company is focused on integrating renewable energy sources into its resource portfolio, which may lead to increased operational challenges and costs[16]. - The financial statements reflect the effects of different ratemaking principles, impacting the timing of revenue and expense recognition[51]. - Management's estimates for financial statements include assumptions related to rate regulation and bad debt, which could materially impact financial results[53]. - The power cost adjustment mechanisms allow Idaho Power to recover or refund fluctuations in power supply costs, with a cost-sharing ratio of 95% for customers and 5% for Idaho Power[199]. Customer and Revenue Trends - Idaho Power's customer count grew by nearly 7,200 customers, resulting in a customer growth rate of 2.6% for the twelve months ended June 30, 2020[150]. - Retail energy sales increased by 5% in the second quarter of 2020 compared to the same period in 2019, while total energy sales decreased by 6%[175]. - Total retail revenues for Q2 2020 were $277.994 million, up from $268.399 million in Q2 2019, while total retail revenues for the first half of 2020 were $534.409 million, down from $536.102 million in the first half of 2019[183]. - Wholesale energy revenues decreased by $9.3 million in Q2 2020 and $52.6 million in the first half of 2020 compared to the same periods in 2019, with wholesale MWh sold down 53% and 65% respectively[189]. - The average wholesale energy revenues per MWh decreased by 9% in Q2 2020 and 52% in the first half of 2020 compared to the same periods in 2019[189]. Expenses and Cost Management - Total operating expenses for the three months ended June 30, 2020, were $238,390,000, down from $244,025,000 in 2019, with a six-month total of $476,707,000 compared to $535,063,000[36]. - Other operations and maintenance expenses were $3.9 million lower in the second quarter of 2020 compared to the same period in 2019[163]. - Fuel expense increased by $10.6 million, or 51%, in Q2 2020 compared to Q2 2019, but decreased by $11.3 million, or 15%, in the first six months of 2020 compared to the same period in 2019[198]. - Total fuel expense for the first six months of 2020 was $61.43 million, down from $72.70 million in the same period of 2019[198]. Capital Expenditures and Investments - Total capital expenditures are expected to be approximately $1.6 billion over the five-year period from 2020 through 2024[150]. - Idaho Power's contractual purchase obligations increased by approximately $28 million over 20 years due to new contracts with hydropower facilities[89]. - The company is undertaking significant infrastructure investments, including major transmission projects like Boardman-to-Hemingway and Gateway West[172]. Tax and Regulatory Updates - Income tax expense for the six months ended June 30, 2020, was $10,821,000 for IDACORP, compared to $11,344,000 for the same period in 2019, reflecting an effective tax rate of 9.9%[60]. - Idaho Power's estimated annual effective tax rate for 2020 is consistent with 2019, with no significant changes in regulatory flow-through tax adjustments[61]. - Idaho Power recorded no additional amortization of accumulated deferred investment tax credits (ADITC) for 2020, with $45 million of ADITC remaining available for future use[65]. Derivative Instruments and Risk Management - Idaho Power uses derivative instruments to manage market risks related to electricity and fuel commodity prices, ensuring reliability and economic use of surpluses[105]. - The total fair value of derivative instruments with credit-risk-related contingent features in a liability position was $6.7 million as of June 30, 2020, with $3.6 million posted as cash collateral[112]. - The company did not have material credit risk exposure from financial instruments, including derivatives, as of June 30, 2020[110].