IDACORP(US:IDA)2025-10-30 12:24Financial Performance - IDACORP reported a net income of $124.4 million for Q3 2025, an increase of $10.8 million compared to $113.6 million in Q3 2024, resulting in earnings per diluted share of $2.26, up from $2.12[1][6] - For the first nine months of 2025, net income increased by $28.6 million compared to the same period in 2024, driven by higher net income at Idaho Power[14] - IDACORP raised its full-year 2025 earnings guidance to a range of $5.80 to $5.90 per diluted share, up from the previous range of $5.70 to $5.85[3][23] Revenue and Customer Growth - Customer growth contributed $7.8 million to operating income in Q3 2025, with an increase of approximately 15,000 customers, or 2.3%, year-over-year[8] - Retail revenues per megawatt-hour (MWh) increased operating income by $17.6 million in Q3 2025, primarily due to an overall increase in Idaho base rates effective January 1, 2025[7][15] - The net increase in retail revenues per MWh for the first nine months of 2025 was $37.2 million, largely due to the increase in Idaho base rates[15] Expenses - Total other operations and maintenance (O&M) expenses increased by $4.2 million in Q3 2025, driven by inflationary pressures and increased wildfire mitigation expenses[9] - Depreciation and amortization expenses rose by $8.1 million in Q3 2025, attributed to an increase in plant-in-service and the start of operations at a leased battery storage facility[10][18] - Non-operating expenses increased by $9.8 million in Q3 2025, primarily due to higher interest expenses from long-term debt and transmission customer deposits[12][20] Risks and Challenges - IDACORP and Idaho Power face risks related to regulatory decisions impacting cost recovery and return on investment[27] - The company is exposed to expenses and risks from capital expenditures and potential delays in utility infrastructure projects[27] - Economic conditions, including inflation and interest rates, may affect operations, capital investments, and customer demand for electricity[27] - The rapid addition of new industrial and commercial customer load presents risks of power demand exceeding available supply[27] - Changes in tax laws and regulations could impact financial performance and the availability of expected tax credits[27] - The ability to obtain debt and equity financing is influenced by credit ratings and market conditions[27] - Idaho Power's concentration in one region exposes it to regional economic conditions and legislation[27] - The company may incur remediation costs associated with the planned cessation of coal-fired operations[27] - The ability to continue paying dividends is contingent on financial performance and regulatory limitations[27] - Changes in accounting policies and new SEC requirements may affect financial reporting and obligations[27] Tax Credits - IDACORP expects Idaho Power to utilize between $50 million and $60 million of additional tax credits in 2025 under the Idaho regulatory mechanism[3][23]