IDACORP(US:IDA)2022-11-03 11:46Part I. Financial Information Item 1. Financial Statements (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 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 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 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 20226971 - 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 20227273 - 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, 202285 - 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 hedges111112114 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 customers160164 - 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 plants168177215 - 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 investments160219266 Quantitative and Qualitative Disclosures About Market Risk 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 million332 - 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 contracts245336 Controls and Procedures 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 report340341 - 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 controls342 Part II. Other Information Legal Proceedings No material legal proceedings were reported for the period - There are no material legal proceedings to report344 Risk Factors 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 changes345 Unregistered Sales of Equity Securities and Use of Proceeds 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 2022347 Defaults Upon Senior Securities No defaults upon senior securities were reported - There were no defaults upon senior securities during the period349 Mine Safety Disclosures 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 Act350 Other Information No other information was reported for the period - There is no other information to report for the period352 Exhibits This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files