IDACORP(US:IDA)2024-05-02 12:09Financial Performance - IDACORP reported a significant increase in net income for 2023, reaching $300 million, a 10% increase compared to the previous year[27]. - Net income for Q1 2024 was $48.268 million, down 13.0% from $56.024 million in Q1 2023[30]. - Net income attributable to IDACORP, Inc. for the three months ended March 31, 2024, was $48,173,000, compared to $56,098,000 for the same period in 2023, reflecting a decrease of about 14.1%[44]. - Net income attributable to IDACORP, Inc. for Q1 2024 was $47.3 million, compared to $55.7 million in Q1 2023, indicating a decrease of about 15.1%[136]. - The effective tax rate for IDACORP in Q1 2024 was -13.0%, compared to 11.2% in Q1 2023, indicating a significant change in tax expense[70]. Revenue and Customer Growth - Idaho Power's customer base grew by 5% year-over-year, adding approximately 10,000 new customers in 2023[27]. - Total operating revenues for Q1 2024 were $448.936 million, an increase of 4.3% compared to $429.659 million in Q1 2023[28]. - Total revenues for the first quarter of 2024 increased by 12% compared to the first quarter of 2023, primarily due to an increase in wheeling volumes[163]. - Retail revenues per MWh increased operating income by $4.5 million in the first quarter of 2024, attributed to an overall increase in Idaho base rates effective January 1, 2024[162]. - The number of retail customers grew by 2.5% year-over-year, totaling 636,116 customers as of March 31, 2024[182][191]. Capital Expenditures and Investments - The company anticipates capital expenditures of $500 million in 2024, focusing on infrastructure improvements and renewable energy projects[20]. - Idaho Power plans to expand its renewable energy portfolio, targeting a 20% increase in renewable generation capacity by 2025[20]. - The company is investing in advanced energy storage technologies to improve grid stability and support renewable integration[20]. - Additions to property, plant, and equipment were $259.978 million in Q1 2024, significantly higher than $118.375 million in Q1 2023[39]. - Idaho Power expects significant capital expenditures on infrastructure investments over the next five years to address projected energy and capacity deficits[171]. Operating Expenses and Financial Health - Total operating expenses increased to $399.340 million in Q1 2024, up 10.4% from $361.556 million in Q1 2023[28]. - Total operating expenses for the three months ended March 31, 2024, were $398,644,000, an increase from $360,511,000 in the prior year, marking an increase of approximately 10.6%[44]. - Total current liabilities decreased to $505.376 million as of March 31, 2024, from $634.076 million at the end of 2023[36]. - The company’s total assets decreased to $8,187,879,000 as of March 31, 2024, from $8,323,531,000 at the end of December 2023, a decrease of approximately 1.6%[49]. - IDACORP's overall financial health is supported by a strong balance sheet, with total assets reported at $4 billion as of December 31, 2023[27]. Regulatory and Market Challenges - The company is facing regulatory challenges, including potential changes to cost recovery mechanisms that could impact future earnings[20]. - Idaho Power filed a general rate case in December 2023, requesting a $10.7 million increase, or 19.28%, based on a 2024 test year[73]. - In March 2024, Idaho Power requested a $35.7 million net decrease in PCA revenues for the 2024-2025 collection period, reflecting improved hydropower generation forecasts[78]. - The FCA mechanism update filed in March 2024 included a request to recover a $36.8 million balance, an increase of $11.7 million from the previous year[79]. - The company actively monitors environmental regulations that may impact future operations but is currently unable to estimate their financial impact[105]. Dividend and Shareholder Returns - IDACORP's dividend payout ratio remains strong at 60%, with plans to maintain or increase dividends based on financial performance[20]. - The company’s common stock dividends increased to $42,308,000 for the three months ended March 31, 2024, compared to $40,343,000 in the same period of 2023, an increase of approximately 4.9%[44]. - IDACORP plans to use original issuances of shares for its Dividend Reinvestment and Stock Purchase Plan starting in the second half of 2024[203]. Energy Generation and Sales - Idaho Power's hydropower generation is at risk due to variable hydrological conditions, which may affect power supply costs[20]. - Total energy sales increased to 4,690 thousand MWh in Q1 2024 from 4,251 thousand MWh in Q1 2023, with hydropower generation rising to 1,749 thousand MWh[175]. - Retail energy sales decreased to 3,599 thousand MWh in Q1 2024 from 3,690 thousand MWh in Q1 2023, while wholesale energy sales increased to 404 thousand MWh from 208 thousand MWh[175]. - Hydropower generation, coal generation, and natural gas generation contributed to a 24% increase in total system generation in Q1 2024 compared to Q1 2023[180]. - The power cost adjustment mechanism resulted in a total power cost adjustment of $22.4 million in Q1 2024, compared to a negative adjustment of $51.3 million in Q1 2023[198]. Debt and Financing - Idaho Power has $1.2 billion available for debt issuance under regulatory orders, effective through December 31, 2026[86]. - As of March 31, 2024, IDACORP's leverage ratio was 49%, allowing for dividends up to $1.4 billion, while Idaho Power's leverage ratio was 50%, allowing for dividends up to $1.3 billion[93]. - Net financing cash outflows for Q1 2024 were $45 million for IDACORP and $43 million for Idaho Power, a decrease of $425 million and $466 million compared to the same period in 2023[212]. Employee and Pension Costs - For the three months ended March 31, 2024, the net periodic benefit cost for the pension plan was $8.979 million, compared to $4.528 million for the same period in 2023[110]. - Idaho Power made no contributions to its defined benefit pension plan during the three months ended March 31, 2024, but is considering contributing up to $30 million in 2024[111]. - Total other O&M expenses increased by $13.8 million in Q1 2024 compared to Q1 2023, driven by $4 million in pension-related expenses and $8 million in wildfire mitigation program expenses[165].