IDACORP(IDA)2023-08-06 10:24Financial Data and Key Metrics Changes - IDACORP's Q2 2023 earnings per diluted share were $1.35, up from $1.27 in Q2 2022, with year-to-date earnings at $2.46 compared to $2.18 in the first half of 2022 [7] - The company reaffirmed its full-year 2023 earnings guidance in the range of $4.95 to $5.15 per diluted share, assuming normal weather conditions [11][66] - Cash flows from operations returned to positive territory after regulatory lag effects from high power and fuel costs [65] Business Line Data and Key Metrics Changes - Customer growth was 2.1% year-over-year, contributing $4.1 million to operating income, with residential customer growth at 2.3% [33] - Industrial sales volumes and revenues increased, but industrial per customer usage declined by 5% due to lower economic activity in some sectors and maintenance at a large customer's facility [34] - Transmission wheeling-related revenues increased operating income by $1.7 million due to elevated energy prices [35] Market Data and Key Metrics Changes - Moody's GDP forecast for the service area predicts strong growth of 5.5% in 2023 and 3.9% in 2024, with employment increasing by 1.6% since Q2 2022 [17] - The company expects hydropower generation to be between 6 million to 7.5 million megawatt hours for the year, compared to 5.3 million last year [59] Company Strategy and Development Direction - The company is focused on growth, rate cases, and infrastructure, with a general rate case filed in Idaho requesting an 8.61% rate increase [18] - A five-year forecasted annual growth rate of 5.5% on retail sales and 3.7% on annual peak is anticipated, driven by large load customers [21] - Major infrastructure projects like the Boardman-to-Hemingway project are underway, with construction expected to begin soon [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued customer growth and a stable economic environment, despite some cyclical trends in certain industries [50] - The company is focused on converting coal to gas in its plants as part of its clean energy goals, with ongoing evaluations in the Integrated Resource Plan [53][54] - Management acknowledged inflationary pressures but noted lower O&M expenses due to efficient operations [41] Other Important Information - The company plans to file a general rate case in Oregon late this year or early next year [20] - The capital expenditure for 2023 is expected to be in the range of $650 million to $700 million, with potential increases for 2024 [112] Q&A Session Summary Question: Overview of customer growth and economic activity - Management noted steady growth across sectors, with residential permits starting to recover and no alarming trends observed [49] Question: Impact of proposed new GHG rules on plants - Management confirmed ongoing focus on converting coal plants to gas, with current developments not impacting this year's usage [53] Question: Drivers of increased CapEx for 2024 - Management indicated inflationary costs and an increase in the number of projects as key drivers for higher CapEx [56] Question: Status of the Boardman-to-Hemingway project - Management confirmed that negotiations for land rights are ongoing and construction is expected to begin in the fall [90] Question: Relationship with regulators regarding the rate case - Management expressed confidence in their relationship with regulators, emphasizing open communication and a strong case for the rate increase [104]