IDACORP(IDA)2023-05-07 11:43Financial Data and Key Metrics Changes - IDACORP's first quarter 2023 earnings per diluted share were $1.11, an increase from $0.91 in the same quarter last year [3] - The company affirms its full-year 2023 earnings guidance in the range of $4.95 to $5.15 per diluted share, assuming normal weather conditions and a return to more normal power supply expenses [3][21] - Customer growth of 2.2% added $2.7 million to operating income, with residential customer growth at 2.4% [12][33] Business Line Data and Key Metrics Changes - The increase in operating income was driven by a $5.1 million rise in transmission wheeling-related revenues due to energy price volatility [42] - A notable increase of $8.5 million in operating income was attributed to changes in net-per-megawatt-hour revenue, influenced by the Idaho order for the Jim Bridger plant [41] - O&M expenses remained flat quarter-over-quarter despite inflation-related pressures, aided by cost management efforts [15] Market Data and Key Metrics Changes - The economy within Idaho Power's service area is projected to grow at 4.7% in 2023 and 4.4% in 2024, outperforming national trends [6] - Employment in the service area has increased by 2% since the first quarter of 2022, indicating a robust local economy [6] Company Strategy and Development Direction - IDACORP plans to file a general rate case with the Idaho Commission on June 1, requesting rate changes effective January 1, 2024, while aiming to keep the request below 10% [35] - The company is focusing on significant infrastructure investments to support a growing customer base, with a forecasted annual growth rate of 5.5% on retail sales over the next five years [38][39] - The Boardman-to-Hemingway transmission line project is expected to break ground this year, which will be crucial for meeting increasing demand [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic outlook for the service area, citing strong customer growth and ongoing inquiries from commercial entities [40][54] - The company anticipates continued inflationary pressures but remains focused on managing costs effectively [15][49] - Management highlighted the importance of upcoming rate cases to support future growth and infrastructure investments [91] Other Important Information - The company expects capital expenditures for 2023 to be in the range of $650 million to $700 million [22] - IDACORP has lifted its hydropower generation forecast for the year to between 6 million and 7.5 million megawatt-hours [22] Q&A Session Summary Question: What is the outlook for customer growth given recent economic factors? - Management indicated that the recent slowdown in customer growth appears to be more related to rising interest rates rather than a significant economic downturn [53] Question: Can you provide details on the BPA interest acquisition on B2H? - The total cost for the acquisition from BPA is around $41 million, with payments structured over time [55] Question: What is the expected timeline for the Boardman-to-Hemingway project? - The project is targeted for commercial operation in summer 2026, with a capital expenditure range of $1.1 billion to $1.3 billion [67] Question: How does the company plan to manage regulatory lag? - Management noted that while there is no specific regulatory lag number, they aim to execute well in the regulatory arena to recover costs timely [119]