IDACORP(US:IDA)2022-05-08 01:17Financial Data and Key Metrics Changes - IDACORP's Q1 2022 earnings per diluted share were $0.91, an increase of $0.02 from the same quarter last year, marking the highest first-quarter results in over two decades [7] - The company affirmed its full-year 2022 earnings guidance estimate to be in the range of $4.85 to $5.05 per diluted share, assuming normal weather conditions [8][40] - Operating income increased by $3 million due to customer growth, with a total increase in operating income of $9.3 million attributed to combined usage changes [28][29] Business Line Data and Key Metrics Changes - Customer growth in the Idaho Power service area was 2.6% year-over-year, with significant new connection requests from large load customers [10][12] - Increased economic activity led to a 4% rise in commercial customer usage and a 5% increase in industrial customer usage [29] - Operating and maintenance expenses increased by $6.4 million, returning to more normal levels after an abnormally low first quarter last year [34] Market Data and Key Metrics Changes - The unemployment rate in the Idaho Power service area is at 2.7%, significantly lower than the national average of 3.6% [11] - GDP growth is forecasted at 2.4% for 2022 and 5.1% for 2023, indicating sustained economic growth in the region [11][60] Company Strategy and Development Direction - IDACORP aims to achieve 100% clean energy by 2045, with plans to end coal operations at the Jim Bridger power plant by 2028 [16] - The company is pursuing a new rate class for large-scale cryptocurrency mining customers to mitigate financial risks [14] - IDACORP plans to invest over $400 million in capital expenditures from 2022 through 2025 to address projected capacity deficits [22] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures are impacting operating and maintenance expenses, but they remain committed to keeping these expenses relatively flat [42] - The company is monitoring weather conditions closely, with projections indicating warm and dry conditions for the summer, which could affect electricity demand [25][70] - Management expressed confidence in the continued growth of the customer base and economic activity in the service area [10][28] Other Important Information - IDACORP's first-quarter capital expenditures increased by 33% compared to the same period last year, primarily for battery storage projects and natural gas plant upgrades [36] - The company has a strong balance sheet and liquidity position, enabling it to fund its growing capital expenditures and maintain its dividend plan [38] Q&A Session Summary Question: Discussion on cryptocurrency tariffs and potential off-takers - Management indicated ongoing conversations with cryptocurrency companies but noted challenges in reaching agreements that meet all parties' needs [46][47] Question: Impact of inflation on operating and maintenance expenses - Management confirmed that inflation is putting pressure on expenses but is maintaining guidance for O&M costs [54] Question: Customer growth trends and supply chain disruptions - Management acknowledged that supply chain issues may be affecting customer growth but emphasized ongoing construction activity in the area [58] Question: Outlook for irrigation season and electricity demand - Management noted that hot and dry conditions are generally good for load, but they are monitoring water availability closely [61][70] Question: Financing additional capital expenditures - Management discussed the potential use of IDACORP's balance sheet to support capital expenditures, emphasizing a cautious approach to equity issuance [75][76]