IDACORP(US:IDA)2022-02-18 01:55Financial Data and Key Metrics Changes - IDACORP's Q4 2021 earnings per diluted share were $0.65, a decrease of $0.09 from the previous year's fourth quarter [4] - Full-year 2021 earnings per diluted share were $4.85, which was $0.16 above 2020, marking the highest earnings in the company's history and the 14th consecutive year of growth [4][5] - The company initiated its full-year 2022 earnings guidance estimate to be in the range of $4.85 to $5.05 per diluted share [5] Business Line Data and Key Metrics Changes - Customer growth remained strong, with a 2.8% increase in the customer base, now serving over 600,000 customers [10] - The company experienced record low totals for injury and vehicle accidents, highlighting a strong safety culture [6][7] - The quarterly common stock dividend increased from $0.71 to $0.75 per share, marking the tenth consecutive year of dividend increases [9] Market Data and Key Metrics Changes - Idaho led the U.S. in population growth rate for 2021, which is expected to continue attracting new business and residential customers [10] - Unemployment in the Idaho Power service area was at 1.8%, significantly below the national average of 3.9% [12] - Moody's GDP forecast predicts sustained economic growth of 5.9% in 2022 and 4.9% in 2023 for the Idaho Power service area [11] Company Strategy and Development Direction - The company is transitioning to a 100% clean energy future, with plans to convert two coal units to cleaner natural gas by summer 2024 and exit coal-fired generation entirely by 2028 [12][14] - The Integrated Resource Plan (IRP) anticipates a significant increase in capital expenditures, with nearly $800 million or 40% increase expected [12] - The company is focusing on enhancing transmission capabilities, with the Boardman to Hemingway high-voltage transmission project expected to be in service by 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving earnings without needing to go to customers for rate increases, while monitoring capital expenditures and operational costs closely [38][39] - The company is optimistic about future earnings growth driven by new large customers and ongoing infrastructure investments [40] - Management acknowledged the challenges posed by inflation and cost pressures but emphasized a commitment to maintaining flat operating and maintenance expenses [62] Other Important Information - The company has a strong balance sheet and investment-grade credit ratings, which are expected to support its growing capital expenditures and dividend plans [31][32] - Management changes were announced, with Steven Keen retiring and Brian Buchanan set to take over as CFO [19][20] Q&A Session Summary Question: Can you elaborate on the timing of the rate case? - Management indicated that capital plans, financing costs, and operational expenses are key factors influencing the timing of the rate case [38][39] Question: What is the long-term EPS trajectory? - Management noted that future earnings predictions will likely shift towards a rate base model, reflecting the company's growth and capital investments [40] Question: What is the company's approach to capital structure? - The company plans to prioritize debt financing to maintain a 50-50 capital structure, with equity issuance considered only when necessary [42][43] Question: Can you provide an update on the Boardman to Hemingway project? - Management confirmed that they expect to complete the state permitting process by the end of 2022 and are making progress on pre-construction activities [53][54] Question: How does the company view ownership versus PPAs? - The company prefers ownership of resources to ensure reliability and cost-effectiveness, while also recognizing the role of PPAs in their portfolio [78] Question: What are the future capacity plans? - Management emphasized the importance of diversifying energy sources, including solar, wind, and battery storage, while also considering new technologies like hydrogen [80][81]