IDACORP(US:IDA)2023-11-03 16:40Financial Data and Key Metrics Changes - IDACORP's Q3 2023 earnings per diluted share were $2.07, a slight decrease from $2.10 in Q3 2022. Year-to-date earnings per diluted share increased to $4.53 from $4.28 in the same period last year [3] - Year-to-date results included $7.5 million of additional tax credit amortization under Idaho regulatory stipulation [3][38] - Cash flow from operations improved due to regulatory approval for a $200 million increase in power supply costs, effective from June 1, 2023 [15] Business Line Data and Key Metrics Changes - Operating income was negatively impacted by a decrease in usage per customer, which reduced income by approximately $17 million in Q3 compared to the previous year [11] - O&M expenses were lower due to efficient operations and reduced scheduled maintenance, with full-year O&M expected to be between $385 million and $395 million [12][19] - Non-operating expenses increased slightly, driven by higher interest income and construction allowances, partially offset by increased interest expense on long-term debt [13] Market Data and Key Metrics Changes - Customer growth was reported at 2.3%, consistent with trends over recent years, with residential customer growth at 2.4% [106] - Transmission wheeling-related revenues decreased by $2.8 million due to reduced demand from less volatile energy prices [114] - The company anticipates a significant increase in CapEx for 2025-2027, estimating $2 billion to $2.5 billion, up from previous estimates of $1.5 billion to $1.7 billion [122] Company Strategy and Development Direction - The company is focused on supplying reliable, affordable, and clean energy while expanding its infrastructure to meet growing customer demand [5][130] - The Idaho Commission approved a settlement that includes a $54.7 million increase in annual retail revenues effective January 1, 2024, which will support ongoing infrastructure investments [6][118] - The company is committed to a clean energy future, with plans to provide 100% clean energy by 2045 and ongoing development of renewable resources [7][131] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment in Idaho and the positive outcomes from recent settlements [107][130] - The company expects to file more frequent general rate cases to support its capital investment plans [108] - Future earnings guidance for 2023 was raised to a range of $5.05 to $5.15 per diluted share, reflecting customer growth and effective O&M management [38][127] Other Important Information - The company plans to provide an update on its long-term CapEx forecast in February 2024, with current estimates for 2024 CapEx ranging from $850 million to $950 million [39] - The Board of Directors approved a 5% increase in the quarterly cash dividend, reflecting a commitment to shareholders [140] Q&A Session Summary Question: Insights on the 9.1% level for amortization and earned return basis - Management explained that depreciation and interest expenses create lag, and the ADITC mechanism allows for adjustments to reach the 9.12% level, with guidance expected in February [42] Question: Impact of third-quarter performance on guidance - The third quarter's performance was bolstered by customer growth and beneficial rate changes, despite lower sales to industrial customers [50][67] Question: Philosophy on owned versus procured resources in the IRP - The company aims to balance owned and procured resources, with ongoing evaluations of large load scenarios and competitive bidding processes [51][75] Question: Update on Micron and Meta projects - Management confirmed that both projects are progressing, with Micron's expansion on track and Meta's site excavation underway [76][78] Question: CapEx funding and balance sheet considerations - The company plans to blend debt and equity issuances to maintain a stable credit rating while managing increased CapEx [96][97]