IDACORP, Inc. Q2 FY2025 earnings call

• Customer Growth: Idaho Power's customer base grew 2.5% since Q2 2024, including 2.7% residential. Notable new customers: Micron's second fab in Boise, ValorC3 data centers expansion, Tesla's 6 new EV fast charging stations.
• Infrastructure Projects: Broke ground on Boardman-to-Hemingway transmission line; brought 80MW battery project online; working on Gateway West and Swift North transmission lines. Jackalope Wind project in Wyoming faces hurdles due to federal actions.
• IRP: 2025 IRP recommends more gas-fired resources for system flexibility. Filed 2029 RFP final shortlist with mix of renewable and gas projects.
• Regulatory: Idaho Power filed general rate case in May, seeking ~$199M rate increase, 51% equity ratio, 10.4% ROE, and adding ADITCs to regulatory mechanism.

IDACORP's diluted earnings per share were $1.76 in Q2 2025 compared with $1.71 in Q2 2024. For the first half of 2025, diluted earnings per share were $2.87 versus $2.67 in 2024. In Q2 2025, Idaho Power recorded $17.2 million of additional tax credit amortization compared with $7.5 million in Q2 2024. For the first half of 2025, additional tax credit amortization was $36.5 million versus $20 million in the first half of 2024. IDACORP's net income increased $6.3 million for Q2 2025 compared with Q2 2024, driven by higher retail revenues, customer growth, warmer/drier weather leading to higher usage, and incremental tax credits, partially offset by higher depreciation, interest, and O&M expenses.

• Raised lower end of full year IDACORP diluted EPS guidance to $5.70-$5.85.
• Expect Idaho Power to use $60M-$77M of additional tax credit amortization full year.
• Full year O&M expense expected $465M-$475M.
• CapEx expected $1B-$1.1B.
• Hydropower generation range 7M-8M megawatt hours.

• Uncertainty around constructability of renewable projects like Jackalope Wind due to federal actions.
• Regulatory lag from historic test year approach in rate case, addressed by proposing new depreciation and interest expense tracking mechanism.
• Volatility in tariffs affecting CapEx forecasts.

Q: Chris Ellinghaus asked about the number of potential connections in the pipeline and if they were in IRP numbers.

A: Lisa Grow said she didn't have the exact number, mostly data centers with some smaller projects; Brian Buckham added it's beyond the 5-year window in IRP.

Q: Brian Russo asked about RFPs and gas correlation.

A: Lisa Grow and Brian Buckham explained the RFP process involves evaluating projects based on current load needs, with the 160-megawatt self-built gas plant in the '29 RFP shortlist correlating to gas needs in the IRP.