IDACORP, Inc. Q4 FY2025 earnings call

• 2025 was busy and exciting with 18th consecutive EPS growth, record energy sales, B2H transmission project groundbreaking, top reliability scores, and general rate case settlement. • Customer base grew 2.3% in 2025 with residential up 2.5%, and major industrial projects like Micron's semiconductor facility, Meta's data center, Tractor Supply warehouse, and Chobani's yogurt facility expansion. • Affordability is a key focus with rates increasing slower than national averages and not planning to file rate case in 2026. • Major infrastructure projects like B2H, SWIP-North, and Gateway West transmission projects are in progress. • Resource planning includes adding generation and storage resources, converting Valmy coal-fired power plant units to natural gas, and filing requests for CPCNs for new resources. • Sold Oregon distribution and some transmission assets for business simplification and capital for Idaho growth.

IDACORP's diluted earnings per share were $5.90 in 2025, up from $5.50 last year, marking 18th consecutive year of EPS growth. Idaho Power's customer base grew 2.3% in 2025, including 2.5% for residential customers. 2025 saw 200-megawatt Pleasant Valley Solar project and 230 megawatts of battery storage added. Idaho Power is adding generation and storage resources, with plans to construct 167 megawatts of natural gas fuel generating capacity next to Bennett Mountain Power Plant in 2028. Oregon distribution system and some transmission assets were sold with base purchase price of $154 million.

• Initiated 2026 IDACORP earnings guidance in range of $6.25 to $6.45 diluted EPS, assuming historically normal weather and normal power supply expenses. • 2026 O&M expense expected to be $525 million to $535 million with wildfire mitigation costs offset by general rate case revenues. • Anticipate spending $1.3 billion to $1.5 billion on CapEx in 2026. • Hydropower generation expected to be 5.5 million to 7.5 million megawatt hours in 2026.

• Risks and uncertainties related to forward-looking statements, including earnings guidance, spending forecast, etc., which may cause actual results to differ. • Weather conditions could impact earnings and operations. • Regulatory approvals for asset sales and transmission projects may face delays. • Inflationary pressure on labor and professional services could affect O&M expenses. • Uncertainty regarding the impact of large load customers on cost shifting and earnings.

Q: Update on customer load pipeline and new companies in service territory.

A: Inquiries are strong from diverse industries, including data centers, manufacturing, etc., with many under NDA.

Q: Equity needs and funding split for incremental CapEx.

A: Incremental CapEx likely 50-50 debt equity, with large load cash flow impacting needs.

Q: Micron Fab 2 investment opportunity.

A: Working with Micron to determine size, no public load ramp yet.

Q: Large load tariff standardization.

A: No plans for standardized tariff currently, each customer has unique needs.

Q: Upside in CapEx and ADITC usage.

A: Looking at RFP in post 2031, '32 time frame, ADITC usage influenced by multiple factors.

Q: Weather impact on hydropower and irrigation sales.

A: Hydrologists optimistic with normal levels on east side, but fluctuations exist.

Q: Rate case cadence and residential growth.

A: Cadence depends on financial situation, residential growth affected by interest rates and housing activity.

Q: Depreciation and interest expense tracker regulatory standpoint.

A: Will keep eye on, not working on right now.

Q: Dividend payout target.

A: Always looking at, trying to balance investing in company and dividends.