Research · Sep 3, 2026
[IDA] Idacorp Thesis 2026: Idaho Power Drives Hydro Data Center Load Growth Capital Return
IDACORP, Inc. (NYSE: IDA) FY2025 revenue ~$1.85-1.95B (+5-10%) with adj. EPS ~$5.85-6.10 reflecting continued post-2024 ~$1.85-1.95B aggregate Idaho Power regulated electric utility revenue (~$1.85-1.95B aggregate Idaho Power + ~$5-10M aggregate IDACORP Financial Services) under continued President + CEO Lisa Grow since June 2020 (~5-year tenure as Idacorp CEO). The holding company for Idaho Power Company, one of the largest US specialty Western US vertically integrated regulated electric utilities. Founded 1916 as Idaho Power Company in Boise Idaho (~109-year heritage; selected primary 1998 IDACORP holding company formation); selected post-1998 IDACORP holding company formation + NYSE listing; selected post-June 2020 Lisa Grow CEO appointment; selected post-2023 Idaho data center hyperscale + semiconductor manufacturing customer expansion (Meta + Micron); selected post-2024 Jim Bridger + Valmy coal-to-gas transition pipeline (~$0.5-0.8B cumulative capex); selected post-2024 ~$5B+ FY2024-2029 cumulative capital expenditure plan. Headquartered in Boise Idaho; ~2,000-2,200 employees globally with Idaho ~96%+ + Oregon ~4% service territory. One primary business: Idaho Power vertically integrated regulated electric utility ~99%+. Structure: Idaho Power Electric Utility ~99%+ ($1.85-1.95B), IDACORP Financial Services ~1% ($5-10M). Geographic mix: Idaho ~96%+ + Oregon ~4%. Idaho Power Hydro + Natural Gas + Coal-to-Gas Transition pipeline: ~$1.85-1.95B Idaho Power revenue (~99%+); selected primary Idaho Power vertically integrated regulated electric utility; selected ~$3.8-4.0B net plant in service; selected ~3.6-3.9GW generation capacity; selected ~30-35% Hydro + ~35-40% Natural Gas + ~15-20% Coal (Jim Bridger + Valmy) + ~10-15% Renewable generation mix; selected post-2024 Jim Bridger + Valmy coal-to-gas transition pipeline ($0.5-0.8B cumulative capex). Idaho Data Center + Load Growth + Capex pipeline ($5B+ FY2024-2029): selected continued post-2023 Idaho data center load growth (Meta + Micron + hyperscale + semiconductor manufacturing capital intensity exposure); selected ~6-8% annual sales growth target; selected ~$5B+ FY2024-2029 cumulative capital expenditure plan ($0.8-1.1B annual Capex post-2024; $0.5-0.8B Jim Bridger + Valmy coal-to-gas; $1.5-2.0B transmission expansion; $1.0-1.5B Renewable additions). President + CEO Lisa Grow since June 2020 (~5-year tenure); CFO Brian Buckham. Capital position: ~$3.40 aggregate annual dividend (~57%+ aggregate payout ratio; ~3.0-3.5% aggregate dividend yield; ~13+ year dividend increase track record); minimal opportunistic buybacks; aggregate capital return ~$185-190M FY2025; net leverage ~5.0-5.5x Net Debt/EBITDA; investment-grade A3/A- credit rating (Idaho Power) + Baa1/A- credit rating (IDACORP); ~53-55M diluted shares; weighted average debt maturity ~10-12 years. FY2026 thesis: Idaho Power Hydro + Natural Gas + Coal-to-Gas Transition pipeline + Idaho Data Center + Load Growth + Capex pipeline + ~$5B+ FY2024-2029 cumulative capex + ~6-8% annual sales growth + ~13+ year dividend increase track record. Risks: PacifiCorp (Berkshire Hathaway-owned) + Avista + Portland General Electric + NorthWestern Energy + Black Hills + Pinnacle West Capital competitive displacement + Idaho Public Utilities Commission (IPUC) + Oregon Public Utility Commission (OPUC) regulated rate cycle considerations + post-2024 Jim Bridger + Valmy coal-to-gas transition execution considerations + Hydro generation cycle considerations (snowpack + Pacific Northwest weather) + Meta + Micron + hyperscale + semiconductor data center customer concentration considerations + Federal Reserve interest rate cycle considerations + post-2020 Lisa Grow CEO succession planning considerations.