IDA

• Customer Growth

  • Total customer accounts increased 2.3% year-over-year, with growth across all customer segments
  • Load growth from large industrial and data center customers remains strong, with the large customer pipeline totaling multiple gigawatts
  • New large customer agreements include take-or-pay provisions, termination payments, upfront payments, and strict credit requirements to ensure growth pays for itself without shifting costs to existing customers
  • Revenue growth from large customers has allowed IDACORP to avoid a 2026 general rate case
  • Retail prices remain approximately 30% below the national average, and affordability remains a core priority

• Operational Project Execution

  • 250 MW of new company-owned battery storage was brought online as scheduled in Q2, bringing total company-owned battery capacity added since 2023 to over 550 MW
  • The Balmy Unit 2 conversion from coal to natural gas was completed in Q2, ahead of the 2026 peak summer load season
  • A 125 MW third-party-owned solar project was recently commissioned under the Clean Energy Your Way program

• Transmission Project Updates

  • Boardman to Hemingway (B2H): 70% of structure pads are complete, over 400 towers are built, and wire stringing has begun; remains on track for in-service by late 2027
  • Swift North Transmission Project: CPCN received from the Idaho Commission in December 2025, construction recently started in Nevada; on track for completion in 2028
  • Gateway West Transmission Project: Joint CPCN request filed with IPUC, with a portion of the line expected online as soon as 2028
  • All three projects will add system flexibility, access to diverse markets, and transmission wheeling revenues

• Natural Gas Generation Projects

  • 167 MW Bennett Mountain natural gas project: Construction is underway, CPCN and air permit secured, EPC contract awarded; scheduled for in-service in 2028
  • 222 MW South Hills natural gas project: CPCN filed; scheduled for operation in 2029
  • 430 MW Peregrine natural gas project: CPCN filed; slated for in-service in 2030
  • These dispatchable projects will address near-term capacity deficits

• Other Key Updates

  • The 2032 RFP bid evaluation is ongoing; multiple self-bid projects remain competitive, a final shortlist is expected in Q3 2026, and contract negotiations will begin shortly after the shortlist is finalized
  • The proposed sale of IDACORP's Oregon distribution system to OTEC has had approval applications filed with all required regulators; closing is expected in spring 2027 pending regulatory approval
  • The Idaho Commission approved prudence for all Hells Canyon relicensing expenditures from 2016 through 2025, making these costs eligible for inclusion in future retail rates
  • IDACORP has completed roughly half of its $2 billion 5-year equity funding requirement via at-the-market issuances and forward sales, covering all equity needs through 2027

• IDACORP raised the lower bound of its 2026 diluted EPS guidance by 5 cents, setting a new full-year range of $6.30 to $6.45, driven by strong Q2 2026 operational performance
  • Guidance assumes historically normal weather conditions for the remainder of 2026
• Additional tax credit amortization (ADITC) guidance was cut by 50%: IDACORP now expects Idaho Power to use less than $15 million of ADITC for full-year 2026, down from the prior guidance of less than $30 million
• Full-year 2026 O&M expense guidance is maintained at $525 million to $535 million
• 2026 CapEx guidance is maintained at $1.3 billion to $1.5 billion, with current trends pointing toward the high end of the range
  • Published CapEx forecasts do not include resources from the 2032 RFP, infrastructure for the Micron Fab 2 project, or updates from the annual long-term capital budgeting process, so upside to current guidance is possible
• Full-year 2026 hydropower generation guidance was adjusted to 5.5 to 6.5 million megawatt-hours, cutting 0.5 million megawatt-hours from the top end of the prior range due to dry conditions that returned in May and June 2026

IDACORP does not break out formal product segments in this earnings call. The only segmented revenue data provided is for the industrial customer segment, which saw a 17% year-over-year increase in revenues in Q2 2026, driven by a ramp-up of large contract customers including Micron and Meta. Large contract customers increased operating income by $6.5 million for Q2 2026. Combined benefits from the January 2026 retail rate increase and general customer growth added $32 million to operating income in Q2 2026, and over $52 million year-to-date. Irrigation sales were up year-over-year despite heavy April rainfall, as dry conditions in May and June offset any impact. Residential usage declined slightly due to milder Q2 temperatures, but this decline was mostly offset by higher irrigation usage.

• Forward-looking statements (including earnings guidance, spending forecasts, project timelines, and regulatory outcomes) are subject to risks and uncertainties that could cause actual results to differ materially from current projections
• Actual weather conditions for the remainder of 2026 may differ from the normal weather assumption in guidance, which could impact irrigation sales, residential usage, and hydropower generation
• Unexpected delays or cost overrides on large generation and transmission projects could impact in-service dates and financial results
• Regulatory approval for the Oregon distribution system sale and CPCNs for proposed generation projects is not guaranteed, and could alter project timelines
• Uncertainty around the timing and commercial pricing of small modular reactor (SMR) technology makes long-term adoption and planning uncertain
• Large incremental load growth from new customers requires accelerated capacity development, creating execution risk for bringing new resources online on schedule
• Wildfire risk remains present, though the recent small wildfire near Mountain Home is not expected to have a material financial impact on IDACORP

Q: With 250 MW of new batteries online and multiple generation projects pending, is your current project pacing sustainable, and is gas plus batteries your only long-term resource plan, or are you evaluating other options like SMRs?

A: Batteries are a valuable complementary resource to solar, but their 4-hour duration makes them unsuitable as long-term capacity resources, especially for winter peak demand. The near-term resource mix includes additional solar and batteries in 2027, shifting to mostly gas-fired generation from 2028 through 2030. While IDACORP continues to evaluate SMR technology and has studied it extensively with Idaho National Laboratory, current SMR pricing is over $150/MWh, which is not competitive today, and commercial availability is still uncertain, so IDACORP is not planning to be an early adopter.

Q: What is the status of the ESA negotiation for Micron Fab 2, when do you expect to sign, and when will this project be added to your CapEx forecast?

A: Negotiations for the Micron Fab 2 ESA are active and progressing well, but terms remain confidential per customer policy. Micron has already begun groundwork on the site. Fab 2 is not included in the current 2025 IRP load growth forecast or published CapEx guidance; once the ESA is finalized and the project moves forward, incremental CapEx for required generation and transmission infrastructure will be reflected in upcoming CapEx and load forecast updates, ahead of the 2027 IRP.

Q: How is the 2032 RFP sized, and will it be adjusted to account for incremental load from Micron Fab 2?

A: The original 2032 RFP was based on 2025 IRP load forecasts and called for a minimum of 200 MW of firm capacity. Given the large new loads that have materialized since the RFP was issued, IDACORP expects the total capacity procured will be higher than the original minimum. If Micron Fab 2 is finalized, IDACORP will increase the volume of resources procured through this RFP rather than issuing a separate new RFP for the incremental load. A shortlist of bidders will be released within the next month or so.

Q: What is the current ADITC balance, and how does the ADITC mechanism impact your decision to file a 2027 rate case?

A: The ADITC balance was approximately $156 million as of June 30, 2026. The available ADITC balance is a key factor in evaluating the timing of a general rate case: the mechanism can be used to offset depreciation and return on new plant that has not yet been added to rate base. There is a regulatory cap of $55 million per year on ADITC use, and IDACORP will evaluate the balance of large customer revenues, new plant in service, and available ADITC to decide whether a 2027 rate case is required, which currently looks relatively probable.