IDACORP(IDA) - 2025 Q1 - Quarterly Report

Financial Performance - IDACORP and Idaho Power are focused on future financial performance, including projected capital expenditures and cash flows[16]. - IDACORP and Idaho Power emphasize the importance of maintaining dividend payouts based on financial performance and capital requirements[18]. - Total operating revenues for Q1 2025 were $432,457, a decrease of 3.3% from$ 448,936 in Q1 2024[24]. - Net income increased to $59,661 in Q1 2025, up 23.6% from$ 48,268 in Q1 2024[26]. - Earnings per share (EPS) attributable to IDACORP, Inc. were $1.10 for both basic and diluted shares, compared to$ 0.95 in Q1 2024, reflecting a 15.8% increase[24]. - Total operating expenses decreased to $377,528 in Q1 2025, down 5.5% from$ 399,340 in Q1 2024[24]. - The balance of total equity at the end of the period was $3,353,355,000, an increase from$ 2,922,414,000 at the end of 2024, marking a growth of 14.8%[46]. - The company reported a total comprehensive income of $58,067,000 for the three months ended March 31, 2025, compared to$ 47,586,000 in the same period of 2024, an increase of 21.0%[41]. - For the three months ended March 31, 2025, total electric utility operating revenues decreased to $431.952 million, down 3.8% from$ 448.299 million in the same period of 2024[74]. - Revenues from contracts with customers for the three months ended March 31, 2025, were $411.142 million, a decrease of 1.8% compared to$ 417.897 million in 2024[75]. Capital Expenditures and Investments - Capital expenditures for Idaho Power were $194 million during the three months ended March 31, 2025[222]. - Expected capital expenditures for 2025 are projected to be between$ 1.00 billion and $1.10 billion, with a total of$ 3.10 billion to $3.60 billion estimated for 2027-2029[223]. - Idaho Power has spent approximately$ 431 million on the B2H transmission project through March 31, 2025, with total cost estimates for the project between $1.5 billion and$ 1.7 billion[227][230]. - The B2H transmission line is expected to begin construction in 2025, with an in-service date no earlier than 2027[226]. - Idaho Power has contracts or plans to purchase, own, and operate 330 MW of battery storage assets with expected useful lives of approximately 20 years[231]. - The company has entered into a contract to purchase and own a 300 MW wind facility and two 20-year agreements to purchase storage capacity from battery storage facilities totaling 250 MW[231]. - Idaho Power expects to incur total costs for its share of the GWW project between $900 million and$ 1.1 billion, with approximately $71 million expended for the permitting phase as of March 31, 2025[235]. - The SWIP-N project will involve Idaho Power purchasing an approximate 11 percent ownership interest in a planned 285-mile high-voltage transmission line, with construction expected to commence as early as 2025[236]. - The Jackalope Wind Project is expected to supply approximately 300 MW of generation to Idaho Power's system, with operations anticipated to begin in 2027[237]. Regulatory and Compliance Risks - The companies are facing risks related to regulatory decisions that could impact cost recovery and return on investment[16]. - The companies are committed to compliance with environmental regulations, which may increase operational costs[18]. - Idaho Power filed for a$ 94.8 million net decrease in PCA revenues for the 2025-2026 collection period, primarily due to the collection of the 2023 PCA balancing adjustment[69]. - The proposed 2025-2026 FCA rates represent an annual decrease of $40.7 million, or 5.28%, from current rates[71]. - The EPA proposed regulatory actions could significantly increase operating and construction costs for generating plants[276][277]. - The current Presidential Administration's executive orders may impact Idaho Power's operational costs and regulatory environment[280][281]. Operational Challenges - There are concerns about the ability to meet increasing power demand from new industrial and commercial customers, which may exceed available supply[16]. - Idaho Power's hydropower generation may be affected by variable hydrological conditions in the Snake River Basin[18]. - The companies are actively managing risks associated with supply chain disruptions and price volatility for resources[18]. - The allowance for uncollectible accounts increased to$ 5,482 thousand as of March 31, 2025, representing 4.0% of customer receivables, up from 3.8% in 2024[80]. Debt and Financing - The company issued $400,000 in long-term debt during Q1 2025, with a retirement of$ 19,885 in long-term debt[34]. - Long-term debt for IDACORP, including the current portion, was $3,447,008,000 as of March 31, 2025, up from$ 3,073,662,000 as of December 31, 2024[130]. - Idaho Power repaid $19.9 million in maturing variable rate American Falls Bonds on February 3, 2025, and issued$ 400 million in 5.70% first mortgage bonds maturing on March 15, 2055[81]. - As of March 31, 2025, Idaho Power had $500 million available for debt issuance under regulatory orders, with a maximum additional first mortgage bond issuance capacity of approximately$ 1.9 billion[85]. Environmental and Sustainability Initiatives - The companies are monitoring changes in market dynamics due to the emergence of new energy and transmission markets in the western United States[18]. - Idaho Power's reclamation trust fund value exceeded the WDEQ's guarantee requirement for total reclamation obligations as of March 31, 2025[100]. - The company actively monitors environmental regulations that may impact future operations but cannot estimate the financial impact of such regulations[105].