IDACORP(IDA) - 2025 Q1 - Quarterly Results

Financial Performance - IDACORP reported Q1 2025 net income of $59.6 million, or$1.10 per diluted share, up from $48.2 million, or$0.95 per diluted share in Q1 2024, representing a 23.5% increase in net income[1][4]. - The increase in net income was primarily driven by higher retail revenues per megawatt-hour (MWh), which contributed an additional $11.3 million, and customer growth that added$7.3 million to operating income[5][6][7]. - IDACORP reaffirms its 2025 earnings guidance in the range of $5.65 to$5.85 per diluted share, expecting to utilize $60 million to$77 million in additional tax credits under the Idaho regulatory mechanism[3][14]. Customer Growth - Customer growth at Idaho Power increased by approximately 16,500 customers, or 2.6%, during the twelve months ended March 31, 2025[7]. Operating Expenses - Operating expenses increased by 7.2 million due to higher other operations and maintenance (O&M) expenses, including a 3.2 million rise in wildfire mitigation program costs[8]. - Non-operating expenses increased by $2.2 million due to higher interest expenses from long-term debt and customer deposits[12]. - Depreciation expense rose by$5.8 million in Q1 2025 compared to Q1 2024, primarily due to an increase in plant-in-service[9]. Capital Investment and Regulatory Plans - The company is focused on executing its capital investment and regulatory plan, with major transmission projects set to begin construction[2]. - IDACORP's hydropower generation guidance for 2025 has been adjusted to 7.0 – 8.5 million MWh, up from the previous estimate of 6.5 – 8.5 million MWh[14]. Future Outlook and Risks - IDACORP and Idaho Power's forward-looking statements include expectations regarding future financial performance, power generation, and capital expenditures[18]. - The company anticipates potential impacts from regulatory decisions by the Idaho and Oregon public utilities commissions and the Federal Energy Regulatory Commission on cost recovery and return on investment[18]. - Risks associated with capital expenditures and utility infrastructure projects may lead to delays or increased costs due to tariffs or regulatory prudence[18]. - Economic conditions, including inflation and interest rates, could affect operations, capital investments, and customer demand for electricity[18]. - The company faces challenges related to workforce factors, including attracting and retaining skilled workers and the costs associated with unionization[18]. - Changes in laws and regulations may result in increased compliance costs and impact recovery of costs through rates[18]. Environmental and Strategic Initiatives - The company is planning the cessation of coal-fired operations and conversion to natural gas, which may incur remediation costs[19]. - IDACORP aims to provide 100% clean energy by 2045, leveraging its diverse energy mix and low-cost hydropower projects[16]. - The emergence of new energy and transmission markets in the western United States may change market dynamics affecting the company[19]. - The company aims to maintain dividend payments and achieve target payout ratios based on financial performance and capital requirements[19]. - The company disclaims any obligation to update forward-looking statements except as required by law[19].