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    IDA
    Earnings call· Mar 2026(Q1 FY26)

    IDACORP Q1 FY26 earnings call IDA

    Apr 30, 2026 Source

    Executive summary

    IDACORP Q1 FY26 — Strong Customer Growth and Infrastructure Build-Out

    IDACORP delivered strong Q1 FY26 results, driven by robust customer growth and increasing industrial energy sales, despite mild weather impacts. The company is actively executing on a significant infrastructure expansion to meet growing demand, including new transmission lines and gas generation, while maintaining a focus on customer affordability and a strong balance sheet. Management reiterated its full-year EPS guidance, signaling confidence in its growth-for-growth strategy.

    Highlights

    5

    • Diluted EPS increased to $1.21 in Q1 FY26 from $1.10 in Q1 FY25.

    • Overall customer count grew by 2.3% year-over-year, with residential customer growth at 2.4%.

    • Industrial energy sales increased by 5.7% year-over-year, driven by new large industrial customers.

    • Reaffirmed full-year 2026 diluted EPS guidance of $6.25 to $6.45, expecting to use less ADITC support.

    • Advanced major infrastructure projects including three new transmission lines and secured CPCN for a 167 MW natural gas plant.

    Concerns

    4

    • Q1 FY26 operating income decreased by $10.7 million due to unusually mild weather reducing residential and commercial usage.

    • Hydropower generation forecast for FY26 was reduced at the top end of the range to 5.5 million to 7.0 million MWh due to lower snowpack.

    • O&M expenses increased by $13.1 million year-over-year, primarily due to wildfire mitigation and Jim Bridger plant amortization.

    • Moody's downgraded IDACORP's holdco to BAA3 and Idaho Power to BAA2, citing heavier CapEx cycle and weaker near-term credit metrics.

    Guidance & targets

    6
    CategoryTargetConfidence
    IDACORP Diluted EPS
    $6.25 to $6.45
    high materiality
    High
    Additional Investment Tax Credit (ADITC) Amortization
    less than $30 million
    medium materiality
    High
    O&M Expense
    $525 million to $535 million
    medium materiality
    High
    Capital Expenditure
    $1.3 billion and $1.5 billion
    high materiality
    High
    Hydropower Generation
    5.5 million to 7.0 million megawatt hours
    medium materiality
    Medium
    New At-the-Market (ATM) Program
    establish a new ATM program
    medium materiality
    High

    Operational metrics

    22
    Overall customer count
    2.3YoY
    Q1 FY26

    Overall customer increase since last year's first quarter, with growth across all customer segments.

    Industrial energy sales
    5.7YoY
    Q1 FY26

    Growth over the same period, driven by ramp-up in loads and revenues from large industrial customers like Micron and Meta.

    Customer rates vs. national average
    20% to 30%lower
    Current

    Idaho Power's rates remain significantly lower than the national average.

    Customer rate increase
    23vs. 41% nationally, 36% CPI
    Past decade

    Rates increased at a much slower pace than national averages and the Consumer Price Index over the last decade.

    Net income
    $8 millionincrease vs. Q1 FY25
    Q1 FY26

    IDACORP's first quarter net income increased compared to last year.

    Retail revenues
    $23 millionbenefit vs. Q1 FY25
    Q1 FY26

    Higher retail revenues from the January rate increase and customer growth combined.

    Usage per customer
    $10.7 milliondecrease in operating income
    Q1 FY26

    Reduced operating income due to mild weather impacting residential and commercial usage.

    FCA revenues
    $19 millionincrease vs. Q1 FY25
    Q1 FY26

    Increased revenues from the updated FCA mechanism and lower usage per customer in residential and small commercial classes.

    O&M expenses
    $13.1 millionincrease vs. Q1 FY25
    Q1 FY26

    Higher O&M expenses, largely offset by reflected revenues in customer rates.

    Depreciation and amortization expense
    $6 millionincrease
    Q1 FY26

    Expected increase from ongoing infrastructure investment.

    Nonoperating expense
    $4 millionincrease
    Q1 FY26

    Partially offset by increased AFUDC from higher construction work in progress.

    Additional Investment Tax Credit (ADITC) Amortized
    $6.3 millionless than Q1 FY25
    Q1 FY26

    Amortized under the Idaho earnings support mechanism. $13 million less than Q1 FY25, indicating less need for support this year.

    Equity financing need
    $2 billion
    2026-2030

    Estimated need to stay near target 50-50 capital ratio, funding growth capital.

    Debt financing need
    $2.9 billion
    2026-2030

    Estimated need to stay near target 50-50 capital ratio, funding growth capital.

    Forward sales executed via ATM program
    $165 million
    Q1 FY26

    Executed through the ATM program in the first quarter this year.

    Prior forward sales settled via ATM program
    $52 million
    Q1 FY26

    Settled from prior forward sales through the ATM program.

    Total equity needs settled or executed forward
    $750 million
    To date

    Combines ATM program with follow-on from last year, covering equity needs into 2027.

    Current At-the-Market (ATM) program size
    $300 million
    Current

    Put in place a couple of years ago, not yet used in full.

    Company-owned battery storage capacity
    250new
    Q2 FY26

    Will come online this quarter.

    Third-party owned solar generation
    125new
    Later 2026

    Will be added to the system later this year.

    Projected capacity deficit
    at least 200
    2032

    The 2032 RFP is aimed at solving this projected deficit, tied to the 8.3% IRP growth rate.

    IRP growth rate
    8.3
    Current

    Has been at this level for a while; expected to be updated in the next IRP in Q4, with potential upside. Does not include Micron Fab 2.

    Industry KPIs

    2
    MetricValueDetails
    Retail sales growth2.3%
    New gas generation builds upgrades167MW

    Orderbook & backlog

    1
    Large Load PipelineWell into the 2030sQ1 FY26

    Up vs. Q4 FY25

    Strong interest from diverse industries, including data centers, food processing, manufacturing, distribution, and warehousing. Max capacity for work between now and 2028. Does not include Micron Fab 2 in current 8.3% IRP growth rate, but anticipated for Q4 IRP update.

    Deals & partnerships

    1
    not statedSale of Oregon service area

    The transaction continues to progress ahead, and filings are planned in the next couple of months with the Oregon and Idaho commissions and FERC for the approval of the sale.

    Capital programs

    7
    B2H Transmission Projectunderway
    Spent to date: Nearly half of access roads and structure pads completed, 200 structures (15% of total)

    Benefit: Critical flexibility and reliability

    Work is progressing quickly, expected to be in service in late 2027.

    Swift North Transmission Projectunderway
    Start: June (Nevada), September (Idaho)

    Benefit: Critical flexibility and reliability

    CPCN received from Idaho Commission. Construction contractor plans to break ground in June in Nevada and September in Idaho.

    Gateway West Transmission Project (Hemingway-Midpoint substations)underway

    Benefit: Critical flexibility and reliability, access to diverse markets, transmission wheeling revenues

    Joint request for CPCN filed with Idaho Commission with PacifiCorp. Critical section expected online as early as 2028.

    Bennett Mountain Natural Gas Plantunderway

    Benefit: 167 MW

    CPCN received from Idaho Commission for company-owned 167 MW plant. EPC contractor secured.

    South Hills Natural Gas Plantunderway

    Benefit: 222 MW

    CPCN filed in Idaho. Included in CapEx forecast update.

    Paragon Natural Gas Plantunderway

    Benefit: 430 MW

    CPCN filed in Idaho. Included in CapEx forecast update.

    Valmy Unit 2 Conversionnearing completion

    Benefit: Conversion from coal to natural gas

    On track to complete conversion from coal to natural gas before the summer peak this year.

    Risks & headwinds

    5
    Unusually mild weatherQ1 FY26

    Reduced Q1 operating income by $10.7 million

    Mitigation: Offset by higher retail revenues from rate increase and customer growth, and increased FCA revenues.

    Higher O&M expensesQ1 FY26

    Up $13.1 million in Q1 FY26

    Mitigation: Primary drivers (wildfire mitigation, Jim Bridger amortization) are largely recoverable in customer rates, reflected in offsetting revenues.

    Higher depreciation and interest expenseQ1 FY26

    Depreciation up $6 million, nonoperating expense (mostly interest) up $4 million in Q1 FY26

    Mitigation: Expected to be offset by revenues from new large load contracts; increased AFUDC partially offsets nonoperating expense.

    Lower hydropower generationFull-year 2026

    FY26 guidance reduced to 5.5 million to 7.0 million MWh (from 7.5 million MWh top end)

    Mitigation: Record wet April conditions helped increase spring stream flows, but will not completely offset lack of winter snowpack.

    Moody's credit rating downgradeRecent

    IDACORP holdco to BAA3, Idaho Power to BAA2

    Mitigation: Company maintains focus on strong 50-50 balance sheet, requiring equity issuances; new stable outlook and 12% downgrade threshold for Moody's are noted as positive.

    What to watch in Q2 FY26

    5

    Micron Fab 2 ESA negotiation

    Next quarter
    CurrentStill negotiating
    TargetESA signed and public

    Why it matters

    Signing of the ESA for Micron's second fab will provide clarity on future load and associated capital investment, impacting long-term growth projections.

    On the ESA side, we're still working with Micron on that. Hard to say📌 exactly the timing of📎 that, but we'll let you know when it becomes more public.

    Q&A highlights

    5

    When might the next full rate case be filed, given the decision not to file in 2026?

    Management stated that while June 2027 has been a traditional cadence, they will continue to evaluate the timing based on factors like the conversion of QIP to plant in service and the magnitude of large load revenues. They described their approach as "opportunistic" rather than a fixed annual cadence, prioritizing customer affordability.

    “We will look each year at what our rate app would be. We don't want to go in and make really large rate requests, and it's this growth pace for growth mentality. And really the way we operate our business from an O&M and affordability perspective that help us stay out and use those revenues instead of rate cases in some years.”

    asked by David Arcaro · answered by Lisa Grow

    2 min read5 chapters

    Detailed Narrative

    01

    Customer Growth and Industrial Demand

    IDACORP experienced a 2.3% overall customer increase and 2.4% residential growth since Q1 FY25. Industrial energy sales surged by 5.7% year-over-year, driven by the ramp-up of large industrial customers like Micron (Fab 1 testing, Fab 2 ground prep) and Meta (data center testing/commissioning). The company continues to see significant interest from diverse industries, with a strong pipeline extending into the 2030s.

    02

    Strategic Infrastructure Investment

    Idaho Power is undertaking a major infrastructure expansion, including three critical transmission lines: B2H (expected late 2027), Swift North (early 2028), and Gateway West (Hemingway-Midpoint section by early 2028). These projects aim to enhance system flexibility, reliability, and market access. The company also secured a CPCN for a 167 MW natural gas plant (in-service summer 2028) and filed for two more (South Hills 222 MW by 2029, Paragon 430 MW by 2030) to meet growing demand.

    03

    Regulatory and Affordability Focus

    The company is not planning a general rate case filing in 2026, expecting revenues from new large load contracts to offset rising depreciation, interest, and wildfire mitigation costs. Idaho legislation codified the large load contract approval process with a 9-month deadline. Idaho Power's rates remain 20-30% lower than the national average, increasing at a slower pace (23% over a decade) compared to national averages (41%) and CPI (36%).

    04

    Financing Strategy and Credit Metrics

    IDACORP's financing plan for 2026-2030 anticipates funding over half of its CapEx from operating cash flow, requiring approximately $2 billion in equity and $2.9 billion in debt to maintain a 50-50 capital ratio. The company executed $165 million in forward sales via its ATM program in Q1 FY26 and settled $52 million from prior sales, having settled or executed forward on over $750 million of its equity needs. Moody's recently downgraded IDACORP's holdco to BAA3 and Idaho Power to BAA2, citing the heavy CapEx cycle but maintaining a stable outlook.

    05

    Resource Planning and Oregon Sale

    The Idaho Commission approved the 2032 RFP to address a projected capacity deficit of at least 200 MW, with Idaho Power planning to bid its own projects. The sale of the Oregon service area is progressing, with filings expected in the coming months⏳ with Oregon and Idaho commissions and FERC. Additionally, 250 MW of company-owned battery storage will come online this quarter, and 125 MW of third-party solar will be added later this year.

    AI-generated summary of the company’s earnings call. Not investment advice.