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    IDA
    Earnings call· Jun 2026(Q2 FY26)

    IDACORP Q2 FY26 earnings call IDA

    Jul 30, 2026 Source

    Executive summary

    IDACORP Q2 FY26 — Strong Load Growth Drives EPS Guidance Increase and Capital Investment

    IDACORP delivered strong Q2 FY26 results, driven by robust customer and industrial load growth, particularly from large contract customers like Micron and Meta. The company raised its full-year EPS guidance and continues to execute on significant capital projects, including battery storage and transmission, to meet increasing demand. Management emphasizes sustainable growth and prudent capital allocation while navigating high SMR pricing and ongoing wildfire mitigation efforts.

    Highlights

    5

    • Diluted EPS increased to $1.79 in Q2 FY26 compared to $1.76 in Q2 FY25.

    • Full-year diluted EPS guidance raised by $0.05 to a new range of $6.30 to $6.45.

    • Customer count increased by 2.3% since Q2 FY25, with industrial revenues up 17% year-over-year.

    • Less than $15 million of additional tax credit amortization expected for FY26, a reduction from less than $30 million previously.

    • 250 MW of new company-owned battery storage brought online, marking the fourth straight year of battery additions.

    Concerns

    4

    • O&M expense increased by almost $12 million in Q2, driven by deferred costs and wildfire mitigation.

    • Hydropower generation guidance trimmed by 0.5 million MWh off the top end due to dry conditions in May and June.

    • SMR technology pricing is currently high, estimated over $150/MWh, making it less attractive for immediate adoption.

    • A wildfire incident in Mountain Home, though small and not material, highlights ongoing risk.

    Guidance & targets

    18
    CategoryTargetConfidence
    IDACORP Diluted EPS
    $6.30 to $6.45
    high materiality
    High
    Idaho Power Additional Tax Credit Amortization
    less than $15 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 6.5 million megawatt hours
    medium materiality
    Medium
    B2H Transmission Project In-Service Date
    late 2027
    medium materiality
    High
    SWIP North Transmission Project Completion
    2028
    medium materiality
    High
    Gateway West Transmission Project In-Service Date (Partial)
    as soon as 2028
    medium materiality
    Medium
    Bennett Mountain Power Plant Expansion In-Service Date
    2028
    medium materiality
    High
    South Hills Project In-Service Date
    2029
    medium materiality
    High
    Peregrine Project In-Service Date
    2030
    medium materiality
    High
    Oregon Distribution System Sale Close
    spring of 2027
    low materiality
    Medium
    2032 RFP Final Shortlist
    third quarter
    medium materiality
    High
    Equity Content Funding Need
    around $2 billion
    high materiality
    High
    Equity Needs Solved (Current Plan)
    roughly half
    high materiality
    High
    Equity Needs Coverage
    into 2027
    high materiality
    High
    Incremental CapEx Financing Mix
    roughly equal basis for incremental CapEx with the goal of keeping our balance sheet strong
    medium materiality
    High
    Next Rate Case Filing
    relatively probable
    high materiality
    Medium

    Operational metrics

    25
    Diluted EPS
    $1.79vs $1.76 in Q2 FY25
    Q2 FY26

    Reported diluted earnings per share for the quarter.

    Diluted EPS
    $3.00vs $2.87 in H1 FY25
    H1 FY26

    Reported diluted earnings per share for the first half of the year.

    Additional Tax Credit Amortization
    $0vs $17.2 million in Q2 FY25
    Q2 FY26

    No additional tax credit amortization recorded under the Idaho regulatory mechanism in the second quarter.

    Additional Tax Credit Amortization
    $6.3 millionvs $36.5 million in H1 FY25
    H1 FY26

    Total additional tax credit amortization for the first half of the year.

    Industrial Revenues Growth
    17%YoY
    Q2 FY26

    Includes large contracts, driven by Micron's expansion and Meta's new data center.

    Average Residential Price
    30%below national average
    Current

    Reflects affordability in Idaho Power's service area.

    New Battery Storage Capacity Online
    250
    Q2 FY26

    Marking the fourth straight year of adding batteries to the system.

    Cumulative Battery Storage Capacity
    550
    Since 2023

    Total company-owned battery capacity added since 2023.

    Third-Party Solar Generation Commissioned
    125
    Recent

    Part of the Clean Energy Your Way program.

    B2H Structure Pads Completion
    70%
    As of call date

    Progress on the Boardman-to-Hemingway transmission project.

    B2H Towers Built
    Over 400
    As of call date

    Progress on the Boardman-to-Hemingway transmission project.

    Industrial Loads Increase
    8%QoQ
    Q2 FY26

    Quarter-over-quarter increase in industrial loads.

    Retail Revenues Benefit
    $32 million
    Q2 FY26

    Combined benefit from higher retail revenues, excluding large contract customers.

    Retail Revenues Benefit
    Over $52 million
    YTD FY26

    Combined benefit from higher retail revenues, excluding large contract customers, year-to-date.

    Per Customer Usage
    essentially flat
    Q2 FY26

    Overall per customer usage for the quarter.

    Operating Income Increase (Net)
    $6.5 million
    Q2 FY26

    Impact on operating income from large contract customers, reflecting ramp-up.

    O&M Expense Increase
    almost $12 million
    Q2 FY26

    Primary drivers are recoverable at customer rates.

    Depreciation and Amortization Expense Increase
    around $5 million
    Q2 FY26

    Due to ongoing infrastructure investment.

    Operating Income Increase (Net)
    $6.3 million
    Q2 FY26

    Benefit from updates to the PCA mechanism based on last year's rate case.

    Construction Work in Progress (QIP)
    Over $1.8 billion
    As of call date

    Significant amount of QIP expected to convert to plant in service in 2026 and 2027.

    Forward Sale Agreements Executed
    around $260 million
    Q2 FY26

    Additional forward sale agreements executed through the ATM program.

    Forwards Available for Settlement
    about $715 million
    As of call date

    Balance of forward sale agreements available for settlement.

    ADITC Cap
    $55 million
    Per year

    Imposed in the last rate case settlement.

    SMR Technology Pricing
    over $150
    Current

    Estimated pricing for SMR technology, considered high by management.

    2031/2032 RFP Minimum Capacity
    200
    Per year

    Initial minimum capacity target for the RFP, likely to increase due to new loads.

    Industry KPIs

    4
    MetricValueDetails
    Retail sales growth2.3%%
    Regulatory rate base growth8.3%%
    New gas generation builds upgrades167 MWMW
    Contracted large load capacity esas loasmultiple gigawattsGW

    Orderbook & backlog

    1
    Large Customer Pipelinemultiple gigawattsQ2 FY26

    Businesses across multiple industries looking to operate in the region. Not static, new requests fill space as others go into construction.

    Deals & partnerships

    3
    OTECSale of Oregon distribution system assets

    Applications filed with Oregon Commission, Idaho Commission, and FERC for approval.

    MicronEnergy service agreement for Fab 1 expansion and Fab 2 development

    Micron's Fab 1 revenues started in June. Negotiations for Fab 2 ESA are very active, ground preparations started.

    MetaEnergy service agreement for new data center

    Part of the large contract customers driving industrial revenue growth.

    Capital programs

    7
    Boardman-to-Hemingway (B2H) Transmission Projectunderway
    Spent to date: 70% of 1,300 structure pads completed; over 400 towers built

    Benefit: critical system flexibility, access to diverse markets, transmission wheeling revenues

    Work progressing nicely, stringing wire started.

    SWIP North Transmission Projectunderway
    Start: recently

    Benefit: critical system flexibility, access to diverse markets, transmission wheeling revenues

    Received CPCN from Idaho Commission, construction recently started in Nevada.

    Gateway West Transmission Projectunderway

    Benefit: critical system flexibility, access to diverse markets, transmission wheeling revenues

    Joint request for CPCN filed with IPUC with PacifiCorp.

    Bennett Mountain Power Plant Expansionunderway

    Benefit: 167 MW (natural gas)

    Construction underway, secured CPCN and air permit, EPC contract in place. Will help meet near-term capacity deficit.

    South Hills Projectplanned

    Benefit: 222 MW (natural gas)

    CPCN filed. Will help meet near-term capacity deficit.

    Peregrine Projectplanned

    Benefit: 430 MW (natural gas)

    CPCN filed. Will help meet near-term capacity deficit.

    2032 RFP Resource Procurementunder evaluation

    Benefit: Minimum 200 MW per year (perfect capacity), likely higher to meet new loads

    Evaluating bids, shortlist expected Q3 FY26. Includes 6 self-bid gas projects and 2 storage projects.

    Risks & headwinds

    5
    Wildfire incidents and associated costsOngoing

    Relatively small fire in Mountain Home, not material impact to company

    Mitigation: Approved 2026 wildfire mitigation plan, which is being implemented and followed. Standard of Care Act in Idaho applies to the plan.

    Lower hydropower generation due to dry weatherMay and June 2026, remainder of FY26

    Trimmed 0.5 million MWh off the top end of FY26 guidance

    Mitigation: Guidance adjusted to reflect current forecast of hydropower operating conditions and normal weather for rest of year.

    High cost and limited commercial availability of Small Modular Reactor (SMR) technologyCurrent and near-term

    Pricing likely over $150/MWh

    Mitigation: Company continues to evaluate technologies but will not be an early adopter due to cost and timing; focusing on least cost, least risk answers.

    Regulatory uncertainty for rate caseEarly 2027 for decision, June 2027 for potential filing

    Decision to file a rate case in June 2027 is 'relatively probable' but depends on QIP conversion and large load revenues.

    Mitigation: Ongoing evaluation of financial needs, plant in service conversion, customer affordability, and ADITC mechanism usage. Avoiding trackers that shift costs unfairly.

    Capital expenditure growth beyond current planNext 5-year window and beyond

    Current CapEx forecast does not include Micron Fab 2 or other promising loads; QIP balance over $1.8 billion.

    Mitigation: Actively working through RFP, load forecast updates, and annual capital budgeting. Planning to blend debt and equity equally for incremental CapEx; exploring upfront payments from customers.

    What to watch in Q3 FY26

    5

    2032 RFP Final Shortlist

    Q3 FY26
    CurrentBids submitted, review team narrowing contenders.
    TargetFinal shortlist announced.

    Why it matters

    This will indicate the potential generation resources and their types (gas, storage) to meet future load growth, impacting long-term capital plans and resource mix.

    We expect to have a final shortlist in the third quarter and begin contract negotiations soon thereafter.

    Q&A highlights

    6

    Is the current pace of battery deployment sustainable, and is gas plus batteries the long-term solution, or are SMRs being considered?

    The pace of battery deployment is high, but batteries are not a complete solution due to operating characteristics (e.g., 4-hour duration). The near-term plan includes more gas projects (Bennett 2, South Hills, Peregrine) and solar. SMR technology is liked, but current pricing (over $150/MWh) and commercial availability are prohibitive. Transmission projects are also a big part of the plan.

    “Our summary is that we like the SMR technology. At this time, we don't love the pricing, which, as you probably know, is likely over $150 a megawatt hour at this point.”

    asked by Whitney Mutalemwa · answered by Adam Richins

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Customer and Load Growth

    IDACORP continues to experience robust customer growth, with a 2.3% increase since Q2 FY25 across all segments. Industrial revenues surged by 17% year-over-year, driven by large contract customers like Micron and Meta, whose projects are now ramping up. The company's large customer pipeline remains strong at multiple gigawatts, attracting businesses across various industries to the region, and is a key driver helping to avoid a 2026 general rate case.

    02

    Strategic Capital Investments

    The company is actively executing on significant capital projects to meet growing energy demand and enhance grid reliability. This includes bringing 250 MW of new company-owned battery storage online, completing the conversion of Valmy Unit 2 from coal to natural gas, and commissioning a 125 MW third-party solar project. These resources support efforts to add capacity, flexibility, and reliable, affordable energy to serve the growing regions.

    03

    Transmission Infrastructure Development

    IDACORP is progressing on three major transmission projects: Boardman-to-Hemingway (B2H), SWIP North, and Gateway West. B2H is 70% complete on structure pads and is expected in service by late 2027. SWIP North construction has begun in Nevada with completion expected in 2028. A portion of Gateway West is also anticipated to come online as soon as 2028, providing critical system flexibility and market access.

    04

    Future Generation Resource Planning

    Construction is underway for three company-owned natural gas fuel projects: a 167 MW resource at Bennett Mountain (2028 in-service), the 222 MW South Hills project (2029), and the 430 MW Peregrine project (2030). The company is also evaluating bids for its 2032 RFP, with a shortlist expected in Q3, and is considering increasing resource procurement to accommodate incremental loads like Micron Fab 2, which is not yet in current forecasts.

    05

    Financing and Balance Sheet Management

    IDACORP has identified a need for approximately $2 billion in equity content over the next five years to fund its current capital plan, having already secured about half of this amount through ATM forward sale agreements. The company plans to blend debt and equity on a roughly equal basis for incremental CapEx to maintain a strong balance sheet, preferring regular-way financing over holding company debt to preserve credit ratings and avoid unnecessary complications.

    06

    Regulatory Strategy and Rate Case Outlook

    The company anticipates a "relatively probable" rate case filing around June 2027, driven by significant Construction Work in Progress (QIP) converting to plant in service and associated depreciation. However, large load revenues are helping to cover costs, and the ADITC mechanism provides flexibility. Management is cautious about depreciation or interest trackers, ensuring costs are not shifted unfairly to other customer classes, and will evaluate the math early in 2027.

    07

    SMR Technology Evaluation

    While IDACORP acknowledges the potential of Small Modular Reactor (SMR) technology and has spent time learning about it, current pricing (estimated over $150/MWh) and commercial availability make it less attractive for immediate deployment. The company continues to monitor SMR developments but is not expected to be an early adopter due to cost and timing considerations, prioritizing least-cost, least-risk solutions for its load.

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