IDACORP, Inc.

What they do

IDACORP is a holding company whose principal subsidiary, Idaho Power, generates, transmits, distributes, and sells electricity to about 664,000 retail customers in southern Idaho and eastern Oregon. It operates under cost-based rate regulation by the Idaho and Oregon public utility commissions and the FERC. Other subsidiaries include IFS (affordable housing tax credit investments) and Ida-West (small hydropower projects).

Revenue drivers

• Residential sales — Residential customers made up about 561,000 of the roughly 664,000 retail customers as of December 31, 2025, and are the largest customer class by count.
• Commercial and industrial sales — Key customers are in food processing, electronics, general manufacturing, agriculture, health care, government, education, and information technology; large contract customers contributed $8.9M to operating income in H1 2026.
• Irrigation sales — Provides electricity to operate irrigation pumps during the agricultural growing season, contributing to higher summer demand.
• Wholesale and transmission — Earns revenues from wholesale energy sales and transmission services under FERC-approved market-based and OATT tariffs.

Recent performance

For Q2 2026, IDACORP reported net income attributable to IDACORP of $102.6M, or $1.79 per diluted share, up from $95.8M ($1.76) in Q2 2025. For H1 2026, EPS was $3.00 versus $2.87 a year earlier. Revenue per MWh (excluding large contract customers, net of power cost mechanisms) increased operating income by $27.5M in Q2 and $44.0M in H1, driven by rate changes and customer growth of 2.3% (about 15,000 customers added in the twelve months ended June 30, 2026). Depreciation and O&M expenses increased $10.9M and $24.8M, respectively, in H1.

Strategy

Idaho Power is investing in generation, transmission, and storage to meet customer growth and capacity needs. Key projects include: a 222 MW and a 430 MW natural gas facility (CPCN filed, in-service 2029/2030), 167 MW natural gas at Bennett Mountain (construction started May 2026, in-service 2028), a 200 MW solar PPA plus 100 MW storage tolling agreement (in-service June 2028), 250 MW of battery storage (operational June 2026), the SWIP-N transmission line (construction started June 2026, in-service 2028), and the Boardman-to-Hemingway transmission line (in-service late 2027). The company is also selling its Oregon distribution business and certain Oregon transmission assets to OTEC.

Risks

• Regulatory rate recovery — State and federal regulators may not approve rates that recover costs or provide a reasonable return, directly affecting Idaho Power's earnings.
• Customer growth and usage variability — Lower-than-expected customer growth or usage per customer (e.g., H1 2026 usage net of power costs decreased $12.4M) could reduce revenues.
• Project and construction risks — Delays or cost overruns in major transmission and generation projects could increase expenses and reduce returns.
• Oregon asset sale execution — The sale of Oregon distribution and transmission assets to OTEC is subject to regulatory approvals and closing conditions; failure to complete could affect operations and strategy.

Outlook

Management raised the lower end of full-year 2026 EPS guidance to $6.30–$6.45, assuming normal weather. They expect to use less than $15 million of additional tax credits available under the Idaho regulatory mechanism. The company continues to experience strong customer growth and is focused on building infrastructure to support it.