UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended

March 31, ~~2020~~2021

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Exact name of registrants as specified

I.R.S. Employer

Commission File

in their charters, address of principal

Identification

Number

executive offices, zip code and telephone number

Number

1-14465

IDACORP, Inc.

82-0505802

1-3198

Idaho Power Company

82-0130980



1221 W. Idaho Street
Boise,		Idaho		83702-5627
	(208)		388-2200

State of Incorporation:

Idaho

~~State of Incorporation:~~

~~Idaho~~

None

~~None~~

Former name, former address and former fiscal year, if changed since last report.

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	IDA	New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

IDACORP, Inc.: Yes X No __ Idaho Power Company: Yes X No __

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit such files).

IDACORP, Inc.: Yes X XNo __ Idaho Power Company: Yes X No __

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies, or emerging growth companies. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

IDACORP, Inc.:

Large accelerated filer X XAccelerated filer __ Non-accelerated filer __

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. __

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Idaho Power Company:

Large accelerated filer __ Accelerated filer __ Non-accelerated Filer X

Smaller reporting company ☐

Emerging growth company ☐

Act. __

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

IDACORP, Inc.: Yes ☐ No X Idaho Power Company: Yes ☐ No X

Number of shares of common stock outstanding as of April ~~24, 2020:~~23, 2021:

IDACORP, Inc.: ~~50,453,936~~50,515,478

Idaho Power Company: 39,150,812, all held by IDACORP, Inc.

This combined Form 10-Q represents separate filings by IDACORP, Inc. and Idaho Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Idaho Power Company makes no representations as to the information relating to IDACORP, Inc.’s other operations.

Idaho Power Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this report on Form 10-Q with the reduced disclosure format.

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TABLE OF CONTENTS
				Page
Commonly Used Terms				4
Cautionary Note Regarding Forward-Looking Statements				5

Part I. Financial Information

	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Condensed Consolidated Statements of Income	7
			Condensed Consolidated Statements of Comprehensive Income	8
			Condensed Consolidated Balance Sheets	9
			Condensed Consolidated Statements of Cash Flows	11
			Condensed Consolidated Statements of Equity	12
		Idaho Power Company:
			Condensed Consolidated Statements of Income	13
			Condensed Consolidated Statements of Comprehensive Income	14
			Condensed Consolidated Balance Sheets	15
			Condensed Consolidated Statements of Cash Flows	17
		Notes to Condensed Consolidated Financial Statements		18
		Reports of Independent Registered Public Accounting Firm		3231
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			3433
	Item 3. Quantitative and Qualitative Disclosures About Market Risk			5553
	Item 4. Controls and Procedures			5654

Part II. Other Information

	Item 1. Legal Proceedings			5755
	Item 1A. Risk Factors			5755
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			5755
	Item 3. Defaults Upon Senior Securities			5855
	Item 4. Mine Safety Disclosures			5855
	Item 5. Other Information			5855
	Item 6. Exhibits			5856

Signatures				5957

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COMMONLY USED TERMS

The following select abbreviations, terms, or acronyms are commonly used or found in multiple locations in this report:

~~2019~~2020 Annual Report	-	IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019~~ 2020
ADITC	-	Accumulated Deferred Investment Tax Credits
AFUDC	-	Allowance for Funds Used During Construction
AOCI	-	Accumulated Other Comprehensive Income
~~ASU~~	-	~~Accounting Standards Update~~
BCC	-	Bridger Coal Company, a joint venture of IERCo
BLM	-	U.S. Bureau of Land Management
~~CWA~~	-
CWA	-	Clean Water Act
~~FASB~~	-	~~Financial Accounting Standards Board~~
~~FCA~~	-

FCA	-	Fixed Cost Adjustment
FERC	-	Federal Energy Regulatory Commission
FPA	-	Federal Power Act
~~HCC~~	-
HCC	-	Hells Canyon Complex
IDACORP	-	IDACORP, Inc., an Idaho corporation

Idaho Power	-	Idaho Power Company, an Idaho corporation

Idaho ROE	-	Idaho-jurisdiction return on year-end equity
Ida-West	-	Ida-West Energy, a subsidiary of IDACORP, Inc.
IERCo	-	Idaho Energy Resources Co., a subsidiary of Idaho Power Company
IFS	-	IDACORP Financial Services, a subsidiary of IDACORP, Inc.
IPUC	-	Idaho Public Utilities Commission
IRP	-	Integrated Resource Plan
Jim Bridger plant	-	Jim Bridger generating plant
MD&A	-	Management’s Discussion and Analysis of Financial Condition and Results of Operations
MW	-	Megawatt
MWh	-	Megawatt-hour
O&M	-	Operations and Maintenance
OATT	-	Open Access Transmission Tariff
OPUC	-	Public Utility Commission of Oregon
PCA	-	Idaho-Jurisdiction Power Cost Adjustment
PURPA	-	Public Utility Regulatory Policies Act of 1978
~~SEC~~	-
SEC	-	U.S. Securities and Exchange Commission
SMSP	-	Security Plan for Senior Management Employees


Western EIM	-	Energy imbalance market implemented in the western United States
WPSC	-	Wyoming Public Service Commission

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to the historical information contained in this report, this report contains (and oral communications made by IDACORP, Inc. (IDACORP) and Idaho Power Company (Idaho Power) may contain) statements that relate to future events and expectations, such as statements regarding projected or future financial performance, cash flows, capital expenditures, dividends, capital structure or ratios, strategic goals, challenges, objectives, and plans for future operations. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events, or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "continues," "could," "estimates," "expects," "guidance," "intends," "potential," "plans," "predicts," "projects," "may result," "may continue," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance and involve estimates, assumptions, risks, and uncertainties. Actual results, performance, or outcomes may differ materially from the results discussed in the statements. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements include those factors set forth in this report, IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, particularly Part I, Item 1A - "Risk Factors" and Part II, Item 7 - "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of that report, subsequent reports filed by IDACORP and Idaho Power with the U.S. Securities and Exchange Commission (SEC), and the following important factors:

•the effect of decisions by the Idaho and Oregon public utilities commissions and the Federal Energy Regulatory Commission that impact Idaho Power's ability to recover costs and earn a return on investment;

•changes to or the elimination of Idaho Power's regulatory cost recovery mechanisms;

•the ~~widespread~~ impacts of the ~~recent~~ COVID-19 ~~coronavirus outbreak~~pandemic on the global and regional economy and on Idaho Power's employees, customers, contractors, and suppliers, including on loads and revenues, uncollectible accounts, transmission revenues, and other aspects of the companies' business;

•changes in residential, commercial, and industrial growth and demographic patterns within Idaho Power's service area, ~~the loss or change in the business of significant customers, or the addition of new customers,~~ and their associated impacts on loads and load growth, and the availability of regulatory mechanisms that allow for timely cost recovery through customer rates in the event of those changes;

•abnormal or severe weather conditions ~~including~~ (including conditions and events associated with climate ~~change,~~ change), wildfires, ~~drought,~~droughts, earthquakes, and other natural phenomena and natural disasters, which affect customer sales, hydropower generation levels, repair costs, service interruptions, liability for damage caused by utility property, and the availability and cost of fuel for generation plants or purchased power to serve customers;

•advancement of self-generation, energy storage, ~~and~~ energy efficiency, alternative energy sources, and other technologies that may ~~affect~~reduce Idaho Power's sale or delivery of electric power or ~~introduce~~introduction of operational or cyber-security ~~vulnerability~~vulnerabilities to the power grid;

•acts or threats of terrorist incidents, ~~other malicious acts,~~ acts of war, social unrest, cyber-attacks, the companies' failure to secure data or to comply with privacy laws or regulations, physical security breaches, or the disruption or damage to the companies' business, operations, or reputation resulting from such ~~events and related litigation or penalties;~~events;

•the expense and risks associated with capital expenditures for, and the permitting and construction of, utility infrastructure that Idaho Power may be unable ~~or unwilling~~ to complete or may not be deemed prudent by ~~regulators;~~regulators for cost recovery;

•variable hydrological conditions and over-appropriation of surface and groundwater in the Snake River Basin, which may impact the amount of power generated by Idaho Power's hydropower facilities;

•the ability of Idaho Power to acquire fuel, power, electrical equipment, and transmission capacity ~~under~~on reasonable terms, particularly in the event of unanticipated power demands, price volatility, lack of physical availability, transportation constraints, ~~climate change,~~disruptions or delays in the supply chain, or a credit downgrade;

•disruptions or outages of Idaho Power's generation or transmission systems or of any interconnected transmission systems, ~~may constrain resources or cause~~which can result in liability for Idaho Power, ~~to incur repair~~increase power costs, and ~~purchase replacement power at increased costs;~~reduce revenues;

•accidents, terrorist acts, fires (either affecting or caused by Idaho Power facilities or infrastructure), explosions, ~~and~~ mechanical breakdowns, and other unplanned events that may occur while operating and maintaining ~~Idaho Power~~ assets, which can cause unplanned ~~outages,~~outages; reduce generating ~~output,~~output; damage company assets, operations, or ~~reputation,~~reputation; subject Idaho Power to third-party claims for property damage, personal injury, or loss of ~~life,~~life; or result in the imposition of civil, criminal, and regulatory fines and penalties for which Idaho Power may have inadequate insurance coverage;

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•the increased purchased power costs and operational challenges associated with purchasing and integrating intermittent renewable energy sources into Idaho Power's resource portfolio;

•failure to comply with state and federal laws, regulations, and orders, including new interpretations and enforcement initiatives by regulatory and oversight bodies, which may result in penalties and fines and increase the cost of compliance, ~~the nature and extent of investigations and audits,~~ and the cost of remediation;

•changes in tax laws or related regulations or new interpretations of applicable laws by federal, state, or local taxing jurisdictions, and the availability of tax credits, and the tax rates payable by IDACORP shareholders on common stock dividends;

•adoption of, changes in, and costs of compliance with laws, regulations, and policies relating to the environment, natural resources, and threatened and endangered species, and the ability to recover associated increased costs through rates;

•the inability to obtain or cost of obtaining and complying with required governmental permits and approvals, licenses, rights-of-way, and siting for transmission and generation projects and hydropower facilities;

•failure to comply with mandatory reliability and security requirements, which may result in penalties, reputational harm, and operational changes;

the cost and outcome of litigation, dispute resolution, and regulatory proceedings, and the ability to recover those costs or the costs of resulting operational changes through insurance or rates, or from third parties;

•the impacts of economic conditions, including inflation, interest rates, supply costs, population growth or decline in Idaho Power's service area, changes in customer demand for electricity, revenue from sales of excess power, credit quality of counterparties and suppliers, and the collection of receivables;

•the ability to obtain debt and equity financing or refinance existing debt when necessary and on favorable terms, which can be affected by factors such as credit ratings, volatility or disruptions in the financial markets, interest rate fluctuations, decisions by the Idaho or Oregon public utility commissions, and the companies' past or projected financial performance;

•changes in the method for determining LIBOR and the potential replacement of LIBOR and the impact on interest rates for IDACORP's and Idaho Power's credit facilities;

•the ability to enter into financial and physical commodity hedges with creditworthy counterparties to manage price and commodity risk for fuel, power, and transmission, and the failure of any such risk management and hedging strategies to work as intended;

•changes in actuarial assumptions, changes in interest rates, increasing health care costs, and the actual and projected return on plan assets for pension and other post-retirement plans, which can affect future pension and other postretirement plan funding obligations, costs, and liabilities and the companies' cash flows;

•the assumptions underlying the coal mine reclamation obligations at Bridger Coal Company and related funding ~~requirements;~~and bonding requirements, and the remediation costs associated with planned exits from participation in Idaho Power's co-owned coal plants;

•the ability to continue to pay dividends and achieve target-payout ratios based on financial performance, and in light of credit rating considerations, contractual covenants and restrictions, and regulatory limitations;

•Idaho Power's concentration in one industry and one region and the lack of diversification, and the resulting exposure to regional economic conditions and regional legislation and regulation;

•employee workforce factors, including the operational and financial costs of unionization or the attempt to unionize all or part of the companies' workforce, the impact of an aging workforce and retirements, the cost and ability to attract and retain skilled workers and third-party vendors, and the ability to adjust the labor cost structure when necessary; and

•adoption of or changes in accounting policies and principles, changes in accounting estimates, and new SEC or New York Stock Exchange requirements, or new interpretations of existing requirements.

Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. IDACORP and Idaho Power disclaim any obligation to update publicly any forward-looking information, whether in response to new information, future events, or otherwise, except as required by applicable law.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.

Condensed Consolidated Statements of Income

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands, except per share amounts)
Operating Revenues:
Electric utility revenues	$	315,568	$	290,488
Other	486		520
Total operating revenues	316,054		291,008

Operating Expenses:
Electric utility:
Purchased power	67,988		61,201
Fuel expense	33,306		30,015
Power cost adjustment	5,671		(3,391)
Other operations and maintenance	85,657		89,808
Energy efficiency programs	9,027		9,475
Depreciation	43,315		42,526
Other electric utility operating expenses	9,327		9,141
Total electric utility operating expenses	254,291		238,775
Other	654		663
Total operating expenses	254,945		239,438

Operating Income	61,109		51,570

Nonoperating (Income) Expense:
Allowance for equity funds used during construction	(7,769)		(7,272)
Earnings of unconsolidated equity-method investments	(2,317)		(2,316)
Interest on long-term debt	21,036		19,662
Other interest	3,519		3,812
Allowance for borrowed funds used during construction	(3,005)		(2,730)
Other income, net	(241)		(932)
Total nonoperating expense, net	11,223		10,224

Income Before Income Taxes	49,886		41,346

Income Tax Expense	5,086		3,888

Net Income	44,800		37,458
Loss attributable to noncontrolling interests	31		32
Net Income Attributable to IDACORP, Inc.	$	44,831	$	37,490

Weighted Average Common Shares Outstanding - Basic	50,567		50,517
Weighted Average Common Shares Outstanding - Diluted	50,580		50,527
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic	$	0.89	$	0.74
Earnings Attributable to IDACORP, Inc. - Diluted	$	0.89	$	0.74

Three months ended
March 31,
2020 2019
(in thousands, except per share amounts)
Operating Revenues:
Electric utility revenues $ 290,488
$ 349,771
Other 520
548
Total operating revenues 291,008
350,319

Operating Expenses:
Electric utility:
Purchased power 61,201
62,831
Fuel expense 30,015
51,870
Power cost adjustment (3,391 ) 26,225
Other operations and maintenance 89,808
88,906
Energy efficiency programs 9,475
10,112
Depreciation 42,526
42,234
Taxes other than income taxes 8,683
8,859
Total electric utility expenses 238,317
291,037
Other 1,121
1,163
Total operating expenses 239,438
292,200

Operating Income 51,570
58,119

Allowance for Equity Funds Used During Construction 7,272
6,356

Earnings of Unconsolidated Equity-Method Investments 2,316
2,381

Other Income, Net 932
2,114

Interest Expense:
Interest on long-term debt 19,662
21,154
Other interest 3,812
3,453
Allowance for borrowed funds used during construction (2,730 ) (2,590 )
Total interest expense, net 20,744
22,017

Income Before Income Taxes 41,346
46,953

Income Tax Expense 3,888
4,316

Net Income 37,458
42,637
Loss attributable to noncontrolling interests 32
49
Net Income Attributable to IDACORP, Inc. $ 37,490
$ 42,686
Weighted Average Common Shares Outstanding - Basic 50,517
50,509
Weighted Average Common Shares Outstanding - Diluted 50,527
50,518
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic $ 0.74
$ 0.85
Earnings Attributable to IDACORP, Inc. - Diluted $ 0.74
$ 0.84

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands)

Net Income	$	44,800	$	37,458
Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $289 and $259, respectively	836		747
Total Comprehensive Income	45,636		38,205
Loss attributable to noncontrolling interests	31		32
Comprehensive Income Attributable to IDACORP, Inc.	$	45,667	$	38,237

Three months ended
March 31,
2020 2019
(in thousands)

Net Income $ 37,458
$ 42,637
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax of $259 and $169, respectively 747
488
Total Comprehensive Income 38,205
43,125
Loss attributable to noncontrolling interests 32
49
Comprehensive Income Attributable to IDACORP, Inc. $ 38,237
$ 43,174

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	March 31, 2021		December 31, 2020
	(in thousands)
Assets

Current Assets:
Cash and cash equivalents	$	240,007	$	275,116
Short-term investments	25,000		25,000
Receivables:
Customer (net of allowance of $5,088 and $4,766, respectively)	73,360		72,826
Other (net of allowance of $561 and $497, respectively)	20,708		12,661
Income taxes receivable	0		2,164
Accrued unbilled revenues	54,895		72,461
Materials and supplies (at average cost)	68,294		64,941
Fuel stock (at average cost)	29,261		31,646
Prepayments	16,580		20,184
Current regulatory assets	63,027		63,407
Other	2,760		1,995
Total current assets	593,892		642,401
Investments	122,862		126,948
Property, Plant and Equipment:
Utility plant in service	6,321,220		6,283,790
Accumulated provision for depreciation	(2,224,063)		(2,193,831)
Utility plant in service - net	4,097,157		4,089,959
Construction work in progress	617,265		597,152
Utility plant held for future use	4,109		4,109
Other property, net of accumulated depreciation	16,688		18,290
Property, plant and equipment - net	4,735,219		4,709,510
Other Assets:
Company-owned life insurance	63,507		62,382
Regulatory assets	1,503,256		1,495,488

Other	59,565		58,515
Total other assets	1,626,328		1,616,385
Total	$	7,078,301	$	7,095,244

March 31,
2020 December 31,
2019
(in thousands)
Assets

Current Assets:
Cash and cash equivalents $ 138,871
$ 217,254
Receivables:
Customer (net of allowance of $2,168 and $1,401, respectively) 67,895
72,675
Other (net of allowance of $268 and $343, respectively) 14,062
18,789
Income taxes receivable —
3,106
Accrued unbilled revenues 53,973
64,545
Materials and supplies (at average cost) 60,020
56,660
Fuel stock (at average cost) 59,188
57,448
Prepayments 22,093
17,638
Current regulatory assets 56,826
56,626
Other 14
405
Total current assets 472,942
565,146
Investments 117,286
98,218
Property, Plant and Equipment:
Utility plant in service 6,163,744
6,113,567
Accumulated provision for depreciation (2,183,261 ) (2,155,783 )
Utility plant in service - net 3,980,483
3,957,784
Construction work in progress 556,498
552,499
Utility plant held for future use 3,697
3,872
Other property, net of accumulated depreciation 17,178
17,299
Property, plant and equipment - net 4,557,856
4,531,454
Other Assets:
Company-owned life insurance 59,972
58,922
Regulatory assets 1,341,052
1,326,433
Other 60,842
61,028
Total other assets 1,461,866
1,446,383
Total $ 6,609,950
$ 6,641,201

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	March 31, 2021		December 31, 2020
	(in thousands)
Liabilities and Equity

Current Liabilities:


Accounts payable	$	81,602	$	120,576
Taxes accrued	34,501		19,508
Interest accrued	19,459		24,030
Accrued compensation	36,972		52,245
Current regulatory liabilities	27,697		11,104
Advances from customers	34,604		29,341
Other	27,037		30,767
Total current liabilities	261,872		287,571
Other Liabilities:
Deferred income taxes	794,525		800,251
Regulatory liabilities	755,542		757,730
Pension and other postretirement benefits	641,113		634,070
Other	48,917		48,752
Total other liabilities	2,240,097		2,240,803
Long-Term Debt	2,000,471		2,000,414
Commitments and Contingencies	0		0
Equity:
IDACORP, Inc. shareholders’ equity:
Common stock, no par value (120,000 shares authorized; 50,515 and 50,462 shares issued, respectively)	868,944		869,235
Retained earnings	1,742,994		1,734,103
Accumulated other comprehensive loss	(42,522)		(43,358)

Total IDACORP, Inc. shareholders’ equity	2,569,416		2,559,980
Noncontrolling interests	6,445		6,476
Total equity	2,575,861		2,566,456
Total	$	7,078,301	$	7,095,244

The accompanying notes are an integral part of these statements.

March 31,
2020 December 31,
2019
(in thousands)
Liabilities and Equity

Current Liabilities:
Current maturities of long-term debt $ —
$ 100,000
Accounts payable 67,662
110,745
Taxes accrued 21,327
11,501
Interest accrued 20,837
20,999
Accrued compensation 39,818
52,550
Current regulatory liabilities 46,009
33,987
Advances from customers 32,668
28,452
Other 19,533
16,625
Total current liabilities 247,854
374,859
Other Liabilities:
Deferred income taxes 742,651
746,231
Regulatory liabilities 741,141
748,198
Pension and other postretirement benefits 515,626
519,570
Other 52,397
45,131
Total other liabilities 2,051,815
2,059,130
Long-Term Debt 1,837,010
1,736,659
Commitments and Contingencies

Equity:
IDACORP, Inc. shareholders’ equity:
Common stock, no par value (120,000 shares authorized; 50,454 and 50,420 shares issued, respectively) 864,850
868,307
Retained earnings 1,638,065
1,634,525
Accumulated other comprehensive loss (35,537 ) (36,284 )
Treasury stock (0 shares and 22 shares, respectively, at cost) —
(1,920 )
Total IDACORP, Inc. shareholders’ equity 2,467,378
2,464,628
Noncontrolling interests 5,893
5,925
Total equity 2,473,271
2,470,553
Total $ 6,609,950
$ 6,641,201

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands)
Operating Activities:
Net income	$	44,800	$	37,458
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,286		43,666
Deferred income taxes and investment tax credits	(3,390)		(1,379)
Changes in regulatory assets and liabilities	2,833		(9,672)
Pension and postretirement benefit plan expense	7,367		7,260
Contributions to pension and postretirement benefit plans	(918)		(12,270)
Earnings of equity-method investments	(2,317)		(2,316)
Distributions from equity-method investments	2,550		2,000
Allowance for equity funds used during construction	(7,769)		(7,272)
Other non-cash adjustments to net income, net	3,238		3,490
Change in:
Receivables	(3,451)		5,102
Accounts payable and other accrued liabilities	(42,219)		(49,389)
Taxes accrued/receivable	17,156		12,932
Other current assets	19,403		1,268
Other current liabilities	2,425		5,122
Other assets	(2,234)		(1,925)
Other liabilities	1,902		(279)
Net cash provided by operating activities	83,662		33,796
Investing Activities:
Additions to property, plant and equipment	(77,293)		(73,566)
Payments received from transmission project joint funding partners	1,096		393


Investments in affordable housing	(5,335)		(1,936)


Purchases of equity securities	(171)		(3,230)
Purchases of short-term investments	(25,000)		0
Maturities of short-term investments	25,000		0
Proceeds from the sale of equity securities	1,557		839

Other	797		3,826
Net cash used in investing activities	(79,349)		(73,674)
Financing Activities:



Dividends on common stock	(36,379)		(34,312)


Tax withholdings on net settlements of share-based awards	(3,026)		(4,183)

Debt issuance costs and other	(17)		(10)
Net cash used in financing activities	(39,422)		(38,505)
Net decrease in cash and cash equivalents	(35,109)		(78,383)
Cash and cash equivalents at beginning of the period	275,116		217,254
Cash and cash equivalents at end of the period	$	240,007	$	138,871
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:

Interest (net of amount capitalized)	$	25,306	$	19,887
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	$	27,910	$	22,843

Three months ended
March 31,
2020 2019
(in thousands)
Operating Activities:
Net income $ 37,458
$ 42,637
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 43,666
43,362
Deferred income taxes and investment tax credits (1,379 ) (4,291 )
Changes in regulatory assets and liabilities (9,672 ) 19,540
Pension and postretirement benefit plan expense 7,260
6,965
Contributions to pension and postretirement benefit plans (12,270 ) (12,410 )
Earnings of equity-method investments (2,316 ) (2,381 )
Distributions from equity-method investments 2,000
7,700
Allowance for equity funds used during construction (7,272 ) (6,356 )
Other non-cash adjustments to net income, net 3,490
2,913
Change in:

Accounts receivable 5,102
(25,235 )
Accounts payable and other accrued liabilities (49,389 ) (44,733 )
Taxes accrued/receivable 12,932
16,757
Other current assets 1,268
9,112
Other current liabilities 5,122
3,737
Other assets (1,925 ) (957 )
Other liabilities (279 ) 639
Net cash provided by operating activities 33,796
56,999
Investing Activities:

Additions to property, plant and equipment (73,566 ) (61,330 )
Payments received from transmission project joint funding partners 393
695
Investments in affordable housing (1,936 ) —
Purchase of equity securities (3,230 ) (240 )
Proceeds from the sale of equity securities 839
1,313
Other 3,826
2,830
Net cash used in investing activities (73,674 ) (56,732 )
Financing Activities:

Dividends on common stock (34,312 ) (32,290 )
Tax withholdings on net settlements of share-based awards (4,183 ) (4,107 )
Debt issuance costs and other (10 ) (20 )
Net cash used in financing activities (38,505 ) (36,417 )
Net decrease in cash and cash equivalents (78,383 ) (36,150 )
Cash and cash equivalents at beginning of the period 217,254
267,492
Cash and cash equivalents at end of the period $ 138,871
$ 231,342
Supplemental Disclosure of Cash Flow Information:

Cash paid during the period for:

Income taxes $ —
$ —
Interest (net of amount capitalized) 19,887
22,889
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable $ 22,843
$ 23,690

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Statements of Equity

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands)
Common Stock
Balance at beginning of period	$	869,235	$	868,307
Share-based compensation expense	2,710		2,624
Tax withholdings on net settlements of share-based awards	(3,026)		(4,183)
Treasury shares issued	0		(1,920)
Other	25		22
Balance at end of period	868,944		864,850
Retained Earnings
Balance at beginning of period	1,734,103		1,634,525
Net income attributable to IDACORP, Inc.	44,831		37,490
Common stock dividends ($0.71 and $0.67 per share, respectively)	(35,940)		(33,950)
Balance at end of period	1,742,994		1,638,065
Accumulated Other Comprehensive (Loss) Income
Balance at beginning of period	(43,358)		(36,284)
Unfunded pension liability adjustment (net of tax)	836		747
Balance at end of period	(42,522)		(35,537)
Treasury Stock
Balance at beginning of period	0		(1,920)
Issued	0		1,920

Balance at end of period	0		0
Total IDACORP, Inc. shareholders’ equity at end of period	2,569,416		2,467,378
Noncontrolling Interests
Balance at beginning of period	6,476		5,925
Net loss attributable to noncontrolling interests	(31)		(32)
Balance at end of period	6,445		5,893
Total equity at end of period	$	2,575,861	$	2,473,271

Three months ended
March 31,
2020 2019
(in thousands)
Common Stock
Balance at beginning of period $ 868,307
$ 863,593
Share-based compensation expense 2,624
2,837
Tax withholdings on net settlements of share-based awards (4,183 ) —
Treasury shares issued (1,920 ) (3,031 )
Other 22
26
Balance at end of period 864,850
863,425
Retained Earnings
Balance at beginning of period 1,634,525
1,531,543
Net income attributable to IDACORP, Inc. 37,490
42,686
Common stock dividends ($0.67 and $0.63 per share, respectively) (33,950 ) (32,054 )
Balance at end of period 1,638,065
1,542,175
Accumulated Other Comprehensive (Loss) Income
Balance at beginning of period (36,284 ) (22,844 )
Unfunded pension liability adjustment (net of tax) 747
488
Balance at end of period (35,537 ) (22,356 )
Treasury Stock
Balance at beginning of period (1,920 ) (1,932 )
Issued 1,920
3,031
Acquired for tax withholdings on net settlements of share-based awards —
(4,107 )
Balance at end of period —
(3,008 )
Total IDACORP, Inc. shareholders’ equity at end of period 2,467,378
2,380,236
Noncontrolling Interests
Balance at beginning of period 5,925
5,451
Net loss attributable to noncontrolling interests (32 ) (49 )
Balance at end of period 5,893
5,402
Total equity at end of period $ 2,473,271
$ 2,385,638

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Statements of Income

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands)

Operating Revenues	$	315,568	$	290,488

Operating Expenses:
Operation:
Purchased power	67,988		61,201
Fuel expense	33,306		30,015
Power cost adjustment	5,671		(3,391)
Other operations and maintenance	85,657		89,808
Energy efficiency programs	9,027		9,475
Depreciation	43,315		42,526
Other operating expenses	9,327		9,141
Total operating expenses	254,291		238,775

Operating Income	61,277		51,713

Nonoperating (Income) Expense:
Allowance for equity funds used during construction	(7,769)		(7,272)
Earnings of unconsolidated equity-method investments	(2,550)		(2,453)
Interest on long-term debt	21,036		19,662
Other interest	3,514		3,813
Allowance for borrowed funds used during construction	(3,005)		(2,730)
Other income, net	(191)		(469)
Total nonoperating expense, net	11,035		10,551

Income Before Income Taxes	50,242		41,162

Income Tax Expense	5,873		4,386

Net Income	$	44,369	$	36,776

Three months ended
March 31,
2020 2019
(in thousands)

Operating Revenues $ 290,488
$ 349,771

Operating Expenses:
Operation:
Purchased power 61,201
62,831
Fuel expense 30,015
51,870
Power cost adjustment (3,391 ) 26,225
Other operations and maintenance 89,808
88,906
Energy efficiency programs 9,475
10,112
Depreciation 42,526
42,234
Taxes other than income taxes 8,683
8,859
Total operating expenses 238,317
291,037

Income from Operations 52,171
58,734

Other Income:
Allowance for equity funds used during construction 7,272
6,356
Earnings of unconsolidated equity-method investments 2,453
2,231
Other income, net 11
922
Total other income 9,736
9,509

Interest Charges:
Interest on long-term debt 19,662
21,154
Other interest 3,813
3,429
Allowance for borrowed funds used during construction (2,730 ) (2,590 )
Total interest charges 20,745
21,993

Income Before Income Taxes 41,162
46,250

Income Tax Expense 4,386
4,666

Net Income $ 36,776
$ 41,584

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands)

Net Income	$	44,369	$	36,776
Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $289 and $259, respectively	836		747
Total Comprehensive Income	$	45,205	$	37,523

Three months ended
March 31,
2020 2019
(in thousands)

Net Income $ 36,776
$ 41,584
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax of $259 and $169, respectively 747
488
Total Comprehensive Income $ 37,523
$ 42,072

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


	March 31, 2021		December 31, 2020
	(in thousands)
Assets

Current Assets:
Cash and cash equivalents	$	134,536	$	165,604
Receivables:
Customer (net of allowance of $5,088 and $4,766, respectively)	73,360		72,826
Other (net of allowance of $561 and $497, respectively)	21,051		12,457
Income taxes receivable	0		4,667
Accrued unbilled revenues	54,895		72,461
Materials and supplies (at average cost)	68,294		64,941
Fuel stock (at average cost)	29,261		31,646
Prepayments	16,441		20,057

Current regulatory assets	63,027		63,407
Other	2,760		1,995
Total current assets	463,625		510,061
Investments	85,442		87,848
Property, Plant and Equipment:
Plant in service	6,321,220		6,283,790
Accumulated provision for depreciation	(2,224,063)		(2,193,831)
Plant in service - net	4,097,157		4,089,959
Construction work in progress	617,265		597,152
Plant held for future use	4,109		4,109
Other property	3,640		5,123
Property, plant and equipment, net	4,722,171		4,696,343
Other Assets:
Company-owned life insurance	63,507		62,382
Regulatory assets	1,503,256		1,495,488
Other	55,075		53,988
Total other assets	1,621,838		1,611,858
Total	$	6,893,076	$	6,906,110

March 31,
2020 December 31,
2019
(in thousands)
Assets

Electric Plant:
In service (at original cost) $ 6,163,744
$ 6,113,567
Accumulated provision for depreciation (2,183,261 ) (2,155,783 )
In service - net 3,980,483
3,957,784
Construction work in progress 556,498
552,499
Held for future use 3,697
3,872
Electric plant - net 4,540,678
4,514,155
Investments and Other Property 89,662
87,104
Current Assets:
Cash and cash equivalents 32,420
98,950
Receivables:
Customer (net of allowance of $2,168 and $1,401, respectively) 67,895
72,675
Other (net of allowance of $268 and $343, respectively) 13,860
17,107
Income taxes receivable —
9,279
Accrued unbilled revenues 53,973
64,545
Materials and supplies (at average cost) 60,020
56,660
Fuel stock (at average cost) 59,188
57,448
Prepayments 21,946
17,520
Current regulatory assets 56,826
56,626
Other 14
405
Total current assets 366,142
451,215
Deferred Debits:
Company-owned life insurance 59,972
58,922
Regulatory assets 1,341,052
1,326,433
Other 56,195
56,330
Total deferred debits 1,457,219
1,441,685
Total $ 6,453,701
$ 6,494,159

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


	March 31, 2021		December 31, 2020
	(in thousands)
Liabilities and Equity

Current Liabilities:


Accounts payable	$	81,529	$	120,476
Accounts payable to affiliates	118		1,720
Taxes accrued	32,369		19,554
Interest accrued	19,415		24,030

Accrued compensation	36,834		52,036
Current regulatory liabilities	27,697		11,104
Advances from customers	34,604		29,341
Other	16,907		16,717
Total current liabilities	249,473		274,978
Other Liabilities:
Deferred income taxes	825,179		829,146
Regulatory liabilities	755,542		757,730
Pension and other postretirement benefits	641,113		634,070
Other	48,199		45,937
Total other liabilities	2,270,033		2,266,883
Long-Term Debt	2,000,471		2,000,414
Commitments and Contingencies	0		0
Equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding)	97,877		97,877
Premium on capital stock	712,258		712,258
Capital stock expense	(2,097)		(2,097)
Retained earnings	1,607,583		1,599,155
Accumulated other comprehensive loss	(42,522)		(43,358)
Total equity	2,373,099		2,363,835
Total	$	6,893,076	$	6,906,110

The accompanying notes are an integral part of these statements.

March 31,
2020 December 31,
2019
(in thousands)
Capitalization and Liabilities

Capitalization:
Common stock equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding) $ 97,877
$ 97,877
Premium on capital stock 712,258
712,258
Capital stock expense (2,097 ) (2,097 )
Retained earnings 1,506,629
1,503,805
Accumulated other comprehensive loss (35,537 ) (36,284 )
Total common stock equity 2,279,130
2,275,559
Long-term debt 1,837,010
1,736,659
Total capitalization 4,116,140
4,012,218
Current Liabilities:
Current maturities of long-term debt —
100,000
Accounts payable 67,542
110,581
Accounts payable to affiliates 2,605
2,053
Taxes accrued 24,648
11,481
Interest accrued 20,837
20,999
Accrued compensation 31,736
52,267
Current regulatory liabilities 46,009
33,987
Advances from customers 32,668
28,452
Other 18,920
15,629
Total current liabilities 244,965
375,449
Deferred Credits:
Deferred income taxes 792,059
794,402
Regulatory liabilities 741,141
748,198
Pension and other postretirement benefits 515,626
519,570
Other 43,770
44,322
Total deferred credits 2,092,596
2,106,492

Commitments and Contingencies

Total $ 6,453,701
$ 6,494,159

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Three months ended March 31,
	2021		2020
	(in thousands)
Operating Activities:
Net income	$	44,369	$	36,776
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,138		43,505
Deferred income taxes and investment tax credits	(2,958)		(1,207)
Changes in regulatory assets and liabilities	2,833		(9,672)
Pension and postretirement benefit plan expense	7,367		7,260
Contributions to pension and postretirement benefit plans	(918)		(12,270)
Earnings of equity-method investments	(2,550)		(2,453)
Distributions from equity-method investments	2,550		2,000
Allowance for equity funds used during construction	(7,769)		(7,272)
Other non-cash adjustments to net income, net	528		867
Change in:
Receivables	(5,600)		4,161
Accounts payable	(42,193)		(49,344)
Taxes accrued/receivable	17,482		22,446
Other current assets	19,414		1,297
Other current liabilities	2,451		5,207
Other assets	(2,245)		(1,935)
Other liabilities	2,003		(180)
Net cash provided by operating activities	78,902		39,186
Investing Activities:
Additions to utility plant	(77,293)		(73,566)

Payments received from transmission project joint funding partners	1,096		393


Purchases of equity securities	(171)		(3,230)
Proceeds from the sale of equity securities	1,557		839

Other	797		3,796
Net cash used in investing activities	(74,014)		(71,768)
Financing Activities:



Dividends on common stock	(35,941)		(33,952)



Other	(15)		4
Net cash used in financing activities	(35,956)		(33,948)
Net decrease in cash and cash equivalents	(31,068)		(66,530)
Cash and cash equivalents at beginning of the period	165,604		98,950
Cash and cash equivalents at end of the period	$	134,536	$	32,420
Supplemental Disclosure of Cash Flow Information:
Cash received from IDACORP related to income taxes	$	0	$	(9,189)
Cash paid for interest (net of amount capitalized)	25,346		19,888
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	$	27,910	$	22,843

Three months ended
March 31,
2020 2019
(in thousands)
Operating Activities:
Net income $ 36,776
$ 41,584
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 43,505
43,212
Deferred income taxes and investment tax credits (1,207 ) (4,137 )
Changes in regulatory assets and liabilities (9,672 ) 19,540
Pension and postretirement benefit plan expense 7,260
6,965
Contributions to pension and postretirement benefit plans (12,270 ) (12,410 )
Earnings of equity-method investments (2,453 ) (2,231 )
Distributions from equity-method investments 2,000
7,700
Allowance for equity funds used during construction (7,272 ) (6,356 )
Other non-cash adjustments to net income, net 867
77
Change in:

Accounts receivable 4,161
(24,378 )
Accounts payable (49,344 ) (44,631 )
Taxes accrued/receivable 22,446
16,802
Other current assets 1,297
9,132
Other current liabilities 5,207
3,843
Other assets (1,935 ) (957 )
Other liabilities (180 ) 692
Net cash provided by operating activities 39,186
54,447
Investing Activities:

Additions to utility plant (73,566 ) (61,330 )
Payments received from transmission project joint funding partners 393
695
Purchase of equity securities (3,230 ) (240 )
Proceeds from the sale of equity securities 839
1,313
Other 3,796
2,830
Net cash used in investing activities (71,768 ) (56,732 )
Financing Activities:

Dividends on common stock (33,952 ) (32,054 )
Other 4
—
Net cash used in financing activities (33,948 ) (32,054 )
Net decrease in cash and cash equivalents (66,530 ) (34,339 )
Cash and cash equivalents at beginning of the period 98,950
165,460
Cash and cash equivalents at end of the period $ 32,420
$ 131,121
Supplemental Disclosure of Cash Flow Information:

Cash received from IDACORP related to income taxes $ (9,189 ) $ —
Cash paid for interest (net of amount capitalized) 19,888
22,866
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable $ 22,843
$ 23,690

The accompanying notes are an integral part of these statements.

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IDACORP, INC. AND IDAHO POWER COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This Quarterly Report on Form 10-Q is a combined report of IDACORP, Inc. (IDACORP) and Idaho Power Company (Idaho Power). Therefore, these Notes to Condensed Consolidated Financial Statements apply to both IDACORP and Idaho Power. However, Idaho Power makes no representation as to the information relating to IDACORP’s other operations.

Nature of Business

IDACORP is a holding company formed in 1998 whose principal operating subsidiary is Idaho Power. Idaho Power is an electric utility engaged in the generation, transmission, distribution, sale, and purchase of electric energy and capacity with a service area covering approximately 24,000 square miles in southern Idaho and eastern Oregon. Idaho Power is regulated primarily by the state utility regulatory commissions of Idaho and Oregon and the Federal Energy Regulatory Commission (FERC). Idaho Power is the parent of Idaho Energy Resources Co. (IERCo), a joint venturer in Bridger Coal Company (BCC), which mines and supplies coal to the Jim Bridger generating plant (Jim Bridger plant) owned in part by Idaho Power.

IDACORP’s significant other wholly-owned subsidiaries include IDACORP Financial Services, Inc. (IFS), an investor in affordable housing and other real estate tax credit investments, and Ida-West Energy Company (Ida-West), an operator of small hydropower generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

Regulation of Utility Operations

As a regulated utility, many of Idaho Power's fundamental business decisions are subject to the approval of governmental agencies, including the prices that Idaho Power is authorized to charge for its electric service. These approvals are a critical factor in determining IDACORP's and Idaho Power's results of operations and financial condition.

IDACORP's and Idaho Power's financial statements reflect the effects of the different ratemaking principles followed by the jurisdictions regulating Idaho Power. The application of accounting principles related to regulated operations sometimes results in Idaho Power recording expenses and revenues in a different period than when an unregulated enterprise would record such expenses and revenues. In these instances, the amounts are deferred or accrued as regulatory assets or regulatory liabilities on the balance sheet. Regulatory assets represent incurred costs that have been deferred because it is probable they will be recovered from customers through future rates. Regulatory liabilities represent obligations to make refunds to customers for previous collections, or represent amounts collected in advance of incurring an expense. The effects of applying these regulatory accounting principles to Idaho Power's operations are discussed in more detail in Note 3 - "Regulatory Matters."

Financial Statements

In the opinion of management of IDACORP and Idaho Power, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly each company's consolidated financial position as of March 31, ~~2020,~~2021, consolidated results of operations for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, and consolidated cash flows for the three months ended March 31, ~~2020~~2021 and ~~2019.~~2020. These adjustments are of a normal and recurring nature. These financial statements do not contain the complete detail or note disclosures concerning accounting policies and other matters that would be included in full-year financial statements and should be read in conjunction with the audited consolidated financial statements included in IDACORP’s and Idaho Power’s Annual Report on Form 10-K for the year ended December 31, ~~2019 (2019~~2020 (2020 Annual Report). The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. A change in management's estimates or assumptions could have a material impact on IDACORP's or Idaho Power's respective financial condition and results of operations during the period in which such change occurred.

Management Estimates

Management makes estimates and assumptions when preparing financial statements in conformity with generally accepted accounting principles. These estimates and assumptions include those related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates involve judgments

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with respect to, among other things, future economic factors that are difficult to predict and are beyond management's control. Accordingly, actual results could differ from those estimates.

~~New and Recently Adopted Accounting Pronouncements~~

Reclassifications

Idaho Power changed the presentation of its consolidated statements of income from a utility format to a traditional format. The changes revised the order of certain line items and did not result in any material changes in classification of amounts between line items.

In ~~June 2016,~~ the ~~Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13,~~ ~~Financial Instruments-Credit Losses (Topic 326): Measurement~~condensed consolidated statements of ~~Credit Losses on Financial Instruments~~income, certain amounts in prior periods' consolidated statements of income have been reclassified to ~~provide financial statement users~~conform with ~~more information about expected credit losses on financial instruments and other commitments. The ASU revises the incurred loss impairment methodology to reflect~~ current ~~expected credit losses and requires consideration of a broader range of information to estimate credit losses. IDACORP~~period presentation. On IDACORP's and Idaho ~~Power adopted ASU 2016-13 on January 1, 2020. The adoption did not have a material impact on their respective financial~~Power's condensed consolidated statements ~~but did result in the additional disclosure below.~~

~~The measurement~~ of expected credit losses on Idaho Power accounts receivable is based upon historical experience, current conditions, and forecasted information that may affect collections on the outstanding balance. Generally, this includes adjustments based upon a combination of historical write-off experience, aging of accounts receivable, an analysis of specific customer accounts, and an evaluation of whether there are current or forecasted economic conditions that might cause variation in collection from the historical experience. In response to the COVID-19 public health crisis, Idaho Power provided certain relief to customers including temporarily suspending disconnections for homes and small businesses facing hardship because of the coronavirus pandemic and temporarily waiving late fees for residential and small business customers. Idaho Power currently anticipates that this relief as well as the economic conditions created by the response to the COVID-19 public health crisis will increase late payments and uncollectible account write-offs. As a result, Idaho Power increased its allowance for uncollectible accounts related to customer receivables at March 31, 2020. The allowance for uncollectible accounts increased to 3.1 percent of the total customer receivables balance at March 31, 2020, compared with 1.9 percent at December 31, 2019, and 2.1 percent at March 31, 2019.

~~The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables~~income for the three months ended March 31, 2020, $0.5 million that had previously been reported as "Other" within "Operating Expenses" and ~~2019 (in thousands):~~"Other expense, net" within "Other Income (Expense)" respectively, were reclassified to "Other electric utility operating expenses" and "Other operating expenses" within "Operating Expenses," respectively.

Three months ended
March 31,
2020 2019
Balance at beginning of period $ 1,401
$ 1,725
Additions to the allowance 983
1,012
Write-offs, net of recoveries (216 ) (646 )
Balance at end of period $ 2,168
$ 2,091
Allowance for uncollectible accounts as a percentage of customer receivables 3.1 % 2.1 %

New and Recently Adopted Accounting Pronouncements

~~In August 2018, the FASB~~

There have been no recently issued ~~ASU 2018-15,~~ ~~Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract~~,

~~to provide guidance on implementation costs incurred in a cloud computing arrangement~~accounting pronouncements that ~~is a service contract. ASU 2018-15 aligns the recognition of such implementation costs with the accounting for costs incurred~~have had or are expected to implement an internal-use software solution. However, the balance sheet line item for presentation of capitalized implementation costs for a cloud computing arrangement that is a service contract should be the same as that for the prepayment of fees related to the same arrangement, while capitalized implementation costs for internal-use software solutions are often included in property, plant, and equipment as an intangible asset. IDACORP and Idaho Power adopted ASU 2018-15 on January 1, 2020. The adoption did not have a material impact on ~~their respective~~IDACORP's or Idaho Power's consolidated financial statements.

2. INCOME TAXES

In accordance with interim reporting requirements, IDACORP and Idaho Power use an estimated annual effective tax rate for computing their provisions for income taxes. An estimate of annual income tax expense (or benefit) is made each interim period using estimates for annual pre-tax income, income tax adjustments, and tax credits. The estimated annual effective tax rates do not include discrete events such as tax law changes, examination settlements, accounting method changes, or adjustments to tax expense or benefits attributable to prior years. Discrete events are recorded in the interim period in which they occur or become known. The estimated annual effective tax rate is applied to year-to-date pre-tax income to determine income tax expense (or benefit) for the interim period consistent with the annual estimate. In subsequent interim periods, income tax expense (or

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benefit) for the period is computed as the difference between the year-to-date amount reported for the previous interim period and the current period's year-to-date amount.

Income Tax Expense

The following table provides a summary of income tax expense for the three months ended March 31, ~~2020~~2021 and ~~2019~~2020 (in thousands):


														IDACORP						Idaho Power
														2021			2020			2021			2020
Income tax at statutory rates (federal and state)													Income tax at statutory rates (federal and state)	$	12,849		$	10,651		$	12,932		$	10,595

Excess deferred income tax reversal													Excess deferred income tax reversal	(1,606)			(1,481)			(1,606)			(1,481)

	IDACORP						Idaho Power
	2020			2019			2020			2019
Income tax at statutory rates (federal and state)	$	10,651		$	12,098		$	10,595		$	11,905
Excess deferred income tax reversal	(1,481		)	(1,631		)	(1,481		)	(1,631		)

Other⁽¹⁾	(5,282		)	(6,151		)	(4,728		)	(5,608		)	Other(1)	(6,157)			(5,282)			(5,453)			(4,728)
Income tax expense	$	3,888		$	4,316		$	4,386		$	4,666		Income tax expense	$	5,086		$	3,888		$	5,873		$	4,386
Effective tax rate	9.4		%	9.2		%	10.7		%	10.1		%	Effective tax rate	10.2		%	9.4		%	11.7		%	10.7		%

Table of Contentshanges in customer mix, as volumes sold to residential customers in the first quarter of 2020 made up a lesser portion of the customer sales mix compared with the first quarter of 2019. Residential customers generally pay a higher per-MWh rate than other customers. Also, the Idaho-jurisdiction PCA mechanism includes a cost or benefit ratio that allocates the deviations in certain net power supply expenses between customers (95 percent) and Idaho Power (5 percent). In the first quarter of 2019, net power supply expenses were reduced by a significant amount of wholesale energy sales due to regional wholesale energy market conditions. Regional wholesale energy prices were elevated due to below normal regional temperatures, lack of energy imports due to equipment maintenance, and natural gas pipeline disruptions. The higher wholesale energy prices during the first quarter of 2019 led to greater wholesale energy sales by Idaho Power, of which 5 percent benefited Idaho Power.

During the first quarter of ~~2020,~~2021, transmission wheeling-related revenues ~~decreased $5.4~~increased $4.1 million compared with the first quarter of ~~2019.~~2020 due to an increase in wheeling volumes and an increase in Idaho Power's open access transmission tariff (OATT) ~~rates decreased approximately 13 percent~~rates. Colder winter weather in ~~October 2019 and there was less regional wholesale market activity~~the southwest United States increased wheeling volumes in the first quarter of ~~2020~~2021 compared with the first quarter of ~~2019 due to the market conditions noted above.~~

~~Other O&M expenses~~2020. Also, Idaho Power's OATT rates were ~~$0.9 million~~approximately 10 percent higher in the first quarter of ~~2020~~2021 compared with the first quarter of ~~2019, primarily due to a slight increase in labor and benefit costs.~~2020.

~~Based on its estimate of full-year 2020 return on year-end equity in the Idaho jurisdiction (Idaho ROE),~~Other O&M expenses were $4.2 million lower in the first quarter of 2021 compared with the first quarter of 2020, partially due to a difference in the timing of cloud seeding activities and cost savings initiatives at the jointly-owned coal plants. The decrease was also due to the October 2020 closure of Idaho ~~Power recorded no additional accumulated deferred investment~~Power's jointly-owned coal plant in Boardman, Oregon. A regulatory mechanism facilitating the recovery of costs related to the closure of the Boardman plant also reduced operating revenues by a corresponding amount in the first quarter of 2021 compared with the first quarter of 2020. In addition, COVID-19-related decreases in employee travel and training costs reduced other O&M expenses in the first quarter of 2021 compared with the first quarter of 2020.

The increase in income tax ~~credits (ADITC) amortization or any provision against revenues~~expense for ~~sharing~~the first quarter of ~~earnings~~2021, compared with ~~customers under~~ the ~~Idaho regulatory settlement stipulation approved in May 2018.~~first quarter of 2020, was primarily due to greater 2021 pre-tax income.

Overview of General Factors and Trends Affecting Results of Operations and Financial Condition

IDACORP's and Idaho Power's results of operations and financial condition are affected by a number of factors, and the impact of those factors is discussed in more detail below in this MD&A. To provide context for the discussion elsewhere in this report, some of the more notable factors are as follows:

•

•Regulation of Rates and Cost Recovery: The prices that Idaho Power is authorized to charge for its electric and transmission service is a critical factor in determining IDACORP's and Idaho Power's results of operations and financial condition. Those rates are established by state regulatory commissions and the FERC and are intended to allow Idaho Power an opportunity to recover its expenses and earn a reasonable return on investment. Idaho Power focuses on timely recovery of its costs through filings with its regulators, working to put in place innovative regulatory mechanisms, and on the prudent management of expenses and investments. Idaho Power has a regulatory settlement stipulation in Idaho that includes provisions for the accelerated amortization of certain tax credits to help achieve a minimum 9.4 percent Idaho-jurisdiction return on year-end equity (Idaho ROE). The settlement stipulation also provides for the potential sharing between Idaho Power and its Idaho customers of Idaho-jurisdictional earnings in excess of 10.0 percent of Idaho ROE. The settlement stipulation has no expiration date but the minimum Idaho ROE would revert back to 95 percent of the allowed return on equity in the next rate case. The specific terms of the settlement stipulation are established by state regulatory commissions and the FERC and are intended to allow Idaho Power an opportunity to recover its expenses and earn a reasonable return on investment. Idaho Power focuses on timely recovery of its costs through filings with its regulators, working to put in place innovative regulatory mechanisms, and on the prudent management of expenses and investments. Idaho Power has a regulatory settlement stipulation in Idaho that includes provisions for the accelerated amortization of certain tax credits to help achieve a minimum 9.4 percent Idaho ROE. The settlement stipulation also provides for the potential sharing between Idaho Power and its Idaho customers of Idaho-jurisdictional earnings in excess of 10.0 percent of Idaho ROE. The settlement stipulation has no expiration date but the minimum Idaho ROE would revert back to 95 percent of the allowed return on equity in the next rate case. The specific terms of the settlement stipulation is described in Note 3 - "Regulatory Matters" to the consolidated financial statements ~~included in the 2019 Annual Report. Idaho Power will continue to assess the need to file a general rate case to reset base rates but does not anticipate filing a rate case in the next twelve months.~~

•

~~Economic Conditions and Loads:~~ Economic conditions impact consumer demand for energy, revenues, collectability of accounts, the volume of wholesale energy sales, and the need to construct and improve infrastructure, purchase power, and implement programs to meet customer load demands. In recent years, Idaho Power has seen growth in the number of customers in its service area. Over the twelve months ended March 31, 2020, Idaho Power's customer count grew by 2.6 percent. Idaho Power expects its number of customers to continue to increase in the foreseeable future, unless the COVID-19 public health crisis adversely impacts customer growth. As noted above, Idaho Power is considered an "essential business" by the state governments of Idaho and Oregon and its provision of electricity to customers through its power supply, transmission, and distribution operations continues largely uninterrupted. Despite the Oregon and Idaho stay-at-home orders not going into effect until March 23 and 25, 2020, respectively, in March 2020, Idaho Power experienced a 5 percent decrease in usage per commercial customer, likely due to the impacts of COVID-19 and more moderate weather. Lower commercial customer usage could continue, and potentially worsen, particularly if overall economic conditions deteriorate over a sustained period as a result of COVID-19. While the volume of retail sales to industrial customers was the same in the first quarters of 2019 and 2020, Idaho Power could

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~~also see notable usage declines from industrial customers if the negative economic impacts of the COVID-19 public health crisis continue.~~

~~In June 2019, Idaho Power released its 2019 Integrated Resource Plan (IRP), which was amended in January 2020. The load forecast assumptions Idaho Power used in the 2019 IRP are~~ included in the ~~table below. For comparison purposes,~~2020 Annual Report. Idaho Power will continue to assess the ~~analogous average annual growth~~need to file a general rate case to reset base rates ~~used~~but does not anticipate filing a rate case in the ~~prior two IRPs are included.~~next twelve months.

•Economic Conditions and Loads: Economic conditions impact consumer demand for energy, revenues, collectability of accounts, the volume of wholesale energy sales, and the need to construct and improve infrastructure, purchase power, and implement programs to meet customer load demands. In recent years, Idaho Power has seen growth in the number of customers in its service area. Over the twelve months ended March 31, 2021, Idaho Power's customer count grew by 2.9 percent. Idaho Power expects its number of customers to continue to increase in the foreseeable future. Idaho Power expects that existing and sustained future customer growth will require Idaho Power to continue to enhance its distribution and transmission system infrastructure, including the Boardman-to-Hemingway project. That growth may also result in the need for Idaho Power to procure other new sources of energy and capacity to serve growing loads and to maintain system reliability. Idaho Power is analyzing options for potential energy and capacity resource procurement, while at the same time working on its 2021 Integrated Resources Plan. As noted above, Idaho Power's provision of electricity to customers through its power supply, transmission, and distribution operations continues largely uninterrupted despite the COVID-19 pandemic, other than lower average usage by commercial customers since the pandemic began compared with their usage before the pandemic.

•Weather Conditions: Weather and agricultural growing conditions have a significant impact on Idaho Power's energy sales. Relatively low and high temperatures result in greater energy use for heating and cooling, respectively. During the agricultural growing season, which in large part occurs during the second and third quarters, irrigation customers use electricity to operate irrigation pumps, and weather conditions can impact the timing and extent of use of those pumps. Idaho Power also has tiered rates and seasonal rates, which contribute to increased revenues during higher-load periods, most notably during the third quarter of each year when overall customer demand is highest. Much of the adverse or favorable impact of weather on sales of energy to residential and small commercial customers is mitigated

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5-Year Forecasted Annual Growth Rate 20-Year Forecasted Annual Growth Rate

Retail Sales
(Billed MWh)

Annual Peak
(Peak Demand)

Retail Sales
(Billed MWh)

Annual Peak
(Peak Demand)
2019 IRP 1.3% 1.4% 1.0% 1.2%
2017 IRP 1.1% 1.6% 0.9% 1.4%
2015 IRP 1.5% 1.8% 1.2% 1.5%
through the Idaho FCA mechanism, which is described in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.

•

~~Weather Conditions:~~ Weather and agricultural growing conditions have a significant impact on Idaho Power's energy sales. Relatively low and high temperatures result in greater energy use for heating and cooling, respectively. During the agricultural growing season, which in large part occurs during the second and third quarters, irrigation customers use electricity to operate irrigation pumps, and weather conditions can impact the timing and extent of use of those pumps. Idaho Power also has tiered rates and seasonal rates, which contribute to increased revenues during higher-load periods, most notably during the third quarter of each year when overall customer demand is highest. Much of the adverse or favorable impact of weather on sales of energy to residential and small commercial customers is mitigated through the Idaho FCA mechanism, which is described in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.

Further, as Idaho Power's hydropower facilities comprise ~~nearly~~over one-half of Idaho Power's nameplate generation capacity, precipitation levels impact the mix of Idaho Power's generation resources. When hydropower generation is reduced, Idaho Power must rely on more expensive generation sources and purchased power. When favorable hydropower generating conditions exist for Idaho Power, they also may exist for other Pacific Northwest hydropower facility operators, lowering regional wholesale market prices and impacting the revenue Idaho Power receives from wholesale energy sales. Much of the adverse or favorable impact of this volatility is addressed through the Idaho and Oregon power cost adjustment mechanisms. For ~~2020,~~2021, Idaho Power expects generation from its hydropower resources to be in the range of ~~6.0~~5.5 to ~~8.0~~7.5 million MWh, compared with ~~20-year~~ average total annual generation of approximately 7.7 million MWh over the last 30 years.

•Rate Base Growth and Infrastructure Investment: As noted above, the rates established by the IPUC and OPUC are determined with the intent to provide an opportunity for Idaho Power to recover authorized operating expenses and depreciation and earn a reasonable return on “rate base.” Rate base is generally determined by reference to the original cost (net of accumulated depreciation) of utility plant in service and certain other assets, subject to various adjustments for deferred taxes and other items. Over time, rate base is increased by additions to utility plant in service and reduced by depreciation and retirement of utility plant and write-offs as authorized by the IPUC and OPUC. Idaho Power is pursuing significant enhancements to its utility infrastructure in an effort to maintain system reliability, ensure an adequate supply of electricity, and to provide service to new customers, including major ongoing transmission projects such as the Boardman-to-Hemingway and Gateway West projects. Idaho Power's existing hydropower and thermal generation facilities also require continuing upgrades and equipment replacement, and the company is undertaking a significant relicensing effort for the Hells Canyon Complex (HCC), its largest hydropower generation resource. Idaho Power intends to pursue timely inclusion of ~~7.3 million MWh.~~any significant completed capital projects into rate base as part of a future general rate case or other appropriate regulatory proceeding.

•

~~Rate Base Growth and Infrastructure Investment:~~As noted above, the rates established by the IPUC and OPUC are determined with the intent to provide an opportunity for Idaho Power to recover authorized operating expenses and depreciation and earn a reasonable return on “rate base.” Rate base is generally determined by reference to the original cost (net of accumulated depreciation) of utility plant in service and certain other assets, subject to various adjustments for deferred taxes and other items. Over time, rate base is increased by additions to utility plant in service and reduced by depreciation and retirement of utility plant and write-offs as authorized by the IPUC and OPUC. In recent years, Idaho Power has been pursuing significant enhancements to its utility infrastructure in an effort to maintain system reliability, ensure an adequate supply of electricity, and to provide service to new customers, including major ongoing transmission projects such as the Boardman-to-Hemingway and Gateway West projects. Idaho Power's existing hydropower and thermal generation facilities also require continuing upgrades and equipment replacement, and the company is undertaking a significant relicensing effort for the Hells Canyon Complex (HCC), its largest hydropower generation resource. Idaho Power intends to pursue timely inclusion of any significant completed capital projects into rate base as part of a future general rate case or other appropriate regulatory proceeding.

•

Mitigation ~~of Impact of Fuel and Purchased Power Expense:~~ In addition to hydropower generation, Idaho Power relies significantly on natural gas and coal to fuel its generation facilities and on power purchases in the wholesale markets. Fuel costs are impacted by electricity sales volumes, the terms and conditions of contracts for fuel, Idaho Power's generation capacity, the availability of hydropower generation resources, transmission capacity, energy market prices, and Idaho Power's hedging program for managing fuel costs. Purchased power costs are impacted by the terms and conditions of contracts for purchased power, the rate of expansion of alternative energy generation sources such as wind or solar energy, and wholesale energy market prices. The Idaho and Oregon power cost adjustment mechanisms mitigate in large part the potential adverse impacts to Idaho Power of fluctuations in power supply costs.


•	~~Regulatory and Environmental Compliance Costs:~~ ~~Idaho Power is subject to extensive federal and state laws,~~

~~Table~~ of ~~Contents~~Impact of Fuel and Purchased Power Expense: In addition to hydropower generation, Idaho Power relies significantly on natural gas and coal to fuel its generation facilities and on power purchases in the wholesale markets. Fuel costs are impacted by electricity sales volumes, the terms and conditions of contracts for fuel, Idaho Power's generation capacity, the availability of hydropower generation resources, transmission capacity, energy market prices, and Idaho Power's hedging program for managing fuel costs. Purchased power costs are impacted by the terms and conditions of contracts for purchased power, the rate of expansion of alternative energy generation sources such as wind or solar energy, and wholesale energy market prices. The Idaho and Oregon power cost adjustment mechanisms mitigate in large part the potential adverse impacts to Idaho Power of fluctuations in power supply costs.

•Regulatory and Environmental Compliance Costs: Idaho Power is subject to extensive federal and state laws, policies, and regulations, as well as regulatory actions and audits by agencies and quasi-governmental agencies, including the FERC, the North American Electric Reliability Corporation, and the Western Electricity Coordinating Council. Compliance with these requirements directly influences Idaho Power's operating environment and affects Idaho Power's operating costs. Recently, energy industry regulators have issued substantial penalties for utilities alleged to have violated reliability and critical infrastructure protection requirements. Moreover, environmental laws and regulations, in particular, may increase the cost of constructing new facilities, may increase the cost of operating generation plants, including Idaho Power's jointly-owned coal-fired generating plants, may require that Idaho Power install additional pollution control devices at existing generating plants, or may require that Idaho Power cease operating certain generation plants. Idaho Power expects to spend significant amounts on environmental compliance and controls in the next ~~decade, and due~~decade. Due to economic factors in part associated with the costs of compliance with environmental regulation, ~~has~~Idaho Power accelerated the retirement ~~dates of two~~date of its jointly-owned coal-fired generating ~~plants.~~plant in Valmy, Nevada, ceasing operations at one unit in 2019, and Idaho Power is reviewing the retirement date for the other co-owned unit based on economics and reliability needs. In addition, Idaho Power's jointly-owned coal plant in Boardman, Oregon, ceased operations as planned in October 2020.

•

•Water Management and Relicensing of Hydropower Projects: Because of Idaho Power's reliance on stream flow in the Snake River and its tributaries, Idaho Power participates in numerous proceedings and venues that may affect its water rights, seeking to preserve the long-term availability of its rights for its hydropower projects. Also, Idaho Power is involved in renewing its long-term federal licenses for the HCC, its largest hydropower generation source, and for American Falls, its second largest hydropower generation source. Given the number of parties involved, Idaho Power's relicensing costs have been and are expected to continue to be substantial. Idaho Power cannot currently determine the ultimate terms of, and costs associated with, any resulting long-term licenses.

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•Wildfire Mitigation Efforts: In recent years, in the western United States there has been an increasing trend in the degree of annual destruction from wildfires. A variety of factors have contributed in varying degrees to this trend including climate change, increased wildland-urban interfaces, historical land management practices, and overall wildland and forest health. While Idaho Power has not experienced the extent of catastrophic wildfires within its service area that have occurred in California, Oregon, and elsewhere in the western United States, Idaho Power is taking a proactive approach to wildfire threat relative to its service area. Idaho Power has drafted a Wildfire Mitigation Plan (WMP) that outlines actions Idaho Power is taking or is working to implement in the future to reduce wildfire risk and to strengthen the resiliency of its transmission and distribution system to wildfires. Idaho Power's approach to achieve these objectives includes identifying areas subject to elevated risk; system hardening programs, vegetation management, and field personnel practices to mitigate wildfire risk; incorporating current and forecasted weather and field conditions into operational practices; evaluating whether public safety power shutoffs are currently a reasonable mitigation approach; and evaluating the performance and effectiveness of the strategies identified in the WMP through metrics and monitoring. In January 2021, Idaho Power filed an application with the IPUC requesting authorization to defer, for future amortization, the Idaho jurisdictional share of actual incremental O&M expenses and depreciation expense of certain capital investments necessary to implement the WMP, including incremental insurance costs, among other things. The IPUC filing is described in more detail in Note 3 - "Regulatory Matters" to the consolidated financial statements in the 2020 Annual Report.

RESULTS OF OPERATIONS

This section of MD&A takes a closer look at the significant factors that affected IDACORP’s and Idaho Power’s earnings during the three months ended March 31, ~~2020.~~2021. In this analysis, the results for the three months ended March 31, ~~2020,~~2021, are compared with the same period in ~~2019.~~2020.

The table below presents Idaho Power’s energy sales and supply (in thousands of MWh) for the three months ended March 31, ~~2020~~2021 and ~~2019.~~2020.


	Three months ended March 31,
	2021	2020
Retail energy sales	3,369	3,319
Wholesale energy sales	121	183
Bundled energy sales	211	162
Total energy sales	3,701	3,664
Hydropower generation	1,426	1,606
Coal generation	537	462
Natural gas and other generation	641	638
Total system generation	2,604	2,706
Purchased power	1,397	1,222
Line losses	(300)	(264)
Total energy supply	3,701	3,664

Three months ended
March 31,
2020 2019
Retail energy sales 3,319
3,371
Wholesale energy sales 183
860
Bundled energy sales 162
146
Total energy sales 3,664
4,377
Hydropower generation 1,606
2,100
Coal generation 462
1,132
Natural gas and other generation 638
427
Total system generation 2,706
3,659
Purchased power 1,222
1,061
Line losses (264 ) (343 )
Total energy supply 3,664
4,377

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Weather-related information for Boise, Idaho, for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, is presented in the table below. While Boise, Idaho, weather conditions are not necessarily representative of weather conditions throughout Idaho Power's service area, the greater Boise area has the majority of Idaho Power's customers and is included for illustrative purposes.


	Three months ended March 31,				Three months ended March 31,
	2020	2019	Normal ⁽²⁾		2021	2020	Normal (2)
Heating degree-days⁽¹⁾	2,238	2,437	2,480	Heating degree-days(1)	2,327	2,238	2,480
Cooling degree-days⁽¹⁾	—	—	—	Cooling degree-days(1)	—	—	—
Precipitation (inches)	5.3	6.1	3.6	Precipitation (inches)	5.0	5.3	3.6

(1) Heating and cooling degree-days are common measures used in the utility industry to analyze the demand for electricity and indicate when a customer would use electricity for heating and cooling. A degree-day measures how much the average daily temperature varies from 65 degrees. Each degree of temperature above 65 degrees is counted as one cooling degree-day, and each degree of temperature below 65 degrees is counted as one heating degree-day.

(2) Normal heating degree-days and cooling degree-days elements are, by convention, the arithmetic mean of the elements computed over 30 consecutive years. The normal amounts are the sum of the monthly normal amounts. These normal amounts are computed by the National Oceanic and Atmospheric Administration.

Sales Volume and Generation: Retail sales volumes ~~decreased~~increased 2 percent in the first quarter of ~~2020,~~2021 compared with the same period in ~~2019. The sales decrease was~~2020, primarily due to ~~more moderate weather~~a 2.9 percent growth in the first three months of 2020 compared with the first three months of 2019, which decreased the use of electricity for heating purposes. Heating degree-days were 8 percent lower in the first three months of 2020 compared with the first three months of 2019 and 10 percent below normal. Residential usage per customer was 4.8 percent lower and usage per commercial customer was 2.8 percent lower than the same period of 2019. Some Idaho Power commercial customers were negatively impacted by the COVID-19 public health crisis which, combined with the more moderate weather, caused commercial customers to use 5 percent less energy per customer in March 2020 compared with March 2019. Customer growth partially offset the decrease in sales volumes per customer during the three months ended March 31, 2020, compared with the same period in 2019, with the number of Idaho Power's customers ~~growing by 2.6 percent~~ over the prior twelve months.

Total system generation decreased 264 percent ~~for~~in the first quarter of 2021 compared with the first quarter of 2020, ~~compared with the same period in 2019. During the first quarter of 2020, natural gas~~due primarily to lower hydropower generation, offset partially by increased 49 percent compared to the first quarter of 2019, due mostly to Idaho Power's economic-based decisions to use the Danskin and Bennett Mountain gas-fired power plants as baseload resources and to increase generation at the Langley Gulch plant. Purchased power during the first quarter of 2020 increased 15 percent compared to the first quarter of 2019, due to the lower regional wholesale energy prices.coal-fired generation. Hydropower ~~and coal~~ generation during the first quarter of ~~2020~~2021 decreased 2411 percent ~~and 59 percent, respectively,~~ compared towith the first quarter of ~~2019,~~2020, due ~~primarily~~mostly to ~~decreased wholesale energy sales.~~less precipitation in the Snake River basin. For 2021, Idaho Power expects generation from its hydropower resources to be in the range of 5.5 to 7.5 million MWh, compared with average total annual generation of approximately 7.7 million MWh over the last 30 years. During the first quarter of ~~2019, regional wholesale energy prices were elevated due to below-normal temperatures in~~2021, the ~~Northwest, lack of energy imports due to equipment maintenance, limited production from the federal hydroelectric system due to freezing temperatures~~lower hydropower generation and ~~low water flow,~~economic-, operational-, and ~~reduced capacity of Pacific Northwest and Western Canada region natural gas pipelines due~~reliability-based decisions led to a ~~natural gas pipeline that ruptured~~16 percent increase in ~~British Columbia, Canada, during the fourth quarter of 2018. The higher regional wholesale energy prices during~~coal-fired generation compared with the first quarter of ~~2019 led~~2020.

Purchased power volumes increased 14 percent in the first quarter of 2021 compared with the first quarter of 2020, mostly due to ~~higher Idaho Power opportunistic wholesale~~an increase in purchases from the energy ~~sales.~~

imbalance market implemented in the western United States (Western EIM) and additional purchases to meet load requirements. The financial impacts of fluctuations in wholesale energy sales, purchased power, fuel expense, and other power supply-related expenses are addressed in Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described ~~later~~below in ~~this MD&A.~~"Power Cost Adjustment Mechanisms."

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Operating Revenues

Retail Revenues: The table below presents Idaho Power’s retail revenues (in thousands) and MWh sales volumes (in thousands) for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, and the number of customers as of March 31, ~~2020~~2021 and ~~2019.~~2020.


	Three months ended March 31,							Three months ended March 31,
	2020			2019				2021		2020
Retail revenues:							Retail revenues:
Residential (includes $15,710 and $11,309, respectively, related to the FCA)⁽¹⁾	$	144,887		$	150,219
Commercial(includes $484, and $342, respectively, related to the FCA)⁽¹⁾	69,513			73,106
Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)							Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)	$	154,785	$	144,887
Commercial (includes $482 and $484, respectively, related to the FCA)(1)							Commercial (includes $482 and $484, respectively, related to the FCA)(1)	72,269		69,513
Industrial	42,760			45,498			Industrial	45,430		42,760
Irrigation	1,375			999			Irrigation	1,086		1,375

Deferred revenue related to HCC relicensing AFUDC⁽²⁾	(2,119		)	(2,119		)	Deferred revenue related to HCC relicensing AFUDC(2)	(2,119)		(2,119)

Total retail revenues	$	256,416		$	267,703		Total retail revenues	$	271,451	$	256,416
Volume of retail sales (MWh)							Volume of retail sales (MWh)
Residential	1,448			1,490			Residential	1,502		1,448
Commercial	1,005			1,019			Commercial	1,003		1,005
Industrial	852			852			Industrial	852		852
Irrigation	14			10			Irrigation	12		14
Total retail MWh sales	3,319			3,371			Total retail MWh sales	3,369		3,319
Number of retail customers at period end							Number of retail customers at period end
Residential	480,166			467,252			Residential	495,096		480,166
Commercial	73,180			71,911			Commercial	74,701		73,180
Industrial	126			127			Industrial	127		126
Irrigation	21,407			21,202			Irrigation	21,624		21,407
Total customers	574,879			560,492			Total customers	591,548		574,879

~~Clean Water Act Matters~~

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~~Definition of “Waters of the United States” Under the CWA~~: In August 2015, the EPA and U.S. Army Corps of Engineers' (USACE) final rule defining the phrase "waters of the United States" (WOTUS) under the CWA became effective (WOTUS Rule). Idaho Power believes that the 2015 rule potentially expanded federal jurisdiction under the CWA beyond traditional navigable waters, interstate waters, territorial seas, tributaries, and adjacent wetlands, to a number of other waters, including waters with a "significant nexus" to those traditional waters. The WOTUS Rule was widely challenged in both federal district and circuit courts. In January 2020, the EPA and USACE finalized the first of a two-part rule to repeal the WOTUS Rule and set new and more expansive standards for determining which waters are subject to the CWA, which substantially restored the definitions and guidance used prior to the WOTUS Rule. On April 21, 2020, the EPA and USACE published the second part of the final rule to replace the WOTUS Rule with the "Navigable Waters Protection Rule" that provides a final definition of "waters of the United States," which ultimately narrows the scope of waters subject to federal regulation under the CWA. The Navigable Waters Protection Rule becomes effective on June 22, 2020.

Idaho Power believes the repeal rule, the WOTUS Rule, and the Navigable Waters Protection Rule will continue to be challenged in court, but expects that, even if the WOTUS Rule is reinstated in Idaho and should the revised definition take effect in Idaho, while it may cause Idaho Power to incur additional permitting, regulatory requirements, and other costs associated with the rule, the aggregate amount of increased costs is unlikely to have a material adverse effect on Idaho Power's operations or financial condition, in part due to the relatively arid climate of Idaho Power's service area. Similarly, because the CWA, as interpreted even prior to the WOTUS Rule, applies to most of Idaho Power's facilities, including its hydropower plants, Idaho Power does not expect reinstatement would have a material impact on Idaho Power's operations or financial condition.

OTHER MATTERS

Critical Accounting Policies and Estimates

IDACORP's and Idaho Power's discussion and analysis of their financial condition and results of operations are based upon their condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles. The preparation of these financial statements requires IDACORP and Idaho Power to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, IDACORP and Idaho Power evaluate these estimates, including those estimates related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt. These estimates are based on historical experience and on other assumptions and factors that are believed to be reasonable under the circumstances, and are the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. IDACORP and Idaho Power, based on their ongoing reviews, make adjustments when facts and circumstances dictate.

IDACORP’s and Idaho Power’s critical accounting policies are reviewed by the audit committees of the boards of directors. These policies have not changed materially from the discussion of those policies included under "Critical Accounting Policies and Estimates" in the ~~2019~~2020 Annual Report.

~~Table of Contents~~

Recently Issued Accounting Pronouncements

~~For~~There have been no recently issued accounting pronouncements that have had or are expected to have a ~~listing of new and recently adopted accounting standards, see Note 1 - "Summary of Significant Accounting Policies" to the notes to the condensed consolidated~~material impact on IDACORP's or Idaho Power's financial ~~statements included in this report.~~statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

IDACORP is exposed to market risks, including changes in interest rates, changes in commodity prices, credit risk, and equity price risk. The following discussion summarizes material changes in these risks since December 31, ~~2019,~~2020, and the financial instruments, derivative instruments, and derivative commodity instruments sensitive to changes in interest rates, commodity prices, and equity prices that were held at March 31, ~~2020.~~2021. IDACORP has not entered into any of these market-risk-sensitive instruments for trading purposes.

Interest Rate Risk

IDACORP manages interest expense and short- and long-term liquidity through a combination of fixed rate and variable rate debt. Generally, the amount of each type of debt is managed through market issuance, but interest rate swap and cap agreements with highly-rated financial institutions may be used to achieve the desired combination.

Variable Rate Debt: As of March 31, ~~2020,~~2021, IDACORP had no net ~~floating~~variable rate debt, as the carrying value of short-term investments exceeded the carrying value of outstanding ~~variable-rate~~variable rate debt.

Fixed Rate Debt: As of March 31, ~~2020,~~2021, IDACORP had ~~$1.8~~$2.0 billion in fixed rate debt, with a fair market value of approximately ~~$2.1~~$2.2 billion. These instruments are fixed rate and, therefore, do not expose the companies to a loss in earnings due to changes in market interest rates. However, the fair value of these instruments would increase by approximately ~~$269~~$221 million if market interest rates were to decline by one percentage point from their March 31, ~~2020,~~2021 levels.

Commodity Price Risk

IDACORP's exposure to changes in commodity prices is related to Idaho Power's ongoing utility operations that produce electricity to meet the demand of its retail electric customers. These changes in commodity prices are mitigated in large part by Idaho Power's Idaho and Oregon power cost adjustment mechanisms. To supplement its generation resources and balance its supply of power with the demand of its retail customers, Idaho Power participates in the wholesale marketplace. IDACORP's commodity price risk as of March 31, ~~2020,~~2021, had not changed materially from that reported in Item 7A of IDACORP's Annual Report on Form 10-K for the year ended December 31, ~~2019 (2019~~2020 (2020 Annual Report). Information regarding Idaho Power’s use of derivative instruments to manage commodity price risk can be found in Note 1110 - "Derivative Financial Instruments" to the condensed consolidated financial statements included in this report.

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Credit Risk

IDACORP is subject to credit risk based on Idaho Power's activity with market counterparties. Idaho Power is exposed to this risk to the extent that a counterparty may fail to fulfill a contractual obligation to provide energy, purchase energy, or complete financial settlement for market activities. Idaho Power mitigates this exposure by actively establishing credit limits; measuring, monitoring, and reporting credit risk; using appropriate contractual arrangements; and transferring credit risk through the use of financial guarantees, cash, or letters of credit. Idaho Power maintains a current list of acceptable counterparties and credit limits.

The use of performance assurance collateral in the form of cash, letters of credit, or guarantees is common industry practice. Idaho Power maintains margin agreements relating to its wholesale commodity contracts that allow performance assurance collateral to be requested of and/or posted with certain counterparties. As of March 31, ~~2020,~~2021, Idaho Power had posted ~~$3.6~~$0.8 million performance assurance collateral related to these contracts. Should Idaho Power experience a reduction in its credit rating on Idaho Power's unsecured debt to below investment grade Idaho Power could be subject to requests by its wholesale counterparties to post additional performance assurance collateral. Counterparties to derivative instruments and other forward contracts could request immediate payment or demand immediate ongoing full daily collateralization on derivative instruments and contracts in net liability positions. Based upon Idaho Power's energy and fuel portfolio and market conditions as of March 31, ~~2020,~~2021, the amount of collateral that could be requested upon a downgrade to below investment grade was approximately ~~$4.7~~$8.2 million. To minimize capital requirements, Idaho Power actively monitors the portfolio exposure and the potential exposure to additional requests for performance assurance collateral calls through sensitivity analysis.

~~Table of Contents~~

IDACORP's credit risk related to uncollectible accounts, net of amounts reserved, as of March 31, ~~2020,~~2021, had not changed materially from that reported in Item 7A of the ~~2019~~2020 Annual Report, except as disclosed in Note 14 - ~~"Summary of Significant Accounting Policies"~~"Revenues" to the condensed consolidated financial statements included in this report. Additional information regarding Idaho Power’s management of credit risk and credit contingent features can be found in Note 1110 - "Derivative Financial Instruments" to the condensed consolidated financial statements included in this report.

Equity Price Risk

IDACORP is exposed to price fluctuations in equity markets, primarily through Idaho Power's defined benefit pension plan assets, a mine reclamation trust fund owned by an equity-method investment of Idaho Power, and other equity security investments at Idaho Power. The equity securities held by the pension plan and in such accounts are diversified to achieve broad market participation and reduce the impact of any single investment, sector, or geographic region. Idaho Power has established asset allocation targets for the pension plan holdings, which are described in Note 10 - "Benefit Plans" to the consolidated financial statements included in the ~~2019~~2020 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

IDACORP: The Chief Executive Officer and the Chief Financial Officer of IDACORP, based on their evaluation of IDACORP’s disclosure controls and procedures (pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (Exchange Act)) as of March 31, ~~2020,~~2021, have concluded that IDACORP’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) are effective as of that date.

Idaho Power: The Chief Executive Officer and the Chief Financial Officer of Idaho Power, based on their evaluation of Idaho Power’s disclosure controls and procedures (pursuant to Rule 13a-15(b) of the Exchange Act) as of March 31, ~~2020,~~2021, have concluded that Idaho Power’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) are effective as of that date.

Changes in Internal Control over Financial Reporting

There have been no changes in IDACORP's or Idaho Power's internal control over financial reporting during the quarter ended March 31, ~~2020,~~2021, that have materially affected, or are reasonably likely to materially affect, IDACORP's or Idaho Power's internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS

The factors discussed in Part I - Item 1A - "Risk Factors" in IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, could materially affect IDACORP’s and Idaho Power's business, financial condition, or future results. In addition to those risk factors ~~the risk factor set forth below,~~ and other risks discussed in this report, see "Cautionary Note Regarding Forward-Looking Statements" in this report for additional factors that could have a significant impact on IDACORP's or Idaho Power's operations, results of operations, or financial condition and could cause actual results to differ materially from those anticipated in forward-looking statements.

~~The recent COVID-19 coronavirus outbreak could adversely affect IDACORP's and Idaho Power's business functions, financial condition and results of operations.~~ The recent COVID-19 coronavirus outbreak has resulted in widespread impacts on the global economy and on Idaho Power's employees, customers, contractors, and suppliers. There is considerable uncertainty regarding the extent to which the coronavirus will spread and the extent and duration of measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders (including those in effect in Idaho Power's service area in the states of Idaho and Oregon), and business and government shutdowns. Restrictions of this nature may cause Idaho Power or its contractors to miss milestones on construction projects and experience operational delays, delay the delivery of electrical infrastructure and other supplies that it sources from around the globe, delay the connection of electric service to new customers, prolong the time period necessary to perform maintenance of our infrastructure, and significantly reduce the use of electricity by commercial and industrial customers.

Further, while Idaho Power has modified certain business and workforce practices (including employee travel, employee work locations, and cancellation of physical participation in meetings, events, and conferences) to conform to government restrictions and best practices encouraged by government and regulatory authorities, Idaho Power has a limited number of highly skilled operators for some of its critical power plants and its grid operations centers. If a large proportion of Idaho Power's employees in those critical facilities were to contract COVID-19 at the same time, it would rely upon its business continuity plans in an effort to continue operations at those facilities, but there is no certainty that such measures will be sufficient to mitigate the adverse impact to its operations.

Additionally, the effects of COVID-19 on the U.S. capital markets may significantly impact Idaho Power. For example, the costs related to the noncontributory defined benefit pension plan we provide to Idaho Power employees, as well as a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers eligible retirees, are based in part on the value of the plans’ assets and, therefore, adverse investment performance for these assets or the failure to maintain sustained growth in pension investments over time could increase its plan costs and funding requirements related to the plans. Similarly, Idaho Power relies on access to the capital markets to fund its capital requirements. To the extent that access to the capital markets is adversely affected by COVID-19, Idaho Power may need to consider alternative sources of funding for its operations and for working capital, which may increase its cost of, as well as adversely impact its access to, capital. These uncertain economic conditions may also result in the inability of Idaho Power's customers to pay for electric service, which could affect the collectability of its revenues and adversely affect its financial results.

The degree to which COVID-19 may impact IDACORP's and Idaho Power's liquidity, financial condition and results of operations is unknown at this time and will depend on future developments, including the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities, and to what extent normal economic and operating conditions can resume.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Restrictions on Dividends

See Note 65 - "Common Stock" to the condensed consolidated financial statements included in this report for a description of restrictions on IDACORP's and Idaho Power's payment of dividends.

~~Table of Contents~~

Issuer Purchases of Equity Securities

IDACORP did not repurchase any shares of its common stock during the quarter ended March 31, ~~2020.~~2021.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 of this report, which is incorporated herein by reference.

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

The following exhibits are filed or furnished, as applicable, with the Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2020:~~2021:

Incorporated by Reference

Exhibit No.

Exhibit Description

Form

File No.

Exhibit No.

Date

Included Herewith

15.1

~~Incorporated by Reference~~

~~Exhibit No.~~

~~Exhibit Description~~

~~Form~~

~~File No.~~

~~Exhibit No.~~

~~Date~~

~~Included Herewith~~

~~10.1~~⁽¹⁾

~~IDACORP, Inc. and/or Idaho Power Company Executive Officers with Amended and Restated Change in Control Agreements chart, as of April 30, 2020~~

~~15.1~~

Letter Re: Unaudited Interim Financial Information

15.2

Letter Re: Unaudited Interim Financial Information

31.1

Certification of IDACORP, Inc. Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of IDACORP, Inc. Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.3

Certification of Idaho Power Company Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.4

Certification of Idaho Power Company Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of IDACORP, Inc. Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of IDACORP, Inc. Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.3

Certification of Idaho Power Company Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.4

Certification of Idaho Power Company Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

95.1

Mine Safety Disclosures

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

104

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)

⁽¹⁾Management contract or compensatory plan or arrangement.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.



		IDACORP, INC.
		(Registrant)



Date:	April ~~30, 2020~~29, 2021	By:	/s/ ~~Darrel T. Anderson~~Lisa A. Grow
			~~Darrel T. Anderson~~Lisa A. Grow
			President and Chief Executive Officer

Date:	April ~~30, 2020~~29, 2021	By:	/s/ Steven R. Keen
			Steven R. Keen
			Senior Vice President and Chief Financial Officer






		IDAHO POWER COMPANY
		(Registrant)



Date:	April ~~30, 2020~~29, 2021	By:	/s/ ~~Darrel T. Anderson~~Lisa A. Grow
			~~Darrel T. Anderson~~Lisa A. Grow
			President and Chief Executive Officer

Date:	April ~~30, 2020~~29, 2021	By:	/s/ Steven R. Keen
			Steven R. Keen
			Senior Vice President and Chief Financial Officer


	Three months ended March 31,
	2021		2020
Electric utility operating revenues:
Revenue from contracts with customers	$	291,327	$	270,184
Alternative revenue programs and other revenues	24,241		20,304
Total electric utility operating revenues	$	315,568	$	290,488



	Three months ended March 31,
	2020		2019
Electric utility operating revenues:
Revenue from contracts with customers	$	270,184	$	335,402
Alternative revenue programs and other revenues	20,304		14,369
Total electric utility operating revenues	$	290,488	$	349,771


	Three months ended March 31,
	2021		2020
Alternative revenue programs and other revenues:
FCA mechanism revenues	$	16,304	16,194
Derivative revenues	7,937		4,110
Total alternative revenue programs and other revenues	$	24,241	$	20,304



	Three months ended March 31,
	2020		2019
Alternative revenue programs and other revenues:
FCA mechanism revenues	$	16,194	$	11,651
Derivative revenues	4,110		2,718
Total alternative revenue programs and other revenues	$	20,304	$	14,369


	Pension Plan						SMSP					Postretirement Benefits						Total							Pension Plan				SMSP				Postretirement Benefits				Total
	2020			2019			2020		2019			2020			2019			2020			2019				2021		2020		2021		2020		2021		2020		2021		2020
Service cost	$	10,915		$	8,714		$	53	$	(45	)	$	274		$	231		$	11,242		$	8,900		Service cost	$	13,408	$	10,915	$	203	$	53	$	353	$	274	$	13,964	$	11,242
Interest cost	10,018			10,596			1,088		1,143			614			732			11,720			12,471			Interest cost	9,203		10,018		889		1,088		528		614		10,620		11,720
Expected return on plan assets	(14,030		)	(12,124		)	—		—			(605		)	(553		)	(14,635		)	(12,677		)	Expected return on plan assets	(16,021)		(14,030)		0		0		(601)		(605)		(16,622)		(14,635)
Amortization of prior service cost	2			1			72		24			12			12			86			37			Amortization of prior service cost	2		2		74		72		12		12		88		86
Amortization of net loss	4,367			3,480			934		633			—			—			5,301			4,113			Amortization of net loss	5,673		4,367		1,051		934		0		0		6,724		5,301
Net periodic benefit cost	11,272			10,667			2,147		1,755			295			422			13,714			12,844			Net periodic benefit cost	12,265		11,272		2,217		2,147		292		295		14,774		13,714
Regulatory deferral of net periodic benefit cost⁽¹⁾	(10,742		)	(10,167		)	—		—			—			—			(10,742		)	(10,167		)	Regulatory deferral of net periodic benefit cost(1)	(11,695)		(10,742)		—		—		—		—		(11,695)		(10,742)
Previously deferred pension costs recognized⁽¹⁾	4,288			4,288			—		—			—			—			4,288			4,288			Previously deferred pension costs recognized(1)	4,288		4,288		—		—		—		—		4,288		4,288
Net periodic benefit cost recognized for financial reporting⁽¹⁾⁽²⁾	$	4,818		$	4,788		$	2,147	$	1,755		$	295		$	422		$	7,260		$	6,965		Net periodic benefit cost recognized for financial reporting(1)(2)	$	4,858	$	4,818	$	2,217	$	2,147	$	292	$	295	$	7,367	$	7,260



	March 31, 2020			December 31, 2019
	(in thousands)
Assets

Current Assets:
Cash and cash equivalents	$	138,871		$	217,254
Receivables:
Customer (net of allowance of $2,168 and $1,401, respectively)	67,895			72,675
Other (net of allowance of $268 and $343, respectively)	14,062			18,789
Income taxes receivable	—			3,106
Accrued unbilled revenues	53,973			64,545
Materials and supplies (at average cost)	60,020			56,660
Fuel stock (at average cost)	59,188			57,448
Prepayments	22,093			17,638
Current regulatory assets	56,826			56,626
Other	14			405
Total current assets	472,942			565,146
Investments	117,286			98,218
Property, Plant and Equipment:
Utility plant in service	6,163,744			6,113,567
Accumulated provision for depreciation	(2,183,261		)	(2,155,783		)
Utility plant in service - net	3,980,483			3,957,784
Construction work in progress	556,498			552,499
Utility plant held for future use	3,697			3,872
Other property, net of accumulated depreciation	17,178			17,299
Property, plant and equipment - net	4,557,856			4,531,454
Other Assets:
Company-owned life insurance	59,972			58,922
Regulatory assets	1,341,052			1,326,433
Other	60,842			61,028
Total other assets	1,461,866			1,446,383
Total	$	6,609,950		$	6,641,201



		Gain/(Loss) on Derivatives Recognized in Income⁽¹⁾
	Location of Realized Gain/(Loss) on Derivatives Recognized in Income	Three months ended March 31,
		2020			2019
Financial swaps	Operating revenues	$	826		$	(3,203	)
Financial swaps	Purchased power	(190		)	743
Financial swaps	Fuel expense	(2,848		)	12,395
Forward contracts	Operating revenues	79			64
Forward contracts	Purchased power	(76		)	(64		)
Forward contracts	Fuel expense	(19		)	416



		Asset Derivatives							Liability Derivatives
	Balance Sheet Location	Gross Fair Value		Amounts Offset			Net Assets		Gross Fair Value		Amounts Offset				Net Liabilities
	Balance Sheet Location	Gross Fair Value		Amounts Offset			Net Assets		Gross Fair Value		Amounts Offset				Net Liabilities
March 31, 2020
Current:
Financial swaps	Other current assets	$	14	$	—		$	14	$	—	$	—			$	—
Financial swaps	Other current liabilities	891		(891		)	—		4,812		(2,868		)	⁽¹⁾	1,944
Forward contracts	Other current liabilities	—		—			—		1		—				1
Long-term:
Financial swaps	Other assets	407		—			407		—		—				—
Total		$	1,312	$	(891	)	$	421	$	4,813	$	(2,868	)		$	1,945

December 31, 2019
Current:
Financial swaps	Other current assets	$	2,426	$	(2,034	)	$	392	$	2,034	$	(2,034	)		$	—
Financial swaps	Other current liabilities	134		(134		)	—		924		(134		)		790
Forward contracts	Other current assets	13		—			13		—		—				—
Forward contracts	Other current liabilities	—		—			—		32		—				32
Long-term:
Financial swaps	Other assets	3		(3		)	—		27		(3		)		24
Total		$	2,576	$	(2,171	)	$	405	$	3,017	$	(2,171	)		$	846


		March 31,
Commodity	Units	2021	2020
Electricity purchases	MWh	155	136
Electricity sales	MWh	0	125
Natural gas purchases	MMBtu	10,106	12,220
Natural gas sales	MMBtu	78	375



	March 31, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds
IDACORP⁽¹⁾	$	52,745	$	—	$	—	$	52,745	$	64,173	$	—	$	—	$	64,173
Idaho Power	13,275		—		—		13,275		26,510		—		—		26,510
Derivatives	421		—		—		421		392		13		—		405
Equity securities	44,843		—		—		44,843		42,738		—		—		42,738
Liabilities:
Derivatives	1,944		1		—		1,945		814		32		—		846


	March 31, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds
IDACORP(1)	$	43,026	$	0	$	0	$	43,026	$	56,048	$	0	$	0	$	56,048
Idaho Power	20,262		0		0		20,262		40,038		0		0		40,038
Derivatives	2,829		0		0		2,829		1,995		0		0		1,995
Equity securities	49,077		0		0		49,077		50,733		0		0		50,733
Liabilities:
Derivatives	44		50		0		94		134		10		0		144



	March 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
IDACORP
Assets:
Notes receivable⁽¹⁾	$	3,804	$	3,804	$	3,804	$	3,804
Liabilities:
Long-term debt⁽¹⁾	1,837,010		2,153,743		1,836,659		2,083,931
Idaho Power
Liabilities:
Long-term debt⁽¹⁾	1,837,010		2,153,743		1,836,659		2,083,931


	Utility Operations		All Other		Eliminations		Consolidated Total
Three months ended March 31, 2021:
Revenues	$	315,568	486		$	0	$	316,054
Net income attributable to IDACORP, Inc.	44,369		462		0		44,831
Total assets as of March 31, 2021	6,893,076		244,710		(59,485)		7,078,301
Three months ended March 31, 2020:
Revenues	$	290,488	$	520	$	0	$	291,008
Net income attributable to IDACORP, Inc.	36,776		714		0		37,490


	Defined Benefit Pension Items
	Three months ended March 31,
	2021		2020
Balance at beginning of period	$	(43,358)	$	(36,284)
Amounts reclassified out of AOCI	836		747
Balance at end of period	$	(42,522)	$	(35,537)


	Amount Reclassified from AOCI							Amount Reclassified from AOCI
Details About AOCI	Three months ended March 31,						Details About AOCI	Three months ended March 31,
	2020			2019				2021		2020
Amortization of defined benefit pension items⁽¹⁾							Amortization of defined benefit pension items(1)
Prior service cost	$	72		$	24		Prior service cost	$	74	$	72
Net loss	934			633			Net loss	1,051		934
Total before tax	1,006			657			Total before tax	1,125		1,006
Tax benefit⁽²⁾	(259		)	(169		)	Tax benefit(2)	(289)		(259)

Total reclassification for the period, net of tax	$	747		$	488		Total reclassification for the period, net of tax	$	836	$	747


	Three months ended
Net income attributable to IDACORP, Inc. - March 31, 2020		$	37.5
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms	3.7
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms	(1.3)
Idaho fixed cost adjustment (FCA) revenues	0.1
Retail revenues per megawatt-hour (MWh), net of associated power supply costs and power cost adjustment mechanisms	(0.4)
Transmission wheeling-related revenues	4.1

Other operations and maintenance (O&M) expenses	4.2

Other changes in operating revenues and expenses, net	(0.8)

Increase in Idaho Power operating income	9.6

Non-operating income and expenses	(0.5)

Income tax expense	(1.5)
Total increase in Idaho Power net income		7.6
Other IDACORP changes (net of tax)		(0.3)
Net income attributable to IDACORP, Inc. - March 31, 2021		$	44.8



	Three months ended
Net income attributable to IDACORP, Inc. - March 31, 2019			$	42.7
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms	3.6
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms	(6.1	)
Idaho fixed cost adjustment (FCA) revenues	4.5
Retail revenues per megawatt-hour (MWh), net of associated power supply costs and power cost adjustment mechanisms	(2.1	)
Transmission wheeling-related revenues	(5.4	)
Other operations and maintenance (O&M) expenses	(0.9	)
Other changes in operating revenues and expenses, net	(0.2	)
Decrease in Idaho Power operating income	(6.6	)
Non-operating income and expenses	1.5
Income tax expense	0.3
Total decrease in Idaho Power net income			(4.8		)
Other IDACORP changes (net of tax)			(0.4		)
Net income attributable to IDACORP, Inc. - March 31, 2020			$	37.5



	5-Year Forecasted Annual Growth Rate		20-Year Forecasted Annual Growth Rate
	Retail Sales (Billed MWh)	Annual Peak (Peak Demand)	Retail Sales (Billed MWh)	Annual Peak (Peak Demand)
2019 IRP	1.3%	1.4%	1.0%	1.2%
2017 IRP	1.1%	1.6%	0.9%	1.4%
2015 IRP	1.5%	1.8%	1.2%	1.5%


•	~~Customers: Customer growth of 2.6 percent during the twelve months ended March 31, 2020, increased retail revenues by $5.1 million in the first quarter of 2020 compared with the same period of 2019.~~


◦	~~timing of collections of accounts receivable balances increased operating cash flows by $30 million for IDACORP and $29 million for Idaho Power; and~~


◦	the changes in other current assets decreased operating cash flows by $8 million for IDACORP and Idaho Power, which was primarily due to fluctuations in accrued unbilled revenues and the timing of prepayments.


	2021	2022	2023-2025
Expected capital expenditures (excluding AFUDC)	$320-$330	$340-$350	$1,250-$1,350



	Idaho			Oregon			Total
Deferred (accrued) net power supply costs at December 31, 2019	$	(48.2	)	$	(0.3	)	$	(48.5	)
Current period net power supply costs (deferred) accrued	(11.0		)	—			(11.0		)
Prior amounts refunded through rates	15.5			—			15.5
SO₂ allowance and renewable energy certificate sales	(2.5		)	(0.1		)	(2.6		)
Interest and other	0.5			—			0.5
Deferred (accrued) net power supply costs at March 31, 2020	$	(45.7	)	$	(0.4	)	$	(46.1	)


Resource Type	On-line megawatts (MW)	Under Contract but not yet On-line (MW)	Total Projects under Contract (MW)
PURPA:
Wind	627	—	627
Solar	316	3	319
Hydropower	149	1	150
Other	44	—	44
Total	1,136	4	1,140
Non-PURPA:
Wind	101	—	101
Geothermal	35	—	35
Solar	—	120	120
Total	136	120	256

Expected capital expenditures (excluding AFUDC)

$1,000-$1,050