Table of Contents

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, ~~2023~~2024

☐

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~~No.

1-14465

IDACORP, Inc.

82-0505802

1-3198

Idaho Power Company

82-0130980


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

State of Incorporation:

Idaho

None

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

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


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~~ ☒ No ☐ ~~Idaho Power Company: Yes~~ ☒ No ☐

IDACORP, Inc.:

Yes

☒

☐

Idaho Power Company:

Yes

☒

☐

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files).

IDACORP, Inc.: ~~Yes~~ ☒ No ☐ ~~Idaho Power Company: Yes~~ ☒ No ☐

Yes

☒

☐

Idaho Power Company:

Yes

☒

☐

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:~~Act.

~~IDACORP, Inc.:~~

Large accelerated filer☒ ~~Accelerated filer~~ ☐ ~~Non-accelerated filer~~ ☐ ~~Smaller reporting company~~ ☐

~~Emerging growth company~~ ☐

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

IDACORP, Inc.:

☒

☐

Idaho Power Company:

☐

☒

☐

If an emerging growth company, indicate by check mark if the ~~registrant has~~registrants have 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.☐

Table of Contents

~~Idaho Power Company:~~

~~Large accelerated filer~~ ☐ ~~Accelerated 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.~~ ☐

IDACORP, Inc.:

☐

Idaho Power Company:

☐

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

IDACORP, Inc.: ~~Yes~~ ☐ No ☒ ~~Idaho Power Company: Yes~~ ☐ No ☒

Yes

☐

☒

Idaho Power Company:

Yes

☐

☒

Number of shares of common stock outstanding as of April ~~28, 2023:~~ 26, 2024:

~~IDACORP, Inc.: 50,607,611~~

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


IDACORP, Inc.:			50,694,665						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.

Table of Contents


TABLE OF CONTENTS
				Page
Commonly Used Terms				4
Cautionary Note Regarding Forward-Looking Statements				5
Available Information				7

Part I. Financial Information

	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Condensed Consolidated Statements of Income	78
			Condensed Consolidated Statements of Comprehensive Income	89
			Condensed Consolidated Balance Sheets	910
			Condensed Consolidated Statements of Cash Flows	1112
			Condensed Consolidated Statements of Equity	1213
		Idaho Power Company:
			Condensed Consolidated Statements of Income	1314
			Condensed Consolidated Statements of Comprehensive Income	1415
			Condensed Consolidated Balance Sheets	1516
			Condensed Consolidated Statements of Cash Flows	1718
		Notes to Condensed Consolidated Financial Statements		1819
		Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP		3334
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			3536
	Item 3. Quantitative and Qualitative Disclosures About Market Risk			5956
	Item 4. Controls and Procedures			6057

Part II. Other Information

	Item 1. Legal Proceedings			6158
	Item 1A. Risk Factors			6158
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			6158
	Item 3. Defaults Upon Senior Securities			6158
	Item 4. Mine Safety Disclosures			6158
	Item 5. Other Information			6158
	Item 6. Exhibits			6259

Signatures				6360

Table of Contents

COMMONLY USED TERMS

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

~~2022~~2023 Annual Report

IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended
December 31, ~~2022~~

~~ADITC~~2023

~~Accumulated Deferred Investment Tax Credits~~

~~AFUDC~~

~~Allowance for Funds Used During Construction~~

~~AOCI~~

~~Accumulated Other Comprehensive Income~~

~~BCC~~

~~Bridger Coal Company, a joint venture of IERCo~~

~~BPA~~

~~Bonneville Power Administration~~

~~CEQ~~

~~Council on Environmental Quality~~

~~CWA~~

~~Clean Water Act~~

~~EIS~~

~~Environmental Impact Statement~~

~~EPA~~

~~U.S. Environmental Protection Agency~~

~~FCA~~

~~Fixed Cost Adjustment~~

~~FERC~~

~~Federal Energy Regulatory Commission~~

~~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 Company, a subsidiary of IDACORP, Inc.~~

IERCo

Idaho Energy Resources Co., a subsidiary of Idaho Power Company

2023 Settlement Stipulation

The settlement stipulation for Idaho Power's 2023 Idaho general rate case

IFS

IDACORP Financial Services, Inc., a subsidiary of IDACORP, Inc.

ADITC

Accumulated Deferred Investment Tax Credits

IPUC

Idaho Public Utilities Commission

AFUDC

Allowance for Funds Used During Construction

IRP

Integrated Resource Plan

AOCI

Accumulated Other Comprehensive Income

Jim Bridger plant

Jim Bridger power plant

B2H

Boardman-to-Hemingway, a planned 300-mile, high-voltage transmission lines project between a substation near Boardman, Oregon, and the Hemingway substation near Boise, Idaho

MD&A

Management’s Discussion and Analysis of Financial Condition and Results of Operations

BCC

Bridger Coal Company, a jointly-owned investment of IERCo

MMBtu

Million British Thermal Units

CPCN

Certificate of Public Convenience and Necessity

Moody's

Moody's Investors Service

CWA

Clean Water Act

Megawatt

EIS

Environmental Impact Statement

MWh

Megawatt-hour

EPA

U.S. Environmental Protection Agency

NAV

Net asset value

ESA

Endangered Species Act

NEPA

National Environmental Policy Act

Exchange Act

U.S. Securities Exchange Act of 1934, as amended

O&M

Operations and Maintenance

~~OATT~~FCA

~~Open Access Transmission Tariff~~Idaho Fixed Cost Adjustment

OPUC

Public Utility Commission of Oregon

FERC

Federal Energy Regulatory Commission

PCA

Idaho-Jurisdiction Power Cost Adjustment

~~PCAOB~~FSAs

~~Public Company Accounting Oversight Board (United States)~~Forward sale agreements

PURPA

Public Utility Regulatory Policies Act of 1978

GAAP

Accounting principles generally accepted in the United States of America

RFP

Request for ~~Proposal~~proposals

GWW

Gateway West, a high-voltage transmission lines project between a substation located near Douglas, Wyoming, and the Hemingway substation located near Boise, Idaho

SEC

U.S. Securities and Exchange Commission

HCC

Hells Canyon Complex, composed of the Brownlee, Oxbow, and Hells Canyon facilities

SIP

State Implementation Plan

IDACORP

IDACORP, Inc., an Idaho corporation

SMSP

Security ~~Plan~~Plans for Senior Management Employees I and II

Idaho Power

Idaho Power Company, an Idaho corporation

USFWS

U.S. Fish and Wildlife Service

~~Valmy plant~~Idaho ROE

~~Idaho Power's jointly-owned coal-fired generating plant in Valmy, Nevada~~Idaho-jurisdiction return on year-end equity

WMP

Wildfire Mitigation Plan

~~WOTUS~~Ida-West

~~Waters~~Ida-West Energy Company, a subsidiary of ~~the United States~~IDACORP, Inc.

~~WRAP~~WPSC

~~Western Resource Adequacy Program~~Wyoming Public Service Commission

IDEQ

Idaho Department of Environmental Quality

Table of Contents


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, regulatory filings, dividends, capital structure or ratios, load forecasts, 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," "could," "estimates," "expects," "intends," "potential," "plans," "predicts," "preliminary," "projects," "targets," "may," "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, ~~that~~and may differ materially from actual results, performance, or outcomes. 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~~the 2023 Annual Report, ~~on Form 10-K for the year ended December 31, 2022,~~ 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),~~SEC, and the following important factors:

•decisions by the Idaho and Oregon public utilities commissions and the ~~Federal Energy Regulatory Commission~~FERC 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;

•~~expense~~expenses and risks associated with capital expenditures for, and the permitting and construction of, utility infrastructure projects that Idaho Power may be unable to complete, are delayed, or that may not be deemed prudent by regulators for ~~full~~ cost recovery or ~~full~~ return on investment;

•expenses and risks associated with supplier and contractor delays and failure to satisfy project quality and performance standards on utility infrastructure projects and the potential impacts of those delays and failures on Idaho Power's ability to serve customers;

•power demand exceeding supply, and the rapid addition of new industrial and commercial customer load and the volatility of such new load demand, resulting in increased risks and costs for purchasing energy and capacity in the market ~~if available,~~ or acquiring or constructing additional generation and transmission resources and battery storage facilities;

•impacts of economic conditions, including an inflationary or recessionary environment and increasing interest rates, on items such as operations and capital investments, supply costs and delivery delays, supply scarcity and shortages, 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 their ability to meet financial and operational commitments, and collection of receivables;

•changes in residential, commercial, and industrial growth and demographic patterns within Idaho Power's service area, and the associated impacts on loads and load growth;

•employee workforce factors, including the operational and financial costs of unionization or the attempt to unionize all or part of the companies’ workforce, the cost and ability to attract and retain skilled workers and third-party contractors and suppliers, the cost of living and the related impact on recruiting employees, and the ability to adjust to fluctuations in labor costs;

•changes in, failure to comply with, and costs of compliance with laws, regulations, policies, orders, and licenses, which may result in penalties and fines, increase compliance and operational costs, and impact recovery associated with increased costs through rates;

•abnormal or severe weather conditions (including conditions and events associated with climate change), wildfires, droughts, earthquakes, and other natural phenomena and natural disasters, which affect customer sales, hydropower generation, 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, energy efficiency, alternative energy sources, and other technologies that may reduce Idaho Power's sale or delivery of electric power or introduce operational vulnerabilities to the power grid;

•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;~~facilities and power supply costs;

Table of Contents

•ability to acquire equipment, materials, fuel, power, ~~electrical equipment,~~ and transmission capacity on reasonable terms and prices, particularly in the event of unanticipated or abnormally high resource demands, price volatility, lack of physical availability, transportation constraints, outages due to maintenance or repairs to generation or transmission facilities, disruptions in the supply chain, or reduced credit quality or lack of counterparty and supplier credit;

•disruptions or outages of Idaho Power's generation or transmission systems or of any interconnected transmission systems, which can result in liability for Idaho Power, ~~increase~~increased power supply costs and repair expenses, and ~~reduce~~reduced revenues;

~~Table of Contents~~

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

•acts or threats of ~~terrorist incidents,~~terrorism, acts of war, social unrest, cyber or physical security attacks, and other malicious acts of individuals or groups seeking to disrupt Idaho Power's operations or the electric power grid or compromise data, or the disruption or damage to the companies’ business, operations, or reputation resulting from such events;

•increased ~~purchased power~~ costs ~~and operational and reliability challenges~~ associated with ~~purchasing and integrating intermittent~~purchases of power mandated by PURPA from renewable energy ~~sources into Idaho Power's resource portfolio;~~sources;

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

•~~employee workforce factors, including the operational~~unaligned goals and ~~financial costs~~positions with co-owners of ~~unionization or the attempt to unionize all or part of the companies’ workforce, the cost~~Idaho Power's generation and ability to attract and retain skilled workers and third-party contractors and suppliers, the cost of living and the related impact on recruiting employees, and the ability to adjust to fluctuations in labor costs;

•changes in, failure to comply with, and costs of compliance with laws, regulations, policies, and orders, including those relating to the environment, climate change, natural resources, and threatened and endangered species, which may result in penalties and fines, increase compliance and operational costs, and impact recovery associated with increased costs through rates;transmission assets;

•changes in tax laws or related regulations or interpretations of applicable laws or regulations by federal, state, or local taxing jurisdictions, and the availability of tax credits;

•inability to timely obtain and the 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 reliability and cyber and physical security requirements, which may result in penalties, reputational harm, and operational changes;~~

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

•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, and the potential losses the companies may incur on those hedges, which can be affected by factors such as the volume of hedging transactions and degree of price volatility;

•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;

•remediation costs associated with planned ~~exits from participation in~~cessation of coal-fired operations at Idaho Power's co-owned coal ~~plants;~~plants and conversion of the plants to natural gas;

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

•changing market dynamics due to the emergence of day ahead or other energy and transmission markets in the western United States.

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~~the companies to predict all such factors, nor can itthey 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.

Table of Contents


AVAILABLE INFORMATION

Investors and others should note that IDACORP and Idaho Power announce material information about their business through a variety of means, including filings with the SEC, press releases, public conference calls, and webcasts. The companies use these channels to achieve broad, non-exclusionary distribution of information to the public and for complying with their disclosure obligations under Regulation FD. Therefore, IDACORP and Idaho Power encourage investors, the media, and others interested in the companies to review the information the companies make available through such channels. IDACORP's website is www.idacorpinc.com and Idaho Power's website is www.idahopower.com. The contents of these websites are not part of this report.

Investors, the media, and others interested in IDACORP and Idaho Power may also wish to refer to the websites of the IPUC and OPUC at puc.idaho.gov and oregon.gov/puc, respectively, to review documents filed by IDACORP and Idaho Power with, and issued by, the respective commissions. No information on the IPUC and OPUC websites is incorporated by reference into this report or into IDACORP's or Idaho Power's other SEC filings.

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.

Condensed Consolidated Statements of Income

(unaudited)

Three months ended
March 31,

2023

2022

(in thousands, except per share amounts)

Three months ended
March 31,

2024

(in thousands, except per share amounts)

Operating Revenues:

Electric utility revenues

429,338

343,921

Electric utility revenues

Other

321

367

Other

Total operating revenues

429,659

344,288

Operating Expenses:

Electric utility:

Purchased power

171,093

85,424

Purchased power

Fuel expense

89,080

45,702

Power cost adjustment

(51,337)

(400)

Power cost adjustment

Other operations and maintenance

92,041

92,086

Energy efficiency programs

5,215

6,589

Energy efficiency programs

Depreciation

45,391

44,457

Other electric utility operating expenses

9,028

8,901

Other electric utility operating expenses

Total electric utility operating expenses

360,511

282,759

Other

1,045

861

Other

Total operating expenses

361,556

283,620

Operating Income

68,103

60,668

Operating Income

Nonoperating (Income) Expense:

Allowance for equity funds used during construction

(9,908)

(9,123)

Allowance for equity funds used during construction

Earnings of unconsolidated equity-method investments

(2,454)

(2,308)

Interest on long-term debt

24,968

21,069

Interest on long-term debt

Other interest

4,755

3,815

Allowance for borrowed funds used during construction

(4,228)

(3,385)

Allowance for borrowed funds used during construction

Other income, net

(8,149)

(1,610)

Other income, net

Total nonoperating expense, net

4,984

8,458

Income Before Income Taxes

63,119

52,210

Income Tax Expense

7,095

6,026

Income Before Income Taxes

Income Tax (Benefit) Expense

Net Income

56,024

46,184

Loss attributable to noncontrolling interests

Net Income

Adjustment for (income) loss attributable to noncontrolling interests

Net Income Attributable to IDACORP, Inc.

56,098

46,260

Weighted Average Common Shares Outstanding - Basic

50,688

50,632

Weighted Average Common Shares Outstanding - Basic

Weighted Average Common Shares Outstanding - Diluted

50,723

50,660

Earnings Per Share of Common Stock:

Earnings Attributable to IDACORP, Inc. - Basic

1.11

0.91

Earnings Attributable to IDACORP, Inc. - Diluted

1.11

0.91

Earnings Attributable to IDACORP, Inc. - Diluted

The accompanying notes are an integral part of these statements.

Table of Contents

IDACORP, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

Three months ended
March 31,

2023

2022

(in thousands)

Net Income

56,024

46,184

Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $51 and $290, respectively

146

837

Unfunded pension liability adjustment, net of tax of $99 and $51, respectively

Total Comprehensive Income

56,170

47,021

Loss attributable to noncontrolling interests

Total Comprehensive Income

(Income) loss attributable to noncontrolling interests

Comprehensive Income Attributable to IDACORP, Inc.

56,244

47,097

Comprehensive Income Attributable to IDACORP, Inc.

The accompanying notes are an integral part of these statements.

Table of Contents

IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

March 31,
2023

December 31,
2022

(in thousands)

March 31,
2024

December 31,
2023

(in thousands)

Assets

Current Assets:

Cash and cash equivalents

357,823

177,577

Receivables:

Customer (net of allowance of $5,062 and $5,034, respectively)

101,081

114,173

Other (net of allowance of $525 and $512, respectively)

72,010

51,179

Receivables:

Customer (net of allowance of $4,628 and $4,869, respectively)

Other (net of allowance of $621 and $716, respectively)

Income taxes receivable

—

13,734

Accrued unbilled revenues

70,690

84,862

Materials and supplies (at average cost)

110,037

92,461

Fuel stock (at average cost)

10,718

14,762

Prepayments

19,022

24,517

Current regulatory assets

248,693

80,049

Other

859

40,339

Total current assets

990,933

693,653

Investments

120,999

121,352

Property, Plant and Equipment:

Utility plant in service

6,876,028

6,828,467

Utility plant in service

Accumulated provision for depreciation

(2,509,399)

(2,465,279)

Utility plant in service - net

4,366,629

4,363,188

Construction work in progress

896,794

785,706

Utility plant held for future use

8,778

7,130

Other property, net of accumulated depreciation

16,824

16,946

Property, plant and equipment - net

5,289,025

5,172,970

Other Assets:

Company-owned life insurance

75,949

73,944

Company-owned life insurance

Regulatory assets

1,336,194

1,421,912

Other

65,792

59,427

Other

Total other assets

1,477,935

1,555,283

Total

7,878,892

7,543,258

The accompanying notes are an integral part of these statements.

910

Table of Contents

IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

March 31,
2023

December 31,
2022

(in thousands)

March 31,
2024

December 31,
2023

(in thousands)

Liabilities and Equity

Current Liabilities:

Current maturities of long-term debt

125,000

—

Accounts payable

201,838

292,719

Taxes accrued

17,799

8,565

Interest accrued

21,540

24,060

Accrued compensation

42,340

59,265

Current regulatory liabilities

6,055

63,957

Advances from customers

87,479

72,222

Other

30,519

27,777

Total current liabilities

532,570

548,565

Other Liabilities:

Deferred income taxes

867,649

873,916

Deferred income taxes

Regulatory liabilities

799,925

796,644

Pension and other postretirement benefits

244,043

238,037

Other

121,297

77,336

Total other liabilities

2,032,914

1,985,933

Long-Term Debt

2,483,051

2,194,145

Commitments and Contingencies

Equity:

IDACORP, Inc. shareholders’ equity:

Common stock, no par value (120,000 shares authorized; 50,608 and 50,562 shares issued, respectively)

882,104

882,189

IDACORP, Inc. shareholders’ equity:

Common stock, no par value (120,000 shares authorized; 50,694 and 50,615 shares issued and outstanding, respectively)

Retained earnings

1,953,727

1,937,972

Accumulated other comprehensive loss

(12,776)

(12,922)

Total IDACORP, Inc. shareholders’ equity

2,823,055

2,807,239

Noncontrolling interests

7,302

7,376

Total equity

2,830,357

2,814,615

Total

7,878,892

7,543,258

The accompanying notes are an integral part of these statements.

1011

Table of Contents

IDACORP, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

Three months ended
March 31,
2023 2022
(in thousands)
Operating Activities:
Net income $ 56,024 $ 46,184
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization 46,409 45,494
Deferred income taxes and investment tax credits (7,854) (2,517)
Changes in regulatory assets and liabilities (56,396) 7,873
Pension and postretirement benefit plan expense 6,885 7,266
Contributions to pension and postretirement benefit plans (1,308) (997)
Earnings of equity-method investments (2,454) (2,308)
Distributions from equity-method investments 400 2,480
Allowance for equity funds used during construction (9,908) (9,123)
Other non-cash adjustments to net income, net 2,492 4,083
Change in:
Accounts receivable and unbilled revenues (10,750) 11,748
Prepayments 4,363 3,278
Materials, supplies, and fuel stock (13,531) (4,762)
Accounts and wages payable (112,468) (44,989)
Taxes accrued/receivable 22,968 16,377
Other assets and liabilities (15,271) 12,912
Net cash (used in) provided by operating activities (90,399) 92,999
Investing Activities:
Additions to property, plant and equipment (118,375) (102,535)
Payments received from transmission project joint funding partners 3,123 1,299
Investments in affordable housing and other real estate tax credits projects 135 (2,628)
Distributions from equity-method investments, return of investment — 2,920
Purchases of equity securities (755) (20,988)
Purchases of held-to-maturity securities (301) (29,692)
Proceeds from the sale of equity securities 2,164 51,288
Other 4,853 2,049
Net cash used in investing activities (109,156) (98,287)
Financing Activities:
Issuance of long-term debt 522,000 50,000
Discount on issuance of long-term debt (3,772) —
Retirement of long-term debt (100,000) —
Dividends on common stock (40,502) (38,371)
Tax withholdings on net settlements of share-based awards (3,255) (2,958)
Other 5,330 (76)
Net cash provided by financing activities 379,801 8,595
Net increase in cash and cash equivalents 180,246 3,307
Cash and cash equivalents at beginning of the period 177,577 215,243
Cash and cash equivalents at end of the period $ 357,823 $ 218,550
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest (net of amount capitalized) $ 27,276 $ 25,306
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable $ 85,858 $ 52,137

~~The accompanying notes are an integral part of these statements.~~

~~Table of Contents~~

~~IDACORP, Inc.~~

~~Condensed Consolidated Statements of Equity~~

~~(unaudited)~~

Three months ended
March 31,
2023 2022
(in thousands)
Common Stock
Balance at beginning of period $ 882,189 $ 874,896
Share-based compensation expense 3,137 3,102
Tax withholdings on net settlements of share-based awards (3,255) (2,958)
Other 33 27
Balance at end of period 882,104 875,067
Retained Earnings
Balance at beginning of period 1,937,972 1,833,580
Net income attributable to IDACORP, Inc. 56,098 46,260
Common stock dividends ($0.79, and $0.75 per share, respectively) (40,343) (38,196)
Balance at end of period 1,953,727 1,841,644
Accumulated Other Comprehensive Loss
Balance at beginning of period (12,922) (40,040)
Unfunded pension liability adjustment (net of tax) 146 837
Balance at end of period (12,776) (39,203)
Total IDACORP, Inc. shareholders’ equity at end of period 2,823,055 2,677,508
Noncontrolling Interests
Balance at beginning of period 7,376 6,798
Net loss attributable to noncontrolling interests (74) (76)
Balance at end of period 7,302 6,722
Total equity at end of period $ 2,830,357 $ 2,684,230


	Three months ended March 31,
	2024		2023
	(in thousands)
Operating Activities:
Net income	$	48,268	$	56,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	55,174		46,409
Deferred income taxes and investment tax credits	(18,776)		(7,854)
Changes in regulatory assets and liabilities	32,930		(56,396)
Pension and postretirement benefit plan expense	11,350		6,885
Contributions to pension and postretirement benefit plans	(1,176)		(1,308)
Earnings of equity-method investments	(625)		(2,454)
Distributions from equity-method investments	6,250		400
Allowance for equity funds used during construction	(11,152)		(9,908)
Other non-cash adjustments to net income, net	2,670		2,492
Change in:
Accounts receivable and unbilled revenues	33,251		(10,750)
Prepayments	1,796		4,363
Materials, supplies, and fuel stock	(19,807)		(13,531)
Accounts and wages payable	(62,201)		(112,468)
Taxes accrued/receivable	19,645		22,968
Other assets and liabilities	12,088		(15,271)
Net cash provided by (used in) operating activities	109,685		(90,399)
Investing Activities:
Additions to property, plant and equipment, net	(259,978)		(118,375)
Payments received from transmission project joint funding partners	20,375		3,123












Other	4,940		6,096
Net cash used in investing activities	(234,663)		(109,156)
Financing Activities:
Issuance of long-term debt	—		522,000
Discount on issuance of long-term debt	—		(3,772)
Retirement of long-term debt	—		(100,000)
Dividends on common stock	(42,742)		(40,502)

Issuance of common stock	1,612		—
Tax withholdings on net settlements of share-based awards	(3,694)		(3,255)

Other	(44)		5,330
Net cash (used in) provided by financing activities	(44,868)		379,801
Net (decrease) increase in cash and cash equivalents	(169,846)		180,246
Cash and cash equivalents at beginning of the period	327,429		177,577
Cash and cash equivalents at end of the period	$	157,583	$	357,823
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:

Interest (net of amount capitalized)	$	37,770	$	27,276
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	$	111,958	$	85,858

The accompanying notes are an integral part of these statements.

Table of Contents

~~Idaho Power Company~~IDACORP, Inc.

Condensed Consolidated Statements of ~~Income~~Equity

(unaudited)

Three months ended
March 31,
2023 2022
(in thousands)
Operating Revenues $ 429,338 $ 343,921
Operating Expenses:
Operation:
Purchased power 171,093 85,424
Fuel expense 89,080 45,702
Power cost adjustment (51,337) (400)
Other operations and maintenance 92,041 92,086
Energy efficiency programs 5,215 6,589
Depreciation 45,391 44,457
Other operating expenses 9,028 8,901
Total operating expenses 360,511 282,759
Operating Income 68,827 61,162
Nonoperating (Income) Expense:
Allowance for equity funds used during construction (9,908) (9,123)
Earnings of unconsolidated equity-method investments (2,472) (2,480)
Interest on long-term debt 24,968 21,069
Other interest 4,674 3,811
Allowance for borrowed funds used during construction (4,228) (3,385)
Other income, net (7,527) (1,641)
Total nonoperating expense, net 5,507 8,251
Income Before Income Taxes 63,320 52,911
Income Tax Expense 7,610 6,697
Net Income $ 55,710 $ 46,214


	Three months ended March 31,
	2024		2023
	(in thousands)
Common Stock
Balance at beginning of period	$	888,615	$	882,189
Issuance	1,612		—
Share-based compensation expense	3,474		3,137
Tax withholdings on net settlements of share-based awards	(3,694)		(3,255)

Other	35		33
Balance at end of period	890,042		882,104
Retained Earnings
Balance at beginning of period	2,036,138		1,937,972
Net income attributable to IDACORP, Inc.	48,173		56,098
Common stock dividends ($0.83, and $0.79 per share, respectively)	(42,308)		(40,343)
Balance at end of period	2,042,003		1,953,727
Accumulated Other Comprehensive Loss
Balance at beginning of period	(17,184)		(12,922)
Unfunded pension liability adjustment (net of tax)	284		146
Balance at end of period	(16,900)		(12,776)





Total IDACORP, Inc. shareholders’ equity at end of period	2,915,145		2,823,055
Noncontrolling Interests
Balance at beginning of period	7,174		7,376
Net income (loss) attributable to noncontrolling interests	95		(74)
Balance at end of period	7,269		7,302
Total equity at end of period	$	2,922,414	$	2,830,357

The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Income

(unaudited)


	Three months ended March 31,
	2024		2023
	(in thousands)

Operating Revenues	$	448,299	$	429,338

Operating Expenses:
Operation:
Purchased power	111,899		171,093
Fuel expense	92,241		89,080
Power cost adjustment	22,363		(51,337)
Other operations and maintenance	105,829		92,041
Energy efficiency programs	4,291		5,215
Depreciation	54,013		45,391
Other operating expenses	8,008		9,028
Total operating expenses	398,644		360,511

Operating Income	49,655		68,827

Nonoperating (Income) Expense:
Allowance for equity funds used during construction	(11,152)		(9,908)
Earnings of unconsolidated equity-method investments	(617)		(2,472)
Interest on long-term debt	33,308		24,968
Other interest	5,384		4,674
Allowance for borrowed funds used during construction	(5,959)		(4,228)
Other income, net	(13,580)		(7,527)
Total nonoperating expense, net	7,384		5,507

Income Before Income Taxes	42,271		63,320

Income Tax (Benefit) Expense	(5,031)		7,610

Net Income	$	47,302	$	55,710

The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

Three months ended
March 31,

2023

2022

(in thousands)

Net Income

55,710

46,214

Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $51, and $290, respectively

146

837

Unfunded pension liability adjustment, net of tax of $99, and $51, respectively

Total Comprehensive Income

55,856

47,051

Total Comprehensive Income

The accompanying notes are an integral part of these statements.

1415

Table of Contents

Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


			March 31, 2023		December 31, 2022
			(in thousands)
		March 31, 2024					March 31, 2024		December 31, 2023
		(in thousands)						(in thousands)
Assets	Assets

Current Assets:	Current Assets:

Current Assets:

Current Assets:
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents		$	329,938	$	108,933
Receivables:	Receivables:
Customer (net of allowance of $5,062 and $5,034, respectively)			101,081		114,173
Other (net of allowance of $525 and $512, respectively)			71,751		50,754
Customer (net of allowance of $4,628 and $4,869, respectively)
Customer (net of allowance of $4,628 and $4,869, respectively)
Customer (net of allowance of $4,628 and $4,869, respectively)
Other (net of allowance of $621 and $716, respectively)
Income taxes receivable	Income taxes receivable		—		13,108
Accrued unbilled revenues	Accrued unbilled revenues		70,690		84,862
Materials and supplies (at average cost)	Materials and supplies (at average cost)		110,037		92,461
Fuel stock (at average cost)	Fuel stock (at average cost)		10,718		14,762
Prepayments	Prepayments		18,881		24,396

Current regulatory assets	Current regulatory assets		248,693		80,049
Current regulatory assets
Current regulatory assets
Other	Other		859		40,339
Total current assets	Total current assets		962,648		623,837
Investments	Investments		80,045		78,791
Property, Plant and Equipment:	Property, Plant and Equipment:
Plant in service
Plant in service
Plant in service	Plant in service		6,876,028		6,828,467
Accumulated provision for depreciation	Accumulated provision for depreciation		(2,509,399)		(2,465,279)
Plant in service - net	Plant in service - net		4,366,629		4,363,188
Construction work in progress	Construction work in progress		896,794		785,706
Plant held for future use	Plant held for future use		8,778		7,130
Other property	Other property		4,558		4,558
Property, plant and equipment, net	Property, plant and equipment, net		5,276,759		5,160,582
Other Assets:	Other Assets:
Company-owned life insurance	Company-owned life insurance		75,949		73,944
Company-owned life insurance
Company-owned life insurance
Regulatory assets	Regulatory assets		1,336,194		1,421,912
Other	Other		58,010		52,038
Total other assets	Total other assets		1,470,153		1,547,894
Total	Total		$	7,789,605	$	7,411,104

The accompanying notes are an integral part of these statements.

1516

Table of Contents

Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)

March 31,
2023

December 31,
2022

(in thousands)

March 31,
2024

December 31,
2023

(in thousands, except par value)

Liabilities and Equity

Current Liabilities:

Current maturities of long-term debt

125,000

—

Accounts payable

201,280

292,616

Accounts payable to affiliates

57,093

56,338

Taxes accrued

20,657

9,101

Interest accrued

21,540

24,060

Accrued compensation

42,131

58,959

Accrued compensation

Current regulatory liabilities

6,055

63,957

Advances from customers

87,479

72,222

Other

28,969

26,199

Total current liabilities

590,204

603,452

Other Liabilities:

Deferred income taxes

864,473

870,692

Regulatory liabilities

799,925

796,644

Pension and other postretirement benefits

244,043

238,037

Other

120,749

76,471

Total other liabilities

2,029,190

1,981,844

Long-Term Debt

2,483,051

2,194,145

Commitments and Contingencies

Equity:

Common stock, 2.50 par value (50,000 shares authorized; 39,151 shares outstanding)

97,877

Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares issued and outstanding)

Premium on capital stock

712,258

Capital stock expense

(2,097)

Retained earnings

1,891,898

1,836,547

Accumulated other comprehensive loss

(12,776)

(12,922)

Total equity

2,687,160

2,631,663

Total

7,789,605

7,411,104

The accompanying notes are an integral part of these statements.

1617

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Cash Flows

(unaudited)


			Three months ended March 31,
		Three months ended March 31,								Three months ended March 31,
			2023		2022			2024	2023
			(in thousands)					(in thousands)
Operating Activities:	Operating Activities:						Operating Activities:
Net income	Net income		$	55,710	$	46,214
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities:							Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	Depreciation and amortization		46,262		45,344
Deferred income taxes and investment tax credits	Deferred income taxes and investment tax credits		(9,395)		(3,791)
Changes in regulatory assets and liabilities	Changes in regulatory assets and liabilities		(56,396)		7,873
Pension and postretirement benefit plan expense	Pension and postretirement benefit plan expense		6,885		7,266
Contributions to pension and postretirement benefit plans	Contributions to pension and postretirement benefit plans		(1,308)		(997)
Earnings of equity-method investments	Earnings of equity-method investments		(2,472)		(2,480)
Distributions from equity-method investments	Distributions from equity-method investments		400		2,480
Allowance for equity funds used during construction	Allowance for equity funds used during construction		(9,908)		(9,123)
Other non-cash adjustments to net income, net	Other non-cash adjustments to net income, net		(644)		908
Change in:	Change in:						Change in:
Accounts receivable and unbilled revenues	Accounts receivable and unbilled revenues		(10,196)		11,855
Prepayments	Prepayments		4,383		3,300
Materials, supplies, and fuel stock	Materials, supplies, and fuel stock		(13,531)		(4,762)
Accounts and wages payable	Accounts and wages payable		(112,502)		(44,982)
Taxes accrued/receivable	Taxes accrued/receivable		24,664		18,322
Other assets and liabilities	Other assets and liabilities		(15,124)		12,932
Net cash (used in) provided by operating activities			(93,172)		90,359
Net cash provided by (used in) operating activities
Investing Activities:	Investing Activities:						Investing Activities:
Additions to utility plant			(118,375)		(102,394)
Additions to utility plant, net

Payments received from transmission project joint funding partners	Payments received from transmission project joint funding partners		3,123		1,299
Payments received from transmission project joint funding partners
Payments received from transmission project joint funding partners

Distributions from equity-method investments, return of investment			—		2,920

Purchases of equity securities			(755)		(20,413)
Purchases of held-to-maturity securities			(301)		(29,692)
Proceeds from the sale of equity securities			2,164		51,288

Other

Other

Other	Other		5,280		2,049
Net cash used in investing activities	Net cash used in investing activities		(108,864)		(94,943)
Financing Activities:	Financing Activities:						Financing Activities:
Issuance of long-term debt	Issuance of long-term debt		522,000		50,000
Discount on issuance of long-term debt	Discount on issuance of long-term debt		(3,772)		—
Retirement of long-term debt	Retirement of long-term debt		(100,000)		—
Dividends on common stock	Dividends on common stock		(552)		(38,198)

Other	Other		5,365		(74)
Net cash provided by financing activities			423,041		11,728
Net increase in cash and cash equivalents			221,005		7,144

Other

Other
Net cash (used in) provided by financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period	Cash and cash equivalents at beginning of the period		108,933		60,075
Cash and cash equivalents at end of the period	Cash and cash equivalents at end of the period		$	329,938	$	67,219
Supplemental Disclosure of Cash Flow Information:	Supplemental Disclosure of Cash Flow Information:						Supplemental Disclosure of Cash Flow Information:

Cash paid for interest (net of amount capitalized)	Cash paid for interest (net of amount capitalized)		$	27,195	$	25,301
Cash paid for interest (net of amount capitalized)
Cash paid for interest (net of amount capitalized)
Non-cash investing activities:	Non-cash investing activities:
Additions to property, plant and equipment in accounts payable			$	85,858	$	52,137
Additions to utility plant in accounts payable
Additions to utility plant in accounts payable
Additions to utility plant in accounts payable

The accompanying notes are an integral part of these statements.

1718

Table of Contents

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).~~Power. Therefore, these Notes to the 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),~~IERCo, a ~~joint venturer in Bridger Coal Company (BCC),~~joint-owner of BCC, which mines and supplies coal to the Jim Bridger ~~power~~ plant ~~(Jim Bridger plant)~~ owned in part by Idaho Power.

IDACORP’s other notable wholly-owned subsidiaries include ~~IDACORP Financial Services, Inc. (IFS),~~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~~entity 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 condensed consolidated balance sheets as of March 31, ~~2023,~~2024, condensed consolidated statements of income for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, and condensed consolidated cash flows for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023. 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~~the 2023 Annual ~~Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report).~~Report. The statements of income 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 balance sheets and statements of income during the period in which such change occurred.

Management Estimates

Management makes estimates and assumptions when preparing financial statements in conformity with ~~accounting principles generally accepted in the United States of America (GAAP).~~GAAP. These estimates and assumptions include, among others, 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

~~Table of Contents~~

liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates involve judgments with respect to, among other things,

Table of Contents

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

Recently Adopted Accounting Pronouncements

There have been no recently ~~issued~~adopted accounting pronouncements that have had a material impact on IDACORP's or Idaho Power's condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU will be applied retrospectively. IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on the notes to their respective financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU are required to be applied prospectively and are allowed to be applied retrospectively. IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on the notes to their respective financial statements.

There have been no other recent accounting pronouncements not yet adopted that are expected to have a material impact on IDACORP's or Idaho Power's condensed 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 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.

Table of Contents

Income Tax Expense

The following table provides a summary of income tax expense for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands):


		IDACORP						Idaho Power							IDACORP				Idaho Power
		2023			2022			2023			2022				2024		2023			2024		2023
Income tax at statutory rates (federal and state)	Income tax at statutory rates (federal and state)	$	16,266		$	13,458		$	16,299		$	13,619
Additional accumulated deferred investment tax credits (ADITC) amortization		(3,750)			—			(3,750)			—

Excess deferred income tax reversal
Excess deferred income tax reversal
Excess deferred income tax reversal	Excess deferred income tax reversal	(2,671)			(2,503)			(2,671)			(2,503)

Other(1)	Other(1)	(2,750)			(4,929)			(2,268)			(4,419)
Income tax expense		$	7,095		$	6,026		$	7,610		$	6,697

Other(1)

Other(1)
Income tax expense before additional ADITC amortization
Additional ADITC amortization
Income tax (benefit) expense
Effective tax rate	Effective tax rate	11.2		%	11.5		%	12.0		%	12.7		%	Effective tax rate	(13.0)	%	11.2	%		(11.9)	%	12.0	%

(1) "Other" is primarily ~~comprised~~consists of the net tax effect of Idaho Power's regulatory flow-through tax adjustments.

The increase in income tax expense for the three months ended March 31, 2023, compared with the same period in 2022, was primarily due to higher pre-tax earnings, net of ADITC amortization from the regulatory mechanism described in Note 3 - "Regulatory Matters." On a net basis, Idaho Power’s estimate of its annual 2023 regulatory flow-through tax adjustments is lower than 2022.

3. REGULATORY MATTERS

Included below is a summary of Idaho Power's most recent general rate cases and base rate changes, as well as other recent or pending notable regulatory matters and proceedings.

Idaho and Oregon General Rate Cases

Idaho Power's current base rates result from the ~~Idaho Public Utilities Commission (IPUC)~~IPUC and ~~Public Utility Commission of Oregon (OPUC)~~OPUC orders described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2022~~2023 Annual Report. OnIn March ~~31, 2023,~~2024, Idaho Power provided notice to the IPUC of its intent to file a ~~general~~limited issue rate case in Idaho on or after ~~June 1, 2023.~~May 31, 2024.

In December 2023, Idaho Power filed a general rate case with the OPUC. The filing was based on a 2024 test year and requested an overall annual rate increase of $10.7 million, or 19.28 percent. The filing requested, among other items, a 10.4 percent authorized rate of return on equity and an approximate $188.9 million Oregon-jurisdiction retail rate base. The $188.9 million of rate base excludes rate base associated with Idaho Power's jointly-owned North Valmy coal facilities, the costs of which are recovered under a separate rate mechanism. In its application, Idaho Power proposed a capitalization structure of 49 percent long-term debt and 51 percent common stock equity. Idaho Power included an average cost of debt of 5.104 percent and an overall cost of capital of 7.807 percent. Idaho Power has reached a settlement in principle for the general rate case with the OPUC staff and other stakeholders. The settlement is not final and remains subject to completion of the related settlement stipulation, as well as approval by the OPUC. As of the date of this report, Idaho Power is unable to predict the outcome of the general rate case. If approved by the OPUC, new rates for Oregon-jurisdiction customers would become effective in October 2024 or later.

Idaho ~~Settlement Stipulations~~ADITC and Revenue Sharing Mechanism

~~Table of Contents~~

Report. The 2023 Settlement Stipulation modifies the 2018 Settlement Stipulation in part. The 2023 Settlement Stipulation includes provisions for the accelerated amortization of ADITC to help achieve a minimum ~~9.4~~9.12 percent ~~Idaho-jurisdiction return on year-end equity (Idaho ROE). In addition, under the May 2018~~ Idaho Tax Reform Settlement Stipulation, the Idaho ROE at which Idaho Power would begin amortizing additional ADITC would revert back to 95 percent of the authorized return on equity in the next general rate case.ROE. The settlement ~~stipulation~~stipulations also ~~provides~~provide for the potential sharing between Idaho Power and Idaho customers of Idaho-jurisdictional earnings in excess of ~~10.0~~a 9.6 percent Idaho ROE. In addition, the 2023 Settlement Stipulation included modifications to Idaho Power’s ADITC and revenue sharing mechanism beginning in 2024 to (1) include an additional amount of ~~Idaho ROE, which would adjust~~investment tax credits equal to the ~~authorized return~~incremental investment tax credits generated from Idaho Power’s investment in 2023 battery storage projects; (2) remove the existing $25 million annual cap on ~~equity in~~ the ~~next general rate case.~~amount of accelerated amortization of ADITCs; and (3) implement all revenue sharing through the PCA rather than using a portion of revenue sharing to offset customer-funded pension obligations.

Based on its estimate of full-year ~~2023~~2024 Idaho ROE, in the first quarter of ~~2023,~~2024, Idaho Power recorded ~~$3.75~~$12.5 million in additional ADITC amortization under the ~~May 2018 Idaho Tax Reform~~2023 Settlement Stipulation. Accordingly, at March 31, ~~2023, $41.25~~2024, $73.5 million of additional ADITC ~~remains~~remained available for future use. Idaho Power recorded no$3.75 million of additional ADITC amortization ~~or provision against revenues for sharing of earnings with customers~~ during the first quarter of ~~2022,~~2023, based on its then-current estimate of full-year ~~2022~~2023 Idaho ROE.

Table of Contents

Power Cost Adjustment Mechanisms

In both its Idaho and Oregon jurisdictions, Idaho Power's power cost adjustment mechanisms address the volatility of power supply costs and provide for annual adjustments to the rates charged to its retail customers. The power cost adjustment mechanisms compare Idaho Power's actual net power supply costs (primarily fuel and purchased power less wholesale energy sales) against net power supply costs being recovered in Idaho Power's retail rates. Under the power cost adjustment mechanisms, certain differences between actual net power supply costs incurred by Idaho Power and costs being recovered in retail rates are recorded as a deferred charge or credit on the balance sheet for future recovery or refund. The power supply costs deferred primarily result from changes in contracted power purchase prices and volumes, changes in wholesale market prices and transaction volumes, fuel prices, and the levels of Idaho Power's own generation.

In April ~~2023~~2024, Idaho Power and parties entered into a settlement stipulation for its annual power cost update (APCU) in Oregon. The APCU includes both an October update and a March forecast. Once approved by the OPUC, the results of the October update are reflected as an update to base rates and the results of the March forecast are reflected as an update to APCU rates. If approved, the proposed settlement will result in an overall rate decrease of $6.9 million effective June 1, 2024. As of the date of this report, the OPUC has not issued an order on the proposed settlement stipulation.

In April 2024, Idaho Power filed an application with the IPUC requesting a~~$200.2~~ $35.7 million net~~increase~~ decrease in ~~Idaho-jurisdiction power cost adjustment (PCA)~~PCA revenues, effective for the ~~2023-2024~~2024-2025 PCA collection period from June 1, ~~2023,~~2024, to May 31, ~~2024.~~2025. The net ~~increase~~decrease in PCA revenues reflects ~~higher market energy and natural gas prices, combined with lower-than-expected~~forecasted improved hydropower generation ~~and limited coal supply in the prior April 2022-March 2023 PCA period. The net increase also reflects an expectation of continued elevated market energy and natural gas prices in~~during the April ~~2023-March 2024 forecast period under the PCA.~~ 2024-March 2025 PCA deferral period. As of the d~~ate~~date of this report, the IPUC has not yet issued an order on the company's requested rate ~~increase.~~

In March 2023, Idaho Power filed its annual power cost update (APCU) with the OPUC, requesting a $9.0 million increase in Oregon-jurisdiction rates effective June 1, 2023. As of the date of this report, the OPUC has not issued an order on the Company’s requested rate increase.decrease.

Idaho Fixed Cost Adjustment Mechanism

The ~~Idaho jurisdiction fixed cost adjustment (FCA)~~FCA mechanism, applicable to Idaho residential and small commercial customers, is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by separating (or decoupling) the recovery of fixed costs from the variable kilowatt-hour charge and linking it instead to a set amount per customer. Under Idaho Power's current rate design, Idaho Power recovers a portion of fixed costs through the variable kilowatt-hour charge, which may result in over-collection or under-collection of fixed costs. To return over-collection to customers or to collect under-collection from customers, the FCA mechanism allows Idaho Power to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power during the year. The IPUC has discretion to cap the annual increase in the FCA recovery at 3 percent of base revenue, with any excess deferred for collection in a subsequent year. In March ~~2023,~~2024, Idaho Power filed its annual FCA update with the IPUC, requesting ~~a decrease~~approval to recover its 2023 FCA balance of $36.8 million, ~~of $10.1~~an $11.7 million ~~in recovery from the FCA from $35.2 million to $25.1 million for~~increase over the 2022 FCA ~~deferral, with new rates effective for~~balance of $25.1 million, over the period from June 1, ~~2023~~2024, to May 31, ~~2024.~~2025. As of the date of this report, the IPUC has not yet issued an order on the company's requested rate ~~decrease.~~increase.

~~Jim Bridger Power Plant Rate Base Adjustment and Recovery~~

In June 2022, the IPUC issued an order approving, with modifications, Idaho Power’s amended application requesting authorization to (1) accelerate depreciation for the Jim Bridger plant to allow the coal-related plant assets to be fully depreciated and recovered by December 31, 2030, (2) establish a balancing account to track the incremental costs, benefits, and required regulatory accounting associated with ceasing participation in coal-fired operations at the Jim Bridger plant, and (3) increase customer rates related to the associated incremental annual levelized revenue requirement (Bridger Order).

~~Table of Contents~~

The Bridger Order allows for regulatory accounting entries and establishes balancing accounts (recorded as regulatory assets or liabilities on Idaho Power’s and IDACORP’s consolidated balance sheets) to track differences between amounts recovered in rates and actual incremental costs and benefits associated with Idaho Power’s cessation of coal-fired operations at the Jim Bridger plant. The incremental costs and benefits include the revenue requirement associated with the incremental Jim Bridger plant coal-related investments made from 2012 through the end of 2020, forecasted coal-related investments, and near-term decommissioning costs, offset by other operations and maintenance (O&M) cost savings. The Bridger Order deemed all coal-related investments at the Jim Bridger plant from 2012 through 2020 to be prudent for recovery. In the Bridger Order, the IPUC reduced Idaho Power's requested rate increase from 2.1 percent in its amended filing to 1.5 percent, a reduction from a requested $27.1 million to $18.8 million annually. The Bridger Order provides that any uncollected amount resulting from the reduction in the rate increase will be recorded in the balancing account for future recovery with no carrying charge. Idaho Power anticipates making future filings with the IPUC that may result in periodic adjustments to rates to true up variances between revenue collections and actual revenue requirement amounts. The Bridger Order allows Idaho Power to earn a return on and recover through 2030 the net book value of coal-related assets at the Jim Bridger plant as of December 31, 2020, as well as forecasted coal-related investments.

~~Wildfire Mitigation Cost Recovery~~

In June 2021, the IPUC authorized Idaho Power to defer for future amortization incremental O&M and depreciation expense for certain capital investments necessary to implement Idaho Power's Wildfire Mitigation Plan (WMP). The IPUC also authorized Idaho Power to record these deferred expenses as a regulatory asset until Idaho Power can request amortization of the deferred costs in a future IPUC proceeding, at which time the IPUC will have the opportunity to review actual costs and determine the amount of prudently incurred costs that Idaho Power can recover through retail rates. In its 2021 application with the IPUC, Idaho Power projected spending approximately $47 million in incremental wildfire mitigation-related O&M and roughly $35 million in wildfire mitigation system-hardening incremental capital expenditures over a five-year period. The IPUC authorized a deferral period of five years, or until rates go into effect from Idaho Power's next general rate case, whichever is first. As of March 31, 2023, Idaho Power's deferral of Idaho-jurisdiction costs related to the WMP was $34.8 million.

During the 2021 and 2022 wildfire seasons, Idaho Power identified needs for expanded mitigation measures by gaining additional insights and knowledge on wildfires and wildfire mitigation activities. In October 2022, Idaho Power filed an updated WMP with the IPUC along with an application requesting authorization to defer an estimated $16 million of newly identified incremental costs expected to be incurred between 2022 and 2025 associated with expanded wildfire mitigation efforts. In March 2023, the IPUC approved Idaho Power's updated WMP and request to defer the additional incremental costs.

4. REVENUES

The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands):


		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,

		Three months ended March 31,
		2023		2022
Revenue from contracts with customers	Revenue from contracts with customers	$	385,666	$	318,182
Revenue from contracts with customers
Revenue from contracts with customers
Alternative revenue programs and other revenues
Alternative revenue programs and other revenues
Alternative revenue programs and other revenues	Alternative revenue programs and other revenues	43,672		25,739
Total electric utility operating revenues	Total electric utility operating revenues	$	429,338	$	343,921
Total electric utility operating revenues
Total electric utility operating revenues

2122

Table of Contents

Revenues from Contracts with Customers

The following table presents revenues from contracts with customers disaggregated by revenue source for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands):

Three months ended
March 31,

2023

2022

Retail revenues:

Residential (includes $8,909, and $10,093, respectively, related to the FCA)(1)

188,536

169,295

Commercial (includes $276, and $283, respectively, related to the FCA)(1)

87,830

78,566

Retail revenues:

Residential (includes $(687) and $8,909, respectively, related to the FCA)(1)

Commercial (includes $(53) and $276, respectively, related to the FCA)(1)

Industrial

55,544

49,060

Industrial

Irrigation

933

1,041

Deferred revenue related to HCC relicensing AFUDC(2)

(2,119)

Deferred revenue related to HCC relicensing AFUDC(2)

Total retail revenues

330,724

295,843

Less: FCA mechanism revenues(1)

(9,185)

(10,376)

Less: FCA mechanism revenues(1)

Wholesale energy sales

30,195

3,035

Transmission wheeling-related revenues

21,585

16,466

Transmission wheeling-related revenues

Energy efficiency program revenues

5,215

6,589

Other revenues from contracts with customers

7,132

6,625

Other revenues from contracts with customers

Total revenues from contracts with customers

385,666

318,182

Total revenues from contracts with customers

(1) The FCA mechanism is an alternative revenue program in the Idaho jurisdiction and does not represent revenue from contracts with customers.

(2) The IPUC allows Idaho Power to recover a portion of the ~~allowance for funds used during construction (AFUDC)~~AFUDC on construction work in progress related to the ~~Hells Canyon Complex (HCC)~~HCC relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service. Idaho Power is collecting $8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.

Alternative Revenue Programs and Other Revenues

While revenues from contracts with customers make up most of Idaho Power’s revenues, the IPUC has authorized the use of an additional regulatory mechanism, the ~~Idaho~~ FCA mechanism, which may increase or decrease tariff-based customer rates. The ~~Idaho~~ FCA mechanism is described in Note 3 - "Regulatory Matters." The FCA mechanism revenues include only the initial recognition of FCA revenues when they meet the regulator-specified conditions for recognition. Revenue from contracts with customers excludes the portion of the tariff price representing FCA revenues that Idaho Power initially recorded in prior periods when revenues met regulator-specified conditions. When Idaho Power includes those amounts in the price of utility service and billed to customers, Idaho Power records such amounts as recovery of the associated regulatory asset or liability and not as revenues.

Derivative revenues include gains from settled electricity swaps and sales of electricity under forward sales contracts that are bundled with renewable energy credits. ~~Related to these~~For each forward ~~sales,~~sale, Idaho Power simultaneously enters into a matching forward ~~purchases~~purchase of electricity for the same quantity at the same location, which are recorded in purchased power on the condensed consolidated statements of income. For more information on settled electricity swaps, see Note 11 - "Derivative Financial Instruments."

The table below presents the FCA mechanism revenues and other revenues for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands):


		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,

		Three months ended March 31,
		2023		2022
FCA mechanism revenues	FCA mechanism revenues	$	9,185	10,376
FCA mechanism revenues
FCA mechanism revenues
Derivative revenues
Derivative revenues
Derivative revenues	Derivative revenues	34,487		15,363
Total alternative revenue programs and other revenues	Total alternative revenue programs and other revenues	$	43,672	$	25,739
Total alternative revenue programs and other revenues
Total alternative revenue programs and other revenues

2223

Table of Contents

Receivables and Allowance for Uncollectible Accounts

The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands):


			Three months ended March 31,
		Three months ended March 31,												Three months ended March 31,
			2023			2022				2024		2023
Balance at beginning of period	Balance at beginning of period		$	5,034		$	4,499
Additions to the allowance	Additions to the allowance		577			488
Write-offs, net of recoveries	Write-offs, net of recoveries		(549)			(137)
Balance at end of period	Balance at end of period		$	5,062		$	4,850
Allowance for uncollectible accounts as a percentage of customer receivables	Allowance for uncollectible accounts as a percentage of customer receivables		4.8		%	5.6		%	Allowance for uncollectible accounts as a percentage of customer receivables	3.8	%	4.8	%

5. LONG-TERM DEBT

~~Long-Term Debt Issuances and Redemptions~~Idaho Power First Mortgage Bonds

~~On December 22, 2022,~~Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC. In February and March 2024, Idaho Power ~~entered into a Bond Purchase Agreement (Bond Purchase Agreement) with certain institutional purchasers relating~~received orders from the IPUC, OPUC, and WPSC authorizing the company to ~~the sale by Idaho Power of $170 million of first mortgage bonds, secured medium-term notes, Series N (Series N Notes), as described in Note 5 - "Long-Term Debt"~~issue and sell from time to ~~the consolidated financial statements included in the 2022 Annual Report. On March 8, 2023, Idaho Power issued $60 million~~time up to $1.2 billion in aggregate principal amount of ~~5.06%~~debt securities and first mortgage bonds, ~~secured medium-term notes, Series N, maturing on March 8, 2043;~~subject to conditions specified in the orders. Authority from the IPUC is effective through December 31, 2026, subject to extensions upon request to the IPUC. The OPUC's and ~~$62 million in aggregate principal amount~~WPSC's orders do not impose a time limitation for issuances, but the OPUC order does impose a number of ~~5.20%~~other conditions, including a requirement that the interest rates for the debt securities or first mortgage bonds ~~secured medium-term notes, Series N, maturing on~~fall within either (a) designated spreads over comparable U.S. Treasury rates or (b) a maximum interest rate limit of 8 percent. At March ~~8, 2053.~~

Idaho Power also issues secured medium term notes from time to time under a shelf registration statement with the SEC, as described in Note 5 - "Long-Term Debt" to the consolidated financial statements included in the 2022 Annual Report. On March 14, 2023,31, 2024, $1.2 billion remains available for debt issuance under the shelf registration statement with the SEC, Idaho Power issued $400 million in aggregate principal amount of 5.50% first mortgage bonds, secured medium-term notes, Series M, maturing on March 15, 2053. On April 1, 2023, Idaho Power repaid $75 million in aggregate principal amount of maturing 2.50% first mortgage bonds due 2023,~~Series I, and as a result, the $75 million of 2.50% first mortgage bonds are classified as current maturities of long-term debt in the condensed consolidated balance sheets at March 31, 2023.~~

On March 4, 2022, Idaho Power entered into a floating rate term loan credit agreement (Term Loan Facility) for the issuance of up to an aggregate principal amount of $150 million due 2024, bearing interest at floating rates based on the Secured Overnight Financing Rate (SOFR), as described in Note 5 - "Long-Term Debt" to the consolidated financial statements included in the 2022 Annual Report. On March 31, 2023, Idaho Power repaid $100 million of the Term Loan Facility. As of March 31, 2023, $50 million in principal amount of the Term Loan Facility remained outstanding.regulatory orders.

6. COMMON STOCK

IDACORP Common Stock

During the three months ended March 31, ~~2023,~~2024, IDACORP issued an aggregate of 78,925 shares of common stock using original issuances of shares. IDACORP granted ~~75,295~~103,771 restricted stock unit awards to employees and issued ~~45,719~~60,856 shares of common stock ~~using original issuances of shares~~ pursuant to the IDACORP, Inc. 2000 Long-Term Incentive and Compensation Plan, including ~~6,664~~10,571 shares of common stock issued to members of the board of directors. ~~As directed by~~ IDACORP issued 18,069 shares of common stock pursuant to its IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan.

Effective January 1, 2024, IDACORP instructed the plan ~~administrators~~administrator of the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan ~~and~~to use original issuance of common stock from IDACORP, as opposed to market purchases of IDACORP common stock, to acquire shares of IDACORP common stock for the plan. However, IDACORP may determine at any time to resume market purchases of common stock under the plan. As directed by IDACORP, the plan administrator of the Idaho Power Company Employee Savings Plan used market purchases of IDACORP common stock to acquire shares of IDACORP common stock for the ~~plans.~~plan.

Equity Forward Sale Agreements

On November 7, 2023, IDACORP announced a registered public offering of 2,801,724 shares of its common stock at a public offering price of $92.80 per share, for an aggregate amount of $260.0 million. In conjunction with this offering, IDACORP granted the underwriters an option to purchase up to 420,258 additional shares, which was subsequently exercised in full on November 8, 2023, for an additional aggregate amount of $39.0 million. The 3,221,982 shares were sold by IDACORP to the underwriters under FSAs which provide for settlement on a settlement date or dates to be specified at IDACORP’s discretion, but which is expected to occur on or prior to November 7, 2024.

The FSAs will be physically settled with common shares issued by IDACORP, unless IDACORP elects to settle the agreements in net cash or net shares, subject to certain conditions. On a settlement date or dates, if IDACORP elects to physically settle the FSAs, IDACORP will issue shares of common stock to the forward purchaser at the then-applicable forward sale price and receive issuance proceeds at that time. The forward sale price was initially $90.016 per share and is subject to certain adjustments in accordance with the terms of the FSAs through the date of settlement.

Table of Contents

At March 31, 2024, IDACORP could have settled the FSAs with physical delivery of 3,221,982 shares of common stock to the counterparty in exchange for cash of $292.5 million. The FSAs could have also been settled at March 31, 2024, with delivery of approximately $1.9 million of cash or approximately 21,000 shares of common stock to the counterparty, if IDACORP had elected to net cash or net share settle, respectively. The FSAs have been classified as an equity transaction because they are indexed to IDACORP’s common stock and the other requirements necessary for equity classification are met. As a result of the equity classification, no gain or loss will be recognized within earnings due to subsequent changes in the fair value of the FSAs.

Prior to settlement, the potentially issuable shares pursuant to the FSAs will be reflected in IDACORP’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of IDACORP’s common stock used in calculating diluted earnings per share for a reporting period would be increased by the number of shares, if any, that would be issued upon physical settlement of the FSAs, less the number of shares that could be purchased by IDACORP in the market with the proceeds received from issuance (based on the average market price during that reporting period). Share dilution occurs when the average market price of IDACORP’s stock during the reporting period is higher than the then-applicable forward sale price as of the end of the reporting period. As of March 31, 2024, approximately 28,000 incremental shares were included in the calculation of diluted earnings per share related to the securities under the FSAs. See Note 7 - "Earnings Per Share" for additional information concerning IDACORP's diluted earnings per share.

Restrictions on Dividends

Idaho Power’s ability to pay dividends on its common stock held by IDACORP and IDACORP’s ability to pay dividends on its common stock are limited to the extent payment of such dividends would violate the covenants in their respective ~~Credit Facilities~~credit facilities or Idaho Power’s ~~Revised~~ Code of Business Conduct. A covenant under IDACORP’s credit facility and Idaho Power’s credit facility requires IDACORP and Idaho Power to maintain leverage ratios of consolidated indebtedness to consolidated total capitalization, as defined therein, of no more than 65 percent at the end of each fiscal quarter. At March 31, ~~2023,~~2024, the leverage ratios for IDACORP and Idaho Power were 4849 percent and 4950 percent, respectively. Based on these restrictions, IDACORP’s and Idaho Power’s dividends were limited to $1.4 billion and $1.3 billion, respectively, at March 31, ~~2023.~~2024. There are additional

~~Table of Contents~~

facility covenants, subject to exceptions, that prohibit or restrict the sale or disposition of property without consent and any agreements restricting dividend payments to IDACORP and Idaho Power from any material subsidiary. At March 31, ~~2023,~~2024, IDACORP and Idaho Power were in compliance with those covenants.

Idaho Power’s ~~Revised~~Statement of Policy and Code of Conduct relating to transactions between and among Idaho Power, IDACORP, and other affiliates, which was approved by the IPUC in April 2008, provides that Idaho Power will not pay any dividends to IDACORP that will reduce Idaho Power’s common equity capital below 35 percent of its total adjusted capital without IPUC approval. At March 31, ~~2023,~~2024, Idaho Power's common equity capital was 5150 percent of its total adjusted capital. Further, Idaho Power must obtain approval from the OPUC before it can directly or indirectly loan funds or issue notes or give credit on its books to IDACORP.

Idaho Power’s articles of incorporation contain restrictions on the payment of dividends on its common stock if preferred stock dividends are in arrears. As of the date of this report, Idaho Power has no preferred stock outstanding.

In addition to contractual restrictions on the amount and payment of dividends, the Federal Power Act prohibits the payment of dividends from "capital accounts." The term "capital account" is undefined in the Federal Power Act or its regulations, but Idaho Power does not believe the restriction would limit Idaho Power's ability to pay dividends out of current year earnings or retained earnings.

Table of Contents

7. EARNINGS PER SHARE

The table below presents the computation of IDACORP’s basic and diluted earnings per share for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands, except for per share amounts).

Three months ended
March 31,

2023

2022

Numerator:

Net income attributable to IDACORP, Inc.

56,098

46,260

Denominator:

Weighted-average common shares outstanding - basic

50,688

50,632

Effect of dilutive securities

Weighted-average common shares outstanding - basic

Effect of dilutive securities(1)

Weighted-average common shares outstanding - diluted

50,723

50,660

Basic earnings per share

1.11

0.91

Basic earnings per share

Diluted earnings per share

1.11

0.91

Diluted earnings per share

(1) The effect of dilutive securities amount includes approximately 28 thousand incremental shares related to FSAs as of March 31, 2024. See Note 6 - "Common Stock" for additional information concerning IDACORP's FSAs.

8. COMMITMENTS

Purchase Obligations

During the three months ended March 31, ~~2023,~~2024, Idaho Power entered into:

•two agreements in January and February 2024 to replace expiring PURPA-qualifying hydropower facility power purchase agreements, which increased Idaho Power's contractual purchase obligations by approximately $38.0 million over the 20-year term of the agreements; and

•an energy and capacity market purchase agreement with an energy marketer for the right to acquire 200 MW on a daily basis during summer months, subject to regulatory approval, which increased Idaho Power's contractual purchase obligations by approximately $84.3 million over the 5-year term of the contract commencing in June 2026.

Except as disclosed in this Note 8, during the three months ended March 31, 2024, IDACORP's and Idaho Power's contractual obligations, outside the ordinary course of business, did not change materially from the amounts disclosed in the notes to the consolidated financial statements in the ~~2022~~2023 Annual ~~Report, except as disclosed in this Note 8.~~

In April 2023, Idaho Power entered into an agreement to purchase the storage capacity of a 150 megawatt (MW) battery storage facility, subject to regulatory approval, which increased Idaho Power's contractual obligations by approximately $430.9 million over the 20-year term of the contract. The facility is scheduled to be online in June 2025.

~~Acquisition of Additional Interest in Boardman-To-Hemingway Transmission Project~~

In March 2023, Idaho Power executed a purchase, sale, and security agreement with the Bonneville Power Administration (BPA) to transfer BPA's 24 percent interest in the Boardman-to-Hemingway transmission line project to Idaho Power, bringing Idaho Power's interest in the project to 45 percent. Pursuant to the agreement, Idaho Power has a commitment to provide long-term transmission service to BPA. The agreement also required BPA to make a $10 million security payment to Idaho Power. On Idaho Power's condensed consolidated balance sheet as of March 31, 2023, the agreement increased construction work in progress by $31.4 million for the acquired permitting interest, cash and cash equivalents by $10.0 million for the additional security payment, and other non-current liabilities by $41.4 million for Idaho Power's obligation to pay for the permitting

~~Table of Contents~~

interest and to return the security deposit to BPA. Payments to BPA for the permitting interest are expected to be made over a 15-year period beginning 10 years after energization of the transmission line project, while the security deposit is due to be returned to BPA upon energization.Report.

Guarantees

Idaho Power guarantees its portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest. This guarantee, which is renewed annually with the Wyoming Department of Environmental Quality (WDEQ), was ~~$47.3~~$47.6 million at March 31, ~~2023,~~2024, representing IERCo's one-third share of BCC's total reclamation obligation of ~~$141.9~~$142.9 million. BCC has a reclamation trust fund set aside specifically for the purpose of paying these reclamation costs. At March 31, ~~2023,~~2024, the value of BCC's reclamation trust fund ~~was $212.4 million. During~~exceeded WDEQ's guarantee requirement for the ~~three months ended March 31, 2023, the~~total reclamation ~~trust fund made no distributions for reclamation activity costs associated with the BCC surface mine.~~obligation. BCC periodically assesses the adequacy of the reclamation trust fund and its estimate of future reclamation costs. To ensure that the reclamation trust fund maintains adequate reserves, BCC has the ability to, and does, add a per-ton surcharge to coal sales, all of which are made to the Jim Bridger plant. Because of the existence of the fund and the ability to apply a per-ton surcharge, the estimated fair value of this guarantee is minimal.

IDACORP and Idaho Power enter into financial agreements and power purchase and sale agreements that include indemnification provisions relating to various forms of claims or liabilities that may arise from the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated. IDACORP and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities. As of March 31, ~~2023,~~2024, management believe the likelihood is remote that IDACORP or Idaho Power would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnification obligations. Neither IDACORP nor Idaho Power has recorded any liability on their respective condensed consolidated balance sheets with respect to these indemnification obligations.

Table of Contents

9. CONTINGENCIES

IDACORP and Idaho Power have in the past and expect in the future to become involved in various claims, controversies, disputes, and other contingent matters, some of which involve litigation and regulatory or other contested proceedings. The ultimate resolution and outcome of litigation and regulatory proceedings is inherently difficult to determine, particularly where (a) the remedies or penalties sought are indeterminate, (b) the proceedings are in the early stages or the substantive issues have not been well developed, or (c) the matters involve complex or novel legal theories or a large number of parties. In accordance with applicable accounting guidance, IDACORP and Idaho Power, as applicable, establish an accrual for legal proceedings when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. If the loss contingency at issue is not both probable and reasonably estimable, IDACORP and Idaho Power do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. As of the date of this report, IDACORP's and Idaho Power's accruals for loss contingencies are not material to their financial statements as a whole; however, future accruals could be material in a given period. IDACORP's and Idaho Power's determination is based on currently available information, and estimates presented in financial statements and other financial disclosures involve significant judgment and may be subject to significant uncertainty. For matters that affect Idaho Power's operations, Idaho Power intends to seek, to the extent permissible and appropriate, recovery through the ratemaking process of costs incurred, although there is no assurance that such recovery would be granted.

IDACORP and Idaho Power are parties to legal claims and legal, tax, and regulatory actions and proceedings in the ordinary course of business and, as noted above, record an accrual for associated loss contingencies when they are probable and reasonably estimable. In connection with its utility operations, Idaho Power is subject to claims by individuals, entities, and governmental agencies for damages for alleged personal injury, property damage, and economic losses, relating to the company’s provision of electric service and the operation of its ~~generation,~~power supply, transmission, and distribution facilities. Some of those claims relate to electrical contacts, service quality, property damage, and wildfires. In recent years, utilities in the western United States have been subject to significant liability for personal injury, loss of life, property damage, trespass, and economic losses, and in some cases, punitive damages and criminal charges, associated with wildfires that originated from utility property, most commonly transmission and distribution lines. Idaho Power has also regularly received claims by governmental agencies and private landowners for damages for fires allegedly originating from Idaho Power’s transmission and distribution system. As of the date of this report, the companies believe that resolution of existing claims will not have a material adverse effect on their respective condensed consolidated financial statements.

~~Table of Contents~~

Idaho Power ~~is also~~ actively ~~monitoring various~~monitors any pending or potential environmental regulations and executive orders related to environmental matters that may have a significant impact on its future operations. Given uncertainties regarding the outcome, timing, and compliance plans for these environmental matters, Idaho Power is unable to estimate the financial impact of ~~these regulations.~~any such regulations and orders.

10. BENEFIT PLANS

Idaho Power has a noncontributory defined benefit pension plan (pension plan) and two nonqualified defined benefit plans for certain senior management employees, ~~called~~ the ~~Security Plan for Senior Management Employees I and Security Plan for Senior Management Employees II (together, SMSP).~~SMSP. Idaho Power also has a nonqualified defined benefit pension plan for directors that was frozen in 2002. Remaining vested benefits from that plan are included with the SMSP in the disclosures below. The benefits under the pension plan are based on years of service and the employee’s final average earnings. Idaho Power also maintains a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers all employees who were enrolled in the active-employee group plan at the time of retirement as well as their spouses and

Table of Contents

qualifying dependents. The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands).


			Pension Plan				SMSP				Postretirement Benefits				Total
		Pension Plan																			Pension Plan			SMSP		Postretirement Benefits			Total
			2023		2022		2023		2022		2023		2022		2023		2022		2024	2023		2024	2023		2024		2023	2024		2023
Service cost	Service cost		$	8,078	$	13,164	$	153	$	296	$	178	$	270	$	8,409	$	13,730
Interest cost	Interest cost		12,654		10,084		1,331		974		773		526		14,758		11,584
Expected return on plan assets	Expected return on plan assets		(15,434)		(18,037)		—		—		(419)		(591)		(15,853)		(18,628)
Amortization of prior service cost	Amortization of prior service cost		2		2		55		70		416		(1)		473		71
Amortization of net loss	Amortization of net loss		—		3,548		142		1,057		(272)		(11)		(130)		4,594
Net periodic benefit cost	Net periodic benefit cost		5,300		8,761		1,681		2,397		676		193		7,657		11,351
Regulatory deferral of net periodic benefit cost(1)	Regulatory deferral of net periodic benefit cost(1)		(5,060)		(8,373)		—		—		—		—		(5,060)		(8,373)
Previously deferred pension costs recognized(1)	Previously deferred pension costs recognized(1)		4,288		4,288		—		—		—		—		4,288		4,288
Net periodic benefit cost recognized for financial reporting(1)(2)	Net periodic benefit cost recognized for financial reporting(1)(2)		$	4,528	$	4,676	$	1,681	$	2,397	$	676	$	193	$	6,885	$	7,266

(1) Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, the Idaho portion of net periodic benefit cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.

(2) Of total net periodic benefit cost recognized for financial reporting, ~~$5.3~~$9.4 million and ~~$4.9~~$5.3 million, respectively, were recognized in "Other operations and maintenance" and ~~$1.6~~$2.0 million and ~~$2.4~~$1.6 million, respectively, were recognized in "Other income, net" on the condensed consolidated statements of income of the companies for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

Idaho Power has no minimum contribution requirement to its defined benefit pension plan in ~~2023,~~2024, and during the three months ended March 31, ~~2023,~~2024, Idaho Power made no contributions. ~~In April 2023, Idaho Power made a $10 million contribution.~~ Idaho Power is considering contributing up to ~~an additional~~ $30 million to its defined benefit pension plan during ~~2023~~2024 in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions, as well as to mitigate the cost of being in an underfunded position. The primary impact of pension contributions is on the timing of cash flows, as the timing of cost recovery lags behind contributions.

Idaho Power also has an Employee Savings Plan that complies with Section 401(k) of the Internal Revenue Code and covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the Employee Savings Plan.

11. DERIVATIVE FINANCIAL INSTRUMENTS

Commodity Price Risk

Idaho Power is exposed to market risk relating to electricity, natural gas, and other fuel commodity prices, all of which are heavily influenced by supply and demand. Market risk may be influenced by market participants’ nonperformance of their contractual obligations and commitments, which affects the supply of or demand for the commodity. Idaho Power uses derivative instruments, such as physical and financial forward contracts, for both electricity and fuel to manage the risks relating to these commodity price exposures. The primary objectives of Idaho Power’s energy purchase and sale activity are to meet the demand of retail electric customers, maintain appropriate physical reserves to ensure reliability, and make economic use of temporary surpluses that may develop.

~~Table of Contents~~

All of Idaho Power's derivative instruments have been entered into for the purpose of securing energy resources for future periods or economically hedging forecasted purchases and sales, though none of these instruments have been designated as cash flow hedges. Idaho Power offsets fair value amounts recognized on its balance sheet and applies collateral related to derivative instruments executed with the same counterparty under the same master netting agreement. Idaho Power does not offset a counterparty's current derivative contracts with the counterparty's long-term derivative contracts, although Idaho Power's master netting arrangements would allow current and long-term positions to be offset in the event of default. Also, in the event of default, Idaho Power's master netting arrangements would allow for the offsetting of all transactions executed under the master netting arrangement. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit). These types of transactions are excluded from the offsetting presented in the derivative fair value and offsetting table that follows.

Table of Contents

The table below presents the gains and losses on derivatives not designated as hedging instruments for the three months ended March 31, 2024 and 2023 ~~and 2022~~ (in ~~thousands of dollars)~~thousands):

Gain/(Loss) on Derivatives Recognized in Income(1)

Location of Realized Gain/(Loss) on Derivatives Recognized in Income

Three months ended
March 31,

2023

2022

Gain/(Loss) on Derivatives Recognized in Income(1)

Location of Realized Gain/(Loss) on Derivatives Recognized in Income

2024

Financial swaps

Operating revenues

(1,079)

582

Financial swaps

Purchased power

1,626

116

Financial swaps

Fuel expense

23,537

1,460

Forward contracts

Operating revenues

636

179

Forward contracts

Purchased power

(600)

(179)

Forward contracts

Fuel expense

(420)

(54)

(1) Excludes unrealized gains or losses on derivatives, which are recorded on the balance sheet as regulatory assets or regulatory liabilities.

Settlement gains and losses on electricity swap contracts are recorded on the income statement in operating revenues or purchased power depending on the forecasted position being economically hedged by the derivative contract. Settlement gains and losses on contracts for natural gas are reflected in fuel expense. Settlement gains and losses on diesel derivatives are recorded in other O&M expense. See Note 12 - "Fair Value Measurements" for additional information concerning the determination of fair value for Idaho Power’s assets and liabilities from price risk management activities.

Credit Risk

At March 31, ~~2023,~~2024, Idaho Power did not have material credit risk exposure from financial instruments, including derivatives. Idaho Power monitors credit risk exposure through reviews of counterparty credit quality, corporate-wide counterparty credit exposure, and corporate-wide counterparty concentration levels. Idaho Power manages these risks by establishing credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Idaho Power’s physical power contracts are commonly under WSPP, Inc. agreements, physical gas contracts are usually under North American Energy Standards Board contracts, and financial transactions are usually under International Swaps and Derivatives Association, Inc. contracts. These contracts typically contain adequate assurance clauses requiring collateralization if a counterparty has debt that is downgraded below investment grade by at least one rating agency.

Credit-Contingent Features

Certain of Idaho Power's derivative instruments contain provisions that require Idaho Power's unsecured debt to maintain an investment grade credit rating from Moody's and Standard & Poor's Ratings Services. If Idaho Power's unsecured debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at March 31, ~~2023,~~2024, was ~~$40.2~~$26.4 million. As of March 31, 2024, Idaho Power posted ~~$62.9~~$27.1 million of cash collateral related to its derivative instruments. If the credit-risk-related contingent features underlying these agreements were triggered on

~~Table of Contents~~

March 31, ~~2023,~~2024, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional ~~$22.9~~$6.1 million to cover open liability positions as well as completed transactions that have not yet been paid.

Table of Contents

Derivative Instrument Summary

The table below presents the fair values and locations of derivative instruments not designated as hedging instruments recorded on the balance sheets and reconciles the gross amounts of derivatives recognized as assets and as liabilities to the net amounts presented in the balance sheets at March 31, ~~2023,~~2024, and December 31, ~~2022~~2023 (in ~~thousands of dollars)~~thousands):


			Asset Derivatives																			Asset Derivatives				Liability Derivatives
																		Balance Sheet Location	Gross Fair Value	Amounts Offset	Net Assets		Gross Fair Value	Amounts Offset	Net Liabilities
				Asset Derivatives							Liability Derivatives
		Balance Sheet Location		Gross Fair Value		Amounts Offset			Net Assets		Gross Fair Value		Amounts Offset			Net Liabilities

March 31, 2023
March 31, 2024
March 31, 2024
March 31, 2024
Current:
Current:
Current:	Current:
Financial swaps	Financial swaps	Other current assets		$	1,611	$	(752)		$	859	$	752	$	(752)		$	—
Financial swaps	Financial swaps	Other current liabilities		12,571		(12,571)			—		34,658		(30,936)		(1)	3,722

Forward contracts	Forward contracts	Other current liabilities		—		—			—		1,890		—			1,890
Long-term:
Financial swaps		Other assets		2,224		(1,038)		(2)	1,186		1,022		(1,022)			—

Forward contracts		Other liabilities		—		—			—		1,808		—			1,808
Total				$	16,406	$	(14,361)		$	2,045	$	40,130	$	(32,710)		$	7,420

December 31, 2022
Current:
Financial swaps		Other current assets		$	72,548	$	(32,609)	(3)	$	39,939	$	13,982	$	(13,982)		$	—
Financial swaps		Other current liabilities		132		(132)			—		1,577		(132)			1,445
Forward contracts	Forward contracts	Other current assets		400		—			400		—		—			—
Forward contracts	Forward contracts	Other current liabilities		—		—			—		2,071		—			2,071
Long-term:	Long-term:
Financial swaps	Financial swaps	Other assets		622		(43)			579		43		(43)			—
Financial swaps	Financial swaps	Other liabilities		644		(644)			—		2,136		(644)			1,492
Forward contracts		Other liabilities		—		—			—		1,780		—			1,780
Financial swaps
Financial swaps

Total
Total
Total	Total			$	74,346	$	(33,428)		$	40,918	$	21,589	$	(14,801)		$	6,788

December 31, 2023
December 31, 2023
December 31, 2023
Current:
Current:
Current:
Financial swaps
Financial swaps
Financial swaps
Financial swaps

Forward contracts
Forward contracts
Forward contracts
Long-term:
Financial swaps
Financial swaps
Financial swaps
Financial swaps

Total
Total
Total

(1) Current liability derivative amounts offset include ~~$18.4~~$18.2 million of collateral receivable at March 31, ~~2023.~~2024.

(2) Long-term ~~asset~~liability derivative amounts offset include ~~$16~~$114 thousand of collateral ~~payable~~receivable at March 31, ~~2023.~~2024.

(3) Current ~~asset~~liability derivative amounts offset include ~~$18.6~~$36.6 million of collateral ~~payable~~receivable at December 31, ~~2022.~~2023.

(4) Long-term liability derivative amounts offset include $1.7 million of collateral receivable at December 31, 2023.

The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands of units):

March 31,

Commodity

Units

2023

2022

Commodity

Units

2024

2023

Electricity purchases

MWh

1,066

538

Electricity sales

MWh

128

Natural gas purchases

MMBtu

31,775

16,635

Natural gas sales

MMBtu

310

—

12. FAIR VALUE MEASUREMENTS

IDACORP and Idaho Power have categorized their financial instruments into a three-level fair value hierarchy, based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to

~~Table of Contents~~

measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded on the condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Table of Contents

• Level 1: Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that IDACORP and Idaho Power have the ability to access.

• Level 2: Financial assets and liabilities whose values are based on the following:

a) quoted prices for similar assets or liabilities in active markets;

b) quoted prices for identical or similar assets or liabilities in non-active markets;

c) pricing models whose inputs are observable for substantially the full term of the asset or liability; and

d) pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

IDACORP and Idaho Power Level 2 inputs for derivative instruments are based on quoted market prices adjusted for location using corroborated, observable market data or using quoted price which may be in non-active markets.

• Level 3: Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

IDACORP’s and Idaho Power’s assessment of a particular input's significance to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. There were no transfers between levels or material changes in valuation techniques or inputs during the three months ended March 31, ~~2023.~~2024.

Certain instruments have been valued using ~~net asset value (NAV)~~NAV as a practical expedient. The NAV is generally not published and publicly available, nor are these instruments traded on an exchange. Instruments valued using NAV as a practical expedient are included in the fair value disclosures below; however, in accordance with GAAP are not classified within the fair value hierarchy levels.

The following table presents information about IDACORP’s and Idaho Power’s assets and liabilities measured at fair value on a recurring basis as of March 31, ~~2023,~~2024, and December 31, ~~2022~~2023 (in ~~thousands of dollars)~~thousands).


			March 31, 2023								December 31, 2022
			Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
		March 31, 2024																			March 31, 2024			December 31, 2023
		Level 1																	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets:	Assets:
Money market funds and commercial paper	Money market funds and commercial paper
Money market funds and commercial paper
Money market funds and commercial paper
IDACORP(1)
IDACORP(1)
IDACORP(1)	IDACORP(1)		$	6,234	$	—	$	—	$	6,234	$	16,505	$	—	$	—	$	16,505
Idaho Power	Idaho Power		287,963		—		—		287,963		34,468		—		—		34,468
Derivatives	Derivatives		2,045		—		—		2,045		40,518		400		—		40,918
Equity securities	Equity securities		33,083		—		—		33,083		34,129		—		—		34,129
IDACORP assets measured at NAV (not subject to hierarchy disclosure)(1)	IDACORP assets measured at NAV (not subject to hierarchy disclosure)(1)		—		—		—		2,797		—		—		—		2,796
Liabilities:	Liabilities:
Derivatives	Derivatives		3,722		3,698		—		7,420		2,937		3,851		—		6,788
Derivatives
Derivatives

(1) Holding company only. Does not include amounts held by Idaho Power.

Idaho Power’s derivatives are contracts entered into as part of its management of loads and resources. Electricity swap derivatives are valued on the Intercontinental Exchange (ICE) with quoted prices in an active market. Electricity forward contract derivatives are valued using a blend of two electricity exchanges, adjusted for location basis, as specified in the forward contract. Natural gas and diesel derivatives are valued using New York Mercantile Exchange (NYMEX) and ICE pricing, adjusted for location basis, which are also quoted under NYMEX and ICE pricing. Equity securities at Idaho Power consist of employee-directed investments related to an executive deferred compensation plan and actively traded money market

~~Table of Contents~~

and exchange traded funds related to the SMSP. The investments are measured using quoted prices in active markets and are held in a rabbi trust.

Table of Contents

The table below presents the carrying value and estimated fair value of financial instruments that are not reported at fair value, as of March 31, ~~2023,~~2024, and December 31, ~~2022,~~2023, using available market information and appropriate valuation methodologies (in ~~thousands of dollars)~~thousands).


		March 31, 2023				December 31, 2022					March 31, 2024		December 31, 2023
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value			Carrying Amount	Estimated Fair Value		Carrying Amount	Estimated Fair Value
IDACORP	IDACORP									IDACORP
Assets:	Assets:									Assets:
Notes receivable(1)	Notes receivable(1)	$	3,871	$	3,871	$	3,871	$	3,871
Held-to-maturity securities(1)(2)	Held-to-maturity securities(1)(2)	30,702		26,511		30,475		25,452
Liabilities:	Liabilities:									Liabilities:
Long-term debt (including current portion)(1)	Long-term debt (including current portion)(1)	2,608,051		2,442,488		2,194,145		1,953,470
Idaho Power	Idaho Power									Idaho Power
Assets:	Assets:
Held-to-maturity securities(1)(2)	Held-to-maturity securities(1)(2)	$	30,702	$	26,511	$	30,475	$	25,452
Held-to-maturity securities(1)(2)
Held-to-maturity securities(1)(2)
Liabilities:	Liabilities:									Liabilities:
Long-term debt (including current portion)(1)	Long-term debt (including current portion)(1)	2,608,051		2,442,488		2,191,145		1,953,470

(1) Notes receivable are categorized as Level 3 and held-to-maturity securities and long-term debt are categorized as Level 2 of the fair value hierarchy, as defined earlier in this Note 12 - "Fair Value Measurements."

(2) All held-to-maturity securities are carried at amortized cost and were in a gross unrealized holding loss position totaling ~~$4.2 million and $5.0~~$3.3 million as of both March 31, ~~2023,~~2024, and December 31, ~~2022, respectively.~~2023. Substantially all of these debt securities mature between 2027 and ~~2037.~~2038. Based on ongoing credit evaluations of these holdings, Idaho Power does not expect payment defaults or delinquencies and had not recorded an allowance for credit losses for these securities as of March 31, ~~2023~~2024, and ~~2022.~~December 31, 2023.

Notes receivable are related to Ida-West and are valued based on unobservable inputs, including forecasted cash flows, which are partially based on expected hydropower conditions. Held-to-maturity securities are held in a rabbi trust and are generally valued using quoted prices, which may be in non-active markets. Long-term debt is not traded on an exchange and is valued using quoted rates for similar debt in active markets. Carrying values for cash and cash equivalents, deposits, customer and other receivables, notes payable, accounts payable, interest accrued, and taxes accrued approximate fair value.

13. SEGMENT INFORMATION

IDACORP’s only reportable segment is utility operations. The utility operations segment’s primary source of revenue is the regulated operations of Idaho Power. Idaho Power’s regulated operations include the ~~generation,~~power supply, transmission, distribution, purchase, and sale of electricity. This segment also includes income from IERCo, a wholly-owned subsidiary of Idaho Power that is also subject to regulation and is a one-third owner of BCC, an unconsolidated ~~joint venture.~~investment.

IDACORP’s other operating segments are below the quantitative and qualitative thresholds for reportable segments and are included in the "All Other" category in the table below. This category ~~is comprised~~consists of IFS’s investments in affordable housing and other real estate tax credit projects, Ida-West’s joint venture investments in small hydropower generation projects, and IDACORP’s holding company expenses.

~~Table of Contents~~

The table below summarizes the segment information for IDACORP’s utility operations and the total of all other segments, and reconciles this information to total enterprise amounts (in thousands).


			Utility Operations		All Other		Eliminations		Consolidated Total
		Utility Operations										Utility Operations	All Other	Eliminations	Consolidated Total
Three months ended March 31, 2024:											Three months ended March 31, 2024:
Revenues
Net income attributable to IDACORP, Inc.
Total assets as of March 31, 2024
Three months ended March 31, 2023:	Three months ended March 31, 2023:
Revenues	Revenues		$	429,338	$	321	$	—	$	429,659
Net income attributable to IDACORP, Inc.			55,710		388		—		56,098
Total assets as of March 31, 2023			7,789,605		203,447		(114,160)		7,878,892
Three months ended March 31, 2022:
Revenues
Revenues	Revenues		$	343,921	$	367	$	—	$	344,288
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.		46,214		46		—		46,260

Table of Contents

14. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME

The table below presents changes in components of ~~accumulated other comprehensive income (AOCI),~~AOCI, net of tax, during the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands). Items in parentheses indicate charges to AOCI.


		Defined Benefit Pension Items
		Three months ended March 31,
		2023		2022
		Defined Benefit Pension Items
		Defined Benefit Pension Items
		Defined Benefit Pension Items
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
Balance at beginning of period
Balance at beginning of period
Balance at beginning of period	Balance at beginning of period	$	(12,922)	$	(40,040)
Amounts reclassified out of AOCI	Amounts reclassified out of AOCI	146		837
Amounts reclassified out of AOCI
Amounts reclassified out of AOCI
Balance at end of period	Balance at end of period	$	(12,776)	$	(39,203)
Balance at end of period
Balance at end of period

The table below presents amounts reclassified out of components of AOCI and the income statement location of those amounts reclassified during the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands). Items in parentheses indicate increases to net income.

Amount Reclassified from AOCI

Details About AOCI

Three months ended
March 31,

2023

2022

2024

Amortization of defined benefit pension items(1)

Prior service cost

Net loss

142

1,057

Total before tax

197

1,127

Total before tax

Tax benefit(2)

(51)

(290)

Total reclassification for the period, net of tax

146

837

Total reclassification for the period, net of tax

(1) Amortization of these items is included in IDACORP's condensed consolidated statements of income ~~statements~~ in other operating expenses and in Idaho Power's condensed consolidated statements of income in other expense, net.

(2) The tax benefit is included in income tax expense in the condensed consolidated statements of income of both IDACORP and Idaho Power.

~~Table of Contents~~

15. CHANGES IN IDAHO POWER RETAINED EARNINGS

The table below presents changes in Idaho Power retained earnings during the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands).


		Three months ended March 31,
		2023		2022
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
Balance at beginning of period
Balance at beginning of period
Balance at beginning of period	Balance at beginning of period	$	1,836,547	$	1,696,304
Net income	Net income	55,710		46,214
Net income
Net income
Dividends to parent
Dividends to parent
Dividends to parent	Dividends to parent	(359)		(38,198)
Balance at end of period	Balance at end of period	$	1,891,898	$	1,704,320
Balance at end of period
Balance at end of period

3233

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the ~~Board~~board of ~~Directors~~directors of IDACORP, Inc.

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of IDACORP, Inc. and subsidiaries (the “Company”) as of March 31, ~~2023,~~2024, the related condensed consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, ~~2023~~2024 and ~~2022,~~2023, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, ~~2022,~~2023, and the related consolidated statements of income, comprehensive income, equity, and cash flows for the year then ended (not presented herein); and in our report dated February ~~16, 2023,~~15, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, ~~2022,~~2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

Boise, Idaho

May ~~4, 2023~~2, 2024

3334

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the ~~Board~~board of ~~Directors~~directors of Idaho Power Company

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of Idaho Power Company and subsidiary (the “Company”) as of March 31, ~~2023,~~2024, the related condensed consolidated statements of income, comprehensive income and cash flows for the three-month periods ended March 31, ~~2023~~2024 and ~~2022,~~2023, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, ~~2022,~~2023, and the related consolidated statements of income, comprehensive income, retained earnings, and cash flows for the year then ended (not presented herein); and in our report dated February ~~16, 2023,~~15, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, ~~2022,~~2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

/s/ DELOITTE & TOUCHE LLP

Boise, Idaho

May ~~4, 2023~~2, 2024

3435

Table of Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

In ~~Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)~~MD&A in this report, the general financial condition and results of operations for IDACORP ~~Inc.~~ and its subsidiaries ~~(collectively, IDACORP)~~ and Idaho Power Company and its subsidiary ~~(collectively, Idaho Power)~~ are discussed. While reading ~~the~~this MD&A, please refer to the accompanying condensed consolidated financial statements of IDACORP and Idaho Power. Also refer to "Cautionary Note Regarding Forward-Looking Statements" in this report for important information regarding forward-looking statements made in this MD&A and elsewhere in this report. This discussion updates the MD&A included in ~~IDACORP's and Idaho Power's~~the 2023 Annual Report, ~~on Form 10-K for the year ended December 31, 2022 (2022 Annual Report),~~ and should also be read in conjunction with the information in that report. The results of operations for an interim period generally will not be indicative of results for the full year, particularly in light of the seasonality of Idaho Power's sales volumes, as discussed below.

INTRODUCTION

IDACORP is a holding company formed in 1998 whose principal operating subsidiary is Idaho Power. IDACORP’s common stock is listed and trades on the New York Stock Exchange under the trading symbol "IDA". Idaho Power is an electric utility whose rates and other matters are regulated by the ~~Idaho Public Utilities Commission (IPUC), Public Utility Commission of Oregon (OPUC),~~IPUC, OPUC, and ~~Federal Energy Regulatory Commission (FERC).~~FERC. Idaho Power generates revenues and cash flows primarily from the sale and distribution of electricity to customers in its Idaho and Oregon service areas, as well as from the wholesale sale and transmission of electricity. Idaho Power experiences its highest retail energy sales during the summer irrigation and cooling season, with a lower peak in the winter that generally results from heating demand.

Idaho Power is the parent of ~~Idaho Energy Resources Co. (IERCo),~~IERCo, a ~~joint venturer in Bridger Coal Company (BCC),~~joint-owner of BCC, which mines and supplies coal to the Jim Bridger ~~power~~ plant ~~(Jim Bridger plant)~~ owned in part by Idaho Power. IDACORP’s other ~~significant~~notable subsidiaries include ~~IDACORP Financial Services, Inc.,~~IFS, an investor in affordable housing and other real estate tax credit investments, and Ida-West, ~~Energy Company,~~ an operator of small hydropower generation projects that satisfy the requirements of the ~~Public Utility Regulatory Policies Act of 1978 (PURPA).~~PURPA.

EXECUTIVE OVERVIEW

Management's Outlook and Company Objectives

In the ~~2022~~2023 Annual Report, IDACORP's and Idaho Power's management included a summary of their business objectives for the companies for ~~2023~~2024 and beyond, under the heading "Executive Overview" in the MD&A. As of the date of this report, management's outlook and strategy remain consistent with that discussion, as updated by some of the discussion in this MD&A. ~~Developments~~Notable developments that have occurred since that report include the following:

•Idaho Power continues to focus on timely recovery of costs and earning a reasonable return on investment. On March ~~31, 2023,~~29, 2024, Idaho Power provided notice to the IPUC of its intent to file a ~~general~~limited issue rate case in Idaho on or after ~~June 1, 2023.~~May 31, 2024.

•InIdaho Power's customer count grew 2.5 percent during the twelve months ended March ~~2023,~~31, 2024, and Idaho Power ~~executed an agreement with the Bonneville Power Administration (BPA) to transfer BPA's 24 percent interest~~reached a new winter peak demand of 2,719 MW on January 16, 2024. The prior highest winter peak demand was 2,604 MW, reached in the Boardman-to-Hemingway transmission line project to Idaho Power, bringing Idaho Power's interest in the project to 45 percent. Further, in March 2023 the Oregon Supreme Court affirmed the Energy Facility Siting Council's order granting a site certificate for the Boardman-to-Hemingway transmission line project.December 2022.

•~~In April 2023, the IPUC approved Idaho Power's application for a revised special contract for electric service between Idaho Power~~To help meet peak capacity and an existing industrial customer, Micron Technology, Inc. (Micron), modeled after Idaho Power's proposed Clean Energy Your Way program, which included the payment structure for Micron's renewable capacity credit.

•In April 2023, the IPUC approved Idaho Power's 20-year power purchase agreement with Pleasant Valley Solar, LLC to purchase the output from a planned 200 megawatt (MW) solar facility, with a scheduled in-service date ofenergy needs in 2026 and beyond, in March ~~2025. Idaho Power plans to sell that output exclusively to a large industrial customer under an agreement modeled after Idaho Power's proposed Clean Energy Your Way program.~~

•~~Also in April 2023,~~2024, Idaho Power entered into an energy and capacity market purchase agreement with an energy marketer for the right to acquire 200 MW on a ~~20-year~~daily basis during summer months beginning in 2026 for a term of at least five years, and requested approval of the agreement ~~to purchase~~from the ~~storage capacity from~~IPUC. Also, in April 2024, Idaho Power filed a ~~150-MW~~request for a CPCN in its Idaho jurisdiction for the acquisition of 150 MW of new battery storage ~~facility scheduled to be online~~assets with an expected in-service date in ~~June 2025.~~2026 and useful life of approximately 20 years. As of the date of this report, IPUC decisions regarding these requests are pending. To help address the additional capacity deficits projected for 2026 and 2027, Idaho Power ~~intends~~continues to evaluate its RFP for ~~this capacity to supplement over 200 MW of company-owned storage that it expects to be online in 2023 and 2024, and an~~ additional ~~77 MW of company-owned storage it anticipates adding in 2025, pending regulatory approval.~~resources.

•~~Idaho Power issued~~The company’s long-range planning process has identified a ~~formal request~~potential need in 2028 for ~~proposals (RFP) in April 2023, soliciting bids for new~~a combination of energy and capacity resources ~~as well as~~that provide approximately 138 MW of peak capacity and up to 555 MW of energy ~~that can be delivered via transmission, beginning in 2026. The company’s long-range~~resources. In February 2024, Idaho Power filed an application with the OPUC to approve an RFP to procure these resources and a request for the OPUC to partially waive certain competitive bidding rules.

3536

Table of Contents

planning process has identified a potential need in 2026 and 2027 for a combination of energy and capacity resources that provide approximately 350 MW of peak capacity and up to 1,100 MW of variable energy resources. The RFP provides that a portion of these resources may be transmitted via the Boardman-to-Hemingway transmission line project, which Idaho Power plans to have in-service in 2026.

Summary of Financial Results

The following is a summary of Idaho Power's net income, net income attributable to IDACORP, and IDACORP's earnings per diluted share for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands, except earnings per share amounts):


		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,

		Three months ended March 31,
		2023		2022
Idaho Power net income	Idaho Power net income	$	55,710	$	46,214
Idaho Power net income
Idaho Power net income
Net income attributable to IDACORP, Inc.
Net income attributable to IDACORP, Inc.
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	$	56,098	$	46,260
Weighted average outstanding shares – diluted	Weighted average outstanding shares – diluted	50,723		50,660
Weighted average outstanding shares – diluted
Weighted average outstanding shares – diluted
IDACORP, Inc. earnings per diluted share	IDACORP, Inc. earnings per diluted share	$	1.11	$	0.91
IDACORP, Inc. earnings per diluted share
IDACORP, Inc. earnings per diluted share

The table below provides a reconciliation of net income attributable to IDACORP for the three months ended March 31, ~~2023,~~2024, from the same period in ~~2022~~2023 (items are in millions and are before related income tax impact unless otherwise noted).

Three months ended

Net income attributable to IDACORP, Inc. - March 31, ~~2022~~2023

~~46.3~~56.1

Increase (decrease) in Idaho Power net income:

Customer growth, net of associated power supply costs and power cost adjustment mechanisms

~~2.7~~4.7

Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms

~~0.4~~ (9.1)

~~Idaho fixed cost adjustment (FCA) revenues~~

~~(1.2)~~

Retail revenues per ~~megawatt-hour (MWh)~~MWh, net of associated power supply costs, and power cost adjustment and FCA mechanisms

~~8.5~~4.5

Transmission wheeling-related revenues,

~~5.1~~ net of PCA impacts

(2.8)

Other O&M expenses

(13.8)

~~Other operations and maintenance (O&M) expenses~~Depreciation expense

— (8.6)

Other changes in operating revenues and expenses, net

~~(7.8)~~5.9

~~Increase~~Decrease in Idaho Power operating income

~~7.7~~ (19.2)

Non-operating expense, net

~~2.7~~ (1.8)

Additional ~~accumulated deferred investment tax credits (ADITC)~~ADITC amortization

~~3.8~~8.8

Income tax expense, excluding additional ADITC amortization

~~(4.7)~~3.8

Total ~~increase~~decrease in Idaho Power net income

~~9.5~~ (8.4)

Other IDACORP changes (net of tax)

~~0.3~~0.5

Net income attributable to IDACORP, Inc. - March 31, ~~2023~~2024

~~56.1~~48.2

IDACORP's net income ~~increased $9.8~~decreased $7.9 million for the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022,~~2023 due primarily to ~~higher~~lower net income at Idaho Power. At Idaho Power, customer growth increased operating income by ~~$2.7~~$4.7 million in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022,~~2023, as the number of Idaho Power customers grew by approximately ~~13,500,~~15,800, or ~~2.2~~2.5 percent, during the twelve months ended March 31, ~~2023. Usage~~2024. The benefit from customer growth was more than offset by a decrease in usage per retail customer ~~was relatively consistent~~of $9.1 million in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022,~~2023. While all retail customer classes saw a reduction in usage per customer, usage per residential customer decreased most significantly, as ~~both periods experienced comparable below-normal temperatures.~~more moderate temperatures led residential customers to use less energy for heating purposes.

The net increase in retail revenues per MWh, net of associated power supply costs, and power cost adjustment and FCA mechanisms, increased operating income by ~~$8.5~~$4.5 million in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022.~~2023. This was due ~~partially~~primarily to ~~changes~~an overall increase in Idaho ~~Power's customer sales mix, which includes separate rate tariffs based on customer class. To a greater extent,~~base rates, effective January 1, 2024, per the ~~net increase in retail revenues per MWh was due to~~terms of the ~~June 1, 2022 rate increase for Idaho Power’s Idaho retail customers related to an order from the IPUC that authorized Idaho Power to accelerate the depreciation on and recover~~

~~Table of Contents~~

~~through 2030 the net book value of coal-related assets at Idaho Power's jointly-owned Jim Bridger plant as of December 31, 2020, plus forecasted plant investments.~~2023 Settlement Stipulation. For more information on the ~~IPUC regulatory order related to the Jim Bridger Plant,~~2023 Settlement Stipulation, see Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2022~~2023 Annual Report.

Transmission wheeling-related revenues, ~~increased $5.1~~net of PCA impacts, decreased $2.8 million during the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022, resulting from Idaho Power's Open Access Transmission Tariff (OATT) rates being 1 percent higher~~2023. Total revenues earned during ~~the quarter and due to elevated energy prices in the western United States in~~ the first quarter of ~~2023~~2024 increased 12 percent compared with the first quarter of ~~2022.~~2023 due primarily to an increase in wheeling volumes; however, effective January 1, 2024, financial settlement

Table of Contents

of transmission line losses are subject to the PCA mechanism, as approved in the 2023 Settlement Stipulation, resulting in a smaller contribution to net income compared with the first quarter of 2023.

Total other O&M expenses increased $13.8 million in the first quarter of ~~2023 were consistent~~2024 compared with the first quarter of ~~2022,~~2023, primarily related to approximately $4 million of increased pension-related expenses and approximately $8 million of increase in wildfire mitigation program and related insurance expenses. Both of these increases in expenses are partially offset by increases in retail revenues, as more costs are now recovered in base rates pursuant to the 2023 Settlement Stipulation; however, revenues related to these increased costs are not collected at the same rate that the expenses are incurred in the interim periods throughout the year. Inflationary pressures on labor-related costs also contributed to the increase in other O&M expenses. On a full-year basis for 2024, Idaho Power expects other O&M expenses related to its employee pension plans and its wildfire mitigation program and related insurance to increase approximately $18 million and $30 million, respectively, compared with 2023, as more costs are now recovered in base rates pursuant to the 2023 Settlement Stipulation.

Depreciation expense increased $8.6 million during the first quarter of 2024 compared to the first quarter of 2023, due primarily to an increase in expenses due to inflationary pressures on labor-related and other costs were offset by lower expenses from planned maintenance projects compared with the same period in 2022, the timing of regulatory deferrals, and payment credits received related to a jointly-funded project.plant-in-service.

Other changes in operating revenues and expenses, net, ~~decreased~~increased operating income by ~~$7.8~~$5.9 million in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022,~~2023 due primarily to ~~the increase~~a decrease in net power supply expenses that were not deferred for future recovery in rates through Idaho Power's power cost adjustment mechanisms. ~~Higher~~More moderate wholesale natural gas and power market prices in the western United States and increased wholesale energy sales decreased Idaho Power's net power supply expenses in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022.~~2023.

Non-operating expense, net, ~~decreased $2.7~~increased $1.8 million in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022. Allowance for equity funds used during construction increased~~2023. Interest expense on long-term debt was higher in the first quarter of 2024 compared with the first quarter of 2023, due primarily to an increase in long-term debt. This increase was partially offset by an increase in AFUDC, as the average construction work in progress balance was ~~higher throughout the first quarter of 2023 compared with the first quarter of 2022.~~higher. Also, interest ~~income and benefit plan rabbi trust~~ income increased due to higher ~~market~~ interest ~~rates. These increases were partially offset by~~rates and higher ~~interest expense on long-term debt in the first quarter of 2023 compared with the first quarter of 2022.~~average cash and cash equivalent balances.

The ~~increase~~decrease in income tax expense was principally the result of ~~higher~~lower income before income taxes, ~~partially offset by~~as well as an increase in additional ADITC amortization. Based on Idaho Power's current expectations of full-year ~~2023~~2024 results, Idaho Power recorded ~~$3.8~~$12.5 million of additional ADITC amortization under its Idaho regulatory settlement stipulation during the first quarter of ~~2023. Idaho Power currently expects to amortize up to $15~~2024, but only recorded $3.75 million of additional ADITC ~~for~~amortization during the ~~full-year 2023, but did not record any additional ADITC amortization~~same period in ~~2022.~~2023.

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:

•~~Economic Conditions~~Regulation of Rates and ~~Loads~~Cost Recovery; Rate Case Filings: ~~Economic conditions impact consumer demand~~The prices that Idaho Power is authorized to charge for ~~energy, revenues, collectability~~its electric and transmission service is a critical factor in determining IDACORP's and Idaho Power's results of ~~accounts, the volume of wholesale energy sales,~~operations and financial condition. Those rates are established by state regulatory commissions and the ~~need~~FERC and are intended to ~~construct and improve infrastructure, purchase power, and implement programs to meet customer load demands. In recent years,~~allow Idaho Power ~~has seen significant growth~~an opportunity to recover its expenses and earn a reasonable return on investment. Idaho Power is focused on timely recovery of its costs through filings with its regulators, working to put in place innovative regulatory mechanisms, and prudent management of expenses and investments. The 2023 Settlement Stipulation provides for the accelerated amortization of ADITC to help achieve a minimum 9.12 percent Idaho ROE. The 2023 Settlement Stipulation also provides for the potential sharing between Idaho Power and its Idaho customers of Idaho-jurisdictional earnings in excess of a 9.6 percent Idaho ROE. The specific terms of the 2023 Settlement Stipulation are described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~number of customers in its service area. Over the twelve months ended March 31,~~ 2023 Idaho Power's customer count grew by 2.2 percent. While current inflationary and volatile economic conditions could slow the rate of customer growth in the near-term, Idaho Power expects its number of customers and, to a greater extent its load due to anticipated commercial and industrial customer growth, to increase in the foreseeable future.Annual Report.

To address the regulatory lag in recovery of costs primarily associated with Idaho Power’s current and anticipated significant infrastructure investments, including those that are intended to help meet projected near-term capacity deficits, Idaho Power plans to file a limited issue rate case in Idaho on or after May 31, 2024. Idaho Power expects the processing of a limited issue rate case in Idaho would span at least seven months before new rates would be in effect. In December 2023, Idaho Power made a general rate case filing in Oregon, which is ~~preparing its 2023 Integrated Resource Plan (IRP), its 20-year forecast of power demand and supply options.~~described more fully in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report. The 2023 preliminary IRP assumptions include significant large commercial and industrial additions in the 5-year forecasted annual growth rate, including potential load from new facilities recently announced by Meta Platforms, Inc. and Micron. Included in the below table are Idaho Power's preliminary load forecast assumptions the company anticipates using in the 2023 IRP asoutcome of the ~~date of this report, and for comparison purposes, the analogous average annual growth rates~~Oregon general rate case is pending. Idaho Power ~~used~~has reached a settlement in principle for the ~~prior two IRPs.~~

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)
2023 IRP (preliminary) 5.5% 3.7% 2.2% 1.8%
2021 IRP 2.6% 2.1% 1.4% 1.4%
2019 IRP 1.3% 1.4% 1.0% 1.2%
general rate case with the OPUC staff and other stakeholders. The settlement is not final and remains subject to completion of the related settlement stipulation, as well as approval by the OPUC.

3738

Table of Contents

Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, along with changes in the regional transmission markets that have constrained the availability of transmission outside Idaho Power’s service area to import energy during peak load periods, require Idaho Power to increase its investment in capacity resources, transmission, and distribution infrastructure. This includes the Boardman-to-Hemingway and Gateway West transmission projects, along with other capacity and energy resources contemplated by the procurement of resources described in the "Rate Base Growth and Infrastructure Investment" section below in this MD&A.

In order to meet growth in its service area, Idaho Power relies on numerous vendors to provide goods and services. Economic conditions in recent years have resulted in supply chain constraints and inflationary cost increases. Those inflationary pressures have impacted not only external costs, but also Idaho Power's internal labor costs. Idaho Power has taken measures to help ensure the availability of supply chain-constrained items that are needed to serve new and existing customers, such as ordering distribution transformers and other electrical apparatus in advance and from new suppliers. Idaho Power has also taken measures to help mitigate cost increases through supplier diversity and contract negotiation, as it works to meet the demands of continued customer and load growth amid an uncertain national and global economic environment.

•Rate Base Growth and Infrastructure Investment: The rates established by the IPUC, OPUC, and FERC 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 income taxes and other items. Over time, rate base is increased by additions to utility plant in service and reduced by depreciation 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 provide service to new customers, including major ongoing transmission projects such as the ~~Boardman-to-Hemingway~~B2H and ~~Gateway West~~GWW 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),~~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~~cases or other appropriate regulatory ~~proceeding.~~proceedings.

As noted previously, Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, along with transmission constraints, has created the need for Idaho Power to acquire significant generation and storage resources to meet energy and capacity needs over the next several years. Idaho Power expects ~~to spend~~its capital expenditures on infrastructure investments in the next five years or more ~~than $600 million from 2023 through 2027 on resource additions~~will be considerable as it works to address projected energy and capacity deficits. For more information about forecasted capital expenditures and expected rate base growth, see the "Liquidity and Capital Resources" section of this MD&A.

•~~Regulation~~Economic Conditions and Loads: Economic conditions impact consumer demand for energy, revenues, collectability of ~~Rates and Cost Recovery; General Rate Case Filing:~~ ~~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~~accounts, the volume of ~~operations and financial condition. Those rates are established by state regulatory commissions~~wholesale energy sales, and the ~~FERC~~need to construct and ~~are intended~~improve infrastructure, purchase power, and implement programs 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 prudent management of expenses and investments.meet customer load demands. In recent years, Idaho Power has ~~a regulatory settlement stipulation~~seen significant growth in the number of customers in its service area. Over the twelve months ended March 31, 2024, Idaho ~~that includes provisions for~~Power's customer count grew by 2.5 percent. While recessionary or volatile economic conditions could slow the ~~accelerated amortization~~rate of ~~ADITC to help achieve a minimum 9.4 percent Idaho-jurisdiction return on year-end equity (Idaho ROE). The settlement stipulation also provides for~~customer growth in the ~~potential sharing between~~near-term, Idaho Power expects its number of customers and, to a greater extent its ~~Idaho customers of Idaho-jurisdictional earnings in excess of 10.0 percent of Idaho ROE, which would adjust~~load due to ~~the authorized return on equity determined~~anticipated commercial and industrial customer growth, to increase in the next general rate case. The settlement stipulation has no expiration date but the minimum Idaho ROE would revert back to 95 percent of the authorized return on equity determined in the next Idaho general rate case. The specific terms of the settlement stipulation are described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2022 Annual Report.foreseeable future.

~~With~~Idaho Power's 2023 IRP assumed a forecasted annual growth in retail MWh sales of 5.5 percent and a forecasted annual growth in peak-hour demand of 3.7 percent over the upcoming 5-year period. For more information on the 2023 IRP, refer to "Resource Planning" in Item 1 - "Business" of the 2023 Annual Report. Customer growth has contributed to increases in peak loads experienced in recent years. For example, Idaho Power's highest all-time winter peak demand of 2,719 MW occurred on January 16, 2024. Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, along with changes in the regional transmission markets that have constrained the availability of transmission outside Idaho Power’s ~~current and anticipated significant infrastructure investments, including those that are intended~~service area to ~~help meet projected near-term capacity deficits,~~import energy during peak load periods, require Idaho Power ~~plans~~ to ~~file a general rate case~~increase its investment in ~~Idaho,~~capacity resources, transmission, and distribution infrastructure. This includes the B2H and GWW transmission projects, along with other capacity, energy, and transmission resource procurements, as ~~early as June 2023, with a general rate case filing~~described in ~~Oregon likely to follow~~the "Liquidity and Capital Resources" in ~~2024. To~~ this end, on March 31, 2023, Idaho Power provided notice to the IPUC of its intent to file a general rate case in Idaho on or after June 1, 2023. However, several factors impact Idaho Power’s timing and need to file general rate cases. As it looks to a potential 2023 general rate case, Idaho Power is assessing the expected increase in depreciation expense from rate-base eligible assets as they are

~~Table of Contents~~

placed into service (including its battery storage projects that it expects to be in-service in 2023), the significant amounts of capital expenditures Idaho Power has made since its last general rate case filed in 2011, the expected financing costs for capital expenditures in a higher interest-rate environment, and, to a lesser extent, the inflationary pressures on other O&M expenses described above. Idaho Power expects the processing of a general rate case in Idaho would span at least seven months before new rates would be in effect. In Oregon, Idaho Power expects that processing of a general rate case would take approximately ten months.MD&A.

•Weather ~~Conditions:~~Conditions: Weather and agricultural growing conditions have a significant impact on Idaho Power's energy sales. Relatively low winter and high summer 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 of each year, irrigation customers use electricity to operate irrigation pumps, and weather conditions, such as a prolonged winter, 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 over one-half of Idaho Power's nameplate generation capacity, precipitation levels impact the mix of Idaho Power's generation resources. When hydropower generation decreases, 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, which ~~lessen~~mitigate in large part the ~~potential earnings benefit or detriment of volatile hydrological conditions and their~~ impact on ~~overall power supply costs.~~earnings. For ~~2023,~~2024, Idaho Power expects generation from its hydropower resources to be in the range of ~~6.0~~6.5 million to ~~7.5~~8.0 million MWh, compared with ~~5.3~~actual generation of 6.5 million MWh ~~of hydropower generation~~ in ~~2022~~2023 and a 30-year average annual total of ~~7.7~~approximately 7.6 million MWh.

Table of Contents

•Mitigation of Impact of Fuel and Purchased Power ~~Expense:~~Expense: In addition to hydropower generation, Idaho Power relies significantly on natural gas and coal to fuel its generation facilities, long-term power purchase agreements (including PURPA agreements), 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 ofprogram for managing fuel ~~and power~~ 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, generation resource maintenance outages, ~~and~~ wholesale energy market ~~prices.~~prices, transmission availability, and the outcome of Idaho Power's hedging programs. The Idaho and Oregon power cost adjustment mechanisms mitigate in large part the potential adverse earnings impacts to Idaho Power of fluctuations in power supply ~~costs. Idaho Power also has an energy risk management and hedging program designed to mitigate some, but not all, of the price risk associated with volatile and elevated power supply and fuel~~ costs. However, collection from customers or return to customers of most of the difference between actual power supply costs compared with those included in retail rates is deferred to a subsequent period, which can affect Idaho Power’s operating cash flow and liquidity until those costs are recovered from or returned to customers.

•Regulatory and Environmental Compliance Costs; Coal Plant ~~Retirements:~~Retirements: 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. Moreover, environmental laws and regulations may increase the cost of constructing new facilities, may increase the cost of operating generation plants, may require that Idaho Power install additional pollution control devices at existing generating plants, may result in penalties for non-compliance, even where inadvertent, or may require that Idaho Power curtail or cease operating certain generation plants. Idaho Power expects to spend significant amounts on environmental compliance and controls for the foreseeable future. Due to economic factors in part associated with the costs of compliance with environmental regulation, Idaho Power accelerated the retirement date of its jointly-owned coal-fired generating plant in North Valmy, Nevada ~~(Valmy~~(North Valmy plant), ceasing coal-fired operations at one unit in 2019 and planning to cease its participation in coal-fired operations at the remaining unit by year-end 2025. Idaho Power's jointly-owned coal plant in Boardman, Oregon, ceased operations as planned in October 2020. In ~~June~~ 2022, the IPUC approved Idaho Power's request to allow the coal-related assets at the Jim Bridger plant to be fully depreciated and recovered by end-of-year 2030. ~~The IPUC's Bridger Order related to~~ Idaho Power's 2023 IRP identified a preferred resource portfolio and action plan that includes the conversion from coal to ~~cease its participation in coal-related operations~~natural gas of two units at the Jim Bridger plant ~~by 2028 is~~ ~~described~~in 2024, the two units at the North Valmy plant in 2026, and the remaining two units at the Jim Bridger plant in 2030. For more ~~fully~~information on the 2023 IRP, refer to "Resource Planning" in ~~Note 3 - "Regulatory Matters" to~~Item 1 – "Business" of the ~~condensed consolidated financial statements included in this report.~~2023 Annual Report.

~~Table of Contents~~

•Water Management and Relicensing of Hydropower ~~Projects:~~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. As of the date of this report, Idaho Power cannot determine the ultimate terms of, and costs associated with, any resulting long-term licenses for the HCC or American Falls hydropower facilities.

•Wildfire Mitigation ~~Efforts:~~Efforts: In recent years, the western United States has experienced an increasing ~~trend in the degree~~number of ~~annual destruction from wildfires.~~wildfires of unprecedented severity. A variety of factors have contributed 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 to-date the extent of catastrophic wildfires within its service area that have occurred in California and elsewhere in the western United States, Idaho Power is taking a proactive approach to wildfire ~~threat~~risk in its service area and transmission corridors. Idaho Power has adopted a ~~Wildfire Mitigation Plan (WMP)~~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; public safety power shutoff ~~protocols adopted in 2022;~~protocols; and evaluating the performance and effectiveness of the strategies identified in the WMP through metrics and monitoring. InIdaho Power has a regulatory ~~orders received in June 2021 and March 2023,~~mechanism that allows the ~~IPUC authorized Idaho Power~~company to defer, for future amortization, the Idaho jurisdictional share of certain actual incremental O&M expenses ~~and depreciation expense of certain capital investments~~ necessary to implement the WMP. ~~The IPUC orders related~~In January 2024, the OPUC authorized Idaho Power's request to defer the Oregon jurisdictional share of costs associated with the WMP for the 12-month period beginning December 29, 2022, and ending on December 28, 2023.

Table of Contents

The WMP regulatory deferrals are described in more detail in ~~the~~Note 3 - "Regulatory Matters" ~~section of this MD&A.~~to the consolidated financial statements included in the 2023 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, ~~2023.~~2024. In this analysis, the results for the three months ended March 31, ~~2023,~~2024, are compared with the same period in ~~2022.~~2023.

The table below presents Idaho Power’s energy sales and supply (in thousands of MWh) for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

Three months ended
March 31,

2023

2022

Retail energy sales

3,690

3,624

Retail energy sales

Wholesale energy sales

208

Energy sales bundled with renewable energy credits

353

372

Energy sales bundled with renewable energy credits

Total energy sales

4,251

4,024

Hydropower generation

1,375

1,263

Hydropower generation

Coal generation

427

819

Natural gas and other generation

880

459

Natural gas and other generation

Total system generation

2,682

2,541

Purchased power

1,900

1,782

Purchased power

Line losses

(331)

(299)

Total energy supply

4,251

4,024

Total energy supply

~~Table of Contents~~

Weather-related information for Boise, Idaho, for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, 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,
		2023	2022	Normal (2)
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
Heating degree-days(1)
Heating degree-days(1)
Heating degree-days(1)	Heating degree-days(1)	2,592	2,596	2,405
Cooling degree-days(1)	Cooling degree-days(1)	—	—	—
Cooling degree-days(1)
Cooling degree-days(1)
Precipitation (inches)	Precipitation (inches)	3.7	2.7	3.7
Precipitation (inches)
Precipitation (inches)

(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 ~~increased~~decreased 2 percent in the first quarter of ~~2023~~2024 compared with the same period in ~~2022.~~2023, primarily due to more moderate temperatures, which reduced the amount of energy per customer used for heating. The decrease in usage per customer was partially offset by customer growth, as the number of Idaho Power's customers grew by ~~2.2~~2.5 percent over the prior twelve months, contributing to the higher volumes. Usage per customer was relatively consistent in the first quarter of 2023 compared with the first quarter of 2022 as both periods experienced below-normal temperatures, which affects the amount of energy customers use for heating.months.

Total system generation increased 624 percent for the first quarter of ~~2023~~2024 compared with the same period in ~~2022, comprised of~~2023, primarily related to an increase in ~~natural gas~~hydropower generation, coal generation, and ~~hydropower generation, partially offset by decreased coal~~natural gas generation. For more information on the changes in generation, see the "Operating Expenses" section below in this MD&A.

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 below in "Power Cost Adjustment Mechanisms.~~"

Table of Contents

Power's Idaho and Oregon power cost adjustment mechanisms, which are described below in "Power Cost Adjustment Mechanisms."

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, ~~2023~~2024 and ~~2022,~~2023, and the number of customers as of March 31, ~~2023~~2024 and ~~2022.~~2023.

Three months ended
March 31,

2023

2022

Retail revenues:

Residential (includes $8,909 and $10,093, respectively, related to the FCA)(1)

188,536

169,295

Commercial (includes $276 and $283, respectively, related to the FCA)(1)

87,830

78,566

Retail revenues:

Residential (includes ($687) and $8,909, respectively, related to the FCA)(1)

Commercial (includes ($53) and $276, respectively, related to the FCA)(1)

Industrial

55,544

49,060

Industrial

Irrigation

933

1,041

Deferred revenue related to HCC relicensing AFUDC(2)

(2,119)

Deferred revenue related to HCC relicensing AFUDC(2)

Total retail revenues

330,724

295,843

Volume of retail sales (MWh)

Total retail revenues

Volume of retail sales (MWh):

Residential

1,732

1,665

Commercial

1,072

1,061

Commercial

Industrial

876

884

Irrigation

Total retail MWh sales

3,690

3,624

Number of retail customers at period end

Irrigation

Total retail sales (MWh)

Number of retail customers at period end:

Residential

520,509

508,547

Commercial

77,602

76,309

Commercial

Industrial

130

125

Irrigation

22,091

21,842

Irrigation

Total customers

620,332

606,823

Total customers

(1) The FCA mechanism is an alternative revenue program and does not represent revenue from contracts with customers.

(2) ~~As part of its January 30, 2009 general rate case order, the~~The IPUC ~~is allowing~~allows Idaho Power to recover a portion of the ~~allowance for funds used during construction (AFUDC)~~AFUDC on construction work in progress related to the HCC relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service. Idaho Power is collecting approximately $8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.

Changes in rates, changes in customer ~~usage,~~demand, customer growth, and changes in FCA mechanism revenues are the primary reasons for fluctuations in retail revenues from period to period. The primary influences on customer ~~usage~~demand of electricity are weather, economic conditions, and energy efficiency. Extreme temperatures increase sales to customers who use electricity for cooling and heating, while moderate temperatures decrease sales. Precipitation levels and the timing of precipitation during the agricultural growing season also affect sales to customers who use electricity to operate irrigation pumps. Rates are also seasonally adjusted, providing for higher rates during peak load periods, and residential customer rates are tiered, providing for higher rates based on higher levels of usage. The seasonal and tiered rate structures contribute to seasonal fluctuations in revenues and earnings.

Retail revenues increased ~~$34.9~~$12.4 million during the first quarter of ~~2023~~2024 compared with the same period in ~~2022.~~2023. The factors affecting retail revenues during the period are discussed below.

•Rates: Average customer rates, excluding amounts related to the power cost adjustment and FCA mechanisms, increased retail revenues by ~~$8.5~~$14.4 million for the first ~~three months~~quarter of ~~2023~~2024 compared with the same period in ~~2022,~~2023, due primarily to the ~~June~~January 1, ~~2022~~2024, rate increase for Idaho Power's retail customers related to the ~~Bridger Order.~~2023 Settlement Stipulation. Customer rates also include the collection from customers of amounts related to the power cost adjustment mechanisms, which increased revenues by ~~$21.6~~$15.6 million in the first quarter of ~~2023~~2024 compared with the same period of ~~2022.~~2023. The amount collected from customers in rates under the power cost adjustment mechanisms has relatively little effect on operating income as a corresponding amount is recorded as expense in the same period it is collected through rates.

•~~Customers: Customer growth of 2.2 percent during the twelve months ended March 31, 2023, increased retail revenues by $5.3 million~~ FCA revenue accrued in the first quarter of ~~2023~~2024 decreased by $9.9 million compared with the same period in 2023, as the 2023 Settlement Stipulation moved a greater portion of ~~2022.~~recovery of fixed costs into customer base rates.

Table of Contents ��

•Customers: Customer growth of 2.5 percent during the twelve months ended March 31, 2024, increased retail revenues by $8.8 million in the first quarter of 2024 compared with the same period of 2023.

•Usage: ~~Higher~~Lower usage (on a per customer basis), ~~primarily by residential customers, increased~~in all customer classes, decreased retail revenues by ~~$0.7~~$16.5 million in the first quarter of ~~2023~~2024 compared with the same period of ~~2022, as both periods experienced comparable below-normal temperatures.~~

•~~Idaho FCA Revenue~~: The FCA mechanism, applicable to Idaho residential and small commercial customers, adjusts revenue each year to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power through volume-based rates during the year. Higher usage (on a per customer basis) by residential and small commercial customers2023. Milder temperatures during the first ~~three months~~quarter of ~~2023 decreased the amount of FCA revenue accrued by $1.2 million compared with the same period in 2022.~~2024 led residential customers to use less energy per customer for heating.

Wholesale Energy Sales: Wholesale energy sales consist primarily of long-term sales contracts, opportunistic sales of surplus system energy, and sales into the energy imbalance market in the western United States, and do not include derivative transactions. The table below presents Idaho Power’s wholesale energy sales for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands, except for revenue per MWh amounts).


			Three months ended March 31,
		Three months ended March 31,							Three months ended March 31,
			2023		2022		2024	2023
Wholesale energy revenues	Wholesale energy revenues		$	30,195	$	3,035
Wholesale MWh sold	Wholesale MWh sold		208		28
Wholesale energy revenues per MWh	Wholesale energy revenues per MWh		$	145.17	$	108.39

In the first quarter of ~~2023,~~2024, wholesale energy revenues increased ~~$27.2~~$7.9 million compared with the same period of ~~2022, due primarily to an increase in~~2023, as higher wholesale energy sales volumes ~~sold and average~~were partially offset by lower wholesale ~~energy~~market prices. Wholesale energy prices were ~~higher~~lower during the first ~~three months~~quarter of ~~2023~~2024 compared with ~~2022~~2023 as ~~extreme~~more moderate winter weather resulted in ~~elevated~~lower demand and ~~higher~~lower natural gas fuel costs ~~(natural gas and coal)~~ in the wholesale markets in the region. The increase in wholesale volumes sold was also partially due to energy originally purchased under derivative forward contracts to be bundled with renewable energy credits, but the energy was ultimately sold in the wholesale markets. Those sales increased wholesale energy revenues by $16.7 million in the first quarter of 2023 and a corresponding amount was recorded in purchased power on the condensed consolidated statements of income. The financial impacts of fluctuations in wholesale energy sales are largely mitigated by Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described below in this section of the MD&A under "~~Power~~"Power Cost Adjustment Mechanisms."

Transmission Wheeling-Related Revenues: Transmission wheeling-related revenues increased ~~$5.1~~$2.6 million, or 3112 percent, during the first ~~three months~~quarter of ~~2023~~2024 compared with ~~the first three months of 2022, primarily due to elevated energy prices in the western United States. Also, Idaho Power's OATT rates were approximately 1 percent higher in~~ the first quarter of 2023, ~~compared~~primarily due to increased wheeling volumes. Effective January 1, 2024, financial settlement of transmission line losses are subject to the ~~first quarter of 2022.~~PCA mechanism, as approved in the 2023 Settlement Stipulation.

~~Energy Efficiency Program Revenues:~~ In both Idaho and Oregon, energy efficiency riders fund energy efficiency program expenditures. Expenditures funded through the riders are reported as an operating expense with an equal amount recorded in revenues, resulting in no net impact on earnings. The cumulative variance between expenditures and amounts collected through the rider is recorded as a regulatory asset or liability. A liability balance indicates that Idaho Power has collected more than it has spent and an asset balance indicates that Idaho Power has spent more than it has collected. At March 31, 2023, Idaho Power's energy efficiency rider balances were regulatory assets of $0.2 million in the Idaho jurisdiction and $0.4 million regulatory liability in the Oregon jurisdiction.

~~Table of Contents~~

Operating Expenses

Purchased Power: The table below presents Idaho Power’s purchased power expenses and volumes for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands, except for per MWh amounts).

Three months ended
March 31,
2023 2022
Expense
PURPA contracts $ 48,324 $ 39,997
Other purchased power (including wheeling) 122,769 45,427
Total purchased power expense $ 171,093 $ 85,424
MWh purchased
PURPA contracts 690 608
Other purchased power 1,210 1,174
Total MWh purchased 1,900 1,782
Average cost per MWh from PURPA contracts $ 70.03 $ 65.78
Average cost per MWh from other sources $ 101.46 $ 38.69
Weighted average - all sources $ 90.05 $ 47.94


	Three months ended March 31,
	2024		2023
Purchased power expense	$	111,899	$	171,093
MWh purchased	1,704		1,900
Average cost per MWh	$	65.67	$	90.05

Purchased power expense ~~increased $85.7~~decreased $59.2 million during the first quarter of ~~2023~~2024 compared with the same period of ~~2022. The increase in purchased power expense was~~2023, primarily due to ~~elevated~~a 27 percent decrease in average cost per MWh driven by lower wholesale energy prices in the western United States. An increase in hydropower generation, natural gas generation, and coal generation during the first quarter of 2024 led to a 10 percent decrease in energy purchased from wholesale markets to help meet customer demand.

Table of Contents

Fuel Expense: The table below presents Idaho Power’s fuel expenses and thermal generation for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands, except for per MWh amounts).

Three months ended
March 31,

2023

2022

Expense

Expense:

Coal

17,063

27,659

Natural gas

72,017

18,043

Natural gas

Total fuel expense

89,080

45,702

MWh generated

Total fuel expense

MWh generated:

Coal

427

819

Natural gas

880

459

Natural gas

Total MWh generated

1,307

1,278

Average cost per MWh - Coal

39.96

33.77

Average cost per MWh - Coal

Average cost per MWh - Natural gas

81.84

39.31

Weighted average, all sources

68.16

35.76

Weighted average, all sources

The majority of the fuel for Idaho Power’s jointly-owned coal-fired plants is purchased through long-term contracts, including purchases from BCC, a one-third owned ~~joint venture~~investment of IERCo. The price of coal from BCC is subject to fluctuations in mine operating expenses, geologic conditions, and production levels. BCC supplies ~~approximately two-thirds~~the majority of the coal used by the Jim Bridger ~~plant.~~plant and BCC does not have significant sales to third parties. Natural gas is mainly purchased on the regional wholesale spot market at published index prices. In addition to commodity (variable) costs, both natural gas and coal expenses include costs that are more fixed in nature for items such as capacity charges, transportation, and fuel handling. Period to period variances in fuel expense per MWh are noticeably impacted by these fixed charges when generation output is substantially different between the periods.

Fuel expense increased ~~$43.4~~$3.2 million, or 954 percent, in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022,~~2023, primarily due to ~~higher~~increases of 21 percent and 19 percent in coal and natural gas ~~market prices in 2023, which resulted in~~generation, respectively, and an increase in the average cost per MWh of coal generation. These increases were partially offset by a 25 percent decrease in the average costs per MWh of natural gas generation. In addition, Idaho Power's natural gas generation increased in the first quarter of 2023 compared with the first quarter of 2022, as the prior year's planned maintenance project at the Langley Gulch plant resulted in lower generation in the first quarter of 2022. Idaho Power's coal generation decreased in the first quarter of 2023 compared with the first quarter of

~~Table of Contents~~

2022, mostly due to the availability of the Langley Gulch natural gas plant and Idaho Power is optimizing dispatch of coal generation resources in an effort to help ensure adequate coal supply during its period of peak demand in 2023. To preserve coal supply for peak periods, Idaho Power relied more on natural gas-fired generation to meet customer demand during the first quarter of 2023 compared with the same period in 2022.

Included in fuel expense are losses and gains on settled financial gas hedges entered into in accordance with Idaho Power's energy risk management policy. For the first ~~three months~~quarter of 2024, losses on financial gas hedges of $24.1 million increased natural gas fuel expense, while in the first quarter of 2023, ~~and 2022,~~ gains on financial gas hedges of $23.5 million ~~and $1.5 million, respectively,~~ reduced natural gas fuel expense. Most of these realized hedging losses and gains are passed on to customers through the power cost adjustment mechanisms described below.

Power Cost Adjustment Mechanisms: Idaho Power's power supply costs (primarily purchased power and fuel expense, less wholesale energy sales) can vary significantly from year to year. Volatility of power supply costs arises from factors such as weather conditions, wholesale market prices, volumes of power purchased and sold in the wholesale markets, Idaho Power's hydropower and thermal generation volumes and fuel costs, generation plant availability, and retail loads. To address the volatility of power supply costs, Idaho Power's power cost adjustment mechanisms in the Idaho and Oregon jurisdictions allow Idaho Power to recover from customers, or refund to customers, most of the fluctuations in power supply costs. ~~The Idaho-jurisdiction power cost adjustment (PCA)~~In the Idaho jurisdiction, the PCA includes a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers (95 percent) and Idaho Power (5 percent), with the exception of PURPA power purchases and demand response program incentives, which are allocated 100 percent to customers. The Idaho deferral period, or PCA year, runs from April 1 through March 31. Amounts deferred ~~or accrued~~ during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period. However, the IPUC directed Idaho Power to spread recovery of the March 31, 2023, PCA deferral balance over a two-year period from June 1, 2023, to May 31, 2025. Because of the power cost adjustment mechanisms, the primary financial ~~impacts~~impact of power supply cost variations ~~are~~is that cash is paid out but recovery from customers does not occur until a future period, or cash that is collected is refunded to customers in a future period, resulting in fluctuations in operating cash flows from year to year.

Table of Contents

The table that follows presents the components of the Idaho and Oregon power cost adjustment mechanisms for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 (in thousands).


		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,

		Three months ended March 31,
		2023		2022
Power supply cost (deferral) accrual		$	(60,267)	$	4,483
Oregon power supply cost accrual		23		—
Idaho power supply cost accrual (deferral)
Idaho power supply cost accrual (deferral)
Idaho power supply cost accrual (deferral)
Oregon power supply cost (deferral) accrual
Oregon power supply cost (deferral) accrual
Oregon power supply cost (deferral) accrual
Amortization of prior year authorized balances
Amortization of prior year authorized balances
Amortization of prior year authorized balances	Amortization of prior year authorized balances	8,907		(4,883)
Total power cost adjustment (income statement)	Total power cost adjustment (income statement)	$	(51,337)	$	(400)
Total power cost adjustment (income statement)
Total power cost adjustment (income statement)

The power supply accruals (deferrals) ~~accruals~~ represent the portion of the power supply cost fluctuations accrued (deferred) ~~accrued~~ under the power cost adjustment mechanisms. When actual power supply costs are lower than the amount forecasted in power cost adjustment rates, most of the difference is accrued as an increase to a regulatory liability or decrease to a regulatory asset. When actual power supply costs are higher than the amount forecasted in power cost adjustment rates, most of the difference is deferred as an increase to a regulatory asset or decrease to a regulatory liability. During the first quarter of ~~2023,~~2024, purchased power costs led to ~~higher~~lower actual power supply costs compared with the forecasted amount, which resulted in ~~a significant increase in the amount~~an accrual of power supply costs ~~deferred~~ by the mechanism. The amortization of the prior year’s balances represents the offset to the amounts being collected or refunded in the current power cost adjustment year that were deferred or accrued in the prior PCA year (the ~~true-up~~balancing adjustment component of the power cost adjustment mechanism).

Other O&M Expenses: Total other O&M expenses increased $13.8 million in the first quarter of ~~2023 were consistent~~2024 compared with the first quarter of ~~2022, as an increase~~2023, primarily related to approximately $4 million of increased pension-related expenses and approximately $8 million of increased wildfire mitigation program and related insurance expenses. Both of these increases in expenses ~~due~~are partially offset by increases in retail revenues, as more costs are now recovered in base rates pursuant to ~~inflationary~~the 2023 Settlement Stipulation; however, revenues related to these increased costs are not collected at the same rate that the expenses are incurred in the interim periods throughout the year. Inflationary pressures on labor-related ~~and~~costs also contributed to the increase in other ~~costs were offset by lower expenses from planned maintenance projects, the timing of regulatory deferrals, and payment credits received related to a jointly-funded project.~~O&M expenses.

Income Taxes

IDACORP's and Idaho Power's income tax expense ~~increased $1.1~~decreased $12.6 million ~~and $0.9 million, respectively,~~ for the three months ended March 31, ~~2023,~~2024, when compared with the same period in ~~2022,~~2023, primarily due to ~~greater~~lower pre-tax income ~~net of~~and increased ADITC amortization from the regulatory mechanism described in Note 3 – “Regulatory Matters” to the condensed consolidated financial statements included in this report. For information relating to IDACORP's and Idaho Power's computation of income tax expense, see Note 2 - "Income Taxes" to the condensed consolidated financial statements included in this report.

~~Table of Contents~~

LIQUIDITY AND CAPITAL RESOURCES

Overview

Idaho Power funds its liquidity needs for capital expenditures through cash flows from operations, debt offerings, commercial paper markets, credit facilities, ~~a term loan facility,~~ and capital contributions from IDACORP. Idaho Power periodically files for rate adjustments for recovery of operating costs and capital investments to provide the opportunity to align Idaho Power's earned returns with those allowed by regulators.

As of April ~~28, 2023,~~26, 2024, IDACORP's and Idaho Power's access to debt, equity, and credit arrangements included:

•their respective $100 million and ~~$300~~$400 million revolving credit facilities;

•IDACORP's shelf registration statement filed with the ~~U.S. Securities and Exchange Commission (SEC)~~SEC on May 16, 2022, which may be used for the issuance of debt securities and common stock;

•Idaho Power's shelf registration statement filed with the SEC on May 16, 2022, which may be used for the issuance of first mortgage bonds and other debt securities; ~~$630 million~~$1.2 billion remains available for issuance pursuant to state regulatory authority; ~~and~~

•IDACORP's and Idaho Power's issuance of commercial paper, with program sizes of $100 million and $300 million, respectively. Idaho Power's commercial paper program may be increased up to the $400 million capacity of its credit facility; and

Table of Contents

•IDACORP's FSAs, which may be ~~issued up to an amount equal to the available credit capacity under their respective credit facilities.~~

~~In March 2023, Idaho Power issued the following long-term debt~~physically settled with ~~the~~common stock in exchange for net proceeds, ~~being used for general corporate purposes, including repaying outstanding commercial paper and long-term debt and funding Idaho Power's capital projects:~~

•~~$60 million~~which as of ~~5.06% first mortgage bonds, secured medium-term notes, Series N, maturing in March 2043;~~

•~~$62 million of 5.20% first mortgage bonds, secured medium-term notes, Series N, maturing in March 2053; and~~

•~~$400 million of 5.50% first mortgage bonds, secured medium-term notes, Series M, maturing in March 2053.~~

~~In March and~~ April 2023, a portion of the proceeds from the March 2023 issuances were used to repay outstanding commercial paper, $100 million in principal amount from a March 2022 term loan agreement, and $75 million in principal amount of maturing 2.5% first mortgage bonds, Series I.

26, 2024, would have been approximately $293 million.

In addition to the discussion above, which includes notable liquidity developments in 2023, more information on IDACORP's and Idaho Power's debt, equity, and credit facilities is included in Part II, Item 7 - "MD&A – Financing Programs and Available Liquidity" in the 2022 Annual Report.

IDACORP and Idaho Power monitor capital markets with a view toward ~~opportunistic~~favorable debt and equity transactions, taking into account current and potential future long-term needs. As a result, IDACORP may issue debt securities or common stock, and Idaho Power may issue first mortgage bonds or other debt securities, if the companies believe terms available in the capital markets are favorable and that issuances would be financially prudent. Idaho Power also periodically analyzes whether partial or full early redemption of one or more existing outstanding series of first mortgage bonds is desirable, and in some cases, may refinance indebtedness with new indebtedness. In January 2024, IDACORP began using original issuances of shares for the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan and also intends to use original issuances for share purchases within the Idaho Power Company Employee Savings Plan beginning in the second half of 2024. IDACORP may discontinue using original issuances of shares for these plans at any time.

Based on planned capital expenditures and other O&M expenses, the companies believe they will be able to meet capital and debt service requirements and fund corporate expenses during at least the next twelve months and thereafter for the foreseeable future with a combination of existing cash, operating cash flows generated by Idaho Power's utility business, availability under existing credit facilities, access to commercial paper, short-term, and long-term debt markets, and equity issuances.

IDACORP and Idaho Power generally seek to maintain capital structures of approximately 50 percent debt and 50 percent equity. Maintaining this ratio influences IDACORP's and Idaho Power's debt and equity issuance decisions. As of March 31, ~~2023,~~2024, IDACORP's and Idaho Power's capital structures, as calculated for purposes of applicable debt covenants, were as follows:


			IDACORP	Idaho Power
		IDACORP					IDACORP		Idaho Power
Debt	Debt		48%	49%	Debt	49%		50%
Equity	Equity		52%	51%	Equity	51%		50%

~~Table of Contents~~

IDACORP and Idaho Power generally maintain their cash and cash equivalents in highly liquid investments, such as U.S. Treasury Bills, money market funds, and bank deposits.

At March 31, ~~2023,~~2024, IDACORP and Idaho Power believed they were in compliance with all credit facility and long-term debt covenants. Further, IDACORP and Idaho Power do not anticipate they will be in violation or breach of their respective debt covenants during ~~2023.~~2024.

Operating Cash Flows

IDACORP's and Idaho Power's principal sources of cash flows from operations are Idaho Power's sales of electricity and transmission capacity. Significant uses of cash flows from operations include the purchase of fuel and power, other operating expenses, interest, income taxes, and plan contributions. Operating cash flows can be significantly influenced by factors such as weather conditions, rates and the outcome of regulatory proceedings, and economic conditions. As fuel and purchased power are significant uses of cash, Idaho Power has regulatory mechanisms in place that provide for the deferral and recovery of the majority of the fluctuation in those costs. However, if actual costs rise above the level currently allowed in retail rates, deferral balances increase (reflected as a regulatory asset), negatively affecting operating cash flows until such time as those costs, with interest, are recovered from customers.

IDACORP’s and Idaho Power’s operating cash ~~outflows~~inflows for the three months ended March 31, ~~2023,~~2024, were ~~$90~~$110 million and ~~$93~~$107 million, respectively, ~~a decrease~~an increase in cash flows from operations of ~~$183~~$200 million for IDACORP and ~~$184 million for~~ Idaho Power, when compared with the same period in ~~2022.~~2023. With the exception of cash flows related to income taxes, IDACORP's operating cash flows are principally derived from the operating cash flows from Idaho Power. Significant items that affected the companies' operating cash flows in the first three months of ~~2023~~2024 when compared with the same period in ~~2022~~2023 were as follows:

•~~a $10~~an $8 million ~~and a $9 million increase~~decrease in IDACORP and Idaho Power net income, respectively;

•changes in regulatory assets and liabilities, mostly related to the relative amounts of costs deferred and collected under the ~~Idaho~~ PCA, FCA, and energy efficiency program cost mechanisms, ~~decreased~~increased operating cash flows by ~~$64~~$89 million; and

•changes in working capital balances due primarily to timing, including fluctuations as follows:

◦the timing of collections of accounts receivable and unbilled revenues ~~decreased~~increased operating cash flows by ~~$22~~$44 million and $45 million for IDACORP and Idaho ~~Power;~~Power, respectively;

Table of Contents

◦the changes in ~~materials, supplies,~~accounts and ~~fuel stock decreased~~wages payable increased operating cash flows by $9$50 million for IDACORP and Idaho Power, which was primarily due to ~~an increase in material and supply inventory offset by the timing of purchases and consumption of coal at Idaho Power's jointly-owned coal-fired generating plants;~~

◦~~the changes in accounts and wages payable decreased operating cash flows by $67 million for IDACORP and $68 million for Idaho Power, which was primarily due to an increase~~a decrease in power supply costs and associated timing of payments; and

◦the changes in other assets and liabilities ~~which includes accrued paid time off and leave, customer deposits, accrued interest, and other miscellaneous liabilities, decreased~~increased operating cash flows by ~~$28~~$27 million for IDACORP and Idaho ~~Power.~~Power, which was primarily related to performance assurance collateral activity for margin agreements relating to wholesale commodity contracts.

Investing Cash Flows

Investing activities consist primarily of capital expenditures related to new construction of, and improvements to, Idaho Power’s ~~generation,~~power supply, transmission, and distribution facilities. IDACORP’s and Idaho Power’s net investing cash outflows for the three months ended March 31, ~~2023, were $109 million.~~2024, increased to $235 million and $234 million, respectively, decreasing cash $126 million for IDACORP and $125 million for Idaho Power, when compared with the same period in 2023. Investing cash outflows for ~~2023~~2024 and ~~2022~~2023 were primarily for construction of utility infrastructure needed to address Idaho Power’s customer growth and peak resource needs, aging plant and equipment, ~~customer growth,~~ and environmental and regulatory compliance requirements. ~~Significant items~~This was partially offset in 2024 and ~~transactions that affected investing cash flows in the first three months of~~ 2023 ~~were as follows:~~

•~~IDACORP’s and Idaho Power’s investing cash outflows for 2023 included $118 million of additions to utility plant;~~

•~~IDACORP's and Idaho Power's investing cash inflows for 2023 included $3 million~~by reimbursements from ~~Boardman-to-Hemingway~~a B2H project joint permitting ~~participants~~participant relating to a portion of the permitting ~~expenditures and a security deposit; and~~

•IDACORP's and Idaho Power's investing cash inflows for 2023 included $2 million in sales of equity securities, held in a rabbi trust, which is designated to provide funding for obligations related to Idaho Power's security plan for senior management employees.expenditures.

~~Table of Contents~~

Financing Cash Flows

Financing activities primarily provide supplemental cash for both day-to-day operations and capital requirements, as needed. IDACORP's and Idaho Power's net financing cash ~~inflows~~outflows for the three months ended March 31, 2024, were $45 million and $43 million, respectively, a decrease of $425 million for IDACORP and $466 million for Idaho Power, when compared with the same period in 2023. IDACORP and Idaho Power financing cash outflows for 2024 and 2023 were ~~$380 million~~primarily related to dividend payments. This was offset in 2023 by Idaho Power's net proceeds from issuances and ~~$423 million, respectively.~~repayment of long-term debt. Idaho Power funds liquidity needs for capital investment, working capital, managing commodity price risk, dividends, and other financial commitments through cash flows from operations, debt offerings, commercial paper markets, credit facilities, ~~a term loan facility,~~ and capital contributions from IDACORP. IDACORP funds its cash requirements, such as payment of taxes, payment of dividends, capital contributions to Idaho Power, and non-utility expenses allocated to IDACORP, through cash flows from operations, commercial paper markets, credit facilities, and sales of common ~~stock, and credit facilities. Significant items and transactions that affected financing cash flows in the first three months of 2023 were as follows:~~

•~~in March 2023, Idaho Power repaid $100 million in principal amount of a March 2022 term loan agreement;~~

•~~in March 2023, Idaho Power issued $60 million in principal amount of 5.06% first mortgage bonds, secured medium-term notes, Series N, maturing in March 2043;~~

•~~in March 2023, Idaho Power issued $62 million in principal amount of 5.20% first mortgage bonds, secured medium-term notes, Series N, maturing in March 2053;~~

•~~in March 2023, Idaho Power issued $400 million in principal amount of 5.50% first mortgage bonds, secured medium-term notes, Series M, maturing in March 2053; and~~

•~~IDACORP and Idaho Power paid dividends of $41 million and $1 million in 2023, respectively.~~stock.

Available Short-Term Borrowing Liquidity

The table below outlines available short-term borrowing liquidity as of the dates specified (in thousands).


		March 31, 2023				December 31, 2022				March 31, 2024		December 31, 2023
		IDACORP(2)		Idaho Power		IDACORP(2)		Idaho Power		IDACORP(2)	Idaho Power		IDACORP(2)	Idaho Power
Revolving credit facility	Revolving credit facility	$	100,000	$	300,000	$	100,000	$	300,000
Commercial paper outstanding	Commercial paper outstanding	—		—		—		—
Identified for other use(1)	Identified for other use(1)	—		(19,885)		—		(19,885)
Net balance available	Net balance available	$	100,000	$	280,115	$	100,000	$	280,115

(1) American Falls bonds that Idaho Power could be required to purchase prior to maturity under the optional or mandatory purchase provisions of the bonds, if the remarketing agent for the bonds iswere unable to sell the bonds to third parties.

(2) Holding company only.

On April ~~28, 2023,~~26, 2024, IDACORP ~~and Idaho Power~~ had no loans outstanding under ~~their~~its revolving credit facility and no commercial paper outstanding, and Idaho Power had no loans outstanding under its revolving credit facilities and ~~had no~~$10 million of commercial paper outstanding. ~~The table below presents additional information about short-term commercial paper borrowing during the three months ended March 31, 2023.~~

Three months ended
March 31, 2023

~~IDACORP(1)~~

~~Idaho Power~~

~~Commercial Paper:~~

~~Period end:~~

~~Amount outstanding~~

—

~~Weighted average interest rate~~

—

~~Daily average amount outstanding during the period~~

—

~~37,314~~

~~Weighted average interest rate during the period~~

—

~~4.94~~

~~Maximum month-end balance~~

—

~~110,000~~

~~(1)~~ ~~Holding company only.~~

Impact of Credit Ratings on Liquidity and Collateral Obligations

IDACORP’s and Idaho Power’s access to capital markets, including the commercial paper market, and their respective financing costs in those markets, depend in part on their respective credit ratings. There have been no changes to IDACORP's or Idaho Power's ratings by Standard & Poor’s Ratings Services or Moody’s ~~Investors Service~~ from those included in the ~~2022~~2023 Annual Report. However, any rating can be revised upward or downward or withdrawn at any time by a rating agency if it decides that the circumstances warrant the change.

In April 2024, Moody's rating outlook for IDACORP and Idaho Power was modified to negative, from stable. As of the date of this report, Idaho Power's and IDACORP's issuer credit ratings at Moody's were Baa1 and Baa2, respectively. Moody's credit ratings of Baa3 and above are widely considered to be investment grade, or prime,

4847

Table of Contents

ratings. These security ratings reflect the views of Moody's. An explanation of the significance of these ratings may be obtained from Moody's. Such ratings are not a recommendation to buy, sell, or hold securities.

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, 2023, Idaho Power had posted $62.9 million cash performance assurance collateral related to these contracts. Should Idaho Power experience a reduction~~counterparties, which are discussed further in ~~its credit rating on its unsecured debt to below investment grade, Idaho Power could be subject to requests by its wholesale counterparties to post additional performance assurance collateral,~~Part I - Item 3 "Quantitative and ~~counterparties to derivative instruments and other forward contracts could request immediate payment or demand immediate ongoing full daily collateralization on derivative instruments and contracts~~Qualitative Disclosures About Market Risk" included in net liability positions. Based upon Idaho Power’s current energy and fuel portfolio and market conditions as of March 31, 2023, the amount of additional collateral that could be requested upon a downgrade to below investment grade is approximately $44.6 million. To minimize capital requirements, Idaho Power actively monitors its portfolio exposure and the potential exposure to additional requests for performance assurance collateral through sensitivity analysis.this report.

Capital Requirements

Idaho Power's cash capital expenditures, excluding AFUDC, were ~~$114~~$254 million during the three months ended March 31, ~~2023.~~2024. The table below presents Idaho Power's estimated accrual-basis additions to property, plant, and equipment for ~~2023~~2024 (including amounts incurred to-date) through ~~2027~~2028 (in millions of dollars). The amounts in the table exclude AFUDC but include net costs of removing assets from service that Idaho Power expects would be eligible to be included in rate base in future rate case proceedings. Given the uncertainty associated with the timing of infrastructure projects and associated expenditures, actual expenditures and their timing could deviate substantially from those set forth in the table. The capital expenditure table below assumes, among other projects, construction and ownership of a number of capacity resources identified in Idaho Power's RFPs, 2021 IRP, and preliminary 2023 IRP modeling in order to safely and reliably serve the company's customers. The timing and amount of actual constructed projects and capital expenditures could be affected by Idaho Power’s ability to timely obtain labor or materials at reasonable costs, supply chain disruptions and delays, project timing, permitting, regulatory determinations, inflationary pressures, macroeconomic conditions, or other issues, including those described below.

2023 2024 2025-2027
Expected capital expenditures (excluding AFUDC) $650-$700 $800-$850 $1,500-$1,700


	2024	2025	2026-2028
Expected capital expenditures (excluding AFUDC)	$925-$975	$850-$950	$2,000-$2,500

Major Infrastructure Projects: Idaho Power is engaged in the development of a number of significant projects and has entered into arrangements with third parties concerning joint infrastructure development. The discussion below provides a summary of developments in certain of those projects since the discussion of these matters included in Part II, Item 7 - ~~"MD~~MD&A - ~~Capital~~"Capital Requirements" in the ~~2022~~2023 Annual Report. The discussion below should be read in conjunction with that report.

Resource Additions to Address Projected Energy and Capacity Deficits: As noted previously, Idaho ~~Power believes that~~Power's existing and sustained growth in customers, load, and peak demand for electricity, along with transmission constraints, ~~will create~~has created the need for Idaho Power to acquire significant generation, transmission, and storage resources to meet energy and capacity needs over the next several years.

To help meet peak needs in ~~2023~~2024 through ~~2025,~~2027, Idaho Power entered ~~into~~into:

•contracts or ~~expects to enter into contracts~~plans to purchase, own, and operate ~~280~~323 MW of battery storage assets with expected useful lives of approximately 20 ~~years, entered into~~ years;

•a 20-year agreement to purchase the storage capacity from a ~~150-MW~~150 MW battery storage ~~facility,~~facility;

•an energy and ~~also entered into~~ capacity market purchase agreement with an energy marketer for the right to acquire 200 MW on a daily basis during summer months beginning in 2026 for a term of at least five years; and

•three power purchase agreements for the combined ~~340~~425 MW output of planned third-party solar facilities with 20- to 25-year terms. ~~As described in “Regulatory Matters” of this MD&A,~~ Idaho Power plans to sell the output of two of these solar power purchase agreements totaling ~~240~~325 MW exclusively to ~~two~~a large industrial ~~customers~~customer pursuant to an agreement under ~~agreements modeled after~~ Idaho Power’s ~~proposed~~ Clean Energy Your Way program. ~~To help address the additional capacity deficits projected for 2026 through 2027, Idaho Power has issued RFPs for additional resources.~~

The capital requirements table above includes capital expenditures of more than ~~$600~~$380 million from ~~2023~~2024 through ~~2027~~2026 for resource additions to address projected energy and capacity deficits in those years. To help address the additional capacity deficits projected for 2026 and 2027, Idaho Power continues to evaluate its RFP for additional resources. Depending on factors such as RFP results, the timing of project in-service dates, estimated load and resource balances and customer growth, the nature and quantity of resources owned versus acquired under power purchase agreements or similar agreements, and the outcome of regulatory proceedings, actual expenditures and their timing could deviate substantially from Idaho Power's expected expenditures.

Boardman-to-Hemingway Transmission Line: The ~~Boardman-to-Hemingway~~B2H line, a ~~proposed~~planned 300-mile, high-voltage transmission project between a substation near Boardman, Oregon, and the Hemingway substation near Boise, Idaho, ~~would~~is expected to provide transmission service to meet future resource needs. ~~Until recently,~~Material procurement and construction subcontract bid events are in progress. As a result of delays in issuing notices to proceed from state and federal agencies and obtaining right-of-way easements, Idaho Power ~~had a joint funding agreement with PacifiCorp~~expects construction will begin no sooner than late 2024. Given those delays and ~~BPA to pursue permitting of~~ the ~~project, with~~construction period, Idaho Power ~~having an approximate 21 percent interest, BPA having an approximate 24 percent interest, and PacifiCorp having an approximate 55 percent interest in~~expects the ~~permitting phase of~~in-service date for the ~~project.~~transmission line will be no earlier than 2027.

In March 2023, BPA, PacifiCorp, and Idaho Power signed various agreements to facilitate certain asset transfers and other coordination efforts among the parties as the transmission line moves toward construction. In particular, an agreement between

4948

Table of Contents

As more fully described in the 2023 Annual Report, Idaho ~~Power and BPA transferred BPA’s total~~Power's ownership interest in the project ~~to Idaho Power, increasing Idaho Power's interest to~~is approximately 45 percent, and provided that Idaho Power will deliver transmission service to BPA's customers across southern Idaho. The agreement also required BPA to make a $10 million security payment to Idaho Power. On Idaho Power's condensed consolidated balance sheet as of March 31, 2023, the agreement increased construction work in progress by $31 million for the acquired permitting interest, cash and cash equivalents by $10 million for the additional security payment, and other non-current liabilities by $41 million for Idaho Power's obligation to pay for the permitting interest and to return the security deposit to BPA. Payments to BPA for the permitting interest are expected to be made over a 15-year period beginning 10 years after energization of the transmission line project, while the security deposit is due to be returned to BPA upon energization.

percent. Idaho Power has spent approximately ~~$160~~$268 million, including Idaho Power's AFUDC, on the ~~Boardman-to-Hemingway~~B2H project through March 31, ~~2023.~~2024. Pursuant to the terms of the joint funding arrangements, Idaho Power has received ~~$102~~$145 million in reimbursement as of March 31, ~~2023,~~2024, from project co-participants for their share of costs ~~(including $31 million related~~and continues to ~~BPA's share, which was transferred to Idaho Power in March 2023~~receive reimbursement as ~~part of the agreement described above). As of the date of this report, no material co-participant reimbursements~~costs are ~~outstanding. The remaining joint permitting participant~~incurred. PacifiCorp is obligated to reimburse Idaho Power for ~~their~~its share of any future project permitting expenditures or agreed upon early construction expenditures incurred by Idaho Power under the terms of the joint funding agreement. Idaho Power and PacifiCorp operate under a construction funding agreement filed with the FERC.

The permitting phase of the ~~Boardman-to-Hemingway~~B2H project iswas subject to federal review and approval by various federal agencies. Federal agency records of decision have been received and all lawsuits challenging the federal rights-of-way have been resolved. However, Idaho Power has not yet received the required notices to proceed from the applicable federal agencies.

In the separate State of Oregon permitting process, the state's Energy Facility Siting Council (EFSC) approved Idaho Power's site certificate onin September ~~27,~~ 2022. The Oregon Department of Energy subsequently issued a final order and site certificate. ~~Three parties filed appeals~~Idaho Power is pursuing two amendments to the ~~Oregon Supreme~~site certificate to accommodate route changes and enhance constructability. In September 2023, EFSC approved Idaho Power's first amendment request. One party in Union County Circuit Court ~~asking that court to overturn~~contested the EFSC's approval of the ~~Boardman-to-Hemingway site certificate. On March 9,~~first amendment, which Idaho Power is seeking to dismiss. The Oregon Department of Energy issued its Draft Proposed Order in April 2024 recommending approval of the second amendment. Finally, during the second quarter of 2023, the ~~Oregon Supreme Court affirmed~~IPUC, OPUC, and WPSC granted Idaho Power and PacifiCorp their respective CPCNs related to the ~~EFSC's final order approving Idaho Power's site certificate.~~construction of the B2H project.

Total cost estimates for the project are between ~~$1.1~~$1.5 billion and ~~$1.3~~$1.7 billion, including Idaho Power's AFUDC. The capital requirements table above includes approximately ~~$430~~$550 million of Idaho Power's share of estimated costs (excluding AFUDC) related to the remaining permitting phase, design, material procurement, and construction phases of the project. ~~The preliminary estimates of~~Actual construction costs could ~~change as the construction timeline nears~~differ from Idaho Power's estimates based upon Idaho Power's or its contractors' ability to timely obtain labor or materials at reasonable costs, supply chain disruptions and ~~as the project participants obtain more detailed information on construction and material costs.~~

~~In July 2021, Idaho Power awarded contracts for detailed design, geotechnical investigation, land surveying, and right-of-way option acquisition; and work commenced in the third quarter of 2021. In April 2022, Idaho Power awarded a contract for constructability consulting services.~~ ~~Given the status of ongoing permitting activities and the construction period, Idaho Power expects the in-service date for the transmission line will be no earlier than 2026.~~delays, inflationary pressures, macroeconomic conditions, or other issues.

Gateway West Transmission Line: Idaho Power and PacifiCorp are pursuing the joint development of the ~~Gateway West~~GWW project, a high-voltage transmission lines project between a substation located near Douglas, Wyoming, and the Hemingway substation located near Boise, Idaho. In 2012, Idaho Power and PacifiCorp entered into a joint funding agreement for permitting of the project. Idaho Power has expended approximately ~~$53~~$61 million, including Idaho Power's AFUDC, for its share of the permitting phase of the project through March 31, ~~2023.~~2024. As of the date of this report, Idaho Power estimates the total cost for its share of the project (including both permitting and construction) to be between ~~$300~~$900 million and ~~$500 million,~~$1.1 billion, including Idaho Power's AFUDC. The estimated cost range is based on assumptions about Idaho Power participation levels in the construction of certain project segments and any changes in those assumptions or in Idaho Power's actual participation could affect future estimates and actual project costs. The capital requirements table above includes approximately ~~$40~~$300 million of Idaho Power's share of estimated costs (excluding AFUDC) for the permitting phase of the project and early construction costs, based on Idaho Power's current estimate that it may commence construction of applicable segments during that time period. Actual construction costs could differ from Idaho Power's estimates based upon the ability of Idaho Power, PacifiCorp, or their respective contractors to timely obtain labor or materials at reasonable costs, supply chain disruptions and delays, inflationary pressures, macroeconomic conditions, or other issues.

The permitting phase of the ~~Gateway West~~GWW project was subject to review and approval of the ~~U.S.~~ Bureau of Land Management (BLM). The BLM has published its records of decision for all segments of the transmission line. In late 2020, PacifiCorp completed construction and commissioned a 140-mile segment of ~~their~~its portion of the project in Wyoming. In March 2023, PacifiCorp initiated the pre-construction phase of 620 miles of 500-kV transmission line from the Populus substation near Downey, Idaho, to the Hemingway substation near ~~Melba,~~Boise, Idaho. Idaho Power and PacifiCorp continue to coordinate the timing of next steps to best meet customer and system ~~needs.~~needs including potentially modifying the ownership structure of a few segments of the project.

Defined Benefit Pension Plan Contributions

Idaho Power has no minimum contribution requirement to its defined benefit pension plan in ~~2023~~2024 and during the three months ended March 31, ~~2023,~~2024, Idaho Power made no contributions. ~~In April 2023, Idaho Power made a $10 million contribution to its pension plan.~~ Idaho Power is considering contributing up to ~~an additional~~ $30 million to its pension plan during ~~2023~~2024 in a

~~Table of Contents~~

continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions and to mitigate the cost of being in an underfunded position. The primary impact of pension contributions is on the timing of cash flows, as the timing of cost recovery lags behind contributions.

Table of Contents

Contractual Obligations

IDACORP’s and Idaho Power’s contractual cash obligations have not materially changed during the three months ended March 31, ~~2023,~~2024, except as disclosed in Note 5 – “Long-Term Debt” and Note 8 – “Commitments” to the condensed consolidated financial statements included in this report.

Dividends

The amount and timing of dividends paid on IDACORP’s common stock are within the discretion of IDACORP’s board of directors. IDACORP's board of directors reviews the dividend rate periodically to determine its appropriateness in light of IDACORP’s current and long-term financial position and results of operations, capital requirements, rating agency considerations, contractual and regulatory restrictions, legislative and regulatory developments affecting the electric utility industry in general and Idaho Power in particular, competitive conditions, and any other factors the board of directors deems relevant. The ability of IDACORP to pay dividends on its common stock is generally dependent upon dividends paid to it by its subsidiaries, primarily Idaho Power.

For additional information relating to IDACORP and Idaho Power dividends, including restrictions on IDACORP’s and Idaho Power’s payment of dividends, see Note 6 - “Common Stock” to the condensed consolidated financial statements included in this report.

Off-Balance Sheet Arrangements

IDACORP's and Idaho Power's off-balance sheet arrangements have not changed materially from those reported in the MD&A in the ~~2022~~2023 Annual Report.

REGULATORY MATTERS

Introduction

Idaho Power is under the jurisdiction (as to rates, service, accounting, and other general matters of utility operation) of the IPUC, the OPUC, and the FERC. The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers. Idaho Power is also under the regulatory jurisdiction of the IPUC, the OPUC, and the ~~Wyoming Public Service Commission~~WPSC as to the issuance of debt and equity securities. As a public utility under the Federal Power Act, Idaho Power has authority to charge market-based rates for wholesale energy sales under its FERC tariff and to provide transmission services under its ~~OATT.~~Open Access Transmission Tariff. Additionally, the FERC has jurisdiction over Idaho Power's sales of transmission capacity and wholesale electricity, hydropower project relicensing, and system reliability, among other items.

Idaho Power develops its regulatory filings taking into consideration short-term and long-term needs for rate relief and several other factors that can affect the structure and timing of those filings. These factors include in-service dates of major capital investments, the timing and magnitude of changes in major revenue and expense items, and customer growth rates, as well as other factors.

Idaho Power's most recent general rate cases in Idaho and Oregon were filed during ~~2011, and~~2023. The IPUC approved a settlement stipulation (2023 Settlement Stipulation) in ~~2012, large single-issue~~December 2023 for rates that went into effect for Idaho-jurisdiction customers on January 1, 2024. In March 2024, Idaho Power provided notice to the IPUC of its intent to file a limited issue rate ~~cases~~case in Idaho on or after May 31, 2024.

The general rate case in Oregon is ongoing. As of the date of this report, Idaho Power is unable to predict the outcome of the general rate case. While Idaho Power has reached a settlement in principle for the ~~Langley Gulch power plant resulted~~general rate case with the OPUC staff and other stakeholders, the settlement is not final and remains subject to completion of the related settlement stipulation, as well as approval by the OPUC. If approved by the OPUC, new rates for Oregon-jurisdiction customers would become effective in October 2024 or later. Refer to Note 3 - "Regulatory Matters" to the ~~resetting of base rates~~condensed consolidated financial statements included in ~~both Idaho and Oregon. Idaho Power also reset its base-rate power supply expenses in~~this report for additional information relating to the ~~Idaho jurisdiction for purposes of updating the collection of costs through retail rates in 2014 but without a resulting net increase in rates. The IPUC and OPUC have also approved base~~Oregon general rate ~~changes in single-issue cases subsequent to 2014.~~case.

Between general rate cases, Idaho Power relies upon customer growth, aan FCA mechanism, power cost adjustment mechanisms, tariff riders, limited issue rate proceedings, and other mechanisms to mitigate the impact of regulatory lag, which refers to the period of time between making an investment or incurring an expense and recovering that investment or expense and earning a return. Management's regulatory focus in recent years has been largely on regulatory settlement stipulations and the design of rate mechanisms. With Idaho Power’s current and anticipated significant infrastructure investments, including those that are intended to help meet projected near-term capacity deficits, Idaho Power plans to file a general rate case in Idaho as early as June 2023, with a general rate case filing in Oregon likely to follow in 2024. To this end, on March 31, 2023, Idaho Power provided notice to the IPUC its intent to file a general rate case in Idaho on or after June 1, 2023.

5150

Table of Contents

The outcomes of significant proceedings are described in part in this report and further in the ~~2022~~2023 Annual Report. In addition to the discussion below, which includes notable regulatory developments since the discussion of these matters in the ~~2022~~2023 Annual Report, refer to Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report for additional information relating to Idaho Power's regulatory matters and recent regulatory filings and orders.

Notable Pending Retail Rate or Revenue Changes

During ~~2023,~~2024, Idaho Power filed applications requesting orders authorizing the rate or revenue changes summarized in the table below.

Description

Status

Estimated ~~Annual Rate~~ Impact(1)

Notes

~~Power Cost Adjustment Mechanism~~PCA - Idaho

Filed April ~~14, 2023;~~15, 2024; Pending

$~~200.2~~35.7 million PCA ~~increase~~decrease for the period from June 1, ~~2023,~~2024, to May 31, ~~2024~~2025

The income statement impact of revenue changes associated with the ~~Idaho~~ PCA mechanism is largely offset by associated increases and decreases in actual power supply costs and amortization of deferred power supply costs. The rate ~~increase~~decrease primarily reflects ~~higher costs associated with market energy and natural gas prices, combined with limited coal supply.~~forecasted improved hydropower generation.

~~Fixed Cost Adjustment Mechanism~~FCA - Idaho

Filed March 15, ~~2023;~~2024; Pending

$~~10.1~~11.7 million FCA ~~decrease~~increase for the period from June 1, ~~2023,~~2024, to May 31, ~~2024~~2025

The FCA is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by partially separating (or decoupling) the recovery of fixed costs from the volumetric kilowatt-hour charge and instead linking it to a set amount per customer.

Annual Power Cost Update - Oregon

Filed March ~~24, 2023;~~25, 2024; Pending

$~~9.0~~6.9 million APCU ~~increase~~decrease for the period from June 1, ~~2023,~~2024, to May 31, ~~2024~~2025

The rate ~~increase~~decrease reflects ~~continued high natural gas prices, combined with limited coal~~increased hydropower generation and ~~increased~~decreased forward market electric prices.

(1) The annual amount collected in rates is typically not recovered on a straight-line basis (i.e., 1/12th per month), and is instead recovered in proportion to retail sales volumes.

Idaho Earnings Support and Sharing from Idaho Settlement Stipulation

A May 2018 Idaho settlement stipulation related to tax reform ~~(May 2018 Idaho Tax Reform~~(2018 Settlement Stipulation) isand the 2023 Settlement Stipulation are each described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2022~~2023 Annual Report. The 2023 Settlement Stipulation modified the 2018 Settlement Stipulation in part. IDACORP and Idaho Power believe that the terms allowing additional amortization of ADITC in the settlement stipulations provide the companies with a greater degree of earnings stability than would be possible without the terms of the stipulations in effect. Based on its estimate of full-year ~~2023~~2024 Idaho ROE, in the first quarter of ~~2023,~~2024, Idaho Power recorded ~~$3.75~~$12.5 million in additional ADITC amortization under the ~~May 2018 Idaho Tax Reform Settlement Stipulation.~~settlement stipulations. Accordingly, at March 31, ~~2023, $41.25~~2024, $73.5 million of additional ADITC remains available for future use. Idaho Power recorded no additional ADITC amortization or provision against revenues for sharing of earnings with customers during the first quarter of 2022, based on its then-current estimate of full-year 2022 Idaho ROE.

Change in Deferred (Accrued) Net Power Supply Costs and the Power Cost Adjustment Mechanisms

Deferred (accrued) power supply costs represent certain differences between Idaho Power's actual net power supply costs and the costs included in its retail rates, the latter being based on annual forecasts of power supply costs. Deferred (accrued) power supply costs are recorded on the balance sheets for future recovery or refund through customer rates.

Idaho Power's power cost adjustment mechanisms in its Idaho and Oregon jurisdictions address the volatility of power supply costs and provide for annual adjustments to the rates charged to retail customers. The power cost adjustment mechanisms and associated financial impacts are described in "Results of Operations" in this MD&A and in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report. With the exception of power supply expenses incurred under PURPA and certain demand response program costs that are passed through to customers substantially in full, the ~~Idaho~~ PCA mechanism allows Idaho Power to pass through to customers 95 percent of the differences in actual net power supply expenses as compared with base net power supply expenses, whether positive or negative. Thus, the primary financial statement impact of power supply cost deferrals or accruals is that the timing of when cash is paid out for power supply expenses differs from when those costs are recovered from customers, impacting operating cash flows from year to year.

5251

Table of Contents

As noted in the table above, in April ~~2023~~,2024, Idaho Power filed an application with the IPUC requesting a $~~200.2~~35.7 million net~~increase~~ decrease in PCA revenues, effective for the ~~2023-2024~~2024-2025 PCA collection period from June 1, ~~2023,~~2024, to May 31, ~~2024.~~2025. The net ~~increase~~decrease in PCA revenues reflects ~~higher market energy and natural gas prices, combined with limited low-cost coal supply~~improved hydropower generation. To reduce potential rate impacts on customers, the IPUC could take rate mitigation measures, such as spreading the recovery of the requested increase over a two-year period. The IPUC has not taken such measures in the past when comparable rate increases were approved, but if taken, rate mitigation measures could affect the timing of Idaho Power's cash recovery of its PCA regulatory asset. As of the date of this report, the IPUC has not yet issued an order on the application.

The following table summarizes the change in deferred (accrued) net power supply costs during the three months ended March 31, ~~2023~~2024 (in millions).

Idaho Oregon Total
Deferred net power supply costs at December 31, 2022 $ 128.7 $ 0.6 $ 129.3
Current period net power supply costs deferred (accrued) 60.3 (0.1) 60.2
Prior amounts (collected) refunded through rates (9.0) 0.1 (8.9)
SO2 allowance and renewable energy certificate sales
(6.8) (0.3) (7.1)
Interest and other 1.5 — 1.5
Deferred net power supply costs at March 31, 2023 $ 174.7 $ 0.3 $ 175.0


	Idaho		Oregon		Total
Balance at December 31, 2023	$	115.6	$	(1.3)	$	114.3
Current period net power supply costs (accrued) deferred	(0.9)		0.5		(0.4)

Prior amounts (collected) refunded through rates	(21.9)		(0.1)		(22.0)
Renewable energy certificate sales	(10.4)		(0.4)		(10.8)
Interest and other	1.6		—		1.6
Balance at March 31, 2024	$	84.0	$	(1.3)	$	82.7

~~Oregon~~Integrated Resource Plan and Resource Procurement ~~Filing~~Filings

Idaho Power filed its most recent IRP with the IPUC and OPUC in September 2023, as described in the 2023 Annual Report.

The State of Oregon has competitive bidding rules regarding a public utility's procurement of ~~resources~~.resources. However, as allowed by the ~~OPUC~~rules in certain cases, Idaho Power is pursuing ~~an exception~~exceptions for ~~2023 resource needs, and plans to pursue additional exceptions to the competitive bidding rules for certain projects to meet the~~its identified ~~resource needs in~~ 2024 and ~~2025.~~

2025 resource needs. In ~~March~~July 2023, ~~following initial review by an independent evaluator appointed by~~ the OPUC issued an order approving issuance of Idaho ~~Power released a draft request for proposals~~Power's RFP to procure resources for its anticipated energy and capacity needs in 2026 and 2027. ~~Under~~Following issuance of the ~~Oregon competitive bidding rules,~~RFP and evaluation of bids received, in February 2024, the ~~draft request~~OPUC issued an order acknowledging Idaho Power's shortlist of bids for ~~proposals is subject to further modification and OPUC approval before becoming final.~~

~~Jim Bridger Power Plant Base Rate Adjustment and Recovery~~the RFP.

In ~~June 2022,~~March and April 2024, Idaho Power filed applications with the IPUC ~~issued an order approving, with modifications, Idaho Power’s amended~~for two of the bids from the RFP. In the March 2024 application, requesting authorization to (1) accelerate depreciation for the Jim Bridger plant, to allow the coal-related plant assets to be fully depreciated and recovered by December 31, 2030, (2) establish a balancing account to track the incremental costs, benefits, and required regulatory accounting associated with ceasing participation in coal-fired operations at the Jim Bridger plant, and (3) increase customer rates related to the associated incremental annual levelized revenue requirement (Bridger Order). The Bridger Order and associated accounting are described in Note 3 – “Regulatory Matters” to the condensed consolidated financial statements included in this report. Idaho Power ~~plans~~requested that the IPUC approve a market purchase agreement with an energy marketer. to ~~cease participation~~purchase 200 MW of firm capacity for specified periods of time. In the April 2024 application, Idaho Power applied for a CPCN to acquire and own 150 MW of battery storage with an expected useful life of 20 years. As of the date of this report, the IPUC's decisions in ~~all coal-related operations at the Jim Bridger plant by 2028.~~

~~Wildfire Mitigation Cost Deferral~~these matters are pending.

In June 2021, the IPUC authorized Idaho Power to defer for future amortization incremental O&M and depreciation expense of certain capital investments necessary to implement the company's WMP. The IPUC also authorized Idaho Power to record these deferred expenses as a regulatory asset until the company can request amortization of the deferred costsaddition, in a future IPUC proceeding, at which time the IPUC will have the opportunity to review actual costs and determine the amount of prudently incurred costs that Idaho Power can recover through retail rates. In its 2021 application with the IPUC, Idaho Power projected spending approximately $47 million in incremental wildfire mitigation-related O&M and roughly $35 million in wildfire mitigation system-hardening incremental capital expenditures over a five year period. The IPUC authorized a deferral period of five years, or until rates go into effect after Idaho Power's next general rate case, whichever is first. As of March 31, 2023, Idaho Power’s deferral of Idaho-jurisdiction costs related to the WMP was $34.8 million.

During the 2021 and 2022 wildfire seasons, Idaho Power identified needs for expanded mitigation measures by gaining additional insights and knowledge on wildfires and wildfire mitigation activities. In October 2022,February 2024, Idaho Power filed an ~~updated WMP~~application with the ~~IPUC along with~~OPUC to approve an ~~application requesting authorization~~RFP to defer an estimated $16 million of newly identified incremental costs expected to be incurred between 2022 and 2025 associated with expanded wildfire mitigation efforts. In March 2023, the IPUC approvedprocure resources for Idaho Power's ~~updated WMP~~anticipated energy and capacity needs in 2028 and a request for the OPUC to ~~defer additional incremental costs.~~

~~Table~~partially waive certain competitive bidding rules. As of ~~Contents~~

the date of this report, the OPUC's decision is pending.

Large Customer Rate Proceedings

Brisbie, LLC (Brisbie) Data Center: In ~~December 2021, Idaho Power filed an application with~~April 2023, the IPUC ~~for approval of a special contract for electric service for~~approved an arrangement under the Clean Energy Your Way program through which a new large load customer, Brisbie, ~~LLC (Brisbie)~~a wholly-owned subsidiary of Meta Platforms, Inc., would purchase from Idaho Power energy for a new 960,000 square-foot enterprise data center. The energy to be purchased by Brisbie is anticipated to be generated by a ~~wholly-owned subsidiary~~to-be-constructed 200 MW solar facility pursuant to a long-term power purchase agreement between Idaho Power and a third party, as well as additional renewable resource projects to be developed. The 200 MW solar facility is scheduled to begin operating as early as March 2025. In January 2024, Idaho Power filed for IPUC approval of ~~Meta Platforms, Inc. Idaho regulations require any utility customer with~~ an ~~average load exceeding 20 MW to enter into a special~~additional contract with ~~Idaho Power. Brisbie,~~a 125 MW solar project to be online in addition to its large load service requirements in excess of 20 MW, has a sustainability objective to support 100 percent of its operations with new renewable resources. Under the proposed special contract, Idaho Power would procure enough renewable resources to provide Brisbie with 100 percent renewable energy on an annual basis for Brisbie’s facility. In its application, Idaho Power requested authority to procure the necessary resources contemplated within its agreement with Brisbie without seeking IPUC approval for each such procurement and requested assurance from the IPUC that each such resource procurement would receive the same ratemaking treatment outlined in the case, unless otherwise modified in a subsequent proceeding.December 2026. As of the date of this report, the IPUC's decision in this matter is pending.

In November 2022, Idaho Power filed an application with the IPUC requesting approval of an arrangement under which Brisbie would purchase from Idaho Power energy generated by a to-be-constructed 200-MW solar facility pursuant to a long-term power purchase agreement between Idaho Power and Pleasant Valley Solar, LLC. The solar facility is scheduled to begin operating as early as March 2025. The application is modeled after the Clean Energy Your Way program described in the 2022 Annual Report. In April 2023, the IPUC approved Idaho Power's application for the long-term power purchase agreement.

~~Micron Dedicated Renewable Resource~~: In March 2022, Idaho Power filed an application with the IPUC requesting approval of a revised special contract for electric service between Idaho Power and Micron. The application included an arrangement under which Micron would be the purchaser from Idaho Power of the energy generated by a to-be-constructed 40-MW solar facility pursuant to a 20-year power purchase agreement between Idaho Power and a third party. The solar facility is scheduled to begin operating as early as June 2023. Idaho Power also requested in the application revised electric service rates for Micron that include new energy rates that incorporate the solar generation and compensation for capacity value and excess renewable energy generation. The application is modeled after the Clean Energy Your Way program described in the 2022 Annual Report. In August 2022, the IPUC issued an order approving Idaho Power’s application, with modifications. In December 2022, Idaho Power made a compliance filing requesting approval of Idaho Power's proposed payment structure for Micron's renewable capacity credit, and in April 2023, the IPUC approved the compliance filing.

~~Western Resource Adequacy Program~~

In March 2023, Idaho Power filed an application with the IPUC requesting that the IPUC issue an order acknowledging the potential for long-term cost savings associated with Idaho Power's participation in the Western Resource Adequacy Program (WRAP), and allowing the company to recover WRAP-associated costs in a future rate proceeding. The WRAP is a regional reliability and compliance program being developed in western North America with the intent of providing a region-wide approach for assessing and addressing resource adequacy and reliability. Idaho Power anticipates that by participating in the WRAP it can avoid paying higher prices for energy in the open market. In addition to the potential cost savings, Idaho Power anticipates its participation in the WRAP to provide the company with insight into regional resource adequacy and the ability to procure energy and capacity in times of extreme need. As of the date of this report, the IPUC's determination in this matter is pending.

~~Customer-Owned Generation Filing~~

Customer-owned generation enables customers to install solar panels or other on-site energy-generating resources and connect them to Idaho Power’s grid. If a customer requires more energy than its system generates, it uses energy supplied by Idaho Power’s grid and infrastructure. If a customer's system generates more energy than the customer uses, the energy is transferred to the grid and Idaho Power applies a corresponding kilowatt-hour (kWh) credit to the customer’s bill. In May 2018, the IPUC issued an order authorizing the creation of two new customer classes for residential and small commercial customers who install their own on-site generation, with no change to pricing or compensation. Idaho Power has initiated several cases with the IPUC related to studying the costs and benefits of customer-owned generation on Idaho Power’s system, and exploring potential modifications to the customer-owned generation pricing structure. The IPUC issued orders in December 2019 and February 2020 directing Idaho Power to (1) complete additional studies related to the costs and benefits of customer generation before changes to the compensation structure are implemented, and (2) continue to allow residential and small commercial customers with on-site generation installed prior to December 20, 2019, to be subject to the compensation and billing structure in place on that date until December 20, 2045. In December 2020, the IPUC issued an order establishing a 25-year grandfathering term for large commercial, industrial, and irrigation customers, similar to the terms approved for the residential and small commercial customer classes.

~~Table of Contents~~

In June 2021, Idaho Power filed an application requesting that the IPUC initiate the multi-phase process for a comprehensive study of the costs and benefits of on-site generation as directed by previous IPUC orders. In December 2021, the IPUC issued an order requiring Idaho Power to complete the comprehensive study on the costs and benefits of on-site generation based on the IPUC’s study framework findings and conclusions. In June 2022, Idaho Power filed the comprehensive study and in December 2022, the IPUC issued an order that acknowledged the company's study and directed Idaho Power to file a new case requesting to implement changes to the structure and design of its on-site generation program. In May 2023, Idaho Power filed a new case as directed by the IPUC, requesting the IPUC to implement changes for non-grandfathered customers starting January 1, 2024, including: 1) a change from net monthly to real-time net billing, which would better measure customers’ actual reliance on the grid; 2) a change in the excess exported energy credit from a kWh credit ranging in value of 5 to 12 cents, depending on the customer class, to a time-differentiated financial bill credit ranging from approximately 5 to 20 cents per kWh that would be updated annually; and 3) a modification to the eligibility cap for large commercial, industrial and irrigation customers.

~~Renewable and Other Energy Contracts~~

Idaho Power has contracts for the purchase of electricity produced by third-party owned generation facilities, most of which produce energy with the use of renewable generation sources such as wind, solar, biomass, small hydropower, and geothermal. The majority of these contracts are entered into as mandatory purchases under PURPA. As of March 31, 2023, Idaho Power had contracts to purchase energy from 129 online PURPA projects. An additional four contracts are with online non-PURPA projects, including the Elkhorn Valley wind project with a 101-MW nameplate capacity and the Jackpot Solar project with a 120-MW nameplate capacity.

The following table sets forth, as of March 31, 2023, the resource type and nameplate capacity of Idaho Power's signed agreements for power purchases from PURPA and non-PURPA generating facilities. These agreements have original contract terms ranging from one to 35 years.

Resource Type On-line (MW) Under Contract but not yet On-line (MW) Total Projects under Contract (MW)
PURPA:
Wind 627 — 627
Solar 316 74 390
Hydropower 150 1 151
Other 44 — 44
Total 1,137 75 1,212
Non-PURPA:
Wind 101 — 101
Geothermal 35 — 35
Solar 120 340 460
Total 256 340 596

The PURPA-qualifying facility projects not yet online include one hydropower project that is scheduled to be online in 2023, and three PURPA-qualifying facility solar projects scheduled to be online in 2024. ~~Three non-PURPA solar projects, for 40 MW, 100 MW, and 200 MW, are scheduled to be online in 2023, 2024, and 2025, respectively. In April 2023,~~ ~~Idaho Power also entered into an agreement, pending regulatory approval, to purchase the storage capacity from a 150-MW battery storage facility, scheduled to be online in June 2025.~~

Relicensing of Hydropower Projects

HCC Relicensing: In connection with Idaho Power's major efforts to relicense the HCC, Idaho Power's largest hydropower complex, as described in more detail in the ~~2022~~2023 Annual Report in Part II, Item 7 - MD&A – "Liquidity and Capital Resources" and "Regulatory Matters," in July 2020, Idaho Power submitted to the FERC ~~in July 2020~~ its supplement to the final license ~~application. The supplement incorporated~~application, incorporating the settlement agreement reached between Idaho and Oregon on the ~~Clean Water Act (CWA) Section 401 certifications, which precipitated the states issuing final~~ CWA Section 401 ~~certifications in May 2019. The states of Idaho and Oregon also submitted the CWA~~

~~Table of Contents~~

~~Section 401 certifications to the FERC as part of the relicensing process.~~certifications. The supplement included feedback on proposed modifications of the 2007 final ~~environmental impact statement (EIS)~~EIS for the HCC, as well as an updated cost analysis of the HCC and a request that the FERC issue a 50-year license and initiate a supplemental ~~National Environmental Policy Act (NEPA)~~NEPA process at the FERC. ~~Idaho Power prepared draft biological assessments in consultation with the U.S. Fish and Wildlife Service (USFWS)~~and the National Marine Fisheries Service (NMFS) and filed those with the FERC in October 2020. The draft biological assessments provide information to the USFWS and the NMFS that is necessary to issue their biological opinion as required under the Endangered Species Act (ESA). Since December 2020, Idaho Power has responded to sixteen additional information requests issued by the FERC staff to aid in the FERC's analysis.

In June 2022, the FERC issued a notice of intent to prepare a supplemental EIS in accordance with NEPA. The FERC indicated that the supplemental EIS would address the new and revised measures proposed by the CWA 401 certification settlement, the conditions contained in the Oregon and Idaho water quality certifications, and the information provided in the draft biological assessments. The FERC also ~~reinitiated~~reinstated informal consultation with the USFWS and the ~~NMFS~~National Marine Fisheries Service under section 7 of the ESA. In ~~the notice of intent,~~October 2023, the FERC ~~predicted that~~issued a notice revising the schedule for completing the supplemental EIS. Under the revised schedule, the draft

Table of Contents

supplemental EIS ~~would~~was targeted to be published in ~~June 2023~~February 2024 and the final supplemental EIS in ~~December 2023.~~November 2024. On April 29, 2024, the FERC notified Idaho Power that it is the FERC's intention to revise the schedule such that the draft and final supplemental EIS would be issued no later than July 2024 and February 2025, respectively.

Relicensing costs of $469 million (including AFUDC) for the HCC were included in construction work in progress at March 31, 2024. As of the date of this report, the IPUC has authorized Idaho Power to include in its Idaho-jurisdiction rates approximately $8.8 million annually of AFUDC relating to the HCC relicensing project. Collecting these amounts currently will reduce future collections when the HCC relicensing costs are approved for recovery in base rates. As of March 31, 2024, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was $234 million.

As of the date of this report, Idaho Power believes issuance of a new HCC license by the FERC will be in 2025 or thereafter. Idaho Power is unable to predict the exact timing that the FERC will issue a new license order or the ultimate capital investment and ongoing operating and maintenance costs Idaho Power will incur in complying with a new license. Idaho Power estimates that the annual costs it will incur to obtain a new long-term license for the HCC, including AFUDC but excluding costs expected to be incurred for complying with the license after issuance, are likely to range from ~~$30~~$35 million to ~~$40~~$45 million until issuance of the license. ~~Subsequent to the~~Upon issuance of a ~~new~~long-term license, Idaho Power expects ~~to incur increased~~that the annual capital expenditures and operating and maintenance ~~costs to comply~~expenses associated with compliance with the ~~requirements~~terms and conditions of ~~any new~~the long-term license ~~and would seek to recover those increased costs through regulatory proceedings. Although~~could also be substantial. In December 2016, Idaho Power ~~is unable to predict~~filed an application with the ~~exact timing~~IPUC requesting a determination that the FERC will issue a new license or the ultimate capital investment and ongoing operating and maintenance costs Idaho Power will incur in complying with any new license, as of the date of this report, Idaho Power believes issuance of a new HCC license by the FERC will be in 2024 or thereafter.

~~Relicensing costs for~~ Idaho Power's hydropower projects are recorded as construction work in progress until new multi-year licenses are issued by the FERC, at which time the charges are transferred to electric plant in service. Idaho Power expects to seek recoveryexpenditures of $220.8 million through year-end 2015 on relicensing ~~costs and costs related to a new long-term license through the regulatory process. Relicensing costs~~ of ~~$432 million (including AFUDC) for~~ the HCC were ~~included~~prudently incurred, and thus eligible for future inclusion in ~~construction work~~retail rates in ~~progress at March 31, 2023. As of the date of this report,~~a future rate proceeding. In April 2018, the IPUC ~~authorizes~~issued an order approving a settlement stipulation signed by Idaho Power, ~~to include~~the IPUC staff, and a third-party intervenor recognizing that a total of $216.5 million in ~~its Idaho jurisdiction~~expenditures were reasonably incurred, and therefore should be eligible for inclusion in customer rates $8.8 million of AFUDC annually relating to the HCC relicensing project. Collecting these amounts currently will reduce future collections when HCC relicensing costs are approved for recovery in base rates. As of March 31, 2023, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was approximately $213 million.at a later date.

American Falls Relicensing: In April 2020, the FERC formally initiated the relicensing of the American Falls hydropower facility, which is Idaho Power's largest hydropower facility outside of the HCC, with a generating capacity of 92.3 MW. Idaho Power owns the generation facility but not the structural dam ~~itself,~~or reservoir, which is owned by the U.S. Bureau of Reclamation. ~~The FERC recognized Idaho Power’s pre-application document, including a proposed process plan and schedule, and recognized Idaho Power’s intent to file an application for a license.~~ In February 2023, following the filing of a draft license application and public comment period, ~~on its draft license application,~~ Idaho Power filed a final license application with the FERC. In July 2023, the FERC accepted Idaho Power’s final license application for filing. In September 2023, the FERC issued a request for comments to determine the resource issues that should be addressed in the environmental analysis and identify reasonable alternatives to the proposed action that the FERC should evaluate under the NEPA framework. In February 2024, the FERC issued a Notice of Ready for Environmental Analysis. Idaho Power's reply comments are due in May 2024. In April 2024, the FERC also issued a Notice of Intent to prepare an Environmental Assessment, signaling that the FERC staff does not anticipate that licensing the project will constitute a major federal action that would significantly affect the quality of the human environment. The relicensing has begun the process of informal ESA Section 7 consultation with the USFWS and Section 106 of the National Historic Preservation Act consultation with the Idaho State Historic Preservation Office. ~~American Falls'~~The next major milestone in relicensing is the FERC's issuance of the Environmental Assessment, for which the expected date of issuance is unknown as of the date of this report.

In September 2023, Idaho Power filed an application for CWA Section 401 water quality certification with the IDEQ. In March 2024, the IDEQ denied Idaho Power's certification request, citing a need for the FERC to issue its NEPA documents (the Environmental Assessment) in order to process Idaho Power's CWA 401 application. In April 2024, Idaho Power filed a petition to initiate a contested case with the Idaho Board of Environmental Quality to challenge IDEQ’s denial of Idaho Power’s application for certification. A delay in issuance of the CWA 401 certification is not anticipated to cause operational problems. Idaho Power's current license at American Falls expires in ~~2025, and as~~February 2025. As of the date of this report, Idaho Power ~~expects~~anticipates the FERC towill issue a new license for this facility ~~concurrent~~in 2025. If the license expires before the new license is ordered, Idaho Power expects to continue to operate its American Falls facility on an annual license issued by the FERC with ~~or prior to~~ the ~~existing license expiration.~~same conditions as the current license.

ENVIRONMENTAL MATTERS

Overview

Idaho Power is subject to a broad range of federal, state, regional, and local laws and regulations designed to protect, restore, and enhance the environment, including the Clean Air Act, ~~(CAA),~~ the CWA, the Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Comprehensive Environmental Response, Compensation and Liability Act, and the ESA, among other laws. These laws are administered by a number of federal, state, and local agencies. In addition to imposing continuing compliance obligations and associated costs, these laws and regulations provide authority to regulators to levy substantial penalties for noncompliance, injunctive relief, and other sanctions. Idaho Power's two co-owned coal-fired power plants and

Table of Contents

three wholly-owned natural gas-fired combustion turbine power plants are subject to many of these regulations. Idaho Power's 17 hydropower projects are also subject to a number of water discharge standards and other environmental requirements.

~~Table of Contents~~

Compliance with current and future environmental laws and regulations may:

•increase the operating costs of generating plants;

•increase the construction costs and lead time for new facilities;

•require the modification of existing generating plants, which could result in additional costs;

•require the curtailment, fuel-switching, or shut-down of existing generating plants;

•reduce the output from current generating facilities; or

•require the acquisition of alternative sources of energy or storage technology, increased transmission wheeling, or construction of additional generating facilities, which could result in higher costs.

Current and future environmental laws and regulations could significantly increase the cost of operating fossil fuel-fired generation plants and constructing new generation and transmission facilities, in large part through the substantial cost of permitting activities and the required installation of additional pollution control devices. In many parts of the United States, some higher-cost, high-emission coal-fired plants have ceased operation or the plant owners have announced a near-term cessation of operation, as the cost of compliance makes the plants uneconomical to operate. The decision to cease operation of the Boardman power plant in 2020 was based in part on the significant cost of compliance with environmental laws and regulations. The decision to ~~pursue an~~ end to participation in coal-fired operations at the North Valmy plant was also based ~~primarily~~in part on the economics of continuing coal-fired generation at the plant. Beyond increasing costs generally, these environmental laws and regulations could affect IDACORP's and Idaho Power's results of operations and financial condition if the costs associated with these environmental requirements and early plant retirements cannot be fully recovered in rates on a timely basis.

Part I - "Business - Utility Operations - Environmental Regulation and Costs" in the ~~2022~~2023 Annual Report includes a summary of Idaho Power's expected capital and operating expenditures for environmental matters during the period from ~~2023~~2024 to ~~2025.~~2026. Given the uncertainty of future environmental regulations and technological advances, ~~there is uncertainty around~~Idaho Power cannot make near-term estimates with certainty and ~~Idaho Power~~ is also unable to predict its environmental-related expenditures beyond ~~2025,~~2026, though they could be substantial.

A summary of notable environmental matters (including conditions and events associated with climate change) impacting, or expected to potentially impact, IDACORP and Idaho Power is included in Part II, Item 7 - ~~"MD~~MD&A - ~~Environmental Issues"~~"Environmental Matters" and ~~"MD~~MD&A - ~~Liquidity~~"Liquidity and Capital Resources - Capital Requirements - Environmental Regulation Costs" in the ~~2022~~2023 Annual Report. Recent developments in certain environmental matters relevant to Idaho Power are described below.

~~Clean Air Act Matters~~

~~Regional Haze~~April 2024 Fossil Fuel-Fired Power Plant Rules: In accordance with federal regional haze rules under the CAA, coal-fired utility boilers are subject to regional haze - best available retrofit technology (RH BART) if they were built between 1962 and 1977 and affect any "Class I" (wilderness) areas. This includes all units at the Jim Bridger plant, which are subject to regulation by both U.S. Environmental Protection Agency (EPA) and WDEQ.

In ~~March 2023,~~April 2024, the EPA ~~issued~~released a suite of final ~~rule under the CAA called the Federal Implementation Plan Addressing Regional Ozone Transport for the 2015 National Ambient Air Quality Standards (Good Neighbor Plan) establishing NO~~x ~~emissions budgets requiring~~rules that could potentially impact generation at Idaho Power’s fossil fuel-fired power plants, ~~excluding those located in Wyoming,~~including a requirement for carbon capture and storage with 90 percent capture as the best system of emission reduction for existing coal-fired plants without a planned retirement and new natural gas-fired plants, updated water treatment standards for effluent discharge at coal-fired plants, updated mercury and air toxic standards for coal-fired plants, and changes to ~~participate in an allowance-based ozone season trading program beginning~~coal combustion residual regulations, among other things.

Each of these rules becomes effective 60 days ~~from~~after publication ~~of the rule~~ in the Federal Register. ~~As of the date of this report, the final rule has not been published. Based on implementation of the Good Neighbor Plan in Nevada, under certain conditions~~However, Idaho Power expects some or all of these rules to be subject to legal challenges, which could have ~~reduced ability to use the full available output at the Valmy plant in order to comply with the Good Neighbor Plan limitations.~~an impact on when and whether they become or remain effective. As of the date of this report, Idaho Power ~~continues to evaluate~~is evaluating the ~~specific impacts~~rules and anticipates that they could have an adverse impact on the ~~Good Neighbor Plan will have~~operation and costs of operation of its fossil fuel-fired power plants, and on ~~its operations at~~ the ~~Valmy plant. The EPA has indicated its intent to defer implementation~~cost, timing, and viability of the ~~final rule in Wyoming pending further review~~construction of updated air quality and contribution modeling. If the Good Neighbor Plan is implemented in Wyoming, Idaho Power similarly anticipates under certain conditions it could have reduced ability to use the full available output at the Jim Bridger plant.new gas-fired power plants.

~~Clean Water~~Endangered Species Act Matters

~~Definition~~Reinstatement of ~~“Waters~~"Blanket Rule" for Threatened Species: The listing of a species, or changes to the critical habitat designations, of fish, wildlife, or plants as threatened or endangered under the ESA and the associated mitigation policies may have an adverse impact on Idaho Power's ability to construct power supply, transmission, or distribution facilities or relicense or operate its hydropower facilities. In March 2024, the USFWS published a final rule, which among other items, reinstated the “blanket rule” that allows the USFWS to treat threatened species the same (or similar) as endangered species under Section 4(d) of the ~~United States” Under~~ESA. Idaho Power is evaluating the ~~CWA: Since 2015, the EPA and U.S. Army Corps~~rule, which could have an impact on several of ~~Engineers (USACE) have been struggling to define the scope of "waters~~its projects. As of the ~~United States" (WOTUS) under the CWA. The WOTUS definition~~date of this report, Idaho Power is ~~fundamental to the application of the CWA because only those bodies of water designated as WOTUS are protected from unlawful discharge of pollutants under the CWA.~~uncertain whether any such impacts will be significant.

~~In December 2022, after multiple rulemakings involving various Presidential Administrations and federal court reviews of those~~

5754

Table of Contents

~~rules, the~~Clean Air Act Matters

Regional Haze: In April 2024, EPA ~~and USACE issued a final rule revising and expanding the definition of WOTUS under the CWA, which went into effect on March 20, 2023. On March 19, 2023, one day prior~~proposed to approve revisions to the ~~new rule going into effect,~~Wyoming Regional Haze SIP. The proposed SIP replaces Wyoming’s previously approved source-specific nitrogen oxide (NOx) determination for Idaho Power’s jointly owned Jim Bridger facility. Specifically, the ~~U.S. District Court~~SIP finds that conversion of Units 1 and 2 from coal-firing to natural gas-firing, together with NOx emission and heat input limits of 0.12 lb/MMBtu (30-day rolling average), 1,314 tons/year, and 21,900,000 MMBtu/year, respectively, allows for identical reasonable progress during the ~~Southern District~~first planning period as would the installation of ~~Texas issued a preliminary injunction blocking implementation~~selective catalytic reduction controls (as required by the 2014 Wyoming SIP). The EPA comment period ends in May 2024, and Idaho Power plans to submit comments in support of the rule in Texas and Idaho. Subsequently, on April 12, 2023, the U.S. District Court for the District of North Dakota halted implementation of the final rule in 24 additional states. Review of these decisions by the U.S. Supreme Court is likely imminent and could provide nationwide clarity of the federal government’s jurisdiction over WOTUS. If the new rule becomes effective in Idaho, Idaho Power expects the rule may cause Idaho Power to incur additional permitting, regulatory requirements, and other associated costs, but Idaho Power anticipates the aggregate amount of increased costs is unlikely to have a material adverse effect on its operations or financial condition, in part due to the relatively arid climate of Idaho Power's service area. Similarly, because the CWA applies to most of Idaho Power's facilities, including its hydropower plants,proposed SIP. Idaho Power does not expect the ~~new rule~~proposed SIP, if approved, to ~~materially impact Idaho Power's~~require any changes to current operations ~~or financial condition.~~at the Jim Bridger facility.

Clean Water Act Matters

CWA Permitting: Idaho Power's hydropower generation facilities are subject to compliance and permitting obligations under the CWA. Idaho Power has been engaged for several years with the EPA, and is now engaged with the ~~Idaho Department of Environmental Quality (IDEQ),~~IDEQ, regarding Idaho Power's CWA permitting obligations and compliance status for those facilities. Idaho Power has in the past, and expects in the future, to incur costs associated with those permitting and compliance obligations, but as of the date of this report, Idaho Power is unable to estimate with any reasonable certainty those costs. Idaho Power also expects to incur additional costs associated with the relicensing of its ~~hydroelectric~~hydropower facilities, as discussed elsewhere in this report.

In June 2022, Idaho Power and the IDEQ entered into a consent judgment in the Idaho state district courts ~~for the third, fourth, fifth, and sixth judicial districts of the State of Idaho~~ to resolve a National Pollutant Discharge Elimination System permitting issue related to 15 of Idaho Power’s hydropower projects that required Idaho Power to pay a $1.1 million fine, implement interim measures for compliance, and ultimately submit applications for new permits at each of the dams subject to the consent judgment. ~~As of the date of this report, Idaho Power has submitted new permit applications for seven of the dams and anticipates completing all submissions by June 2024.~~ Due to a misinterpretation of law, the EPA cancelled water discharge permits in the mid-1990’s, ~~and~~which Idaho Power ~~recently~~subsequently determined ~~that those permits are~~were applicable for operation of the dams. ~~However,~~ Idaho Power believes that the dams would have been in compliance with the earlier permits had they remained in place. As of the date of this report, Idaho Power has submitted new permit applications for 14 of the dams and anticipates completing all submissions by June 2024.

Climate-Related Disclosures

In March 2024, the SEC issued a final rule on the enhancement and standardization of climate-related disclosures for investors. In April 2024, the SEC voluntarily stayed the effectiveness of the rule, pending the resolution of litigation challenging the rule in the U.S. Court of Appeals for the Eighth Circuit. If the rule becomes effective, it could require IDACORP and Idaho Power to make various additional climate-related disclosures, including regarding its Scope 1 and Scope 2 greenhouse gas emissions, if material. As of the date of this report, IDACORP and Idaho Power are evaluating the potential impacts of the final rule.

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.~~GAAP. 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 ~~2022~~2023 Annual Report.

Recently Issued Accounting Pronouncements

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

statements included in this report.

5855

Table of Contents

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, ~~2022,~~2023, 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, ~~2023.~~2024. IDACORP has not entered into any of these market-risk-sensitive instruments for ~~trading~~speculative 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, ~~2023,~~2024, IDACORP had no net variable rate debt, as the carrying value of short-term investments exceeded the carrying value of outstanding variable rate debt.

Fixed Rate Debt: As of March 31, ~~2023,~~2024, IDACORP had ~~$2.5~~$2.8 billion in fixed rate debt, with a fair value of approximately ~~$2.4~~$2.6 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 ~~$290~~$322 million if market interest rates were to decline by one percentage point from their March 31, ~~2023,~~2024, 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 supply 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, ~~2023,~~2024, had not changed materially from that reported in Item 7A of ~~IDACORP's and Idaho Power's~~the 2023 Annual ~~Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report).~~Report. Information regarding Idaho Power’s use of derivative instruments to manage commodity price risk can be found in Note 11 - "Derivative Financial Instruments" to the condensed consolidated financial statements included in this report.

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 of 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, ~~2023,~~2024, Idaho Power posted ~~$63~~$27 million of cash 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 then existing market conditions as of March 31, ~~2023,~~2024, the amount of additional collateral that could behave been requested upon a downgrade to below investment grade was approximately ~~$44.6~~$12 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.

IDACORP's credit risk related to uncollectible accounts, net of amounts reserved, as of March 31, ~~2023,~~2024, had not changed materially from that reported in Item 7A of the ~~2022~~2023 Annual Report, except as disclosed in Note 4 - "Revenues" to the condensed consolidated financial statements included in this report. Additional information regarding Idaho Power’s

Table of Contents

management of credit risk and credit contingent features can be found in Note 11 - "Derivative Financial Instruments" to the condensed consolidated financial statements included in this report.

~~Table of Contents~~

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 11 - "Benefit Plans" to the consolidated financial statements included in the ~~2022~~2023 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, ~~2023,~~2024, 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, ~~2023,~~2024, 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, ~~2023,~~2024, that have materially affected, or are reasonably likely to materially affect, IDACORP's or Idaho Power's internal control over financial reporting.

6057

Table of Contents

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

~~None~~None.

SEC regulations require IDACORP and Idaho Power to disclose certain information about proceedings arising under federal, state or local environmental provisions if the companies reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, the companies use a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required.

ITEM 1A. RISK FACTORS

The factors discussed in Part I - Item 1A - "Risk Factors" in ~~IDACORP's and Idaho Power's~~the 2023 Annual Report, ~~on Form 10-K for the year ended December 31, 2022,~~ could materially affect IDACORP’s and Idaho Power's business, financial condition, or future results. In addition to those risk factors 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.

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

Restrictions on Dividends

See Note 6 - "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.

Issuer Purchases of Equity Securities

IDACORP did not repurchase any shares of its common stock during the quarter ended March 31, ~~2023.~~2024.

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~~During the quarter ended March 31, 2024, none of IDACORP's or Idaho Power's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

6158

Table of Contents

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, ~~2023:~~2024:

Incorporated by Reference

Exhibit No.

Exhibit Description

Form

File No.

Exhibit No.

Date

Included Herewith

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.)

6259

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:	May ~~4, 2023~~2, 2024	By:	/s/ Lisa A. Grow
			Lisa A. Grow
			President and Chief Executive Officer

Date:	May ~~4, 2023~~2, 2024	By:	/s/ Brian R. Buckham
			Brian R. Buckham
			Senior Vice President, ~~and~~ Chief Financial Officer, and Treasurer






		IDAHO POWER COMPANY
		(Registrant)



Date:	May ~~4, 2023~~2, 2024	By:	/s/ Lisa A. Grow
			Lisa A. Grow
			President and Chief Executive Officer

Date:	May ~~4, 2023~~2, 2024	By:	/s/ Brian R. Buckham
			Brian R. Buckham
			Senior Vice President, ~~and~~ Chief Financial Officer, and Treasurer

6360


	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)
2023 IRP (preliminary)	5.5%	3.7%	2.2%	1.8%
2021 IRP	2.6%	2.1%	1.4%	1.4%
2019 IRP	1.3%	1.4%	1.0%	1.2%


	2023	2024	2025-2027
Expected capital expenditures (excluding AFUDC)	$650-$700	$800-$850	$1,500-$1,700


Resource Type	On-line (MW)	Under Contract but not yet On-line (MW)	Total Projects under Contract (MW)
PURPA:
Wind	627	—	627
Solar	316	74	390
Hydropower	150	1	151
Other	44	—	44
Total	1,137	75	1,212
Non-PURPA:
Wind	101	—	101
Geothermal	35	—	35
Solar	120	340	460
Total	256	340	596