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

~~September 30, 2023~~March 31, 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.☐

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~~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 ~~October 27, 2023:~~ April 26, 2024:

~~IDACORP, Inc.: 50,615,237~~

~~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.

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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		3534
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			3736
	Item 3. Quantitative and Qualitative Disclosures About Market Risk			6456
	Item 4. Controls and Procedures			6557

Part II. Other Information

	Item 1. Legal Proceedings			6658
	Item 1A. Risk Factors			6658
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds ~~and Issuer Purchases of Equity Securities~~			6658
	Item 3. Defaults Upon Senior Securities			6658
	Item 4. Mine Safety Disclosures			6658
	Item 5. Other Information			6658
	Item 6. Exhibits			6759

Signatures				6860

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COMMONLY USED TERMS

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

~~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~~

~~CPCN~~

~~Certificate of Public Convenience and Necessity~~

~~CWA~~

~~Clean Water Act~~

~~EFSC~~

~~Energy Facility Siting Council~~

~~EIS~~

~~Environmental Impact Statement~~

~~EPA~~

~~U.S. Environmental Protection Agency~~

~~ESA~~

~~Endangered Species Act~~

~~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.~~

~~IDEQ~~

~~Idaho Department of Environmental Quality~~

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

~~kWh~~B2H

~~Kilowatt-hour~~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

~~NMFS~~ESA

Endangered Species Act

NEPA

National ~~Marine Fisheries Service~~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 ~~Proposals~~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 ~~Security Plan for Senior Management Employees~~ II ~~together~~

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.

WPSC

Wyoming Public Service Commission

IDEQ

Idaho Department of Environmental Quality

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to the historical information contained in this report, this report contains (and oral communications made by IDACORP and 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, involve estimates, assumptions, risks, and uncertainties, 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, the ~~2022~~2023 Annual Report, 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 SEC, and the following important factors:

•decisions by the Idaho and Oregon public utilities commissions and the 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;

•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 cost recovery or 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 ~~orders including those relating to reliability and security, the environment, climate change, natural resources, and threatened and endangered species, and associated mitigation requirements,~~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;

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•ability to acquire equipment, materials, fuel, power, ~~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;

•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; 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;~~penalties;

•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;

•unaligned goals and positions with co-owners of Idaho Power's generation and 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;

•ability to obtain debt and equity financing or refinance existing debt when necessary and on 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 in light of credit rating considerations; and~~limitations;

•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.

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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.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.

Condensed Consolidated Statements of Income

(unaudited)


		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
		(in thousands, except per share amounts)				(in thousands, except per share amounts)
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
		(in thousands, except per share amounts)
		(in thousands, except per share amounts)
		(in thousands, except per share amounts)
Operating Revenues:
Operating Revenues:
Operating Revenues:	Operating Revenues:
Electric utility revenues	Electric utility revenues	$	509,635	$	517,101	$	1,351,700	$	1,218,690
Electric utility revenues
Electric utility revenues
Other	Other	1,271		911		2,703		2,333
Other
Other
Total operating revenues
Total operating revenues
Total operating revenues	Total operating revenues	510,906		518,012		1,354,403		1,221,023

Operating Expenses:	Operating Expenses:

Operating Expenses:

Operating Expenses:
Electric utility:
Electric utility:
Electric utility:	Electric utility:
Purchased power	Purchased power	142,851		192,884		405,404		370,035
Purchased power
Purchased power
Fuel expense
Fuel expense
Fuel expense	Fuel expense	71,723		63,631		191,917		143,750
Power cost adjustment	Power cost adjustment	5,899		(30,806)		4,191		(31,631)
Power cost adjustment
Power cost adjustment
Other operations and maintenance
Other operations and maintenance
Other operations and maintenance	Other operations and maintenance	95,824		100,679		284,988		293,322
Energy efficiency programs	Energy efficiency programs	10,498		8,292		22,265		21,490
Energy efficiency programs
Energy efficiency programs
Depreciation
Depreciation
Depreciation	Depreciation	50,832		45,951		143,331		125,238
Other electric utility operating expenses	Other electric utility operating expenses	6,297		8,780		23,169		26,544
Other electric utility operating expenses
Other electric utility operating expenses
Total electric utility operating expenses
Total electric utility operating expenses
Total electric utility operating expenses	Total electric utility operating expenses	383,924		389,411		1,075,265		948,748
Other	Other	694		377		2,453		1,877
Other
Other
Total operating expenses
Total operating expenses
Total operating expenses	Total operating expenses	384,618		389,788		1,077,718		950,625

Operating Income	Operating Income	126,288		128,224		276,685		270,398

Operating Income

Operating Income

Nonoperating (Income) Expense:

Nonoperating (Income) Expense:

Nonoperating (Income) Expense:	Nonoperating (Income) Expense:
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(11,044)		(9,461)		(32,125)		(27,872)
Allowance for equity funds used during construction
Allowance for equity funds used during construction
Earnings of unconsolidated equity-method investments
Earnings of unconsolidated equity-method investments
Earnings of unconsolidated equity-method investments	Earnings of unconsolidated equity-method investments	(4,195)		(4,098)		(9,387)		(8,694)
Interest on long-term debt	Interest on long-term debt	29,361		22,093		82,908		64,536
Interest on long-term debt
Interest on long-term debt
Other interest
Other interest
Other interest	Other interest	5,572		4,188		14,935		11,864
Allowance for borrowed funds used during construction	Allowance for borrowed funds used during construction	(4,903)		(3,534)		(14,291)		(10,399)
Allowance for borrowed funds used during construction
Allowance for borrowed funds used during construction
Other income, net	Other income, net	(7,924)		(3,042)		(24,890)		(6,206)
Other income, net
Other income, net
Total nonoperating expense, net
Total nonoperating expense, net
Total nonoperating expense, net	Total nonoperating expense, net	6,867		6,146		17,150		23,229

Income Before Income Taxes	Income Before Income Taxes	119,421		122,078		259,535		247,169

Income Tax Expense		13,774		15,450		29,000		29,768
Income Before Income Taxes

Income Before Income Taxes

Income Tax (Benefit) Expense

Income Tax (Benefit) Expense

Income Tax (Benefit) Expense

Net Income	Net Income	105,647		106,628		230,535		217,401
Income attributable to noncontrolling interests		(383)		(248)		(599)		(473)

Net Income

Net Income
Adjustment for (income) loss attributable to noncontrolling interests
Adjustment for (income) loss attributable to noncontrolling interests
Adjustment for (income) loss attributable to noncontrolling interests
Net Income Attributable to IDACORP, Inc.
Net Income Attributable to IDACORP, Inc.
Net Income Attributable to IDACORP, Inc.	Net Income Attributable to IDACORP, Inc.	$	105,264	$	106,380	$	229,936	$	216,928

Weighted Average Common Shares Outstanding - Basic	Weighted Average Common Shares Outstanding - Basic	50,726		50,668		50,713		50,656

Weighted Average Common Shares Outstanding - Basic

Weighted Average Common Shares Outstanding - Basic
Weighted Average Common Shares Outstanding - Diluted
Weighted Average Common Shares Outstanding - Diluted
Weighted Average Common Shares Outstanding - Diluted	Weighted Average Common Shares Outstanding - Diluted	50,805		50,722		50,762		50,689
Earnings Per Share of Common Stock:	Earnings Per Share of Common Stock:
Earnings Per Share of Common Stock:
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic
Earnings Attributable to IDACORP, Inc. - Basic
Earnings Attributable to IDACORP, Inc. - Basic	Earnings Attributable to IDACORP, Inc. - Basic	$	2.08	$	2.10	$	4.53	$	4.28
Earnings Attributable to IDACORP, Inc. - Diluted	Earnings Attributable to IDACORP, Inc. - Diluted	$	2.07	$	2.10	$	4.53	$	4.28
Earnings Attributable to IDACORP, Inc. - Diluted
Earnings Attributable to IDACORP, Inc. - Diluted

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
		(in thousands)
		(in thousands)
		(in thousands)
		(in thousands)				(in thousands)
Net Income

Net Income

Net Income	Net Income	$	105,647	$	106,628	$	230,535	$	217,401
Other Comprehensive Income:	Other Comprehensive Income:
Other Comprehensive Income:
Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $51, $290, $153, and $870, respectively		146		837		439		2,511
Unfunded pension liability adjustment, net of tax of $99 and $51, respectively

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

Unfunded pension liability adjustment, net of tax of $99 and $51, respectively
Total Comprehensive Income	Total Comprehensive Income	105,793		107,465		230,974		219,912
Income attributable to noncontrolling interests		(383)		(248)		(599)		(473)
Total Comprehensive Income
Total Comprehensive Income
(Income) loss attributable to noncontrolling interests
(Income) loss attributable to noncontrolling interests
(Income) loss attributable to noncontrolling interests
Comprehensive Income Attributable to IDACORP, Inc.	Comprehensive Income Attributable to IDACORP, Inc.	$	105,410	$	107,217	$	230,375	$	219,439
Comprehensive Income Attributable to IDACORP, Inc.
Comprehensive Income Attributable to IDACORP, Inc.

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

September 30,
2023

December 31,
2022

(in thousands)

March 31,
2024

December 31,
2023

(in thousands)

Assets

Current Assets:

Cash and cash equivalents

445,489

177,577

Receivables:

Customer (net of allowance of $4,135 and $5,034, respectively)

135,021

114,173

Other (net of allowance of $587 and $512, respectively)

36,151

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

81,533

84,862

Materials and supplies (at average cost)

131,616

92,461

Fuel stock (at average cost)

20,950

14,762

Prepayments

23,078

24,517

Current regulatory assets

163,818

80,049

Other

496

40,339

Total current assets

1,038,152

693,653

Investments

157,513

121,352

Property, Plant and Equipment:

Utility plant in service

7,148,293

6,828,467

Utility plant in service

Accumulated provision for depreciation

(2,575,485)

(2,465,279)

Utility plant in service - net

4,572,808

4,363,188

Construction work in progress

955,276

785,706

Utility plant held for future use

9,491

7,130

Other property, net of accumulated depreciation

16,357

16,946

Property, plant and equipment - net

5,553,932

5,172,970

Other Assets:

Company-owned life insurance

79,861

73,944

Company-owned life insurance

Regulatory assets

1,398,652

1,421,912

Other

65,424

59,427

Other

Total other assets

1,543,937

1,555,283

Total

8,293,534

7,543,258

The accompanying notes are an integral part of these statements.

910

Table of Contents

IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

September 30,
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

Accounts payable

227,348

292,719

Taxes accrued

36,005

8,565

Interest accrued

21,733

24,060

Accrued compensation

54,028

59,265

Current regulatory liabilities

8,620

63,957

Advances from customers

103,860

72,222

Other

37,336

27,777

Total current liabilities

488,930

548,565

Other Liabilities:

Deferred income taxes

878,945

873,916

Deferred income taxes

Regulatory liabilities

815,075

796,644

Pension and other postretirement benefits

204,604

238,037

Other

150,966

77,336

Total other liabilities

2,049,590

1,985,933

Long-Term Debt

2,826,150

2,194,145

Commitments and Contingencies

Equity:

IDACORP, Inc. shareholders’ equity:

Common stock, no par value (120,000 shares authorized; 50,615 and 50,562 shares issued, respectively)

886,243

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

2,047,129

1,937,972

Accumulated other comprehensive loss

(12,483)

(12,922)

Total IDACORP, Inc. shareholders’ equity

2,920,889

2,807,239

Noncontrolling interests

7,975

7,376

Total equity

2,928,864

2,814,615

Total

8,293,534

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,								Three months ended March 31,
			Nine months ended September 30,					2024	2023
			2023		2022
			(in thousands)
		(in thousands)								(in thousands)
Operating Activities:	Operating Activities:
Net income	Net income		$	230,535	$	217,401
Adjustments to reconcile net income to net cash provided by operating activities:
Net income
Net income
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		146,645		127,335
Deferred income taxes and investment tax credits	Deferred income taxes and investment tax credits		300		(16,850)
Changes in regulatory assets and liabilities	Changes in regulatory assets and liabilities		1,585		(1,361)
Pension and postretirement benefit plan expense	Pension and postretirement benefit plan expense		20,390		21,744
Contributions to pension and postretirement benefit plans	Contributions to pension and postretirement benefit plans		(54,388)		(43,143)
Earnings of equity-method investments	Earnings of equity-method investments		(9,387)		(8,694)
Distributions from equity-method investments	Distributions from equity-method investments		1,250		7,963
Allowance for equity funds used during construction	Allowance for equity funds used during construction		(32,125)		(27,872)
Other non-cash adjustments to net income, net	Other non-cash adjustments to net income, net		6,115		9,064
Change in:	Change in:						Change in:
Accounts receivable and unbilled revenues	Accounts receivable and unbilled revenues		(10,691)		(58,113)
Prepayments	Prepayments		(2,669)		3,356
Materials, supplies, and fuel stock	Materials, supplies, and fuel stock		(45,343)		3,662
Accounts and wages payable	Accounts and wages payable		(116,417)		19,507
Taxes accrued/receivable	Taxes accrued/receivable		41,174		26,128
Other assets and liabilities	Other assets and liabilities		(14,943)		(11,152)
Net cash provided by operating activities			162,031		268,975
Net cash provided by (used in) operating activities
Investing Activities:	Investing Activities:						Investing Activities:
Additions to property, plant and equipment			(427,211)		(305,271)
Additions to property, plant and equipment, net
Payments received from transmission project joint funding partners	Payments received from transmission project joint funding partners		14,920		10,979

Investments in affordable housing and other real estate tax credits projects			(2,742)		(10,183)

Distributions from equity-method investments, return of investment			—		11,287
Purchases of equity securities			(3,283)		(28,888)
Purchases of held-to-maturity securities			(868)		(31,017)
Proceeds from the sale of equity securities			6,252		56,728
Purchases of short-term investments			—		(25,000)
Maturities of short-term investments			—		25,000

Other

Other

Other	Other		1,051		5,982
Net cash used in investing activities	Net cash used in investing activities		(411,881)		(290,383)
Financing Activities:	Financing Activities:						Financing Activities:
Issuance of long-term debt	Issuance of long-term debt		872,000		150,000
Discount on issuance of long-term debt	Discount on issuance of long-term debt		(7,006)		—
Retirement of long-term debt	Retirement of long-term debt		(225,000)		—
Dividends on common stock	Dividends on common stock		(120,578)		(114,308)

Issuance of common stock
Issuance of common stock
Issuance of common stock
Tax withholdings on net settlements of share-based awards	Tax withholdings on net settlements of share-based awards		(3,274)		(3,111)

Other	Other		1,620		(187)
Net cash provided by financing activities			517,762		32,394
Net increase in cash and cash equivalents			267,912		10,986
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		177,577		215,243
Cash and cash equivalents at end of the period	Cash and cash equivalents at end of the period		$	445,489	$	226,229
Supplemental Disclosure of Cash Flow Information:	Supplemental Disclosure of Cash Flow Information:						Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:	Cash paid during the period for:						Cash paid during the period for:
Income taxes			$	1,900	$	38,220

Interest (net of amount capitalized)
Interest (net of amount capitalized)
Interest (net of amount capitalized)	Interest (net of amount capitalized)		$	82,614	$	68,057
Non-cash investing activities:	Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	Additions to property, plant and equipment in accounts payable		$	127,076	$	65,374
Additions to property, plant and equipment in accounts payable
Additions to property, plant and equipment in accounts payable

The accompanying notes are an integral part of these statements.

1112

Table of Contents

IDACORP, Inc.

Condensed Consolidated Statements of Equity

(unaudited)


		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
		(in thousands)				(in thousands)
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
		(in thousands)
		(in thousands)
		(in thousands)
Common Stock
Common Stock
Common Stock	Common Stock
Balance at beginning of period	Balance at beginning of period	$	884,309	$	877,362	$	882,189	$	874,896
Balance at beginning of period
Balance at beginning of period
Issuance
Issuance
Issuance
Share-based compensation expense	Share-based compensation expense	1,920		2,519		7,224		7,883
Share-based compensation expense
Share-based compensation expense
Tax withholdings on net settlements of share-based awards
Tax withholdings on net settlements of share-based awards
Tax withholdings on net settlements of share-based awards	Tax withholdings on net settlements of share-based awards	(19)		(153)		(3,274)		(3,111)

Other	Other	33		32		104		92

Other

Other
Balance at end of period
Balance at end of period
Balance at end of period	Balance at end of period	886,243		879,760		886,243		879,760
Retained Earnings	Retained Earnings
Retained Earnings
Retained Earnings
Balance at beginning of period
Balance at beginning of period
Balance at beginning of period	Balance at beginning of period	1,982,083		1,867,811		1,937,972		1,833,580
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	105,264		106,380		229,936		216,928
Common stock dividends ($0.79, $0.75, $2.37, and $2.25 per share, respectively)		(40,218)		(38,124)		(120,779)		(114,441)
Net income attributable to IDACORP, Inc.
Net income attributable to IDACORP, Inc.
Common stock dividends ($0.83, and $0.79 per share, respectively)
Common stock dividends ($0.83, and $0.79 per share, respectively)
Common stock dividends ($0.83, and $0.79 per share, respectively)
Balance at end of period
Balance at end of period
Balance at end of period	Balance at end of period	2,047,129		1,936,067		2,047,129		1,936,067
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Balance at beginning of period
Balance at beginning of period
Balance at beginning of period	Balance at beginning of period	(12,629)		(38,366)		(12,922)		(40,040)
Unfunded pension liability adjustment (net of tax)	Unfunded pension liability adjustment (net of tax)	146		837		439		2,511
Unfunded pension liability adjustment (net of tax)
Unfunded pension liability adjustment (net of tax)
Balance at end of period
Balance at end of period
Balance at end of period	Balance at end of period	(12,483)		(37,529)		(12,483)		(37,529)

Total IDACORP, Inc. shareholders’ equity at end of period	Total IDACORP, Inc. shareholders’ equity at end of period	2,920,889		2,778,298		2,920,889		2,778,298

Total IDACORP, Inc. shareholders’ equity at end of period

Total IDACORP, Inc. shareholders’ equity at end of period
Noncontrolling Interests
Noncontrolling Interests
Noncontrolling Interests	Noncontrolling Interests
Balance at beginning of period	Balance at beginning of period	7,592		7,023		7,376		6,798
Net income attributable to noncontrolling interests		383		248		599		473
Balance at beginning of period
Balance at beginning of period
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to noncontrolling interests
Balance at end of period
Balance at end of period
Balance at end of period	Balance at end of period	7,975		7,271		7,975		7,271
Total equity at end of period	Total equity at end of period	$	2,928,864	$	2,785,569	$	2,928,864	$	2,785,569
Total equity at end of period
Total equity at end of period

The accompanying notes are an integral part of these statements.

1213

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Income

(unaudited)


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
		(in thousands)
		(in thousands)
		(in thousands)
		(in thousands)				(in thousands)
Operating Revenues

Operating Revenues

Operating Revenues	Operating Revenues	$	509,635	$	517,101	$	1,351,700	$	1,218,690

Operating Expenses:	Operating Expenses:

Operating Expenses:

Operating Expenses:
Operation:
Operation:
Operation:	Operation:
Purchased power	Purchased power	142,851		192,884		405,404		370,035
Purchased power
Purchased power
Fuel expense
Fuel expense
Fuel expense	Fuel expense	71,723		63,631		191,917		143,750
Power cost adjustment	Power cost adjustment	5,899		(30,806)		4,191		(31,631)
Power cost adjustment
Power cost adjustment
Other operations and maintenance
Other operations and maintenance
Other operations and maintenance	Other operations and maintenance	95,824		100,679		284,988		293,322
Energy efficiency programs	Energy efficiency programs	10,498		8,292		22,265		21,490
Energy efficiency programs
Energy efficiency programs
Depreciation
Depreciation
Depreciation	Depreciation	50,832		45,951		143,331		125,238
Other operating expenses	Other operating expenses	6,297		8,780		23,169		26,544
Other operating expenses
Other operating expenses
Total operating expenses
Total operating expenses
Total operating expenses	Total operating expenses	383,924		389,411		1,075,265		948,748

Operating Income	Operating Income	125,711		127,690		276,435		269,942

Operating Income

Operating Income

Nonoperating (Income) Expense:

Nonoperating (Income) Expense:

Nonoperating (Income) Expense:	Nonoperating (Income) Expense:
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(11,044)		(9,461)		(32,125)		(27,872)
Allowance for equity funds used during construction
Allowance for equity funds used during construction
Earnings of unconsolidated equity-method investments
Earnings of unconsolidated equity-method investments
Earnings of unconsolidated equity-method investments	Earnings of unconsolidated equity-method investments	(3,007)		(3,048)		(7,402)		(7,313)
Interest on long-term debt	Interest on long-term debt	29,361		22,093		82,908		64,536
Interest on long-term debt
Interest on long-term debt
Other interest
Other interest
Other interest	Other interest	5,491		3,948		14,693		11,613
Allowance for borrowed funds used during construction	Allowance for borrowed funds used during construction	(4,903)		(3,534)		(14,291)		(10,399)
Allowance for borrowed funds used during construction
Allowance for borrowed funds used during construction
Other income, net	Other income, net	(7,588)		(2,245)		(23,434)		(5,222)
Other income, net
Other income, net
Total nonoperating expense, net
Total nonoperating expense, net
Total nonoperating expense, net	Total nonoperating expense, net	8,310		7,753		20,349		25,343

Income Before Income Taxes	Income Before Income Taxes	117,401		119,937		256,086		244,599

Income Tax Expense		14,379		15,405		30,274		31,418
Income Before Income Taxes

Income Before Income Taxes

Income Tax (Benefit) Expense

Income Tax (Benefit) Expense

Income Tax (Benefit) Expense

Net Income	Net Income	$	103,022	$	104,532	$	225,812	$	213,181

Net Income

Net Income

The accompanying notes are an integral part of these statements.

1314

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
		(in thousands)
		(in thousands)
		(in thousands)
		(in thousands)				(in thousands)
Net Income

Net Income

Net Income	Net Income	$	103,022	$	104,532	$	225,812	$	213,181
Other Comprehensive Income:	Other Comprehensive Income:
Other Comprehensive Income:
Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $51, $290, $153, and $870, respectively		146		837		439		2,511
Unfunded pension liability adjustment, net of tax of $99, and $51, respectively

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

Unfunded pension liability adjustment, net of tax of $99, and $51, respectively
Total Comprehensive Income	Total Comprehensive Income	$	103,168	$	105,369	$	226,251	$	215,692
Total Comprehensive Income
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)


			September 30, 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		$	404,881	$	108,933
Receivables:	Receivables:
Customer (net of allowance of $4,135 and $5,034, respectively)			135,021		114,173
Other (net of allowance of $587 and $512, respectively)			35,887		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		81,533		84,862
Materials and supplies (at average cost)	Materials and supplies (at average cost)		131,616		92,461
Fuel stock (at average cost)	Fuel stock (at average cost)		20,950		14,762
Prepayments	Prepayments		22,965		24,396

Current regulatory assets	Current regulatory assets		163,818		80,049
Current regulatory assets
Current regulatory assets
Other	Other		496		40,339
Total current assets	Total current assets		997,167		623,837
Investments	Investments		82,232		78,791
Property, Plant and Equipment:	Property, Plant and Equipment:
Plant in service
Plant in service
Plant in service	Plant in service		7,148,293		6,828,467
Accumulated provision for depreciation	Accumulated provision for depreciation		(2,575,485)		(2,465,279)
Plant in service - net	Plant in service - net		4,572,808		4,363,188
Construction work in progress	Construction work in progress		955,276		785,706
Plant held for future use	Plant held for future use		9,491		7,130
Other property	Other property		4,313		4,558
Property, plant and equipment, net	Property, plant and equipment, net		5,541,888		5,160,582
Other Assets:	Other Assets:
Company-owned life insurance	Company-owned life insurance		79,861		73,944
Company-owned life insurance
Company-owned life insurance
Regulatory assets	Regulatory assets		1,398,652		1,421,912
Other	Other		53,201		52,038
Total other assets	Total other assets		1,531,714		1,547,894
Total	Total		$	8,153,001	$	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)

September 30,
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

Accounts payable

226,516

292,616

Accounts payable to affiliates

16,299

56,338

Taxes accrued

66,940

9,101

Interest accrued

21,733

24,060

Accrued compensation

53,808

58,959

Accrued compensation

Current regulatory liabilities

8,620

63,957

Advances from customers

103,860

72,222

Other

30,273

26,199

Total current liabilities

528,049

603,452

Other Liabilities:

Deferred income taxes

878,234

870,692

Regulatory liabilities

815,075

796,644

Pension and other postretirement benefits

204,604

238,037

Other

123,771

76,471

Total other liabilities

2,021,684

1,981,844

Long-Term Debt

2,826,150

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

1,981,563

1,836,547

Accumulated other comprehensive loss

(12,483)

(12,922)

Total equity

2,777,118

2,631,663

Total

8,153,001

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)


			Nine months ended September 30,
		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		$	225,812	$	213,181
Adjustments to reconcile net income to net cash 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		146,203		126,887
Deferred income taxes and investment tax credits	Deferred income taxes and investment tax credits		(1,828)		(18,571)
Changes in regulatory assets and liabilities	Changes in regulatory assets and liabilities		1,585		(1,361)
Pension and postretirement benefit plan expense	Pension and postretirement benefit plan expense		20,373		21,726
Contributions to pension and postretirement benefit plans	Contributions to pension and postretirement benefit plans		(54,371)		(43,126)
Earnings of equity-method investments	Earnings of equity-method investments		(7,402)		(7,313)
Distributions from equity-method investments	Distributions from equity-method investments		550		7,313
Allowance for equity funds used during construction	Allowance for equity funds used during construction		(32,125)		(27,872)
Other non-cash adjustments to net income, net	Other non-cash adjustments to net income, net		(1,056)		1,169
Change in:	Change in:						Change in:
Accounts receivable and unbilled revenues	Accounts receivable and unbilled revenues		(11,107)		(57,492)
Prepayments	Prepayments		(2,677)		3,353
Materials, supplies, and fuel stock	Materials, supplies, and fuel stock		(45,343)		3,662
Accounts and wages payable	Accounts and wages payable		(156,644)		63,341
Taxes accrued/receivable	Taxes accrued/receivable		70,947		20,381
Other assets and liabilities	Other assets and liabilities		(14,844)		(11,191)
Net cash provided by operating activities			138,073		294,087
Net cash provided by (used in) operating activities
Investing Activities:	Investing Activities:						Investing Activities:
Additions to property, plant and equipment			(427,191)		(305,117)
Additions to utility plant, net

Payments received from transmission project joint funding partners	Payments received from transmission project joint funding partners		14,920		10,979
Payments received from transmission project joint funding partners
Payments received from transmission project joint funding partners

Distributions from equity-method investments, return of investment			—		11,287

Purchases of equity securities			(2,281)		(28,063)
Purchases of held-to-maturity securities			(868)		(31,017)
Proceeds from the sale of equity securities			6,252		56,728

Other

Other

Other	Other		5,996		7,407
Net cash used in investing activities	Net cash used in investing activities		(403,172)		(277,796)
Financing Activities:	Financing Activities:						Financing Activities:
Issuance of long-term debt	Issuance of long-term debt		872,000		150,000
Discount on issuance of long-term debt	Discount on issuance of long-term debt		(7,006)		—
Retirement of long-term debt	Retirement of long-term debt		(225,000)		—
Dividends on common stock	Dividends on common stock		(80,698)		(114,400)

Other	Other		1,751		(138)
Net cash provided by financing activities			561,047		35,462
Net increase in cash and cash equivalents			295,948		51,753

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		$	404,881	$	111,828
Supplemental Disclosure of Cash Flow Information:	Supplemental Disclosure of Cash Flow Information:						Supplemental Disclosure of Cash Flow Information:
Cash paid to IDACORP related to income taxes			$	15,333	$	2,532

Cash paid for interest (net of amount capitalized)
Cash paid for interest (net of amount capitalized)
Cash paid for interest (net of amount capitalized)	Cash paid for interest (net of amount capitalized)		$	82,372	$	67,806
Non-cash investing activities:	Non-cash investing activities:
Additions to property, plant and equipment in accounts payable			$	127,076	$	65,374
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.

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IDACORP, INC. AND IDAHO POWER COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This Quarterly Report on Form 10-Q is a combined report of IDACORP and Idaho 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 FERC. Idaho Power is the parent of IERCo, a ~~joint venturer in~~joint-owner of BCC, which mines and supplies coal to the Jim Bridger plant owned in part by Idaho Power.

IDACORP’s other notable wholly-owned subsidiaries include IFS, an investor in affordable housing and other real estate tax credit investments, and Ida-West, an operator of small hydropower generation projects that satisfy the requirements of the 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 ~~September 30, 2023,~~March 31, 2024, condensed consolidated statements of income for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023, ~~and 2022,~~ and condensed consolidated cash flows for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 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 the ~~2022~~2023 Annual 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 liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting

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period. These estimates involve judgments with respect to, among other things,

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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.

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Income Tax Expense

The following table provides a summary of income tax expense for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ (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)	$	66,650		$	63,500		$	65,916		$	62,960
Additional ADITC amortization		(7,500)			—			(7,500)			—

Excess deferred income tax reversal
Excess deferred income tax reversal
Excess deferred income tax reversal	Excess deferred income tax reversal	(8,013)			(8,554)			(8,013)			(8,554)

Income tax return adjustments		(8,227)			(2,692)			(7,732)			(2,827)

Other(1)	Other(1)	(13,910)			(22,486)			(12,397)			(20,161)
Income tax expense		$	29,000		$	29,768		$	30,274		$	31,418

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		%	12.1		%	11.8		%	12.8		%	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.

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 IPUC and OPUC orders described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2022~~2023 Annual Report. In March 2024, Idaho Power provided notice to the IPUC of its intent to file a limited issue rate case in Idaho on or after May 31, 2024.

~~On June 1,~~In December 2023, Idaho Power filed a general rate case with the ~~IPUC.~~OPUC. The filing was based on a ~~2023~~2024 test year and requested ~~approximately $111 million in additional Idaho jurisdiction~~an overall annual revenues, which is net of a corresponding proposed PCA decrease of $173.4 million and a reduction to annual energy efficiency rider collection of $3.5 million. As filed, this request would have resulted in an 8.61 percent overall average net rate increase ~~for Idaho Power's Idaho customers.~~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 ~~$3.9 billion~~ ~~Idaho~~$188.9 million Oregon-jurisdiction retail rate base. The ~~$3.9 billion~~$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 ~~mechanisms.~~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 ~~4.895~~5.104 percent and an overall cost of capital of ~~7.702~~7.807 percent.

~~On October 27, 2023,~~ Idaho Power ~~the Staff of the IPUC, and intervening parties publicly filed~~has reached a settlement ~~stipulation (2023 General Rate Case Settlement Stipulation) with~~in principle for the ~~IPUC related to the Idaho general rate case filing. If the IPUC approves the~~

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~~2023 General Rate Case Settlement Stipulation, it will authorize Idaho Power's filed~~ general rate case with the ~~modifications contained~~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 ADITC and Revenue Sharing Mechanism

A May 2018 Idaho settlement stipulation related to tax reform (2018 Settlement Stipulation) and the 2023 Settlement Stipulation are each described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2023 ~~General Rate Case Settlement Stipulation.~~

~~As modified by the proposed~~Annual Report. The 2023 ~~General Rate Case~~ 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 9.12 percent Idaho ~~Power’s general rate case filing contains~~ROE. The settlement stipulations also provide for the ~~following significant terms, among other items:~~

•potential sharing between Idaho Power ~~would implement revised tariff schedules designed to increase annual~~and Idaho customers of Idaho-jurisdictional ~~retail revenue by $54.7 million, or 4.25 percent, effective January 1, 2024. The $54.7 million of additional annual revenue is net~~earnings in excess of a ~~PCA rate decrease of $168.3 million (moving that amount from collection via the PCA and into base rates) and a reduction to annual energy efficiency rider collection of $3.5 million.~~

•A 9.6 percent ~~return on equity and a 7.247 percent authorized rate of return based on a non-specified cost of debt and capital structure, applied to an Idaho-jurisdictional rate base of approximately $3.8 billion.~~

•~~Modifications to~~Idaho ROE. In addition, the ~~Idaho-jurisdiction PCA including establishment of a new level of base net power supply expense of $484.9 million, which includes the transfer of $168.3 million from current PCA rates to base rates;~~

•Modifications to the energy efficiency rider to support the transfer of $3.5 million of energy efficiency labor-related cost collection from the annual energy efficiency rider into base rates, warranting a decrease in the energy efficiency rider rate from 3.1 percent to 2.35 percent;

•~~Modifications to the FCA mechanism to support Idaho Power's proposed rate designs and to reflect updated fixed costs;~~

•~~Continued deferral of incremental vegetation management and insurance costs, as measured from 2022 actual costs, through the earlier of Idaho Power’s next Idaho general rate case or 2025;~~

•~~An annual $18 million increase in collection of Idaho Power’s regulatory asset associated with its defined benefit pension plan contributions;~~

•~~Modifications~~2023 Settlement Stipulation included modifications to Idaho Power’s ADITC and revenue sharing mechanism beginning in 2024 to (1) to include an additional amount of investment tax credits equal to the incremental investment tax credits generated from Idaho Power’s investment in 2023 battery storage projects; (2) to remove the existing $25 million annual cap on the amount of accelerated amortization of ADITCs; (3) to establish a minimum specified Idaho ROE of 9.12 percent for additional amortization of ADITCs; (4) to establish a 9.6 percent Idaho ROE as the threshold for revenue sharing of Idaho-jurisdiction earnings between Idaho Power and ~~Idaho customers; and (5) to~~(3) implement all revenue sharing through the PCA rather than using a portion ~~offsetting~~of revenue sharing to offset customer-funded pension ~~obligations;~~

•~~Agreement that Idaho Power’s share of capital expenditures at jointly-owned coal-fired plants through year-end 2022 was prudently incurred;~~

•~~Deferral and amortization of annual differences between certain periodic maintenance costs at Idaho Power's natural gas-fired power plants; and~~

•~~Modifications to the residential price modernization plan proposed by Idaho Power in its initial filing, as well as other modifications to Idaho Power’s proposed rate design.~~

The 2023 General Rate Case Settlement Stipulation further provides for future workshops and discussions among the parties on time-of-use rates and other unresolved topics and further review of Idaho Power plant investments by IPUC Staff to be completed by December 1, 2023. To the extent IPUC Staff identifies potential prudence concerns, those prudence concerns would be addressed in Idaho Power's next general rate case.

The parties to the 2023 General Rate Case Settlement Stipulation have requested that the IPUC issue an order approving the agreed-upon rates effective January 1, 2024. The 2023 General Rate Case Settlement Stipulation does not preclude Idaho Power from filing another general rate case in Idaho at any time in the future. If the IPUC were to deny the 2023 General Rate Case Settlement Stipulation or materially change its terms, no party would be bound by the terms of the stipulation. As of the date of this report, the IPUC's determination in this matter is pending.

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~~Idaho ADITC and Revenue Sharing Mechanism~~

A May 2018 Idaho settlement stipulation related to tax reform (May 2018 Idaho Tax Reform Settlement Stipulation) is described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2022 Annual Report and includes provisions for the accelerated amortization of ADITC to help achieve a minimum 9.4 percent 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. The settlement stipulation also provides for the potential sharing between Idaho Power and Idaho customers of Idaho-jurisdictional earnings in excess of a 10.0 percent Idaho ROE, which would adjust to the authorized return on equity in the next general rate case currently pending before the IPUC.obligations.

Based on its estimate of full-year ~~2023~~2024 Idaho ROE, in the ~~three and nine months ended September 30, 2023,~~first quarter of 2024, Idaho Power recorded ~~zero and $7.5~~$12.5 million ~~respectively, for~~in additional ADITC amortization under the ~~May 2018 Idaho Tax Reform~~2023 Settlement Stipulation. ~~The additional ADITC amortization was recorded in income tax expense on Idaho Power's condensed consolidated statements of income.~~ Accordingly, at ~~September 30, 2023, $37.5~~March 31, 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~~during the first quarter of ~~earnings with customers during 2022.~~2023, based on its then-current estimate of full-year 2023 Idaho ROE.

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~~If approved by the IPUC, the 2023 General Rate Case Settlement Stipulation would modify the Idaho ADITC and revenue sharing mechanism as noted above.~~

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 ~~May 2023~~,April 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 ~~IPUC~~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 ~~approving recovery of~~on the proposed settlement stipulation.

In April 2024, Idaho Power filed an ~~incremental~~ ~~$200.2~~application with the IPUC requesting a $35.7 million of ~~Idaho-jurisdiction~~net decrease in PCA revenues, ~~which included an increase in the forecasted power supply cost component and the deferral balance component. The IPUC~~ ~~directed Idaho Power to spread recovery of the $190.2 million deferral balance component of the PCA over a two-year periodfrom June 1, 2023, to May 31, 2025, resulting in a total PCA increase of $105.1 million,~~ effective for the ~~PCA collection period from June 1, 2023, to May 31, 2024. The order defers collection of $95.1 million of deferred PCA costs to the subsequent annual~~2024-2025 PCA collection period from June 1, 2024, to May 31, ~~2025~~.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 to 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 to March 2024 forecast period under~~2024-March 2025 PCA deferral period. As of the ~~PCA. If approved by~~date of this report, the IPUC ~~the 2023 General Rate Case Settlement Stipulation would modify the PCA mechanism as noted above.~~

~~In May 2023, the OPUC~~has not yet issued an order ~~approving Idaho Power's annual power cost update settlement, for a $7.7 million increase in Oregon-jurisdiction rates effective June 1, 2023.~~on the company's requested rate decrease.

Idaho Fixed Cost Adjustment Mechanism

The ~~Idaho-jurisdiction~~ 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 ~~kWh~~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 ~~kWh~~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 ~~May 2023,~~March 2024, Idaho Power filed its annual FCA update with the IPUC, ~~issued~~requesting approval to recover its 2023 FCA balance of $36.8 million, an ~~order approving a~~ $~~10.1~~11.7 million ~~decrease 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. Beginning with~~2025. As of the ~~2024 FCA deferral, if approved by~~date of this report, the IPUC t~~he 2023 General Rate Case Settlement~~

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~~Stipulation would update~~has not yet issued an order on the ~~authorized fixed-cost recovery amount per customer and would modify parts of the FCA mechanism to support Idaho Power's proposed~~company's requested rate ~~designs, as noted above.~~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).

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 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. Uncollected amounts tracked in this balancing account were included for recovery in the 2023 General Rate Case Settlement Stipulation. 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 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 September 30, 2023, Idaho Power's deferral of Idaho-jurisdiction costs related to the WMP was $45.4 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. As noted above, if approved by the IPUC, the 2023 General Rate Case Settlement Stipulation would allow continued deferral of incremental vegetation management and insurance costs, as measured from 2022 actual costs, through the earlier of Idaho Power’s next Idaho general rate case or 2025.

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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, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands):


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Revenue from contracts with customers	Revenue from contracts with customers	$	496,632	$	515,395	$	1,267,527	$	1,179,059
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	13,003		1,706		84,173		39,631
Total electric utility operating revenues	Total electric utility operating revenues	$	509,635	$	517,101	$	1,351,700	$	1,218,690
Total electric utility operating revenues
Total electric utility operating revenues

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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, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands):


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Retail revenues:	Retail revenues:
Residential (includes $5,583, $(1,447), $20,170, and $14,104, respectively, related to the FCA)(1)		$	181,736	$	176,514	$	505,158	$	470,402
Commercial (includes $328, $142, $900, and $730, respectively, related to the FCA)(1)		107,971		101,794		283,478		259,620
Retail revenues:
Retail revenues:
Residential (includes $(687) and $8,909, respectively, related to the FCA)(1)
Residential (includes $(687) and $8,909, respectively, related to the FCA)(1)
Residential (includes $(687) and $8,909, respectively, related to the FCA)(1)
Commercial (includes $(53) and $276, respectively, related to the FCA)(1)
Commercial (includes $(53) and $276, respectively, related to the FCA)(1)
Commercial (includes $(53) and $276, respectively, related to the FCA)(1)
Industrial	Industrial	67,522		60,306		181,312		161,353
Industrial
Industrial
Irrigation
Irrigation
Irrigation	Irrigation	104,645		105,365		168,358		164,065

Deferred revenue related to HCC relicensing AFUDC(2)	Deferred revenue related to HCC relicensing AFUDC(2)	(2,815)		(2,815)		(6,861)		(6,861)

Deferred revenue related to HCC relicensing AFUDC(2)

Deferred revenue related to HCC relicensing AFUDC(2)

Total retail revenues

Total retail revenues

Total retail revenues	Total retail revenues	459,059		441,164		1,131,445		1,048,579
Less: FCA mechanism revenues(1)	Less: FCA mechanism revenues(1)	(5,911)		1,305		(21,070)		(14,834)
Less: FCA mechanism revenues(1)
Less: FCA mechanism revenues(1)
Wholesale energy sales
Wholesale energy sales
Wholesale energy sales	Wholesale energy sales	5,065		34,501		50,461		44,516
Transmission wheeling-related revenues	Transmission wheeling-related revenues	20,090		22,882		61,701		57,670
Transmission wheeling-related revenues
Transmission wheeling-related revenues
Energy efficiency program revenues
Energy efficiency program revenues
Energy efficiency program revenues	Energy efficiency program revenues	10,498		8,292		22,265		21,490
Other revenues from contracts with customers	Other revenues from contracts with customers	7,831		7,251		22,725		21,638
Other revenues from contracts with customers
Other revenues from contracts with customers
Total revenues from contracts with customers	Total revenues from contracts with customers	$	496,632	$	515,395	$	1,267,527	$	1,179,059
Total revenues from contracts with customers
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 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 $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."

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The table below presents the FCA mechanism revenues and other revenues for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands):


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
FCA mechanism revenues	FCA mechanism revenues	$	5,911	$	(1,305)	$	21,070	$	14,834
FCA mechanism revenues
FCA mechanism revenues
Derivative revenues
Derivative revenues
Derivative revenues	Derivative revenues	7,092		3,011		63,103		24,797
Total alternative revenue programs and other revenues	Total alternative revenue programs and other revenues	$	13,003	$	1,706	$	84,173	$	39,631
Total alternative revenue programs and other revenues
Total alternative revenue programs and other revenues

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Receivables and Allowance for Uncollectible Accounts

The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ (in thousands):


			Nine months ended September 30,
		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		2,040			1,785
Write-offs, net of recoveries	Write-offs, net of recoveries		(2,939)			(1,631)
Balance at end of period	Balance at end of period		$	4,135		$	4,653
Allowance for uncollectible accounts as a percentage of customer receivables	Allowance for uncollectible accounts as a percentage of customer receivables		3.0		%	3.5		%	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

OnIdaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC. In February and March ~~8, 2023,~~2024, Idaho Power ~~issued $60 million~~received orders from the IPUC, OPUC, and WPSC authorizing the company to issue and sell from time to 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. On September 11, 2023, under the shelf registration statement with the SEC, Idaho Power issued $350 million in aggregate principal amount of 5.80% first mortgage bonds, secured medium-term notes, Series M, maturing on April 1, 2054.

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, as described in Note 5 - "Long-Term Debt" to the consolidated financial statements included in the 2022 Annual Report. On March 31 and May 17, 2023, Idaho Power repaid $100 million and $50 million of the Term Loan Facility, respectively. As of September 30, 2023, there was no remaining outstanding principal balance of the Term Loan Facility.regulatory orders.

6. COMMON STOCK

IDACORP Common Stock

During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 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 ~~53,345~~60,856 shares of common stock ~~using original issuances of shares~~ pursuant to the IDACORP, Inc. 2000 Long-Term Incentive and Compensation Plan, including ~~13,842~~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.

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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 ~~September 30, 2023,~~March 31, 2024, the leverage ratios for IDACORP and Idaho Power were 49 percent and 50 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 ~~September 30, 2023.~~March 31, 2024. There are additional 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 ~~September 30, 2023,~~March 31, 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 ~~September 30, 2023,~~March 31, 2024, Idaho Power's common equity capital was 50 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.

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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, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands, except for per share amounts).


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Numerator:	Numerator:
Numerator:
Numerator:
Net income attributable to IDACORP, Inc.
Net income attributable to IDACORP, Inc.
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	$	105,264	$	106,380	$	229,936	$	216,928
Denominator:	Denominator:
Denominator:
Denominator:
Weighted-average common shares outstanding - basic	Weighted-average common shares outstanding - basic	50,726		50,668		50,713		50,656
Effect of dilutive securities		79		54		49		33
Weighted-average common shares outstanding - basic
Weighted-average common shares outstanding - basic
Effect of dilutive securities(1)
Effect of dilutive securities(1)
Effect of dilutive securities(1)
Weighted-average common shares outstanding - diluted
Weighted-average common shares outstanding - diluted
Weighted-average common shares outstanding - diluted	Weighted-average common shares outstanding - diluted	50,805		50,722		50,762		50,689
Basic earnings per share	Basic earnings per share	$	2.08	$	2.10	$	4.53	$	4.28
Basic earnings per share
Basic earnings per share
Diluted earnings per share	Diluted earnings per share	$	2.07	$	2.10	$	4.53	$	4.28
Diluted earnings per share
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 ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, Idaho Power entered into:

•~~an agreement~~two agreements in ~~April 2023~~January and February 2024 to ~~utilize the storage capacity of a 150 MW battery storage~~replace expiring PURPA-qualifying hydropower facility power purchase agreements, which increased Idaho Power's contractual purchase obligations by approximately ~~$430.9~~$38.0 million over the 20-year term of the ~~contract. The facility is scheduled to be online in June 2025;~~agreements; and

•an ~~agreement in May 2023 to replace an expiring PURPA-qualifying hydropower facility power~~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 ~~$29.1~~$84.3 million over the ~~20-year~~5-year term of the ~~contract;~~

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•~~an agreement~~contract commencing in June 2023 to utilize up to one billion cubic feet of natural gas storage capacity, starting in April 2025, which increased Idaho Power's contractual purchase obligations by approximately $24.4 million over the 10-year term of the contract;2026.

•an agreement in June 2023 to acquire and own 36 MW of battery storage assets, which increased Idaho Power's contractual purchase obligations by approximately $52.6 million over the 1-year term of the contract. The batteries are scheduled to be online in the spring of 2024. During the nine months ended September 30, 2023, Idaho Power made payments of $11.1 million related to this obligation; and

•~~an agreement in July 2023 to meet certain environmental mitigation requirements in the State of Oregon for the Boardman-to-Hemingway transmission line project, which increased Idaho Power's contractual obligations by $16.9 million over the approximate 1-year term of the contract.~~ ~~During the nine months ended September 30, 2023, Idaho Power made payments of $3 million related to this obligation.~~

In July 2023, IFS committed to invest $35 million in an affordable housing tax credit project over an 18-year term. During the nine months ended September 30, 2023, IFS made $5.7 million in capital contributions toward this commitment.

In October 2023, Idaho Power entered into two new contracts to acquire and own 82 MW of battery storage assets, which collectively increase Idaho Power's contractual purchase obligations by approximately $87.1 million over the approximate 2-year terms of the contracts.

Except as disclosed in this Note 8, during the ~~nine~~three months ended ~~September 30, 2023,~~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.

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

In March 2023, Idaho Power executed a purchase, sale, and security agreement with the 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, 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 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.

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 ~~September 30, 2023,~~March 31, 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 ~~September 30, 2023,~~March 31, 2024, the value of BCC's reclamation trust fund ~~was $227.1 million. During~~exceeded WDEQ's guarantee requirement for the ~~nine months ended September 30, 2023, the~~total reclamation ~~trust fund made $3.8 million of 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 ~~September 30, 2023,~~March 31, 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.

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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 ~~Idaho Power’s~~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.

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, the 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

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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 ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ (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		$	6,549	$	13,006	$	153	$	296	$	165	$	267	$	6,867	$	13,569
Interest cost	Interest cost		13,149		9,918		1,331		974		745		528		15,225		11,420
Expected return on plan assets	Expected return on plan assets		(15,303)		(18,087)		—		—		(412)		(587)		(15,715)		(18,674)
Amortization of prior service cost	Amortization of prior service cost		2		1		54		70		416		(1)		472		70
Amortization of net loss	Amortization of net loss		—		3,068		143		1,057		(310)		(7)		(167)		4,118
Net periodic benefit cost	Net periodic benefit cost		4,397		7,906		1,681		2,397		604		200		6,682		10,503
Regulatory deferral of net periodic benefit cost(1)	Regulatory deferral of net periodic benefit cost(1)		(4,223)		(7,549)		—		—		—		—		(4,223)		(7,549)
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)		$	4,462	$	4,645	$	1,681	$	2,397	$	604	$	200	$	6,747	$	7,242

(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, ~~$5.1~~$9.4 million and ~~$4.9~~$5.3 million, respectively, were recognized in "Other operations and maintenance" and ~~$1.7~~$2.0 million and ~~$2.3~~$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 ~~September 30, 2023~~March 31, 2024 and ~~2022.~~2023.

The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the nine months ended September 30, 2023 and 2022 (in thousands).
Pension Plan SMSP Postretirement
Benefits Total
2023 2022 2023 2022 2023 2022 2023 2022
Service cost $ 22,705 $ 39,019 $ 459 $ 889 $ 494 $ 803 $ 23,658 $ 40,711
Interest cost 38,458 29,753 3,992 2,923 2,235 1,584 44,685 34,260
Expected return on plan assets (46,171) (54,261) — — (1,238) (1,763) (47,409) (56,024)
Amortization of prior service cost 5 5 164 209 1,249 (4) 1,418 210
Amortization of net loss — 9,205 428 3,172 (928) (23) (500) 12,354
Net periodic benefit cost 14,997 23,721 5,043 7,193 1,812 597 21,852 31,511
Regulatory deferral of net periodic benefit cost(1)
(14,344) (22,650) — — — — (14,344) (22,650)
Previously deferred pension costs recognized(1)
12,865 12,865 — — — — 12,865 12,865
Net periodic benefit cost recognized for financial reporting(1)(2)
$ 13,518 $ 13,936 $ 5,043 $ 7,193 $ 1,812 $ 597 $ 20,373 $ 21,726

(2) Of total net periodic benefit cost recognized for financial reporting, $15.5 million and $14.8 million, respectively, were recognized in "Other operations and maintenance" and $4.9 million and $6.9 million, respectively, were recognized in "Other income, net" on the condensed consolidated statements of income of the companies for the nine months ended September 30, 2023 and 2022.

Idaho Power has no minimum contribution requirement to its defined benefit pension plan in ~~2023,~~2024, and during the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, Idaho Power ~~contributed $48~~made no contributions. Idaho Power is considering contributing up to $30 million to its defined benefit pension plan during 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

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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.

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.

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The table below presents the gains and losses on derivatives not designated as hedging instruments for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 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 September 30,						Nine months ended September 30,
			2023			2022			2023			2022
						Gain/(Loss) on Derivatives Recognized in Income(1)
				Gain/(Loss) on Derivatives Recognized in Income(1)
				Gain/(Loss) on Derivatives Recognized in Income(1)
		Location of Realized Gain/(Loss) on Derivatives Recognized in Income
			Location of Realized Gain/(Loss) on Derivatives Recognized in Income
		Location of Realized Gain/(Loss) on Derivatives Recognized in Income
				2024
			2024
			2024
Financial swaps
Financial swaps
Financial swaps
Financial swaps
Financial swaps
Financial swaps
Financial swaps	Financial swaps	Operating revenues		$	253		$	(3,763)		$	4,216		$	(4,758)
Financial swaps	Financial swaps	Purchased power		(8,541)			3,038			(8,647)			1,957
Financial swaps	Financial swaps	Fuel expense		(7,932)			24,178			4,182			28,629

Forward contracts	Forward contracts	Operating revenues		—			502			1,710			713

Forward contracts

Forward contracts
Forward contracts
Forward contracts
Forward contracts
Forward contracts
Forward contracts	Forward contracts	Purchased power		(1,454)			(2,430)			(3,504)			(2,640)
Forward contracts	Forward contracts	Fuel expense		(202)			(207)			(641)			(269)

(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 ~~September 30, 2023,~~March 31, 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 ~~Investors Service~~ and ~~S&P Global Ratings.~~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 ~~September 30, 2023,~~March 31, 2024, was ~~$25.0~~$26.4 million. As of March 31, 2024, Idaho Power posted ~~$29.1~~$27.1 million of cash collateral

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related to its derivative instruments. If the credit-risk-related contingent features underlying these agreements were triggered on ~~September 30, 2023,~~March 31, 2024, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional ~~$5.4~~$6.1 million to cover open liability positions as well as completed transactions that have not yet been paid.

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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 ~~September 30, 2023,~~March 31, 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

September 30, 2023
March 31, 2024
March 31, 2024
March 31, 2024
Current:
Current:
Current:	Current:
Financial swaps	Financial swaps	Other current assets		$	811	$	(315)		$	496	$	315	$	(315)		$	—
Financial swaps	Financial swaps	Other current liabilities		2,668		(2,668)			—		22,108		(21,778)		(1)	330

Forward contracts	Forward contracts	Other current liabilities		—		—			—		1,808		—			1,808
Long-term:
Financial swaps		Other assets		141		(90)			51		90		(90)			—
Financial swaps		Other liabilities		522		(522)			—		632		(632)		(2)	—

Total				$	4,142	$	(3,595)		$	547	$	24,953	$	(22,815)		$	2,138

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 ~~$19.1~~$18.2 million of collateral receivable at ~~September 30, 2023.~~March 31, 2024.

(2) Long-term liability derivative amounts offset include ~~$110~~$114 thousand of collateral receivable at ~~September 30, 2023.~~March 31, 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 ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ (in thousands of units):

September 30,

March 31,

Commodity

Units

2023

2022

Commodity

Units

2024

2023

Electricity purchases

MWh

434

344

Electricity sales

MWh

—

Natural gas purchases

MMBtu

27,283

14,958

Natural gas sales

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

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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:

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• 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 ~~nine~~three months ended ~~September 30, 2023.~~March 31, 2024.

Certain instruments have been valued using 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 ~~September 30, 2023,~~March 31, 2024, and December 31, ~~2022~~2023 (in ~~thousands of dollars)~~thousands).


			September 30, 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)		$	16,846	$	—	$	—	$	16,846	$	16,505	$	—	$	—	$	16,505
Idaho Power	Idaho Power		360,343		—		—		360,343		34,468		—		—		34,468
Derivatives	Derivatives		547		—		—		547		40,518		400		—		40,918
Equity securities	Equity securities		30,157		—		—		30,157		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)		—		—		—		3,852		—		—		—		2,796
Liabilities:	Liabilities:
Derivatives	Derivatives		$	330	$	1,808	$	—	$	2,138	$	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 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.

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~~held in a rabbi trust.~~

The table below presents the carrying value and estimated fair value of financial instruments that are not reported at fair value, as of ~~September 30, 2023,~~March 31, 2024, and December 31, ~~2022,~~2023, using available market information and appropriate valuation methodologies (in ~~thousands of dollars)~~thousands).


		September 30, 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)	31,035		26,024		30,475		25,452
Liabilities:	Liabilities:									Liabilities:
Long-term debt (including current portion)(1)	Long-term debt (including current portion)(1)	2,826,150		2,434,357		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)	$	31,035	$	26,024	$	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)	2,826,150		2,434,357		2,194,145		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 ~~$5.0~~$3.3 million as of both ~~September 30, 2023,~~March 31, 2024, and December 31, ~~2022.~~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 ~~September 30, 2023~~March 31, 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.

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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										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:
Revenues
Revenues
Revenues
Net income attributable to IDACORP, Inc.

		Utility Operations		All Other		Eliminations		Consolidated Total
Three months ended September 30, 2023:
Revenues		$	509,635	$	1,271	$	—	$	510,906
Net income attributable to IDACORP, Inc.		103,022		2,242		—		105,264
Total assets as of September 30, 2023		8,153,001		213,833		(73,300)		8,293,534
Three months ended September 30, 2022:
Revenues		$	517,101	$	911	$	—	$	518,012
Net income attributable to IDACORP, Inc.		104,532		1,848		—		106,380
Nine months ended September 30, 2023:
Revenues		$	1,351,700	$	2,703	$	—	$	1,354,403
Net income attributable to IDACORP, Inc.		225,812		4,124		—		229,936
Nine months ended September 30, 2022:
Revenues		$	1,218,690	$	2,333	$	—	$	1,221,023
Net income attributable to IDACORP, Inc.		213,181		3,747		—		216,928

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14. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME

The table below presents changes in components of AOCI, net of tax, during the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands). Items in parentheses indicate charges to AOCI.


		Defined Benefit Pension Items				Defined Benefit Pension Items
		Three months ended September 30,				Nine months ended September 30,
		2023		2022		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	$	(12,629)	$	(38,366)	$	(12,922)	$	(40,040)
Amounts reclassified out of AOCI	Amounts reclassified out of AOCI	146		837		439		2,511
Amounts reclassified out of AOCI
Amounts reclassified out of AOCI
Balance at end of period	Balance at end of period	$	(12,483)	$	(37,529)	$	(12,483)	$	(37,529)
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, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands). Items in parentheses indicate increases to net income.


		Amount Reclassified from AOCI
		Amount Reclassified from AOCI
		Amount Reclassified from AOCI
		Amount Reclassified from AOCI
Details About AOCI	Details About AOCI	Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
		2024
		2024
		2024
Amortization of defined benefit pension items(1)
Amortization of defined benefit pension items(1)
Amortization of defined benefit pension items(1)	Amortization of defined benefit pension items(1)
Prior service cost	Prior service cost	$	54	$	70	$	164	$	209
Prior service cost
Prior service cost
Net loss
Net loss
Net loss	Net loss	143		1,057		428		3,172
Total before tax	Total before tax	197		1,127		592		3,381
Total before tax
Total before tax
Tax benefit(2)
Tax benefit(2)
Tax benefit(2)	Tax benefit(2)	(51)		(290)		(153)		(870)

Total reclassification for the period, net of tax	Total reclassification for the period, net of tax	$	146	$	837	$	439	$	2,511

Total reclassification for the period, net of tax

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.

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15. CHANGES IN IDAHO POWER RETAINED EARNINGS

The table below presents changes in Idaho Power retained earnings during the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands).


		Three months ended September 30,				Nine months ended September 30,
		2023		2022		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	$	1,918,759	$	1,728,635	$	1,836,547	$	1,696,304
Net income	Net income	103,022		104,532		225,812		213,181
Net income
Net income
Dividends to parent
Dividends to parent
Dividends to parent	Dividends to parent	(40,218)		(38,124)		(80,796)		(114,442)
Balance at end of period	Balance at end of period	$	1,981,563	$	1,795,043	$	1,981,563	$	1,795,043
Balance at end of period
Balance at end of period

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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 ~~September 30, 2023,~~March 31, 2024, the related condensed consolidated statements of income, comprehensive income, ~~and~~ equity ~~for the three-month~~ and ~~nine-month periods ended September 30, 2023 and 2022, and of~~ cash flows for the ~~nine-month~~three-month periods ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ 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

~~November~~May 2, ~~2023~~2024

3534

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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 ~~September 30, 2023,~~March 31, 2024, the related condensed consolidated statements of income, ~~and~~ comprehensive income ~~for the three-month~~ and ~~nine-month periods ended September 30, 2023 and 2022, and of~~ cash flows for the ~~nine-month~~three-month periods ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ 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

~~November~~May 2, ~~2023~~2024

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

AND RESULTS OF OPERATIONS

In 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 the ~~2022~~2023 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 IPUC, OPUC, and 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 IERCo, a ~~joint venturer in~~joint-owner of BCC, which mines and supplies coal to the Jim Bridger plant owned in part by Idaho Power. IDACORP’s other notable subsidiaries include IFS, an investor in affordable housing and other real estate tax credit investments, and Ida-West, an operator of small hydropower generation projects that satisfy the requirements of the 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 ~~October 27, 2023,~~March 29, 2024, Idaho Power ~~the Staff of~~provided notice to the IPUC ~~and intervening parties publicly filed~~of its intent to file a ~~settlement stipulation (2023 General Rate Case Settlement Stipulation) with the IPUC related to the Idaho general~~limited issue rate case ~~that~~in Idaho ~~Power had filed~~ on June 1, 2023. The 2023 General Rate Case Settlement Stipulation is subject to approval by the IPUC. The general rate case filing and 2023 General Rate Case Settlement Stipulation are described more fully in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.or after May 31, 2024.

•~~In September 2023,~~Idaho Power's customer count grew 2.5 percent during the twelve months ended March 31, 2024, and Idaho Power 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 December 2022.

•To help meet peak capacity and energy needs in 2026 and beyond, in March 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 daily basis during summer months beginning in 2026 for a term of at least five years, and requested approval of the agreement from the IPUC. Also, in April 2024, Idaho Power filed ~~its 2023 IRP with the IPUC and OPUC. The 2023 IRP preferred resource portfolio plans~~a request for a ~~significant increase~~CPCN in its Idaho jurisdiction for the acquisition of 150 MW of new battery storage assets with an expected in-service date in 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 continues to evaluate its RFP for additional resources.

•The company’s long-range planning process has identified a potential need in 2028 for a combination of energy and capacity resources ~~over~~that provide approximately 138 MW of peak capacity and up to 555 MW of energy resources. In February 2024, Idaho Power filed an application with the ~~next 20 years~~OPUC to ~~meet growing demand, primarily solar, wind,~~approve an RFP to procure these resources and ~~battery resource additions. In addition,~~a request for the ~~preferred resource portfolio includes conversions of multiple jointly-owned coal-fired generation units~~OPUC to natural gas-fired generation units. To support the resource additions, the preferred portfolio also includes the Boardman-to-Hemingway transmission line with an in-service date as early as 2026 and three Gateway West transmission line segments phased in with in-service dates from 2028 through 2040.partially waive certain competitive bidding rules.

•In September 2023, IDACORP's board of directors approved a 5.1 percent increase in the regular quarterly cash dividend on IDACORP’s common stock from $0.79 per share to $0.83 per share, as a part of a 177 percent increase in quarterly dividends approved over the last twelve years.

•In March 2023, Idaho Power executed an agreement with the BPA to transfer BPA's 24 percent interest in the Boardman-to-Hemingway 500-kV 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 (EFSC) order granting a site certificate for the Boardman-to-Hemingway transmission line project. In June 2023, both the IPUC and OPUC granted CPCNs related to the construction of the Boardman-to-Hemingway transmission line.

•In April and May 2023, the IPUC approved Idaho Power's applications for revised special contracts for electric service between Idaho Power and two large industrial customers, which were modeled after Idaho Power's Clean Energy Your Way program for the procurement of renewable energy for customers.

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•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 MW solar facility, with a scheduled in-service date of March 2025. Idaho Power plans to sell that output exclusively to a large industrial customer under an agreement modeled after Idaho Power's Clean Energy Your Way program.

•Also in April 2023, Idaho Power entered into a 20-year agreement to utilize the storage capacity from a 150-MW battery storage facility scheduled to be online in June 2025. Idaho Power intends 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. In July 2023, 80 MW of company-owned battery storage came online.

•Idaho Power issued a formal RFP in April 2023, soliciting bids for new energy and capacity resources as well as energy that can be delivered via transmission, beginning in 2026. At the time of the RFP issuance, Idaho Power’s long-range planning process had identified a potential need in 2026 and 2027 of approximately 350 MW of peak capacity, which could be met by approximately 1,100 MW of variable energy resources. RFP procurement decisions will be based on the most up-to-date energy and capacity need information. 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 as early as 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 ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ (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 September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Idaho Power net income	Idaho Power net income	$	103,022	$	104,532	$	225,812	$	213,181
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.	$	105,264	$	106,380	$	229,936	$	216,928
Weighted average outstanding shares – diluted	Weighted average outstanding shares – diluted	50,805		50,722		50,762		50,689
Weighted average outstanding shares – diluted
Weighted average outstanding shares – diluted
IDACORP, Inc. earnings per diluted share	IDACORP, Inc. earnings per diluted share	$	2.07	$	2.10	$	4.53	$	4.28
IDACORP, Inc. earnings per diluted share
IDACORP, Inc. earnings per diluted share

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The table below provides a reconciliation of net income attributable to IDACORP for the three ~~and nine~~ months ended ~~September 30, 2023,~~March 31, 2024, from the same ~~periods~~period in ~~2022~~2023 (items are in millions and are before related income tax impact unless otherwise noted):.

Three months ended Nine months ended
Net income attributable to IDACORP, Inc. - September 30, 2022 $ 106.4 $ 216.9
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms 4.6 11.4
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms (17.2) (18.1)
Idaho FCA revenues 7.2 6.2
Retail revenues per MWh, net of associated power supply costs and power cost adjustment mechanisms
0.9 11.0
Transmission wheeling-related revenues (2.8) 4.0
Other O&M expenses 4.9 8.3
Depreciation expense (4.9) (18.1)
Other changes in operating revenues and expenses, net 5.3 1.7
(Decrease) Increase in Idaho Power operating income (2.0) 6.4
Non-operating expense, net (0.5) 5.1
Additional ADITC amortization — 7.5
Income tax expense, excluding additional ADITC amortization 1.0 (6.4)
Total (decrease) increase in Idaho Power net income (1.5) 12.6
Other IDACORP changes (net of tax) 0.4 0.4
Net income attributable to IDACORP, Inc. - September 30, 2023 $ 105.3 $ 229.9

~~Net Income - Third Quarter~~


	Three months ended
Net income attributable to IDACORP, Inc. - March 31, 2023		$	56.1
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms	4.7
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms	(9.1)
Retail revenues per MWh, net of associated power supply costs, and power cost adjustment and FCA mechanisms	4.5
Transmission wheeling-related revenues, net of PCA impacts	(2.8)
Other O&M expenses	(13.8)
Depreciation expense	(8.6)
Other changes in operating revenues and expenses, net	5.9

Decrease in Idaho Power operating income	(19.2)

Non-operating expense, net	(1.8)

Additional ADITC amortization	8.8
Income tax expense, excluding additional ADITC amortization	3.8
Total decrease in Idaho Power net income		(8.4)
Other IDACORP changes (net of tax)		0.5
Net income attributable to IDACORP, Inc. - March 31, 2024		$	48.2

IDACORP's net income decreased ~~$1.1~~$7.9 million for the ~~third~~first quarter of ~~2023~~2024 compared with the ~~third~~first quarter of ~~2022,~~2023 due primarily to lower net income at Idaho Power. At Idaho Power, customer growth increased operating income by ~~$4.6~~$4.7 million in the ~~third~~first quarter of ~~2023~~2024 compared with the ~~third~~first quarter of ~~2022,~~2023, as the number of Idaho Power customers grew by approximately ~~14,000,~~15,800, or ~~2.3~~2.5 percent, during the twelve months ended ~~September 30, 2023. Usage~~March 31, 2024. The benefit from customer growth was more than offset by a decrease in usage per retail customer ~~decreased operating income by $17.2~~of $9.1 million in the ~~third~~first quarter of ~~2023~~2024 compared with the ~~third~~first quarter of ~~2022. Greater precipitation and~~2023. While all retail customer classes saw a reduction in usage per customer, usage per residential customer decreased most significantly, as more moderate temperatures ~~in Idaho Power's service area~~ led ~~agricultural irrigation~~residential customers to use less energy for heating purposes.

The net increase in retail revenues per ~~customer to operate irrigation pumps~~MWh, net of associated power supply costs, and ~~residential~~power cost adjustment and ~~commercial customers to use less energy per customer for cooling purposes~~FCA mechanisms, increased operating income by $4.5 million in the ~~third~~first quarter of ~~2023~~2024 compared with the ~~third~~first quarter of ~~2022. The revenue impact~~2023. This was due primarily to an overall increase in Idaho base rates, effective January 1, 2024, per the terms of the ~~decrease in sales volumes per customer was partially offset by~~2023 Settlement Stipulation. For more information on the ~~FCA mechanism (applicable~~2023 Settlement Stipulation, see Note 3 - "Regulatory Matters" to ~~residential and small commercial customers), which increased revenues~~the consolidated financial statements included in the ~~third quarter of~~ 2023 ~~by $7.2 million compared with the third quarter of 2022.~~Annual Report.

Transmission wheeling-related revenues, net of PCA impacts, decreased $2.8 million during the ~~third~~first quarter of 2024 compared with the first quarter of 2023. Total revenues earned during the first quarter of 2024 increased 12 percent compared with the first quarter of 2023 due primarily to an increase in wheeling volumes; however, effective January 1, 2024, financial settlement

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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 ~~third~~first quarter of ~~2022, resulting primarily from lower wheeling volumes as energy prices in the western United States were less volatile, reducing transmission system demand and revenues.~~2023.

Total other O&M expenses increased $13.8 million in the ~~third~~first quarter of 2024 compared with the first quarter of 2023, ~~were $4.9~~primarily related to approximately $4 million ~~lower than~~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 ~~third quarter of 2022, due primarily~~interim periods throughout the year. Inflationary pressures on labor-related costs also contributed to ~~lower maintenance~~the increase in other O&M expenses. On a full-year basis for 2024, Idaho Power expects other O&M expenses ~~at hydropower facilities~~related to its employee pension plans and ~~jointly-owned coal plants~~its wildfire mitigation program and related insurance to increase approximately $18 million and $30 million, respectively, compared with 2023, as ~~a result of fewer planned maintenance projects, as well as~~more costs are now recovered in base rates pursuant to the ~~timing of regulatory deferrals.~~2023 Settlement Stipulation.

Depreciation expense increased ~~$4.9~~$8.6 million induring the ~~third~~first quarter of ~~2023~~2024 compared ~~with~~to the ~~third~~first quarter of ~~2022,~~2023, due primarily to an increase in plant-in-service.

Other changes in operating revenues and expenses, net, increased operating income by ~~$5.3~~$5.9 million in the ~~third~~first quarter of 2024 compared with the first quarter of 2023 ~~compared with the third quarter of 2022,~~ due primarily to ~~lower property taxes and~~ a decrease in net power supply expenses that were not deferred for future recovery in rates through Idaho Power's power cost adjustment mechanisms. ~~Lower~~More moderate wholesale natural gas and power ~~purchase volumes~~market prices in the western United States and ~~prices~~increased wholesale energy sales decreased Idaho Power's net power supply expenses in the ~~third quarter of 2023 compared with the third quarter of 2022.~~

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Non-operating expense, net, increased $0.5 million in the third quarter of 2023 compared with the third quarter of 2022. Higher interest expense on long-term debt and other liabilities in the third quarter of 2023 compared with the third quarter of 2022 was mostly offset by an increase in AFUDC and higher interest income due to higher interest rates and higher average cash and cash equivalents balances.

~~Net Income - Year-To-Date 2023~~

IDACORP's net income increased $13.0 million for the first nine months of 2023 compared with the first nine months of 2022, due primarily to higher net income at Idaho Power. At Idaho Power, customer growth increased operating income by $11.4 million for the first nine months of 2023 compared with the first nine months of 2022. Usage per customer decreased operating income by $18.1 million during the first nine months of 2023 compared with the first nine months of 2022, due primarily to the lower usage per customer in the third quarter of 2023 described above. The revenue impact of the decrease in sales volumes per customer was partially offset by the FCA mechanism (applicable to residential and small commercial customers), which increased revenues in the first nine months of 2023 by $6.2 million compared with the first nine months of 2022.

The net increase in retail revenues per MWh, net of associated power supply costs and power cost adjustment mechanisms, increased operating income by $11.0 million in the first nine months of 2023 compared with the first nine months of 2022. The net increase in retail revenues per MWh was primarily due to 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 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 (Bridger Order).

Transmission wheeling-related revenues increased $4.0 million during the first nine months of 2023 compared with the first nine months of 2022, resulting from Idaho Power's OATT rates being 1 percent higher and due to elevated energy prices in the western United States in the first quarter of ~~2023~~2024 compared with the first quarter of ~~2022.~~

Total other O&M expenses in the first nine months of 2023 were $8.3 million lower than the first nine months of 2022, due primarily to lower expenses from scheduled cyclical plant maintenance projects compared with the same period in 2022, as well as the timing of regulatory deferrals and payment credits received related to a jointly-funded infrastructure project. These decreases in other O&M expenses were offset partially by inflationary pressures on labor-related costs.

Depreciation expense increased $18.1 million due primarily to the impacts of the Bridger Order. The Bridger Order resulted in Idaho Power recording the deferral of certain depreciation expense in the second quarter of 2022. In addition, the increase was partially due to an increase in plant-in-service.2023.

Non-operating expense, net, ~~decreased $5.1~~increased $1.8 million in the first ~~nine months~~quarter of ~~2023~~2024 compared with the first ~~nine months~~quarter of ~~2022.~~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, ~~increased~~ as the average construction work in progress balance was ~~higher throughout the first nine months of 2023 compared with the first nine months of 2022.~~higher. Also, interest ~~and investment~~ income increased due to higher interest rates and higher average cash and cash ~~equivalents~~equivalent balances. ~~These increases were partially offset by higher interest expense on long-term debt and other liabilities in the first nine months of 2023 compared with the first nine months of 2022.~~

~~Income~~The decrease in income tax expense inwas principally the ~~first nine months~~result of ~~2023 decreased $1.1 million compared with the first nine months of 2022,~~lower income before income taxes, as ~~increased taxes from higher pre-tax income was more than offset by~~well as an increase in additional ADITC amortization. Based on Idaho Power's current expectations of full-year ~~2023~~2024 results, Idaho Power recorded ~~$7.5~~$12.5 million of additional ADITC amortization under its ~~existing~~ Idaho regulatory settlement stipulation during the first ~~nine months~~quarter of ~~2023. Idaho Power currently expects to amortize up to $10~~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~~allow Idaho Power an opportunity to recover its expenses and ~~improve~~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 2023 Annual Report.

To address the regulatory lag in recovery of costs primarily associated with Idaho Power’s current and anticipated significant infrastructure ~~purchase power, and implement programs~~investments, including those that are intended to help meet ~~customer load demands.~~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 ~~recent years,~~December 2023, Idaho Power made a general rate case filing in Oregon, which is described more fully in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report. The outcome of the Oregon general rate case is pending. Idaho Power has ~~seen significant growth~~reached a settlement in principle for the ~~number~~general rate case with the OPUC staff and other stakeholders. The settlement is not final and remains subject to completion of ~~customers in its service area. Over~~ the ~~twelve months ended September 30, 2023, Idaho Power's customer count grew~~related settlement stipulation, as well as approval by ~~2.3 percent. While recessionary or volatile economic conditions could slow~~ the ~~rate of~~OPUC.

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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.

Idaho Power filed its 2023 IRP, its 20-year forecast of power demand and supply options, with the IPUC and OPUC in September 2023. The 2023 IRP assumptions include significant large commercial and industrial additions in the 5-year forecasted annual growth rate, including from new facilities under development by Meta Platforms, Inc. and Micron Technology, Inc. (Micron). Included in the below table are Idaho Power's load forecast assumptions used in the 2023 IRP, and for comparison purposes, the analogous average annual growth rates Idaho Power used in 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 5.5% 3.7% 2.1% 1.8%
2021 IRP 2.6% 2.1% 1.4% 1.4%
2019 IRP 1.3% 1.4% 1.0% 1.2%

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.

•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 ~~Idaho Power~~the company is undertaking a significant relicensing effort for the 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 its capital expenditures on infrastructure investments in the next five years or more 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 and Existing Settlement Stipulation:~~ ~~The prices that Idaho Power is authorized to charge for its electric and transmission service are 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 ~~an existing 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 ROE. The settlement stipulation also provides for~~customer growth in the ~~potential sharing between~~near-term, Idaho Power ~~and~~expects its ~~Idaho~~number of customers of Idaho-jurisdictional earnings in excess of a 10.0 percent Idaho ROE, which would adjust to the authorized return on equity determined in a 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 an Idaho general rate case. The specific terms of the settlement

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~~stipulation, as currently in effect, are described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2022 Annual Report.~~

On June 1, 2023, Idaho Power filed a general rate case application with the IPUC, requesting an average increase in net rates of 8.61 percent in Idaho, effective January 1, 2024. Several factors impacted Idaho Power’s need to file its Idaho general rate case including the increase in depreciation expense from rate base-eligible assets as they are placed into service, 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~~greater extent its load due to anticipated commercial and industrial customer growth, to increase in the inflationary pressures on other O&M expenses described above. On October 27, 2023, Idaho Power, the Staff of the IPUC, and intervening parties publicly filed the 2023 General Rate Case Settlement Stipulation with the IPUC related to the Idaho general rate case filing. The 2023 General Rate Case Settlement Stipulation is subject to approval by the IPUC. The general rate case filing and the 2023 General Rate Case Settlement Stipulation are described more fully in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.foreseeable future.

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 ~~expects~~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 ~~make a general rate case filing~~import energy during peak load periods, require Idaho Power to increase its investment in ~~Oregon~~capacity resources, transmission, and distribution infrastructure. This includes the B2H and GWW transmission projects, along with other capacity, energy, and transmission resource procurements, as described in ~~December 2023~~the "Liquidity and ~~that processing of a general rate case~~Capital Resources" in ~~Oregon would take approximately ten months.~~this 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 ~~6.4~~6.5 million to ~~6.8~~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.

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•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

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Power install additional pollution control devices at existing ~~generation~~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, ~~plant,~~Nevada (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 more fully~~ in ~~Note 3 - "Regulatory Matters" to~~2024, the ~~condensed consolidated financial statements included in this report. The preferred portfolio of Idaho Power’s 2023 IRP included the conversion of all coal generation~~two units at the North Valmy plant in 2026, and the remaining two units at the Jim Bridger plant in 2030. For more information on the 2023 IRP, refer to ~~natural gas generation units. Idaho Power would likely need to file an application with~~"Resource Planning" in Item 1 – "Business" of the ~~IPUC to adjust the plant retirement dates for its gas-fired operations related to any potential conversions.~~2023 Annual Report.

•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 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.

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The WMP regulatory deferrals are described in more detail in ~~the~~Note 3 - "Regulatory Matters" ~~section of this MD&A. If approved by~~to the ~~IPUC,~~consolidated financial statements included in the 2023 General Rate Case Settlement Stipulation would allow continued deferral of incremental vegetation management and insurance costs, as measured from 2022 actual costs, through the earlier of Idaho Power’s next Idaho general rate case or 2025.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 ~~and nine months~~ ended ~~September 30, 2023.~~March 31, 2024. In this analysis, the results for the three months ~~and nine months~~ ended ~~September 30, 2023,~~March 31, 2024, are compared with the same ~~periods~~period in ~~2022.~~2023.

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The table below presents Idaho Power’s energy sales and supply (in thousands of MWh) for the three months ended March 31, 2024 and ~~nine months ended September 30, 2023 and 2022.~~2023.


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

		Three months ended September 30,		Nine months ended September 30,
		2023	2022	2023	2022
Retail energy sales	Retail energy sales	4,654	4,897	12,039	12,170
Retail energy sales
Retail energy sales
Wholesale energy sales
Wholesale energy sales
Wholesale energy sales	Wholesale energy sales	171	182	697	320
Energy sales bundled with renewable energy credits	Energy sales bundled with renewable energy credits	31	36	813	586
Energy sales bundled with renewable energy credits
Energy sales bundled with renewable energy credits
Total energy sales
Total energy sales
Total energy sales	Total energy sales	4,856	5,115	13,549	13,076
Hydropower generation	Hydropower generation	1,559	1,354	5,363	4,219
Hydropower generation
Hydropower generation
Coal generation
Coal generation
Coal generation	Coal generation	844	1,288	1,452	2,883
Natural gas and other generation	Natural gas and other generation	1,035	844	2,222	1,482
Natural gas and other generation
Natural gas and other generation
Total system generation
Total system generation
Total system generation	Total system generation	3,438	3,486	9,037	8,584
Purchased power	Purchased power	1,798	1,874	5,541	5,378
Purchased power
Purchased power
Line losses
Line losses
Line losses	Line losses	(380)	(245)	(1,029)	(886)
Total energy supply	Total energy supply	4,856	5,115	13,549	13,076
Total energy supply
Total energy supply

Weather-related information for Boise, Idaho, for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023, ~~and 2022,~~ 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 September 30,			Nine months ended September 30,
		2023	2022	Normal (2)	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)	49	13	94	3,218	3,518	3,181
Cooling degree-days(1)	Cooling degree-days(1)	1,076	1,233	847	1,322	1,390	1,035
Cooling degree-days(1)
Cooling degree-days(1)
Precipitation (inches)	Precipitation (inches)	2.1	0.3	0.8	8.8	7.6	8.0
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 decreased ~~5 percent and 1~~2 percent in the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively,~~2024 compared with the same ~~periods~~period in ~~2022,~~2023, primarily due to ~~weather variations that caused lower usage per customer. Greater precipitation and~~ more moderate temperatures, ~~in Idaho Power's service area during~~which reduced the ~~third quarter~~amount of ~~2023 led agricultural irrigation customers to use less~~ energy per customer ~~to operate irrigation pumps and residential and commercial customers to use less energy per customer~~used for ~~cooling purposes compared with same period in 2022.~~heating. The decrease in usage per customer ~~in both periods~~ was partially offset by customer growth, as the number of Idaho Power's customers grew by ~~2.3~~2.5 percent over the prior twelve months. ~~For more information on the changes in sales volume, see the "Operating Revenues" section below in this MD&A.~~

Total system generation ~~decreased 1~~increased 24 percent infor the ~~third~~first quarter of ~~2023 compared with the third quarter of 2022, due primarily to lower retail sales described above. Total system generation increased 5 percent in the first nine months of 2023~~2024 compared with the same period in ~~2022, as total energy sales increased 4 percent.~~2023, primarily related to an increase in hydropower generation, coal generation, and 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

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

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Operating Revenues

Retail Revenues: The table below presents Idaho Power’s retail revenues (in thousands) and MWh sales volumes (in thousands) for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023, ~~and 2022,~~ and the number of customers as of ~~September 30, 2023~~March 31, 2024 and ~~2022.~~2023.


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Retail revenues:	Retail revenues:
Residential (includes $5,583, $(1,447), $20,170, and $14,104, respectively, related to the FCA)(1)		$	181,736	$	176,514	$	505,158	$	470,402
Commercial (includes $328, $142, $900, and $730, respectively, related to the FCA)(1)		107,971		101,794		283,478		259,620
Retail revenues:
Retail revenues:
Residential (includes ($687) and $8,909, respectively, related to the FCA)(1)
Residential (includes ($687) and $8,909, respectively, related to the FCA)(1)
Residential (includes ($687) and $8,909, respectively, related to the FCA)(1)
Commercial (includes ($53) and $276, respectively, related to the FCA)(1)
Commercial (includes ($53) and $276, respectively, related to the FCA)(1)
Commercial (includes ($53) and $276, respectively, related to the FCA)(1)
Industrial	Industrial	67,522		60,306		181,312		161,353
Industrial
Industrial
Irrigation
Irrigation
Irrigation	Irrigation	104,645		105,365		168,358		164,065

Deferred revenue related to HCC relicensing AFUDC(2)	Deferred revenue related to HCC relicensing AFUDC(2)	(2,815)		(2,815)		(6,861)		(6,861)

Deferred revenue related to HCC relicensing AFUDC(2)

Deferred revenue related to HCC relicensing AFUDC(2)

Total retail revenues	Total retail revenues	$	459,059	$	441,164	$	1,131,445	$	1,048,579
Volume of retail sales (MWh)

Total retail revenues

Total retail revenues
Volume of retail sales (MWh):
Volume of retail sales (MWh):
Volume of retail sales (MWh):
Residential
Residential
Residential	Residential	1,513		1,620		4,440		4,458
Commercial	Commercial	1,150		1,192		3,212		3,227
Commercial
Commercial
Industrial
Industrial
Industrial	Industrial	906		883		2,641		2,620
Irrigation	Irrigation	1,085		1,202		1,746		1,865
Total retail MWh sales		4,654		4,897		12,039		12,170
Number of retail customers at period end
Irrigation
Irrigation
Total retail sales (MWh)
Total retail sales (MWh)
Total retail sales (MWh)
Number of retail customers at period end:
Number of retail customers at period end:
Number of retail customers at period end:
Residential
Residential
Residential	Residential	528,298		515,790
Commercial	Commercial	78,233		76,988
Commercial
Commercial
Industrial
Industrial
Industrial	Industrial	132		127
Irrigation	Irrigation	22,330		22,092
Irrigation
Irrigation
Total customers	Total customers	628,993		614,997
Total customers
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 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 ~~$17.9 million and $82.9~~$12.4 million during the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively,~~2024 compared with the same ~~periods~~period in ~~2022.~~2023. The factors affecting retail revenues during the ~~periods~~period are discussed below.

•Rates: Average customer rates, excluding amounts related to the power cost adjustment and FCA mechanisms, increased retail revenues by ~~$0.9~~$14.4 million ~~and $11.0 million, respectively,~~ for the ~~three and nine months ended September 30, 2023,~~first quarter of 2024 compared with the same ~~periods~~period in ~~2022. The increase in the first nine months of~~ 2023, ~~was~~ 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 ~~$31.2 million and $75.4~~$15.6 million in the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively,~~2024 compared with the same ~~periods~~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. FCA revenue accrued in the first quarter of 2024 decreased by $9.9 million compared with the same period in 2023, as the 2023 Settlement Stipulation moved a greater portion of recovery of fixed costs into customer base rates.

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•Customers: Customer growth of ~~2.3~~2.5 percent during the twelve months ended ~~September 30, 2023,~~March 31, 2024, increased retail revenues by ~~$7.5 million and $19.6~~$8.8 million in the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively,~~2024 compared with the same ~~periods~~period of ~~2022.~~2023.

•Usage: ~~Decreased~~Lower usage (on a per customer basis), in all customer classes, decreased retail revenues by ~~$28.9 million and $29.3~~$16.5 million in the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively, compared with the same periods of 2022. More precipitation in Idaho Power's service area during the spring and late summer of 2023~~2024 compared with the same period of ~~2022 led agricultural irrigation customers to use 10 percent and 6 percent less energy per customer to operate irrigation pumps~~2023. Milder temperatures during the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively, compared with the same periods in 2022. Usage per~~2024 led residential ~~and commercial customer during the third quarter and first nine months of 2023 was lower than the same periods in 2022, primarily due to weather variations that caused these~~ customers to use less energy per customer for ~~cooling in the spring and early summer of 2023.~~

•~~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. Lower usage (on a per customer basis) by residential and small commercial customers during the third quarter and first nine months of 2023 increased the amount of FCA revenue accrued by $7.2 million and $6.2 million, respectively compared with the same periods in 2022.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 ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ (in thousands, except for revenue per MWh amounts).


			Three months ended September 30,				Nine months ended September 30,
		Three months ended March 31,											Three months ended March 31,
			2023		2022		2023		2022		2024	2023
Wholesale energy revenues	Wholesale energy revenues		$	5,065	$	34,501	$	50,461	$	44,516
Wholesale MWh sold	Wholesale MWh sold		171		182		697		320
Wholesale energy revenues per MWh	Wholesale energy revenues per MWh		$	29.62	$	189.57	$	72.40	$	139.11

In the ~~third~~first quarter of ~~2023,~~2024, wholesale energy revenues ~~decreased $29.4~~increased $7.9 million ~~or 85 percent, compared with third quarter of 2022, due primarily to lower wholesale market prices. Wholesale energy revenues increased $5.9 million in the first nine months of 2023~~ compared with the ~~first nine months~~same period of ~~2022,~~2023, as higher wholesale energy sales volumes were ~~mostly~~partially offset by lower wholesale market prices. ~~The increase in wholesale~~Wholesale energy ~~volumes sold~~prices were lower during the ~~nine months ended September 30,~~first quarter of 2024 compared with 2023 ~~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~~as more moderate winter weather resulted in lower demand and lower natural gas fuel costs in the wholesale markets in the first quarter of 2023. Those sales increased wholesale energy revenues by $16.7 million in the first nine months of 2023 and a corresponding amount was recorded in purchased power on the condensed consolidated statements of income.region. 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 Cost Adjustment Mechanisms."

Transmission Wheeling-Related Revenues: Transmission wheeling-related revenues ~~decreased $2.8~~increased $2.6 million, or 12 percent, and increased $4.0 million, or 7 percent, during the third quarter and first nine months of 2023, respectively, compared with the same periods of 2022. Milder weather in the southwest United States and Pacific Northwest during the third quarter of 2023 compared with the third quarter of 2022 led to a narrow price spread between energy market hubs which resulted in lower wheeling volumes. The increased wheeling revenue for the first nine months of 2023 compared with the same period of 2022 was primarily due to elevated energy prices in the western United States during the first ~~half~~quarter of ~~2023 compared with the same period in 2022. Also, Idaho Power's OATT rates were approximately 1 percent higher in the first nine months of 2023~~2024 compared with the first ~~nine months~~quarter of ~~2022.~~2023, primarily due to increased wheeling volumes. Effective January 1, 2024, financial settlement of transmission line losses are subject to the 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 September 30, 2023, Idaho Power's energy efficiency rider balances were regulatory liabilities of $2.6 million in the Idaho jurisdiction and $0.8 million in the Oregon jurisdiction.

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Operating Expenses

Purchased Power: The table below presents Idaho Power’s purchased power expenses and volumes for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands, except for per MWh amounts).


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Purchased power expense	Purchased power expense	$	142,851	$	192,884	$	405,404	$	370,035
Purchased power expense
Purchased power expense
MWh purchased
MWh purchased
MWh purchased	MWh purchased	1,798		1,874		5,541		5,378
Average cost per MWh	Average cost per MWh	$	79.45	$	102.93	$	73.16	$	68.81
Average cost per MWh
Average cost per MWh

Purchased power expense decreased ~~$50.0~~$59.2 million induring the ~~third~~first quarter of 2023 compared with the third quarter of 2022, due primarily to lower wholesale energy market prices as milder summer weather resulted in lower demand and lower fuel costs (natural gas and coal) in the wholesale markets in the western United States compared with the third quarter of 2022. Purchased power expense increased $35.4 million, or 10 percent, in the first nine months of 20232024 compared with the same period of ~~2022,~~2023, primarily due ~~primarily~~ to ~~elevated~~a 27 percent decrease in average cost per MWh driven by lower wholesale energy prices in the western United ~~States~~States. An increase in hydropower generation, natural gas generation, and coal generation during the first ~~half~~quarter of ~~2023 and,~~2024 led to a ~~lesser extent, higher generation~~10 percent decrease in energy purchased from ~~projects under power purchase agreements.~~wholesale markets to help meet customer demand.

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Fuel Expense: The table below presents Idaho Power’s fuel expenses and thermal generation for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands, except for per MWh amounts).


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Expense
Expense:
Expense:
Expense:
Coal
Coal
Coal	Coal	$	31,792	$	35,185	$	57,521	$	85,190
Natural gas	Natural gas	39,931		28,446		134,396		58,560
Natural gas
Natural gas
Total fuel expense	Total fuel expense	$	71,723	$	63,631	$	191,917	$	143,750
MWh generated
Total fuel expense
Total fuel expense
MWh generated:
MWh generated:
MWh generated:
Coal
Coal
Coal	Coal	844		1,288		1,452		2,883
Natural gas	Natural gas	1,035		844		2,222		1,482
Natural gas
Natural gas
Total MWh generated
Total MWh generated
Total MWh generated	Total MWh generated	1,879		2,132		3,674		4,365
Average cost per MWh - Coal	Average cost per MWh - Coal	$	37.67	$	27.32	$	39.62	$	29.55
Average cost per MWh - Coal
Average cost per MWh - Coal
Average cost per MWh - Natural gas
Average cost per MWh - Natural gas
Average cost per MWh - Natural gas	Average cost per MWh - Natural gas	$	38.58	$	33.70	$	60.48	$	39.51
Weighted average, all sources	Weighted average, all sources	$	38.17	$	29.85	$	52.24	$	32.93
Weighted average, all sources
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~~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 ~~$8.1~~$3.2 million, or ~~13 percent, and $48.2 million, or 34~~4 percent, in the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively,~~2024 compared with the ~~same periods~~first quarter of ~~2022, despite lower total thermal generation. The increases in fuel expense were~~2023, primarily due to ~~higher~~increases of 21 percent and 19 percent in coal and natural gas ~~market prices~~generation, respectively, and ~~higher coal purchase prices in 2023, which resulted in~~ 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 ~~and coal~~ generation. The mix of Idaho Power's thermal generation between natural gas and coal in the third quarter and first nine months of 2023 compared with the same periods of 2022 was affected by fluctuations in natural gas prices, and Idaho Power optimizing its dispatch of coal generation resources in an effort to help ensure adequate coal supply during its peak periods.

Included in fuel expense are ~~gains~~losses and ~~losses~~gains on settled financial gas hedges entered into in accordance with Idaho Power's energy risk management policy. InFor the ~~third~~first quarter of ~~2023,~~2024, losses on financial gas hedges of ~~$7.9~~$24.1 million increased natural gas fuel expense, while in the ~~third~~first quarter of ~~2022 and the first nine months of~~ 2023, ~~and 2022,~~ gains on financial gas hedges of

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~~$24.2~~ $23.5 million ~~$4.2 million, and $28.6 million, respectively,~~ reduced natural gas fuel expense. Most of these realized hedging ~~gains~~losses and ~~losses~~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~~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 periodfrom 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.

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The table that follows presents the components of the Idaho and Oregon power cost adjustment mechanisms for the three months ended March 31, 2024 and ~~nine months ended September 30,~~ 2023 ~~and 2022~~ (in thousands).


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

		Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Power supply cost deferral		$	(22,131)	$	(42,885)	$	(47,482)	$	(40,246)
Oregon power supply cost accrual		—		—		335		—
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	28,030		12,079		51,338		8,615
Total power cost adjustment (income statement)	Total power cost adjustment (income statement)	$	5,899	$	(30,806)	$	4,191	$	(31,631)
Total power cost adjustment (income statement)
Total power cost adjustment (income statement)

The power supply accruals (deferrals) represent the portion of the power supply cost fluctuations accrued (deferred) 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 ~~third~~first quarter ~~and first nine months~~ of ~~2023, higher~~2024, purchased power ~~and fuel~~ costs led to ~~higher~~lower actual power supply costs compared with the forecasted amount, which resulted in an ~~increase in the amount~~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.~~year (the balancing adjustment component of the power cost adjustment mechanism).

Other O&M Expenses: Total other O&M expenses ~~decreased $4.9~~increased $13.8 million ~~or 5 percent, and $8.3 million, or 3 percent,~~ in the ~~third~~first quarter ~~and first nine months~~ of ~~2023, respectively,~~2024 compared with the ~~same periods~~first quarter of ~~2022, due~~2023, primarily ~~to lower expenses from scheduled cyclical plant maintenance projects, as well as the timing of regulatory deferrals and payment credits received~~ related to ~~a jointly funded infrastructure project,~~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 are partially offset ~~partially~~ by ~~inflationary~~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 ~~and~~costs also contributed to the increase in other ~~costs.~~O&M expenses.

Income Taxes

~~IDACORP~~IDACORP's and Idaho ~~Power~~Power's income tax expense decreased ~~$0.8~~$12.6 million ~~and $1.1 million, respectively,~~ for the ~~first nine~~three months ~~of 2023~~ended March 31, 2024, when compared with the same period ~~of 2022, as increased taxes from higher~~in 2023, primarily due to lower pre-tax income ~~was more than offset by $7.5 million of additional ADITC amortization. Idaho Power did not record any additional~~and increased ADITC amortization from the regulatory mechanism described in ~~2022.~~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.

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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 ~~October 27, 2023,~~April 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 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; ~~$280 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

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•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.~~

During March through May 2023, a portion of the proceeds from the March 2023 issuances was used to repay outstanding commercial paper, $150 million in principal amount from a March 2022 term loan agreement, and $75 million in principal amount of maturing 2.50% first mortgage bonds, Series I.

~~In September 2023, Idaho Power issued $350 million of 5.80% first mortgage bonds, secured medium-term notes, Series M, maturing in~~ April ~~2054. Idaho Power plans to use the proceeds for general corporate purposes including funding its capital projects.~~

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 ~~September 30, 2023,~~March 31, 2024, IDACORP's and Idaho Power's capital structures, as calculated for purposes of applicable debt covenants, were as follows:


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

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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, 2024, IDACORP and Idaho Power ~~believe~~believed they were in compliance with all credit facility and long-term debt ~~covenants at September 30, 2023.~~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~~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 inflows for the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, were ~~$162~~$110 million and ~~$138~~$107 million, respectively, ~~a decrease~~an increase in cash flows from operations of ~~$107~~$200 million for IDACORP and ~~$156 million for~~ Idaho Power, ~~respectively,~~ 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 ~~nine~~three months of ~~2023~~2024 when compared with the same period in ~~2022~~2023 were as follows:

•~~a $13~~an $8 million ~~increase~~decrease in IDACORP and Idaho Power net ~~income;~~

•~~changes in deferred taxes and taxes accrued and receivable combined to increase IDACORP and Idaho Power cash flows by $32 million and $67 million,~~income, respectively;

•changes in ~~contributions~~regulatory assets and liabilities, mostly related to ~~pension~~the relative amounts of costs deferred and ~~postretirement benefit plans decreased IDACORP~~collected under the PCA, FCA, and ~~Idaho Power~~energy efficiency program cost mechanisms, increased operating cash flows by ~~$11~~$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 increased operating cash flows by ~~$47~~$44 million ~~for IDACORP~~ and ~~$46 million for Idaho Power,~~

◦~~the changes in materials, supplies, and fuel stock decreased operating cash flows by $49~~$45 million for IDACORP and Idaho Power, ~~which was primarily due to an increase in material and supply inventory, and the timing~~respectively;

Table of ~~purchases and consumption of coal at Idaho Power's jointly-owned coal-fired generating plants; and~~Contents

◦the changes in accounts and wages payable ~~decreased~~increased operating cash flows by ~~$136~~$50 million for IDACORP and ~~$220 million for~~ Idaho Power, which was primarily due to a decrease in power supply costs and associated timing of ~~payments. The $84~~payments; and

◦the changes in other assets and liabilities increased operating cash flows by $27 million ~~difference between~~for IDACORP and Idaho Power, iswhich was primarily related to ~~timing of intercompany estimated tax payments.~~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 ~~nine~~three months ended ~~September 30, 2023, were $412~~March 31, 2024, increased to $235 million and ~~$403~~$234 million, ~~respectively.~~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 2024 and 2023 were primarily for construction of utility infrastructure needed to address Idaho Power’s customer growth and peak resource needs, aging plant and equipment, and environmental and regulatory compliance requirements. ~~Significant items~~This was partially offset in 2024 and ~~transactions that affected investing cash flows in the first nine months of~~ 2023 ~~included:~~

•$427 million of additions to property, plant and equipment, including $92 million spent on battery storage projects, and at September 30, 2023, $8 million was accrued in accounts payable on their consolidated balances sheets related to battery storage projects;

•~~$15 million received~~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~~

•~~$6 million in sales of equity securities, held in a rabbi trust, which is designated to provide funding for obligations related to Idaho Power's SMSP.~~expenditures.

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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 ~~nine~~three months ended ~~September 30,~~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 ~~$518 million~~primarily related to dividend payments. This was offset in 2023 by Idaho Power's net proceeds from issuances and ~~$561 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 nine 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;~~

•~~in April 2023, Idaho Power repaid, at maturity, $75 million in principal amount of 2.50% first mortgage bonds, secured medium-term notes, Series I;~~

•~~in May 2023, Idaho Power repaid $50 million in principal amount of a March 2022 term loan agreement;~~

•~~in September 2023, Idaho Power issued $350 million in principal amount of 5.80% first mortgage bonds, secured medium-term notes, Series M, maturing in April 2054; and~~

•~~IDACORP and Idaho Power paid dividends of $121 million and $81 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).


		September 30, 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.

Idaho Power has regulatory authority through December 2026 to incur up to $450 million in principal amount of short-term borrowing indebtedness at any one time outstanding. Idaho Power submitted applications to the IPUC, OPUC, and WPSC in October 2023, requesting authorization for the company to incur, issue, and sell from time to time up to $600 million in aggregate principal amount at any one time of unsecured borrowings through December 2030.

On ~~October 27, 2023,~~April 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.

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~~The table below presents additional information about short-term commercial paper borrowing (in thousands) during the three and nine months ended September 30, 2023.~~

Three months ended
September 30, 2023

Nine months ended
September 30, 2023

~~IDACORP(1)~~

~~Idaho Power~~

~~IDACORP(1)~~

~~Idaho Power~~

~~Commercial Paper:~~

~~Period end:~~

~~Amount outstanding~~

—

~~Weighted average interest rate~~

—

~~Daily average amount outstanding during the period~~

—

~~12,301~~

~~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 ~~S&P Global~~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,

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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 September 30, 2023, Idaho Power had posted $29 million of 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 energy and fuel portfolio and then-existing market conditions, as of September 30, 2023, the amount of additional collateral that could have been requested upon a downgrade to below investment grade was approximately $10 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 ~~$413~~$254 million during the ~~nine~~three months ended ~~September 30, 2023.~~March 31, 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 and 2023 IRP in order to safely and reliably serve Idaho Power'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) $675-$725 $850-$950 $2,000-$2,500


	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.

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Resource Additions to Address Projected Energy and Capacity Deficits: As noted previously, Idaho Power's 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, 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 plans to purchase, own, and operate ~~approximately 300~~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 Clean Energy Your Way program. ~~To help address the additional capacity deficits projected for 2026 through 2027, Idaho Power has issued an RFP for additional resources.~~

The capital requirements table above includes capital expenditures of more than ~~$400~~$380 million ~~in the years 2023~~from 2024 through ~~2025~~2026 for resource additions to address projected energy and capacity deficits in those ~~years, but does not currently include any amounts~~years. To help address the additional capacity deficits projected for ~~possible company-owned resources from the~~2026 and 2027, Idaho Power continues to evaluate its RFP ~~to address projected deficits in 2026 or 2027.~~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 planned 300-mile, high-voltage transmission project between a substation near Boardman, Oregon, and the Hemingway substation near Boise, Idaho, is expected to provide transmission service to meet future resource needs. Material procurement and construction subcontract bid events are in progress. As a result of delays in issuing ~~Notices~~notices to ~~Proceed~~proceed from state and federal agencies and obtaining right-of-way easements, Idaho Power expects construction will begin ~~in the first half of~~no sooner than late 2024. Given th~~e status of ongoing activities~~those delays and the construction period, Idaho Power expects the in-service date for the transmission line will be no earlier than ~~2026.~~2027.

~~Until recently, Idaho Power had a joint funding agreement with PacifiCorp and BPA to pursue permitting~~

Table of ~~the project, with Idaho Power having an approximate 21 percent interest, BPA having an approximate 24 percent interest, and PacifiCorp having an approximate 55 percent interest~~Contents

As more fully described in the ~~permitting phase of the project. In March~~ 2023 ~~BPA, PacifiCorp, and~~Annual Report, 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 Idaho Power and BPA transferred BPA’s totalPower'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, 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 ~~$198~~$268 million, including Idaho Power's AFUDC, on the ~~Boardman-to-Hemingway~~B2H project through ~~September 30, 2023.~~March 31, 2024. Pursuant to the terms of the joint funding arrangements, Idaho Power has received ~~$113~~ $145 million in reimbursement as of ~~September 30, 2023,~~March 31, 2024, from project co-participants for their share of costs ~~(including $31 million related to BPA's share, which was transferred to Idaho Power in March 2023 as part of the agreement described above)~~ and continues to receive reimbursement as costs are incurred. ~~The remaining joint permitting participant~~PacifiCorp is obligated to reimburse Idaho Power for 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 was 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 ~~EFSC~~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, 2023, the Oregon Supreme Court affirmed the EFSC's final order approving Idaho Power's site certificate.~~

~~In June 2023,~~first amendment, which Idaho Power ~~and PacifiCorp executed a construction funding agreement and filed it with the FERC.~~is seeking to dismiss. The ~~agreement became fully effective~~Oregon Department of Energy issued its Draft Proposed Order in ~~September 2023 upon the meeting~~April 2024 recommending approval of the ~~conditions precedent contained in the agreement including acceptance of the agreement by the FERC, receipt of the CPCNs for Boardman-to-Hemingway from Oregon and~~

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~~Idaho for Idaho Power and Idaho and Wyoming for PacifiCorp, and Idaho Power and PacifiCorp consenting to the conditions contained within their respective CPCNs.~~

~~During~~second amendment. Finally, during the second quarter of 2023, the IPUC, OPUC, and ~~Wyoming Public Service Commission~~WPSC granted Idaho Power and PacifiCorp their respective CPCNs related to the construction of the ~~Boardman-to-Hemingway~~B2H project.

Total cost estimates for the project are between $1.5 billion and $1.7 billion, including Idaho Power's AFUDC. The capital requirements table above includes approximately ~~$640~~$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. Actual construction costs could differ from Idaho Power's estimates based upon Idaho ~~Power’s~~Power's or its ~~contractors~~contractors' ability to timely obtain labor or materials at reasonable costs, supply chain disruptions and 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 ~~$58~~$61 million, including Idaho Power's AFUDC, for its share of the permitting phase of the project through ~~September 30, 2023.~~March 31, 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 $900 million and $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 $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 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 Boise, Idaho. Idaho Power and PacifiCorp continue to coordinate the timing of next steps to best meet customer and system needs including potentially modifying the ownership structure of a few segments of the project.

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 in the range of between $900 million and $1.1 billion, including Idaho Power's AFUDC. The estimated cost range includes the possibility of an increase in Idaho Power participation in the construction of certain project segments, for which Idaho Power would need to coordinate with PacifiCorp. The capital requirements table above includes approximately $370 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, PacificCorp, 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.

Defined Benefit Pension Plan Contributions

Idaho Power has no minimum contribution requirement to its defined benefit pension plan in ~~2023,~~2024 and during the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, Idaho Power made ~~contributions of $48~~no contributions. Idaho Power is considering contributing up to $30 million to its pension plan during 2024 in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions ~~as well as~~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.

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Contractual Obligations

IDACORP’s and Idaho Power’s contractual cash obligations have not materially changed during the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 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

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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. In recognition of Idaho Power’s current and anticipated significant infrastructure investments, including those that are intended to help meet projected near-term capacity deficits, Idaho Power filed a general rate case in Idaho on June 1, 2023. As discussed below, the 2023 General Rate Case Settlement Stipulation was filed for that rate case on October 27, 2023.

Idaho Power's most recent ~~previous~~ general rate cases in Idaho and Oregon were filed during 2023. The IPUC approved a settlement stipulation (2023 Settlement Stipulation) in ~~2011, and during 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 for the Langley Gulch power plant reset base rates~~case in Idaho ~~and Oregon.~~ on or after May 31, 2024.

The ~~IPUC and OPUC have also approved base rate changes in single-issue cases subsequent to 2014. Idaho Power expects to file a~~ 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 ~~December 2023.~~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. 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 condensed consolidated financial statements included in this report for additional information relating to the Oregon general rate case.

Between general rate cases, Idaho Power relies upon customer growth, an 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~~

Table of ~~rate mechanisms.~~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 ~~regarding~~relating to Idaho Power's ~~Idaho general rate case filing and other~~ regulatory matters and recent regulatory filings and orders.

~~Idaho General~~Notable Pending Retail Rate ~~Case and Filing of 2023 General Rate Case Settlement Stipulation~~

On June 1, 2023, Idaho Power filed a general rate case and proposed rate schedules for the Idaho jurisdiction with the IPUC. On October 27, 2023, Idaho Power, the Staff of the IPUC, and intervening parties publicly filed the 2023 General Rate Case Settlement Stipulation related to the Idaho general rate case filing. If the IPUC approves the 2023 General Rate Case Settlement Stipulation, it will authorize Idaho Power's filed general rate case, with the modifications contained in the 2023 General Rate Case Settlement Stipulation.

The 2023 General Rate Case Settlement Stipulation provides that Idaho Power would implement revised tariff schedules designed to recover $54.7 million in additional annual revenue from Idaho jurisdictional base rates effective January 1, 2024, representing a 4.25 percent overall average increase in Idaho Power's annual Idaho jurisdictional base rate revenues. The $54.7 million of additional annual revenue is net of a PCA rate decrease of $168.3 million (moving that amount from collection via the PCA and into base rates) and a reduction to annual energy efficiency rider collection of $3.5 million. The 2023 General Rate

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Case Settlement Stipulation also provides for a 9.6 percent return on equity and a 7.247 percent authorized rate of return based on a non-specified cost of debt and capital structure, applied to an Idaho-jurisdictional rate base of approximately $3.8 billion. Idaho Power had requested a 10.4 percent authorized rate of return on equity and an approximate $3.9 billion Idaho retail rate base. See Note 3 – "Regulatory Matters" to the condensed consolidated financial statements included in this report for a more detailed summary of the significant provisions of the general rate case filing and proposed 2023 General Rate Case Settlement Stipulation.

~~The parties to the 2023 General Rate Case Settlement Stipulation agreed that certain matters would be examined in either separate, subsequent proceedings~~ or continued in the general rate case docket. Those additional matters relate to, among other items, further review of Idaho Power plant investments by IPUC Staff to be completed by December 1, 2023, class cost-of-service methodology, and rate design related to time-of-use rates. The 2023 General Rate Case Settlement Stipulation provides that these subsequent proceedings will not impact the agreements reached in the 2023 General Rate Case Settlement Stipulation. To the extent Staff identifies potential prudence concerns, those prudence concerns would be addressed in Idaho Power's next general rate case.

The parties to the 2023 General Rate Case Settlement Stipulation have requested that the IPUC issue an order approving the agreed-upon rates effective January 1, 2024. Idaho Power is unable to predict whether the IPUC will approve the 2023 General Rate Case Settlement Stipulation or the ultimate outcome of the general rate case proceedings.

~~The 2023 General Rate Case Settlement Stipulation does not preclude Idaho Power from filing another general rate case in Idaho at any time in the future.~~

~~Notable Retail Rate~~Revenue Changes

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

Description

Status

Estimated ~~Rate~~ Impact(1)

Notes

PCA ~~Mechanism~~ - Idaho

~~New PCA rate became effective June 1, 2023~~Filed April 15, 2024; Pending

$~~105.1~~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. The IPUC order approving the PCA increase defers collection of $95.1 million of deferred PCA costs to the subsequent annual PCA collection period.forecasted improved hydropower generation.

FCA ~~Mechanism~~ - Idaho

~~New FCA rate became effective June 1, 2023~~Filed March 15, 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 ~~kWh~~kilowatt-hour charge and instead linking it to a set amount per customer.

Annual Power Cost Update - Oregon

~~New APCU rate became effective June 1, 2023~~Filed March 25, 2024; Pending

$~~7.7~~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 ~~ADITC~~Earnings Support and ~~Revenue~~ Sharing ~~Mechanism~~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 ~~three and nine months ended September 30, 2023,~~first quarter of 2024, Idaho Power recorded ~~zero and $7.5~~$12.5 million ~~respectively,~~ in additional ADITC amortization under the ~~May 2018 Idaho Tax Reform Settlement Stipulation.~~settlement stipulations. Accordingly, at ~~September 30, 2023, $37.5~~March 31, 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 2022. If approved by the IPUC, the 2023 General Rate Case Settlement Stipulation would modify the Idaho ADITC and revenue sharing mechanism as described in Note 3 – "Regulatory Matters" to the condensed consolidated financial

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~~statements included in this report.~~

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.

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As noted in the table above, in April 2024, Idaho Power filed an application with the IPUC requesting a$35.7 million net decrease in PCA revenues, effective for the 2024-2025 PCA collection period from June 1, 2024, to May 31, 2025. The net decrease in PCA revenues reflects improved hydropower generation. 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 ~~nine~~three months ended ~~September 30, 2023~~March 31, 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) 47.5 (0.3) 47.2
Prior amounts collected through rates (51.3) (0.1) (51.4)
SO2 allowance and renewable energy certificate net sales
(9.5) (0.4) (9.9)
Interest and other 4.4 — 4.4
Deferred (accrued) net power supply costs at September 30, 2023 $ 119.8 $ (0.2) $ 119.6


	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

~~2023~~ Integrated Resource Plan and Resource Procurement Filings

Idaho Power filed its most recent IRP with the IPUC and OPUC in September ~~2023. The~~ 2023, ~~IRP assumes a forecasted annual growth in average energy demand of 2.1 percent and a forecasted annual growth in peak-hour demand of 1.8 percent over the 20-year period.~~ The 2023 IRP preferred resource portfolio and action plan adds 6,888 MW of resource capacity over the next 20 years to meet energy and capacity needs, including the addition of 3,325 MW of solar, 1,800 MW of wind, 1,453 MW of storage, 360 MW of additional energy efficiency, 340 MW of hydrogen, 160 MW from demand response, and 30 MW of geothermal. In addition, the preferred resource portfolio includes Idaho Power's complete exit from coal-fired generation by 2030 and the conversions of multiple jointly-owned coal-fired generation units to natural gas, adding a net total of 261 MW of generation capacity through 2043. To support these resource additions, the preferred portfolio also includes the Boardman-to-Hemingway transmission line in 2026 and three Gateway West transmission line segments phased in with in-service dates from 2028 through 2040. ~~However,~~ as ~~noted~~described in the 2023 IRP, there is considerable uncertainty surrounding the resource sufficiency estimates and project completion dates, including uncertainty around the timing and extent of third party development of renewable resources, fuel commodity prices, and the actual completion date of the transmission projects. These uncertainties, as well as others, could result in changes to the desirability of the preferred portfolio and adjustments to the timing and nature of anticipated and actual actions.Annual Report.

~~Open Access Transmission Tariff Posting~~

Idaho Power uses a formula rate for transmission service provided under its OATT, which provides that transmission rates will be updated annually based primarily on financial and operational data Idaho Power files with the FERC. In October 2023, Idaho Power filed its 2023 final transmission rate with the FERC, reflecting a transmission rate of $30.74 per "kW-year," to be effective for the period from October 1, 2023, to September 30, 2024. A "kW-year" is a unit of electrical capacity equivalent to 1 kilowatt of power used for 8,760 hours. Idaho Power's final rate was based on an annual net point-to-point transmission revenue requirement of $135.7 million. The OATT rate in effect from October 1, 2022, to September 30, 2023, was $31.42 per kW-year based on an annual net point-to-point transmission revenue requirement of $132.7 million.

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~~Boardman-to-Hemingway Transmission Line Certificates of Public Convenience and Necessity~~

In June 2023, the IPUC and OPUC both issued orders granting Idaho Power's applications for certificates of public convenience and necessity authorizing construction of the Boardman-to-Hemingway 500-kV transmission line. The Boardman-to-Hemingway project is described in more detail in the "Liquidity and Capital Resources" section of this MD&A.

~~Oregon Resource Procurement Filing~~

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

In July 2023, ~~following review by an independent evaluator appointed by the OPUC, OPUC staff, and other intervening parties,~~ the OPUC issued an order approving issuance of Idaho Power's ~~final~~ RFP to procure resources for its anticipated energy and capacity needs in 2026 and 2027.

~~Jim Bridger Power Plant Base Rate Adjustment~~ Following issuance of the RFP and ~~Recovery~~evaluation of bids received, in February 2024, the OPUC issued an order acknowledging Idaho Power's shortlist of bids for the RFP.

In ~~June 2022,~~March and April 2024, Idaho Power filed applications with the IPUC ~~issued~~for two of the ~~Bridger Order approving, with modifications, Idaho Power’s amended~~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. 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 September 30, 2023, Idaho Power’s deferral of Idaho-jurisdiction costs related to the WMP was $45.4 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.~~partially waive certain competitive bidding rules. As of the date of this report, the OPUC's decision is pending.

Large Customer Rate Proceedings

Brisbie, LLC (Brisbie) Data Center: In April 2023, the IPUC approved an arrangement ~~modeled after~~under the Clean Energy Your Way ~~program as described in the 2022 Annual Report in Part II, Item 7 - "Regulatory Matters," under~~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 to-be-constructed ~~200-MW~~200 MW solar facility pursuant to a long-term power purchase agreement between Idaho Power and a third ~~party.~~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 May 2023, the IPUC issued an order approving, with modifications, a special contract for electric service for Brisbie for the new data center. Idaho regulations require any utility customer with an average load exceeding 20 MW to enter into a special contract with its electric provider. Brisbie, 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 special contract, Idaho Power expects to procure enough renewable resources to support 100 percent of Brisbie's operations on an annual basis with new renewable resources. The modified special contract and related rate schedule were approved by the IPUC in October 2023.

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~~Micron Dedicated Renewable Resource~~: In August 2022, the IPUC issued an order approving, with modifications, Idaho Power's application for a revised special contract for electric service between Idaho Power and Micron. The application was modeled after the Clean Energy Your Way program ~~as described in the 2022 Annual Report in Part II, Item 7 - "Regul~~atory Matters," and included an arrangement under which Micron would purchase from Idaho Power 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 began operating in May 2023.

In April 2023, the IPUC issued an order approving Idaho Power's compliance filing of 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.

~~Lamb Weston, Inc. Special Contract~~: In September 2023, the IPUC issued an order approving Idaho Power's special contract for electric service for an existing large load customer, Lamb Weston, Inc. (Lamb Weston). Idaho Power anticipates Lamb Weston's large load service requirements to exceed 20 MW in the near future.

~~Clean Energy Your Way Program~~: In August 2023, the IPUC approved Idaho Power's application to expand optional customer clean energy offerings through its new Clean Energy Your Way Program. Specifically, Idaho Power received authority to: (1) rename its existing green power program; (2) maintain and expand procurement options for the renewable energy credits; (3) establish a regulatory framework for a future voluntary subscription green power service program; (4) offer a tailored renewable option for Idaho Power's largest customers; and (5) procure the associated additional resources outside of the IPUC's current competitive procurement requirements.

~~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 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. In December 2019 and February 2020, the IPUC issued orders 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.

~~In June 2022, as directed by the IPUC,~~January 2024, Idaho Power filed ~~a comprehensive study on the costs and benefits~~for IPUC approval of ~~on-site generation based on the IPUC’s study framework findings and conclusions, and in December 2022, the IPUC issued~~ an order that acknowledged Idaho Power'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. As of the date of this report, the IPUC's determination in this matter is pending.

~~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 September 30, 2023, Idaho Power had contracts to purchase energy from 129 online PURPA projects. An additional ~~five contracts are with online non-PURPA projects, including the Elkhorn Valley wind project~~contract with a ~~101-MW nameplate capacity, the Jackpot Solar project with a 120-MW nameplate capacity, and the Black Mesa~~125 MW solar project ~~with a 40-MW nameplate capacity.~~

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The following table sets forth, as of September 30, 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 Online (MW) Under Contract but not yet Online (MW) Total Projects under Contract (MW)
PURPA:
Wind 625 — 625
Solar 316 74 390
Hydropower 150 1 151
Other 43 — 43
Total 1,134 75 1,209
Non-PURPA:
Wind 101 — 101
Geothermal 35 — 35
Solar 160 300 460
Total 296 300 596

~~The PURPA-qualifying facility projects not yet online include one hydropower project that is scheduled~~ to be online in 2023, and one PURPA-qualifying facility solar project expected to be online in 2024. The table above also includes two PURPA-qualifying facility solar projects not yet online, totaling 71 MW, for which Idaho Power expects to terminate the existing agreements by January 31, 2024, due to non-performance by the contractual counterparties. Two non-PURPA solar projects, for 100 MW and 200 MW, are scheduled to be online in 2024 and 2025, respectively. In August 2023, the IPUC issued an order approving Idaho Power's agreement with the 100 MW solar project and granting Idaho Power a certificate of public convenience and necessity to acquire a total of 72 MW of new dispatchable energy storage to meet identified capacity deficiencies in 2024.

~~In April 2023,~~ Idaho Power entered into an agreement, pending regulatory approval, with a 150-MW battery storage facility, scheduled to be online in June 2025. Under the agreement, the facility would provide 150 MW of capacity on Idaho Power’s system for a period of 20 years, and Idaho Power would have the exclusive right to dispatch and use the charging and discharging energy in exchange for a monthly payment.In May 2023, Idaho Power filed an application with the IPUC requesting an order approving the agreement and acknowledging the lease accounting necessary to facilitate the transaction, and that the resulting expenses are prudently incurred for ratemaking purposes. As part of that same application, Idaho Power requested that the IPUC issue an order granting Idaho Power a CPCN to acquire a total of 101 MW of new dispatchable energy storage to meet identified capacity deficiencies in both 2024 and 2025.December 2026. As of the date of this report, the IPUC's decision in ~~these matters~~this matter is pending.

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 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 Section 401 certifications to the FERC as part of the relicensing process.certifications. The supplement included feedback on proposed modifications of the 2007 final 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 USFWS~~and the 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 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.

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In June 2022, the FERC issued a ~~Notice~~notice of ~~Intent~~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 October 2023, the FERC issued a notice revising the schedule for completing the supplemental EIS. Under the revised schedule, the draft

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supplemental EIS iswas targeted to be published in February 2024 and the final supplemental EIS in 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.

~~Idaho Power estimates that the annual~~Relicensing costs ~~it will incur to obtain a new long-term license~~of $469 million (including AFUDC) for the HCC ~~including AFUDC, are likely to range from $30 million to $40 million until issuance~~were included in construction work in progress at March 31, 2024. As of the ~~license. Subsequent~~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 ~~issuance~~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 ~~a new license,~~March 31, 2024, Idaho ~~Power expects~~Power's regulatory liability for collection of AFUDC relating to ~~incur increased annual operating and maintenance costs to comply with~~ the requirements of any new license and would seek to recover those increased costs through regulatory proceedings. Although Idaho Power is unable to predict the exact timing 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, asHCC 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.

~~Relicensing costs for~~ Idaho ~~Power's hydropower projects are recorded as construction work in progress until new multi-year licenses are issued by~~Power is unable to predict the exact timing that the FERC ~~at which time~~will issue a new license order or the ~~charges are transferred to electric plant in service.~~ultimate capital investment and ongoing operating and maintenance costs Idaho Power ~~expects~~will incur in complying with a new license. Idaho Power estimates that the annual costs it will incur to ~~seek recovery of relicensing costs and costs related to~~obtain a new long-term license ~~through the regulatory process. Relicensing costs of $450 million (including AFUDC)~~ for the HCC, ~~were included in construction work in progress at September 30, 2023. As~~including AFUDC but excluding costs expected to be incurred for complying with the license after issuance, are likely to range from $35 million to $45 million until issuance of the ~~date~~license. Upon issuance of ~~this report,~~a long-term license, Idaho Power expects that the annual capital expenditures and operating and maintenance expenses associated with compliance with the terms and conditions of the long-term license could also be substantial. In December 2016, Idaho Power filed an application with the IPUC ~~authorizes~~requesting a determination that Idaho Power's expenditures of $220.8 million through year-end 2015 on relicensing of the HCC were prudently incurred, and thus eligible for future inclusion in retail rates in a future rate proceeding. In April 2018, the IPUC 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 September 30, 2023, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was approximately $224 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 ~~issued a notice that~~accepted Idaho Power’s final license application ~~was accepted~~ for ~~filing and solicited motions to intervene and protest.~~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. 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. ~~The~~In March 2024, the IDEQ ~~acknowledged receipt~~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 ~~Section~~CWA 401 ~~water quality~~ certification ~~application and informed~~is not anticipated to cause operational problems. Idaho ~~Power that it anticipates preparing a draft certification and will seek public comment once the draft is complete. American Falls'~~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

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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.

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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.

April 2024 Fossil Fuel-Fired Power Plant Rules

In April 2024, the EPA released a suite of final rules that could potentially impact generation at Idaho Power’s fossil fuel-fired power plants, 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 coal combustion residual regulations, among other things.

Each of these rules becomes effective 60 days after publication in the Federal Register. However, Idaho Power expects some or all of these rules to be subject to legal challenges, which could have an impact on when and whether they become or remain effective. As of the date of this report, Idaho Power is evaluating the rules and anticipates that they could have an adverse impact on the operation and costs of operation of its fossil fuel-fired power plants, and on the cost, timing, and viability of the construction of new gas-fired power plants.

Endangered Species Act Matters

~~Changes to the Endangered~~Reinstatement of "Blanket Rule" for Threatened Species ~~Act:~~: 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 ~~May 2023,~~ March 2024, the USFWS published a ~~revised Mitigation Policy and a revised ESA Compensatory Mitigation Policy (Revised Policies)~~final rule, which ~~together establish fundamental mitigation principles and compensatory mitigation standards and application guidance through implementation~~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 ESA. ~~The Revised Policies scale back~~Idaho Power is evaluating the ~~mitigation goal from the previous policies by including a nexus and proportionality principle to reinforce that government-required mitigation measures must~~rule, which could have ~~a clear connection with the anticipated effects~~an impact on several of ~~the proposed land use.~~its projects. As of the date of this report, Idaho Power is uncertain ~~to what extent the Revised Policies may impact its obligations in permitting infrastructure, including relicensing its hydropower facilities, and transmission lines.~~

~~Clean Air Act Matters~~

~~Good Neighbor Plan~~: In June 2023, the EPA published the final rule under the CAA called the Federal "Good Neighbor Plan" for the 2015 Ozone National Ambient Air Quality Standards (Good Neighbor Plan), which took effect on August 4, 2023. The Good Neighbor Plan establishes NOx emissions budgets requiring fossil fuel-fired power plants to participate in an allowance-based ozone season trading program. The EPA's final rule temporarily excludes power plants located in Wyoming, while the EPA reevaluates the proposed disapproval of the Wyoming state implementation plan (SIP). In August 2023, the EPA published a proposed approval of the Wyoming SIP, finding that the EPA’s updated modeling demonstrated that Wyoming’s determination that no additional controls are required to address interstate transport for the 2015 zone National Ambient Air Quality Standards was reasonable. In September 2023, Idaho Power submitted comments in support of EPA’s proposed approval of the Wyoming SIP. Refer to Part II, Item 7 - "MD&A - Environmental Issues" in the 2022 Annual Report for more information on SIPs.whether any such impacts will be significant.

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In July 2023, the Ninth Circuit Court of Appeals issued a stay halting application of the Good Neighbor Plan in Nevada pending a hearing on the merits of an appeal challenging the EPA's disapproval of Nevada's SIP. In light of the court's ruling, in September 2023, the EPA issued an interim final rule indefinitely suspending the implementation of the Good Neighbor Plan in Nevada. As of the date of this report, Idaho Power continues to evaluate the specific impacts the Good Neighbor Plan could have on its operations at the Valmy and Jim Bridger plants. If the Good Neighbor Plan is implemented in Nevada and Wyoming, Idaho Power anticipates that, under certain conditions, it could reduce the ability to use the full available output, or require the purchase of allowances in order to utilize the full available output, at the Valmy and Jim Bridger plants.Clean Air Act Matters

~~Regulation of Greenhouse Gas Emissions~~Regional Haze: In April 2024, EPA proposed to approve revisions to the 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 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 first planning period as would the installation of selective catalytic reduction controls (as required by the 2014 Wyoming SIP). The EPA comment period ends in May ~~2023, the EPA released a proposed rule under Section 111~~2024, and Idaho Power plans to submit comments in support of the ~~CAA to regulate greenhouse gas emissions from fossil fuel-fired power plants. The~~ proposed rule would impose significant greenhouse gas (GHG) emissions reductions on new and existing natural gas-fired generating units and coal plants expected to be operational in 2040 and beyond. The proposed rule would require states to submit plans to the EPA to implement standards for existing sources within 24 months of the effective date of the emission guidelines. In August 2023,SIP. Idaho Power submitted comments to the EPA requesting it to maintain certain jurisdictional limits published in the rule and create flexibility for state plans to account for system reliability. As of the date of this report, Idaho Power continues to evaluate the specific impactsdoes not expect the proposed ~~rule could have on its~~SIP, if approved, to require any changes to current operations at ~~its three natural gas facilities, as well as~~ the ~~Valmy and~~ Jim Bridger ~~plants. If the proposed rule is implemented, Idaho Power anticipates that the GHG emissions reductions may under certain circumstances only be achievable by reducing unit runtimes.~~facility.

Clean Water Act Matters

~~Definition of “Waters of the United States” Under the CWA~~: The definition of "waters of the United States" 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. In May 2023, the U.S. Supreme Court issued a decision defining WOTUS under the CWA and providing nationwide clarity of the federal government’s jurisdiction over WOTUS. The decision restricts the federal government's ability to regulate wetlands that do not have a continuous surface connection with a navigable water. While not addressed in the opinion, ephemeral streams and other water bodies that are not relatively permanent would also not be jurisdictional under the May 2023 decision. The new definition of WOTUS from the Supreme Court should not alter how the CWA applies to most of Idaho Power's facilities, including its hydropower plants. As a result, Idaho Power does not expect the new definition to materially impact Idaho Power's operations or financial condition.

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 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 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. 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 ~~ten~~14 of the dams andand anticipates completing all submissions by June 2024.

~~Invasive Species Management~~Climate-Related Disclosures

~~Quagga mussels are an invasive species which have not been present~~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 ~~Snake River system historically. Quagga mussel infestations can foul up irrigation, hydropower, and water delivery facilities and increase~~U.S. Court of Appeals for the costs to maintain such facilities. In September 2023, a larval form of quagga mussels and one adult quagga mussel were detected in the mid-Snake River near Twin Falls in Idaho Power's service area by the Idaho State Department of Agriculture (ISDA). As a result, in October 2023, ISDA treated approximately six miles of the Snake River, which includes Idaho Power's Twin Falls and Shoshone Falls hydropower facilities, using a copper-based, EPA-approved treatment called Natrix to eradicate quagga mussels.

Eighth Circuit. If the ~~treatment is unsuccessful,~~rule becomes effective, it could require IDACORP and ~~a quagga mussel infestation occurs, it may result in increased other O&M costs for mitigation efforts~~Idaho Power to make various additional climate-related disclosures, including regarding its Scope 1 and ~~other adverse impacts for Idaho Power's operation of its hydropower facilities in any infested areas.~~Scope 2 greenhouse gas emissions, if material. As of the date of this report, IDACORP and Idaho Power ~~cannot predict~~are evaluating the ~~extent to which the Natrix treatment will be successful in eradicating~~

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~~quagga mussels from the Snake River, the extent~~potential impacts of the ~~treatment’s impact to the river and its inhabitants, or the potential increase in other O&M expenses related to quagga mussel mitigation efforts.~~

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.

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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 ~~September 30, 2023.~~March 31, 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 ~~September 30, 2023,~~March 31, 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 ~~September 30, 2023,~~March 31, 2024, IDACORP had $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 ~~$297~~$322 million if market interest rates were to decline by one percentage point from their ~~September 30, 2023,~~March 31, 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 ~~September 30, 2023,~~March 31, 2024, had not changed materially from that reported in Item 7A of the ~~2022~~2023 Annual 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.

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Credit Risk

IDACORP is subject to credit risk based on Idaho Power's activity with market counterparties. Idaho Power is exposed to this risk to the extent that a counterparty may fail to fulfill a contractual obligation to provide energy, purchase energy, or complete financial settlement for market activities. Idaho Power mitigates this exposure by actively establishing credit limits; measuring, monitoring, and reporting credit risk; using appropriate contractual arrangements; and transferring 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 ~~September 30, 2023,~~March 31, 2024, Idaho Power posted ~~$29~~$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~~then existing market conditions as of ~~September 30, 2023,~~March 31, 2024, the amount of additional collateral that could have been requested upon a downgrade to below investment grade was approximately ~~$10~~$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 ~~September 30, 2023,~~March 31, 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

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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.

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 ~~September 30, 2023,~~March 31, 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 ~~September 30, 2023,~~March 31, 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 ~~September 30, 2023,~~March 31, 2024, that have materially affected, or are reasonably likely to materially affect, IDACORP's or Idaho Power's internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

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 the ~~2022~~2023 Annual Report, 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 AND
ISSUER PURCHASES OF EQUITY SECURITIES

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 ~~September 30, 2023.~~March 31, 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

During the ~~three months~~quarter ended ~~September 30, 2023,~~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). ~~During the three months ended September 30, 2023, neither IDACORP nor Idaho Power adopted or terminated a Rule 10b5-1 trading arrangement (as such term is defined in Item 408 of Regulation S-K).~~

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ITEM 6. EXHIBITS

The following exhibits are filed or furnished, as applicable, with the Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2023:~~March 31, 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.)

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

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






		IDAHO POWER COMPANY
		(Registrant)



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

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

6860


	Three months ended			Nine months ended
Net income attributable to IDACORP, Inc. - September 30, 2022		$	106.4		$	216.9
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms	4.6			11.4
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms	(17.2)			(18.1)
Idaho FCA revenues	7.2			6.2
Retail revenues per MWh, net of associated power supply costs and power cost adjustment mechanisms	0.9			11.0
Transmission wheeling-related revenues	(2.8)			4.0
Other O&M expenses	4.9			8.3
Depreciation expense	(4.9)			(18.1)
Other changes in operating revenues and expenses, net	5.3			1.7

(Decrease) Increase in Idaho Power operating income	(2.0)			6.4
Non-operating expense, net	(0.5)			5.1
Additional ADITC amortization	—			7.5
Income tax expense, excluding additional ADITC amortization	1.0			(6.4)
Total (decrease) increase in Idaho Power net income		(1.5)			12.6
Other IDACORP changes (net of tax)		0.4			0.4
Net income attributable to IDACORP, Inc. - September 30, 2023		$	105.3		$	229.9


	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	5.5%	3.7%	2.1%	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)	$675-$725	$850-$950	$2,000-$2,500


Resource Type	Online (MW)	Under Contract but not yet Online (MW)	Total Projects under Contract (MW)
PURPA:
Wind	625	—	625
Solar	316	74	390
Hydropower	150	1	151
Other	43	—	43
Total	1,134	75	1,209
Non-PURPA:
Wind	101	—	101
Geothermal	35	—	35
Solar	160	300	460
Total	296	300	596