IDA - Earnings call 4 2023

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Operator

Welcome to IDACORP's Fourth Quarter and Year-End 2023 Earnings Conference Call. Today's call is being recorded, and our webcast is live. A replay will be available later today and for the next 12 months on the IDACORP website. [Operator Instructions] I will now turn the call over to Amy Shaw, Vice President of Finance, Compliance and Risk.

Amy I. Shaw

Thank you. everyone. afternoon Good joining you We our appreciate call. we website IDACORP's morning, Form posted release to fourth quarter XX-K. and our and our This and issued year-end earnings XXXX website. are that available today's slides call The on accompany IDACORP's also

During the call, refer to by the slides we'll number.

may our X, to risks regulatory including future and today includes that holds what risks the reflect These our but Slide earnings on forward-looking uncertainties spending subject guidance, and noted uncertainties. and discussion As on are forecasts plans statements. actual current materially undue and on cautionary cause differ in we with Securities caution more any This our today, to statements made review the in and results from statements. for included against reliance note Exchange your filings detail Commission. placing is forward-looking views

Slide Executive Lisa and Treasurer, Senior X, Buckham, IDACORP's will President IDACORP's Officer; President, today. Brian on Chief Officer Chief Vice Grow, be As Financial and and shown presenting

our for prepared addition Lisa, members and Brian, we following our other have session available management of remarks. Q&A In team to a

Slide the of Idaho diluted to per that full are year is per which $X.XX range $X.XX IDACORP's the XXXX our XXth will something share were XXXX tax million Idaho credits XXXX guidance approximately credits to full $X.XX which $XX level per moved history the tax XXXX These case results. and X of IDACORP's utilize in credits to year on normal Power's throughout supply of in related generated $XX important part the X.X% shows weather earnings which million Also, IDACORP's we that earnings our under Idaho additional initiated earnings as available XXXX proceeding expectation historically to revenues expenses. our year note earnings power investment Power the settlement incremental stipulation. estimates was $X.XX requirement celebrate. with both year. to $XX and to projects, Today, support additional that case rate we of the is battery jurisdiction return estimate amortization million conditions Idaho. in from highest last includes of normal usage consecutive of tax it equity revenue year of our general earnings rate in recall, XXXX growth storage share the from of compared our assume at general earnings in company its diluted approximately expected and share, of the Idaho may you financial in

call Now to Lisa. I'll the turn over

Lisa Grow

in today's I and Idaho my X. Thanks, didn't XXth Amy, on call. for as shown begin comment IDACORP use want also Power on remarks earnings us by to highlighting year thanks Slide joining Amy's on preserving our to everyone I future stipulation of growth accumulated completing team success. to our the support. XXXX, investment entire Idaho contributed this any thank deferred earnings tax of to the for efforts full regulatory all in for the credit credits have balance want that

energy goal our As keep clean innovative to we to for demand affordable, keeping and employees XXXX, to building we seeking growing the future keeping our working toward serve prices customer focused on pace customers. remain safe, with turn our ways

beyond. of business strong deliver to Power's challenges continue and drive the strategy the will a on our culture throughout to is today results to efforts ability Our XXXX employees. energy and ever-shifting while of industry growth hard-working in testament Many our touch topics and meeting Idaho I'll the

strong Power's continues Turning see growth across service X, that Slide you'll area. to Idaho

Idaho the forecasting outperform Idaho from service XXXX. of received plan. GDP reliable, for growth that this set our recent Beef mega and peak trends. construction, value last believe on a Magazine in continues across under than prior participating stated of XXXX, commission with at base customer across includes including to of from and growth Power economic region Clean an is remained garnering year Company several program calculations large True the recent continues City over be loads we interest XXXX. economy rapid robust, Meta our customers. development megawatts, Energy and to Boise. Moody's driver Our space. X.X% are helped pace, continues of site Site X,XXX winter peak area, winter X.X% also to With provides our we grew Jerome. other Both sites #X large The Micron This from XXX,XXX growth Your a new and both the new in of X.X% Nampa XXXX growth resource push year, including serve earlier the and Selector our in peak local XXXX now increase are in in customers, in X% more XXXX expanding we in most based and affordable our online Overall, national projects XXXX and breaking a ground dollar growth Way Micron. as manufacturing West integrated our and their Power which energy particularly XXXX, ranking Idaho brought We in customers, In the of Stow in for the load to a highest annual country. X.X% projects load approval

XXXX, there haven't finding continue less our second industrial potential increasingly inquiring O&M our we best infrastructure which related to a costs customer including reliability additional many at potential point. and in of that area likely large resulted low. And customers. low to reliability upside provide outages, are what service. centers, this accounted commercial With about so for we customers, also outages. In considering Even to serve we have in this forecast for is with growth, our fewer our attractive, year be needed had service this strong some with to we would We data pipeline for robust continue

helps rates to effective $XX.X of average Rate an year, new settlement rate in on in customers, or underscores to regulatory agreement constructive million last XXXX. Case Commission X.XX% benefits us some this our and our a the infrastructure in It is our flows maintain in Idaho overall which X an also outcome case the environment. positive significant The X. our infrastructure additional Idaho we've settlement, to of customers This general of The of company January our outcome for Idaho Slide increase Turning since reliability serve rate resulted for our cash our December. our approved of and resulted General base as and growing in made develop customer investments continue recover we the system.

for XXXX. rate million increase Slide processed We on in -- general that total of case noted Oregon in rate its Idaho throughout a be Oregon. X, annual As $XX.X case filed of XXXX. December asked In will Power general much

to experienced rate in our significant expect service filings additional We make as area. we growth

of X include Idaho year. the rate still For and stakeholders. example, we working week, as of a type which case this We're we conversations to key limited might issue a soon with of general other our notice file Idaho to provided staff determine case this as intent what earlier June rate or to will Commission proceeding file,

We for plan will continue meet demand. add to and our new that resources growing

integrate helping Franklin account batteries XXX X. megawatts first online a The Slide and scheduled of several on move These reliability solar project periods additional storage. and from storage Idaho. high come coal-fired total an distribution of batteries at additional to installed capacity, Idaho These megawatts renewable energy utility-scale systems XXXX, In XX include energy maintain of to X to of and away XXX-megawatt of in table use. for XXXX. XXXX, in affordability generation substations XX doesn't Power instrumental Slide the Idaho are installed Southern company-owned is additional already resources we in will in an megawatts resources. be battery during will as intermittent Turning

XXXX reduce Plan out natural September. shows on of remaining Idaho units about Power plan system to and carbon highlighted will half be our XXXX. planning those The As coal-fired to Integrated XX, expects published help coal-fired Slide we units and keep reliable emissions to completely by gas, of affordable. the generation by which our convert in We're Resource our

this X are ongoing. ready for resource those units to XXXX expect XXXX needs be Evaluations on of We and RFPs by summer.

Power contract Idaho with shortlisted this the of bidders. included may list You process. self-build that evaluation separate in a negotiations recall, short projects, the has initiated they've team has point, At and

expect execute months. the contracts coming in We to

on in Oregon BXH year to high-voltage obtained our for project, We especially XXXX necessity transmission Idaho. and XX, Slide Hemingway. Boardman big for shown convenience and was a certificates As of public

also Bonneville an with finalized Power of transfers We Power. share BPA the agreement Administration Idaho PacifiCorp BXH that and to

those Idaho of this important discussing companies expect ownership which for the meet to with Power and project earlier We and improve Gateway both Power the and specific allocation the together also transmission line, the customer the XXXX. X,XXX-mile We're than reliability. are demand on PacifiCorp will PacifiCorp, working construction of timing most ground break currently help rising Idaho West to no segment's and segments. year finish

key will affordable look we continue addition, In be the in to that at supplying transmission to reliable, clean other future. energy projects

As drive to in the my reiterate our thanks want success all they employees did team I I close and my leadership remarks, our great to the to work XXXX. for

and it's reflect while for in to safety, we and we growth to the clean affordability demand the landscape. team much challenges place it's how I fast-moving energy increasing As in reliability year, on thrive clear real. me incredible The of energy maintaining rank this have the costs accomplished. are But right in

of financial for results presentation the hand I'll and an outlook. that, With Brian over Brian? overview to

Brian Buckham

tuning you for today's which appreciate I'll to of Thanks, results is XXXX. Lisa. everyone. call. compared on XX, in reconciliation Slide XXXX Hi, our We start a

into we commitment O&M strong to broad ongoing and in before basically overview compared as Just flat coming a XXXX. I growth, operating XXXX, efficiently customer in saw from detail, with continued we our our benefited expenses to more get

and X.X% the financing expense. a granular XXXX from CapEx. customer usage of were more lower weather mild partially tax related Getting by into reductions in growth benefit costs of our June full record by and increased year change and of detail, higher operating to depreciation offset level Bridger also have $XX.X rate million. for from positives income income a Those We

greater rate year, X.X% area. strong trend and earnings from power saw revenues an and irrigation year, saw compared regulatory about plant we load of net to a talk impact growth in income power to expenses for call O&M is about the supply continued offset precipitation per offset XXXX part to and we temperatures which $XX didn't in decrease were prior per apply income doesn't be culture compared a in energy increased Usage negative cooling customers per maintenance the use energy less residential Inflationary FCA in revenue infrastructure mechanism for cyclical and and And decreased sound Wouldn't a to operating service continuation the small customers, Idaho associated years. customer weather-related and to irrigation and Depreciation sales million with growth during we in mostly expense That adjustment due the I'll of almost offset from primarily their was attendant last commercial million projects by significant. our customer and million, just hour million sales pumps. and pressures year. to [indiscernible] $XX the moderate X irrigation this project. the rate impact of costs residential like increase were to it an customer expenses credits if really of operate the to by cummers. causes Power without more in weather. initially in our per the efforts heating timing mechanisms, $XX.X was of June to labor-related efficiently XXXX continued our in change residential admit commercial scheduled customer on using a less cost The Other funded the Our from XXXX, decoupling the increased mechanism operate fixed at received our $XX decoupling in cost our cost and XXXX. megawatt steady by growth set Idaho so lower seen increase by operating and equivalent customer jointly retail XXXX. we've bridge-related deferrals XXXX for partially Remember volumes the related increase customers. points strong for remained customers The

during to magnitude offset actually $X.X larger million the the compared However, the comparison with average equivalents primarily -- adjustments. and Allowance work up a for $XX the The X progress were on XXXX due by decreased used cash increase income order and in rates expense of and latter in basis higher million XXXX. balances. reasons. tax to in mentioned partially long-term increased higher Also, income plant-related cash due plant the earlier. average an was table, was on XXXX. to increased decrease balance Bridge in Nonoperating in of balance and to expense partially due and interest was the higher year-over-year higher debt. Wrapping increases construction impact I investment is funds throughout partially service construction These interest the the interest expense cash

we mentioned, didn't years. ultimately credits deferred of as record balance accumulated future year-end any the $XX preserving tax XXXX, full Lisa around investment of additional As for amortization the of XXXX million end of

we've level. ultimately a year-end our Idaho margin. XXXX, the use X.XX% supports throughout year-end results year, mechanism While X.X% the in at our to equity ADITC return predicted use earnings to achieve ADITCs Beginning ] [ need them additional small in on to a by a eliminated Idaho

it XX% that than basis, And and on $XXX system growth. XXXX. Our Power million. our basis work, storage CapEx increase on upgrades and was system standard a in meet record an XXXX cash On Idaho it's battery it over an reliability accrual was at entail more $XXX projects and of and over million you transmission projects customer our the work if plant to our look was

updated On CapEx. we've Slide X-year included XX, of forecast our

million CapEx added this a see CapEx to $XXX XX% the increase in last year, XXXX plan additional we XXXX our this forecast. You'll XXXX compared X-year time for to amounting current in forecast to XXXX updated has to of

projects have our plan. up capital We healthy make mix that a of spending

pointing project have our expected this our We it's particular includes from up spend one assumptions majority still no capital update cost of refreshed projects. doesn't the But update worth major the -- XXXX and making if resources new for with large a pending end or loads energy to the further RFPs in infrastructure needs. that XXXX any up related are capacity drive projects and include that we out, pipeline

quarter. clarity believe for only known in the so executable is some We including later RFPs today, the around to potential we have hope increases. the We as first there are and what of is

a decisions So on the any out ways we're RFPs. final still in

rate Slide our assets CAGR of the XXXX into rate base spend each at this CapEx of Last XX end on rate the in is in assets as years assets the our X-year conversion was of at base through addition place of X next XXXX. our estimate XX.X% the of based time, service. the eligible base eligible the at year estimated we end

at our $XXX last CAGR for XXXX So as million CapEx our our base roll for point, X-year general Again, rate our the rate we forecast starting XX.X%. X-year current forward rate XXXX next of our through this from is CapEx outlook year. about in higher time base X-year cases with to with XXXX the forecast compared forecast

credit XX% that In to well ratings goal To terms the I XX% of debt as mentioned structure or the before, to in planning financing address our that as capital that, our years, maintain our don't still CapEx, blend as equity. with do maturities near the ratings. next credit to in any is still and issuances. sizable helps equity few which on we're We side have and debt

equity needs from funds XXXX. the of any it's in down though equity our offering drawn satisfy November intended date, to haven't our also to We XXXX forward

to regulatory our pays average philosophy the placing the formula for housekeeping, As year keep we're growth average. we the relatively an and also good have cycle. a started customer national or the dominator look our of well is ATM as this debt for affordability ratio this customers. fact place below and focused equity capital through affordability We that to put we equity good the matter into in where with due satisfy spot. And on maintain could growth, service a to that in of long, needs, we that then assets expanding combining We're rates growth future the later life

to percentage in decade, case size small single-digit rates in rate ask indicative customer is base and relatively Idaho filed a rate having year, elevated. rate the our a last general of CapEx ability despite think our low of general is not I case over maintain while forecast our

decreased to compared from to XX. Turning Cash operations XXXX. flow Slide

gas with quarter approval June for second the the $XXX to increase Idaho Commission during XXXX. we in call supply from discussed year, power power collection customers last million costs and XXXX a through we costs. of As higher collect earnings from from received

increased We X January with help operations. change, Case the expect settlement flows Rate to began Idaho from support rate that General collection that along the on cash from

notably. including mentioned, most October an issued relates that General and X.X%, we on overall authorized million. year, increase we we increase as in requested XX% expect [Audio Rate revenues X.XXX% for investment rate in investment stipulation the which this to $XX General XX.X% XX requested of X, Lisa The rate amortization transfers in of on our of XX% use an additional Idaho. million of Idaho includes annual Slide Idaho for million, return settlement rate Oregon XXXX and Rate the our to outlined base. rate Power ROE order effective an an retail year, battery As rate $XXX to $XX.X projects. Case around $XX debt tax proposed of structure X equity in Case. Oregon approving targeting The settlement at revenue equity a general credit million December, capital jurisdiction on filing filing rates, late a Slide requirement included Gap] the of January As of million contemplated annual filing, settlement covering our rate return IPUC this as in a increase storage cost that's of summary case. the of year Idaho rate a PCA $XXX a net in case on settlement to recovery of about for the sets We've rates, filed of this the X. December, The of current from base of some Last provides

our from higher tax assumes guidance reduction and the the additional at well floor, and interest credit XXXX causing investment normal from normal by year as to supply CapEx the increase X.XX% higher the expenses. and expected XXXX, this depreciation items expense power throughout book equity expected as amortization year-end offset Other usage ROE X.X% weather

year range be million of expect O&M million. the We in expense $XXX to $XXX to full

pension like approved and amortization expected a in of note sounds general relates mitigation the million spending, settlement. plan looks which to notable $XX this While assets, welfare our over increase was that of recovery that expense to about for XXXX it's regulatory important case rate and

rates, XXXX spending collected $XXX anticipate We in So that excluding and are expense our be our $XXX new in between retail O&M to relatively CapEx amortization expense XXXX. million O&M the through XXXX. not million for comparable of could

X-year forecast continuation the growth As numbers area. CapEx these in in as our we showed, expect of see a service we to address subsequent higher years

our hydropower we generation currently be megawatt most forecast the X.X conditions, hours Finally, of updated given X.X to operate hydro million of within the range power expect for year. to million

solid through the normal, carryover have far been we but prior year, rolling storms lately. have Although from this snowpack been below has

we're for storms. benefit So a hoping those from

with And you happy that, might we're questions address have. to

Operator

Your Mortimer question from Instructions] line Mizuho first [Operator Securities. the with comes Alex of

Alexander Mortimer

the So that might what well to we update? I that the for 'XX, could finalize like perspective as when RFP how know frame. potentially CapEx still 'XX quantify directionally opportunity look waiting time could But process you as for you're a from get

Adam Richins

is there It's battery a of because Power were two and one XXX this project, with a X benchmark for for was little really is and how megawatts. megawatts, the and difficult now, bit projects these Idaho was projects it did -- is X RFPs wind list, win Alex, was -- One Adam. were XXX short confidential. X a XXX the battery in put Right much bids.

or want couple for not, months. hoping know April whether size, March, the timeframe. win general agreements In terms successful let to a not I those we bids But Idaho you just to of determined. execute they'll and Power here that of be be know is or to won't whether

Brian Buckham

is this Alex, Brian. And

was X,XXX Just energy. we much capacity to of megawatts add that had that. variable Remember, process need as the satisfied we to as of at the time the by original megawatts RFP started XXX

that time change, change So but original from operating the was our can RFP. the of time that to as magnitude needs

Alexander Mortimer

equity future has given been And 'XX, it Understood. Okay. and seems maybe earlier discuss of 'XX time frame announcement. potential the timing in you like covered scale issuances the then can 'XX with

Brian Buckham

Yes, Brian. Alex, this is

upsized as issuance maybe So you're was needs. intended right, we And that even XXXX, the forward to finance XXXX back did in we given a the offering. of actually little equity XXXX November

So flow that's XXXX terms to saw entails help cash going some going look is Costco, need. of power tax to and reduce impact supply equity to to get flow, the that, we've that's things in of credits, in compared what XXXX like where need. we got the in the at variables we of We terms our XXXX in expect XXXX, cash do improve and what to in what

how what XXXX in that that also impact needs could looking we're approach turns to look regulatory equity out, Our like. our

reduce We a of of can The our we the XXXX. just reduce if successful that RFPs in we're likely we mentioned, equity So portion in lag. some can of needs. RFPs, finance regulatory will Adam some potentially our equity with

we're So at as XX% XX% or equity that keep to I equity, looking mentioned. debt

of it equity now, of But So our side. all as to will fund the growth. on play are still in equity variables those take

prior with on needs, But like for potential a will forward. did be equity ATM given our is be No needs year, follow-on in do to at forward year to in ATM I offering put last market up our up, what So now, in the the point. the some equity point that an component IP we needs ready we just looking side. would come but equity XXXX funding need to at certainly also be, at near-term if we for plan this say

Operator

Your line Bank next of the from of Zimbardo comes Paul America. question with

Julien Dumoulin-Smith

that case Gap] making on we're on we be Julien increases. a that gauge more our to and [Audio Paul. see investments make and perhaps for actually their focused interest really labor would can it if simplified It's

to stakeholders. decide So we we'll those as we're exploring that now, talk and

Operator

Perez your the Partners. line And question from Shahar Guggenheim comes of next with

Unknown Analyst

I was for Shahar. James actually going Julien of the rate Ward case. the to on on just It's Well, asked questions ask most

do part that from to forward. Canyon one Hells expected separate was there. is a going I primary occur in projects a the event ADITC the and to And the second was amounts was then that factor follow that that. a slides, But be I'll ask reiterated to second now? Julien's on battery on licensing just So knowing XX%. the we that's now thought that, in question how little in expected one. and right the XXXX timing,

So if the that? was factor prior case Hells what filed. that is -- filed be we've at going was impact one June, What play impact, play Canyon would knowing in in to into least Does an be at there conversations just of that had, when this case if deciding point, a a

Lisa Grow

issue we'll general or to have that another year rate kind case, it before we decision. include So very of realize rate that what's wait year this the But perhaps single when do included wouldn't the going case would file may cases, Canyon. proceeding future on would get trigger license, well in the in we to rate make see the Health be in could that we I

Unknown Analyst

Okay.

after No, to answer. trigger they a expected to Okay. off otherwise I of a That's case I if for amount would you whether would trying hold it time realize of sense separate. Yes. would get a was have would the than -- file. or be quicker certain you

we the you sense is filed to the up, because rate a of increases and model going now picking forward. so haven't just long cadence as again, Just trying pace get

the... On

Brian Buckham

would we we Just we the in that extent the data is received have To license. any thing one the will state. the advance I that look to file to something file possibility to add actual license visibility a than earlier may that of that, to on mention there's

at did rate plant in actually our happened the Langley when and You service. landed time put filing plant a Gulch the that saw it this service. on case have we near advance, very We into the

Given to the similar license, to magnitude the well. Canyon that we future may as look of the in Hells do something

we frequently. will regulator, front of relatively in We be expect the

expenditures So AFUDC -- timing earlier from out. there on something that long not, just we on be such rate has which AFUDC since prudency through much on we've the been incorporated Canyon in this that issue if made out it as determination regulator works If have We've got a on into perspective to because rate. did long it's and Hells collecting the take project. goes have GRC that be been helpful case. it And could a single project we XXXX remember, could been so been for it, project. and has do also take a so a that the customer a we

Unknown Analyst

Perfect. Yes. my there notes that you what -- And your recollection, comments earlier. with are mentioned from consistent my

with supports, we and come The of level should X.X% down the battery XX% forward be course, the How of you provide from is to that few we that cetera? projects. to I ADITC So to color appreciate say, should about ADITC guidance of amount depending of be think additional the or years. it I'm and the assume et an on understanding of EPS the going to amortization, or authorized. going invest not you the CAGR, going amortization this X.XX% -- something safe I additional as $XX And with But to to model, is kind of as practical say, expected amount that for are cases. next think you timing realization forward, long-term course, a at clip standpoint, what rate have the just and full additional million realistic multiyear amount. the pace saying do you're the continuing more

Brian Buckham

Brian. Yes, Sure. James, this is

to So I'll first. answer at look a credits you things many you will -- in give this terms few how of have

million upper specific expect there's not in to are we credits. from each into $XX year, of and an number they of as Right of service to we it say year. for. now, at would XXXX had a it's to batteries as that mechanism. First more the add paid look the the be right? end go that used some limit to year. Do have There's the You every There going to separately all, is limit, another

credits on In future to install when regulatory projects the into that's statements, is is the for balance the mechanism, higher additional future. book be Depending to ITCs go for additions off The lot. to into example, use regulator they're to catch we that batteries equity. is balance that credit equity of terms credits that what sheet put takes of a thing incorporated come going that have our the and is, or renewable is issued, as ask the into whether mechanism, equity, a and in number big book depend additional to financial And can actually that that action. equity. We'd up increases factor on current it

financial year. of well, Now that EPS headwinds course, to look every as then moves And we at have

in XXXX, talked and we've For expense. depreciation about interest example, higher

So extent absorb that, we the used financing with credits some to the would be costs absorb to have tax growth. our associated of to

would the any Beyond given be we're size side, going going year as I credit on in that, to what using. of it's to on the bucket the say to depend

credit. So line tax you a straight just look can't take at

As the we cash we go we our collection, need for base the rate credits. for eliminate to many would earnings regulator expect and example, our to power increase as

go So provide to us that's rate over something on with would of the earnings credits that, to to expect interim but these authorized support. close earn . credit in return need away, time, we would rely our fortunately, do the

Lisa Grow

is have worth also discretion amount It's the noting how we to number it's the whatever to many works, that mechanism that don't use. I decide is, the think way used.

So -- can't back. hold we it's not them

Unknown Analyst

it. That's Got Got it. helpful.

think should It will sort still each calculation Okay. appreciate the need the all the we there. sounds book what year That sounds used I the It using equity that be. I sense, all continue all out that's of go-forward practice. detail like year-end and figure iterative like makes to

Brian Buckham

That's can correct. James, change. that number Remember, the

expected would ROE fell cases, in number, move that to with were to to remember, be also case, the X.XX%. it in this So number it. particular the up go If subsequent

Operator

question of Russo Sidoti. with And from Brian our comes the next line

Brian Russo

limited case. just or issue either on a So follow-up rate general

If like you you'd lag? say is be follow fair in this the would and rate have by XXXX? case then what effective any rates up? reduce in for it would capture June, of to to much And your January the that year How test true new from last CapEx in you rates then

Lisa Grow

into other effect then January that We year. they we the yes, -- final with other question? the what start we'll be And what the we with part -- using your So sorry, -- would X. -- would was Brian, test XXXX go June was the a would of would expectation

Brian Russo

rates. true-up, going current base For would if then reflected but basically in you're test Yes, a use be XXXX guess rate to it's I year,

Brian Buckham

Yes, Brian, Brian. this is

base number don't additional is into small together submit this put the in of plan to the at that what amount put is regulators very of eligible significant. -- we have XXXX component yet that we actual but rate the relatively base rate plan to So we terms that would be. true-up during we The service point. would

have So we'll to when able we be share number, that that.

Brian Russo

say it really And guidance, to driven this out like seems fair you capital the and not amortization Understood. if case Yes. driven? in Is operating it expense kind that expense XXXX your again back be the of of really will

Lisa Grow

so can't time that's rate a decade Yes, other like simply another stay believe. -- And with last matter really this spending roughly we fast, correct. That's just where growing when so many year. in feel in we're being what case, the we're $X we things billion we settled of out it's a

in will frequently. more So we be

Brian Buckham

it over keep us seen control you've And and flat. relatively O&M Yes.

You saw labor. aren't XXXX. where we to able 'XX. course, area is of do in -- The it it for do XX just pushing that, 'XX one We're to to again

people So employed growth as have that's meet and in that's area absorb, to demand. these to order very here an particularly we difficult to keep

in the at investment. mix So addition is we to one look to an area that we scope something infrastructure limited looking where if we're include the labor look as would at in

Adam Richins

Yes. And this is Adam.

you've think new are systems just to the out addition with got the seeing I batteries, maintain all there. that, that to in we're in growth

So seeing the increases we're that O&M well. as regard

Lisa Grow

add -- things like would regulatory make we to for I have wildfire us mechanisms deferral that allows plan those mitigation the then our also and later. recovery the some until now And investments defer

that for going that are raising So costs helps other up.

Brian Russo

be add some or IRP. could might into And assume And when baseload mentioned additional centers. Great. I Could more you to and that? capacity, you we next you maybe gas-fired which maybe the would that with tie generation inquiries context earlier, then expect data for behind Okay. along have need renewables just when generation

Lisa Grow

Yes.

these So more. of tires, X X it it is that used amount megawatts hundreds right and megawatts showing to at it are is to the are is the kicking sort that be time or up where now the of

announced color? it to that you process ongoing feels Adam, an a in it's little that do just So want we're more give like it. IRT, but a perpetual

Adam Richins

used -- Yes. When These history to come our X, on of to showed. a requests, the inquiries we they to having add us forward the X, to of X see a system to company. see sooner we hundreds consider entities are more we as did load had is than a whether ever requests now decide this territory example, mentioned, more here, large you move that. to get, IRP service than question. obviously, open plant those even thousands an Adam. This for requests discussions our large Lisa in is But Maybe our amount these just could track XXXX, we or to gas megawatt are significant the come if low now confidential. And to X, year will and in in megawatts. we what actually with,

between Just as on we as could XXXX may IRP, that as increase to what need load fruition, even as loads for. or depends so large And scenarios, the gas same. XX with move now do at that your for we forward it our we'll look to is again, companies show -- and time else. the in a IRPs, reminder, somewhere these what But Idaho in early come decide whether cite all

Brian Russo

detailed then And maybe BXH. on update a more Okay. just

that track? yet as on little mentioned still ground expecting to you're this I Is that XXXX. You it mean realistic early it's the the bit, what's still a year. likelihood shifted break

Lisa Grow

Yes.

been where So are. quite has for a -- you been so we to to can the us this process you've quite while, get following

good there It's a sooner finish I agencies. we're than -- due have add end, getting think mostly you to just notice So we're now, But to to I permits. of the more little on but to we're feeling like proceed. Right the for getting responsiveness have I feel line the delays it, the color to just sure. the about give any getting in it XXXX won't some to be been

Adam Richins

construction into on Energy bit the is little the this to year, this proceeds the Yes, BLM. year, We is run And the notice we're in Oregon half end delays just still do of issue from from hopefully, if of The to date still of a most first you possible. our seeing. and start plan hit to parent we XXXX, related of what given it.

of start the to we and have in to XXXX. proceed, and of do. then some some notice And would So year some end end the get as work it would work comes doing citing also amendments final front. with can XXXX If in we we're as on all the long some these right-of-way before construction agencies, it micro together, that the

Brian Russo

it guidance? lastly, to due year peak new with in there be margins And rates, might terms aware Okay. season of demand there. dispersion ADITCs, which relates as partly being the tiered your or Great. just along the revenue storage suppose during be quarterly your batter full I the the are and we given transferred earnings rates of to Anything of the

Brian Buckham

is the not ADITCs. we've the from mean, I in Brian, of used my past we've things perspective. one done

anticipated year the an have record usage early We that year and year, we not sales over quarter. full made amount estimate each on the rata pro of then ADITC based in

to it we've a driven So seasonality. I you heavily wouldn't ADITC. to yes, We still to But dramatic expect seasonality in weather past, were that more us to year by there this minor similar any what in the than but have have changes the seen should some with otherwise, changes by again to that's expect tiering, do on impact the rates. case

Operator

UBS. from the And of your Bill next Appicelli comes line with question

Unknown Analyst

balance. A just ADITC of asked already the been stuff clarify and has lot But on answered. to

balance? $XX ADITC full the the, total a the it then have to but the million? what -- $XX and then million, for you Or So should that of batteries, we year like batteries amount is that I we'll And you I and what Brian, think year, what of add I then forward? the value so guess, add that? to way we adds $XX ended what is referenced in to from the you utilize million? million know to it? you that So to residual Is off right? Is at terms said And the we this balance of sort think the then you is right? back that $XX moving assume about that the

Brian Buckham

correct, Bill. You're

not. We So in the we of by planned had regulators. $XX to some authorized million had originally did that but use XXXX,

We then are are credits the they $XX the installed and credits million get all paid we're to the generated we to don't authorized installed batteries XXXX. for. from until and that balance, in that of we add So had that,

now. And so the we That's is million The of amount have some some right outstanding batteries the of we on total bulk the plus payments it. the $XX amount added.

the $XX mechanism. are to to books that not be to the the of million batteries added $XX batteries, another that expect We XXXX but from of were on million for portions purposes yet

to tax mechanism around for eligible credit in the So $XXX of ending closer XXXX. million

Unknown Analyst

for to additional should filing right. this would that and in this that then year, going make you Okay. up then go whatever ask range assume And end credits? you'll And you're that in we that okay. rate consuming All back off right? back you for Correct. -- Also

Brian Buckham

XXXX, one to our in we could batteries I because we are and we also for an use for credits. think we efficient thing do may. shareholders mechanism the generate both will mean it's mechanism That and installing is our ADITC they those customers

those a that So mechanism in ask similar incorporate case we it's of make possible a would the front limited even the scope PUC. in to into

Unknown Analyst

Okay. then CapEx. around the All right. bit back to question That's going a just little helpful. And the

growth, RFPs, for to excluding about sooner? but talked of sort are capital that would data asked the Brian back-end little bit, growth guys this for additional is Or load higher revisions You be forecast? load a additional feathered of of is CapEx this the higher the potentially is loaded about back center to that loan the and a related you there that talked CapEx of should from just sort strictly about some be that? more in the growth, potential -- about a regarding that extent How but we have think on there to from end

Lisa Grow

you -- it such be the you end actually could the towards a end the towards would just the probably it's time with states given the once how of -- talking negotiate end it load. about, contract we're something think build period large quickly I

Unknown Analyst

when the year the had can to You about the flow talked financing mentioned FFO you Okay. number the the you the XX% to debt cash you or XX% maybe -- share look what's And mentioned that but at? metric ended you think to improvement. you about -- then, Brian, maybe us equity, about you with and right

under think we metric, should about how that that So handy? if have you

Brian Buckham

to is XX% CapEx to So more ended year XX% the up we this might want FFO . closer towards XX% we've XX% you regionally. be we the that. that cycle range And what through probably below number. I would be to debt to tell to where been

Operator

right. there It [Operator you. looks further Instructions] like are Thank no All questions.

Ms. does for this to today. turn conclude session I the conference over the you. Grow, So back question-and-answer will

Lisa Grow

Thank have hope Thank evening. for you enjoy a weekend, you. and your all afternoon in Thanks to everyone us for this joining and I interest IDACORP. continued you. great President's

Operator

today's Thank concludes conference. for you That your participation.

IDACORP (IDA) 15 Feb 242023 Q4 Earnings call transcript