What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-02-17 compared with 2021-02-18 · 204 added, 174 removed, 1704 unchanged (18% of the section changed)

15 unchanged sentences

Notes to the Consolidated Financial Statements 94

Reports of Independent Registered Public Accounting Firm 132

Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP (PCAOB ID No.

Financial Statement Schedules

57 unchanged sentences

of $ 1,150 , $( 2,452 ), and $( 4,658 )

3,318 ( 7,074 ) ( 13,440 )

Total Comprehensive Income 249,190 230,894 219,888

10 unchanged sentences

Customer (net of allowance of $ 4,499 and $ 4,766 , respectively)

78,819 72,826

Other (net of allowance of $ 517 and $ 497 , respectively)

14,994 12,661

Income taxes receivable 14,770 2,164

27 unchanged sentences

Current Liabilities:

Current maturities of long-term debt $ — $ 100,000

Accounts payable $ 145,980 $ 120,576

18 unchanged sentences

shares issued 50,516 and 50,462 , respectively)

874,896 869,235

Retained earnings 1,833,580 1,734,103

Accumulated other comprehensive loss ( 40,040 ) ( 43,358 )

Treasury stock (0 and 22 shares at cost, respectively) — ( 1,920 )

Total IDACORP, Inc.

32 unchanged sentences

Payments received from transmission project joint funding partners 5,876 3,197 2,442

Investments in affordable housing ( 14,338 ) ( 2,687 ) —

Investments in affordable housing and other real estate tax credit projects ( 15,148 ) ( 14,338 ) ( 2,687 )

Distributions from equity-method investments, return of investment 14,439 1,073 —

Purchase of equity securities ( 17,186 ) ( 33,382 ) ( 10,896 )

Purchases of short-term investments ( 25,000 ) ( 25,000 ) —

Maturities of short-term investments 50,000 — —

Proceeds from sale of equity securities 11,328 25,795 5,080

9 unchanged sentences

Debt issuance costs and other ( 334 ) ( 3,636 ) ( 2,534 )

Net cash provided by (used in) financing activities 16,989 ( 136,371 ) ( 42,606 )

Net increase (decrease) in cash and cash equivalents 57,862 ( 50,238 ) 190,843

Net cash (used in) provided by financing activities ( 149,484 ) 16,989 ( 136,371 )

Net (decrease) increase in cash and cash equivalents ( 59,873 ) 57,862 ( 50,238 )

Cash and cash equivalents at beginning of the year 275,116 217,254 267,492

24 unchanged sentences

Common stock dividends ($ 2.88 , $ 2.72 , and $ 2.56 per share, respectively)

( 146,073 ) ( 137,839 ) ( 129,872 )

Balance at end of year 1,833,580 1,734,103 1,634,525

53 unchanged sentences

of $ 1,150 , $( 2,452 ), and $( 4,658 )

3,318 ( 7,074 ) ( 13,440 )

Total Comprehensive Income $ 246,543 $ 226,161 $ 210,997

6 unchanged sentences

Customer (net of allowance of $ 4,499 and $ 4,766 , respectively)

78,819 72,826

Other (net of allowance of $ 517 and $ 497 , respectively)

14,134 12,457

Income taxes receivable 15,328 4,667

27 unchanged sentences

Current Liabilities:

Current maturities of long-term debt $ — $ 100,000

Accounts payable $ 145,871 $ 120,476

17 unchanged sentences

39,151 shares outstanding)

97,877 97,877

Premium on capital stock 712,258 712,258

33 unchanged sentences

Payments received from transmission project joint funding partners 5,876 3,197 2,442

Distributions from equity-method investments, return of investment 14,439 1,073 —

Purchase of equity securities ( 15,823 ) ( 33,382 ) ( 10,896 )

9 unchanged sentences

Other ( 238 ) ( 3,579 ) ( 2,181 )

Net cash provided by (used in) financing activities 21,615 ( 132,058 ) ( 39,362 )

Net increase (decrease) in cash and cash equivalents 66,654 ( 66,510 ) 120,814

Net cash (used in) provided by financing activities ( 146,314 ) 21,615 ( 132,058 )

Net (decrease) increase in cash and cash equivalents ( 105,529 ) 66,654 ( 66,510 )

Cash and cash equivalents at beginning of the year 165,604 98,950 165,460

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IDACORP’s other notable wholly-owned subsidiaries include IDACORP Financial Services, Inc.

(IFS), an investor in affordable housing and other real estate investments, and Ida-West Energy Company (Ida-West), an operator of small hydropower generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

(IFS), an investor in affordable housing and other real estate tax credit investments, and Ida-West Energy Company (Ida-West), an operator of small hydropower generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

Principles of Consolidation

IDACORP’s and Idaho Power’s consolidated financial statements include the assets, liabilities, revenues and expenses of each company and its wholly-owned subsidiaries listed above, as well as any variable interest entities (VIEs) for which the respective company is the primary beneficiary.

IDACORP’s and Idaho Power’s consolidated financial statements include the assets, liabilities, revenues, and expenses of each company and its wholly-owned subsidiaries listed above, as well as any variable interest entity (VIE) for which the respective company is the primary beneficiary.

Investments in VIEs for which the companies are not the primary beneficiaries, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting.

IDACORP also consolidates one variable interest entity (VIE), Marysville Hydro Partners (Marysville), which is a joint venture owned 50 percent by Ida-West and 50 percent by Environmental Energy Company (EEC).

IDACORP also consolidates one VIE, Marysville Hydro Partners (Marysville), which is a joint venture owned 50 percent by Ida-West and 50 percent by Environmental Energy Company (EEC).

At December 31, 2021, Marysville had approximately $ 16.0 million of assets, primarily a hydropower plant, and approximately $ 2.3 million of intercompany long-term debt, which is eliminated in consolidation.

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The carrying value of Idaho Power's investment in BCC was $ 22.7 million at December 31, 2021, and Idaho Power's maximum exposure to loss is the carrying value, any additional future contributions to BCC, and a $ 51.6 million guarantee for mine reclamation costs, which is discussed further in Note 10 - "Commitments."

IFS's affordable housing limited partnership and other real estate investments are also VIEs for which IDACORP is not the primary beneficiary.

IFS's affordable housing limited partnership and other real estate tax credit investments are also VIEs for which IDACORP is not the primary beneficiary.

IFS's limited partnership interests range from 2 to 100 percent and were acquired between 1996 and 2021.

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These approvals are a critical factor in determining IDACORP's and Idaho Power's results of operations and financial condition.

Idaho Power meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.

Idaho Power meets the requirements under accounting principles generally accepted in the United States of America (GAAP) to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.

IDACORP’s and Idaho Power’s financial statements reflect the effects of the different ratemaking principles followed by the jurisdictions regulating Idaho Power.

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Management Estimates

Management makes estimates and assumptions when preparing financial statements in conformity with generally accepted accounting principles.

Management makes estimates and assumptions when preparing financial statements in conformity with GAAP.

These estimates and assumptions include those related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt.

15 unchanged sentences

In response to the COVID-19 public health crisis, Idaho Power provided certain relief to customers, including temporarily suspending disconnections for customers and temporarily waiving late fees.

This relief as well as the economic conditions created by the response to the COVID-19 public health crisis have resulted in higher aged accounts receivable and an increase in the number of late payments.

Idaho Power expects higher uncollectible account write-offs as a result of the COVID-19 public health crisis and, accordingly, increased its allowance for uncollectible accounts related to customer receivables at December 31, 2020.

The allowance for uncollectible accounts increased to 6.1 percent of the total customer receivables balance at December 31, 2020, compared with 1.9 percent at December 31, 2019.

This relief as well as the economic conditions

created by the response to the COVID-19 public health crisis have resulted in higher aged accounts receivable and an increase in the number of late payments.

Compared with historical levels, Idaho Power expects higher uncollectible account write-offs as a result of the COVID-19 public health crisis and, accordingly, has maintained its higher allowance for uncollectible accounts related to customer receivables at December 31, 2021.

The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables (in thousands of dollars):

23 unchanged sentences

All utility plant in service is depreciated using the straight-line method at rates approved by regulatory authorities.

Annual depreciation provisions as a percent of average depreciable utility plant in service approximated 2.9 percent in 2020 and 2019, and 2.8 percent in 2018.

Annual depreciation provisions as a percent of average depreciable utility plant in service approximated 2.9 percent in 2021, 2020, and 2019.

During the period of construction, costs expected to be included in the final value of the constructed asset, and depreciated once the asset is complete and placed in service, are classified as construction work in progress on the consolidated balance sheets.

If the project becomes probable of being abandoned, such costs are expensed in the period such determination is made.

Idaho Power may seek recovery of such costs in customer rates, although there can be no guarantee such recovery would be granted.

If the project becomes probable of being abandoned, these costs are expensed in the period such determination is made.

Idaho Power may seek recovery of these costs in customer rates, although there can be no guarantee such recovery would be granted.

Long-lived assets are periodically reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

6 unchanged sentences

The component of AFUDC attributable to borrowed funds is included as a reduction to total interest expense.

Idaho Power’s weighted-average monthly AFUDC rate was 7.5 percent for 2020, and 7.6 percent for 2019 and 2018.

Idaho Power’s weighted-average monthly AFUDC rate was 7.5 percent for 2021 and 2020, and 7.6 percent for 2019.

IDACORP and Idaho Power account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements.

15 unchanged sentences

Losses on reacquired debt and associated costs are amortized over the life of the associated replacement debt, as allowed under regulatory accounting.

Reclassifications

Idaho Power changed the presentation of its consolidated statements of income and consolidated balance sheets from a utility format to a traditional format.

The changes revised the order of certain line items and did not result in any material changes in classification of amounts between line items.

On the Idaho Power consolidated balance sheet at December 31, 2019, $ 3.7 million which had previously been reported within "Investments and other property" was reclassified to be reported on a new line titled, "Other property."

In the consolidated statements of income, certain amounts in prior periods' consolidated statements of income have been reclassified to conform with current period presentation.

On IDACORP's and Idaho Power's consolidated statements of income for the year ended December 31, 2019, $ 2.0 million that had previously been reported as "Other" within "Operating Expenses" and "Other expense, net" within "Other Income (Expense)" respectively, were reclassified to "Other electric utility operating expenses" and "Other operating expenses" within "Operating Expenses," respectively.

On IDACORP's and Idaho Power's consolidated statements of income for the year ended December 31, 2018, $ 2.1 million that had previously been reported as "Other" within "Operating Expenses" and "Other expense, net" within "Other Income (Expense)," respectively, were reclassified to "Other electric utility operating expenses" and "Other operating expenses" within "Operating Expenses," respectively.

In addition, certain other immaterial amounts in prior periods' consolidated financial statements have been reclassified to conform with current period presentation.

New and Recently Adopted Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments , to provide financial statement users with more information about expected credit losses on financial instruments and other commitments.

The ASU revises the incurred loss impairment methodology to reflect current expected credit losses and requires consideration of a broader range of information to estimate credit losses.

IDACORP and Idaho Power adopted ASU 2016-13 on January 1, 2020.

The adoption did not have a material impact on their respective financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , to provide guidance on implementation costs incurred in a cloud computing arrangement that is a service contract.

ASU 2018-15 aligns the recognition of such implementation costs with the accounting for costs incurred to implement an internal-use software solution.

However, the balance sheet line item for presentation of capitalized implementation costs for a cloud arrangement that is a service contract should be the same as that for the prepayment of fees related to the same arrangement, while capitalized implementation costs for internal-use software solutions are often included in property, plant, and equipment as an intangible asset.

IDACORP and Idaho Power adopted ASU 2018-15 on January 1, 2020.

The adoption did not have a material impact on their respective financial statements.

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

A reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:

11 unchanged sentences

Bond redemption costs — ( 726 ) — — ( 726 ) —

Remeasurement of deferred taxes — — ( 5,411 ) — — ( 5,664 )

State income taxes, net of federal benefit 11,359 8,804 8,627 11,633 9,052 8,401

2 unchanged sentences

Income tax return adjustments 3,169 ( 2,552 ) 745 1,759 ( 2,508 ) 993

Affordable housing tax credits ( 5,315 ) ( 2,874 ) ( 2,560 ) — — —

Affordable housing investment distributions ( 13 ) ( 3,232 ) ( 267 ) — — —

Affordable housing investment amortization 3,754 1,825 1,519 — — —

Real Estate-related tax credits ( 6,245 ) ( 5,315 ) ( 2,874 ) — — —

Real Estate-related investment distributions ( 1,010 ) ( 13 ) ( 3,232 ) — — —

Real Estate-related investment amortization 4,095 3,754 1,825 — — —

Other, net 804 ( 154 ) ( 1,114 ) 331 319 ( 560 )

17 unchanged sentences

Total 11,832 2,821 2,016 11,832 2,821 2,016

Affordable housing investments 4,735 ( 1,849 ) 1,584 — — —

Real estate-related investments at IFS 3,873 4,735 ( 1,849 ) — — —

Total income tax expense $ 36,912 $ 28,700 $ 24,507 $ 38,257 $ 30,548 $ 28,417

24 unchanged sentences

Tax Credit Carryforwards

As of December 31, 2020, IDACORP had $ 19.4 million of general business credit carryforwards for federal income tax purposes and $ 42.3 million of Idaho investment tax credit carryforward.

The general business credit carryforward period expires from 2037 to 2040, and the Idaho investment tax credit expires from 2026 to 2034.

As of December 31, 2021, IDACORP had $ 41.9 million of Idaho investment tax credit carryforwards, which expire from 2026 to 2035.

Uncertain Tax Positions

7 unchanged sentences

The CAP program provides for IRS examination and issue resolution throughout the current year with the objective of return filings containing no contested items.

In 2020 , t he IRS completed its examination of IDACORP's 2019 tax year with no unresolved income tax issues.

The IRS moved IDACORP from its current maintenance phase of CAP to a bridge year for the 2020 tax year.

The IRS moved IDACORP from the maintenance phase of CAP to the bridge phase for both the 2020 and 2021 tax years.

REGULATORY MATTERS

19 unchanged sentences

7,622 — 7,622 13,225

Power supply costs (6)

2022-2023 42,940 ( 9,411 ) 33,529 —

Fixed cost adjustment (6)

4 unchanged sentences

— 22,585 22,585 19,035

Wildfire Mitigation Plan deferral (6)

— 6,075 6,075 —

Long-term service agreement 2022-2043 14,046 9,227 23,273 24,431

12 unchanged sentences

Power supply costs (6)

Settlement agreement sharing mechanism (6)

2022-2023 569 — 569 —

Mark-to-market assets — 1,995 1,995 —

Mark-to-market liabilities — 8,581 8,581 1,995

Tax reform accrual for future amortization (11)

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(9) In 2017, income tax reform reduced deferred income tax assets and liabilities.

For depreciation-related timing differences under the normalized tax accounting method, this reduction will flow back to customers under the statutorily prescribed average rate assumption method.

For depreciation-related temporary differences under the normalized tax accounting method, the resulting excess deferred taxes will flow back to customers ratably over the remaining regulatory lives of Idaho Power's plant assets under the alternative method provided in the statute.

The average rate assumption method was used to compute this reversal for fiscal years 2018-2020.

(10) Idaho Power is collecting revenue in the Idaho jurisdiction for AFUDC on HCC relicensing costs but is deferring revenue recognition of the amounts collected until the license is issued and the asset is placed in service under the new license.

2 unchanged sentences

In the event that recovery of Idaho Power’s costs through rates becomes unlikely or uncertain, regulatory accounting would no longer apply to some or all of Idaho Power’s operations and the items above may represent stranded investments.

If not allowed full recovery of these items, Idaho Power would be required to write off the applicable portion, which could have a materially adverse financial impact.

not allowed full recovery of these items, Idaho Power would be required to write off the applicable portion, which could have a materially adverse financial impact.

Power Cost Adjustment Mechanisms and Deferred Power Supply Costs

2 unchanged sentences

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 sheets 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.

The Idaho deferral period or Idaho-jurisdiction power cost adjustment (PCA) year runs from April 1 through March 31.

Amounts deferred during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period.

The power supply costs deferred primarily result from changes in the levels of Idaho Power's own hydroelectric generation, changes in contracted power purchase prices and volumes, changes in wholesale market prices and transaction volumes, and changes in fuel prices.

Idaho Jurisdiction Power Cost Adjustment Mechanism:

In the Idaho jurisdiction, the annual PCA adjustment consists of (a) a forecast component, based on a forecast of net power supply costs in the coming year as compared with net power supply costs included in base rates;

In the Idaho jurisdiction, the annual power cost adjustment (PCA) consists of (a) a forecast component, based on a forecast of net power supply costs in the coming year as compared with net power supply costs included in base rates;

and (b) a true-up component, based on the difference between the previous year’s actual net power supply costs and the previous year’s forecast.

3 unchanged sentences

• a sales-based adjustment intended to ensure that power supply expense recovery resulting solely from sales changes does not distort the results of the mechanism.

The Idaho deferral period or Idaho-jurisdiction PCA year runs from April 1 through March 31.

Amounts deferred during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period.

In May 2021, the IPUC ordered Idaho Power to initiate a case to review the PCA mechanism and propose any modifications it determines are appropriate so the case may be processed before the filing of the 2022 PCA application in April 2022.

In January 2022, the IPUC approved Idaho Power's proposed modifications to the PCA, which simplify the mechanism without impairing the intent or effectiveness of the PCA and have no material impact on overall cost recovery.

The table below summarizes the three most recent Idaho-jurisdiction PCA rate adjustments, which also include non-PCA-related rate adjustments as ordered by the IPUC:

Effective Date $ Change (millions) Notes

June 1, 2021 $ 39.1 The net increase in PCA revenues reflects a forecasted reduction in low-cost hydroelectric generation as well as higher costs associated with forecasted PURPA power purchases.

The net increase in PCA revenues also reflects a smaller credit to customers thru the true-up component.

June 1, 2020 $ 58.7 The $ 58.7 million increase in PCA rates reflects a return to a more normal level of power supply costs as wholesale market energy prices came down from unusually high levels in the previous year's PCA and a forecasted reduction in low-cost hydropower generation.

June 1, 2019 $ ( 50.1 ) The $50.1 million decrease in PCA rates includes a $5.0 million credit to customers for sharing of 2018 earnings under the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation and a $2.7 million credit for income tax reform benefits related to Idaho Power's OATT rate under a May 2018 Idaho tax reform settlement stipulation as described below in this Note 3 - Regulatory Matters.

June 1, 2018 $ ( 30.4 ) The $30.4 million total decrease in PCA rates includes a $7.8 million one-time benefit for income tax benefits accrued from January 1 to May 31, 2018, and the income taxes related to Idaho Power's open access transmission tariff (OATT) rate as described below in this Note 3 - Regulatory Matters.

June 1, 2019 $ ( 50.1 ) The $$ 50.1 million decrease in PCA rates includes a $ 5.0 million credit to customers for sharing of 2018 earnings under the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation and a $ 2.7 million credit for income tax reform benefits related to Idaho Power's open access transmission tariff (OATT) rate under a May 2018 Idaho tax reform settlement stipulation as described below in this Note 3 - Regulatory Matters.

Oregon Jurisdiction Power Cost Adjustment Mechanism:

22 unchanged sentences

In May 2018, the IPUC issued an order approving a settlement stipulation (May 2018 Idaho Tax Reform Settlement Stipulation) related to income tax reform.

Beginning June 1, 2018, the settlement stipulation provided an annual (a) $ 18.7 million reduction to Idaho customer base rates and (b) $ 7.4 million amortization of existing regulatory deferrals for specified items or future amortization of other existing or future unspecified regulatory deferrals that would otherwise be a future liability recoverable from Idaho customers.

Additionally, a one-time benefit of a $ 7.8 million rate reduction was provided to Idaho customers throu gh the Idaho-jurisdiction power cost adjustment (PCA) mech anism for the period from June 1, 2018 through May 31, 2019, for the income tax reform benefits accrued from January 1, 2018 to May 31, 2018, and the income tax reform benefits related to Idaho Power's OATT rate.

The amount provided via the PCA mechanism decreased to $ 2.7 million on June 1, 2019, for income tax reform benefits related to Idaho Power's OATT rate and ceased on June 1, 2020, to reflect the impact of a full year of reduced OATT third-party transmission revenues.

The May 2018 Idaho Tax Reform Settlement Stipulation also provided for the indefinite extension, with modifications, of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation beyond its termination date of December 31, 2019.

The May 2018 Idaho Tax Reform Settlement Stipulation also provided for the indefinite extension, with modifications noted in the table below, of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation beyond its termination date of December 31, 2019.

The table below summarizes and compares the terms of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation with the terms in the May 2018 Idaho Tax Reform Settlement Stipulation that became applicable on January 1, 2020.

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The May 2018 Idaho Tax Reform Settlement Stipulation did not impose a moratorium on Idaho Power filing a general rate case or other form of rate proceeding in Idaho during its respective term.

In 2020 and 2019, Idaho Power recorded no provision against current revenue for sharing with customers, as its full-year return on year-end equity in the Idaho jurisdiction (Idaho ROE) was between 9.4 percent and 10.0 percent in 2020 and between 9.5 percent and 10.0 percent in 2019.

In 2018, Idaho Power recorded a $ 5.0 million provision against current revenue for sharing with customers as Idaho ROE was above 10.0 percent.

In 2021, Idaho Power recorded a $ 0.6 million prov ision against current revenue for sharing with customers, as its full-year return on year-end equity in the Idaho jurisdiction (Idaho ROE) exceeded 10.0 percent.

In 2020, Idaho Power recorded no provision against current revenue for sharing with customers, as its Idaho ROE was between 9.4 percent and 10.0 percent in 2020.

Accordingly, at December 31, 2021, the full $ 45 million of additional ADITC remained available for future use under the terms of the May 2018 Idaho Tax Reform Settlement Stipulation.

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In December 2019, as planned, Idaho Power ended its participation in coal-fired operations of North Valmy plant unit 1.

In September 2021, the IPUC issued an order acknowledging Idaho Power's year-end 2025 exit date from Valmy unit 2 is appropriate based on economics and reliability needs.

Other Notable Idaho Regulatory Matters

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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 2021, the IPUC ordered Idaho Power to work with interested parties and initiate a case to review the FCA mechanism and propose modifications it determines are appropriate.

In December 2021, the IPUC approved Idaho Power's proposed modifications to the FCA mechanism to institute separate, and reduced, fixed cost tracking for customers added to Idaho Power's system after December 31, 2021.

The following table summarizes FCA amounts approved for collection in the prior three FCA years:

5 unchanged sentences

Wildfire Mitigation Cost Recovery:

In recent years, the western United States has experienced an increase in frequency and intensity of wildfires.

Idaho Power drafted a Wildfire Mitigation Plan (WMP) that outlines actions Idaho Power is taking or plans to implement in the future to reduce wildfire risk and to strengthen the resiliency of its transmission and distribution system to wildfires.

On January 22, 2021, Idaho Power filed an application with the IPUC requesting authorization to defer, for future amortization, the Idaho jurisdictional share of actual incremental O&M expenses and depreciation expense of certain capital investments necessary to implement the WMP, including incremental insurance costs.

Idaho Power also requested authorization to record these O&M expenses as a regulatory asset until the company 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 can be recovered through retail rates.

As of the date of this report, the WMP case remains pending at the IPUC.

Hells Canyon Complex Relicensing Costs Settlement Stipulation:

In December 2016, Idaho Power filed an application with the IPUC 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 inclusion in retail rates in a future regulatory proceeding.

In April 2018, the IPUC issued an order approving the settlement stipulation as filed with the IPUC and determined $216.5 million of associated costs to be reasonably and prudently incurred, with no impact on current retail rates.

In June 2021, the IPUC authorized Idaho Power to defer for future amortization incremental operations and maintenance (O&M) and depreciation expense for certain capital investments necessary to implement Idaho Power's Wildfire Mitigation Plan (WMP).

The IPUC also authorized Idaho Power to record these deferred expenses as a regulatory asset until Idaho Power can request amortization of the deferred costs in a future IPUC proceeding, at which time the IPUC will have the opportunity to review actual costs and determine the amount of prudently incurred costs that Idaho Power can recover through retail rates.

In the filing, Idaho Power projected spending approximately $ 47 million in incremental wildfire mitigation-related O&M and roughly $ 35 million in wildfire mitigation system-hardening capital incremental 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 December 31, 2021, Idaho Power's deferral related to the WMP was $ 6.1 million.

Jim Bridger Power Plant Rate Request:

In June 2021, Idaho Power filed an application with the IPUC requesting authorization to (a) accelerate depreciation for the Jim Bridger plant, to allow the plant to be fully depreciated and recovered by December 31, 2030, (b) establish a balancing account to track the incremental costs and benefits associated with ceasing participation in coal-fired operations at the Jim Bridger plant, and (c) adjust customer rates to recover the associated incremental annual levelized revenue requirement.

In September 2021, the co-owner and operator of the Jim Bridger Plant submitted its IRP to the IPUC that contemplates ceasing coal-fired generation in units 1 and 2 in 2023 and converting those units to natural gas generation by 2024.

Idaho Power's 2021 IRP includes the same plan.

At a public meeting in October 2021, the IPUC approved a joint motion by Idaho Power and the IPUC Staff to suspend the procedural schedule in Idaho Power's rate request case to assess new developments that impact

operations at the Jim Bridger plant, citing the potential option to convert the two units to natural gas generation as well as ongoing regional haze compliance discussions.

In February 2022, Idaho Power filed a request to resume the procedural schedule with an amended application to the IPUC that contemplates the conversion of units 1 and 2 to natural gas in 2024 and therefore removes from the application all investments for the portion of the plant that will be converted to support gas-fired operations, leaving just coal-related plant investments in the requested regulatory treatment.

The updated filing requests authorization to adjust customer rates to recover the associated incremental annual levelized revenue requirement in the aggregate amount of $ 27.1 million, which included Idaho Power's share of all electric plant in service related to coal-fired operations at the Jim Bridger plant.

The proposed adjustment in this application would result in an overall rate increase of 2.12 percent in Idaho.

As of the date of this report, the case remains pending at the IPUC.

Notable Oregon Regulatory Matters

4 unchanged sentences

Subsequently, in September 2012, the OPUC issued an order approving an approximately $ 3.0 million increase in annual Oregon jurisdiction base rates, effective October 1, 2012, for inclusion of the Langley Gulch power plant in Idaho Power's Oregon rate base.

Additionally, in

October 2020, the OPUC approved an increase in Oregon customer rates of $0.4 million annually associated with amortization of deferred Langley Gulch power plant revenue requirement variances, effective November 1, 2020 through October 31, 2024.

Additionally, in October 2020, the OPUC approved an increase in Oregon customer rates of $ 0.4 million annually associated with amortization of deferred Langley Gulch power plant revenue requirement variances, effective November 1, 2020, through October 31, 2024.

In May 2018, the OPUC issued an order approving a settlement stipulation that provides for an annual $ 1.5 million reduction to Oregon customer base rates beginning June 1, 2018, through May 31, 2020, related to income tax reform.

1 unchanged sentence

In June 2017, the OPUC approved a settlement stipulation allowing for (1) accelerated depreciation of North Valmy plant units 1 and 2 through December 31, 2025, (2) cost recovery of incremental North Valmy plant investments through May 31, 2017, and (3) forecasted North Valmy plant decommissioning costs.

The settlement stipulation provides for an increase in the Oregon jurisdictional revenue requirement of $ 1.1 million, effective July 1, 2017, with yearly adjustments, if warranted.

As part of the May 2018 settlement stipulation associated with income tax reform described above, the OPUC also deemed prudent Idaho Power's decision to pursue the end of its participation in coal-fired operations of unit 1 by the end of 2019 and approved Idaho Power's request to recover annual incremental accelerated depreciation relating to unit 1, beginning June 1, 2018, and ending December 31, 2019, resulting in a $ 2.5 million annualized revenue requirement.

The settlement stipulation provides for an increase in the Oregon jurisdictional revenue requirement of $ 1.1 million, with yearly adjustments, if warranted.

In May 2018, the OPUC also deemed prudent Idaho Power's decision to pursue the end of its participation in coal-fired operations of unit 1 by the end of 2019 and approved Idaho Power's request to recover annual incremental accelerated depreciation relating to unit 1, ending December 31, 2019, resulting in a $ 2.5 million annualized revenue requirement.

In October 2019, the OPUC approved the North Valmy plant agreement and authorized Idaho Power to adjust customer rates in Oregon, effective January 1, 2020, to reflect a decrease in the annual levelized revenue requirement of $ 3.2 million, which mostly relates to the decrease in depreciation expense and other costs associated with the December 2019 end of Idaho Power's participation in coal-fired operations of North Valmy plant unit 1.

Other Notable Regulatory Matters

Depreciation Rate Request s:

In 2021, Idaho Power conducted a depreciation study of electric plant-in-service, which it performs approximately every five years.

The study provided updates to net salvage percentages and service life estimates for Idaho Power plant assets.

In November 2021, in each of the Idaho and Oregon jurisdictions, Idaho Power and other stakeholders filed a joint motion for approval of a settlement stipulation adopting new depreciation rates and agreeing to no increase in the jurisdictional revenue requirement and no change in customer rates.

In December 2021 and January 2022, respectively, the IPUC and OPUC approved Idaho Power's requests, which were effective January 1, 2022.

Federal Regulatory Matters - Open Access Transmission Tariff Rates

Idaho Power uses a formula rate for transmission service provided under its OATT, which allows transmission rates to be updated annually based primarily on actual financial and operational data Idaho Power files with the FERC and allows Idaho Power to recover costs associated with its transmission system.

Power to recover costs associated with its transmission system.

Idaho Power's OATT rates submitted to the FERC in Idaho Power's four most recent annual OATT Final Informational Filings were as follows:

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Idaho Power's current OATT rate is based on a net annual transmission revenue requirement of $ 127.3 million, which represents the OATT formulaic determination of Idaho Power's net cost of providing OATT-based transmission service.

T he following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power (in thousands):

The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power (in thousands):

Year Ended December 31,

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

(2) T he IPUC allows Idaho Power to recover a portion of the AFUDC on construction work in progress related to the Hells Canyon Complex ( HCC) relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service.

(2) T he 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.

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Idaho Power’s FCA mechanism mitigates some of the fluctuations caused by weather and energy efficiency initiatives.

In 2020, Idaho Power's residential customers used more energy due to spending more time at home during the COVID-19 public health crisis.

Commercial Customers :

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Economic conditions, including manufacturing activity levels, and energy efficiency initiatives also affect energy use of commercial customers.

In 2020, the economic impacts of the COVID-19 public health crisis reduced energy usage by Idaho Power's commercial customers.

In 2021, a return to more normal economic conditions for commercial customers compared with 2020 increased sales volumes on a per customer basis, as 2020 was affected by negative COVID-19-related business conditions.

Industrial Customers :

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Energy use of industrial customers is primarily driven by economic conditions, with weather having little impact on this customer class.

In 2020, the economic impacts of the COVID-19 public health crisis reduced energy usage by Idaho Power's industrial customers.

In 2021, a return to more normal economic conditions for industrial customers compared with 2020 increased sales volumes on a per customer basis, as 2020 was affected by negative COVID-19-related business conditions.

Irrigation Customers :

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Idaho Power has regulatory settlement stipulations in Idaho that provide for the potential sharing between Idaho Power and its Idaho customers of Idaho-jurisdictional earnings in excess of 10.0 percent of Idaho ROE.

Based on full-year 2020 Idaho ROE, Idaho Power recorded no provision against current revenues for sharing of earnings with customers for 2020.

During 2019, no provision was recorded and in 2018, $5.0 million of sharing of earnings with customers was recorded.

Based on full-year 2021 Idaho ROE, Idaho Power recorded $ 0.6 million provision against current revenues for sharing of earnings with customers for 2021.

During 2020 and 2019, no provision against current revenues for sharing of earnings with customers was recorded.

The regulatory settlement stipulations are described further in Note 3 - "Regulatory Matters."

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As a public utility under the Federal Power Act (FPA), Idaho Power has the authority to charge market-based rates for wholesale energy sales under its FERC tariff.

Idaho Power’s wholesale electricity sales are primarily to utilities and power marketers and are predominantly short-term and consist of a single performance obligation satisfied as energy is transferred to the counterparty.

Idaho Power’s wholesale electricity sales are primarily to utilities and power marketers and are predominantly short-term and consist of a single performance obligation satisfied as

energy is transferred to the counterparty.

Idaho Power's wholesale energy sales depend largely on the availability of generation resources in excess of the amount necessary to serve customer loads as well as adequate market power prices and demand at the time when those resources are available.

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Energy efficiency program expenditures funded through the rider are reported as an operating expense with an equal amount recognized in revenues, resulting in no net impact on earnings.

Fewer energy efficiency projects were completed in 2021 due mostly to impacts of the COVID-19 public health crisis which decreased energy efficiency program revenues compared with prior years.

The cumulative variance between expenditures and amounts collected through the rider is recorded as a regulatory asset or liability.

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In December 2020, the IPUC authorized Idaho Power to increase the Idaho energy efficiency rider collection percentage from 2.75 percent to 3.1 percent, effective January 1, 2021.

Alternative Revenue Programs and Derivative Revenues

While revenues from contracts with customers make up most of Idaho Power’s revenues, the IPUC has authorized the FCA mechanism, which may increase or decrease tariff-based rates billed to customers.

The FCA mechanism is described in detail in Note 3 - "Regulatory Matters." The FCA mechanism revenues include only the initial recognition of FCA revenues when the regulator-specified conditions for recognition have been met.

Revenue from contracts with customers excludes the portion of the tariff price representing FCA revenues that had been initially recorded in prior periods when regulator-specified conditions were met.

When those amounts are included in the price of utility service and billed to customers, such amounts are recorded as recovery of the associated regulatory asset or liability and not as revenues.

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 forward sales, Idaho Power simultaneously enters into forward purchases of electricity for the same quantity at the same location, which are recorded in purchased power on the consolidated statements of income.

For more information on settled electricity swaps, see Note 16 - "Derivative Financial Instruments."

The table below presents the FCA mechanism revenues and derivative revenues (in thousands):

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2.50 % Series due 2023

2.95% Series due 2022 — 75,000

2.50% Series due 2023 75,000 75,000

$ 75,000 $ 75,000

1.90 % Series due 2030

80,000 80,000

6.00 % Series due 2032

100,000 100,000

5.50 % Series due 2033

70,000 70,000

5.50 % Series due 2034

50,000 50,000

5.875 % Series due 2034

55,000 55,000

5.30 % Series due 2035

60,000 60,000

6.30 % Series due 2037

140,000 140,000

6.25 % Series due 2037

100,000 100,000

4.85 % Series due 2040

100,000 100,000

4.30 % Series due 2042

75,000 75,000

4.00 % Series due 2043

75,000 75,000

3.65 % Series due 2045

250,000 250,000

4.05 % Series due 2046

120,000 120,000

4.20 % Series due 2048

450,000 450,000

Total first mortgage bonds 1,800,000 1,800,000

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(1) Humboldt County and Sweetwater County Pollution Control Revenue Bonds are secured by the first mortgage bonds, bringing the total first mortgage bonds outstanding at December 31, 2021, to $ 1.966 billion .

These two bonds were purchased and remarketed in August 2019.

See "Long-Term Debt Issuances, Maturities, and Redemptions" below.

(2) At December 31, 2020 and 2019, the overall effective cost rate of Idaho Power's outstanding debt was 4.40 percent and 4.50 percent, respectively.

(2) At both December 31, 2021 and 2020, the overall effective cost rate of Idaho Power's outstanding debt was 4.40 percent.

At December 31, 2021, the maturities for the aggregate amount of IDACORP and Idaho Power long-term debt outstanding were as follows (in thousands of dollars):

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After this offering the aggregate principal amount of the 4.20 % first mortgage bonds is $ 450 million.

In June 2020, Idaho Power issued $ 80 million in principal amount of 1.90 percent first mortgage bonds, secured medium term notes, Series L, maturing July 15, 2030.

In June 2020, Idaho Power issued $ 80.0 million in principal amount of 1.90 % first mortgage bonds, secured medium term notes, Series L, maturing July 15, 2030.

In July 2020, Idaho Power redeemed, prior to maturity, $ 75 million in principal amount of 2.95 percent first mortgage bonds, medium-term notes, Series H due in April 2022.

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In August 2020, Idaho Power redeemed $ 100 million in principal amount of 3.40 percent first mortgage bonds due in November 2020.

In August 2019, Idaho Power purchased and remarketed two of its outstanding series of pollution control tax-exempt bonds, one in the aggregate principal amount of $ 49.8 million issued in 2003 by Humboldt County, Nevada and due in 2024, and the other in the aggregate principal amount of $ 116.3 million issued in 2006 by Sweetwater County, Wyoming and due in 2026.

The bonds were remarketed with substantially the same terms, but with lower term interest rates.

The term interest rate of the series due in 2024 decreased from 5.15 percent to 1.45 percent and the term interest rate of the series due in 2026 decreased from 5.25 percent to 1.70 percent.

Idaho Power First Mortgage Bonds

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In May 2019, Idaho Power filed a shelf registration statement with the SEC, which became effective upon filing, for the offer and sale of an unspecified principal amount of its first mortgage bonds.

The issuance of first mortgage bonds requires that Idaho Power meet interest coverage and security provisions set forth in the Idaho Power's Indenture of Mortgage and Deed of Trust, dated as of October 1, 1937, as amended and supplemented from time to time (Indenture).

The issuance of first mortgage bonds requires that Idaho Power meet interest coverage and security provisions set forth in Idaho Power's Indenture of Mortgage and Deed of Trust, dated as of October 1, 1937, as amended and supplemented from time to time (Indenture).

Future issuances of first mortgage bonds are subject to satisfaction of covenants and security provisions set forth in the Indenture, market conditions, regulatory authorizations, and covenants contained in other financing agreements.

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The Indenture requires Idaho Power to spend or appropriate 15 percent of its annual gross operating revenues for maintenance, retirement, or amortization of its properties.

Idaho Power may, however, anticipate or make up these expenditures or appropriations within the five years that immediately follow or precede a particular year.

Idaho Power may, however, anticipate or make up these expenditures or appropriations within the 5 years that immediately follow or precede a particular year.

The Forty-eighth Supplemental Indenture increased the maximum amount of first mortgage bonds issuable by Idaho Power under the Indenture from $ 2.0 billion to $ 2.5 billion.

Idaho Power may amend the Indenture and increase this amount without

consent of the holders of the first mortgage bonds.

Idaho Power may amend the Indenture and increase this amount without consent of the holders of the first mortgage bonds.

The amount issuable is also restricted by property, earnings, and other provisions of the Indenture and supplemental indentures to the Indenture.

The Indenture requires that Idaho Power's net earnings be at least twice the annual interest requirements on all outstanding debt of equal or prior rank, including the bonds that Idaho Power may propose to issue.

Under certain circumstances, the net earnings test does not apply, including the issuance of refunding bonds to retire outstanding bonds that mature in less than two years or that are of an equal or higher interest rate, or prior lien bonds.

Under certain circumstances, the net earnings test does not apply, including the issuance of refunding bonds to retire outstanding bonds that mature in less than 2 years or that are of an equal or higher interest rate, or prior lien bonds.

As of December 31, 2021, Idaho Power could issue under its Indenture approximately $ 2.1 billion of additional first mortgage bonds based on retired first mortgage bonds and total unfunded property additions.

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Credit Facilities

On December 6, 2019, IDACORP and Idaho Power entered into amendments to their outstanding Credit Agreements, which provide credit facilities that may be used for general corporate purposes and commercial paper backup.

IDACORP's credit facility consists of a revolving line of credit not to exceed the aggregate principal amount at any one time outstanding of $ 100 million, including swingline loans in an aggregate principal amount at any time outstanding not to exceed $ 10 million, and letters of credit in an aggregate principal amount at any time outstanding not to exceed $ 50 million.

Idaho Power's credit facility consists of a revolving line of credit, through the issuance of loans and standby letters of credit, not to exceed the aggregate principal amount at any one time outstanding of $ 300 million, including swingline loans in an aggregate principal amount at any time outstanding not to exceed $ 30 million, and letters of credit in an aggregate principal amount at any time outstanding not to exceed $ 50 million.

The IDACORP credit facility, which may be used for general corporate purposes and commercial paper backup, consists of a revolving line of credit not to exceed the aggregate principal amount at any one time outstanding of $ 100 million, including swingline loans in an aggregate principal amount at any time outstanding not to exceed $ 10 million, and letters of credit in an aggregate principal amount at any time outstanding not to exceed $ 50 million.

The Idaho Power credit facility, which may be used for general corporate purpose and commercial paper backup, consists of a revolving line of credit, through the issuance of loans and standby letters of credit, not to exceed the aggregate principal amount at any one time outstanding of $ 300 million, including swingline loans in an aggregate principal amount at any time outstanding not to exceed $ 30 million, and letters of credit in an aggregate principal amount at any time outstanding not to exceed $ 50 million.

IDACORP and Idaho Power have the right to request an increase in the aggregate principal amount of the facilities to $ 150 million and $ 450 million, respectively, in each case subject to certain conditions.

The IDACORP and Idaho Power credit facilities have similar terms and conditions.

The interest rates for any borrowings under the facilities are based on either (1) a floating rate that is equal to the highest of the prime rate , federal funds rate plus 0.5 percent, or LIBOR Market Index rate plus 1.0 percent, or (2) the LIBOR Market Index rate , plus, in each case, an applicable margin, provided that the federal funds rate and LIBOR rate will not be less than zero .

An alternate benchmark rate selected by the administrative agent for the credit facilities and IDACORP and Idaho Power will apply during any period in which the LIBOR rate is unavailable or unascertainable.

The applicable margin is based on IDACORP's or Idaho Power's, as applicable, senior unsecured long-term indebtedness credit rating by Moody's Investors Service, Inc., Standard and Poor's Ratings Services, and Fitch Rating Services, Inc., as set forth on a schedule to the credit agreements.

The IDACORP and Idaho Power credit facilities have similar terms and c onditions.

The interest rates for any borrowings under the facilities are based on either (1) a floating rate that is equal to the highest of the prime rate , federal funds rate plus 0.5 percent, or London interbank offered rate ( LIBOR) Market Index rate plus 1.0 percent, or (2) the LIBOR Market Index rate, plus, in each case, an applicable margin, provided that the federal funds rate and LIBOR rate will not be less than zero .

The Secured Overnight Financing Rate (SOFR) plus a defined benchmark adjustment would replace the LIBOR Market Index rate during any period in which the LIBOR rate is unavailable or unascertainable.

If during any period both the LIBOR and SOFR rates are unavailable or unascertainable, an alternate benchmark rate selected by the administrative agent and the borrower would apply.

The applicable margin is based on IDACORP's or Idaho Power's, as applicable, senior unsecured long-term indebtedness credit rating by rating agencies, as set forth on a schedule to the credit facility agreements.

Under their respective credit facilities, the companies pay a facility fee on the commitment based on the respective company's credit rating for senior unsecured long-term debt securities.

In December 2021, IDACORP and Idaho Power amended their outstanding credit agreements to extend the termination dates of each facility to December 6, 2025, and provided additional information on potential alternatives, successors or replacement rates for LIBOR in the event it is no longer available as of the date of borrowing, among other things.

While the credit facilities provide for an original maturity date of December 6, 2025, the credit agreements grant IDACORP and Idaho Power the right to request up to two one-year extensions, subject to certain conditions.

At December 31, 2021, no loans were outstanding under either IDACORP's or Idaho Power's facilities.

At December 31, 2020, Idaho Power had regulatory authority to incur up to $ 450 million in principal amount of short-term indebtedness at any one time outstanding.

IDACORP’s and Idaho Power's short-term borrowings were zero at December 31, 2020, and December 31, 2019.

At December 31, 2021, Idaho Power had regulatory authority to incur up to $ 450 million in principal amount of short-term indebtedness at any one time outstanding through December of 2026.

IDACORP’s and Idaho Power's short-term borrowings were zero at both December 31, 2021 and 2020.

IDACORP Common Stock

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(1) During 2021, 2020, and 2019, IDACORP granted 76,147 , 75,030 , and 70,419 restricted stock unit awards, respectively, to employees and 14,025 , 10,296 , and 9,594 shares of common stock, respectively, to directors.

During 2020, IDACORP issued 41,868 shares of common stock using original issuances of shares pursuant to the IDACORP, Inc.

2000 Long-Term Incentive and Compensation Plan, including 8,938 shares of common stock issued to members of the board of directors.

During 2019 and 2018, IDACORP made no original issuances of shares of common stock.

During 2021 and 2020, IDACORP issued 54,594 and 41,868 shares of common stock, respectively, using original issuances of shares pursuant to the IDACORP, Inc.

2000 Long-Term Incentive and Compensation Plan, including 12,784 and 8,938 shares of common stock, respectively, issued to members of the board of directors.

During 2019, IDACORP made no original issuances of shares of common stock.

Restrictions on Dividends

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The total fair value of shares vested was $ 6.7 million in 2021, $ 10.5 million in 2020, and $ 9.4 million in 2019.

At December 31, 2020, IDACORP had $ 5.9 million of total unrecognized compensation cost related to nonvested share-based compensation.

Idaho Power's share of this amount was $ 5.8 million.

At December 31, 2021, IDACORP had $ 7.5 million of total unrecognized compensation cost related to nonvested share-based compensation, nearly all of which was Idaho Power's share.

These costs are expected to be recognized over a weighted-average period of 1.7 years.

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Fuel 62,287 19,328 8,663 8,362 8,354 58,355

As of December 31, 2020, Idaho Power had 1,134 MW nameplate capacity of PURPA-related projects on-line, with an additional 6 MW nameplate capacity of projects projected to be on-line by 2022.

As of December 31, 2021, Idaho Power had 1,137 megawatt (MW) nameplate capacity of PURPA-related projects on-line, with an additional 75 MW nameplate capacity of projects projected to be on-line by 2024.

The power purchase contracts for these projects have original contract terms ranging from one to 35 years.

Idaho Power's expenses associated with PURPA-related projects were approximately $ 200 million in 2021, $ 194 million in 2020, and $ 187 million in 2019.

In February 2022, Idaho Power entered into a 20-year power purchase agreement with a planned 40 MW solar facility expected to be in service in 2023 which increased Idaho Power's contractual purchase obligations by approximately $78 million over the term of the contract.

Idaho Power also has the following long-term commitments (in thousands of dollars):

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At IDACORP, long-term purchase commitments of $ 3 million are mostly comprised of other long-term liabilities at Ida-West, of which approximately $ 2 million relate to contracts that do not specify terms related to expiration.

At December 31, 2021, IDACORP had a commitment to invest an additional $ 8.5 million into a private market investment fund, which is expected to occur over the next few years.

IDACORP’s expense for operating leases was not material for the years ended 2021, 2020, and 2019.

Through a self-bonding mechanism, 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 $ 58.3 million at December 31, 2020, representing IERCo's one-third share of BCC's total reclamation obligation of $ 175.0 million.

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 WDEQ, was $ 51.6 million at December 31, 2021, representing IERCo's one-third share of BCC's total reclamation obligation of $ 154.7 million.

BCC has a reclamation trust fund set aside specifically for the purpose of paying these reclamation costs.

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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.

In May 2019, the state of Wyoming enacted legislation that limits a mine operator's maximum amount of self-bonding.

Commencing in the first quarter of 2021, Idaho Power plans to post collateral in the form of a surety bond purchased jointly with the co-owner of BCC to cover the projected mine reclamation costs pursuant to the laws of the state of Wyoming.

As of the date of this report, Idaho Power believes the cost of the surety bond required for this guarantee due to the new law will be immaterial to the companies' consolidated financial statements.

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.

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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.

In recent years, Idaho Power has regularly received claims by governmental agencies and private landowners for damages for fires allegedly originating from Idaho Power’s transmission and distribution system.

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 consolidated financial statements.

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Interest cost 37,317 40,013 3,557 4,350

Actuarial loss 163,610 147,784 13,420 17,888

Actuarial (gain) loss ( 35,833 ) 163,610 33 13,420

Plan amendment — — — 130

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(1) Changes in the funded status of the pension plan that would be recorded in accumulated other comprehensive income for an unregulated entity are recorded as a regulatory asset for Idaho Power as Idaho Power believes it is probable that an amount equal to the regulatory asset will be collected through the setting of future rates.

The actuarial losses reflected in the benefit obligations for the pension and SMSP plans in 2020 are due primarily to decreases in the assumed discount rates of both plans from December 31, 2019, to December 31, 2020.

The actuarial gains reflected in the benefit obligations for the pension and SMSP plans in 2021 are due primarily to increases in the assumed discount rates of both plans from December 31, 2020, to December 31, 2021.

The actuarial losses affecting the

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The recorded value of these investments was approximately $ 117.1 million and $ 108.8 million at December 31, 2021 and 2020, respectively, and is reflected in Investments and in company-owned life insurance on the consolidated balance sheets.

The following table shows the components of net periodic benefit cost for these plans (in thousands of dollars).

The following table shows the components of net periodic pension cost for these plans (in thousands of dollars).

For purposes of calculating the expected return on plan assets, the market-related value of assets is equal to the fair value of the assets.

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Net periodic pension cost 51,231 44,092 41,320 8,871 8,587 7,023

Regulatory deferral of net periodic benefit cost (1)

Regulatory deferral of net periodic pension cost (1)

( 48,962 ) ( 42,042 ) ( 39,379 ) — — —

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17,154 17,154 17,154 — — —

Net periodic benefit cost recognized for financial reporting (1)(2)

Net periodic pension cost recognized for financial reporting (1)(2)

$ 19,423 $ 19,204 $ 19,095 $ 8,871 $ 8,587 $ 7,023

(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 $ 15.9 million, $ 15.1 million, and $ 15.2 million respectively, was recognized in "Other operations and maintenance" and $ 11.9 million, and $ 11.0 million, and $ 11.6 million respectively, was recognized in "Other (income) expense, net" on the consolidated statements of income of the companies for the twelve months ended December 31, 2020, 2019, and 2018.

(1) Net periodic pension 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 pension 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 pension cost recognized for financial reporting $ 17.8 million, $ 15.9 million, and $ 15.1 million respectively, was recognized in "Other operations and maintenance" and $ 10.5 million, and $ 11.9 million, and $ 11.0 million respectively, was recognized in "Other (income) expense, net" on the consolidated statements of income of the companies for the twelve months ended December 31, 2021, 2020, and 2019.

The following table shows the components of other comprehensive (loss) income for the plans (in thousands of dollars):

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2021 2020 2019 2021 2020 2019

Actuarial (loss) gain during the year $ ( 107,399 ) $ ( 82,631 ) $ ( 15,226 ) $ ( 13,420 ) $ ( 17,888 ) $ 7,049

Actuarial gain (loss) during the year $ 91,156 $ ( 107,399 ) $ ( 82,631 ) $ ( 33 ) $ ( 13,420 ) $ ( 17,888 )

Plan amendment service cost — — — — ( 130 ) ( 2,839 )

5 unchanged sentences

( 85,368 ) 66,884 51,285 — — —

Other comprehensive (loss) income recognized related to pension benefit plans

$ — $ — $ — $ ( 7,074 ) $ ( 13,440 ) $ 8,120

Other comprehensive income (loss) recognized related to pension benefit plans $ — $ — $ — $ 3,318 $ ( 7,074 ) $ ( 13,440 )

The following table summarizes the expected future benefit payments of these plans (in thousands of dollars):

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In 2021, 2020, and 2019, Idaho Power elected to contribute more than the minimum required amounts in order to bring the pension plan to a more funded position, to reduce future required contributions, and to reduce Pension Benefit Guaranty Corporation premiums.

As of the date of this report, IDACORP's and Idaho Power's minimum required contribution to the

pension plan is estimated to be $ 4 million during 2021.

As of the date of this report, IDACORP and Idaho Power have no estimated minimum required

contributions to the pension plan for 2022.

Depending on market conditions and cash flow considerations in 2022, Idaho Power could contribute up to $ 40 million to the pension plan during 2022 in order to help balance the regulatory collection of these expenditures with the amount and timing of contributions and to mitigate the cost of being in an underfunded position.

8 unchanged sentences

Interest cost 2,059 2,493

Actuarial loss (gain) 9,359 5,298

Actuarial (gain) loss ( 5,805 ) 9,359

Benefits paid (1)

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Fair value of plan assets at January 1 41,311 39,625

Actual return (loss) on plan assets 5,248 7,269

Actual return on plan assets 6,308 5,248

Employer contributions (1)

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Amounts recognized in accumulated other comprehensive income consist of the following (in thousands of dollars):

Net loss $ 6,434 $ ( 81 )

Net (gain) loss $ ( 8,020 ) $ 6,434

Prior service cost 80 127

10 unchanged sentences

Net periodic postretirement benefit cost $ 5,510 $ 1,165 $ 1,670

(1) In 2018, a loss associated with a temporary deviation from the cost-sharing provisions of the substantive plan was recognized in "Other expense, net" on the consolidated statements of income of the companies.

(1) In 2021, a loss associated with a temporary deviation from the cost-sharing provisions of the substantive plan was recognized in "Other (income) expense, net" on the consolidated statements of income of the companies.

The following table shows the components of other comprehensive income for the plan (in thousands of dollars):

2021 2020 2019

Actuarial loss during the year $ ( 6,515 ) $ ( 249 ) $ ( 1,109 )

Actuarial gain (loss) during the year $ 9,718 $ ( 6,515 ) $ ( 249 )

Reclassification adjustments for:

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Other comprehensive income related to postretirement benefit plans

The following table summarizes the expected future benefit payments of the postretirement benefit plan (in thousands of dollars):

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Dental trend rate — — — — — — 3.5 % 4.0 % 4.0 %

The assumed health care cost trend rate used to measure the expected cost of health benefits covered by the postretirement plan was 6.8 percent in 2020 and is assumed to decrease to 6.0 percent in 2021, 5.2 percent in 2022, 5.1 percent in 2023 and to gradually decrease to 3.9 percent by 2074.

The assumed health care cost trend rate used to measure the expected cost of health benefits covered by the postretirement plan was 6.3 percent in 2021 and is assumed to decrease to 5.7 percent in 2022, 5.1 percent in 2023 and 2024, 5.0 percent in 2025 and to gradually decrease to 3.9 percent by 2074.

The assumed dental cost trend rate used to measure the expected cost of dental benefits covered by the plan was 3.5 percent, or equal to the medical trend rate if lower, for all years.

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Cash and cash equivalents $ 25,008 $ — $ — $ 25,008

Short-term bonds 21,628 — — 21,628

Intermediate bonds 34,455 163,000 — 197,455

8 unchanged sentences

Equity Securities:

International 13,817 — — 13,817

Global and International 69,687 — — 69,687

Equity Securities:

7 unchanged sentences

Emerging Markets 50,019

Commingled Fund:

Commodities fund 34,793

Real estate 54,630

11 unchanged sentences

This asset represents an investment in a life insurance contract and is recorded at fair value, which is the cash surrender value, less any unpaid expenses.

The cash surrender value of this insurance contract is contractually equal to the insurance contract's proportionate share of the market value of an associated investment account held by the insurer.

The cash surrender value of this insurance contract is contractually

equal to the insurance contract's proportionate share of the market value of an associated investment account held by the insurer.

The investments held by the insurer's investment account are all instruments traded on exchanges with readily determinable market prices.

Commingled Funds :

These funds, made up of the global, international and emerging markets equity securities and commodities fund measured at NAV, are not publicly traded, and therefore no publicly quoted market price is readily available.

These funds, made up of global, international and emerging markets equity securities are measured at NAV, are not publicly traded, and therefore no publicly quoted market price is readily available.

The values of the commingled funds are presented at estimated fair value, which is determined based on the unit value of the fund.

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These benefits include salary continuation, health care and life insurance for those employees found to be disabled under Idaho Power’s disability plans, and health care for surviving spouses and dependents.

Idaho Power accrues a liability for such benefits.

Idaho Power accrues a

liability for such benefits.

The post-employment benefits included in other deferred credits on both IDACORP’s and Idaho Power’s consolidated balance sheets at December 31, 2021 and 2020, were approximately $2 million.

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(2) Pursuant to an agreement with NV Energy, Idaho Power's participation in coal-fired operations of North Valmy ended in December 2019 at unit 1 and is planned to end no later than the end of 2025 at unit 2 .

In October 2020, Idaho Power and co-owner Portland General Electric ceased coal-fired operations at their Boardman power plant consistent with Idaho Power's continued path away from coal-fired generation.

All depreciable property, plant and

equipment associated with Idaho Power's ownership in the Boardman power plant was fully depreciated as of December 31, 2020.

In October 2020, Idaho Power and co-owner Portland General Electric ceased coal-fired operations at their Boardman power plant, as planned.

All depreciable property, plant and equipment associated with Idaho Power's ownership in the Boardman power plant was fully depreciated as of December 31, 2020.

IERCo, Idaho Power’s wholly-owned subsidiary, is a joint venturer in BCC.

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In October 2020, Idaho Power and co-owner Portland General Electric ceased coal-fired operations at their Boardman power plant.

At December 31, 2020, Idaho Power has recorded a liability for estimated costs of decommissioning and retirement of Boardman plant assets, which is included in the amounts in the table below.

As of December 31, 2021 and 2020, Idaho Power has recorded a liability for estimated costs of decommissioning and retirement of Boardman plant assets, which is included in the amounts in the table below.

Idaho Power’s recorded AROs relate to the reclamation and removal costs at its jointly-owned coal-fired generation facilities.

In 2021, changes in estimates at the coal-fired generation facilities resulted in a net increase of $ 9.4 million in the recorded AROs.

The increase is primarily related to revised cost estimates for the closure of a flue gas desulfurization pond at the Jim Bridger plant.

Idaho Power also has additional AROs associated with its transmission system and generation facilities;

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Total Idaho Power investments 77,108 87,848

Investments in real estate projects, such as affordable housing developments (IFS) 28,438 3,665

IFS investments in real estate tax credit projects, such as affordable housing developments 34,967 28,438

Ida-West joint ventures (equity method investments) 10,386 10,662

Other investments 1,363 —

Total IDACORP investments $ 123,824 $ 126,948

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IDACORP Financial Services Investments

IFS invests primarily in real estate projects, such as affordable housing developments, which provide a return principally by reducing federal and state income taxes through tax credits and accelerated tax depreciation benefits.

IFS invests primarily in real estate tax credit projects, such as affordable housing developments, which provide a return principally by reducing federal and state income taxes through tax credits and accelerated tax depreciation benefits.

IFS has focused on a diversified approach to its investment strategy in order to limit both geographic and operational risk, with most of IFS’s investments having been made through syndicated funds.

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Idaho Power uses derivative instruments, such as physical and financial forward contracts, for both electricity and fuel to manage the risks relating to these commodity price exposures.

The primary objectives of Idaho Power’s energy purchase and sale activity are to

meet the demand of retail electric customers, maintain appropriate physical reserves to ensure reliability, and make economic use of temporary surpluses that may develop.

All of Idaho Power's derivative instruments have been entered into for the purpose of economically hedging forecasted purchases and sales, though none of these instruments have been designated as cash flow hedges.

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.

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Financial swaps Fuel expense 12,180 ( 4,791 ) 13,811

Financial swaps Other operations and maintenance — — 118

Forward contracts Operating revenues 1,966 421 285

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(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 revenues from contracts with customers or purchased power depending on the forecasted position being economically hedged by the derivative contract.

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 operations and maintenance expense.

Settlement gains and losses on diesel derivatives are recorded in other O&M expense.

See Note 17 - "Fair Value Measurements" for additional information concerning the determination of fair value for Idaho Power’s assets and liabilities from price risk management activities.

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Forward contracts Other current liabilities — — — 1,970 — 1,970

Financial swaps Other assets 899 ( 9 ) 890 9 ( 9 ) —

Financial swaps Other liabilities — — — 14 — 14

Forward contracts Other liabilities — — — 3,743 — 3,743

Total $ 11,504 $ ( 4,906 ) $ 6,598 $ 8,670 $ ( 2,923 ) $ 5,747

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Total $ 2,263 $ ( 268 ) $ 1,995 $ 893 $ ( 749 ) $ 144

(1) Current asset derivative amounts offset include $2.0 million of collateral payable at December 31, 2021 .

(2) Current and long-term liability derivative amounts offset include $0.5 million and $16 thousand of collateral receivable at December 31, 2020, respectively .

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The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at December 31, 2021, was $ 3.0 million.

Idaho Power posted $ 0.5 million cash collateral related to this amount.

Idaho Power did not post any cash collateral related to this amount.

If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2021, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional $ 7.6 million to cover open liability positions as well as completed transactions that have not yet been paid.

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There were no transfers between levels or material changes in valuation techniques or inputs during the years ended December 31, 2021 and 2020.

Certain instruments have been valued using net asset value (NAV) as a practical expedient.

These instruments are similar to mutual funds;

however, their 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 the 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 December 31, 2021 and 2020 (in thousands of dollars):

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Equity securities 54,431 — — 54,431 50,733 — — 50,733

IDACORP assets measured at NAV (not subject to hierarchy disclosure) (1)

— — — 1,363 — — — —

Derivatives $ 34 $ 5,713 $ — $ 5,747 $ 134 $ 10 $ — $ 144

2 unchanged sentences

Idaho Power’s derivatives are contracts entered into as part of its management of loads and resources.

Electricity derivatives are valued on the Intercontinental Exchange with quoted prices in an active market.

Electricity swap derivatives are valued on the Intercontinental Exchange 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 and Intercontinental Exchange pricing, adjusted for location basis, which are also quoted under NYMEX and ICE pricing.

Equity securities 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.

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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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 of IFS’s investments in affordable housing

developments and other real estate projects, Ida-West’s joint venture investments in small hydropower generation projects, and IDACORP’s holding company expenses.

This category is comprised of IFS’s investments in affordable housing developments and other real estate tax credit projects, Ida-West’s joint venture investments in small hydropower generation projects, and IDACORP’s holding company expenses.

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):

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Income from life insurance investments 5,203 4,036 4,104

Other (expense) income 468 ( 303 ) 455

Other income (expense) 591 468 ( 303 )

Total other income (expense), net $ ( 3,171 ) $ 2,739 $ 4,217

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Balance at beginning of period $ ( 43,358 ) $ ( 36,284 ) $ ( 22,844 )

Other comprehensive income before reclassifications ( 10,062 ) ( 15,392 ) 5,234

Amounts reclassified out of AOCI to net income 2,988 1,952 2,886

Other comprehensive income before reclassifications, net of tax of $( 8 ), $( 3,488 ), and $( 5,335 )

( 25 ) ( 10,062 ) ( 15,392 )

Amounts reclassified out of AOCI to net income, net of tax of $ 1,158 , $ 1,036 , and $ 677

3,343 2,988 1,952

Net current-period other comprehensive income 3,318 ( 7,074 ) ( 13,440 )

131 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data