What changed in this filing

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Item 1. Business

2023-02-16 compared with 2022-02-17 · 120 added, 128 removed, 392 unchanged (39% of the section changed)

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Idaho Power is the parent of Idaho Energy Resources Co.

(IERCo), a joint venturer in Bridger Coal Company (BCC), which mines and supplies coal to the Jim Bridger generating plant (Jim Bridger plant) owned in part by Idaho Power.

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

Idaho Power's utility operations constitute nearly all of IDACORP's current business operations.

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Securities Exchange Act of 1934 as soon as reasonably practicable after the reports are electronically filed with or furnished to the U.S.

Securities and Exchange Commission (SEC).

Securities and Exchange Commission.

IDACORP's website is www.idacorpinc.com and Idaho Power's website is www.idahopower.com .

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The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers.

Idaho Power is also under the regulatory jurisdiction of the IPUC, the OPUC, and the Wyoming Public Service Commission (WPSC) as to the issuance of debt and equity securities.

Idaho Power is also under the regulatory jurisdiction of the IPUC, the OPUC, and the Wyoming Public Service Commission as to the issuance of debt and equity securities.

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

Additionally, the FERC has jurisdiction over Idaho Power's sales of transmission capacity and wholesale electricity, hydropower project relicensing, and system reliability, among other items.

Additionally, the FERC has jurisdiction over Idaho Power's sales of transmission capacity and wholesale electricity, hydropower project relicensing, and system reliability and security, among other items.

Regulatory Accounting

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, with the impacts of rate regulation reflected in its financial statements.

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, with the impacts of rate regulation reflected in its financial statements.

Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment;

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Additionally, regulators can impose regulatory liabilities upon a regulated company for amounts previously collected from customers that are expected to be refunded.

Idaho Power records regulatory assets or liabilities if it expects the amounts will be reflected in future prices, based on regulatory orders or other available evidence.

Idaho Power records regulatory assets or liabilities if it expects the amounts will be reflected in future customer rates, based on regulatory orders or other available evidence.

Consistent with orders and directives of the IPUC, unless contrary to applicable income tax guidance, Idaho Power does not provide deferred income tax expense or benefit for certain income tax temporary differences and instead recognizes the tax impact currently (commonly referred to as flow-through accounting) for rate making and financial reporting.

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In executing on these four strategic cornerstones, IDACORP seeks to balance the interests of shareowners, Idaho Power customers, employees, and other stakeholders.

Idaho Power is committed to working for strong, sustainable financial results by continuing to provide reliable, affordable, clean energy to its customers from diversified generation resources.

Idaho Power is committed to working for strong, sustainable financial results by continuing to safely provide reliable, affordable, clean energy to its customers from diversified generation resources.

Rates and Revenues

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The prices that the IPUC, the OPUC, and the FERC authorize Idaho Power to charge for electric power and services are critical factors in determining IDACORP's and Idaho Power's results of operations and financial condition.

In addition to the discussion below, for more information on Idaho Power's regulatory framework and rate regulation, see the “Regulatory Matters” section of Part II, Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) and Note 3 – “Regulatory Matters” to the consolidated financial statements included in this report.

In addition to the discussion below, more information on Idaho Power's regulatory framework and rate regulation can be found in the “Regulatory Matters” section of Part II, Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) and Note 3 – “Regulatory Matters” to the consolidated financial statements included in this report.

Retail Rates :

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Rates are designed to provide, after recovery of allowable operating expenses, including depreciation on capital investments, an opportunity for Idaho Power to earn a reasonable return on investment as authorized by regulators.

Idaho Power regularly evaluates the need to request changes to its retail electricity price structure to cover its operating costs and to earn a fair return on its investments.

Idaho Power uses general rate cases, power cost adjustment mechanisms in Idaho and Oregon, a fixed cost adjustment (FCA) mechanism in Idaho, balancing accounts and tariff riders, and subject-specific filings to recover its costs of providing service and to earn a return on investment.

Idaho Power regularly evaluates the need to request changes in its retail electricity price structure through the use of general rate cases, power cost adjustment mechanisms in Idaho and Oregon, a fixed cost adjustment (FCA) mechanism in Idaho, balancing accounts and tariff riders, and subject-specific filings to recover its costs of providing service and to earn a return on investment.

Retail prices are generally determined through formal ratemaking proceedings that are conducted under established procedures and schedules before the issuance of a final order.

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Retail Energy Sales:

Weather, seasonal customer demand, energy efficiency, customer generation, and economic conditions all impact the amount of electricity that Idaho Power sells as well as the costs it incurs to provide that electricity.

Weather, seasonal customer demand, energy efficiency, customer generation, customer growth, and economic conditions all impact the amount of electricity that Idaho Power sells as well as the costs it incurs to provide that electricity.

Idaho Power's utility revenues are not earned, and associated expenses are not incurred, evenly during the year.

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Availability of water and extreme temperatures during the agricultural growing season impact electricity sales to customers who use electricity to operate irrigation pumps.

Alternative methods of generation, including customer-owned solar and other forms of distributed generation, have the potential to decrease Idaho Power sales to existing customers.

Alternative methods of generation, including customer-owned solar and other forms of distributed generation, have the potential to decrease Idaho Power sales to customers.

Also, development of new technologies and services to help energy consumers manage energy in new ways could continue to alter demand for Idaho Power's electric energy.

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Even in below-normal water years, there are opportunities to vary water usage to capture wholesale marketplace economic benefits, maximize generation unit efficiency, and meet peak loads.

Compliance factors such as allowable reservoir stage elevation changes and flood control requirements also influence these generation dispatch decisions.

Compliance factors such as allowable river and reservoir stage elevation changes and flood control requirements also influence these generation dispatch decisions.

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

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The FERC oversees mandatory transmission and network reliability standards, as well as power and transmission markets, including protection against market manipulation.

These mandatory transmission and reliability standards were developed by the North American Electric Reliability Corporation and the Western Electricity Coordinating Council, which have responsibility for compliance and enforcement of transmission and reliability standards.

Idaho Power's electric utility business has historically been recognized as a natural monopoly.

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However, certain prescribed areas within Idaho Power's service area, such as municipalities or Native American Tribal reservations, may elect not to take service from Idaho Power and instead operate as a municipal electric utility or otherwise as a separate entity.

In such cases, the entity would be required to purchase or otherwise obtain rights (such as by contract) to Idaho Power's distribution infrastructure within the municipal or other designated area.

Idaho Power would have no responsibility for providing electric service to the municipal or separate entity, absent Idaho Power's voluntary execution of an agreement to provide that service.

Idaho Power primarily relies on company-owned hydropower, coal-fired, and gas-fired generation facilities and long-term power purchase agreements to supply the energy needed to serve customers, and for sales into the wholesale markets.

In such cases, the entity would be required to purchase or otherwise obtain rights to Idaho Power's distribution infrastructure within the municipal or other designated area.

Idaho Power would have no responsibility for providing electric service to the municipal or separate entity, absent Idaho Power's voluntary agreement to provide that service.

Market purchases and sales are used to supplement Idaho Power's generation and balance supply and demand throughout the year.

Idaho Power’s generating plants and their capacities are listed in Part I, Item 2 - “Properties.”

Various external and internal factors impact power supply costs;

such as, weather, load demand, economic conditions, fuel costs, and availability of generation resources.

Various external and internal factors impact power supply costs, such as weather, load demand, economic conditions, fuel costs, and availability of generation resources.

Idaho Power’s annual hydropower generation varies depending on water conditions in the Snake River Basin.

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Conversely, favorable hydropower generation conditions increase production at Idaho Power’s hydropower generating facilities and reduce the need for thermal generation and wholesale market purchased power.

Weather also affects the generation of PURPA and non-PURPA purchased power.

Economic conditions, weather, supply constraints, and governmental regulations can affect the market price of natural gas and coal, which impact fuel expense and market prices for purchased power.

Idaho Power's power cost adjustment mechanisms mitigate in large part the financial impacts to Idaho Power of volatile fuel and power costs.

Idaho Power's power cost adjustment mechanisms mitigate in large part the earnings impacts to Idaho Power of volatile fuel and power costs.

Idaho Power’s system is dual peaking, with the larger peak demand occurring in the summer.

Idaho Power reached its highest all-time system peak demand of 3,751 megawatts (MW) on June 30, 2021.

Idaho Power's highest all-time winter peak demand of 2,527 MW was last achieved on January 6, 2017.

During these and other similarly heavy load periods, Idaho Power’s system is fully committed to serve load and meet required operating reserves.

Idaho Power's highest all-time winter peak demand of 2,604 MW occurred on December 22, 2022.

During these and other similar heavy load periods, Idaho Power’s system is fully committed to serve load and meet required operating reserves.

The table that follows shows Idaho Power’s total power supply for the last three years.

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Idaho Power actively participates in collaborative work groups focused on water management issues in the Snake River Basin, with the goal of preserving the long-term availability of water for use at Idaho Power’s hydropower projects on the Snake River.

In 2021, below-normal snow accumulation and drought conditions resulted in lower than average hydropower generation of 5.4 million MWh.

In 2020, precipitation and snowpack were unevenly distributed across the Snake River Basin, with the Upper Snake River Basin experiencing near-normal winter snowpack but other key basins near the HCC experiencing below-normal snowpack.

These snowpack conditions, coupled with strong early season irrigation demands, yielded lower inflows to Idaho Power’s hydroelectric projects and resulted in 7.0 million MWh of hydropower generation in 2020.

In 2019, above-normal reservoir storage carryover from the previous year coupled with near-normal winter snowpack resulted in 8.3 million MWh of hydropower generation.

During low water years, when stream flows into Idaho Power’s hydropower projects are reduced, Idaho Power’s hydropower generation is reduced, resulting in a greater reliance on other generation resources and wholesale power purchases.

For 2022, Idaho Power estimates annual generation from its hydropower facilities will be between 5.5 million MWh and 7.5 million MWh.

In 2022, below-normal snow accumulation and drought conditions persisted, resulting in lower than average hydropower generation of 5.3 million MWh.

In 2021, below-normal snow accumulation and drought conditions resulted in lower than average hydropower generation of 5.4 million MWh.

In 2020, snowpack conditions, coupled with strong early season irrigation demands, yielded lower inflows to Idaho Power’s hydroelectric projects and resulted in 7.0 million MWh of hydropower generation.

For 2023, snow accumulation has been strong through the date of this report;

however, upstream reservoirs and basin soils continue to reflect the prior year's drought conditions.

As such, Idaho Power's 2023 estimate of annual generation from its hydropower facilities is between 5.5 million MWh and 7.5 million MWh.

Idaho Power obtains licenses for its hydropower projects from the FERC, similar to other utilities that operate nonfederal hydropower projects on qualified waterways.

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Coal-Fired Generation :

Idaho Power co-owns the following coal-fired power plants in operation:

Idaho Power co-owns the following coal-fired power plants:

• Jim Bridger, located in Wyoming, in which Idaho Power has a one-third interest;

• North Valmy, located in Nevada, in which Idaho Power has a 50 percent interest.

BCC supplies coal to the Jim Bridger power plant.

PacifiCorp is the operator of the Jim Bridger plant.

BCC supplies coal to the Jim Bridger plant.

IERCo, a wholly-owned subsidiary of Idaho Power, owns a one-third interest in BCC and PacifiCorp owns a two-third interest in BCC and is the operator of the Bridger Coal Mine.

The mine operates under a long-term sales agreement that provides for delivery of coal through 2024.

Idaho Power believes that BCC has sufficient reserves to provide coal deliveries for at least the term of the sales agreement.

Idaho Power also has a coal supply contract providing for annual deliveries of coal through April 2022 from the Black Butte mine located near the Jim Bridger plant.

BCC has reserves to provide coal deliveries through the current term of the agreement, as well as reserves available to allow for an extension of the term agreement.

Idaho Power also has a coal supply contract providing for annual deliveries of coal through December 2023 from the Black Butte mine located near the Jim Bridger plant.

This contract supplements the BCC deliveries and provides another coal supply to fuel the Jim Bridger plant.

The Jim Bridger plant’s rail load-in facility and unit coal train, while limited, provides the opportunity to access other fuel supplies for tonnage requirements above established contract minimums.

Idaho Power's 2021 Integrated Resource Plan identified a preferred resource portfolio and action plan includes the conversion from coal to natural gas of two units at the Jim Bridger plant in 2024 and an end to Idaho Power's participation in the remaining two coal-fired units at the Jim Bridger plant by the end of 2028.

For more information on the 2021 Integrated Resource Plan, refer to "Resource Planning" in this Item 1 - "Business." In June 2021, Idaho Power filed an application with the IPUC requesting, among other things, authorization to allow the Jim Bridger plant to be fully depreciated and recovered by end-of-year 2030.

The status of Idaho Power's application is described more fully in Part II, Item 7 – MD&A – "Regulatory Matters."

NV Energy is the operator of the North Valmy power plant.

Idaho Power's 2021 Integrated Resource Plan (2021 IRP) identified a preferred resource portfolio and action plan that includes the conversion from coal to natural gas of two units at the Jim Bridger plant in 2024 and an end to Idaho Power's participation in the remaining two coal-fired units at the Jim Bridger plant by the end of 2028.

For more information on the 2021 IRP, refer to "Resource Planning" in this Item 1 – "Business." In June 2022, the IPUC approved Idaho Power's amended application, with modifications, requesting authorization to allow the Jim Bridger plant to be fully depreciated and recovered through customer rates by end-of-year 2030.

Details of the order relating to the Jim Bridger plant are described more fully in Part II, Item 7 – MD&A – "Regulatory Matters."

NV Energy is the operator of the North Valmy plant.

Idaho Power expects to meet 2023 and future fuel requirements through existing inventory and new or existing coal supply contracts.

Idaho Power has an established process approved by the IPUC and OPUC for recovery of non-fuel costs related to Idaho Power’s plan to end its participation in coal-fired operations at the North Valmy plant.

Idaho Power ended its participation in unit 1 of the North Valmy plant in December 2019, as planned, and plans to end its participation in unit 2 no later than the end of 2025.

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

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

Idaho Power's 2021 IRP identified a preferred resource portfolio and action plan that includes plans to end Idaho Power's participation in coal-fired operations at unit 2 at the end of 2025.

Natural Gas-fired Generation :

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Idaho Power purchases and stores natural gas with the intent of fulfilling needs as identified for seasonal peaks or to meet system requirements.

As of December 31, 2021, Idaho Power had approximately 10.6 million MMBtu of natural gas financially hedged for physical delivery, primarily for the operational dispatch of the Langley Gulch plant through February 2023.

As of February 10, 2023, Idaho Power had approximately 34.4 million MMBtu of natural gas financially hedged for physical delivery, primarily for the operational dispatch of the Langley Gulch plant through August 2024.

Idaho Power plans to manage the procurement of additional natural gas for the peaking units primarily on the daily spot market or from storage inventory as necessary to meet system requirements and fueling strategies.

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In addition to its wholesale market purchases, Idaho Power has the following notable long-term power purchase contracts and energy exchange agreements:

• Jackpot Holdings, LLC - for 120 MW (nameplate generation) from the Jackpot solar facility located in southern Idaho and on-line in December 2022.

The contract term ends in 2042.

• Telocaset Wind Power Partners, LLC - for 101 MW (nameplate generation) from the Elkhorn Valley wind project located in eastern Oregon.

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The contract term ends in 2033.

• Jackpot Holdings LLC - a 20-year power purchase agreement to purchase the output from a planned 120-MW solar facility, with a scheduled in-service date in late 2022.

• Black Mesa Energy, LLC - a 20-year power purchase agreement to purchase the output from a planned 40-MW solar facility, which Idaho Power plans to sell exclusively to a large industrial customer under its Clean Energy Your Way program, with a scheduled in-service date of June 2023.

• Franklin Solar LLC - a 25-year power purchase agreement to purchase the output from a planned 100-MW solar facility located in southern Idaho, with a scheduled in-service date of June 2024;

the power purchase agreement is pending IPUC approval.

• Pleasant Valley Solar, LLC - a 20-year power purchase agreement to purchase the output from a planned 200-MW solar facility, which Idaho Power plans to sell exclusively to a large industrial customer under its Clean Energy Your Way program, with a scheduled in-service date of March 2025;

the power purchase agreement is pending IPUC approval.

PURPA Qualifying Facility Energy Sales Agreements :

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The IPUC and OPUC have established specific rules and regulations to calculate the avoided cost that Idaho Power is required to include in PURPA energy sales agreements under each state's jurisdiction.

For PURPA energy sales agreements:

• Idaho Power is required to purchase all of the output delivered from the contracted qualifying facilities, subject to some exceptions such as adverse impacts on system reliability.

• The Idaho jurisdictional portion of the costs associated with PURPA contracts is fully recovered through base rates and the Idaho-jurisdiction power cost adjustment (PCA) mechanism, and the Oregon jurisdictional portion is recovered through base rates and an Oregon power cost adjustment mechanism.

For PURPA energy sales agreements, Idaho Power is required to purchase all of the output delivered from the contracted qualifying facilities, subject to some exceptions such as adverse impacts on system reliability.

The Idaho jurisdictional portion of the costs associated with PURPA contracts is fully recovered through base rates and the Idaho-jurisdiction power cost adjustment mechanism, and the Oregon jurisdictional portion is recovered through base rates and an Oregon power cost adjustment mechanism.

Thus, the primary impact of high power purchase costs under PURPA contracts is on customer rates.

• Oregon jurisdictional regulations have generally provided for PURPA standard contract terms of up to 20 years.

• The IPUC requires Idaho Power to pay "published avoided cost" rates for all wind, solar, and energy storage projects that are smaller than 100 kilowatts (kW) and all other types of projects that are smaller than 10 average MWs.

For PURPA qualifying facilities that exceed these size limitations, Idaho Power is required to negotiate an applicable price using an avoided cost methodology based on IPUC regulations.

• The IPUC issued an order in August 2015 that revised the standard PURPA power purchase contract term for new contracts to a 2-year term from the previously required 20-year term for qualifying facilities that exceed the size limitations for published avoided costs.

• The OPUC requires that Idaho Power pay published avoided costs for solar PURPA qualifying facilities with a nameplate rating of 3 MW or less and all other types of projects with a nameplate rating of 10 MW or less.

Idaho Power is required to negotiate an applicable price using an avoided cost methodology based on OPUC regulations.

Participation in Western Energy Imbalance Market :

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Participation in the Western EIM is voluntary and available to all balancing authorities in the western United States.

Idaho Power is participating with other stakeholders in different regional forums discussing the potential for developing other energy markets in the western U.S., including development of a potential day-ahead wholesale centralized market, which Idaho Power believes could provide additional benefits through the centralized economic dispatch of resources of participating utilities.

Transmission Services

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Idaho Power provides wholesale transmission service for eligible transmission customers on a non-discriminatory basis.

Idaho Power is a member of the Western Electricity Coordinating Council, the Northwest Power Pool, NorthernGrid, and the North American

Energy Standards Board.

Idaho Power is a member of the Western Electricity Coordinating Council, the Western Power Pool, NorthernGrid, and the North American Energy Standards Board.

These groups have been formed to more efficiently coordinate transmission reliability and planning throughout the Western Interconnection.

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As required by FERC standards of conduct, Idaho Power's transmission function is operated independently from Idaho Power's energy marketing function.

Idaho Power is jointly working with various partners on the permitting of two significant transmission projects.

The Boardman-to-Hemingway project is a proposed 300-mile, high-voltage transmission line between a station near Boardman, Oregon and the Hemingway station near Boise, Idaho.

The Gateway West project is a proposed 1,000-mile, high-voltage transmission line between a station located near Douglas, Wyoming and the Hemingway station.

Idaho Power is jointly working with various partners on the development of two significant transmission projects.

The Boardman-to-Hemingway project is a proposed 300-mile, high-voltage transmission line between a substation near Boardman, Oregon, and the Hemingway substation near Boise, Idaho.

The Gateway West project is a high-voltage transmission line project between a substation located near Douglas, Wyoming, and the Hemingway substation.

Both projects are intended to meet future anticipated resource needs and are discussed in Part II, Item 7 – MD&A - "Liquidity and Capital Resources - Capital Requirements" in this report.

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Integrated Resource Planning:

The IPUC and OPUC require that Idaho Power prepare biennially an Integrated Resource Plan (IRP).

Idaho Power filed its most recent IRP with the IPUC and OPUC in 2021 (2021 IRP).

The IRP seeks to forecast Idaho Power's loads and resources for a 20-year period, analyzes potential supply-side, demand-side, and transmission resource options, and identifies potential near-term, mid-term, and long-term actions.

The IPUC and OPUC require that Idaho Power prepare biennially an IRP.

Idaho Power filed its most recent 2021 IRP with the IPUC and OPUC in 2021 and expects to file its next IRP in June 2023 (2023 IRP).

Each IRP seeks to forecast Idaho Power's loads and resources for a 20-year period, analyzes potential supply-side, demand-side, and transmission resource options, and identifies potential near-term, mid-term, and long-term actions.

The four primary goals of the IRP are to:

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Idaho Power makes periodic adjustments and corrections to the resource plan to reflect economic conditions, anticipated resource development, changes in technology, and regulatory requirements.

The load forecast assumptions Idaho Power used in its 2021 IRP are included in the table below, together with the average annual growth rate assumptions used in the prior two IRPs.

The load forecast assumptions Idaho Power currently plans to use in its upcoming 2023 IRP are included in the table below, together with the average annual growth rate assumptions used in the prior two IRPs.

While assumptions are estimates only and subject to change based on actual customer load ramp-rates, the 2023 IRP assumptions include significant large commercial and industrial additions in the 5-year forecasted annual growth rate, including potential load from new facilities recently announced by Meta Platforms, Inc.

and Micron Technology, Inc.

The rate of load growth can impact the timing and extent of development of resources, such as new generation plants or transmission infrastructure, to serve those loads.

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(Peak Demand)

2021 IRP 2.6% 2.1% 1.4% 1.4%

2023 IRP (preliminary) 5.5% 3.7% 2.2% 1.8%

2021 IRP 2.6% 2.1% 1.4% 1.4%

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Idaho Power's 2021 IRP identified a preferred resource portfolio and action plan, which included the addition of a 120-MW solar resource in late 2022, the conversion from coal to natural gas of two units at the Jim Bridger plant in 2024, the end to Idaho Power's participation in coal-fired operations at the North Valmy plant unit 2 in 2025, the completion of the Boardman-to-Hemingway transmission line in 2026, and an end to Idaho Power's participation in the remaining two coal-fired units at the Jim Bridger plant by the end of 2028.

The 2021 IRP preferred resource portfolio and action plan also includes a need to acquire significant generation and storage resources to meet energy and capacity needs.

Including the resources noted above, over the next 20 years the IRP plans for the addition of 1,685 MW of storage capacity, 1,405 MW of solar capacity, 700 MW of wind capacity, 500 MW of transmission capacity, and 400 MW of capacity from demand response.

As noted in the 2021 IRP, there is uncertainty surrounding the resource sufficiency estimates and project completion dates, including uncertainty around the timing and extent of third-party development of renewable resources, fuel commodity prices, regulatory requirements, the actual completion date of the Boardman-to-Hemingway transmission project, and the economics and logistics of coal-fired plant conversions and retirements.

These uncertainties, as well as others, may result in changes to the desirability of the

preferred portfolio and adjustments to the timing and nature of anticipated and actual actions in the 2021 IRP.

As of the date of this report, proceedings relating to the 2021 IRP are pending at the IPUC and OPUC.

The 2021 IRP preferred resource portfolio and action plan also included a need to acquire significant generation and storage resources to meet energy and capacity needs.

Including the resources noted above, over the next 20 years the 2021 IRP planned for the addition of 1,685 MW of storage capacity, 1,405 MW of solar capacity, 700 MW of wind capacity, 500 MW of transmission capacity, and 400 MW of capacity from demand response.

plant conversions and retirements.

These uncertainties, as well as others, may result in changes to the desirability of the preferred portfolio and adjustments to the timing and nature of anticipated and actual actions compared to those identified in the 2021 IRP.

In November 2022 and January 2023, respectively, the IPUC and OPUC issued orders acknowledging Idaho Power's 2021 IRP.

In preparing its 2023 IRP, Idaho Power intends to analyze the potential acceleration of timing of construction of the Gateway West transmission project and the potential conversion of additional coal-fired generation units to natural gas.

Idaho Power expects to complete and file its 2023 IRP with the IPUC and OPUC in June 2023.

Energy Efficiency and Demand Response Programs:

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Environmental, Social, and Governance Initiatives

IDACORP’s and Idaho Power’s boards of directors, with considerable focus from the corporate governance and nominating committee, are responsible for the oversight of the companies’ environmental, social, and governance (ESG) initiatives and are regularly informed of the goals, measures, and results of the companies' ESG and sustainability programs.

Idaho Power has established an internal ESG Steering Committee co-led by two officers and composed of employees from the legal, finance, operations, investor relations, and other departments to oversee ESG activities and inform leadership and the board of directors on ESG related activities and matters it identifies as material to the company's operations.

IDACORP and Idaho Power publicly release annual ESG reports and the most current report is located on Idaho Power’s website, together with other information on ESG issues relevant to Idaho Power, including short-, medium-, and long-term carbon dioxide (CO 2 ) emission reduction targets that Idaho Power believes are aligned with the Paris Agreement goal of reducing CO 2 emissions to net zero by 2050.

IDACORP's and Idaho Power's 2021 ESG Report incorporated elements of the Task Force on Climate-Related Financial Disclosures (TCFD) guidelines and the Sustainability Accounting Standards Board (SASB) repor ting framework, as well as the Edison Electric Institute (EEI) E SG reporting template.

Additionally, Idaho Power responded to the Climate Disclosure Project (CDP) annual questionnaire, providing emissions data and management plans to address risks associated with climate change.

IDACORP’s and Idaho Power’s corporate governance and nominating committee, with considerable focus from the board of directors, is primarily responsible for the oversight of the companies’ environmental, social, and governance (ESG) initiatives and are regularly informed of the goals, measures, and results of the companies' ESG and sustainability programs.

Each committee of the board of directors is assigned a portion of the oversight of the companies' ESG and sustainability programs.

Idaho Power has established an internal ESG Steering Committee co-led by an officer and senior manager and composed of a cross-functional team of key employees from multiple departments to oversee ESG activities and inform leadership and the board of directors on ESG-related activities and matters it identifies as material to the company's operations and financial condition.

IDACORP's and Idaho Power's 2021 ESG Report released in April 2022 incorporated elements of the Task Force on Climate-Related Financial Disclosures guidelines and the Sustainability Accounting Standards Board repor ting framework, as well as the Edison Electric Institute (EEI) E SG reporting template.

Additionally, in 2022 Idaho Power responded to the Climate Disclosure Project (CDP) annual questionnaire, providing emissions data and management plans to address risks associated with climate change.

The ESG reports, CDP filing, and related website content are not incorporated by reference into this 2022 Annual Report.

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◦ integrating renewable resources into Idaho Power's generation mix and identifying and investigating new generation and storage technologies;

as part of this effort, Idaho Power issued requests for proposals in June

2021 and December 2021 for additional energy resources, including renewables or natural gas resource convertible to hydrogen gas power,

as part of this effort, Idaho Power has issued requests for proposals (RFPs) for additional energy resources, including renewables or natural gas resource convertible to hydrogen gas power, and to-date has procured solar power and battery storage as a result of those RFPs;

◦ continuing various environmental stewardship programs along the Snake River, including fish habitat preservation, water temperature reduction, and fish and plant restoration;

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◦ wildlife habitat, archaeological and cultural resource, and raptor protection stewardship;

• operational excellence in providing reliable, affordable, and clean energy, including enhancing grid resiliency and reliability;

• operational excellence in safely providing reliable, affordable, clean energy, including enhancing grid resiliency and reliability;

• engaging and empowering Idaho Power’s workforce (including succession planning at all levels, employee development, leadership education, retirement planning education, and providing competitive compensation and benefits, including post-retirement benefits);

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• building strong community partnerships for healthy, sustainable economic development in Idaho Power’s service area.

Based on shareholder engagement feedback, in 2021 Idaho Power also publicly released its EEO-1 statement to report its demographic workforce data.

Based on shareholder engagement feedback, beginning in 2021 Idaho Power also has publicly released its EEO-1 statement to report its demographic workforce data.

Reducing Carbon Emissions Intensity:

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Idaho Power tracks carbon emissions intensity to measure the impact of its efforts to reduce carbon emissions relative to growing power demand in its service area.

Idaho Power has actively engaged in voluntary carbon emissions intensity reduction over the past decade with an original goal to reduce emissions 10-15 percent from the baseline year of 2005 levels.

Idaho Power increased the goal to reduce carbon emission intensity by at least 15-20 percent for the period from 2010 to 2020, and exceeded this goal with an estimated average reduction o f 29 percent over th at period compared with 2005.

In May 2020, IDACORP’s and Idaho Power’s boards of directors approved an increased goal to reduce carbon emission intensity by 35 percent for the period from 2021-2025 compared with 2005.

In January 2022, Idaho Power posted its emissions reduction report on its website that establishes short-, medium-, and long-term targets for further CO 2 reductions.

Idaho Power has actively engaged in voluntary carbon emissions intensity reduction over the past decade with an original short-term goal to reduce emissions 10-15 percent from the baseline year of 2005 levels.

Idaho Power increased the short-term goal to reduce carbon emission intensity by at least 15-20 percent for the period from 2010-2020, and exceeded this goal with an estimated average reduction o f 29 percent over th at period compared with 2005.

In May 2020, IDACORP’s and Idaho Power’s boards of directors approved an increased short-term goal to reduce carbon emission intensity by 35 percent for the period from 2021-2025 compared with 2005.

In January 2022, Idaho Power posted its emissions reduction report on its website that established short-, medium-, and long-term targets for further CO 2 reductions.

This report also includes annual power generation levels and associated CO 2 emissions and emissions intensity for the 2021-2040 period.

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Idaho Power has significantly reduced its CO 2 emissions since the 2005 baseline year, primarily by decreasing its coal generation levels, including terminating coal generation at the North Valmy Unit 1 in 2019 and at the Boardman plant in 2020, and also by upgrading it s hydropower facilities , and through its energy efficiency, demand-side management and cloud-seeding programs.

Idaho Power plans to continue to reduce CO 2 emissions in future years, including a targeted 79 percent reduction in annual CO 2 emissions tons by 2030, compared to the 2005 baseline year.

Idaho Power plans to continue to reduce CO 2 emissions in future years, including a medium-term goal with a targeted 86 percent reduction in annual CO 2 emissions tons by 2030, compared with the 2005 baseline year.

In 2019, Idaho Power announced its long-term goal to provide 100 percent clean energy by 2045.

Reduction in Coal-Fired Generation:

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Idaho Power ended its participation in the operation of unit 1 in December 2019, as planned, and plans to end its participation in unit 2 no later than the end of 2025.

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

In June 2021, Idaho Power filed an application with the IPUC requesting, among other things, authorization to allow the Jim Bridger plant to be fully depreciated and recovered by end-of-year 2030.

In September 2021, the co-owner and operator of the Jim Bridger plant submitted its integrated resource plan 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.

The status of Idaho Power's application is described more fully in Part II, Item 7 – MD&A – "Regulatory Matters."

As of the date of this report, Idaho Power expects to cease participation in operations of all jointly-owned coal-fired generation plants by the end of 2028.

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

In June 2022, the IPUC approved Idaho Power's amended application requesting, among other things, authorization to allow the Jim Bridger plant to be fully depreciated and recovered by end-of-year 2030.

In September 2021, the co-owner and operator of the Jim Bridger plant submitted its 2021 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.

The details of the IPUC's order relating to the Jim Bridger plant are described more fully in Part II, Item 7 – MD&A – "Regulatory Matters."

As of the date of this report, Idaho Power expects to cease coal-fired operations at all jointly-owned coal-fired generation plants by the end of 2028.

Climate Change Adaptation :

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To address the physical impacts of climate change, Idaho Power conducts cloud-seeding operations, implements a wildfire mitigation plan, enhances grid resiliency and reliability, and continues to further Snake River shading and in-stream river enhancement projects.

Idaho Power also plans for the social and economic impacts of climate change by furthering its carbon emissions intensity reduction goal, continuing efforts to achieve its path away from coal generation, increasing the integration of renewable energy, and enhancing outage communication efforts.

Additionally, to plan for the potential regulatory impacts of climate change, Idaho Power emphasizes climate-related impacts in planning efforts, plans and advocates for additional transmission capacity to integrate additional renewable energy onto its system, identifies and investigates new technologies, including battery storage, and evaluates modifications to its pricing structure it believes will help ensure fair pricing for all customers.

Idaho Power also plans for the social and economic impacts of climate change by furthering its carbon emissions reduction goals, continuing efforts to achieve its path away from coal generation, increasing the integration of renewable energy, and enhancing customer and stakeholder communication.

Additionally, to plan for the potential regulatory impacts of climate change, Idaho Power considers climate-related impacts in planning efforts, plans and advocates for additional transmission capacity to integrate additional renewable energy onto its system, identifies and investigates new technologies, including battery storage, hydrogen generation, and modular nuclear reactor technology, and evaluates modifications to its pricing structure it believes will help ensure fair pricing for all customers.

Environmental Regulation and Costs

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Total operations and maintenance $ 35 $ 64

Idaho Power anticipates that finalization, implementation, or modification of a number of federal and state rulemakings and other proceedings addressing, among other things, greenhouse gases (GHG) and endangered species could result in substantial changes in operating and compliance costs, but Idaho Power is unable to estimate those changes in costs given the uncertainty associated with existing and potential future regulations.

Idaho Power anticipates that finalization, implementation, or modification of a number of federal and state rulemakings and other proceedings addressing, among other things, greenhouse gases and endangered species, could result in substantial changes in operating and compliance costs, but Idaho Power is unable to estimate those changes in costs given the uncertainty associated with existing and potential future regulations.

Idaho Power expects that it would seek to recover increases in costs through the ratemaking process.

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Idaho Power is actively pursuing the relicensing of the HCC, its largest hydropower generation source.

As of the date of this report, Idaho Power is unable to predict the timing of issuance by the FERC of any license order or the ultimate capital investment and ongoing operating and maintenance costs Idaho Power will incur in complying with any new license.

As of the date of this report, although Idaho Power believes issuance of a new HCC license by the FERC is likely in 2024 or thereafter, Idaho Power is unable to predict the exact timing of issuance by the FERC of any license order or the ultimate capital investment and ongoing operating and maintenance costs Idaho Power will incur in complying with any new license.

However, Idaho Power estimates that the annual costs it will incur to obtain a new long-term license for the HCC, including AFUDC, are likely to range from $30 million to $40 million until issuance of the license.

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Human Capital

Idaho Power is passionate about powering lives with reliable, affordable, and clean energy.

Idaho Power's purpose is powering lives by safely providing reliable, affordable, clean energy.

Idaho Power believes that it will prosper by committing to the needs, safety, and success of its customers, communities, employees, and owners.

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and respect for all.

To further its mission, Idaho Power’s human capital programs are designed to attract, retain, and develop high quality employees.

Idaho Power believes it maintains a good relationship with its employees due to a strong safety culture, respectful and inclusive environment, opportunities for development, and competitive compensation and benefits.

Idaho Power regularly

conducts employee engagement surveys to seek feedback from its employees on a variety of topics, including safety reporting, support for development, understanding of the company’s initiatives, communication, being treated with respect, and feeling valued.

To further its objectives, Idaho Power’s human capital programs are designed to attract, retain, and develop high quality employees, without regard to race, color, religion, national origin, sex (including pregnancy), age, sexual orientation, gender identity, genetic information, veteran status, physical or mental disability, or marital status.

Idaho Power believes it maintains a good relationship with its employees due to a strong safety culture, a respectful and inclusive environment, opportunities for development, and competitive compensation and benefits.

Idaho Power regularly conducts employee engagement surveys to seek feedback from its employees on a variety of topics, including safety reporting, support for development, understanding of the company’s objectives, communication, being treated with respect, and feeling valued.

Idaho Power shares the survey results with employees, and senior management incorporates the results of the surveys in their action plans in order to respond to the feedback and improve employee relations.

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IDACORP had 7 part-time employee s, 4 of whom were employed by Idaho Power.

Of IDACORP's full-time employees, 53 percent h ave worked at the company for over 10 years as of the date of this report.

Of IDACORP's full-time employees, 52 percent have worked at the company for over 10 years as of the date of this report.

All IDACORP and Idaho Power employees work in the United States.

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Board and Board Committee Oversight :

IDACORP’s and Idaho Power’s boards of directors provide oversight for the companies’ human capital management.

The companies’ management updates the full board of directors and its committees regularly on safety metrics, total rewards for employees, benefit and pension programs, succession planning and training programs, and diversity, equity, and inclusion initiatives, among other things.

Each committee of the board of directors is delegated and takes on specific roles in this oversight.

The compensation and human resources committee is responsible for overseeing employee compensation, benefit plans, and general labor issues.

The audit committee is responsible for overseeing risk management, including compliance with the code of business conduct and physical security risks relating to employees.

The corporate governance and nominating committee is responsible for overseeing risks associated with governance and social issues associated with employees as part of its ESG risk oversight function.

The compensation and human resources committee is responsible for overseeing employee compensation, benefit plans, general labor issues, diversity, equity, inclusion, and safety issues.

The audit committee is responsible for overseeing risk management, including compliance with the code of business conduct, physical security risks relating to employees, and environmental compliance.

The corporate governance and nominating committee is responsible for overseeing risks associated with governance, lobbying and government relations, political contributions, and social issues associated with employees as part of its ESG risk oversight function.

Idaho Power is committed to the safety of its employees, customers, and the communities it serves.

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Idaho Power consistently ranks in the top 30 percent of all United States utilities in safety performance.

Reflective of Idaho Power's focus on safety, the company’s Occupational Health and Safety Administration (OSHA) recordable injury rate was below the industry average rate during the last four years, and its safety metrics in 2021 were the strongest in the company’s history.

In 2021, for example, Idaho Power's severity rate for injuries, measured by the number of lost workdays per 100 employees, decreased 84 percent, and its lost-time injury rate, measured by the number of lost time injuries divided by the number of OSHA-recordable injuries, decreased 79 percent, compared to its previous five-year averages for those rates.

In recognition of Idaho Power's safety culture and the dedication of its employees, the EEI presented the inaugural Thomas F.

Reflective of Idaho Power's focus on safety, the company’s Occupational Health and Safety Administration (OSHA) recordable injury rate was below the industry average rate from 2018 through 2021, and its safety metrics in 2021 were the strongest in the company’s history.

In 2022, Idaho Power saw increases in its OSHA recordable injury rate, severity rate, and lost-time injury rate, which returned those rates closer to Idaho Power's 10-year average for each respective rate.

In response to the increase, Idaho Power held a series of contractor and leader safety summits in 2022 to align on expectations and ensure safety continues to be at the forefront of all its work.

In recognition of Idaho Power's safety culture and the dedication of its employees, the Edison Electric Institute (EEI) presented the inaugural Thomas F.

Farrell, II Safety Leadership and Innovation Award in the Member Company Project category to Idaho Power in January 2022.

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and EEI senior leadership.

During the COVID-19 public health crisis, Idaho Power implemented significant changes that it determined were in the best interest of its employees, as well as the communities in which it operates, in addition to complying with government regulations.

While the nature of Idaho Power’s industry necessitated that much of its field-based workforce continue to operate in the field, Idaho Power implemented numerous measures to help ensure the safety of those employees, and the public, amidst the public health crisis.

Most of Idaho Power’s non-field employees worked remotely beginning in March 2020 and many remain working remotely or under a hybrid, in-office and remote schedule as of the date of this report.

For more information on Idaho Power's response to the COVID-19 public health crisis, see the “Executive Overview” section of Part II, Item 7 – MD&A.

Total Rewards :

Idaho Power provides its employees with competitive pay and benefits, based in large part on salary studies and market data.

Idaho Power utilizes a structured compensation schedule and regularly conducts compensation analyses that helps mitigate the potential for gender, race, or ethicity-based disparities in compensation.

Idaho Power utilizes a structured compensation schedule and regularly conducts compensation analyses that helps mitigate the potential for gender, race, or ethnicity-based disparities in compensation.

Beyond base salaries and incentive compensation, benefits for all full-time employees include a 401k plan with company matching contributions, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, parental leave, employee assistance programs, and tuition assistance.

Currently after five years of employment, a full-time employee vests in Idaho Power’s defined benefit pension plan.

Idaho Power also ties annual employee incentive compensation to metrics based on the categories of earnings, power system reliability, and customer satisfaction reflective of broad stakeholder interests and each employee's contribution.

Idaho Power delivers a variety of training opportunities and provides rotational assignment and continuous learning and development opportunities to all employees without regard to race, color, religion, national origin, sex (including pregnancy), age, sexual orientation, gender identity, genetic information, veteran status, physical or mental disability, or marital status.

After five years of employment, a full-time employee vests in Idaho Power’s defined benefit pension plan.

Idaho Power also ties annual employee incentive compensation to metrics based on the categories

of earnings, power system reliability, and customer satisfaction reflective of broad stakeholder interests and each employee's contribution.

Idaho Power delivers a variety of training opportunities and provides rotational assignment and continuous learning and development opportunities to all employees.

Idaho Power's talent development programs, overseen by a talent development team in the Human Resources department, are designed to help employees achieve their career goals, build management skills, and lead their organizations.

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Idaho Power matches a portion of employee donations, which supplements the company’s separate charitable contributions.

Unity - Diversity, Equity, and Inclusion:

Diversity, Equity, and Inclusion:

One of Idaho Power’s core values as a company is “respect for all.” IDACORP’s and Idaho Power’s Code of Business Conduct, available publicly on IDACORP’s website, states Idaho Power's position that employees deserve a workplace where they can be treated in a professional and respectful manner, and each of the company's employees has the responsibility to create and maintain such an environment.

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As of December 31, 2022, 44 percent of Idaho Power’s senior management were women, 21 percent of its officers were women, and 36 percent of its board of directors were women.

I daho Power also has programs in place to encourage STEM participation, training to minimize bias and ensure a respectful and inclusive workplace, with a mindset of unity, community outreach to underserved communities, and partnerships with multiple diversity-focused organizations.

Idaho Power also has programs in place to encourage STEM participation, training to minimize bias and ensure a respectful and inclusive workplace, with a mindset of unity, community outreach to underserved communities, and partnerships with multiple diversity-focused organizations.

IDACORP FINANCIAL SERVICES, INC.

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In 2022 and 2021, IFS received distributions related to fully-amortized real estate tax credit investments that reduced IDACORP's income tax expense by $0.8 million and $1.0 million, respectively.

In 2020, IFS received no distributions related to fully-amortized real estate tax credit investments.

In 2020, IFS received nominal distributions related to fully-amortized real estate tax credit investments.

IDA-WEST ENERGY COMPANY

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All nine projects are “qualifying facilities” under PURPA.

Idaho Power purchased all of the power generated by Ida-West’s four Idaho hydropower projects at a cost of approximately $8 million in 2021 and $9 million in both 2020 and 2019.

Idaho Power purchased all of the power generated by Ida-West’s four Idaho hydropower projects at a cost of approximately $8 million in both 2022 and 2021 and $9 million in 2020.

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

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• Regional Manager for t he Southeast Region of Idaho Power Company, January 2018 - October 2019

• Transmission & Distribution Projects Senior Manager of Idaho Power Company, January 2015 - December 2017

• Senior Vice President and Chief Financial Officer of IDACORP, Inc.

and Idaho Power Company, March 2022 - present

• Senior Vice President and General Counsel of IDACORP, Inc.

and Idaho Power Company, February 2017 - present

• Vice President and General Counsel of IDACORP, Inc.

and Idaho Power Company, April 2016 - February 2017

and Idaho Power Company, February 2017 - March 2022

MITCH COLBURN, 39

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• Senior Manager, Transmission & Distribution Strategic Projects of Idaho Power Company, April 2017 - January 2018

• Engineering Leader, 500 kV and Joint Projects, Idaho Power Company, January 2015 – April 2017

• Vice President of Human Resources of Idaho Power Company, October 2019 - present

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• Regional Manager of Southern Region of Idaho Power Company, May 2014 - February 2018

• Senior Vice President and Chief Financial Officer of IDACORP, Inc.

HARRINGTON, 62

• Vice President, General Counsel, and Corporate Secretary of IDACORP, Inc.

and Idaho Power Company, March 2022 - present

• Senior Vice President, Chief Financial Officer and Treasurer of IDACORP, Inc.

and Idaho Power Company, May 2014 - March 2020

• Corporate Secretary of IDACORP, Inc.

and Idaho Power Company, March 2007 - March 2022

• Senior Vice President of Public Affairs of IDACORP, Inc.

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• Vice President of Customer Operations and Business Development of Idaho Power Company, March 2017 - October 2019

• General Manager of Customer Operations, Engineering and Construction, January 2014 - February 2017

*As previously reported to the SEC on Form 8-K on November 19, 2021, Mr.

Buckham will succeed Mr.

Keen as Chief Financial Officer of IDACORP, Inc.

and Idaho Power, and Patrick A.

Harrington will succeed Mr.

Buckham as General Counsel of IDACORP, Inc.

and Idaho Power, effective March 1, 2022.

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 1. Business