What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2023-02-16 compared with 2022-02-17 · 220 added, 229 removed, 1679 unchanged (21% of the section changed)

86 unchanged sentences

Cash and cash equivalents $ 177,577 $ 215,243

Short-term investments — 25,000

Customer (net of allowance of $ 5,034 and $ 4,499 , respectively)

50 unchanged sentences

Common stock, no par value ( 120,000 shares authorized;

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

50,562 and 50,516 shares issued, respectively)

882,189 874,896

23 unchanged sentences

Allowance for equity funds used during construction ( 37,285 ) ( 31,537 ) ( 29,551 )

Other adjustments to net income, net 8,929 10,457 8,040

Accounts receivable ( 6,697 ) ( 374 ) ( 5,996 )

Accounts payable and other accrued liabilities 17,700 ( 356 ) ( 9,526 )

Other non-cash adjustments to net income, net 14,892 8,929 10,457

Accounts receivable and unbilled revenues ( 81,545 ) ( 9,434 ) ( 7,630 )

Prepayments ( 2,156 ) ( 6,581 ) ( 5,377 )

Materials, supplies, and fuel stock ( 11,626 ) 991 17,543

Accounts and wages payable 112,602 17,700 ( 356 )

Taxes accrued/receivable ( 4,628 ) ( 17,885 ) 8,950

Other current assets ( 8,327 ) 4,910 ( 8,820 )

Other current liabilities 3,102 7,996 ( 799 )

Other assets ( 10,764 ) ( 5,546 ) ( 4,375 )

Other liabilities 3,358 2,034 555

Other assets and liabilities 22,951 ( 4,304 ) 4,484

Net cash provided by operating activities 351,285 363,264 388,131

5 unchanged sentences

Purchase of equity securities ( 45,572 ) ( 17,186 ) ( 33,382 )

Purchases of held-to-maturity securities ( 31,224 ) — —

Proceeds from sale of equity securities 63,857 11,328 25,795

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

Maturities of short-term investments 25,000 50,000 —

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

Other 4,875 2,037 6,335

8 unchanged sentences

Debt issuance costs and other ( 926 ) ( 334 ) ( 3,636 )

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

Net cash provided by (used in) financing activities 35,316 ( 149,484 ) 16,989

Net (decrease) increase in cash and cash equivalents ( 37,666 ) ( 59,873 ) 57,862

34 unchanged sentences

Issued — — 1,920

Acquired — — ( 4,160 )

Balance at end of year — — —

128 unchanged sentences

Allowance for equity funds used during construction ( 37,285 ) ( 31,537 ) ( 29,551 )

Other adjustments to net income, net 346 3,041 ( 748 )

Accounts receivable ( 5,607 ) ( 2,220 ) ( 4,724 )

Accounts payable 17,690 ( 292 ) ( 9,463 )

Other non-cash adjustments to net income, net 4,493 346 3,041

Accounts receivable and unbilled revenues ( 81,163 ) ( 8,345 ) ( 9,476 )

Prepayments ( 2,153 ) ( 6,589 ) ( 5,368 )

Materials, supplies, and fuel stock ( 11,626 ) 991 17,543

Accounts and wages payable 166,635 17,690 ( 292 )

Taxes accrued/receivable ( 2,995 ) ( 15,899 ) 12,685

Other current assets ( 8,336 ) 4,919 ( 8,821 )

Other current liabilities 3,133 8,072 ( 870 )

Other assets ( 10,809 ) ( 5,588 ) ( 4,280 )

Other liabilities 3,443 2,116 584

Other assets and liabilities 22,876 ( 4,233 ) 4,600

Net cash provided by operating activities 380,282 322,706 352,988

4 unchanged sentences

Purchase of equity securities ( 43,953 ) ( 15,823 ) ( 33,382 )

Purchases of held-to-maturity securities ( 31,224 ) — —

Proceeds from the sale of equity securities 63,857 11,328 25,795

8 unchanged sentences

Other ( 739 ) ( 238 ) ( 3,579 )

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 )

Net cash provided by (used in) financing activities 78,454 ( 146,314 ) 21,615

Net increase (decrease) in cash and cash equivalents 48,858 ( 105,529 ) 66,654

Cash and cash equivalents at beginning of the year 60,075 165,604 98,950

29 unchanged sentences

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.

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

4 unchanged sentences

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.

At December 31, 2022, Marysville had approximately $ 14.9 million of assets, primarily a hydropower plant, which are eliminated in consolidation.

EEC has borrowed amounts from Ida-West to fund a portion of its required capital contributions to Marysville.

1 unchanged sentence

Ida-West is identified as the primary beneficiary because the combination of its ownership interest in the joint venture with the intercompany note and the EEC note result in Ida-West's ability to control the activities of the joint venture.

Creditors of Marysville have no recourse to the general credit of IDACORP and there are no other arrangements that could require IDACORP to provide financial support to Marysville or expose IDACORP to losses.

The BCC joint venture is also a VIE, but because the power to direct the activities that most significantly impact the economic performance of BCC is shared with the joint venture partner, Idaho Power is not the primary beneficiary.

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."

The carrying value of Idaho Power's investment in BCC was $ 14.2 million at December 31, 2022, and Idaho Power's maximum exposure to loss is the carrying value, any additional future contributions to BCC, and a $ 48.2 million guarantee for mine reclamation costs.

BCC has a reclamation trust fund set aside specifically for the purpose of paying the reclamation costs, the market value of which exceeded the total estimated reclamation obligation at December 31, 2022.

The guarantee, reclamation obligation, and reclamation trust are discussed further in Note 9 - "Commitments."

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

39 unchanged sentences

Customer accounts receivable balances that remain outstanding after reasonable collection efforts are written off.

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.

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 2021, 2020, and 2019.

Annual depreciation provisions as a percent of average depreciable utility plant in service approximated 2.7 percent in 2022, and 2.9 percent in 2021 and 2020.

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.

9 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 2021 and 2020, and 7.6 percent for 2019.

Idaho Power’s weighted-average monthly AFUDC rate was 7.4 percent for 2022, and 7.5 percent for 2021 and 2020.

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

IDACORP and Idaho Power changed the presentation of their respective consolidated statements of cash flows for the year ended December 31, 2022, from one acceptable presentation to another, to increase transparency.

Prior year respective consolidated statements of cash flows have been reclassified to conform with current year presentation.

The reclassification includes certain lines of changes in assets and liabilities, presented in operating activities, and does not affect prior year net cash provided by operating activities in the respective consolidated statements of cash flows.

New and Recently Adopted Accounting Pronouncements

57 unchanged sentences

Regulatory assets 739,689 721,276 739,689 721,276

Power cost adjustments 33,116 9,015 33,116 9,015

Partnership investments 3,355 2,824 — —

16 unchanged sentences

Internal Revenue Service (IRS) Compliance Assurance Process (CAP) program for its 2009 tax year and has remained in the CAP program for all subsequent years.

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

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

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

IDACORP was in the bridge phase of CAP for both the 2020 and 2021 tax years.

The IRS moved IDACORP from the bridge phase of CAP to the maintenance phase for the 2022 tax year.

Inflation Reduction Act

On August 16, 2022, the Inflation Reduction Act of 2022 (the 2022 IRA) was signed into law.

The 2022 IRA provides for, among other things, numerous renewable energy tax credits, for example:

extension of the current investment (ITC) and production (PTC) tax credits, a new ITC for standalone energy storage, application of the PTC to solar, transition to a technology-neutral ITC and PTC after 2024 and created a transferability option that allows credits to be sold to an unrelated taxpayer.

The 2022 IRA modifies the calculation of most of the energy tax credits by introducing the concept of a “base credit” (e.g., 6 percent ITC) and a “bonus credit” (e.g., an additional 24 percent ITC) if certain wage and apprenticeship requirements are met in the construction and ongoing maintenance of the renewable energy facilities.

Additionally, the 2022 IRA also established a 15 percent alternative minimum tax for C-corporations with an average financial statement income of more than $1 billion for the previous three taxable years.

IDACORP and Idaho Power are not subject to the alternative minimum tax.

REGULATORY MATTERS

25 unchanged sentences

2023-2028 90,747 — 90,747 97,852

Jim Bridger plant settlement (6)

2023-2030 76,392 4,139 80,531 —

Asset retirement obligations (7)

15 unchanged sentences

159,001 48,527 207,528 187,717

Power supply costs (6)

Energy efficiency program costs (5)

Settlement agreement sharing mechanism (6)

12 unchanged sentences

Deferred costs are amortized into expense as the amounts are provided for in Idaho retail revenues.

(5) The energy efficiency asset includes both the Idaho and Oregon jurisdiction balances at December 31, 2021 and 2020.

(5) The energy efficiency asset and liability represent the separate Idaho and Oregon jurisdiction balances at December 31, 2022.

(6) This item is discussed in more detail in this Note 3 - "Regulatory Matters."

3 unchanged sentences

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.

10 unchanged sentences

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.

The latter component also includes a balancing mechanism so that, over time, the actual collection or refund of authorized true-up dollars matches the amounts authorized.

The PCA mechanism also includes:

and (b) a balancing component that trues up the difference between the previous year’s actual net power supply costs and the costs collected in the previous year's forecast component.

The latter component ensures that, over time, the actual collection or refund of net power supply costs matches the amounts authorized.

The PCA mechanism includes:

• a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers ( 95 percent) and Idaho Power ( 5 percent), with the exceptions of expenses associated with PURPA power purchases and demand response incentive payments, which are allocated 100 percent to customers;

• 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.

• a sales-based adjustment intended to ensure that power supply expense recovery resulting solely from sales volume 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, 2022 $ 94.9 The $94.9 million increase in PCA rates reflects a forecasted reduction in low-cost hydroelectric generation as well as higher costs associated with market energy prices and natural gas prices.

The rate also reflects $0.6 million of 2021 earnings shared with customers under the May 2018 Idaho Tax Reform Settlement Stipulation described below.

June 1, 2021 $ 39.1 The net increase in PCA rates 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 through 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 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:

4 unchanged sentences

The filing calculates the deviation between actual net power supply expenses incurred for the preceding calendar year and the net power supply expenses recovered through the APCU for the same period.

Oregon jurisdiction power supply cost changes under the APCU and PCAM during each of 2021, 2020, and 2019 did not have a material impact on the companies' financial statements.

Actual 2022 Oregon-jurisdiction power supply costs exceeded the amount recovered through the APCU, resulting in a $ 1.1 million deferral of costs for future recovery.

Oregon jurisdiction power supply cost changes during 2021 and 2020 did not have a material impact on the companies' financial statements.

Notable Idaho Base Rate Adjustments

8 unchanged sentences

The IPUC issued a March 2014 order approving Idaho Power's request for an increase in the normalized or "base level" net power supply expense to be used to update base rates and in the determination of the PCA rate that became effective June 1, 2014.

October 2014 Idaho Earnings Support and Sharing Settlement Stipulation:

In October 2014, the IPUC issued an order approving an extension, with modifications, of the terms of a December 2011 Idaho settlement stipulation for the period from 2015 through 2019, or until the terms are otherwise modified or terminated by order of the IPUC or the full $ 45 million of additional accumulated deferred investment tax credits (ADITC) contemplated by the settlement stipulation has been amortized (October 2014 Idaho Earnings Support and Sharing Settlement Stipulation).

The provisions of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation are described in the table below.

May 2018 Idaho Tax Reform Settlement Stipulation:

3 unchanged sentences

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 regulatory asset recoverable from Idaho customers.

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.

October 2014 Idaho Earnings Support and Sharing Settlement Stipulation

(Effective through December 31, 2019)

May 2018 Idaho Tax Reform Settlement Stipulation

(Effective January 1, 2020, with no defined end date)

If Idaho Power's actual annual Idaho ROE in any year is less than 9.5 percent, then Idaho Power may record additional ADITC amortization up to $ 25 million to help achieve a 9.5 percent Idaho ROE for that year, and may record additional ADITC amortization up to a total of $ 45 million over the 2015 through 2019 period.

If the $45 million of ADITC are completely amortized, the revenue sharing provisions below would no longer be applicable.

If Idaho Power's actual annual Idaho ROE in any year is less than 9.4 percent, then Idaho Power may amortize up to $ 25 million of additional ADITC to help achieve a 9.4 percent Idaho ROE for that year, so long as the cumulative amount of ADITC used does not exceed $ 45 million (Idaho Power will have available and may continue to use any unused portion of the $45 million of additional ADITC from the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation);

however, Idaho Power may seek approval from the IPUC to replenish the total amount of ADITC it is permitted to amortize.

If there are no remaining amounts of ADITC authorized to be amortized, the revenue sharing provisions below would not be applicable until ADITC is replenished.

If Idaho Power's annual Idaho ROE in any year exceeds 10.0 percent, the amount of earnings exceeding a 10.0 percent Idaho ROE and up to and including a 10.5 percent Idaho ROE will be allocated 75 percent to Idaho Power's Idaho customers as a rate reduction to be effective at the time of the subsequent year's PCA, and 25 percent to Idaho Power.

If Idaho Power's annual Idaho ROE in any year exceeds 10.0 percent, the amount of earnings exceeding a 10.0 percent Idaho ROE and up to and including a 10.5 percent Idaho ROE will be allocated 80 percent to Idaho Power's Idaho customers as a rate reduction to be effective at the time of the subsequent year's PCA, and 20 percent to Idaho Power.

If Idaho Power's annual Idaho ROE in any year exceeds 10.5 percent, the amount of earnings exceeding a 10.5 percent Idaho ROE will be allocated 50 percent to Idaho Power's Idaho customers as a rate reduction to be effective at the time of the subsequent year's PCA, 25 percent to Idaho Power's Idaho customers in the form of a reduction to the pension regulatory asset balancing account (to reduce the amount to be collected in the future from Idaho customers), and 25 percent to Idaho Power.

The May 2018 Idaho Tax Reform Settlement Stipulation also provided for the indefinite extension, with modifications, of a previous settlement stipulation beyond its termination date of December 31, 2019.

The May 2018 settlement stipulation provides Idaho Power the ability to earn a minimum Idaho-Jurisdiction return on year-end equity (Idaho ROE) of 9.4 percent by amortizing up to $ 25 million of additional ADITC in any calendar year, so long as the cumulative amount of additional accumulated deferred investment tax credits (ADITC) used does not exceed $ 45 million;

however, Idaho Power may seek approval from the IPUC to replenish the total amount of additional ADITC it is permitted to amortize and if there are no remaining amounts of additional ADITC authorized to be amortized, the remainder of the revenue sharing provisions below would not be applicable until additional ADITC is replenished.

If Idaho Power’s annual Idaho ROE in any year exceeds 10.0 percent, the amount of earnings exceeding 10.0 percent and up to and including 10.5 percent will be allocated 80 percent to Idaho Power’s Idaho customers as a rate reduction to be effective at the time of the subsequent year’s PCA, and 20 percent to Idaho Power.

If Idaho Power’s annual Idaho ROE in any year exceeds 10.5 percent, the amount of earnings exceeding a 10.5 percent Idaho ROE will be allocated 55 percent to Idaho Power’s Idaho customers as a rate reduction to be effective at the time of the subsequent year’s PCA, 25 percent to Idaho Power’s Idaho customers in the form of a reduction to the pension regulatory asset balancing account (to reduce the amount to be collected in the future from Idaho customers) and 20 percent to Idaho Power.

In the event the IPUC approves a change to Idaho Power's allowed annual Idaho ROE as part of a general rate case proceeding before December 31, 2019, the Idaho ROE thresholds will be adjusted on a prospective basis as follows:

(a) the Idaho ROE under which Idaho Power will be permitted to amortize an additional amount of ADITC will be set at 95 percent of the newly authorized Idaho ROE, (b) sharing with customers on an 75 percent basis as a customer rate reduction will begin at the newly authorized Idaho ROE, and (c) sharing with customers on a 75 percent basis but allocated 50 percent to a rate reduction, and 25 percent to a pension expense deferral regulatory asset, will begin at 105 percent of the newly authorized Idaho ROE.

In the event the IPUC approves a change to Idaho Power's allowed annual Idaho ROE as part of a general rate case proceeding effective on or after January 1, 2020, the Idaho ROE thresholds will be adjusted on a prospective basis as follows:

1 unchanged sentence

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 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.

In 2022, Idaho Power recorded no provision against current revenue for sharing with customers or additional amortization of ADITC, as its full-year Idaho ROE was between 9.4 percent and 10.0 percent.

In 2021, Idaho Power recorded a $ 0.6 million provision against current revenue for sharing with customers, as its Idaho ROE exceeded 10.0 percent.

Accordingly, at December 31, 2022, the full $ 45 million of additional ADITC remained available for future use under the terms of the May 2018 Idaho Tax Reform Settlement Stipulation.

Valmy Base Rate Adjustment Settlement Stipulations:

In May 2017, the IPUC approved a settlement stipulation allowing accelerated depreciation and cost recovery for Idaho Power’s jointly-owned North Valmy coal-fired power plant.

The settlement stipulation provides for an increase in Idaho jurisdictional revenues of $ 13.3 million per year, and (1) levelized collections and associated cost recovery through December 2028, (2) accelerated depreciation on unit 1 through 2019 and unit 2 through 2025, and (3) Idaho Power to use prudent and commercially reasonable efforts to end its participation in the operation of unit 1 by the end of 2019 and unit 2 no later than the end of 2025.

The costs intended to be recovered by the increased jurisdictional revenues include current investments as of May 31, 2017, in both units, forecasted unit 1 investments from 2017 through 2019, and forecasted decommissioning costs for unit 1 and unit 2, offset by forecasted operation and maintenance costs

The settlement stipulation also provides for the regulatory accrual or deferral of the difference between actual revenue requirements and levelized collections, and provides for the regulatory accrual or deferral of the difference between actual costs incurred (including accelerated depreciation expense on unit 1 through 2019 and unit 2 through 2025) compared with costs permitted to be recovered during the cost recovery period specified in the settlement stipulation (including depreciation expense through 2028).

Idaho Power has settlement stipulations in place in Idaho and Oregon related to the planned early retirement of both units of its jointly-owned North Valmy coal-fired power plant.

Idaho Power ceased coal-fired operations at unit 1 in 2019, as planned, and plans to cease coal-fired operations at unit 2 in 2025.

Both commissions have approved this plan.

The IPUC-approved settlement stipulation provides for (1) accelerated depreciation for the North Valmy plant to allow the coal-related plant assets to be fully depreciated and recovered by December 31, 2028, (2) Idaho Power to use prudent and commercially reasonable efforts to end its participation in coal-fired operations at North Valmy as described above, (3) a balancing account to track the incremental costs, benefits, and required regulatory accounting associated with ceasing participation in coal-fired operations at the North Valmy plant, and (4) increased customer rates related to the associated incremental annual levelized revenue requirement.

If actual costs incurred differ from forecasted amounts included in the settlement stipulation, collection or refund of any differences would be subject to regulatory approval.

In February 2019, Idaho Power reached an agreement with NV Energy that facilitates the planned end of Idaho Power's participation in coal-fired operations at units 1 and 2 of its jointly-owned North Valmy coal-fired power plant in 2019 and no later than 2025, respectively.

In May 2019, the IPUC issued an order approving the North Valmy plant agreement and allowing Idaho Power to recover through customer rates the $ 1.2 million incremental annual levelized revenue requirement associated with required North Valmy plant investments and other exit costs, effective June 1, 2019, through December 31, 2028.

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.

Jim Bridger Power Plant Rate Base Adjustment and Recovery:

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

The Bridger Order allows for regulatory accounting entries and establishes balancing accounts (recorded as regulatory assets or liabilities on Idaho Power’s and IDACORP’s consolidated balance sheets) to track differences between amounts recovered in rates and actual incremental costs and benefits associated with Idaho Power’s cessation of coal-fired operations at the Jim Bridger plant.

The incremental costs and benefits include the revenue requirement associated with the incremental Jim Bridger plant coal-related investments made from 2012 through the end of 2020, forecasted coal-related investments, and near-term decommissioning costs, offset by other operations and maintenance (O&M) cost savings.

The Bridger Order deemed all coal-related investments at the Jim Bridger plant from 2012 through 2020 to be prudent for recovery.

In the Bridger Order, the IPUC reduced Idaho Power's requested rate increase from 2.1 percent in its amended filing to 1.5 percent, a reduction from a requested $ 27.1 million to $ 18.8 million annually.

The Bridger Order provides that any uncollected amount resulting from the reduction in the rate increase will be recorded in the balancing account for future recovery with no carrying charge.

Idaho Power anticipates making future filings with the IPUC that may result in periodic adjustments to rates to true up variances between revenue collections and actual revenue requirement amounts.

The Bridger Order allows Idaho Power to earn a return on and recover through 2030 the net book value of coal-related assets at the Jim Bridger plant as of December 31, 2020, as well as forecasted coal-related investments, which resulted in Idaho Power's deferral of certain depreciation expense during the full year of 2022.

The deferral and impacts of the Bridger Order resulted in an increase in net income for 2022 of approximately $ 20 million.

Other Notable Idaho Regulatory Matters

4 unchanged sentences

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 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).

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

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

In 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.

In its 2021 application with the IPUC, Idaho Power projected spending approximately $ 47 million in incremental wildfire mitigation-related O&M and roughly $ 35 million in wildfire mitigation system-hardening incremental capital expenditures over a five-year period.

The IPUC authorized a deferral period of five years, or until rates go into effect from Idaho Power's next general rate case, whichever is first.

As of 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.

As of December 31, 2022, Idaho Power's deferral of Idaho-jurisdiction costs related to the WMP was $ 27.1 million.

During the 2021 and 2022 wildfire seasons, Idaho Power identified needs for expanded mitigation measures by gaining additional insights and knowledge on wildfires and wildfire mitigation activities.

In October 2022, Idaho Power filed an updated WMP with the IPUC along with an application requesting authorization to defer an estimated $ 16 million of newly identified incremental costs expected to be incurred between 2022 and 2025 associated with expanded wildfire mitigation efforts.

As of the date of this report, the application with the IPUC is pending.

Notable Oregon Regulatory Matters

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In May 2020, the OPUC issued an order to approve the quantification of $ 1.5 million in annualized Oregon jurisdictional benefits associated with federal and state income tax changes resulting from tax reform and adjusting customer rates to reflect this amount, effective June 1, 2020, until its next general rate case or other proceeding where the tax-related revenue requirement components are reflected in rates.

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, 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.

The OPUC has also approved settlement stipulations that provide for the accelerated cost recovery of jointly-owned North Valmy unit 1 through 2019 and unit 2 through 2025.

The net rate impact of the Oregon settlement stipulations is immaterial.

Federal Regulatory Matters - Open Access Transmission Tariff Rates

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

Idaho Power is collecting $ 8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.

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Residential Customers :

Idaho Power’s energy sales to residential customers typically peak during the winter heating season and summer cooling season.

Idaho Power’s energy sales to residential customers typically peak during the summer cooling season and winter heating season.

Extreme temperatures increase sales to residential customers who use electricity for cooling and heating, compared with normal temperatures.

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Economic and demographic conditions can also affect residential customer demand;

strong job growth and population growth in Idaho Power’s service area have led to increasing customer growth rates in recent years.

strong job growth and population growth in Idaho Power’s service area have led to higher customer growth in recent years.

Residential demand is also impacted by energy efficiency initiatives.

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Economic conditions, including manufacturing activity levels, and energy efficiency initiatives also affect energy use of 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 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 :

Irrigation customers use electricity to operate irrigation pumps, primarily during the agricultural growing season.

The amount and timing of precipitation as well as temperature levels affect the timing and amounts of sales to irrigation customers, with increased precipitation generally resulting in decreased sales.

The amount and timing of precipitation as well as temperature levels affect the timing and amounts of sales to irrigation customers, with increased precipitation during the agricultural growing season generally resulting in decreased sales.

Provision for Sharing :

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 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.

Based on full-year 2022 Idaho ROE, Idaho Power recorded no provision against current revenues for sharing of earnings with customers for 2022.

Idaho Power recorded $ 0.6 million of sharing of earnings with customers during 2021 and no provision during 2020.

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.

Fewer energy efficiency projects were completed in 2021 and 2022 due mostly to impacts of the COVID-19 public health crisis and other economic conditions 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.

A liability balance indicates that Idaho Power has collected more than it has spent, and an asset balance indicates that Idaho Power has spent more than it has collected.

At December 31, 2021, Idaho Power's energy efficiency rider balances were a $ 6.9 million regulatory asset in the Idaho jurisdiction and a $ 0.7 million regulatory asset in the Oregon jurisdiction.

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.

At December 31, 2022, Idaho Power's energy efficiency rider balances were a $ 3.8 million regulatory asset in the Idaho jurisdiction and a $ 0.2 million regulatory liability in the Oregon jurisdiction.

Alternative Revenue Programs and Other Revenues

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4.99 % Series due 2032

5.50 % Series due 2033

70,000 70,000

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5.06 % Series due 2042

4.00 % Series due 2043

75,000 75,000

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116,300 116,300

Variable Rate Series 2000 due 2027 4,360 4,360

Variable Rate Series 2000 (redeemed in 2022) — 4,360

Total pollution control revenue bonds 166,100 170,460

American Falls bond guarantee 19,885 19,885

Floating Rate Term Loan Facility due 2024 150,000 —

American Falls Variable Rate bond guarantee due 2025 19,885 19,885

Unamortized premium/discount and issuance costs 10,160 10,295

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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, 2022, to $ 2.014 billion .

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

(2) At December 31, 2022 and 2021, the overall effective cost rate of Idaho Power's outstanding debt was 4.60 percent and 4.40 percent, respectively.

At December 31, 2022, 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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Long-Term Debt Issuances, Maturities, and Redemptions

In April 2020, Idaho Power issued $ 230.0 million in principal amount of 4.20 % first mortgage bonds, secured medium term notes, Series K, maturing March 1, 2048.

The bonds were issued at a reoffer yield of 3.422 percent, which resulted in a net premium of 13.0 percent and net proceeds to Idaho Power of $ 259.9 million.

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

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.

In accordance with the redemption provisions of the notes, the redemption included Idaho Power's payment of a make-whole premium to the holders of the redeemed notes in the aggregate amount of $ 3.3 million.

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

On its consolidated balance sheet as of December 31, 2022, Idaho Power classified the $ 75 million in principal amount of 2.50% first mortgage bonds, Series I, maturing on April 1, 2023, as long-term debt based upon Idaho Power's intent and ability to refinance the bonds on a long-term basis.

On December 22, 2022, Idaho Power entered into a Bond Purchase Agreement (Bond Purchase Agreement) with certain institutional purchasers relating to the sale by Idaho Power of $ 170 million of first mortgage bonds secured medium-term-term notes, Series N (Series N Notes), as described in more detail below.

At December 31, 2022, $ 48 million in principal amount of Series N Notes had been issued and was out standing.

On December 1, 2022, Idaho Power redeemed at par $ 4.36 million in principal amount of variable-rate pollution control revenue bonds due in 2027.

On March 4, 2022, Idaho Power entered into a floating rate term loan credit agreement (Term Loan Facility).

The Term Loan Facility is a two-year senior unsecured term loan facility.

It provided for the issuance of loans not to exceed the aggregate principal amount of $ 150 million with a maturity date of March 4, 2024.

The interest rates for the floating rate advances under the Term Loan Facility were based on the highest of (1) the prime commercial lending rate of the lender acting as administrative agent, (2) the federal funds rate, plus 0.5 percent, (3) Term Secured Overnight Financing Rate administered by the Federal Reserve Bank of New York (SOFR) (as defined in the Term Loan Facility) for a one-month tenor that is published by CME Group Benchmark Administration limited (or the successor administrator of such rate), plus 1 percent, and (4) zero percent.

The interest rates for SOFR Advances (as defined in the Term Loan Facility) were based on the Term SOFR rate for the borrower-selected period plus the Applicable Margin.

The “Applicable Margin” is based on Idaho Power's senior unsecured non-credit enhanced long-term indebtedness credit rating, as set forth on a schedule to the Term Loan Facility.

At December 31, 2022, $ 150 million in principal amount of one month term SOFR advances had been drawn and was outstanding on the Term Loan Facility.

Idaho Power First Mortgage Bonds

Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and Wyoming Public Service Commission (WPSC).

In April and May 2019, Idaho Power received orders from the IPUC, OPUC, and WPSC authorizing the company to issue and sell from time to time up to $ 500 million in aggregate principal amount of debt securities and first mortgage bonds, subject to conditions specified in the orders.

In May and June 2022, Idaho Power received orders from the IPUC, OPUC, and WPSC authorizing the company to issue and sell from time to time up to $ 1.2 billion in aggregate principal amount of debt securities and first mortgage bonds, subject to conditions specified in the orders.

Authority from the IPUC is effective through May 31, 2025, subject to extensions upon request to the IPUC.

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Treasury rates or (b) a maximum interest rate limit of 8.0 percent.

At December 31, 2022, $1.15 billion remains available for debt issuance under the regulatory orders, prior to the commitment to draw the remaining $122 million of Series N Notes in March 2023.

In May 2022, 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.

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In June 2022, Idaho Power entered into a selling agency agreement with six banks named in the agreement in

connection with the potential issuance and sale from time to time of up to $ 500 million aggregate principal amount of first

mortgage bonds, secured medium term notes, Series L (Series L Notes), under Idaho Power’s Indenture of Mortgage and Deed

of Trust, dated as of October 1, 1937, as amended and supplemented (Indenture).

Also in June 2020, Idaho Power

entered into the Forty-ninth Supplemental Indenture, dated effective as of June 5, 2020, to the Indenture (Forty-ninth

connection with the potential issuance and sale from time to time of up to $1.2 billion aggregate principal amount of first

mortgage bonds, secured medium term notes, Series M (Series M Notes), under Idaho Power’s Indenture.

Also in June 2022, Idaho Power entered into the Fiftieth Supplemental Indenture, dated effective as of June 30, 2022, to the Indenture (Fiftieth Supplemental Indenture).

The Fiftieth Supplemental Indenture provides for, among other items, the issuance of up to $1.2 billion in aggregate principal amount of Series M Notes pursuant to the Indenture.

In October 2022, Idaho Power entered into the Fifty-first Supplemental Indenture to increase the limit of the amount of first mortgage bonds at any one time outstanding to $ 3.5 billion as provided in the Indenture.

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.

In December 2022, Idaho Power entered into the Bond Purcha se Agreement with certain institutional purchasers, relating to the sale by Idaho Power of $ 170 million in aggregate principal amount of Series N Notes.

Also in December 2022, Idaho Power entered into the Fifty-second Supplemental Indenture, dated effective as of December 30, 2022, to the Indenture (Fifty-second

Supplemental Indenture).

The Forty-ninth Supplemental Indenture provides for, among other items, the issuance of up to

$ 500 million in aggregate principal amount of Series L Notes pursuant to the Indenture.

The Fifty-second Supplemental Indenture provides for, among other items, the issuance of Series N Notes pursuant to the Indenture.

The Series N Notes consist of:

• $ 23 million in aggregate principal amount of Idaho Power’s 4.99% first mortgage bonds due 2032, Series N Notes, Tranche 1 (Tranche 1 Bonds);

• $ 25 million in aggregate principal amount of Idaho Power’s 5.06% first mortgage bonds due 2042, Series N Notes, Tranche 2 (Tranche 2 Bonds);

• $ 60 million in aggregate principal amount of Idaho Power’s 5.06% first mortgage bonds due 2043, Series N Notes, Tranche 3 (Tranche 3 Bonds);

• $ 62 million in aggregate principal amount of Idaho Power’s 5.20% first mortgage bonds due 2053, Series N Notes, Tranche 4 (Tranche 4 Bonds).

The Tranche 1 Bonds and Tranche 2 Bonds were issued on December 22, 2022, and Idaho Power has a commitment to issue the Tranche 3 Bonds and Tranche 4 Bonds on March 8, 2023, each under the Indenture .

The mortgage of the Indenture secures all bonds issued under the Indenture equally and ratably, without preference, priority, or distinction.

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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.

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

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.

These amounts are further limited by the maximum amount of first mortgage bonds set forth in the Forty-ninth Supplemental Indenture.

As a result, the maximum amount of first mortgage bonds Idaho Power could issue as of December 31, 2021, was limited to approximately $ 534 million under the Indenture.

NOTES PAYABLE

Credit Facilities

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 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, 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.

As of December 31, 2022, the maximum amount of additional first mortgage bonds Idaho Power could issue, which excludes commitments to issue that have not already funded, is approximately $ 1.5 billion, though as of the date of this report the amount is limited to the $1.15 billion amount authorized by the IPUC, OPUC, and WPSC.

Separately, the Indenture also limits the amount of additional first mortgage bonds that Idaho Power may issue to the sum of (a) the principal amount of retired first mortgage bonds and (b) 60 percent of total unfunded property additions, as defined in the Indenture.

As of December 31, 2022, Idaho Power could issue approximately $ 2.3 billion of additional first mortgage bonds based on retired first mortgage bonds and total unfunded property additions.

IDACORP Common Stock

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2000 Long-Term Incentive and Compensation Plan, including 8,674 , 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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IDACORP has one share-based compensation plan — the 2000 Long-Term Incentive and Compensation Plan (LTICP).

The LTICP (for officers, key employees, and directors) permits the grant of stock options, restricted stock and restricted stock units (together, Restricted Stock), performance shares and performance-based units (together, Performance-Based Shares), and several other types of share-based awards.

The LTICP (for officers, key employees, and directors) permits the grant of stock options, restricted stock and restricted stock units, performance shares and performance-based units, and several other types of share-based awards.

At December 31, 2022, the maximum number of shares available under the LTICP was 350,763 .

Restricted Stock and Performance-Based Shares Awards

Restricted Stock awards have three -year vesting periods and entitle the recipients to dividends or dividend equivalents, as applicable, and voting rights, except that holders of restricted stock units do not have voting rights until the units are vested and settled in shares.

Restricted Stock Unit and Performance-Based Unit Awards

Restricted stock unit awards have three -year vesting periods, entitle the recipients to dividend equivalents, and units do not have voting rights until the units are vested and settled in shares.

Unvested awards are restricted as to disposition and subject to forfeiture under certain circumstances.

The fair value of these awards is based on the closing market price of common stock on the grant date and is charged to compensation expense over the vesting period, reduced for any forfeitures during the vesting period.

Performance-Based Shares awards have three-year vesting periods and entitle the recipients to voting rights, except that holders of performance-based units do not have voting rights until the units are vested and settled in shares.

Performance-based unit awards have three-year vesting periods and do not have voting rights until the units are vested and settled in shares.

Unvested awards are restricted as to disposition, subject to forfeiture under certain circumstances, and subject to the attainment of specific performance conditions over the three-year vesting period.

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Depending on the level of attainment of the performance conditions and the year issued, the final number of shares awarded can range from zero to 200 percent of the target award.

Dividends or dividend equivalents, as applicable, are accrued during the vesting period and paid out based on the final number of shares awarded.

Dividend equivalents are accrued during the vesting period and paid out based on the final number of shares awarded.

The grant-date fair value of the CEPS portion is based on the closing market value at the date of grant, reduced by the loss in time-value of the estimated future dividend payments.

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The fair value of this portion of the awards is charged to compensation expense over the requisite service period, provided the requisite service period is rendered, regardless of the level of TSR metric attained.

A summary of Restricted Stock and Performance-Based Shares award activity is presented below.

Idaho Power share amounts represent the portion of IDACORP amounts related to Idaho Power employees:

A summary of restricted stock units and performance-based units award activity is presented below.

Idaho Power unit amounts represent the portion of IDACORP amounts related to Idaho Power employees:

IDACORP Idaho Power

Shares/Units Weighted-Average

Units Weighted-Average

Fair Value Number of

Shares/Units Weighted-Average

Nonvested shares/units at January 1, 2021 157,035 $ 100.89 156,013 $ 100.90

Shares/units granted 96,345 87.76 95,821 87.76

Shares/units forfeited ( 2,210 ) 98.72 ( 2,210 ) 98.72

Shares/units vested ( 75,914 ) 87.24 ( 75,415 ) 87.24

Nonvested shares/units at December 31, 2021 175,256 $ 99.61 174,209 $ 99.61

Units Weighted-Average

Nonvested units at January 1, 2022 175,256 $ 99.61 174,209 $ 99.61

Units granted 88,512 100.76 87,685 100.76

Units forfeited ( 8,791 ) 97.35 ( 8,144 ) 97.29

Units vested ( 66,509 ) 100.59 ( 65,934 ) 100.59

Nonvested units at December 31, 2022 188,468 $ 99.92 187,816 $ 99.91

The total fair value of shares vested was $ 6.9 million in 2022, $ 6.7 million in 2021, and $ 10.5 million in 2020.

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Idaho Power's expenses associated with PURPA-related projects were approximately $ 189 million in 2022, $ 200 million in 2021, and $ 194 million in 2020.

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.

In January 2023, Idaho Power entered into an additional new non-PURPA-qualifying solar facility power purchase contract, subject to regulatory approval, which increased Idaho Power's contractual purchase obligations by approximately $ 228 million over the 25-year term of the contract.

The facility is scheduled to be online in June 2024.

As of December 31, 2022, Idaho Power had a remaining $ 95 million commitment related to two contracts to acquire and own battery storage systems expected to be in service in 2023.

Also, in January 2023, Idaho Power entered into a commitment to acquire and own a 60 MW battery storage system for $ 129 million, due upon its expected completion in 2024.

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

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Easements and other payments 2,075 2,119 2,163 2,209 2,255 12,005

Maintenance and service agreements (1)

Maintenance, service, and materials agreements (1)

174,619 11,931 9,652 7,623 11,660 38,729

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17,402 15,619 15,562 15,839 15,348 75,272

(1) Approximately $ 28 million, $ 18 million, and $ 143 million of the obligations included in joint-operating agreement payments, maintenance and service agreements, and FERC and other industry-related fees, respectively, have contracts that do not specify terms related to expiration.

(1) Approximately $ 34 million, $ 18 million, and $ 152 million of the obligations included in joint-operating agreement payments, maintenance, service, and materials agreements, and FERC and other industry-related fees, respectively, have contracts that do not specify terms related to expiration.

As these contracts are presumed to continue indefinitely, ten years of information, estimated based on current contract terms, has been included in the table for presentation purposes.

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 IDACORP, long-term purchase commitments of $ 2 million are mostly comprised of other long-term liabilities at Ida-West.

At December 31, 2022, IDACORP had a commitment to invest an additional $ 7.5 million into a private market investment fund, which is expected to occur over the next few years.

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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.

This guarantee, which is renewed annually with the Wyoming Department of Environmental Quality, was $ 48.2 million at December 31, 2022, representing IERCo's one-third share of BCC's total reclamation obligation of $ 144.7 million.

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

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Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated.

IDACORP and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities.

and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities.

As of December 31, 2022, management believes the likelihood is remote that IDACORP or Idaho Power would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnification obligations.

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Actuarial (gain) loss ( 438,297 ) ( 35,833 ) ( 32,009 ) 33

Plan amendment — — — 130

Benefits paid ( 46,159 ) ( 46,551 ) ( 6,109 ) ( 6,182 )

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The actuarial gains reflected in the benefit obligations for the pension and SMSP plans in 2022 are due primarily to increases in the assumed discount rates of both plans from December 31, 2021, to December 31, 2022.

The actuarial losses affecting the

benefit obligations for the pension and SMSP plans in 2020 are due primarily to decreases in the assumed discount rates 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.

For more information on discount rates, see “Plan Assumptions” below in this Note 11.

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(2) Of total net periodic pension cost recognized for financial reporting $ 19.0 million, $ 17.8 million, and $ 15.9 million respectively, was recognized in "Other operations and maintenance" and $ 9.2 million, and $ 10.5 million, and $ 11.9 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, 2022, 2021, and 2020.

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

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

Pension Plan SMSP

2022 2021 2020 2022 2021 2020

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

Actuarial (loss) gain during the year $ 227,372 $ 91,156 $ ( 107,399 ) $ 32,009 $ ( 33 ) $ ( 13,420 )

Plan amendment service cost — — — — — ( 130 )

Reclassification adjustments for:

Amortization of net loss 23,796 17,325 13,564 4,205 3,734 2,533

Amortization of net (gain) loss 12,273 23,796 17,325 4,229 4,205 3,734

Amortization of prior service cost 6 6 6 279 296 290

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In 2022, 2021, and 2020, 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 and Idaho Power have no estimated minimum required

contributions to the pension plan for 2022.

As of the date of this report, IDACORP and Idaho Power have no estimated minimum required contributions to the pension plan for 2023.

Depending on market conditions and cash flow considerations in 2023, Idaho Power could contribute up to $ 40 million to the pension plan during 2023 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.

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Interest cost 2,112 2,059

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

Actuarial gain ( 21,845 ) ( 5,805 )

Benefits paid (1)

( 4,379 ) ( 4,194 )

Plan amendments 8,065 —

Benefit obligation at December 31 59,099 74,075

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

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

Net gain $ ( 20,896 ) $ ( 8,020 )

Prior service cost 7,849 80

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Immediate recognition of loss from temporary deviation (1)

Amortization of net loss ( 31 ) — —

Amortization of prior service cost 295 47 47

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Actuarial gain (loss) during the year $ 12,908 $ 9,718 $ ( 6,515 )

Prior service cost arising during the year ( 8,065 ) — —

Reclassification adjustments for:

Amortization of net loss ( 31 ) — —

Immediate recognition of loss from temporary deviation (1)

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

The assumed health care cost trend rate used to measure the expected cost of health benefits covered by the postretirement plan was 6.3 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 health care cost trend rate used to measure the expected cost of health benefits covered by the postretirement plan was 5.8 percent in 2022 and is assumed to increase to 6.7 percent in 2023, 7.1 percent in 2024, decrease to 6.5 percent in 2025,

and to gradually decrease to 3.8 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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Rate-of-return projections for plan assets are based on historical risk/return relationships among asset classes.

The primary measure is the historical risk premium each asset class has delivered versus the yield on the Moody's AA Corporate Bond Index.

The primary measure is the historical risk premium each asset class has delivered versus the yield on the Moody's Investors Service (Moody's) AA Corporate Bond Index.

This historical risk premium is then added to the current yield on the Moody's AA Corporate Bond Index.

Additional analysis is performed to measure the expected range of returns, as well as worst-case and best-case scenarios.

Based on the current low interest rate environment, current rate-of-return expectations are lower than the nominal returns generated over the past 30 years when interest rates were generally much higher.

Based on the current interest rate environment, current rate-of-return expectations are lower than the nominal returns generated over the past 30 years when interest rates were generally higher.

Idaho Power’s asset modeling process also utilizes historical market returns to measure the portfolio’s exposure to a “worst-case” market scenario, to determine how much performance could vary from the expected “average” performance over various time periods.

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For the years ended December 31, 2022 and 2021, there were no material transfers into or out of Levels 1, 2, or 3.

Fair Value Measurement of Level 2 Plan assets and Plan assets measured at NAV:

Fair Value Measurement of Level 2 Plan assets and Plan assets measured at net asset value(NAV):

Level 2 Bonds :

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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, 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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The guidance relating to accounting for AROs requires that legal obligations associated with the retirement of property, plant, and equipment be recognized as a liability at fair value when incurred and when a reasonable estimate of the fair value of the liability can be made.

Under the guidance, when a liability is initially recorded, the entity increases the carrying amount of the related long-lived asset to reflect the future retirement cost.

Under the guidance, when a liability is initially recorded, the entity increases the carrying amount of the

related long-lived asset to reflect the future retirement cost.

Over time, the liability is accreted to its estimated settlement value and paid, and the capitalized cost is depreciated over the useful life of the related asset.

If, at the end of the asset’s life, the recorded liability differs from the actual obligations paid, a gain or loss would be recognized.

As a rate-regulated entity, Idaho Power records regulatory assets or liabilities instead of accretion, depreciation, and gains or losses, as approved by the IPUC.

As a rate-regulated entity, Idaho Power defers accretion, depreciation, and gains or losses as regulatory assets, as approved by the IPUC, until such asset retirement obligation costs are included in customer rates for collection.

The regulatory assets recorded under this order do not earn a return on investment.

Accretion, depreciation, and gains or losses related to the Boardman generating facility have been exempted from such regulatory treatment as Idaho Power collected amounts related to the decommissioning of Boardman in rates.

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

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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Exchange traded short-term bond funds and cash equivalents 33,687 54,078

Held-to-Maturity securities 30,475 —

Executive deferred compensation plan investments 442 353

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Any unrealized gains or losses on equity securities are included in income.

Unrealized gains and losses on equity securities were immaterial at December 31, 2021 and December 31, 2020.

Unrealized gains and losses on equity securities were immaterial at December 31, 2022 and 2021.

The following table summarizes sales of equity securities (in thousands of dollars):

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Gross realized gains from sales — — —

Held-to-Maturity Securities

Idaho Power has a rabbi trust designated to provide funding for obligations related to the SMSP.

During 2022, the rabbi trust purchased $ 31.2 million of held-to-maturity investments in corporate fixed-income and asset-backed debt securities.

Substantially all of these debt securities mature between 2027 and 2037.

Held-to-maturity investments are carried at amortized cost, reflecting Idaho Power’s ability and intent to hold the securities to maturity.

Held-to-maturity investments are adjusted for the amortization or accretion of premiums or discounts, which are amortized or accreted over the life of the related held-to-maturity security.

Such amortization and accretion are included in the “Other income, net” line in the consolidated statements of income.

Due to increases in market interest rates in 2022, all held-to-maturity securities were in a gross unrealized holding loss position totaling $ 5.0 million at December 31, 2022.

Based on ongoing credit evaluations of these holdings, Idaho Power does not expect payment defaults or delinquencies and has not recorded an allowance for credit losses for these securities as of December 31, 2022.

IDACORP Financial Services Investments

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These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit).

These types of transactions are excluded from the offsetting presented in the derivative fair value and offsetting table below.

These types of transactions are excluded from the offsetting presented in the derivative fair value and offsetting table that follows.

The table below presents the gains and losses on derivatives not designated as hedging instruments for the years ended December 31, 2022, 2021, and 2020 (in thousands of dollars):

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See Note 16 - "Fair Value Measurements" for additional information concerning the determination of fair value for Idaho Power’s assets and liabilities from price risk management activities.

At December 31, 2022, Idaho Power did not have material credit risk exposure from financial instruments, including derivatives.

Idaho Power monitors credit risk exposure through reviews of counterparty credit quality, corporate-wide counterparty credit exposure, and corporate-wide counterparty concentration levels.

Idaho Power manages these risks by establishing credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary.

Idaho Power’s physical power contracts are commonly under WSPP, Inc.

agreements, physical gas contracts are usually under North American Energy Standards Board contracts, and financial transactions are usually under International Swaps and Derivatives Association, Inc.

These contracts typically contain adequate assurance clauses requiring collateralization if a counterparty has debt that is downgraded below investment grade by at least one rating agency.

Credit-Contingent Features

Certain of Idaho Power's derivative instruments contain provisions that require Idaho Power's unsecured debt to maintain an investment grade credit rating from Moody's and Standard & Poor's Ratings Services.

If Idaho Power's unsecured debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at December 31, 2022, was $ 15.7 million.

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, 2022, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional $ 66.1 million to cover open liability positions as well as completed transactions that have not yet been paid.

Derivative Instrument Summary

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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

(1) Current asset derivative amounts offset include $ 18.6 million of collateral payable at December 31, 2022.

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

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

The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at December 31, 2022 and 2021 (in thousands of units):

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Natural gas sales MMBtu 310 —

At December 31, 2021, Idaho Power did not have material credit risk exposure from financial instruments, including derivatives.

Idaho Power monitors credit risk exposure through reviews of counterparty credit quality, corporate-wide counterparty credit exposure, and corporate-wide counterparty concentration levels.

Idaho Power’s physical power contracts are commonly under WSPP, Inc.

These contracts typically contain adequate assurance clauses requiring collateralization if a counterparty has debt that is downgraded below investment grade by at least one rating agency.

Credit-Contingent Features

Certain of Idaho Power's derivative instruments contain provisions that require Idaho Power's unsecured debt to maintain an investment grade credit rating from Moody's Investors Service and Standard & Poor's Ratings Services.

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 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.

FAIR VALUE MEASUREMENTS

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There were no transfers between levels or material changes in valuation techniques or inputs during the years ended December 31, 2022 and 2021.

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.

Certain instruments have been valued using NAV as a practical expedient.

The NAV is generally not published and publicly available, nor are these instruments traded on an exchange.

Instruments valued using NAV as a practical expedient are included in the fair value disclosures below;

however, in accordance with the GAAP are not classified within the fair value hierarchy levels.

however, in accordance with GAAP are not classified within the fair value hierarchy levels.

The following table presents information about IDACORP’s and Idaho Power’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021 (in thousands of dollars):

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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.

Natural gas and diesel derivatives are valued using New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) pricing, adjusted for location basis, which are also quoted under NYMEX and ICE pricing.

Equity securities at Idaho Power consist of employee-directed investments related to an executive deferred compensation plan and actively traded money market and exchange traded funds related to the SMSP.

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$ 3,871 $ 3,871 $ 3,804 $ 3,804

Held-to-maturity securities (1)

30,475 25,452 — —

Long-term debt (including current portion) (1)

2,194,145 1,953,470 2,000,640 2,381,172

Held-to-maturity securities (1)

$ 30,475 $ 25,452 $ — $ —

Long-term debt (including current portion) (1)

2,194,145 1,953,470 2,000,640 2,381,172

(1) Notes receivable and long-term debt are categorized as Level 3 and Level 2, respectively, of the fair value hierarchy, as defined earlier in this Note 17 - "Fair Value Measurements ."

(1) Notes receivable are categorized as Level 3 and held-to-maturity securities and long-term debt are categorized as Level 2 of the fair value hierarchy, as defined earlier in this Note 16 - "Fair Value Measurements."

Notes receivable are related to Ida-West and are valued based on unobservable inputs, including forecasted cash flows, which are partially based on expected hydropower conditions.

Held-to-maturity securities are held in a rabbi trust and are generally valued using quoted prices, which may be in non-active markets.

Long-term debt is not traded on an exchange and is valued using quoted rates for similar debt in active markets.

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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 tax credit 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 and other real estate tax credits, 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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Expenditures for long-lived assets 432,430 159 — 432,589

Operations All

Other Eliminations Consolidated

Revenues $ 1,455,410 $ 2,674 $ — $ 1,458,084

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For these services, Idaho Power billed IDACORP $ 0.9 million in 2022, $ 0.8 million in 2021, and $ 0.7 million in 2020.

At December 31, 2021 and 2020, Idaho Power had a $ 2.0 million and $ 1.5 million payable to IDACORP, respectively, which was included in its accounts payable to affiliates balance on its consolidated balance sheets.

At December 31, 2022 and 2021, Idaho Power had a $ 56.2 million and $ 2.0 million payable to IDACORP, respectively, which was included in its accounts payable to affiliates balance on its consolidated balance sheets, primarily related to income tax payments.

At IDACORP, the receivable from Idaho Power is eliminated in consolidation.

Idaho Power purchases all of the power generated by four of Ida-West’s hydropower projects located in Idaho.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of IDACORP, Inc.

To the shareholders and the Board of Directors of

IDACORP, Inc.:

Opinion on the Financial Statements

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Critical Audit Matter Description

Idaho Power Company (Idaho Power), the principal operating subsidiary of the Company, is subject to rate regulation by the Federal Energy Regulatory Commission (FERC) and the Idaho and Oregon Public Utility Commissions (the “Commissions”), which have jurisdiction with respect to the rates of electric distribution companies in Idaho and Oregon.

Idaho Power Company (Idaho Power), the principal operating subsidiary of the Company, is subject to rate regulation by the Federal Energy Regulatory Commission and the Idaho and Oregon Public Utility Commissions (the “Commissions”), which have jurisdiction with respect to the rates of electric distribution companies in Idaho and Oregon.

Management has determined it 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.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Idaho Power Company

To the shareholder and the Board of Directors of

Idaho Power Company

Opinion on the Financial Statements

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Critical Audit Matter Description

The Company is subject to rate regulation by the Federal Energy Regulatory Commission (FERC) and the Idaho and Oregon Public Utility Commissions (the “Commissions”), which have jurisdiction with respect to the rates of electric distribution companies in Idaho and Oregon.

The Company is subject to rate regulation by the Federal Energy Regulatory Commission and the Idaho and Oregon Public Utility Commissions (the “Commissions”), which have jurisdiction with respect to the rates of electric distribution companies in Idaho and Oregon.

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Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates.

Commissions’ regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital.

The Commissions’ regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital.

Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required.

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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