What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-02-15 compared with 2023-02-16 · 266 added, 237 removed, 1662 unchanged (23% of the section changed)

119 unchanged sentences

Current Liabilities:

Current maturities of long-term debt $ 49,800 $ —

Accounts payable 308,504 292,719

65 unchanged sentences

Issuance of long-term debt 872,000 198,000 —

Premium on issuance of long-term debt — — 31,384

Discount on issuance of long-term debt ( 7,006 ) — —

Retirement of long-term debt ( 225,000 ) ( 4,360 ) —

1 unchanged sentence

Tax withholdings on net settlements of share-based awards ( 3,274 ) ( 3,111 ) ( 3,031 )

Make-whole premium on retirement of long-term debt — — ( 3,305 )

Debt issuance costs and other ( 403 ) ( 926 ) ( 334 )

Net cash provided by (used in) financing activities 472,772 35,316 ( 149,484 )

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

Net increase (decrease) in cash and cash equivalents 149,852 ( 37,666 ) ( 59,873 )

Cash and cash equivalents at beginning of the year 177,577 215,243 275,116

16 unchanged sentences

Tax withholdings on net settlements of share-based awards ( 3,274 ) ( 3,111 ) ( 3,031 )

Treasury shares issued — — ( 1,920 )

Other 122 125 109

11 unchanged sentences

Balance at end of year ( 17,184 ) ( 12,922 ) ( 40,040 )

Treasury Stock:

Balance at beginning of year — — ( 1,920 )

Issued — — 1,920

Balance at end of year — — —

Total IDACORP, Inc.

3 unchanged sentences

Net income attributable to noncontrolling interests 698 578 322

Distributions to noncontrolling interests ( 900 ) — —

Balance at end of year 7,174 7,376 6,798

79 unchanged sentences

Current Liabilities:

Current maturities of long-term debt $ 49,800 $ —

Accounts payable 307,538 292,616

60 unchanged sentences

Issuance of long-term debt 872,000 198,000 —

Premium on issuance of long-term debt — — 31,384

Discount on issuance of long-term debt ( 7,006 ) — —

Retirement of long-term debt ( 225,000 ) ( 4,360 ) —

Dividends on common stock ( 101,790 ) ( 114,447 ) ( 146,076 )

Make-whole premium on retirement of long-term debt — — ( 3,305 )

Other 38 ( 739 ) ( 238 )

23 unchanged sentences

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This Annual Report on Form 10-K is a combined report of IDACORP, Inc.

(IDACORP) and Idaho Power Company (Idaho Power).

This Annual Report on Form 10-K is a combined report of IDACORP and Idaho Power.

Therefore, these Notes to the Consolidated Financial Statements apply to both IDACORP and Idaho Power.

3 unchanged sentences

Idaho Power is an electric utility engaged in the generation, transmission, distribution, sales, and purchase of electric energy and capacity with a service area covering approximately 24,000 square miles in southern Idaho and eastern Oregon.

Idaho Power is regulated primarily by the state utility regulatory commissions of Idaho and Oregon and the Federal Energy Regulatory Commission (FERC).

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 power plant (Jim Bridger plant) owned in part by Idaho Power.

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

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

Idaho Power is regulated primarily by the state utility regulatory commissions of Idaho and Oregon and the FERC.

Idaho Power is the parent of IERCo, a joint-owner of BCC, which mines and supplies coal to the Jim Bridger plant owned in part by Idaho Power.

IDACORP’s other notable wholly-owned subsidiaries include IFS, an investor in affordable housing and other real estate tax credit investments, and Ida-West, an operator of small hydropower generation projects that satisfy the requirements of the PURPA.

Principles of Consolidation

2 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, 2022, Marysville had approximately $ 14.9 million of assets, primarily a hydropower plant, which are eliminated in consolidation.

At December 31, 2023 and 2022, Marysville had approximately $ 14.9 million of primarily hydropower plant assets.

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.

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 BCC investment 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-owner, Idaho Power is not the primary beneficiary.

The carrying value of Idaho Power's investment in BCC was $ 24.1 million at December 31, 2023, and Idaho Power's maximum exposure to loss is the carrying value, any additional future contributions to BCC, and a $ 47.6 million guarantee for mine reclamation costs.

11 unchanged sentences

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

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

Idaho Power meets the requirements under GAAP to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.

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

2 unchanged sentences

operating revenues;

operation and maintenance expense;

depreciation expense;

44 unchanged sentences

Property, Plant, and Equipment and Depreciation

The cost of utility plant in service represents the original cost of contracted services, direct labor and material, allowance for funds used during construction (AFUDC), and indirect charges for engineering, supervision, and similar overhead items.

The cost of utility plant in service represents the original cost of contracted services, direct labor and material, AFUDC, and indirect charges for engineering, supervision, and similar overhead items.

Repair and maintenance costs associated with planned major maintenance are expensed as the costs are incurred, as are maintenance and repairs of property and replacements and renewals of items determined to be less than units of property.

1 unchanged sentence

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 2.7 percent in 2022, and 2.9 percent in 2021 and 2020.

Annual depreciation provisions as a percent of average depreciable utility plant in service approximated 2.9 percent in 2023, 2.7 percent in 2022, and 2.9 percent in 2021.

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.

6 unchanged sentences

AFUDC represents the cost of financing construction projects with borrowed funds and equity funds.

With one exception, for the Hells Canyon Complex (HCC) relicensing project, cash is not realized currently from such allowance;

With one exception, for the HCC relicensing project, cash is not realized currently from such allowance;

it is realized under the ratemaking process over the service life of the related property through increased revenues resulting from a higher rate base and higher depreciation expense.

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 7.4 percent for 2022, and 7.5 percent for 2021 and 2020.

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

Idaho Power’s weighted-average monthly AFUDC rate was 7.4 percent for 2023 and 2022, and 7.5 percent for 2021.

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.

1 unchanged sentence

In general, deferred income tax expense or benefit for a reporting period is recognized as the change in deferred tax assets and liabilities from the beginning to the end of the period.

The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date unless Idaho Power's primary regulator, the Idaho Public Utilities Commission (IPUC), orders direct deferral of the effect of the change in tax rates over a longer period of time.

The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date unless Idaho Power's primary regulator, the IPUC, orders direct deferral of the effect of the change in tax rates over a longer period of time.

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

11 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

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

Recently Adopted Accounting Pronouncements

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

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.

This ASU is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted.

The amendments in this ASU will be applied retrospectively.

IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on their notes to the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures which expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid.

This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The amendments in this ASU will be applied prospectively and may be applied retrospectively.

IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on their notes to the consolidated financial statements.

There have been no other recent accounting pronouncements not yet adopted that are expected to have a material impact on IDACORP's or Idaho Power's consolidated financial statements.

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

10 unchanged sentences

Capitalized repair costs ( 24,360 ) ( 19,320 ) ( 17,430 ) ( 24,360 ) ( 19,320 ) ( 17,430 )

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

State income taxes, net of federal benefit 15,802 18,139 11,359 16,081 18,352 11,633

42 unchanged sentences

Regulatory assets 774,672 739,689 774,672 739,689

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

Power cost adjustment 29,742 33,116 29,742 33,116

Partnership investments 3,593 3,355 — —

7 unchanged sentences

Tax Credit Carryforwards

As of December 31, 2022, IDACORP had $ 44.7 million of Idaho investment tax credit carryforwards, which expire from 2026 to 2036.

As of December 31, 2023, IDACORP had $ 52.0 million of Idaho investment tax credit carryforward, which expire from 2029 to 2037.

Uncertain Tax Positions

2 unchanged sentences

IDACORP and Idaho Power are subject to examination by their major tax jurisdictions - United States federal and the State of Idaho.

The open tax years for examination are 2020-2022 for federal and 2016-2022 for Idaho.

The Idaho State Tax Commission began its examination of the 2016-2018 tax years in March of 2020.

The open tax years for examination are 2020-2021 and 2023 for federal and 2022-2023 for Idaho.

In May 2009, IDACORP formally entered the U.S.

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 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.

In 2023, the IRS completed its examination of IDACORP’s 2022 tax year with no unresolved income tax issues.

REGULATORY MATTERS

18 unchanged sentences

Energy efficiency program costs (5)

3,767 — 3,767 7,622

Power supply costs (6)

6 unchanged sentences

2024-2030 108,376 15,256 123,632 80,531

Asset retirement obligations (7)

— 28,780 28,780 22,585

Wildfire Mitigation Plan deferral (6)

— 51,329 51,329 27,078

Asset retirement obligations (7)

— 35,270 35,270 28,780

Long-term service agreement 2024-2043 12,679 8,276 20,955 22,114

12 unchanged sentences

Energy efficiency program costs (5)

Settlement agreement sharing mechanism (6)

1,507 — 1,507 154

Power supply costs (6)

1,240 — 1,240 —

Mark-to-market liabilities — 88 88 59,544

4 unchanged sentences

(1) Earning a return includes either interest or a return on the investment as a component of rate base at the allowed rate of return.

The interest rate on deferral accounts is published annually by the IPUC and OPUC.

The applicable rates for 2023 were 2% and 4.5%, respectively.

(2) Represents flow-through income tax accounting differences which have a corresponding deferred tax liability disclosed in Note 2 - "Income Taxes."

4 unchanged sentences

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

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

(5) The energy efficiency asset and liability represent the separate Idaho and Oregon jurisdiction balances at December 31, 2022, and December 31, 2023, respectively.

During 2023, the balances changed from an asset to a liability in the Idaho jurisdiction.

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

7 unchanged sentences

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

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

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

Power Cost Adjustment Mechanisms and Deferred Power Supply Costs

4 unchanged sentences

Idaho Jurisdiction Power Cost Adjustment Mechanism:

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;

In the Idaho jurisdiction, the annual 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 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.

5 unchanged sentences

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

In May 2023, the IPUC approved recovery of an incremental $ 200.2 million of Idaho-jurisdiction PCA revenues, but directed Idaho Power to spread recovery of the $ 190.2 million deferral balance component of the PCA over a two-year period from June 1, 2023 to May 31, 2025, resulting in a total PCA increase of $ 105.1 million, effective for the PCA collection period from June 1, 2023 to May 31, 2024.

The order deferred collection of $ 95.1 million of deferred PCA costs to the subsequent annual PCA collection period from June 1, 2024, to May 31, 2025.

The net increase in PCA revenues reflects higher market energy and natural gas prices, combined with lower-than-expected hydropower generation and limited coal supply in the prior April 2022 to March 2023 PCA period.

The net increase also reflects an expectation of continued elevated market energy and natural gas prices in the April 2023 to March 2024 forecast period.

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, 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, 2023 $ 105.1 The $105.1 million increase in PCA rates reflects higher market energy and natural gas prices, combined with lower-than-expected low-cost hydropower generation and limited coal supply.

The increased rate also reflects an expectation of continued elevated market energy prices and natural gas prices in the forecast period.

June 1, 2022 $ 94.9 The increase in PCA rates reflected 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 reflected $0.6 million of 2021 earnings shared with customers under the 2018 Settlement Stipulation described below.

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

The net increase in PCA rates also reflected a smaller credit to customers through the true-up component.

Oregon Jurisdiction Power Cost Adjustment Mechanism:

1 unchanged sentence

an annual power cost update (APCU) and a power cost adjustment mechanism (PCAM).

The APCU allows Idaho Power to reestablish its Oregon base net power supply costs annually, separate from a general rate case, and to forecast net power supply costs for the upcoming water year.

The APCU allows Idaho

Power to reestablish its Oregon base net power supply costs annually, separate from a general rate case, and to forecast net power supply costs for the upcoming water year.

The PCAM is a true-up filed annually in February.

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.

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.

Actual 2023 Oregon-jurisdiction power supply costs were less than the amount recovered through the APCU, resulting in a $ 0.9 million refund due to customers, while in 2022, Oregon jurisdiction power supply cost exceeded the amount recovered through the APCU, resulting in a $ 1.1 million deferral of costs for future recovery.

Variances during 2023 and 2022 did not have a material impact on the companies' financial statements.

Idaho Power's annual June 1 APCU rate changes were $ 7.7 million, $ 4.0 million, and $ 2.4 million in 2023, 2022, and 2021, respectively.

Notable Idaho Base Rate Adjustments

Idaho base rates were most recently established through a general rate case in 2012, and adjusted in 2014, 2017, 2018, and 2019.

January 2012 and June 2014 Idaho Base Rate Adjustments:

Effective January 1, 2012, Idaho Power implemented new Idaho base rates resulting from IPUC approval of a settlement stipulation that provided for a 7.86 percent authorized overall rate of return on an Idaho-jurisdiction rate base of approximately $ 2.36 billion.

The settlement stipulation resulted in a 4.07 percent, or $ 34.0 million, overall increase in Idaho Power's annual Idaho-jurisdiction base rate revenues.

Idaho base rates were subsequently adjusted again in 2012, in connection with Idaho Power's completion of the Langley Gulch power plant.

In June 2012, the IPUC issued an order approving a $ 58.1 million increase in annual Idaho-jurisdiction base rates, effective July 1, 2012.

The order also provided for a $ 335.9 million increase in Idaho rate base.

Neither the settlement stipulation nor the IPUC orders adjusting base rates specified an authorized rate of return on equity or imposed a moratorium on Idaho Power filing a general rate case at a future date.

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.

Idaho base rates were most recently established through a general rate case in 2023, with rate changes effective January 1, 2024.

Previously, base rates were established in a general rate case in 2012 and adjusted in 2014, 2017, 2018, and 2019.

2023 Idaho General Rate Case:

In June 2023, Idaho Power filed a general rate case with the IPUC.

In December 2023, the IPUC issued an order approving a settlement stipulation among parties (2023 Settlement Stipulation) settling the general rate case.

The Order and the 2023 Settlement Stipulation contains the following significant terms, among other items:

• Idaho Power will implement revised tariff schedules designed to increase annual Idaho-jurisdictional retail revenue by $ 54.7 million, or 4.25 percent, effective January 1, 2024.

The $54.7 million of additional annual revenue is net of an Idaho-jurisdiction PCA rate decrease of $ 168.3 million and a reduction to annual energy efficiency rider collection of $ 3.5 million, each of which was transferred into base rates;

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

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

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

• Modifications to the Idaho-jurisdiction FCA mechanism to support Idaho Power’s rate designs and to reflect updated fixed costs;

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

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

• Modifications to Idaho Power’s ADITC and revenue sharing mechanism beginning in 2024 to (1) include an additional amount of investment tax credits equal to the incremental investment tax credits generated from Idaho Power’s investment in 2023 battery storage projects;

(2) remove the existing $ 25 million annual cap on the amount of accelerated amortization of ADITCs;

(3) establish a minimum specified Idaho ROE of 9.12 percent for additional amortization of ADITCs;

(4) establish a 9.6 percent Idaho ROE as the threshold for revenue sharing of Idaho-jurisdiction earnings between Idaho Power and Idaho customers;

and (5) implement all revenue sharing through the PCA rather than a portion offsetting customer-funded pension obligations;

• Agreement that Idaho Power’s capital expenditures through year-end 2022 were prudently incurred;

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

• A residential price modernization plan and updated rate designs.

Under the modified ADITC and Revenue Sharing mechanism, if Idaho Power's annual Idaho ROE in any year exceeds 9.6 percent, the amount of earnings exceeding 9.6 percent will be allocated 80.0 percent to Idaho Power's Idaho customers as a rate reduction to be effective at the time of the subsequent year's PCA, and 20.0 percent to Idaho Power.

In 2023, Idaho Power recorded no amortization of ADITC.

Accordingly, at December 31, 2023, the full amount of ADITC remained available for future use under the terms of the 2023 Settlement Stipulation and the 2018 Settlement Stipulation described below.

May 2018 Idaho Tax Reform Settlement Stipulation:

In December 2017, the Tax Cuts and Jobs Act was signed into law, which, among other things, lowered the corporate federal income tax rate from 35 percent to 21 percent and modified or eliminated certain federal income tax deductions for corporations.

In March 2018, Idaho House Bill 463 was signed into law reducing the Idaho state corporate income tax rate from 7.4 percent to 6.925 percent.

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

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

Beginning June 1, 2018, the 2018 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, 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 effective on or after January 1, 2020, 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 80 percent basis as a customer rate reduction will begin at the newly authorized Idaho ROE, and (c) sharing with customers on an 80 percent basis but allocated 55 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.

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 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:

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 2018 Settlement Stipulation also provided for the indefinite extension, with modifications, of a previous 2014 settlement stipulation beyond its termination date of December 31, 2019, with modified terms related to the ADITC and revenue sharing mechanism that became effective January 1, 2020.

The 2018 Settlement Stipulation provided Idaho Power the ability to earn a minimum Idaho ROE of 9.4 percent by amortizing up to $ 25 million of additional ADITC in any calendar year.

If Idaho Power’s annual Idaho ROE in any year exceeded 10.0 percent, the amount of earnings exceeding 10.0 percent and up to and including 10.5 percent would 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.

Idaho Power’s ADITC and revenue sharing mechanism was modified by the 2023 Settlement Stipulation.

North Valmy Base Rate Adjustment Settlement Stipulations:

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

Idaho Power ceased coal-fired operations at unit 1 in 2019, as planned, and these settlement stipulations provide for Idaho Power to cease coal-fired operations at unit 2 in 2025.

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.

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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 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 plan at the time of the Bridger Order to cease its participation in coal-fired operations at the Jim Bridger plant by the end of 2028.

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

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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.

The uncollected amounts tracked in this balancing account were included for recovery in the 2023 Settlement Stipulation.

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

The Bridger Order allows Idaho Power to earn a return on and recover through 2030 the net book value of coal-related assets at the Jim Bridger plant as of December 31, 2020, as well as forecasted coal-related investments, 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

Fixed Cost Adjustment:

The Idaho jurisdiction fixed cost adjustment (FCA) mechanism, applicable to Idaho residential and small commercial customers, is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by separating (or decoupling) the recovery of fixed costs from the variable kilowatt-hour (kWh) charge and linking it instead to a set amount per customer.

Under Idaho Power's current rate design, recovery of a portion of fixed costs is included in the variable kWh charge, which may result in over-collection or under-collection of fixed costs.

The FCA mechanism, applicable to Idaho residential and small commercial customers, is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by separating (or decoupling) the recovery of fixed costs from the variable kWh charge and linking it instead to a set amount per customer.

Under Idaho Power's current rate design, recovery of a portion of fixed costs is included in the variable kWh charge, which may result in

over-collection or under-collection of fixed costs.

To return over-collection to customers or to collect under-collection from customers, the FCA mechanism allows Idaho Power to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power during the year.

The IPUC has discretion to cap the annual increase in the FCA recovery at 3 percent of base revenue, with any excess deferred for collection in a subsequent year.

In May 2023, the IPUC issued an order approving a $ 10.1 million decrease in recovery from the FCA from $ 35.2 million to $ 25.1 million for the 2022 FCA deferral, with new rates effective for the period from June 1, 2023, to May 31, 2024.

Beginning with the 2024 FCA deferral, the 2023 Settlement Stipulation updates the authorized fixed-cost recovery amount per customer and modifies parts of the FCA mechanism to support Idaho Power's proposed rate designs, as noted above.

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

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Wildfire Mitigation Cost Recovery:

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

In June 2021 and March 2023, the IPUC issued orders authorizing Idaho Power to defer for future amortization incremental O&M and depreciation expense for certain capital investments necessary to implement Idaho Power's WMP.

As of December 31, 2023, Idaho Power’s deferral balance of Idaho-jurisdiction costs related to the WMP was $51.3 million.

As a result of the 2023 Settlement Stipulation, Idaho Power will recover and amortize its WMP deferral balance through 2022 of $ 26.7 million, beginning January 1, 2024.

Notable Oregon Regulatory Matters

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Oregon base rates were most recently established in a general rate case in 2012.

In February 2012, the Public Utility Commission of Oregon (OPUC) issued an order approving a settlement stipulation that provided for a $ 1.8 million base rate increase, a return on equity of 9.9 percent, and an overall rate of return of 7.757 percent in the Oregon jurisdiction.

In February 2012, the OPUC issued an order approving a settlement stipulation that provided for a $ 1.8 million base rate increase, a return on equity of 9.9 percent, and an overall rate of return of 7.757 percent in the Oregon jurisdiction.

New rates in conformity with the settlement stipulation were effective March 1, 2012.

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

In December 2023, Idaho Power filed a general rate case with the OPUC.

The filing was based on a 2024 test year and requested an overall annual rate increase of $ 10.7 million, or 19.28 percent.

The filing requested, among other items, a 10.4 percent authorized rate of return on equity and an approximate $ 188.9 million Oregon-jurisdiction retail rate base.

The $188.9 million of rate base excludes rate base associated with Idaho Power's jointly-owned North Valmy coal facilities, the costs of which are recovered under the separate rate mechanism noted above.

In its application, Idaho Power proposed a capitalization structure of 49 percent long-term debt and 51 percent common stock equity.

Idaho Power included an average cost of debt of 5.104 percent and an overall cost of capital of 7.807 percent.

If approved by the OPUC, new rates for Oregon-jurisdiction customers would become effective in October 2024 or later.

Federal Regulatory Matters - Open Access Transmission Tariff Rates

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

Power to recover costs associated with its transmission system.

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

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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 2023 Idaho ROE, Idaho Power recorded no provision against current revenues for sharing of earnings with customers for 2023.

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

During 2022, no provision was recorded and in 2021, $ 0.6 million of sharing of earnings with customers was recorded.

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

Wholesale Energy Sales:

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.

As a public utility under the 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.

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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 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, 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.

At December 31, 2023, Idaho Power's energy efficiency rider balances were a $ 0.7 million regulatory liability in the Idaho jurisdiction and a $ 0.8 million regulatory liability in the Oregon jurisdiction.

Alternative Revenue Programs and Other Revenues

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When Idaho Power includes those amounts in the price of utility service and billed to customers, Idaho Power records such amounts as recovery of the associated regulatory asset or liability and not as revenues.

Derivative revenues include gains from settled electricity swaps and sales of electricity under forward sales contracts that are bundled with renewable energy credits.

Derivative revenues include gains from settled electricity swaps and sales of electricity under forward sales contracts that are bundled with RECs.

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

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2.50 % Series due 2023

1.90 % Series due 2030

80,000 80,000

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5.50 % Series due 2033

70,000 70,000

5.50 % Series due 2034

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450,000 450,000

5.20 % Series due 2053

5.50 % Series due 2053

5.80 % Series due 2054

Total first mortgage bonds 2,645,000 1,848,000

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116,300 116,300

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

Total pollution control revenue bonds 166,100 166,100

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Long-Term Debt Issuances, Maturities, and Redemptions

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 September 11, 2023, under the shelf registration statement with the SEC, Idaho Power issued $ 350 million in aggregate principal amount of 5.80 % first mortgage bonds, secured medium-term notes, Series M, maturing on April 1, 2054.

On April 1, 2023, Idaho Power repaid $ 75 million in aggregate principal amount of maturing 2.50 % first mortgage bonds due 2023, Series I.

On March 14, 2023, under the shelf registration statement with the SEC, Idaho Power issued $ 400 million in aggregate principal amount of 5.50 % first mortgage bonds, secured medium-term notes, Series M, maturing on March 15, 2053.

On March 8, 2023, pursuant to the Bond Purchase Agreement defined below, Idaho Power issued $ 60 million in aggregate principal amount of 5.06 % first mortgage bonds, secured medium-term notes, Series N, maturing on March 8, 2043;

and $62 million in aggregate principal amount of 5.20% first mortgage bonds, secured medium-term notes, Series N, maturing on March 8, 2053.

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.

The Term Loan Facility was a two-year senior unsecured term loan facility in the aggregate principal amount of $ 150 million.

On March 31, 2023, Idaho Power repaid $ 100 million and on May 17, 2023, repaid $ 50 million principal amount to fully repay the Term Loan Facility.

At December 31, 2023, there was no remaining outstanding principal balance of 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).

Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC.

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.

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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.

At December 31, 2023, $280 million remains available for debt issuance under the regulatory orders.

In January 2024, Idaho Power submitted applications to the IPUC, OPUC, and WPSC requesting authorization to issue and sell from time to time up to $ 1.2 billion in aggregate principal amount of debt securities and first mortgage bonds, which if approved will replace the $ 280 million remaining under the existing regulatory orders.

On February 8, 2024, Idaho Power received an order from OPUC authorizing its request.

As of the date of this report, approvals from the IPUC and WPSC are still pending.

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

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 $1.2 billion aggregate principal amount of first

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

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 $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).

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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.

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).

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

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• $ 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 Tranche 1 Bonds and Tranche 2 Bonds were issued on December 22, 2022, and the Tranche 3 Bonds and Tranche 4 Bonds were issued 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.

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.

As of December 31, 2023, the maximum amount of additional first mortgage bonds Idaho Power could issue approximately $ 700 million, though as of the date of this report the amount is limited to the $ 280 million 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.

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Balance at beginning of year 50,561,892 50,516,479 50,461,885

Forward sale agreements — — — 3,221,982

Continuous equity program (inactive) — — — 3,000,000

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(1) During 2023, 2022, and 2021, IDACORP granted 75,295 , 73,131 , and 76,147 restricted stock unit awards, respectively, to employees and 12,459 , 12,021 , and 14,025 shares of common stock, respectively, to directors.

During 2022, 2021, and 2020 IDACORP issued 45,413 , 54,594 , and 41,868 shares of common stock, respectively, using original issuances of shares pursuant to the IDACORP, Inc.

2000 Long-Term Incentive and Compensation Plan, including 8,674 , 12,784 , and 8,938 shares of common stock, respectively, issued to members of the board of directors.

During 2023, 2022, and 2021, IDACORP issued 53,345 , 45,413 , and 54,594 shares of common stock, respectively, using original issuances of shares pursuant to the LTICP, including 13,842 , 8,674 , and 12,784 shares of common stock, respectively, issued to members of the board of directors.

Equity Forward Sale Agreements

On November 7, 2023, IDACORP announced a registered public offering of 2,801,724 shares of its common stock at a public offering price of $ 92.80 per share, for an issuance amount of $ 260.0 million.

In conjunction with this offering, IDACORP granted the underwriters an option to purchase up to 420,258 additional shares, which was subsequently exercised in full on November 8, 2023, for an additional issuance amount of $ 39.0 million.

The 3,221,982 shares were sold under FSAs which provide for settlement on a settlement date or dates to be specified at IDACORP’s discretion, but which is expected to occur on or prior to November 7, 2024.

The FSAs will be physically settled with common shares issued by IDACORP, unless IDACORP elects to settle the agreements in net cash or net shares, subject to certain conditions.

On a settlement date or dates, if IDACORP decides to physically settle the FSAs, IDACORP will issue shares of common stock to the forward purchaser at the then-applicable forward sale price and receive issuance proceeds at that time.

The forward sale price was initially $ 90.016 per share and is subject to certain adjustments in accordance with the terms of the FSAs through the date of settlement.

At December 31, 2023, IDACORP could have settled the FSAs with physical delivery of 3,221,982 shares of common stock to the counterparty in exchange for cash of $ 291.9 million.

The FSAs could have also been settled at December 31, 2023, with delivery of approximately $ 23.9 million of cash or approximately 0.2 million shares of common stock to the counterparty, if IDACORP had elected to net cash or net share settle, respectively.

The FSAs have been classified as an equity transaction because they are indexed to IDACORP’s common stock and the other requirements necessary for equity classification are met.

As a result of the equity classification, no gain or loss will be recognized within earnings due to subsequent changes in the fair value of the FSAs.

Prior to settlement, the potentially issuable shares pursuant to the FSAs will be reflected in IDACORP’s diluted earnings per share calculations using the treasury stock method.

Under this method, the number of shares of IDACORP’s common stock used in calculating diluted earnings per share for a reporting period would be increased by the number of shares, if any, that would be issued upon physical settlement of the FSAs less the number of shares that could be purchased by IDACORP in the market with the proceeds received from issuance (based on the average market price during that reporting period).

Share dilution occurs when the average market price of IDACORP’s stock during the reporting period is higher than the then-applicable forward sale price as of the end of the reporting period.

As of December 31, 2023, 34,131 incremental shares were included in the calculation of diluted EPS related to the securities under the FSAs.

See Note 8 - "Earnings Per Share" for additional information concerning IDACORP's diluted earnings per share.

Restrictions on Dividends

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SHARE-BASED COMPENSATION

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

IDACORP has one share-based compensation plan — the LTICP.

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.

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Diluted earnings per share $ 5.14 $ 5.11 $ 4.85

(1) The effect of dilutive securities amount includes 34,131 incremental shares related to FSAs as of December 31, 2023.

See Note 6 - "Common Stock" for additional information concerning IDACORP's FSAs.

Purchase Obligations

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Cogeneration and power production (1)

$ 324,738 $ 336,702 $ 358,113 $ 371,980 $ 345,740 $ 2,999,760

Fuel 155,474 25,672 15,271 15,439 15,507 84,004

As of December 31, 2022, Idaho Power had 1,137 megawatt (MW) nameplate capacity of PURPA-related projects on-line, with an additional 75 MW nameplate capacity of projects projected to be on-line by 2024.

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

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

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.

(1) As of December 31, 2023, Idaho Power had a $ 431 million commitment related to an agreement to utilize the storage capacity of a 150 MW battery storage facility, over a 20-year term, scheduled to be online in June 2025.

As of December 31, 2023, Idaho Power had power purchase obligations with respect to 1,432 MW nameplate capacity of online PURPA and non-PURPA projects, with an additional 428 MW nameplate capacity of projects that are scheduled to be online through 2026.

The agreements for these projects have original contract terms ranging from one to 35 years.

Idaho Power's purchased power expense associated with long-term agreements (including PURPA) was approximately $ 258 million in 2023, $ 238 million in 2022, and $ 251 million in 2021.

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

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Easements and other payments (1)

2,119 2,163 2,209 2,255 2,302 12,258

Maintenance, service, and materials agreements (1)(2)

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18,514 17,020 16,830 16,780 15,949 83,032

(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.

(1) Approximately $ 28 million, $ 1 million, $ 20 million, and $ 166 million of the commitments included in joint-operating agreement payments, easements and other 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 $ 2 million are mostly comprised of other long-term liabilities at Ida-West.

(2) As of December 31, 2023, Idaho Power had a remaining $ 115 million commitment related to four contracts to acquire and own battery storage assets with in-service dates through 2025.

At IDACORP, long-term purchase commitments of $ 34.7 million are mostly comprised of other long-term liabilities at Ida-West and IFS.

At December 31, 2023, IDACORP had a commitment to invest an additional $ 5.9 million into a private market investment fund, which is expected to occur over the next few years.

IDACORP’s expense for operating leases was not material for the years ended 2023, 2022, and 2021.

Acquisition of Additional Interest in Boardman-to-Hemingway Transmission Project

In March 2023, Idaho Power executed a purchase, sale, and security agreement with the BPA to transfer BPA's 24 percent interest in the Boardman-to-Hemingway transmission line project to Idaho Power, bringing Idaho Power's interest in the project to approximately 45 percent.

Pursuant to the agreement, Idaho Power has a commitment to provide long-term transmission service to BPA.

The agreement also required BPA to make a $ 10 million security payment to Idaho Power.

On Idaho Power's consolidated balance sheet, the agreement increased construction work in progress by $ 31.4 million for the acquired permitting interest, cash and cash equivalents by $ 10.0 million for the additional security payment, and other non-current liabilities by $ 41.4 million for Idaho Power's obligation to pay for the permitting interest and to return the security deposit to BPA.

Payments to BPA for the permitting interest are expected to be made over a 15 -year period beginning 10 years after energization of the transmission line project, while the security deposit is due to be returned to BPA upon energization.

Idaho Power guarantees its portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest.

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

This guarantee, which is renewed annually with the WDEQ, was $ 47.6 million at December 31, 2023, representing IERCo's one-third share of BCC's total reclamation obligation of $ 142.9 million.

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

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During 2023, the reclamation trust fund made $ 6.0 million of distributions for reclamation activity costs associated with the BCC surface mine.

BCC periodically assesses the adequacy of the reclamation trust fund and its estimate of future reclamation costs.

BCC periodically assesses the adequacy of the reclamation trust fund and its estimate of

future reclamation costs.

To ensure that the reclamation trust fund maintains adequate reserves, BCC has the ability to, and does, add a per-ton surcharge to coal sales, all of which are made to the Jim Bridger plant.

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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.

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.

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

As of December 31, 2023, 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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IDACORP and Idaho Power are parties to legal claims and legal, tax, and regulatory actions and proceedings in the ordinary course of business and, as noted above, record an accrual for associated loss contingencies when they are probable and reasonably estimable.

In connection with its utility operations, Idaho Power is subject to claims by individuals, entities, and governmental agencies for damages for alleged personal injury, property damage, and economic losses, relating to the company’s provision of electric service and the operation of its generation, transmission, and distribution facilities.

In connection with its utility operations, Idaho Power is subject to claims by individuals, entities, and governmental agencies for damages for alleged personal injury, property damage, and economic losses, relating to the company’s provision of electric service and the operation of its power supply, transmission, and distribution facilities.

Some of those claims relate to electrical contacts, service quality, property damage, and wildfires.

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Pension Plans

Idaho Power has pension plans–a noncontributory defined benefit pension plan (pension plan) and two nonqualified defined benefit pension plans for certain senior management employees called the Security Plan for Senior Management Employees I and Security Plan for Senior Management Employees II (together, SMSP).

Idaho Power has a noncontributory defined benefit pension plan (pension plan) and two nonqualified defined benefit plans for certain senior management employees, the SMSP.

Idaho Power also has a nonqualified defined benefit pension plan for directors that was frozen in 2002.

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Interest cost 51,277 39,670 5,322 3,897

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

Actuarial loss (gain) 41,539 ( 438,297 ) 6,518 ( 32,009 )

Plan amendment — — 11 —

Benefits paid ( 48,412 ) ( 46,159 ) ( 6,630 ) ( 6,109 )

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$ ( 110,503 ) $ ( 114,041 ) $ ( 105,809 ) $ ( 99,976 )

Amounts recognized in accumulated other comprehensive income consist of:

Amounts recognized in AOCI consist of:

Net loss $ 108,334 $ 83,263 $ 21,074 $ 15,127

3 unchanged sentences

( 108,365 ) ( 83,300 ) — —

Net amount recognized in accumulated other comprehensive income

$ — $ — $ 17,535 $ 54,052

Net amount recognized in AOCI $ — $ — $ 23,274 $ 17,535

Accumulated benefit obligation $ 892,325 $ 837,377 $ 99,786 $ 93,995

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

The actuarial 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.

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

The actuarial losses reflected in the benefit obligations for the pension and SMSP plans in 2023 are due primarily to decreases in the assumed discount rates of both plans from December 31, 2022, to December 31, 2023.

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The Rabbi trust holds investments in marketable securities and corporate-owned life insurance.

The recorded value of these investments was approximately $ 134.2 million and $ 117.1 million at December 31, 2022 and 2021, respectively, and is reflected in Investments and in Company-owned life insurance on the consolidated balance sheets.

recorded value of these investments was approximately $ 146.2 million and $ 134.2 million at December 31, 2023 and 2022, respectively, and is reflected in Investments and in Company-owned life insurance on the consolidated balance sheets.

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

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(1) Net periodic pension costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates.

Under IPUC order, the Idaho portion of net periodic pension cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.

(2) Of total net periodic pension cost recognized for financial reporting $ 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.

Under an IPUC order, the Idaho portion of net periodic pension cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.

(2) Of total net periodic pension cost recognized for financial reporting $ 18.2 million, $ 19.0 million, and $ 17.8 million respectively, was recognized in "Other operations and maintenance" and $ 6.5 million, $ 9.2 million, and $ 10.5 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, 2023, 2022, and 2021.

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

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Reclassification adjustments for:

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

Amortization of net loss — 12,273 23,796 570 4,229 4,205

Amortization of prior service cost 6 6 6 219 279 296

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(1) Contributions and benefits paid are each net of $ 2.6 million and $ 2.9 million of plan participant contributions for 2023 and 2022, respectively.

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

Amounts recognized in AOCI consist of the following (in thousands of dollars):

Net gain $ ( 27,231 ) $ ( 20,896 )

2 unchanged sentences

Less amount recognized in regulatory assets 21,047 13,047

Net amount recognized in accumulated other comprehensive income $ — $ —

Net amount recognized in AOCI $ — $ —

The net periodic postretirement benefit cost was as follows (in thousands of dollars):

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2023 2022 2021

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

Actuarial gain during the year $ 7,572 $ 12,908 $ 9,718

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

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Amortization of net loss ( 1,237 ) ( 31 ) —

Amortization of prior service cost 1,665 295 47

Immediate recognition of loss from temporary deviation (1)

Reclassification adjustments for amortization of prior service cost 295 47 47

Adjustment for deferred tax effects ( 2,059 ) ( 1,315 ) ( 2,514 )

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• match the cash flow needs of the plan.

Idaho Power sets bond allocations sufficient to cover approximately five years of benefit payments.

Idaho Power sets debt security allocations sufficient to cover approximately five years of benefit payments.

Idaho Power then utilizes growth instruments (equities, real estate, venture capital) to fund the longer-term liabilities of the plan;

• maintain a prudent risk profile consistent with ERISA fiduciary standards.

Allowable plan investments include stocks and stock funds, investment-grade bonds and bond funds, real estate funds, private equity funds, and cash and cash equivalents.

With the exception of real estate holdings and private equity, investments must be readily marketable so that an entire holding can be disposed of quickly with only a minor effect upon market price.

Allowable plan investments include stocks and stock funds, investment-grade bonds and bond funds, real estate funds, private infrastructure funds, private direct lending funds, private equity funds, and cash and cash equivalents.

With the exception of real estate holdings, private infrastructure holdings, private direct lending loans, and private equity, investments must be readily marketable so that an entire holding can be disposed of quickly with only a minor effect upon market price.

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 Investors Service (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 AA Corporate Bond Index.

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

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Emerging Markets 40,398

Direct Lending Fund:

Fixed Income 2,970

Real estate 74,426

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For the years ended December 31, 2023 and 2022, 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 net asset value(NAV):

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

Level 2 Bonds :

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

The cash surrender value of this insurance contract is contractually

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

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

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

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The investments in commingled funds have redemption limitations that permit monthly redemption following notice requirements of 5 to 7 days.

Direct Lending Funds :

Direct lending strategies are closed-end funds that provide senior secured loans primarily to private, non-investment-grade companies.

Direct lending fund investments are valued by the fund companies, or an independent external advisor based on the estimated fair value of the underlying loans divided by the fund shares outstanding.

These direct lending funds also furnish annual audited financial statements that are used to further validate the information provided.

These closed-end funds are formed with a stated life of 6 to 10 years, which can be further extended with the approval of the limited partners.

There are generally no redemption rights associated with these funds.

The limited partner must hold the fund for the life of the fund or find a third-party buyer.

Real Estate :

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Private market investments represent two categories:

fund of hedge funds and venture capital funds.

venture capital funds and fund of hedge funds.

These funds are valued by the fund companies based on the estimated fair values of the underlying fund holdings divided by the fund shares outstanding or multiplied by the ownership percentages of the holder.

Some hedge fund strategies utilize securities with readily available market prices, while others utilize less liquid investment vehicles that are valued based on unobservable inputs including cost, operating results, recent funding activity, or comparisons with similar investment vehicles.

Redemptions are available on a quarterly basis with 70 days written notice.

Redemptions will be processed at the quarterly NAV or fair value within 60 days following quarter end.

In the event of a full redemption, a reserve amount of 5% to 10% of the redemption amount may be held in reserve until the audited financial statements of the fund are published.

This allows the fund to adjust the redemption so that other fund holders are not adversely impacted.

Venture capital fund investments are valued by the fund companies based on estimated fair value of the underlying fund holdings divided by the fund shares outstanding.

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The limited partner must hold the fund for the life of the fund or find a third-party buyer.

The value of the fund of hedge funds investment is the residual value of an immaterial non-liquid position in a single fund of hedge funds.

Employee Savings Plan

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Post-employment Benefits

Idaho Power provides certain benefits to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement, in addition to the health care benefits required under the Consolidated Omnibus Budget Reconciliation Act.

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

Idaho Power accrues a

liability for such benefits.

The post-employment benefits included in other deferred credits on both IDACORP’s and Idaho Power’s consolidated balance sheets at December 31, 2022 and 2021, were approximately $ 2 million.

Idaho Power accrues a liability for such benefits.

The post-employment benefits included in other liabilities on both IDACORP’s and Idaho Power’s consolidated balance sheets at December 31, 2023 and 2022, were approximately $ 3 million and $2 million.

PROPERTY, PLANT AND EQUIPMENT AND JOINTLY-OWNED PROJECTS

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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.

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

Idaho Power’s coal purchases from the joint venture were $ 60.4 million in 2022, $ 59.7 million in 2021, and $ 68.3 million in 2020.

Idaho Power has contracts to purchase the energy from four PURPA qualifying facilities that are 50 percent owned by Ida-West.

Idaho Power’s power purchases from these facilities were $ 7.9 million in 2022, $ 8.2 million in 2021, and $ 9.3 million in 2020.

IDACORP's consolidated VIE, Marysville, owns a hydropower plant with a net book value of $ 13.3 million and $ 13.7 million at December 31, 2022 and 2021, respectively.

IERCo, Idaho Power’s wholly-owned subsidiary, is a joint-owner of BCC.

Idaho Power’s coal purchases from BCC were $ 67.9 million in 2023, $ 60.4 million in 2022, and $ 59.7 million in 2021.

ASSET RETIREMENT OBLIGATIONS (ARO)

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.

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.

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 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.

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

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

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

In 2023, changes in estimates at the coal-fired generation facilities resulted in a net increase of $ 11.3 million in the recorded AROs.

The increase is primarily related to cost estimates for a flue gas desulfurization pond placed in-service during 2023 at the Jim Bridger plant.

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

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All projects are reviewed periodically for impairment.

The table below presents IDACORP’s and Idaho Power’s earnings of unconsolidated equity-method investments (in thousands of dollars):

The table below presents IDACORP’s and Idaho Power’s earnings of unconsolidated equity-method investments (in thousands of

2023 2022 2021

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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.

During 2023 and 2022, the rabbi trust purchased $ 1.6 million and $ 31.2 million, respectively 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.

2 unchanged sentences

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.

Due to increases in market interest rates in 2023 and 2022, all held-to-maturity securities were in a gross unrealized holding loss position totaling $ 3.3 million and $ 5.0 million at December 31, 2023 and December 31, 2022, respectively.

Based on ongoing credit evaluations of these holdings, Idaho Power does not expect material payment defaults or delinquencies and has not recorded an allowance for credit losses for these securities as of December 31, 2023 and 2022.

IDACORP Financial Services Investments

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Idaho Power offsets fair value amounts recognized on its balance sheet and applies collateral related to derivative instruments executed with the same counterparty under the same master netting agreement.

Idaho Power does not offset a counterparty's current derivative contracts with the counterparty's long-term derivative contracts, although Idaho Power's master netting arrangements would allow current and long-term positions to be offset in the event of default.

Idaho Power does not offset a counterparty's current derivative contracts with the counterparty's long-term derivative contracts, although Idaho Power's master

netting arrangements would allow current and long-term positions to be offset in the event of default.

Also, in the event of default, Idaho Power's master netting arrangements would allow for the offsetting of all transactions executed under the master netting arrangement.

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The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at December 31, 2023, was $ 63.9 million.

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

Idaho Power posted $ 53.3 million cash collateral related to this amount.

If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2023, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional $ 14.2 million to cover open liability positions as well as completed transactions that have not yet been paid.

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Financial swaps Other current liabilities 1,476 ( 1,476 ) — 41,977 ( 38,045 ) (1) 3,932

Forward contracts Other current assets 400 — 400 — — —

Forward contracts Other current liabilities — — — 2,000 — 2,000

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Financial swaps Other liabilities 376 ( 376 ) — 2,123 ( 2,123 ) (2) —

Forward contracts Other liabilities — — — 1,780 — 1,780

Total $ 2,199 $ ( 2,110 ) $ 89 $ 46,358 $ ( 40,426 ) $ 5,932

8 unchanged sentences

Total $ 74,346 $ ( 33,428 ) $ 40,918 $ 21,589 $ ( 14,801 ) $ 6,788

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

(1) Current liability derivative amounts offset include $ 36.6 million of collateral receivable at December 31, 2023.

(2) Long-term liability derivative amounts offset include $ 1.7 million of collateral receivable at December 31, 2023.

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

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d) pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

IDACORP and Idaho Power Level 2 inputs for derivative instruments are based on quoted market prices adjusted for location using corroborated, observable market data.

IDACORP and Idaho Power Level 2 inputs for derivative instruments are based on quoted market prices adjusted for location using corroborated, observable market data or using quoted price which may be in non-active markets.

Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

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

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

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

Electricity forward contract derivatives are valued using a blend of two electricity exchanges, adjusted for location basis, as specified in the forward contract.

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

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

The investments are measured using quoted prices in active markets and are held in a rabbi trust.

The table below presents the carrying value and estimated fair value of financial instruments that are not reported at fair value, as of December 31, 2022 and 2021, using available market information and appropriate valuation methodologies (in thousands).

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

December 31, 2023 December 31, 2022

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Idaho Power’s regulated operations include the generation, transmission, distribution, purchase, and sale of electricity.

This segment also includes income from IERCo, a wholly-owned subsidiary of Idaho Power that is also subject to regulation and is a one-third owner of BCC, an unconsolidated joint venture.

This segment also includes income from IERCo, a wholly-owned subsidiary of Idaho Power that is also subject to regulation and is a one-third owner of BCC, an unconsolidated investment.

IDACORP’s other operating segments are below the quantitative and qualitative thresholds for reportable segments and are included in the “All Other” category in the table below.

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Other income, net 51,424 ( 46 ) — 51,378

Interest income 12,556 2,776 ( 931 ) 14,401

Interest income including carrying charges on regulatory assets 26,509 4,688 ( 2,832 ) 28,365

Equity-method income 10,540 1,886 — 12,426

2 unchanged sentences

Income tax expense (benefit) 28,926 ( 1,630 ) — 27,296

Income attributable to IDACORP, Inc.

Net Income attributable to IDACORP, Inc.

256,810 4,385 — 261,195

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Other income, net 33,876 ( 187 ) — 33,689

Interest income 7,123 216 ( 47 ) 7,292

Interest income including carrying charges on regulatory assets 12,556 2,776 ( 931 ) 14,401

Equity-method income 10,211 1,300 — 11,511

2 unchanged sentences

Income tax expense (benefit) 39,908 ( 2,064 ) — 37,844

Income attributable to IDACORP, Inc.

Net Income attributable to IDACORP, Inc.

254,867 4,115 — 258,982

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Other income, net 21,243 ( 138 ) — 21,105

Interest income 9,733 1,275 ( 496 ) 10,512

Interest income including carrying charges on regulatory assets 7,123 216 ( 47 ) 7,292

Equity-method income 10,211 1,224 — 11,435

2 unchanged sentences

Income tax expense (benefit) 38,257 ( 1,345 ) — 36,912

Income attributable to IDACORP, Inc.

Net Income attributable to IDACORP, Inc.

243,225 2,325 — 245,550

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Comprehensive income includes net income and amounts related to the SMSP.

The table below presents changes in components of accumulated other comprehensive income (AOCI), net of tax, during the years ended December 31, 2022, 2021, and 2020 (in thousands of dollars).

The table below presents changes in components of AOCI, net of tax, during the years ended December 31, 2023, 2022, and 2021 (in thousands of dollars).

Items in parentheses indicate reductions to AOCI.

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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.

Idaho Power purchases all of the power generated by four of Ida-West’s 50 percent owned PURPA qualifying hydropower projects located in Idaho.

Idaho Power purchased $ 9.1 million in 2023, $ 7.9 million in 2022, and $ 8.2 million in 2021 of power from Ida-West.

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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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.

While the Company has indicated it expects Idaho Power to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve:

(1) full recovery of the costs of providing utility service, or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.

While the Company has indicated it expects Idaho Power to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service, or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.

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

1 unchanged sentence

Idaho Power recognizes such adjustments as regulatory assets or liabilities if it is probable that such amounts will be recovered from or returned to customers in future rates.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the degree of subjectivity involved in assessing the impact of expected future regulatory orders on the financial statements.

Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs and (2) a refund to customers for amounts collected prior to costs being incurred.

Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

We identified the impact of rate regulation as a critical audit matter due to the complexity in applying the specialized rules to account for the effects of cost-based rate regulation and the recording of regulatory assets and liabilities.

Given that complexity, performing audit procedures to evaluate the Company’s application of the specialized rules to account for the effects of cost-based rate regulation and the recording of regulatory assets and liabilities required specialized knowledge of accounting for rate regulation and the rate-setting process.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions and the application of flow-through accounting for income taxes included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs capitalized as property, plant, and equipment (2) recovery of costs deferred as regulatory assets, and (3) a refund or a future reduction in rates that should be reported as regulatory liabilities.

Our audit procedures related to the specialized rules to account for the effects of cost-based rate regulation, including the application of flow-through accounting for income taxes included the following, among others:

• We tested the effectiveness of management’s controls over the recording of regulatory assets and liabilities in accordance with specialized rules to account for the effects of cost-based rate regulation.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions for Idaho Power and evaluated whether such orders were appropriately reflected in the Company's financial statements.

• For selected regulatory assets and liabilities, we evaluated whether management had determined such amounts in accordance with regulatory orders.

• For selected regulatory assets and liabilities, we evaluated whether management had determined such amounts in accordance with regulatory orders and whether it was probable that such amounts will be recovered from or returned to customers in future rates.

• With the assistance of income tax specialists, we evaluated whether management had appropriately identified the income tax timing differences eligible for flow-through accounting and recorded such differences as adjustments to income tax expense and regulatory assets.

We then assessed whether these regulatory assets were probable of being recovered through future rates by comparing methodology to current rate cases.

/s/ DELOITTE & TOUCHE LLP

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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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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.

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

While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve:

(1) full recovery of the costs of providing utility service, or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.

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

While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service, or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.

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

1 unchanged sentence

The Company recognizes such adjustments as regulatory assets or liabilities if it is probable that such amounts will be recovered from or returned to customers in future rates.

Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs and (2) a refund to customers for amounts collected prior to costs being incurred.

Given that complexity, performing audit procedures to evaluate the Company's application of the specialized rules to account for the effects of cost-based rate regulation and the recording of regulatory assets and liabilities required specialized knowledge of accounting for rate regulation and the rate-setting process.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions and the application of flow-through accounting for income taxes included the following, among others:

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions for the Company and evaluated whether such orders were appropriately reflected in the Company's financial statements.

• For selected regulatory assets and liabilities, we evaluated whether management had determined such amounts in accordance with regulatory orders.

We then assessed whether these regulatory assets were probable of being recovered through future rates by comparing methodology to current rate cases.

/s/ DELOITTE & TOUCHE LLP

3 unchanged sentences

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data