Item 8. Financial Statements and Supplementary Data
ITEM 8. FINANCIAL STATEMENTS
Index to Financial Statements and Financial Statement Schedules
Consolidated Financial Statements Page
IDACORP, Inc.:
Consolidated Statements of Income 76
Consolidated Statements of Comprehensive Income 77
Consolidated Balance Sheets 78
Consolidated Statements of Cash Flows 80
Consolidated Statements of Equity 81
Idaho Power Company:
Consolidated Statements of Income 82
Consolidated Statements of Comprehensive Income 83
Consolidated Balance Sheets 84
Consolidated Statements of Cash Flows 86
Consolidated Statements of Retained Earnings 87
Notes to Consolidated Financial Statements 88
Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP (PCAOB ID No. 34 )
130
Financial Statement Schedules
IDACORP, Inc. - Schedule I - Condensed Financial Information of Registrant 146
IDACORP, Inc. and Idaho Power Company - Schedule II - Consolidated Valuation and Qualifying Accounts 148
All other schedules have been omitted because they are not required, not applicable, or the required information is otherwise included.
75
Table of Contents
IDACORP, Inc.
Consolidated Statements of Income
Year Ended December 31,
2024 2023 2022
(thousands of dollars except for per share amounts)
Operating Revenues:
Electric utility revenues $ 1,822,965 $ 1,762,894 $ 1,641,040
Other 3,668 3,462 2,941
Total operating revenues 1,826,633 1,766,356 1,643,981
Operating Expenses:
Electric utility:
Purchased power 425,082 501,531 544,345
Fuel expense 259,204 275,405 230,210
Power cost adjustment 89,757 6,885 ( 100,659 )
Other operations and maintenance 460,951 399,855 399,375
Energy efficiency programs 27,580 31,948 33,197
Depreciation 223,410 195,341 170,077
Other electric utility operating expenses 8,798 38,550 37,325
Total electric utility expenses 1,494,782 1,449,515 1,313,870
Other 4,012 3,364 2,933
Total operating expenses 1,498,794 1,452,879 1,316,803
Operating Income 327,839 313,477 327,178
Nonoperating (Income) Expense:
Allowance for equity funds used during construction ( 53,238 ) ( 43,221 ) ( 37,285 )
Earnings of unconsolidated equity-method investments ( 4,539 ) ( 12,426 ) ( 11,511 )
Interest on long-term debt 139,196 116,216 87,259
Other interest 24,454 20,253 16,030
Allowance for borrowed funds used during construction ( 27,785 ) ( 20,012 ) ( 13,914 )
Other income, net ( 55,253 ) ( 36,522 ) ( 10,805 )
Total nonoperating expense, net 22,835 24,288 29,774
Income Before Income Taxes 305,004 289,189 297,404
Income Tax Expense 15,053 27,296 37,844
Net Income 289,951 261,893 259,560
Adjustment for income attributable to noncontrolling interests ( 777 ) ( 698 ) ( 578 )
Net Income Attributable to IDACORP, Inc. $ 289,174 $ 261,195 $ 258,982
Weighted Average Common Shares Outstanding - Basic (000’s) 52,543 50,717 50,658
Weighted Average Common Shares Outstanding - Diluted (000’s) 52,615 50,806 50,699
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic $ 5.50 $ 5.15 $ 5.11
Earnings Attributable to IDACORP, Inc. - Diluted $ 5.50 $ 5.14 $ 5.11
The accompanying notes are an integral part of these statements.
76
Table of Contents
IDACORP, Inc.
Consolidated Statements of Comprehensive Income
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Net Income $ 289,951 $ 261,893 $ 259,560
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax
of $ 1,245 , $( 1,477 ), and $ 9,399 , respectively
3,592 ( 4,262 ) 27,118
Total Comprehensive Income 293,543 257,631 286,678
Comprehensive income attributable to noncontrolling interests ( 777 ) ( 698 ) ( 578 )
Comprehensive Income Attributable to IDACORP, Inc. $ 292,766 $ 256,933 $ 286,100
The accompanying notes are an integral part of these statements.
77
Table of Contents
IDACORP, Inc.
Consolidated Balance Sheets
December 31,
2024 2023
(in thousands)
Assets
Current Assets:
Cash and cash equivalents $ 368,865 $ 327,429
Receivables:
Customer (net of allowance of $ 5,071 and $ 4,869 , respectively)
114,824 107,256
Other (net of allowance of $ 628 and $ 716 , respectively)
29,627 44,661
Income taxes receivable 13,932 24,574
Accrued unbilled revenues 97,711 90,521
Materials and supplies (at average cost) 201,064 140,515
Fuel stock (at average cost) 43,656 19,952
Prepayments 29,461 22,840
Current regulatory assets 89,315 226,235
Other — 71
Total current assets 988,455 1,004,054
Investments 161,340 163,971
Property, Plant, and Equipment:
Utility plant in service 7,957,763 7,291,532
Accumulated provision for depreciation ( 2,714,706 ) ( 2,557,744 )
Utility plant in service - net 5,243,057 4,733,788
Construction work in progress 1,244,559 985,502
Utility plant held for future use 13,211 9,511
Other property, net of accumulated depreciation 16,491 16,429
Property, plant, and equipment - net 6,517,318 5,745,230
Other Assets:
Company-owned life insurance 92,062 82,038
Regulatory assets 1,418,057 1,426,815
Other 62,131 53,810
Total other assets 1,572,250 1,562,663
Total $ 9,239,363 $ 8,475,918
The accompanying notes are an integral part of these statements.
78
Table of Contents
IDACORP, Inc.
Consolidated Balance Sheets
December 31,
2024 2023
(in thousands)
Liabilities and Equity
Current Liabilities:
Current maturities of long-term debt $ 19,885 $ 49,800
Accounts payable 307,133 308,504
Taxes accrued 6,981 6,854
Interest accrued 42,681 38,292
Accrued compensation 70,548 64,645
Current regulatory liabilities 7,523 7,952
Advances from customers 165,229 104,297
Other 80,821 53,732
Total current liabilities 700,801 634,076
Other Liabilities:
Deferred income taxes 822,231 882,724
Regulatory liabilities 976,803 874,601
Pension and other postretirement benefits 165,992 233,965
Other 181,804 160,019
Total other liabilities 2,146,830 2,151,309
Long-Term Debt 3,053,777 2,775,790
Commitments and Contingencies
Equity:
IDACORP, Inc. shareholders’ equity:
Common stock, no par value ( 120,000 shares authorized; 53,962 and 50,615 shares issued, respectively)
1,194,998 888,615
Retained earnings 2,149,548 2,036,138
Accumulated other comprehensive loss ( 13,592 ) ( 17,184 )
Total IDACORP, Inc. shareholders’ equity 3,330,954 2,907,569
Noncontrolling interests 7,001 7,174
Total equity 3,337,955 2,914,743
Total $ 9,239,363 $ 8,475,918
The accompanying notes are an integral part of these statements.
79
Table of Contents
IDACORP, Inc.
Consolidated Statements of Cash Flows
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Operating Activities:
Net income $ 289,951 $ 261,893 $ 259,560
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 228,091 199,908 173,555
Deferred income taxes and investment tax credits ( 17,592 ) 39,613 ( 511 )
Changes in regulatory assets and liabilities 115,026 ( 4,748 ) ( 79,693 )
Pension and postretirement benefit plan expense 45,800 27,155 29,286
Contributions to pension and postretirement benefit plans ( 25,463 ) ( 55,337 ) ( 44,192 )
Earnings of equity-method investments ( 4,539 ) ( 12,426 ) ( 11,511 )
Distributions from equity-method investments 7,850 2,950 11,586
Allowance for equity funds used during construction ( 53,238 ) ( 43,221 ) ( 37,285 )
Other non-cash adjustments to net income, net 10,443 8,414 14,892
Change in:
Accounts receivable and unbilled revenues 31,434 ( 17,628 ) ( 81,545 )
Prepayments ( 8,931 ) ( 3,220 ) ( 2,156 )
Materials, supplies, and fuel stock ( 84,261 ) ( 53,243 ) ( 11,626 )
Accounts and wages payable 16,939 ( 81,244 ) 112,602
Taxes accrued/receivable 10,769 ( 12,551 ) ( 4,628 )
Other assets and liabilities 32,138 10,712 22,951
Net cash provided by operating activities 594,417 267,027 351,285
Investing Activities:
Additions to property, plant and equipment, net ( 1,009,279 ) ( 611,137 ) ( 432,589 )
Payments received from transmission project joint funding partners 83,708 26,501 17,778
Investments in affordable housing and other real estate tax credit projects ( 3,814 ) ( 2,533 ) ( 9,881 )
Distributions from equity-method investments, return of investment — — 8,489
Purchase of equity securities ( 11,642 ) ( 12,235 ) ( 45,572 )
Purchases of held-to-maturity securities ( 1,845 ) ( 1,617 ) ( 31,224 )
Proceeds from sale of investment securities 10,641 8,921 63,857
Purchases of short-term investments — — ( 25,000 )
Maturities of short-term investments — — 25,000
Other 14,570 2,153 4,875
Net cash used in investing activities ( 917,661 ) ( 589,947 ) ( 424,267 )
Financing Activities:
Issuance of long-term debt 300,000 872,000 198,000
Discount on issuance of long-term debt ( 186 ) ( 7,006 ) —
Retirement of long-term debt ( 49,800 ) ( 225,000 ) ( 4,360 )
Dividends on common stock ( 176,565 ) ( 163,545 ) ( 154,287 )
Issuance of common stock 298,450 — —
Tax withholdings on net settlements of share-based awards ( 3,782 ) ( 3,274 ) ( 3,111 )
Debt issuance costs and other ( 3,437 ) ( 403 ) ( 926 )
Net cash provided by financing activities 364,680 472,772 35,316
Net increase (decrease) in cash and cash equivalents 41,436 149,852 ( 37,666 )
Cash and cash equivalents at beginning of the year 327,429 177,577 215,243
Cash and cash equivalents at end of the year $ 368,865 $ 327,429 $ 177,577
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes $ 25,200 $ 6,200 $ 45,885
Cash paid for interest (net of amount capitalized) $ 109,067 $ 97,742 $ 85,985
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable $ 168,107 $ 185,400 $ 84,324
The accompanying notes are an integral part of these statements.
80
Table of Contents
IDACORP, Inc.
Consolidated Statements of Equity
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Common Stock:
Balance at beginning of year $ 888,615 $ 882,189 $ 874,896
Issuance 298,450 — —
Share-based compensation expense 11,708 9,578 10,279
Tax withholdings on net settlements of share-based awards ( 3,782 ) ( 3,274 ) ( 3,111 )
Other 7 122 125
Balance at end of year 1,194,998 888,615 882,189
Retained Earnings:
Balance at beginning of year 2,036,138 1,937,972 1,833,580
Net income attributable to IDACORP, Inc. 289,174 261,195 258,982
Common stock dividends ($ 3.35 , $ 3.20 , and $ 3.04 per share, respectively)
( 175,764 ) ( 163,029 ) ( 154,590 )
Balance at end of year 2,149,548 2,036,138 1,937,972
Accumulated Other Comprehensive Loss:
Balance at beginning of year ( 17,184 ) ( 12,922 ) ( 40,040 )
Unfunded pension liability adjustment (net of tax) 3,592 ( 4,262 ) 27,118
Balance at end of year ( 13,592 ) ( 17,184 ) ( 12,922 )
Total IDACORP, Inc. shareholders’ equity at end of year 3,330,954 2,907,569 2,807,239
Noncontrolling Interests:
Balance at beginning of year 7,174 7,376 6,798
Net income attributable to noncontrolling interests 777 698 578
Distributions to noncontrolling interests ( 950 ) ( 900 ) —
Balance at end of year 7,001 7,174 7,376
Total equity at end of year $ 3,337,955 $ 2,914,743 $ 2,814,615
The accompanying notes are an integral part of these statements.
81
Table of Contents
Idaho Power Company
Consolidated Statements of Income
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Operating Revenues $ 1,822,965 $ 1,762,894 $ 1,641,040
Operating Expenses:
Operation:
Purchased power 425,082 501,531 544,345
Fuel expense 259,204 275,405 230,210
Power cost adjustment 89,757 6,885 ( 100,659 )
Other operations and maintenance 460,951 399,855 399,375
Energy efficiency programs 27,580 31,948 33,197
Depreciation 223,410 195,341 170,077
Other operating expenses 8,798 38,550 37,325
Total operating expenses 1,494,782 1,449,515 1,313,870
Operating Income 328,183 313,379 327,170
Nonoperating (Income) Expense:
Allowance for equity funds used during construction ( 53,238 ) ( 43,221 ) ( 37,285 )
Earnings of unconsolidated equity-method investments ( 2,671 ) ( 10,540 ) ( 10,211 )
Interest on long-term debt 139,196 116,216 87,259
Other interest 24,105 19,913 15,693
Allowance for borrowed funds used during construction ( 27,785 ) ( 20,012 ) ( 13,914 )
Other income, net ( 49,710 ) ( 34,713 ) ( 9,147 )
Total nonoperating expense, net 29,897 27,643 32,395
Income Before Income Taxes 298,286 285,736 294,775
Income Tax Expense 17,681 28,926 39,908
Net Income $ 280,605 $ 256,810 $ 254,867
The accompanying notes are an integral part of these statements.
82
Table of Contents
Idaho Power Company
Consolidated Statements of Comprehensive Income
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Net Income $ 280,605 $ 256,810 $ 254,867
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax
of $ 1,245 , $( 1,477 ), and $ 9,399 , respectively
3,592 ( 4,262 ) 27,118
Total Comprehensive Income $ 284,197 $ 252,548 $ 281,985
The accompanying notes are an integral part of these statements.
83
Table of Contents
Idaho Power Company
Consolidated Balance Sheets
December 31,
2024 2023
(in thousands)
Assets
Current Assets:
Cash and cash equivalents $ 188,916 $ 271,791
Receivables:
Customer (net of allowance of $ 5,071 and $ 4,869 , respectively)
114,824 107,256
Other (net of allowance of $ 628 and $ 716 , respectively)
28,874 44,335
Income taxes receivable 11,811 22,926
Accrued unbilled revenues 97,711 90,521
Materials and supplies (at average cost) 201,064 140,515
Fuel stock (at average cost) 43,656 19,952
Prepayments 29,328 22,710
Current regulatory assets 89,315 226,235
Other — 71
Total current assets 805,499 946,312
Investments 92,921 93,037
Property, Plant, and Equipment:
Plant in service 7,957,763 7,291,532
Accumulated provision for depreciation ( 2,714,706 ) ( 2,557,744 )
Plant in service - net 5,243,057 4,733,788
Construction work in progress 1,244,559 985,502
Plant held for future use 13,211 9,511
Other property 4,858 4,310
Property, plant, and equipment, net 6,505,685 5,733,111
Other Assets:
Company-owned life insurance 92,062 82,038
Regulatory assets 1,418,057 1,426,815
Other 52,744 42,218
Total other assets 1,562,863 1,551,071
Total $ 8,966,968 $ 8,323,531
The accompanying notes are an integral part of these statements.
84
Table of Contents
Idaho Power Company
Consolidated Balance Sheets
December 31,
2024 2023
(in thousands)
Liabilities and Equity
Current Liabilities:
Current maturities of long-term debt $ 19,885 $ 49,800
Accounts payable 305,248 307,538
Accounts payable to affiliates 3,403 16,456
Taxes accrued 6,981 6,834
Interest accrued 42,681 38,292
Accrued compensation 70,319 64,408
Current regulatory liabilities 7,523 7,952
Advances from customers 165,229 104,297
Other 61,309 44,907
Total current liabilities 682,578 640,484
Other Liabilities:
Deferred income taxes 829,446 881,050
Regulatory liabilities 976,803 874,601
Pension and other postretirement benefits 165,992 233,965
Other 167,775 135,468
Total other liabilities 2,140,016 2,125,084
Long-Term Debt 3,053,777 2,775,790
Commitments and Contingencies
Equity:
Common stock, $ 2.50 par value ( 50,000 shares authorized; 39,151 shares outstanding)
97,877 97,877
Premium on capital stock 912,258 712,258
Capital stock expense ( 2,097 ) ( 2,097 )
Retained earnings 2,096,151 1,991,319
Accumulated other comprehensive loss ( 13,592 ) ( 17,184 )
Total equity 3,090,597 2,782,173
Total $ 8,966,968 $ 8,323,531
The accompanying notes are an integral part of these statements.
85
Table of Contents
Idaho Power Company
Consolidated Statements of Cash Flows
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Operating Activities:
Net income $ 280,605 $ 256,810 $ 254,867
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 227,480 199,307 172,976
Deferred income taxes and investment tax credits ( 15,151 ) 35,080 ( 11,744 )
Changes in regulatory assets and liabilities 115,026 ( 4,748 ) ( 79,693 )
Pension and postretirement benefit plan expense 45,763 27,138 29,269
Contributions to pension and postretirement benefit plans ( 25,427 ) ( 55,319 ) ( 44,175 )
Earnings of equity-method investments ( 2,671 ) ( 10,540 ) ( 10,211 )
Distributions from equity-method investments 5,750 650 10,211
Allowance for equity funds used during construction ( 53,238 ) ( 43,221 ) ( 37,285 )
Other non-cash adjustments to net income, net ( 1,502 ) ( 1,143 ) 4,493
Change in:
Accounts receivable and unbilled revenues 32,702 ( 17,882 ) ( 81,163 )
Prepayments ( 8,927 ) ( 3,212 ) ( 2,153 )
Materials, supplies, and fuel stock ( 84,261 ) ( 53,243 ) ( 11,626 )
Accounts and wages payable 15,781 ( 121,609 ) 166,635
Taxes accrued/receivable ( 2,850 ) ( 12,085 ) ( 2,995 )
Other assets and liabilities 32,171 10,776 22,876
Net cash provided by operating activities 561,251 206,759 380,282
Investing Activities:
Additions to utility plant, net ( 1,009,138 ) ( 610,913 ) ( 432,430 )
Payments received from transmission project joint funding partners 83,708 26,501 17,778
Distributions from equity-method investments, return of investment — — 8,489
Purchase of equity securities ( 10,991 ) ( 11,233 ) ( 43,953 )
Purchases of held-to-maturity securities ( 1,845 ) ( 1,617 ) ( 31,224 )
Proceeds from sale of investment securities 10,641 8,921 63,857
Other 12,249 6,198 7,605
Net cash used in investing activities ( 915,376 ) ( 582,143 ) ( 409,878 )
Financing Activities:
Issuance of long-term debt 300,000 872,000 198,000
Discount on issuance of long-term debt ( 186 ) ( 7,006 ) —
Retirement of long-term debt ( 49,800 ) ( 225,000 ) ( 4,360 )
Dividends on common stock ( 175,772 ) ( 101,790 ) ( 114,447 )
Capital contribution from parent 200,000 — —
Other ( 2,992 ) 38 ( 739 )
Net cash provided by financing activities 271,250 538,242 78,454
Net (decrease) increase in cash and cash equivalents ( 82,875 ) 162,858 48,858
Cash and cash equivalents at beginning of the year 271,791 108,933 60,075
Cash and cash equivalents at end of the year $ 188,916 $ 271,791 $ 108,933
Supplemental Disclosure of Cash Flow Information:
Cash paid to IDACORP related to income taxes $ 37,118 $ 51,815 $ 2,532
Cash paid for interest (net of amount capitalized) $ 108,718 $ 97,402 $ 85,648
Non-cash investing activities:
Additions to utility plant in accounts payable $ 168,107 $ 185,400 $ 84,324
The accompanying notes are an integral part of these statements.
86
Table of Contents
Idaho Power Company
Consolidated Statements of Retained Earnings
Year Ended December 31,
2024 2023 2022
(thousands of dollars)
Retained Earnings, Beginning of Year $ 1,991,319 $ 1,836,547 $ 1,696,304
Net Income 280,605 256,810 254,867
Dividends on Common Stock ( 175,773 ) ( 102,038 ) ( 114,624 )
Retained Earnings, End of Year $ 2,096,151 $ 1,991,319 $ 1,836,547
The accompanying notes are an integral part of these statements.
87
Table of Contents
IDACORP, INC. AND IDAHO POWER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. However, Idaho Power makes no representation as to the information relating to IDACORP’s other operations.
Nature of Business
IDACORP is a holding company formed in 1998 whose principal operating subsidiary is Idaho Power. 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 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 subsidiaries include IFS, an investor in affordable housing and other real estate tax credit investments, and Ida-West, an operator of small PURPA-qualifying hydropower generation projects.
Principles of Consolidation
IDACORP’s and Idaho Power’s consolidated financial statements include the assets, liabilities, revenues, and expenses of each company and its subsidiaries listed above, as well as any variable interest entity (VIE) for which the respective company is the primary beneficiary. Investments in VIEs for which the companies are not the primary beneficiaries, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting.
IDACORP also consolidates one 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, 2024, Marysville had approximately $ 14.6 million of primarily hydropower plant assets. EEC has borrowed amounts from Ida-West to fund a portion of its required capital contributions to Marysville. The loans are payable from EEC’s share of distributions from Marysville and are secured by the stock of EEC and EEC’s interest in Marysville. Ida-West is identified as the primary beneficiary because the combination of its ownership interest in the joint venture and the EEC note result in Ida-West's ability to control the activities of the joint venture.
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 $ 21.0 million at December 31, 2024, and Idaho Power's maximum exposure to loss is the carrying value, any additional future contributions to BCC, and a $ 47.5 million guarantee for mine reclamation costs. BCC has a reclamation trust fund set aside specifically for the purpose of paying the reclamation costs. At December 31, 2024, the value of BCC's reclamation trust fund exceeded the guarantee requirement for the total reclamation obligation. The guarantee, reclamation obligation, and reclamation trust are discussed further in Note 9 - "Commitments."
IFS's affordable housing limited partnership and other real estate tax credit investments are also VIEs for which IDACORP is not the primary beneficiary. IFS's limited partnership interests range from 10 to 100 percent and were acquired between 2004 and 2023. As a limited partner, IFS does not control these entities and they are not consolidated. IFS’s maximum exposure to loss in these developments is limited to its net carrying value, which was $ 54.7 million at December 31, 2024.
Ida-West's other investments in PURPA facilities, Idaho Power's investment in BCC, and IFS's investments are accounted for under the equity method of accounting (see Note 14 - "Investments").
Except for amounts related to sales of electricity by Ida-West's PURPA projects to Idaho Power, all intercompany transactions and balances have been eliminated in consolidation.
88
Table of Contents
The accompanying consolidated financial statements include Idaho Power's proportionate share of utility plant and related operations resulting from its interests in jointly-owned plants (see Note 12 - "Property, Plant and Equipment and Jointly-Owned Projects").
Regulation of Utility Operations
As a regulated utility, many of Idaho Power's fundamental business decisions are subject to the approval of governmental agencies, including the prices that Idaho Power is authorized to charge for its electric service. 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 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. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment; regulatory assets and liabilities; operating revenues; O&M expense; depreciation expense; and income tax expense. The application of accounting principles related to regulated operations sometimes results in Idaho Power recording expenses and revenues in a different period than when an unregulated entity would record such expenses and revenues. In these instances, the amounts are deferred or accrued as regulatory assets or regulatory liabilities on the balance sheet. Regulatory assets represent incurred costs that have been deferred because it is probable they will be recovered from customers through future rates. Regulatory liabilities represent obligations to make refunds to customers for previous collections, or represent amounts collected in advance of incurring an expense. The effects of applying these regulatory accounting principles to Idaho Power’s operations are discussed in more detail in Note 3 - "Regulatory Matters."
Management Estimates
Management makes estimates and assumptions when preparing financial statements in conformity with GAAP. These estimates and assumptions include, among others, those related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and the allowance for uncollectible accounts. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates involve judgments with respect to, among other things, future economic factors that are difficult to predict and are beyond management’s control. Accordingly, actual results could differ from those estimates.
System of Accounts
The accounting records of Idaho Power conform to the Uniform System of Accounts prescribed by the FERC and adopted by the public utility commissions of Idaho, Oregon, and Wyoming.
Cash and Cash Equivalents
Cash and cash equivalents include cash on-hand and highly liquid temporary investments that mature within 90 days of the date of acquisition.
Receivables and Allowance for Uncollectible Accounts
Customer receivables are recorded at the invoiced amounts and do not bear interest. A late payment fee of one percent and 2.3 percent in Idaho Power's Idaho and Oregon jurisdictions, respectively, may be assessed per month on account balances after 30 days. An allowance is recorded for potential uncollectible accounts. The measurement of expected credit losses on Idaho Power accounts receivable is based on historical experience, current economic conditions, and forecasted information that may affect collections on the outstanding balance. Generally, this includes adjustments based upon a combination of historical write-off experience, aging of accounts receivable, an analysis of specific customer accounts, and an evaluation of whether there are current or forecasted economic conditions that might cause variation in collection from the historical experience. Adjustments are charged to income. Customer accounts receivable balances that remain outstanding after reasonable collection efforts are written off.
89
Table of Contents
The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables (in thousands of dollars):
Year Ended
December 31,
2024 2023
Balance at beginning of period $ 4,869 $ 5,034
Additions to the allowance 4,523 3,617
Write-offs, net of recoveries ( 4,321 ) ( 3,782 )
Balance at end of period $ 5,071 $ 4,869
Allowance for uncollectible accounts as a percentage of customer receivables 4.2 % 4.3 %
Other receivables, primarily notes receivable from business transactions, are also reviewed for impairment periodically, based upon transaction-specific facts. When it is probable that IDACORP or Idaho Power will be unable to collect all amounts due according to the contractual terms of the agreement, an allowance is established for the estimated uncollectible portion of the receivable and charged to income.
There were no impaired receivables without related allowances at December 31, 2024 and 2023. Once a receivable is determined to be impaired, any further interest income recognized is fully reserved.
Derivative Financial Instruments
Financial instruments such as commodity futures, forwards, options, and swaps are used to manage exposure to commodity price risk in the electricity and natural gas markets. All derivative instruments are recognized as either assets or liabilities at fair value on the balance sheet unless they are designated as normal purchases and normal sales. With the exception of forward contracts for the purchase of natural gas for use at Idaho Power's natural gas generation facilities and a nominal number of power transactions, Idaho Power’s physical forward contracts are designated as normal purchases and normal sales. Because of Idaho Power’s regulatory accounting mechanisms, Idaho Power records the unrealized changes in fair value of derivative instruments related to power supply as regulatory assets or liabilities.
Revenues
Operating revenues are generally recorded when service is rendered or energy is delivered to customers. Idaho Power accrues estimated unbilled revenues for electric services delivered to customers but not yet billed at year-end. Idaho Power does not report any collections of franchise fees and similar taxes related to energy consumption on the income statement. In addition, regulatory mechanisms in place in Idaho and Oregon affect the reported amount of revenue. The effects of applying these regulatory mechanisms are discussed in more detail in Note 4 - "Revenues."
Property, Plant, and Equipment and Depreciation
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. For utility property replaced or renewed, the original cost plus removal cost less salvage is charged to accumulated provision for depreciation, while the cost of related replacements and renewals is added to property, plant, and equipment.
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 3.1 percent in 2024, 2.9 percent in 2023, and 2.7 percent in 2022.
During the period of construction, costs expected to be included in the final value of the constructed asset, and depreciated once the asset is complete and placed in service, are classified as construction work in progress on the consolidated balance sheets. If the project becomes probable of being abandoned, these costs are expensed in the period such determination is made. Idaho Power may seek recovery of these costs in customer rates, although there can be no guarantee such recovery would be granted.
90
Table of Contents
Long-lived assets are periodically reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows from an asset is less than the carrying value of the asset, impairment is recognized in the financial statements. There were no material impairments of long-lived assets in 2024, 2023, or 2022.
Allowance for Funds Used During Construction
AFUDC represents the cost of financing construction projects with borrowed funds and equity funds. 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 nonoperating expense, net. Idaho Power’s weighted-average monthly AFUDC rate was 7.2 percent for 2024, and 7.4 percent for both 2023 and 2022.
Income Taxes
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. Under this method (commonly referred to as normalized accounting), deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. 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 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. Therefore, Idaho Power's effective income tax rate is impacted as these differences arise and reverse. 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.
IDACORP and Idaho Power use judgment, estimation, and historical data in developing the provision for income taxes and the reporting of tax-related assets and liabilities, including development of current year tax depreciation, capitalized repair costs, capitalized overheads, and other items. Income taxes can be impacted by changes in tax laws and regulations, interpretations by taxing authorities, changes to accounting guidance, and actions by federal or state public utility regulators. Actual income taxes could vary from estimated amounts and may result in favorable or unfavorable impacts to net income, cash flows, and tax-related assets and liabilities.
In compliance with the federal income tax requirements for the use of accelerated tax depreciation, Idaho Power records deferred income taxes related to its plant assets for the difference between income tax depreciation and book depreciation used for financial statement purposes. Deferred income taxes are recorded for other temporary differences unless accounted for using flow-through.
Investment tax credits earned on regulated assets are deferred and amortized to income over the estimated service lives of the related properties.
Income taxes are discussed in more detail in Note 2 - "Income Taxes."
Other Accounting Policies
Debt discount, expense, and premium are deferred and amortized over the terms of the respective debt issuances. Losses on reacquired debt and associated costs are amortized over the life of the associated replacement debt, as allowed under regulatory accounting.
91
Table of Contents
New and Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards 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. IDACORP and Idaho Power adopted this ASU on January 1, 2024, for annual periods, and subsequently on January 1, 2025, for interim periods. The amendments in this ASU have been applied retrospectively, as required. See Note 17 - "Segment Information" for expanded disclosure required by this ASU.
There have been no other 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 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 are required to be applied prospectively and are allowed to be applied retrospectively. IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on the notes to their respective consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses which requires disclosure of certain disaggregated income statement expense categories on an annual and interim basis. This ASU is effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The amendments in this ASU are required to be applied prospectively and are allowed to be applied retrospectively. IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on the notes to their respective 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.
92
Table of Contents
2. INCOME TAXES
A reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:
IDACORP Idaho Power
2024 2023 2022 2024 2023 2022
(thousands of dollars)
Federal income tax expense at statutory rate $ 63,888 $ 60,583 $ 62,333 $ 62,640 $ 60,005 $ 61,903
Change in taxes resulting from:
AFUDC ( 17,015 ) ( 13,279 ) ( 10,752 ) ( 17,015 ) ( 13,279 ) ( 10,752 )
Capitalized interest 5,493 3,097 1,633 5,493 3,097 1,633
Investment tax credits ( 8,271 ) ( 5,451 ) ( 3,119 ) ( 8,271 ) ( 5,451 ) ( 3,119 )
ADITCs ( 29,831 ) — — ( 29,831 ) — —
Removal costs ( 5,109 ) ( 6,312 ) ( 4,900 ) ( 5,109 ) ( 6,312 ) ( 4,900 )
Capitalized overhead costs ( 2,100 ) ( 2,100 ) ( 3,150 ) ( 2,100 ) ( 2,100 ) ( 3,150 )
Capitalized repair costs ( 19,320 ) ( 24,360 ) ( 19,320 ) ( 19,320 ) ( 24,360 ) ( 19,320 )
State income taxes, net of federal benefit 20,463 15,802 18,139 20,500 16,081 18,352
Depreciation 18,705 18,041 11,897 18,705 18,041 11,897
Excess deferred income tax reversal ( 10,047 ) ( 10,684 ) ( 11,405 ) ( 10,047 ) ( 10,684 ) ( 11,405 )
Income tax return adjustments 1,844 ( 8,229 ) ( 2,692 ) 1,794 ( 7,732 ) ( 2,827 )
Real estate-related tax credits ( 7,499 ) ( 6,869 ) ( 6,362 ) — — —
Real estate-related investment distributions ( 1,611 ) ( 507 ) ( 812 ) — — —
Real estate-related investment amortization 5,203 5,570 4,355 — — —
Other, net 260 1,994 1,999 242 1,620 1,596
Total income tax expense $ 15,053 $ 27,296 $ 37,844 $ 17,681 $ 28,926 $ 39,908
Effective tax rate 4.9 % 9.5 % 12.7 % 5.9 % 10.1 % 13.5 %
The items comprising income tax expense are as follows:
IDACORP Idaho Power
2024 2023 2022 2024 2023 2022
(thousands of dollars)
Income taxes current:
Federal $ 19,252 $ ( 13,253 ) $ 31,668 $ 20,447 $ ( 4,757 ) $ 37,696
State 15,750 5,634 5,474 12,674 3,627 11,715
Total 35,002 ( 7,619 ) 37,142 33,121 ( 1,130 ) 49,411
Income taxes deferred:
Federal ( 73,565 ) ( 18,419 ) ( 13,696 ) ( 67,549 ) ( 19,086 ) ( 13,127 )
State ( 15,608 ) ( 3,269 ) 4,087 ( 12,735 ) ( 1,051 ) ( 2,202 )
Total ( 89,173 ) ( 21,688 ) ( 9,609 ) ( 80,284 ) ( 20,137 ) ( 15,329 )
Investment tax credits:
Deferred 102,946 55,644 8,945 102,946 55,644 8,945
Restored ( 38,102 ) ( 5,451 ) ( 3,119 ) ( 38,102 ) ( 5,451 ) ( 3,119 )
Total 64,844 50,193 5,826 64,844 50,193 5,826
Real estate-related investments at IFS 4,380 6,410 4,485 — — —
Total income tax expense $ 15,053 $ 27,296 $ 37,844 $ 17,681 $ 28,926 $ 39,908
93
Table of Contents
The components of the net deferred tax liability are as follows:
IDACORP Idaho Power
2024 2023 2024 2023
(thousands of dollars)
Deferred tax assets:
Regulatory liabilities $ 127,634 $ 108,641 $ 127,634 $ 108,641
Deferred compensation 24,782 24,288 24,782 24,288
Deferred revenue 64,592 58,860 64,592 58,860
Tax credits 66,783 52,010 53,859 49,734
Partnership investments 18,450 12,652 18,450 12,652
Retirement benefits 26,495 44,803 26,495 44,803
Other 24,869 26,537 24,826 26,416
Total 353,605 327,791 340,638 325,394
Deferred tax liabilities:
Property, plant and equipment 243,454 266,992 243,454 266,992
Regulatory assets 811,054 774,672 811,054 774,672
Power cost adjustment 2,747 29,742 2,747 29,742
Partnership investments 4,613 3,593 — —
Retirement benefits 75,716 94,231 75,716 94,231
Other 38,252 41,285 37,113 40,807
Total 1,175,836 1,210,515 1,170,084 1,206,444
Net deferred tax liabilities $ 822,231 $ 882,724 $ 829,446 $ 881,050
IDACORP's tax allocation agreement provides that each member of its consolidated group compute its income taxes on a separate company basis. Amounts payable or refundable are settled through IDACORP and are reported as taxes accrued or income taxes receivable, respectively, on the consolidated balance sheets of Idaho Power. See Note 1 - "Summary of Significant Accounting Policies" for further discussion of accounting policies related to income taxes.
Tax Credit Carryforwards
As of December 31, 2024, IDACORP had $7.5 million of general business credit carryforwards for federal income tax purposes and $ 59.3 million of Idaho investment tax credit carryforward. The general business credit carryforward period expires in 2044, and the Idaho investment tax credits expire from 2031 to 2038.
Uncertain Tax Positions
IDACORP and Idaho Power believe that they have no material income tax uncertainties for 2024 and prior tax years. Both companies recognize interest accrued related to unrecognized tax benefits as interest expense and penalties as other expense.
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 2023 and 2024 for federal and 2022 through 2024 for Idaho. In May 2009, IDACORP formally entered the U.S. Internal Revenue Service Compliance Assurance Process (CAP) program for its 2009 tax year and has remained in the CAP program for all subsequent years.
3. REGULATORY MATTERS
IDACORP’s and Idaho Power’s financial statements reflect the effects of the different ratemaking principles followed by the jurisdictions regulating Idaho Power. Included below is a summary of Idaho Power's regulatory assets and liabilities, as well as a discussion of notable regulatory matters.
Regulatory Assets and Liabilities
The application of accounting principles related to regulated operations sometimes results in Idaho Power recording some expenses and revenues in a different period than when an unregulated enterprise would record those expenses and revenues. Regulatory assets represent incurred costs that have been deferred because it is probable they will be recovered from customers
94
Table of Contents
through future rates. Regulatory liabilities represent obligations to make refunds to customers for previous collections, or represent amounts collected in advance of incurring an expense.
The following table presents a summary of Idaho Power’s regulatory assets and liabilities (in thousands of dollars):
As of December 31, 2024
Remaining
Amortization Period Earning a Return (1)
Not Earning a Return Total as of December 31,
Description 2024 2023
Regulatory Assets:
Income taxes (2)
$ — $ 811,054 $ 811,054 $ 774,672
Unfunded postretirement benefits (3)
— 18,824 18,824 87,318
Pension expense deferrals (4)
249,409 2,788 252,197 255,244
Power supply costs (5)
2025-2026 10,672 7,835 18,507 115,525
Fixed cost adjustment (5)
2025-2026 1,274 16,487 17,761 51,285
North Valmy plant settlements (5)
2025-2028 80,767 — 80,767 82,917
Jim Bridger plant settlement (5)
2025-2030 124,089 23,362 147,451 123,632
Wildfire Mitigation Plan deferral (5)
— 63,966 63,966 51,329
Asset retirement obligations (6)
— 37,842 37,842 35,270
Long-term service agreement 2025-2043 11,996 7,800 19,796 20,955
Other 2025-2056 3,317 35,890 39,207 54,903
Total $ 481,524 $ 1,025,848 $ 1,507,372 $ 1,653,050
Regulatory Liabilities:
Income taxes (7)
$ — $ 127,634 $ 127,634 $ 108,641
Depreciation-related excess deferred income taxes (8)
137,903 — 137,903 147,950
Removal costs (6)
— 166,181 166,181 175,369
Investment tax credits — 230,322 230,322 165,479
Deferred revenue-AFUDC (9)
197,889 53,053 250,942 228,671
Energy efficiency program costs 9,277 — 9,277 1,507
Power supply costs (5)
2025-2026 3,949 — 3,949 1,240
Tax reform accrual for future amortization (10)
— 42,266 42,266 40,891
Other 9,802 6,050 15,852 12,805
Total $ 358,820 $ 625,506 $ 984,326 $ 882,553
(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 2024 were 5.0% and 5.5%, respectively.
(2) Represents flow-through income tax accounting differences which have a corresponding deferred tax liability disclosed in Note 2 - "Income Taxes."
(3) Represents the unfunded obligation of Idaho Power’s pension and postretirement benefit plans, which are discussed in Note 11 - "Benefit Plans."
(4) Idaho Power records a regulatory asset for the difference between net periodic pension cost and pension cost considered for rate-making purposes relating to Idaho Power's defined benefit pension plan. In its Idaho jurisdiction, Idaho Power’s inclusion of pension costs for the establishment of retail rates is based upon contributions made to the pension plan. This regulatory asset account represents the difference between cumulative cash contributions and amounts collected in rates. Deferred costs are amortized into expense as the amounts are provided for in Idaho retail revenues.
(5) This item is discussed in more detail in this Note 3 - "Regulatory Matters."
(6) Asset retirement obligations and removal costs are discussed in Note 13 - "Asset Retirement Obligations (ARO)."
(7) Represents the tax gross-up related to the depreciation-related excess deferred income taxes and investment tax credits included in this table and has a corresponding deferred tax asset disclosed in Note 2 - "Income Taxes."
(8) In 2017, income tax reform reduced deferred income tax assets and liabilities. For depreciation-related temporary differences under the normalized tax accounting method, the resulting excess deferred taxes will flow back to customers ratably over the remaining regulatory lives of Idaho Power's plant assets under the alternative method provided in the statute.
(9) Idaho Power is collecting revenue in the Idaho jurisdiction for AFUDC on HCC relicensing costs but is deferring revenue recognition of the amounts collected until the license is issued and the asset is placed in service under the new license.
(10) Represents amount accrued under the May 2018 Idaho tax reform settlement stipulation (described below) for the future amortization of existing or future unspecified regulatory deferrals that would otherwise be a future liability recoverable from Idaho customers.
95
Table of Contents
Idaho Power’s regulatory assets and liabilities are typically amortized over the period in which they are reflected in customer rates. In the event that recovery of Idaho Power’s costs through rates becomes unlikely or uncertain, regulatory accounting would no longer apply to some or all of Idaho Power’s operations and the items above may represent stranded investments. If not allowed full recovery of these items, Idaho Power would be required to write off the applicable portion, which could have a materially adverse financial impact.
Power Cost Adjustment Mechanisms and Deferred Power Supply Costs
In both its Idaho and Oregon jurisdictions, Idaho Power's power cost adjustment mechanisms address the volatility of power supply costs and provide for annual adjustments to the rates charged to its retail customers. The power cost adjustment mechanisms compare Idaho Power's actual net power supply costs (primarily fuel and purchased power less wholesale energy sales) against net power supply costs being recovered in Idaho Power's retail rates. Under the power cost adjustment mechanisms, certain differences between actual net power supply costs incurred by Idaho Power and costs being recovered in retail rates are recorded as a deferred charge or accrued as a credit on the balance sheets for future recovery or refund. The power supply costs deferred or accrued primarily result from changes in the levels of Idaho Power's own hydroelectric generation, changes in contracted power purchase prices and volumes, changes in wholesale market prices and transaction volumes, and changes in fuel prices.
Idaho Jurisdiction Power Cost Adjustment Mechanism: In the Idaho jurisdiction, the annual PCA 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. The latter component ensures that, over time, the actual collection or refund of net power supply costs matches the amounts authorized. The PCA mechanism includes:
• a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers ( 95 percent) and Idaho Power ( 5 percent), with the exceptions of expenses associated with PURPA power purchases and demand response incentive payments, which are allocated 100 percent to customers; and
• a sales-based adjustment intended to ensure that power supply expense recovery resulting solely from sales volume changes does not distort the results of the mechanism.
The Idaho-jurisdiction PCA year runs from April 1 through March 31. Amounts deferred or accrued 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. The order deferred collection of $ 95.1 million of deferred PCA costs to the annual PCA collection period from June 1, 2024, to May 31, 2025. In May 2024, the IPUC issued an order approving a $ 35.7 million net decrease in PCA revenues as compared to the prior collection period, effective for the PCA collection period from June 1, 2024, to May 31, 2025. The net decrease in PCA revenues reflected forecasted improved hydropower generation during the April 2024 to March 2025 PCA deferral 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, 2024 $ ( 35.7 ) The $35.7 million net decrease in PCA rates reflects forecasted improved hydropower generation during the April 2024 to March 2025 PCA deferral period.
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.
Oregon Jurisdiction Power Cost Adjustment Mechanism: Idaho Power’s power cost recovery mechanism in Oregon has two components: 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
96
Table of Contents
power supply costs for the upcoming water year. The PCAM is a true-up filed annually in February. The PCAM 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 2024 Oregon-jurisdiction power supply costs were less than the amount recovered through the APCU, resulting in a $ 2.9 million difference between revenue and cost. In 2023, Oregon jurisdiction power supply costs were less than the amount recovered through the APCU, but because Idaho Power’s earnings in 2023 were below the threshold of plus or minus 100 basis points of its authorized return on year-end equity, the difference was not refunded to customers. Idaho Power's annual June 1 APCU rate changes were a decrease of $ 6.9 million, an increase of $ 7.7 million, and an increase of $ 4.0 million in 2024, 2023, and 2022, respectively.
Notable Idaho Base Rate Adjustments
Idaho base rates were most recently established through the 2024 Idaho Limited-Issue Rate Case, with rate changes effective January 1, 2025. Previously, base rates were established in a general rate case in 2023, which was resolved by the 2023 Settlement Stipulation.
2024 Idaho Limited-Issue Rate Case: Idaho Power filed the 2024 Idaho Limited-Issue Rate Case in May 2024, focused on revenue requirements for 2024 incremental plant additions and incremental ongoing labor costs. On December 31, 2024, the IPUC issued its order (Order) in the 2024 Idaho Limited-Issue Rate Case, providing that Idaho Power implement revised tariff schedules designed to increase annual Idaho-jurisdictional retail revenue by $ 50.6 million, or 3.7 percent, effective January 1, 2025. The Order was subsequently modified by an errata issued on January 21, 2025, which reduced the revenue increase called for under the Order to $ 50.1 million. The Order did not adjust the overall rate of return approved in the 2023 Settlement Stipulation or make changes to Idaho regulatory mechanisms such as the PCA, FCA, and energy efficiency rider. The Order also did not preclude Idaho Power from filing another rate case in Idaho at any time in the future.
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 the 2023 Settlement Stipulation settling the general rate case. The order and the 2023 Settlement Stipulation provided for the following significant terms, among other items:
• Implementation of 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 was 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 PCA including establishment of a new level of base net power supply expense of $ 484.9 million, which included the transfer of $ 168.3 million from then-current PCA rates to base rates;
• Modifications to the 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-jurisdiction return on year-end equity (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; and
• 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.
97
Table of Contents
In 2024, Idaho Power recorded amortization of $ 29.8 million of ADITC. Accordingly, at December 31, 2024, $ 77 million 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 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 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. Idaho Power’s base rates and ADITC and revenue sharing mechanism were modified by the 2023 Settlement Stipulation, as described above.
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 plant. Idaho Power ceased coal-fired operations at unit 1 in 2019, as planned, and these settlement stipulations provide for Idaho Power to cease participation in 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 the North Valmy plant as described above, (3) a balancing account to track the incremental costs, benefits, and required regulatory accounting associated with ceasing participation in coal-fired operations at the North Valmy plant, and (4) increased customer rates related to the associated incremental annual levelized revenue requirement. If actual costs incurred differ from forecasted amounts included in the settlement stipulation, collection or refund of any differences would be subject to regulatory approval.
Jim Bridger Power Plant Rate Base Adjustment and Recovery and Non-Fuel O&M Expenses: 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 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 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 O&M cost savings. The Bridger Order deemed all coal-related investments at the Jim Bridger plant from 2012 through 2020 to be prudent for recovery.
In the Bridger Order, the IPUC reduced Idaho Power's requested rate increase from 2.1 percent in its amended filing to 1.5 percent, a reduction from a requested $ 27.1 million to $ 18.8 million annually. The Bridger Order provides that any uncollected amount resulting from the reduction in the rate increase will be recorded in the balancing account for future recovery with no carrying charge. 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.
In September 2024, the IPUC issued an order authorizing Idaho Power to include all non-fuel O&M expenses associated with operations of the Jim Bridger plant in the balancing account previously established to track the incremental costs, benefits, and required regulatory accounting associated with ceasing participation in coal-fired operations at the Jim Bridger plant, which resulted in a $ 11.3 million deferral of costs in 2024 to a regulatory asset account for future recovery.
98
Table of Contents
Other Notable Idaho Regulatory Matters
Fixed Cost Adjustment: 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 2024, the IPUC issued an order approving a $ 11.7 million increase in recovery from the FCA from $ 25.1 million to $ 36.8 million for the 2023 FCA deferral, with new rates effective for the period from June 1, 2024, to May 31, 2025. 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:
FCA Year Period Rates in Effect Annual Amount
(in millions)
2023 June 1, 2024 to May 31, 2025 $ 36.8
2022 June 1, 2023 to May 31, 2024 $ 25.1
2021 June 1, 2022 to May 31, 2023 $ 35.2
Wildfire Mitigation Cost Recovery: 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 a result of the 2023 Settlement Stipulation, in 2024, Idaho Power recovered and amortized $ 3.8 million of its WMP deferral balance through 2022 of $ 26.7 million. As of December 31, 2024, Idaho Power’s deferral balance of Idaho-jurisdiction costs related to the WMP was $ 63.2 million, of which $ 22.9 million is approved to be amortized and collected in Idaho rates. In January 2024, the OPUC authorized Idaho Power to defer the Oregon jurisdictional share of costs associated with the WMP for the 12-month period beginning December 29, 2022, and ending on December 28, 2023, resulting in an Oregon-jurisdiction deferral balance of approximately $ 750 thousand.
On February 13, 2025, Idaho Power filed an application with the IPUC for review of the Company's current WMP and request for an order authorizing the Company to defer through calendar year 2025, or until the Company's next general rate case goes into effect, newly identified costs associated with expanded wildfire mitigation efforts.
Notable Oregon Regulatory Matters
Oregon Base Rate Changes: Oregon base rates were most recently established in a general rate case that Idaho Power filed with the OPUC in December 2023. In September 2024, the OPUC issued an order approving the 2024 Oregon Settlement Stipulations, which are settlement stipulations among Idaho Power and intervening parties settling the general rate case. The OPUC order and the 2024 Oregon Settlement Stipulations contain the following significant terms, among other items:
• Implementation of revised tariff schedules designed to increase annual Oregon-jurisdiction revenue by $ 6.7 million, or 12.14 percent; and
• A 9.5 percent Oregon-jurisdiction return on year-end equity and a 7.302 percent Oregon-jurisdiction authorized rate of return based on a 5.104 percent cost of debt and capital structure of 50 percent debt and 50 percent equity, applied to an Oregon-jurisdictional rate base of approximately $ 188.9 million. 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 below.
Rate changes from the 2024 Oregon Settlement Stipulations became effective on October 15, 2024. The 2024 Oregon Settlement Stipulations do not preclude Idaho Power from filing another general rate case or other limited issue proceeding in Oregon at any time in the future.
99
Table of Contents
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:
Period Rates in Effect OATT Rate (per kW-year)
October 1, 2024 to September 30, 2025 $ 31.55
October 1, 2023 to September 30, 2024 $ 30.74
October 1, 2022 to September 30, 2023 $ 31.42
October 1, 2021 to September 30, 2022 $ 31.19
Idaho Power's current OATT rate is based on a net annual transmission revenue requirement of $ 137.9 million, which represents the OATT formulaic determination of Idaho Power's net cost of providing OATT-based transmission service.
4. REVENUES
The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power (in thousands):
Year Ended December 31,
2024 2023 2022
Electric utility operating revenues:
Revenue from contracts with customers $ 1,768,881 $ 1,639,612 $ 1,557,974
Alternative revenue programs and derivative revenues 54,084 123,282 83,066
Total electric utility operating revenues $ 1,822,965 $ 1,762,894 $ 1,641,040
Revenues from Contracts with Customers
Revenues from contracts with customers are primarily related to Idaho Power’s regulated tariff-based sales of energy or related services. Generally, tariff-based sales do not involve a written contract, but are classified as revenues from contracts with customers. Idaho Power assesses revenues on a contract-by-contract basis to determine the nature, amount, timing, and uncertainty, if any, of revenues being recognized.
100
Table of Contents
The following table presents revenues from contracts with customers disaggregated by revenue source (in thousands):
Year Ended December 31,
2024 2023 2022
Revenues from contracts with customers:
Retail revenues:
Residential (includes $( 2,686 ), $ 37,233 , and $ 22,595 , respectively, related to the FCA (1) )
$ 700,586 $ 684,649 $ 645,236
Commercial (includes $( 170 ), $ 1,338 , and $ 922 , respectively, related to the FCA (1) )
397,385 378,330 347,970
Industrial 267,211 244,538 217,368
Irrigation 196,401 173,929 170,964
Deferred revenue related to HCC relicensing AFUDC (2)
( 8,803 ) ( 8,780 ) ( 8,780 )
Total retail revenues 1,552,780 1,472,666 1,372,758
Less: FCA mechanism revenues (1)
2,856 ( 38,571 ) ( 23,517 )
Wholesale energy sales 73,908 63,421 66,519
Transmission wheeling-related revenues 79,173 80,357 80,527
Energy efficiency program revenues 27,581 31,948 33,197
Other revenues from contracts with customers 32,583 29,791 28,490
Total revenues from contracts with customers $ 1,768,881 $ 1,639,612 $ 1,557,974
(1) The FCA mechanism is an alternative revenue program in the Idaho jurisdiction and does not represent revenue from contracts with customers.
(2) The IPUC allows Idaho Power to recover a portion of the AFUDC on construction work in progress related to the HCC relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service. Idaho Power is collecting $ 8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.
Retail Revenues: Idaho Power’s retail revenues primarily relate to the sale of electricity to customers based on regulated tariff-based prices. Idaho Power recognizes retail revenues in amounts for which it has the right to invoice the customer in the period when energy is delivered or services are provided to customers. The total energy price generally has a fixed component related to having service available and a usage-based component related to the demand, delivery, and consumption of energy. The revenues recognized reflect the consideration Idaho Power expects to be entitled to in exchange for energy and services. Retail customers are classified as residential, commercial, industrial, or irrigation. Approximately 95 percent of Idaho Power's retail revenue originates from customers located in Idaho, with the remainder originating from customers located in Oregon. Idaho Power’s retail customer rates are based on Idaho Power’s cost of service and are determined through general rate case proceedings, settlement stipulations, and other filings with the IPUC and OPUC. Changes in rates and changes in customer demand are typically the primary causes of fluctuations in retail revenue from period to period. The primary influences on changes in customer demand for electricity are weather, economic conditions (including growth in the number of Idaho Power customers), and energy efficiency. Idaho Power's utility revenues are not earned evenly during the year.
Retail revenues are billed monthly based on meter readings taken throughout the month. Payments for amounts billed are generally due from the customer within 15 days of billing. Idaho Power accrues estimated unbilled revenues for energy or related services delivered to customers but not yet billed at period-end based on actual meter readings at period-end and estimated rates.
Residential Customers : Idaho Power’s energy sales to residential customers typically peak during the summer cooling season and winter heating season. Extreme temperatures increase sales to residential customers who use electricity for cooling and heating, compared with normal temperatures. Idaho Power's rate structure provides for higher rates during the summer when overall system loads are at their highest, and includes tiers such that rates increase as a customer's consumption level increases. These seasonal and tiered rate structures contribute to the seasonal fluctuations in revenues and earnings. Economic and demographic conditions can also affect residential customer demand; strong job growth and population growth in Idaho Power’s service area have led to higher customer growth in recent years. Residential demand is also impacted by energy efficiency initiatives. Idaho Power’s FCA mechanism mitigates some of the fluctuations caused by weather and energy efficiency initiatives.
101
Table of Contents
Commercial Customers : Most businesses are included in Idaho Power's commercial customer class, as are small industrial companies, and public street and highway lighting accounts. Idaho Power’s commercial customers are less influenced by weather conditions than residential customers, although weather does still affect commercial customer energy use. Economic conditions, including manufacturing activity levels, and energy efficiency initiatives also affect energy use of commercial customers.
Industrial Customers : Industrial customers consist of large industrial companies, including special contract customers. Energy use of industrial customers is primarily driven by economic conditions, with weather having little impact on this customer class.
Irrigation Customers : Irrigation customers use electricity to operate irrigation pumps, primarily during the agricultural growing season. The amount and timing of precipitation as well as temperature levels affect the timing and amounts of sales to irrigation customers, with increased precipitation during the agricultural growing season generally resulting in decreased sales.
Wholesale Energy Sales: 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. Idaho Power's wholesale energy sales depend largely on the availability of generation resources in excess of the amount necessary to serve customer loads as well as adequate market power prices and demand at the time when those resources are available. A reduction in any of those factors may lead to lower wholesale energy sales.
Transmission Wheeling-Related Revenues: As a public utility under the FPA, Idaho Power has the authority to provide cost-based wholesale and retail access transmission services under its OATT. Services under the OATT are offered on a nondiscriminatory basis such that all potential customers have an equal opportunity to access the transmission system. Idaho Power’s transmission revenue is primarily related to third parties reserving capacity on Idaho Power’s transmission system to transmit electricity through Idaho Power’s service area. Reservations are predominantly short-term contracts or on-demand when available, but may be part of a long-term capacity contract. Transmission wheeling-related revenues consist of a single performance obligation satisfied as capacity on Idaho Power’s transmission system is provided to the third party. Transmission wheeling-related revenues are affected by changes in Idaho Power’s OATT rate and customer demand. Demand for transmission services can be affected by regional market factors, such as loads and generation of utilities in Idaho Power’s region.
Energy Efficiency Program Revenues: Idaho Power collects most of its energy efficiency program costs through an energy efficiency rider on customer bills. The rider collections are deferred until expenditures are incurred. 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. 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, 2024, Idaho Power's energy efficiency rider balances were a $ 7.6 million regulatory liability in the Idaho jurisdiction and a $ 1.7 million regulatory liability in the Oregon jurisdiction.
Alternative Revenue Programs and Other Revenues
While revenues from contracts with customers make up most of Idaho Power’s revenues, the IPUC has authorized the use of an additional regulatory mechanism, the FCA mechanism, which may increase or decrease tariff-based customer rates. The FCA mechanism is described in Note 3 - "Regulatory Matters." The FCA mechanism revenues include only the initial recognition of FCA revenues when they meet the regulator-specified conditions for recognition. Revenue from contracts with customers excludes the portion of the tariff price representing FCA revenues that Idaho Power initially recorded in prior periods when revenues met regulator-specified conditions. When Idaho Power includes those amounts in the price of utility service and billed to customers, Idaho Power records such amounts as recovery of the associated regulatory asset or liability and not as revenues.
Derivative revenues include gains from settled electricity swaps and sales of electricity under forward sales contracts that are bundled with 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. For more information on settled electricity swaps, see Note 15 - "Derivative Financial Instruments."
102
Table of Contents
The table below presents the FCA mechanism revenues and derivative revenues (in thousands):
Year Ended December 31,
2024 2023 2022
Alternative revenue programs and derivative revenues:
FCA mechanism revenues $ ( 2,856 ) $ 38,571 $ 23,517
Derivative revenues 56,940 84,711 59,549
Total alternative revenue programs and derivative revenues $ 54,084 $ 123,282 $ 83,066
IDACORP's Other Operating Revenues
Other operating revenues on IDACORP's consolidated statements of income are primarily comprised of revenues from IDACORP’s subsidiary, Ida-West. Ida-West operates small PURPA-qualifying hydropower generation projects.
103
Table of Contents
5. LONG-TERM DEBT
The following table summarizes IDACORP's and Idaho Power's long-term debt at December 31 (in thousands of dollars):
2024 2023
First mortgage bonds:
1.90 % Series due 2030
$ 80,000 $ 80,000
6.00 % Series due 2032
100,000 100,000
4.99 % Series due 2032
23,000 23,000
5.50 % Series due 2033
70,000 70,000
5.50 % Series due 2034
50,000 50,000
5.875 % Series due 2034
55,000 55,000
5.20 % Series due 2034
300,000 —
5.30 % Series due 2035
60,000 60,000
6.30 % Series due 2037
140,000 140,000
6.25 % Series due 2037
100,000 100,000
4.85 % Series due 2040
100,000 100,000
4.30 % Series due 2042
75,000 75,000
5.06 % Series due 2042
25,000 25,000
5.06 % Series due 2043
60,000 60,000
4.00 % Series due 2043
75,000 75,000
3.65 % Series due 2045
250,000 250,000
4.05 % Series due 2046
120,000 120,000
4.20 % Series due 2048
450,000 450,000
5.20 % Series due 2053
62,000 62,000
5.50 % Series due 2053
400,000 400,000
5.80 % Series due 2054
350,000 350,000
Total first mortgage bonds 2,945,000 2,645,000
Pollution control revenue bonds:
1.45 % Series due 2024
— 49,800
1.70 % Series due 2026 (1)
116,300 116,300
Total pollution control revenue bonds 116,300 166,100
American Falls Variable Rate bond guarantee due 2025 19,885 19,885
Unamortized premium/discount and issuance costs ( 7,523 ) ( 5,395 )
Total IDACORP and Idaho Power outstanding debt (2)
3,073,662 2,825,590
Current maturities of long-term debt ( 19,885 ) ( 49,800 )
Total long-term debt $ 3,053,777 $ 2,775,790
(1) Sweetwater County Pollution Control Revenue Bonds are secured by the first mortgage bonds, bringing the total first mortgage bonds outstanding at December 31, 2024, to $ 3.061 billion .
(2) At December 31, 2024 and 2023, the overall effective cost rate of Idaho Power's outstanding debt was 5.03 percent and 4.98 percent, respectively.
At December 31, 2024, the maturities for the aggregate amount of IDACORP and Idaho Power long-term debt outstanding were as follows (in thousands of dollars):
2025 2026 2027 2028 2029 Thereafter
$ 19,885 $ 116,300 $ — $ — $ — $ 2,945,000
104
Table of Contents
Long-Term Debt Issuances, Maturities, and Redemptions
On February 3, 2025, Idaho Power repaid $ 19.9 million in aggregate principal amount of maturing variable rate American Falls Bonds.
On December 2, 2024, Idaho Power repaid $ 49.8 million in aggregate principal amount of maturing 1.45 % Humboldt County Pollution Control Revenue Bonds.
On August 12, 2024, under the shelf registration statement with the SEC, Idaho Power issued $ 300 million in aggregate principal amount of 5.20 % first mortgage bonds, secured medium-term notes, Series M, maturing on August 15, 2034.
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 with certain institutional purchasers relating to the sale by Idaho Power of $ 170 million of first mortgage bonds, secured medium-term notes, Series N (Series N Notes), as described in more detail below.
Idaho Power First Mortgage Bonds
Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC. In February and March 2024, Idaho Power received orders from the IPUC, OPUC, and WPSC authorizing the company to issue and sell from time to time up to $ 1.2 billion in aggregate principal amount of debt securities and first mortgage bonds, subject to conditions specified in the orders. Authority from the IPUC is effective through December 31, 2026, subject to extensions upon request to the IPUC. The OPUC's and WPSC's orders do not impose a time limitation for issuances, but the OPUC order does impose a number of other conditions, including a requirement that the interest rates for the debt securities or first mortgage bonds fall within either (a) designated spreads over comparable U.S. Treasury rates or (b) a maximum interest rate limit of 8.0 percent. At December 31, 2024, $ 900 million remained available for debt issuance under the regulatory orders.
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. The issuance of first mortgage bonds requires that Idaho Power meet interest coverage and security provisions set forth in Idaho Power's Indenture of Mortgage and Deed of Trust, dated as of October 1, 1937, as amended and supplemented from time to time (Indenture). Future issuances of first mortgage bonds are subject to satisfaction of covenants and security provisions set forth in the Indenture, market conditions, regulatory authorizations, and covenants contained in other financing agreements.
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). The Fiftieth Supplemental Indenture provides for, among other items, the issuance of up to $1.2 billion in aggregate principal amount of Series M Notes pursuant to the Indenture. In October 2022, Idaho Power entered into the Fifty-first Supplemental Indenture to increase the limit of the amount of first mortgage bonds at any one time outstanding to $ 3.5 billion as provided in the Indenture. The amount issuable is also restricted by property, earnings, and other provisions of the Indenture and supplemental indentures to the Indenture. The Indenture requires that Idaho Power's net earnings be at least twice the annual interest requirements on all outstanding debt of equal or prior rank, including the bonds that Idaho Power may propose
105
Table of Contents
to issue. Under certain circumstances, the net earnings test does not apply, including the issuance of refunding bonds to retire outstanding bonds that mature in less than two years or that are of an equal or higher interest rate, or prior lien bonds.
In December 2022, Idaho Power entered into the Bond Purcha se Agreement with certain institutional purchasers, relating to the sale by Idaho Power of $ 170 million in aggregate principal amount of Series N Notes. Also in December 2022, Idaho Power entered into the Fifty-second Supplemental Indenture, dated effective as of December 30, 2022, to the Indenture (Fifty-second Supplemental Indenture). The Fifty-second Supplemental Indenture provided for, among other items, the issuance of Series N Notes pursuant to the Indenture. The Series N Notes consist of:
• $ 23 million in aggregate principal amount of Idaho Power’s 4.99% first mortgage bonds due 2032, Series N Notes, Tranche 1 (Tranche 1 Bonds);
• $ 25 million in aggregate principal amount of Idaho Power’s 5.06% first mortgage bonds due 2042, Series N Notes, Tranche 2 (Tranche 2 Bonds);
• $ 60 million in aggregate principal amount of Idaho Power’s 5.06% first mortgage bonds due 2043, Series N Notes, Tranche 3 (Tranche 3 Bonds); and
• $ 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 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. First mortgage bonds issued in the future will also be secured by the mortgage of the Indenture. The lien constitutes a first mortgage on all the properties of Idaho Power, subject only to certain limited exceptions including liens for taxes and assessments that are not delinquent and minor excepted encumbrances. Certain of the properties of Idaho Power are subject to easements, leases, contracts, covenants, workmen's compensation awards, and similar encumbrances and minor defects common to properties. The mortgage of the Indenture does not create a lien on revenues or profits, or notes or accounts receivable, contracts or choses in action, except as permitted by law during a completed default, securities, or cash, except when pledged, or merchandise or equipment manufactured or acquired for resale. The mortgage of the Indenture creates a lien on the interest of Idaho Power in property subsequently acquired, other than excepted property, subject to limitations in the case of consolidation, merger, or sale of all or substantially all of the assets of Idaho Power. The Indenture requires Idaho Power to spend or appropriate 15 percent of its annual gross operating revenues for maintenance, retirement, or amortization of its properties. Idaho Power may, however, anticipate or make up these expenditures or appropriations within the 5 years that immediately follow or precede a particular year.
As of December 31, 2024, the maximum amount of additional first mortgage bonds Idaho Power could issue was approximately $ 439 million. Separately, the Indenture also limits the amount of additional first mortgage bonds that Idaho Power may issue to the sum of (a) the principal amount of retired first mortgage bonds and (b) 60 percent of total unfunded property additions, as defined in the Indenture. As of December 31, 2024, Idaho Power could issue approximately $ 2.1 billion of additional first mortgage bonds based on retired first mortgage bonds and total unfunded property additions.
106
Table of Contents
6. COMMON STOCK
IDACORP Common Stock
The following table summarizes IDACORP common stock transactions during the last three years and shares reserved at December 31, 2024:
Shares issued Shares reserved
2024 2023 2022 December 31, 2024
Balance at beginning of year 50,615,237 50,561,892 50,516,479
Dividend reinvestment and stock purchase plan 63,084 — — 2,778,618
Employee savings plan — — — 3,567,954
At-the-market offering program (1)
— — — See table note (1)
Equity forward sale agreements 3,221,982 — — —
Long-term incentive and compensation plan (2)
61,997 53,345 45,413 1,099,512
Continuous equity program (inactive) — — — 3,000,000
Balance at end of year 53,962,300 50,615,237 50,561,892
(1) At December 31, 2024, IDACORP had reserved shares of its common stock through the ATM offering program, up to an aggregate gross sales price of $ 300 million. For more details, see "At-the-Market Offering Program" below in this Note 6.
(2) During 2024, 2023, and 2022, IDACORP granted 103,771 , 75,295 , and 73,131 restricted stock unit awards, respectively, to employees and 15,616 , 12,459 , and 12,021 shares of common stock, respectively, to directors. During 2024, 2023, and 2022, IDACORP issued 61,997 , 53,345 , and 45,413 shares of common stock, respectively, using original issuances of shares pursuant to the LTICP, including 10,571 , 13,842 , and 8,674 shares of common stock, respectively, issued to members of the board of directors.
Dividend Reinvestment and Stock Purchase Plan: Effective January 1, 2024, IDACORP instructed the plan administrator of the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan to use original issuance of common stock from IDACORP, as opposed to market purchases of IDACORP common stock, to acquire shares of IDACORP common stock for the plan. However, IDACORP may determine at any time to resume market purchases of common stock under the plan.
Employee Savings Plan: As directed by IDACORP, the plan administrator of the Idaho Power Company Employee Savings Plan used market purchases of IDACORP common stock to acquire shares of IDACORP common stock for the plan.
At-the-Market Offering Program: On May 20, 2024, IDACORP entered into an Equity Distribution Agreement (EDA) pursuant to which it may issue, offer, and sell, from time to time, up to an aggregate gross sales price of $ 300 million of shares of its common stock through an ATM offering program, which includes the ability to enter into FSAs. In 2024, IDACORP did not issue common stock pursuant to the EDA.
In 2024, IDACORP executed FSAs under its ATM offering program with various counterparties who borrowed and sold 801,914 shares of IDACORP’s common stock at an aggregate gross sales price of $ 92.4 million. At December 31, 2024, $ 207.6 million in shares of IDACORP’s common stock remained available for issuance through its ATM offering program. At December 31, 2024, IDACORP could have settled the FSAs with physical delivery of 801,914 shares of common stock to the counterparty in exchange for cash of $ 91.6 million.
At December 31, 2024, IDACORP had the following FSAs outstanding under its ATM offering program (in thousands of dollars, except for shares and forward price amounts):
Maturity Shares Net Proceeds Available Forward Price
November 12, 2025 500,000 $ 56,912 $ 113.82
December 31, 2025 301,914 34,669 114.83
Total 801,914 $ 91,581 $ 114.20
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 elects to physically settle the
107
Table of Contents
FSAs, IDACORP will issue shares of common stock to the various counterparties at the then-applicable forward sale price and receive issuance proceeds at that time.
At December 31, 2024, IDACORP could have settled the FSAs with net receipt from various counterparties of approximately $ 1.2 million of cash or approximately 11,270 shares of common stock, 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.
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 by the counterparty to the underwriters under FSAs. The forward sale price was initially $ 90.016 per share and was subject to certain adjustments in accordance with the terms of the FSAs through the date of settlement.
On May 14, 2024, IDACORP partially settled the FSAs with physical delivery of 2,542,442 shares of common stock to the counterparty in exchange for cash of $ 230.0 million. On November 4, 2024, IDACORP settled the remainder of the FSAs with physical delivery of 679,540 shares of common stock to the counterparty in exchange for cash of $ 62.2 million. Settlement of the FSAs are reflected in IDACORP’s equity.
FSA Earnings Per Shares Dilution: 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, 2024 and 2023, approximately 47,000 and 34,000 incremental shares, respectively, 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.
Idaho Power Common Stock
During 2024, IDACORP contributed $ 200 million of additional capital to Idaho Power. No additional shares of Idaho Power common stock were issued.
Restrictions on Dividends
Idaho Power’s ability to pay dividends on its common stock held by IDACORP and IDACORP’s ability to pay dividends on its common stock are limited to the extent payment of such dividends would violate the covenants in their respective credit facilities or Idaho Power’s Statement of Policy and Code of Conduct. A covenant under IDACORP’s credit facility and Idaho Power’s credit facility requires IDACORP and Idaho Power to maintain leverage ratios of consolidated indebtedness to consolidated total capitalization, as defined therein, of no more than 65 percent at the end of each fiscal quarter. At December 31, 2024, the leverage ratios for IDACORP and Idaho Power were 48 percent and 50 percent, respectively. Based on these restrictions, IDACORP’s and Idaho Power’s dividends were limited to $ 1.7 billion and $ 1.4 billion, respectively, at December 31, 2024. There are additional facility covenants, subject to exceptions, that prohibit or restrict the sale or disposition of property without consent and any agreements restricting dividend payments to IDACORP and Idaho Power from any material subsidiary. At December 31, 2024, IDACORP and Idaho Power were in compliance with those covenants.
Idaho Power’s Statement of Policy and Code of Conduct relating to transactions between and among Idaho Power, IDACORP, and other affiliates, which was approved by the IPUC in April 2008, provides that Idaho Power will not pay any dividends to IDACORP that will reduce Idaho Power’s common equity capital below 35 percent of its total adjusted capital without IPUC approval. At December 31, 2024, Idaho Power's common equity capital was 50 percent of its total adjusted capital. Further, Idaho Power must obtain approval from the OPUC before it can directly or indirectly loan funds or issue notes or give credit on its books to IDACORP.
108
Table of Contents
Idaho Power’s articles of incorporation contain restrictions on the payment of dividends on its common stock if preferred stock dividends are in arrears. As of the date of this report, Idaho Power has no preferred stock outstanding.
In addition to contractual restrictions on the amount and payment of dividends, the FPA prohibits the payment of dividends from "capital accounts." The term "capital account" is undefined in the FPA or its regulations, but Idaho Power does not believe the restriction would limit Idaho Power's ability to pay dividends out of current year earnings or retained earnings.
7. SHARE-BASED COMPENSATION
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. At December 31, 2024, the maximum number of shares available under the LTICP was 110,302 .
Restricted Stock Unit and Performance-Based Unit Awards
Restricted stock unit awards have three -year vesting periods, entitle the recipients to dividend equivalents, and units do not have voting rights until the units are vested and settled in shares. Unvested awards are restricted as to disposition and subject to forfeiture under certain circumstances. The fair value of these awards is based on the closing market price of common stock on the grant date and is charged to compensation expense over the vesting period, reduced for any forfeitures during the vesting period.
Performance-based unit awards have three-year vesting periods and do not have voting rights until the units are vested and settled in shares. Unvested awards are restricted as to disposition, subject to forfeiture under certain circumstances, and subject to the attainment of specific performance conditions over the three-year vesting period. The performance conditions are two equally-weighted metrics, cumulative earnings per share (CEPS) and total shareholder return (TSR) relative to a peer group. Depending on the level of attainment of the performance conditions and the year issued, the final number of shares awarded can range from zero to 200 percent of the target award. Dividend equivalents are accrued during the vesting period and paid out based on the final number of shares awarded.
The grant-date fair value of the CEPS portion is based on the closing market value at the date of grant, reduced by the loss in time-value of the estimated future dividend payments. The fair value of this portion of the awards is charged to compensation expense over the requisite service period based on the estimated achievement of performance targets, reduced for any forfeitures during the vesting period. The grant-date fair value of the TSR portion is estimated using the market value at the date of grant and a statistical model that incorporates the probability of meeting performance targets based on historical returns relative to the peer group. The fair value of this portion of the awards is charged to compensation expense over the requisite service period, provided the requisite service period is rendered, regardless of the level of TSR metric attained.
A summary of restricted stock units and performance-based units award activity is presented below. Idaho Power unit amounts represent the portion of IDACORP amounts related to Idaho Power employees:
IDACORP Idaho Power
Number of
Units Weighted-Average
Grant Date
Fair Value Number of
Units Weighted-Average
Grant Date
Fair Value
Nonvested units at January 1, 2024 210,100 $ 97.35 209,224 $ 97.34
Units granted 124,893 85.80 124,375 85.80
Units forfeited ( 7,454 ) 92.57 ( 7,454 ) 92.57
Units vested ( 92,730 ) 88.80 ( 92,568 ) 88.80
Nonvested units at December 31, 2024 234,809 $ 94.73 233,577 $ 94.73
The total fair value of shares vested was $ 8.5 million in 2024, $ 7.5 million in 2023, and $ 6.9 million in 2022. At December 31, 2024, IDACORP had $ 9.7 million of total unrecognized compensation cost related to nonvested share-based compensation, nearly all of which was Idaho Power's share. These costs are expected to be recognized over a weighted-average period of 1.7 years. IDACORP uses original issue shares for these awards.
109
Table of Contents
In 2024, a total of 15,616 shares were awarded to directors at an average grant date fair value of $ 88.11 per share. Directors elected to defer receipt of 5,426 of these shares, which are being held as deferred stock units with dividend equivalents reinvested in additional stock units.
Compensation Expense: The following table shows the compensation cost recognized in income and the tax benefits resulting from the LTICP, as well as the amounts allocated to Idaho Power for those costs associated with Idaho Power’s employees (in thousands of dollars):
IDACORP Idaho Power
2024 2023 2022 2024 2023 2022
Compensation cost $ 11,708 $ 9,578 $ 10,279 $ 11,608 $ 9,508 $ 10,204
Income tax benefit 3,014 2,465 2,646 2,988 2,447 2,627
No equity compensation costs have been capitalized. These costs are primarily reported within "Other operations and maintenance" expense on the consolidated statements of income.
8. EARNINGS PER SHARE
The following table presents the computation of IDACORP’s basic and diluted earnings per share for the years ended December 31, 2024, 2023, and 2022 (in thousands, except for per share amounts):
Year Ended December 31,
2024 2023 2022
Numerator:
Net income attributable to IDACORP, Inc. $ 289,174 $ 261,195 $ 258,982
Denominator:
Weighted-average common shares outstanding - basic 52,543 50,717 50,658
Effect of dilutive securities (1)
72 89 41
Weighted-average common shares outstanding - diluted 52,615 50,806 50,699
Basic earnings per share $ 5.50 $ 5.15 $ 5.11
Diluted earnings per share $ 5.50 $ 5.14 $ 5.11
(1) The effect of dilutive securities amount includes approximately 47 thousand and 34 thousand incremental shares related to FSAs as of December 31, 2024 and 2023, respectively. See Note 6 - "Common Stock" for additional information concerning IDACORP's FSAs.
9. COMMITMENTS
Purchase Obligations
At December 31, 2024, Idaho Power had the following long-term commitments relating to purchases of energy, capacity, transmission rights, and fuel (in thousands of dollars):
2025 2026 2027 2028 2029 Thereafter
Cogeneration, power production, and battery storage $ 340,395 $ 372,123 $ 407,819 $ 455,245 $ 447,778 $ 5,040,605
Fuel 112,045 58,181 26,559 26,665 26,745 247,770
As of December 31, 2024, Idaho Power had power purchase obligations with respect to 1,524 MW nameplate capacity of online PURPA and non-PURPA projects, with an additional 1,048 MW nameplate capacity of projects that are scheduled to be online through 2027. 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 $ 294 million in 2024, $ 258 million in 2023, and $ 238 million in 2022.
In February 2025, Idaho Power entered into a 100 MW solar facility PPA and agreement to purchase the storage capacity from a 100 MW battery storage facility; both with a scheduled online date of April 2027 and 20 -year terms. Also, in February 2025, Idaho Power entered into agreements providing ownership of 250 MW and rights to 250 MW of transmission capacity on the
110
Table of Contents
SWIP-N in Nevada, with an expected online date in late 2027 or in 2028. The agreements collectively increased Idaho Power's contractual obligations by $ 1.1 billion over their respective terms.
Idaho Power also has the following long-term commitments (in thousands of dollars):
2025 2026 2027 2028 2029 Thereafter
Joint-operating agreement payments (1)
$ 5,266 $ 5,266 $ 5,266 $ 5,266 $ 5,266 $ 26,331
Easements and other payments (1)
2,163 2,209 2,255 2,302 2,351 12,515
Maintenance, service, and materials agreements (1)(2)
324,817 492,185 352,817 7,376 7,103 37,575
FERC and other industry-related fees (1)
17,512 17,183 16,416 16,272 16,218 82,560
(1) Approximately $ 53 million, $ 1 million, $ 14 million, and $ 164 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.
(2) As of December 31, 2024, Idaho Power had a remaining $ 904 million commitment related to contracts to acquire and own capacity and generation resources with in-service dates in 2026 and 2027.
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, 2024, IDACORP had a commitment to invest an additional $ 5.2 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 2024, 2023, and 2022.
Acquisition of Additional Interest in B2H 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 B2H 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.
Guarantees
Idaho Power guarantees its portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third portion. This guarantee, which is renewed annually with the Wyoming Department of Environmental Quality (WDEQ), was $ 47.5 million at December 31, 2024, representing IERCo's one-third share of BCC's total reclamation obligation of $ 142.5 million. BCC has a reclamation trust fund set aside specifically for the purpose of paying these reclamation costs. At December 31, 2024, the value of BCC's reclamation trust fund exceeded WDEQ's guarantee requirement for the total reclamation obligation. 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. Because of the existence of the fund and the ability to apply a per-ton surcharge, the estimated fair value of this guarantee is minimal.
IDACORP and Idaho Power enter into financial agreements and power purchase and sale agreements that include indemnification provisions relating to various forms of claims or liabilities that may arise from the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated. IDACORP and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities. As of December 31, 2024, 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. Neither IDACORP nor Idaho Power has recorded any liability on their respective consolidated balance sheets with respect to these indemnification obligations.
111
Table of Contents
10. CONTINGENCIES
IDACORP and Idaho Power have in the past and expect in the future to become involved in various claims, controversies, disputes, and other contingent matters, some of which involve litigation and regulatory or other contested proceedings. The ultimate resolution and outcome of litigation and regulatory proceedings is inherently difficult to determine, particularly where (a) the remedies or penalties sought are indeterminate, (b) the proceedings are in the early stages or the substantive issues have not been well developed, or (c) the matters involve complex or novel legal theories or a large number of parties. In accordance with applicable accounting guidance, IDACORP and Idaho Power, as applicable, establish an accrual for legal proceedings when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. If the loss contingency at issue is not both probable and reasonably estimable, IDACORP and Idaho Power do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. As of the date of this report, IDACORP's and Idaho Power's accruals for loss contingencies are not material to their financial statements as a whole; however, future accruals could be material in a given period. IDACORP's and Idaho Power's determination is based on currently available information, and estimates presented in financial statements and other financial disclosures involve significant judgment and may be subject to significant uncertainty. For matters that affect Idaho Power's operations, Idaho Power intends to seek, to the extent permissible and appropriate, recovery through the ratemaking process of costs incurred, although there is no assurance that such recovery would be granted.
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 power supply, transmission, and distribution facilities. Some of those claims relate to electrical contacts, service quality, property damage, and wildfires. In recent years, utilities in the western United States have been subject to significant liability for personal injury, loss of life, property damage, trespass, and economic losses, and in some cases, punitive damages and criminal charges, associated with wildfires that originated from utility property, most commonly transmission and distribution lines. Idaho Power has also regularly received claims by governmental agencies and private landowners for damages for fires allegedly originating from Idaho Power’s transmission and distribution system. As of the date of this report, the companies believe that resolution of existing claims will not have a material adverse effect on their respective consolidated financial statements.
Idaho Power is also actively monitoring various pending environmental regulations and executive orders related to environmental matters that may have a significant impact on its future operations. Given uncertainties regarding the outcome, timing, and compliance plans for these environmental matters, Idaho Power is unable to estimate the financial impact of these regulations.
11. BENEFIT PLANS
Idaho Power sponsors defined benefit and other postretirement benefit plans that cover the majority of its employees. Idaho Power also sponsors a defined contribution 401(k) employee savings plan and provides certain post-employment benefits.
Pension Plans
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. Remaining vested benefits from that plan are included with the SMSP in the disclosures below. The benefits under these plans are based on years of service and the employee's final average earnings.
112
Table of Contents
The following table summarizes the changes in benefit obligations and plan assets of these plans (in thousands of dollars):
Pension Plan SMSP
2024 2023 2024 2023
Change in projected benefit obligation:
Benefit obligation at January 1 $ 1,028,016 $ 953,769 $ 105,809 $ 99,976
Service cost 33,992 29,843 1,051 612
Interest cost 52,181 51,277 5,332 5,322
Actuarial (gain) loss ( 65,972 ) 41,539 ( 3,321 ) 6,518
Plan amendment — — 15 11
Benefits paid ( 50,051 ) ( 48,412 ) ( 6,568 ) ( 6,630 )
Projected benefit obligation at December 31 998,166 1,028,016 102,318 105,809
Change in plan assets:
Fair value at January 1 917,513 839,728 — —
Actual return on plan assets 63,680 78,197 — —
Employer contributions 20,000 48,000 — —
Benefits paid ( 50,051 ) ( 48,412 ) — —
Fair value at December 31 951,142 917,513 — —
Funded status at end of year $ ( 47,024 ) $ ( 110,503 ) $ ( 102,318 ) $ ( 105,809 )
Amounts recognized in the balance sheet consist of:
Other current liabilities $ — $ — $ ( 6,827 ) $ ( 6,608 )
Noncurrent liabilities ( 47,024 ) ( 110,503 ) ( 95,491 ) ( 99,201 )
Net amount recognized
$ ( 47,024 ) $ ( 110,503 ) $ ( 102,318 ) $ ( 105,809 )
Amounts recognized in AOCI consist of:
Net loss $ 43,516 $ 108,334 $ 16,442 $ 21,074
Prior service cost 24 31 1,995 2,200
Subtotal 43,540 108,365 18,437 23,274
Less amount recorded as regulatory asset (1)
( 43,540 ) ( 108,365 ) — —
Net amount recognized in AOCI $ — $ — $ 18,437 $ 23,274
Accumulated benefit obligation $ 863,705 $ 892,325 $ 96,487 $ 99,786
(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 gains reflected in the benefit obligations for the pension and SMSP plans in 2024 are due primarily to increases in the assumed discount rates of both plans from December 31, 2023, to December 31, 2024. 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. For more information on discount rates, see “Plan Assumptions” below in this Note 11.
As a non-qualified plan, the SMSP has no plan assets. However, Idaho Power has a rabbi trust designated to provide funding for SMSP obligations. The rabbi trust holds investments in marketable securities and corporate-owned life insurance. The recorded value of these investments was approximately $ 159.1 million and $ 146.2 million at December 31, 2024 and 2023, respectively, and is reflected in Investments and in Company-owned life insurance on the consolidated balance sheets.
113
Table of Contents
The following table shows the components of net periodic pension cost for these plans (in thousands of dollars). For purposes of calculating the expected return on plan assets, the market-related value of assets is equal to the fair value of the assets.
Pension Plan SMSP
2024 2023 2022 2024 2023 2022
Service cost $ 33,992 $ 29,843 $ 52,025 $ 1,051 $ 612 $ 1,185
Interest cost 52,181 51,277 39,670 5,332 5,322 3,897
Expected return on assets ( 66,533 ) ( 61,728 ) ( 72,348 ) — — —
Amortization of net loss 1,700 — 12,273 1,312 570 4,229
Amortization of prior service cost 6 6 6 220 219 279
Net periodic pension cost 21,346 19,398 31,626 7,915 6,723 9,590
Regulatory deferral of net periodic pension cost (1)
( 20,425 ) ( 18,553 ) ( 30,197 ) — — —
Previously deferred pension cost recognized (1)
35,182 17,154 17,154 — — —
Net periodic pension cost recognized for financial reporting (1)(2)
$ 36,103 $ 17,999 $ 18,583 $ 7,915 $ 6,723 $ 9,590
(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 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 $ 35.9 million, $ 18.2 million, and $ 19.0 million respectively, was recognized in "Other operations and maintenance" and $ 8.1 million, $ 6.5 million, and $ 9.2 million respectively, was recognized in "Other income, net" on the consolidated statements of income of the companies for the twelve months ended December 31, 2024, 2023, and 2022.
The following table shows the components of other comprehensive income (loss) for the plans (in thousands of dollars):
Pension Plan SMSP
2024 2023 2022 2024 2023 2022
Actuarial gain (loss) during the year $ 63,119 $ ( 25,071 ) $ 227,372 $ 3,320 $ ( 6,517 ) $ 32,009
Plan amendment service cost — — — ( 15 ) ( 11 ) —
Reclassification adjustments for:
Amortization of net loss 1,700 — 12,273 1,312 570 4,229
Amortization of prior service cost 6 6 6 220 219 279
Adjustment for deferred tax effects ( 16,686 ) 6,452 ( 61,686 ) ( 1,245 ) 1,477 ( 9,399 )
Adjustment due to the effects of regulation
( 48,139 ) 18,613 ( 177,965 ) — — —
Other comprehensive income (loss) recognized related to pension benefit plans $ — $ — $ — $ 3,592 $ ( 4,262 ) $ 27,118
The following table summarizes the expected future benefit payments of these plans (in thousands of dollars):
2025 2026 2027 2028 2029 2030-2034
Pension Plan $ 50,774 $ 52,436 $ 54,119 $ 55,778 $ 57,568 $ 317,695
SMSP 6,827 6,836 6,846 6,997 7,237 37,188
Idaho Power’s funding policy for the pension plan is to contribute at least the minimum required under the Employee Retirement Income Security Act of 1974 (ERISA) but not more than the maximum amount deductible for income tax purposes. In 2024, 2023, and 2022, Idaho Power elected to contribute more than the minimum required amounts in order to bring the pension plan to a more funded position, to reduce future required contributions, and to reduce Pension Benefit Guaranty Corporation premiums. As of the date of this report, IDACORP and Idaho Power have no estimated minimum required contributions to the pension plan for 2025. Depending on market conditions and cash flow considerations in 2025, Idaho Power could contribute up to $ 20 million to the pension plan during 2025 in order to help balance the regulatory collection of these expenditures with the amount and timing of contributions and to mitigate the cost of being in an underfunded position.
114
Table of Contents
Postretirement Benefits
Idaho Power maintains a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers all employees who were enrolled in the active-employee group plan at the time of retirement as well as their spouses and qualifying dependents. Retirees hired on or after January 1, 1999, have access to the standard medical option at full cost, with no contribution by Idaho Power. Benefits for employees who retire after December 31, 2002, are limited to a fixed amount, which has limited the growth of Idaho Power’s future obligations under this plan.
The following table summarizes the changes in benefit obligation and plan assets (in thousands of dollars):
2024 2023
Change in accumulated benefit obligation:
Benefit obligation at January 1 $ 56,064 $ 59,099
Service cost 698 658
Interest cost 2,824 2,980
Actuarial gain ( 778 ) ( 2,004 )
Benefits paid (1)
( 4,204 ) ( 4,669 )
Benefit obligation at December 31 54,604 56,064
Change in plan assets:
Fair value of plan assets at January 1 31,804 28,565
Actual return on plan assets 4,669 7,219
Employer contributions (1)
( 1,141 ) 690
Benefits paid (1)
( 4,204 ) ( 4,670 )
Fair value of plan assets at December 31 31,128 31,804
Funded status at end of year (included in noncurrent liabilities) $ ( 23,476 ) $ ( 24,260 )
(1) Contributions and benefits paid are each net of $ 2.3 million and $ 2.6 million of plan participant contributions for 2024 and 2023, respectively.
Amounts recognized in AOCI consist of the following (in thousands of dollars):
2024 2023
Net gain $ ( 29,353 ) $ ( 27,231 )
Prior service cost 4,636 6,184
Subtotal ( 24,717 ) ( 21,047 )
Less amount recognized in regulatory assets 24,717 21,047
Net amount recognized in AOCI $ — $ —
The net periodic postretirement benefit cost was as follows (in thousands of dollars):
2024 2023 2022
Service cost $ 698 $ 658 $ 1,071
Interest cost 2,824 2,980 2,112
Expected return on plan assets ( 1,831 ) ( 1,650 ) ( 2,351 )
Amortization of net loss ( 1,494 ) ( 1,237 ) ( 31 )
Amortization of prior service cost 1,548 1,665 295
Net periodic postretirement benefit cost $ 1,745 $ 2,416 $ 1,096
115
Table of Contents
The following table shows the components of other comprehensive income for the plan (in thousands of dollars):
2024 2023 2022
Actuarial gain during the year $ 3,616 $ 7,572 $ 12,908
Prior service cost arising during the year — — ( 8,065 )
Reclassification adjustments for:
Amortization of net loss ( 1,494 ) ( 1,237 ) ( 31 )
Amortization of prior service cost 1,548 1,665 295
Adjustment for deferred tax effects ( 945 ) ( 2,059 ) ( 1,315 )
Adjustment due to the effects of regulation
( 2,725 ) ( 5,941 ) ( 3,792 )
Other comprehensive income related to postretirement benefit plans
$ — $ — $ —
The following table summarizes the expected future benefit payments of the postretirement benefit plan (in thousands of dollars):
2025 2026 2027 2028 2029 2030-2034
Expected benefit payments $ 4,931 $ 4,753 $ 4,563 $ 4,436 $ 4,355 $ 20,500
Plan Assumptions
The following table sets forth the weighted-average assumptions used at the end of each year to determine benefit obligations for all Idaho Power-sponsored pension and postretirement benefits plans:
Pension Plan SMSP Postretirement
Benefits
2024 2023 2024 2023 2024 2023
Discount rate 5.70 % 5.10 % 5.70 % 5.20 % 5.70 % 5.15 %
Rate of compensation increase (1)
4.43 % 4.43 % 4.75 % 4.75 % — —
Medical trend rate — — — — 6.3 % 7.1 %
Dental trend rate — — — — 3.5 % 3.5 %
Measurement date 12/31/2024 12/31/2023 12/31/2024 12/31/2023 12/31/2024 12/31/2023
(1) The 2024 rate of compensation increase assumption for the pension plan includes an inflation component of 2.40 % plus a 2.03 % composite merit increase component that is based on employees' years of service. Merit salary increases are assumed to be 10.6 % for employees in their first year of service and scale down to 3.4 % for employees in their fortieth year of service and beyond.
The following table sets forth the weighted-average assumptions used to determine net periodic benefit cost for all Idaho Power-sponsored pension and postretirement benefit plans:
Pension Plan SMSP Postretirement
Benefits
2024 2023 2022 2024 2023 2022 2024 2023 2022
Discount rate 5.10 % 5.45 % 3.05 % 5.20 % 5.50 % 3.00 % 5.15 % 5.45 % 2.95 %
Expected long-term rate of return on assets
7.40 % 7.40 % 7.40 % — — — 6.00 % 6.00 % 6.00 %
Rate of compensation increase 4.43 % 4.49 % 4.49 % 4.75 % 4.75 % 4.75 % — — % — %
Medical trend rate — — — — — — 7.1 % 6.7 % 5.8 %
Dental trend rate — — — — — — 3.5 % 3.5 % 3.5 %
The assumed health care cost trend rate used to measure the expected cost of health benefits covered by the postretirement plan was 7.1 percent in 2024 and is assumed to decrease to 6.3 percent in 2025, 5.5 percent in 2026, decrease to 5.4 percent in 2027, and to gradually decrease to 3.8 percent by 2074. The assumed dental cost trend rate used to measure the expected cost of dental benefits covered by the plan was 3.5 percent, or equal to the medical trend rate if lower, for all years.
116
Table of Contents
Plan Assets
Pension Asset Allocation Policy: The target allocation and actual allocations at December 31, 2024, for the pension asset portfolio by asset class is set forth below:
Asset Class Target
Allocation Actual
Allocation
December 31, 2024
Debt securities 25 % 24 %
Equity securities 56 % 59 %
Real estate 8 % 8 %
Other plan assets 11 % 9 %
Total 100 % 100 %
Assets are rebalanced as necessary to keep the portfolio close to target allocations. The plan’s principal investment objective is to maximize total return (defined as the sum of realized interest and dividend income and realized and unrealized gain or loss in market price) consistent with prudent parameters of risk and the liability profile of the portfolio. Emphasis is placed on preservation and growth of capital along with adequacy of cash flow sufficient to fund current and future payments to plan participants.
The three major goals in Idaho Power’s asset allocation process are to:
• determine if the investments have the potential to earn the rate of return assumed in the actuarial liability calculations;
• match the cash flow needs of the plan. 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; and
• 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 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 AA Corporate Bond Index. This historical risk premium is then added to the current yield on the Moody's AA Corporate Bond Index. Additional analysis is performed to measure the expected range of returns, as well as worst-case and best-case scenarios. Based on the current interest rate environment, current rate-of-return expectations are lower than the nominal returns generated over the past 30 years when interest rates were generally higher.
Idaho Power’s asset modeling process also utilizes historical market returns to measure the portfolio’s exposure to a “worst-case” market scenario, to determine how much performance could vary from the expected “average” performance over various time periods. This “worst-case” modeling, in addition to cash flow matching and diversification by asset class and investment style, provides the basis for managing the risk associated with investing portfolio assets.
117
Table of Contents
Fair Value of Plan Assets: Idaho Power classifies its pension plan and postretirement benefit plan investments using the three-level fair value hierarchy described in Note 16 - "Fair Value Measurements." The following table presents the fair value of the plans' investments by asset category (in thousands of dollars).
Level 1 Level 2 Level 3 Total
Assets at December 31, 2024
Cash and cash equivalents $ 24,946 $ — $ — $ 24,946
Intermediate bonds 40,177 184,528 — 224,705
Equity Securities: Large-Cap 49,848 — — 49,848
Equity Securities: Mid-Cap 103,117 — — 103,117
Equity Securities: Small-Cap 82,932 — — 82,932
Equity Securities: Micro-Cap 38,871 — — 38,871
Equity Securities: Global and International 58,767 — — 58,767
Equity Securities: Emerging Markets 6,093 — — 6,093
Plan assets measured at NAV (not subject to hierarchy disclosure)
Commingled Fund: Equity Securities: Large-Cap 54,346
Commingled Fund: Equity Securities: Global and International 124,559
Commingled Fund: Equity Securities: Emerging Markets 41,590
Direct Lending Fund: Fixed Income 5,479
Real estate 72,913
Private market investments 62,976
Total $ 404,751 $ 184,528 $ — $ 951,142
Postretirement plan assets (1)
$ 3,054 $ 28,074 $ — $ 31,128
Level 1 Level 2 Level 3 Total
Assets at December 31, 2023
Cash and cash equivalents $ 28,830 $ — $ — $ 28,830
Intermediate bonds 35,747 182,280 — 218,027
Equity Securities: Large-Cap 93,879 — — 93,879
Equity Securities: Mid-Cap 105,700 — — 105,700
Equity Securities: Small-Cap 75,596 — — 75,596
Equity Securities: Micro-Cap 37,759 — — 37,759
Equity Securities: Global and International 58,401 — — 58,401
Equity Securities: Emerging Markets 7,850 — — 7,850
Plan assets measured at NAV (not subject to hierarchy disclosure)
Commingled Fund: Equity Securities: Global and International 131,921
Commingled Fund: Equity Securities: Emerging Markets 40,398
Direct Lending Fund: Fixed Income 2,970
Real estate 74,426
Private market investments 41,756
Total $ 443,762 $ 182,280 $ — $ 917,513
Postretirement plan assets (1)
$ 1,726 $ 30,078 $ — $ 31,804
(1) The postretirement benefits assets are primarily life insurance contracts.
For the years ended December 31, 2024 and 2023, there were no material transfers into or out of Levels 1, 2, or 3.
Fair Value Measurement of Level 2 Plan assets and Plan assets measured at NAV:
118
Table of Contents
Level 2 Bonds : These investments represent United States government, agency bonds, and corporate bonds. The United States government and agency bonds, as well as the corporate bonds, are not traded on an exchange and are valued utilizing market prices for similar assets or liabilities in active markets.
Level 2 Postretirement Asset: 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 investments held by the insurer's investment account are all instruments traded on exchanges with readily determinable market prices.
Commingled Funds : These funds, made up of global, international and emerging markets equity securities are measured at NAV, are not publicly traded, and therefore no publicly quoted market price is readily available. The values of the commingled funds are presented at estimated fair value, which is determined based on the unit value of the fund. The values of these investments are calculated by the custodian for the fund company on a monthly or more frequent basis, and are based on market prices of the assets held by each of the commingled funds divided by the number of fund shares outstanding for the respective fund. 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 : Real estate holdings represent investments in open-end and closed-end commingled real estate funds. As the property interests held in these real estate funds are not frequently traded, establishing the market value of the property interests held by the fund, and the resulting unit value of fund shareholders, is based on unobservable inputs including property appraisals by the fund companies, property appraisals by independent appraisal firms, analysis of the replacement cost of the property, discounted cash flows generated by property rents and changes in property values, and comparisons with sale prices of similar properties in similar markets. These real estate funds also furnish annual audited financial statements that are also used to further validate the information provided. Redemptions on the open-end funds are generally available on a quarterly basis, with 10 to 35 days written notice, depending on the individual fund. If the fund has sufficient liquidity, the redemption will be processed at the fund NAV or the fund’s estimate of fair value at the end of the quarter. If the fund does not have sufficient liquidity to honor the full redemption, the remainder will be set for redemption the following quarter on a pro-rata basis with other redemption requests. This same process will repeat until the redemption request has been completed. To protect other fund holders, real estate funds have no duty to liquidate or encumber funds to meet redemption requests. The closed-end funds are formed for a stated life of 7 to 10 years. The fund 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.
Private Market Investments : Private market investments represent three categories: venture capital funds, private infrastructure 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. 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. Some venture capital investments have progressed to the point that they have readily available exchange-based market valuations. Early stage venture investments are valued based on unobservable inputs including cost, operating results, discounted cash flows, the price of recent funding events, or pending offers from other viable entities. These private market investments furnish annual audited financial statements that are also used to further validate the information provided. These funds are formed for a stated life of 10 to 15 years. The general partner can extend the fund life for 2 or 3 one-year periods. The fund 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. The private infrastructure fund investment is valued by the fund manager through a process involving an independent third-party external valuator on a quarterly basis, with each investment undergoing a full independent valuation at least once per year. Redemption on the infrastructure fund are available on a quarterly basis beginning in April of 2027 with 90 days written notice. If the fund has sufficient liquidity, the redemption will be processed at the fund NAV at the end of the quarter. If the fund does not have sufficient liquidity to honor the full redemption, the remainder will be set for redemption the
119
Table of Contents
following quarter on a pro-rata basis with other redemption requests. This same process will repeat until the redemption request has been completed. 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
Idaho Power has a defined contribution plan designed to comply with Section 401(k) of the Internal Revenue Code and that covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the plan. Matching annual contributions were approximately $ 10.4 million, $ 9.8 million, and $ 8.8 million in 2024, 2023, and 2022, respectively.
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 liabilities on both IDACORP’s and Idaho Power’s consolidated balance sheets at December 31, 2024 and 2023, were approximately $ 3 million.
12. PROPERTY, PLANT AND EQUIPMENT AND JOINTLY-OWNED PROJECTS
The following table presents the major classifications of Idaho Power’s utility plant in service, annual depreciation provisions as a percent of average depreciable balance, and accumulated provision for depreciation for the years ended December 31, 2024 and 2023 (in thousands of dollars):
2024 2023
Balance Avg Rate Balance Avg Rate
Production $ 2,858,678 3.90 % $ 2,794,534 3.50 %
Transmission 1,534,474 1.89 % 1,392,338 1.90 %
Distribution 2,858,435 2.31 % 2,454,458 2.18 %
General and Other 706,176 5.18 % 650,202 5.21 %
Total in service 7,957,763 3.06 % 7,291,532 2.89 %
Accumulated provision for depreciation ( 2,714,706 ) ( 2,557,744 )
In service - net $ 5,243,057 $ 4,733,788
At December 31, 2024, Idaho Power's construction work in progress balance of $ 1.2 billion included relicensing costs of $ 496.9 million for the HCC, Idaho Power's largest hydropower complex. In 2024, 2023, and 2022, Idaho Power had IPUC authorization to include in its Idaho jurisdiction rates $ 6.5 million annually ($ 8.8 million when grossed-up for the effect of income taxes) of AFUDC relating to the HCC relicensing project. Collecting these amounts will reduce the amount collected in the future once the HCC relicensing costs are approved for recovery in base rates. At December 31, 2024, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was $ 250.9 million.
Idaho Power's ownership interest in two jointly-owned generating facilities is included in the table above. Under the joint operating agreements for these facilities, each participating utility is responsible for financing its share of construction, operating, and leasing costs. Idaho Power's proportionate share of operating expenses for each facility is included in the Consolidated Statements of Income. These jointly-owned facilities, including balance sheet amounts and the extent of Idaho Power’s participation, were as follows at December 31, 2024 (in thousands of dollars):
Name of Plant Location Utility Plant in Service Construction
Work in Progress Accumulated
Provision for Depreciation Ownership % MW (1)(2)
Jim Bridger units 1-4 Rock Springs, WY $ 790,883 $ 1,387 $ 548,307 33 775
North Valmy unit 2 (2)
Winnemucca, NV 267,135 8,938 244,020 50 145
(1) Idaho Power’s share of nameplate capacity.
120
Table of Contents
(2) Pursuant to an agreement with NV Energy, Idaho Power ceased participation in coal-fired operations of North Valmy in December 2019 at unit 1. Idaho Power's 2023 IRP identified a preferred resource portfolio and action plan that includes the conversion of the two generating units at the North Valmy plant from coal to natural gas in 2026.
IERCo, Idaho Power’s wholly-owned subsidiary, is a joint-owner of BCC. Idaho Power’s coal purchases from BCC were $ 51.6 million in 2024, $ 67.9 million in 2023, and $ 60.4 million in 2022.
13. 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. 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 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.
Idaho Power also has additional AROs associated with its transmission system and generation facilities; however, due to the indeterminate removal date, the fair value of the associated liabilities currently cannot be estimated and no amounts are recognized in the consolidated financial statements.
Idaho Power also collects removal costs in rates for certain assets that do not have associated AROs. Idaho Power is required to classify these removal costs as regulatory liabilities , see Note 3 - "Regulatory Matters" for the removal costs recorded as regulatory liabilities on IDACORP’s and Idaho Power’s consolidated balance sheets as of December 31, 2024 and 2023.
The following table presents the changes in the carrying amount of AROs (in thousands of dollars):
2024 2023
Balance at beginning of year $ 48,997 $ 37,557
Accretion expense 1,895 1,176
Revisions in estimated cash flows 842 11,348
Liability settled ( 608 ) ( 1,084 )
Balance at end of year $ 51,126 $ 48,997
14. INVESTMENTS
The table below summarizes IDACORP’s and Idaho Power’s investments as of December 31 (in thousands of dollars):
2024 2023
Idaho Power investments:
BCC (equity method investment) $ 20,998 $ 24,078
Exchange traded short-term bond funds and cash equivalents 38,873 36,617
Held-to-Maturity securities 32,151 31,639
Executive deferred compensation plan investments 899 703
Total Idaho Power investments 92,921 93,037
IFS investments in real estate tax credit projects, such as affordable housing developments 54,654 57,286
Ida-West joint ventures (equity method investments) 9,666 9,897
Other investments 4,099 3,751
Total IDACORP investments $ 161,340 $ 163,971
121
Table of Contents
Equity Method Investments
Idaho Power, through its subsidiary IERCo, is a 33 percent owner of BCC. Ida-West, through separate subsidiaries, owns 50 percent of three electric generation projects that are accounted for using the equity method: South Forks Joint Venture, Hazelton/Wilson Joint Venture, and Snow Mountain Hydro LLC. 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):
2024 2023 2022
BCC (Idaho Power) $ 2,671 $ 10,540 $ 10,211
Ida-West joint ventures 1,868 1,886 1,300
Total $ 4,539 $ 12,426 $ 11,511
Investments in Equity Securities
Investments in equity securities are reported at fair value. Any unrealized gains or losses on equity securities are included in income. Unrealized gains and losses on equity securities were immaterial at December 31, 2024 and 2023. There were no gross realized gains or losses from the sale of equity securities in 2024, 2023, and 2022.
Held-to-Maturity Securities
Idaho Power has a rabbi trust designated to provide funding for obligations related to the SMSP. During 2024 and 2023, the rabbi trust purchased $ 1.8 million and $ 1.6 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. Held-to-maturity investments are carried at amortized cost, reflecting Idaho Power’s ability and intent to hold the securities to maturity. Held-to-maturity investments are adjusted for the amortization or accretion of premiums or discounts, which are amortized or accreted over the life of the related held-to-maturity security. Such amortization and accretion are included in the “Other income, net” line in the consolidated statements of income. Due to increases in market interest rates in 2024 and 2023, all held-to-maturity securities were in a gross unrealized holding loss position totaling $ 2.7 million and $ 3.3 million at December 31, 2024 and 2023, 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, 2024 and 2023.
IDACORP Financial Services Investments
IFS invests primarily in real estate tax credit projects, such as affordable housing developments, which provide a return principally by reducing federal and state income taxes through tax credits and accelerated tax depreciation benefits. IFS has focused on a diversified approach to its investment strategy in order to limit both geographic and operational risk, with most of IFS’s investments having been made through syndicated funds. IDACORP accounts for its equity-method investments in qualified real estate projects using the proportional amortization method and recognizes the net investment performance in the consolidated statements of income as a component of income tax expense.
15. DERIVATIVE FINANCIAL INSTRUMENTS
Commodity Price Risk
Idaho Power is exposed to market risk relating to electricity, natural gas, and other fuel commodity prices, all of which are heavily influenced by supply and demand. Market risk may be influenced by market participants’ nonperformance of their contractual obligations and commitments, which affects the supply of or demand for the commodity. Idaho Power uses derivative instruments, such as physical and financial forward contracts, for both electricity and fuel to manage the risks relating to these commodity price exposures. The primary objectives of Idaho Power’s energy purchase and sale activity are to meet the demand of retail electric customers, maintain appropriate physical reserves to ensure reliability, and make economic use of temporary surpluses that may develop.
All of Idaho Power's derivative instruments have been entered into for the purpose of securing energy resources for future periods or economically hedging forecasted purchases and sales, though none of these instruments have been designated as cash flow hedges. Idaho Power offsets fair value amounts recognized on its balance sheet and applies collateral related to derivative instruments executed with the same counterparty under the same master netting agreement. Idaho Power does not offset a
122
Table of Contents
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. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit). These types of transactions are excluded from the offsetting presented in the derivative fair value and offsetting table that follows.
The table below presents the gains and losses on derivatives not designated as hedging instruments for the years ended December 31, 2024, 2023, and 2022 (in thousands of dollars):
Location of Realized Gain/(Loss) on Derivatives Recognized in Income Gain/(Loss) on Derivatives Recognized in Income (1)
2024 2023 2022
Financial swaps Operating revenues $ 5,189 $ 4,216 $ ( 6,249 )
Financial swaps Purchased power ( 7,101 ) ( 8,542 ) 2,373
Financial swaps Fuel expense ( 63,380 ) ( 16,209 ) 68,489
Forward contracts Operating revenues 1,885 2,280 1,090
Forward contracts Purchased power ( 3,742 ) ( 4,035 ) ( 2,994 )
Forward contracts Fuel expense ( 2,510 ) ( 866 ) ( 136 )
(1) Excludes unrealized gains or losses on derivatives, which are recorded on the balance sheet as regulatory assets or regulatory liabilities.
Settlement gains and losses on electricity swap contracts are recorded on the income statement in operating revenues or purchased power depending on the forecasted position being economically hedged by the derivative contract. Settlement gains and losses on contracts for natural gas are reflected in fuel expense. Settlement gains and losses on diesel derivatives are recorded in other O&M expense. See Note 16 - "Fair Value Measurements" for additional information concerning the determination of fair value for Idaho Power’s assets and liabilities from price risk management activities.
Credit Risk
At December 31, 2024, Idaho Power did not have material credit risk exposure from financial instruments, including derivatives. Idaho Power monitors credit risk exposure through reviews of counterparty credit quality, corporate-wide counterparty credit exposure, and corporate-wide counterparty concentration levels. Idaho Power manages these risks by establishing credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, bonds, or letters of credit from counterparties or their affiliates, as deemed necessary. Idaho Power’s physical power contracts are commonly under WSPP, Inc. agreements, physical gas contracts are usually under North American Energy Standards Board contracts, and financial transactions are usually under International Swaps and Derivatives Association, Inc. contracts. These contracts typically contain adequate assurance clauses requiring collateralization if a counterparty has debt that is downgraded below investment grade by at least one rating agency.
Credit-Contingent Features
Certain of Idaho Power's derivative instruments contain provisions that require Idaho Power's unsecured debt to maintain an investment grade credit rating from Moody's and Standard & Poor's Ratings Services. If Idaho Power's unsecured debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at December 31, 2024, was $ 34.3 million. Idaho Power posted $ 25.1 million cash collateral related to this amount. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2024, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional $ 36.4 million to cover open liability positions as well as completed transactions that have not yet been paid.
123
Table of Contents
Derivative Instrument Summary
The table below presents the fair values and locations of derivative instruments not designated as hedging instruments recorded on the balance sheets and reconciles the gross amounts of derivatives recognized as assets and as liabilities to the net amounts presented in the balance sheets at December 31, 2024 and 2023 (in thousands of dollars):
Asset Derivatives Liability Derivatives
Balance Sheet Location Gross Fair Value Amounts Offset Net Assets Gross Fair Value Amounts Offset Net Liabilities
December 31, 2024
Current:
Financial swaps Other current liabilities 3,072 ( 3,072 ) — 18,092 ( 14,931 ) (1) 3,161
Forward contracts Other current liabilities — — — 1,291 — 1,291
Long-term:
Financial swaps Other assets 1,939 ( 1,939 ) (2) — 409 ( 409 ) —
Financial swaps Other liabilities 177 ( 177 ) — 1,019 ( 177 ) 842
Forward contracts Other liabilities — — — 10,965 — 10,965
Total $ 5,188 $ ( 5,188 ) $ — $ 31,776 $ ( 15,517 ) $ 16,259
December 31, 2023
Current:
Financial swaps Other current assets $ 241 $ ( 169 ) $ 72 $ 169 $ ( 169 ) $ —
Financial swaps Other current liabilities 1,476 ( 1,476 ) — 41,977 ( 38,045 ) (3) 3,932
Forward contracts Other current liabilities — — — 2,000 — 2,000
Long-term:
Financial swaps Other assets 106 ( 89 ) 17 89 ( 89 ) —
Financial swaps Other liabilities 376 ( 376 ) — 2,123 ( 2,123 ) (4) —
Total $ 2,199 $ ( 2,110 ) $ 89 $ 46,358 $ ( 40,426 ) $ 5,932
(1) Current liability derivative amounts offset include $ 11.9 million of collateral receivable at December 31, 2024.
(2) Long-term asset derivative amounts offset include $ 1.5 million of collateral payable at December 31, 2024.
(3) Current liability derivative amounts offset include $ 36.6 million of collateral receivable at December 31, 2023.
(4) Long-term liability derivative amounts offset include $ 1.7 million of collateral receivable at December 31, 2023.
The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at December 31, 2024 and 2023 (in thousands of units):
December 31,
Commodity Units 2024 2023
Electricity purchases MWh 161 440
Electricity sales MWh 16 57
Natural gas purchases MMBtu 88,330 24,593
16. FAIR VALUE MEASUREMENTS
IDACORP and Idaho Power have categorized their financial instruments into a three-level fair value hierarchy, based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
Financial assets and liabilities recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:
124
Table of Contents
• Level 1: Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that IDACORP and Idaho Power have the ability to access.
• Level 2: Financial assets and liabilities whose values are based on the following:
a) quoted prices for similar assets or liabilities in active markets;
b) quoted prices for identical or similar assets or liabilities in non-active markets;
c) pricing models whose inputs are observable for substantially the full term of the asset or liability; and
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 or using quoted price which may be in non-active markets.
• Level 3: 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. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
IDACORP’s and Idaho Power’s assessment of a particular input's significance to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. There were no transfers between levels or material changes in valuation techniques or inputs during the years ended December 31, 2024 and 2023.
Certain instruments have been valued using NAV as a practical expedient. The NAV is generally not published and publicly available, nor are these instruments traded on an exchange. Instruments valued using NAV as a practical expedient are included in the fair value disclosures below; however, in accordance with GAAP are not classified within the fair value hierarchy levels.
The following table presents information about IDACORP’s and Idaho Power’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands of dollars):
December 31, 2024 December 31, 2023
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets:
Money market funds and commercial paper
IDACORP (1)
$ 146,308 $ — $ — $ 146,308 $ 32,472 $ — $ — $ 32,472
Idaho Power 158,999 — — 158,999 230,600 — — 230,600
Derivatives — — — — 89 — — 89
Equity securities 39,772 — — 39,772 37,320 — — 37,320
IDACORP assets measured at NAV (not subject to hierarchy disclosure) (1)
— — — 4,099 — — — 3,751
Liabilities:
Derivatives $ 4,003 $ 12,256 $ — $ 16,259 $ 3,932 $ 2,000 $ — $ 5,932
(1) Holding company only. Does not include amounts held by Idaho Power.
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 (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 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.
125
Table of Contents
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, 2024 and 2023, using available market information and appropriate valuation methodologies (in thousands of dollars).
December 31, 2024 December 31, 2023
Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
IDACORP
Assets:
Notes receivable (1)
$ 2,155 $ 2,155 $ 3,038 $ 3,038
Held-to-maturity securities (1)
32,151 29,428 31,639 28,341
Liabilities:
Long-term debt (including current portion) (1)
3,073,662 2,807,803 2,825,590 2,684,278
Idaho Power
Assets:
Held-to-maturity securities (1)
$ 32,151 $ 29,428 $ 31,639 $ 28,341
Liabilities:
Long-term debt (including current portion) (1)
3,073,662 2,807,803 2,825,590 2,684,278
(1) Notes receivable are categorized as Level 3 and held-to-maturity securities and long-term debt are categorized as Level 2 of the fair value hierarchy, as defined earlier in this Note 16 - "Fair Value Measurements."
Notes receivable are related to Ida-West and are valued based on unobservable inputs, including forecasted cash flows, which are partially based on expected hydropower conditions. Held-to-maturity securities are held in a rabbi trust and are generally valued using quoted prices, which may be in non-active markets. Long-term debt is not traded on an exchange and is valued using quoted rates for similar debt in active markets. Carrying values for cash and cash equivalents, deposits, customer and other receivables, notes payable, accounts payable, interest accrued, and taxes accrued approximate fair value.
17. SEGMENT INFORMATION
IDACORP’s only reportable segment is utility operations. The utility operations segment’s primary source of revenue is the regulated operations of Idaho Power. 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 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. This category is comprised of IFS’s investments in affordable housing and other real estate tax credits, Ida-West’s joint venture investments in small hydropower generation projects, and IDACORP’s holding company expenses.
The President and Chief Executive Officer of IDACORP and Idaho Power is the companies' chief operating decision maker (CODM). The CODM uses net income to monitor the utility segment's results, monitor and plan utility-specific regulatory strategy, allocate capital investments, and inform financing decisions.
The CODM is regularly provided with segment expense information for utility operations at the same level of detail as presented in Idaho Power's consolidated statements of income.
126
Table of Contents
The table below summarizes the segment information for IDACORP’s utility operations and the total of all other segments, and reconciles this information to total enterprise amounts (in thousands):
Utility
Operations All
Other Eliminations Consolidated
Total
2024
Revenues $ 1,822,965 $ 3,668 $ — $ 1,826,633
Depreciation 223,410 — — 223,410
Operating income 328,183 ( 344 ) — 327,839
Other income, net 64,309 ( 303 ) — 64,006
Interest income including carrying charges on regulatory assets 38,639 9,090 ( 3,244 ) 44,485
Equity-method income 2,671 1,868 — 4,539
Interest expense 135,516 3,593 ( 3,244 ) 135,865
Income before income taxes 298,286 6,718 — 305,004
Income tax expense (benefit) 17,681 ( 2,628 ) — 15,053
Net Income attributable to IDACORP, Inc. 280,605 8,569 — 289,174
Total assets 8,966,968 350,287 ( 77,892 ) 9,239,363
Expenditures for long-lived assets 1,009,138 141 — 1,009,279
2023
Revenues $ 1,762,894 $ 3,462 $ — $ 1,766,356
Depreciation 195,341 — — 195,341
Operating income 313,379 98 — 313,477
Other income, net 51,424 ( 46 ) — 51,378
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
Interest expense 116,117 3,172 ( 2,832 ) 116,457
Income before income taxes 285,736 3,453 — 289,189
Income tax expense (benefit) 28,926 ( 1,630 ) — 27,296
Net Income attributable to IDACORP, Inc. 256,810 4,385 — 261,195
Total assets 8,323,531 228,681 ( 76,294 ) 8,475,918
Expenditures for long-lived assets 610,913 224 — 611,137
2022
Revenues $ 1,641,040 $ 2,941 $ — $ 1,643,981
Depreciation 170,077 — — 170,077
Operating income 327,170 8 — 327,178
Other income, net 33,876 ( 187 ) — 33,689
Interest income including carrying charges on regulatory assets 12,556 2,776 ( 931 ) 14,401
Equity-method income 10,211 1,300 — 11,511
Interest expense 89,038 1,268 ( 931 ) 89,375
Income before income taxes 294,775 2,629 — 297,404
Income tax expense (benefit) 39,908 ( 2,064 ) — 37,844
Net Income attributable to IDACORP, Inc. 254,867 4,115 — 258,982
Total assets 7,411,104 245,762 ( 113,608 ) 7,543,258
Expenditures for long-lived assets 432,430 159 — 432,589
127
Table of Contents
18. OTHER INCOME AND EXPENSE
The following table presents the components of IDACORP’s other income, net and Idaho Power's other income, net (in thousands of dollars):
IDACORP 2024 2023 2022
Interest and dividend income, net $ 22,577 $ 15,266 $ 5,952
Carrying charges on regulatory assets 21,908 13,099 7,032
Pension and postretirement non-service costs ( 8,077 ) ( 6,513 ) ( 9,196 )
Income from life insurance investments 10,186 8,384 7,107
Other income 8,659 6,286 ( 90 )
Total other income, net $ 55,253 $ 36,522 $ 10,805
Idaho Power
Interest and dividend income, net $ 16,731 $ 13,410 $ 4,094
Carrying charges on regulatory assets 21,908 13,099 7,032
Pension and postretirement non-service costs ( 8,077 ) ( 6,513 ) ( 9,196 )
Income from life insurance investments 10,186 8,384 7,012
Other income 8,962 6,333 205
Total other income, net $ 49,710 $ 34,713 $ 9,147
19. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME
Comprehensive income includes net income and amounts related to the SMSP. The table below presents changes in components of AOCI, net of tax, during the years ended December 31, 2024, 2023, and 2022 (in thousands of dollars). Items in parentheses indicate reductions to AOCI.
Year Ended December 31,
2024 2023 2022
Defined benefit pension items
Balance at beginning of period $ ( 17,184 ) $ ( 12,922 ) $ ( 40,040 )
Other comprehensive income before reclassifications, net of tax of $ 851 , $( 1,680 ), and $ 8,239
2,454 ( 4,848 ) 23,770
Amounts reclassified out of AOCI to net income, net of tax of $ 394 , $ 203 , and $ 1,160
1,138 586 3,348
Net current-period other comprehensive income 3,592 ( 4,262 ) 27,118
Balance at end of period $ ( 13,592 ) $ ( 17,184 ) $ ( 12,922 )
128
Table of Contents
The table below presents the effects on net income of amounts reclassified out of components of AOCI and the income statement location of those amounts reclassified during the years ended December 31, 2024, 2023, and 2022 (in thousands of dollars). Items in parentheses indicate increases to net income.
Amount Reclassified from AOCI
Year Ended December 31,
2024 2023 2022
Amortization of defined benefit pension items (1)
Prior service cost $ 220 $ 219 $ 279
Net loss 1,312 570 4,229
Total before tax 1,532 789 4,508
Tax benefit (2)
( 394 ) ( 203 ) ( 1,160 )
Net of tax 1,138 586 3,348
Total reclassification for the period $ 1,138 $ 586 $ 3,348
(1) Amortization of these items is included in "Other (income) expense, net" in the consolidated income statements of both IDACORP and Idaho Power.
(2) The tax benefit is included in "Income tax expense" in the consolidated income statements of both IDACORP and Idaho Power .
20. RELATED PARTY TRANSACTIONS
IDACORP: Idaho Power performs corporate functions such as financial, legal, and management services for IDACORP and its subsidiaries. Idaho Power charges IDACORP for the costs of these services based on service agreements and other specifically identified costs. For these services, Idaho Power billed IDACORP $ 1.1 million in 2024, $ 1.1 million in 2023, and $ 0.9 million in 2022.
At December 31, 2024 and 2023, Idaho Power had a $ 3.2 million and $ 16.2 million payable to IDACORP, respectively, which was included in its accounts payable to affiliates balance on its consolidated balance sheets. At December 31, 2023, the payable was primarily related to income tax payments. At IDACORP, the receivable from Idaho Power is eliminated in consolidation.
Ida-West: 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 $ 9.6 million in 2024, $ 9.1 million in 2023, and $ 7.9 million in 2022 of power from Ida-West.
129
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of IDACORP, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of IDACORP, Inc. and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedules listed in the Index at Item 8 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 20, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Regulation of Utility Operations - Refer to Notes 1 and 3 to the financial statements
Critical Audit Matter Description
Idaho Power Company ("Idaho Power"), the principal operating subsidiary of the Company, is subject to rate regulation by the Federal Energy Regulatory Commission and the Idaho and Oregon Public Utility Commissions (the “Commissions”), which have jurisdiction with respect to the rates of electric distribution companies in Idaho and Oregon. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment; regulatory assets and liabilities; operating revenues; operation and maintenance expense; depreciation expense; and income tax expense.
130
Table of Contents
Idaho Power’s rates are subject to regulatory rate-setting processes. 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 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. Therefore, Idaho Power's effective income tax rate is impacted as these differences arise and reverse. 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 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 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.
• 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.
• 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.
• 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.
/s/ DELOITTE & TOUCHE LLP
Boise, Idaho
February 20, 2025
We have served as the Company's auditor since 1932.
131
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Idaho Power Company
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Idaho Power Company and subsidiary (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, retained earnings, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedule listed in the Index at Item 8 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 20, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Regulation of Utility Operations - Refer to Notes 1 and 3 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Federal Energy Regulatory Commission and the Idaho and Oregon Public Utility Commissions (the “Commissions”), which have jurisdiction with respect to the rates of electric distribution companies in Idaho and Oregon. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment; regulatory assets and liabilities; operating revenues; operation and maintenance expense; depreciation expense; and income tax expense.
The Company’s rates are subject to regulatory rate-setting processes. 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
132
Table of Contents
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. Therefore, the Company's effective income tax rate is impacted as these differences arise and reverse. 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.
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 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.
• 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.
• 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.
• 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.
/s/ DELOITTE & TOUCHE LLP
Boise, Idaho
February 20, 2025
We have served as the Company's auditor since 1932.
133
Table of Contents
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.