Idacorp, Inc. · NYSE:IDA
Idacorp — Edison Electric Institute Financial Conference 2022
43 slides from Idacorp's conference presentation, Nov 10, 2022
Slide 1: Investor Information
Investor Information Edison Electric Institute Financial Conference November 13-15, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation (and oral statements relating to this presentation) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical facts, that express, are based on, or i
Slide 3: Table of Contents
Table of Contents Appendix Company Overview Idaho Power Company Overview A-1 IDACORP at a Glance 1 Regulatory Commissioners A-2 Growth & Economic Expansion 2 Recent Regulatory Activity A-3 Idaho Economic Snapshot 3 Assumptions Used: Last Idaho Rate Case A-4 Micron Expansion Drives Further Growth 4 R
Slide 4: IDACORP at a Glance
IDACORP at a Glance IDACORP Financial Snapshot(1): • Revenue: $1.46 billion • Diluted earnings per share: $4.85 Revenues by Customer Class • Annualized Dividends per share: $3.16 • Return on Year-End Equity: 9.2% Irrigation • Net Utility Plant Assets: 13% Idaho Power—$4.9 billion Industrial 15% Resi
Slide 5: Growth & Economic Expansion
Growth & Economic Expansion Idaho Power Customer Growth 2.5% Increased Earnings Guidance (Year-over-year) 615,000 $ 5.05 – $ 5.15 605,000 595,000 585,000 575,000 Residential growth near Meridian, Idaho 565,000 555,000 545,000 Twelve Months 2018 2019 2020 2021 Ended Sept. 30, 2022 Moody’s GDP Growth
Slide 6: Idaho Economic Snapshot
Idaho Economic Snapshot* *Source: Economic Modeling Specialist International, 2021 Q4; Data from US 3 Bureau of Economic Analysis and US Department of Labor Statistics
Slide 7: Micron Expansion Drives Further Growth
Micron Expansion Drives Further Growth • Micron Technology, Inc. announced plans to invest ~$15 billion to construct a new memory manufacturing fab in Boise, Idaho • Co-located with Micron’s R&D center at the company’s headquarters • New fab will create over 17,000 new jobs, including approximately
Slide 8: 2022 Earnings Per Share Guidance & Estimated Key Operating Metrics
2022 Earnings Per Share Guidance & Estimated Key Operating Metrics (Millions Except for Per Share Amounts) Current(1) Previous(2) IDACORP Earnings Per Diluted Share Guidance $ 5.05 – $ 5.15 $ 4.95 – $ 5.05 Idaho Power Additional Amortization of Accumulated No change None Deferred Investment Tax Cred
Slide 9: Capital Expenditures Forecast
Capital Expenditures Forecast(1) 2022 – 2026 ($ Millions) $800 Likely to increase based on $700 updated 2023 IRP load growth assumptions $600 $560M per year average $500 $400 $300 ~$300M per year average previous $200 5 years $100 $0 2022 2023 2024 2025 2026 Distribution ($125-$170M) Hydro ($70-$110
Slide 10: Total System Rate Base Growth Forecast
Total System Rate Base Growth Forecast(1) $6.0 $5.5 Hells Canyon Relicensing Asset – estimated in 2024(2) $5.0 $2.2B $0.3B $ Billions $4.5 $4.0 $3.5 $0.9B $3.0 $2.7B $2.5 2011 Rate Case + Total Rate Base Estimate 2022 2023 2024 2025 2026 Langley through 2021 *5-Year Forecasted Rate Base Growth (9.8%
Slide 11: Resource Additions to Address Capacity Deficits
Resource Additions to Address Capacity Deficits • Idaho Power customer growth & transmission constraints outside Idaho Power’s service area driving need for additional resources. • Signed contracts for 120MW of storage, plus 40MW solar power purchase agreement to serve peak energy needs by summer 20
Slide 12: Boardman-to-Hemingway Project Updates
Boardman-to-Hemingway Project Updates • Oregon Energy Facilities Siting Council issued final order to grant Idaho Boardman-to-Hemingway Power a site certificate to construct the line • Idaho Power, Bonneville Power Administration (BPA), and PacifiCorp signed a non-binding term sheet in January 2022
Slide 13: 2023 Integrated Resource Plan Expected to Forecast Strong Growth
2023 Integrated Resource Plan (IRP) Expected to Forecast Strong Growth 2023 IRP Load Forecast vs. Prior IRPs* 5-Year Forecasted Annual 20-Year Forecasted Annual Growth Rate Growth Rate Retail Sales Annual Peak Retail Sales Annual Peak (Billed MWh) (Peak Demand) (Billed MWh) (Peak Demand) 2023 IRP* 6
Slide 14: Common Stock Dividend Raised 5.3%
Common Stock Dividend Raised 5.3%(1) “At this time, management expects to recommend to the Board of Directors future annual increases in the dividend of around 5%, with the intent to move over time toward the higher end of our target payout ratio of 60 to 70% of sustainable IDACORP earnings.” Lisa A
Slide 15: Solid History of Cost Management
Solid History of Cost Management 2012-2022 Operating & Maintenance (O&M) Expenses ($ Millions) “While businesses like ours tend to have to react to macro-inflationary trends as they occur, we are confident in our team’s commitment to closely watch our spending going forward… we don’t currently expec
Slide 16: 2010-2022 Earnings Per Share
2010-2022 Earnings Per Share With Earnings Support Mechanism in Place (Mid-Point of Opening EPS Guidance vs. Actuals*) February 17, 2022, Opening Guidance $5.10 $4.85-$5.05 Mid-Point of Opening Guidance Actual Diluted EPS $4.85 $4.90 $4.69 $4.70 $4.70 $4.61 $4.55 $4.49 $4.50 $4.38 $4.30 $4.21 $4.18
Slide 17: Return on Period-End Equity
Return on Period-End Equity 12% 10% 8% 9.6% 9.4% 9.3% 9.2% 9.0% 6% 4% 2% 0% Period Ended 2018 2019 2020 2021 September 30, 2022 12% 10% 8% 10.1% 9.9% 9.9% 9.9% 9.5% 6% 4% 2% 0% Shoshone Falls, near Twin Falls, Idaho Period Ended 14 2018 2019 2020 2021 September 30, 2022
Slide 18: Earnings Support/Revenue Sharing Mechanism
Earnings Support/Revenue Sharing Mechanism: If Idaho ROE < 9.4% 9.4% Earnings Support Line Ability to utilize up Mechanism Continues Beyond a Rate Case to $25 million of additional ADITCs If the Idaho Public Utilities Commission were annually to achieve (1) to approve a change to Idaho Power’s Idaho
Slide 19: Earnings Support/Revenue Sharing Mechanism
Earnings Support/Revenue Sharing Mechanism: Revenue Sharing: If Idaho ROE If Idaho ROE > 10%(1) > 10.5% Customer Benefit per $1: Pension Future rate Future rate reduction obligation reduction reduction Idaho Power Earnings Earnings Benefit Benefit Benefit per $1: $126.8 million shared with Idaho cus
Slide 20: 100% Clean Energy by 2045
100% Clean Energy by 2045 Emission Reduction Targets Aligned with Paris Agreement Target Year CO2 Emissions **Idaho Power’s planned conversion, shut down and timing of Jim Intensity Reduction Bridger units is subject to a number of assumptions and uncertainties described in the 2021 Integrated Resou
Slide 21: Idaho Power's Clean Energy Portfolio
Idaho Power’s Clean Energy Portfolio* 2021 2021 *This energy mix shows the energy we generate from company-owned resources and energy we buy through long-term contracts with wind, solar, biomass, geothermal and small-scale hydro generators. The overall mix does not represent the energy delivered to
Slide 22: A Foundation of Clean Energy
A Foundation of Clean Energy 64% Clean Sources Today 2021 IRP Plans for Coal Exit by 2028 Jim Bridger Ending Coal 2028 North Valmy Ending 2025 Boardman Shut Down 2020 Decreased Idaho Power Coal-fired Generation 8 7 *Idaho Power does not own or operate the solar, wind, geothermal, biomass, and cogene
Slide 23: Appendix
Appendix
Slide 24: Idaho Power Company Overview
Idaho Power Company Overview As of December 31, 2021 A-1
Slide 25: Regulatory Commissioners
Regulatory Commissioners Idaho Oregon Political Party Term Political Party Commissioner Term Expires Commissioner Affiliation Expires Affiliation Eric Anderson 2025 Republican Mark Thompson 2023 Republican John Chatburn 2023 Republican Megan Decker 2025 Democrat John Hammond 2027 Democrat Letha Tawn
Slide 26: Recent Regulatory Activity
Recent Regulatory Activity Annual Rate Filing Revenue Jurisdiction Filing Date Description Change Status Comments/Status Idaho 6/3/2021 Jim Bridger plant +$18.8 Rates IPUC approved as prudent all investments made at the plant since 2011, accelerated Million approved as well as cost recovery concurre
Slide 27: Assumptions Used: Last Idaho Rate Case
Assumptions Used: Last Idaho Rate Case Assumption Metric Implied Return on Equity 10.0% Allowed Return on Rate Base 7.86% Rate Base (including Langley Gulch) $2.7 Billion Implied Capital Structure 50% Equity / 50% Debt Date of last general rate update in Idaho (including Langley Gulch) July 1, 2012
Slide 28: Residential & Industrial Average Rates
Residential & Industrial Average Rates Winter Average Rates (cents / kilowatt-hour) Industrial Residential $0.08 $0.15 $0.14 $0.07 $0.13 $0.06 $0.12 $0.11 $0.05 $0.10 $0.04 $0.09 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 (1) Idaho Power National Average(1) Idaho Power National Average (1) Ed
Slide 29: 2021 Idaho Power IRP Preferred Portfolio (MWs)
2021 Idaho Power IRP Preferred Portfolio (MWs) Demand Coal Year Gas Wind Solar Storage Transmission Response Exit 2022 300 2023 120 115 20 (357) 2024 357 700 5 2025 300 105 20 (308) 2026 215 500 2027 250 5 2028 120 55 (175) 2029 100 255 2030 55 2031 2032 55 55 Reliable Affordable Clean 2033 100 2034
Slide 30: Operating Cash Flows, Liquidity, & Capital Structure
Operating Cash Flows, Liquidity, & Capital Structure Nine Months Cash Flows (millions) Ended September 30 Capital Structure as of IDACORP 2022 2021 September 30, 2022 Net Cash Provided by Operating Activities $ 269.0 $ 303.4 IDACORP Idaho Power As of June 30, 2022 Liquidity As of September 30, 2022
Slide 31: Debt Maturity Profile & Credit Ratings
Debt Maturity Profile & Credit Ratings ($ Millions) – as of 9/30/2022 IDACORP Idaho Power Current profile provides for Moody’s S&P Moody’s S&P significant flexibility in potential Long-term Baa2 BBB Baa1 BBB Issuer Rating bond issuance and tenor Short-term P-2 A-2 P-2 A-2 Outlook Stable Stable Stabl
Slide 32: All-Time High Summer & Winter System Peak Demand
All-Time High Summer & Winter System Peak Demand June 30, 2021 – 3,751 MW July 14, 2022 – 3,568 MW 3,800 System peak set prior to 2021 was surpassed 12 times between June and August 2022; new all-time 3,600 August and September peaks set in 2022 3,400 3,200 3,000 January 6, 2017 – 2,527 MW 2,800 2,6
Slide 33: Contracted Renewable Energy Projects
Contracted Renewable Energy Projects As of September 30, 2022 Under contract Total projects Total on-line Resource Type but not yet on- under contract (MW) line (MW) (MW) Cogeneration and Small Power Producers (CSPP): Wind 627 — 627 Solar 316 74 390 Hydropower 150 1 151 Other 44 — 44 Total CSPP 1,13
Slide 34: A Tradition of Sustainability
A Tradition of Sustainability Climate Change Highlights of 2021 ESG Report: ✓ Our Goal: 100% Clean by 2045 The effects of climate change are far-reaching and evolving, from potential changes in customer ✓ Reducing Carbon Emissions usage to the physical changes in weather conditions. Through the foll
Slide 35: Experienced, Diverse, Independent Directors
Experienced, Diverse, Independent Directors Committees of the Board of Directors Compensation Corp. Gov. Director Independent Audit & Human and Executive Resources Nominating Odette C. Bolano ✓ ✓ Thomas E. Carlile ✓ ✓ Richard J. Dahl ‡ ✓ ✓ ✓ Annette G. Elg ✓ ✓ ✓ Lisa A. Grow © Ronald W. Jibson ✓ ✓ J
Slide 36: Diversity in Leadership
Diversity in Leadership Board Members Board Members Our Commitment to Each Other At Idaho Power, we are committed to an inclusive 36% 27% environment where we are all valued, respected and given equal consideration for our contributions. We believe that to be successful as a company we must be able
Slide 37: 2021: One of the Safest Years on Record
2021: One of the Safest Years on Record OSHA Recordable Rates 4.5 4 3.5 3 2.5 2 1.5 1 Awarded EEI inaugural Thomas 0.5 F. Farrell, II Safety Leadership 0 and Innovation Award 2005 2017 2018 2019 2020 2021 2022 National Average* EEI (1k-<2k Employees)* Idaho Power *National Average data not yet avail
Slide 38: Our Commitment to Our Customers
Our Commitment to Our Customers Idaho Power Received some of its Highest Customer Satisfaction Ratings in Company History in 2021 My Account A-15
Slide 39: Our Commitment to Our Employees
Our Commitment to Our Employees We work together. We build together. We stand together. Throughout Idaho Power’s 100-year history, our skilled and dedicated employees have remained the foundation of our company. They fulfill our commitments to customers, shareowners and each other today and every da
Slide 40: Hells Canyon Relicensing
Hells Canyon Relicensing Application for Renewal of Federal License • Three-dam complex on the Snake River, along Idaho and Oregon border • Original license expired in 2005 • Annual license renewal since original expiration • Settlement order received 2018 approving cost prudency of $216.5M • Curren
Slide 41: Boardman to Hemingway
Boardman to Hemingway High-Voltage Transmission Line Project • Joint funding agreement January 2012 for project permitting costs – Idaho Power - 21%; BPA - 24%; PacifiCorp - 55% • Non-binding term sheet signed January 2022 regarding ownership structure; would increase Idaho Power’s ownership to ~45%
Slide 42: Gateway West
Gateway West High-Voltage Transmission Line Project • A joint project between Idaho Power and PacifiCorp • Total cost for Idaho Power’s share of project – between $250 million and $450 million, including AFUDC • PacifiCorp recently constructed and commissioned a • Record of decision issued in Novemb
Slide 43: Contact Information
Contact Information Justin S. Forsberg Director of Investor Relations & Treasury (208) 388-2728 JForsberg@idacorpinc.com WWW.IDACORPINC.COM WWW.IDAHOPOWER.COM
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