Idacorp, Inc. · NYSE:IDA
Idacorp — Mizuho Midcap Utilities Conference 2023
43 slides from Idacorp's conference presentation, June 2023
Slide 1: Summer 2023 Investor Outreach
Summer 2023 Investor Outreach June/July 2023
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on 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,
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 and Economic Expansion 2 Select Recent Regulatory Activity A-3 Idaho Economic Snapshot 3 Assumptions Used: Last Idaho General Rate Case A-4 2023 Earnings Per Share G
Slide 4: IDACORP at a Glance
IDACORP at a Glance IDACORP Financial Snapshot(1): • Revenue: $1.64 billion • Diluted earnings per share: $5.11 • Annualized Dividends per share: $3.16 Retail Revenues by Customer Class • Return on Year-End Equity: 9.2% • Net Utility Plant Assets: Irrigation Idaho Power—$5.2 billion 12% Industrial 1
Slide 5: Growth and Economic Expansion
Growth and Economic Expansion Idaho Power Customer Growth 2.2% (Year-over-year) 620,000 610,000 600,000 590,000 580,000 570,000 560,000 Twelve Months 2019 2020 2021 2022 Ended March 31, 2023 Moody’s GDP Growth Projections for Idaho Power’s Service Area: 2023: 4.7% 2024: 4.4% Residential growth near
Slide 6: Idaho Economic Snapshot
Idaho Economic Snapshot* *Source: Economic Modeling Specialist International, 2022 Q4; Data from US 3 Bureau of Economic Analysis and US Department of Labor Statistics
Slide 7: 2023 Earnings Per Share Guidance & Estimated Key Operating Metrics
2023 Earnings Per Share Guidance & Estimated Key Operating Metrics (Millions Except for Per Share Amounts) Current(1) Previous(2) IDACORP Earnings Per Diluted Share Guidance No change $ 4.95 – $ 5.15 Idaho Power Additional Amortization of Accumulated No change Approximately $15 Deferred Investment T
Slide 8: Capital Expenditures Forecast
Capital Expenditures Forecast(1) 2023 – 2027 ($ Millions) 15% increase from previous $900 5-year forecast. $800 Potential to further increase, depending on announced $650M per year average large load projects & RFP outcomes $700 $600 $500 $400 $300 ~$330M per year average previous 5 $200 years (2018
Slide 9: Total System Rate Base Growth Forecast
Total System Rate Base Growth Forecast(1) $6.5 $6.0 Hells Canyon Relicensing Asset – estimated in 2024(2) $5.5 $5.0 ~$2.7 B $ Billions $0.3B $4.5 $4.0 $3.5 $1.0 B $3.0 $2.8 B $2.5 2011 Rate Case + Total Rate Base Estimate 2023 2024 2025 2026 2027 Langley through 2022 *5-Year Forecasted Rate Base Gro
Slide 10: Resource Additions to Address Energy and Capacity Deficits
Resource Additions to Address Energy and Capacity Deficits • More than $600 million included in current capital forecasts to address energy and capacity deficits (could increase depending on 2026-2027 RFP results) • Signed contracts for 131-MW of owned storage, plus 40MW solar power purchase agreeme
Slide 11: Boardman-to-Hemingway Project Update
Boardman-to-Hemingway Project Update • Expected to break ground in 2023 – final key permits obtained • Oregon State Supreme Court affirmed Energy Facility Siting Council final order • Purchase, sale, and security agreement executed with Bonneville Power Administration (BPA) – Idaho Power’s interest
Slide 12: 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 13: 2023 IRP Preliminary Load Growth Projections
2023 Integrated Resource Plan (IRP) Preliminary Load Growth Projections 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*
Slide 14: Idaho General Rate Case Filed June 1, 2023
Idaho General Rate Case Filed June 1, 2023 • Targeting rate increase January 1, 2024 Rate Base Responding to Growth • 8.61% overall average customer rate increase (~$111 million in Idaho jurisdiction revenues) $4.0 650,000 • Idaho retail rate base of ~$3.9 billion, excluding coal- 610,000 higher rat
Slide 15: Growing Common Stock Dividend
Growing Common Stock Dividend(1) • Management expects to recommend future annual increases in the dividend of around 5% • Target payout ratio of 60 to 70% of sustainable IDACORP earnings • Annualized 2022 payout ratio was 61.8 percent as of 12/31/2022 $3.16 $3.00 $2.84 Current Target Payout Ratio: 6
Slide 16: Solid History of Cost Management
Solid History of Cost Management 2012-2023 Operating and Maintenance (O&M) Expenses ($ Millions) Other O&M Expenses (since last general rate case) May 4, 2023 $450 Affirmed Guidance $385 – $395 $400 $399 $350 $365 $361 $349 $349 $350 $349 $347 $356 $352 $340 $300 $250 $200 $150 $100 $50 $0 2012 2013
Slide 17: 2010-2023 Earnings Per Share
2010-2023 Earnings Per Share Since Earnings Support Mechanism has Been in Place (Mid-Point of Opening EPS Guidance vs. Actuals) February 16, 2023 Opening Guidance Mid-Point of Opening Guidance Actual Diluted EPS $5.11 $4.95-$5.15 $5.10 $4.95 $4.85 $4.80 $4.69 $4.70 $4.61 $4.55 $4.49 $4.50 $4.38 $4.2
Slide 18: Return on Period-End Equity
Return on Period-End Equity 10% 8% 9.4% 9.3% 9.2% 9.2% 9.5% 6% 4% 2% 0% Period Ended 2019 2020 2021 2022 March 31, 2023 12% 10% 8% 9.9% 9.9% 9.9% 9.7% 9.8% 6% 4% 2% Shoshone Falls, near Twin Falls, Idaho 0% Period Ended 15 2019 2020 2021 2022 March 31, 2023
Slide 19: 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 20: 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 cust
Slide 21: 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 Resourc
Slide 22: Idaho Power's Clean Energy Portfolio
Idaho Power’s Clean Energy Portfolio* 2022 (43.3% 2017-2021) 2022 *Clean energy from our low-cost hydropower projects has served as a key component of our energy mix throughout our over 100-year history. Once again, clean hydropower accounted for our largest energy source in 2022, even though below-
Slide 23: A Foundation of Clean Energy
A Foundation of Clean Energy 65% Clean Sources Today 2021 IRP Plans for Coal Exit by 2028 Jim Bridger Ending Coal 2028 North Valmy Ending Coal 2025 Boardman Shut Down 2020 Decreased Idaho Power Coal-fired Generation 8 50% 7 6 MWh (millions) 5 4 *Idaho Power does not own or operate the solar, wind, g
Slide 24: Appendix
Appendix
Slide 25: Idaho Power Company Overview
Idaho Power Company Overview As of December 31, 2022 A-1
Slide 26: 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 Hammond 2027 Democrat Megan Decker 2025 Democrat Edward Lodge 2029 Republican Letha Tawne
Slide 27: Select Recent Regulatory Activity
Select Recent Regulatory Activity Annual Rate Revenue Jurisdiction Filing Date Filing Description Change Status Comments/Status Idaho 6/3/2021 Jim Bridger Plant +$18.8 Million Rates IPUC approved as prudent all investments made at the plant since 2011, as well as cost recovery Accelerated Recovery a
Slide 28: Assumptions Used: Last Idaho Rate General Case
Assumptions Used: Last Idaho Rate General 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
Slide 29: Residential and Industrial Average Rates
Residential and Industrial Average Rates Summer 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 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 (1) Idaho Power National Average(1) Idaho Power National Average (1)
Slide 30: Operating Cash Flows, Liquidity, and Capital Structure
Operating Cash Flows, Liquidity, and Capital Structure Cash Flows (millions) Quarter Ended March 31 IDACORP 2023 2022 Capital Structure as of March 31, 2023 Net Cash Provided by Operating Activities $ (90.4) $ 93.0 IDACORP Idaho Power Liquidity As of March 31, 2023 (millions) As of(1)June 30,Idaho I
Slide 31: Debt Maturity Profile and Credit Ratings
Debt Maturity Profile and Credit Ratings ($ Millions) – as of 5/4/2023 Current profile provides for IDACORP Idaho Power significant flexibility in potential Moody’s S&P Moody’s S&P bond issuance and tenor Long-term Baa2 BBB Baa1 BBB Issuer Rating Short-term P-2 A-2 P-2 A-2 Outlook Stable Stable Stab
Slide 32: All-Time High Summer and Winter System Peak Demand
All-Time High Summer and Winter System Peak Demand June 30, 2021 – 3,751 MW Summer 2022 peak: 3800 July 14, 2022 – 3,568 MW Idaho Power system reached all-time August and September peak demand days in 2022 3400 3000 December 22, 2022 – 2,604 MW 2600 2200 1800 8:10 8:45 9:20 9:55 1:10 1:45 2:20 2:55
Slide 33: Contracted Renewable Energy Projects
Contracted Renewable Energy Projects As of March 31, 2023 Total on-line Under contract Total projects Resource Type megawatts but not yet on- under contract (MW) line (MW) (MW) Mandatory contracts under Public Utility Regulatory Policies Act of 1978 (PURPA): Wind 627 — 627 Solar 316 74 390 Hydropowe
Slide 34: A Tradition of Sustainability
A Tradition of Sustainability A-10
Slide 35: Experienced, Diverse, Independent Directors
Experienced, Diverse, Independent Directors Committees of the Board of Directors Compensation Corp. Gov. Director Independent Audit and Human and Executive Resources Nominating Odette C. Bolano ✓ ✓ Richard J. Dahl ‡ ✓ ✓ ✓ Annette G. Elg ✓ ✓ ✓ Lisa A. Grow © Ronald W. Jibson ✓ ✓ Judith A. Johansen ✓
Slide 36: Diversity in Leadership
Diversity in Leadership Board Members Board Members Our Commitment to Each Other 42% At Idaho Power, we are committed to an inclusive 25% 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: Recent Safety Performance
Recent Safety Performance 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 in 2022 10-Yr Avg. 2018 2019 2020 2021 2022 2023 National Average* EEI (1k-<2k Employees)* Idaho Power *National Average and EEI data not y
Slide 38: Our Commitment to Our Customers
Our Commitment to Our Customers Standard Measurement Idaho Power National Average* Average Number of Outages (System Average 1.16 1.39 Interruption Frequency Index) Average Duration of Outages (System Average 2.52 hours 7.32 hours Interruption Duration Index) Average Time Until Restoration (Customer
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% • March 2023, BPA, PacifiCorp, and Idaho Power signed agreements to transfer ownership interest to Idaho Power’s ownership
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 $300 million and $500 million, including AFUDC • PacifiCorp has constructed and commissioned a 140- • Record of decision issued in Novemb
Slide 43: Contact Information
Contact Information Justin S. Forsberg Director of Investor Relations and Treasury (208) 388-2728 JForsberg@idacorpinc.com WWW.IDACORPINC.COM WWW.IDAHOPOWER.COM