Idacorp, Inc. · NYSE:IDA
Idacorp — Credit Suisse Vail Summit 2023
43 slides from Idacorp's conference presentation, Feb 23, 2023
Slide 1: Investor Information
Investor Information Spring 2023 Investor Outreach February/March 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 Recent Regulatory Activity A-3 Idaho Economic Snapshot 3 Assumptions Used: Last Idaho Rate Case A-4 2022 Earnings Per Share Guidance Residen
Slide 4: IDACORP at a Glance
IDACORP at a Glance IDACORP Financial Snapshot(1): • Revenue: $1.64 billion • Diluted earnings per share: $5.11 Retail Revenues by Customer Class • Annualized Dividends per share: $3.16 • Return on Year-End Equity: 9.2% Irrigation • Net Utility Plant Assets: 12% Idaho Power—$5.2 billion Industrial 1
Slide 5: Growth and Economic Expansion
Growth and Economic Expansion Idaho Power Customer Growth 2.4% (Year-over-year) 620,000 610,000 600,000 590,000 580,000 570,000 560,000 550,000 2018 2019 2020 2021 2022 Moody’s GDP Growth Projections for Idaho Power’s Service Area: 2023: 3.9% 2024: 4.5% Residential growth near Meridian, Idaho 2
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 and Estimated Key Operating Metrics
2023 Earnings Per Share Guidance and Estimated Key Operating Metrics (Millions Except for Per Share Amounts) 2023 Estimate(1) 2022 Actual(2) IDACORP Earnings Per Diluted Share Guidance $ 4.95 – $ 5.15 $ 5.11 Idaho Power Additional Amortization of Accumulated Approximately $15 None Deferred Investmen
Slide 8: Capital Expenditures Forecast
Capital Expenditures Forecast(1) 2023 – 2027 ($ Millions) 15% increase from previous $900 5-year forecast. $800 Potential to further increase, depending on $650M per year average announced large load projects $700 $600 $500 $400 $300 ~$330M per year average previous 5 $200 years (2018-2022) $100 $0
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• Idaho Power customer growth and transmission constraints outside Idaho Power’s service area driving need for additional resources • More than $600 million included in current capital forecasts to address energy and capacity deficits • Signe
Slide 11: Boardman-to-Hemingway Project Update
Boardman-to-Hemingway Project Update • Expected to break ground in summer 2023 – key permits obtained • Oregon Energy Facilities Siting Council issued final order to grant Idaho Power a site certificate to construct the line • Bonneville Power Administration (BPA) announced in January 2023 negotiati
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 Integrated Resource Plan 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 Expected June 1, 2023
Idaho General Rate Case Expected June 1, 2023 Rate Base Responding to Growth $4.0 650,000 • Currently plan to file application to Idaho 610,000 higher rate base Public Utilities Commission June 1, 2023 $ Billions $3.5 • Targeting rate increase January 1, 2024 570,000 $1.0 Billion $3.0 • Since last g
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) “We don’t currently expect to see a rate of increase in O&M in 2023, like we saw in 2022. And in fact, our 2023 guidance assumes a modest overall decline compared with 2022.” Brian R. Buckham, IDACORP SV
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 12% 10% 8% 9.6% 9.4% 9.3% 9.2% 9.2% 6% 4% 2% 0% 2018 2019 2020 2021 2022 12% 10% 8% 10.1% 9.9% 9.9% 9.9% 9.7% 6% 4% 2% Shoshone Falls, near Twin Falls, Idaho 0% 15 2018 2019 2020 2021 2022
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 cus
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 Resou
Slide 22: Idaho Power's Clean Energy Portfolio
Idaho Power’s Clean Energy Portfolio* 2022 (43.3% 2017-2021) 2022 *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 en
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 General Rate 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) Year Ended December 31 IDACORP 2022 2021 Capital Structure as of December 31, 2022 Net Cash Provided by Operating Activities $ 351.3 $ 363.3 IDACORP Idaho Power As of June 30, 2022 Liquidity As of December 31, 2022 Debt 45%
Slide 31: Debt Maturity Profile and Credit Ratings
Debt Maturity Profile and Credit Ratings ($ Millions) – as of 12/31/2023(1) 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
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 December 31, 2022 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 Hydrop
Slide 34: A Tradition of Sustainability
A Tradition of Sustainability Highlights of 2021 ESG Report: Climate Change • Our Goal: 100% Clean by 2045 • Reducing Carbon Emissions The effects of climate change are far-reaching and evolving, from potential changes in customer • Our 20-year Plan: Preparing for a Clean Future usage to the physica
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 ✓ ✓ Thomas E. Carlile ✓ ✓ Richard J. Dahl ‡ ✓ ✓ ✓ Annette G. Elg ✓ ✓ ✓ Lisa A. Grow © Ronald W. Jibson ✓ ✓
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: 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 2010 10-Yr Avg. 2018 2019 2020 2021 2022 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% • January 2023, BPA issued Letter to Region announcing conclusion to negotiations; to transfer ownership interest to Idaho
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 recently constructed and commissioned a • 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