Idacorp, Inc. · NYSE:IDA
Idacorp — EEI Financial Conference 2019
47 slides from Idacorp's conference presentation, Nov 5, 2019
Slide 1: EEI Financial Conference Analyst Information November 2019
Exhibit 99.1 EEI Financial Conference Analyst Information November 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements In addition to the historical information contained in this presentation, this presentation contains (and oral communications made by IDACORP, Inc. and Idaho Power Company may contain) statements, including, without limitation, earnings guidance and estimated key operating
Slide 3: Table of Contents
Appendix Table of Contents Idaho Power Service Area A-1 IDACORP at a Glance 1 Recent Leadership Changes A-2 Regulatory Commissioners A-3 Strong Track Record 2 Residential & Industrial Average Rates A-4 Increasing Customer Growth Rate 3 Debt Maturity Profile & Credit Ratings A-5 Idaho Economic Snapsh
Slide 4: IDACORP at a Glance
IDACORP at a Glance Revenues by Customer Class (2018) IDACORP Financial Snapshot(1): • Revenue: $1.37 billion • Diluted earnings per share: $4.49 Irrigation 13% • Eleventh consecutive year of earnings growth • Dividends per share: $2.68 Industrial Residential • Return on Year-End Equity: 9.6% 16% 45
Slide 5: Strong Track Record
Strong Track Record * 2 *Dividends per share as of November 2019
Slide 6: Increasing Customer Growth Rate
Increasing Customer Growth Rate 570,000 Idaho Power Customer Growth 2.6% 560,000 2.3% 550,000 2.0% 540,000 530,000 1.8% 1.8% 520,000 Twelve Months 2015 2016 2017 2018 Ended Sept. 30, 2019 No. 1 Fastest Growing State – Two Years in a Row (Idaho) — U.S. Census Bureau, published December 2018 No. 1 Bes
Slide 7: Idaho Economic Snapshot
e _— : Idaho Economic Snapshot — $66.28 BLO | 833,350 see Top Emerging Industries — 7 —— Electrical Equipment Information Services Beverage Data Processing Advanced Manutacturing Manufacturing & Hosting Manufacturing 5-Year Historic 18% bar crown 10yr Forecasted Job Growth © Job Growth 726k aan eS 8
Slide 8: Recently Announced Projects
Recently Announced Projects Cedar Ridge Dairy Products 5
Slide 9: 2010–2019 Historic EPS Mid-Point vs. Actuals
2010–2019 Historic EPS Mid-Point vs. Actuals* February 21, 2019 $4.49 $4.50 Opening Guidance Mid-Point of Opening Guidance Actual Diluted EPS $4.30-$4.45 $4.30 $4.38 $4.10 $4.21 $4.18 $3.90 $3.94 $3.98 $3.85 $3.87 $3.88 $3.70 $3.73 Opening Guidance $3.64 $3.50 Mid-Point (1) $3.48 with ADITC $3.43 (1
Slide 10: Common Stock Dividend Growth
Common Stock Dividend Growth “IDACORP’s Board of Directors has approved an annual dividend increase every year since 2012, resulting in a cumulative average growth rate of over 9%. These changes represent an overall increase of 123 percent in IDACORP’s quarterly dividend over that period. Our custom
Slide 11: Forecasted Average Peak System Load and Resource Capacity
Forecasted Average Peak System Load and Resource Capacity 2019-2023 (MW)* 4,100 Total Requirements Total Capacity 3,600 3,100 2,600 2,100 Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar * Forecasted Average System Load and Resource Capacity information as included in the 2019 Integrated Resource Pl
Slide 12: Integrated Resource Plan (IRP)
Integrated Resource Plan (IRP) 2019 IRP Load Forecast vs. Prior IRPs 5-Year Forecast 20-Year Forecast Annual Annual Annual Annual Growth Rate: Growth Rate: Growth Rate: Growth Rate: Retail Sales Annual Peak Retail Sales Annual Peak (Billed MWh) Demand (Billed MWh) Demand 2019 IRP 1.3% 1.4% 1.0% 1.2%
Slide 13: Capital Expenditures Forecast 2019–2023
Capital Expenditures Forecast(1) 2019 – 2023 ($ Millions) 350 $875M – $925M* 300 250 200 150 100 50 0 2019 2020 2021-2023 Distribution ($85-$105M) Hydro ($50-$70M) *Amounts do not include potential long- Transmission ($35-$65M) General Plant ($40-$60M) term project additions beyond 2020 Thermal ($20
Slide 14: Potential Long-Term Rate Base Growth
Potential Long-Term Rate Base Growth ($ Millions) Potential projects not included in the current 5-year 5500 forecast could add an additional ~$1.3 billion to rate base going forward (amounts are estimated as of Oct. 2019): 5000 $278M Hells Canyon Relicensing Costs ($278M) $300M $100M 4500 $324M New
Slide 15: 2019 EPS Guidance & Key Financial & Operating Metrics
2019 Earnings Per Share Guidance & Estimated Key Financial & Operating Metrics (Millions Except for Per Share Amounts) 2019 Estimates Current(1) Previous(2) IDACORP Earnings Per Diluted Share Guidance $ 4.40 – $ 4.50 $ 4.35 – $ 4.50 Idaho Power Additional Amortization of Accumulated No Change None D
Slide 16: Sustained Cost Control
Sustained Cost Control 2012-2019 O&M Expenses ($ Millions) Other Operating and Maintenance Expenses October 31, 2019 $400 Updated Guidance $345 – $355 $350 $364.5 $349.0 $348.9 $349.6 $340.1 $349.3 $346.7 $300 $250 $200 $150 $100 $50 $0 2012 2013 2014 2015 2016 2017 2018 2019 13
Slide 17: Return on Year-End Equity - IDACORP
Return on Year-End Equity - IDACORP 12% 10% 9.6% 9.5% 9.2% 9.4% 8% 8.6% 6% 4% 2% 0% Twelve Months 2015 2016 2017 2018 Ended Shoshone Falls, near Twin Falls, Idaho Sept. 30, 2019 14
Slide 18: ADITC Earnings Support/Revenue Sharing Mechanism: Existing
ADITC Earnings Support/Revenue Sharing Mechanism: Existing(1) As of December 31, 2018, Idaho Power has utilized $0 of $45 million available. (1) As approved by the Idaho Public Utilities Commission on October 9, 2014, Order No. 33149. Mechanism does not require a rate case stay out provision. (2) As
Slide 19: ADITC Mechanism: Sharing Terms Through December 31, 2019
ADITC Earnings Support/Revenue Sharing Mechanism: Sharing Terms Through Existing(1) December 31, 2019 Revenue Sharing: If Idaho ROE(2) If Idaho ROE > 10% > 10.5% Customer Benefit per $1: Pension Future rate Future rate reduction obligation reduction reduction Idaho Power Earnings Earnings Benefit pe
Slide 20: Why Invest in IDACORP?
Why Invest in IDACORP? Constructive Common Stock Regulatory Environment Dividend Growth Economic Strong Growth Balance Sheet Sustainable Environmental & Social Cost Control Responsibility Achieving Record Customer Return on Equity Satisfaction Low Cost Culture of Integrity HellsHells Canyon Canyon D
Slide 21: Appendix
Exhibit 99.1 Appendix
Slide 22: Idaho Power Service Area
Idaho Power Service Area Exceptional, Independent, Integrated A-1
Slide 23: Recent Leadership Changes
Recent Leadership Changes A-2
Slide 24: Regulatory Commissioners
Regulatory Commissioners Idaho Oregon Political Party Term Political Party Commissioner Term Expires Commissioner Affiliation Expires Affiliation Eric Anderson 2025 Republican Stephen Bloom* 2019 Republican Paul Kjellander 2023 Republican Megan Decker 2021 Democrat Kristine Raper 2021 Democrat Letha
Slide 25: Residential & Industrial Average Rates
Residential & Industrial Average Rates Summer Average Rates (cents / kilowatt-hour) Industrial Residential $0.08 $0.14 $0.07 $0.12 $0.06 $0.10 $0.05 $0.04 $0.08 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 (1) Idaho Power National Average Idaho Power National Average(1) A-4 (1) Edison Electric
Slide 26: Debt Maturity Profile & Credit Ratings
A - Debt MaturityDebt ProfileMillions)($ Strong Financial Position 5 Issuer Rating Short Long 2019 Outlook - - 2020 term term $100 2021 2022 $75 Moody’s Stable 2023 Baa1 P - $75 2 2024 $50 IDACORP 2025 $20 2026 $116 Stable S&P BBB A Manageable refinancingneeds Manageable 2027 - and windowsopportunit
Slide 27: Cash Flows & Liquidity
Strong Financial Position Operating Cash Flows ($ Millions) Twelve Months Ended Sept. 30, IDACORP 2015 2016 2017 2018 2019 Net cash provided by operating activities $ 353.2 $ 344.2 $ 435.2 $ 491.6 $ 412.7 Liquidity As of September 30, 2019 ($ Millions) Idaho IDACORP(1) Power Revolving Credit Facilit
Slide 28: All-Time High Summer & Winter System Peak Demand
All-Time High Summer & Winter System Peak Demand July 7, 2017 – 3,422 MW 3,500 January 6, 2017 – 2,527 MW 3,000 July 22, 2019 – 3,242 MW (180 MW below all-time high, included demand response event) 2,500 2,000 1,500 1,000 0006 0022 0001 0002 0003 0004 0005 0007 0008 0009 0010 0011 0012 0013 0014 001
Slide 29: Contracted Renewable Energy Projects
Contracted Renewable Energy Projects As of September 30, 2019 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 290 30 320 Hydroelectric 147 2 149 Other 56 — 56 Total CSPP 1
Slide 30: Experienced, Diverse, Independent Directors
Environmental Social Governance Experienced, Diverse, Independent Directors Committees of the Board of Directors Corp. Gov. Director Independent Audit Compensation and Executive Nominating Darrel T. Anderson © Thomas E. Carlile ✓ ✓ Richard J. Dahl ‡ ✓ ✓ ✓ Annette G. Elg ✓ ✓ Ronald W. Jibson ✓ ✓ Judi
Slide 31: Idaho Power's 2018 Energy Portfolio
Environmental Social Governance Idaho Power’s 2018 Energy Portfolio A-10 Data Source: U.S. Energy Information Administration
Slide 32: A Foundation of Clean Energy
Environmental Social Governance Decreased Idaho Power Coal-fired Generation 8 A Foundation of Clean Energy 7 6 5 4 MWh (millions) MWh 3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Current Coal-fired Plant Shutdown Plan* *Idaho Power’s planned shut down and timing of Jim Bri
Slide 33: A Tradition of Sustainability
Environmental Social Governance A Tradition of Sustainability Highlights of 2018 Sustainability Report: ✓ Adapting to a Changing Climate ✓ Fish Habitat Restoration ✓ Hydroelectric Project Operations ✓ Electricity Demand ✓ Vegetation Management For information on Idaho Power’s rich ✓ CO2 Emissions In
Slide 34: California vs. Idaho 2018 Clean Energy Portfolio Mix
California vs. Idaho 2018 Clean Energy Portfolio Mix Achieving 100 percent renewable energy in California will require 200x the energy storage currently available in the state. – Bloomberg Getting to 100 percent renewable in California would increase costs over 30X, assuming lithium-ion batteries co
Slide 35: ADITC Earnings Support/Revenue Sharing Mechanism: As Approved
ADITC Earnings Support/Revenue Sharing Mechanism: As Approved(1) If the Idaho Public Utilities Commission were to approve a change to Idaho Power’s allowed annual Idaho ROE as part of a general rate (2) case proceeding effective on or after January 1, 2020, earnings support line reverts to 95% of th
Slide 36: ADITC Mechanism: Sharing Terms Beginning January 1, 2020
ADITC Earnings Support/Revenue Sharing Mechanism: Sharing Terms Beginning As Approved(1) January 1, 2020 Revenue Sharing: If Idaho ROE If Idaho ROE > 10%(2) > 10.5% Customer Benefit per $1: Pension Future rate obligation Future rate reduction reduction reduction Idaho Power Earnings Earnings Benefit
Slide 37: Idaho Tax Reform Settlement
Idaho Tax Reform Settlement Annual Tax Reform Benefits By Year(1) (Millions) June 1, 2018 – June 1, 2019 – May 31, 2019 May 31, 2020 Future Years Rate Reduction Benefit (annual) $ 18.7 $ 18.7 $ 18.7 Non-Cash Customer Benefit (annual) 7.4 7.4 7.4 One-Time Benefits(2) 7.8 2.7 – Total Annual Customer B
Slide 38: 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 39: Boardman to Hemingway 500kV Transmission Line Project
Boardman to Hemingway 500kV Transmission Line Project • Joint funding agreement January 2012 for project permitting costs – Idaho Power - 21% – BPA - 24% – PacifiCorp - 55% • 300 mile, 500-kV transmission line • In-service date – 2026 or beyond • Capacity: – 1,000 MW east to west – 1,050 MW west to
Slide 40: Gateway West 500kV Transmission Line Project
Gateway West 500kV 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 • Record of decision for segments 8 and 9 issued in • Record of decision issued in November 2013
Slide 41: Western Energy Imbalance Market
Western Energy Imbalance Market • Idaho Power began participating in April 2018 • Order from Idaho Public Utilities Commission provides Idaho Power opportunity to recover actual costs of its participation in EIM through power cost adjustment (PCA) mechanism • EIM automatically balances supply and de
Slide 42: Weather Outlook November 2019 Through January 2020
Weather Outlook November 2019 Through January 2020 A-21 Source: NOAA, National Oceanic Atmospheric Administration, U.S. Dept. of Commerce, October 17, 2019
Slide 43: Diversity in Leadership
Environmental Social Governance Diversity in Leadership Board Members Senior Management 33% 36% Men Women Men Women Our Commitment to Each Other At Idaho Power, we are committed to an inclusive environment where we are all valued, respected and given equal consideration for our contributions. We bel
Slide 44: Our Commitment to Safety
Environmental Social Governance Our Commitment to Safety 5 4.5 4 OSHA Recordable Rates 3.5 3 2.5 2 1.5 1 0.5 0 2000 2014 2015 2016 2017 2018 Jul 2019 National Average EEI (1k-<2k Employees) Idaho Power A-23
Slide 45: Our Commitment to Our Customers
Environmental Social Governance Our Commitment to Our Customers A-24
Slide 46: Our Commitment to Our Employees
Environmental Social Governance 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 a
Slide 47: Contact Information
Contact Information Darrel T. Anderson Justin S. Forsberg IDACORP President & Chief Executive Officer Director of Investor Relations & Treasury (208) 388-2650 (208) 388-2728 DAnderson@idahopower.com JForsberg@idacorpinc.com Lisa A. Grow Idaho Power President (208) 388-2243 LGrow@idahopower.com Steve