Idacorp, Inc. · NYSE:IDA
Idacorp — EEI Financial Conference 2018
38 slides from Idacorp's conference presentation, Nov 6, 2018
Slide 1: EEI Financial Conference – IDACORP Analyst Information
EEI Financial Conference meIDACORP Analyst Information San Francisco, CA November 2018
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
Table of Contents IDACORP at a Glance 1 Strong Track Record 2 Low Cost Energy — Attracting Growth 3 Recent Economic Growth 4 Forecasted Average Peak System Load & Capacity 5 Historical Earnings Guidance vs. Actual EPS 6 Estimated Key Financial & Operating Metrics — 20187 Common Stock Dividend Growth
Slide 4: IDACORP at a Glance
IDACORP at a Glance IDACORP Financial Snapshot"): e Revenue: $1.35 billion Revenues by Customer Class (2017) e Diluted earnings per share: $4.21 Irrigation e Tenth consecutive year of earnings growth 12% e Dividends per share: $2.52 ; IDA Return on Year-End Equity: 9.4% LISTED e Net Utility Plant As
Slide 5: Strong Track Record
Strong Track Record New Revenue Growth e Core Business Improvement e Productive Regulatory Focus Earnings Per Diluted Share i S } e 2 1 10 Consecutive Years of Growth Cumulative (0) Shareholder O RETURN The Past 3 Years ran the OD Percentile Among Our Peers Quarterly Dividend Increase 110% Increase
Slide 6: Low Cost Energy — Attracting Growth
Low Cost Energy — Attracting Growth 550,000 540,000 530,000 520,000 510,000 Idaho Power Customer Growthz2.2% 2.0% 1.8% 1.8% - 1.4% Ld 2014 2015 2016 2017 : Twelve Months Ended 9/30/2018 No. 1 Fastest Growing City in Nation (Boise) — Forbes Magazine, published February 2018 No. 1 Highest Percentage o
Slide 7: Recent Economic Growth
Recent Economic Growth Large Commercial & Industrial CUSTOMER Price Pump HQ, Sonoma, CA
Slide 8: Forecasted Average Peak System Load and Resource Capacity 2018-2022
Forecasted Average Peak System Load SS IDACORP ' and Resource Capacity 2018-2022 (mw) 3,900 —Total Requirements Tota+Capacity 3,400 Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar 5 * Forecasted Average System Load and Resource Capacity information included in the 2017 IRP is subject to change.
Slide 9: 2010-2018 Historic EPS Mid-Point vs. Actuals
2010-2018 Historic EPS Mid-Point vs. Actuals* February22, 2018 Opening Guidance $4.30 $4.10-$4.25 lm Mid-Point of Opening Guidance Actual Diluted EPS $4.10 $3.90 $3.70 $3.50 $3.30 Opening Guidance $3.10 Mid-Point with ADITC $2.90 Mechanism in place = $2.70 5.47% CAGR $2.50 $2.30 2010 2011 2012 2013
Slide 10: 2018 Earnings Per Share Guidance & Estimated Key Financial & Operating Metrics
2018 Earnings Per Share Guidance & Estimated Key Financial & Operating Metrics (Millions Except for Per Share Amounts) 2018 Estimates Current Previous!) IDACORP Earnings Per Diluted Share Guidance $4.40-$ 4.50 $4.20-$ 4.30 Idaho Power Operations & Maintenance Expense!) No Change $ 345-$ 355 Idaho Po
Slide 11: Common Stock Dividend Growth
Common Stock Dividend Growth “IDACORP’s Board of Directors has approved a dividend increase effective every year since 2012. Cumulatively, these changes represent an increase of 110 percent in IDACORP’s quarterly dividend over that period. As customer and earnings growth has continued, we have also
Slide 12: Sustained Cost Control
Sustained Cost Control 2012-2018 O&M Expenses (S Millions) Other Operating and Maintenance Expenses") November 1, 2018 $400 $350 $300 $250 $200 $150 $100 $50 $o $349.0 Affirmed Guidance $345-$355) ; 1, Amountsrecorded in 2014-2017 have been revised asa result of Accounting Standards Update (ASU) 201
Slide 13: Return on Year-End Equity
10 12% 10% 8% 6% 4% 2% 0% 9.9% ata | 2014 2015 2016 2017 Twelve Months Ended September 30, 2018 Historic Swan Falls Dam, Idaho
Slide 14: Regulatory & Project Updates
qi Regulatory & Project Updates Evergreen Extension of Earnings Support & Revenue Sharing Mechanism Settlement stipulation approved in Idaho — May 2018 Tax Reform Dockets Settlement stipulations approved in Idaho and Oregon — May 2018 Western EIM Docket Settlement approved in Idaho — July 2018 On-Si
Slide 15: ADITC Earnings Support/Revenue Sharing Mechanism
ADITC Earnings Support/Revenue Sharing Mechanism Comparison of Terms: Existing(1) and as Approved(2) 9.5% 9.3% 9.1% 8.9% 8.7% 8.5% 8.3% Terms Through December 31, 2019 If Idaho ROE < 9.5% _A | Earnings Support Line Ability to utilize up to $25 million of additional ADITCs annually to achieve Idaho R
Slide 16: ADITC Earnings Support/Revenue Sharing Mechanism
ADITC Earnings Support/Revenue Sharing Mechanism Comparison of Terms: Existing(1) and as Approved(2) Sharing Terms Through ing Terms Beginning December 31, 2019 January 1, 2020 Revenue Sharing: _ If Idaho ROE) If Idaho ROE If Idaho ROE If Idaho ROE > 10.5% Customer Benefit per $1: Pension Pension Fu
Slide 17: Why Invest in IDACORP?
Why Invest in IDACORP? . Common Stock Dividend Growth: ES Ee ~ Low Cost 2 Hydroelectric Generation > Strong eo ‘Financial Position . » Constructive ag Regulatory Environment > Social and Environmental _| Economic Growth Responsibility ane mre { es ener . Achieving Succession Financial Targets _ Plan
Slide 18: Appendix
Appendix
Slide 19: Idaho Power Service Area
Idaho Power Service Area Exceptional, Independent, Integrated Generation 1,706 MW Hydro (17 Facilities) 1,118 MW Coal (3 Plants) 762 MW Natural Gas (3 Plants) 5_MW Diesel (1 Facility) Step-Up Station 3,591 Total MW 24 in service Hydroelectric Dam Transmission 4,857 miles of high-voltage transmission
Slide 20: Regulatory Commissioners
Regulatory Commissioners SS Commissioner Political Party Affiliation Commissioner Political Party Affiliation Eric Anderson Republican Stephen Bloom Republican Paul Kjellander Republican Megan Decker Democrat Kristine Raper Democrat Letha Tawney Democrat Appointed to Staggered 6-Year Terms Appointed
Slide 21: Residential & Industrial Average Rates
$0.08 $0.07 $0.06 $0.05 $0.04 A-3(1)Edison Electric Institute “Typical Bills and Average Rates Report” 12 Months Ending 6/3072018 Industrial Residential a ae << 2014 2015 2016 2017 2018 2013 2014 2015 20162017 —@Idaho Power National Average aa Residential & Industrial Average Rates Summer Average Ra
Slide 22: Capital Expenditures Forecast
Capital Expenditures Forecast As of February 22, 2018) 2018 — 2022 ($ Millions) 2018 2019 2020-2022 Expected Capital Expenditures (excluding allowance for funds used during construction (AFUDC)) $ 280-290 $ 285 -300 $ 850-900 Examples of Infrastructure Projects ($ annually, except as noted) e Transm
Slide 23: Strong Financial Position: Debt Maturity Profile
Strong Financial Position Debt Maturity Profile ($ Millions) IDACORP Idaho Power Long-term Baal BBB a3 BBB Issuer ee ee i Stable Stable Stable Stable No Near-Tem Manageable refinancing Refinancing needs and windows of Pressure opportunity | 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 24: Strong Financial Position: Cash Flows & Liquidity
Strong Financial Position Operating Cash Flows ($ Millions) Lenie Months Ended sept. 30, IDACORP 2014 2015 2016(112017!401809 Net cash provided by operating activities $364.3 $353.2 $344.2 $435.2 $455.1 Liquidity As of September 30, 2018 (§ Millions) Idaho IDACORP®) Power Revolving Credit Facility —
Slide 25: Integrated Resource Plan
Integrated Resource Plan 2019 Preliminary Load Forecast 2017 IRP— Acknowledged by IPUC ear Forecast 20-Year Forecast February 2018, OPUC April 2018 ee ae Aes Re 2017 Preferred Portfolio* RetailSales © AnnualPeak —_RetailSales © Annual Peak (Billed MWh) Demand (Billed MWh) Demand re Resource 2019 IRP
Slide 26: All-Time High Summer & Winter System Peak Demand
00:00 All-Time High Summer & Winter System Peak Demand - 2017 July 7, 2017 16:00- 3,422 MW 3,500 / 3,000 July 9, 2018 - 3,392 MW (30 MW belowall-time high) \ 2,500 2,000 1,500 1,000 2eesyxsyenesveusneysunsysneugnsnengeunsnsyne SanAReTaAAaaeanaratsannanetTaAAgaenmnastannetaAgaenastga SAAHKFSRRSKERRSS
Slide 27: Contracted Renewable Energy Projects
™ =SiIDACORP l Contracted Renewable Energy Projects ; As of September 30, 2018 san Total on-line Under contract Total projects Resource Type (Mw) but not yet on- under contract line (MW) (mw) Cogeneration and ‘Small Power Producers (CSPP): Wind 627 = 627 Solar 290 27 317 Hydroelectric 147 = 149 Othe
Slide 28: Corporate Excellence
Corporate Excellence Our 10 Directors Bring a Balance of Relevant Skills to Our Boardroom @ seemeneees @ sam: ae ones =. @ snnnenaan: Q =m: onterpte oni saiocines (i eemeeen 7 g mm? _ Banking Legal/Risk Our Directors Exhibit an Effective Mix of Fresh Perspective, Experience, and Diversity Average Av
Slide 29: Managing Environmental Impact
All Managing Environmental Impact Idaho Power’s 2017 Energy Portfolio 954% About our Long-term Purchases \daho Powers committed to supporting renewable energy sources such as wind and solar, and we buy them as pat of our portoio mix In tur, wesellthe Renewable Energy Credits (RECS) yrchases to offse
Slide 30: California vs. Idaho 2017 Portfolio Mix
California vs. Idaho 2017 Portfolio Mix 68% © 49.5% Hydro * 18.7% Purchased from wind, solar, and other CO2 free sources. RECS are sold for customer benefit. } Ae va Achieving 100 percent renewable energy in California will require 200x the energy storage currently available in the state. California
Slide 31: Idaho Tax Reform Settlement
A138 Idaho Tax Reform Settlement Annual Tax Reform Benefits By Year) (Millions) June 1, 2018— June 1, 2019- May 31, 2019 May 31, 2020 Forurew/ears Rate Reduction Benefit (annual) $18.7 $18.7 $18.7 Non-Cash Customer Benefit (annual) 74 74 74 One-Time Benefits!) 78 27 = Total Annual Customer Benefit §
Slide 32: Hells Canyon Relicensing
Hells Canyon Relicensing Application for Renewal of Federal License e¢ Three-dam complex on the Snake River, along Idaho and Oregon border ¢ Original license expired in 2005 e Annual license renewal since original expiration e Settlement order received 2018 approving prudency of $216.5 million of co
Slide 33: Boardman to Hemingway 500kV Transmission Line Project
Boardman to Hemingway 500kV Transmission Line Project e Joint funding agreement January 2012 for project permitting costs ¢ Idaho Power -21% © BPA-24% © PacifiCorp —55% e 300 mile, 500-kV transmission line e In-service date — 2025 or beyond e Capacity: e@ 1,000 MW east to west e 1,050 MW west to eas
Slide 34: Gateway West 500kV Transmission Line Project
Gateway West 500kV Transmission Line Project sme Segment 8 w= Segment 9 fm Segments 1-7 and 10 gg Modey Neon Snake River Bis of roy NCA e 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 © Reco
Slide 35: Western Energy Imbalance Market
A-17 Western Energy Imbalance Market “Pending stote commission approval e Idaho Power began participating in April 2018 e 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 e
Slide 36: Weather Outlook
Weather Outlook November 2018 Through January 2019 Precipitation 1) 33% to 40% Chance of Below Normal Precipitation [BE 40% to 50% Chance of Below Normal Precipitation [BE 50% to 60% Chance of Below Normal Precipitation IB 60% or Greater for Below Normal Precipitation 33% to 40% Chance of Above Norm
Slide 37: Culture of Safety
Culture of Safety Sy Y. Safety4Life FOCUS * ASSESS * CHOOSE * SPEAK UP SIDAHO POWER, Ba A-19 ‘Safety is one of Idaho Power Company's core values, ‘Your most important responsibilty in your daily work is safely. Safety is always more imoortant than the work being performed. No work is so critical tha
Slide 38: For Additional Information
For Additional Information Darrel T. Anderson President & Chief Executive Officer (208) 388-2650 DAnderson@idahopower.com Steven R. Keen Senior Vice President, Chief Financial Officer & Treasurer (208) 388-2600 SKeen@idahopower.com Ken W. Petersen Vice President, Controller, & Chief Accounting Offic