Idacorp, Inc. · NYSE:IDA
Idacorp — EEI Financial Conference 2014
36 slides from Idacorp's conference presentation, Nov 12, 2014
Slide 1: EEI Financial Conference: Executing Our Strategy
EEI Financial Conference eIDACORP Analyst Information Dallas, Texas November 11-14, 2014 Executing Our Strategy
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 that relate to future events and expectations and, as such, constitute forwar
Slide 3: Table of Contents
Table of Contents Investor Presentation IDACORP Investment Highlights IDACORP Organizational Structure Safety Idaho Power Service Area & Core Business Continued Economic Progress Economy Growth Drivers General Business Energy Sales & Revenues Earnings Per Share & Return on Equity 2010 — 2014 Histori
Slide 4: IDACORP Investment Highlights
IDACORP Investment Highlights a> Strong Foundation For Success * Nearly 100 Years as a Fully Integrated Electric Utility * Low Cost, Clean, No Carbon Hydroelectric Generating Resources * Productive Regulatory Strategy tap Proven Record of Achievement * Continued Solid Financial Results * Good Corpor
Slide 5: Recent Highlights
Recent Highlights yx 2014 EPS On Track to Exceed a Successful 2013 ¥* Dividend Policy Progress 3 Growth Opportunities 2014 is on track fora seventh consecutive year of improved earnings with no expected use of additional accumulated deferred investment tax credits (ADITCs) 2013 delivered $3.64 per d
Slide 6: Who We Are
Who We Are gw IDACORP ee Regulated Our Vision: — = IDAHO To be regarded as an aw POWER. exceptional utility. ‘An IDACORP Company Non-Regulated Our Values: | Integrity, Safety SANE and Respect = smoker Our Mission: Prosper by providing reliable, responsible, fair-priced energy services, today and tom
Slide 7: Safety
Safety Safetydife FOCUS * ASSESS * CHOOSE © SPEAK UP _ & CARES SAFETY ACTIVITIES Safety is one of Idaho Power Company's core values. Your most important responsibility in your daily work is safety. Safety is always more important than the work being performed. No work is so critical that an FOCUS AS
Slide 8: Idaho Power Service Area
Idaho Power Service Area Core Business Generation Resource Facies Nomeplato (MW) Hyato 7 1708 Coal 3 1.118" Natualces 3 762 Diese 1 3 Tolal 3.594 Customers 513,549 General business customers as ~ of September 30, 2014 Step-Up Station 24 In service Distribution Lines 4,856 Miles of high-voltage 26,81
Slide 9: Continued Economic Progress
Continued Economic Progress Recognitions & Outlook THE TOPOP AMERICA MES March 17, 2014 Time named Boise number 1 out of 9 cities for “Getting it right”. April8, 2014 Boise named “Best city to move to in 2014.” Simple Moving Labor Boise MSA “Boise City remains among the nation’s best performers over
Slide 10: Continued Economic Progress
Continued Economic Progress Idaho Power Customer Growth Idaho Power Service Area Employment 12 Months Ended September 30 Third Quarter Average 8,000 470,000 7,221 460,071 7,000 £716 460,000 450,224 gone, 5 saT 450,000 Par 441,135 440,000 Perit 431,181 430,000 3,062 . 3,000 425,217 2,374 420,000 2,00
Slide 11: Economy Growth Drivers
Economy Growth Drivers — Data Centers” a=, \—_ DATASITE — Will be largest in Treasure Valley — Anchor tenant - SEN Technologies - a Cloud Computing Company — DataSite Owner said he expects other large data centers to follow him here (Boise) to take advantage of the Valley’s cheap electricity and low
Slide 12: Economy Growth Drivers
Economy Growth Drivers y Zosre (ay Stine * 200 new jobs in the near term with long term plans up to 1,000 * Utilizing existing facilities, previously Heinz MAGNIDA” MAGNOLIA NITROGEN IDAHO. ¢ Potential $1.5 billion fertilizer plant, to be located in Power County * Magnida Magnolia Nitrogen Idaho wil
Slide 13: General Business Energy Sales & Revenues
General Business Energy Sales & Revenues By Customer Class General Business Energy Sales (IMWh’s- Thousands) 16,000 qaeie r 14,209 14,085 Y 13,734 ds 14000 | 2353 12,000 10,000 8,000 6,000 4,000 2,000 0 2010-2011. 20122013201 12Mos. Ended Sept. 30 Residential Commercial industrial Irrigation 10 $1,2
Slide 14: Earnings Per Diluted Share & Return on Year-End Equity
Earnings Per Diluted Share & SS Return on Year-End Equity — IDACORP (Period-End) Earnings Per Diluted Share © Return on Equity © oct 30, 2014 Guidance $4.00 $3.70-$3.80 bK $3.50 10 ng 9.6% si ro 9.9% P% 10% [28 $3.00 8% $2.50 $2.00 6% $1.50 4% $1.00 2% $0.50 $0.00 0% 2010 2011 2012 2013 2014 2010 20
Slide 15: 2010-2014 Historic Mid-Point Opening Guidance
ee ee 2010 — 2014 Historic s Mid-Point Opening Guidance 54.00 $3.48 $3.50 $3.28 $2.88 $3.08 $3.00 $2.73 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2010 2011 2012 2013 2014 Mid-Point Opening Guidance 12
Slide 16: IDACORP Common Stock Dividend
IDACORP Common Stock Dividend “Today's action by the Board of Directors moves the dividend payout ratio closer to IDACORP’S stated long-term goal of between a fifty and sixty percent payout of sustainable IDACORP earnings, and is reflective of continued strong performance by the company. Management
Slide 17: Elements of Growth: Capital Expenditures Forecast
Elements of Growth Capital Expenditures Forecast $500 $400 $315 - $335 $280 - $295 $300 $300 Millions $200 $100 so 2014 2015 2016-2018 (Average) 14
Slide 18: ADITC Settlement 2015-2019
ADITC Settlement 2015-2019) Sharing Percentage 100% 15%) Customer Benefit -Cash Refund Earnings 50% Deadband Customer Benefit ~ Pension Obligation Reduction 25% Company Benefit (25%) at Return On Year-End Equity In Idaho Jurisdiction Ability to use additional ADITC’s of up to $45 million from 2015-2
Slide 19: ADITC Extension
ADITC Extension Idaho Public Utilities Commission Filing Idaho Power Revenue Sharing/ 2009 — 2011 2012-2014 General Rate Case Stay Out? Yes No Available ADITC For Use $45 Million $45 Million ROE Threshold 9.5% 9.5% 50-50 Sharing Threshold 10.5% 10.0% 75-25 Sharing Threshold N.A. 10.5% Customer Benef
Slide 20: Operating Cash Flows & Liquidity
a7 Operating Cash Flows (S Million) Nine Months Ended Sept. 30 IDACORP 2010 2011 2012 2013 2014 Net cash provided by operating activities $305.4 $310.2 $249.3 $305.5 S 315.8 Liquidity As of September 30, 2014 (5 Million) Idaho IDACORP' Power Cash & Cash Equivalents Seino $ 102.9 Revolving Credit Fac
Slide 21: Strong Financial Position: Debt Maturity Profile
Strong Financial Position Debt Maturity Profile (S Millions) + Manageable Debt Maturities + Low Average Cost of Long-Term Debt— 5.2% + 47% Debtto Equity Ratio at Idaho Power 240 $230 No Near-Term \ Manageable refinancing needs and Refinancing Pressure ‘windows of appartunity inten year harizon n — i
Slide 22: Key Financial & Operating Metrics and 2014 Earnings Guidance
Key Financial & Operating Metrics and 2014 Earnings Guidance (In millions except per share amounts) Current # Previous ?) | Idaho Power Operations & Maintenance Expense No Change $335—- $345 No Change SO Idaho Power Additional Amortization of ADITC Idaho Power Capital Expenditures excluding AFUDC No
Slide 23: Effective Tax Rate Reconciliation
20 Effective Tax Rate Reconciliation For the Nine Months Ended September 30 (Thousands of Dollars) IDACORP 2014 2013 Income Tax at Statutory Rates (Federal and State) S$ 75,385 S$ 85,143 Capitalized repairs deductions !i (19,061) (16,129) Accounting Method Changes (11,075) 4,583 Affordable Housing T
Slide 24: Productive Regulatory Strategy
2013 2014 2a Productive Regulatory Strategy Annualized 2013 Revenue Impact Notable Regulatory Actions FilingDate Effective Date (Millions) | Idaho Fca March 15% June a $ (1a) Oregon APCU March 22"! June i 29 | Idaho PCA, April ist June 140.4 Annualized 2014 Revenue Impact Notable Regulatory Actions
Slide 25: Productive Regulatory Strategy: Low Rates for Customers
Productive Regulatory Strategy Low Rates for Customers Residential and Industrial (cents / kilowatt-hour) Residential Industrial 50.14 $0.09 Sot a - bl “ $0.07 = 7) $0.10 $0.05 $0.08 $0.06 $0.03 $0.04 $0.01 2009 2010-2011. «2012 2013-2014 2009 ©2010-2011. «2012-2013 2014 @-Idaho Power ti National Av
Slide 26: Regulatory Commissioners
Regulatory Commissioners SS Commissioner See Term Expires Commissioner Cen! Term Expires Marsha Smith Democrat 2015 Stephen Bloom Republican 2015 Paul Kjellander Republican 2017 Susan Ackerman Democrat 2016 Mack Redford Republican 2019 John Savage Democrat 2017 23
Slide 27: Boardman to Hemingway 500kV Transmission Line Project
— << +i Elements of Growth Boardman to Hemingway 500kV Transmission Line Project * Joint funding agreementJan. 2012 for project permitting costs — Idaho Power-21% — BPA-24% — PacifiCorp-55% * 300 mile, 500-kV transmission line + In-service date in 2020 or beyond * Capacity: — 1,000 MW east to west —
Slide 28: Gateway West Transmission Line Project
Elements of Growth Gateway West Transmission Line Project + Ajoint project between Idaho Power Company and PacifiCorp + Total cost for Idaho Power's share of project - between $150 million and $300 million, including AFUDC + Idaho Power’sestimated cost of permitting phase is $35 million, including A
Slide 29: Corporate Excellence
Corporate Excellence IDACORP’s 2013 Sustainability Report + Balanced and responsible management + Operational excellence + Environmental stewardship + Engaged, empowered workforce + Strong community partnerships CO, Emissions from Idaho Power-Owned Generation i 25.00 5 *S 20.00 . £ | Best Energy Com
Slide 30: Appendix
Appendix me IDACORP.
Slide 31: New System Peak: Load and Resources
New System Peak Load and Resources July 2, 2013 - 3,407 MW 4,000 Total Load 3,407 3,500 — Demand Response 3,000 2,500 2,000 1,500 1,000 500 Wind (PURPA & PPA) Purchased (Market, PURPA/PPA) Hells Canyon - Hydro Natural Gas (Danslin/Bennett Mtn) Run-of River - Hydro Coal 4:00AM 7:00AM 10:00AM 1:00 PM.
Slide 32: PURPA Projects Under Contract
Megawatts (MW) AD 1982-2017 « As of October 16, 2014 1,600 1,400 1,200 b 2 S S 800 600 PURPA under Contract as of October 16, 2014 1,302 MW SolarUnder Contract 461 MW WindUnder Contract 577 MW Cogen Biomass Hydro 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 33: System Load vs. Wind
Load vs. Wind July 2, 2013 Peak Load - 3,407 MW Wind during Peak Load - 57 MW 3,500 3,000 2,500 2,000 —Load 1,500 Wind —— Wind Nameplate 669 MW 1,000 500 0 A 109 100 300 400 500 600 7:09 80 900 1000 11:00 1200 100 200 300 4:00 50 690 7:00 800 900 1000 4100 1200 AM AM AM AM AM AM AM AM AM AM AM PM PM
Slide 34: Summary of Pollution Controls
Currently Installed Summary of Pollution Controls No, Opacity and PM Mercury Dry Low NOx Scrubber Scrubber Sorbent | [Electro-Static Sorbent Burners SCR Installation __ Upgrade __Injection_||Precipitators Baghouse || _Injection Jim Bridger Unit1 | 20710 1990 2010 nla 4974 nla 4 Jim Bridger Unit2 | 2
Slide 35: Winter Outlook
Winter Outlook November 2014 Through January 2015 Precipitation Temperature A EC =~ 4) aS 33% to 40% Chance of Below Normal Precipitation 1B 33% to 40% Chance of Above Normal Temperature 1B 40% to 50% Chance of Below Normal Precipitation BB 40% to 50% Chance of Above Normal Temperature [BB 50% or Gr
Slide 36: For Additional Information
A6 For Additional Information StevenR. Keen Senior Vice President, Chief Financial Officer and Treasurer (208) 388-2200 SKeen@idahopower.com KenPetersen Vice President, Controller and Chief Accounting Officer (208) 388-2761 KPetersen@idahopower.com Lawrence F. Spencer Director of Investor Relations