Idacorp, Inc. · NYSE:IDA
Idacorp — Non-Deal Roadshow (March 2022)
42 slides from Idacorp's roadshow presentation, Mar 11, 2022
Slide 1: Investor Information: Spring 2022 Investor Outreach
Investor Information Spring 2022 Investor Outreach March & April 2022
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 Appendix Recent Executive Changes A-1 Company Overview Idaho Power Company Overview A-2 IDACORP at a Glance 1 Regulatory Commissioners A-3 Increasing Customer Growth Rate 2 Assumptions Used – Last Idaho Rate Case A-4 Idaho Economic Snapshot 3 Residential & Industrial Average Rates
Slide 4: IDACORP at a Glance
IDACORP at a Glance IDACORP Financial Snapshot(1): • Revenue: $1.46 billion • Diluted earnings per share: $4.85 Revenues by Customer Class • Annualized Dividends per share: $3.00 • Return on Year-End Equity: 9.2% Irrigation • Net Utility Plant Assets: 13% Idaho Power—$4.9 billion Industrial 15% Resi
Slide 5: Increasing Customer Growth Rate
Increasing Customer Growth Rate 610,000 Idaho Power Customer Growth 2.8% (Year-over-year) 600,000 590,000 New Enterprise Data Center 580,000 960k sq. ft. in Kuna, Idaho Expected to begin operations by 2025 570,000 560,000 550,000 540,000 2017 2018 2019 2020 2021 Moody’s GDP Growth Projections Idaho
Slide 6: Idaho Economic Snapshot
Idaho Economic Snapshot* *Source: Economic Modeling Specialist International, 2021 Q4; Data from US 3 Bureau of Economic Analysis and US Department of Labor Statistics
Slide 7: 2022 Earnings Per Share Guidance & Estimated Key Operating Metrics
2022 Earnings Per Share Guidance & Estimated Key Operating Metrics (Millions Except Per Share Amounts) 2022 Estimates(1) 2021 Actual IDACORP Earnings Per Diluted Share Guidance $ 4.85 – $ 5.05 $ 4.85 Idaho Power Additional Amortization of Accumulated None None Deferred Investment Tax Credits Idaho P
Slide 8: Capital Expenditures Forecast
Capital Expenditures Forecast(1) 2022 – 2026 ($ Millions) $800 40% overall increase $700 since the previous 5- year CapEx forecast $600 $550M per year average $500 $400 $300 ~$300M per year average previous $200 5 years $100 $0 2022 2023 2024 2025 2026 Distribution ($125-$170M) Hydro ($70-$110M) Tra
Slide 9: Total System Rate Base Growth Forecast
Total System Rate Base Growth Forecast(1) $6.0 $5.5 Hells Canyon Relicensing Asset – estimated in 2024(2) $5.0 $2.2B $0.3B $ Billions $4.5 $4.0 $3.5 $0.9B $3.0 $2.7B $2.5 2011 Rate Case + Total Rate Base Estimate 2022 2023 2024 2025 2026 Langley through 2021 *5-Year Forecasted Rate Base Growth (9.8%
Slide 10: Resource Additions to Address Capacity Deficits
Resource Additions to Address Capacity Deficits • Idaho Power customer growth & transmission constraints outside Idaho Power’s service area driving need for additional resources. • Signed contracts for 120MW of storage, plus 40MW solar power purchase agreement to serve peak energy needs by summer 20
Slide 11: Idaho Power Anticipates Owning 45% of B2H High-Voltage Line
Idaho Power Anticipates Owning 45% of B2H High-Voltage Line • Idaho Power, Bonneville Power Boardman-to-Hemingway Administration (BPA), and PacifiCorp signed a non-binding term sheet in January 2022. • Idaho Power would acquire BPA’s share and own ~45 percent of the line in the aggregate. • Idaho Po
Slide 12: Common Stock Dividend Growth
Common Stock Dividend Growth(1) “At this time, management expects to recommend to the Board of Directors future annual increases in the dividend of 5% or more, with the intent of remaining within our target payout ratio of between 60 and 70% of sustainable IDACORP earnings.” Lisa A. Grow, IDACORP Pr
Slide 13: Sustained Cost Control
Sustained Cost Control 2012-2022 O&M Expenses ($ Millions) Other Operating and Maintenance Expenses Feb. 17, 2022 $400 Guidance $355 – $365 $350 $364.5 $361.3 $349.0 $348.9 $349.6 $349.3 $346.7 $355.8 $352.1 $340.1 $300 $250 $200 $150 $100 $50 $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
Slide 14: 2010-2022 Earnings Per Share
2010-2022 Earnings Per Share With Earnings Support Mechanism in Place (Mid-Point of Opening EPS Guidance vs. Actuals*) February 17, 2022, Opening Guidance $5.10 $4.85-$5.05 Mid-Point of Opening Guidance Actual Diluted EPS $4.85 $4.90 $4.69 $4.70 $4.70 $4.61 $4.55 $4.49 $4.50 $4.38 $4.30 $4.21 $4.18
Slide 15: Return on Year-End Equity
Return on Year-End Equity 12% 10% 8% 9.4% 9.6% 9.4% 9.3% 9.2% 6% 4% 2% 0% 2017 2018 2019 2020 2021 12% 10% 8% 9.9% 10.1% 9.9% 9.9% 9.9% 6% 4% 2% 0% Shoshone Falls, near Twin Falls, Idaho 12 2017 2018 2019 2020 2021
Slide 16: 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 17: 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 18: 100% Clean Energy by 2045
100% Clean Energy by 2045 Updated Coal Exit Timeline *Idaho Power’s planned conversion, shut down and timing of Jim Bridger units is subject to a number of assumptions and uncertainties described in the 2021 Integrated Resource Plan (IRP), including evaluations of regional haze compliance options, a
Slide 19: Clean Energy Portfolio
Clean Energy Portfolio 2021 2021 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 energy delivered to customers for tw
Slide 20: A Foundation of Clean Energy
A Foundation of Clean Energy 64% Clean Sources Today 2021 IRP Plans for Coal Exit by 2028 Jim Bridger Ending Coal 2028 North Valmy Ending 2025 Boardman Shut Down 2020 Decreased Idaho Power Coal-fired Generation 8 7 *Idaho Power does not own or operate the solar, wind, geothermal, biomass, and cogene
Slide 21: Appendix
Appendix
Slide 22: Recent Executive Changes
Recent Executive Changes Steve Keen Brian Buckham Pat Harrington IDACORP Senior Vice President IDACORP Senior Vice President IDACORP Vice President, General & Chief Financial Officer Counsel & Corporate Secretary Announced retirement, intended to be effective October 1, 2022 Appointed to succeed Kee
Slide 23: Idaho Power Company Overview
Idaho Power Company Overview As of December 31, 2021 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 Mark Thompson 2023 Republican John Chatburn 2023 Republican Megan Decker 2025 Democrat John Hammond 2027 Democrat Letha Tawn
Slide 25: Assumptions Used Last Idaho Rate Case
Assumptions Used Last Idaho Rate 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 1, 2012 A
Slide 26: 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 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 (1) Idaho Power National Average Idaho Power National Average (1) (1) Edison Electric Ins
Slide 27: Integrated Resource Plan (IRP) Forecasts Continuing Growth
Integrated Resource Plan (IRP) Forecasts Continuing Growth 2021 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) 2021 IRP 2.6% 2.1% 1.4%
Slide 28: 2021 Idaho Power IRP Preferred Portfolio (MWs)
2021 Idaho Power IRP Preferred Portfolio (MWs) Demand Coal Year Gas Wind Solar Storage Transmission Response Exit 2022 300 2023 120 115 20 (357) 2024 357 700 5 2025 300 105 20 (308) 2026 215 500 2027 250 5 2028 120 55 (175) 2029 100 255 2030 55 2031 2032 55 55 Reliable Affordable Clean 2033 100 2034
Slide 29: Operating Cash Flows, Liquidity, & Capital Structure
Operating Cash Flows, Liquidity, & Capital Structure (millions) Twelve Months Cash Flows Ended December 31 Capital Structure as of IDACORP 2021 2020 December 31, 2021 Net Cash Provided by Operating Activities $ 363.3 $ 388.1 IDACORP Idaho Power Liquidity As of December 31, 2021 Debt 43% 45% (1) (mil
Slide 30: Debt Maturity Profile & Credit Ratings
Debt Maturity Profile & Credit Ratings ($ Millions) – as of 12/31/2021 IDACORP Idaho Power Current profile provides for Moody’s S&P Moody’s S&P significant flexibility in potential Long-term Baa1 BBB A3 BBB Issuer Rating bond issuance and tenor Short-term P-2 A-2 P-2 A-2 Outlook Negative Stable Nega
Slide 31: All-Time High Summer & Winter System Peak Demand
All-Time High Summer & Winter System Peak Demand June 30, 2021 – 3,751 MW Previous Peak 3,800 (July 7, 2017 – 3,422 MW) 3,600 3,400 3,200 3,000 January 6, 2017 – 2,527 MW 2,800 2,600 2,400 2,200 2,000 1,800 0001 0002 0003 0004 0005 0006 0007 0008 0009 0010 0011 0012 0013 0014 0015 0016 0017 0018 001
Slide 32: Contracted Renewable Energy Projects
Contracted Renewable Energy Projects As of December 31, 2021 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 316 74 390 Hydropower 150 1 151 Other 44 — 44 Total CSPP 1,137
Slide 33: A Tradition of Sustainability
A Tradition of Sustainability Highlights of 2020 ESG Report: ✓ Our Goal: 100% Clean by 2045 ✓ Reducing Carbon Emissions ✓ Electrifying Vehicles ✓ Caring for Our Aquatic Resources ✓ Caring for Our Employees and Their Safety ✓ Caring for Our Customers and For information on Idaho Power’s rich Communit
Slide 34: Experienced, Diverse, Independent Directors
Experienced, Diverse, Independent Directors Committees of the Board of Directors Corp. Gov. Director Independent Audit Compensation and Executive Nominating Darrel T. Anderson Odette C. Bolano ✓ ✓ Thomas E. Carlile ✓ ✓ Richard J. Dahl ‡ ✓ ✓ ✓ Annette G. Elg ✓ ✓ ✓ Lisa A. Grow © Ronald W. Jibson ✓ ✓
Slide 35: Diversity in Leadership
Diversity in Leadership Board Members Board Members Our Commitment to Each Other At Idaho Power, we are committed to an inclusive 33% environment where we are all valued, respected 25% and given equal consideration for our contributions. We believe that to be successful as a company we must be able
Slide 36: 2021: Safest Year on Record
2021: Safest Year on Record OSHA Recordable Rates 5 4.5 4 3.5 3 2.5 2 1.5 Awarded EEI inaugural Thomas 1 F. Farrell, II Safety Leadership 0.5 0 and Innovation Award 2000 2016 2017 2018 2019 2020 2021 National Average* EEI (1k-<2k Employees) Idaho Power *2021 data not yet available as of the date of
Slide 37: Our Commitment to Our Customers
Our Commitment to Our Customers Idaho Power Received Some of its Highest Customer My Account Satisfaction Ratings in Company History in 2021 A-16
Slide 38: 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 39: 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 40: 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% • Non-binding term sheet signed January 2022 regarding ownership structure; would increase Idaho Power’s ownership to ~45%
Slide 41: 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 $250 million and $450 million, including AFUDC • PacifiCorp recently constructed and commissioned a • Record of decision issued in Novemb
Slide 42: Contact Information
Contact Information Justin S. Forsberg Director of Investor Relations & Treasury (208) 388-2728 JForsberg@idacorpinc.com WWW.IDACORPINC.COM WWW.IDAHOPOWER.COM