IDACORP, Inc. · NYSE:IDA
IDACORP — Investor Presentation (December 2015)
31 slides from IDACORP's investor presentation, Dec 8, 2015
Slide 1: Analyst Information
Analyst Information New York City, NY Executing on Our Strategy December 8, 2015
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, that relate to future even
Slide 3: Table of Contents
Table of Contents Investor Presentation Appendix IDACORP Investment Highlights 1 IDACORP Organizational Structure A-1 Continued Economic Expansion 2 Idaho Power Service Area & Core Business A-2 Corporate Excellence 4 Boardman to Hemingway A-3 Earnings Per Share & Return on Equity 5 Gateway West A-4
Slide 4: IDACORP Investment Highlights
IDACORP Investment Highlights Strong Foundation 100 years as a fully integrated electric utility Low cost, clean, hydroelectric power Productive regulatory strategy Succession planning at all levels Growth Drivers Economic activity in service area Customer and revenue growth Common stock dividend in
Slide 5: Continued Economic Expansion
Continued Economic Expansion • In 2014 the Kauffman Foundation scored Idaho A+ for small business friendliness. • “We developed a system where we refer to Idaho moving at the speed of business.” – Governor C.L. “Butch” Otter • “We were green before green was the thing to be.” – Darrel T. Anderson, C
Slide 6: Continued Economic Expansion
Continued Economic Expansion Where The Jobs Will Be This Spring – Boise, Idaho #1 In the strongest market, Boise, you can see growth wherever you turn. Among those companies that have recently moved into Boise or are expanding existing operations and hiring more workers: Gayle Manufacturing, Diversi
Slide 7: Corporate Excellence
Corporate Excellence IDACORP’s 2014 Sustainability Report • Balanced and responsible management • Operational excellence • Environmental stewardship • Engaged, empowered workforce • Strong community partnerships CO2 Emissions from Idaho Power-Owned Generation Best Energy Companies 25.00 • Idaho Powe
Slide 8: Earnings Per Diluted Share & Return on Year-End Equity – IDACORP
Earnings Per Diluted Share & Return on Year-End Equity – IDACORP (Period-End) Earnings Per Diluted Share (1) Oct. 29, 2015 Return on Equity (1) Guidance $4.00 $3.75– $3.90 12% $3.85 10.4% $3.50 $3.64 9.9% 9.9% 9.9% 9.6% $3.43 $3.46 10% $3.00 8% $2.50 $2.00 6% $1.50 4% $1.00 2% $0.50 $0.00 0% 2011 20
Slide 9: 2010 – 2015 Historic Mid-Point Opening Annual EPS Guidance
2010 – 2015 Historic Mid-Point Opening Annual EPS Guidance $4.00 Represents the mid-point of IDACORP’s opening EPS guidance $3.73 – based on normal weather & water conditions. $3.48 $3.50 $3.28 $3.08 $2.88 $3.00 $2.73 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2010 2011 2012 2013 2014 2015 6
Slide 10: Operating Cash Flows and Liquidity
Operating Cash Flows ($ Million) Nine Months Ended Twelve Months Ended December 31 September 30 IDACORP 2011 2012 2013 2014 2015 Net cash provided by operating activities $ 310.2 $ 249.3 $ 305.5 $ 364.3 $ 290.8 Liquidity As of September 30, 2015 Idaho ($ Million) IDACORP (1) Power Revolving Credit F
Slide 11: IDACORP Common Stock Dividend
IDACORP Common Stock Dividend “The IDACORP Board of Directors has now approved dividend increases in each of the last four years, representing a cumulative increase of 70 percent in IDACORP’s quarterly dividend. These increases are reflective of continued strong performance by the company. An annual
Slide 12: Key Financial & Operating Metrics and 2015 Earnings Guidance
Key Financial & Operating Metrics and 2015 Earnings Guidance (millions except for per share amounts) 2015 Estimates Current (1) Previous (2) Idaho Power Operations & Maintenance Expense No Change $ 340 – $ 350 Idaho Power Additional Amortization of ADITC No Change None Idaho Power Capital Expenditur
Slide 13: Strong Financial Position: Debt Maturity Profile
Strong Financial Position Debt Maturity Profile ($ Millions) $240 $230 3.65% 6.30% $130 No Near-Term 4.50% Manageable refinancing needs $140 Refinancing Pressure and windows of opportunity $250 $105 5.25% 5.875% 6.00% 4.85% 2.95% 2.50% 4.30% 5.50% $55 6.25% 5.15% $116 $100 $100 $100 $100 $100 4.00%
Slide 14: ADITC Settlement 2015-2019
ADITC Settlement 2015-2019(1) Sharing Percentage ROE – Idaho Power* 12 month avg: 10.4% Customer Benefit – Rate Decrease Period end: 10.2% *As of 9/30/2015 Earnings Deadband Customer Benefit – Pension Obligation Reduction Company Benefit (25%) Return On Year-End Equity In Idaho Jurisdiction Ability
Slide 15: Idaho Power Revenue Sharing/ADITC Extension
Idaho Power Revenue Sharing/ ADITC Extension 2009 – 2011 2012 – 2014 2015 – 2019 General Rate Case Stay Out? Yes No No Available ADITC For Use $45 Million $45 Million $45 Million ROE Threshold 9.5% 9.5% 9.5% 50-50 Sharing Threshold 10.5% 10.0% N.A. 75-25 Sharing Threshold N.A. 10.5% 10.0% Customer B
Slide 16: Productive Regulatory Strategy
Productive Regulatory Strategy Low Rates for Customers Residential and Industrial (cents / kilowatt-hour) Residential Industrial $0.14 $0.09 $0.12 $0.07 $0.10 $0.05 $0.08 $0.03 $0.06 $0.04 $0.01 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Idaho Power National Average (1) Idaho Power
Slide 17: Regulatory Commissioners
Regulatory Commissioners Idaho Oregon Political Party Term Political Party Term Commissioner Commissioner Affiliation Expires Affiliation Expires Marsha Smith Democrat 2016 Stephen Bloom Republican 2015 Paul Kjellander Republican 2017 Susan Ackerman Democrat 2016 Kristine Raper Democrat 2021 John Sa
Slide 18: Preferred Portfolio
Preferred Portfolio* Date Resource Peak-Hour Capacity 2025 Boardman to Hemingway (B2H) 500 MW 2025 Retire North Valmy (both units) (262) MW 2030 Demand Response 60 MW 2030 Ice-Based Thermal Energy Storage (TES) 20 MW 2031 Combined Cycle Combustion Turbine (CCCT) 300MW *Action items and timing are su
Slide 19: Elements of Growth
Elements of Growth Capital Expenditures Forecast 2015 – 2019 (Millions) 2015 2016 2017 – 2019 Ongoing Capital Expenditures $ 255 – 260 $ 285 – 290 $ 850 – 905 Jim Bridger Plant Environmental Controls 45 – 50 15 – 20 20 – 25 Totals $ 300 – 310 $ 300 – 310 $ 870 – 930 • Boardman to Hemingway (B2H) (se
Slide 20: Appendix
Appendix
Slide 21: Who We Are
Who We Are Our Vision: To be regarded as an exceptional, independent integrated utility. Our Values: Integrity, Safety and Respect Our Mission: Prosper by providing reliable, responsible, fair-priced energy services, today and tomorrow. A-1
Slide 22: Idaho Power Service Area & Core Business
Idaho Power Service Area Core Business A-2
Slide 23: Boardman to Hemingway 500kV Transmission Line Project
Boardman to Hemingway 500kV Transmission Line Project • Joint funding agreement Jan. 2012 for project permitting costs – Idaho Power - 21% – BPA - 24% – PacifiCorp – 55% • 300 mile, 500-kV transmission line • In-service date in 2022 or beyond • Capacity: – 1,000 MW east to west – 1,050 MW west to ea
Slide 24: Gateway West Transmission Line Project
Gateway West Transmission Line Project • A joint project between Idaho Power Company and PacifiCorp • Total cost for Idaho Power’s share of project – between $200 million and $400 million, including AFUDC • Idaho Power’s estimated cost of permitting phase is $64 million, including AFUDC • Bureau of
Slide 25: New System Peak
New System Peak Load and Resources July 2, 2013 – 3,407 MW 4,000 Total Load 3,407 3,500 Demand Response 3,000 Wind (PURPA & PPA) 2,500 Purchased (Market, PURPA/PPA) 2,000 Hells Canyon - Hydro 1,500 Natural Gas (Danskin/Bennett Mtn.) Langley Gulch 1,000 Run-of-River - Hydro Coal 500 0 1:00 AM 4:00 AM
Slide 26: Near Term IRP Action Plan
Near Term IRP Action Plan Action Year(s) Resource Action Number 2015–2018 B2H Ongoing permitting, planning studies, and regulatory filings 1 2015–2018 Gateway West Ongoing permitting, planning studies, and regulatory filings 2 Continue the pursuit of cost-effective energy efficiency. The forecast 20
Slide 27: PURPA Projects Under Contract
PURPA Projects Under Contract As of November 24, 2015 A-7
Slide 28: Summary of Pollution Controls
Summary of Pollution Controls Currently Installed Expected NOX SO2 Opacity and PM Mercury Dry Electro- Low NOx Scrubber Scrubber Sorbent Static Sorbent Burners SCR Installation Upgrade Injection Precipitators Baghouse Injection Jim Bridger Unit 1 2010 2022 1990 2010 n/a 1974 n/a 2015 Jim Bridger Uni
Slide 29: Winter Outlook
Winter Outlook November 2015 Through January 2016 A-9 Source: NOAA, National Oceanic Atmospheric Administration, U.S. Dept of Commerce, October 2015
Slide 30: Safety
Safety • A 40% reduction in Idaho Power’s OSHA recordable rate in 2014 compared to 2013 A-10
Slide 31: For Additional Information
For Additional Information Steven R. Keen Senior Vice President, Chief Financial Officer and Treasurer (208) 388-2600 SKeen@idahopower.com Lawrence F. Spencer Director of Investor Relations (208) 388-2664 LSpencer@idacorpinc.com Justin S. Forsberg Investor Relations (208) 388-2728 JForsberg@idacorpi