IDACORP INC
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 30, 2026
IDA$146.55-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001057877-25-000082
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001057877-26-000098
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 247 previous paragraphs and 210 current paragraphs.
83 unchanged; 104 reworded; 19 added; 54 removed; 6 previous and 4 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
◦In April, Idaho Power, jointly with co-owner PacifiCorp, filed a CPCN request for Segment E-8 for the GWW transmission line, which would create up to 2,000 MW of additional transmission capacity and the ability to interconnect new generation resources across Idaho.
Current report
Net Income - First Quarter 2026
Current report
Other O&M expenses in the first quarter of 2026 were $13.1 million higher than the first quarter of 2025. This increase was primarily the result of increased wildfire mitigation program expenses and the amortization of previously deferred costs related to the conversion of generating units at the Jim Bridger plant from coal to natural gas, much of which is recovered in customer rates and reflected in revenues pursuant to the 2025 Settlement Stipulation.
Current report
(1) "Jointly-owned thermal generation" consists of generation from steam plants that include coal-fired units as well as natural gas-fired units that were converted from coal.
Current report
Purchased power expense decreased $9.0 million during the first quarter of 2026 compared with the same period of 2025, primarily due to a 12 percent decrease in MWh purchased.
Current report
(1) "Jointly-owned thermal" consists of expenses and generation from steam plants that include coal-fired units as well as natural gas-fired units that were converted from coal.
Current report
Fuel expense decreased $5.7 million, or 8 percent, in the first quarter of 2026 compared with the same period of 2025, primarily due to a 37 percent decrease in jointly-owned thermal generation, partially offset by an 11 percent increase in the total average cost per MWh from all sources.
Current report
Other O&M Expenses: Other O&M expenses in the first quarter of 2026 were $13.1 million higher than the first quarter of 2025. This increase was primarily driven by increases in wildfire mitigation program expenses and the amortization of previously deferred costs related to the conversion from coal to natural gas at the Jim Bridger plant, both of which are now being collected in base rates.
Current report
Credit ratings can be revised upward or downward or withdrawn at any time by a rating agency if it decides that the circumstances warrant the change. In March 2026, Moody's rating for IDACORP was downgraded to Baa3 for long-term issuer rating and P-3 short-term commercial paper rating with a revised outlook of stable. At that time, Moody's rating for Idaho Power was downgraded to Baa2 for long-term issuer rating, A3 for first mortgage bonds, and A3 for senior secured debt with a revised outlook of stable. Moody's credit ratings of Baa3 and above are widely considered to be investment grade, or prime, ratings. The security ratings above reflect the views of Moody's or Standard & Poor's, as applicable. An explanation of the significance of these ratings may be obtained from the applicable rating agency. There have been no changes to IDACORP's or Idaho Power's ratings by Standard & Poor’s from those included in the 2025 Annual Report. Such ratings are not a recommendation to buy, sell, or hold securities.
Current report
•received IPUC approval for a CPCN for 167 MW of natural gas-fueled generating capacity next to the existing Bennett Mountain power plant; and
Current report
•submitted an application to the IPUC for a CPCN for two natural gas-fueled power plants of 222 MW and 430 MW.
Current report
Current permitting and pre-construction activities are focused on the segment of line between the Hemingway substation and the Midpoint substation near Jerome, Idaho. On April 3, 2026, Idaho Power and PacifiCorp filed a joint request that the IPUC grant both companies a CPCN for this segment of the line. Idaho Power is the majority owner of the approximately 130-mile segment, and, as of the date of this report, Idaho Power estimates the total cost for its share of this segment and the associated substation work to be between $900 million and $1.1 billion, including Idaho Power's AFUDC. The capital requirements table above includes approximately $790 million of Idaho Power's share of estimated costs (excluding AFUDC) for the remaining permitting and construction phases of the project based on Idaho Power's assumption that it may commence construction of this segment during that time period. Idaho Power expects the in-service date for this section of line or a portion of this segment will be 2028 or later. Idaho Power and PacifiCorp continue to coordinate the timing of next steps of the remaining co-owned segments to best meet customer and system needs, including potentially modifying the ownership structure of a few segments of the project.
Current report
In February 2026, Idaho Power filed an application with the IPUC to approve an all-source RFP to procure resources for Idaho Power's anticipated energy and capacity needs as early as 2031 and into 2032. In April 2026, the IPUC approved the application with certain modifications from Idaho Power's initial application.
Current report
In March 2026, Idaho Power filed an application with the IPUC for a CPCN for the South Hills Power Plant, a 222 MW natural gas-fueled facility to meet an identified capacity deficit in 2029 and a CPCN for the Peregrine Power Plant, a 430 MW natural gas-fueled facility to meet an identified capacity deficit in 2030, as well as confirmation and approval by the IPUC of AFUDC accrued for each of the projects prior to the issuance of a CPCN. As of the date of this report, the case remains pending.
Current report
On April 3, 2026, Idaho Power and PacifiCorp filed a joint application with the IPUC to grant a CPCN to each of Idaho Power and PacifiCorp for Segment E-8 of GWW, an approximately 133-mile section of GWW jointly owned by Idaho Power and PacifiCorp that will run from the Midpoint substation near Jerome, Idaho, to the Hemingway substation near Boise, Idaho. As of the date of this report, the case remains pending.
Current report
EPA Regulatory Actions
Current report
As described in the 2025 Annual Report, the EPA has published proposed rules for several of the items mentioned in its March 2025 announcement. On April 13, 2026, the EPA published proposed rules to amend several provisions of the federal regulations governing the disposal of coal ash, also known as coal combustion residuals or CCR. Each of the published proposed rules is subject to public comment and remains pending as of the date of this report.
Current report
In February 2026, the EPA finalized the following:
Current report
Idaho's Wildfire Standard of Care Act
Removed paragraphs (54)
Previous report
•Idaho Power continues to focus on timely recovery of costs and earning a reasonable return on investment. In October 2025, Idaho Power reached a settlement stipulation with the IPUC Staff and certain other parties in the Idaho general rate case it filed in May 2025, providing for $110.0 million in additional Idaho-jurisdiction annual revenues, among other items. The settlement stipulation is more fully described in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report. The IPUC's decision in this matter is pending.
Previous report
•In September 2025, IDACORP's board of directors approved an increase in the regular quarterly cash dividend on IDACORP's common stock from $0.86 per share to $0.88 per share, as a part of a 193 percent increase in quarterly dividends over the last fourteen years.
Previous report
•To help meet growing capacity and energy needs in 2027 and beyond, Idaho Power entered into the following transactions in 2025, which as of the date of this report remain subject to regulatory approval:
Previous report
◦an agreement to purchase the output of a 100 MW solar facility, coupled with a 100 MW battery energy storage agreement, with a scheduled online date of June 2027;
Previous report
◦an agreement to acquire an ownership interest in 250 MW and for rights to an additional 250 MW of northbound capacity on SWIP-N, a planned 285-mile high-voltage transmission line; and
Previous report
◦commenced construction on the B2H transmission line, with an expected in-service date of late 2027;
Previous report
◦a 20-year agreement for Idaho Power to utilize storage capacity from a third-party 150 MW battery storage facility commenced, with the facility fully operational;
Previous report
◦80 MW of company-owned battery storage facilities came on-line, with another 250 MW of company-owned battery storage commencing construction; and
Previous report
•In June 2025, Idaho Power filed with the Idaho and Oregon public utility commissions its 2025 IRP, its forecast of load and resources for the next 20 years, including the preferred portfolio of resources necessary to meet predicted demands.
Previous report
•In September 2025, Idaho Power and the developer of the 600 MW Jackalope Wind project terminated the agreements for the project due to permitting delays and uncertainty around federal land use policies. Accordingly, Idaho Power filed a petition with the IPUC to withdraw the CPCN and approval of the PPA for the project that had previously been approved in June 2025. Idaho Power is pursuing alternative capacity and energy resources to meet the power generation deficit resulting from the termination of these agreements.
Previous report
Net Income - Third Quarter 2025
Previous report
Other O&M expenses in the third quarter of 2025 were $4.2 million higher than the third quarter of 2024. This increase was primarily driven by inflationary pressures on labor-related costs, professional services, and an increase in wildfire mitigation program and related insurance expenses.
Previous report
The decrease in income tax expense for the third quarter of 2025, compared with the third quarter of 2024, was primarily due to income tax return adjustments for state taxes and plant-related flow-through items.
Previous report
Net Income - Year-To-Date 2025
Previous report
Customer growth increased operating income by $19.6 million in the first nine months of 2025 compared with the first nine months of 2024. Overall, usage per retail customer, net of associated power supply costs and power cost adjustment and FCA mechanisms, was relatively flat in the first nine months of 2025 compared with the first nine months of 2024.
Previous report
Total other O&M expenses in the first nine months of 2025 were $22.5 million higher than the first nine months of 2024. This increase was primarily driven by inflationary pressures on labor-related costs, professional services, and an increase in wildfire mitigation program and related insurance expenses, as well as higher variable employee compensation based on the expected achievement level of performance-based metrics.
Previous report
Other changes in operating revenues and expenses, net, increased operating income by $1.1 million in the first nine months of 2025 compared with the first nine months of 2024, due primarily to a decrease in net power supply expenses that were not deferred for future recovery in rates through Idaho Power's power cost adjustment mechanisms, which increased operating income compared with the first nine months of 2024. This was partially offset by the timing of recording and adjusting of regulatory accruals and deferrals during the first nine months of 2024 that did not reoccur in 2025.
Previous report
Idaho Power filed its 2025 IRP, its 20-year forecast of load and power supply resource options, with the IPUC and OPUC in June 2025. Included in the below table are the load forecast assumptions the company used in the 2025 IRP and, for comparison purposes, the analogous average annual growth rates Idaho Power used in the prior two IRPs.
Previous report
•Regulatory and Environmental Compliance Costs; Coal Plant Retirements: Idaho Power is subject to extensive federal and state laws, policies, and regulations, as well as regulatory actions and audits by agencies and quasi-governmental agencies, including the FERC, the North American Electric Reliability Corporation, and the Western Electricity Coordinating Council. Compliance with these requirements directly influences Idaho Power's operating environment and affects Idaho Power's operating costs. Moreover, environmental laws and regulations may increase the cost of constructing new facilities, may increase the cost of operating generation plants, may require that Idaho Power install additional pollution control devices at existing generating plants, may result in penalties for non-compliance, even where inadvertent, or may require that Idaho Power curtail or cease operating certain generation plants. Idaho Power expects to spend significant amounts on environmental compliance and controls for the foreseeable future. Due to economic factors in part associated with the costs of compliance with environmental regulation, Idaho Power accelerated the retirement date of its North Valmy plant, ceasing participation in coal-fired operations at one unit in 2019 and planning to cease coal-fired operations at the remaining unit by year-end 2025. Idaho Power's jointly-owned coal plant in Boardman, Oregon, ceased operations in October 2020. In 2022, the IPUC approved Idaho Power's request to allow the coal-related assets at the Jim Bridger plant to be fully depreciated and recovered by end-of-year 2030. Idaho Power's 2025 IRP identified a preferred resource portfolio and action plan that includes the conversion from coal to natural gas of the two units at the North Valmy plant in 2026 and the remaining two units at the Jim Bridger plant in 2030. Units 1 and 2 at the Jim Bridger plant were converted to natural gas in the second quarter of 2024. In June 2024, Idaho Power executed an agreement with its co-owner to facilitate the planned conversion of the two units at the North Valmy plant from coal to natural gas by mid-2026.
Previous report
•Water Management and Relicensing of Hydropower Projects: Because of Idaho Power's reliance on stream flow in the Snake River and its tributaries, Idaho Power participates in numerous proceedings and venues that may affect its water rights, seeking to preserve the long-term availability of its rights for its hydropower projects. Also, Idaho Power is involved in renewing its long-term federal licenses for the HCC, its largest hydropower generation source, and for American Falls, its second largest hydropower capacity resource. Given the number of parties involved, Idaho Power's relicensing costs have been and are expected to continue to be substantial. As of the date of this report, Idaho Power cannot determine the ultimate terms of, and costs associated with, any resulting long-term licenses for the HCC or American Falls hydropower facilities.
Previous report
(1) "Steam generation" is composed of generation from steam plants that are fueled by only coal or by both coal and natural gas.
Previous report
Purchased power expense increased $6.7 million, or 6 percent, during the third quarter of 2025 compared with the third quarter of 2024, primarily due to a 19 percent increase in MWh purchased to help meet customer demand. Purchased power expense decreased $37.7 million, or 12 percent, during the first nine months of 2025, compared with the same period of 2024, primarily due to lower wholesale energy market prices in the region.
Previous report
(1) "Steam" is composed of expenses and generation from steam plants that are fueled by only coal or by both coal and natural gas.
Previous report
Fuel expense increased $1.5 million, or 2 percent, in the third quarter of 2025, but decreased $9.2 million, or 5 percent, in the first nine months of 2025 compared with the same periods of 2024. The increase in fuel expense in the third quarter of 2025 compared with the third quarter of 2024 was primarily due to a 3 percent increase in the total average cost per MWh from all sources and partially offset by a 1 percent decrease in MWh generated from steam and natural gas generation. The decrease in fuel expense in the first nine months of 2025 compared with the same period of 2024, was primarily due to a 10 percent decrease in the total average cost per MWh from all sources and partially offset by a 6 percent increase in MWh generated from steam and natural gas generation to serve load compared with the same period in 2024.
Previous report
Other O&M Expenses: Other O&M expenses increased $4.2 million and $22.5 million in the third quarter and first nine months of 2025, respectively, compared with the same periods of 2024. These increases were primarily driven by inflationary pressures on labor-related costs, professional services, an increase in wildfire mitigation program and related insurance expenses, as well as higher variable employee compensation based on the expected achievement level of performance-based metrics.
Previous report
◦the changes in prepayments increased operating cash flow by $4 million for IDACORP and Idaho Power, which was primarily due to the timing of insurance prepayments;
Previous report
◦the changes in materials, supplies, and fuel stock increased operating cash flows by $67 million for IDACORP and Idaho Power, which was due to the timing of purchases and consumption of materials and supplies inventory at Idaho Power and coal at Idaho Power's jointly-owned coal-fired generating plants;
Previous report
(1) American Falls bonds that Idaho Power could have been required to purchase prior to maturity under the optional or mandatory purchase provisions of the bonds, if the remarketing agent for the bonds had been unable to sell the bonds to third parties. The American Falls bonds were repaid in full on February 3, 2025.
Previous report
•submitted an application to the IPUC for a CPCN for an expansion of generating capacity at the existing Bennett Mountain power plant of up to 167 MW of natural gas-fueled generation in 2028.
Previous report
Idaho Power has expended approximately $84 million, including Idaho Power's AFUDC, for its share of the project through September 30, 2025. As of the date of this report, Idaho Power estimates the total cost for its share of the project (including both permitting and Segment 8 construction) to be between $900 million and $1.1 billion, including Idaho Power's AFUDC. The estimated cost range is based on assumptions about Idaho Power participation levels in the construction of certain project segments, and any changes in those assumptions or in Idaho Power's actual participation could affect future estimates and actual project costs. The capital requirements table above includes approximately $615 million of Idaho Power's share of estimated costs (excluding AFUDC), based on Idaho Power's current estimate that it may commence construction of applicable segments during that time period. Actual construction costs could differ from Idaho Power's estimates based upon the ability of Idaho Power, PacifiCorp, or their respective contractors to timely obtain labor or materials at reasonable costs, supply chain disruptions and delays, inflationary pressures, tariffs, macroeconomic conditions, or other issues.
Previous report
Jackalope Wind Project: In October 2024, Idaho Power entered into agreements with a counterparty and certain of its affiliates to develop the Jackalope Wind Project, which consisted of (i) a 35-year PPA between Jackalope Wind, LLC and Idaho Power, supplying a capacity of approximately 300 MW of generation to Idaho Power's system from a wind-powered generation facility located in Sweetwater County, Wyoming, and (ii) a co-located wind turbine generator power plant to be owned by Idaho Power, providing a capacity of 300 MW of generation. In September 2025, due to permitting delays and uncertainty around federal land use policies, Idaho Power, the counterparty, and the applicable affiliates of the counterparty terminated the agreements for the Project.
Previous report
Open Access Transmission Tariff Posting
Previous report
Idaho Power uses a formula rate for transmission service provided under its OATT, which provides that transmission rates will be updated annually based primarily on financial and operational data that Idaho Power files with the FERC. In September 2025, Idaho Power filed its 2025 final transmission rate with the FERC, reflecting a transmission rate of $34.16 per kilowatt-year (kW-year), to be effective for the period from October 1, 2025, to September 30, 2026. Idaho Power's final rate was based on a net annual transmission revenue requirement of $148.5 million. The OATT rate in effect from October 1, 2024, to September 30, 2025, was $31.55 per kW-year based on a net annual transmission revenue requirement of $137.9 million. A kW-year is a unit of electrical capacity equivalent to 1 kilowatt of power used for 8,760 hours.
Previous report
In August 2024, the OPUC issued an order approving Idaho Power's final RFP to procure resources for its anticipated energy and capacity needs in 2028 and beyond. Idaho Power issued the RFP in August 2024 soliciting resources with a commercial operation date (COD) no later than April 1, 2028 (2028 bids), as well as bids with a COD after April 1, 2028. In March 2025, the OPUC acknowledged the final shortlist of 2028 bids, subject to certain conditions. In July 2025, Idaho Power filed a request for acknowledgement from the OPUC for the final shortlist of bids with a COD no later than June 1, 2029 (2029 bids). Bids from Idaho Power are included in the final shortlist of 2029 bids. In August 2025, the OPUC acknowledged the final shortlist of 2029 bids, subject to certain conditions.
Previous report
In December 2024, Idaho Power filed an application with the IPUC for the Jackalope Wind Project, consisting of (i) a 35-year PPA between Jackalope Wind, LLC and Idaho Power, supplying a capacity of 300 MW of generation to Idaho Power's system, and (ii) a wind turbine generator power plant to be owned by Idaho Power, providing a capacity of 300 MW of generation. In its application, Idaho Power requested that the IPUC approve the PPA and grant a CPCN for the wind turbine generator power plant. In June 2025, the IPUC approved the PPA and granted the CPCN. However, due to the termination of the agreements for the Jackalope Wind Project following a delay in the planned commercial operation date of the Project, in September 2025, Idaho Power filed a petition with the IPUC to withdraw the CPCN and approval of the PPA for the Project. As of the date of this report, the IPUC's decision is pending.
Previous report
Also in December 2024, Idaho Power filed an application with the IPUC to grant a CPCN for Idaho Power to acquire and own two battery storage facilities with a total of 100 MW of operating capacity to address Idaho Power's identified capacity deficiency in 2026. In October 2025, the IPUC granted the CPCN.
Previous report
In March 2025, Idaho Power filed an application with the IPUC to grant a CPCN for Idaho Power to acquire an ownership interest, including the rights to 250 MW of northbound capacity, in SWIP-N, a planned 285-mile, high-voltage transmission line between the Robinson Summit Substation near Ely, Nevada, and the Midpoint Substation near Jerome, Idaho. In its application, Idaho Power also requested that the IPUC approve the company's utilization of an additional 250 MW of rights to northbound capacity on SWIP-N. As of the date of this report, the case remains pending.
Previous report
In March 2025, Idaho Power filed an application with the IPUC for an order (1) approving the 20-year PPA with Crimson Orchard Solar LLC supplying 100 MW of output to Idaho Power, (2) approving the 20-year energy storage agreement (ESA) with Crimson Orchard Solar for 100 MW of dispatchable energy storage capacity, and (3) acknowledging the lease accounting necessary to facilitate the transaction and that the resulting expenses associated with both the PPA and the ESA are prudently incurred for ratemaking purposes. In August 2025, Idaho Power also filed with the IPUC for approval of amendments to the PPA and ESA for Crimson Orchard Solar. As of the date of this report, the IPUC's decision is pending.
Previous report
EPA Proposed Regulatory Actions
Previous report
National Environmental Policy Act Matters
Showing the first 40 of 54 passages. Open the source sections for the rest.
Reworded paragraphs (104)
Previous wording
In the 2024 Annual Report, IDACORP's and Idaho Power's management included a summary of their business objectives for the companies for 2025 and beyond, under the heading "Executive Overview" in the MD&A. As of the date of this report, management's outlook and strategy remain consistent with that discussion, as updated by some of the discussion in this MD&A. Some notable developments that have occurred since that report include the following:
Current wording
In the 2025 Annual Report, IDACORP's and Idaho Power's management included a summary of their business objectives for the companies for 2026 and beyond, under the heading "Executive Overview" in the MD&A. As of the date of this report, management's outlook and strategy remain consistent with that discussion, as updated by the discussion in this MD&A. Some notable developments that have occurred since that report include the following:
Previous wording
•Idaho Power continues to experience and forecast positive customer growth in its service area. During the first nine months of 2025, Idaho Power's customer count grew by over 11,500 customers and for the twelve months ended September 30, 2025, the customer growth rate was 2.3 percent.
Current wording
•Idaho Power continues to experience and forecast positive customer growth in its service area. During the twelve months ended March 31, 2026, Idaho Power's customer count grew by approximately 15,000 customers and the customer growth rate was 2.3 percent.
Previous wording
•So far in 2025, several key projects achieved notable milestones, underscoring significant progress towards Idaho Power addressing peak capacity and energy needs in 2025 and beyond:
Current wording
•So far in 2026, Idaho Power achieved notable milestones for several key projects, underscoring significant progress towards addressing peak capacity and energy needs in 2027 and beyond:
Previous wording
◦an agreement to purchase the output of an 80 MW solar facility, with a scheduled online date of June 2027.
Current wording
◦In March, the IPUC approved Idaho Power's agreement to purchase the output of an 80 MW solar facility, with a scheduled online date of June 2027.
Previous wording
◦Idaho Power filed a CPCN request with the IPUC for a 167 MW expansion of the existing Bennett Mountain natural gas generation facility, with an expected in-service date in 2028.
Current wording
◦In March, the IPUC approved Idaho Power's CPCN request for 167 MW of natural gas-fueled generating capacity next to the existing Bennett Mountain power plant, with an expected in-service date in 2028.
Previous wording
The following is a summary of Idaho Power's net income, net income attributable to IDACORP, and IDACORP's earnings per diluted share for the three months and nine months ended September 30, 2025 and 2024 (in thousands, except earnings per share amounts):
Current wording
The following is a summary of Idaho Power's net income, net income attributable to IDACORP, and IDACORP's earnings per diluted share (in thousands of dollars and shares, except earnings per share amounts):
Previous wording
The table below provides a reconciliation of net income attributable to IDACORP for the three months and nine months ended September 30, 2025, from the same periods in 2024 (items are in millions and are before related income tax impact unless otherwise noted):
Current wording
The table below provides a reconciliation of net income attributable to IDACORP for the three months ended March 31, 2026, from the same period in 2025 (items are in millions of dollars and are before related income tax impact unless otherwise noted):
Previous wording
IDACORP's net income increased $10.8 million for the third quarter of 2025 compared with the third quarter of 2024, due primarily to higher net income at Idaho Power.
Current wording
IDACORP's net income increased $8.4 million for the first quarter of 2026 compared with the first quarter of 2025, due primarily to higher net income at Idaho Power.
Previous wording
A net increase in retail revenues per MWh, net of power cost adjustment mechanisms, increased operating income by $17.6 million in the third quarter of 2025 compared with the third quarter of 2024. This benefit was due primarily to an overall increase in Idaho base rates, effective January 1, 2025, from the outcome of the 2024 Idaho Limited-Issue Rate Case. For more information on the 2024 Idaho Limited-Issue Rate Case, see Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2024 Annual Report.
Current wording
A net increase in retail revenues per MWh, net of power cost adjustment mechanisms, increased operating income by $18.0 million in the first quarter of 2026 compared with the first quarter of 2025. This benefit was due primarily to an overall increase in Idaho base rates, effective January 1, 2026, from the outcome of the 2025 Settlement Stipulation. For more information on the 2025 Settlement Stipulation, see Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2025 Annual Report.
Previous wording
Customer growth increased operating income by $7.8 million in the third quarter of 2025 compared with the third quarter of 2024, as the number of Idaho Power customers grew by approximately 15,000, or 2.3 percent, during the twelve months ended September 30, 2025. Usage per retail customer, net of associated power supply costs and power cost adjustment and FCA mechanisms, decreased operating income by $5.7 million in the third quarter of 2025 compared with the third quarter of 2024. Irrigation usage per customer decreased most significantly, as higher precipitation in the third quarter of 2025 compared with the third quarter of 2024 led irrigation customers to use less energy for operating irrigation pumps.
Current wording
Customer growth increased operating income by $5.0 million in the first quarter of 2026 compared with the first quarter of 2025, as the number of Idaho Power customers grew by approximately 15,000, or 2.3 percent, during the twelve months ended March 31, 2026. Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms, decreased operating income by $10.7 million in the first quarter of 2026 compared with the first quarter of 2025. Usage per residential and commercial customers decreased most significantly, as more moderate temperatures in the first quarter of 2026 compared with the first quarter of 2025 led these customers to use less energy for heating purposes. These decreases were partially offset by increases in usage per irrigation and industrial customers, as lower precipitation in the first quarter of 2026 compared with the first quarter of 2025 led irrigation customers to use more energy for operating irrigation pumps, and a large load industrial customer increased energy use as it ramped up operation of its facility. An increase in the deferral of residential and small commercial customer revenues through the FCA mechanism positively affected retail revenues by $19.1 million.
Previous wording
Depreciation and amortization expense increased $8.1 million in the third quarter of 2025 compared with the third quarter of 2024, due primarily to an increase in plant-in-service. Additionally, the start of operations at a leased battery storage facility in the second quarter of 2025 contributed modestly to the increase through the amortization of a related right-of-use asset.
Current wording
Depreciation and amortization expense increased $5.7 million in the first quarter of 2026 compared with the first quarter of 2025, due primarily to an increase in plant-in-service. Additionally, the start of operations at a leased battery storage facility in the second quarter of 2025 contributed modestly to the increase through the amortization of a related right-of-use asset.
Previous wording
Other changes in operating revenues and expenses, net, increased operating income by $4.3 million in the third quarter of 2025 compared with the third quarter of 2024, due primarily to a decrease in net power supply expenses that were not deferred for future recovery in rates through Idaho Power's power cost adjustment mechanisms.
Current wording
Other changes in operating revenues and expenses, net, increased operating income by $13.6 million in the first quarter of 2026 compared with the first quarter of 2025, due primarily to a decrease in net power supply expenses that were not accrued for future refund in rates through Idaho Power's power cost adjustment mechanisms. Also contributing to the increase in other changes in operating revenues and expenses, net, was a decrease in property tax expense due to property tax legislative changes in Idaho.
Previous wording
Non-operating expense, net, increased $9.8 million in the third quarter of 2025 compared with the third quarter of 2024. Higher long-term debt balances and an increase in transmission customer deposits, on which Idaho Power must pay interest to the customer, led to an increase in interest expense. Interest on a new finance lease also contributed to the increase compared with the third quarter of 2024. This increase was partially offset by an increase in AFUDC in the third quarter of 2025 compared with the third quarter of 2024, as the average construction work in progress balance was higher.
Current wording
Non-operating expense, net, increased $4.1 million in the first quarter of 2026 compared with the first quarter of 2025. Higher long-term debt balances led to an increase in interest expense, while lower interest-bearing cash investments led to a decrease in interest income. Interest expense recorded on a new finance lease also contributed to the increase compared with the first quarter of 2025. This increase was partially offset by an increase in AFUDC in the first quarter of 2026 compared with the first quarter of 2025, as the average construction work in progress balance was higher.
Previous wording
The decrease in income tax expense for the first nine months of 2025, compared with the first nine months of 2024, was primarily due to income tax return adjustments for state taxes and plant-related flow-through items as well as a $16.5 million increase in additional ADITC amortization. Based on Idaho Power's current expectations of full-year 2025 financial results, Idaho Power recorded $39.0 million of additional ADITC amortization under its Idaho regulatory settlement stipulation during the first nine months of 2025, compared with $22.5 million of additional ADITC amortization during the same period in 2024.
Current wording
The increase in income tax expense for the first quarter of 2026, compared with the first quarter of 2025, was primarily due to a decrease in additional ADITC amortization under the Idaho regulatory settlement stipulation. Based on Idaho Power's current expectations of full-year 2026 financial results, Idaho Power recorded $6.3 million of additional ADITC amortization during the first quarter of 2026, compared with $19.3 million of additional ADITC amortization during the same period in 2025.
Previous wording
To address the regulatory lag in recovery of costs primarily associated with Idaho Power’s current and anticipated significant infrastructure investments, in May 2025 Idaho Power filed a general rate case in Idaho. In October 2025, Idaho Power, the Staff of the IPUC, and several of the intervening parties filed a settlement stipulation with the IPUC related to the 2025 Idaho general rate case filing. The settlement stipulation is subject to approval by the IPUC. The general rate case filing and the settlement stipulation are described more fully in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.
Current wording
Idaho Power filed its most recent general rate case in Idaho in May 2025. The IPUC approved a settlement stipulation for the general rate case in December 2025, with rates effective January 1, 2026. The general rate case filing and the settlement stipulation are described more fully in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2025 Annual Report. Idaho Power continues to evaluate the timing of its next general rate cases in Idaho and Oregon.
Previous wording
•Rate Base Growth and Infrastructure Investment: The rates established by the IPUC, OPUC, and FERC are determined with the intent to provide an opportunity for Idaho Power to recover authorized operating expenses and depreciation and earn a reasonable return on “rate base.” Rate base is generally determined by reference to the original cost (net of accumulated depreciation) of utility plant in service and certain other assets, subject to various adjustments for deferred income taxes and other items. Over time, rate base is increased by additions to utility plant in service and reduced by depreciation of utility plant and write-offs as authorized by the IPUC and OPUC. Idaho Power is pursuing significant enhancements to its utility infrastructure in an effort to maintain system reliability, ensure an adequate supply of electricity, and provide service to new customers, including major ongoing transmission projects such as the B2H, GWW, and SWIP-N projects. Idaho Power's existing hydropower and thermal generation facilities also require continuing upgrades and equipment replacement, and the company continues a significant relicensing effort for the HCC, its largest hydropower generation resource. Idaho Power is pursuing timely inclusion of completed capital projects into rate base as part of the 2025 general rate case filing and intends to continue to do so in future general rate cases or other appropriate regulatory proceedings.
Current wording
•Rate Base Growth and Infrastructure Investment: The rates established by the IPUC, OPUC, and FERC are determined with the intent to provide an opportunity for Idaho Power to recover authorized operating expenses and depreciation and earn a reasonable return on “rate base.” Rate base is generally determined by reference to the original cost (net of accumulated depreciation) of utility plant in service and certain other assets, subject to various adjustments for deferred income taxes and other items. Over time, rate base is increased by additions to utility plant in service and reduced by depreciation of utility plant and write-offs as authorized by the IPUC and OPUC. Idaho Power is pursuing significant enhancements to its utility infrastructure in an effort to maintain system reliability, ensure an adequate supply of electricity, and provide service to new customers, including major ongoing transmission projects such as the B2H, GWW, and SWIP-N projects. To help meet future peak capacity and energy needs, Idaho Power is planning to construct three new natural gas-fired generating facilities with planned generation capacities of 167 MW, 222 MW, and 430 MW, and expected in-service dates in 2028, 2029, and 2030, respectively. Idaho Power's existing hydropower and thermal generation facilities also require continuing upgrades and equipment replacement, and the company continues a significant relicensing effort for the HCC, its largest hydropower generation resource. Idaho Power intends to pursue timely inclusion of completed capital projects into rate base as part of a future general rate case or other appropriate regulatory proceeding, but the company incurs the cash requirements of constructing and the costs of financing those resources before they are in rates and customer revenues.
Previous wording
•Economic Conditions and Loads: Economic conditions impact consumer demand for energy, revenues, collectability of accounts, the volume of wholesale energy sales, and the need to construct and improve infrastructure, purchase power, and implement programs to meet customer load demands. In recent years, Idaho Power has seen significant growth in the number of customers in its service area. Over the twelve months ended September 30, 2025, Idaho Power's customer count grew by 2.3 percent. While recessionary or volatile economic conditions could slow the rate of customer growth, Idaho Power expects its number of customers and, to a greater extent its load due to anticipated commercial and industrial customer growth, to increase in the foreseeable future.
Current wording
•Economic Conditions and Loads: Economic conditions impact consumer demand for energy, revenues, collectability of accounts, the volume of wholesale energy sales, and the need to construct and improve infrastructure, purchase power, and implement programs to meet customer load demands. In recent years, Idaho Power has seen significant growth in the number of customers in its service area. Over the twelve months ended March 31, 2026, Idaho Power's customer count grew by 2.3 percent. While recessionary or volatile economic conditions could slow the rate of customer growth, Idaho Power expects its number of customers and, to a greater extent its load due to anticipated commercial and industrial customer growth, to increase in the foreseeable future. This was visible during the first quarter of 2026, with an increase in industrial loads over the prior year's first quarter driven by the ramp-up in electric service by a new large load customer. Idaho Power expects this customer, together with other large-load industrial customers, to ramp up operations further during the remainder of 2026 and for the next several years. Idaho Power is in the process of discussing and negotiating terms, conditions, and pricing of potential service agreements with several additional large load customers.
Previous wording
Customer growth has contributed to increases in peak loads experienced in recent years. For example, Idaho Power's highest all-time winter peak demand of 2,719 MW occurred on January 16, 2024, and on July 22, 2024, Idaho Power reached a new all-time summer peak demand of 3,793 MW. Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, the obligation to maintain a safe and reliable system, along with changes in the regional transmission markets that have constrained the availability of transmission outside Idaho Power’s service area to import energy during peak load periods, require Idaho Power to increase its investment in capacity resources, transmission, and distribution infrastructure. This includes the B2H, GWW, and SWIP-N transmission projects, along with other capacity, energy, and transmission resource procurements, described in "Liquidity and Capital Resources" in this MD&A.
Current wording
Idaho Power's 2025 IRP assumed a forecasted annual growth in retail MWh sales of 8.3 percent and a forecasted annual growth in peak-hour demand of 5.1 percent over the upcoming 5-year period. For more information on the 2025 IRP, refer to "Resource Planning" in Item 1 - "Business" of the 2025 Annual Report. Customer growth has contributed to increases in peak loads experienced in recent years. For example, Idaho Power's highest all-time winter peak demand of 2,719 MW occurred on January 16, 2024, and on July 22, 2024, Idaho Power reached a new all-time summer peak demand of 3,793 MW. Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, the obligation to maintain a safe and reliable system, along with changes in the regional transmission markets that have constrained the availability of transmission outside Idaho Power’s service area to import energy during peak load periods, require Idaho Power to increase its investment in capacity resources, transmission, and distribution infrastructure. For more information on Idaho Power's system investments and resource procurements, see "Liquidity and Capital Resources" in this MD&A. Idaho Power has begun preparation of its 2027 IRP and expects to prepare an updated load forecast during 2026 as the basis for the 2027 IRP, which Idaho Power expects to file in the summer of 2027.
Previous wording
Further, as Idaho Power's hydropower facilities comprise over one-half of Idaho Power's nameplate generation capacity, precipitation levels impact the mix of Idaho Power's generation resources. When hydropower generation decreases, Idaho Power must rely on more expensive generation sources and purchased power. When favorable hydropower generating conditions exist for Idaho Power, they also may exist for other Pacific Northwest hydropower facility operators, lowering regional wholesale market prices and impacting the revenue Idaho Power receives from wholesale energy sales. Much of the adverse or favorable impact of this variability is addressed through the Idaho and Oregon power cost adjustment mechanisms, which mitigate in large part the impact on earnings. For 2025, Idaho Power expects generation from its hydropower resources to be in the range of 6.5 million to 7.0 million MWh, compared with actual generation of 7.2 million MWh in 2024 and a 30-year average annual total of approximately 7.7 million MWh.
Current wording
Further, as Idaho Power's hydropower facilities comprise over one-half of Idaho Power's nameplate generation capacity, precipitation levels impact the mix of Idaho Power's generation resources. When hydropower generation decreases, Idaho Power must rely on more expensive generation sources and purchased power. When favorable hydropower generating conditions exist for Idaho Power, they also may exist for other Pacific Northwest hydropower facility operators, lowering regional wholesale market prices and impacting the revenue Idaho Power receives from wholesale energy sales. Much of the adverse or favorable impact of this variability is addressed through the Idaho and Oregon power cost adjustment mechanisms, which mitigate in large part the impact on earnings. For 2026, as of the date of this report, Idaho Power expects generation from its hydropower resources to be in the range of 5.5 million to 7.0 million MWh, compared with actual generation of 7.0 million MWh in 2025 and a 20-year average annual total of approximately 7.3 million MWh.
Previous wording
•Wildfire Mitigation Efforts: In recent years, the western United States has experienced an increasing number of wildfires of unprecedented severity. A variety of factors have contributed to this trend including increased wildland-urban interfaces, historical land management practices, climate change, and overall wildland and forest health. Idaho Power is taking a proactive approach to wildfire risk in its service area and transmission corridors. Idaho Power has developed and adopted a WMP that outlines actions Idaho Power is taking or is working to implement to reduce wildfire risk and to strengthen the resiliency of its transmission and distribution system to wildfires. Idaho Power's approach to wildfire mitigation includes identifying areas subject to elevated risk; system hardening programs, vegetation management, and field personnel practices to mitigate wildfire risk; incorporating current and forecasted weather and field conditions into operational practices; public safety power shutoff protocols; and evaluating the performance and effectiveness of its approach through metrics and monitoring. Idaho Power has regulatory authorization in both Idaho and Oregon to defer, for potential future amortization, certain actual incremental O&M expenses necessary to implement the WMP. The WMP regulatory deferrals are described in more detail in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2024 Annual Report and the condensed consolidated financial statements included in this report. In July 2025, the Idaho Wildfire Standard of Care Act became effective. In October 2025, Idaho Power filed a new WMP with the IPUC in accordance with the Act. As of the date of this report, the IPUC's decision is pending. See "Other Matters - Idaho Wildfire Standard of Care Act" for additional detail.
Current wording
•Wildfire Mitigation Efforts: In recent years, the western United States has experienced severe wildfires. A variety of factors have contributed to this trend including increased wildland-urban interfaces, historical land management practices, climate change, and overall wildland and forest conditions. Idaho Power is taking a proactive approach to wildfire risk in its service area and transmission corridors. Several years ago, Idaho Power adopted a WMP that outlines actions Idaho Power is taking or is working to implement to reduce wildfire risk and to strengthen the resiliency of its transmission and distribution system to wildfires, and Idaho Power has refined that WMP over time. Idaho Power's approach to wildfire mitigation includes identifying areas subject to elevated risk; system hardening programs, vegetation management, and field personnel practices to mitigate wildfire risk; incorporating current and forecasted weather and field conditions into operational practices; public safety power shutoff protocols; and evaluating the performance and effectiveness of its approach through metrics and monitoring. Idaho Power has regulatory authorization in both Idaho and Oregon to defer, for potential future amortization, certain actual incremental O&M expenses necessary to implement the WMP. The WMP regulatory deferrals are described in more detail in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2025 Annual Report and the condensed consolidated financial statements included in this report. In October 2025, Idaho Power filed a new WMP with the IPUC in accordance with Idaho's new Wildfire Standard of Care Act, and in April 2026, the IPUC issued an order approving the WMP. See "Other Matters - Idaho Wildfire Standard of Care Act" for additional details.
Previous wording
This section of MD&A takes a closer look at the significant factors that affected IDACORP’s and Idaho Power’s earnings during the three months and nine months ended September 30, 2025. In this analysis, the results for the three months and nine months ended September 30, 2025, are compared with the same periods in 2024.
Current wording
This section of MD&A takes a closer look at the significant factors that affected IDACORP’s and Idaho Power’s earnings during the three months ended March 31, 2026. In this analysis, the results for the three months ended March 31, 2026, are compared with the same period in 2025.
Previous wording
The table below presents Idaho Power’s energy sales and supply (in thousands of MWh) for the three months and nine months ended September 30, 2025 and 2024.
Current wording
The table below presents Idaho Power’s energy sales and supply (in thousands of MWh).
Previous wording
Weather-related information for Boise, Idaho, for the three months and nine months ended September 30, 2025 and 2024, is presented in the table below. While Boise, Idaho weather conditions are not necessarily representative of weather conditions throughout Idaho Power's service area, the greater Boise area has the majority of Idaho Power's customers and is included for illustrative purposes.
Current wording
Weather-related information for Boise, Idaho, is presented in the table below. While Boise, Idaho weather conditions are not necessarily representative of weather conditions throughout Idaho Power's service area, the greater Boise area has the majority of Idaho Power's customers and is included for illustrative purposes.
Previous wording
Sales Volume and Generation: Retail sales volumes were flat in the third quarter of 2025 compared with the same period in 2024. This was primarily due to growth in the number of Idaho Power customers, which was mostly offset by a decrease in usage per customer in all customer classes. Greater precipitation and moderate temperatures in Idaho Power's service area during the third quarter of 2025, compared with the third quarter of 2024, led irrigation customers to operate irrigation pumps less. Residential and commercial customers also used less energy per customer for cooling purposes compared to the same period in 2024, contributing to the lower volumes. Retail sales volumes increased 3 percent in the first nine months of 2025 compared with the same period in 2024, primarily due to 2.3 percent growth in the number of Idaho Power customers over the prior twelve months. For more information on the changes in sales volume, see the "Operating Revenues" section below in this MD&A.
Current wording
Sales Volume and Generation: Retail sales volumes decreased 3 percent in the first quarter of 2026 compared with the same period in 2025, primarily due to more moderate temperatures, which reduced the amount of energy per customer used for heating. The decrease in usage per customer was partially offset by customer growth as the number of Idaho Power's customers grew by 2.3 percent over the prior twelve months. For more information on the changes in sales volume, see the "Operating Revenues" section below in this MD&A.
Previous wording
Total system generation decreased 3 percent for the third quarter of 2025 compared with the third quarter of 2024, due primarily to lower hydropower generation and steam generation, offset partially by an increase in natural gas generation. Total system generation increased slightly in the first nine months of 2025 compared with the same period in 2024, which consists of an increase in steam generation, partially offset by decreased hydropower generation and natural gas generation. For more information on the changes in generation, see the "Operating Expenses" section below in this MD&A.
Current wording
Total system generation decreased 23 percent for the first quarter of 2026 compared with the first quarter of 2025, due primarily to lower hydropower generation and jointly-owned thermal generation. For more information on the changes in generation, see the "Operating Expenses" section below in this MD&A.
Previous wording
Retail Revenues: The table below presents Idaho Power’s retail revenues (in thousands) and MWh sales volumes (in thousands) for the three months and nine months ended September 30, 2025 and 2024, and the number of customers as of September 30, 2025 and 2024.
Current wording
Retail Revenues: The table below presents Idaho Power’s retail revenues (in thousands of dollars), MWh sales volumes (in thousands of MWh), and the number of retail customers.
Previous wording
(2) The IPUC allows Idaho Power to recover a portion of the AFUDC on construction work in progress related to the HCC relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to utility plant in service. Idaho Power is collecting approximately $8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service. Effective October 1, 2025, this amount will increase by $29.7 million annually; refer to Note 3 - "Regulatory Matters."
Current wording
(2) The IPUC allows Idaho Power to recover a portion of the AFUDC on construction work in progress related to the HCC relicensing process in its Idaho jurisdiction, even though the relicensing process is not yet complete and the costs have not been moved to utility plant in service. Effective October 1, 2025, Idaho Power began collecting $38.5 million annually. Prior to October 1, 2025, Idaho Power collected $8.8 million annually. For more information refer to Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2025 Annual Report. Amounts collected in the Idaho jurisdiction are recognized as deferred revenue until the license is issued and the accumulated license costs approved for recovery are placed in service.
Previous wording
Retail revenues decreased $8.6 million during the third quarter of 2025, compared with the same period in 2024. Retail revenues increased $16.2 million during the first nine months of 2025, compared with the same period in 2024. The factors affecting retail revenues during the periods are discussed below.
Current wording
Retail revenues increased $6.5 million during the first quarter of 2026, compared with the same period in 2025. The factors affecting retail revenues during the periods are discussed below.
Previous wording
•Rates: Customer rates, excluding revenues related to power cost adjustment mechanisms, increased retail revenues by $17.6 million and $37.2 million, respectively, for the three months and nine months ended September 30, 2025, compared with the same periods in 2024, due primarily to an overall increase in Idaho base rates, effective January 1, 2025, from the outcome of the 2024 Idaho Limited-Issue Rate Case. Customer rates also include the collection from customers of amounts related to the power cost adjustment mechanisms, which decreased revenues by $27.7 million and $51.2 million, in the third quarter and first nine months of 2025, respectively, compared with the same periods of 2024. The amount collected from customers in rates under the power cost adjustment mechanisms has relatively little effect on operating income as a corresponding amount is recorded as expense in the same period it is collected through rates.
Current wording
•Rates: Customer rates, excluding revenues related to power cost adjustment mechanisms, increased retail revenues by $18.0 million for the three months ended March 31, 2026, compared with the same period in 2025, due primarily to an overall increase in Idaho base rates, effective January 1, 2026, from the outcome of the 2025 Settlement Stipulation. Customer rates also include the collection from customers of amounts related to the power cost adjustment mechanisms, which decreased revenues by $20.6 million in the first quarter of 2026 compared with the same period of 2025. The amount collected from customers in rates under the power cost adjustment mechanisms has relatively little effect on operating income as a corresponding amount is recorded as expense in the same period it is collected through rates.
Previous wording
•Customers: Customer growth of 2.3 percent during the twelve months ended September 30, 2025, increased retail revenues by $12.4 million and $30.4 million in the third quarter and first nine months of 2025, respectively, compared with the same periods of 2024.
Current wording
•Customers: Customer growth of 2.3 percent during the twelve months ended March 31, 2026, increased retail revenues by $7.5 million in the first quarter of 2026 compared with the same period of 2025.
Previous wording
•Usage: Lower usage (on a per customer basis), in all customer classes decreased retail revenues by $12.9 million in the third quarter of 2025 compared with the same period of 2024, primarily due to weather variations that caused lower usage per customer. Greater precipitation and more moderate temperatures in Idaho Power's service area during the third quarter of 2025 led agricultural irrigation customers to use less energy per customer to operate irrigation pumps and residential and commercial customers to use less energy per customer for cooling purposes compared with the same period in 2024. During the first nine months of 2025, usage in all customer classes was relatively flat, compared with the same period of 2024.
Current wording
•Usage: Lower usage (on a per customer basis), in some customer classes, decreased retail revenues by $17.5 million in the first quarter of 2026 compared with the same period of 2025, primarily due to weather variations. Usage per residential and commercial customers decreased most significantly, as more moderate temperatures in the first quarter of 2026 compared with the first quarter of 2025 led these customers to use less energy for heating purposes. These decreases were partially offset by increases in usage per irrigation and industrial customers, as lower precipitation in the first quarter of 2026 compared with the first quarter of 2025 led irrigation customers to use more energy for operating irrigation pumps, and a large load industrial customer increased energy use as it ramped up operation of its facility.
Previous wording
•FCA Mechanism: A decrease in the deferral of residential and small commercial customer revenues through the FCA mechanism positively affected retail revenues by $2.1 million in the third quarter of 2025 compared with the same period in 2024. Conversely, an increase in the deferral of residential and small commercial customer revenues through the FCA mechanism negatively affected retail revenues by $0.2 million during the first nine months of 2025 compared with the same period in 2024.
Current wording
•FCA Mechanism: A decrease in the deferral of residential and small commercial customer revenues through the FCA mechanism positively affected retail revenues by $19.1 million.
Previous wording
Wholesale Energy Sales: Wholesale energy sales consist primarily of long-term sales contracts, opportunity sales of surplus system energy, and sales into the energy imbalance market in the western United States, and do not include derivative transactions. The table below presents Idaho Power’s wholesale energy sales for the three months and nine months ended September 30, 2025 and 2024 (in thousands, except for revenue per MWh amounts).
Current wording
Wholesale Energy Sales: Wholesale energy sales consist primarily of long-term sales contracts, opportunity sales of surplus system energy, and sales into the energy imbalance market in the western United States, and do not include derivative transactions. The table below presents Idaho Power’s wholesale energy sales (in thousands of dollars and MWh, except for revenue per MWh amounts).
Previous wording
In the third quarter of 2025, wholesale energy revenues increased $3.6 million compared with the same period of 2024, due primarily to an increase in wholesale energy volumes sold. Wholesale energy revenues decreased $20.3 million in the first nine months of 2025, due primarily to lower wholesale market prices compared with 2024. Wholesale energy prices were lower during the third quarter and first nine months of 2025 compared with 2024 as more moderate winter and summer weather resulted in lower power prices in the wholesale markets in the region. The financial impacts of fluctuations in wholesale energy sales are largely mitigated by Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described below in this section of the MD&A under "Power Cost Adjustment Mechanisms."
Current wording
In the first quarter of 2026, wholesale energy revenues decreased $14.7 million compared with the same period of 2025, due primarily to a decrease in wholesale energy volumes sold, partially due to milder winter weather resulting in lower demand in the regional energy market. Lower prices in the energy imbalance market led to less trading activity, which also contributed to the decrease in wholesale energy volumes sold. The financial impacts of fluctuations in wholesale energy sales are largely mitigated by Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described below in this section of the MD&A under "Power Cost Adjustment Mechanisms."
Previous wording
Purchased Power: The table below presents Idaho Power’s purchased power expenses and volumes for the three months and nine months ended September 30, 2025 and 2024 (in thousands, except for per MWh amounts).
Current wording
Purchased Power: The table below presents Idaho Power’s purchased power expenses and volumes (in thousands of dollars and MWh, except for per MWh amounts).
Previous wording
Fuel Expense: The table below presents Idaho Power’s fuel expenses and thermal generation for the three months and nine months ended September 30, 2025 and 2024 (in thousands, except for per MWh amounts).
Current wording
Fuel Expense: The table below presents Idaho Power’s fuel expenses and thermal generation (in thousands of dollars and MWh, except for per MWh amounts).
Previous wording
The majority of the fuel for Idaho Power’s jointly-owned plants is purchased through long-term contracts, including coal purchases from BCC, a one-third owned investment of IERCo. The price of coal from BCC is subject to fluctuations in mine operating expenses, geologic conditions, and production levels. BCC supplies the majority of the coal used by the Jim Bridger plant and BCC does not have significant sales to third parties. Natural gas is mainly purchased on the regional wholesale spot market at published index prices. In addition to commodity (variable) costs, both natural gas and coal expenses include costs that are more fixed in nature for items such as capacity charges, transportation, and fuel handling. Period to period variances in fuel expense per MWh are noticeably impacted by these fixed charges when generation output is substantially different between the periods.
Current wording
The majority of the fuel for Idaho Power’s jointly-owned thermal plants is purchased through long-term contracts, including coal purchases from BCC, a one-third owned investment of IERCo. The price of coal from BCC is subject to fluctuations in mine operating expenses, geologic conditions, and production levels. BCC supplies the majority of the coal used by the Jim Bridger plant and BCC does not have significant sales to third parties. Natural gas is mainly purchased on the regional wholesale spot market at published index prices. In addition to commodity (variable) costs, both natural gas and coal expenses include costs that are more fixed in nature for items such as capacity charges, transportation, and fuel handling. Period to period variances in fuel expense per MWh are noticeably impacted by these fixed charges when generation output is substantially different between the periods.
Previous wording
Included in fuel expense are losses and gains on settled financial gas hedges entered into in accordance with Idaho Power's energy risk management policy. For the third quarters of 2025 and 2024, and the first nine months of 2025 and 2024, losses on financial gas hedges of $9.1 million and $18.4 million, and $21.9 million and $43.4 million, respectively, increased natural gas fuel expense. Most of these realized hedging losses are passed on to customers through the power cost adjustment mechanisms described below.
Current wording
Included in fuel expense are losses and gains on settled financial gas hedges entered into in accordance with Idaho Power's energy risk management policy. For the first quarters of 2026 and 2025, losses on financial gas hedges of $26.5 million and $12.2 million, respectively, increased natural gas fuel expense. Most of these realized hedging losses are passed on to customers through the power cost adjustment mechanisms described below.
Previous wording
Power Cost Adjustment Mechanisms: Idaho Power's power supply costs (primarily purchased power and fuel expense, less wholesale energy sales) can vary significantly from year to year. Variability of power supply costs arises from factors such as weather conditions, wholesale market prices, volumes of power purchased and sold in the wholesale markets, Idaho Power's hydropower and thermal generation volumes and fuel costs, generation plant availability, and retail loads. To address the variability of power supply costs, Idaho Power's power cost adjustment mechanisms in the Idaho and Oregon jurisdictions allow Idaho Power to recover from customers, or refund to customers, most of the fluctuations in power supply costs. In the Idaho jurisdiction, the PCA includes a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers (95 percent) and Idaho Power (5 percent), with the exception of PURPA power purchases, battery storage leases, and demand response program incentives, which are allocated 100 percent to customers. The Idaho deferral period, or PCA year, runs from April 1 through March 31. Amounts deferred or accrued during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period. Because of the power cost adjustment mechanisms, the primary financial impact of power supply cost variations is that cash is paid out but recovery from customers does not occur until a future period, or cash that is collected is refunded to customers in a future period, resulting in fluctuations in operating cash flows from year to year.
Current wording
Power Cost Adjustment Mechanisms: Idaho Power's power supply costs (primarily purchased power and fuel expense, less wholesale energy sales) can vary significantly from year to year. Variability of power supply costs arises from factors such as weather conditions, wholesale market prices, volumes of power purchased and sold in the wholesale markets, Idaho Power's hydropower and thermal generation volumes and fuel costs, generation plant availability, and retail loads. To address the variability of power supply costs, Idaho Power's power cost adjustment mechanisms in the Idaho and Oregon jurisdictions allow Idaho Power to recover from customers, or refund to customers, most of the fluctuations in power supply costs. In the Idaho jurisdiction, the PCA includes a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers (95 percent) and Idaho Power (5 percent), with the exception of PURPA power purchases, export credit mechanisms, a battery storage lease, and demand response program incentives, which are allocated 100 percent to customers. The Idaho deferral period, or PCA year, runs from April 1 through March 31. Amounts deferred or accrued during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period. Because of the power cost adjustment mechanisms, the primary financial impact of power supply cost variations is that cash is paid out but recovery from customers does not occur until a future period, or cash that is collected is refunded to customers in a future period, resulting in fluctuations in operating cash flows from year to year.
Previous wording
The table below presents the components of the Idaho and Oregon power cost adjustment mechanisms for the three months and nine months ended September 30, 2025 and 2024 (in thousands).
Current wording
The table below presents the components of the Idaho and Oregon power cost adjustment mechanisms (in thousands of dollars).
Showing the first 40 of 104 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
◦In March, Idaho Power filed a CPCN request with the IPUC for a 222 MW natural gas-fueled facility, with an expected in-service date in 2029 and a 430 MW natural gas-fueled facility, with an expected in-service date in 2030. As of the date of this report, both requests are pending IPUC approval.
Current report — wording carried from elsewhere
Matters" to the consolidated financial statements included in the 2025 Annual Report for additional information relating to the 2025 Settlement Stipulation, 2024 Idaho Limited-Issue Rate Case, 2023 Idaho general rate case, and Oregon general rate case.
Current report — wording carried from elsewhere
•the repeal of certain amendments to the MATS Rule, including the revised filterable particulate matter (fPM) emission standard; the revised fPM emission standard compliance demonstration requirements; and the revised mercury emission standard for lignite-fired electric utility steam generating units.
Current report — wording carried from elsewhere
Idaho Power will continue to actively monitor EPA's proposals and any other pending or potential environmental regulations related to environmental matters that may have an impact on its future operations. Given uncertainties regarding the outcome and timing for these EPA proposals, Idaho Power is unable to estimate the impact on Idaho Power of any such proposals. Idaho Power does not expect any near-term impact on its plans or operations as a result of the rescission of the endangerment finding and the amendments to the MATS Rule but will continue to monitor any potential effects.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
IDACORP's net income increased $28.6 million for the first nine months of 2025 compared with the first nine months of 2024, due primarily to higher net income at Idaho Power.
Previous report — wording carried elsewhere
The net increase in retail revenues per MWh, net of power cost adjustment mechanisms, increased operating income by $37.2 million in the first nine months of 2025 compared with the first nine months of 2024. This benefit was due primarily to an overall increase in Idaho base rates, effective January 1, 2025, from the outcome of the 2024 Idaho Limited-Issue Rate Case.
Previous report — wording carried elsewhere
Depreciation and amortization expense increased $20.3 million for the first nine months of 2025 compared with the first nine months of 2024, due primarily to an increase in plant-in-service. Additionally, the start of operations at a leased battery storage facility in the second quarter of 2025 contributed modestly to the increase through the amortization of a related right-of-use asset.
Previous report — wording carried elsewhere
Non-operating expense, net, increased $19.0 million in the first nine months of 2025 compared with the first nine months of 2024. Higher long-term debt balances and an increase in transmission customer deposits, on which Idaho Power must pay interest to the customer, led to an increase in interest expense. Interest on a new finance lease also contributed to the increase compared with the first nine months of 2024. This increase was partially offset by an increase in AFUDC in the first nine months of 2025 compared with the first nine months of 2024, as the average construction work in progress balance was higher.
Previous report — wording carried elsewhere
Investing cash outflows were partially offset in 2025 and 2024 by reimbursements from a B2H project joint permitting participant relating to a portion of the permitting expenditures.
Previous report — wording carried elsewhere
Idaho Wildfire Standard of Care Act