IDACORP INC

Previous wording

•Idaho Power continues to experience and forecast positive customer growth in its service area. During the twelve months ended June 30, 2026, Idaho Power's customer count grew by approximately 15,000 customers and 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 September 30, 2026, Idaho Power's customer count grew by approximately 15,000 customers and the customer growth rate was 2.2 percent.

Previous wording

◦In March, Idaho Power filed a CPCN request for a 222 MW natural gas-fueled facility, with an expected in-service date in 2029, and for a 430 MW natural gas-fueled facility, with an expected in-service date in 2030. As of the date of this report, the CPCN request remains subject to regulatory approval.

Current wording

◦In March, Idaho Power filed a CPCN request for two facilities: (1) a 222 MW natural gas-fueled facility, with an expected in-service date in 2029, and (2) a 430 MW natural gas-fueled facility, with an expected in-service date in 2030. As of the date of this report, the CPCN request remains pending.

Previous wording

◦Also 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, and 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. Construction commenced at the Bennett Mountain power plant in May 2026.

Current wording

◦Also 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. The IPUC also 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. Construction commenced at the Bennett Mountain power plant in May 2026.

Previous wording

◦In April, Idaho Power, jointly with co-owner PacifiCorp, filed a CPCN request for Segment E-8 for the GWW transmission line, with an expected in-service date for the entire segment in 2030 or later. As of the date of this report, the CPCN request remains subject to regulatory approval.

Current wording

◦In April, Idaho Power, jointly with co-owner PacifiCorp, filed a CPCN request for Segment E-8 for the GWW transmission line, with an expected in-service date for the entire segment in 2030 or later. As of the date of this report, the CPCN request remains pending.

Previous wording

◦In June, Idaho Power filed an application with the IPUC for an order approving a 20-year PPA with Bluebird Solar Project LLC, supplying up to 200 MW of output to Idaho Power, along with a 20-year energy storage system tolling agreement for 100 MW of dispatchable energy storage capacity. Both are expected to be in-service by June 2028. As of the date of this report, the application remains subject to regulatory approval.

Current wording

◦In June, Idaho Power filed an application with the IPUC for an order approving a 20-year PPA with Bluebird Solar Project LLC, supplying up to 200 MW of output to Idaho Power, along with a 20-year energy storage system tolling agreement for 100 MW of dispatchable energy storage capacity. Both are expected to be in-service by June 2028. As of the date of this report, the application remains pending.

Previous wording

◦The conversion of unit 2 at the North Valmy power plant from coal to natural gas was completed in June, ending all coal-fired generation at the plant.

Current wording

◦The conversion of unit 2 at the North Valmy plant from coal to natural gas was completed in June, ending all coal-fired generation at the plant.

Previous wording

◦In July, Idaho Power began stringing transmission line wire on B2H and continues to expect an in-service date for B2H in late 2027.

Current wording

◦In July, Idaho Power began stringing transmission line wire on B2H and construction continues to progress, with more than half of transmission structures erected and nearly a quarter of conductor installed. B2H remains targeted for a late 2027 in-service date.

Previous wording

The table below provides a reconciliation of net income attributable to IDACORP for the three months and six months ended June 30, 2026, from the same periods in 2025 (items are in millions of dollars 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 and nine months ended September 30, 2026, from the same periods 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 $6.8 million for the second quarter of 2026 compared with the second quarter of 2025, due primarily to higher net income at Idaho Power.

Current wording

IDACORP's net income increased $35.8 million for the third quarter of 2026 compared with the third quarter of 2025, due primarily to higher net income at Idaho Power.

Previous wording

The net increase in retail revenues per MWh, excluding large contract customers, and net of power cost adjustment mechanisms, increased operating income by $27.5 million in the second quarter of 2026 compared with the second 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.

Current wording

The net increase in retail revenues per MWh, excluding large contract customers, and net of power cost adjustment mechanisms, increased operating income by $38.1 million in the third quarter of 2026 compared with the third 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, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, increased operating income by $4.5 million in the second quarter of 2026 compared with the second quarter of 2025, as the number of Idaho Power customers grew by approximately 15,000, or 2.3 percent, during the twelve months ended June 30, 2026. Usage per retail customer, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, was relatively consistent in the second quarter of 2026 compared with the second quarter of 2025, as a 2 percent decrease in usage per residential customer was mostly offset by an increase in usage per customer for irrigation customers. A decrease in the deferral of residential and small commercial customer revenues through the FCA mechanism positively affected retail revenues by $2.7 million.

Current wording

Customer growth, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, increased operating income by $5.8 million in the third quarter of 2026 compared with the third quarter of 2025, as the number of Idaho Power customers grew by approximately 15,000, or 2.2 percent, during the twelve months ended September 30, 2026. Usage per retail customer, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, was relatively consistent in the third quarter of 2026 compared with the third quarter of 2025, as a 1 percent increase in usage per residential customer and a 3 percent increase in usage per irrigation customer were mostly offset by a decrease in usage per industrial customer. An increase in the deferral of residential and small commercial customer revenues through the FCA mechanism negatively affected retail revenues by $3.7 million.

Previous wording

Retail revenues from large contract customers, net of associated power supply costs and the PCA mechanism, increased operating income by $6.5 million in the second quarter of 2026 compared with the second quarter of 2025. This benefit was primarily due to an increase in usage per large contract customer, the overall increase in Idaho base rates effective January 1, 2026, and the addition of one new large contract effective June 1, 2026.

Current wording

Retail revenues from large contract customers, net of associated power supply costs and the PCA mechanism, increased operating income by $11.8 million in the third quarter of 2026 compared with the third quarter of 2025. This benefit was primarily due to the commencement of Idaho Power earning revenue under a large customer contract on June 1, 2026, the overall increase in Idaho base rates effective January 1, 2026, and an increase in usage per large contract customer.

Previous wording

Depreciation and amortization expense increased $5.2 million in the second quarter of 2026 compared with the second quarter of 2025, due primarily to an increase in plant-in-service.

Current wording

Depreciation and amortization expense increased $7.4 million in the third quarter of 2026 compared with the third quarter of 2025, due primarily to an increase in plant-in-service.

Previous wording

Other changes in operating revenues and expenses, net, increased operating income by $6.3 million in the second quarter of 2026 compared with the second 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.

Current wording

Other changes in operating revenues and expenses, net, increased operating income by $10.6 million in the third quarter of 2026 compared with the third quarter of 2025. This was 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 lower property tax expense due to property tax legislative changes in Idaho.

Previous wording

Non-operating expense, net, increased $0.5 million in the second quarter of 2026 compared with the second 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. This increase was mostly offset by an increase in AFUDC in the second quarter of 2026 compared with the second quarter of 2025, as the average construction work in progress balance was higher.

Current wording

Non-operating expense, net, increased $1.1 million in the third quarter of 2026 compared with the third quarter of 2025. Higher long-term debt balances increased interest expense, while lower interest-bearing cash investment balances decreased interest income. This increase was mostly offset by an increase in AFUDC income in the third quarter of 2026 compared with the third quarter of 2025, as the average construction work in progress balance was higher.

Previous wording

The increase in income tax expense for the second quarter of 2026, compared with the second quarter of 2025, was primarily due to a decrease in additional ADITC amortization under the Idaho regulatory settlement stipulation and an increase in pre-tax income. Based on Idaho Power's current expectations of full-year 2026 financial results, Idaho Power recorded no additional ADITC amortization during the second quarter of 2026, compared with $17.2 million of additional ADITC amortization during the second quarter of 2025.

Current wording

The decrease in income tax expense for the third quarter of 2026, compared with the third quarter of 2025, was primarily due to plant-related flow-through items, partially offset by statutory taxes on higher pre-tax income and a decrease in additional ADITC amortization. Based on Idaho Power's current expectations of full-year 2026 financial results, Idaho Power recorded no additional ADITC amortization during the third quarter of 2026, compared with $2.5 million of additional ADITC amortization during the third quarter of 2025.

Previous wording

IDACORP's net income increased $15.2 million for the first six months of 2026 compared with the first six months of 2025, due primarily to higher net income at Idaho Power.

Current wording

IDACORP's net income increased $50.9 million for the first nine months of 2026 compared with the first nine months of 2025, due primarily to higher net income at Idaho Power.

Previous wording

The net increase in retail revenues per MWh, excluding large contract customers, and net of power cost adjustment mechanisms, increased operating income by $44 million in the first six months of 2026 compared with the first six months 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.

Current wording

The net increase in retail revenues per MWh, excluding large contract customers, and net of power cost adjustment mechanisms, increased operating income by $75.7 million in the first nine months of 2026 compared with the first nine months 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.

Previous wording

Customer growth, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, increased operating income by $8.2 million in the first six months of 2026 compared with the first six months of 2025. Usage per retail customer, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, decreased operating income by $12.4 million in the first six months of 2026 compared with the first six months of 2025. Residential usage per customer decreased most significantly, as more moderate temperatures in the first six months of 2026 compared with the first six months of 2025 led residential customers to use less energy for heating and cooling purposes. A decrease in the deferral of residential and small commercial customer revenues through the FCA mechanism positively affected retail revenues by $21.8 million.

Current wording

Customer growth, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, increased operating income by $13.9 million in the first nine months of 2026 compared with the first nine months of 2025. Usage per retail customer, excluding large contract customers, and net of associated power supply costs and power cost adjustment mechanisms, decreased operating income by $12.4 million in the first nine months of 2026 compared with the first nine months of 2025. Residential usage per customer decreased most significantly, as more moderate temperatures in the first six months of 2026 compared with the first six months of 2025 led residential customers to use less energy for heating and cooling purposes, slightly offset by less moderate temperatures and higher usage per customer in the third quarter of 2026 compared with the third quarter of 2025. A decrease in the deferral of residential and small commercial customer revenues through the FCA mechanism positively affected retail revenues by $18.2 million.

Previous wording

Retail revenues from large contract customers, net of associated power supply costs and the PCA mechanism, increased operating income by $8.9 million in the first six months of 2026 compared with the first six months of 2025. This change was primarily due to an increase in usage per large contract customer, the overall increase in Idaho base rates effective January 1, 2026, and the addition of one new large contract effective June 1, 2026.

Current wording

Retail revenues from large contract customers, net of associated power supply costs and the PCA mechanism, increased operating income by $20.1 million in the first nine months of 2026 compared with the first nine months of 2025. This change was primarily due to the commencement of Idaho Power earning revenue under a large customer contract on June 1, 2026, the overall increase in Idaho base rates effective January 1, 2026, and an increase in usage per large contract customer.

Previous wording

Depreciation and amortization expense increased $10.9 million for the first half of 2026 compared with the first half of 2025, due primarily to an increase in plant-in-service.

Current wording

Depreciation and amortization expense increased $18.4 million in the first nine months of 2026 compared with the first nine months of 2025, due primarily to an increase in plant-in-service.

Previous wording

Other changes in operating revenues and expenses, net, increased operating income by $22.0 million in the first six months of 2026 compared with the first six months 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.

Current wording

Other changes in operating revenues and expenses, net, increased operating income by $40.0 million in the first nine months of 2026 compared with the first nine months of 2025. This was 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 lower property tax expense due to property tax legislative changes in Idaho.

Previous wording

Non-operating expense, net, increased $4.6 million in the first six months of 2026 compared with the first six months of 2025. Higher long-term debt balances led to an increase in interest expense. This increase was partially offset by an increase in AFUDC in the first six months of 2026 compared with the first six months of 2025, as the average construction work in progress balance was higher. In addition, interest income decreased due to lower cash and cash equivalent balances in the first six months of 2026 compared with the first six months of 2025.

Current wording

Non-operating expense, net, increased $5.7 million in the first nine months of 2026 compared with the first nine months of 2025. Higher long-term debt balances increased interest expense, while lower interest-bearing cash investment balances decreased interest income. This increase was partially offset by an increase in AFUDC income in the first nine months of 2026 compared with the first nine months of 2025, as the average construction work in progress balance was higher.

Previous wording

The increase in income tax expense was principally the result of a decrease in additional ADITC amortization and higher pre-tax income. Based on Idaho Power's current expectations of full-year 2026 financial results, Idaho Power recorded $6.3 million of additional ADITC amortization under its Idaho regulatory settlement stipulation during the first six months of 2026, compared with $36.5 million of additional ADITC amortization during the same period in 2025.

Current wording

The increase in income tax expense was principally the result of a decrease in additional ADITC amortization and statutory taxes on higher pre-tax income, partially offset by plant-related flow-through items. Based on Idaho Power's current expectations of full-year 2026 financial results, Idaho Power recorded $6.3 million of additional ADITC amortization under its Idaho regulatory settlement stipulation during the first nine months of 2026, compared with $39.0 million of additional ADITC amortization during the same period in 2025.

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

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 authorized by the IPUC and OPUC and any write-downs. 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 growing 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 also has RFPs in progress for resources beyond those years. 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, as well as through recovery via regulator-approved large customer contracts, 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 June 30, 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 second quarter of 2026, with an increase in industrial loads and revenues over the prior year's second quarter driven by the ramp-up in electric service and in revenues by two large load customers. Idaho Power expects these customers, 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.

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 September 30, 2026, Idaho Power's customer count grew by 2.2 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 third quarter of 2026, with an increase in large contract industrial loads and revenues over the prior year's third quarter driven by the ramp-up in electric service and in revenues by two large contract customers. Idaho Power expects these customers, together with other large contract 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 large contract customers.

Previous 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 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.

Current wording

Customer growth has contributed to increases in peak loads experienced in recent years. 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 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.

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 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 6.5 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.

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 6.0 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 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. In December 2025, Idaho Power filed its 2026-2028 WMP with the OPUC, and in June 2026, the OPUC issued an order approving the WMP. See "Other Matters - Idaho Wildfire Standard of Care Act" included in the 2025 Annual Report, for additional details.

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. In 2021, Idaho Power adopted a WMP that outlined 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 December 2025, Idaho Power filed its 2026-2028 WMP with the OPUC, and in June 2026, the OPUC issued an order approving the WMP. In October 2026, Idaho Power filed its 2027 WMP with the IPUC for approval. See "Other Matters - Idaho Wildfire Standard of Care Act" included in the 2025 Annual Report, 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 six months ended June 30, 2026. In this analysis, the results for the three months and six months ended June 30, 2026, are compared with the same periods in 2025.

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 and nine months ended September 30, 2026. In this analysis, the results for the three months and nine months ended September 30, 2026, are compared with the same periods in 2025.

Previous wording

Sales Volume and Generation: Total energy sales volumes decreased 8 percent and 14 percent for the second quarter and first six months of 2026, respectively, compared with the same periods in 2025. The decrease in total energy sales volumes was primarily due to lower wholesale energy sales and lower energy sales bundled with renewable energy credits, offset partially by the increase in retail sales volumes. Retail sales volumes increased 3 percent for the second quarter of 2026 compared with the second quarter in 2025, primarily due to customer growth as the number of Idaho Power's customers grew by 2.3 percent over the prior twelve months. Retail sales volumes were relatively consistent in the first six months of 2026, compared with the same period in 2025, as the customer growth was mostly offset by lower usage per customer from more moderate weather in the first few months of 2026. For more information on the changes in sales volumes, see the "Operating Revenues" section below in this MD&A.

Current wording

Sales Volume and Generation: Retail sales volumes increased 3 percent and 1 percent for the third quarter and first nine months of 2026, respectively, compared with the same periods in 2025. The increases were primarily due to customer growth, as the number of Idaho Power's customers grew by 2.2 percent over the prior twelve months, and increased usage per large contract and irrigation customers. For more information on the changes in sales volumes, see the "Operating Revenues" section below in this MD&A.

Previous wording

Total system generation decreased 20 percent for the second quarter of 2026, compared with the second quarter of 2025, due primarily to lower hydropower generation and natural gas generation, partially offset by an increase in jointly-owned thermal generation. Total system generation decreased 21 percent in the first six months of 2026 compared with the same period in

Current wording

Total system generation increased 5 percent in the third quarter of 2026 compared with the third quarter of 2025, due primarily to higher jointly-owned thermal generation, partially offset by lower hydropower generation. Total system generation decreased 12 percent in the first nine months of 2026 compared with the same period in 2025, due primarily to lower hydropower generation and natural gas generation, partially offset by an increase in 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 increased $33.1 million and $39.6 million during the second quarter and first six months of 2026, respectively, compared with the same periods in 2025. The factors affecting retail revenues during the periods are discussed below.

Current wording

Retail revenues increased $76.3 million and $115.9 million during the third quarter and first nine months of 2026, respectively, compared with the same periods in 2025. The factors affecting retail revenues during the periods are discussed below.

Previous wording

June 30, 2026, compared with the same periods in 2025. This was 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 $13.1 million and $30.9 million in the second quarter and first six months of 2026, respectively, compared with the same periods 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.

Current wording

•Rates: Customer rates, excluding revenues related to large contract customers, and power cost adjustment mechanisms, increased retail revenues by $38.1 million and $75.7 million, respectively, for the three months and nine months ended September 30, 2026, compared with the same periods in 2025. This was 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 increased revenues by $18.3 million and decreased revenues by $5.1 million in the third quarter and first nine months of 2026, respectively, compared with the same periods 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 June 30, 2026, increased retail revenues, excluding large contract customers, by $6.3 million and $11.5 million in the second quarter and first six months of 2026, respectively, compared with the same periods of 2025.

Current wording

•Customers: Customer growth of 2.2 percent during the twelve months ended September 30, 2026, increased retail revenues, excluding large contract customers, by $9.2 million and $20.6 million in the third quarter and first nine months of 2026, respectively, compared with the same periods of 2025.

Previous wording

•Usage: Usage (on a per customer basis), excluding large contract customers, was relatively consistent in the second quarter of 2026, compared with the second quarter of 2025, as a 2 percent decrease in usage per residential customer was offset by an increase in usage per customer for irrigation customers and changes in customer mix. Lower usage per customer decreased retail revenues by $18.6 million in the first six months 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 half of 2026 compared with the first half of 2025 led these customers to use less energy for heating and cooling purposes. These decreases were partially offset by increases in usage per irrigation and industrial customers, as distribution of rainfall in May and June of 2026 compared with the same months of 2025 led irrigation customers to use more energy for operating irrigation pumps.

Current wording

•Usage: Usage (on a per customer basis), excluding large contract customers, increased retail revenues by $0.7 million in the third quarter of 2026, compared with the third quarter of 2025, due to a 3 percent increase in usage per irrigation customer and a 1 percent increase in usage per residential customer, partially offset by a 3 percent decrease in usage per industrial customer and changes in customer mix. Lower usage per customer, excluding large contract customers, decreased retail revenues by $18.3 million in the first nine months of 2026, compared with the same period of 2025. Usage per residential customer decreased most significantly, as more moderate temperatures in the first six months of 2026 compared with the first six months of 2025 led these customers to use less energy for heating and cooling purposes, slightly offset by less moderate temperatures and higher usage per residential customer in the third quarter of 2026 compared with the third quarter of 2025.

Previous wording

•Large Contract Customers: Retail revenues from large contract customers increased $9.7 million and $11.8 million during the second quarter and first six months of 2026, respectively, compared with the same periods of 2025. The increases were primarily due to an increase in usage per large contract customer, the overall increase in Idaho base rates effective January 1, 2026, and the addition of one new large contract effective June 1, 2026.

Current wording

•Large Contract Customers: Retail revenues from large contract customers increased $13.7 million and $24.8 million during the third quarter and first nine months of 2026, respectively, compared with the same periods of 2025. The increases were primarily due to the commencement of Idaho Power earning revenue under a large customer contract on June 1, 2026, the overall increase in Idaho base rates effective January 1, 2026, and an increase in usage per large contract customer.

Previous wording

In the second quarter and first six months of 2026, wholesale energy revenues decreased $11.8 million and $26.6 million, respectively, compared with the same periods of 2025, due primarily to a decrease in wholesale energy volumes sold, partially due to milder winter and spring 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."

Current wording

In the third quarter of 2026, wholesale energy revenues increased $6.4 million compared with the same period of 2025, due primarily to an increase in wholesale energy volumes sold and higher market prices. Wholesale energy revenues decreased $20.1 million in the first nine months of 2026, compared with the same period of 2025, as lower wholesale energy sales volumes were partially offset by higher market prices. 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

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 second quarters and first six months of 2026 and 2025, losses on financial gas hedges of $1.1 million and $0.5 million, and $27.6 million and $12.7 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 third quarters and first nine months of 2026 and 2025, losses on financial gas hedges of $6.2 million and $9.1 million, respectively, and $33.9 million and $21.9 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

The power supply accruals (deferrals) represent the portion of the power supply cost fluctuations accrued (deferred) under the power cost adjustment mechanisms. When actual power supply costs are lower than the amount forecasted in power cost adjustment rates, most of the difference is accrued as an increase to a regulatory liability or decrease to a regulatory asset. When actual power supply costs are higher than the amount forecasted in power cost adjustment rates, most of the difference is deferred as an increase to a regulatory asset or decrease to a regulatory liability. During the second quarter and first six months of 2026, lower purchased power and fuel costs led to lower actual power supply costs compared with the forecasted amount, which resulted in an accrual of power supply costs by the mechanism. The amortization of the prior year’s balances represents the offset to the amounts being collected or refunded in the current power cost adjustment year that were deferred or accrued in the prior PCA year (the balancing adjustment component of the power cost adjustment mechanism).

Current wording

The power supply accruals (deferrals) represent the portion of the power supply cost fluctuations accrued (deferred) under the power cost adjustment mechanisms. When actual power supply costs are lower than the amount forecasted in power cost adjustment rates, most of the difference is accrued as an increase to a regulatory liability or decrease to a regulatory asset. When actual power supply costs are higher than the amount forecasted in power cost adjustment rates, most of the difference is deferred as an increase to a regulatory asset or decrease to a regulatory liability. During the third quarter and first nine months of 2026, lower purchased power and fuel costs led to lower actual power supply costs compared with the forecasted amount, which resulted in an accrual of power supply costs by the mechanism. The amortization of the prior year’s balances represents the offset to the amounts being collected or refunded in the current power cost adjustment year that were deferred or accrued in the prior PCA year (the balancing adjustment component of the power cost adjustment mechanism).