10-Q 1 ida-20240331.htm 10-Q ida-20240331
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
 EXCHANGE ACT OF 1934
 For the quarterly period endedMarch 31, 2024
 OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
 EXCHANGE ACT OF 1934
 For the transition period from __________ to __________
 Exact name of registrants as specifiedI.R.S. Employer
Commission Filein their charters, address of principalIdentification
Numberexecutive offices, zip code and telephone numberNo.
1-14465IDACORP, Inc.82-0505802
1-3198Idaho Power Company82-0130980
 1221 W. Idaho Street
Boise,ID83702-5627
(208)388-2200
State of Incorporation:Idaho
None
Former name, former address and former fiscal year, if changed since last report.

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockIDANew York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. 
IDACORP, Inc.:YesNoIdaho Power Company:YesNo
Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). 
IDACORP, Inc.:YesNoIdaho Power Company:YesNo
Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies, or emerging growth companies. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
IDACORP, Inc.:
Idaho Power Company:
If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.
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IDACORP, Inc.:Idaho Power Company:
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).
IDACORP, Inc.:YesNoIdaho Power Company:YesNo
Number of shares of common stock outstanding as of April 26, 2024:
IDACORP, Inc.:50,694,665Idaho Power Company:39,150,812, all held by IDACORP, Inc.
This combined Form 10-Q represents separate filings by IDACORP, Inc. and Idaho Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Idaho Power Company makes no representations as to the information relating to IDACORP, Inc.’s other operations.
 
Idaho Power Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this report on Form 10-Q with the reduced disclosure format.
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TABLE OF CONTENTS
Page
Commonly Used Terms
Cautionary Note Regarding Forward-Looking Statements
Available Information
Part I. Financial Information 
  
 Item 1. Financial Statements (unaudited) 
  IDACORP, Inc.: 
   Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Comprehensive Income
   Condensed Consolidated Balance Sheets
   Condensed Consolidated Statements of Cash Flows
   Condensed Consolidated Statements of Equity
  Idaho Power Company: 
   Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Comprehensive Income
   Condensed Consolidated Balance Sheets
   Condensed Consolidated Statements of Cash Flows
  Notes to Condensed Consolidated Financial Statements
  Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP
 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Item 4. Controls and Procedures
     
Part II. Other Information 
   
 Item 1. Legal Proceedings
 Item 1A. Risk Factors
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
 Item 4. Mine Safety Disclosures
Item 5. Other Information
 Item 6. Exhibits
   
Signatures

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COMMONLY USED TERMS
The following select abbreviations, terms, or acronyms are commonly used or found in multiple locations in this report:
2023 Annual Report-IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended
December 31, 2023
IERCo-Idaho Energy Resources Co., a subsidiary of Idaho Power Company
2023 Settlement Stipulation-The settlement stipulation for Idaho Power's 2023 Idaho general rate caseIFS-IDACORP Financial Services, Inc., a subsidiary of IDACORP, Inc.
ADITC-Accumulated Deferred Investment Tax CreditsIPUC-Idaho Public Utilities Commission
AFUDC-Allowance for Funds Used During ConstructionIRP-Integrated Resource Plan
AOCI-Accumulated Other Comprehensive IncomeJim Bridger plant-Jim Bridger power plant
B2H-Boardman-to-Hemingway, a planned 300-mile, high-voltage transmission lines project between a substation near Boardman, Oregon, and the Hemingway substation near Boise, IdahoMD&A-Management’s Discussion and Analysis of Financial Condition and Results of Operations
BCC-Bridger Coal Company, a jointly-owned investment of IERCoMMBtu-Million British Thermal Units
CPCN-Certificate of Public Convenience and NecessityMoody's-Moody's Investors Service
CWA-Clean Water ActMW-Megawatt
EIS-Environmental Impact StatementMWh-Megawatt-hour
EPA-U.S. Environmental Protection AgencyNAV-Net asset value
ESA-Endangered Species ActNEPA-National Environmental Policy Act
Exchange Act-U.S. Securities Exchange Act of 1934, as amendedO&M-Operations and Maintenance
FCA-Idaho Fixed Cost AdjustmentOPUC-Public Utility Commission of Oregon
FERC-Federal Energy Regulatory CommissionPCA-Idaho-Jurisdiction Power Cost Adjustment
FSAs-Forward sale agreementsPURPA-Public Utility Regulatory Policies Act of 1978
GAAP-Accounting principles generally accepted in the United States of AmericaRFP-Request for proposals
GWW-Gateway West, a high-voltage transmission lines project between a substation located near Douglas, Wyoming, and the Hemingway substation located near Boise, IdahoSEC-U.S. Securities and Exchange Commission
HCC-Hells Canyon Complex, composed of the Brownlee, Oxbow, and Hells Canyon facilitiesSIP-
State Implementation Plan
IDACORP-IDACORP, Inc., an Idaho corporationSMSP-Security Plans for Senior Management Employees I and II
Idaho Power-Idaho Power Company, an Idaho corporationUSFWS-U.S. Fish and Wildlife Service
Idaho ROE-Idaho-jurisdiction return on year-end equityWMP-Wildfire Mitigation Plan
Ida-West-Ida-West Energy Company, a subsidiary of IDACORP, Inc.WPSC-Wyoming Public Service Commission
IDEQ-Idaho Department of Environmental Quality
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to the historical information contained in this report, this report contains (and oral communications made by IDACORP and Idaho Power may contain) statements that relate to future events and expectations, such as statements regarding projected or future financial performance, cash flows, capital expenditures, regulatory filings, dividends, capital structure or ratios, load forecasts, strategic goals, challenges, objectives, and plans for future operations. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events, or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "could," "estimates," "expects," "intends," "potential," "plans," "predicts," "preliminary," "projects," "targets," "may," "may result," "may continue," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance, involve estimates, assumptions, risks, and uncertainties, and may differ materially from actual results, performance, or outcomes. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements include those factors set forth in this report, the 2023 Annual Report, particularly Part I, Item 1A - "Risk Factors" and Part II, Item 7 - "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of that report, subsequent reports filed by IDACORP and Idaho Power with the SEC, and the following important factors:

decisions by the Idaho and Oregon public utilities commissions and the FERC that impact Idaho Power's ability to recover costs and earn a return on investment;
changes to or the elimination of Idaho Power's regulatory cost recovery mechanisms;
expenses and risks associated with capital expenditures for, and the permitting and construction of, utility infrastructure projects that Idaho Power may be unable to complete, are delayed, or that may not be deemed prudent by regulators for cost recovery or return on investment;
expenses and risks associated with supplier and contractor delays and failure to satisfy project quality and performance standards on utility infrastructure projects and the potential impacts of those delays and failures on Idaho Power's ability to serve customers;
power demand exceeding supply, and the rapid addition of new industrial and commercial customer load and the volatility of such new load demand, resulting in increased risks and costs for purchasing energy and capacity in the market or acquiring or constructing additional generation and transmission resources and battery storage facilities;
impacts of economic conditions, including an inflationary or recessionary environment and increasing interest rates, on items such as operations and capital investments, supply costs and delivery delays, supply scarcity and shortages, population growth or decline in Idaho Power's service area, changes in customer demand for electricity, revenue from sales of excess power, credit quality of counterparties and suppliers and their ability to meet financial and operational commitments, and collection of receivables;
changes in residential, commercial, and industrial growth and demographic patterns within Idaho Power's service area, and the associated impacts on loads and load growth;
employee workforce factors, including the operational and financial costs of unionization or the attempt to unionize all or part of the companies’ workforce, the cost and ability to attract and retain skilled workers and third-party contractors and suppliers, the cost of living and the related impact on recruiting employees, and the ability to adjust to fluctuations in labor costs;
changes in, failure to comply with, and costs of compliance with laws, regulations, policies, orders, and licenses, which may result in penalties and fines, increase compliance and operational costs, and impact recovery associated with increased costs through rates;
abnormal or severe weather conditions (including conditions and events associated with climate change), wildfires, droughts, earthquakes, and other natural phenomena and natural disasters, which affect customer sales, hydropower generation, repair costs, service interruptions, liability for damage caused by utility property, and the availability and cost of fuel for generation plants or purchased power to serve customers;
advancement of self-generation, energy storage, energy efficiency, alternative energy sources, and other technologies that may reduce Idaho Power's sale or delivery of electric power or introduce operational vulnerabilities to the power grid;
variable hydrological conditions and over-appropriation of surface and groundwater in the Snake River Basin, which may impact the amount of power generated by Idaho Power's hydropower facilities and power supply costs;
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ability to acquire equipment, materials, fuel, power, and transmission capacity on reasonable terms and prices, particularly in the event of unanticipated or abnormally high resource demands, price volatility, lack of physical availability, transportation constraints, outages due to maintenance or repairs to generation or transmission facilities, disruptions in the supply chain, or reduced credit quality or lack of counterparty and supplier credit;
disruptions or outages of Idaho Power's generation or transmission systems or of any interconnected transmission systems, which can result in liability for Idaho Power, increased power supply costs and repair expenses, and reduced revenues;
accidents, electrical contacts, fires (either affecting or caused by Idaho Power facilities or infrastructure), explosions, infrastructure failures, general system damage or dysfunction, and other unplanned events that may occur while operating and maintaining assets, which can cause unplanned outages; reduce generating output; damage company assets, operations, or reputation; subject Idaho Power to third-party claims for property damage, personal injury, or loss of life; or result in the imposition of fines and penalties;
acts or threats of terrorism, acts of war, social unrest, cyber or physical security attacks, and other malicious acts of individuals or groups seeking to disrupt Idaho Power's operations or the electric power grid or compromise data, or the disruption or damage to the companies’ business, operations, or reputation resulting from such events;
increased costs associated with purchases of power mandated by PURPA from renewable energy sources;
Idaho Power’s concentration in one industry and one region, and the resulting exposure to regional economic conditions and regional legislation and regulation;
unaligned goals and positions with co-owners of Idaho Power's generation and transmission assets;
changes in tax laws or related regulations or interpretations of applicable laws or regulations by federal, state, or local taxing jurisdictions, and the availability of tax credits;
inability to timely obtain and the cost of obtaining and complying with required governmental permits and approvals, licenses, rights-of-way, and siting for transmission and generation projects and hydropower facilities;
ability to obtain debt and equity financing or refinance existing debt when necessary and on satisfactory terms, which can be affected by factors such as credit ratings, reputational harm, volatility or disruptions in the financial markets, interest rates, decisions by the Idaho, Oregon, or Wyoming public utility commissions, and the companies' past or projected financial performance;
ability to enter into financial and physical commodity hedges with creditworthy counterparties to manage price and commodity risk for fuel, power, and transmission, and the failure of any such risk management and hedging strategies to work as intended, and the potential losses the companies may incur on those hedges, which can be affected by factors such as the volume of hedging transactions and degree of price volatility;
changes in actuarial assumptions, changes in interest rates, increasing health care costs, and the actual and projected return on plan assets for pension and other post-retirement plans, which can affect future pension and other postretirement plan funding obligations, costs, and liabilities and the companies' cash flows;
remediation costs associated with planned cessation of coal-fired operations at Idaho Power's co-owned coal plants and conversion of the plants to natural gas;
ability to continue to pay dividends and achieve target dividend payout ratios based on financial performance and capital requirements, and in light of credit rating considerations, contractual covenants and restrictions, and regulatory limitations;
adoption of or changes in accounting policies and principles, changes in accounting estimates, and new SEC or New York Stock Exchange requirements or new interpretations of existing requirements; and
changing market dynamics due to the emergence of day ahead or other energy and transmission markets in the western United States.

Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for the companies to predict all such factors, nor can they assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. IDACORP and Idaho Power disclaim any obligation to update publicly any forward-looking information, whether in response to new information, future events, or otherwise, except as required by applicable law.
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AVAILABLE INFORMATION
Investors and others should note that IDACORP and Idaho Power announce material information about their business through a variety of means, including filings with the SEC, press releases, public conference calls, and webcasts. The companies use these channels to achieve broad, non-exclusionary distribution of information to the public and for complying with their disclosure obligations under Regulation FD. Therefore, IDACORP and Idaho Power encourage investors, the media, and others interested in the companies to review the information the companies make available through such channels. IDACORP's website is www.idacorpinc.com and Idaho Power's website is www.idahopower.com. The contents of these websites are not part of this report.
Investors, the media, and others interested in IDACORP and Idaho Power may also wish to refer to the websites of the IPUC and OPUC at puc.idaho.gov and oregon.gov/puc, respectively, to review documents filed by IDACORP and Idaho Power with, and issued by, the respective commissions. No information on the IPUC and OPUC websites is incorporated by reference into this report or into IDACORP's or Idaho Power's other SEC filings.

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PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.
Condensed Consolidated Statements of Income
(unaudited)
Three months ended
March 31,
20242023
(in thousands, except per share amounts)
Operating Revenues:
Electric utility revenues$448,299 $429,338 
Other637 321 
Total operating revenues448,936 429,659 
Operating Expenses:
Electric utility:
Purchased power111,899 171,093 
Fuel expense92,241 89,080 
Power cost adjustment22,363 (51,337)
Other operations and maintenance105,829 92,041 
Energy efficiency programs4,291 5,215 
Depreciation54,013 45,391 
Other electric utility operating expenses8,008 9,028 
Total electric utility operating expenses398,644 360,511 
Other696 1,045 
Total operating expenses399,340 361,556 
Operating Income49,596 68,103 
Nonoperating (Income) Expense:
Allowance for equity funds used during construction(11,152)(9,908)
Earnings of unconsolidated equity-method investments(625)(2,454)
Interest on long-term debt33,308 24,968 
Other interest5,467 4,755 
Allowance for borrowed funds used during construction(5,959)(4,228)
Other income, net(14,165)(8,149)
Total nonoperating expense, net6,874 4,984 
Income Before Income Taxes42,722 63,119 
Income Tax (Benefit) Expense(5,546)7,095 
Net Income48,268 56,024 
Adjustment for (income) loss attributable to noncontrolling interests(95)74 
Net Income Attributable to IDACORP, Inc.$48,173 $56,098 
Weighted Average Common Shares Outstanding - Basic50,764 50,688 
Weighted Average Common Shares Outstanding - Diluted50,792 50,723 
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic$0.95 $1.11 
Earnings Attributable to IDACORP, Inc. - Diluted$0.95 $1.11 

The accompanying notes are an integral part of these statements.
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IDACORP, Inc.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
 
Three months ended
March 31,
 20242023
(in thousands)
Net Income$48,268 $56,024 
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax of $99 and $51, respectively
284 146 
Total Comprehensive Income48,552 56,170 
(Income) loss attributable to noncontrolling interests(95)74 
Comprehensive Income Attributable to IDACORP, Inc.$48,457 $56,244 

The accompanying notes are an integral part of these statements.
 
 
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IDACORP, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
 
March 31,
2024
December 31,
2023
(in thousands)
Assets
Current Assets:
Cash and cash equivalents$157,583 $327,429 
Receivables:
Customer (net of allowance of $4,628 and $4,869, respectively)
116,033 107,256 
Other (net of allowance of $621 and $716, respectively)
33,022 44,661 
Income taxes receivable11,077 24,574 
Accrued unbilled revenues81,852 90,521 
Materials and supplies (at average cost)156,317 140,515 
Fuel stock (at average cost)23,957 19,952 
Prepayments20,686 22,840 
Current regulatory assets179,727 226,235 
Other27 71 
Total current assets780,281 1,004,054 
Investments156,301 163,971 
Property, Plant and Equipment:
Utility plant in service7,351,549 7,291,532 
Accumulated provision for depreciation(2,613,507)(2,557,744)
Utility plant in service - net4,738,042 4,733,788 
Construction work in progress1,082,560 985,502 
Utility plant held for future use9,425 9,511 
Other property, net of accumulated depreciation16,306 16,429 
Property, plant and equipment - net5,846,333 5,745,230 
Other Assets:
Company-owned life insurance84,083 82,038 
Regulatory assets1,427,398 1,426,815 
Other53,015 53,810 
Total other assets1,564,496 1,562,663 
Total$8,347,411 $8,475,918 

The accompanying notes are an integral part of these statements.
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IDACORP, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
 
March 31,
2024
December 31,
2023
(in thousands)
Liabilities and Equity
Current Liabilities:
Current maturities of long-term debt$49,800 $49,800 
Accounts payable199,709 308,504 
Taxes accrued13,002 6,854 
Interest accrued32,069 38,292 
Accrued compensation44,378 64,645 
Current regulatory liabilities7,236 7,952 
Advances from customers105,611 104,297 
Other53,571 53,732 
Total current liabilities505,376 634,076 
Other Liabilities:
Deferred income taxes874,723 882,724 
Regulatory liabilities869,404 874,601 
Pension and other postretirement benefits238,681 233,965 
Other160,854 160,019 
Total other liabilities2,143,662 2,151,309 
Long-Term Debt2,775,959 2,775,790 
Commitments and Contingencies
Equity:
IDACORP, Inc. shareholders’ equity:
 Common stock, no par value (120,000 shares authorized; 50,694 and 50,615 shares issued and outstanding, respectively)
890,042 888,615 
Retained earnings2,042,003 2,036,138 
Accumulated other comprehensive loss(16,900)(17,184)
Total IDACORP, Inc. shareholders’ equity2,915,145 2,907,569 
Noncontrolling interests7,269 7,174 
Total equity2,922,414 2,914,743 
Total$8,347,411 $8,475,918 
The accompanying notes are an integral part of these statements.

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IDACORP, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three months ended
March 31,
 20242023
(in thousands)
Operating Activities:
Net income$48,268 $56,024 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:  
Depreciation and amortization55,174 46,409 
Deferred income taxes and investment tax credits(18,776)(7,854)
Changes in regulatory assets and liabilities32,930 (56,396)
Pension and postretirement benefit plan expense11,350 6,885 
Contributions to pension and postretirement benefit plans(1,176)(1,308)
Earnings of equity-method investments(625)(2,454)
Distributions from equity-method investments6,250 400 
Allowance for equity funds used during construction(11,152)(9,908)
Other non-cash adjustments to net income, net2,670 2,492 
Change in:  
Accounts receivable and unbilled revenues33,251 (10,750)
Prepayments1,796 4,363 
Materials, supplies, and fuel stock(19,807)(13,531)
Accounts and wages payable(62,201)(112,468)
Taxes accrued/receivable19,645 22,968 
Other assets and liabilities12,088 (15,271)
Net cash provided by (used in) operating activities109,685 (90,399)
Investing Activities:  
Additions to property, plant and equipment, net(259,978)(118,375)
Payments received from transmission project joint funding partners20,375 3,123 
Other4,940 6,096 
Net cash used in investing activities(234,663)(109,156)
Financing Activities:  
Issuance of long-term debt 522,000 
Discount on issuance of long-term debt (3,772)
Retirement of long-term debt (100,000)
Dividends on common stock(42,742)(40,502)
Issuance of common stock1,612  
Tax withholdings on net settlements of share-based awards(3,694)(3,255)
Other(44)5,330 
Net cash (used in) provided by financing activities(44,868)379,801 
Net (decrease) increase in cash and cash equivalents(169,846)180,246 
Cash and cash equivalents at beginning of the period327,429 177,577 
Cash and cash equivalents at end of the period$157,583 $357,823 
Supplemental Disclosure of Cash Flow Information:  
Cash paid during the period for:  
Interest (net of amount capitalized)$37,770 $27,276 
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable$111,958 $85,858 

The accompanying notes are an integral part of these statements.
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IDACORP, Inc.
Condensed Consolidated Statements of Equity
(unaudited)
 
Three months ended
March 31,
20242023
(in thousands)
Common Stock
Balance at beginning of period$888,615 $882,189 
Issuance1,612  
Share-based compensation expense3,474 3,137 
Tax withholdings on net settlements of share-based awards(3,694)(3,255)
Other35 33 
Balance at end of period890,042 882,104 
Retained Earnings
Balance at beginning of period2,036,138 1,937,972 
Net income attributable to IDACORP, Inc.48,173 56,098 
Common stock dividends ($0.83, and $0.79 per share, respectively)
(42,308)(40,343)
Balance at end of period2,042,003 1,953,727 
Accumulated Other Comprehensive Loss
Balance at beginning of period(17,184)(12,922)
Unfunded pension liability adjustment (net of tax)284 146 
Balance at end of period(16,900)(12,776)
Total IDACORP, Inc. shareholders’ equity at end of period2,915,145 2,823,055 
Noncontrolling Interests
Balance at beginning of period7,174 7,376 
Net income (loss) attributable to noncontrolling interests95 (74)
Balance at end of period7,269 7,302 
Total equity at end of period$2,922,414 $2,830,357 

The accompanying notes are an integral part of these statements.
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Idaho Power Company
Condensed Consolidated Statements of Income
(unaudited)
 
Three months ended
March 31,
 20242023
(in thousands)
Operating Revenues$448,299 $429,338 
Operating Expenses:
Operation:
Purchased power111,899 171,093 
Fuel expense92,241 89,080 
Power cost adjustment22,363 (51,337)
Other operations and maintenance105,829 92,041 
Energy efficiency programs4,291 5,215 
Depreciation54,013 45,391 
Other operating expenses8,008 9,028 
Total operating expenses398,644 360,511 
Operating Income49,655 68,827 
Nonoperating (Income) Expense:
Allowance for equity funds used during construction(11,152)(9,908)
Earnings of unconsolidated equity-method investments(617)(2,472)
Interest on long-term debt33,308 24,968 
Other interest5,384 4,674 
Allowance for borrowed funds used during construction(5,959)(4,228)
Other income, net(13,580)(7,527)
Total nonoperating expense, net7,384 5,507 
Income Before Income Taxes42,271 63,320 
Income Tax (Benefit) Expense(5,031)7,610 
Net Income$47,302 $55,710 

The accompanying notes are an integral part of these statements.
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Idaho Power Company
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
 
Three months ended
March 31,
 20242023
(in thousands)
Net Income$47,302 $55,710 
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax of $99, and $51, respectively
284 146 
Total Comprehensive Income$47,586 $55,856 

The accompanying notes are an integral part of these statements.
 
 

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Idaho Power Company
Condensed Consolidated Balance Sheets
(unaudited)
 
March 31,
2024
December 31,
2023
(in thousands)
Assets
Current Assets:
Cash and cash equivalents$102,505 $271,791 
Receivables:
Customer (net of allowance of $4,628 and $4,869, respectively)
116,033 107,256 
Other (net of allowance of $621 and $716, respectively)
32,583 44,335 
Income taxes receivable 22,926 
Accrued unbilled revenues81,852 90,521 
Materials and supplies (at average cost)156,317 140,515 
Fuel stock (at average cost)23,957 19,952 
Prepayments20,528 22,710 
Current regulatory assets179,727 226,235 
Other27 71 
Total current assets713,529 946,312 
Investments87,073 93,037 
Property, Plant and Equipment:
Plant in service7,351,549 7,291,532 
Accumulated provision for depreciation(2,613,507)(2,557,744)
Plant in service - net4,738,042 4,733,788 
Construction work in progress1,082,560 985,502 
Plant held for future use9,425 9,511 
Other property4,308 4,310 
Property, plant and equipment, net5,834,335 5,733,111 
Other Assets:
Company-owned life insurance84,083 82,038 
Regulatory assets1,427,398 1,426,815 
Other41,461 42,218 
Total other assets1,552,942 1,551,071 
Total$8,187,879 $8,323,531 


The accompanying notes are an integral part of these statements.
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Idaho Power Company
Condensed Consolidated Balance Sheets
(unaudited)
 
March 31,
2024
December 31,
2023
(in thousands, except par value)
Liabilities and Equity
Current Liabilities:
Current maturities of long-term debt$49,800 $49,800 
Accounts payable198,710 307,538 
Accounts payable to affiliates3,448 16,456 
Taxes accrued20,412 6,834 
Interest accrued32,069 38,292 
Accrued compensation44,222 64,408 
Current regulatory liabilities7,236 7,952 
Advances from customers105,611 104,297 
Other40,266 44,907 
Total current liabilities501,774 640,484 
Other Liabilities:
Deferred income taxes872,864 881,050 
Regulatory liabilities869,404 874,601 
Pension and other postretirement benefits238,681 233,965 
Other141,746 135,468 
Total other liabilities2,122,695 2,125,084 
Long-Term Debt2,775,959 2,775,790 
Commitments and Contingencies
Equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares issued and outstanding)
97,877 97,877 
Premium on capital stock712,258 712,258 
Capital stock expense(2,097)(2,097)
Retained earnings1,996,313 1,991,319 
Accumulated other comprehensive loss(16,900)(17,184)
Total equity2,787,451 2,782,173 
Total$8,187,879 $8,323,531 
The accompanying notes are an integral part of these statements.

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Idaho Power Company
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three months ended
March 31,
 20242023
 (in thousands)
Operating Activities:  
Net income$47,302 $55,710 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:   
Depreciation and amortization55,022 46,262 
Deferred income taxes and investment tax credits(20,610)(9,395)
Changes in regulatory assets and liabilities32,930 (56,396)
Pension and postretirement benefit plan expense11,350 6,885 
Contributions to pension and postretirement benefit plans(1,176)(1,308)
Earnings of equity-method investments(617)(2,472)
Distributions from equity-method investments6,250 400 
Allowance for equity funds used during construction(11,152)(9,908)
Other non-cash adjustments to net income, net(867)(644)
Change in:  
Accounts receivable and unbilled revenues34,428 (10,196)
Prepayments1,824 4,383 
Materials, supplies, and fuel stock(19,807)(13,531)
Accounts and wages payable(62,227)(112,502)
Taxes accrued/receivable22,392 24,664 
Other assets and liabilities12,247 (15,124)
Net cash provided by (used in) operating activities107,289 (93,172)
Investing Activities:  
Additions to utility plant, net(259,972)(118,375)
Payments received from transmission project joint funding partners20,375 3,123 
Other5,799 6,388 
Net cash used in investing activities(233,798)(108,864)
Financing Activities:  
Issuance of long-term debt 522,000 
Discount on issuance of long-term debt (3,772)
Retirement of long-term debt (100,000)
Dividends on common stock(42,777)(552)
Other 5,365 
Net cash (used in) provided by financing activities(42,777)423,041 
Net (decrease) increase in cash and cash equivalents(169,286)221,005 
Cash and cash equivalents at beginning of the period271,791 108,933 
Cash and cash equivalents at end of the period$102,505 $329,938 
Supplemental Disclosure of Cash Flow Information:  
Cash paid for interest (net of amount capitalized)$37,687 $27,195 
Non-cash investing activities:
Additions to utility plant in accounts payable$111,958 $85,858 

The accompanying notes are an integral part of these statements.
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IDACORP, INC. AND IDAHO POWER COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
This Quarterly Report on Form 10-Q is a combined report of IDACORP and Idaho Power. Therefore, these Notes to the Condensed Consolidated Financial Statements apply to both IDACORP and Idaho Power. However, Idaho Power makes no representation as to the information relating to IDACORP’s other operations.

Nature of Business
 
IDACORP is a holding company formed in 1998 whose principal operating subsidiary is Idaho Power. Idaho Power is an electric utility engaged in the generation, transmission, distribution, sale, and purchase of electric energy and capacity with a service area covering approximately 24,000 square miles in southern Idaho and eastern Oregon. Idaho Power is regulated primarily by the state utility regulatory commissions of Idaho and Oregon and the FERC. Idaho Power is the parent of IERCo, a joint-owner of BCC, which mines and supplies coal to the Jim Bridger plant owned in part by Idaho Power.
 
IDACORP’s other notable wholly-owned subsidiaries include IFS, an investor in affordable housing and other real estate tax credit investments, and Ida-West, an operator of small hydropower generation projects that satisfy the requirements of the PURPA.

Regulation of Utility Operations
 
As a regulated utility, many of Idaho Power's fundamental business decisions are subject to the approval of governmental agencies, including the prices that Idaho Power is authorized to charge for its electric service. These approvals are a critical factor in determining IDACORP's and Idaho Power's results of operations and financial condition.

IDACORP's and Idaho Power's financial statements reflect the effects of the different ratemaking principles followed by the jurisdictions regulating Idaho Power. The application of accounting principles related to regulated operations sometimes results in Idaho Power recording expenses and revenues in a different period than when an unregulated entity would record such expenses and revenues. In these instances, the amounts are deferred or accrued as regulatory assets or regulatory liabilities on the balance sheet. Regulatory assets represent incurred costs that have been deferred because it is probable they will be recovered from customers through future rates. Regulatory liabilities represent obligations to make refunds to customers for previous collections, or represent amounts collected in advance of incurring an expense. The effects of applying these regulatory accounting principles to Idaho Power's operations are discussed in more detail in Note 3 - "Regulatory Matters."

Financial Statements
 
In the opinion of management of IDACORP and Idaho Power, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly each company's condensed consolidated balance sheets as of March 31, 2024, condensed consolidated statements of income for the three months ended March 31, 2024 and 2023, and condensed consolidated cash flows for the three months ended March 31, 2024 and 2023. These adjustments are of a normal and recurring nature. These financial statements do not contain the complete detail or note disclosures concerning accounting policies and other matters that would be included in full-year financial statements and should be read in conjunction with the audited consolidated financial statements included in the 2023 Annual Report. The statements of income for the interim period are not necessarily indicative of the results to be expected for the full year. A change in management's estimates or assumptions could have a material impact on IDACORP's or Idaho Power's respective balance sheets and statements of income during the period in which such change occurred.
 
Management Estimates
 
Management makes estimates and assumptions when preparing financial statements in conformity with GAAP. These estimates and assumptions include, among others, those related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates involve judgments with respect to, among other things,
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future economic factors that are difficult to predict and are beyond management's control. Accordingly, actual results could differ from those estimates.

New and Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

There have been no recently adopted accounting pronouncements that have had a material impact on IDACORP's or Idaho Power's condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU will be applied retrospectively. IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on the notes to their respective financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU are required to be applied prospectively and are allowed to be applied retrospectively. IDACORP and Idaho Power are currently evaluating the impact that adoption of this ASU will have on the notes to their respective financial statements.

There have been no other recent accounting pronouncements not yet adopted that are expected to have a material impact on IDACORP's or Idaho Power's condensed consolidated financial statements.

2.  INCOME TAXES
 
In accordance with interim reporting requirements, IDACORP and Idaho Power use an estimated annual effective tax rate for computing their provisions for income taxes. An estimate of annual income tax expense (or benefit) is made each interim period using estimates for annual pre-tax income, income tax adjustments, and tax credits. The estimated annual effective tax rates do not include discrete events such as tax law changes, examination settlements, accounting method changes, or adjustments to tax expense or benefits attributable to prior years. Discrete events are recorded in the interim period in which they occur or become known. The estimated annual effective tax rate is applied to year-to-date pre-tax income to determine income tax expense (or benefit) for the interim period consistent with the annual estimate. In subsequent interim periods, income tax expense (or benefit) for the period is computed as the difference between the year-to-date amount reported for the previous interim period and the current period's year-to-date amount.

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Income Tax Expense

The following table provides a summary of income tax expense for the three months ended March 31, 2024 and 2023 (in thousands): 
 IDACORPIdaho Power
 2024202320242023
Income tax at statutory rates (federal and state)$10,972 $16,266 $10,880 $16,299 
Excess deferred income tax reversal(2,512)(2,671)(2,512)(2,671)
Other(1)
(1,506)(2,750)(899)(2,268)
Income tax expense before additional ADITC amortization$6,954 $10,845 $7,469 $11,360 
Additional ADITC amortization(12,500)(3,750)(12,500)(3,750)
Income tax (benefit) expense$(5,546)$7,095 $(5,031)$7,610 
Effective tax rate(13.0)%11.2 %(11.9)%12.0 %
(1) "Other" primarily consists of the net tax effect of Idaho Power's regulatory flow-through tax adjustments.

3. REGULATORY MATTERS
 
Included below is a summary of Idaho Power's most recent general rate cases and base rate changes, as well as other recent or pending notable regulatory matters and proceedings.

Idaho and Oregon General Rate Cases

Idaho Power's current base rates result from the IPUC and OPUC orders described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2023 Annual Report. In March 2024, Idaho Power provided notice to the IPUC of its intent to file a limited issue rate case in Idaho on or after May 31, 2024.

In December 2023, Idaho Power filed a general rate case with the OPUC. The filing was based on a 2024 test year and requested an overall annual rate increase of $10.7 million, or 19.28 percent. The filing requested, among other items, a 10.4 percent authorized rate of return on equity and an approximate $188.9 million Oregon-jurisdiction retail rate base. The $188.9 million of rate base excludes rate base associated with Idaho Power's jointly-owned North Valmy coal facilities, the costs of which are recovered under a separate rate mechanism. In its application, Idaho Power proposed a capitalization structure of 49 percent long-term debt and 51 percent common stock equity. Idaho Power included an average cost of debt of 5.104 percent and an overall cost of capital of 7.807 percent. Idaho Power has reached a settlement in principle for the general rate case with the OPUC staff and other stakeholders. The settlement is not final and remains subject to completion of the related settlement stipulation, as well as approval by the OPUC. As of the date of this report, Idaho Power is unable to predict the outcome of the general rate case. If approved by the OPUC, new rates for Oregon-jurisdiction customers would become effective in October 2024 or later.

Idaho ADITC and Revenue Sharing Mechanism

A May 2018 Idaho settlement stipulation related to tax reform (2018 Settlement Stipulation) and the 2023 Settlement Stipulation are each described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2023 Annual Report. The 2023 Settlement Stipulation modifies the 2018 Settlement Stipulation in part. The 2023 Settlement Stipulation includes provisions for the accelerated amortization of ADITC to help achieve a minimum 9.12 percent Idaho ROE. The settlement stipulations also provide for the potential sharing between Idaho Power and Idaho customers of Idaho-jurisdictional earnings in excess of a 9.6 percent Idaho ROE. In addition, the 2023 Settlement Stipulation included modifications to Idaho Power’s ADITC and revenue sharing mechanism beginning in 2024 to (1) include an additional amount of investment tax credits equal to the incremental investment tax credits generated from Idaho Power’s investment in 2023 battery storage projects; (2) remove the existing $25 million annual cap on the amount of accelerated amortization of ADITCs; and (3) implement all revenue sharing through the PCA rather than using a portion of revenue sharing to offset customer-funded pension obligations.

Based on its estimate of full-year 2024 Idaho ROE, in the first quarter of 2024, Idaho Power recorded $12.5 million in additional ADITC amortization under the 2023 Settlement Stipulation. Accordingly, at March 31, 2024, $73.5 million of additional ADITC remained available for future use. Idaho Power recorded $3.75 million of additional ADITC amortization during the first quarter of 2023, based on its then-current estimate of full-year 2023 Idaho ROE.
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Power Cost Adjustment Mechanisms

In both its Idaho and Oregon jurisdictions, Idaho Power's power cost adjustment mechanisms address the volatility of power supply costs and provide for annual adjustments to the rates charged to its retail customers. The power cost adjustment mechanisms compare Idaho Power's actual net power supply costs (primarily fuel and purchased power less wholesale energy sales) against net power supply costs being recovered in Idaho Power's retail rates. Under the power cost adjustment mechanisms, certain differences between actual net power supply costs incurred by Idaho Power and costs being recovered in retail rates are recorded as a deferred charge or credit on the balance sheet for future recovery or refund. The power supply costs deferred primarily result from changes in contracted power purchase prices and volumes, changes in wholesale market prices and transaction volumes, fuel prices, and the levels of Idaho Power's own generation.

In April 2024, Idaho Power and parties entered into a settlement stipulation for its annual power cost update (APCU) in Oregon. The APCU includes both an October update and a March forecast. Once approved by the OPUC, the results of the October update are reflected as an update to base rates and the results of the March forecast are reflected as an update to APCU rates. If approved, the proposed settlement will result in an overall rate decrease of $6.9 million effective June 1, 2024. As of the date of this report, the OPUC has not issued an order on the proposed settlement stipulation.

In April 2024, Idaho Power filed an application with the IPUC requesting a $35.7 million net decrease in PCA revenues, effective for the 2024-2025 PCA collection period from June 1, 2024, to May 31, 2025. The net decrease in PCA revenues reflects forecasted improved hydropower generation during the April 2024-March 2025 PCA deferral period. As of the date of this report, the IPUC has not yet issued an order on the company's requested rate decrease.

Idaho Fixed Cost Adjustment Mechanism

The FCA mechanism, applicable to Idaho residential and small commercial customers, is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by separating (or decoupling) the recovery of fixed costs from the variable kilowatt-hour charge and linking it instead to a set amount per customer. Under Idaho Power's current rate design, Idaho Power recovers a portion of fixed costs through the variable kilowatt-hour charge, which may result in over-collection or under-collection of fixed costs. To return over-collection to customers or to collect under-collection from customers, the FCA mechanism allows Idaho Power to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power during the year. The IPUC has discretion to cap the annual increase in the FCA recovery at 3 percent of base revenue, with any excess deferred for collection in a subsequent year. In March 2024, Idaho Power filed its annual FCA update with the IPUC, requesting approval to recover its 2023 FCA balance of $36.8 million, an $11.7 million increase over the 2022 FCA balance of $25.1 million, over the period from June 1, 2024, to May 31, 2025. As of the date of this report, the IPUC has not yet issued an order on the company's requested rate increase.

4. REVENUES
 
The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power for the three months ended March 31, 2024 and 2023 (in thousands):
Three months ended
March 31,
 20242023
Revenue from contracts with customers$417,897 $385,666 
Alternative revenue programs and other revenues30,402 43,672 
Total electric utility operating revenues$448,299 $429,338 

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Revenues from Contracts with Customers

The following table presents revenues from contracts with customers disaggregated by revenue source for the three months ended March 31, 2024 and 2023 (in thousands):
Three months ended
March 31,
 20242023
Retail revenues:
Residential (includes $(687) and $8,909, respectively, related to the FCA)(1)
$184,300 $188,536 
Commercial (includes $(53) and $276, respectively, related to the FCA)(1)
94,697 87,830 
Industrial65,206 55,544 
Irrigation1,038 933 
Deferred revenue related to HCC relicensing AFUDC(2)
(2,084)(2,119)
Total retail revenues343,157 330,724 
Less: FCA mechanism revenues(1)
740 (9,185)
Wholesale energy sales38,069 30,195 
Transmission wheeling-related revenues24,162 21,585 
Energy efficiency program revenues4,291 5,215 
Other revenues from contracts with customers7,478 7,132 
Total revenues from contracts with customers$417,897 $385,666 
(1) The FCA mechanism is an alternative revenue program in the Idaho jurisdiction and does not represent revenue from contracts with customers.
(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 electric plant in service. Idaho Power is collecting $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.

Alternative Revenue Programs and Other Revenues

While revenues from contracts with customers make up most of Idaho Power’s revenues, the IPUC has authorized the use of an additional regulatory mechanism, the FCA mechanism, which may increase or decrease tariff-based customer rates. The FCA mechanism is described in Note 3 - "Regulatory Matters." The FCA mechanism revenues include only the initial recognition of FCA revenues when they meet the regulator-specified conditions for recognition. Revenue from contracts with customers excludes the portion of the tariff price representing FCA revenues that Idaho Power initially recorded in prior periods when revenues met regulator-specified conditions. When Idaho Power includes those amounts in the price of utility service and billed to customers, Idaho Power records such amounts as recovery of the associated regulatory asset or liability and not as revenues.

Derivative revenues include gains from settled electricity swaps and sales of electricity under forward sales contracts that are bundled with renewable energy credits. For each forward sale, Idaho Power simultaneously enters into a matching forward purchase of electricity for the same quantity at the same location, which are recorded in purchased power on the condensed consolidated statements of income. For more information on settled electricity swaps, see Note 11 - "Derivative Financial Instruments."

The table below presents the FCA mechanism revenues and other revenues for the three months ended March 31, 2024 and 2023 (in thousands):
Three months ended
March 31,
 20242023
FCA mechanism revenues$(740)9,185 
Derivative revenues31,142 34,487 
Total alternative revenue programs and other revenues$30,402 $43,672 

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Receivables and Allowance for Uncollectible Accounts

The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables for the three months ended March 31, 2024 and 2023 (in thousands):
Three months ended
March 31,
 20242023
Balance at beginning of period$4,869 $5,034 
Additions to the allowance267 577 
Write-offs, net of recoveries(508)(549)
Balance at end of period$4,628 $5,062 
Allowance for uncollectible accounts as a percentage of customer receivables3.8 %4.8 %

5. LONG-TERM DEBT

Idaho Power First Mortgage Bonds

Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC. In February and March 2024, Idaho Power received orders from the IPUC, OPUC, and WPSC authorizing the company to issue and sell from time to time up to $1.2 billion in aggregate principal amount of debt securities and first mortgage bonds, subject to conditions specified in the orders. Authority from the IPUC is effective through December 31, 2026, subject to extensions upon request to the IPUC. The OPUC's and WPSC's orders do not impose a time limitation for issuances, but the OPUC order does impose a number of other conditions, including a requirement that the interest rates for the debt securities or first mortgage bonds fall within either (a) designated spreads over comparable U.S. Treasury rates or (b) a maximum interest rate limit of 8 percent. At March 31, 2024, $1.2 billion remains available for debt issuance under the regulatory orders.

6. COMMON STOCK
 
IDACORP Common Stock

During the three months ended March 31, 2024, IDACORP issued an aggregate of 78,925 shares of common stock using original issuances of shares. IDACORP granted 103,771 restricted stock unit awards to employees and issued 60,856 shares of common stock pursuant to the IDACORP, Inc. 2000 Long-Term Incentive and Compensation Plan, including 10,571 shares of common stock issued to members of the board of directors. IDACORP issued 18,069 shares of common stock pursuant to its IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan.

Effective January 1, 2024, IDACORP instructed the plan administrator of the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan to use original issuance of common stock from IDACORP, as opposed to market purchases of IDACORP common stock, to acquire shares of IDACORP common stock for the plan. However, IDACORP may determine at any time to resume market purchases of common stock under the plan. As directed by IDACORP, the plan administrator of the Idaho Power Company Employee Savings Plan used market purchases of IDACORP common stock to acquire shares of IDACORP common stock for the plan.

Equity Forward Sale Agreements

On November 7, 2023, IDACORP announced a registered public offering of 2,801,724 shares of its common stock at a public offering price of $92.80 per share, for an aggregate amount of $260.0 million. In conjunction with this offering, IDACORP granted the underwriters an option to purchase up to 420,258 additional shares, which was subsequently exercised in full on November 8, 2023, for an additional aggregate amount of $39.0 million. The 3,221,982 shares were sold by IDACORP to the underwriters under FSAs which provide for settlement on a settlement date or dates to be specified at IDACORP’s discretion, but which is expected to occur on or prior to November 7, 2024.

The FSAs will be physically settled with common shares issued by IDACORP, unless IDACORP elects to settle the agreements in net cash or net shares, subject to certain conditions. On a settlement date or dates, if IDACORP elects to physically settle the FSAs, IDACORP will issue shares of common stock to the forward purchaser at the then-applicable forward sale price and receive issuance proceeds at that time. The forward sale price was initially $90.016 per share and is subject to certain adjustments in accordance with the terms of the FSAs through the date of settlement.
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At March 31, 2024, IDACORP could have settled the FSAs with physical delivery of 3,221,982 shares of common stock to the counterparty in exchange for cash of $292.5 million. The FSAs could have also been settled at March 31, 2024, with delivery of approximately $1.9 million of cash or approximately 21,000 shares of common stock to the counterparty, if IDACORP had elected to net cash or net share settle, respectively. The FSAs have been classified as an equity transaction because they are indexed to IDACORP’s common stock and the other requirements necessary for equity classification are met. As a result of the equity classification, no gain or loss will be recognized within earnings due to subsequent changes in the fair value of the FSAs.

Prior to settlement, the potentially issuable shares pursuant to the FSAs will be reflected in IDACORP’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of IDACORP’s common stock used in calculating diluted earnings per share for a reporting period would be increased by the number of shares, if any, that would be issued upon physical settlement of the FSAs, less the number of shares that could be purchased by IDACORP in the market with the proceeds received from issuance (based on the average market price during that reporting period). Share dilution occurs when the average market price of IDACORP’s stock during the reporting period is higher than the then-applicable forward sale price as of the end of the reporting period. As of March 31, 2024, approximately 28,000 incremental shares were included in the calculation of diluted earnings per share related to the securities under the FSAs. See Note 7 - "Earnings Per Share" for additional information concerning IDACORP's diluted earnings per share.

Restrictions on Dividends
 
Idaho Power’s ability to pay dividends on its common stock held by IDACORP and IDACORP’s ability to pay dividends on its common stock are limited to the extent payment of such dividends would violate the covenants in their respective credit facilities or Idaho Power’s Code of Business Conduct. A covenant under IDACORP’s credit facility and Idaho Power’s credit facility requires IDACORP and Idaho Power to maintain leverage ratios of consolidated indebtedness to consolidated total capitalization, as defined therein, of no more than 65 percent at the end of each fiscal quarter. At March 31, 2024, the leverage ratios for IDACORP and Idaho Power were 49 percent and 50 percent, respectively. Based on these restrictions, IDACORP’s and Idaho Power’s dividends were limited to $1.4 billion and $1.3 billion, respectively, at March 31, 2024. There are additional facility covenants, subject to exceptions, that prohibit or restrict the sale or disposition of property without consent and any agreements restricting dividend payments to IDACORP and Idaho Power from any material subsidiary. At March 31, 2024, IDACORP and Idaho Power were in compliance with those covenants.
 
Idaho Power’s Statement of Policy and Code of Conduct relating to transactions between and among Idaho Power, IDACORP, and other affiliates, which was approved by the IPUC in April 2008, provides that Idaho Power will not pay any dividends to IDACORP that will reduce Idaho Power’s common equity capital below 35 percent of its total adjusted capital without IPUC approval. At March 31, 2024, Idaho Power's common equity capital was 50 percent of its total adjusted capital. Further, Idaho Power must obtain approval from the OPUC before it can directly or indirectly loan funds or issue notes or give credit on its books to IDACORP.
 
Idaho Power’s articles of incorporation contain restrictions on the payment of dividends on its common stock if preferred stock dividends are in arrears. As of the date of this report, Idaho Power has no preferred stock outstanding.

In addition to contractual restrictions on the amount and payment of dividends, the Federal Power Act prohibits the payment of dividends from "capital accounts." The term "capital account" is undefined in the Federal Power Act or its regulations, but Idaho Power does not believe the restriction would limit Idaho Power's ability to pay dividends out of current year earnings or retained earnings.
 
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7. EARNINGS PER SHARE

The table below presents the computation of IDACORP’s basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 (in thousands, except for per share amounts).
Three months ended
March 31,
 20242023
Numerator:  
Net income attributable to IDACORP, Inc.$48,173 $56,098 
Denominator:  
Weighted-average common shares outstanding - basic50,764 50,688 
Effect of dilutive securities(1)
28 35 
Weighted-average common shares outstanding - diluted50,792 50,723 
Basic earnings per share$0.95 $1.11 
Diluted earnings per share$0.95 $1.11 
(1) The effect of dilutive securities amount includes approximately 28 thousand incremental shares related to FSAs as of March 31, 2024. See Note 6 - "Common Stock" for additional information concerning IDACORP's FSAs.

8. COMMITMENTS
 
Purchase Obligations
 
During the three months ended March 31, 2024, Idaho Power entered into:

two agreements in January and February 2024 to replace expiring PURPA-qualifying hydropower facility power purchase agreements, which increased Idaho Power's contractual purchase obligations by approximately $38.0 million over the 20-year term of the agreements; and
an energy and capacity market purchase agreement with an energy marketer for the right to acquire 200 MW on a daily basis during summer months, subject to regulatory approval, which increased Idaho Power's contractual purchase obligations by approximately $84.3 million over the 5-year term of the contract commencing in June 2026.

Except as disclosed in this Note 8, during the three months ended March 31, 2024, IDACORP's and Idaho Power's contractual obligations, outside the ordinary course of business, did not change materially from the amounts disclosed in the notes to the consolidated financial statements in the 2023 Annual Report.

Guarantees
 
Idaho Power guarantees its portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest. This guarantee, which is renewed annually with the Wyoming Department of Environmental Quality (WDEQ), was $47.6 million at March 31, 2024, representing IERCo's one-third share of BCC's total reclamation obligation of $142.9 million. BCC has a reclamation trust fund set aside specifically for the purpose of paying these reclamation costs. At March 31, 2024, the value of BCC's reclamation trust fund exceeded WDEQ's guarantee requirement for the total reclamation obligation. BCC periodically assesses the adequacy of the reclamation trust fund and its estimate of future reclamation costs. To ensure that the reclamation trust fund maintains adequate reserves, BCC has the ability to, and does, add a per-ton surcharge to coal sales, all of which are made to the Jim Bridger plant. Because of the existence of the fund and the ability to apply a per-ton surcharge, the estimated fair value of this guarantee is minimal.
 
IDACORP and Idaho Power enter into financial agreements and power purchase and sale agreements that include indemnification provisions relating to various forms of claims or liabilities that may arise from the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated. IDACORP and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities. As of March 31, 2024, management believe the likelihood is remote that IDACORP or Idaho Power would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnification obligations. Neither IDACORP nor Idaho Power has recorded any liability on their respective condensed consolidated balance sheets with respect to these indemnification obligations.
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9. CONTINGENCIES
 
IDACORP and Idaho Power have in the past and expect in the future to become involved in various claims, controversies, disputes, and other contingent matters, some of which involve litigation and regulatory or other contested proceedings. The ultimate resolution and outcome of litigation and regulatory proceedings is inherently difficult to determine, particularly where (a) the remedies or penalties sought are indeterminate, (b) the proceedings are in the early stages or the substantive issues have not been well developed, or (c) the matters involve complex or novel legal theories or a large number of parties. In accordance with applicable accounting guidance, IDACORP and Idaho Power, as applicable, establish an accrual for legal proceedings when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. If the loss contingency at issue is not both probable and reasonably estimable, IDACORP and Idaho Power do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. As of the date of this report, IDACORP's and Idaho Power's accruals for loss contingencies are not material to their financial statements as a whole; however, future accruals could be material in a given period. IDACORP's and Idaho Power's determination is based on currently available information, and estimates presented in financial statements and other financial disclosures involve significant judgment and may be subject to significant uncertainty. For matters that affect Idaho Power's operations, Idaho Power intends to seek, to the extent permissible and appropriate, recovery through the ratemaking process of costs incurred, although there is no assurance that such recovery would be granted.

IDACORP and Idaho Power are parties to legal claims and legal, tax, and regulatory actions and proceedings in the ordinary course of business and, as noted above, record an accrual for associated loss contingencies when they are probable and reasonably estimable. In connection with its utility operations, Idaho Power is subject to claims by individuals, entities, and governmental agencies for damages for alleged personal injury, property damage, and economic losses, relating to the company’s provision of electric service and the operation of its power supply, transmission, and distribution facilities. Some of those claims relate to electrical contacts, service quality, property damage, and wildfires. In recent years, utilities in the western United States have been subject to significant liability for personal injury, loss of life, property damage, trespass, and economic losses, and in some cases, punitive damages and criminal charges, associated with wildfires that originated from utility property, most commonly transmission and distribution lines. Idaho Power has also regularly received claims by governmental agencies and private landowners for damages for fires allegedly originating from Idaho Power’s transmission and distribution system. As of the date of this report, the companies believe that resolution of existing claims will not have a material adverse effect on their respective condensed consolidated financial statements.

Idaho Power actively monitors any pending or potential environmental regulations and executive orders related to environmental matters that may have a significant impact on its future operations. Given uncertainties regarding the outcome, timing, and compliance plans for these environmental matters, Idaho Power is unable to estimate the financial impact of any such regulations and orders.

10. BENEFIT PLANS

Idaho Power has a noncontributory defined benefit pension plan (pension plan) and two nonqualified defined benefit plans for certain senior management employees, the SMSP. Idaho Power also has a nonqualified defined benefit pension plan for directors that was frozen in 2002. Remaining vested benefits from that plan are included with the SMSP in the disclosures below. The benefits under the pension plan are based on years of service and the employee’s final average earnings. Idaho Power also maintains a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers all employees who were enrolled in the active-employee group plan at the time of retirement as well as their spouses and
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qualifying dependents. The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the three months ended March 31, 2024 and 2023 (in thousands).
Pension PlanSMSPPostretirement
Benefits
Total
 20242023202420232024202320242023
Service cost$8,184 $8,078 $263 $153 $164 $178 $8,611 $8,409 
Interest cost12,793 12,654 1,333 1,331 691 773 14,817 14,758 
Expected return on plan assets(16,830)(15,434)  (455)(419)(17,285)(15,853)
Amortization of prior service cost62 2 55 55 387 416 504 473 
Amortization of net loss  328 142 (395)(272)(67)(130)
Net periodic benefit cost4,209 5,300 1,979 1,681 392 676 6,580 7,657 
Regulatory deferral of net periodic benefit cost(1)
(4,026)(5,060)— — — — (4,026)(5,060)
Previously deferred pension costs recognized(1)
8,796 4,288 — — — — 8,796 4,288 
Net periodic benefit cost recognized for financial reporting(1)(2)
$8,979 $4,528 $1,979 $1,681 $392 $676 $11,350 $6,885 
 (1) Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, the Idaho portion of net periodic benefit cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.
 (2) Of total net periodic benefit cost recognized for financial reporting, $9.4 million and $5.3 million, respectively, were recognized in "Other operations and maintenance" and $2.0 million and $1.6 million, respectively, were recognized in "Other income, net" on the condensed consolidated statements of income of the companies for the three months ended March 31, 2024 and 2023.
Idaho Power has no minimum contribution requirement to its defined benefit pension plan in 2024, and during the three months ended March 31, 2024, Idaho Power made no contributions. Idaho Power is considering contributing up to $30 million to its defined benefit pension plan during 2024 in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions, as well as to mitigate the cost of being in an underfunded position. The primary impact of pension contributions is on the timing of cash flows, as the timing of cost recovery lags behind contributions.

Idaho Power also has an Employee Savings Plan that complies with Section 401(k) of the Internal Revenue Code and covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the Employee Savings Plan.

11. DERIVATIVE FINANCIAL INSTRUMENTS
 
Commodity Price Risk
 
Idaho Power is exposed to market risk relating to electricity, natural gas, and other fuel commodity prices, all of which are heavily influenced by supply and demand. Market risk may be influenced by market participants’ nonperformance of their contractual obligations and commitments, which affects the supply of or demand for the commodity. Idaho Power uses derivative instruments, such as physical and financial forward contracts, for both electricity and fuel to manage the risks relating to these commodity price exposures. The primary objectives of Idaho Power’s energy purchase and sale activity are to meet the demand of retail electric customers, maintain appropriate physical reserves to ensure reliability, and make economic use of temporary surpluses that may develop.
 
All of Idaho Power's derivative instruments have been entered into for the purpose of securing energy resources for future periods or economically hedging forecasted purchases and sales, though none of these instruments have been designated as cash flow hedges. Idaho Power offsets fair value amounts recognized on its balance sheet and applies collateral related to derivative instruments executed with the same counterparty under the same master netting agreement. Idaho Power does not offset a counterparty's current derivative contracts with the counterparty's long-term derivative contracts, although Idaho Power's master netting arrangements would allow current and long-term positions to be offset in the event of default. Also, in the event of default, Idaho Power's master netting arrangements would allow for the offsetting of all transactions executed under the master netting arrangement. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit). These types of transactions are excluded from the offsetting presented in the derivative fair value and offsetting table that follows.

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The table below presents the gains and losses on derivatives not designated as hedging instruments for the three months ended March 31, 2024 and 2023 (in thousands):
Gain/(Loss) on Derivatives Recognized in Income(1)
Location of Realized Gain/(Loss) on Derivatives Recognized in IncomeThree months ended
March 31,
20242023
Financial swapsOperating revenues$1,012 $(1,079)
Financial swapsPurchased power953 1,626 
Financial swapsFuel expense(24,058)23,537 
Forward contractsOperating revenues1,006 636 
Forward contractsPurchased power(991)(600)
Forward contractsFuel expense(221)(420)
(1) Excludes unrealized gains or losses on derivatives, which are recorded on the balance sheet as regulatory assets or regulatory liabilities.

Settlement gains and losses on electricity swap contracts are recorded on the income statement in operating revenues or purchased power depending on the forecasted position being economically hedged by the derivative contract. Settlement gains and losses on contracts for natural gas are reflected in fuel expense. Settlement gains and losses on diesel derivatives are recorded in other O&M expense. See Note 12 - "Fair Value Measurements" for additional information concerning the determination of fair value for Idaho Power’s assets and liabilities from price risk management activities.

Credit Risk
 
At March 31, 2024, Idaho Power did not have material credit risk exposure from financial instruments, including derivatives. Idaho Power monitors credit risk exposure through reviews of counterparty credit quality, corporate-wide counterparty credit exposure, and corporate-wide counterparty concentration levels. Idaho Power manages these risks by establishing credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Idaho Power’s physical power contracts are commonly under WSPP, Inc. agreements, physical gas contracts are usually under North American Energy Standards Board contracts, and financial transactions are usually under International Swaps and Derivatives Association, Inc. contracts. These contracts typically contain adequate assurance clauses requiring collateralization if a counterparty has debt that is downgraded below investment grade by at least one rating agency.

Credit-Contingent Features
 
Certain of Idaho Power's derivative instruments contain provisions that require Idaho Power's unsecured debt to maintain an investment grade credit rating from Moody's and Standard & Poor's Ratings Services. If Idaho Power's unsecured debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at March 31, 2024, was $26.4 million. As of March 31, 2024, Idaho Power posted $27.1 million of cash collateral related to its derivative instruments. If the credit-risk-related contingent features underlying these agreements were triggered on March 31, 2024, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional $6.1 million to cover open liability positions as well as completed transactions that have not yet been paid.

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Derivative Instrument Summary

The table below presents the fair values and locations of derivative instruments not designated as hedging instruments recorded on the balance sheets and reconciles the gross amounts of derivatives recognized as assets and as liabilities to the net amounts presented in the balance sheets at March 31, 2024, and December 31, 2023 (in thousands):

Asset DerivativesLiability Derivatives
 Balance Sheet LocationGross Fair ValueAmounts OffsetNet AssetsGross Fair ValueAmounts OffsetNet Liabilities
March 31, 2024
Current:    
Financial swapsOther current assets$215 $(188)$27 $188 $(188)$ 
Financial swapsOther current liabilities2,675 (2,675) 23,494 (20,859)
(1)
2,635 
Forward contractsOther current liabilities   1,886  1,886 
Long-term:  
Financial swapsOther assets91 (1)90 1 (1) 
Financial swapsOther liabilities612 (612) 727 (727)
(2)
 
Total $3,593 $(3,476)$