IDACORP INC [IDA] Filings

10-Q 1 ida-20230930.htm 10-Q ida-20230930

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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 ended

September 30, 2023

☐

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 specified

I.R.S. Employer

Commission File

in their charters, address of principal

Identification

Number

executive offices, zip code and telephone number

Number

1-14465

IDACORP, Inc.

82-0505802

1-3198

Idaho Power Company

82-0130980


1221 W. Idaho Street
Boise,		Idaho		83702-5627
	(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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	IDA	New 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.: Yes ☒ No ☐ Idaho Power Company: Yes ☒ No ☐

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.: Yes ☒ No ☐ Idaho Power Company: Yes ☒ No ☐

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:

IDACORP, Inc.:

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has 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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Idaho Power Company:

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated Filer ☒ Smaller reporting company ☐

Emerging growth company ☐

Act. ☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

IDACORP, Inc.: Yes ☐ No ☒ Idaho Power Company: Yes ☐ No ☒

Number of shares of common stock outstanding as of October 27, 2023:

IDACORP, Inc.: 50,615,237

Idaho 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				4
Cautionary Note Regarding Forward-Looking Statements				5

Part I. Financial Information

	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Condensed Consolidated Statements of Income	7
			Condensed Consolidated Statements of Comprehensive Income	8
			Condensed Consolidated Balance Sheets	9
			Condensed Consolidated Statements of Cash Flows	11
			Condensed Consolidated Statements of Equity	12
		Idaho Power Company:
			Condensed Consolidated Statements of Income	13
			Condensed Consolidated Statements of Comprehensive Income	14
			Condensed Consolidated Balance Sheets	15
			Condensed Consolidated Statements of Cash Flows	17
		Notes to Condensed Consolidated Financial Statements		18
		Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP		35
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			37
	Item 3. Quantitative and Qualitative Disclosures About Market Risk			64
	Item 4. Controls and Procedures			65

Part II. Other Information

	Item 1. Legal Proceedings			66
	Item 1A. Risk Factors			66
	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities			66
	Item 3. Defaults Upon Senior Securities			66
	Item 4. Mine Safety Disclosures			66
	Item 5. Other Information			66
	Item 6. Exhibits			67

Signatures				68

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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:

2022 Annual Report	-	IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, 2022
ADITC	-	Accumulated Deferred Investment Tax Credits
AFUDC	-	Allowance for Funds Used During Construction
AOCI	-	Accumulated Other Comprehensive Income
BCC	-	Bridger Coal Company, a joint venture of IERCo
BPA	-	Bonneville Power Administration
CPCN	-	Certificate of Public Convenience and Necessity
CWA	-	Clean Water Act
EFSC	-	Energy Facility Siting Council
EIS	-	Environmental Impact Statement
EPA	-	U.S. Environmental Protection Agency
ESA	-	Endangered Species Act
FCA	-	Fixed Cost Adjustment
FERC	-	Federal Energy Regulatory Commission
HCC	-	Hells Canyon Complex
IDACORP	-	IDACORP, Inc., an Idaho corporation
Idaho Power	-	Idaho Power Company, an Idaho corporation
Idaho ROE	-	Idaho-jurisdiction return on year-end equity
Ida-West	-	Ida-West Energy Company, a subsidiary of IDACORP, Inc.
IDEQ	-	Idaho Department of Environmental Quality
IERCo	-	Idaho Energy Resources Co., a subsidiary of Idaho Power Company
IFS	-	IDACORP Financial Services, Inc., a subsidiary of IDACORP, Inc.
IPUC	-	Idaho Public Utilities Commission
IRP	-	Integrated Resource Plan
Jim Bridger plant	-	Jim Bridger power plant
kWh	-	Kilowatt-hour
MD&A	-	Management’s Discussion and Analysis of Financial Condition and Results of Operations
MW	-	Megawatt
MWh	-	Megawatt-hour
NAV	-	Net asset value
NMFS	-	National Marine Fisheries Service
O&M	-	Operations and Maintenance
OATT	-	Open Access Transmission Tariff
OPUC	-	Public Utility Commission of Oregon
PCA	-	Idaho-Jurisdiction Power Cost Adjustment
PCAOB	-	Public Company Accounting Oversight Board (United States)
PURPA	-	Public Utility Regulatory Policies Act of 1978
RFP	-	Request for Proposals
SEC	-	U.S. Securities and Exchange Commission
SIP	-	State Implementation Plan
SMSP	-	Security Plan for Senior Management Employees I and Security Plan for Senior Management Employees II, together
USFWS	-	U.S. Fish and Wildlife Service
Valmy plant	-	Idaho Power's jointly-owned coal-fired generating plant in Valmy, Nevada
WMP	-	Wildfire Mitigation Plan
WOTUS	-	Waters of the United States

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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, 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 2022 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 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 costs for purchasing energy and capacity in the market, if available, 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, and orders including those relating to reliability and security, the environment, climate change, natural resources, and threatened and endangered species, and associated mitigation requirements, 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;

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•ability to acquire fuel, power, equipment, 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 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, increase power supply costs and repair expenses, and reduce 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 terrorist incidents, 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 purchased power costs and operational and reliability challenges associated with purchasing and integrating intermittent renewable energy sources into Idaho Power's resource portfolio;

•Idaho Power’s concentration in one industry and one region, and the resulting exposure to regional economic conditions and regional legislation and regulation;

•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 rate fluctuations, decisions by the Idaho or Oregon 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 exits from participation in Idaho Power's co-owned coal plants;

•ability to continue to pay dividends and achieve target dividend payout ratios based on financial performance, capital requirements, contractual covenants and restrictions, and regulatory limitations, and in light of credit rating considerations; and

•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.

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 management to predict all such factors, nor can it 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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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.

Condensed Consolidated Statements of Income

(unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(in thousands, except per share amounts)				(in thousands, except per share amounts)
Operating Revenues:
Electric utility revenues	$	509,635	$	517,101	$	1,351,700	$	1,218,690
Other	1,271		911		2,703		2,333
Total operating revenues	510,906		518,012		1,354,403		1,221,023

Operating Expenses:
Electric utility:
Purchased power	142,851		192,884		405,404		370,035
Fuel expense	71,723		63,631		191,917		143,750
Power cost adjustment	5,899		(30,806)		4,191		(31,631)
Other operations and maintenance	95,824		100,679		284,988		293,322
Energy efficiency programs	10,498		8,292		22,265		21,490
Depreciation	50,832		45,951		143,331		125,238
Other electric utility operating expenses	6,297		8,780		23,169		26,544
Total electric utility operating expenses	383,924		389,411		1,075,265		948,748
Other	694		377		2,453		1,877
Total operating expenses	384,618		389,788		1,077,718		950,625

Operating Income	126,288		128,224		276,685		270,398

Nonoperating (Income) Expense:
Allowance for equity funds used during construction	(11,044)		(9,461)		(32,125)		(27,872)
Earnings of unconsolidated equity-method investments	(4,195)		(4,098)		(9,387)		(8,694)
Interest on long-term debt	29,361		22,093		82,908		64,536
Other interest	5,572		4,188		14,935		11,864
Allowance for borrowed funds used during construction	(4,903)		(3,534)		(14,291)		(10,399)
Other income, net	(7,924)		(3,042)		(24,890)		(6,206)
Total nonoperating expense, net	6,867		6,146		17,150		23,229

Income Before Income Taxes	119,421		122,078		259,535		247,169

Income Tax Expense	13,774		15,450		29,000		29,768

Net Income	105,647		106,628		230,535		217,401
Income attributable to noncontrolling interests	(383)		(248)		(599)		(473)
Net Income Attributable to IDACORP, Inc.	$	105,264	$	106,380	$	229,936	$	216,928

Weighted Average Common Shares Outstanding - Basic	50,726		50,668		50,713		50,656
Weighted Average Common Shares Outstanding - Diluted	50,805		50,722		50,762		50,689
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic	$	2.08	$	2.10	$	4.53	$	4.28
Earnings Attributable to IDACORP, Inc. - Diluted	$	2.07	$	2.10	$	4.53	$	4.28

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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)

Net Income	$	105,647	$	106,628	$	230,535	$	217,401
Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $51, $290, $153, and $870, respectively	146		837		439		2,511
Total Comprehensive Income	105,793		107,465		230,974		219,912
Income attributable to noncontrolling interests	(383)		(248)		(599)		(473)
Comprehensive Income Attributable to IDACORP, Inc.	$	105,410	$	107,217	$	230,375	$	219,439

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	September 30, 2023		December 31, 2022
	(in thousands)
Assets

Current Assets:
Cash and cash equivalents	$	445,489	$	177,577

Receivables:
Customer (net of allowance of $4,135 and $5,034, respectively)	135,021		114,173
Other (net of allowance of $587 and $512, respectively)	36,151		51,179
Income taxes receivable	—		13,734
Accrued unbilled revenues	81,533		84,862
Materials and supplies (at average cost)	131,616		92,461
Fuel stock (at average cost)	20,950		14,762
Prepayments	23,078		24,517
Current regulatory assets	163,818		80,049
Other	496		40,339
Total current assets	1,038,152		693,653
Investments	157,513		121,352
Property, Plant and Equipment:
Utility plant in service	7,148,293		6,828,467
Accumulated provision for depreciation	(2,575,485)		(2,465,279)
Utility plant in service - net	4,572,808		4,363,188
Construction work in progress	955,276		785,706
Utility plant held for future use	9,491		7,130
Other property, net of accumulated depreciation	16,357		16,946
Property, plant and equipment - net	5,553,932		5,172,970
Other Assets:
Company-owned life insurance	79,861		73,944
Regulatory assets	1,398,652		1,421,912

Other	65,424		59,427
Total other assets	1,543,937		1,555,283
Total	$	8,293,534	$	7,543,258

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	September 30, 2023		December 31, 2022
	(in thousands)
Liabilities and Equity

Current Liabilities:


Accounts payable	$	227,348	$	292,719
Taxes accrued	36,005		8,565
Interest accrued	21,733		24,060
Accrued compensation	54,028		59,265
Current regulatory liabilities	8,620		63,957
Advances from customers	103,860		72,222
Other	37,336		27,777
Total current liabilities	488,930		548,565
Other Liabilities:
Deferred income taxes	878,945		873,916
Regulatory liabilities	815,075		796,644
Pension and other postretirement benefits	204,604		238,037
Other	150,966		77,336
Total other liabilities	2,049,590		1,985,933
Long-Term Debt	2,826,150		2,194,145
Commitments and Contingencies
Equity:
IDACORP, Inc. shareholders’ equity:
Common stock, no par value (120,000 shares authorized; 50,615 and 50,562 shares issued, respectively)	886,243		882,189
Retained earnings	2,047,129		1,937,972
Accumulated other comprehensive loss	(12,483)		(12,922)

Total IDACORP, Inc. shareholders’ equity	2,920,889		2,807,239
Noncontrolling interests	7,975		7,376
Total equity	2,928,864		2,814,615
Total	$	8,293,534	$	7,543,258

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Nine months ended September 30,
	2023		2022
	(in thousands)
Operating Activities:
Net income	$	230,535	$	217,401
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	146,645		127,335
Deferred income taxes and investment tax credits	300		(16,850)
Changes in regulatory assets and liabilities	1,585		(1,361)
Pension and postretirement benefit plan expense	20,390		21,744
Contributions to pension and postretirement benefit plans	(54,388)		(43,143)
Earnings of equity-method investments	(9,387)		(8,694)
Distributions from equity-method investments	1,250		7,963
Allowance for equity funds used during construction	(32,125)		(27,872)
Other non-cash adjustments to net income, net	6,115		9,064
Change in:
Accounts receivable and unbilled revenues	(10,691)		(58,113)
Prepayments	(2,669)		3,356
Materials, supplies, and fuel stock	(45,343)		3,662
Accounts and wages payable	(116,417)		19,507
Taxes accrued/receivable	41,174		26,128
Other assets and liabilities	(14,943)		(11,152)
Net cash provided by operating activities	162,031		268,975
Investing Activities:
Additions to property, plant and equipment	(427,211)		(305,271)
Payments received from transmission project joint funding partners	14,920		10,979


Investments in affordable housing and other real estate tax credits projects	(2,742)		(10,183)


Distributions from equity-method investments, return of investment	—		11,287
Purchases of equity securities	(3,283)		(28,888)
Purchases of held-to-maturity securities	(868)		(31,017)
Proceeds from the sale of equity securities	6,252		56,728
Purchases of short-term investments	—		(25,000)
Maturities of short-term investments	—		25,000

Other	1,051		5,982
Net cash used in investing activities	(411,881)		(290,383)
Financing Activities:
Issuance of long-term debt	872,000		150,000
Discount on issuance of long-term debt	(7,006)		—
Retirement of long-term debt	(225,000)		—
Dividends on common stock	(120,578)		(114,308)


Tax withholdings on net settlements of share-based awards	(3,274)		(3,111)

Other	1,620		(187)
Net cash provided by financing activities	517,762		32,394
Net increase in cash and cash equivalents	267,912		10,986
Cash and cash equivalents at beginning of the period	177,577		215,243
Cash and cash equivalents at end of the period	$	445,489	$	226,229
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Income taxes	$	1,900	$	38,220
Interest (net of amount capitalized)	$	82,614	$	68,057
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	$	127,076	$	65,374

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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Common Stock
Balance at beginning of period	$	884,309	$	877,362	$	882,189	$	874,896
Share-based compensation expense	1,920		2,519		7,224		7,883
Tax withholdings on net settlements of share-based awards	(19)		(153)		(3,274)		(3,111)

Other	33		32		104		92
Balance at end of period	886,243		879,760		886,243		879,760
Retained Earnings
Balance at beginning of period	1,982,083		1,867,811		1,937,972		1,833,580
Net income attributable to IDACORP, Inc.	105,264		106,380		229,936		216,928
Common stock dividends ($0.79, $0.75, $2.37, and $2.25 per share, respectively)	(40,218)		(38,124)		(120,779)		(114,441)
Balance at end of period	2,047,129		1,936,067		2,047,129		1,936,067
Accumulated Other Comprehensive Loss
Balance at beginning of period	(12,629)		(38,366)		(12,922)		(40,040)
Unfunded pension liability adjustment (net of tax)	146		837		439		2,511
Balance at end of period	(12,483)		(37,529)		(12,483)		(37,529)





Total IDACORP, Inc. shareholders’ equity at end of period	2,920,889		2,778,298		2,920,889		2,778,298
Noncontrolling Interests
Balance at beginning of period	7,592		7,023		7,376		6,798
Net income attributable to noncontrolling interests	383		248		599		473
Balance at end of period	7,975		7,271		7,975		7,271
Total equity at end of period	$	2,928,864	$	2,785,569	$	2,928,864	$	2,785,569

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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)

Operating Revenues	$	509,635	$	517,101	$	1,351,700	$	1,218,690

Operating Expenses:
Operation:
Purchased power	142,851		192,884		405,404		370,035
Fuel expense	71,723		63,631		191,917		143,750
Power cost adjustment	5,899		(30,806)		4,191		(31,631)
Other operations and maintenance	95,824		100,679		284,988		293,322
Energy efficiency programs	10,498		8,292		22,265		21,490
Depreciation	50,832		45,951		143,331		125,238
Other operating expenses	6,297		8,780		23,169		26,544
Total operating expenses	383,924		389,411		1,075,265		948,748

Operating Income	125,711		127,690		276,435		269,942

Nonoperating (Income) Expense:
Allowance for equity funds used during construction	(11,044)		(9,461)		(32,125)		(27,872)
Earnings of unconsolidated equity-method investments	(3,007)		(3,048)		(7,402)		(7,313)
Interest on long-term debt	29,361		22,093		82,908		64,536
Other interest	5,491		3,948		14,693		11,613
Allowance for borrowed funds used during construction	(4,903)		(3,534)		(14,291)		(10,399)
Other income, net	(7,588)		(2,245)		(23,434)		(5,222)
Total nonoperating expense, net	8,310		7,753		20,349		25,343

Income Before Income Taxes	117,401		119,937		256,086		244,599

Income Tax Expense	14,379		15,405		30,274		31,418

Net Income	$	103,022	$	104,532	$	225,812	$	213,181

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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)

Net Income	$	103,022	$	104,532	$	225,812	$	213,181
Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $51, $290, $153, and $870, respectively	146		837		439		2,511
Total Comprehensive Income	$	103,168	$	105,369	$	226,251	$	215,692

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


	September 30, 2023		December 31, 2022
	(in thousands)
Assets

Current Assets:
Cash and cash equivalents	$	404,881	$	108,933
Receivables:
Customer (net of allowance of $4,135 and $5,034, respectively)	135,021		114,173
Other (net of allowance of $587 and $512, respectively)	35,887		50,754
Income taxes receivable	—		13,108
Accrued unbilled revenues	81,533		84,862
Materials and supplies (at average cost)	131,616		92,461
Fuel stock (at average cost)	20,950		14,762
Prepayments	22,965		24,396

Current regulatory assets	163,818		80,049
Other	496		40,339
Total current assets	997,167		623,837
Investments	82,232		78,791
Property, Plant and Equipment:
Plant in service	7,148,293		6,828,467
Accumulated provision for depreciation	(2,575,485)		(2,465,279)
Plant in service - net	4,572,808		4,363,188
Construction work in progress	955,276		785,706
Plant held for future use	9,491		7,130
Other property	4,313		4,558
Property, plant and equipment, net	5,541,888		5,160,582
Other Assets:
Company-owned life insurance	79,861		73,944
Regulatory assets	1,398,652		1,421,912
Other	53,201		52,038
Total other assets	1,531,714		1,547,894
Total	$	8,153,001	$	7,411,104

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


	September 30, 2023		December 31, 2022
	(in thousands)
Liabilities and Equity

Current Liabilities:


Accounts payable	$	226,516	$	292,616
Accounts payable to affiliates	16,299		56,338
Taxes accrued	66,940		9,101
Interest accrued	21,733		24,060

Accrued compensation	53,808		58,959
Current regulatory liabilities	8,620		63,957
Advances from customers	103,860		72,222
Other	30,273		26,199
Total current liabilities	528,049		603,452
Other Liabilities:
Deferred income taxes	878,234		870,692
Regulatory liabilities	815,075		796,644
Pension and other postretirement benefits	204,604		238,037
Other	123,771		76,471
Total other liabilities	2,021,684		1,981,844
Long-Term Debt	2,826,150		2,194,145
Commitments and Contingencies
Equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding)	97,877		97,877
Premium on capital stock	712,258		712,258
Capital stock expense	(2,097)		(2,097)
Retained earnings	1,981,563		1,836,547
Accumulated other comprehensive loss	(12,483)		(12,922)
Total equity	2,777,118		2,631,663
Total	$	8,153,001	$	7,411,104

The accompanying notes are an integral part of these statements.

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Idaho Power Company

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Nine months ended September 30,
	2023		2022
	(in thousands)
Operating Activities:
Net income	$	225,812	$	213,181
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	146,203		126,887
Deferred income taxes and investment tax credits	(1,828)		(18,571)
Changes in regulatory assets and liabilities	1,585		(1,361)
Pension and postretirement benefit plan expense	20,373		21,726
Contributions to pension and postretirement benefit plans	(54,371)		(43,126)
Earnings of equity-method investments	(7,402)		(7,313)
Distributions from equity-method investments	550		7,313
Allowance for equity funds used during construction	(32,125)		(27,872)
Other non-cash adjustments to net income, net	(1,056)		1,169
Change in:
Accounts receivable and unbilled revenues	(11,107)		(57,492)
Prepayments	(2,677)		3,353
Materials, supplies, and fuel stock	(45,343)		3,662
Accounts and wages payable	(156,644)		63,341
Taxes accrued/receivable	70,947		20,381
Other assets and liabilities	(14,844)		(11,191)
Net cash provided by operating activities	138,073		294,087
Investing Activities:
Additions to property, plant and equipment	(427,191)		(305,117)

Payments received from transmission project joint funding partners	14,920		10,979

Distributions from equity-method investments, return of investment	—		11,287

Purchases of equity securities	(2,281)		(28,063)
Purchases of held-to-maturity securities	(868)		(31,017)
Proceeds from the sale of equity securities	6,252		56,728

Other	5,996		7,407
Net cash used in investing activities	(403,172)		(277,796)
Financing Activities:
Issuance of long-term debt	872,000		150,000
Discount on issuance of long-term debt	(7,006)		—
Retirement of long-term debt	(225,000)		—
Dividends on common stock	(80,698)		(114,400)



Other	1,751		(138)
Net cash provided by financing activities	561,047		35,462
Net increase in cash and cash equivalents	295,948		51,753
Cash and cash equivalents at beginning of the period	108,933		60,075
Cash and cash equivalents at end of the period	$	404,881	$	111,828
Supplemental Disclosure of Cash Flow Information:
Cash paid to IDACORP related to income taxes	$	15,333	$	2,532
Cash paid for interest (net of amount capitalized)	$	82,372	$	67,806
Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	$	127,076	$	65,374

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 venturer in 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 enterprise 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 September 30, 2023, condensed consolidated statements of income for the three months and nine months ended September 30, 2023 and 2022, and condensed consolidated cash flows for the nine months ended September 30, 2023 and 2022. 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 2022 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 accounting principles generally accepted in the United States of America (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

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period. These estimates involve judgments with respect to, among other things, 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

There have been no recently issued accounting pronouncements that have had or 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.

The following table provides a summary of income tax expense for the nine months ended September 30, 2023 and 2022 (in thousands):


	IDACORP						Idaho Power
	2023			2022			2023			2022
Income tax at statutory rates (federal and state)	$	66,650		$	63,500		$	65,916		$	62,960
Additional ADITC amortization	(7,500)			—			(7,500)			—

Excess deferred income tax reversal	(8,013)			(8,554)			(8,013)			(8,554)





Income tax return adjustments	(8,227)			(2,692)			(7,732)			(2,827)
Other(1)	(13,910)			(22,486)			(12,397)			(20,161)
Income tax expense	$	29,000		$	29,768		$	30,274		$	31,418
Effective tax rate	11.2		%	12.1		%	11.8		%	12.8		%

(1) "Other" is primarily comprised 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 2022 Annual Report.

On June 1, 2023, Idaho Power filed a general rate case with the IPUC. The filing was based on a 2023 test year and requested approximately $111 million in additional Idaho jurisdiction annual revenues, which is net of a corresponding proposed PCA decrease of $173.4 million and a reduction to annual energy efficiency rider collection of $3.5 million. As filed, this request would have resulted in an 8.61 percent overall average net rate increase for Idaho Power's Idaho customers. The filing requested, among other items, a 10.4 percent authorized rate of return on equity and an approximate $3.9 billion Idaho retail rate base. The $3.9 billion of rate base excludes rate base associated with Idaho Power's jointly-owned coal facilities, the costs of which are recovered under separate rate mechanisms. 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 4.895 percent, and an overall cost of capital of 7.702 percent.

On October 27, 2023, Idaho Power, the Staff of the IPUC, and intervening parties publicly filed a settlement stipulation (2023 General Rate Case Settlement Stipulation) with the IPUC related to the Idaho general rate case filing. If the IPUC approves the

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2023 General Rate Case Settlement Stipulation, it will authorize Idaho Power's filed general rate case, with the modifications contained in the 2023 General Rate Case Settlement Stipulation.

As modified by the proposed 2023 General Rate Case Settlement Stipulation, Idaho Power’s general rate case filing contains the following significant terms, among other items:

•Idaho Power would implement revised tariff schedules designed to increase annual Idaho-jurisdictional retail revenue by $54.7 million, or 4.25 percent, effective January 1, 2024. The $54.7 million of additional annual revenue is net of a PCA rate decrease of $168.3 million (moving that amount from collection via the PCA and into base rates) and a reduction to annual energy efficiency rider collection of $3.5 million.

•A 9.6 percent return on equity and a 7.247 percent authorized rate of return based on a non-specified cost of debt and capital structure, applied to an Idaho-jurisdictional rate base of approximately $3.8 billion.

•Modifications to the Idaho-jurisdiction PCA including establishment of a new level of base net power supply expense of $484.9 million, which includes the transfer of $168.3 million from current PCA rates to base rates;

•Modifications to the energy efficiency rider to support the transfer of $3.5 million of energy efficiency labor-related cost collection from the annual energy efficiency rider into base rates, warranting a decrease in the energy efficiency rider rate from 3.1 percent to 2.35 percent;

•Modifications to the FCA mechanism to support Idaho Power's proposed rate designs and to reflect updated fixed costs;

•Continued deferral of incremental vegetation management and insurance costs, as measured from 2022 actual costs, through the earlier of Idaho Power’s next Idaho general rate case or 2025;

•An annual $18 million increase in collection of Idaho Power’s regulatory asset associated with its defined benefit pension plan contributions;

•Modifications to Idaho Power’s ADITC and revenue sharing mechanism (1) to 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) to remove the existing $25 million annual cap on the amount of accelerated amortization of ADITCs; (3) to establish a minimum specified Idaho ROE of 9.12 percent for additional amortization of ADITCs; (4) to establish a 9.6 percent Idaho ROE as the threshold for revenue sharing of Idaho-jurisdiction earnings between Idaho Power and Idaho customers; and (5) to implement all revenue sharing through the PCA rather than a portion offsetting customer-funded pension obligations;

•Agreement that Idaho Power’s share of capital expenditures at jointly-owned coal-fired plants through year-end 2022 was prudently incurred;

•Deferral and amortization of annual differences between certain periodic maintenance costs at Idaho Power's natural gas-fired power plants; and

•Modifications to the residential price modernization plan proposed by Idaho Power in its initial filing, as well as other modifications to Idaho Power’s proposed rate design.

The 2023 General Rate Case Settlement Stipulation further provides for future workshops and discussions among the parties on time-of-use rates and other unresolved topics and further review of Idaho Power plant investments by IPUC Staff to be completed by December 1, 2023. To the extent IPUC Staff identifies potential prudence concerns, those prudence concerns would be addressed in Idaho Power's next general rate case.

The parties to the 2023 General Rate Case Settlement Stipulation have requested that the IPUC issue an order approving the agreed-upon rates effective January 1, 2024. The 2023 General Rate Case Settlement Stipulation does not preclude Idaho Power from filing another general rate case in Idaho at any time in the future. If the IPUC were to deny the 2023 General Rate Case Settlement Stipulation or materially change its terms, no party would be bound by the terms of the stipulation. As of the date of this report, the IPUC's determination in this matter is pending.

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Idaho ADITC and Revenue Sharing Mechanism

A May 2018 Idaho settlement stipulation related to tax reform (May 2018 Idaho Tax Reform Settlement Stipulation) is described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2022 Annual Report and includes provisions for the accelerated amortization of ADITC to help achieve a minimum 9.4 percent Idaho ROE. In addition, under the May 2018 Idaho Tax Reform Settlement Stipulation, the Idaho ROE at which Idaho Power would begin amortizing additional ADITC would revert back to 95 percent of the authorized return on equity in the next general rate case. The settlement stipulation also provides for the potential sharing between Idaho Power and Idaho customers of Idaho-jurisdictional earnings in excess of a 10.0 percent Idaho ROE, which would adjust to the authorized return on equity in the next general rate case currently pending before the IPUC.

Based on its estimate of full-year 2023 Idaho ROE, in the three and nine months ended September 30, 2023, Idaho Power recorded zero and $7.5 million, respectively, for additional ADITC amortization under the May 2018 Idaho Tax Reform Settlement Stipulation. The additional ADITC amortization was recorded in income tax expense on Idaho Power's condensed consolidated statements of income. Accordingly, at September 30, 2023, $37.5 million of additional ADITC remains available for future use. Idaho Power recorded no additional ADITC amortization or provision against revenues for sharing of earnings with customers during 2022.

If approved by the IPUC, the 2023 General Rate Case Settlement Stipulation would modify the Idaho ADITC and revenue sharing mechanism as noted above.

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 May 2023, the IPUC issued an order approving recovery of an incremental $200.2 million of Idaho-jurisdiction PCA revenues, which included an increase in the forecasted power supply cost component and the deferral balance component. The IPUC directed Idaho Power to spread recovery of the $190.2 million deferral balance component of the PCA over a two-year period from June 1, 2023, to May 31, 2025, resulting in a total PCA increase of $105.1 million, effective for the PCA collection period from June 1, 2023, to May 31, 2024. The order defers collection of $95.1 million of deferred PCA costs to the subsequent annual PCA collection period from June 1, 2024, to May 31, 2025. The net increase in PCA revenues reflects higher market energy and natural gas prices, combined with lower-than-expected hydropower generation and limited coal supply in the prior April 2022 to March 2023 PCA period. The net increase also reflects an expectation of continued elevated market energy and natural gas prices in the April 2023 to March 2024 forecast period under the PCA. If approved by the IPUC, the 2023 General Rate Case Settlement Stipulation would modify the PCA mechanism as noted above.

In May 2023, the OPUC issued an order approving Idaho Power's annual power cost update settlement, for a $7.7 million increase in Oregon-jurisdiction rates effective June 1, 2023.

Idaho Fixed Cost Adjustment Mechanism

The Idaho-jurisdiction 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 kWh 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 kWh 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 May 2023, the IPUC issued an order approving a $10.1 million decrease in recovery from the FCA from $35.2 million to $25.1 million for the 2022 FCA deferral, with new rates effective for the period from June 1, 2023, to May 31, 2024. Beginning with the 2024 FCA deferral, if approved by the IPUC, the 2023 General Rate Case Settlement

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Stipulation would update the authorized fixed-cost recovery amount per customer and would modify parts of the FCA mechanism to support Idaho Power's proposed rate designs, as noted above.

Jim Bridger Power Plant Rate Base Adjustment and Recovery

In June 2022, the IPUC issued an order approving, with modifications, Idaho Power’s amended application requesting authorization to (1) accelerate depreciation for the Jim Bridger plant to allow the coal-related plant assets to be fully depreciated and recovered by December 31, 2030, (2) establish a balancing account to track the incremental costs, benefits, and required regulatory accounting associated with ceasing participation in coal-fired operations at the Jim Bridger plant, and (3) increase customer rates related to the associated incremental annual levelized revenue requirement (Bridger Order).

The Bridger Order allows for regulatory accounting entries and establishes balancing accounts (recorded as regulatory assets or liabilities on Idaho Power’s and IDACORP’s consolidated balance sheets) to track differences between amounts recovered in rates and actual incremental costs and benefits associated with Idaho Power’s cessation of coal-fired operations at the Jim Bridger plant. The incremental costs and benefits include the revenue requirement associated with the incremental Jim Bridger plant coal-related investments made from 2012 through the end of 2020, forecasted coal-related investments, and near-term decommissioning costs, offset by other O&M cost savings. The Bridger Order deemed all coal-related investments at the Jim Bridger plant from 2012 through 2020 to be prudent for recovery. In the Bridger Order, the IPUC reduced Idaho Power's requested rate increase from 2.1 percent in its amended filing to 1.5 percent, a reduction from a requested $27.1 million to $18.8 million annually. The Bridger Order provides that any uncollected amount resulting from the reduction in the rate increase will be recorded in the balancing account for future recovery with no carrying charge. Uncollected amounts tracked in this balancing account were included for recovery in the 2023 General Rate Case Settlement Stipulation. Idaho Power anticipates making future filings with the IPUC that may result in periodic adjustments to rates to true up variances between revenue collections and actual revenue requirement amounts. The Bridger Order allows Idaho Power to earn a return on and recover through 2030 the net book value of coal-related assets at the Jim Bridger plant as of December 31, 2020, as well as forecasted coal-related investments.

Wildfire Mitigation Cost Recovery

In June 2021, the IPUC authorized Idaho Power to defer for future amortization incremental O&M and depreciation expense for certain capital investments necessary to implement Idaho Power's WMP. The IPUC also authorized Idaho Power to record these deferred expenses as a regulatory asset until Idaho Power can request amortization of the deferred costs in a future IPUC proceeding, at which time the IPUC will have the opportunity to review actual costs and determine the amount of prudently incurred costs that Idaho Power can recover through retail rates. In its 2021 application with the IPUC, Idaho Power projected spending approximately $47 million in incremental wildfire mitigation-related O&M and roughly $35 million in wildfire mitigation system-hardening incremental capital expenditures over a five-year period. The IPUC authorized a deferral period of five years, or until rates go into effect from Idaho Power's next general rate case, whichever is first. As of September 30, 2023, Idaho Power's deferral of Idaho-jurisdiction costs related to the WMP was $45.4 million.

During the 2021 and 2022 wildfire seasons, Idaho Power identified needs for expanded mitigation measures by gaining additional insights and knowledge on wildfires and wildfire mitigation activities. In October 2022, Idaho Power filed an updated WMP with the IPUC along with an application requesting authorization to defer an estimated $16 million of newly identified incremental costs expected to be incurred between 2022 and 2025 associated with expanded wildfire mitigation efforts. In March 2023, the IPUC approved Idaho Power's updated WMP and request to defer the additional incremental costs. As noted above, if approved by the IPUC, the 2023 General Rate Case Settlement Stipulation would allow continued deferral of incremental vegetation management and insurance costs, as measured from 2022 actual costs, through the earlier of Idaho Power’s next Idaho general rate case or 2025.

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4. REVENUES

The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power for the three months and nine months ended September 30, 2023 and 2022 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Revenue from contracts with customers	$	496,632	$	515,395	$	1,267,527	$	1,179,059
Alternative revenue programs and other revenues	13,003		1,706		84,173		39,631
Total electric utility operating revenues	$	509,635	$	517,101	$	1,351,700	$	1,218,690

Revenues from Contracts with Customers

The following table presents revenues from contracts with customers disaggregated by revenue source for the three months and nine months ended September 30, 2023 and 2022 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Retail revenues:
Residential (includes $5,583, $(1,447), $20,170, and $14,104, respectively, related to the FCA)(1)	$	181,736	$	176,514	$	505,158	$	470,402
Commercial (includes $328, $142, $900, and $730, respectively, related to the FCA)(1)	107,971		101,794		283,478		259,620
Industrial	67,522		60,306		181,312		161,353
Irrigation	104,645		105,365		168,358		164,065

Deferred revenue related to HCC relicensing AFUDC(2)	(2,815)		(2,815)		(6,861)		(6,861)

Total retail revenues	459,059		441,164		1,131,445		1,048,579
Less: FCA mechanism revenues(1)	(5,911)		1,305		(21,070)		(14,834)
Wholesale energy sales	5,065		34,501		50,461		44,516
Transmission wheeling-related revenues	20,090		22,882		61,701		57,670
Energy efficiency program revenues	10,498		8,292		22,265		21,490
Other revenues from contracts with customers	7,831		7,251		22,725		21,638
Total revenues from contracts with customers	$	496,632	$	515,395	$	1,267,527	$	1,179,059

(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 Idaho FCA mechanism, which may increase or decrease tariff-based customer rates. The Idaho 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. Related to these forward sales, Idaho Power simultaneously enters into forward purchases 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."

Table of Contents

The table below presents the FCA mechanism revenues and other revenues for the three months and nine months ended September 30, 2023 and 2022 (in thousands):