• Diluted Earnings Per Share (EPS): $1.10 for Q1 2025, compared to $0.95 in Q1 2024.
• Net Income: Increased to $11.4 million for Q1 2025.
• Revenue Increase: Driven by higher retail revenues from rate case increase and customer growth.
• Customer Growth: 2.6% overall growth, 2.9% growth in residential customers since Q1 2024.
• Operating Income Increase: $11.3 million from net increase in retail revenues per megawatt hour.
• O&M Expenses: Increased by $7.2 million in Q1 2025.
• Depreciation Expense: Increased by $20 million for the year.
• CapEx Forecast: $5.6 billion over the next five years.
• 2025 Earnings Guidance: Diluted EPS range of $5.65 to $5.85.
• O&M Expense Guidance: $465 million to $475 million for 2025.
• CapEx Spending for 2025: $1 billion to $1.1 billion.
• Hydropower Generation Forecast: 7 million to 8.5 million megawatt hours for 2025.

• Warning! GuruFocus has detected 15 Warning Signs with IDA.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Idacorp Inc (NYSE:IDA) reported an increase in diluted earnings per share to $1.10 from $0.95 in the previous year's first quarter.
• The company reaffirmed its full-year earnings guidance range of $5.65 to $5.85 per share.
• Customer growth in the Idaho Power service area was strong, with a 2.6% increase in the customer base, including a 2.9% rise in residential customers.
• Significant new customer investments were noted, including a $500 million expansion by Chobani and a $225 million distribution center by Tractor Supply Company.
• Idacorp Inc (NYSE:IDA) is making progress on infrastructure projects, including an 80-megawatt battery project and a 150-megawatt storage agreement, both on track for completion soon.

Negative Points

• Higher depreciation and interest expenses were noted due to ongoing infrastructure projects.
• Other operating and maintenance expenses increased by $7.2 million, partly due to wildfire mitigation and insurance costs.
• The company faces potential impacts from tariffs on battery storage assets, which are being closely monitored.
• Idacorp Inc (NYSE:IDA) anticipates the need for substantial external financing, including $1.4 billion in equity and $2.2 billion in debt over the next five years.
• Regulatory lag remains a concern, with efforts underway to reduce its negative effects on financial performance.

Q & A Highlights

Q: Do you expect any changes to your wildfire mitigation plans following the new wildfire legislation? A: Lisa Grow, President and CEO, stated that they do not anticipate any changes to the program. They are reviewing the plan as it is currently written and may make some modifications, but these would not necessarily change any actual activities. They feel confident in their current plan and will continue to evolve it over time.

Q: What mechanisms or trackers might you be considering for the upcoming rate case to improve earned ROEs? A: Timothy Tatum, VP of Regulatory Affairs, mentioned that they are considering various options to reduce regulatory lag. The details are still being developed, but they aim to address the negative effects of regulatory lag in the upcoming case.

Q: Have you noticed any effects on the agricultural community or tourism due to recent economic conditions? A: Lisa Grow noted that it's too early to tell, but there are concerns due to uncertainties. Adam Richins, COO, added that from a planting perspective, it appears to be a normal season, and water conditions are positive, which should help farmers.

Q: How are you planning to ensure timely recovery of costs for large transmission projects? A: Timothy Tatum explained that they are looking at the rate case and other potential mechanisms to provide timely cost recovery. Brian Buckham, CFO, added that they have not shied away from one-off cases in the past and are considering all options for larger transmission projects.

Q: Are you seeing additional large-load customers seeking interconnection at a brisk pace? A: Lisa Grow confirmed that they are still receiving a steady flow of inquiries and requests from large loads. Adam Richins noted that there is a lot of generation resources showing up across their service territory to meet potential load growth.

Q: Regarding the 2028 and 2029 RFPs, would new large-load customers be captured in those RFPs? A: Lisa Grow stated that it depends on when the new loads would start. They could contract with existing projects if needs change, but if customer needs exceed current plans, they may need additional RFPs.

Q: Is there anything in the wildfire legislation that you hoped to include but was not? A: Lisa Grow expressed satisfaction with the legislation, stating it was a good first step in defining the standard of care. Julia Hilton, General Counsel, added that the final version contained most of the protections they sought.

Q: Are you considering a fund for wildfire liability similar to other states? A: Lisa Grow mentioned that while it was discussed, Idaho's small size makes it challenging to create a fund. They are considering other strategies like insurance products.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.