10-K: IDACORP Reports Record Sales, Boosts Dividend Amid Growth

IDACORP achieved its eighteenth consecutive year of net income growth in 2025, driven by record retail energy sales and strategic infrastructure investments.

Summary

• IDACORP reported net income growth for the eighteenth consecutive year in 2025, with net income attributable to IDACORP, Inc. reaching $323.472 million, up from $289.174 million in 2024.
• Idaho Power's customer count grew by 2.3% in 2025, leading to the highest retail MWh sales in its history, surpassing the previous record set in 2024.
• Idaho Power maintained high reliability, providing uninterrupted service to its retail customers 99.97% of the time in 2025, and achieved top customer satisfaction rankings among peers.
• IDACORP's board of directors approved an increase in the regular quarterly cash dividend from $0.86 per share to $0.88 per share in September 2025.
• Idaho Power's 2025 Integrated Resource Plan (IRP) identified a need for 4,071 MW of additional resource capacity over the next 20 years, including 1,161 MW of natural gas, 1,445 MW of solar, 700 MW of wind, and 885 MW of storage.
• Capital expenditures for Idaho Power were $1.1 billion in 2025 and are estimated to be between $6.3 billion and $7.2 billion from 2026 through 2030.
• The Idaho Public Utilities Commission (IPUC) approved a settlement stipulation in December 2025, increasing annual Idaho-jurisdictional retail revenue by approximately $110.0 million, or 7.48%, effective January 1, 2026.
• Idaho Power entered into a definitive agreement on February 13, 2026, to sell its Oregon electric distribution business and certain Oregon transmission assets to Oregon Trail Electric Consumers Cooperative, Inc. (OTEC).
• Wholesale energy revenue decreased by $17.9 million, or 24%, in 2025 compared to 2024, primarily due to lower wholesale market prices.
• Purchased power expense decreased $32.6 million, or 8%, in 2025, driven by lower wholesale energy market prices.
• Fuel expense decreased $6.0 million, or 2%, in 2025, despite increased thermal generation, due to lower natural gas market prices.
• Other operations and maintenance (O&M) expenses increased $9.6 million in 2025, primarily due to inflationary pressures on labor-related costs, professional services, and statutory fees.
• Depreciation and amortization expense increased $27.7 million in 2025, mainly due to an increase in plant-in-service.
• Non-operating expense, net, increased $22.8 million in 2025, primarily due to higher interest expense, partially offset by an increase in Allowance for Funds Used During Construction (AFUDC).
• IDACORP's income tax expense decreased $28.8 million in 2025 compared to 2024, mainly due to income tax return adjustments and increased Accumulated Deferred Investment Tax Credits (ADITC) amortization.
• The Jackalope Wind Project agreements for 600 MW of wind generation were terminated in September 2025 due to permitting delays and uncertainty.
• Conversion of North Valmy plant unit 1 to natural gas was completed in December 2025, with unit 2 expected to be completed by mid-2026. Jim Bridger units 1 and 2 were converted in spring 2024, with units 3 and 4 planned for 2030.
• Hells Canyon Complex (HCC) relicensing costs totaled $536.1 million in construction work in progress as of December 31, 2025, with a new license expected in 2027 or thereafter.
• IDACORP adjusted its near-term target dividend payout ratio to between 50% and 60% of earnings, down from 60% to 70%, to support Idaho Power's capital investments.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, marked by consistent net income growth, robust customer expansion, and strategic investments in infrastructure and clean energy, despite some operational cost increases and project delays. The proactive regulatory engagement and dividend increase signal confidence.

Positives

• IDACORP achieved net income growth for the eighteenth consecutive year in 2025, demonstrating consistent financial performance.
• Idaho Power's customer count grew by 2.3% in 2025, contributing to record retail MWh sales and indicating strong regional demand.
• Idaho Power's reliability metrics in 2025 were among the best in company history, with 99.97% uninterrupted service to retail customers.
• Idaho Power was the highest-ranked utility among peers for overall customer satisfaction in a third-party survey in 2025, and second highest for business and residential customer satisfaction.
• IDACORP's board of directors approved an increase in the regular quarterly cash dividend from $0.86 per share to $0.88 per share in September 2025, reflecting confidence in future earnings.
• The IPUC approved a settlement stipulation in December 2025, increasing annual Idaho-jurisdictional retail revenue by approximately $110.0 million (7.48%) effective January 1, 2026, aiding cost recovery.
• Idaho Power is making significant strategic investments in clean energy, including 250 MW of company-owned battery storage, a 100 MW battery storage agreement, and 625 MW of solar PPAs.
• Construction commenced on the Boardman-to-Hemingway (B2H) transmission line in June 2025, a key project to meet future resource needs.
• The conversion of Jim Bridger units 1 and 2 from coal to natural gas was completed in spring 2024, and North Valmy unit 1 conversion was completed in December 2025, advancing decarbonization goals.

Negatives

• Wholesale energy revenue decreased by $17.9 million, or 24%, in 2025 compared to 2024, primarily due to lower wholesale market prices.
• Usage per retail customer decreased in most customer classes in 2025, reducing retail revenues by $20.9 million, mainly due to milder temperatures.
• Other operations and maintenance (O&M) expenses increased $9.6 million in 2025, driven by inflationary pressures on labor, professional services, and statutory fees.
• Depreciation and amortization expense increased $27.7 million in 2025, reflecting higher plant-in-service balances.
• Non-operating expense, net, increased $22.8 million in 2025, primarily due to higher interest expense from increased long-term debt and transmission customer deposits.
• The Jackalope Wind Project agreements for 600 MW of wind generation were terminated in September 2025 due to permitting delays and uncertainty, impacting resource diversification plans.
• IDACORP adjusted its near-term target dividend payout ratio to between 50% and 60% of earnings, down from 60% to 70%, indicating a need to retain more capital for investments.

Risks

• Federal, state, or local regulators may impose additional requirements and costs, reduce authorized rates of return, or adversely affect cost recovery.
• Idaho Power's regulatory cost recovery mechanisms (PCA, FCA) may not function as intended or could be changed/eliminated, impacting financial condition.
• Expenses and risks associated with capital expenditures and contractual obligations for utility infrastructure projects, including delays and cost increases due to tariffs or supply chain constraints.
• Supplier and contractor delays and failures to meet project quality and performance standards on utility infrastructure projects.
• Rapid addition of new industrial customer load and its volatility, potentially exceeding available generation capacity or causing revenue volatility if forecasted usage is not met.
• Impacts of economic conditions, including inflation or recession, and interest rates, on operations, capital investments, supply costs, customer demand, and revenue.
• Changes in residential, commercial, irrigation, and industrial growth and demographic patterns within Idaho Power's service area.
• Employee workforce factors, including unionization, ability to attract/retain skilled workers, cost of living, and labor cost fluctuations.
• Changes in, or failure to comply with, laws, regulations, policies, orders, and licenses, potentially resulting in penalties, fines, and increased compliance costs.
• Abnormal or severe weather conditions, wildfires, droughts, earthquakes, and other natural phenomena affecting customer sales, hydropower generation, repair costs, and liability.
• Advancement and adoption of self-generation, energy storage, energy efficiency, and alternative energy sources reducing electricity sales or introducing operational vulnerabilities.
• Variable hydrological conditions and over-appropriation of water in the Snake River Basin impacting hydropower generation and power supply costs.
• Inability to acquire equipment, materials, fuel, power, and transmission capacity on reasonable terms and prices, especially due to supply chain disruptions or price volatility.
• Inability to timely obtain and the cost of obtaining governmental permits and approvals, licenses, rights-of-way, and siting for transmission and generation projects.
• Disruptions or outages of Idaho Power's generation or transmission systems or interconnected systems, leading to liability, increased costs, and reduced revenues.
• Accidents, fires, explosions, infrastructure failures, and other unplanned events causing outages, damage, third-party claims, or fines.
• Acts or threats of terrorism, acts of war, social unrest, cyber or physical security attacks, and other malicious acts disrupting operations or compromising data.
• Idaho Power's concentration in one region, exposing it to regional economic conditions, legislation, and regulation.
• Unaligned goals and positions with co-owners of Idaho Power's existing and planned generation and transmission assets.
• Changes in tax laws or related regulations, or interpretations by taxing jurisdictions, and the availability of expected tax credits or benefits.
• Ability to obtain debt and equity financing or refinance existing debt on satisfactory terms, affected by credit ratings, financial market volatility, and regulatory decisions.
• Failure of financial and physical commodity hedges to work as intended, leading to potential losses and cash flow impacts.
• Changes in actuarial assumptions, interest rates, and actual/projected return on plan assets for pension and other post-retirement plans affecting funding obligations and costs.
• Remediation costs associated with planned cessation of coal-fired operations at co-owned coal plants and conversion to natural gas.
• Ability to continue to pay dividends and achieve target dividend payout ratios based on financial performance, capital requirements, and regulatory limitations.
• Adoption of or changes in accounting policies and principles, changes in accounting estimates, and new SEC or NYSE requirements.
• Liability from fires, despite wildfire mitigation plans, potentially exceeding insurance coverage or not being fully recoverable through rates.
• Demand for power exceeding available generation capacity, particularly with new industrial load, leading to deliverability risks and increased costs for purchasing capacity.
• Impacts of turnover in a workforce with specialized utility-specific functions and the inability to hire qualified third-party vendors.
• Obligations imposed in connection with hydropower license renewals and permitting, potentially requiring large capital expenditures, increasing operating costs, or reducing hydropower generation.
• Penalties, reputational harm, and operational changes if mandatory reliability and security requirements are violated.
• Costs and other effects of legal and regulatory proceedings, disputes, and claims.
• If the assumptions underlying coal mine reclamation at Bridger Coal Company (BCC) and related forecast trust fund growth are materially inaccurate, costs could be greater or incurred sooner than anticipated.
• As a holding company, IDACORP relies on cash flows from its subsidiaries to pay dividends and make debt payments, subject to subsidiary financial health and regulatory restrictions.

Future Outlook

IDACORP anticipates continued customer growth and significant capital investments in utility infrastructure, including major transmission projects and resource additions to meet projected energy and capacity deficits. The company plans to continue its transition from coal to natural gas generation and expand renewable energy and storage. Regulatory filings for rate adjustments are expected to be regular to ensure timely cost recovery. IDACORP expects to file its 2027 Integrated Resource Plan in summer 2027 and is monitoring ongoing environmental regulations and executive orders for potential impacts on operations and costs. Pension plan contributions could be significant beyond 2026.

Management Comments

• IDACORP is committed to its focus on competitive total returns and generating long-term value for shareholders.
• Idaho Power is committed to working for strong, sustainable financial results by continuing to safely provide reliable and affordable energy to its customers from diversified generation resources.

Industry Context

StockSavvy.ai notes the utility sector's ongoing transition towards decarbonization, with IDACORP actively converting coal plants to natural gas and investing heavily in solar, wind, and battery storage. The rapid customer growth in Idaho Power's service area is a regional trend, driving significant infrastructure investment, which is common for utilities in high-growth areas. The focus on grid resiliency and wildfire mitigation aligns with increasing industry-wide concerns over climate change impacts and operational risks. The sale of the Oregon distribution business reflects a strategic streamlining of operations to focus on its core Idaho service area, a move some utilities undertake to optimize regulatory environments and operational efficiency.

Comparison to Industry Standards

• Idaho Power's reliability metrics, providing uninterrupted service 99.97% of the time in 2025, are among the best in company history, suggesting strong operational performance compared to industry averages.
• Customer satisfaction rankings in 2025 show Idaho Power as the highest-ranked utility among peers in the segment for overall customer satisfaction, and second highest for business and residential customer satisfaction, indicating superior performance relative to comparable utilities.
• The 2025 IRP's preferred resource portfolio includes 4,071 MW of additional capacity, with 1,445 MW solar, 700 MW wind, and 885 MW storage, reflecting a significant commitment to renewable energy and storage, aligning with or exceeding many utility peers' decarbonization targets.
• The conversion of Jim Bridger units 1 & 2 to natural gas in 2024 and North Valmy units 1 & 2 by mid-2026, with remaining Jim Bridger units by 2030, demonstrates a proactive approach to coal plant retirement and conversion, consistent with leading utilities' environmental strategies.

Management Changes

Corporate Governance

Legal Proceedings

• Idaho Power is involved in various claims, controversies, disputes, and other contingent matters, some of which involve litigation and regulatory proceedings, but resolution of existing claims is not expected to have a material adverse effect on consolidated financial statements.
• Idaho Power is actively monitoring various pending environmental regulations and executive orders related to environmental matters that may have a significant impact on its future operations, but the financial impact is currently unestimable.
• Lawsuits challenging the BLM's sage grouse resource management and land use plan revisions, which challenge exemptions for the B2H and GWW transmission line projects, are currently stayed.
• Idaho Power filed suit in May 2024 in the U.S. Court of Appeals, D.C. Circuit, to challenge the EPA's New Section 111 Rule, which has been consolidated with other similar suits and is currently on hold.
• Idaho Power filed a petition with the EPA for reconsideration of its final partial disapproval of Wyoming's Regional Haze SIP and also filed suit in the 10th Circuit Court of Appeals to challenge the EPA's final partial disapproval, both of which remain pending.
• The U.S. Supreme Court issued an opinion in Ohio v. EPA in May 2025 that granted an application to stay the EPA's Federal Implementation Plan (FIP) promulgated under the Good Neighbor Provision of the CAA, putting a hold on related compliance obligations for the North Valmy plant.
• Idaho Power and the Idaho Department of Environmental Quality (IDEQ) entered into a consent judgment in June 2022 to resolve a National Pollutant Discharge Elimination System permitting issue related to 15 of Idaho Power's hydropower projects, requiring a $1.1 million fine and new permit applications.
• Three parties filed complaints with the OPUC in June 2025 seeking reconsideration of the CPCN granted for the B2H transmission line; the OPUC upheld the CPCN in November 2025, but these parties have since filed three complaints in Baker County and Union County Circuit Courts challenging the OPUC decision, which remain pending.
• In September 2025, two parties filed complaints in Morrow County Circuit Court alleging that the Oregon Department of Energy and the Oregon Energy Facility Siting Council improperly modified the Fire Protection and Suppression Plan; Idaho Power has moved to dismiss that claim, and the case remains pending.

Related Party Transactions

• Idaho Power performs corporate functions for IDACORP and its subsidiaries, billing IDACORP $1.5 million in 2025, $1.1 million in 2024, and $1.1 million in 2023 for these services.
• Idaho Power purchased $9.5 million in 2025, $9.6 million in 2024, and $9.1 million in 2023 of power from Ida-West, a 50% owned PURPA-qualifying hydropower project joint venture.
• Idaho Power's subsidiary, Idaho Energy Resources Co. (IERCo), is a one-third owner of Bridger Coal Company (BCC), from which Idaho Power purchased coal for $54.4 million in 2025, $51.6 million in 2024, and $67.9 million in 2023.

Stakeholder Impact

• Shareholders: Experienced increased dividends and consistent net income growth, but face potential dilution from future equity raises and market price volatility. The adjusted dividend payout ratio aims to balance returns with capital needs.
• Customers: Will see rate increases in Idaho ($110.0 million) and Oregon ($6.7 million) due to regulatory approvals, but also benefit from high service reliability (99.97% uninterrupted service) and strong customer satisfaction. Investments in clean energy and infrastructure are intended to ensure reliable and affordable service long-term.
• Employees: Benefit from a focus on safety, competitive compensation and benefits, and development opportunities. The company maintains a good relationship with employees, but potential for unionization attempts exists.
• Suppliers/Contractors: Significant capital expenditures will drive demand for materials and services, but also present risks of delays and cost increases due to supply chain issues and tariffs.
• Creditors: The company maintains healthy leverage ratios (52% vs. 65% covenant) and access to credit facilities and debt markets, but credit rating downgrades could increase borrowing costs. The extension of credit facilities provides stability.

Next Steps

• Idaho Power is evaluating potential rate case filings for 2026 to address regulatory lag in cost recovery.
• Idaho Power expects to prepare an updated load forecast during 2026 as the basis for the 2027 Integrated Resource Plan (IRP), which is expected to be filed in summer 2027.
• Idaho Power plans to file a supplemental application in 2026 for the inclusion of additional Hells Canyon Complex (HCC) relicensing costs incurred during the final three months of 2025.
• The conversion of North Valmy plant unit 2 to natural gas is expected to be completed by mid-2026.
• Construction of the Southwest Intertie Project-North (SWIP-N) transmission line is expected to commence in 2026 and be completed in 2028 or thereafter.
• The Boardman-to-Hemingway (B2H) transmission line is expected to be in-service by late 2027.
• The Gateway West (GWW) transmission line segment between Hemingway and Midpoint substations may commence construction during 2026-2030, with an expected in-service date of 2028 or later.
• The FERC could issue a new HCC license in 2027 or thereafter, with the final supplemental EIS scheduled for May 2026.
• A new license for the American Falls hydropower facility is expected in 2026.
• Idaho Power expects to seek approval from the IPUC and OPUC for any necessary adjustments to plant retirement dates to align with its current resource plan.
• Idaho Power expects to contribute up to $30 million to its pension plan during 2026.
• Idaho Power will continue to monitor actions associated with or resulting from executive orders and new or revised legislation or regulation.
• The IPUC's decision on Idaho Power's Wildfire Mitigation Plan (WMP) filing (October 2025) remains pending.
• The OPUC's decision on Idaho Power's 2026-2028 WMP filing (December 2025) remains pending.
• The IPUC case for the Blacks Creek Energy Center PPA (September 2025) remains pending.
• The IPUC case for 167 MW of natural gas-fueled generating capacity (September 2025) remains pending.
• The IPUC case for the Micron Fab Special Contract (December 2024) remains pending.
• Idaho Power will continue to actively monitor EPA proposals and any other pending or potential environmental regulations related to environmental matters.

Key Dates

Recommendation

IDACORP demonstrates consistent financial performance and strategic alignment with industry trends towards clean energy and infrastructure modernization. However, significant capital expenditure requirements, ongoing regulatory uncertainties, and the inherent risks of a highly regulated utility business warrant a 'Hold' recommendation. The dividend increase and strong customer growth are positive, but the substantial investment needs and potential for cost recovery lags or project delays introduce a degree of caution.

Keywords

Electric Utility, Energy Generation, Transmission, Distribution, Renewable Energy, Solar Power, Battery Storage, Natural Gas Generation, Hydropower, Rate Regulation, Capital Expenditures, Customer Growth, SEC Filing, 10-K, IDACORP, Idaho Power, Corporate Governance, Risk Management, Environmental Compliance, Dividend Policy, Forward Sale Agreements, Credit Facilities, Wildfire Mitigation, Decarbonization