IDACORP, Inc. (IDA): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de los servicios públicos de energía, Idacorp, Inc. (IDA) se encuentra en la intersección de la innovación, la sostenibilidad y el crecimiento estratégico. Este análisis integral de la mano presenta los factores multifacéticos que dan forma al ecosistema operativo de la Compañía, revelando cómo el apoyo político, las tendencias económicas, los cambios sociales, los avances tecnológicos, los marcos legales y los compromisos ambientales convergen para definir el posicionamiento estratégico de IDACorp en el sector de servicios públicos de rápido evolución. Sumérgete en esta perspectiva exploración para comprender las complejas fuerzas que impulsan a uno de los proveedores de energía más influyentes de Idaho.

Idacorp, Inc. (IDA) - Análisis de mortero: factores políticos

Entorno regulatorio energético de Idaho

La Comisión de Servicios Públicos de Idaho (IPUC) regula las operaciones de servicios públicos de IDACORP. A partir de 2024, la comisión supervisa las estructuras de tarifas y las inversiones en infraestructura para Idaho Power Company.

Aspecto regulatorio	Estado actual	Impacto en Idacorp
Aprobación del caso de tarifas	Último aumento de la tasa aprobada: 3.2% en 2023	Apoya la estabilidad de los ingresos
Mandatos de energía renovable	Estándar de cartera renovable del 20% para 2030	Impulsa la inversión de infraestructura

Política estatal sobre desarrollo energético

El marco legislativo de Idaho apoya activamente las iniciativas de energía renovable.

• El proyecto de ley 1380 del Senado de Idaho proporciona incentivos fiscales para proyectos de energía limpia
• El estado ofrece exenciones de impuestos a la propiedad para la infraestructura de energía renovable
• Incentivos de modernización de la cuadrícula por un total de $ 45 millones asignados para 2024-2026

Potencial de inversión de infraestructura federal

La Ley de Inversión y Empleos de Infraestructura asigna fondos significativos para la infraestructura de transmisión.

Categoría de financiación federal	Asignación total	Beneficio potencial de idacorp
Modernización de la cuadrícula	$ 65 mil millones	Estimado de $ 12-15 millones para el poder de Idaho
Actualizaciones de la línea de transmisión	$ 20 mil millones	Financiación potencial de mejora de la infraestructura

Análisis de estabilidad política

Idaho mantiene un entorno político estable para operaciones de servicios públicos.

• Gobierno republicano constante desde 2006
• Soporte bipartidista para el desarrollo de la infraestructura energética
• Índice de volatilidad regulatoria baja: 2.1 de 10

Idacorp, Inc. (IDA) - Análisis de mortero: factores económicos

Demanda de electricidad constante en los crecientes centros de población de Idaho

Idaho Power, una subsidiaria de Idacorp, atiende a 560,000 clientes eléctricos en Idaho y Oregon. El crecimiento de la población en el territorio de servicio ha sido consistente, con Idaho experimentando un aumento de la población anual del 2.1% de 2020 a 2023.

Año	Crecimiento de la población	Nuevos clientes
2021	1.8%	8,750
2022	2.3%	9,200
2023	2.1%	9,450

Aumento del consumo de energía industrial y comercial

El consumo de energía en los territorios de servicio ha mostrado un crecimiento constante, con El uso del uso de electricidad del sector comercial en un 3,5% anual.

Sector	Consumo 2022 (MWH)	2023 Consumo (MWH)	Índice de crecimiento
Comercial	4,750,000	4,915,000	3.5%
Industrial	3,250,000	3,380,000	4.0%

Control de la tasa de interés baja que respalda la inversión de infraestructura

El gasto de capital de IDACORP para el desarrollo de infraestructura en 2023 alcanzó $ 325 millones, respaldado por condiciones de préstamo favorables.

Año	Tasa de interés	Gasto de capital
2021	3.2%	$ 290 millones
2022	3.8%	$ 310 millones
2023	4.5%	$ 325 millones

Diversificación económica regional

Las fuentes de ingresos de Idacorp se benefician de diversos sectores económicos en Idaho, incluida la agricultura, la tecnología y la fabricación.

Sector	2022 Contribución de ingresos	2023 Contribución de ingresos
Agricultura	22%	23%
Tecnología	18%	20%
Fabricación	15%	16%

Idacorp, Inc. (IDA) - Análisis de mortero: factores sociales

Creciente preferencia del consumidor por fuentes de energía limpia y sostenible

Según la Administración de Información de Energía de EE. UU., El consumo de energía renovable en Idaho alcanzó el 20.5% del consumo total de energía estatal en 2022. La potencia de Idaho de Idacorp informó el 54% de su cartera de energía de fuentes libres de carbono en 2023.

Fuente de energía renovable	Porcentaje en la cartera de Idaho Power	Generación anual (MWH)
Hidroeléctrico	45%	4,200,000
Viento	9%	850,000

Aumento de la conciencia de los impactos del cambio climático entre la base de clientes

Una encuesta de 2023 realizada por la Comisión de Servicios Públicos de Idaho reveló que el 68% de los clientes residenciales priorizan a los proveedores de energía ambientalmente responsables.

Segmento de clientes	Nivel de preocupación del cambio climático	Voluntad de pagar la prima
Residencial	68%	$ 5-10/mes
Comercial	72%	$ 50-100/mes

Cambios demográficos rurales y urbanos que influyen en los patrones de consumo de energía

La tasa de crecimiento de la población de Idaho fue del 2.1% en 2022, con áreas urbanas que se expanden más rápido que las regiones rurales. El área de servicio de IDACORP experimentó un crecimiento de la base de clientes de 1.8% en el mismo período.

Región	Crecimiento de la población	Cambio de consumo de energía
Área metropolitana de Boise	3.2%	+2.5%
Condados rurales de Idaho	0.9%	+0.7%

Expectativas de la comunidad para la responsabilidad social corporativa y la administración ambiental

IDACORP invirtió $ 42.3 millones en programas ambientales y desarrollo comunitario en 2023. La Compañía logró una calificación de 4.2/5 en evaluaciones locales de responsabilidad social corporativa.

Categoría de inversión de CSR	Gasto anual	Impacto de la comunidad
Programas ambientales	$ 24.5 millones	Reducido 95,000 toneladas métricas CO2
Desarrollo comunitario	$ 17.8 millones	Apoyó 150 iniciativas locales

Idacorp, Inc. (IDA) - Análisis de mortero: factores tecnológicos

Modernización de la red avanzada e implementación de medidores inteligentes

La subsidiaria de Power de Idaho de IDACORP invirtió $ 114.5 millones en iniciativas de modernización de la red en 2022. La compañía desplegó 197,000 medidores de infraestructura de medición avanzada (AMI) en su territorio de servicio.

Métrico	Valor 2022	2023 proyectado
Inversión de modernización de la cuadrícula	$ 114.5 millones	$ 126.7 millones
Medidores inteligentes desplegados	197,000	235,000
Mejora de la confiabilidad de la cuadrícula	99.97%	99.98%

Integración creciente de tecnologías de energía renovable

IDACORP se ha comprometido a una integración del 100% de energía renovable para 2045. La cartera actual de energía renovable es del 41% de la capacidad de generación total.

Fuente de energía renovable	Capacidad actual (MW)	Expansión planificada (MW)
Solar	285 MW	450 MW
Viento	367 MW	525 MW
Hidroeléctrico	513 MW	540 MW

Inversiones de ciberseguridad para proteger la infraestructura crítica

IDACORP asignó $ 22.3 millones específicamente para la protección contra la infraestructura de ciberseguridad en 2022. La compañía mantiene Certificación ISO 27001 para la gestión de seguridad de la información.

Métrica de ciberseguridad	Valor 2022	2023 inversión planificada
Presupuesto de ciberseguridad	$ 22.3 millones	$ 26.5 millones
Tiempo de respuesta a incidentes de seguridad	24 minutos	18 minutos
Horas de entrenamiento de ciberseguridad	4.500 horas	5,200 horas

Desarrollo de infraestructura de carga de vehículos eléctricos emergentes

Idacorp ha invertido $ 8.7 millones en infraestructura de carga de vehículos eléctricos, con 127 estaciones de carga pública desplegadas en Idaho y Oregon.

Métrica de infraestructura de carga EV	Valor 2022	2024 proyección
Inversión total	$ 8.7 millones	$ 15.2 millones
Estaciones de carga pública	127	215
Sesiones anuales de carga EV	42,500	78,000

IDACORP, Inc. (IDA) - Análisis de mortero: factores legales

Cumplimiento de las pautas de la Comisión Reguladora de Energía Federal (FERC)

Idacorp's Idaho Power Company posee 9 licencias hidroeléctricas de FERC cubriendo múltiples instalaciones de generación de energía. La capacidad de generación hidroeléctrica con licencia total es de 1.153 megavatios en estas instalaciones.

Categoría de licencia FERC	Número de licencias	Capacidad total (MW)
Instalaciones hidroeléctricas	9	1,153

Adherencia a la regulación de servicios públicos a nivel estatal en Idaho y Oregon

IDACORP opera bajo marcos regulatorios de dos comisiones estatales de servicios públicos:

Estado	Cuerpo regulador	Auditorías de cumplimiento anuales
Idaho	Comisión de servicios públicos de Idaho	2
Oregón	Comisión de servicios públicos de Oregon	2

Cumplimiento de la regulación ambiental para las instalaciones de generación de energía

El cumplimiento ambiental de Idacorp implica la reunión Acto de aire limpio y Acto de agua limpia Requisitos en su cartera de generación.

Regulación ambiental	Métrico de cumplimiento	Inversión anual
Cumplimiento de la Ley de Aire Limpio	100% de estándares de emisión cumplidos	$ 12.4 millones
Cumplimiento de la Ley de Agua Limpia	Cero violaciones importantes	$ 8.7 millones

Marcos legales en curso que respaldan las transiciones de energía renovable

IDACORP se ha comprometido con importantes inversiones de energía renovable:

Tipo de energía renovable	Capacidad actual (MW)	Inversión planificada
Energía eólica	354	$ 215 millones
Energía solar	87	$ 95 millones

IDACORP, Inc. (IDA) - Análisis de mortero: factores ambientales

Compromiso de reducir las emisiones de carbono en la generación de energía

La subsidiaria de IDACORP, Idaho Power Company, se ha dirigido 53% de generación de electricidad sin carbono para 2030. A partir de 2023, la mezcla de generación libre de carbono actual de la compañía incluye:

Fuente de energía	Porcentaje
Energía hidroeléctrica	43%
Energía eólica	8%
Energía solar	2%

Inversión en proyectos de energía renovable eólica y solar

Idacorp se ha comprometido $ 350 millones en inversiones de infraestructura de energía renovable hasta 2025. Los detalles actuales del proyecto de energía renovable incluyen:

Nombre del proyecto	Capacidad (MW)	Finalización esperada
Proyecto de viento de Jackpot	120	2024
Granja solar del valle del tesoro	75	2025

Estrategias de conservación del agua para operaciones hidroeléctricas

Funciona el poder de Idaho 17 instalaciones hidroeléctricas con capacidad de generación total de 1.071 megavatios. Las métricas de conservación del agua incluyen:

• Objetivo anual de mejora de la eficiencia del agua: 3.5%
• Inversión de gestión de cuencas: $ 4.2 millones anuales
• Presupuesto de restauración del hábitat de pescado: $ 1.7 millones por año

Informes e iniciativas proactivas de sostenibilidad ambiental

El informe de sostenibilidad ambiental 2023 de IDACORP resalta:

Métrico	Actuación
Reducción de emisiones de gases de efecto invernadero	38% desde 2005
Tasa de reciclaje de residuos	62%
Gasto de cumplimiento ambiental	$ 12.5 millones

IDACORP, Inc. (IDA) - PESTLE Analysis: Social factors

High customer growth in the service territory, particularly around Boise, strains existing infrastructure.

You've seen the headlines about Idaho's population boom, and it's defintely hitting IDACORP's subsidiary, Idaho Power, hard. The company's customer base expanded by approximately 15,000, or 2.3%, during the twelve months ended September 30, 2025.

This isn't just residential growth; it's massive industrial load (electricity use) from projects like Micron's two-fab expansion in Boise and Meta's new data center in Kuna. Idaho Power's 2025 Integrated Resource Plan (IRP) now projects a staggering 8.3% annual retail sales growth over the next five years. That's very fast for a regulated utility.

This rapid growth is why IDACORP's capital expenditure (CapEx) plan for 2025 is substantial, projected to be between $1.0 and $1.1 billion. Here's the quick math: peak energy demand is expected to jump by 1,700 megawatts (MW) over the next 20 years, with nearly 1,000 MW of that increase coming in the next five years alone. That demand requires significant, immediate infrastructure investment to maintain reliability.

Increasing public demand for renewable energy and decarbonization drives investment decisions.

The public pressure for cleaner energy is real, and IDACORP is responding, though the path is complex. The company has a long-term goal of providing 100% clean energy by 2045. Right now, about 69% of the energy from all sources is derived from clean sources, primarily its extensive hydropower fleet.

The company's 2025-2029 IRP reflects this shift, allocating $5.6 billion in capital expenditures, which focuses heavily on transmission, battery storage, and modernizing existing hydropower. Still, the immediate need for reliable power to meet the demand surge has forced some tough choices. For example, Idaho Power terminated its proposed 600 MW Jackalope wind project and is instead shifting toward a 167 MW expansion of the Bennett Mountain gas plant. This highlights the tension between public decarbonization goals and the utility's core mandate of system reliability during a period of unprecedented load growth.

Workforce demographics require strategic hiring to replace retiring skilled utility workers.

The utility sector faces a looming demographic challenge-the aging of its highly skilled workforce. Idaho Power currently employs approximately 2,100 people. Across Idaho, the population aged 55 and older in rural counties, where much of the transmission and generation infrastructure is located, is projected to swell to 40.8% by 2025.

This aging trend means a steady stream of retirements for specialized roles like lineworkers and engineers, creating a critical need for strategic talent acquisition and retention. To address this, the company's recent rate case filing included a request for $20 million specifically for labor costs, aimed at hiring additional employees and retaining the skilled workforce required to serve the growing region. They are using programs like paid apprenticeships and a company-paid pension plan to help attract new talent to these essential, high-skill roles.

Customer affordability concerns are rising due to general rate increases needed for system upgrades.

The cost of all this necessary infrastructure investment is ultimately passed to the customer, leading to rising affordability concerns. Idaho Power's rates are currently competitive, sitting 20% to 30% lower than the national average, but that is changing fast.

In May 2025, Idaho Power filed a general rate case requesting an overall rate increase of $199.1 million, representing a 13.09% jump. If approved, this new rate would take effect in January 2026 and would increase the monthly bill for an average Idaho residential customer (using 900 kilowatt-hours) by about $21.66. This is a significant jump for household budgets.

The rate increase is tied directly to system upgrades and includes key allocations:

• $73 million for energy production and storage resources.
• $53 million for grid investments and infrastructure upgrades.
• $25 million for wildfire resilience and prevention.

The company also offers assistance programs like Project Share to help customers manage the impact of these increases.

Customer Class	Proposed Rate Increase (Overall %)	Estimated Monthly Bill Impact (Residential)	Rate Case Filing Date
Idaho Customers (Overall)	13.09% ($199.1 million)	N/A	May 2025
Average Idaho Residential (900 kWh/month)	N/A	$21.66/month increase	May 2025
Residential Service Charge (Proposed Change)	N/A	Increase from $15 to $25	May 2025

IDACORP, Inc. (IDA) - PESTLE Analysis: Technological factors

Smart grid deployment, including advanced metering infrastructure (AMI), is essential for efficiency.

IDACORP's core utility, Idaho Power, has largely completed its initial deployment of Advanced Metering Infrastructure (AMI), or smart meters, which is foundational to the modern grid. Now, the focus shifts to leveraging the massive data stream for operational efficiency and grid reliability, which is a key component of the company's capital plan.

For the 2025 fiscal year, IDACORP is planning significant capital expenditure (CapEx) in the range of $1.0 to $1.1 billion, with a substantial portion dedicated to transmission and distribution infrastructure upgrades, including grid investments. This investment is critical to manage the projected 8.3% annual retail sales growth over the next five years, which is a sharp increase from the 5.5% projected in the 2023 Integrated Resource Plan (IRP). That's a huge jump in demand we have to manage.

The company's grid modernization efforts are currently centered on:

• Integrating AMI data to enhance load forecasting and system planning.
• Building major transmission lines like the Boardman-to-Hemingway project, a 500-kilovolt line, which is expected to break ground in the summer of 2025.
• Investing in distribution automation to reduce outage times and improve the quality of service for a rapidly growing customer base.

Battery storage technology is key to firming up intermittent solar and wind resources.

The need for utility-scale battery storage is no longer theoretical; it's an immediate operational requirement to firm up intermittent renewable energy sources like solar and wind. The 2025 Integrated Resource Plan (IRP) filed in mid-2025 is clear that battery storage is a core component of meeting Idaho Power's energy needs.

The plan for the 2025 fiscal year includes adding 230 MW of Battery Energy Storage System (BESS) capacity to the system. This breaks down into 80 MW of BESS that the company will own and 150 MW of BESS capacity secured through contracts. A concrete example of this investment is the Boise Bench BESS project, which has a planned capacity of 150 MW and secured $323 million in financing, with a 20-year agreement with Idaho Power. This is how you stabilize a system with high renewable penetration.

Resource Addition Type (2025 IRP)	Capacity (Megawatts)	Status
Owned Battery Energy Storage System (BESS)	80 MW	Planned for 2025
Contracted Battery Energy Storage System (BESS)	150 MW	Planned for 2025
Contracted Solar Capacity	200 MW	Planned for 2025

Cybersecurity spending is defintely increasing to protect critical operational technology (OT) systems.

Cybersecurity is a non-negotiable cost of doing business, especially for critical infrastructure like the power grid. IDACORP and Idaho Power explicitly include cybersecurity threats in their enterprise risk assessment process, utilizing recognized standards from the Center for Internet Security and the U.S. National Institute of Standards and Technology (NIST).

While specific budget figures for Operational Technology (OT) security-the systems that run the grid itself-are proprietary, the industry trend is a major driver of CapEx. Industrial sectors, including energy, saw a 46% surge in ransomware attacks in early 2025, according to industry reports, which forces a strategic shift in spending. The focus is moving away from just IT defense to securing the Industrial Control Systems (ICS) that manage power generation and distribution, which is a huge lift because those legacy systems weren't built with modern security in mind.

Digital transformation of customer service reduces operational costs and improves billing accuracy.

The digital transformation of customer service is about using technology to manage growth and contain costs, even as overall Operations and Maintenance (O&M) expenses remain high. Idaho Power's full-year O&M costs are expected to be between $470-$480 million for 2025, so finding efficiencies through digital channels is key.

The existing AMI infrastructure provides the data backbone for this transformation. The deployment included a customer web portal that gives customers access to their hourly energy consumption data, which supports voluntary time-of-use rates and helps manage peak load. Plus, the My Account Mobile App provides a self-service channel, which reduces the cost-to-serve for routine inquiries and improves billing accuracy, which is a win-win for the utility and the customer.

IDACORP, Inc. (IDA) - PESTLE Analysis: Legal factors

Compliance with Federal Energy Regulatory Commission (FERC) rules on transmission and wholesale power markets

The Federal Energy Regulatory Commission (FERC) is the primary federal legal body governing IDACORP's wholesale power and transmission operations, and compliance here is defintely a core operational risk. Idaho Power, the utility subsidiary, faced a significant legal challenge in 2025 when FERC issued a show cause order in July 2025 (Docket No. EL26-2-000).

This order questioned the company's ability to maintain a rebuttable presumption of horizontal market power in its Balancing Authority Area (BAA). While the formal record is still developing, this kind of action can threaten market-based rate authority, which is crucial for maximizing wholesale power sales revenue. It forces a rigorous legal defense and potential operational restructuring.

Also, the need for major transmission infrastructure, like the 500-kilovolt Boardman to Hemingway (B2H) line, keeps the company in constant regulatory dialogue with FERC.

Water rights and dam relicensing processes are complex, long-term legal and operational risks

Water rights and the relicensing of the Hells Canyon Complex (HCC) are IDACORP's most significant long-term legal risks, simply because the HCC provides about 70% of Idaho Power's total hydro generation. The original license expired back in July 2005, and we are still waiting for the new one, operating on annual licenses in the interim.

The regulatory timeline is now clearer for the near term. In April 2025, FERC updated the schedule for the supplemental Environmental Impact Statement (EIS), pushing the final supplemental EIS issuance to no later than May 2026. This means the multi-year legal and technical process is nearing a critical phase, and a new license will mandate costly compliance and mitigation measures.

The foundational legal framework for water usage is the Swan Falls Agreement, which sets minimum flows for the Snake River. For example, Idaho Power retains the right to use water above the minimum flow of 3,900 cubic feet per second (cfs) during the irrigation season for hydroelectric generation.

Here's the quick math on the Hells Canyon Complex relicensing timeline:

• Original License Expiration: July 2005
• FERC Draft Supplemental EIS Target: September 2025
• FERC Final Supplemental EIS Target: May 2026
• Hydro Generation at Risk (HCC Share): ~70% of total hydro

Environmental permitting for new generation and transmission lines is a significant hurdle

The legal process of obtaining environmental permits (siting and permitting) for new infrastructure is a major bottleneck for IDACORP's growth strategy. The 2025 Integrated Resource Plan (IRP) calls for nearly 1,000 MW of new capacity in the next five years, and every single project carries this qualitative risk.

The B2H transmission project, a key element for reliability and import capacity, illustrates the complexity. The siting process started in 2010, and while the Oregon Supreme Court upheld the Site Certificate in March 2023, the company is only now hoping to finalize permitting and break ground in 2025. This 15-year timeline is a stark reminder of the legal and environmental gauntlet all major projects must run.

The legal risk here is not just denial, but protracted delays that inflate capital expenditure costs and push back the in-service dates.

State-level legislation on integrated resource planning (IRP) dictates future power mix

State legislation, particularly in Idaho and Oregon, dictates the future resource mix through the Integrated Resource Planning (IRP) process. Idaho Power filed its 2025 IRP with the Idaho Public Utilities Commission (IPUC) and the Oregon Public Utility Commission in July 2025. This plan, which is subject to regulatory acknowledgment, forecasts peak demand growth of nearly 45% or 1,700 MW over the next 20 years, legally committing the company to a massive buildout.

A critical new piece of Idaho state legislation is the Wildfire Standard of Care Act, signed into law earlier in 2025. This law helps mitigate liability by assuming a utility is acting without negligence if it adheres to a commission-approved Wildfire Mitigation Plan (WMP). Idaho Power filed its 2026 WMP in October 2025, a clear action to align with the new legal standard.

The regulatory environment also directly impacts the balance sheet. For 2025, IDACORP expects to use between $50 million and $60 million of additional tax credits available under the Idaho regulatory mechanism, a direct financial benefit tied to state regulatory decisions.

Regulatory/Legal Factor	Governing Body	2025 Status/Impact
Market-Based Rate Authority	FERC	Show Cause Order issued July 2025 (Docket No. EL26-2-000) on horizontal market power.
Hells Canyon Complex Relicensing	FERC	Final Supplemental EIS expected May 2026; HCC is ~70% of hydro generation.
B2H Transmission Permitting	Federal/State Agencies	Hoping to finalize permits and break ground in 2025 for the 500-kilovolt line.
Wildfire Standard of Care	Idaho State Legislature/IPUC	New law enacted in 2025; 2026 WMP filed Oct 2025 to gain legal protection.
Regulatory Tax Credit Mechanism	IPUC	Expected use of $50 million to $60 million in additional tax credits in 2025.

IDACORP, Inc. (IDA) - PESTLE Analysis: Environmental factors

Commitment to 100% clean energy by 2045 requires massive, sustained capital investment.

Your long-term strategy is anchored by the commitment to provide 100% clean energy by 2045, but this goal demands an unprecedented level of capital investment (CapEx) in the near term. For the 2025 fiscal year alone, IDACORP is planning CapEx between $1.0 billion and $1.1 billion to support this transition and meet rapid load growth. That's a huge number to manage.

Looking slightly further out, the 2025-2029 Integrated Resource Plan (IRP) allocates a total of $5.6 billion toward grid modernization, transmission upgrades, and new clean generation. This capital intensity is necessary to build out the required infrastructure, including projects like the Boardman to Hemingway transmission line, which broke ground in June 2025. For 2025, specific clean energy additions include:

• Add 80 MW of Battery Energy Storage System (BESS).
• Add 150 MW of BESS.
• Add 200 MW of Solar capacity.

Here's the quick math: The five-year CapEx plan of $5.6 billion is a massive undertaking, and funding it requires leveraging debt, which stood at $3.45 billion in Q2 2025. What this estimate hides is the regulatory risk of getting timely approval for such large-scale project costs.

Drought conditions in the Northwest impact hydroelectric generation output and revenue.

The company's energy mix is heavily reliant on its 17 low-cost hydropower projects, which is a clean foundation but also a major vulnerability to climate variability, specifically drought in the Pacific Northwest. While the 2025 full-year earnings guidance assumes normal weather conditions, the expected hydropower generation for 2025 is forecast to be in the range of 7.0-8.0 million megawatt-hours (MWh). This is a critical metric because any reduction here forces the purchase of more expensive market power, directly impacting your power supply expenses.

We saw a clear example of this weather-to-revenue link in the third quarter of 2025. Higher precipitation actually decreased operating income by $5.7 million because irrigation customers used less energy for pumping water. This highlights the dual risk: low water means higher power purchase costs, and high water can mean lower sales volume to key agricultural customers. The table below shows the recent shift in the 2025 hydropower forecast:

Forecast Date	2025 Hydropower Generation Range (million MWh)
February 2025	6.5 - 8.5
July 2025	7.0 - 8.0

The core issue is that the long-term climate models for the Pacific Northwest suggest shifts in the natural hydrograph, which could ultimately impact hydropower production on Idaho Power's system. You defintely need to keep a close eye on the snowpack reports.

Wildfire mitigation efforts, including vegetation management, are a growing operational expense.

Wildfire risk, driven by climate change and dry conditions, is a growing operational expense (O&M) that is directly hitting your bottom line. The company has a robust Wildfire Mitigation Plan, which includes vegetation management and system hardening. This isn't just a safety measure; it's a significant financial line item.

In the first quarter of 2025, Other O&M expenses increased by approximately $3.2 million compared to the same period in 2024, partly due to an increase in wildfire mitigation program and related insurance expenses. This trend continued, with Q3 2025 O&M expenses being $4.2 million higher than Q3 2024, again citing wildfire mitigation as a driver. The full-year O&M expense expectation has been raised to a range of $470 million to $480 million for 2025, reflecting this added work.

The company is also investing in technology, with a five-year cost estimate (2025-2029) of approximately $11.8 million for quantifying wildland fire risk, including software and consultant services for vegetation risk assessment. This is a non-negotiable cost of doing business in the Northwest now.

Managing carbon emissions from existing natural gas plants is a long-term regulatory challenge.

While IDACORP is transitioning to clean energy, the continued operation of existing natural gas plants and the planned conversion of coal-fired units to natural gas create a significant long-term emissions challenge. Your short-term target is to reduce CO2 intensity by 35% by 2025, using a 2005 baseline. However, this intensity-based goal is criticized for not aligning with the 1.5° C global goal, which requires absolute emissions reductions.

The 2025 IRP still includes a mix of natural gas generation to ensure reliability as intermittent renewables (like wind and solar) are added. This reliance on fossil fuels is a known risk. The regulatory environment is shifting, with the Inflation Reduction Act (IRA) offering incentives like the expanded 45Q carbon capture and sequestration (CCS) tax credits. This means the long-term strategy for these natural gas assets will likely involve expensive retrofits or early retirement to meet future, stricter absolute emissions standards.

The key action here is to integrate the value of these new federal tax credits into the financial models for the gas plants. Finance: Draft a 10-year cash flow model for natural gas assets by Friday, incorporating the 45Q tax credits.