IDACORP, Inc. (IDA): ANSOFF MATRIX [Dec-2025 Updated]

As a seasoned analyst, I can tell you that IDACORP, Inc. (IDA) isn't just planning for the future; they are aggressively funding it, evidenced by their massive $5.6 billion five-year capital expenditure forecast. You're looking at a utility making calculated moves across all four quadrants of the Ansoff Matrix, from maximizing current revenue by securing the requested $199 million rate increase to launching new revenue streams entirely outside the regulated space. We need to watch how they execute on key operational wins, like integrating the 167 MW natural gas plant expansion and capitalizing on the projected 8.3% retail sales growth from major industrial customers like Micron. Honestly, this strategic map shows a clear path for navigating near-term regulatory hurdles while building long-term optionality, so let's dive into the actionable steps driving each growth vector below.

IDACORP, Inc. (IDA) - Ansoff Matrix: Market Penetration

You're looking at maximizing returns within IDACORP, Inc. (IDA)'s existing service territory, which means pushing hard on current customer relationships and operational efficiency. This is about getting more revenue from the customers you already serve, which is often the safest growth path.

The immediate focus here is securing the full requested revenue uplift from the regulatory process. Idaho Power filed a general rate case with the Idaho Public Utilities Commission (IPUC) on May 30, 2025, requesting an overall rate increase of $\$199.1$ million, which translates to a $13.09\%$ jump overall. This filing specifically sought to recover costs for energy production and storage resources, grid investments, and wildfire resilience. To be fair, a subsequent settlement filed in October 2025 proposed cutting that annual revenue increase down to $\$110$ million. Still, the initial ask was significant, including a proposal to raise the residential service charge from $\$15$ to $\$25$. If approved as filed, the average residential customer using 900 kilowatt-hours per month would see a monthly bill increase of about $\$21.66$.

The growth story is heavily reliant on major industrial users. You need to capitalize on the massive demand from existing large industrial customers like Micron and Meta. The company's latest 2025 Integrated Resource Plan (IRP) projects a robust $8.3\%$ annual retail sales growth over the next five years, which is an increase from the $5.5\%$ projected in the 2023 IRP. This growth is directly tied to these large energy-intensive projects. The customer base itself is expanding, showing a $2.5\%$ year-over-year increase as of March 31, 2025, bringing the total to over 650,000 customers.

Here's a quick look at how the rate case breakdown relates to your existing customer segments:

Managing this load growth requires smart demand-side management. You must increase sales volume by promoting energy efficiency programs to manage demand while maintaining that load growth. The 2025 IRP explicitly shows the need to add significant energy efficiency resources alongside generation and storage. These programs are designed to minimize or delay the need to build new supply-side resources. For context, in 2024, energy efficiency programs saved $143,537$ megawatt-hours, which is enough power for $12,600$ average-sized homes for a year. The goal is for these programs to maintain a benefit/cost (B/C) ratio greater than $1.0$ under the utility cost test (UCT) in Idaho.

To combat regulatory lag, you need to ensure the mechanisms for cost recovery are working as intended. The 2025 General Rate Case filing specifically requested an incremental depreciation and interest tracking mechanism. This is crucial because, as seen in Q3 2025 results, higher depreciation and financing costs are already noted as offsetting some revenue benefits. On the plus side, the rate case from the prior year, which took effect January 1, 2025, already provided a $3.7\%$ increase in annual Idaho retail revenue, amounting to $\$50.6$ million.

Maintaining grid reliability is a core part of customer satisfaction, which directly impacts market penetration success. This is supported by the planned Capital Expenditure (CapEx) for the year. IDACORP maintained its 2025 CapEx forecast at $\$1.0$ to $\$1.1$ billion. This spending is part of a larger commitment, with the company intending to invest US$\$4$ billion between 2025 and 2029. The original $\$199.1$ million rate increase request specifically earmarked $\$53$ million for grid investments, including upgrading power lines and substations. The overall five-year capital plan from 2025 to 2029 is projected to total approximately $\$5.6$ billion.

You should review the expected impact of the rate case settlement on the $8.3\%$ annual retail sales growth forecast by Friday.

IDACORP, Inc. (IDA) - Ansoff Matrix: Market Development

Market Development for IDACORP, Inc. (IDA) centers on expanding the reach of existing regulated and non-regulated energy services into new geographic or customer segments. This strategy relies heavily on significant infrastructure investments to enable new power sales channels.

Leverage the new Boardman-to-Hemingway (B2H) transmission line to expand wholesale power sales into new regional markets.

• The Boardman-to-Hemingway project is targeted to break ground in the summer of 2025.
• The in-service date for the B2H line is expected no earlier than 2027.
• IDACORP's ownership interest in the Boardman-to-Hemingway project is approximately 45%.
• A long-term transmission service commitment for Bonneville Power Administration's customers across southern Idaho is included in the B2H agreement.

Target new commercial and industrial customers in the Oregon portion of the 24,000-square-mile service area.

IDACORP's regulated utility, Idaho Power, serves a 24,000-square-mile service area spanning Idaho and Oregon. The overall customer base grew by 2.6% in 2024, reaching over 650,000 customers by year-end 2024. By the second quarter of 2025, the customer base expanded to 659,000, representing a 2.5% year-over-year increase. This growth is supported by major commercial and industrial customers like Meta, Micron, and Chobani. The 2025 Integrated Resource Plan (IRP) projects an annual retail sales growth rate of 8.3% over the next five years, a notable increase from the 5.5% projected in the 2023 IRP.

Expand Ida-West Energy's small hydroelectric generation projects into adjacent, non-regulated Western states.

Ida-West Energy operates small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. Specific financial metrics or capacity additions related to Ida-West Energy's expansion into adjacent states were not detailed in the latest available reports.

Utilize the Southwest Intertie transmission line to access and sell power in new, high-demand Western Interconnection nodes.

• The Southwest Intertie Project-North (SWIP-North) is a 500-kilovolt line planned to run from eastern Nevada to Idaho Power's Midpoint Substation near Jerome, Idaho.
• SWIP-North is designed to enable Idaho Power to import up to 500 megawatts of power from south to north.
• Construction for SWIP-North is expected to begin as early as 2026 and take approximately two years to complete.
• The purpose of Idaho Power's ownership interest in SWIP-North is solely to import affordable power and enhance grid resiliency, not to sell energy to California or elsewhere.

Here's a quick look at the scale of IDACORP's operations and growth expectations supporting these market development efforts:

The company's average industrial and residential rates are noted to be 20% - 30% below the national average, which supports attracting new commercial load. Finance: draft 13-week cash view by Friday.

IDACORP, Inc. (IDA) - Ansoff Matrix: Product Development

You're looking at how IDACORP, Inc. (IDA) plans to develop new offerings to serve its rapidly growing customer base, which stood at 659,000 as of the second quarter of 2025.

Introduce new grid services using the planned 100 MW of battery storage capacity to offer peak-shaving and frequency regulation.

• Planned battery storage capacity for new services: 100 MW.
• Existing battery storage capacity: 908 MWh.
• Peak demand is projected to grow by nearly 45% over the next 20 years, with 1,700 MW of growth expected in total.
• The annual system peak is forecast to reach 4,949 MW by 2031.

Accelerate the Clean Energy Your Way (CEYW) program to offer 100% renewable energy options to more commercial customers.

• IDACORP, Inc.'s goal is 100% clean energy by 2045.
• CEYW Construction Option is available to Schedule 19 and Energy Service Agreement (Special Contract) customers.
• The CEYW program includes Renewable Energy Certificate (REC) Options with month-to-month or up to a one-year commitment.

Integrate the new 167 MW natural gas plant expansion to provide dispatchable capacity and firming services for intermittent renewables.

The Bennett Gas Expansion Project, a natural gas facility, will consist of nine reciprocating internal combustion engine units, providing up to 167 MW of generation, flexibly between 10 and 167 MW. The application for the Certificate of Public Convenience and Necessity (CPCN) was submitted on September 19, 2025.

Develop and market advanced smart-grid and demand-response programs to residential customers to manage the 45% peak demand surge.

The near-term growth in peak demand over the next five years is projected to be nearly 1,000 MW. The company's capital expenditure forecast for 2025 is $1.0 to $1.1 billion.

The 2025 earnings guidance range for diluted EPS is $5.80 - $5.90.

IDACORP, Inc. (IDA) - Ansoff Matrix: Diversification

You're looking at how IDACORP, Inc. (IDA) might push beyond its core regulated utility business, and the numbers show where the non-regulated pieces are already generating value.

Expand IDACORP Financial's investment portfolio beyond affordable housing into other real estate tax credit markets nationally.

IDACORP Financial is already active in real estate tax credits, specifically the Low-Income Housing Tax Credit (LIHTC) space. For the first nine months of 2025, the amortization of Additional Deferred Income Tax Credits (ADITCs) recorded under the Idaho regulatory stipulation was $39.0 million. This compares to $22.5 million recorded during the same period in 2024. The utility segment, Idaho Power, has an expectation to use between $50 million and $60 million of additional tax credits available under the Idaho regulatory mechanism in 2025.

The current structure includes IDACORP Financial as an investor in affordable housing and other real estate tax credit investments.

Form a non-regulated subsidiary to offer wildfire mitigation consulting services to other utilities, leveraging the new Idaho Wildfire Standard of Care Act.

The Idaho legislature established the Wildfire Standard of Care Act, which is set to take effect on July 1, 2025. This legislation requires electric corporations to adopt and file wildfire mitigation plans for commission approval, offering a rebuttable presumption of non-negligence if substantially complied with. The Idaho Public Utilities Commission (PUC) fiscal note estimated an ongoing cost of $182,800 for two additional Full Time Positions (FTPs) to manage this mandate.

Invest in non-utility infrastructure, such as fiber optic networks, along existing transmission rights-of-way for a new revenue stream.

IDACORP, Inc. has existing transmission rights-of-way across its service area, which covers 24,000 square miles in southern Idaho and eastern Oregon. In similar shared resource projects across the US, compensation for right-of-way access can include a fixed per-mile annual license fee, such as $1,600 per mile.

• Idaho Power service area: 24,000 square miles.
• Idaho Power customer base (as of Q3 2025): More than 650,000.
• Customer growth (12 months ended Sept 30, 2025): Approximately 15,000 new customers.

Acquire or develop small-scale, non-regulated distributed generation projects outside the current Idaho Power service territory.

IDACORP already operates Ida-West Energy, which is an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA). In 2024, IDACORP added nearly 200 megawatts (MW) of solar and battery storage to the system. The 2025 capital expenditure forecast for Idaho Power is between $1 billion and $1.1 billion.

Finance: draft 13-week cash view by Friday.