IDACORP, Inc. (IDA): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect the business model of IDACORP, Inc. (IDA), and honestly, for a regulated utility, it's less about flashy sales and more about predictable, massive infrastructure investment. We see a model built on stability, where the core value is delivering highly reliable electricity-with a 99.97% uptime-while managing a huge capital program, targeting $1.0-$1.1 billion in 2025 spending to modernize the grid. This regulated monopoly structure underpins their revenue, which is guiding toward a FY 2025 diluted EPS between $5.80 to $5.90, so you need to see how the key partnerships and cost structure support this regulated growth engine; check out the full nine-block canvas breakdown below to see the mechanics.

IDACORP, Inc. (IDA) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships IDACORP, Inc. relies on to keep the lights on and grow its business as of late 2025. These partnerships are critical for regulatory certainty, fuel supply, and resource acquisition.

State Public Utility Commissions (IPUC, OPUC) for Rate Approval

The relationship with the Idaho Public Utilities Commission (IPUC) and the Oregon Public Utility Commission (OPUC) is foundational, as they govern the revenue IDACORP, Inc. can earn from its primary subsidiary, Idaho Power.

The 2024 Idaho Limited-Issue Rate Case, finalized by IPUC order in December 2024, resulted in an overall increase in Idaho base rates effective January 1, 2025, which benefited IDACORP, Inc.'s first quarter 2025 net income by $11.3 million. Furthermore, IDACORP, Inc. is building on this regulatory foundation.

In May 2025, Idaho Power filed a general rate case settlement with the IPUC, seeking significant changes:

Also, as of October 30, 2025, the IPUC's decision on the Wildfire Standard of Care Act filing, submitted on October 10, 2025, was pending.

Independent Power Producers (IPPs) for Long-Term Renewable Energy Contracts

IDACORP, Inc. secures long-term energy through contracts, which are a key part of meeting the resource needs outlined in the 2025 Integrated Resource Plan (IRP). The 2023 energy mix showed that 17.5% of energy came from long-term purchases of wind, solar, and other renewable resources.

Recent contractual additions focus heavily on storage and summer capacity:

• Acquisition of 200 MW battery storage assets in July 2024, increasing contractual purchase obligations by approximately $156.8 million.
• Agreement for 200 MW energy and capacity market purchase during summer months, starting June 2026, with obligations of about $84.3 million over five years.

The 2025 IRP preferred portfolio shows planned resource additions through 2026, which will be sourced via these types of partnerships:

It's a lot of capacity coming online, so you'll want to track the execution risk on these builds. That's just how utility planning works.

Federal Energy Regulatory Commission (FERC) for Transmission Regulation

The Federal Energy Regulatory Commission (FERC) governs interstate transmission, which is vital for IDACORP, Inc.'s ability to procure energy and manage its grid, especially with projects like the Boardman to Hemingway (B2H) transmission line in the pipeline. Decisions or actions by FERC are explicitly listed as a factor that impacts Idaho Power's ability to recover costs and earn a return on investment.

While specific 2025 financial figures directly tied to FERC's transmission approval process aren't explicitly detailed here, the regulatory framework is a constant consideration in capital expenditure planning, which is expected to be around $4 billion over five years leading up to 2028.

Bridger Coal Company Joint Venture for Fuel Supply

IDACORP, Inc.'s subsidiary, Idaho Power, has an interest in the Bridger Coal Company, which is noted as a jointly-owned investment of IERCo.. This partnership is a source of coal supply for generation assets. The risk of disruptions or defaults by coal and natural gas suppliers is a noted factor that could force Idaho Power to seek alternative, potentially more costly, fuel sources.

Integrated Resource Plan Advisory Council (IRPAC) for Public Input

The IRPAC, or IRP Advisory Council, is a recognized entity within the IDACORP, Inc. planning structure, listed in the glossary of the 2025 Integrated Resource Plan. The 2025 IRP, filed in July 2025, requires public review and comment schedules to be set by the IPUC and OPUC before the plan is acknowledged. This council provides the structured public and stakeholder input into the utility's long-range resource strategy.

IDACORP, Inc. (IDA) - Canvas Business Model: Key Activities

You're looking at the core engine of IDACORP, Inc. (IDA) right now-the day-to-day work that keeps the lights on and builds the future grid. This is where the capital gets deployed and regulatory battles are fought to secure the returns on those investments.

Electricity generation, transmission, and distribution.

IDACORP, Inc. engages in the generation, transmission, distribution, purchase, and sale of electric energy across its service area. The company manages a diverse generation fleet:

• Managing 17 hydropower generating plants located in southern Idaho and eastern Oregon.
• Operating three natural gas-fired plants in southern Idaho.
• Holding interests in two coal-fired steam electric generating plants located in Wyoming and Nevada.

The company has a stated plan to convert all remaining coal units to natural gas by the year 2030. For the full year 2025, the expected hydropower generation guidance range is 6.5 - 7.0 million megawatt-hours (MWh).

Executing a major capital program of $1.0-$1.1 billion in 2025.

IDACORP, Inc. is actively executing significant capital investments to support growth and reliability. The capital expenditure forecast for 2025 was set between $1.0 billion and $1.1 billion. This is part of a larger, multi-year investment strategy.

The customer base for Idaho Power grew by approximately 15,000 customers, or 2.3 percent, during the twelve months ended September 30, 2025.

Regulatory engagement, including the 2025 Idaho General Rate Case.

Regulatory activity is a key function, especially following the filing of the 2025 Idaho General Rate Case. Idaho Power filed this case on May 30, 2025, initially requesting an overall annual revenue increase of approximately $199.1 million. A settlement stipulation was reached on October 24, 2025, which is now pending approval by the Idaho Public Utilities Commission (IPUC).

The settlement proposes new rates to increase annual Idaho-jurisdictional retail revenue by about $110 million, which represents a 7.48% rise, with an expected effective date of January 1, 2026.

IDACORP increased its full-year 2025 earnings guidance to the range of $5.80 to $5.90 per diluted share as of October 30, 2025.

Grid modernization and wildfire mitigation work.

Capital investments are directed toward growth, reliability, and system hardening. The regulatory settlement specifically addresses wildfire mitigation costs.

• Wildfire mitigation costs are subject to continued deferral through the earlier of the next general rate case or 2027.
• The company has a robust Wildfire Mitigation Plan in place, including Public Safety Power Shutoff protocols.
• Higher operations and maintenance (O&M) expenses in Q2 2025 included some wildfire mitigation program and related insurance expenses.

The 2025 Integrated Resource Plan shows planned additions including 200 MW Solar and 150 MW BESS (Battery Energy Storage System) for 2025.

Managing 17 hydroelectric projects and a diverse energy mix.

The core of IDACORP, Inc.'s generation strategy relies on its hydroelectric assets, which number 17 facilities. The company is focused on resource procurement to meet projected growth, with peak demand expected to grow nearly 45% or 1,700 megawatts (MW) over the next 20 years.

The 2025 Integrated Resource Plan forecasts that the next five years will require nearly 1,000 MW of new capacity, which is nearly 50% more than the capacity of the Brownlee hydropower plant, the company's single largest source.

IDACORP, Inc. (IDA) - Canvas Business Model: Key Resources

You're looking at the core assets IDACORP, Inc. (IDA) relies on to power its operations, primarily through its main subsidiary, Idaho Power Company. These aren't just abstract concepts; they are tangible assets and critical human expertise that underpin the regulated utility business. As of late 2025, the company's operational backbone is supported by its extensive physical network and significant regulated investment base. The company's approximately 2,100 employees proudly serve more than 650,000 customers across a 24,000-square-mile service area in Idaho and Oregon.

The regulated utility structure means a significant portion of the company's value is tied up in its authorized assets. For instance, the Idaho-jurisdictional rate base, which is the value upon which Idaho Power is authorized to earn a return, was approximately $3.8 billion based on filings related to the 2023 general rate case. This asset base is constantly growing as the company invests heavily to meet demand; capital expenditures for 2025 were guided to be between $1,000 million and $1,100 million, excluding Allowance for Funds Used During Construction (AFUDC).

Here's a quick look at some of the most concrete, quantifiable Key Resources:

The generation fleet itself is a primary asset, heavily weighted toward low-cost, clean resources. This is a key competitive advantage, especially with the goal of being 100% renewable by 2045.

• Regulated asset base (rate base) of Idaho Power Company: Authorized investment base supporting utility operations, with the Idaho portion reported near $3.8 billion in prior filings.
• Extensive transmission and distribution infrastructure: The physical grid serving over 650,000 customers, including major planned upgrades like the 500-kilovolt Boardman to Hemingway and Southwest Intertie projects.
• 17 company-owned hydroelectric generation facilities: These facilities on the Snake River and its tributaries form the backbone of Idaho Power's generation mix.
• Human capital: Over 2,100 employees dedicated to operations, safety, and customer service.
• IDACORP Financial's non-utility tax credit investments: This subsidiary holds assets like affordable housing projects, and the parent company expects to utilize between $50 million and $60 million of associated additional tax credits in fiscal year 2025.

Also, remember that the company's generation mix in 2023 relied on hydropower for 36.8% of its energy, making those 17 hydro projects a truly vital, low-cost resource. Finance: draft 13-week cash view by Friday.

IDACORP, Inc. (IDA) - Canvas Business Model: Value Propositions

You're looking at what IDACORP, Inc. (IDA) promises its customers and the market, which is built on a foundation of operational excellence and regional growth. The core value proposition centers on delivering power you can count on, at a price that stays competitive.

For reliability, IDACORP, Inc. points to its operational history, where its employees helped keep customers' lights on 99.97% of the time, based on the last reported metric from 2023, which underpins their current service promise. This focus on uptime is critical, especially as they invest heavily to meet accelerating demand.

Affordability is a major draw. Idaho Power's residential, business, and agricultural customers pay among the nation's lowest prices for electricity. Specifically, IDACORP's customer rates are positioned as being 20% - 30% below the national average, using data from January 1, 2025.

The commitment to a cleaner future is clear, though it's a transition. The long-term emission goal is 100% clean energy by 2045. As of early 2025, approximately 69% of the energy from all sources derived from clean sources, anchored by 17 low-cost hydropower projects. You should note the plan includes exiting from coal by the end of 2030.

The service area itself is a value driver. IDACORP, Inc. provides stable, regulated utility service in a high-growth region. As of the second quarter of 2025, the customer base stood at 659,000, reflecting a 2.5% year-over-year expansion. This growth is expected to continue, with the 2025 Integrated Resource Plan (IRP) projecting an 8.3% annual retail sales growth rate over the next five years.

Here's a quick look at the growth metrics supporting that stable, regulated service proposition:

Finally, IDACORP, Inc. offers programs designed to help you manage your usage. The utility's 2025 IRP explicitly shows the need to add significant energy efficiency resources to meet future demand.

The value propositions you should track are:

• Achieving reliability near 99.97% uptime.
• Maintaining rates 20% - 30% below the national average.
• Progress toward the 100% clean energy goal by 2045.
• Serving a customer base growing at 2.5% year-over-year.
• Incorporating energy efficiency into resource planning.

Finance: draft 13-week cash view by Friday.

IDACORP, Inc. (IDA) - Canvas Business Model: Customer Relationships

IDACORP, Inc. operates under a regulated monopoly relationship through its primary subsidiary, Idaho Power, guaranteeing service within its defined territory. This relationship is underpinned by the utility's commitment to affordability; Idaho Power customers pay prices that are 20% to 30% lower than the national average, based on historical context.

The utility is experiencing significant growth, which directly impacts customer relationship management and infrastructure planning. As of the twelve months ended September 30, 2025, the number of Idaho Power customers grew by approximately 15,000, representing a 2.3 percent increase year-over-year. This growth contributed positively to operating income by $7.8 million in the third quarter of 2025 compared to the third quarter of 2024. For the first nine months of 2025, customer growth increased operating income by $19.6 million compared to the same period in 2024. The overall customer base is now well over 650,000.

Customer-centric initiatives are supported through digital tools and call centers, reflecting a commitment to enhancing customer satisfaction. While specific 2025 digital adoption metrics aren't explicitly detailed, the company's focus on infrastructure upgrades is intended to improve service delivery and reliability, which was maintained at 99.96% in 2024.

Demand-side management and energy efficiency program support are integrated into resource planning. For example, in 2024, the Home Energy Reports program reached approximately 44,161 customers. Energy efficiency investments in 2024 resulted in an estimated 16,000 megawatt hours (MWh) of first-year energy savings and 2.91 megawatts (MW) of capacity reduction. This focus aligns with the 2025 Integrated Resource Plan (IRP), which projects 8.3% annual retail sales growth over the next five years, a notable increase from the 5.5% projected in the 2023 IRP. The long-term forecast anticipates peak demand growing nearly 45% or 1,700 megawatts (MW) over the next 20 years.

Public involvement is formalized through the Integrated Resource Plan Advisory Council (IRPAC). This advisory panel is a key component in developing the IRP, ensuring broad stakeholder input.

The composition of the IRPAC for the 2025 IRP includes:

• Major industrial customers.
• Environmental community representatives.
• Irrigation representatives.
• State and local elected officials.
• Public utility commission representatives.
• Other interested parties.

Proactive communication on reliability and safety is a core function, evidenced by the historical reliability figures and the ongoing capital expenditure plans designed to serve the growing customer base. IDACORP expects capital expenditure in the range of $1 billion to $1.1 billion in 2025.

Here's a look at key customer-related metrics and forecasts:

IDACORP, Inc. (IDA) - Canvas Business Model: Channels

You're looking at how IDACORP, Inc. gets its product-electricity-and its financial updates out to the world. It's a mix of physical infrastructure and digital touchpoints, which is typical for a regulated utility.

Physical transmission and distribution lines (the grid)

The core channel is the physical delivery system managed by the subsidiary, Idaho Power. This network spans a 24,000-square-mile service area across Idaho and Oregon to reach customers. Significant ongoing channel reinforcement includes major transmission projects; for instance, the Boardman-to-Hemingway (B2H) 500kV transmission line project broke ground in June 2025. This physical network serves the customer base, which stood at 660,542 as of September 30, 2025.

Direct customer billing and online account portals

Direct interaction with the retail customer base is managed through billing and digital services. The company's performance is heavily influenced by customer growth, which contributed to an operating income increase of $6.0 million in Q2 2025 compared to Q2 2024, driven by a customer base expansion to 659,000 as of June 30, 2025. The online portals are the primary digital interface for these customers, supporting account management and service interaction.

Energy efficiency program delivery (rebates, audits)

IDACORP, Inc. channels energy efficiency measures through regulatory mechanisms. The Fixed Cost Adjustment (FCA) mechanism is specifically designed for residential and small commercial customers to decouple fixed cost recovery from variable charges, which helps incentivize energy efficiency investments. The proposed 2025-2026 FCA rates, if implemented, would represent an annual decrease of $94.8 million. The 2025 Integrated Resource Plan (IRP) also incorporates energy efficiency as a resource option.

Wholesale market transactions for power sales/purchases

The wholesale channel involves transactions outside of the regulated retail service. While retail revenues were the main driver, wholesale energy sales also rose significantly in 2024. The company actively participates in the wholesale energy market, and its overall energy mix does not solely represent the power delivered to retail customers due to these sales. The Total Operating Revenues for the twelve months ending September 30, 2025, were $1,407,754 thousand (or $1.408 billion), with the trailing twelve months revenue ending September 30, 2025, reported at $1.806B.

Investor Relations (IR) for capital market access

The channel for accessing capital markets and communicating with the investment community is managed through Investor Relations. IDACORP, Inc. furnished an investor presentation via an 8-K filing on December 1, 2025, for meetings with analysts and investors. The company maintains liquidity channels, reporting $100 million available at the holding company level and $400 million at Idaho Power as of the second quarter of 2025. Furthermore, $143.5 million was available through its at-the-market (ATM) offering program. The full-year 2025 earnings guidance was increased to the range of $5.80 to $5.90 per diluted share.

Here's a quick look at some key figures related to these channels as of late 2025 data points:

The company is actively investing in the physical channel, projecting capital expenditures of up to $6.1 billion from 2025 to 2029.

IDACORP, Inc. (IDA) - Canvas Business Model: Customer Segments

IDACORP, Inc., primarily through its subsidiary Idaho Power, serves a diverse set of customers across its regulated electric operations in Idaho and Oregon. The utility is experiencing significant growth, which is a key driver for its financial performance and capital expenditure plans.

The total number of customers served by IDACORP, Inc. as of September 30, 2025, stood at 660,542. This reflects continued expansion in the service territory, which spans a 24,000-square-mile area. The company's performance is heavily influenced by the growth and usage patterns within these distinct segments.

The customer base is segmented based on usage and service type, each contributing differently to the overall revenue and load profile.

• Residential customers (a growing segment).
• Commercial and small business enterprises.
• Agricultural customers (irrigation load is significant).
• Large industrial customers (e.g., electronics, food processing).
• Other utilities and power marketers (wholesale market).

Residential customers are a core base, noted for paying among the nation's lowest prices for electricity, which makes the region attractive for new residents. The overall customer growth trend is strong, with the customer base having grown by approximately 16,500, or 2.6 percent, during the twelve months ended March 31, 2025. The 2025 Integrated Resource Plan projects an annual retail sales growth rate of 8.3 percent over the next five years, signaling sustained demand from this segment and others.

Commercial and small business enterprises, along with large industrial customers, are key drivers of the growth forecast. The company explicitly notes that customer growth has been supported by continued investment from major industrial customers, including Meta, Micron, and Chobani. For example, Chobani's $500 M expansion and Tractor Supply's $225 M distribution center underscore robust industrial demand fueling the need for capacity expansion.

Agricultural customers represent a segment where usage can be highly variable based on weather. For instance, in the third quarter of 2025 compared with the third quarter of 2024, irrigation usage per customer decreased most significantly due to higher precipitation, which meant irrigation pumps ran less frequently. Overall usage per retail customer was relatively flat for the first nine months of 2025 compared with the same period in 2024, showing that the industrial and residential growth offset the agricultural usage variability.

The wholesale market, involving other utilities and power marketers, is served through transmission services. Transmission wheeling-related revenues, net of Power Cost Adjustment (PCA) impacts, decreased by $3.0 million during 2024 compared with 2023, indicating this segment's revenue contribution can fluctuate.

IDACORP, Inc. (IDA) - Canvas Business Model: Cost Structure

You're looking at the major expenses IDACORP, Inc. faces to run its utility operations, especially given the ongoing infrastructure build-out. These costs are the foundation of their rate base and ultimately what they seek to recover from customers.

The company's 2025 cost structure is heavily influenced by planned capital deployment and ongoing operational needs. For instance, the expectation for full-year 2025 diluted earnings per share guidance was increased to the range of $5.80 to $5.90 as of late October 2025, assuming normal weather and power supply expenses for the remainder of the year. This guidance is set against these underlying cost expectations.

Here are the key components of the Cost Structure for IDACORP, Inc. as of its 2025 guidance:

• Capital expenditures: $1,000 - $1,100 million for 2025 infrastructure, excluding Allowance for Funds Used During Construction (AFUDC).
• Operations and Maintenance (O&M) expense: Expected full-year 2025 range is $465 million to $475 million.

The company's financial reporting reflects how these costs are managed and recovered.

Power supply costs, which include fuel and purchased energy, are a significant variable. The 2025 guidance assumes normal power supply expenses for the rest of the year.

Interest expense on long-term debt and financing costs are also material drivers. In the third quarter of 2025, non-operating expense, net, increased compared to the prior year, driven by higher long-term debt balances and an increase in transmission customer deposits, which require interest payments. Interest on a new finance lease also contributed to increases in non-operating expenses for the first nine months of 2025.

Depreciation and amortization expense is directly tied to utility plant investments. For the third quarter of 2025, depreciation and amortization expense increased by $8.1 million compared with the third quarter of 2024, primarily due to an increase in plant-in-service. Furthermore, the start of operations at a leased battery storage facility in the second quarter of 2025 contributed modestly to this expense through the amortization of a related right-of-use asset.

You can see the comparison to the prior year's actuals for context on the scale of these costs:

• 2024 Actual O&M Expense: $461 million.
• 2024 Actual Capital Expenditures (Excl. AFUDC): $943 million.

Finance: draft 13-week cash view by Friday.

IDACORP, Inc. (IDA) - Canvas Business Model: Revenue Streams

You're looking at the core ways IDACORP, Inc. brings in cash, which is heavily weighted toward its regulated utility business, Idaho Power. Honestly, the numbers tell a clear story about where the money is coming from as of late 2025.

The primary revenue driver is the regulated retail electricity sales through Idaho Power. As of September 30, 2025, Idaho Power was serving 660,542 customers across its service area. This regulated revenue stream is supported by recent rate changes that became effective January 1, 2025.

Beyond direct customer sales, IDACORP, Inc. generates revenue from other activities:

• Wholesale sales of excess energy and capacity, primarily through its subsidiary Ida-West Energy, which operates small hydroelectric generation projects.
• Non-utility income, which includes IDACORP Financial's investments in affordable housing and other real estate tax credit investments. For the full year 2025, the expectation is that Idaho Power will utilize between $50 million and $60 million of additional tax credits available under the Idaho regulatory mechanism.

Here's a quick look at the key financial targets and shareholder returns that reflect the success of these streams:

The regulated utility operations remain the only reportable segment, with the other activities grouped into the "All Other" category. Still, those non-utility investments provide a nice diversification benefit.