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What changed in IDACORP INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of IDACORP INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+574 added−567 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in IDACORP INC's 2025 10-K

574 paragraphs added · 567 removed · 446 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

87 edited+14 added−21 removed74 unchanged
Biggest changeBUCKHAM, 46 • Senior Vice President, Chief Financial Officer, and Treasurer of IDACORP, Inc. and Idaho Power Company, January 2024 - present • Senior Vice President and Chief Financial Officer of IDACORP, Inc. and Idaho Power Company, March 2022 - December 2023 • Senior Vice President and General Counsel of IDACORP, Inc. and Idaho Power Company, February 2017 - March 2022 MITCH COLBURN, 41 • Vice President of Planning, Engineering and Construction of Idaho Power Company, August 2020 - present • Director of Engineering and Construction of Idaho Power Company, March 2020 - August 2020 • Director of Resource Planning and Operations of Idaho Power Company, January 2018 - March 2020 SARAH E.
Biggest changeBUCKHAM, 47 • Executive Vice President, Chief Financial Officer, and Treasurer of IDACORP, Inc. and Idaho Power Company, February 2026 - present • Senior Vice President, Chief Financial Officer, and Treasurer of IDACORP, Inc. and Idaho Power Company, January 2024 - February 2026 • Senior Vice President and Chief Financial Officer of IDACORP, Inc. and Idaho Power Company, March 2022 - December 2023 • Senior Vice President and General Counsel of IDACORP, Inc. and Idaho Power Company, February 2017 - March 2022 MITCH COLBURN, 42 • Vice President of Planning, Engineering and Construction of Idaho Power Company, August 2020 - present SARAH E.
The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers. Idaho Power is also under the regulatory jurisdiction of the IPUC, the OPUC, and the WPSC as to the issuance of debt and equity securities.
The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers. Idaho Power is also under the regulatory jurisdiction of the IPUC, OPUC, and WPSC as to the issuance of debt and equity securities.
Rates and Revenues Idaho Power generates revenue primarily through the sale of electricity to retail and wholesale customers and the provision of transmission service. The prices that the IPUC, the OPUC, and the FERC authorize Idaho Power to charge for electric power and services are critical factors in determining IDACORP's and Idaho Power's results of operations and financial condition.
Rates and Revenues Idaho Power generates revenue primarily through the sale of electricity to retail and wholesale customers and the provision of transmission service. The prices that the IPUC, OPUC, and FERC authorize Idaho Power to charge for electric power and services are critical factors in determining IDACORP's and Idaho Power's results of operations and financial condition.
Corporate Responsibility Initiatives Overview: IDACORP’s and Idaho Power’s corporate governance and nominating committee, with considerable focus from the board of directors, is primarily responsible for the oversight of the companies’ corporate responsibility initiatives and both are regularly informed of the goals, measures, and results of the companies' corporate responsibility programs.
Corporate Responsibility Overview: IDACORP’s and Idaho Power’s corporate governance and nominating committee, with considerable focus from the board of directors, is primarily responsible for the oversight of the companies’ corporate responsibility initiatives and both are regularly informed of the goals, measures, and results of the companies' corporate responsibility programs.
Idaho Power regularly evaluates the need to request changes in its retail electricity price structure through the use of general rate cases, power cost adjustment mechanisms in Idaho and Oregon, an FCA mechanism in Idaho, balancing accounts, and also uses tariff riders, and subject-specific filings to recover its costs of providing service and to earn a return on investment.
Idaho Power regularly evaluates the need to request changes in its retail electricity price structure through the use of general rate cases, power cost adjustment mechanisms, an FCA mechanism in Idaho, balancing accounts, and also uses tariff riders and subject-specific filings to recover its costs of providing service and to earn a return on investment.
In executing on these four strategic cornerstones, IDACORP seeks to balance the interests of shareowners, Idaho Power customers, employees, and other stakeholders. Idaho Power is committed to working for strong, sustainable financial results by continuing to safely provide reliable, affordable, clean energy to its customers from diversified generation resources.
In executing on these four strategic cornerstones, IDACORP seeks to balance the interests of shareowners, Idaho Power customers, employees, and other stakeholders. 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.
The corporate governance and nominating committee is responsible for overseeing risks associated with governance, lobbying and government relations, political contributions, and social issues associated with employees as part of its corporate responsibility risk oversight function. The executive committee assists the board of directors in fulfilling its oversight responsibilities with respect to risk management processes generally.
The corporate governance and nominating committee is responsible for overseeing risks associated with governance, lobbying and government relations, political contributions, and social issues associated with employees as part of its corporate responsibility risk oversight function. The executive committee assists the board of directors in fulfilling its oversight responsibilities with respect to enterprise risk management processes generally.
Power Supply Overview: Idaho Power primarily relies on company-owned hydropower, coal-fired, and gas-fired generation facilities and long-term PPAs to supply the energy needed to serve customers and to make power sales into the wholesale markets. Market purchases and sales are used to supplement Idaho Power's generation and balance supply and demand throughout the year.
Power Supply Overview: Idaho Power primarily relies on company-owned hydropower, gas-fired, and coal-fired generation facilities, energy storage, and long-term PPAs to supply the energy needed to serve customers and to make power sales into the wholesale markets. Market purchases and sales are used to supplement Idaho Power's generation and balance supply and demand throughout the year.
In addition to the long-term gas transportation service agreements, Idaho Power has entered into long-term storage service agreements with Northwest Pipeline and Spire Inc. for 131,453 MMBtu and 1 billion cubic feet, respectively, of total storage capacity. The firm storage contract with Northwest Pipeline expires in 2043, while the contract with Spire begins in 2025 and ends in 2035.
In addition to the long-term gas transportation service agreements, Idaho Power has entered into long-term storage service agreements with Northwest Pipeline and Spire Inc. for 131,453 MMBtu and 1 billion cubic feet, respectively, of total storage capacity. The firm storage contract with Northwest Pipeline expires in 2043, while the contract with Spire began in 2025 and ends in 2035.
IDACORP's and Idaho Power's 2023 Corporate Responsibility Report released in April 2024 incorporated elements of the Sustainability Accounting Standards Board repor ting framework, as well as the Edison Electric Institute (EEI) environmental, social, governance, and sustainability reporting template. The Corporate Responsibility Report and related website content are not incorporated by reference into this report.
IDACORP's and Idaho Power's 2024 Corporate Responsibility Report released in April 2025 incorporated elements of the Sustainability Accounting Standards Board repor ting framework, as well as the Edison Electric Institute (EEI) environmental, social, governance, and sustainability reporting template. The Corporate Responsibility Report and related website content are not incorporated by reference into this report.
As of the date of this report, Idaho Power believes issuance of a new HCC license by the FERC will be as early as 2026; however, Idaho Power is unable to predict the exact timing of issuance by the FERC of any license order or the ultimate capital investment and ongoing operating and maintenance costs Idaho Power will incur in complying with any new license.
As of the date of this report, Idaho Power believes issuance of a new HCC license by the FERC will be as early as 2027; however, Idaho Power is unable to predict the exact timing of issuance by the FERC of any license order or the ultimate capital investment and ongoing operating and maintenance costs Idaho Power will incur in complying with any new license.
The table below presents Idaho Power’s purchased power expenses and volumes for the last three years ended December 31 (in thousands, except for per MWh amounts). Transmission costs, purchases from the Western EIM, and costs from demand response programs are included with wholesale market purchases in the table.
The table below presents Idaho Power’s purchased power expenses and volumes for the last three years ended December 31 (in thousands of dollars and MWh, except for per MWh amounts). Transmission costs, purchases from the Western EIM, and costs from demand response programs are included with wholesale market purchases in the table.
For more information on the 2023 IRP, refer to "Resource Planning" in this Item 1 – "Business." 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.
For more information on the 2025 IRP, refer to "Resource Planning" in this Item 1 – "Business." 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.
These uncertainties, as well as others, could result in changes to the desirability of the preferred portfolio and adjustments to the timing and nature of anticipated and actual actions. Energy Efficiency and Demand Response Programs: Idaho Power’s energy efficiency and demand response portfolio comprises 21 programs.
These uncertainties, as well as others, could result in changes to the desirability of the preferred portfolio and adjustments to the timing and nature of anticipated and actual actions. Energy Efficiency and Demand Response Programs: Idaho Power’s energy efficiency and demand response portfolio comprises 20 programs.
As a public utility under the FPA, Idaho Power has authority to charge market-based rates for wholesale energy sales under its FERC tariff and to provide transmission services under its OATT. Additionally, the FERC has jurisdiction over Idaho Power's sales of transmission capacity and wholesale electricity, hydropower project relicensing, and system reliability and security, among other items.
As a public utility under the FPA, Idaho Power has been granted the authority to charge market-based rates for wholesale energy sales under its FERC tariff and to provide transmission services under its OATT. Additionally, the FERC has jurisdiction over Idaho Power's sale of transmission capacity and wholesale electricity, hydropower project relicensing, and system reliability and security, among other items.
Idaho Power has significantly reduced its CO 2 emissions since the 2005 baseline year, primarily by decreasing its coal generation levels, including terminating its participation in coal generation at the North Valmy Unit 1 in 2019 and at the Boardman plant in 2020 and converting two units at the Jim Bridger plant from coal to natural gas in 2024, and also by upgrading it s hydropower facilities , and through its energy efficiency, demand-side management, and cloud-seeding programs.
Idaho Power has significantly reduced its CO 2 emissions since 2005, primarily by decreasing its coal generation levels, including terminating its participation in coal generation at the North Valmy Unit 1 in 2019 and North Valmy Unit 2 in 2025 and at the Boardman plant in 2020 and converting two units at the Jim Bridger plant from coal to natural gas in 2024, by upgrading it s hydropower facilities , and through its energy efficiency, demand-side management, and cloud-seeding programs.
Idaho Power’s programs include: • financial incentives for irrigation customers for either improving the energy efficiency of an irrigation system or installing new energy efficient systems; • energy efficiency programs for new and existing homes including electric heating, ventilation and cooling equipment, as well as energy efficient building techniques, air duct sealing, and energy efficient lighting; • incentives to industrial and commercial customers for acquiring energy efficient equipment, and using energy efficiency techniques for operational and management processes; • demand response programs to reduce peak summer demand through the voluntary cycling of central air conditioners for residential customers, interruption of irrigation pumps, and reduction of commercial and industrial demand through actions taken by business owners and operators; and • participation in the Northwest Energy Efficiency Alliance, which supports market transformation efforts across the region.
Idaho Power’s programs include: • financial incentives for irrigation customers for either improving the energy efficiency of an irrigation system or installing new energy efficient systems; 16 Table of Contents • energy efficiency programs for new and existing homes including electric heating, ventilation and cooling equipment, as well as energy efficient building techniques; • incentives to industrial and commercial customers for acquiring energy efficient equipment, and using energy efficiency techniques for operational and management processes; • demand response programs to reduce peak summer demand through the voluntary cycling of central air conditioners for residential customers, interruption of irrigation pumps, and reduction of commercial and industrial demand through actions taken by business owners and operators; and • participation in the Northwest Energy Efficiency Alliance, which supports market transformation efforts across the region.
Hydropower Generation : Idaho Power operates 17 hydropower projects located on the Snake River and its tributaries. Together, these hydropower facilities provide a total nameplate capacity of 1,818 MW and have averaged total annual generation of approximately 7.7 million MWh over the last 30 years.
Hydropower Generation : Idaho Power operates 17 hydropower projects located on the Snake River and its tributaries. Together, these hydropower facilities provide a total nameplate capacity of 1,818 MW and have averaged total annual generation of approximately 7.3 million MWh over the last 20 years.
Idaho Power intends for this capacity to supplement a total of 557 MW of company-owned storage that it expects to be online by the end of 2027.
Idaho Power intends for this capacity to supplement a total of 557 MW of company-owned storage that it expects to be online by the end of 2026.
The energy efficiency programs target energy savings across the entire year, while the demand response programs target system demand reduction in the summer at times of peak loads. The programs are offered to all 16 Table of Contents customer segments and emphasize the wise use of energy, especially during periods of high demand.
The energy efficiency programs target energy savings across the entire year, while the demand response programs target system demand reduction in the summer at times of peak loads. The programs are offered to all customer segments and emphasize the wise use of energy, especially during periods of high demand.
IFS generated tax credits of $7.5 million in 2024, $6.9 million in 2023, and $6.4 million in 2022. IFS received distributions related to fully-amortized real estate tax credit investments that reduced IDACORP's income tax expense by $1.6 million in 2024, $0.5 million in 2023, and $0.8 million in 2022.
IFS generated tax credits of $7.8 million in 2025, $7.5 million in 2024, and $6.9 million in 2023. IFS received distributions related to fully-amortized real estate tax credit investments that reduced IDACORP's income tax expense by $0.7 million in 2025, $1.6 million in 2024, and $0.5 million in 2023.
The ability to request rate changes does not, however, ensure that Idaho Power will recover all of its costs or earn a specified rate of return, or that its costs will be recovered in advance of or at the same time when the costs are incurred.
The ability to request rate changes does not, however, ensure that Idaho Power will recover all of its costs or earn a specified rate of return, or that its costs will be recovered in advance of or near the time when the costs are incurred.
Idaho Power has an established process approved by the IPUC for recovery of non-fuel, coal-related costs related to Idaho Power’s plan to end its participation in coal-fired operations at the Jim Bridger plant. The conversion from coal to natural gas of two generating units at the Jim Bridger plant was completed in the spring of 2024.
Idaho Power has an established process approved by the IPUC for recovery of non-fuel, coal-related costs related to Idaho Power’s plan to end its participation in coal-fired operations at the Jim Bridger plant. The conversion from coal to natural gas of generating units 1 and 2 at the Jim Bridger plant was completed in the spring of 2024.
To further its objectives, Idaho Power’s human capital management programs are designed to attract, retain, and develop high quality employees, without regard to race, color, religion, national origin, sex (including pregnancy), age, sexual orientation, gender identity, genetic information, veteran status, physical or mental disability, or marital status.
Human Capital Management Overview: Idaho Power’s human capital management programs are designed to attract, retain, and develop high quality employees, without regard to race, color, religion, national origin, sex (including pregnancy), age, sexual orientation, gender identity, genetic information, veteran status, physical or mental disability, or marital status.
Idaho Power purchased all of the power generated by Ida-West’s four Idaho hydropower projects at a cost of approximately $10 million in 2024, $9 million in 2023, and $8 million in 2022. 20 Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS The names, ages, and positions of the executive officers of IDACORP and Idaho Power are listed below (in alphabetical order), along with their business experience during at least the past five years.
Idaho Power purchased all of the power generated by Ida-West’s four Idaho hydropower projects at a cost of approximately $9 million in 2025, $10 million in 2024, and $9 million in 2023. 19 Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS The names, ages, and positions of the executive officers of IDACORP and Idaho Power are listed below (in alphabetical order), along with their business experience during at least the past five years.
HANCH EY, 49 • Vice President of Customer Operations and Chief Safety Officer of Idaho Power Company, October 2019 - present JULIA A.
HANCH EY, 50 • Vice President of Customer Operations and Chief Safety Officer of Idaho Power Company, October 2019 - present JULIA A.
Idaho Power's 2025 estimate of annual generation from its hydropower facilities is between 6.5 million MWh and 8.5 million MWh. Idaho Power obtains licenses for its hydropower projects from the FERC, similar to other utilities that operate nonfederal hydropower projects on qualified waterways. The licensing process includes an extensive public review process and involves numerous natural resource and environmental agencies.
Idaho Power's 2026 estimate of annual generation from its hydropower facilities is between 5.5 million MWh and 7.5 million MWh. Idaho Power obtains licenses for its hydropower projects from the FERC, similar to other utilities that operate nonfederal hydropower projects on qualified waterways. The licensing process includes an extensive public review process and involves numerous natural resource and environmental agencies.
Idaho Power holds franchises, typically in the form of right-of-way arrangements, in 71 cities in Idaho and 7 cities in Oregon and holds certificates from the respective public utility regulatory authorities to serve all or a portion of 25 counties in Idaho and 3 counties in Oregon.
Idaho Power holds franchises, typically in the form of right-of-way arrangements, in 69 cities in Idaho and 9 cities in Oregon and holds certificates from the respective public utility regulatory authorities to serve all or a portion of 25 counties in Idaho and 3 counties in Oregon.
HILTON, 47 • Vice President and General Counsel of IDACORP, Inc. and Idaho Power Company, March 2023 - present • Deputy General Counsel and Director of Legal of Idaho Power Company, October 2019 - March 2023 JEFFREY L. MALMEN, 57 • Senior Vice President of Public Affairs of IDACORP, Inc. and Idaho Power Company, April 2016 - present ADAM J.
HILTON, 48 • Vice President and General Counsel of IDACORP, Inc. and Idaho Power Company, March 2023 - present • Deputy General Counsel and Director of Legal of Idaho Power Company, October 2019 - March 2023 JEFFREY L. MALMEN, 58 • Senior Vice President of Public Affairs of IDACORP, Inc. and Idaho Power Company, April 2016 - present ADAM J.
UTILITY OPERATIONS Background Idaho Power provided electric utility service to approximately 649,000 retail customers in southern Idaho and eastern Oregon as of December 31, 2024. Approximately 547,000 of these customers are residential. Idaho Power’s principal commercial and industrial customers are involved in food processing, electronics and general manufacturing, agriculture, health care, government, education, and information technology.
UTILITY OPERATIONS Background Idaho Power provided electric utility service to approximately 664,000 retail customers in southern Idaho and eastern Oregon as of December 31, 2025. Approximately 561,000 of these customers are residential. Idaho Power’s principal commercial and industrial customers are involved in food processing, electronics and general manufacturing, agriculture, health care, government, education, and information technology.
However, as noted in the 2023 IRP, there is considerable uncertainty surrounding the resource sufficiency estimates and project completion dates, including uncertainty around the timing and extent of third-party development of renewable resources, fuel commodity prices, and the actual completion date and ownership allocations of the transmission projects.
However, as noted in the 2025 IRP, there is considerable uncertainty surrounding project completion dates, including uncertainty around the timing and extent of third-party development of renewable resources, fuel commodity prices, and the actual completion date and ownership allocations of the transmission projects.
GRIFFIN, 55 • Vice President of Human Resources of Idaho Power Company, October 2019 - present LISA A. GROW, 59 • President and Chief Executive Officer of IDACORP, Inc. and Idaho Power Company, June 2020 - present • President of Idaho Power Company, October 2019 - June 2020 JAMES BO D.
GRIFFIN, 56 • Vice President of Human Resources of Idaho Power Company, October 2019 - present LISA A. GROW, 60 • President and Chief Executive Officer of IDACORP, Inc. and Idaho Power Company, June 2020 - present JAMES BO D.
Idaho Power's 2023 IRP identified a preferred resource portfolio and action plan that includes the conversion from coal to natural gas of two units at the North Valmy plant in 2026 and the remaining two units at the Jim Bridger plant in 2030.
Idaho Power's 2025 IRP identified a preferred resource portfolio and action plan that included the conversion from coal to natural gas of both units at the North Valmy plant in 2026 and the remaining two units at the Jim Bridger plant in 2030.
IFS has focused on a diversified approach to its investment strategy in order to limit both geographic and operational risk with most of IFS’s investments having been made through syndicated funds. At December 31, 2024, the unamortized amount of IFS’s portfolio was approximately $55 million ($129 million in gross tax credit investments, net of $74 million of accumulated amortization).
IFS has focused on a diversified approach to its investment strategy in order to limit both geographic and operational risk with most of IFS’s investments having been made through syndicated funds. At December 31, 2025, the unamortized amount of IFS’s portfolio was approximately $50 million ($132 million in gross tax credit investments, net of $82 million of accumulated amortization).
The load forecast assumptions Idaho Power currently plans to use in its upcoming 2025 IRP are included in the table below, together with the average annual growth rate assumptions used in the prior two IRPs. The 2025 preliminary IRP assumptions include significant large commercial and industrial additions in the 5-year forecasted annual growth rate.
The load forecast assumptions Idaho Power used in its 2025 IRP are included in the table below, together with the average annual growth rate assumptions used in the prior two IRPs. The 2025 IRP assumptions include significant large commercial and industrial additions in the 5-year forecasted annual growth rate.
In addition to generally applicable regulations, Idaho Power's jointly-owned coal-fired power plant, jointly-owned coal- and gas-fired power plant, natural gas combustion turbine power plants, and hydropower generating plants are subject to a broad range of environmental requirements, including those related to air and water quality, waste materials, 18 Table of Contents and endangered species.
In addition to generally applicable regulations, Idaho Power's jointly-owned thermal power plants, natural gas combustion turbine power plants, and hydropower generating plants are subject to a broad range of environmental requirements, including those related to air and water quality, waste materials, and endangered species.
To support these resource additions, the preferred portfolio also included the B2H transmission line in 2026 and three GWW transmission line segments phased in with in-service dates from 2028 through 2040.
To support these resource additions, the preferred portfolio also included the B2H transmission line in 2027, the SWIP-N transmission project in 2028, and GWW transmission line segments phased in with in-service dates from 2028 through 2040.
In 2024, Idaho Power’s energy efficiency programs reduced energy usage by approximately 138,000 MWh compared with 140,000 MWh in 2023. For 2024, Idaho Power had a demand response available capacity of approximately 323 MW. Idaho Power expended approximately $40 million and $42 million in 2024 and 2023, respectively, on both energy efficiency and demand response programs.
In 2025, Idaho Power’s energy efficiency programs reduced energy usage by approximately 145,000 MWh compared with 138,000 MWh in 2024. For 2025, Idaho Power had a demand response available capacity of approximately 329 MW. Idaho Power expended approximately $43 million and $40 million in 2025 and 2024, respectively, on both energy efficiency and demand response programs.
Coal-Fired Generation : Idaho Power co-owns the following coal-fired power plants: • Jim Bridger, located in Wyoming, in which Idaho Power has a one-third interest; and • North Valmy, located in Nevada, in which Idaho Power has a 50 percent interest. PacifiCorp is the operator of the Jim Bridger plant. BCC supplies coal to the Jim Bridger plant.
Jointly-Owned Thermal Generation : Idaho Power co-owns the following coal and gas-fired steam generation power plants: • Jim Bridger, located in Wyoming, in which Idaho Power has a one-third interest; and • North Valmy, located in Nevada, in which Idaho Power has a 50 percent interest. PacifiCorp is the operator of the Jim Bridger plant.
Idaho Power estimates its environmental expenditures, based upon present environmental laws and regulations, will be as follows for the periods indicated, excluding AFUDC (in millions of dollars): 2025 2026-2027 Capital expenditures: License compliance and relicensing efforts at hydropower facilities $ 54 $ 130 Investments in equipment and facilities at thermal plants 3 13 Total capital expenditures $ 57 $ 143 Operating expenses: Operating costs for environmental facilities - hydropower $ 34 $ 78 Operating costs for environmental facilities - thermal 10 29 Total other O&M $ 44 $ 107 Idaho Power anticipates that finalization, implementation, or modification of a number of federal and state rulemakings and other proceedings addressing, among other things, GHGs and endangered species, could result in substantial changes in operating and compliance costs, but Idaho Power is unable to estimate those changes in costs given the uncertainty associated with existing and potential future regulations.
Idaho Power estimates its environmental expenditures at its hydropower and thermal facilities, based upon present environmental laws and regulations, will be as follows for the periods indicated, excluding AFUDC (in millions of dollars): 2026 2027-2028 Capital expenditures: License compliance and relicensing efforts at hydropower facilities $ 29 $ 114 Investments in equipment and facilities at thermal plants 1 19 Total capital expenditures $ 30 $ 133 Operating expenses: Operating costs for environmental facilities - hydropower $ 35 $ 79 Operating costs for environmental facilities - thermal 10 29 Total other O&M $ 45 $ 108 Idaho Power anticipates that finalization, implementation, or modification of a number of federal and state rulemakings and other proceedings addressing, among other things, GHGs and endangered species, could result in substantial changes in operating and compliance costs, but Idaho Power is unable to estimate those changes in costs given the uncertainty associated with existing and potential future regulations.
IERCo, a wholly-owned subsidiary of Idaho Power, owns a one-third interest in BCC and PacifiCorp owns a two-third interest in BCC and is the operator of the Bridger Coal Mine. The mine operates under a long-term sales agreement that provides for delivery of coal through 2027.
BCC supplies coal to generating units 3 and 4 at the Jim Bridger plant. IERCo, a wholly-owned subsidiary of Idaho Power, owns a one-third interest in BCC and PacifiCorp owns a two-third interest in BCC and is the operator of the Bridger Coal Mine. The mine operates under a long-term sales agreement that provides for delivery of coal through 2027.
Idaho Power ended its participation in coal-fired operations at unit 1 of the North Valmy plant in December 2019, as planned.
Idaho Power ended its participation in coal-fired operations at unit 1 of the North Valmy plant in December 2019 and unit 2 of the North Valmy plant in December 2025.
SHAW, 45 • Vice President of Finance, Compliance, and Risk of IDACORP, Inc. and Idaho Power Company, January 2024 - present • Director of Investor Relations, Compliance, and Risk of IDACORP, Inc. and Idaho Power Company, August 2023 - December 2023 • Director of Compliance, Risk, and Security of Idaho Power Company, May 2017 - August 2023 21 Table of Contents
SHAW, 46 • Vice President of Finance, Compliance, and Risk of IDACORP, Inc. and Idaho Power Company, January 2024 - present • Director of Investor Relations, Compliance, and Risk of IDACORP, Inc. and Idaho Power Company, August 2023 - December 2023 • Director of Compliance, Risk, and Security of Idaho Power Company, May 2017 - August 2023 TIMOTHY E.
RICHINS, 46 • Senior Vice President and Chief Operating Officer of Idaho Power Company, October 2019 - present AMY I.
RICHINS, 47 • Executive Vice President and Chief Operating Officer of Idaho Power Company, February 2026 - present • Senior Vice President and Chief Operating Officer of Idaho Power Company, October 2019 - February 2026 AMY I.
Year Ended December 31, 2024 2023 2022 Expense Wholesale market purchases $ 131,562 $ 243,319 $ 306,263 Long-term agreements (including PURPA) 293,520 258,212 238,082 Total purchased power expense $ 425,082 $ 501,531 $ 544,345 MWh purchased Wholesale market purchases 2,508 3,278 3,823 Long-term agreements (including PURPA) 4,033 3,749 3,355 Total MWh purchased 6,541 7,027 7,178 Cost per MWh from wholesale market purchases $ 52.46 $ 74.23 $ 80.11 Cost per MWh from long-term agreement purchases $ 72.78 $ 68.87 $ 70.96 Weighted average cost per MWh - all sources $ 64.99 $ 71.37 $ 75.84 Wholesale Market : To supplement its self-generated power and long-term purchase arrangements, Idaho Power purchases power in the wholesale market based on economics, operating reserve margins, energy risk management program guidelines, and unit availability.
Year Ended December 31, 2025 2024 2023 Expense Wholesale market purchases $ 86,419 $ 131,562 $ 243,319 Long-term agreements (including PURPA) 306,043 293,520 258,212 Total purchased power expense $ 392,462 $ 425,082 $ 501,531 MWh purchased Wholesale market purchases 2,315 2,508 3,278 Long-term agreements (including PURPA) 4,468 4,033 3,749 Total MWh purchased 6,783 6,541 7,027 Cost per MWh from wholesale market purchases $ 37.33 $ 52.46 $ 74.23 Cost per MWh from long-term agreement purchases $ 68.50 $ 72.78 $ 68.87 Weighted average cost per MWh - all sources $ 57.86 $ 64.99 $ 71.37 Wholesale Market : To supplement its self-generated power and long-term purchase arrangements, Idaho Power purchases power in the wholesale market based on economics, operating reserve margins, energy risk management program guidelines, and generating unit availability.
NV Energy is the operator of the North Valmy plant. Idaho Power expects to meet 2025 fuel requirements through existing inventory. Idaho Power has an established process approved by the IPUC and OPUC for recovery of non-fuel costs related to Idaho Power’s plan to end its participation in coal-fired operations at the North Valmy plant.
NV Energy is the operator of the North Valmy plant. Idaho Power has an established process approved by the IPUC and OPUC for recovery of non-fuel costs related to Idaho Power’s completed exit from participation in coal-fired operations at the North Valmy plant.
As noted previously, in the spring of 2024, the conversion of two units at the Jim Bridger plant from coal to natural gas-fired steam turbines was completed. In addition, Idaho Power plans to convert the two coal-fired units at the North Valmy plant to natural gas-fired steam turbines by mid-2026.
As noted previously, in the spring of 2024, the conversion of two units at the Jim Bridger plant from coal to natural gas-fired steam turbines was completed.
The rate of load growth can impact the timing and extent of development of resources, such as new generation plants or transmission infrastructure, to serve those loads. 5-Year Forecasted Annual Growth Rate 20-Year Forecasted Annual Growth Rate Retail Sales (Billed MWh) Annual Peak (Peak Demand) Retail Sales (Billed MWh) Annual Peak (Peak Demand) 2025 IRP (preliminary) 8.3% 5.1% 2.7% 1.9% 2023 IRP 5.5% 3.7% 2.1% 1.8% 2021 IRP 2.6% 2.1% 1.4% 1.4% The 2023 IRP preferred resource portfolio and action plan provided for 8,436 MW of resource capacity partially offset by retirements of 841 MW of coal-fired generation and 706 MW of natural gas generation over the next 20 years to meet energy and capacity needs.
The rate of load growth can impact the timing and extent of development of resources, such as new generation plants or transmission infrastructure, to serve those loads. 5-Year Forecasted Annual Growth Rate 20-Year Forecasted Annual Growth Rate Retail Sales (Billed MWh) Annual Peak (Peak Demand) Retail Sales (Billed MWh) Annual Peak (Peak Demand) 2025 IRP 8.3% 5.1% 2.7% 1.9% 2023 IRP 5.5% 3.7% 2.1% 1.8% 2021 IRP 2.6% 2.1% 1.4% 1.4% The 2025 IRP preferred resource portfolio provided for 4,071 MW of additional resource capacity.
Each IRP seeks to forecast Idaho Power's loads and resources for a 20-year period, analyzes potential supply-side, demand-side, and transmission resource options, and identifies potential near-term, mid-term, and long-term actions.
Idaho Power filed its most recent 2025 IRP with the IPUC and OPUC in June 2025. Each IRP seeks to forecast Idaho Power's loads and resources for a 20-year period, analyzes potential supply-side, demand-side, and transmission resource options, and identifies potential near-term, mid-term, and long-term actions.
Through 2024, 227 MW of company-owned battery storage were installed, with another 330 MW expected to be in service by the end of 2027.
Through 2025, 307 MW of company-owned battery storage were installed, with another 250 MW expected to be in service by the end of 2026.
Power Supply Percent of Total Generation 2024 2023 2022 2024 2023 2022 (thousands of MWh) Hydropower plants 7,203 6,548 5,347 54 % 55 % 48 % Steam-fired plants (1) 2,474 2,473 3,657 18 % 21 % 32 % Natural gas-fired plants 3,843 2,917 2,319 28 % 24 % 20 % Total system generation 13,520 11,938 11,323 Purchased power 6,541 7,027 7,178 Total power supply 20,061 18,965 18,501 (1) "Steam-fired plants" are composed of generation from plants that are fueled by only coal or by both coal and natural gas.
Power Supply Percent of Total Generation 2025 2024 2023 2025 2024 2023 (thousands of MWh) Hydropower plants 7,021 7,203 6,548 52 % 54 % 55 % Jointly-owned thermal plants (1) 2,906 2,474 2,473 21 % 18 % 21 % Natural gas-fired plants 3,685 3,843 2,917 27 % 28 % 24 % Total system generation 13,612 13,520 11,938 Purchased power 6,783 6,541 7,027 Total power supply 20,395 20,061 18,965 (1) "Jointly-owned thermal plants" are composed of generation from plants that are fueled by only coal or by both coal and natural gas.
Idaho Power entered into two 20-year agreements to utilize the storage capacity from a 150 MW battery storage facility scheduled to be online in June 2025 and a 100 MW battery storage facility scheduled to be online in April 2027.
Idaho Power commenced a 20-year agreement to utilize the storage capacity from a 150 MW battery storage facility that came online in May 2025 and has a 20-year agreement to utilize the storage capacity from a 100 MW battery storage facility scheduled to be online in April 2027.
Resource Type Non-PURPA Online (MW) PURPA Online (MW) Total Online (MW) Under Contract but not yet Online (MW) Total Projects under Contract (MW) Wind 101 625 726 300 1,026 Solar 260 316 576 748 1,324 Hydropower — 144 144 — 144 Other 35 43 78 — 78 Total 396 1,128 1,524 1,048 2,572 Idaho Power has agreements with non-PURPA solar projects for 200 MW, 125 MW, and 420 MW, expected to be online in 2025, 2026, and 2027, respectively.
Resource Type Non-PURPA Online (MW) PURPA Online (MW) Total Online (MW) Under Contract but not yet Online (MW) Total Projects under Contract (MW) Wind 101 625 726 — 726 Solar 460 316 776 625 1,401 Hydropower — 144 144 — 144 Other 35 43 78 — 78 Total 596 1,128 1,724 625 2,349 Idaho Power has agreements with non-PURPA solar projects for 125 MW and 500 MW, expected to be online in 2026 and 2027, respectively.
Year Ended December 31, 2024 2023 2022 Retail revenues (thousands of dollars): Residential (includes $(2,686), $37,233, and $22,595, respectively, related to the FCA) $ 700,586 $ 684,649 $ 645,236 Commercial (includes $(170), $1,338, and $922, respectively, related to the FCA) 397,385 378,330 347,970 Industrial 267,211 244,538 217,368 Irrigation 196,401 173,929 170,964 Deferred revenue related to HCC relicensing AFUDC (1) (8,803) (8,780) (8,780) Total retail revenues 1,552,780 1,472,666 1,372,758 Wholesale energy sales 73,908 63,421 66,519 Transmission wheeling-related revenues 79,173 80,357 80,527 Energy efficiency program revenues 27,581 31,948 33,197 Other revenues 89,523 114,502 88,039 Total electric utility operating revenues $ 1,822,965 $ 1,762,894 $ 1,641,040 Energy sales (thousands of MWh): Residential 5,964 5,903 6,056 Commercial 4,332 4,269 4,306 Industrial 3,680 3,538 3,510 Irrigation 1,995 1,805 1,950 Total retail energy sales 15,971 15,515 15,822 Wholesale energy sales 1,412 840 427 Energy sales bundled with RECs 1,406 1,255 892 Total energy sales 18,789 17,610 17,141 (1) The IPUC allows Idaho Power to recover a portion of the AFUDC on construction work in progress related to the HCC relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service.
Year Ended December 31, 2025 2024 2023 Retail revenues (thousands of dollars): Residential (includes $3,972, $(2,686), and $37,233, respectively, related to the FCA) $ 708,126 $ 700,586 $ 684,649 Commercial (includes $(76), $(170), and $1,338, respectively, related to the FCA) 394,313 397,385 378,330 Industrial 270,571 267,211 244,538 Irrigation 198,468 196,401 173,929 Deferred revenue related to HCC relicensing AFUDC (1) (15,120) (8,803) (8,780) Total retail revenues 1,556,358 1,552,780 1,472,666 Wholesale energy sales 55,989 73,908 63,421 Transmission wheeling-related revenues 72,231 79,173 80,357 Energy efficiency program revenues 30,480 27,581 31,948 Other revenues 94,551 89,523 114,502 Total electric utility operating revenues $ 1,809,609 $ 1,822,965 $ 1,762,894 Energy sales (thousands of MWh): Residential 6,010 5,964 5,903 Commercial 4,348 4,332 4,269 Industrial 3,775 3,680 3,538 Irrigation 2,044 1,995 1,805 Total retail energy sales 16,177 15,971 15,515 Wholesale energy sales 1,381 1,412 840 Energy sales bundled with RECs 1,516 1,406 1,255 Total energy sales 19,074 18,789 17,610 (1) The IPUC allows Idaho Power to recover a portion of the AFUDC on construction work in progress related to the HCC relicensing process in its Idaho jurisdiction, even though the relicensing process is not yet complete and the costs have not been moved to utility plant in service.
During these and other similar heavy load periods, Idaho Power’s system is fully committed to serve load and meet required operating reserves. The table that follows shows Idaho Power’s total power supply for the last three years.
Idaho Power's highest all-time winter peak demand of 2,719 MW occurred on January 16, 2024. During these and other similar heavy load periods, Idaho Power’s system is fully committed to serve load and meet required operating reserves. The table that follows shows Idaho Power’s total power supply for the last three years.
The audit committee is responsible for overseeing risk management, including compliance with the code of business conduct, physical security risks relating to employees, and environmental compliance.
The compensation and human resources committee is responsible for overseeing employee compensation, benefit plans, general labor issues, company culture, and safety issues. The audit committee is responsible for overseeing risk management, including compliance with the code of business conduct, physical security risks relating to employees, and environmental compliance.
There are no family relationships among these officers, nor is there any arrangement or understanding between any officer and any other person pursuant to which the officer was appointed. RYAN N.
There are no family relationships among these officers, nor is there any arrangement or understanding between any officer and any other person pursuant to which the officer was appointed. RYAN N. ADELMAN, 51 • Vice President of Power Supply of Idaho Power Company, August 2020 - present BRIAN R.
Competition: Idaho Power's electric utility business has historically been recognized as a regulated monopoly. However, Idaho Power competes with fuel distribution companies, including natural gas providers, in serving the energy needs of customers for space heating, water heating, and appliances.
However, Idaho Power competes with fuel distribution companies, including natural gas providers, in serving the energy needs of customers for space heating, water heating, and appliances.
IDACORP had 11 part-time employee s, 8 of whom were employed by Idaho Power and 3 of whom were employed by Ida-West. Of IDACORP's full-time employees, 48 percent have worked at the company for over 10 years as of the date of this report. All IDACORP and Idaho Power employees work in the United States.
Of IDACORP's full-time employees, 48 percent have worked at the company for over 10 years as of the date of this report. All IDACORP and Idaho Power employees work in the United States. As of the date of this report, no Idaho Power employees are represented by unions.
Services under the OATT are offered on a non-discriminatory basis such that all potential customers, including Idaho Power, have an equal opportunity to access the transmission system.
Services under the OATT are offered on a non-discriminatory basis such that all potential customers, including Idaho Power, have an equal opportunity to access the transmission system. As required by FERC standards of conduct, Idaho Power's transmission function is operated independently from Idaho Power's energy marketing function.
As of the date of this report, no Idaho Power employees are represented by unions. 19 Table of Contents Board and Board Committee Oversight : The companies’ management updates the full board of directors and its committees regularly on safety metrics, compensation for employees, benefit and pension programs, succession planning and training programs, and company culture initiatives, among other things.
Board and Board Committee Oversight : The companies’ management updates the full board of directors and its committees regularly on safety metrics, compensation for employees, benefit and pension programs, succession planning and training programs, and company culture initiatives, among other things. Each committee of the board of directors is delegated and takes on specific roles in this oversight.
The Williams-Northwest Pipeline transport capacity will increase to 103,584 MMBtu per day in April 2025 and will increase to 161,263 MMBtu per day in November 2025. These transportation agreements vary in contract length but generally contain the right for Idaho Power to extend the term.
The Tallgrass-Ruby Pipeline transport capacity will increase to 78,000 MMBtu per day in May 2026. These transportation agreements vary in contract length but generally contain the right for Idaho Power to extend the term.
Subsequent to the issuance of a new license, Idaho Power expects to incur increased annual capital expenditures and operating and maintenance costs to comply with the requirements of any new license. Human Capital Management Overview: Idaho Power's purpose is powering lives by safely providing reliable, affordable, clean energy.
Subsequent to the issuance of a new license, Idaho Power expects to incur increased annual capital expenditures and operating and maintenance costs to comply with the requirements of any new license.
Climate Change Resilience : For more than 100 years, Idaho Power has adapted to changes in temperatures, water conditions, economic conditions, and regulatory requirements. To address the physical impacts of climate change, Idaho Power conducts cloud-seeding operations, implements a WMP, enhances grid resiliency and reliability, and continues to further Snake River shading and in-stream river enhancement projects.
To address the physical impacts of a changing climate, Idaho Power conducts cloud-seeding operations, implements a WMP, enhances grid resiliency and reliability, and continues to further Snake 17 Table of Contents River shading and in-stream river enhancement projects.
Idaho Power’s system is dual peaking, with the larger peak demand occurring in the summer. Idaho Power reached its highest all-time system peak demand of 3,793 MW on July 22, 2024. Idaho Power's highest all-time winter peak demand of 2,719 MW occurred on January 16, 2024.
Idaho Power's power cost adjustment mechanisms mitigate in large part the earnings impacts to Idaho Power of volatile fuel and power costs. Idaho Power’s system is dual peaking, with the larger peak demand occurring in the summer. Idaho Power reached its highest all-time system peak demand of 3,793 MW on July 22, 2024.
Idaho Power actively participates in collaborative work groups focused on water management issues in the Snake 12 Table of Contents River Basin, with the goal of preserving the long-term availability of water for use at Idaho Power’s hydropower projects on the Snake River.
Idaho Power actively participates in collaborative work groups focused on water management issues in the Snake River Basin, with the goal of preserving the long-term availability of water for use at Idaho Power’s hydropower projects on the Snake River. 12 Table of Contents In 2025, hydropower generation was 7.0 million MWh, a decrease from 2024 and an increase from 2023, due to changes in snow accumulation and reservoir storage throughout most of the Snake River basin.
Economic conditions, weather, supply constraints, and governmental regulations can affect the market price of natural gas and coal, which impact fuel expense and market prices for purchased power. Idaho Power's power cost adjustment mechanisms mitigate in large part the earnings impacts to Idaho Power of volatile fuel and power costs.
Weather also affects the generation of projects with which Idaho Power has contracts to purchase power. Economic conditions, weather, supply constraints, and governmental regulations can affect the market price of natural gas and coal, which impact fuel expense and market prices for purchased power.
Beyond changes in costs generally, these environmental laws and regulations could affect IDACORP's and Idaho Power's results of operations and financial condition if the costs associated with these environmental requirements and potential early plant retirements cannot be fully recovered in rates on a timely basis. Idaho Power is actively pursuing the relicensing of the HCC, its largest hydropower generation source.
Idaho Power expects that it would seek to recover any increases in costs through the ratemaking process. Beyond changes in costs generally, these environmental laws and regulations could affect IDACORP's and Idaho Power's results of operations and financial condition if the costs associated with these environmental requirements cannot be fully recovered in rates on a timely basis.
Natural gas for all facilities is purchased based on system requirements and dispatch efficiency. The natural gas supplying the Idaho plants is transported through Idaho 13 Table of Contents Power's long-term gas transportation service agreements with the Williams-Northwest Pipeline for 95,584 MMBtu per day and Williams-Mt. West Overthrust Pipeline for 89,000 MMBtu per day.
The natural gas supplying the Idaho, Wyoming, and Nevada plants is transported through Idaho Power's long-term gas transportation service agreements with the Williams-Northwest Pipeline for 150,763 MMBtu per day, the Williams-Mt. West Overthrust Pipeline for 89,000 MMBtu per day, and the Tallgrass-Ruby Pipeline for 39,000 MMBtu per day.
Various external and internal factors impact power supply costs, such as weather, load demand, economic conditions, fuel costs, and availability of generation resources. Idaho Power’s annual hydropower generation varies depending on water conditions in the Snake River Basin. Drought conditions and increased peak load demand cause a greater reliance on potentially more expensive energy sources to meet load requirements.
Idaho Power’s generating plants and their capacities are listed in Part I, Item 2 - “Properties.” Various external and internal factors impact power supply costs, such as weather, load demand, economic conditions, fuel costs, and availability of generation resources. Idaho Power’s annual hydropower generation varies depending on water conditions in the Snake River Basin.
These operating plans are impacted by factors such as customer demand for power, market prices, generating costs, transmission constraints, and availability of generating resources. Idaho Power's wholesale energy sales depend largely on the availability of generation resources above the amount necessary to serve customer loads as well as market power prices at the time when those resources are available.
Idaho Power's wholesale energy sales depend largely on the availability of generation resources above the amount necessary to serve customer loads as well as market power prices at the time when those resources are available. A reduction in either factor leads to lower wholesale energy sales. Idaho Power also provides energy transmission services through its OATT.
The B2H project is a proposed 300-mile, high-voltage transmission line between a substation near Boardman, Oregon, and the Hemingway substation near Boise, Idaho. The GWW project is a high-voltage transmission line project between a substation located near Douglas, Wyoming, and the Hemingway substation.
The GWW project is a high-voltage transmission line project between a substation located near Douglas, Wyoming, and the Hemingway substation. The SWIP-N project is a planned 285-mile, high-voltage transmission line between the Robinson Summit substation near Ely, Nevada, and the Midpoint substation near Jerome, Idaho.
The FERC oversees mandatory transmission and network reliability standards, as well as power and transmission markets, including protection against market manipulation. These mandatory transmission and reliability standards were developed by the North American Electric Reliability Corporation and the Western Electricity Coordinating Council, which have responsibility for compliance and enforcement of transmission, reliability, and security standards.
These mandatory reliability standards were developed by the North American Electric Reliability Corporation and the Western Electricity Coordinating Council, which have responsibility for compliance and enforcement of reliability and security standards. Competition: Idaho Power's electric utility business has historically been recognized as a regulated monopoly.
Idaho Power's service area is shaded in the illustration on the following page and covers approximately 24,000 square miles with an estimated population of 1.4 million. 8 Table of Contents Idaho Power is under the jurisdiction (as to rates, service, accounting, and other general matters of utility operation) of the IPUC, the OPUC, and the FERC.
The following figure represents Idaho Power's current service area without regard to the Oregon Sale. 8 Table of Contents Idaho Power is under the jurisdiction (as to rates, service, accounting, and other general matters of utility operation) of the IPUC, OPUC, and FERC.
Idaho Power purchases and stores natural gas with the intent of fulfilling needs as identified for seasonal peaks or to meet system requirements. As of February 14, 2025, Idaho Power had approximately 36.3 million MMBtu of natural gas financially hedged for physical delivery, primarily for the operational dispatch of Langley Gulch, Danskin, Bennett, and Bridger power plants through August 2026.
As of February 13, 2026, Idaho Power had approximately 75.72 million MMBtu of natural gas financially hedged for physical delivery, primarily for the operational dispatch of Langley Gulch, Danskin, Bennett, Jim Bridger, and North Valmy power plants through January 2029.
Idaho Power shares the survey results with employees, and senior management incorporates the results of the surveys in their action plans in order to respond to the feedback and improve employee relations. As of December 31, 2024, IDACORP had 2,130 full-time employee s, 2,122 of wh om were employed by Idaho Power and 8 of whom were employed by Ida-West.
Idaho Power shares the survey results with 18 Table of Contents employees, and senior management incorporates the results of the surveys in their action plans in order to respond to the feedback and improve employee relations.
Idaho Power operates the Langley Gulch plant as a baseload unit and the Danskin and Bennett Mountain plants to serve load and meet peak supply needs. The natural-gas-fired units at the Jim Bridger plant operate to serve load and meet peak supply needs. The plants are also used to take advantage of wholesale market opportunities.
The natural-gas-fired units at the Jim Bridger plant and North Valmy plant operate to serve load and meet peak supply needs. The plants are also used to take advantage of wholesale market opportunities. Natural gas for all 13 Table of Contents facilities is purchased based on system requirements and dispatch efficiency.
A reduction in either factor leads to lower wholesale energy sales. Idaho Power also provides energy transmission services through its OATT. The OATT rate is revised each year based primarily on financial and operational data Idaho Power files annually with the FERC in its Form 1.
The OATT rate is revised each year based primarily on financial and operational data Idaho Power files annually with the FERC in its Form 1. The FERC oversees mandatory transmission and network reliability standards, as well as power and transmission markets, including protection against market manipulation.
Idaho Power is collecting $8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.
Amounts collected in the Idaho jurisdiction are recognized as deferred revenue until the license is issued and the accumulated license costs approved for recovery are placed in service. Wholesale Markets : Idaho Power participates in the wholesale energy markets by purchasing power to help meet load demands and selling power that is in excess of load demands.
Conversely, favorable hydropower generation conditions increase production at Idaho Power’s hydropower generating facilities and reduce the need for thermal generation and wholesale market purchased power. Weather also affects the generation of projects with which Idaho Power has contracts to purchase power.
Drought conditions and increased peak load demand cause a greater reliance on potentially more expensive energy sources to meet load requirements. Conversely, favorable hydropower generation conditions increase production at Idaho Power’s hydropower generating facilities and reduce the need for thermal generation and wholesale market purchased power.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIdaho Power expects to incur increasing costs, which is likely to occur before the IPUC, OPUC, or FERC approve the recovery of those costs, such as construction costs for new facilities and transmission resources, costs associated with changes in the long-term cost-effectiveness or operating conditions of Idaho Power's assets that could result in early retirements of utility facilities, costs of compliance with legislative and regulatory requirements, fuel and wholesale power costs, and increased funding levels of Idaho Power's defined benefit pension plan.
Biggest changeIdaho Power expects to incur increasing costs for construction of new facilities and transmission resources, O&M, compliance with legal and regulatory requirements, and pension contributions, among others, which is likely to occur before the IPUC, OPUC, or FERC approve the recovery of those costs.
If Idaho Power is unable to adjust its rate design or maintain adequate regulatory mechanisms allowing for timely cost recovery, declining usage from customer-owned generation sources and energy efficiency could result in under-recovery of Idaho Power's costs and investment in infrastructure, and reduce revenues, which would adversely impact IDACORP's and Idaho Power's financial condition and results of operations.
If Idaho Power is unable to adjust its rate design or maintain adequate regulatory mechanisms allowing for timely cost recovery, declining usage resulting from customer-owned generation sources and energy efficiency could result in under-recovery of Idaho Power's costs and investment in infrastructure, and reduce revenues, which would adversely impact IDACORP's and Idaho Power's financial condition and results of operations.
These risks include, as examples: • the ability to timely obtain labor or materials at reasonable costs; • defaults and delays by suppliers and contractors, including delays for specialty equipment that require significant lead times; • increases in price and limitations on availability of commodities, materials, and equipment; • imposition of tariffs or other trade restrictions on commodities, materials, and equipment; • equipment, engineering, and design failures; • credit quality of counterparties and suppliers and their ability to meet financial and operational commitments; • unexpected environmental and geological problems; • the effects of adverse weather conditions; • catastrophic events, natural disasters, epidemics, pandemics and other public health or disruptive events that could result in supply chain disruptions, as well as permitting and construction delays; • availability of financing; • the ability to obtain approval from local, state, or federal regulatory and governmental bodies and to comply with permits and land use rights, and environmental constraints; and • delays and costs associated with disputes and litigation with third parties.
These risks include, as examples: • the ability to timely obtain labor or materials at reasonable costs; • defaults and delays by suppliers and contractors, including delays for specialty equipment that requires significant lead times; • increases in price and limitations on availability of commodities, materials, and equipment; • imposition of tariffs or other trade restrictions on commodities, materials, and equipment; • equipment, engineering, and design failures; • credit quality of counterparties and suppliers and their ability to meet financial and operational commitments; • unexpected environmental and geological problems; • the effects of adverse weather conditions; • catastrophic events, natural disasters, epidemics, pandemics and other public health or disruptive events that could result in supply chain disruptions, as well as permitting and construction delays; • availability of financing; • the ability to obtain approval from local, state, or federal regulatory and governmental bodies and to comply with permits and land use rights, and environmental constraints; and • delays and costs associated with disputes and litigation with third parties.
The market price of IDACORP's common stock could be subject to significant fluctuations in response to factors such as the following, some of which are beyond its control: • variations in IDACORP and Idaho Power's quarterly operating results; 35 Table of Contents • operating results that vary from the expectations of management, securities analysts, and investors and other impacts from the risks identified in this "Risk Factors" section and elsewhere in this report; • changes in expectations as to future financial performance, including financial estimates by securities analysts or investors; • developments generally affecting IDACORP and Idaho Power's industry; • announcements by IDACORP and Idaho Power of significant contracts, acquisitions, divestitures, joint ventures, or capital commitments; • announcements by third parties of significant claims or proceedings against IDACORP or Idaho Power; • favorable or adverse regulatory or legislative developments; • IDACORP's dividend policy; • change in IDACORP or Idaho Power's management; • future sales of IDACORP's equity or equity-linked securities; and • general domestic and international economic conditions.
The market price of IDACORP's common stock could be subject to significant fluctuations in response to factors such as the following, some of which are beyond its control: • variations in IDACORP and Idaho Power's quarterly operating results; • operating results that vary from the expectations of management, securities analysts, and investors and other impacts from the risks identified in this "Risk Factors" section and elsewhere in this report; • changes in expectations as to future financial performance, including financial estimates by securities analysts or investors; • developments generally affecting IDACORP and Idaho Power's industry; • announcements by IDACORP and Idaho Power of significant contracts, acquisitions, divestitures, joint ventures, or capital commitments; • announcements by third parties of significant claims or proceedings against IDACORP or Idaho Power; • favorable or adverse regulatory or legislative developments; • IDACORP's dividend policy; • change in IDACORP or Idaho Power's management; 34 Table of Contents • future sales of IDACORP's equity or equity-linked securities; and • general domestic and international economic conditions.
Furthermore, Idaho Power may not be able to obtain or maintain all environmental regulatory approvals necessary for operation of its existing infrastructure or construction of new infrastructure. In addition, some environmental regulations are currently subject to litigation or other uncertainty, including due to changes instituted by the new Presidential Administration.
Furthermore, Idaho Power may not be able to obtain or maintain all environmental regulatory approvals necessary for operation of its existing infrastructure or construction of new infrastructure. In addition, some environmental regulations are currently subject to litigation or other uncertainty, including due to changes instituted by the current Presidential Administration.
With the large amount of ongoing and projected investments and the associated regulatory lag in cost recovery, Idaho Power filed rate cases in Idaho in 2023 and 2024 and Oregon in 2023 and expects that it will likely file rate cases or seek other types of regulatory relief on a regular basis in the next few years.
With the large amount of ongoing and projected investments and the associated regulatory lag in cost recovery, Idaho Power filed rate cases in Idaho in 2023, 2024, and 2025, and Oregon in 2023 and expects that it will likely file rate cases or seek other types of regulatory relief on a regular basis in the next few years.
Through its power cost adjustment mechanisms, Idaho Power expects to recover most (but not all) of the increase in net power supply costs caused by lower hydropower generation. The timing of recovery of the increased costs, however, may not occur until the subsequent power cost adjustment year, adversely affecting cash flows and liquidity.
Through its power cost adjustment mechanisms, Idaho Power expects to recover most (but not all) of any increase in net power supply costs caused by lower hydropower generation. The timing of recovery of the increased costs, however, may not occur until the subsequent power cost adjustment year, adversely affecting cash flows and liquidity.
All information technology systems are vulnerable to being disabled, unauthorized access, unintentional defects, user error, errors in system changes, and cybersecurity incidents. Idaho Power is in the process of pursuing complex business system upgrades, and these significant changes increase the risk of system interruption.
All information technology systems are vulnerable to being disabled, unauthorized access, unintentional defects, user error, errors in system changes, and cybersecurity incidents. Idaho Power is pursuing complex business system upgrades, and these significant changes increase the risk of system interruption.
Operating risks associated with Idaho Power's power supply, transmission, and distribution facilities include equipment failures, volatility in fuel and transportation pricing, interruptions in fuel supplies, increased regulatory compliance costs, changes necessitated by environmental legislation or litigation, labor disputes or attrition, accidents and workforce safety matters, environmental damage, property damage, wildfires, acts of terrorism or war or sabotage (both cyber and asset-based), disruptions in supply chains or price increases resulting in the inability to obtain needed equipment or materials on reasonable terms or at all, the loss of cost-effective disposal options for solid waste such as coal ash, operator error, and the occurrence of 28 Table of Contents catastrophic events at the facilities.
Operating risks associated with Idaho Power's power supply, transmission, and distribution facilities include equipment failures, volatility in fuel and transportation pricing, interruptions in fuel supplies, increased regulatory compliance costs, changes necessitated by environmental legislation or litigation, labor disputes or attrition, accidents and workforce safety matters, environmental damage, property damage, wildfires, acts of terrorism or war or sabotage (both cyber and asset-based), disruptions in supply chains or price increases resulting in the inability to obtain needed equipment or materials on reasonable terms or at all, the loss of cost-effective disposal options for solid waste such as coal ash, operator error, and the occurrence of catastrophic events at the facilities.
For additional information regarding Idaho Power's funding obligations under its benefit plans, see Note 11 - "Benefit Plans" to the consolidated financial statements included in this report. If the assumptions underlying coal mine reclamation at BCC and related forecast trust fund growth are materially inaccurate, Idaho Power’s costs could be greater than anticipated or be incurred sooner than anticipated .
For additional information regarding Idaho Power's funding obligations under its benefit plans, see Note 12 - "Benefit Plans" to the consolidated financial statements included in this report. If the assumptions underlying coal mine reclamation at BCC and related forecast trust fund growth are materially inaccurate, Idaho Power’s costs could be greater than anticipated or be incurred sooner than anticipated .
Co-owners of Idaho Power’s generation and transmission assets may have unaligned goals and positions due to the effects of legislation, regulations, capital requirements, load growth amounts, changes in its industry, or other factors, which could at times adversely impact Idaho Power’s ability to construct and operate those facilities in a manner most suitable to Idaho Power.
Co-owners of Idaho Power’s generation and transmission assets may have unaligned goals and positions due to the effects of legislation, regulations, capital requirements, load growth amounts, changes in its industry, or other factors, which could adversely impact Idaho Power’s ability to construct and operate those facilities in a manner most suitable to Idaho Power.
Idaho Power maintains business continuity and disaster recovery plans, but such plans may be inadequate or not function as anticipated, which could result in delayed recovery after any such events. Diminished availability or performance of those facilities could result in reduced customer satisfaction, reputational harm, liability to third parties (including tort liability), and regulatory inquiries and fines.
Idaho Power maintains business continuity and disaster recovery plans, but such plans may be inadequate or not function as anticipated, which could result in delayed recovery after any such events. Diminished availability or performance of those facilities could result in reduced customer satisfaction, reputational harm, liability to third parties, and regulatory inquiries and fines.
Accidents, acts of terrorism or war, electrical contacts, fires, explosions, catastrophic failures, general system damage or dysfunction, intentional acts of destruction, uncontrolled release of water from hydropower dams, and other unplanned events related to Idaho Power's infrastructure would increase repair costs and may expose Idaho Power to liability for personal injury, loss of life, and property damage.
Accidents, electrical contacts, fires, explosions, catastrophic failures, general system damage or dysfunction, intentional acts of destruction, uncontrolled release of water from hydropower dams, and other unplanned events related to Idaho Power's infrastructure would increase repair costs and may expose Idaho Power to liability for personal injury, loss of life, and property damage.
These risks include, but are not limited to, (1) the failure to timely obtain or construct additional resources to meet forecast needs related to load growth, (2) the rapid addition of new industrial and 27 Table of Contents commercial customer load and the volatility of such new load demand, (3) increased renewable energy generation presenting risks of uncertainty and variability that could be further compounded as neighboring systems transition towards increasing levels of renewable resources, and (4) increased potential resource volatility due to changes in the energy market.
These risks include, but are not limited to, (1) the failure to timely obtain or construct additional resources to meet forecast needs related to load growth, (2) the rapid addition of new industrial and commercial customer load and the volatility of such new load demand, (3) increased renewable energy generation presenting risks of uncertainty and variability that could be further compounded as neighboring systems transition towards increasing levels of renewable resources, and (4) increased potential resource volatility due to changes in the energy market.
Changes in weather conditions, severe weather, and the impacts of climate change can affect IDACORP's and Idaho Power's operating results and cause them to fluctuate seasonally. Idaho Power's electric power sales are seasonal, with demand in Idaho Power's service area peaking during the hot summer months, with a secondary peak during the cold winter months.
Changes in weather conditions, severe weather, and the impacts of climate change can affect IDACORP's and Idaho Power's operating results and cause them to fluctuate seasonally. Idaho Power's electric power sales are seasonal, with demand in Idaho Power's service area peaking during the summer months and a secondary peak during the winter months.
A significant portion of Idaho Power’s facilities were constructed many years ago, and thus require periodic upgrades and frequent maintenance. Also, short-term and long-term anticipated increases in both the number of customers and the demand for energy require expansion and reinforcement of that infrastructure as described in Idaho Power's 2023 IRP.
A significant portion of Idaho Power’s facilities were constructed many years ago, and thus require periodic upgrades and frequent maintenance. Also, short-term and long-term anticipated increases in both the number of customers and the demand for energy require expansion and reinforcement of that infrastructure as described in Idaho Power's 2025 IRP.
Idaho Power also enters into agreements with third-party contractors to perform work on its power supply, transmission, and distribution facilities, and may in some circumstances retain liability for the quality and completion of those contractors’ work, potentially subjecting Idaho Power to penalties, liability for personal injury, loss of life, or property damage, reputational harm, or enforcement actions or liability if a contractor violates applicable laws, rules, regulations, or orders.
Idaho Power also enters into agreements with third-party contractors to perform work on its power supply, transmission, and distribution facilities, and may in some circumstances retain liability for the quality and completion of those contractors’ work, potentially subjecting Idaho Power to penalties, liability for personal injury, loss of 27 Table of Contents life, or property damage, reputational harm, or enforcement actions or liability if a contractor violates applicable laws, rules, regulations, or orders.
Volatility in power supply costs continues to be significant, in large part due to fluctuations in hydropower generation conditions, fuel cost variability from factors including supply chain disruptions and inflation, supply and demand economics for fuel and power, the impact of high costs to purchase renewable energy under mandatory long-term contracts, and market price variability for power purchases from third parties based on seasonal demands and transmission system constraints.
Volatility in power supply costs continues to be significant, in large part due to fluctuations in hydropower generation conditions, fuel cost variability from factors including supply chain disruptions and inflation, supply and demand economics for fuel and power, high costs to purchase renewable energy under mandatory long-term contracts, and market price variability for power purchases from third parties based on seasonal demands and transmission system constraints.
Idaho Power cannot predict the requirements that might be imposed during the relicensing and permitting process, the financial impact of those requirements, whether a new multi-year license will ultimately be issued, and whether the IPUC or OPUC will allow recovery through rates of the substantial costs incurred in connection with the licensing process and subsequent compliance.
Idaho Power cannot 30 Table of Contents predict the requirements that might be imposed during the relicensing and permitting process, the financial impact of those requirements, whether a new multi-year license will ultimately be issued, and whether the IPUC or OPUC will allow recovery through rates of the substantial costs incurred in connection with the licensing process and subsequent compliance.
Volatility or disruptions in the financial markets, failure of IDACORP or Idaho Power to satisfy conditions necessary for obtaining loans or issuing debt securities, and denial of regulatory authority to issue debt or equity securities, may negatively affect IDACORP’s and Idaho Power’s ability to access capital and/or increase their cost of borrowing and ability to execute on their strategic plans .
Volatility or disruptions in the financial markets, failure of IDACORP or Idaho Power to satisfy conditions necessary for obtaining loans or issuing debt securities, and denial of regulatory authority to issue debt or equity securities, may negatively 31 Table of Contents affect IDACORP’s and Idaho Power’s ability to access capital and/or increase their cost of borrowing and ability to execute on their strategic plans .
While Idaho Power negotiates and enforces its rights and obligations thoughtfully, differences in the co-owners’ willingness or ability to continue their participation or the timing of facility construction, modification, or decommissioning could lead to restrictions and disruptions to operations, adverse financial impacts to Idaho Power, and/or uncertainty related to the resulting cost recovery of such assets.
While Idaho Power negotiates and enforces its rights and obligations thoughtfully, differences in 28 Table of Contents the co-owners’ willingness or ability to continue their participation or the timing of facility construction, modification, or decommissioning could lead to restrictions and disruptions to operations, adverse financial impacts to Idaho Power, and/or uncertainty related to the resulting cost recovery of such assets.
Any data security breaches, such as misappropriation, misuse, leakage, falsification or accidental release or loss of information maintained in Idaho Power's information technology systems or on third-party systems, including customer or employee data, could result in violations of privacy and other laws and associated litigation and liability for damages, fines, and penalties; financial loss to Idaho Power or to its customers; customer dissatisfaction or diminished customer confidence; and damage to Idaho Power’s reputation, all of which could materially adversely affect Idaho Power's financial condition and results of operations.
Any data security breaches, such as misappropriation, misuse, leakage, falsification or accidental release or loss of information maintained in Idaho Power's information technology systems or on third-party systems, including customer or employee data, could result in violations of privacy and other laws and associated litigation and liability; financial loss to Idaho Power or to its customers; customer dissatisfaction or diminished customer confidence; and damage to Idaho Power’s reputation, all of which could materially adversely affect Idaho Power's financial condition and results of operations.
If new laws, regulations, or enforcement policies were to become effective, they could result in significant additional compliance and remediation costs that could negatively impact Idaho Power's future financial position, results of operations, and cash flows if such costs are not timely recovered through regulated rates.
If new laws, regulations, or enforcement policies were to 32 Table of Contents become effective, they could result in significant additional compliance and remediation costs that could negatively impact Idaho Power's future financial position, results of operations, and cash flows if such costs are not timely recovered through regulated rates.
A significant failure of a participant in the Western EIM to make payments when due on its obligations could have a ripple effect on various Idaho Power counterparties in the power, gas, and derivative markets if those 34 Table of Contents counterparties experience ancillary liquidity issues, and could generally result in a decline in the ability of Idaho Power’s counterparties to perform on their obligations.
A significant failure of a participant in the Western EIM to make payments when due on its obligations could have a ripple effect on various Idaho Power counterparties in the power, gas, and derivative markets if those counterparties experience ancillary liquidity issues, and could generally result in a decline in the ability of Idaho Power’s counterparties to perform on their obligations.
While Idaho Power does not rely entirely on third-party vendors for many of these business functions, the unavailability of such vendors at a reasonable cost 29 Table of Contents or at all could adversely affect the quality and cost of Idaho Power's electric service and negatively impact its results of operation.
While Idaho Power does not rely entirely on third-party vendors for many of these business functions, the unavailability of such vendors at a reasonable cost or at all could adversely affect the quality and cost of Idaho Power's electric service and negatively impact its results of operation.
Costs of providing these benefits are based in part on the value of the plans' assets and, therefore, adverse investment performance for these assets or the failure to maintain sustained growth in pension investments over time could increase Idaho Power’s plan costs and funding requirements related to the plans.
Costs of providing these benefits are based in part on the value of the plans' assets and, therefore, adverse investment performance for these assets or the failure to maintain sustained growth in pension investments over time 33 Table of Contents could increase Idaho Power’s plan costs and funding requirements related to the plans.
Extreme weather conditions creating high energy demand may raise wholesale electricity prices for power that Idaho Power purchases to serve customers, increasing the cost of energy Idaho Power provides to its customers, and at the same time can increase the revenues Idaho Power receives for wholesale market sales of excess generation during regional extreme weather events.
Extreme weather conditions creating high energy demand may raise wholesale electricity prices for power that Idaho Power purchases to serve customers, increasing the cost of energy Idaho Power provides to its customers, and at the same time can increase the revenues Idaho Power receives for wholesale market sales of excess generation.
The outcome of potential future income tax 30 Table of Contents proceedings or laws, or the state public utility commissions' treatment of those outcomes, could differ materially from the amounts IDACORP and Idaho Power record prior to conclusion of those proceedings, and the difference could negatively affect IDACORP’s and Idaho Power’s earnings and cash flows.
The outcome of potential future income tax proceedings or laws, or the state public utility commissions' treatment of those outcomes, could differ materially from the amounts IDACORP and Idaho Power record prior to conclusion of those proceedings, and the difference could negatively affect IDACORP’s and Idaho Power’s earnings and cash flows.
Idaho Power owns certain of its generation and transmission assets jointly with other owners, with varying ownership interests in such facilities, and Idaho Power plans to develop and own assets jointly in the future.
Idaho Power owns some of its generation and transmission assets jointly with other owners, with varying ownership interests in such facilities, and Idaho Power plans to develop and own assets jointly in the future.
Acts or threats of terrorism, acts of war, social unrest, cyber or physical security attacks, and other malicious acts of individuals or groups seeking to disrupt Idaho Power's operations or the electric power grid or compromise data could 25 Table of Contents adversely impact IDACORP's and Idaho Power's business, financial condition, and results of operations.
Acts or threats of terrorism, acts of war, social unrest, cyber or physical security attacks, and other malicious acts of individuals or groups seeking to disrupt Idaho Power's operations or the electric power grid or compromise data could adversely impact IDACORP's and Idaho Power's business, financial condition, and results of operations.
This may result in business interruption, lost revenue, higher commodity prices, disruption in fuel supplies, lower energy consumption, and unstable commodity and financial markets, 26 Table of Contents particularly with respect to electricity and natural gas, any of which may materially adversely affect Idaho Power.
This may result in business interruption, lost revenue, higher commodity prices, disruption in fuel supplies, lower energy consumption, and unstable commodity and financial markets, particularly with respect to electricity and natural gas, any of which may materially adversely affect Idaho Power.
Due to Idaho Power’s heavy reliance on hydropower generation, the impacts of factors such as precipitation and snowpack, the timing of run-off, requirements for flood control, and the availability of water in the Snake River Basin can significantly affect its operations.
Due to Idaho Power’s heavy reliance on hydropower 26 Table of Contents generation, the impacts of factors such as precipitation and snowpack, the timing of run-off, requirements for flood control, and the availability of water in the Snake River Basin can significantly affect its operations.
While the power cost adjustment mechanisms function to mitigate the potentially adverse impact on net income of power supply cost volatility, the mechanisms do not eliminate the cash flow impact of that volatility.
While the power cost adjustment mechanisms function to mitigate adverse impacts on net income of power supply cost volatility, the mechanisms do not eliminate the cash flow impact of that volatility.
Even if IDACORP's board of directors favors a sale of the company, a sale would require approval of a number of federal and state regulatory agencies, including the FERC, the IPUC, the OPUC, and the WPSC. The approval process could be lengthy and the outcome uncertain, which may deter otherwise interested parties from proposing or attempting a business combination.
Even if IDACORP's board of directors were to favor a sale of the company, a sale would require approval of a number of federal and state regulatory agencies, including the FERC, the IPUC, OPUC, and WPSC. The approval process could be lengthy and the outcome uncertain, which may deter otherwise interested parties from proposing or attempting a business combination.
Disruptions in transportation of fuel and defaults by coal and natural gas suppliers may cause Idaho Power to seek alternative, and potentially more costly, sources of fuel or rely on other generation sources or wholesale market power purchases.
Any disruptions in transportation of fuel and defaults by natural gas and coal suppliers may cause Idaho Power to seek alternative, and potentially more costly, sources of fuel or rely on other generation sources or wholesale market power purchases, if available.
The unavailability of expected tax credits or other tax benefits, whether due to a change in law, interpretation, or otherwise, could also have an adverse impact on the economic viability of certain of its planned or existing facilities.
The unavailability of expected tax credits or other tax benefits, whether due to a change in law, interpretation, or otherwise, could also have an adverse impact on the economic viability of certain of Idaho Power's planned or existing facilities.
This could in turn result in reduced revenues as well as write-downs or write-offs if regulators determine that the costs of the projects were incurred imprudently, which could have a material adverse impact on IDACORP's and Idaho Power's financial condition, results of operations, and cash flows.
This could in turn result in reduced revenues, earnings, and cash flows, as well as write-downs or write-offs if regulators determine that the costs of the projects were incurred 22 Table of Contents imprudently, which could have a material adverse impact on IDACORP's and Idaho Power's financial condition, results of operations, and cash flows.
Proposals have included imposing mandatory reductions in GHG emissions, which could increase Idaho Power’s power supply and compliance costs or require generation facilities to be retired early, resulting in potential stranded costs and write-downs or write-offs if Idaho Power is unable to fully recover investments in such facilities.
Proposals have included imposing mandatory reductions in GHG emissions, which could increase Idaho Power’s power supply and compliance costs or require generation facilities to be 23 Table of Contents retired early, resulting in potential stranded costs and write-downs or write-offs if Idaho Power is unable to fully recover investments in such facilities.
While Idaho Power has recently experienced a net growth in usage due to an increase in the number of customers, when adjusted for the impacts of weather, the average monthly usage on a per customer basis for Idaho Power's residential customers has declined from 1,032 kWh in 2012 to 914 kWh in 2024 .
While Idaho Power has recently experienced a net growth in usage due to an increase in the number of customers, when adjusted for the impacts of weather, the average monthly usage on a per customer basis for Idaho Power's residential customers has declined from 1,032 kWh in 2012 to 922 kWh in 2025 .
Demand for power could exceed supply, particularly in light of the rapid addition of new industrial and commercial customer load, resulting in deliverability risks and increased costs for, or difficulty in, purchasing capacity in the market or acquiring or constructing additional generation resources and battery storage facilities .
Demand for power could exceed Idaho Power's available generation capacity, particularly in light of the rapid addition of new industrial and commercial customer load, resulting in deliverability risks and increased costs for, or difficulty in, purchasing capacity in the market or acquiring or constructing additional generation resources and battery storage facilities .
Natural gas transportation to Idaho Power's three natural gas plants in Idaho is limited to one primary p ipeline, and natural gas transportation to the Jim Bridger plant is also limited to a separate, single pipeline, presenting a heightened possibility of supply constraint and disruptions separate from the risk of counterparty default.
Natural gas transportation to Idaho Power's three natural gas plants in Idaho is limited to one primary p ipeline, and natural gas transportation to each of the Jim Bridger plant and the North Valmy plant is also limited to a separate, single pipeline for each plant, presenting a heightened possibility of supply constraint and disruptions separate from the risk of counterparty default.
Changes in legislation, regulation, and government policy may have a material adverse effect on IDACORP’s and Idaho Power’s business in the future.
Changes in legislation, regulation, and government policy may have a material adverse effect on IDACORP’s and Idaho Power’s business.
Also, changing customer needs and expectations, such as a desire for increased renewable or low GHG-emitting sources of energy, increased customer rates as a result of recent rate cases and any future rate cases, and increased competition from customer-owned generation could lead to lower customer satisfaction, reduced loyalty, difficulty in obtaining rate increases, legislation to deregulate electric service, and customers seeking alternative sources of energy and electric service.
Also, changing customer needs and expectations, such as a desire for increased renewable or low GHG-emitting sources of energy, increased customer rates, and increased competition from customer-owned generation could lead to lower customer satisfaction, reduced loyalty, difficulty in obtaining rate increases, legislation to deregulate electric service, and customers seeking alternative sources of energy and electric service.
Idaho Power's 2023 IRP identified a low-cost preferred resource portfolio and action plan for the next 20-year period that includes adding substantial renewable resources and the conversion from coal to natural gas of two units at the Jim Bridger plant in 2024, the two units at the North Valmy plant in 2026, and the remaining two units at the Jim Bridger plant in 2030.
Idaho Power's 2025 IRP identified a low-cost preferred resource portfolio and action plan for the next 20-year period that includes adding substantial renewable resources and the conversion from coal to natural gas of the two units at the North Valmy plant by mid-2026 and the remaining two units at the Jim Bridger plant in 2030.
Idaho Power is unable to estimate the costs of complying with such legislative or regulatory changes due to the uncertainties associated with the nature and implementation of the changes, and may not be able to recover the associated costs.
Idaho Power is unable to estimate the costs of complying with recent legislative and regulatory changes due to the uncertainties associated with the nature and implementation of the changes, and may not be able to recover the associated costs.
At times, Idaho Power’s energy risk management policy results in Idaho Power entering into economic hedges in an environment where prices are high, and if prices are lower at the time the economic hedge settles, Idaho Power will record losses on the economic hedges.
At times, Idaho Power’s energy risk management policy results in Idaho Power entering into economic hedges in an environment where prices are high, and if prices are lower at the time the economic hedge settles, Idaho Power will record losses on the economic hedges, which could be substantial.
Downgrades of IDACORP’s or Idaho Power’s credit ratings, or those affecting relationship banks, could limit the companies’ ability to access short- and long-term capital under reasonable terms or at all, reduce the pool of potential lenders, increase borrowing costs under the Credit Facilities, limit access to the commercial paper market, require the companies to pay a higher interest rate on their debt, limit the ability of IDACORP to declare and make dividends, and require the companies to post additional performance assurance collateral with transaction counterparties.
Downgrades of IDACORP’s or Idaho Power’s credit ratings, or those affecting relationship banks, could limit the companies’ ability to access short- and long-term capital under reasonable terms or at all, increase borrowing costs under the Credit Facilities, require the companies to pay a higher interest rate on their debt, limit the ability of IDACORP to declare and make dividends, and require the companies to post additional performance assurance collateral with transaction counterparties.
In particular, in recent years the net cost of solar and wind generation and storage technology has decreased significantly, and there are federal and state regulations, laws, and other incentives in place to help further reduce the net cost of solar, wind, and energy storage facilities.
In particular, in recent years the net cost of solar and wind generation and storage technology has decreased significantly, and there have been federal and state regulations, laws, and other incentives to help further reduce the net cost of solar, wind, and energy storage facilities.
Fires alleged to have been caused by Idaho Power's transmission, distribution, or generation infrastructure, or that allegedly result from Idaho Power’s or its contractors’ operating or maintenance practices, have exposed, and in the future could expose, Idaho Power to claims for fire suppression and clean-up costs, evacuation costs, fines and penalties, and liability for economic damages, personal injury, loss of life, property damage, and environmental pollution, whether based on claims of negligence, trespass, or otherwise.
Fires alleged to have been caused by Idaho Power's transmission, distribution, or generation infrastructure, or that allegedly result from Idaho Power’s or its contractors’ operating or maintenance practices, have exposed, and in the future could expose, Idaho Power to claims for fire suppression and clean-up costs, evacuation costs, fines and penalties, and liability for economic damages, personal injury, loss of life, property damage, inverse condemnation, and environmental pollution.
Idaho Power comprises nearly all of IDACORP's operations, and Idaho Power's business is concentrated solely in the electric power industry. Furthermore, Idaho Power's provision of electric service to retail customers is conducted exclusively in its southern Idaho and eastern Oregon service area.
Idaho Power comprises nearly all of IDACORP's operations, and Idaho Power's business is concentrated solely in the electric power industry. Furthermore, Idaho Power's provision of electric service to retail customers is conducted exclusively in its southern Idaho and eastern Oregon service area and, following completion of the Oregon Sale, will be conducted exclusively in its southern Idaho service area.
There have been cyber and physical attacks on energy infrastructure within the energy industry and on Idaho Power specifically in the past, and there are likely to be additional attacks in the future.
There have been cyber and physical attacks on energy infrastructure within the energy industry and on Idaho Power specifically in the past, and there are likely to be additional attacks in the future on Idaho Power, its vendors, and other utilities.
Idaho Power's 2023 IRP preferred resource portfolio and action plan included a need to ac quire significant generation and storage resources to meet forecasted increasing energy and capacity needs.
Idaho Power's 2025 IRP preferred resource portfolio included a need to ac quire significant generation and storage resources to meet forecasted increasing energy and capacity needs.
Idaho Power, its contractors, and its customers have experienced coverage reductions and increased wildfire insurance costs and may continue to do so in future years. Idaho Power may be unable to recover costs in excess of insurance through customer rates or regulatory mechanisms and, even if such recovery is possible, it could take several years to collect.
In the past, Idaho Power has experienced coverage reductions and increased wildfire insurance costs and may continue to do so in future years. Idaho Power may be unable to recover costs in excess of insurance through customer rates or regulatory mechanisms and, even if such recovery is possible, it could take several years to collect.
In addition, the stock market in general has experienced volatility that has often been unrelated to the operating performance of a particular company. These broad market fluctuations may adversely affect the market price of IDACORP's common stock. IDACORP's charter and bylaws and Idaho or Oregon law could delay or prevent a change in control that shareholders may favor.
In addition, the stock market in general has experienced volatility that has often been unrelated to the operating performance of a particular company. These broad market fluctuations may adversely affect the market price of IDACORP's common stock. IDACORP's charter and bylaws and various legal and regulatory factors could delay or prevent a change in control that shareholders may favor.
Idaho Power maintains insurance coverage for such risks, but insurance coverage is subject to terms and limitations and may not be sufficient to cover Idaho Power’s ultimate liability. Coverage limits within wildfire insurance policies could result in material self-insured costs due to self-insured retention amounts under the terms of Idaho Power’s insurance policies.
Idaho Power maintains insurance coverage for such risks, but insurance coverage is subject to terms and limitations and may not be sufficient to cover Idaho Power’s ultimate liability. Coverage limits within Idaho Power's wildfire insurance policies could result in material self-insured costs.
Any of these 32 Table of Contents circumstances could result in write-offs and have a material effect on IDACORP's and Idaho Power’s financial condition and results of operations.
Any of these circumstances could result in write-offs and have a material adverse effect on IDACORP's and Idaho Power’s financial condition and results of operations.
Market prices for coal and natural gas are volatile and influenced by factors impacting supply and demand such as weather conditions, the adequacy and type of generating capacity, fuel transportation availability, economic conditions, regulations related to GHG emissions, changes in technology, moratoriums on federally leased coal, and increases in coal lease costs.
Market prices for coal and natural gas are volatile and influenced by factors impacting supply and demand such as weather conditions, the adequacy and type of generating capacity, fuel transportation availability, economic conditions, regulations related to GHG emissions, and changes in technology.
No security measures can completely shield Idaho Power's systems, infrastructure, and data from vulnerabilities to cyber attacks, human error, intrusions, or other catastrophic events that could result in their failure or reduced functionality, and ultimately the potential loss of sensitive information or the loss of Idaho Power's ability to fulfill critical business functions and provide reliable electric power to customers.
No security measures can completely shield Idaho Power's systems, infrastructure, and data from vulnerabilities that could result in their failure or reduced functionality, and ultimately the potential loss of sensitive information or the loss of Idaho Power's ability to fulfill critical business functions and provide reliable electric power to customers.
During 2024 and 2023, 54 percent and 55 percent, respectively, o f Idaho Power's electric power from Idaho Power-owned generation was from hydropower facilities.
During 2025 and 2024, 52 percent and 54 percent, respectively, o f Idaho Power's electric power from Idaho Power-owned generation was from hydropower facilities.
Changes in the number of customers and customers' use of electricity are affected by a number of factors, such as population growth or decline in Idaho Power's service area, expansion or loss of service area, changes in customer needs and expectations, changes to customer rates, adoption rates of energy efficiency measures, customer-generated power such as from solar panels and gas-fired generators, demand-side management requirements, regulation or deregulation, and economic conditions.
Changes in the number of customers and customers' use of electricity are affected by a number of factors, such as population growth or decline, expansion or loss of service area, changes in customer needs and expectations, customer rates, energy efficiency measures, customer-generated power, demand-side management requirements, regulation or deregulation, and economic conditions.
Idaho Power's current coal supply arrangements are under long-term contracts for coal originating in Wyoming, Utah, and Colorado, and thus Idaho Power is exposed to risk of disruption of coal production in, or transportation from, those regions.
Idaho Power's current coal supply arrangements are under long-term contracts for coal originating in Wyoming, and Idaho Power is exposed to risk of disruption of coal production in, or transportation from, its coal suppliers.
Many states and localities may continue to pursue climate policies in addition to federal mandates. Failure to comply with environmental laws and regulations, even if such non-compliance is caused by factors outside of Idaho Power's control, may result in the assessment of civil or criminal penalties or fines, or government enforcement actions.
Failure to comply with environmental laws and regulations, even if such non-compliance is caused by factors outside of Idaho Power's control, may result in the assessment of civil or criminal penalties or fines, or government enforcement actions.
Network, information systems, and technology-related events, including those caused by IDACORP or Idaho Power through process breakdowns, human error, security architecture or design vulnerabilities, or by third parties through cyber or physical security attacks, could result in a degradation or disruption in the energy grid and the services of the companies, as well as the ability to record, process, and report customer, business, and financial information.
Network, information systems, and technology-related events, including those caused by Idaho Power or by third parties, could result in a degradation or disruption in the energy grid and the services of the companies, as well as the ability to record, process, and report customer, business, and financial information.
Forecasts of future fuel needs and loads and available resources to meet those loads are inherently uncertain and may cause Idaho Power to over- or under-hedge actual resource needs, exposing the company to market risk on the over- or under-hedged position.
The power cost adjustment mechanisms generally provide that Idaho Power will incur a portion of those losses. Forecasts of future fuel needs and loads and available resources to meet those loads are inherently uncertain and may cause Idaho Power to over- or under-hedge actual resource needs, exposing the company to market risk on the over- or under-hedged position.
From time to time in the normal course of business, IDACORP and Idaho Power are subject to various lawsuits, regulatory proceedings, disputes, and claims that could result in adverse judgments or settlements, fines, penalties, injunctions, or other adverse consequences.
From time to time in the normal course of business, IDACORP and Idaho Power are subject to various lawsuits, regulatory proceedings, disputes, and claims that could result in adverse judgments or settlements, fines, penalties, injunctions, or other adverse consequences. These matters are subject to a number of uncertainties, and management is often unable to predict the outcome of such matters.
If access to capital were to become significantly constrained or costs of capital increased significantly due to lowered credit ratings, prevailing industry conditions, regulatory constraints, the volatility of the capital markets, or other factors, IDACORP's and Idaho Power's ability to pursue improvements or acquisitions (including generating capacity and transmission assets, which may be necessary for future growth), liquidity, financial condition, and results of operations could be adversely affected. 33 Table of Contents Stakeholder actions and regulatory activity related to sustainability matters, particularly global climate change and reducing GHG emissions, could negatively impact IDACORP and Idaho Power.
If access to capital were to become significantly constrained or costs of capital increased significantly due to lowered credit ratings, prevailing industry conditions, regulatory constraints, the volatility of the capital markets, or other factors, IDACORP's and Idaho Power's ability to pursue improvements or acquisitions (including generating capacity and transmission assets, which may be necessary for future growth), liquidity, financial condition, and results of operations could be adversely affected.
In 2024, Idaho Power recorded losses on economic hedges of $63.3 million, compared with $16.2 million of losses in 2023.
In 2025, Idaho Power recorded losses on economic hedges of $37.7 million, compared with $63.3 million of losses in 2024.
Some of Idaho Power's facilities are deemed "critical infrastructure" under federal standards, in that incapacity or destruction of the facilities could have a debilitating impact on security, reliability, or operability of the bulk electric power system, national economic security, and public health and safety.
The utility industry is continuing to experience an increase in the frequency and sophistication of cybersecurity incidents. 24 Table of Contents Some of Idaho Power's facilities are deemed "critical infrastructure" under federal standards, in that incapacity or destruction of the facilities could have a debilitating impact on security, reliability, or operability of the bulk electric power system, national economic security, and public health and safety.
The legal costs and final resolution of matters in which IDACORP or Idaho Power are involved could have reputational impact and a short- or long-term negative effect on their financial condition and results of operations.
Resulting liabilities could exceed amounts currently reserved or insured against with respect to such matter. The legal costs and final resolution of matters in which IDACORP or Idaho Power are involved could have reputational impact and a short- or long-term negative effect on their financial condition and results of operations.
Idaho Power has in place mechanisms to help 24 Table of Contents mitigate the effects of energy market price volatility, but there is no assurance these mechanisms will continue to be in place or function as intended.
Idaho Power has in place mechanisms to help mitigate the effects of energy market price volatility, but these mechanisms may not continue to be in place or function as intended.
The level of investments that Idaho Power expects to make in capital improvements and expenditures for infrastructure projects over the next five years is roughly double what it was in the immediately preceding five years. These projects are subject to usual permitting and construction risks that can adversely affect project costs and the completion time.
The level of investments that Idaho Power expects to make in capital improvements and expenditures for infrastructure projects over the next five years is over $1.2 billion per year 25 Table of Contents on average. These projects are subject to usual permitting and construction risks that can adversely affect project costs and the completion time.
Depending on the timing of contributions to the plans and Idaho Power's ability to recover costs through rates, cash contributions to the plans could reduce the cash available for the companies' businesses and payment of dividends.
Future pension funding requirements and the timing of funding payments are also subject to the impacts of changes in legislation. Depending on the timing of contributions to the plans and Idaho Power's ability to recover costs through rates, cash contributions to the plans could reduce the cash available for the companies' businesses and payment of dividends.
Idaho Power is participating in three high-voltage transmission line projects and has also entered into contracts to purchase and own 300 MW of wind generation and 1,320 MWh of new battery storage assets expected to come online from 2025 to 2027, as well as issued RFPs for new resources, which are intended to help meet increasing customer energy demands.
Idaho Power is participating in three high-voltage transmission line projects, has applied for a CPCN for additional gas-fueled generating capacity next to an existing gas power plant, and has also entered into contracts to purchase, own, and utilize, 1,400 MWh of new battery storage assets expected to come online from 2026 to 2028, as well as issued RFPs for new resources, which are intended to help meet increasing customer energy demands.
Rate mechanisms, such as the Idaho FCA for residential and small commercial customers, are designed to address the financial disincentive associated with promoting energy efficiency activities, but there is no assurance that the mechanism will result in full or timely collection of Idaho Power's fixed costs, which are currently collected in large part through the company's volume-based energy rates that are based on historical sales volume.
Rate mechanisms, such as the Idaho FCA for residential and small commercial customers, are designed to address the financial disincentive associated with promoting energy efficiency activities, but there is no assurance that the mechanism will result in full or timely collection of Idaho Power's fixed costs. Any undercollection of fixed costs would adversely impact revenues, earnings, and cash flows.
There can be no assurance that any rate case filed by Idaho Power will result in an outcome that is satisfactory for Idaho Power. In the past, Idaho Power has been denied recovery, or required to defer recovery pending the next general rate case, including denials or deferrals related to capital expenditures for long-term project expenses.
In the past, Idaho Power has been denied recovery, or required to defer recovery pending the next general rate case, including denials or deferrals related to capital expenditures for long-term project expenses.
To the extent that such changes have a negative impact on the companies or Idaho Power’s customers, including as a result of related uncertainty, these changes may materially and adversely impact IDACORP’s and Idaho Power’s business, financial condition, results of operations, and cash flows.
To the extent that such changes have a negative impact on the companies or Idaho Power’s customers, these changes may materially and adversely impact IDACORP’s and Idaho Power’s business, financial condition, results of operations, and cash flows. Changes in tax laws and regulations, or differing interpretation or enforcement of applicable laws by the U.S.
Obligations imposed in connection with hydropower license renewals and permitting may require large capital expenditures, increase operating costs, reduce hydropower generation, and negatively affect IDACORP's or Idaho Power's results of 31 Table of Contents operations and financial condition .
For further discussion of environmental matters that may affect Idaho Power, see "Environmental Matters" in Item 7 - MD&A in this report. Obligations imposed in connection with hydropower license renewals and permitting may require large capital expenditures, increase operating costs, reduce hydropower generation, and negatively affect IDACORP's or Idaho Power's results of operations and financial condition .
Continued inflationary pressures, including as a result of new or increased tariffs or other trade restrictions, or a n economic downturn or recession, could also negatively impact customer use and reduce revenues and cash flows, thus adversely affecting results of operations.
Inflationary pressures, including as a result of new or increased tariffs or other trade restrictions, or a n economic downturn, could also negatively impact customer use and reduce revenues and cash flows, thus adversely affecting results of operations. Many electric utilities, including Idaho Power, have experienced a long-term decline in usage per customer, in part attributable to energy efficiency activities.
In 2019, Idaho Power announced its long-term goal to serve customers with 100-percent clean energy by 2045, and Idaho Power has short-term and medium-term goals for CO 2 emission reductions, which could impact infrastructure resource decisions and costs.
Idaho Power has announced long-term, medium-term, and short-term goals for CO 2 emission reductions, which could impact infrastructure resource decisions and costs.
IDACORP is also subject to the provisions of the Idaho Control Share Acquisition Act and the Idaho Business Combination Act, which provide for certain procedures and restrictions in connection with acquisitions or business combinations. In addition, Oregon law requires shareholders to obtain advance approval from the OPUC before acquiring 5% stock ownership in an Oregon public utility.
IDACORP is also subject to the provisions of the Idaho Control Share Acquisition Act and the Idaho Business Combination Act, which provide for certain procedures and restrictions in connection with acquisitions or business combinations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe companies have utilized and continue to utilize recognized third-party cybersecurity standards such as those published by the Center for Internet Security and the U.S. National Institute of Standards and Technology in developing their risk management framework for cybersecurity, their cybersecurity processes, controls, and procedures, and risk identification.
Biggest changeIDACORP and Idaho Power include risks from cybersecurity threats, including from use of third-party service providers, as part of the companies' enterprise risk assessment process. The companies have utilized and continue to utilize recognized third-party cybersecurity standards such as those published by the Center for Internet Security and the U.S.
For the year ended December 31, 2024, and the subsequent period to the date of this report, IDACORP and Idaho Power believe that no risks from known cybersecurity incidents have materially affected or are reasonably likely to materially affect IDACORP or Idaho Power, including their business strategy, results of operations, and financial condition.
For the year ended December 31, 2025, and the subsequent period to the date of this report, IDACORP and Idaho Power believe that no risks from known cybersecurity incidents have materially affected or are reasonably likely to materially affect IDACORP or Idaho Power, including their business strategy, results of operations, and financial condition.
In appropriate cases, an incident response team is activated to lead the companies' response. The team is composed of individuals from the cybersecurity team and other departments within the companies with relevant expertise, as well as third-party contractors and vendors.
Under the plan, in appropriate cases, an incident response team is activated to lead the companies' response. The team is composed of individuals from the cybersecurity team and other departments within the companies with relevant expertise, as well as third-party contractors and vendors.
The cybersecurity team monitors and reviews threat intelligence feeds from various sources, including security vendors and U.S. federal and state agencies, to determine potential risks to the companies' information and control systems. Additionally, the team utilizes a defense-in-depth approach to cybersecurity that provides layers of defenses and monitoring/alerting to which the team responds.
The cybersecurity team monitors and reviews threat intelligence feeds from various sources, including security vendors and U.S. federal and state agencies, to determine potential risks to the companies' information and control systems. Additionally, the team utilizes a defense-in-depth approach to cybersecurity that provides layers of defenses and monitoring/alerting to which the 35 Table of Contents team responds.
As 36 Table of Contents part of the companies' strategy to manage risks from cybersecurity threats with third-party service providers, the companies seek to include appropriate security clauses in their contracts with those providers, including incident reporting requirements.
As part of the companies' strategy to manage risks from cybersecurity threats with third-party service providers, the companies seek to include appropriate security clauses in their contracts with those providers, including incident reporting requirements.
Those activities include briefing the audit committee and the board on information security matters several times a year in their regular meetings and on an ad hoc basis, conducting an annual security training program, and arranging for external security assessments.
Those activities include briefing the audit committee and the board on information security matters several times a year in their regular meetings and on an ad hoc basis, conducting an annual security training program, and arranging for external security assessments. Together with the audit committee, the board's executive committee assists the board in monitoring management’s risk management framework for cybersecurity.
The companies engage with consultants and other third parties as necessary to design, enhance, and implement appropriate cybersecurity measures in seeking to mitigate risks from cybersecurity threats.
National Institute of Standards and Technology in developing their risk management framework for cybersecurity, their cybersecurity processes, controls, and procedures, and risk identification. The companies engage with consultants and other third parties, as necessary, to design, enhance, and implement appropriate cybersecurity measures in seeking to mitigate risks from cybersecurity threats.
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Together with the audit committee, the board's executive committee assists the board in monitoring management’s risk management framework for cybersecurity on a regular basis. IDACORP and Idaho Power include risks from cybersecurity threats, including from use of third-party service providers, as part of the companies' enterprise risk assessment process.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIdaho Power considers its properties to be well-maintained and in good operating condition. 37 Table of Contents Through IERCo, Idaho Power owns a one-third interest in BCC and coal leases near the Jim Bridger plant in Wyoming from which coal is mined and supplied to the plant.
Biggest changeThrough IERCo, Idaho Power owns a one-third interest in BCC and coal leases near the Jim Bridger plant in Wyoming from which coal is mined and supplied to generating units 3 and 4 of the plant. Ida-West holds 50-percent interests in nine hydropower plants that have a total nameplate capacity of 44 MW.
Idaho Power’s system is composed of 17 hydropower generating plants located in southern Idaho and eastern Oregon, three natural gas-fired plants in southern Idaho, and interests in a coal-fired and natural gas-fired steam generating plant located in Wyoming and a coal-fired steam generating plant in Nevada.
Idaho Power’s system is composed of 17 hydropower generating plants located in southern Idaho and eastern Oregon, three natural gas-fired plants in southern Idaho, and interests in a coal-fired and natural gas-fired steam generating plant located in Wyoming and a gas-fired steam generating plant in Nevada.
(5) The conversion of two generating units from coal to natural gas at the Jim Bridger plant was completed in the spring of 2024. Idaho Power's 2023 IRP identified a preferred resource portfolio and action plan that includes the conversion of the two remaining generating units from coal to natural gas at the Jim Bridger plant in 2030.
(5) The conversion of two generating units from coal to natural gas at the Jim Bridger plant was completed in the spring of 2024. Idaho Power's 2025 IRP identified a preferred resource portfolio and action plan that includes the conversion of the two remaining generating units from coal to natural gas at the Jim Bridger plant in 2030.
Project Nameplate Capacity (Kilowatt (kW)) (1) License Expiration Hydropower Projects: Properties Subject to Federal Licenses: (2) Lower Salmon 60,000 2034 Bliss 75,038 2034 Upper Salmon 34,500 2034 Shoshone Falls 14,729 2040 CJ Strike 82,800 2034 Upper Malad - Lower Malad 21,770 2035 HCC: Brownlee, Oxbow, and Hells Canyon 1,276,076 2005 (3) Swan Falls 27,170 2042 American Falls 92,340 2025 Cascade 12,420 2031 Milner 59,448 2038 Twin Falls 52,898 2040 Other Hydropower: Clear Lake - Thousand Springs 9,300 Total Hydropower 1,818,489 Steam and Other Generating Plants: Jim Bridger Units 1 and 2 (gas-fired) (4)(5) 388,008 Jim Bridger Units 3 and 4 (coal-fired) (4)(5) 387,278 North Valmy Unit 2 (coal-fired) (4)(6) 144,900 Danskin (gas-fired) 270,900 Langley Gulch (gas-fired) 318,453 Bennett Mountain (gas-fired) 172,800 Salmon (diesel-internal combustion) 5,000 Total Steam and Other 1,687,339 Total Generation 3,505,828 (1) Actual generation capacity from a facility may be greater or less than the rated nameplate generation capacity.
Project Nameplate Capacity (Kilowatt (kW)) (1) License Expiration Hydropower Projects: Properties Subject to Federal Licenses: (2) Lower Salmon 60,000 2034 Bliss 75,038 2034 Upper Salmon 34,500 2034 Shoshone Falls 14,729 2040 CJ Strike 82,800 2034 Upper Malad - Lower Malad 21,770 2035 HCC: Brownlee, Oxbow, and Hells Canyon 1,276,076 2005 (3) Swan Falls 27,170 2042 American Falls 92,340 2025 (3) Cascade 12,420 2031 Milner 59,448 2038 Twin Falls 52,898 2040 Other Hydropower: Clear Lake - Thousand Springs 9,300 Total Hydropower 1,818,489 Steam and Other Generating Plants: Jim Bridger Units 1 and 2 (gas-fired) (4)(5) 388,008 Jim Bridger Units 3 and 4 (coal-fired) (4)(5) 387,278 North Valmy Unit 1 (gas-fired) (4)(6) 138,600 North Valmy Unit 2 (gas-fired) (4)(6) 144,900 Danskin (gas-fired) 270,900 Langley Gulch (gas-fired) 318,453 Bennett Mountain (gas-fired) 172,800 Salmon (diesel-internal combustion) 5,000 Total Steam and Other 1,825,939 Total Generation 3,644,428 (1) Actual generation capacity from a facility may be greater or less than the rated nameplate generation capacity.
As of December 31, 2024, the system also includes approximately 4,755 pole miles of high-voltage transmission lines, 23 step-up transmission substations located at power plants, 21 transmission substations, 12 switching stations, 30 mixed-use transmission and distribution substations, 187 energized distribution substations (excluding mobile substations and dispatch centers), approximately 29,660 linear miles of distribution lines, and a capacity of 908 MWh of battery storage, comprised of 7 facilities, located in southern Idaho and eastern Oregon.
As of December 31, 2025, the system also includes approximately 4,730 pole miles of high-voltage transmission lines, 23 step-up transmission substations located at power plants, 21 transmission substations, 12 switching stations, 31 mixed-use transmission and distribution substations, 188 energized distribution substations (excluding mobile substations and dispatch centers), approximately 30,020 linear miles of distribution lines, and a capacity of 1,228 MWh of battery storage, comprised of 9 facilities, located in southern Idaho and eastern Oregon.
Idaho Power’s property is subject to minor defects common to properties of such size and character that it believes do not materially impair the value to, or the use by, Idaho Power of such properties.
Idaho Power’s property is subject to minor defects common to properties of such size and character that it believes do not materially impair the value to, or the use by, Idaho Power of such properties. Idaho Power considers its properties to be well-maintained and in good operating condition.
IDACORP's and Idaho Power's headquarters are located in Boise, Idaho. The corporate headquarters campus consists of approximately 305,741 square feet of owned office space. Excluding Idaho Power's power generation facilities and substations, Idaho Power owns an additional 1,218,813 square feet of office, warehouse, and industrial space to support its operations in Idaho and Oregon.
Excluding Idaho Power's power generation facilities and substations, Idaho Power owns an additional 1,218,813 square feet of office, warehouse, and industrial space to support its operations in Idaho and Oregon.
Ida-West holds 50-percent interests in nine hydropower plants that have a total nameplate capacity of 44 MW. These plants are located in Idaho and California. Idaho Power's hydropower projects and other owned and co-owned generating facilities and their nameplate capacities, as of the date of this report, are included in the table below.
These plants are located in Idaho and California. 36 Table of Contents Idaho Power's hydropower projects and other owned and co-owned generating facilities and their nameplate capacities, as of the date of this report, are included in the table below.
(6) Pursuant to an agreement with NV Energy, Idaho Power ceased participation in coal-fired operations of North Valmy in December 2019 at unit 1. Idaho Power's 2023 IRP identified a preferred resource portfolio and action plan that includes the conversion of the two generating units at the North Valmy plant from coal to natural gas in 2026.
Idaho Power's 2025 IRP identified a preferred resource portfolio and action plan that includes the conversion of the two generating units at the North Valmy plant from coal to natural gas by mid-2026.
Added
As part of the Oregon Sale, Idaho Power expects to sell to OTEC substantially all of its Oregon distribution lines and several substations and certain other assets located in Oregon. IDACORP's and Idaho Power's headquarters are located in Boise, Idaho. The corporate headquarters campus consists of approximately 305,741 square feet of owned office space.
Added
(6) Pursuant to an agreement with NV Energy, Idaho Power ceased participation in coal-fired operations of North Valmy in December 2019 at unit 1 and December 2025 at unit 2.
Added
The conversion of unit 1 has been completed and was placed in-service in December 2025, and the conversion of unit 2 is expected to be completed by mid-2026.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS Refer to Note 10 – “Contingencies” to the consolidated financial statements included in this report. SEC regulations require IDACORP and Idaho Power to disclose certain information about proceedings arising under federal, state or local environmental provisions if the companies reasonably believe that such proceedings may result in monetary sanctions above a stated threshold.
Biggest changeITEM 3. LEGAL PROCEEDINGS Refer to Note 11 – “Contingencies” to the consolidated financial statements included in this report. SEC regulations require IDACORP and Idaho Power to disclose certain information about proceedings arising under federal, state or local environmental provisions if the companies reasonably believe that such proceedings may result in monetary sanctions above a stated threshold.
Pursuant to the SEC regulations, the companies use a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required. 38 Table of Contents
Pursuant to the SEC regulations, the companies use a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required. 37 Table of Contents

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeITEM 4. MINE SAFETY DISCLOSURES Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 of this report, which is incorporated herein by reference. 39 Table of Contents PART II
Biggest changeITEM 4. MINE SAFETY DISCLOSURES Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 of this report, which is incorporated herein by reference. 38 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeSource: Bloomberg and EEI 2019 2020 2021 2022 2023 2024 IDACORP $ 100.00 $ 92.53 $ 112.38 $ 110.06 $ 103.50 $ 118.97 S&P 500 100.00 118.39 152.34 124.72 157.48 196.85 EEI Electric Utilities Index 100.00 98.84 115.76 117.09 106.91 127.32 The foregoing performance graph and data shall not be deemed “filed” as part of this Form 10-K for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference into any other filing of IDACORP or Idaho Power under the Securities Act of 1933 or the Exchange Act, except to the extent IDACORP or Idaho Power specifically incorporates it by reference into such filing. 40 Table of Contents
Biggest changeSource: Bloomberg and EEI 2020 2021 2022 2023 2024 2025 IDACORP $ 100.00 $ 121.45 $ 118.95 $ 111.86 $ 128.57 $ 153.24 S&P 500 100.00 128.68 105.35 133.02 166.27 195.96 EEI Electric Utilities Index 100.00 117.12 118.47 108.16 128.82 143.83 The foregoing performance graph and data shall not be deemed “filed” as part of this Form 10-K for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference into any other filing of IDACORP or Idaho Power under the Securities Act of 1933 or the Exchange Act, except to the extent IDACORP or Idaho Power specifically incorporates it by reference into such filing. 39 Table of Contents
Performance Graph The graph below shows a comparison of the five-year cumulative total shareholder return for IDACORP common stock, the S&P 500 Index, and the EEI Electric Utilities Index. The data assumes that $100 was invested on December 31, 2019, with beginning-of-period weighting of the peer group indices (based on market capitalization) and monthly compounding of returns.
Performance Graph The graph below shows a comparison of the five-year cumulative total shareholder return for IDACORP common stock, the S&P 500 Index, and the EEI Electric Utilities Index. The data assumes that $100 was invested on December 31, 2020, with beginning-of-period weighting of the peer group indices (based on market capitalization) and monthly compounding of returns.
For information relating to restrictions on dividends, see Note 6 - "Common Stock" to the consolidated financial statements in this report. IDACORP did not repurchase any shares of its common stock during the fourth quarter of 2024.
For information relating to restrictions on dividends, see Note 6 - "Common Stock" to the consolidated financial statements in this report. IDACORP did not repurchase any shares of its common stock during the fourth quarter of 2025.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES IDACORP’s common stock, without par value, is traded on the New York Stock Exchange under the trading symbol "IDA". On February 14, 2025, there were 6,768 holders of record of IDACORP common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES IDACORP’s common stock, without par value, is traded on the New York Stock Exchange under the trading symbol "IDA". On February 13, 2026, there were 6,413 holders of record of IDACORP common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeSignificant items that affected the companies' operating cash flows in 2024 when compared with the same period in 2023 were as follows: • a $28 million and $24 million increase in IDACORP and Idaho Power net income, respectively; • changes in regulatory assets and liabilities, mostly related to the relative amounts of costs deferred and collected under the PCA and FCA mechanisms, increased IDACORP and Idaho Power operating cash inflows by $120 million; • changes in deferred taxes and taxes accrued and receivable combined to decrease operating cash flows for IDACORP and Idaho Power by $34 million and $41 million, respectively; • changes in pension and postretirement benefits plan contributions and expenses combined to increase IDACORP and Idaho Power cash flows by $49 million, which was primarily due to the timing and amount of funding decisions and an increase in the amount of pension-related expenses approved for recovery in base rates pursuant to the 2023 Settlement Stipulation; and • changes in working capital balances due primarily to timing, including fluctuations as follows: ◦ the timing of collections of accounts receivable and unbilled revenues increased operating cash flows by $49 million for IDACORP and $51 million for Idaho Power; ◦ the changes in materials, supplies, and fuel stock decreased operating cash flows by $31 million for IDACORP and Idaho Power, which was primarily due to an increase in material and supply inventory offset by the timing of purchases and consumption of coal at Idaho Power's jointly-owned coal-fired generating plants; ◦ the changes in accounts and wages payable increased operating cash flows by $98 million for IDACORP and $137 million for Idaho Power, which was primarily due to a decrease in power supply costs and associated timing of payments, and includes a $40 million difference between IDACORP and Idaho Power related to intercompany estimated tax payments; and ◦ the changes in other assets and liabilities increased operating cash flows by $21 million for IDACORP and Idaho Power, which was primarily related to a PPA security deposit and performance assurance collateral activity for margin agreements relating to wholesale commodity contracts.
Biggest changeSignificant items that affected the companies' operating cash flows in 2025 when compared with the same period in 2024 were as follows: • a $34 million and $35 million increase in IDACORP and Idaho Power net income, respectively; • changes in regulatory assets and liabilities, mostly related to the relative amounts of costs deferred and collected under the PCA and FCA mechanisms, decreased IDACORP and Idaho Power operating cash flows by $84 million; • changes in deferred taxes and taxes accrued and receivable combined to decrease operating cash flows for IDACORP and Idaho Power by $19 million; and • changes in working capital balances due primarily to timing, including fluctuations as follows: ◦ the timing of collections of accounts receivable and unbilled receivables decreased operating cash flows by $22 million for IDACORP and $23 million for Idaho Power; ◦ the changes in materials, supplies, and fuel stock increased operating cash flows by $103 million for IDACORP and Idaho Power, which was primarily due to the timing of purchases and consumption of materials and supplies inventory at Idaho Power and coal at Idaho Power's jointly-owned coal-fired generating plants; ◦ the changes in accounts and wages payable decreased operating cash flows by $33 million for IDACORP and Idaho Power, which was primarily due to timing of payments and higher quarterly cutoff accruals; and ◦ the changes in other assets and liabilities increased operating cash flows by $5 million for IDACORP and Idaho Power, primarily due to a third-party deposit and a deferred termination payment.
With the exception of cash flows related to income taxes, IDACORP's operating cash flows are principally derived from operating cash flows from Idaho Power.
With the exception of cash flows related to income taxes, IDACORP's operating cash flows are principally derived from the operating cash flows from Idaho Power.
If during any period the SOFR rate is unavailable or unascertainable, an alternate benchmark rate selected by the administrative agent and the borrower would apply. The applicable margin is based on IDACORP's or Idaho Power's, as applicable, senior unsecured long-term indebtedness credit rating by rating agencies, as set forth on a schedule to the credit agreements.
If during any period the Term SOFR rate is unavailable or unascertainable, an alternate benchmark rate selected by the administrative agent and the borrower would apply. The applicable margin is based on IDACORP's or Idaho Power's, as applicable, senior unsecured long-term indebtedness credit rating by rating agencies, as set forth on a schedule to the credit agreements.
REGULATORY MATTERS Introduction Idaho Power is under the jurisdiction (as to rates, service, accounting, and other general matters of utility operation) of the IPUC, the OPUC, and the FERC. The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers.
REGULATORY MATTERS Introduction Idaho Power is under the jurisdiction (as to rates, service, accounting, and other general matters of utility operation) of the IPUC, OPUC, and FERC. The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers.
Idaho Power's co-owned coal-fired power plant, its co-owned coal- and gas-fired power plant, and its three wholly-owned natural gas-fired combustion turbine power plants are subject to many of these regulations. Idaho Power's hydropower projects are also subject to a number of water discharge standards and other environmental requirements.
Idaho Power's co-owned coal- and gas-fired power plant, its co-owned gas-fired power plant, and its three wholly-owned natural gas-fired combustion turbine power plants are subject to many of these regulations. Idaho Power's hydropower projects are also subject to a number of water discharge standards and other environmental requirements.
These include the final MATS Rule and the Good Neighbor Plan. The CAA requires the EPA to set ambient air quality standards for six "criteria" pollutants considered harmful to public health 68 Table of Contents and the environment. These six pollutants are carbon monoxide, lead, ozone, particulate matter, nitrogen dioxide, and sulfur dioxide.
These include the final MATS Rule and the Good Neighbor Plan. 68 Table of Contents The CAA requires the EPA to set ambient air quality standards for six "criteria" pollutants considered harmful to public health and the environment. These six pollutants are carbon monoxide, lead, ozone, particulate matter, nitrogen dioxide, and sulfur dioxide.
Invasive Species Management Quagga mussels are an invasive species that were first detected in the Snake River system in 2023 in the mid-Snake River near Twin Falls in Idaho Power's service area. Quagga mussel infestations can clog and damage irrigation, hydropower, and water delivery facilities and increase the costs to maintain such facilities.
Invasive Species Management Quagga mussels are an invasive species that were first detected in the Snake River system in 2023 in the mid-Snake River near Twin Falls, Idaho, in Idaho Power's service area. Quagga mussel infestations can clog and damage irrigation, hydropower, and water delivery facilities and increase the costs to maintain such facilities.
The interest rates for any borrowings under the facilities are based on either (1) a floating rate that is equal to the highest of the prime rate, federal funds rate plus 0.5 percent, or Adjusted Term Secured Overnight Financing Rate (SOFR) plus 1.0 percent, or 1.0 percent, or (2) the Adjusted Term SOFR, plus, in each case an applicable margin, provided that the Adjusted Term SOFR will not be less than 0.0 percent.
The interest rates for any borrowings under the facilities are based on either (1) a floating rate that is equal to the highest of the prime rate, federal funds rate plus 0.5 percent, or Term Secured Overnight Financing Rate (SOFR) plus 1.0 percent, or 1.0 percent, or (2) the Term SOFR, plus, in each case an applicable margin, provided that the Term SOFR will not be less than 0.0 percent.
(2) Includes a negligible amount of expense and generation related to the Salmon diesel-fired generation plant. The majority of the fuel for Idaho Power’s jointly-owned coal-fired plants is purchased through long-term contracts, including purchases from BCC, a one-third owned investment of IERCo.
(2) Includes a negligible amount of expense and generation related to the Salmon diesel-fired generation plant. The majority of the fuel for Idaho Power’s jointly-owned thermal plants is purchased through long-term contracts, including coal purchases from BCC, a one-third owned investment of IERCo.
While reading the MD&A, please refer to the accompanying consolidated financial statements of IDACORP and Idaho Power. Also refer to "Cautionary Note Regarding Forward-Looking Statements" and Part I - Item 1A - "Risk Factors" in this report for important information regarding forward-looking statements made in this MD&A and elsewhere in this report.
While reading this MD&A, please refer to the accompanying consolidated financial statements of IDACORP and Idaho Power. Also refer to "Cautionary Note Regarding Forward-Looking Statements" and Part I - Item 1A - "Risk Factors" in this report for important information regarding forward-looking statements made in this MD&A section and elsewhere in this report.
Therefore, as of the date of this report, and except as specifically described below in this MD&A, Idaho Power is uncertain whether and to what extent the orders, any future executive orders, and the implementation of these and any future executive orders could affect its business, results of operations, and financial condition.
Therefore, as of the date of this report, and except as specifically described below in this MD&A, Idaho Power is uncertain whether and to what extent current executive orders, any future executive orders, and the implementation of these and any future executive orders could affect its business, results of operations, and financial condition.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In MD&A in this report, the general financial condition and results of operations for IDACORP and its subsidiaries and Idaho Power and its subsidiary are discussed.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In this MD&A section of this report, the general financial condition and results of operations for IDACORP and its subsidiaries and Idaho Power and its subsidiary are discussed.
The discussion of IDACORP's and Idaho Power's general financial condition and results of operations for 2023 compared with 2022 can be found in their Annual Report on Form 10-K for the year ended December 31, 2023. See Part II - Item 7 - MD&A in that report for further information on the companies' prior period results of operations.
The discussion of IDACORP's and Idaho Power's general financial condition and results of operations for 2024 compared with 2023 can be found in their Annual Report on Form 10-K for the year ended December 31, 2024. See Part II - Item 7 - MD&A in that report for further information on the companies' prior period results of operations.
Off-Balance Sheet Arrangements IDACORP’s and Idaho Power’s off-balance sheet arrangements as of December 31, 2024, include guarantees of Idaho Power's portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest. See Note 9 – “Commitments” to the consolidated financial statements included in this report for additional information relating to off-balance sheet arrangements.
Off-Balance Sheet Arrangements IDACORP’s and Idaho Power’s off-balance sheet arrangements as of December 31, 2025, include guarantees of Idaho Power's portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest. See Note 9 – “Commitments” to the consolidated financial statements included in this report for additional information relating to off-balance sheet arrangements.
Idaho Power is also under the regulatory jurisdiction of the IPUC, the OPUC, and the WPSC as to the issuance of debt and equity securities. As a public utility under the FPA, Idaho Power has authority to charge market-based rates for wholesale energy sales under its FERC tariff and to provide transmission services under its OATT.
Idaho Power is also under the regulatory jurisdiction of the IPUC, OPUC, and WPSC as to the issuance of debt and equity securities. As a public utility under the FPA, Idaho Power has been granted the authority to charge market-based rates for wholesale energy sales under its FERC tariff and to provide transmission services under its OATT.
For further information on purchased power activities, see Part I, Item 1 – Utility Operations – "Power Supply – Purchased Power." Fuel Expense : The table below presents Idaho Power’s fuel expenses and thermal generation for the last two years ended December 31 (in thousands, except for per MWh amounts).
For further information on purchased power activities, see Part I, Item 1 – Utility Operations – "Power Supply – Purchased Power." Fuel Expense : The table below presents Idaho Power’s fuel expenses and thermal generation for the last two years ended December 31 (in thousands of dollars and MWh, except for per MWh amounts).
Depending on market conditions, its financial and regulatory strategy, and other factors, IDACORP could determine to issue additional equity securities in 2025. Idaho Power First Mortgage Bonds : Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC.
Depending on market conditions, its financial and regulatory strategy, and other factors, IDACORP could determine to issue additional equity securities in 2026. Idaho Power First Mortgage Bonds : Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and WPSC.
At December 31, 2024, IDACORP and Idaho Power believe they were in compliance with all of their respective Credit Facility covenants and, as of the date of this report, do not believe they will be in violation or breach of such covenants during 2025.
At December 31, 2025, IDACORP and Idaho Power believe they were in compliance with all of their respective Credit Facility covenants and, as of the date of this report, do not believe they will be in violation or breach of such covenants during 2026.
Additional analysis is performed to measure the expected range of returns, as well as worst-case and best-case scenarios. The long-term rate of return used to calculate the 2025 pension expense will be 7.4 percent, the same assumption as used in 2024.
Additional analysis is performed to measure the expected range of returns, as well as worst-case and best-case scenarios. The long-term rate of return used to calculate the 2026 pension expense will be 7.4 percent, the same assumption as used in 2025.
These include the specific GHG emissions limits imposed, the timing of implementation of these limits, the level of emissions allowances allocated and the level that must be purchased, the purchase price of emissions allowances, the development and commercial availability of technologies for renewable energy and for the reduction of emissions, the degree to which offsets may be used 67 Table of Contents for compliance, provisions for cost containment (if any), the impact on coal and natural gas prices, and the timing and amount of cost recovery through rates.
These include the specific GHG emissions limits imposed, the timing of implementation of these limits, the level of emissions allowances allocated and the level that must be purchased, the purchase price of emissions allowances, the development and commercial availability of technologies for renewable energy and for the reduction of emissions, the degree to which offsets may be used for compliance, provisions for cost containment (if any), the impact on coal and natural gas prices, and the timing and amount of cost recovery through rates.
IDACORP's board of directors reviews the dividend rate periodically to determine its appropriateness in light of IDACORP’s current and long-term financial position and results of operations, capital requirements, rating agency considerations, contractual and regulatory restrictions, legislative and regulatory developments affecting the electric utility industry in general and Idaho Power in particular, competitive conditions, and any other factors the board of directors deems relevant.
IDACORP's board of directors reviews the dividend rate periodically to determine its appropriateness in light of 58 Table of Contents IDACORP’s current and long-term financial position and results of operations, capital requirements, rating agency considerations, contractual and regulatory restrictions, legislative and regulatory developments affecting the electric utility industry in general and Idaho Power in particular, competitive conditions, and any other factors the board of directors deems relevant.
Given the uncertainty of future environmental regulations and technological advances, there is uncertainty around near-term estimates, and Idaho Power is also unable to predict its environmental-related expenditures beyond 2027, though they could be substantial.
Given the uncertainty of future environmental regulations and technological advances, there is uncertainty around near-term estimates, and Idaho Power is also unable to predict its environmental-related expenditures beyond 2028, though they could be substantial.
Depending on factors such as RFP results, the timing of project in-service dates, estimated load and resource balances and customer growth, 56 Table of Contents the nature and quantity of resources owned versus acquired under PPAs or similar agreements, and the outcome of regulatory proceedings, actual expenditures and their timing could deviate substantially from Idaho Power's expected expenditures.
Actual expenditures and their timing could deviate substantially from Idaho Power's expected expenditures depending on factors such as RFP results, the timing of project in-service dates, estimated load and resource balances and customer growth, the nature and quantity of resources owned versus acquired under PPAs or similar agreements, and the outcome of regulatory proceedings.
Investing cash outflows for 2024 and 2023 were primarily for construction of utility infrastructure needed to address Idaho Power’s customer growth and peak resource needs, aging plant and equipment, and environmental and regulatory compliance requirements.
Investing cash outflows for 2025 and 2024 were primarily for construction of utility infrastructure needed to address Idaho Power’s customer growth and peak resource needs, aging plant and equipment, and environmental and regulatory compliance requirements.
Regional Haze / Good Neighbor Plan: In June 2023, the EPA published the final rule under the CAA called the Federal "Good Neighbor Plan" for the 2015 Ozone National Ambient Air Quality Standards (Good Neighbor Plan), which took effect on August 4, 2023.
Regional Haze / Good Neighbor Plan: In June 2023, the EPA published the final rule under the CAA called the Federal "Good Neighbor Plan" for the 2015 Ozone National Ambient Air Quality Standards (Good Neighbor Plan), which took effect in August 2023.
ESA Issues Related to Specific Projects: Hells Canyon Relicensing Project : In December 2004, Idaho Power and eleven other parties, including the NMFS and the USFWS, entered into an interim agreement that addresses the effects of the ongoing operations of the HCC on ESA listed 66 Table of Contents species pending the relicensing of the project.
ESA Issues Related to Specific Projects: Hells Canyon Relicensing Project : In December 2004, Idaho Power and eleven other parties, including the NMFS and the USFWS, entered into an interim agreement that addresses the effects of the ongoing operations of the HCC on ESA listed species pending the relicensing of the project.
Most of these realized hedging losses and gains are passed on to customers through the power cost adjustment mechanisms described below. Power Cost Adjustment Mechanisms : Idaho Power's power supply costs (primarily purchased power and fuel expense, less wholesale energy sales) can vary significantly from year to year.
Most of these realized hedging losses and gains are passed on to customers through the power cost adjustment mechanisms described below. 48 Table of Contents Power Cost Adjustment Mechanisms : Idaho Power's power supply costs (primarily purchased power and fuel expense, less wholesale energy sales) can vary significantly from year to year.
Treasury Bills, money market funds, and bank deposits. 51 Table of Contents Operating Cash Flows IDACORP's and Idaho Power's principal sources of cash flows from operations are Idaho Power's sales of electricity and transmission capacity. Significant uses of cash flows from operations include the purchase of fuel and power, other operating expenses, interest, income taxes, and plan contributions.
Treasury Bills, money market funds, and bank deposits. Operating Cash Flows IDACORP's and Idaho Power's principal sources of cash flows from operations are Idaho Power's sales of electricity and transmission capacity. Significant uses of cash flows from operations include the purchase of fuel and power, other operating expenses, interest, income taxes, and plan contributions.
Contractual Obligations IDACORP’s and Idaho Power’s contractual cash obligations as of December 31, 2024, include long-term debt, interest payments, purchase obligations, pension and post-retirement benefit plans, and other long-term liabilities specific to IDACORP, most of which are discussed throughout this MD&A.
Contractual Obligations IDACORP’s and Idaho Power’s contractual cash obligations as of December 31, 2025, include long-term debt, interest payments, purchase obligations, leases, pension and post-retirement benefit plans, and other long-term liabilities specific to IDACORP, most of which are discussed throughout this MD&A.
The FERC's decision relating to the Offer of Settlement is pending as of the date of this report. In 2020, Idaho Power submitted to the FERC its supplement to the final license application, incorporating the settlement agreement reached between Idaho and Oregon on the CWA Section 401 certifications.
The FERC's decision relating to the Offer of Settlement is pending as of the date of this report. 63 Table of Contents In 2020, Idaho Power submitted to the FERC its supplement to the final license application, incorporating the settlement agreement reached between Idaho and Oregon on the CWA Section 401 certifications.
Challenges regarding how to meet water temperature standards below the HCC for spawning fall Chinook salmon, and a conflict in laws between Oregon and Idaho regarding the reintroduction and passage of fish above the HCC, delayed the issuance of the states' 401 certifications for several years.
Challenges regarding how to meet water temperature standards below the HCC for spawning fall Chinook salmon, and a conflict in laws between Oregon and Idaho regarding the reintroduction and passage of fish above the HCC, delayed the issuance of the 401 certifications from the states for several years.
The following table reflects the sensitivities associated with changes in the discount rate and rate-of-return on plan assets actuarial assumptions on historical and future net periodic pension costs and other postretirement benefit costs: Discount rate Rate of return 2025 2024 2025 2024 (millions of dollars) Effect of 0.5% rate increase on total net periodic pension costs and other postretirement benefit costs $ (2.7) $ (3.0) $ (4.9) $ (4.7) Effect of 0.5% rate decrease on total net periodic pension costs and other postretirement benefit costs 3.4 8.1 4.7 4.7 Additionally, a 0.5 percent increase in the plans' discount rates would have resulted in a $71.2 million decrease in the combined benefit obligations of the plans as of December 31, 2024.
The following table reflects the sensitivities associated with changes in the discount rate and rate-of-return on plan assets actuarial assumptions on historical and future net periodic pension costs and other postretirement benefit costs: Discount rate Rate of return 2026 2025 2026 2025 (millions of dollars) Effect of 0.5% rate increase on total net periodic pension costs and other postretirement benefit costs $ (2.9) $ (2.7) $ (5.1) $ (4.9) Effect of 0.5% rate decrease on total net periodic pension costs and other postretirement benefit costs 3.2 3.4 5.2 4.7 Additionally, a 0.5 percent increase in the plans' discount rates would have resulted in a $73.4 million decrease in the combined benefit obligations of the plans as of December 31, 2025.
The financial impacts of fluctuations in wholesale energy sales are largely mitigated by Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described below in "Power Cost Adjustment Mechanisms" in this MD&A. Energy Efficiency Program Revenues: In both Idaho and Oregon, energy efficiency riders fund energy efficiency program expenditures.
The financial impacts of 47 Table of Contents fluctuations in wholesale energy sales are largely mitigated by Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described below in "Power Cost Adjustment Mechanisms" in this MD&A. Energy Efficiency Program Revenues: In both Idaho and Oregon, energy efficiency riders fund energy efficiency program expenditures.
Due to a misinterpretation of law, the EPA cancelled water discharge permits in the mid-1990’s, which Idaho Power subsequently determined were applicable for operation of the dams. Idaho Power believes that the dams would have been in compliance with the earlier permits had they remained in place.
Due to a misinterpretation of law, the EPA cancelled water discharge permits in the mid-1990’s, which Idaho Power subsequently determined were applicable for operation of the dams. Idaho Power believes the dams would have been in compliance had the earlier permits remained in place.
Idaho Power must satisfy three conditions to apply regulatory accounting: (1) an 70 Table of Contents independent regulator must set rates; (2) the regulator must set the rates to cover specific costs of delivering service; and (3) the service area must lack competitive pressures to reduce rates below the rates set by the regulator.
Idaho Power must satisfy three conditions to apply regulatory accounting: (1) an independent regulator must set rates; (2) the regulator must set the rates to cover specific costs of delivering service; and (3) the service area must lack competitive pressures to reduce rates below the rates set by the regulator.
In December 2023, the EPA approved the Wyoming SIP, removing it from the Federal Implementation Plan (FIP). In April 2024, the EPA proposed to approve revisions to the Wyoming Regional Haze SIP for the first planning period of 2008-2018. The proposed SIP replaces Wyoming’s previously approved source-specific nitrogen oxide determination for Idaho Power’s jointly-owned Jim Bridger plant.
In December 2023, the EPA approved the Wyoming SIP, removing it from the Federal Implementation Plan (FIP). In April 2024, the EPA proposed to approve revisions to the Wyoming Regional Haze SIP for the first planning period of 2008-2018. The proposed SIP replaces Wyoming’s previously approved source-specific NO x determination for Idaho Power’s jointly-owned Jim Bridger plant.
In March 2024, the USFWS published a final rule which, among other items, reinstated the “blanket rule” that allows the USFWS to treat threatened species the same (or similar) as endanger ed species under Section 4(d) of the ESA.
In March 2024, the USFWS published a final rule which, among other items, reinstated the “blanket rule” that allows the USFWS to treat threatened species the same (or similar) as endangered species under Section 4(d) of the ESA.
Beyond 2025, Idaho Power expects continuing contributions under the pension plan could be significant. Refer to Note 11 – “Benefit Plans” to the consolidated financial statements included in this report for information relating to those obligations. Idaho Power defers its Idaho-jurisdiction pension expense as a regulatory asset until recovered from Idaho customers.
Beyond 2026, Idaho Power expects continuing contributions under the pension plan could be significant. Refer to Note 12 – “Benefit Plans” to the consolidated financial statements included in this report for information relating to those obligations. Idaho Power defers its Idaho-jurisdiction pension expense as a regulatory asset until recovered from Idaho customers.
At December 31, 2024 and 2023, Idaho Power's deferral balance associated with the Idaho jurisdiction was $252 million and $255 million, respectively. Deferred pension costs are amortized to expense to match the revenues received when contributions are recovered through rates. Idaho Power only records a carrying charge on the unrecovered balance of cash contributions.
At December 31, 2025 and 2024, Idaho Power's deferral balance associated with the Idaho jurisdiction was $247 million and $252 million, respectively. Deferred pension costs are amortized to expense to match the revenues received when contributions are recovered through rates. Idaho Power only records a carrying charge on the unrecovered balance of cash contributions.
IDACORP and Idaho Power have the right to request an increase in the aggregate principal amount of the facilities to $150 million and $600 million, respectively, in each case subject to certain conditions. 53 Table of Contents The IDACORP and Idaho Power Credit Facilities have similar terms and conditi ons.
IDACORP and Idaho Power have the right to request an increase in the aggregate principal amount of the facilities to $150 million and $600 million, respectively, in each case subject to certain conditions. The IDACORP and Idaho Power Credit Facilities have similar terms and conditi ons.
Defined Benefit Pension Plan Contributions and Recovery Idaho Power contributed $20 million in 2024 and $48 million in 2023 to its defined benefit pension plan. Idaho Power estimates that it has no minimum required contribution to be made during 2025.
Defined Benefit Pension Plan Contributions and Recovery Idaho Power contributed $20 million in 2025 and 2024 to its defined benefit pension plan. Idaho Power estimates that it has no minimum required contribution to be made during 2026.
The annual normal amounts are the sum of the 12 monthly normal amounts. These normal amounts are computed by the National Oceanic and Atmospheric Administration. Sales Volume and Generation: In 2024, retail sales volumes increased 3 percent compared with the prior year, primarily due to growth in the number of Idaho Power customers.
The annual normal amounts are the sum of the 12 monthly normal amounts. These normal amounts are computed by the National Oceanic and Atmospheric Administration. Sales Volume and Generation: In 2025, retail sales volumes increased 1 percent compared with the prior year, primarily due to growth in the number of Idaho Power customers.
Large Customer Rate Proceedings Brisbie, LLC (Brisbie) Data Center and Clean Energy Your Way - Construction Arrangements : In May 2023, the IPUC approved a special contract (Brisbie Special Contract) between Idaho Power and a large load customer, Brisbie, a wholly-owned subsidiary of Meta Platforms, Inc., for service to a new enterprise data center.
Brisbie, LLC (Brisbie) Data Center and Clean Energy Your Way Special Contract: In May 2023, the IPUC approved a special contract (Brisbie Special Contract) between Idaho Power and a large load customer, Brisbie, a wholly-owned subsidiary of Meta Platforms, Inc., for service to a new enterprise data center.
Reinstatement of "Blanket Rule" for Threatened Species: The listing of a species, or changes to the critical habitat designations, of fish, wildlife, or plants as threatened or endangered under the ESA and the associated mitigation policies may have an adverse impact on Idaho Power's ability to construct power supply, transmission, or distribution facilities or relicense or operate its hydropower facilities.
Revocation of "Blanket Rule" for Threatened Species and Revisions to Critical Habitat Designation Process: The listing of a species, or changes to the critical habitat designations, of fish, wildlife, or plants as threatened or endangered under the ESA and the associated mitigation policies may have an adverse impact on Idaho Power's ability to construct power supply, transmission, or distribution facilities or relicense or operate its hydropower facilities.
Total net periodic pension and other postretirement benefit cost for these plans totaled $31.0 million and $28.5 million for the years ended December 31, 2024 and 2023, respectively, including amounts deferred as regulatory assets (see discussion below) and amounts allocated to capitalized labor.
Total net periodic pension and other postretirement benefit cost for these plans totaled $28.2 million and $31.0 million for the years ended December 31, 2025 and 2024, respectively, including amounts deferred as regulatory assets (see discussion below) and amounts allocated to capitalized labor.
Based on the results of this analysis, the discount rate used to calculate the 2025 defined benefit plan pension expense increased to 5.70 percent from the 5.10 percent rate used in 2024. Rate-of-return projections for plan assets are based on historical risk/return relationships among asset classes.
Based on the results of this analysis, the discount rate used to calculate the 2026 defined benefit plan pension expense increased to 5.75 percent from the 5.70 percent rate used in 2025. Rate-of-return projections for plan assets are based on historical risk/return relationships among asset classes.
Collecting these amounts currently will reduce future collections when HCC relicensing costs are approved for recovery in base rates. As of December 31, 2024, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was $251 million.
Collecting these amounts currently will reduce future collections when HCC relicensing costs are approved for recovery in base rates. As of December 31, 2025, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was $281 million.
Individual instruments carry a fixed rate during 54 Table of Contents their respective terms, although the interest rates are reflective of current market conditions, subjecting the companies to fluctuations in interest rates.
Individual instruments carry a fixed rate during their respective terms, although the interest rates are reflective of current market conditions, subjecting the companies to fluctuations in interest rates.
As of the date of this report, Idaho Power anticipates that the final biological opinions will likely be issued after the FERC issues a final supplemental EIS, which is scheduled for February 2025 according to the FERC's updated schedule for issuance of the supplemental EIS.
As of the date of this report, Idaho Power anticipates that the final biological opinions will likely be issued after the FERC issues a final supplemental EIS, which is scheduled for May 2026 according to the FERC's updated schedule for issuance of the supplemental EIS.
Idaho Power has determined that it meets these conditions, and its financial statements reflect the effects of the different rate-making principles followed by the jurisdictions regulating Idaho Power. The primary effect of this policy is that Idaho Power had recorded approximately $1.5 billion of regulatory assets and $1.0 billion of regulatory liabilities at December 31, 2024.
Idaho Power has determined that it meets these conditions, and its financial statements reflect the effects of the different rate-making principles followed by the jurisdictions regulating Idaho Power. The primary effect of this policy is that Idaho Power had recorded approximately $1.6 billion of regulatory assets and $1.1 billion of regulatory liabilities at December 31, 2025.
Idaho Power recorded pension expense on its consolidated statements of income related to its tax-qualified defined benefit pension plan of approximately $36 million in 2024 and $18 million in 2023. Refer to Note 11 – “Benefit Plans” to the consolidated financial statements included in this report for additional information relating to pension and postretirement benefit plans.
Idaho Power recorded pension expense on its consolidated statements of income related to its tax-qualified defined benefit pension plan of approximately $36 million in 2025 and $36 million in 2024. Refer to Note 12 – “Benefit Plans” to the consolidated financial statements included in this report for additional information relating to pension and postretirement benefit plans.
Part I, Item 1 - “Business - Utility Operations - Environmental Regulation and Costs” in this report includes a summary of Idaho Power's expected capital and operating expenditures for environmental matters during the period from 2025 to 2027.
Part I, Item 1 - “Business - Utility Operations - Environmental Regulation and Costs” in this report includes a summary of Idaho Power's expected capital and operating expenditures for environmental matters during the period from 2026 to 2028.
Idaho Power and the co-owners of Jim Bridger and North Valmy coal-fired generating plants installed mercury continuous emission monitoring systems on all coal-fired units at the plants, along with control technology to reduce mercury, acid gases, and particulate matter emissions for purposes of compliance with the MATS rule.
Idaho Power and the co-owner of the Jim Bridger coal-fired generating plant installed mercury continuous emission monitoring systems on all coal-fired units at the plants, along with control technology to reduce mercury, acid gases, and particulate matter emissions for purposes of compliance with the MATS Rule.
Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, along with changes in the regional transmission markets that have constrained the availability of transmission outside Idaho Power’s service area to import energy during peak load periods, require Idaho Power to increase its investment in capacity resources, transmission, and distribution infrastructure.
Idaho Power believes that existing and sustained growth in customers, load, and peak demand for electricity, the obligation to maintain a safe and reliable system, along with changes in the regional transmission markets that have constrained the availability of transmission outside Idaho Power’s service area to import energy during peak load periods, require Idaho Power to increase its investment in capacity resources, transmission, and distribution infrastructure.
Included in the below table are the load forecast assumptions the company anticipates using in the 2025 IRP as of the date of this report, and for comparison purposes, the analogous average annual growth rates Idaho Power used in the prior two IRPs. 5-Year Forecasted Annual Growth Rate 20-Year Forecasted Annual Growth Rate Retail Sales (Billed MWh) Annual Peak (Peak Demand) Retail Sales (Billed MWh) Annual Peak (Peak Demand) 2025 IRP (preliminary) 8.3% 5.1% 2.7% 1.9% 2023 IRP 5.5% 3.7% 2.1% 1.8% 2021 IRP 2.6% 2.1% 1.4% 1.4% Customer growth has contributed to increases in peak loads experienced in recent years.
Included in the below table are the load forecast assumptions the company used in the 2025 IRP and, for comparison purposes, the analogous average annual growth rates Idaho Power used in the prior two IRPs. 5-Year Forecasted Annual Growth Rate 20-Year Forecasted Annual Growth Rate Retail Sales (Billed MWh) Annual Peak (Peak Demand) Retail Sales (Billed MWh) Annual Peak (Peak Demand) 2025 IRP 8.3% 5.1% 2.7% 1.9% 2023 IRP 5.5% 3.7% 2.1% 1.8% 2021 IRP 2.6% 2.1% 1.4% 1.4% Customer growth has contributed to increases in peak loads experienced in recent years.
Resource Additions to Address Projected Energy and Capacity Deficits : Idaho Power's existing and sustained growth in customers, load, and peak demand for electricity, along with transmission constraints, has created the need for Idaho Power to acquire significant generation, transmission, and storage resources to meet energy and capacity needs over the next several years.
Resource Additions to Address Projected Energy and Capacity Deficits : Idaho Power's existing and sustained growth in customers, load, and peak demand for electricity, along with transmission constraints, has created the need for Idaho Power to 55 Table of Contents acquire significant generation, transmission, and storage resources to meet energy and capacity needs in recent years and continuing over the next several years.
American Falls Relicensing: In 2020, Idaho Power filed with the FERC a notice of intent to file an application to relicense the American Falls hydropower facility, which is Idaho Power's largest hydropower facility outside of the HCC, with a nameplate generating capacity of 92.3 MW.
American Falls Relicensing: In 2020, Idaho Power filed with the FERC a notice of intent to file an application to relicense the American Falls hydropower facility, which is Idaho Power's largest hydropower facility outside of the HCC, with a nameplate generating capacity of 92.3 MW and FERC authorized installed capacity of 67.5 MW.
In June 2017, the Secretary of the Interior issued an order directing the BLM to review the 2015 sage grouse resource management and land use plan revisions and to identify provisions that may require modification or rescission to address energy and other development of public lands.
In June 2017, the Secretary of the Interior directed the BLM to review the 2015 sage grouse resource management and land use plan revisions and to identify provisions that may require modification or rescission to address energy and other development of public lands.
The Idaho State Department of Agriculture (ISDA) treated the affected area in 2023 with a copper-based, EPA-approved treatment. ISDA sampling in September 2024 detected the continued presence of quagga mussels. As a result, the ISDA performed additional treatments in 2024 to eradicate quagga mussels in the affected area.
The Idaho State Department of Agriculture (ISDA) treated the affected area in 2023 and 2024 with a copper-based, EPA-approved treatment. ISDA sampling in 2025 detected the continued presence of quagga mussels. As a result, the ISDA performed additional treatments in September and October 2025 in an effort to eradicate quagga mussels in the affected area.
Specifically, IDACORP and Idaho Power determined the discount rate for each plan through the construction of hypothetical portfolios of bonds selected from high-quality corporate bonds available as of December 31, 2024, with maturities matching the projected cash outflows of the plans.
Specifically, IDACORP and Idaho Power determined the discount rate for each plan through the construction of hypothetical portfolios of bonds selected from high-quality corporate bonds available as of December 31, 2025, with maturities matching the projected cash outflows of 72 Table of Contents the plans.
Customer rates also include the collection from customers of amounts related to the power cost adjustment mechanisms, which decreased revenues by $14.2 million in 2024 compared with 2023.
Customer rates also include the collection from customers of amounts related to the power cost adjustment mechanisms, which decreased revenues by $71.2 million in 2025 compared with 2024.
In the Idaho jurisdiction, the PCA includes a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers (95 percent) and Idaho Power (5 percent), with the exception of PURPA power purchases and demand response program incentives, which are allocated 100 percent to customers.
In the Idaho jurisdiction, the PCA includes a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers (95 percent) and Idaho Power (5 percent), with the exception of PURPA power purchases, export credit mechanisms, a battery storage lease, and demand response program incentives, which are allocated 100 percent to customers.
Wholesale energy prices were lower during 2024 compared with 2023 as more moderate winter and spring weather resulted in lower natural gas fuel costs in the wholesale markets in the region.
Wholesale energy prices were lower during 2025 compared with 2024 as more moderate winter and summer weather resulted in lower natural gas fuel costs in the wholesale markets in the region.
The Idaho deferral period, or PCA year, runs from April 1 through March 31. Amounts deferred during the PCA year are primarily recovered or refunded during the subsequent June 1 49 Table of Contents through May 31 period.
The Idaho deferral period, or PCA year, runs from April 1 through March 31. Amounts deferred during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period.
Depending on market conditions and cash flow considerations, Idaho Power could contribute up to $20 million to the pension plan during 2025. Idaho Power's contributions are made in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions to mitigate the cost of being in an underfunded position.
Depending on market conditions and cash flow considerations, Idaho Power expects that it could contribute up to $30 million to the pension plan during 2026. Idaho Power's contributions are made in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions to mitigate the cost of being in an underfunded position.
Circuit, to challenge the New Section 111 Rule. Idaho Power's suit was consolidated with other similar suits, and the proceedings were placed on hold in February 2025 at the request of the EPA.
Circuit, to challenge the New Section 111 Rule. Idaho Power's suit was consolidated with other similar suits, and the proceedings were placed on hold in February 2025 at the request of the EPA and remain on hold pending finalization of EPA's new Section 111 rules.
Idaho Power has been engaged for several years with the EPA, and is now engaged with the IDEQ, regarding Idaho Power's CWA permitting obligations and compliance status for those facilities.
Idaho Power has been engaged for several years with the EPA, and is now engaged with the Idaho Department of Environmental Quality (IDEQ), regarding Idaho Power's CWA permitting obligations and compliance status for those facilities.
Significant items and transactions that affected investing cash flows in 2024 and 2023 included: • $1.0 billion and $611 million, respectively, of additions to property, plant, and equipment; • $84 million and $27 million, respectively, from B2H project joint permitting participants relating to a portion of the permitting expenditures; • $4 million and $3 million, respectively, of tax credit investments in affordable housing and other real estate, which provide a return principally by reducing federal and state income taxes through tax credits and accelerated tax depreciation benefits at IDACORP; and 52 Table of Contents • $11 million in purchases of equity securities and $2 million in purchases of held-to-maturity securities in 2024 and 2023, and $11 million and $9 million in sales of equity securities in 2024 and 2023, respectively, held in a rabbi trust, which is designated to provide funding for obligations related to Idaho Power's SMSP.
Significant items and transactions that affected investing cash flows in 2025 and 2024 included: • $1.2 billion and $1.0 billion, respectively, of additions to property, plant, and equipment; • $152 million and $84 million, respectively, from B2H project joint permitting participants relating to a portion of the permitting expenditures; • $16 million and $4 million, respectively, of tax credit investments in affordable housing and other real estate, which provide a return principally by reducing federal and state income taxes through tax credits and accelerated tax depreciation benefits at IDACORP; and 51 Table of Contents • IDACORP and Idaho Power paid $11 million and $8 million in 2025, respectively, and $12 million and $11 million in 2024, respectively, for purchases of equity securities, $3 million in 2025 and $2 million in 2024 for purchases of held-to-maturity securities, and received $12 million in 2025 and $11 million in 2024 from sales of equity securities, held in a rabbi trust, which is designated to provide funding for obligations related to Idaho Power's SMSP.
For 2025, Idaho Power expects generation from its hydropower resources to be in the range of 6.5 million to 8.5 million MWh, compared with 7.2 million MWh in 2024 and average total annual hydropower generation of approximately 7.7 million MWh over the last 30 years. • Mitigation of Impact of Fuel and Purchased Power Expense: In addition to hydropower generation, Idaho Power relies significantly on natural gas and coal to fuel its generation facilities, long-term PPAs (including PURPA agreements), and power purchases in the wholesale markets.
For 2026, Idaho Power expects generation from its hydropower resources to be in the range of 5.5 million to 7.5 million MWh, compared with 7.0 million MWh in 2025 and average total annual hydropower generation of approximately 7.3 million MWh over the last 20 years. • Mitigation of Impact of Fuel and Purchased Power Expense: In addition to hydropower generation, Idaho Power relies significantly on natural gas and coal to fuel its generation facilities, long-term PPAs (including PURPA agreements), and power purchases in the wholesale markets.
In recent years, Idaho Power has seen significant growth in the number of customers in its service area. In 2024, Idaho Power's customer count grew by 2.6 percent.
In recent years, Idaho Power has seen significant growth in the number of customers in its service area. In 2025, Idaho Power's customer count grew by 2.3 percent.
“Consolidated total capitalization” is calculated as the sum of all consolidated indebtedness, consolidated stockholders' equity of the borrower and its subsidiaries, and the aggregate value of outstanding hybrid securities. At December 31, 2024, the leverage ratios for IDACORP and Idaho Power were 48 percent and 50 percent, respectively.
“Consolidated total capitalization” is calculated as the sum of all consolidated indebtedness, consolidated stockholders' equity of the borrower and its subsidiaries, and the aggregate value of outstanding hybrid securities. At December 31, 2025, the leverage ratios for IDACORP and Idaho Power were 52 percent.
Description Effective Date Estimated Annualized Rate Impact (millions) (1) 2024 Idaho limited-issue rate case 1/1/2025 $ 50.1 2024 Idaho PCA 6/1/2024 (35.7) 2024 Idaho FCA 6/1/2024 11.7 2023 Oregon general rate case 10/15/2024 6.7 2023 Idaho general rate case 1/1/2024 54.7 2023 Idaho PCA 6/1/2023 105.1 2023 Idaho FCA 6/1/2023 (10.1) (1) The annual amount collected or refunded in rates is typically not recovered or refunded on a linear basis (i.e., 1/12th per month), and is instead recovered or refunded in proportion to retail sales volumes.
Description Effective Date Estimated Annualized Rate Impact (in millions of dollars) (1) 2025 Idaho general rate case 1/1/2026 $ 110.0 2025 Oregon rate adjustment 1/1/2026 (0.6) 2025 Idaho PCA 6/1/2025 (94.8) 2025 Idaho FCA 6/1/2025 (39.8) 2024 Idaho limited-issue rate case 1/1/2025 50.1 2023 Oregon general rate case 10/15/2024 6.7 2024 Idaho PCA 6/1/2024 (35.7) 2024 Idaho FCA 6/1/2024 11.7 2023 Idaho general rate case 1/1/2024 54.7 (1) The annual amount collected or refunded in rates is typically not recovered or refunded on a linear basis (i.e., 1/12th per month), and is instead recovered or refunded in proportion to retail sales volumes.
In December 2024, Idaho Power filed an application with the IPUC for approval of a special contract for electric service for Micron Idaho Semiconductor Manufacturing (Triton) LLC, a subsidiary of Micron, for electric service for Micron's new memory manufacturing fabrication complex (fab) located in Boise.
Large Customer Rate Proceedings Micron Fab Special Contract: In December 2024, Idaho Power filed an application with the IPUC for approval of a special contract for electric service for Micron Idaho Semiconductor Manufacturing (Triton) LLC, a subsidiary of Micron Technology, Inc. (Micron), for electric service for Micron's new memory manufacturing fabrication complex located in Boise, Idaho.
In January 2024, IDACORP began using original issuances of shares for the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan and also intends to use original issuances for share purchases within the Idaho Power Company Employee Savings Plan beginning in the first half of 2025. IDACORP may discontinue using original issuances of shares for these plans at any time.
IDACORP uses original issuances of shares for the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan and also intends to potentially use original issuances for share purchases within the Idaho Power Company Employee Savings Plan beginning in the first half of 2026. IDACORP may discontinue using original issuances of shares for these plans at any time.
Idaho Power expects the in-service date for this section of line or a portion of this section will be 2028 or later. Idaho Power and PacifiCorp continue to coordinate the timing of next steps to best meet customer and system needs, including potentially modifying the ownership structure of a few segments of the project.
Idaho Power expects the in-service date for this segment of line or a portion of this segment will be 2028 or later. Idaho Power and PacifiCorp continue to coordinate the timing of next steps of the remaining co-owned segments to best meet customer and system needs, including potentially modifying the ownership structure of those segments of the project.
Capital Requirements Idaho Power's cash capital expenditures, excluding AFUDC, were $981 million during the year ended December 31, 2024. The cash expenditure amount excludes net costs of removing assets from service. The table below presents Idaho Power's estimated accrual-basis additions to property, plant, and equipment for 2025 through 2029 (in billions of dollars).
Capital Requirements Idaho Power's cash capital expenditures, excluding AFUDC, were $1.1 billion during the year ended December 31, 2025. The cash expenditure amount excludes net costs of removing assets from service. The table below presents Idaho Power's estimated accrual-basis additions to property, plant, and equipment for 2026 through 2030 (in billions of dollars).
Included in fuel expense are losses and gains on settled financial gas hedges entered into in accordance with Idaho Power's energy risk management policy. In 2024 and 2023, losses on financial gas hedges of $63.3 million and $16.2 million, respectively, increased natural gas fuel expense.
Included in fuel expense are losses and gains on settled financial gas hedges entered into in accordance with Idaho Power's energy risk management policy. In 2025 and 2024, losses on financial gas hedges of $37.7 million and $63.3 million, respectively, increased natural gas fuel expense.
Factors that have influenced power cost adjustment rate changes in recent years include year-to-year volatility in hydropower generation conditions, market energy prices and the volume of wholesale energy sales, power purchase costs from renewable energy projects, income tax reform, and revenue sharing under Idaho regulatory settlement stipulations.
Factors that have influenced power cost adjustment rate changes in recent years include year-to-year volatility in hydropower generation conditions, market energy prices and the volume of wholesale energy sales, power purchase costs from renewable energy projects, and income tax reform.
Relicensing costs of $497 million (including AFUDC) for the HCC were included in construction work in progress at December 31, 2024. As of the date of this report, the IPUC authorizes Idaho Power to include in its Idaho jurisdiction rates approximately $8.8 million of AFUDC annually relating to the HCC relicensing project.
Relicensing costs of $536 million (including AFUDC) for the HCC were included in construction work in progress at December 31, 2025. As of the date of this report, the IPUC authorizes Idaho Power to include in its Idaho jurisdiction rates approximately $38.5 million of AFUDC annually relating to the HCC relicensing project.
Examples of IDACORP's and Idaho Power's achievements, notable events, and milestones during 2024 and during 2025, through the date of this report, include the following: • IDACORP achieved net income growth for a seventeenth consecutive year in 2024. • Idaho Power continues to focus on timely recovery of costs and earning a reasonable return on investment.
Examples of IDACORP's and Idaho Power's achievements, notable events, and milestones during 2025 include the following: • IDACORP achieved net income growth for an eighteenth consecutive year in 2025. • Idaho Power continues to focus on timely recovery of costs and earning a reasonable return on investment.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInterest Rate Risk IDACORP and Idaho Power manage interest expense and short- and long-term liquidity through a combination of fixed rate and variable rate debt. Generally, the amount of each type of debt is managed through market issuance, but interest rate swap and cap agreements with highly-rated financial institutions may be used to achieve the desired combination.
Biggest changeGenerally, the amount of each type of debt is managed through market issuance, but interest rate swap and cap agreements with highly-rated financial institutions may be used to achieve the desired combination. Variable Rate Debt : As of December 31, 2025, both IDACORP and Idaho Power had no variable rate debt.
The RMC, composed of Idaho Power officers and senior managers, oversees the risk management program. The RMC is responsible for communicating the status of risk management activities to Idaho Power's board of directors. In its energy risk management process, Idaho Power considers both demand-side and supply-side options consistent with its IRP.
The RMC, composed of Idaho Power officers and senior managers, oversees the energy risk management program. The RMC is responsible for communicating the status of risk management activities to Idaho Power's board of directors. In its energy risk management process, Idaho Power considers both demand-side and supply-side options consistent with its IRP.
The primary tools for risk mitigation are physical and financial forward power transactions and fueling alternatives for utility-owned generation resources. Idaho Power only engages in a nominal amount of trading activity for non-retail purposes. The ERMP require monitoring monthly volumetric electricity position and total monthly dollar (net power supply cost) exposure on a rolling 18-month forward view.
The primary tools for risk mitigation are physical and financial forward power transactions and fueling alternatives for utility-owned generation resources. Idaho Power only engages in a nominal amount of trading activity for non-retail purposes. The ERMP requires monitoring monthly volumetric electricity position and total monthly dollar (net power supply cost) exposure on a rolling 36-month forward view.
As of December 31, 2024, Idaho Power posted $25 million of cash performance assurance collateral related to these contracts. Should Idaho Power experience a reduction in its credit rating on Idaho Power’s unsecured debt to below investment grade, Idaho Power could be subject to requests by its wholesale counterparties to post additional performance assurance collateral.
As of December 31, 2025, Idaho Power posted $45 million of cash performance assurance collateral related to these contracts. Should Idaho Power experience a reduction in its credit rating on Idaho Power’s unsecured debt to below investment grade, Idaho Power could be subject to requests by its wholesale counterparties to post additional performance assurance collateral.
Based upon Idaho Power’s energy and fuel portfolio and then existing market conditions as of December 31, 2024, the amount of additional collateral that could have been requested upon a downgrade to below investment grade was approximately $46 million.
Based upon Idaho Power’s energy and fuel portfolio and then existing market conditions as of December 31, 2025, the amount of additional collateral that could have been requested upon a downgrade to below investment grade was approximately $48 million.
To minimize capital requirements, Idaho Power actively 73 Table of Contents monitors the portfolio exposure and the potential exposure to additional requests for performance assurance collateral calls through sensitivity analysis. Idaho Power is obligated to provide service to all electric customers within its service area.
To minimize capital requirements, Idaho Power actively monitors the portfolio exposure and the potential exposure to additional requests for performance assurance collateral calls through sensitivity analysis. Idaho Power is obligated to provide service to all electric customers within its service area.
However, the fair value of these instruments would increase by approximately $327 million if market interest rates were to decline by one percentage point from their December 31, 2024, levels. 72 Table of Contents Commodity Price Risk IDACORP's exposure to changes in commodity prices is related to Idaho Power's ongoing utility operations that produce electricity to meet the demand of its retail electric customers.
However, the fair value of these instruments would increase by approximately $388 million if market interest rates were to decline by one percentage point from their December 31, 2025 levels. Commodity Price Risk IDACORP's exposure to changes in commodity prices is related to Idaho Power's ongoing utility operations that produce electricity to meet the demand of its retail electric customers.
Idaho Power has established asset allocation targets for the pension plan holdings, which are described in Note 11 - "Benefit Plans" to the consolidated financial statements included in this report. 74 Table of Contents
Idaho Power has established asset allocation targets for the pension plan holdings, which are described in Note 12 - "Benefit Plans" to the consolidated financial statements included in this report. 75 Table of Contents
The power supply business unit produces and evaluates projections of the operating plan based on factors such as forecasted resource availability, stream flows, and load, and orders risk mitigating actions, including resource optimization and hedging strategies, dictated by the limits stated in the ERMP to bring exposures within pre-established risk guidelines.
The resource planning group produces and evaluates projections of the operating plan based on factors such as forecasted resource availability, stream flows, and load, and orders risk mitigating actions, including resource optimization and hedging strategies, dictated by the limits stated in the ERMP to bring exposures within pre-established risk guidelines.
Fixed Rate Debt : As of December 31, 2024, both IDACORP and Idaho Power had $3.1 billion in fixed rate debt, with a fair value of approximately $2.8 billion. These instruments are fixed rate and, therefore, do not expose the companies to a loss in earnings due to changes in market interest rates.
Fixed Rate Debt : As of December 31, 2025, both IDACORP and Idaho Power had $3.5 billion in fixed rate debt, with a fair value of approximately $3.3 billion. These instruments are fixed rate and, therefore, do not expose the companies to a loss in earnings due to changes in market interest rates.
The RMC evaluates the actions initiated by the power supply unit for consistency and compliance with the ERMP. Credit Risk IDACORP is subject to credit risk based on Idaho Power's activity with market counterparties.
The RMC evaluates the hedging and operational actions initiated by the power supply operational groups for consistency and compliance with the ERMP. 74 Table of Contents Credit Risk IDACORP is subject to credit risk based on Idaho Power's activity with market counterparties.
The following discussion summarizes these risks and the financial instruments, derivative instruments, and derivative commodity instruments sensitive to changes in interest rates, commodity prices, and equity prices that were held at December 31, 2024. Neither IDACORP nor Idaho Power have entered into any of these market-risk-sensitive instruments for speculative purposes.
The following discussion summarizes these risks and the financial instruments, derivative instruments, and derivative commodity instruments sensitive to changes in interest rates, commodity prices, and equity prices that were held at December 31, 2025.
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Variable Rate Debt : As of December 31, 2024, both IDACORP and Idaho Power had no net variable rate debt, as the carrying value of short-term investments exceeded the carrying value of outstanding variable rate debt.
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Neither IDACORP nor Idaho Power have entered into any of these market-risk-sensitive instruments for speculative purposes. 73 Table of Contents Interest Rate Risk IDACORP and Idaho Power manage interest expense and short- and long-term liquidity through a combination of fixed rate and variable rate debt.

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