# EDGAR Filing Document

**Accession Number:** 0000049648
**File Stem:** 0001057877-23-000014
**Filing Date:** 2023-3
**Character Count:** 20086
**Document Hash:** 7105e0e0c390b438a6f669cc1ff46d90
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001057877-23-000014.hdr.sgml**: 20230303

**ACCESSION NUMBER**: 0001057877-23-000014

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230303

**DATE AS OF CHANGE**: 20230303

**EFFECTIVENESS DATE**: 20230303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IDACORP INC
- **CENTRAL INDEX KEY:** 0001057877
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **IRS NUMBER:** 820505802
- **STATE OF INCORPORATION:** ID
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14465
- **FILM NUMBER:** 23702057

**BUSINESS ADDRESS:**
- **STREET 1:** 1221 WEST IDAHO STREET
- **CITY:** BOISE
- **STATE:** ID
- **ZIP:** 83702-5627
- **BUSINESS PHONE:** 2083882200

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 70
- **STREET 2:** 1221 WEST IDAHO STREET
- **CITY:** BOISE
- **STATE:** ID
- **ZIP:** 83702-5627
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IDAHO POWER CO
- **CENTRAL INDEX KEY:** 0000049648
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **IRS NUMBER:** 820130980
- **STATE OF INCORPORATION:** ID
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-03198
- **FILM NUMBER:** 23702058

**BUSINESS ADDRESS:**
- **STREET 1:** 1221 W IDAHO ST
- **STREET 2:** PO BOX 70
- **CITY:** BOISE
- **STATE:** ID
- **ZIP:** 83702
- **BUSINESS PHONE:** 2083882200

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 70
- **STREET 2:** 1221 W IDAHO STREET
- **CITY:** BOISE
- **STATE:** ID
- **ZIP:** 83702-5627

### Attached PDF Documents

**Attachment 1:** `idacorpannualreport2022.pdf`

2022 ANNUAL REPORT

# BUILDING OUR FUTURE

![img-0.jpeg](img-0.jpeg)

Dividend Growth
5.6%

Customer Growth
2.4%

Earnings Growth
5.4%

IDACORP

“We achieved our 15$^{th}$ consecutive year of earnings growth, kept our customers’ lights on 99.97% of the time, maintained excellent customer satisfaction scores, successfully navigated supply chain challenges and continued to respond to strong customer growth across Idaho Power’s service area.”

![img-1.jpeg](img-1.jpeg)

President & CEO

## Contents

| Welcome Letter | 1 |
| --- | --- |
| Looking Back | 2 |
| Serving Customers | 4 |
| Energy Mix | 5 |
| Planning for Growth | 7 |
| Taking Care of Customers | 8 |
| Looking Forward | 10 |
| Board of Directors | 11 |
| Generation Facilities | 12 |
| Form 10-K | 13 |

## HIGHLIGHTS

Dollar Amounts in Thousands, Except Per-share Amounts

|  | 2022 | 2021 | % CHANGE |
| --- | --- | --- | --- |
| Total Operating Revenues | $1,643,981 | $1,458,084 | 12.75 |
| Net Income | $258,982 | $245,550 | 5.47 |
| Earnings Per Diluted Common Share | $5.11 | $4.85 | 5.36 |
| Dividends Declared Per Common Share | $3.04 | $2.88 | 5.56 |
| Total Assets | $7,543,258 | $7,210,515 | 4.61 |
| Number of Employees (full-time) | 2,070 | 1,992 | 3.92 |
| Number of Customers | 617,995 | 603,753 | 2.36 |

At IDACORP, we are problem solvers at heart. Our talented employees diligently work on a range of complex problems to find solutions every day, fulfilling our mission of serving customers with the reliable, affordable energy they count on.

Today, the energy industry is facing unprecedented opportunities and challenges. At Idaho Power, the convergence of historic growth, emerging technologies and our clean energy goal have created the most interesting opportunity yet: How to power more customers than ever before and move toward a clean energy future - all while maintaining the reliability and affordability that have been the hallmarks of our 106-year history. We truly are building our future.

In 2022, IDACORP enjoyed another outstanding year. We achieved our 15th consecutive year of earnings growth, kept our customers’ lights on 99.97% of the time, maintained excellent customer satisfaction scores, successfully navigated supply chain challenges and continued to respond to strong customer growth across Idaho Power’s service area.

As we look to 2023 and beyond, we are working hard to expand and improve Idaho Power’s energy grid. One crucial driver will be large transmission projects like Boardman-to-Hemingway, which we expect to break ground on this year as we successfully obtained key permits in 2022. We also recently began buying energy from the 120-megawatt (MW) Jackpot Solar project. Meanwhile, Idaho Power’s first utility-scale energy storage projects have received preliminary approval from our regulators, and we have broken ground on 120 MW of battery storage. In early 2023, we also signed an agreement to purchase energy from a 100-MW solar project, paired with an additional 60 MW of company-owned batteries. That project is scheduled to come online in 2024.

Our service area is a place where people want to live and do business, in part because of our excellent customer focus and affordable prices. The new infrastructure we are building will allow us to meet our increasing demand as we respond to robust customer growth and move away from coal resources. We anticipate needing more energy and capacity resources in 2025 and 2026, and we are soliciting and evaluating proposals for additional projects to help us meet those future needs.

Powering the future requires significant investment, and we currently anticipate the projects previously discussed, combined with other growth and reliability-focused capital projects, to drive more than $3 billion of capital expenditures over the next five years. We’re also working to strengthen and protect our existing resources. Our recently implemented *Wildfire Mitigation Plan* and ongoing hydroelectric license renewal projects are key examples of these efforts.

These are exciting times. Building our future will require hard work, innovation and lots of problem solving. But our employees continue to meet every challenge and keep us on a path toward continued growth and success. On their behalf, as well as our Board of Directors, we thank you for your investment in IDACORP.

President & Chief Executive Officer

Chair of the Board

![img-2.jpeg](img-2.jpeg)

Richard J. Dahl
Board of Directors Chair

![img-3.jpeg](img-3.jpeg)

## LOOKING BACK

IDACORP continued to provide strong financial growth and stability for our owners in 2022. We achieved our 15$^{th}$ consecutive year of earnings growth, with net income increasing $13.4 million compared to 2021.

Our success is driven by our passion to serve customers with reliable, affordable, clean energy. In 2022, we kept the lights on 99.97% of the time; our prices remained 20 to 30% lower than the national average; and we made strides toward our 100% clean energy goal by bringing 120 MW of new solar onto our system and breaking ground on a 120-MW battery storage project.

Our environmental, social and governance (ESG) efforts remain a key focus for IDACORP. As we build on our clean energy portfolio, we remain steadfast in protecting our environment through habitat restoration work, our Snake River Stewardship Program and our efforts to protect native raptors and boost fish populations. We’re also committed to supporting our communities through corporate giving, volunteerism and donating Employee Community Funds to our neighbors in need. As always, the safety of our employees, customers and communities remains a top priority.

Sustained customer growth continues to be a strength for Idaho Power, which now serves nearly 620,000 customers. Idaho remains one of the fastest-growing states in the nation. We experienced 2.4% customer growth in 2022 while announcing several large industrial projects that will further bolster Idaho Power’s future load growth.

## DILUTED EARNINGS

Per Share

![img-4.jpeg](img-4.jpeg)

### Earnings Guidance

We ended 2022 with earnings of $5.11 per diluted share, and we initiated earnings guidance for the full year 2023 in the range of $4.95 to $5.15 per diluted share.

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![img-5.jpeg](img-5.jpeg)

## Earnings Guidance

Despite rising costs due mostly to inflationary pressures, IDACORP achieved its 15$^{th}$ consecutive year of earnings growth in 2022 - an achievement we believe is unprecedented among investor-owned utilities. IDACORP ended the year with earnings of $5.11 per diluted share, and we initiated earnings guidance for the full year 2023 in the range of $4.95 to $5.15 per diluted share.

Idaho Power did not use any additional accumulated deferred investment tax credits (ADITC) in 2022. This again preserves the full $45 million of credits in the Idaho regulatory stipulation available for future earnings support. Looking forward, as we forecast continued cost pressures as well as higher depreciation expense and financing costs related to infrastructure projects to meet customer demand, we anticipate using approximately $15 million of ADITC in 2023.

## Dividend Growth

IDACORP's quarterly common stock dividend increased 5.3%, from $0.75 to $0.79 per share, in 2022. This was our 11$^{th}$ consecutive year with a dividend increase, with cumulative growth of 163% in that span. IDACORP management expects to recommend future annual increases, as we target a payout ratio of between 60 and 70% of sustainable IDACORP earnings.

## General Rate Case

Due to cumulative and ongoing significant infrastructure investments, Idaho Power plans to file a general rate case in Idaho in June 2023, with a filing to follow in Oregon thereafter. Several factors impact the timing and need to file general rate cases, including the expected increase in depreciation expense from rate-base eligible assets as they are placed into service; investments we have made in our infrastructure since our last general rate case in 2011; expected capital expenditure financing costs and inflationary pressures on labor-related costs, purchased services and supplies.

### Annualized Year-end Dividend Per Share

![img-6.jpeg](img-6.jpeg)

### Book Value Per Share

![img-7.jpeg](img-7.jpeg)

### Return on Year-end Equity

![img-8.jpeg](img-8.jpeg)

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# SERVING CUSTOMERS

## Reliable

Reliability remains a core strength of our business, as Idaho Power kept the lights on 99.97% of the time in 2022. We continue to see extreme weather in our service area, including summer heat waves that led to new record peak loads for August and September as well as a December cold snap during which Idaho Power hit a new all-time winter peak load of 2,604 MW. Our field crews, load serving operators and employees across our organization continue to step up and ensure our customers' growing energy needs are met, even in difficult conditions.

We are making plans to ensure our resources will meet future demand. Idaho Power recently signed an agreement with the 100-MW Franklin Solar Project, which is scheduled to come online in June 2024 and will also include 60 MW of battery storage. We have issued requests for proposal for additional projects that will help us continue to meet the growing demand for energy in our service area.

## Affordable

We know times are tough for many of our customers, and we take our commitment to affordability seriously. Idaho Power's residential prices remained more than 20% lower than the national average in 2022, while business customer prices were about 30% lower than the national average. Serving our customers with the affordable energy they depend on has been a hallmark of Idaho Power's 106-year history, and it remains a top priority for our company.

## Clean

Idaho Power continues to be a leader in clean energy generation as we move toward our *Clean Today, Cleaner Tomorrow®* goal of providing 100% clean energy by 2045. Typically, more than half of our energy capacity comes from carbon-free sources, including Idaho Power-owned hydro resources and the energy we buy through long-term contracts with wind, solar, biomass, geothermal and small-scale hydro generators.

In December, Idaho Power broke ground on a project to install 120 MW of battery storage, which will help maintain reliable service during periods of high use. The batteries will be the first utility-scale storage systems in Idaho. Also in December, we began buying energy from the new 120-MW Jackpot Solar facility in southern Idaho. These projects show how Idaho Power is integrating more utility-scale renewables onto our system as we move away from coal generation resources. We are taking steps toward ending coal operations at Bridger units 1 and 2 in 2024.

Idaho Power's most recent carbon emissions intensity measurement under our short-term emissions goal was 837 pounds of carbon dioxide (CO2) per Megawatt-hour (MWh) of Idaho Power generation - 30% below our baseline year (2005). Our short-term goal is to reduce CO2 emissions intensity by 35% over the 2021-2025 period, compared to 2005. Our medium-term target is based on our *2021 Integrated Resource Plan* (IRP), which anticipates an 86% reduction in CO2 emissions intensity from 2005 emissions intensity by 2030, and we believe our long-term goal of providing 100% clean energy by 2045 aligns with meeting the Paris Agreement net zero goal by 2050.

![img-9.jpeg](img-9.jpeg)

![img-10.jpeg](img-10.jpeg)

PAGE 4

![img-11.jpeg](img-11.jpeg)

IDACORP continues its strong tradition of environmental stewardship while reliably serving customers with the energy they depend on every day. Examples of our efforts to run an environmentally responsible, sustainable business include our Snake River Stewardship Program, fish and raptor programs, carbon reduction goals and electrification of Idaho Power's fleet. Learn about these efforts and more in the 2022 ESG Report on IDACORP's website.

## 2022 Energy Mix

Idaho Power's clean energy mix relies heavily on hydropower produced by our 17 projects on the Snake River and its tributaries. Hydropower once again accounted for the largest portion (31.1%) of our energy in 2022. The remainder came from long-term purchases of wind, solar and other renewable resources (16.1%); market purchases (20.3%); coal (19.9%) and natural gas (12.6%).

This energy mix shows the energy we generate from company-owned resources and energy we buy through long-term contracts with wind, solar, biomass, geothermal and small-scale hydro generators. The overall mix does not represent the energy delivered to customers for two reasons. First, we participate in the wholesale energy market and sell energy both to other utilities and to retail customers. Second, some of our purchased power from renewable sources comes with a Renewable Energy Credit (REC), which we sell to keep customer prices low.

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

Data Source: U.S. Energy Information Administration
Totals may not equal 100% due to rounding.

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# FORWARD-LOOKING 5-YEAR CAPITAL EXPENDITURES estimates in millions

$900

2023

2024

2025

2026

2027

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# PLANNING FOR GROWTH

## Customer & Load Growth

Customer growth remains strong across Idaho Power's service area. Our customer base grew 2.4% in 2022, and we now serve nearly 620,000 customers. As of the end of December 2022, Moody's GDP calculations for Idaho Power's service area forecast growth of 3.9% in 2023 and 4.5% in 2024, as our local economy continues to outperform national trends. We believe the reliable, affordable energy Idaho Power provides is a key driver for growth across our service area.

While robust residential growth has been a theme for several years, we are also seeing a major uptick in Idaho Power's load growth forecast as a result of several large-load projects. With the new Meta data center coming to Kuna, Idaho, and Micron's major expansion to its Boise headquarters, including new microchip fabrication facilities, Idaho Power expects peak load growth of 3.7% over the next five years.

## Integrated Resource Plan

Idaho Power's 2021 IRP was acknowledged by both the Idaho Public Utilities Commission and the Public Utility Commission of Oregon in late 2022. The company intends to submit its 2023 IRP to regulators in June. Idaho Power develops a new IRP every two years with the assistance of its customers and other interest groups through an advisory panel - the Integrated Resource Plan Advisory Council (IRPAC). Idaho Power's planning team implemented changes for the current IRP cycle to increase public engagement, including developing educational videos and additional online resources to help IRPAC members better understand key issues and foster more robust participation.

## High-voltage Transmission Projects

In September, Oregon's Energy Facility Siting Council voted unanimously to award the Boardman-to-Hemingway (B2H) transmission line project a site certificate, which would permit construction of the nearly 300-mile line across five eastern Oregon counties.

Idaho Power has entered a non-binding agreement with B2H's other two participants, Bonneville Power Administration (BPA) and PacifiCorp, that would transfer BPA's share of the project to Idaho Power. Taking over BPA's share simplifies permitting and construction of B2H, strengthening our chances of completing the project on schedule so we can meet growing customer demand with reliable, affordable, clean energy. Idaho Power has begun acquiring easements and rights-of-entry for private property along the project route. We recently took another step toward making B2H a reality by applying for a Certificate of Public Convenience and Necessity (CPCN) in Idaho. The CPCN requests official recognition of the project's value. We expect to break ground in 2023 and finish the project as early as 2026.

Idaho Power and PacifiCorp are also working together on the 1,000-mile Gateway West transmission line, which will help both companies meet rising customer demand and improve reliability.

## Hells Canyon Complex Relicensing

Idaho Power continues working toward a new long-term federal license for the three-dam Hells Canyon Complex (HCC). The HCC is our largest generation resource, and the years-long effort for a new license took significant steps forward in 2022.

In June, the Federal Energy Regulatory Commission (FERC) issued a Notice of Intent (NOI) to prepare a supplemental Environmental Impact Statement (EIS) for the HCC in accordance with the National Environmental Policy Act (NEPA). The supplemental EIS will describe and evaluate the effects of the project as proposed by Idaho Power, as well as alternatives, and allow for stakeholder review.

The final supplemental EIS is targeted to be complete in December 2023, which would put Idaho Power on track to receive a new long-term license in late 2024 or later.

![img-14.jpeg](img-14.jpeg)

![img-15.jpeg](img-15.jpeg)

![img-16.jpeg](img-16.jpeg)

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![img-17.jpeg](img-17.jpeg)

# TAKING CARE OF CUSTOMERS

## Customer Satisfaction

Idaho Power's customer satisfaction scores continue to rank near the top of the list among our peer utilities. In 2022, we created a new mobile app and launched a new and improved My Account online platform to make it easier for our customers to do business with us. As always, we continue to seek new and innovative ways to better serve our customers with minimum impact on rates.

## Community Involvement

Idaho Power cares deeply for the communities where we live and work. In 2022, our company donated more than $1.5 million to help our neighbors in need. Examples include giving to nonprofit groups focused on preventing hunger, homelessness and domestic violence; promoting education by funding scholarships and sponsoring STEM programs; donating vehicles to emergency responders; and supporting community groups focused on children, seniors, minorities, veterans and other underserved groups. Idaho Power employees also provided thousands of hours of community service and volunteerism. Matching funds from IDACORP shareowners help maximize the impact of our corporate giving. For more about our commitment to our communities, see our 2022 ESG Report.

![img-18.jpeg](img-18.jpeg)

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