stockrowWhat it does
IDACORP is a Boise-based holding company founded in 1998. Its chief executive is Lisa A. Grow. Its principal operating subsidiary, Idaho Power, generates, buys, transmits, distributes and sells electricity. Idaho Power’s utility operations account for nearly all of IDACORP’s current business operations.
Idaho Power supplies electricity to homes and businesses in southern Idaho and eastern Oregon. Its customers include farms that use electricity to pump irrigation water, as well as manufacturers, food processors, health-care providers, government agencies and information technology businesses. It also sells surplus electricity in wholesale markets and provides transmission service, moving electricity over its network for eligible customers.
The utility uses its own hydropower, natural gas and coal facilities alongside battery storage and power purchased from other generators. Its transmission system connects generating facilities to distribution networks and to neighboring transmission systems. State commissions regulate retail rates, while the Federal Energy Regulatory Commission oversees aspects of wholesale sales, transmission and hydropower licensing.
IDACORP also owns a business that invests in affordable housing and other real estate tax credit projects. Another subsidiary, Ida-West, operates small hydropower projects. These activities sit alongside the main regulated utility business.
How it makes money
Idaho Power earns most of its revenue by selling electricity to retail customers. It also sells electricity in wholesale markets and charges customers for using its transmission system. Retail service produces revenue as customers use electricity, although the amount varies with demand, weather and rates. Wholesale sales depend partly on how much generation is available beyond what retail customers need and on market prices.
In FY2025, retail revenues were $1.6 billion. Total electric utility operating revenues were 1,809,609 thousands of dollars for the year ended December 31, 2025.
Retail prices are generally set through regulatory proceedings on a cost-of-service basis. They are designed to give Idaho Power an opportunity to recover allowable operating costs and depreciation and earn a reasonable return on investment. The utility can request rate changes through general rate cases and other mechanisms, but a request does not guarantee full or timely recovery of costs or a specified return.
Power cost adjustment mechanisms address much of the earnings impact of changing fuel and purchased-power costs. Amounts are generally collected from or returned to customers in a later period, which can affect cash flow in the meantime. Idaho Power also provides wholesale transmission access at cost-based rates under a federally approved tariff.
Outside the utility, IDACORP Financial Services invests in real estate tax credit projects. Its return comes principally from tax credits and accelerated tax depreciation. Ida-West operates hydropower projects, including projects whose output Idaho Power purchases.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Retail revenues | $1.6 billion | 89.1% | 0.23% |
| Transmission services (wheeling) | $72.2 million | 4.13% | −8.77% |
| Wholesale energy sales | $56.0 million | 3.20% | −24.2% |
| Other revenues | $35.8 million | 2.05% | 9.90% |
| Energy efficiency program revenues | $30.5 million | 1.74% | 10.5% |
| Idaho Fixed Cost Adjustment | −$3.9 million | −0.22% | −236.4% |
Customers and how it sells
Idaho Power served approximately 664,000 retail customers in southern Idaho and eastern Oregon as of December 31, 2025, including approximately 561,000 residential customers. Its service area covered approximately 24,000 square miles. The utility holds franchises and state certificates to serve cities and counties across the two states.
Commercial and industrial customers work in food processing, electronics and general manufacturing, agriculture, health care, government, education and information technology. Irrigation customers use electricity to operate pumps during the agricultural growing season. Retail sales typically peak in the summer irrigation and cooling season, with a lower winter heating peak.
Meta began operating a data center south of Boise in September 2026 and was ramping up. Micron’s Boise expansions were also progressing. Idaho Power’s large-customer agreements seek to protect the utility and existing customers from risk and cost-shifting.
Idaho Power agreed to sell its Oregon electric distribution business and associated assets, along with certain transmission assets, to OTEC. The company expects the sale to close in spring 2027, subject to successful regulatory outcomes. Federal approval has been received, while the Idaho and Oregon regulatory processes continue.
Suppliers and costs
Idaho Power relies on its own hydropower, gas-fired and coal-fired facilities, battery storage and long-term power purchase agreements. It also buys electricity in wholesale markets to supplement its generation and balance supply and demand. Many long-term purchase contracts are with outside generators using renewable resources, including wind, solar, small hydropower and geothermal energy.
A jointly owned coal supplier, BCC, supplies coal to units at the Jim Bridger plant, which Idaho Power partly owns. Natural gas is purchased according to system needs and transported under long-term pipeline agreements. The company also uses gas storage and hedges some of its fuel needs.
Power supply costs are affected by water availability, fuel prices, demand and generating-resource availability. Drought can reduce hydropower generation and increase reliance on potentially more expensive resources. Power cost adjustment mechanisms mitigate much of the earnings impact of fuel and purchased-power volatility, though recovery can occur later.
Idaho Power also incurs labor, maintenance, depreciation, financing and environmental compliance costs. It has identified continuing challenges obtaining breakers, transformers and conductor for projects.
- Revenue$1.8B
- Cost of revenue−$670.7M
- Selling, general and administrative−$470.5M
- Other operating costs−$317.8M
- Operating income$354.0M
Competitive position
Idaho Power’s electric utility business has historically been recognized as a regulated monopoly. Utilities generally receive an exclusive right to serve a defined area in return for agreeing to serve customers there. Idaho Power also holds franchises and certificates covering its service territory.
The utility nevertheless competes with fuel distributors, including natural gas providers, for customers’ heating and appliance needs. Customer-owned solar, other distributed generation and energy efficiency can reduce the electricity those customers buy. Idaho Power also participates in wholesale electricity and transmission markets. Those markets are subject to federal rules requiring utilities to provide transmission access on a non-discriminatory basis.
Certain municipalities or Native American Tribal reservations within the service area may choose to operate separately rather than take Idaho Power service. Such an entity would need to purchase or otherwise obtain rights to the utility’s distribution infrastructure in its designated area.
Our reading: The service-area framework is a substantial protection for retail electricity distribution because it generally assigns exclusive service rights, although the arrangements allow certain local entities to operate separately. Our reading: Idaho Power’s established distribution and transmission infrastructure supports its position, but alternatives for heating and customer-generated electricity limit its protection against changes in demand. No named competing company is identified in these markets.
Growth opportunities
Idaho Power’s customer count increased 2.3 percent in 2025. In the third quarter of 2026, the company reported that customer count had increased 2.2% since the prior-year quarter and industrial revenues had increased 27% over the same period. Large contract customers contributed as they constructed facilities and began operations.
The company’s preliminary load forecast for its 2027 resource plan assumes 8.9% annual growth in retail sales for the next 5 years. For large contract customers, the preliminary forecast includes customers that have signed contracts or made significant financial commitments to infrastructure. Idaho Power also receives inquiries from prospective customers, but inquiries are not the same as committed demand.
Idaho Power is building generation and transmission capacity to serve expected growth. Construction is underway on a 167 megawatt gas resource next to Bennett Mountain, scheduled for service in 2028. The company is also developing the South Hills and Peregrine gas projects and has executed equipment supply agreements for all 3 projects.
The Boardman to Hemingway transmission line remains scheduled for service in late 2027, and the company expects the Swift North transmission project to be completed in 2028. Idaho Power said its earlier capital expenditure graph was outdated and plans to provide an updated forecast with its fourth-quarter earnings call.
- $1.5BFY2021
- $1.6BFY2022
- $1.8BFY2023
- $1.8BFY2024
- $1.8BFY2025
Structural risks
- Regulation and recovery: Regulators determine the rates Idaho Power can charge. The ability to request changes does not ensure that all costs will be recovered, that recovery will be timely or that the utility will earn a specified return.
- Water, weather and fuel: Water conditions affect hydropower output, while weather affects customer demand. Drought can increase reliance on other generation and purchased power. Cost-adjustment mechanisms mitigate much of the earnings impact, but deferred recovery can affect cash flow.
- Construction and supply: Projects face permitting, construction and financing risks, including equipment delays, material costs, adverse weather and contractor defaults. Breakers, transformers and conductor remain supply challenges.
- Capital and financing: Idaho Power incurs construction and financing costs before completed assets are included in rates. Disruptions in financing markets or limits on issuing debt or equity could increase borrowing costs or restrict access to capital.
- Hydropower licensing and environmental rules: Idaho Power is pursuing relicensing of its largest hydropower resource. It cannot predict the final license timing or the full investment and operating costs required to comply. Environmental requirements could also raise costs that may not be fully or promptly recovered.
Bottom line
Our reading
Our reading: IDACORP is principally a regulated electric utility whose retail service territory and established network support its business, while regulators determine the opportunity to recover costs and earn a return. [item1] Customer and industrial demand create a need for new capacity, but the accompanying construction, financing and rate-recovery requirements leave the company exposed to project timing and regulatory decisions. [item7] [call_prepared]