IDACORP Raises 2026 EPS Outlook After Q3 Profit Growth

IDACORP Inc. reported a 29% increase in third-quarter net income and raised its 2026 earnings guidance, as higher retail revenue and contributions from large contract customers more than offset rising operating and depreciation expenses.

Net income for the three months ended Sept. 30 rose to $160.2 million from $124.4 million a year earlier. Diluted earnings per share increased to $2.73 from $2.26 despite a rise in the diluted weighted-average share count to 58.7 million from 55.1 million.

For the first nine months of 2026, net income reached $330.8 million, compared with $279.9 million in the same period of 2025. Diluted EPS advanced to $5.76 from $5.13.

Retail revenue and customer growth support earnings

At Idaho Power, higher retail revenue per megawatt-hour, excluding large contract customers and net of power-cost adjustment mechanisms, added $38.1 million to the year-over-year quarterly comparison on a pre-tax basis. Retail revenue from large contract customers, after associated power-supply costs and the Idaho power-cost adjustment mechanism, contributed another $11.8 million.

Customer growth excluding large contract customers added $5.8 million, while usage per retail customer provided a modest $0.2 million benefit. Idaho Power’s customer count increased 2.2% over the 12 months ended Sept. 30.

Those gains were partly offset by a $22.5 million increase in other operations and maintenance expenses, a $7.4 million rise in depreciation and amortization, and a $3.7 million reduction in Idaho fixed-cost adjustment revenue. Other changes in operating revenue and expenses provided a net benefit of $10.6 million.

Overall, Idaho Power’s operating income increased by $32.9 million and its net income rose by $36 million. Other IDACORP items reduced the consolidated year-over-year improvement by $0.2 million after tax.

Guidance moves higher as operating costs increase

IDACORP now expects 2026 diluted EPS of $6.40 to $6.50, compared with its previous range of $6.30 to $6.45 issued on July 30. The outlook assumes normal weather through the end of the year.

The company expects Idaho Power’s 2026 O&M expense to be between $535 million and $545 million, up from the prior estimate of $525 million to $535 million. Expected additional amortization of accumulated deferred investment tax credits was reduced to less than $10 million from less than $15 million.

The forecast for hydropower generation was narrowed to 5.5 million to 6.0 million megawatt-hours from 5.5 million to 6.5 million. Idaho Power’s capital-expenditure estimate, excluding allowance for funds used during construction, was unchanged at $1.3 billion to $1.5 billion.

Load growth drives infrastructure planning

A preliminary version of Idaho Power’s 2027 integrated resource plan projects five-year annual growth of 8.9% in billed retail sales and 5.4% in annual peak demand. Over 20 years, the preliminary forecast calls for annual growth of 2.6% in retail sales and 2.0% in peak demand. The company cautioned that the preliminary growth rates remain subject to change until the plan is filed.

Idaho Power is considering contractual protections for large customers, including take-or-pay obligations, minimum billing demand, credit and collateral requirements, and termination payments tied to long-term cost recovery. The presentation said commission-approved energy-services agreements are evaluated individually and may not contain all of those provisions.

Construction of the Boardman-to-Hemingway transmission project is continuing, with about 1,200 of 1,300 structure pads and roughly 780 structures completed. Approximately 100 miles of conductor had been installed, and the project is expected to enter service in late 2027.

Idaho Power placed 250 megawatts of battery energy-storage projects into service in June 2026. The company has also received regulatory approval for a certificate of public convenience and necessity for the 167-megawatt Bennett expansion and has submitted an application covering the 222-megawatt South Hills and 430-megawatt Peregrine projects.

A final shortlist for Idaho Power’s 2032 resource request includes potential gas generation, solar, wind, battery storage and market purchases. The company said it is unlikely to contract for or construct every project on the list.

Liquidity and execution risks

As of Oct. 23, IDACORP had $100 million available under its revolving credit facility, while Idaho Power had $400 million available. The company also had potential net proceeds available through outstanding forward-sale agreements and its equity distribution programs, including about $532 million under outstanding forward transactions associated with the 2026 at-the-market program.

The company’s outlook remains exposed to regulatory cost-recovery decisions, permitting and construction delays, inflation, tariffs, supply-chain constraints and access to financing. IDACORP also identified uncertainty around the timing and scale of new industrial demand as a significant consideration, because rapid or volatile load additions could cause power demand to exceed available supply and increase volatility in revenue, cash flow and earnings. Weather, wildfire, drought, cybersecurity threats and the cost and availability of equipment, fuel, purchased power and transmission capacity are among the other risks cited in the presentation.