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IDACORP Gains From Regulated Infrastructure, Clean Energy Initiative

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Key Takeaways

  • IDACORP's regulated Idaho operations and 2.3% customer growth boost performance.
  • IDA plans $1.25-$1.35B in 2026 capex and $3.1-$3.6B for 2027-2029 to expand infrastructure and service.
  • IDACORP targets 100% clean energy by 2045, shifting coal units to natural gas in 2026 and 2030.

IDACORP (IDA - Free Report) has been gaining from systematic capital investment, an expanding customer base and a clean energy initiative that boosts performance.

Long-term (three to five years) earnings growth of the company is projected at 8.01%.

IDA’s Tailwinds

IDACORP’s regulated electric operations in Idaho, along with rising demand from an expanding customer base, are boosting performance. The company’s unit, Idaho Power, saw its customer base increase by 2.3% year over year. 

IDACORP’s Unit, Idaho Power, plans to make a capital expenditure of $1.25-$1.35 billion in 2026 and $3.1-$3.6 billion during the 2027-2029 time frame. The capital expenditure is expected to be utilized for infrastructure development and operational expansion of the company, which will assist it in providing better service to its customers.  

The capital-intensive utilities will benefit from the decline in the Fed rate to 3.5- 3.75%. In addition to IDACORP, other utilities like NextEra Energy (NEE - Free Report) , Dominion Energy (D - Free Report) and The Southern Company (SO - Free Report) will see a decline in capital servicing expenses due to a decline in interest rates.

NextEra Energy, Dominion Energy and The Southern Company are expected to invest $74 billion, $50 billion and $76 billion, respectively, through 2029 to strengthen their infrastructure and add more clean energy generation sources to their portfolio. 

Idaho Power generates power through several hydroelectric generating plants, and plans to shift to 100% clean energy production by 2045. The company has filed the Integrated Resource Plan for conversion from coal to natural gas of the two units at the North Valmy plant in 2026 and the remaining two units at the Jim Bridger plant in 2030, thereby supporting the clean energy production goal.

IDA’s Headwinds

IDACORP’S operations are subject to federal, state and other regulations. The company generates revenues through rates fixed by the Idaho Public Utilities Commission and the Public Utility Commission of Oregon. Any unfavorable decision by these regulatory bodies might adversely impact the company's revenues and profit generation.

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