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Will Rising Customer Demand Boost IDACORP's Long-Term Growth?
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Key Takeaways
IDACORP added 15,000 customers as industrial revenues rose 17% in the second quarter of 2026.
IDA expects annual retail electricity sales growth of 8.3% and peak demand growth of 5.1% over five years.
IDACORP plans $7.1 billion in capital investments through 2030 to support rising electricity demand.
IDACORP, Inc. (IDA - Free Report) is benefiting from rising electricity demand across its service territory, driven by customer growth, industrial expansion and large-load customers. IDA’s subsidiary, Idaho Power, added approximately 15,000 customers, reflecting 2.3% annual growth through June 30, 2026, while IDACORP’s second-quarter industrial revenues increased 17%, including large contract customers.
Customer growth, excluding large contract customers and net of associated power supply costs and power cost adjustment mechanisms, increased second-quarter operating income by $4.5 million. These developments highlight how rising customer demand can support IDACORP’s financial performance.
According to its 2025 Integrated Resource Plan, Idaho Power expects retail electricity sales to increase 8.3% annually and peak demand to rise 5.1% annually over five years. Higher electricity use at Micron’s expanding facilities and Meta’s new data center is expected to generate additional revenues in the second half of 2026. The company also has a strong pipeline of potential large-load customers across multiple industries. New energy service agreements may include take-or-pay clauses, termination payments and credit protections, limiting financial risks.
IDACORP is investing in generation capacity, battery storage and transmission infrastructure to meet rising demand efficiently. Idaho Power forecasts 2026 capital expenditures of $1.3-$1.5 billion and plans to invest approximately $7.1 billion through 2030, averaging $1.42 billion annually. Thus, continued customer growth, higher industrial demand and new large-load revenues could support IDACORP’s sales and earnings outlook.
Rising Electricity Demand Supports Utility Industry Growth
Growing electricity needs encourage utilities to invest in grid upgrades, additional generation capacity and improved service reliability. These investments meet rising demand, support regional development and strengthen long-term industry growth prospects. IDA and other utilities also benefit from growing customer demand.
Alliant Energy Corporation (LNT - Free Report) had 1,011,128 electric customers as of June 30, 2026, up 0.69% year over year, while natural gas customers increased 0.47% to 432,892, supporting its regulated utility operations.
Pinnacle West (PNW - Free Report) subsidiary Arizona Public Service (APS) reported 5.6% growth in weather-normalized electricity sales and 2.1% customer growth in the second quarter of 2026, supporting electricity revenues and helping offset higher costs.
IDA’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates a year-over-year increase of 8.31% and 8.42%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
IDA's debt-to-capital currently stands at 50.08%, lower than the Zacks Utility - Electric Power industry’s 62.33%.
Image Source: Zacks Investment Research
IDA’s Stock Price Performance
In the past month, the company’s shares have risen 1.8% against the industry’s 0.5% decline.
View the Zacks #1 Rank List
Image: Bigstock
Will Rising Customer Demand Boost IDACORP's Long-Term Growth?
Key Takeaways
IDACORP, Inc. (IDA - Free Report) is benefiting from rising electricity demand across its service territory, driven by customer growth, industrial expansion and large-load customers. IDA’s subsidiary, Idaho Power, added approximately 15,000 customers, reflecting 2.3% annual growth through June 30, 2026, while IDACORP’s second-quarter industrial revenues increased 17%, including large contract customers.
Customer growth, excluding large contract customers and net of associated power supply costs and power cost adjustment mechanisms, increased second-quarter operating income by $4.5 million. These developments highlight how rising customer demand can support IDACORP’s financial performance.
According to its 2025 Integrated Resource Plan, Idaho Power expects retail electricity sales to increase 8.3% annually and peak demand to rise 5.1% annually over five years. Higher electricity use at Micron’s expanding facilities and Meta’s new data center is expected to generate additional revenues in the second half of 2026. The company also has a strong pipeline of potential large-load customers across multiple industries. New energy service agreements may include take-or-pay clauses, termination payments and credit protections, limiting financial risks.
IDACORP is investing in generation capacity, battery storage and transmission infrastructure to meet rising demand efficiently. Idaho Power forecasts 2026 capital expenditures of $1.3-$1.5 billion and plans to invest approximately $7.1 billion through 2030, averaging $1.42 billion annually. Thus, continued customer growth, higher industrial demand and new large-load revenues could support IDACORP’s sales and earnings outlook.
Rising Electricity Demand Supports Utility Industry Growth
Growing electricity needs encourage utilities to invest in grid upgrades, additional generation capacity and improved service reliability. These investments meet rising demand, support regional development and strengthen long-term industry growth prospects. IDA and other utilities also benefit from growing customer demand.
Alliant Energy Corporation (LNT - Free Report) had 1,011,128 electric customers as of June 30, 2026, up 0.69% year over year, while natural gas customers increased 0.47% to 432,892, supporting its regulated utility operations.
Pinnacle West (PNW - Free Report) subsidiary Arizona Public Service (APS) reported 5.6% growth in weather-normalized electricity sales and 2.1% customer growth in the second quarter of 2026, supporting electricity revenues and helping offset higher costs.
IDA’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates a year-over-year increase of 8.31% and 8.42%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
IDA's debt-to-capital currently stands at 50.08%, lower than the Zacks Utility - Electric Power industry’s 62.33%.
Image Source: Zacks Investment Research
IDA’s Stock Price Performance
In the past month, the company’s shares have risen 1.8% against the industry’s 0.5% decline.
Image Source: Zacks Investment Research
IDA’s Zacks Rank
IDA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.