Q1 2025 IDACORP Inc Earnings Call

Welcome to Ita Corp, first quarter, 'twenty 25 earnings conference call.

Operator: Welcome to Idacorp first quarter 2025 earnings conference call. Today's call is being recorded and our webcast is live.

Speaker Change: Today's call is being recorded and a webcast as live a replay will be available later today and for the next 12 months on the Arctic or website. If you need assistance at any time during the presentation. Please press star zero on your phone I will now turn the call over to Amy Shaw Vice President of Finance.

Operator: A replay will be available later today and for the next 12 months on the Idacorp website. If you need assistance at any time during the presentation, please press star zero on your phone.

Amy Shaw: I will now turn the call over to Amy Shaw, Vice President of Finance, Compliance and Risk. Thank you. Good afternoon, everyone. We appreciate you joining our call.

Speaker Change: Compliance and risk.

Speaker Change: Thank you good afternoon, everyone. We appreciate you joining our call the slides referenced during today's call are available on Edgar website as noted on slide two our discussion today includes forward looking statements, including earnings guidance spending forecast financing plans regulatory actions and plans in estimates and assumptions that reflect our current views.

Amy Shaw: The slides we'll reference during today's call are available on Idacorp's website.

Amy Shaw: As noted on slide two, our discussion today includes forward-looking statements, including earnings guidance, spending forecasts, financing plans, regulatory actions and plans, and estimates and assumptions that reflect our current views on what the future holds, all of which are subject to risks and uncertainties. These risks and uncertainties may cause actual results to differ materially from statements made today, and we caution against placing undue reliance on any forward-looking statements. Our cautionary note on forward-looking statements and various risk factors are included in more detail for your review in our filings with the Securities and Exchange Commission.

Speaker Change: And what the future holds all of which are subject to risks and uncertainties. These risks and uncertainties may cause actual results to differ materially from statements made today and we caution against placing undue reliance on any forward looking statements are cautionary note on forward looking statements and various risk factors are included in more detail for your review.

<unk> with the Securities and Exchange Commission as shown on slide three we have Lisa go President and CEO, Bryan Buckler am SVP, CFO, and Treasurer, and John Wunderlich Investor Relations manager presenting today. We also have other members of our management team available for Q&A session. Following our prepared remarks.

Amy Shaw: As shown on slide three, we have Lisa Grow, President and CEO, Brian Buckham, SVP, CFO, and Treasurer, and John Wonderlich, Investor Relations Manager, presenting today. We also have other members of our management team available for a Q&A session following our remarks.

Lisa Grow: Slide four shows a summary of our first quarter results. Idacorp's diluted earnings per share were $1.10 compared with 95 cents for last year's first quarter. Our key operating metrics and guidance are unchanged except for our hydropower generation forecast, which has improved. We're reaffirming our full-year Idacorp diluted earnings per share guidance range of 565 to 585.

Speaker Change: Slide four shows a summary of our first quarter results diluted earnings per share were $1 10, compared with 95 cents for last year's first quarter, our key operating metrics and guidance are unchanged, except for our hydropower generation forecast, which has improved we're reaffirming our full year diluted earnings per share guidance range of five.

Speaker Change: 65 to 585. This includes our expectation that Idaho power will use between 60 and $77 million of additional tax credit amortization. These estimates assume historically normal weather conditions and normal power supply expenses for the rest of the year now I will turn the call over to Lisa Thanks, Amy and thanks to everyone for joining.

Lisa Grow: This includes our expectation that Idaho Power will use between $60 and $77 million of additional tax credit amortization. These estimates assume historically normal weather conditions and normal power supply expenses for the rest of the year.

Lisa Grow: Now I'll turn the call over to Lisa. Thanks, Amy, and thanks to everyone for joining us on the call today. I'll start with a look at the continued customer growth and economic expansion happening across Idaho Power Service Area as you can see on slide 5. Our customer base has grown 2.6% since last year's first quarter, including 2.9% for residential customers. The first quarter featured several significant new customer investments in the food processing and warehousing sector. Our existing customer, Chobani, announced a $500 million expansion of its facility in southern Idaho, increasing production by 50% and adding 500,000 square feet to its plant.

Lisa: US on the call today.

Lisa: I'll start with a look at the continued customer growth and economic expansion happening across Idaho power service area as you can see on slide five.

Lisa: Our customer base has grown two 6% since last year's first quarter, including two 9% for residential customers.

Lisa: The first quarter featured several significant new customer investments in the food processing and warehousing sectors are existing customer chill, Bonnie announced a 500 million dollar expansion of its facility in southern Idaho, increasing production by 50% and adding 500000 square feet towards plant the expanded plant will.

Lisa Grow: The expanded plant will total 1.6 million square feet with 24 production lines, making it the largest natural food production facility in the country. In addition, the tractor supply company broke ground on a new distribution center in Nampa. The 865,000 square foot facility represents an investment of nearly $225 million. Many of our large customers are far along in their projects, as you can see the magnitude of two of those projects on slide six. Recall, we have another large customer that made a financial commitment and whose load ramp is expected to start in 2029. So you can see interest remains high from businesses looking to locate and expand within Idaho Power's service area.

Lisa: Total one 6 million square feet with 24 production lines, making it the largest natural food production facility in the country.

Lisa: In addition, the tractor supply company broke ground on a new distribution center in Napa E 865000 square foot facility represents an investment of nearly $225 million.

Lisa: Many of our large customers are far along in their projects as you can see the magnitude of two of those projects on slide six.

Lisa: Recall, we have another large customer that made a financial commitment and whose load ramp is expected to start in 2029.

Lisa: So you can see interest remains high from businesses looking to locate and expand within Idaho power service area.

Lisa Grow: As a reminder, prospective customers would be incremental to both our existing anticipated load growth rates and our capital plan. Turning to slide 7, the 5-year forecast for retail sales growth is 8.3% annual. This forecasted growth continues to drive our need for additional system investments and power purchases to help meet projected low deficits. Like our customers, we're very much in execution mode. We're making great progress on the projects being built to support our customers. Our 80-megawatt 2025 battery project is on track to be operational later this spring, along with a 150-megawatt storage agreement. In addition, our Boise Bench battery storage project was recently permitted.

Lisa: As a reminder, prospective customers would be incremental to both our existing anticipated load growth rates and our capital plans.

Lisa: Turning to slide seven the five year forecast for retail sales growth is eight 3% annually.

Lisa: This forecasted growth continues to drive our need for additional system investments in power purchases to help meet projected low deficits.

Lisa: Like our customers were very much in execution mode.

Lisa: We're making great progress on the projects being built to support our customers are 80 megawatt 2025 battery project is on track to be operational later this spring along with a 150 megawatt storage agreements. In addition, our Boise bench battery storage project was recently permitted.

Lisa Grow: Our agreements on the 600-megawatt Jackalope Wind Project, 300 megawatts of which will become our first company-owned wind resource, are pending approval from the Idaho Commission. A solar PPA project associated with our Clean Energy Your Way program also came online. Our update on the ongoing RFP process for 2028 is on slide 8. On March 31st, the OPUC acknowledged the 2028 final shortlist, which includes both owned resources and third party projects. We're currently working through negotiating and contracting process and we anticipate providing an update later this year. Transmission is also vital to meeting demand, and our three major projects are highlighted on slide nine.

Lisa: Our agreements on a 600 megawatt jackalope wind project 300 megawatts of which will become our first company owned wind resource are pending approval from the Idaho Commission.

Lisa: Our solar PPA project associated with our clean energy Your way program also came online.

Lisa: Our update on the ongoing RFP process for 2028 is on slide eight.

Lisa: On March 31, the op Z acknowledge the 2028 final shortlist, which includes both owned resources and third party projects. We're currently working through the negotiating and contracting process and we anticipate providing an update later this year.

Lisa: Transmission is also vital to meeting demand in our three major projects are highlighted on slide nine.

Lisa Grow: We're working towards breaking ground on the Boardman to Hemingway project this year with an anticipated in-service date as early as 2027. As I mentioned on the year-end call, we've also entered into an agreement to become a partial owner of the Swift North Project. We expect construction to begin as early as this year and take approximately two years to complete. The Gateway West transmission line also remains in our plans. We've initiated permitting and preliminary design activities and are coordinating with Pacificor on the timing to best meet customer and system needs. We're pressing full speed ahead on bringing these important projects online to help meet customer demand.

Lisa: We're working towards breaking ground on the Boardman to Hemingway project. This year with anticipated in service date as early as 2027.

Lisa: As I mentioned on the year end call. We've also entered into an agreement to become a partial owner of the Swift North project.

Lisa: We expect construction to begin as early as this year and take approximately two years to complete.

The gateway West transmission line also remains in our plans, we've initiated permitting and preliminary design activities and are coordinating with Pacific core on the timing to best meet customer and system knees were pressing full speed ahead on bringing these important projects online to help meet customer demand.

Lisa: As we work to put steel in the ground on new infrastructure projects. We've had a lot of questions about tariffs and executive orders, Idaho power is actively monitoring the situation as we remain focused on affordability for our customers.

Lisa Grow: As we work to put steel in the ground on new infrastructure projects, we've had a lot of questions about tariffs and executive orders. Idaho Power is actively monitoring the situation as we remain focused on affordability for our customers. We've reviewed countries of origin for our supplies, the potential impacts, and alternative plans to mitigate those impacts. Tariffs on battery storage assets in particular are something we're monitoring because we have several projects in progress. At the same time, we're committed to meeting customer demand and must have the energy and capacity available when and where our customers need it.

Lisa: We've reviewed countries of origin for our supplies the potential impacts and alternative plans to mitigate those impacts.

Lisa: Terrorists on battery storage assets in particular are something we're monitoring because we have several projects in progress.

Lisa: At the same time, we're committed to meeting customer demand and and must have the energy and capacity available when and where our customers need it and switching resources for in process project is almost impossible given the demands on our system.

Lisa Grow: And switching resources for in-process project is almost impossible given the demands on our system.

Lisa: Turning to regulatory matters, we submitted to the Idaho Commission a notice of intent to file a general rate case in Idaho as early as the end of May we.

Lisa Grow: Turning to regulatory matters, we submitted to the Idaho Commission a notice of intent to file a general rate case in Idaho as early as the end of May. We expect the process for this full general rate case to take approximately seven months with rates effective no earlier than January 2026. We expect this comprehensive filing will be similar to the full general way case we filed in 2023. This filing is necessary to recover on the substantial capital investments we've been making to keep our system safe and reliable.

Lisa: We expect the process for this full general rate case to take approximately seven months with rates effective no earlier than January 2026.

Lisa: We expect this comprehensive filing will be similar to the full general rate case, we filed in 2023.

Lisa: Filing is necessary to recover on the substantial capital investments, we've been making to keep our systems safe and reliable.

Lisa: We shared some good news with our customers. This spring the combination of the annual power cost and fixed cost adjustments along with a filing related to additional collection of F. E. D. C resulted in Idaho power requesting a substantial rate decrease for all Idaho customers.

Lisa Grow: We shared some good news with our customers this spring. The combination of the annual power cost and fixed cost adjustments, along with the filing related to additional collection of AFUDC, resulted in Idaho Power requesting a substantial rate decrease for all Idaho customers. It would be a net 8.3% decrease for residential customers. The power cost adjustment rate decrease was largely due to completing the final year of collection of the 2023 PCA. The AFUDC filing requests recovery of an additional $30 million of financing costs annually related to the investments we've made in relicensing the Health Canyon Complex.

Lisa: It would be a net eight 3% decrease for residential customers.

Lisa: The power cost adjustment rate decrease was largely due to completing the final year of collection of the 2023 P. C. A T.

Lisa: E F E D C filing request recovery of an additional $30 million of financing costs annually related to the investments we've made in re licensing the Hells Canyon complex.

Lisa Grow: The intent of this filing is to provide incremental cash collection and mitigate future rate impacts once the license is received.

Lisa: The intent of this filing is to provide incremental cash collection and mitigate future rate impact once the license is received.

Lisa Grow: We've also requested a price decrease for Oregon customers in our annual spring power cost adjustment.

We've also requested a price decrease for Oregon customers and our annual spring power cost adjustment.

Lisa: Shifting our attention to slide 10, we received good news from this year's Legislative session in Idaho with Governor Little finding the wildfire standard of Care Act.

Lisa Grow: Shifting our attention to slide 10, we received good news from this year's legislative session in Idaho with Governor Little signing the Wildfire Standards Care Act. Under this new law, Commission-approved wildfire mitigation plans will establish the standard of care and facilitate access to land for wildfire mitigation. Some additional details on the legislation are in the 10-Q. Idaho Power has had a wildfire mitigation plan, which includes PSPS, in place for several years, and we continue to actively enhance our plan as we pilot new technologies and approaches.

Lisa: Under this new Law Commission approved wildfire mitigation plans will establish the standard of care and facilitate access to land for wildfire mitigation work.

Lisa: Some additional details on the legislation or in the 10-Q, Idaho power has had a wildfire mitigation plan, which includes P. S. P. S. In place for several years and we continue to actively enhance our plan as we pilot new technologies and approaches.

Lisa Grow: I'll close with a look at hydro conditions. We had a great winter with heavy snow in the mountains. in the mountain ranges that help fuel our 17 hydroelectric projects on the Snake River and its tributaries. Our snowpack currently sits at 108% of normal, which bodes well for another year of solid reservoir storage and ability for us to generate reliable, affordable hydropower.

Lisa: I'll close with a look at hydro conditions, we had a great winter with heavy snow in the mountains.

Lisa: In the mountain ranges that help fuel our 17 hydroelectric projects on the Snake River and its tributaries. Our Snowpack currently sits at 100%, 108% of normal which bodes well for another year of solid reservoir storage, an ability for us to generate reliable affordable hydropower.

Brian Buckham: And with that, I will hand the presentation over to Brian for an overview of our financial. Hey, thanks, Lisa. Hi, everyone.

Lisa: And with that I will hand, the presentation over to Bryan for an overview of our financial results Alright.

Bryan: Alright, Thanks, Lisa Hi, everyone I'm going to start on slide 11, which has a reconciliation of first quarter results.

Brian Buckham: I'm going to start on slide 11, which has our reconciliation of first quarter results. As you can see, Idacorp's net income increased $11.4 million for the first quarter this year when compared with the first quarter last year. And to summarize the quarter, the increase was mainly driven by Idaho Power's higher retail revenues from the January 1st rate case increase, from customer growth, and from recording incremental tax credits this year under the Idaho Regulatory Mechanism. Those benefits, though, were partially offset by higher depreciation and interest expense from our infrastructure projects, and I'd expect to see those trends continue throughout the year.

Bryan: As you can see net income increased $11 4 million for the first quarter. This year when compared with the first quarter last year and to summarize the quarter. The increase was mainly driven by Idaho Power's higher retail revenues from the January 1st rate case.

Bryan: Increase from customer growth from recording incremental tax credits this year under the Idaho regulatory mechanism.

Bryan: Those benefits were partially offset by higher depreciation and interest expense from our infrastructure projects and I would expect to see those trends continue throughout the year.

Bryan: Getting into specifics and that increase in retail revenues per megawatt hour, which is net of power cost adjustment mechanism to increase operating income by $11 $3 million on a relative basis.

Brian Buckham: Getting into specifics, a net increase in retail revenues per megawatt hour, which is net of power cost adjustment mechanisms, increased operating income by $11.3 million on a relative basis. This benefit was mostly from the increase in Idaho base rates from the limited-issue rate case Idaho Power filed last year. Customer growth increased operating income by $7.3 million with no slowdown in customer growth during the past year. Usage for retail customer was relatively consistent quarter over quarter. Residential usage per customer increased because lower temperatures in the first quarter this year resulted in residential customers using more energy for heating purposes.

Bryan: This benefit was mostly from the increase in Idaho base rates from the limited issue rate case, Idaho power filed last year.

Bryan: Customer growth increased operating income by $7 3 million with no slowdown in customer growth during the past year.

Bryan: Usage for retail customer was relatively consistent quarter over quarter residential usage per customer increased because lower temperatures in the first quarter of this year resulted in residential customers using more energy for heating purposes.

Brian Buckham: But that increase was offset by a slight decrease in industrial usage per customer and the effects of customer mix changes, with some customers moving between rate classes with different rate structures. Last, on the revenue side, an increase in the deferral of revenues through the fixed cost adjustment mechanism reduced retail revenues slightly. Other O&M expenses in the first quarter of this year were $7.2 million higher. This was partially related to a roughly $3 million increase in wildfire mitigation program and related insurance expenses. They also increased $1.8 million due to a decrease in grant funding for maintenance work compared to the prior year's first quarter, and then standard labor-related costs also contributed to the increase.

Bryan: But that increase was offset by a slight decrease in industrial usage per customer and the effects of the customer mix changes with some customers moving between rate classes with different rate structures.

Bryan: Last on the revenue side, an increase in the deferral of revenue through the fixed cost adjustment mechanism reduce retail revenue slightly.

Bryan: Other O&M expenses in the first quarter of this year were $7 $2 million higher this was partially related to roughly $3 million increase in wildfire mitigation program and related to insurance expenses.

Bryan: They also increased $1 $8 million due to a decrease in grant funding for maintenance work compared to the prior year's first quarter and then standard labor related costs also contributed to the increase.

Brian Buckham: Depreciation expense increased $5.8 million for the year, which was an expected increase from our continued investment. And on a net basis, other changes in operating revenues and expenses increased operating income by $1.9 million. That resulted primarily from a decrease in IDO Power's share of net power supply expenses that weren't deferred for future recovery and rates, and that's thanks to less volatile natural gas and power market prices in the quarter. On a net basis, non-operating expense increased $2.2 million in the first quarter. Higher long-term debt balances and an increase in interest that Idaho Power is required to pay on transmission customer deposits were what contributed to the increase.

Bryan: Depreciation expense increased $5 $8 million for the year, which was unexpected increases from our continued investment.

Bryan: And on a net basis other changes in operating revenues and expenses increased operating income by $1 9 million.

Bryan: That resulted primarily from a decrease in Idaho Power's share of net power supply expenses that werent deferred for future recovery in rates.

Bryan: Thanks to less volatile natural gas and power market prices in the quarter.

Bryan: On a net basis nonoperating expense increased $2 $2 million in the first quarter higher long term debt balances and an increase in interest that Idaho power is required to pay on transmission customer deposits or what contributed to the increase.

Brian Buckham: And this was partially offset by an increase in AFUDC, because the average construction work in progress balance was higher. The decrease in income tax expense that you see was mostly the result of an increase in additional ADITC amortization. Based on current expectations of full-year financial results, Idaho Power reported $19.3 million of additional ADITC amortization under the Idaho Regulatory Settlement stipulation during the first quarter. That was compared with $12.5 million of additional ADITC amortization in the first quarter last year. And remember, we record the ADITCs rather than each quarter based on our full-year expectations of financial results.

Bryan: This was partially offset by an increase in <unk> of UDC because the average construction work in progress balance was higher.

Bryan: The decrease in income tax expense that you see was mostly the result of an increase an additional 80 ITC amortization based on current expectations. Our full year financial results, Idaho power recorded $19 3 million of additional A&D ITC amortization under the Idaho regulatory settlement stipulation during the first quarter that was compared with.

Bryan: $12 $5 million of additional ADC amortization in the first quarter last year and remember we record the itc's rapidly each quarter based on our full year expectations of financial results.

Brian Buckham: Moving to slide 12, this is really just a reminder on the CapEx forecast we shared on our year-end call. That forecast has us spending $5.6 billion on CapEx over the next five years, and that's double what we spent in the prior five years.

Bryan: Moving to slide 12. This is really just a reminder, on the Capex forecast, we shared on our year end call that forecast hasn't spending $5 $6 billion on capex over the next five years and that's double what we spent in the prior five years.

Brian Buckham: Again, the CapEx stack in the two out years isn't fully refined. That's in part because that's a ways out, and we're also still in the RFP process for additional resources, and we expect the costs of any owned resources could land largely in those years. Lisa mentioned that Idaho Power continues to have discussions with prospective new large load customers and signing additional large load customers could also result in additional CapEx at the far end of our plan to meet those incremental customers. You can now plainly see the actual CapEx materializing in our financial statements. In the 2024 Form 10-K, if you look at the cash flow...

Bryan: Again, the Capex stack and the two out years isn't fully refined that's in part because that's a ways out and we're also still on the RFP process for additional resources and we expect the cost of any on resources could land largely in those years.

Bryan: We've mentioned that Idaho power continues to have discussions with prospective new large load customers and finding additional large load customers could also result in additional capex at the far end of our plan to meet those incremental customers needs.

Bryan: You can now plainly CV actual capex materializing in our financial statements in the 2024 Form 10-K, if you look at the cash flow statement, you'll see additions to PP&E exceeded $1 billion for the first time.

Brian Buckham: You'll see additions to PP&E exceeded a billion dollars for the first time. Spending continued in the first quarter of this year, and quip on the balance sheet as of March 31st is around $1.4 billion.

Bryan: Spending continued in the first quarter of this year and cliff on the balance sheet as of March 31 is around $1 4 billion.

Brian Buckham: We've been busy executing a capital plan designed to meet Our customers have a lot of steel in the ground on their projects, and I think the photos that Lisa showed earlier were illustrative of that, so we're working in lockstep to ensure they have the energy. As we talked about on the last earnings call, building the needed infrastructure is just one step in our execution. We also need to convert it into rate base to keep the utility financially healthy and to provide returns to the debt and equity holders funding our growth.

Bryan: <unk> been busy executing our capital plan designed to meet customer needs. Our customers have a lot of steel in the ground on their projects and I think the photos that leaves you showed earlier were illustrative of that so we're working in lockstep to ensure they have the energy when they need it.

Bryan: As we've talked about on the last earnings call building <unk> infrastructure is just one step in our execution, we also need to convert than a rate base to keep the utility financially healthy and Brian provide returns to the debt and equity holders funding our growth.

Brian Buckham: We've replicated slide 13 from our 2024 year-end call, where you can see our then current 2025 to 2029 estimated rate base and growth rate. Upside to that five-year CAGR could come from things like additional RFP wins or from a change in our regulatory methodology to eliminate some of the regulatory lag we've experienced. Either way, we expect to at least double our rate base in a five-year period.

Bryan: We've replicated slide 13 from our 2020 for yearend call, where you can see our then current in 2025% to 2029 estimated range.

Bryan: Rate base and growth rate upside.

Bryan: Upside to that five year CAGR can come from things like additional RFP wins or from a change in our regulatory methodology to eliminate some of the regulatory lag we've experienced either way, we expect to at least double our rate base in a five year period.

Bryan: Another part of our execution is our financing plan I'll have to flip to slide 14 for that operating cash flow alone is insufficient obviously to finance, what we're doing given the magnitude. So it's no surprise that we will need drove capital like I've mentioned in the past.

Brian Buckham: Another part of our execution is our financing plans.

Brian Buckham: I'll have you flip to slide 14 for that. Operating cash flow alone is insufficient, obviously, to finance what we're doing given the magnitude, so it's no surprise that we'll need growth capital like I've mentioned in the past. As we go through this cycle of growth, we're focused on keeping our balance sheet strong, still targeting a 50-50 debt-equity capital ratio. At March 31st, you can see that our balance sheet is slightly debt-heavy. which resulted from the $400 million debt issuance we did during the quarter. But not shown on the equity side is around $90 million of stock issuance proceeds held at Idacorp from the November 2023 equity offering, along with over $144 million in to date forward sales under the ATM program, none of which we've drawn thus far.

Bryan: As we go through this cycle of growth, we're focused on keeping our balance sheet strong still targeting a 50 50 debt equity capital ratio at March 31, you can see that our balance sheet is slightly that heavy.

Bryan: Which resulted from the $400 million debt issuance that we did during the quarter, but not shown on the equity side is around $90 million of stock issuance proceeds held in <unk> Corp. From the November 2023 equity offering along with over $144 million and to date forward sales under the ATM program, none of which we've drawn thus far.

Brian Buckham: So the balance would be closer to our structural target with those amounts included, likely near 49 equity 51 debt. At March 31st, we also had a relatively large amount of cash on the balance sheet. The bulk of that balance is proceeds from the March debt issuance, which we'll use in the relative near term to fund our infrastructure project.

Bryan: So the balance would be closer to our structural target with those amounts included likely near 49 equity 51 debt.

Bryan: At March 31, we also had a relatively large amount of cash on the balance sheet. The bulk of that balance as proceeds from the March debt issuance, which will use in the relative near term to fund our infrastructure projects.

Bryan: Slide 15 is another one we included on the Q4 call replicated here shows the amount of external financing. We estimated we need for 2025 through 2029 based on capital already in the plan at that time, which is about $1 4 billion and equity and about $2 2 billion in debt.

Brian Buckham: Slide 15 is another one we included on the Q4 call, replicated here. It shows the amount of external financing we estimated we need for 2025-2029 based on capital already in the plan at that time. which is about $1.4 billion in equity and about $2.2 billion in debt. We believe those amounts allow us to stay at our target capital ratio and fund the projects in our plan.

Bryan: At.

Bryan: We believe those amounts allow us they had our target capital ratio and fund the projects in our plan. This is over a five year period.

Brian Buckham: This is over a five-year period, and as I've mentioned, the amounts needed in each year will not be equal, but we do have a degree of optionality to be opportunistic on the timing and nature of our debt and equity issuances. With significant revenues anticipated in the later years of our plan, we do anticipate a step down in the amount of our external capital needs further out, but we still expect incremental financing would be necessary for any additional company-owned projects resulting from the 2028 and 2029 RFPs or otherwise.

Bryan: And as I've mentioned the amounts needed in each year will not be equal, but we do have a degree of optionality to be opportunistic on the timing and nature of our debt and equity issuances with significant revenues anticipated in the later years of our plan, we do anticipate a step down in the amount of our external capital needs further out, but we still expect incremental fine.

Bryan: Dancing would be necessary for any additional company owned projects, resulting from the 2028 2029 rfps or otherwise.

Bryan: So to conclude I'm going to double down on what Lisa said, we're in execution mode and we're seeing the benefits of the thoughtful planning we've already done several factors are helping with that execution, starting the permitting of our transmission projects well over a decade ago as Wendy because the timeline to build transmission is very long.

Brian Buckham: So to conclude, I'm going to double down on what Lisa said. We're in execution mode, and we're seeing the benefits of the thoughtful planning we've already done. Several factors are helping with that, execution. Starting the permitting of our transmission projects well over a decade ago has been key, because the timeline to build transmission is very long. We're issuing annual RFPs for resources to keep up with energy and capacity needs, and ensure we get the best price and terms for our customers. We are negotiating with large load customers on thoughtful contract terms that fairly allocate costs and reduce risk.

Bryan: Issuing annual Rfps for resources to keep up with energy and capacity needs.

Bryan: Can we get the best price and terms for our customers.

Bryan: We are negotiating with large load customers on thoughtful contract terms that fairly allocate costs and reduce risks.

Brian Buckham: We're focusing on our constructive relationship with our regulators and working to ensure affordability of the service we provide to our customers. To top it off, our team of employees at Idaho Power are some of the smartest and hardest working people in the business. All of those factors help us execute in this period of unprecedented growth. With our customers already far along in their projects, the power has to be there when they flip the switch on their facilities, and we're working full speed ahead operationally and financially to ensure we meet that important commitment to our customers.

Bryan: We're focusing on our constructive relationship with our regulators and working to ensure affordability of the service, we provide to our customers and to top it off our team of employees at Idaho power or some of the smartest and hardest working people in the business.

Bryan: All of those factors helped us execute in this period of unprecedented growth.

Bryan: With our customers already far along in their projects the power has to be there when they flip the switch on their facilities and we're working full speed ahead operationally and financially to ensure we meet that important commitment to our customers. We appreciate that our shareholders and debt holders have been with us as we execute.

Brian Buckham: We appreciate that our shareholders and debt holders have been with us as we execute.

John Wonderlich: With that, I'm going to turn it over to John to step through our 2025 Guidance and Estimated Key Operating Metrics. Thanks, Brian. Moving to slide 16, you can see our 2025 full year earnings guidance and key operating metrics. Not a lot of change from our Q4 2024 conference call. This guidance assumes normal weather and normal power supply expenses for the rest of the year. We continue to expect Idacorp's diluted earnings per share this year to be in the range of $5.65 to $5.85. with the assumption that Idaho Power will use $60 to $77 million of additional investment tax credit amortization.

Bryan: With that I'm going to turn it over to John to step through our 2025 guidance an estimated key operating metrics.

John: Thanks, Brian.

John: Moving to slide 16, you can see our 2025 full year earnings guidance.

John: And key operating metrics not a lot of change from our Q4 2024 conference call.

John: This guidance assumes normal weather and normal power supply expenses for the rest of the year. We continue to expect <unk> diluted earnings per share this year to be in the range of $5 65 to $5 85.

John: With the assumption that Idaho power will use $60 million to $77 million of additional investment tax credit amortization.

John Wonderlich: That $77 million top end is what we currently have remaining in the mechanism. We have the ability to request that the Idaho PUC allow Idaho Power to add additional credits to the MEC. either from legacy credits on our balance sheet or credits from our current battery project. And we'll consider that option in the context of our broader regulatory strategy going forward. Our expectation for full year O&M expense continues to be in the range of $465 to $475 million. We still anticipate spending between $1 and $1.1 billion on CapEx in 2025. Although we have not adjusted our forecast for new tariffs as we continue to evaluate and monitor the situation.

John: That $77 million top end is what we currently have remaining in the mechanism.

John: We have the ability to request that the Idaho, PUC allow Idaho power to <unk>.

John: Add additional credits to the mechanism.

John: From legacy credits on our balance sheet or credits from our current battery projects.

John: And we will consider that option in the context of our broader regulatory strategy going forward.

John: Our expectation for full year O&M expense continues to be in the range of $465 million to $475 million.

John: We still anticipate spending between one and $1 $1 billion on Capex in 2025.

John: Although we have not adjusted our forecast for new tariffs as we continue to evaluate and monitor the situation.

John: Finally, we expect good hydro power generation in 2025, ranging from seven to eight 5 million megawatt hours for the year, we have solid carryover from the prior year and Snowpack has been favorable this year as well as noted by Lisa.

John Wonderlich: Finally, we expect good hydropower generation in 2025, ranging from 7 to 8.5 million megawatt-hours for the year. We have solid carryover from the prior year, and snowpack has been favorable this year as well, as noted by Lisa.

Operator: With that, we're happy to address any questions you might have. We are now ready to begin the question and answer session for attendees who have joined on the Q&A line. If you would like to ask a question, please do so by pressing star 1 on your phone.

John: With that we're happy to address any questions you might have.

Speaker Change: We are now ready to begin the question and answer session for attendees, who have joined on the Q&A line. If you would like to ask a question. Please do so by pressing star one on your phone. Please ensure your mute function is turned off before you ask your question, we will take as many questions as time permits on a first come.

Operator: Please ensure your mute function is turned off before you ask your question. We will take as many questions as time permits on a first-come basis. Once again, that is star 1 on your phone to ask a question now.

Speaker Change: Basis once again that is star one on your phone to ask a question now.

Speaker Change: Your first question comes from David Arcaro with Morgan Stanley. Please go ahead.

David Arcaro: Your first question comes from David Arcaro with Morgan Stanley, please go ahead. Hi, David. Hey, thanks so much for taking my question.

Speaker Change: Hi, David Hi, David Hey.

Speaker Change: Hey, Thanks, so much for taking my question.

Speaker Change: Maybe on a let's see.

Lisa Grow: Maybe on, let's see, you know, on the wildfire legislation, I was just curious, do you expect any changes to your wildfire mitigation plans on the back of that legislation or just generally any changes to programs that you would anticipate? We don't anticipate any changes in the program. We are hard at work at deploying that now.

Speaker Change: On the wildfire.

Speaker Change: Legislation I was just curious do you expect any changes to your wildfire mitigation plans on the back of that legislation or just generally any changes to programs that you would anticipate.

Speaker Change: We don't anticipate any changes in the program.

Speaker Change: We are hard at work at it.

Speaker Change: Deploying that now.

Lisa Grow: We are taking a look at the plan as it's written today and may make some modifications. But it would not necessarily be changing any of the actual activities. So more to come on that. But we feel really confident in what our plan has us doing now and we'll continue to evolve it over time.

Speaker Change: We are taking a look at our.

Speaker Change: At the plan as it's written today and May make some modifications, but it would not.

Speaker Change: Is it really be changing any of the actual activity.

Speaker Change: <unk>.

Speaker Change: More to come on that but we feel really confident in in.

Speaker Change: And what our plan has us doing now and we'll continue to evolve it over time.

Speaker Change: Got it okay. Thanks Thats helpful.

Tim Tatum: got it okay thanks that's helpful and then looking ahead to the rate case I was just wondering if you'd be able to share thoughts on what kind of mechanisms or trackers you might be contemplating filing for whether it's capital trackers or otherwise just efforts to improve earned ROEs for I'm going to have Tim Tatum answer that.

Speaker Change: And then looking ahead to the rate case. So I was just wondering if you'd be able to share thoughts on.

Speaker Change: What kind of mechanisms or trackers, you might be contemplating filing for.

Speaker Change: Whether it's capital trackers or otherwise just efforts to improve earned ROE from here.

Speaker Change: I'm going to have Tim Tatum answer that he is our VP of regulatory affairs.

Tim Tatum: He's our VP of Regulatory Affairs. Yeah, thanks for the question, David. We're right in the middle of preparing our case right now. We're considering a number of different options. I can say that we will take some action in the case. request that the commission. Help us to reduce regulatory lag going forward, or the negative effects of regulatory lag. The details on exactly what we're doing at this point are still sort of in flux. Certainly more to come in the next...

Speaker Change: Yes. Thanks for the question, David we're right in the middle of preparing our case right now we're considering a number of different options.

Speaker Change: I can say that we will we will take some action in the case to requested the commission.

Speaker Change: Uh huh.

Speaker Change: Help us to reduce regulatory lag going forward are the negative effects of regulatory lag the details on exactly what we're doing at this point are still sort of influx.

Speaker Change: Certainly more to come in the next month or so.

Speaker Change: Yes, David This is Bryan one thing I'd also point to is the health canon filing that we made on <unk> that we've talked about in terms of helping to reduce regulatory lag that's more of an earnings.

Brian Buckham: Yeah, David, this is Brian. One thing I'd also point to is the Health Canyon filing that we made on AFQDC that we've talked about, in terms of helping to reduce regulatory lag. That's more of an earnings neutral item, but it does help from a cash flow perspective. So that helps on cash lag. outside of the general. Yeah, okay, excellent.

Speaker Change: Neutral item, but it does help from a cash flow perspective, so that helps on the cash lag.

Speaker Change: Outside of the general rate case.

Speaker Change: Yeah, Okay excellent.

David Arcaro: I'll leave it there. Thanks so much. Thank you. David.

Speaker Change: I'll leave it there thanks so much.

Speaker Change: Thank you David.

Speaker Change: Your next question comes from Chris Haley Hoff with Siebert Williams Shank and company. Please go ahead.

Chris Ellinghaus: Your next question comes from Chris Ellinghaus with Siebert, Williams, Schenck & Co. Please go ahead. Hi Chris. How are you today? Hey Chris. So, Lisa, you talked about some of the business development. Obviously, you still have a lot of interest in expansion and moving into your service territory.

Speaker Change: Hi, Chris how are you today.

Chris: Alright, great.

Speaker Change: So please see you talked about some of the business development. Obviously, you still have a lot of interest in expansion and moving into your service territory.

Lisa Grow: But have you noticed anything through sort of this chaotic period, any effects on, say, you know, the agricultural community and, you know, what kind of crops they're working on, you know, given their expectations on their ability to export or, say, discretionary in-migration or tourism or any of those kinds of things? Yeah, so I think, like us, it's a little bit too early to tell. A lot of the agricultural customers, they've made the decision what they're going to plant last season. So what they might do in the next season, I think, remains to be seen. But I will say, you know, there's concerns, just given how uncertain things are.

Speaker Change: You noticed anything through this chaotic period.

Speaker Change: Any effects on se.

Speaker Change: <unk>.

Speaker Change: Agricultural community.

Speaker Change: What kind of crops there.

Speaker Change: Working on given their expectations on their ability to export or.

Speaker Change: Say discretionary and migration or tourism are any of those kinds of things.

Speaker Change: Yeah, So I think like us, it's a little bit too early to tell a lot of the agricultural customer they've made the decision what they're going to plant.

Speaker Change: Last season, so what they might do in the next season I think remains to be seen but I will say.

Speaker Change: There is concerns just given how uncertain things are but I can't really say that there has been anything very measurable at this point in time, we are still getting a lot of.

Lisa Grow: But I can't really say that there has been anything very measurable at this point in time. We are still getting a lot of interest in what is The inquiries we get, as far as tourism goes, I think that still remains to be seen how that shapes up. This is a state that people that love the outdoors come to, and we haven't seen, well, I guess we'll just have to let the season sort of play out.

Speaker Change: Interest in <unk>.

Speaker Change: What is.

Speaker Change: Okay.

Speaker Change: The inquiries we get.

Speaker Change: And as far as tourism goes I think that still remains to be seen how that shapes up.

Speaker Change: A state that people that love the outdoors come to and we haven't seen.

Speaker Change: Well I guess, we'll just have to let the season sort of play out but.

Speaker Change: <unk>.

Adam: I think Adam what would you add to what Youre seeing out there.

Adam Richins: I think, Adam, what would you add to what you're seeing out there?

Adam: Hi, Chris, Yes, I actually spoke with art irrigation customer representatives, a couple of weeks ago.

Adam Richins: Hi, Chris. Yeah, I actually spoke with our irrigation customer representatives a couple weeks ago, and from a planting perspective, they said it appeared to be a relatively normal season. I think commodity prices aren't great, and certainly at some point the tariffs could have an impact, but the boots on ground, you know, the Idaho Power employees that are out there, they did not believe it would impact this year.

Adam: And from a planning perspective, they said it appeared to be a relatively normal season, I think commodity prices aren't great.

Adam: Certainly at some point the tariffs could have an impact.

Adam: But the boots on ground, Idaho power employees that are out there. They did not believe it would impact this year.

Lisa Grow: And then I might also add in terms on the irrigation side of things, the water conditions are positive as well, so that should provide some help to the farmers. Okay, that's great.

Adam: And then I might also add in terms on the irrigation side of things the water conditions are positive as well so that should provide some.

Adam: Help to the partners.

Adam: Okay, that's great.

Adam: <unk>.

Adam: Given the filing.

Lisa Grow: Given the filing coming up on the Rigg case, can you give us any thoughts and I guess some of the mitigation efforts that you might put into the filing might give us better insights into this later, but should we sort of be thinking about this as the normal cadence of what you would expect unless there is some kind of breakthrough on trackers or some other kind of mitigating mechanism? Well, certainly, I think that's fair to say, given the amount of capital in our near-term plans. But, of course, as these customers come on and start generating revenue, you know, that may delay some of future rate cases.

Adam: Coming up on the rate case.

Speaker Change: Can you give us any thoughts and I guess some of the mitigation.

Speaker Change: Efforts that you might put into the filing might give us.

Speaker Change: Better insights into this later, but should we be thinking about.

Speaker Change: This is the normal.

Speaker Change: Normal cadence of what you would expect unless there is some kind of breakthrough on trackers or some other kind of mitigating mechanism.

Speaker Change: Well certainly I think that's fair to say given the amount of capital in our near term plans.

Speaker Change: But of course as these customers come on and start generating revenue.

Speaker Change: That may delay some of future rate cases, and then of course, if there are any sort of mechanisms that come through this rate case, yes. It certainly could change the cadence, but based on what we know we need to spend to meet our customers' needs. We will continue to be filing rate cases more frequently than we certainly.

Lisa Grow: And then, of course, if there are any sort of mechanisms that come through this rate case, yeah, it certainly could change the cadence. But based on what we know we need to spend to meet our customers' needs, we will continue to be filing rate cases more frequently than we certainly have in the past.

Speaker Change: In the past anything you would know that you have expressed some.

Lisa Grow: Anything you would add? I know they have expressed some, I don't know what word to use, dismay is maybe too strong, but have expressed some issues with their workload. So, do you have any capacity to propose anything along the lines of a multi-year mechanism? Like, as far as the PUCs go? Yeah. Yeah, you know, I think we're willing to talk with them about, you know, any sort of creative solutions. And we do know that they, like our regulatory group, you know, it is it is a lot of work to process these filings. So we'd certainly be open to anything that would help with that.

Speaker Change: I don't know what were going to use.

Speaker Change: Dismay, as maybe too strong but have expressed.

Speaker Change: Issues with the.

Speaker Change: Their workload. So do you have any capacity to propose.

Speaker Change: Anything along the lines of a multiyear mechanism.

Speaker Change: As far as the Puc's go yeah.

Speaker Change: Yes.

Speaker Change: We're willing to talk with them about any sort of creative solutions.

Speaker Change: And we do know that they like.

Speaker Change: Our regulatory group. It is it is a lot of work to process. These filings so we'd certainly be open to.

Speaker Change: Anything that would help with that but.

Lisa Grow: But, you know, I don't know what what else we would add. Yeah, it's certainly it's certainly an option that we'll consider and we want to be mindful of the There has been a significant negative impact of volume of filings that might have of our commission staff.

Tim Tatum: I don't know what else would you add Tim.

Tim Tatum: Yes, it's certainly it's certainly an option that we will consider and we want to be mindful of.

Tim Tatum: The impact of <unk>.

Tim Tatum: Volume of filings that might have on our commission staff.

Lisa Grow: At this point I don't think that that is a tool that we are looking at currently but certainly may be something going forward.

Tim Tatum: At this point.

Tim Tatum: I think that that's that's a tool that we're looking at currently but certainly may be something going forward that might work.

Tim Tatum: Okay.

Lisa Grow: In light of the success of SB 1183, that sort of one level of wildfire liability mitigation or alleviation, would you be... wanting to pursue or would be hopeful for, you know, another step at the legislature to sort of codify, you know, more direct limitations legally on what potential litigants can pursue other than just, you know, sort of this type of legislation which says, you know, we have followed the plan type of legislation.

Tim Tatum: In light of the success of SB $11 83.

Tim Tatum: Sort of one level of wildfire liability mitigation or.

Tim Tatum: Alleviation.

Speaker Change: Would you be.

Speaker Change: Wanting.

Speaker Change: To pursue or we'd be hopeful for.

Speaker Change: Another step at the legislature to sort of codify.

Speaker Change: More direct to limitations legally on.

Speaker Change: What.

Speaker Change: Sure <unk> can pursue other than just <unk>.

Speaker Change: This type of legislation, which says we have followed the plan type of legislation.

Speaker Change: Well I think it's important to remember that in Idaho, we have had tort reform.

Julia Hilton: Well, I think it's important to remember that in Idaho, we have had tort reform, so I don't know that we have anything imminent that we would be pursuing. But we, and we do feel like this has been a good step to define what a standard of care plan looks like, just so that it isn't decided after the fact. So, you know, we feel like we're in a pretty good spot.

Speaker Change: So I don't know that we have anything imminent that we would be pursuing.

Speaker Change: But we and we do feel like this is Ben.

Speaker Change: Good step to define what is standard of care.

Speaker Change: Plan looks like just so that it isn't decided after the fact.

Speaker Change: So.

Speaker Change: We feel like we're in a pretty good spot anything you would add Julien.

Julia Hilton: Anything you would add, Julien?

Julia Hilton: Hi, yes, this is Julia Hilton. I'm the company's general counsel and Idaho has really favorable damage caps for both punitive damages and non-economic damage. In wildfire litigation, what we have seen is that the non-economic damages are the ones that tend to really run away. So having those statewide damage caps on non-economic. Okay, yeah, that's what I'm getting at.

Julia: Hi, This is Julia hoping I'm, the company's general counsel and.

Speaker Change: Idaho has really favorable damage caps for both punitive damages and noneconomic damages in wildfire religious or litigation, while we have seen visit the noneconomic damages are the ones that tend to really run away. So having those statewide damage caps on noneconomic damages is very favorable in Idaho.

Julia: Okay, Yes, that's what I'm getting at.

Lisa Grow: Lastly, you know, you continue to have some pretty sizable development in your area. Have you revised at all your thinking on when you need your next dispatchable resource at all? That's absolutely taken into consideration when we do our IRP, so we're in the process of doing that right now and dispatchable resources are showing up in the portfolio for sure.

Speaker Change: Lastly.

Speaker Change: You continue to have some pretty sizable.

Speaker Change: Development in your area.

Speaker Change: Have you revised at all your thinking on when you need your next dispatch able resource at all.

Speaker Change: That's absolutely.

Speaker Change: Taken into consideration when we do our IOP. So we're in the process of doing that right now and and dispatchers.

Speaker Change: Basketball resources are showing up in the in the portfolio for sure.

Lisa Grow: Can you tell us what that time frame is at this point that they're showing up? I'm not sure what we have shared publicly yet, if it's in a place yet where we're ready to. We have shared two of the timeframes, 2029 shows a dispatchable resource in 2030 as well and then it was kind of a question of whether we might see something in the next couple years after that as well. So we'll know more as we work through the IRP process. Certainly as of right now it's showing at least 2029 and 2030 and could be more over the next couple years after that.

Speaker Change: Can you tell us what that timeframe is at this point theyre showing up.

Adam: Hi, Adam.

Speaker Change: Not sure what we have shared publicly yet if it's in a place yet where we're ready to go.

Speaker Change: Okay have shared we have shared two of the Timeframes 2029.

Speaker Change: So the dispatch full resource in 2030 as well and then it was kind of a question of whether we might see something in the next couple of years after that as well so.

Speaker Change: We'll know more as we work through the IRB process certainly as of right now, it's showing at least 2029 and 2030 and could be more over the next couple of years after that.

Operator: Okay, that helps. And, um...

Speaker Change: Okay that helps.

Speaker Change: <unk>.

Chris Ellinghaus: Are you seeing additional or incremental large load customers coming to you, you know, say over the last couple of quarters, you know, seeking interconnection, I don't want to say at a brisker pace, but, you know, are you still seeing interconnection requests, you know, continue to build in the queue? As far as interconnection requests, you know, that's a little further down in the process. We are still seeing, I would say, the same inquiries, which would then, you know, start a process that involves construction studies, etc. And I think those are on a pretty similar pace as we've seen in the past.

Speaker Change: Are you sure.

Speaker Change: Are you seeing additional.

Speaker Change: Incremental large load.

Speaker Change: Customers coming to you say over the last couple of.

Speaker Change: Quarters seeking inter connection I don't want to say.

Speaker Change: At a brisk pace, but are you still seeing interconnection requests.

Speaker Change: <unk> continued to build in the queue.

Speaker Change: As far as interconnection request that a little.

Speaker Change: Further down in the process.

Speaker Change: We're still seeing I would say the same.

Speaker Change: Inquiries and which would then.

Speaker Change: Start a process that involves construction studies et cetera, and I think that those are.

Speaker Change: Pretty similar pace as we've seen in the past.

Adam Richins: Adam, what would you say about the interconnection requests? That seems like that's at the sort of end of the large load process. I agree, it's been a steady flow of inquiries and requests from large loads. And what we're seeing in our queue, too, is a lot of generation resources showing up across our service territory to help meet that that potential low growth. So it's been, Chris, it's been pretty strong and continues to be strong. Okay, that's helpful. That's exactly what I was trying to get at. I appreciate it. Thanks for the details. Thanks, Chris.

Speaker Change: What would you say about the interconnection request it.

Speaker Change: It seems like it's sort of end of the of the large loan process.

Speaker Change: I agree it's been a steady flow of inquiries and requests from large loads and what we're seeing in our Q2 is a lot of generation resources showing up across our service territory to help meet that.

Speaker Change: That potential load growth. So it's been great. So it's been pretty strong and continues to be strong.

Speaker Change: Okay. That's helpful. That's exactly what I was trying to get at I. Appreciate it thanks for the detail.

Chris: Thanks, Chris.

Operator: Your next question comes from the line of Julien Dumoulin Smith with Jefferies. Please go ahead.

Julien Dumoulin-Smith: Your next question comes from the line of Julien Dumoulin-Smith with Jeffreys, please go ahead. Hi, Julien.

Chris: Hi, Julien.

Brian Russo: Hi, it's Brian Russo on for Julien. Hello. Oh, hi. Hey, just curious about the 28 and 29 RFPs, if there are new large load customers, would that be captured in those RFPs or would you need subsequent RFPs to meet any incremental demand above what's, you know, embedded in that 8.3% low growth rate in the IRP? Yeah, so when new loads would come into making a request to us, it would depend on what year they would start, for sure. But it's possible that if we have a number of projects that would meet a need as the need changes, we could certainly contract with those as well.

Chris: Hi, it's Brian Russo on for Julien Hello.

Julien: Oh hi.

Speaker Change: Hey, <unk>.

Speaker Change: Curious about the 'twenty eight 'twenty nine rfps.

Speaker Change: If there are new large load customers.

Speaker Change: Would that be captured in those rfps or would you need subsequent rfps to be.

Speaker Change: Any incremental demand above what's in.

Speaker Change: Better than that 2% load growth.

Speaker Change: And the IOP.

Speaker Change: Yes, so when we when new loans would come on come into the.

Speaker Change: Making a request to two one it would depend on what year they would start for sure.

Speaker Change: But it's possible that if we have a.

Speaker Change: A number of projects that would meet a need as the need changes we could certainly.

Speaker Change: Contracts with those as well.

Brian Russo: So, but if the customer needs are beyond that in time or amount, we would, we may have to, you know, do some other kind of RFP. Yeah, it's just sort of a, we have to wait and see what is real before we would make that kind of commitment.

Speaker Change: So, but if the if the.

Speaker Change: Customer needs are beyond that in time or amount.

Speaker Change: We may have to.

Speaker Change: Yes.

Speaker Change: Do some other kind of RFP.

Speaker Change: It's just sort of a.

Speaker Change: We have to wait and see what is.

Speaker Change: Real before before we would meet that kind of commitment.

Speaker Change: Okay got it.

Brian Russo: Okay, got it. And I think on the last call, you discussed that contract negotiations were ongoing with another data center. Is that still the updated status or is there anything that's transpired since then? Yet that is still ongoing. Okay, and then, um, you know, it looks like as you transmit, you know, you highlighted three transmission projects, right? You can look at your CapEx forecast, and there are some, you know, incremental investments there.

Speaker Change: I think on the last call.

Speaker Change: Can you discuss.

Speaker Change: The contract negotiations were ongoing.

Speaker Change: Another data center.

Speaker Change: Is that still.

Speaker Change: The updated status or is there anything.

Speaker Change: That's transpired since then.

Speaker Change: Yeah, that's that is still ongoing.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Okay and then.

Speaker Change: It looks like.

Speaker Change: Transmit you highlighted three transmission projects you can look at your Capex forecast and there are some.

Speaker Change: Incremental investments there.

Tim Tatum: How? should we think about the timely recovery of those types of projects. Would that be separate filings from your traditional base rate filings, or how confident are you for timely recovery of some of these larger projects? Sorry about that. We're not looking at each other. Yeah.

Speaker Change: How.

Speaker Change: Should we think about.

Speaker Change: The timely recovery of those types of projects.

Speaker Change: Would that be.

Speaker Change: The separate filings from from your traditional.

Speaker Change: Phase III filings or how.

Speaker Change: Confident argues for timely recovery of some of these kind of larger projects.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Sorry about that.

Speaker Change: And at each other.

Speaker Change: Yes so.

Brian Buckham: So I think at this point, we are looking, this is Tim Tatum from Regulatory Affairs, looking at the rate case and other potential mechanisms to help. to provide more timely cost recovery of these investments. As I mentioned earlier, those... Methods are still in the process of being developed and evaluated internally, but our efforts to reduce regulatory lag, provide more timely cost recovery, are certainly underway and we're hopeful for success. And Brian, what I would add, this is Brian, you know, we haven't shied away from one-off cases in the past, you've seen us do quite a few of them, but to the extent the in-service data of a transmission line lined up well with a, you know, a general array case or some form of tracking mechanism, that's another avenue that we have, so I'd say all options are on the table for those larger transmission projects.

Speaker Change: At this point we are looking this is Tim.

Speaker Change: Data from regulatory affairs.

Speaker Change: Looking at the rate case.

Speaker Change: Other potential mechanisms to help.

Speaker Change: To provide more timely cost recovery of these investments.

Speaker Change: As I mentioned earlier.

Speaker Change: Yes.

Speaker Change: Methods.

Speaker Change: In the process of being developed and evaluated internally, but our efforts to reduce regulatory lag provide more timely cost recovery.

Speaker Change: Certainly underway and we're hopeful for success in that area and.

Brian Russo: Brian what I would add this is Brian.

Brian Russo: Haven't shied away from one off cases in the past you've seen us do quite a few of them, but to the extent the in service date of a transmission line lined up well with.

Brian Russo: General rate case, or some form of tracking mechanism. That's another avenue that we have so I'd say all options are on the table for those larger transmission projects at this point.

Speaker Change: Okay, Great and lastly, could you just remind us how many how much capacity.

Brian Russo: Okay, great.

Operator: And lastly, could you just remind us how much capacity is in the shortlist that was acknowledged by the OPUC for the 2028 RFP? Adam, do you have that number? I don't have that exact number. I mean, it was several hundred megawatts, maybe even more than that. And just as a reminder, there was an Ido Power project on that list as well for 2028. It was a fair amount of projects. All right, great.

Speaker Change: As in the shortlist was acknowledged by the PUC.

Speaker Change: 2028.

Adam: Adam do you have that number.

Adam: I don't have that exact number I mean, it was several hundred megawatts, maybe even more than that and just as a reminder, there was Idaho power project on that list as well for 2028.

Adam: It was a fair amount of projects.

Adam: Alright, great. Thank you very much.

Anthony Crowdle: Thank you very much. Thank you.

Adam: Thank you your next question.

Anthony Crowdle: You're next. Your next question comes from the line of Anthony Crowdle with Mizzou O. Please go ahead. Hey, good afternoon, team. Sorry.

Speaker Change: Your next question comes from the line of Anthony crowd, all with Mizuho. Please go ahead.

Adam: Yeah.

Anthony Crowd: Hey, good afternoon team.

Adam: Sorry.

Lisa Grow: I think those guys asked all nine of my questions. Just, I guess, a quick follow up was just on the wildfire legislation. Just anything in the legislation you guys were hoping to get or the utilities in the state were hoping to get that were not, that was not included in what passed. Well, I feel like we We're really happy that it passed at all, to be quite honest. So I can't think of anything offhand that we wanted, that we ultimately didn't get. We knew that this is a first. step at trying to define the standard of care and that's essentially what this bill did.

Adam: I think those guys asked all my questions just I guess a quick follow up was just on the wildfire legislation.

Adam: Anything in the legislation you guys were hoping to get or the.

Adam: Utilities in the state were hoping together that were not that was not included in my past.

Adam: Well I feel like we.

Adam: We're really.

Happy that it passed at all to be quite honest so.

Adam: I can't think of anything off hand that that we wanted that debt.

Adam: Ultimately didnt get we knew that this is a first.

Adam: Stop it trying to define the.

Speaker Change: The standard of care and that's essentially what this what this bill did anything you would add Julien.

Lisa Grow: Is there anything you would add, Julia? I think that this bill does a really great job of establishing a first step and establishing that standard of care. There was an earlier. The majority of the protections that we were Do you see the company in the future looking to push for a fund? It seems that, you know, I know every state has their own issues with respect to wildfire, but it seems investors, you know, I think in another state they're trying to get a fund going, it didn't happen, or it's not moving the legislature. Is that something that's on the radar in Idaho, or you don't believe so?

Adam: Uh huh.

Julien Hello: I think that this bill does a really great job of establishing a first step in establishing the standard of care like Lisa mentioned, there was an earlier.

Adam: <unk> run at a bill that that did not go through I think that the.

Julien Hello: The bill that ultimately pass.

Julien Hello: <unk>.

Julien Hello: The majority of the protections that we were seeking to achieve so I do think that is a great result, and we were able to get different industry groups.

Julien Hello: Comfortable with it with the final version.

Julien Hello: Yeah.

Julien Hello: Do you see the company in the future looking.

Julien Hello: For a fund it seems that.

Julien Hello: I know every state has their own.

Julien Hello: Issues with respect to wildfire, but it seems investors.

Julien Hello:

Julien Hello: I think in another state, they're trying to get a fund going it didn't happen what's not moving the legislature is that something that's on the radar in Idaho.

Julien Hello: Don't believe so.

Lisa Grow: It was certainly something that we discussed. The hard part is that Idaho is very small, and so, you know, the amount of money that would be needed to create a fund would fall on a few people. So, you know, when you have the state of California that, you know, can put billions of dollars into a fund, it's not really something that Idaho could do. And then it was, well, do you look at a multi-state sort of arrangement? But then that's always the sort of, well, who pays and who gets the benefit? And so it wasn't one that really we thought was something we could do now, but it's something we could certainly think about.

Julien Hello: Certainly something that we discussed the hard part is that Idaho is very small and so the amount of <unk>.

Julien Hello: Money that would be needed to to create a fund would fall on a few people. So when you have the state of California that can put billions of dollars into a fund is not really something that.

Julien Hello: That Idaho could do and then it was well you look at a multi state.

Julien Hello: Of arrangement, but then that's always that sort of well, who pays and who gets the benefit and so it wasn't one that really.

Julien Hello: We thought was was something we could do now, but it's something we could certainly think about but it's also.

Lisa Grow: But it's also important to remember we do have insurance, and, you know, there might be other strategies like a captive insurance product or something along those lines.

Julien Hello: Important to remember we do have insurance.

Julien Hello: And.

Julien Hello: There is might be there might be other strategies like.

Julien Hello: Our captive insurance product or something along those lines.

Julien Hello: Great. That's all I had thanks for taking my questions.

Operator: Great, that's all I had. Thanks for taking my questions. Of course, thanks for calling in. Thanks for having me.

Speaker Change: <unk>, Inc for calling in thanks Anthony.

Julien Hello: Okay.

Operator: And a final opportunity, press star 1 to signal for a question, and we'll pause for just a moment. That concludes the question and answer session for today.

Speaker Change: And our final opportunity press star one to signal for a question and we'll pause for just a moment.

Speaker Change: That concludes the question and answer session for today Ms grow I will turn the conference back to you.

Lisa Grow: Ms. Grow, I will turn the conference back to you. Well, thank you again for everyone joining us today. And we really appreciate your continued interest in Idacorp.

Speaker Change: Well. Thank you again for everyone joining us today and we really appreciate your continued interest in <unk> and we hope you have a great evening. Thank you.

Lisa Grow: And we hope you have a great evening. Thank you.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Thank you.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Sure.