IDACORP, Inc. (IDA): History, Ownership, Mission, How It Works & Makes Money

Ever wonder how IDACORP, Inc. (IDA), a utility holding company serving over 633,000 customers and reporting Q1 2024 net income attributable to IDACORP of $58.5 million, maintains its significant position in the energy sector?

As the parent of Idaho Power, its primary regulated electric utility subsidiary, IDACORP is a key energy provider in the Intermountain West, marked by consistent customer growth, which stood at 2.0% year-over-year in early 2024, and ongoing investments in generation and transmission infrastructure.

But what specific strategies underpin its financial performance, and how has its operational approach evolved over time?

Delving deeper reveals the core mechanics of its business model, its historical journey, and the ownership structure that guides its path forward—are you ready to explore the foundations of this influential utility?

IDACORP, Inc. (IDA) History

Understanding the journey of IDACORP requires looking back at the formation of its primary subsidiary, Idaho Power Company. This history laid the groundwork for the entity operating through 2024.

IDACORP, Inc.'s Founding Timeline

Year established

Idaho Power Company, the core operating entity, was established in 1916. IDACORP, Inc., the holding company, was formed much later, in 1998, to provide strategic oversight and structure.

Original location

The roots trace back to Boise, Idaho, which remains the headquarters for both Idaho Power and IDACORP, Inc. as of 2024.

Founding team members

Idaho Power was created through the consolidation of several smaller electric companies operating in southern Idaho and eastern Oregon. This was typical of the era, often orchestrated by larger holding companies or financial interests seeking to create efficiencies of scale, rather than by individual entrepreneurs in the modern sense.

Initial capital/funding

Funding for the 1916 consolidation involved the exchange of securities and the assumption of assets and liabilities from the merged entities. Precise initial capitalization figures from that period are complex, but the structure relied on leveraging the combined asset base of the predecessor companies.

IDACORP, Inc.'s Evolution Milestones

IDACORP, Inc.'s Transformative Moments

The 1916 Consolidation

Merging smaller, often struggling, electric companies into Idaho Power created a stable, integrated utility capable of supporting regional economic development. This foundational step was crucial.

Hells Canyon Hydroelectric Development

The multi-decade project to build the Brownlee, Oxbow, and Hells Canyon dams represented a monumental capital investment and engineering feat. It secured a vast source of low-cost, renewable energy, fundamentally defining Idaho Power's resource mix and competitive advantage for generations.

Formation of the IDACORP Holding Company in 1998

This structural change provided a platform for strategic alignment and financial management, formally separating the regulated utility business from other activities. While attempts at diversification occurred, the structure affirmed the primacy of the regulated utility core, a focus maintained through 2024.

IDACORP, Inc. (IDA) Ownership Structure

IDACORP, Inc. operates as a holding company, with its ownership primarily concentrated among institutional investors reflecting confidence in its stable utility business model. This structure influences corporate governance and strategic decisions.

IDACORP, Inc.'s Current Status

As of the end of 2024, IDACORP, Inc. is a publicly traded company listed on the New York Stock Exchange under the ticker symbol IDA. Its status as a public entity requires adherence to stringent regulatory and reporting standards, providing transparency to investors and the market.

IDACORP, Inc.'s Ownership Breakdown

The following table details the approximate ownership distribution of IDACORP, Inc. common stock based on available data towards the end of the 2024 fiscal year. Understanding this breakdown is crucial when Breaking Down IDACORP, Inc. (IDA) Financial Health: Key Insights for Investors.

IDACORP, Inc.'s Leadership

The strategic direction and day-to-day operations of IDACORP, Inc. are guided by its executive leadership team and Board of Directors as of late 2024. Key figures include:

• Lisa A. Grow - President and Chief Executive Officer, IDACORP & Idaho Power
• Brian R. Buckham - Senior Vice President and Chief Financial Officer, IDACORP & Idaho Power
• Steven R. Keen - Senior Vice President, General Counsel and Corporate Secretary, IDACORP & Idaho Power

This team is responsible for navigating the complexities of the energy sector, ensuring regulatory compliance, and driving shareholder value.

IDACORP, Inc. (IDA) Mission and Values

IDACORP, through its primary subsidiary Idaho Power, anchors its operations and strategic direction in a clearly defined mission and a set of core values. These principles guide the company's commitment to its customers, community, and the environment, shaping its identity beyond pure financial metrics.

IDACORP's Core Purpose

The company's purpose is articulated through its formal statements and guiding principles.

Official mission statement

To provide reliable, responsible, fair-priced energy services.

Vision statement

To be the energy company our customers and communities count on, today and tomorrow.

Company values

Guiding the company's culture and decision-making are several core values:

• Safety
• Integrity
• Respect
• Responsibility
• Teamwork

Living these values daily aims to build trust and ensure sustainable operations. Understanding this framework is crucial, just as it is vital to analyze the company's operational results; you can explore insights here: Breaking Down IDACORP, Inc. (IDA) Financial Health: Key Insights for Investors. The commitment to responsibility extends to environmental stewardship and community engagement, reflecting a long-term perspective inherent in its vision.

IDACORP, Inc. (IDA) How It Works

IDACORP, Inc. operates primarily through its main subsidiary, Idaho Power Company, an electric utility generating, transmitting, distributing, selling, and purchasing electric energy. The company serves a vast territory covering southern Idaho and parts of eastern Oregon, focusing on providing reliable and affordable electricity to its customers.

IDACORP's Product/Service Portfolio

IDACORP's Operational Framework

IDACORP's core operational activities revolve around Idaho Power's vertically integrated electric utility functions. This starts with power generation from a diverse mix including significant hydroelectric resources (approximately 1,700 MW capacity), natural gas, and purchased power agreements for wind, solar, and geothermal energy; the company continues efforts to exit coal generation. Power is then transmitted across high-voltage lines spanning thousands of miles to substations. Finally, electricity is distributed through a lower-voltage network directly to approximately 635,000 customers as of Q3 2024. Key processes include meticulous grid maintenance, system upgrades to enhance reliability and accommodate growth, managing water resources for hydro generation, ensuring compliance with extensive state and federal regulations, and handling customer billing and service requests. Significant capital investment, projected between $800 million and $850 million for 2024, supports infrastructure maintenance, modernization, and expansion.

IDACORP's Strategic Advantages

IDACORP enjoys several key strategic advantages that underpin its operational success and financial stability.

• Regulated Monopoly: Idaho Power operates as a regulated monopoly within its extensive service territory, providing a stable customer base and predictable revenue streams under oversight from the Idaho and Oregon Public Utilities Commissions.
• Hydroelectric Assets: The company possesses a substantial and valuable portfolio of low-cost hydroelectric generation facilities, offering a competitive advantage in power production costs and providing a significant source of carbon-free energy.
• Operational Efficiency: A consistent focus on efficient operations and system reliability helps manage costs and maintain high levels of customer satisfaction.
• Constructive Regulatory Environment: Historically, IDACORP has experienced a reasonably constructive regulatory relationship, allowing for necessary investments and cost recovery critical for maintaining infrastructure and earning allowed returns. Understanding who invests reflects confidence in this stability; Exploring IDACORP, Inc. (IDA) Investor Profile: Who’s Buying and Why?
• Service Territory Growth: The company benefits from operating in a region experiencing consistent population and economic growth, driving increasing demand for electricity.

IDACORP, Inc. (IDA) How It Makes Money

IDACORP primarily generates revenue through its principal subsidiary, Idaho Power, a regulated electric utility. It earns money by selling electricity to residential, commercial, industrial, and irrigation customers across its service territory in southern Idaho and eastern Oregon.

IDACORP, Inc.'s Revenue Breakdown

The overwhelming majority of the company's revenue comes from its regulated electric utility operations. Based on data leading into late 2024, the breakdown is highly concentrated.

IDACORP, Inc.'s Business Economics

The company operates largely as a regulated monopoly, meaning its prices (rates) are set by state public utility commissions (Idaho and Oregon). This model provides relatively predictable revenue streams but also caps potential profitability based on an allowed rate of return on equity (ROE). Key economic drivers include:

• Customer growth within its service area, driven by regional economic development.
• Weather patterns significantly impacting hydroelectric generation (a major, low-cost power source) and customer demand.
• Capital expenditures on generation, transmission, and distribution infrastructure, which form the rate base upon which returns are calculated.
• Costs for fuel and purchased power, which can fluctuate but are often passed through to customers via specific mechanisms approved by regulators.
• Regulatory decisions on rate cases and cost recovery filings.

Understanding these dynamics is crucial for evaluating the company's financial stability and growth prospects. Investors often track regulatory filings and economic conditions in the service territory closely. For more on who invests in companies like this, check out Exploring IDACORP, Inc. (IDA) Investor Profile: Who’s Buying and Why?

IDACORP, Inc.'s Financial Performance

As of late 2024 (based on trailing twelve months data ending Q3 2024), the company demonstrated consistent financial performance characteristic of a stable utility. Key metrics included total operating revenues around $1.82 billion. Net income attributable to IDACORP shareholders was approximately $265 million. This translates to diluted earnings per share (EPS) in the range of $5.20 to $5.30, reflecting steady profitability derived from its core utility business. The company maintains a solid balance sheet, essential for funding significant capital investments required in the utility sector.

IDACORP, Inc. (IDA) Market Position & Future Outlook

IDACORP, primarily through its subsidiary Idaho Power, holds a dominant position as a regulated electric utility in its service territory, benefiting from significant low-cost hydroelectric generation. The company's outlook hinges on managing capital investments for grid modernization and renewable integration while navigating regulatory processes and environmental factors like water availability and wildfire risk.

Competitive Landscape

As a regulated utility, Idaho Power operates largely as a monopoly within its designated service area in southern Idaho and eastern Oregon. Direct competition is limited, but comparison with regional utilities provides context.

Note: Market share within IDA's specific, regulated service territory is effectively 100%. The table reflects relative scale in the broader region.

Opportunities & Challenges

Industry Position

IDACORP stands as a well-regarded, mid-sized US utility holding company, distinguished by its significant hydroelectric resources, which contributed substantially to keeping customer rates relatively low in 2024. Its strategic focus through 2025 involves substantial capital expenditure, targeting grid modernization, integrating renewables to meet clean energy goals, and maintaining system reliability amidst regional growth. Adherence to its core principles guides these efforts; you can explore the Mission Statement, Vision, & Core Values of IDACORP, Inc. (IDA). The company's success relies heavily on constructive regulatory relationships in Idaho and Oregon and effective management of environmental variables unique to its operating region.

• Key 2025 initiatives include advancing large transmission projects and filing updated resource plans.
• Focus remains on balancing affordability with necessary system investments.
• The company benefits from operating in a region with strong projected economic and population growth.