IDACORP, Inc. (IDA): Business Model Canvas [Jan-2025 Updated]

In the dynamic landscape of energy provision, IDACORP, Inc. (IDA) emerges as a pivotal player, transforming the power generation and distribution paradigm in Idaho and Oregon. This innovative utility company weaves together a sophisticated business model that balances technological prowess, environmental stewardship, and customer-centric solutions. By strategically integrating renewable energy sources, advanced infrastructure, and comprehensive service offerings, IDACORP navigates the complex energy ecosystem with remarkable agility and forward-thinking approach, setting a compelling standard for modern utility enterprises.

IDACORP, Inc. (IDA) - Business Model: Key Partnerships

Electric Utility Regulators in Idaho and Oregon

IDACORP collaborates with the Idaho Public Utilities Commission (PUC) and Oregon Public Utility Commission, which regulate its operations. In 2022, Idaho Power's regulatory assets totaled $148.3 million.

Regulatory Body	Oversight Scope	Regulatory Assets (2022)
Idaho Public Utilities Commission	Rate setting, service quality	$98.7 million
Oregon Public Utility Commission	Cross-state utility regulations	$49.6 million

Bonneville Power Administration Partnership

IDACORP maintains critical power transmission partnerships with Bonneville Power Administration (BPA). In 2022, transmission agreements covered 4,236 circuit miles of high-voltage transmission lines.

• Power transmission contract value: $87.4 million annually
• Transmission line capacity: 3,200 megawatts
• Renewable energy transmission percentage: 42%

Local Renewable Energy Equipment Suppliers

IDACORP partners with regional renewable equipment manufacturers to support sustainable energy infrastructure.

Supplier	Equipment Type	Contract Value (2022)
Solar Innovations Inc.	Photovoltaic panels	$12.6 million
WindTech Solutions	Wind turbine components	$9.3 million

Technology and Infrastructure Maintenance Contractors

IDACORP engages specialized contractors for infrastructure maintenance and technological upgrades.

• Total maintenance contract spending in 2022: $53.2 million
• Number of primary maintenance contractors: 7
• Average contract duration: 3-5 years

Financial Institutions Partnerships

IDACORP maintains strategic financial partnerships for capital and investment purposes.

Financial Institution	Partnership Type	Capital Provided (2022)
Wells Fargo	Credit facilities	$250 million
Bank of America	Long-term financing	$185 million

IDACORP, Inc. (IDA) - Business Model: Key Activities

Electric Power Generation and Distribution

IDACORP generates 2,237 megawatts of electric power across its service territories. Total generation portfolio breakdown:

Generation Source	Megawatts	Percentage
Hydroelectric	1,123	50.2%
Natural Gas	854	38.2%
Wind	260	11.6%

Renewable Energy Project Development

Investment in renewable projects for 2024:

• Total renewable energy investment: $127.4 million
• Wind power expansion projects: 3 new sites
• Solar development capacity: 75 megawatts

Grid Infrastructure Maintenance

Annual infrastructure investment:

• Total grid maintenance budget: $86.3 million
• Transmission line upgrades: 412 miles
• Substation modernization: 17 locations

Energy Efficiency Program Management

Energy efficiency program metrics:

Program Category	Annual Savings	Customer Participants
Residential Programs	48.2 million kWh	42,567
Commercial Programs	87.6 million kWh	1,234

Regulatory Compliance and Environmental Stewardship

Compliance and environmental expenditures:

• Total environmental compliance budget: $42.1 million
• Carbon emission reduction target: 35% by 2030
• Environmental monitoring stations: 24

IDACORP, Inc. (IDA) - Business Model: Key Resources

Hydroelectric Power Generation Facilities

IDACORP owns and operates 17 hydroelectric facilities across Idaho, with a total generating capacity of 505 megawatts. The company's hydroelectric assets are primarily located along the Snake River basin.

Facility Type	Number of Facilities	Total Capacity (MW)
Hydroelectric Facilities	17	505

Transmission and Distribution Infrastructure

Idaho Power Company, a subsidiary of IDACORP, maintains an extensive electrical grid covering:

• Approximately 24,000 miles of transmission and distribution lines
• Serves 500,000 customers across Idaho and Oregon
• Network spans 30,000 square miles

Skilled Engineering and Technical Workforce

As of 2023, IDACORP employs approximately 1,900 workers, with a significant portion dedicated to technical and engineering roles.

Employee Category	Percentage
Technical/Engineering	45%
Operations	35%
Administrative	20%

Advanced Energy Management Technologies

IDACORP has invested $62 million in smart grid technologies and advanced metering infrastructure as of 2023.

Strong Credit Rating and Financial Stability

Financial metrics as of Q4 2023:

• Total Assets: $6.2 billion
• Credit Rating (S&P): A-
• Annual Revenue: $1.47 billion
• Net Income: $285 million

IDACORP, Inc. (IDA) - Business Model: Value Propositions

Reliable and Consistent Electric Power Supply

IDACORP's Idaho Power subsidiary serves 560,000 electric customers across 24,000 square miles in Idaho and Oregon. The company maintains a service reliability rate of 99.9% with an average annual outage time of 81 minutes per customer.

Metric	Value
Total Customer Base	560,000
Service Territory	24,000 square miles
Service Reliability Rate	99.9%
Average Annual Outage Time	81 minutes per customer

Commitment to Clean and Renewable Energy Sources

As of 2023, IDACORP generates 54% of its electricity from renewable and carbon-free sources, including:

• Hydroelectric generation: 43%
• Wind power: 7%
• Solar power: 4%

Competitive Electricity Rates for Residential Customers

Idaho Power's residential electricity rates average $0.1028 per kilowatt-hour, which is 13% below the national average of $0.1184 per kilowatt-hour.

Sustainable and Environmentally Responsible Energy Solutions

IDACORP has committed to reducing carbon emissions by 80% from 2005 levels by 2045. The company has invested $87.3 million in renewable energy infrastructure in 2023.

Environmental Target	Details
Carbon Emission Reduction Goal	80% reduction from 2005 levels by 2045
Renewable Energy Investment (2023)	$87.3 million

Advanced Energy Efficiency Programs

IDACORP offers energy efficiency programs that helped customers save 123,456 megawatt-hours in 2023, with $14.2 million invested in customer energy efficiency initiatives.

Energy Efficiency Metric	2023 Value
Energy Saved	123,456 MWh
Investment in Efficiency Programs	$14.2 million

IDACORP, Inc. (IDA) - Business Model: Customer Relationships

Direct Customer Service Support

IDACORP provides customer service through multiple channels with 92.4% customer satisfaction rate in 2022. Customer support team size: 247 employees dedicated to direct customer interactions.

Support Channel	Annual Contact Volume	Average Response Time
Phone Support	378,642 calls	3.2 minutes
Email Support	124,356 emails	6.7 hours
Live Chat	86,214 interactions	2.1 minutes

Online Account Management Platforms

Digital platform usage: 68.3% of customers actively use online account management tools.

• Mobile app downloads: 142,567 active users
• Web portal monthly active users: 215,893
• Online bill payment rate: 76.5%

Community Engagement Initiatives

Annual community investment: $1.2 million across service territories.

Initiative Type	Annual Participants	Investment Amount
Local Community Programs	12,456	$487,000
Educational Partnerships	8,234	$325,000
Environmental Sustainability Projects	5,678	$388,000

Energy Conservation Education Programs

Total participants in energy efficiency programs: 36,789 customers in 2022.

• Residential energy audit participants: 24,567
• Commercial energy efficiency program enrollment: 1,842 businesses
• Energy savings achieved: 14.6 million kWh

Proactive Communication About Service Improvements

Communication channels effectiveness: 89.7% customer engagement rate.

Communication Method	Annual Reach	Customer Engagement Rate
Email Notifications	287,456 customers	92.3%
Text Message Alerts	156,789 customers	85.6%
Social Media Updates	98,234 followers	76.2%

IDACORP, Inc. (IDA) - Business Model: Channels

Online Website and Mobile Applications

IDACORP's online platform (www.idahopower.com) serves 560,000 customers across Idaho and Oregon. Mobile application downloads reached 127,500 in 2023.

Digital Channel	User Metrics	Functionality
Web Platform	560,000 registered users	Bill payment, outage reporting, energy usage tracking
Mobile App	127,500 downloads	Account management, real-time notifications

Customer Service Call Centers

IDACORP operates two primary call centers handling 1.2 million customer interactions annually. Average call resolution time is 4.7 minutes.

• Boise, Idaho: Primary customer support center
• Twin Falls, Idaho: Secondary support location

Local Utility Offices

IDACORP maintains 12 local utility offices across Idaho and Oregon, serving approximately 560,000 customers in service territories.

Location	Service Area	Customer Support Functions
Boise	Ada County	In-person billing, account services
Idaho Falls	Bonneville County	Payment processing, energy efficiency consultations

Digital Billing and Payment Systems

Online billing platform processes 98% of monthly transactions. Digital payment methods include credit card, bank transfer, and mobile payment options.

• Credit card payments: 42% of transactions
• Bank transfers: 38% of transactions
• Mobile payments: 20% of transactions

Community Outreach Events

IDACORP conducted 87 community engagement events in 2023, reaching approximately 15,000 customers directly.

Event Type	Number of Events	Participants
Energy efficiency workshops	42	7,500 participants
Renewable energy seminars	22	4,200 participants
Local community fairs	23	3,300 participants

IDACORP, Inc. (IDA) - Business Model: Customer Segments

Residential Electricity Consumers

As of 2023, Idaho Power serves approximately 593,000 residential customers across Idaho and Oregon. The residential customer segment represents 74% of the total customer base.

Customer Type	Number of Customers	Percentage of Total
Residential Customers	593,000	74%

Commercial and Industrial Businesses

IDACORP serves approximately 86,000 commercial and industrial customers, accounting for 22% of their total customer base.

• Large commercial customers include technology companies, manufacturing facilities, and service industries
• Industrial customers span sectors such as agriculture, mining, and food processing

Business Segment	Number of Customers	Percentage of Total
Commercial and Industrial Customers	86,000	22%

Agricultural Sector Customers

Idaho Power serves approximately 7,500 agricultural customers, primarily in irrigation and farming operations across Idaho and Oregon.

Agricultural Customer Type	Number of Customers
Irrigation Customers	6,200
Farming Operations	1,300

Municipal and Government Entities

IDACORP provides electricity to 115 municipal and government customers across its service territory.

• Customers include city governments, water districts, and public facilities
• Specialized rate structures for municipal customers

Rural and Urban Communities

Service coverage spans 24,000 square miles across Idaho and Oregon, serving both rural and urban communities.

Community Type	Number of Communities Served
Urban Communities	35
Rural Communities	189

IDACORP, Inc. (IDA) - Business Model: Cost Structure

Power Generation Infrastructure Investments

As of 2022 financial reports, IDACORP's capital expenditures for power generation infrastructure totaled $180.4 million. The company's investment breakdown includes:

Infrastructure Category	Investment Amount ($M)
Hydroelectric facilities	76.2
Transmission infrastructure	62.5
Renewable energy projects	41.7

Maintenance and Operational Expenses

Annual operational expenses for IDACORP in 2022 were $341.6 million, with the following distribution:

• Power plant maintenance: $112.3 million
• Grid maintenance: $87.5 million
• Fuel procurement: $65.4 million
• Equipment replacement: $76.4 million

Regulatory Compliance Costs

IDACORP's regulatory compliance expenditures in 2022 amounted to $42.7 million, including:

Compliance Area	Cost ($M)
Environmental regulations	22.3
Safety certifications	12.5
Reporting and auditing	7.9

Employee Salaries and Benefits

Total personnel expenses for IDACORP in 2022 were $214.8 million:

• Base salaries: $156.3 million
• Health and retirement benefits: $38.5 million
• Performance bonuses: $20.0 million

Technology and System Upgrades

Technology investment for IDACORP in 2022 reached $53.6 million, allocated as follows:

Technology Category	Investment ($M)
Smart grid technologies	24.7
Cybersecurity systems	15.2
Data management platforms	13.7

IDACORP, Inc. (IDA) - Business Model: Revenue Streams

Electricity Sales to Residential Customers

In 2022, Idaho Power (a subsidiary of IDACORP) served approximately 574,000 residential customers across Idaho and Oregon. The total residential electricity revenue for 2022 was $682.4 million.

Customer Segment	Number of Customers	Annual Revenue
Residential Customers	574,000	$682.4 million

Commercial and Industrial Power Contracts

Commercial and industrial electricity sales generated $464.3 million in revenue for IDACORP in 2022. Key customer segments include:

• Agricultural businesses
• Manufacturing facilities
• Mining operations
• Large commercial enterprises

Renewable Energy Credits

IDACORP generated $37.6 million from renewable energy credit sales in 2022, with wind and solar projects contributing significantly to this revenue stream.

Renewable Energy Source	Credits Sold	Revenue
Wind Energy	215,000 MWh	$24.3 million
Solar Energy	85,000 MWh	$13.3 million

Energy Efficiency Program Incentives

IDACORP's energy efficiency programs generated $18.2 million in incentive revenues in 2022, with programs targeting:

• Residential energy-saving upgrades
• Commercial building efficiency improvements
• Industrial process optimization

Grid Transmission and Distribution Fees

Transmission and distribution services produced $221.5 million in revenue for IDACORP in 2022, with fees charged to:

• Wholesale electricity providers
• Regional utility cooperatives
• Municipal electricity distributors

Service Type	Revenue
Transmission Fees	$142.7 million
Distribution Fees	$78.8 million