IDACORP INC 8-K

What Happened
IDACORP reported that the Idaho Public Utilities Commission (IPUC) issued an order on December 30, 2025 approving a settlement stipulation in Idaho Power’s general rate case (filed May 30, 2025; motion filed Oct. 24, 2025). Under the approved settlement, Idaho Power will implement revised tariffs effective January 1, 2026 that increase Idaho-jurisdictional retail revenue by approximately $110.0 million (about 7.48%), which includes a power cost adjustment (PCA) increase of $13.1 million. The settlement establishes a 9.6% allowed return on equity and an authorized overall rate of return of 7.410% applied to an Idaho-jurisdictional rate base of roughly $4.9 billion (based on 2025 monthly averages). The IPUC order also addresses NPSE, ADITC treatment, wildfire-cost deferrals, and recovery of certain capital expenditures; it does not preclude Idaho Power from filing another rate case.

Key Details

• Approx. $110.0 million increase in annual Idaho retail revenue (7.48%), effective Jan 1, 2026; includes $13.1M PCA increase.
• Authorized ROE 9.6% and overall authorized return 7.410% on an Idaho rate base of ~ $4.9 billion.
• Base net power supply expense (NPSE) set at ~$468.8 million (a $16.1M decrease from current base).
• ADITC changes: include additional investment tax credits through 2028, $55M annual cap on accelerated ADITC amortization (2026+), retain 9.12% minimum Idaho ROE for ADITC amortization and 9.6% ROE threshold for revenue sharing; revenue sharing to be implemented via the PCA.
• Continued deferral of certain wildfire mitigation costs (incremental vegetation management and insurance) measured from 2024 through the earlier of the next rate case or 2027.
• IPUC Staff completed prudence review of projects placed in service through July 2025; prudence for investments after July 2025 will be reviewed in the next Idaho general rate case. The settlement does not include a tracking mechanism for incremental depreciation and interest expense requested in the original filing.

Why It Matters
This approved settlement increases Idaho Power’s regulated retail revenue and formally sets the allowed return parameters and rate base used to calculate rates, providing near-term regulatory certainty for Idaho-jurisdiction results beginning Jan. 1, 2026. For investors, the change affects Idaho-jurisdictional revenue, cash flows and the regulatory framework for tax-credit amortization and revenue sharing, which can influence future reported earnings and rate filings. The order also preserves the utility’s ability to seek future rate changes and leaves post-July 2025 prudence reviews for a subsequent case, so additional regulatory actions could affect future results.