Idacorp Lifts 2026 Earnings Guidance After Third-Quarter Profit Jump

The Tip Desk · October 30, 2026 · 4 min read

Net income attributable to the utility holding company reached $160.2 million, or $2.73 a share, as Idaho Power posted $32.9 million more operating income than a year earlier.

IDACORP, Inc. (IDA) reported third-quarter 2026 net income attributable to the company of $160.2 million, or $2.73 a share, compared with $124.4 million, or $2.26 a share, a year earlier. The $35.8 million increase was driven primarily by higher net income at Idaho Power, the regulated electric utility that forms the core of the Boise, Idaho-based holding company.

The year-over-year profit increase accelerated from $6.8 million in the second quarter of 2026. Sequential net income also rose from $102.6 million, or $1.79 a share, in the three months ended June 30.

The largest operating-income contribution versus the year-ago quarter was retail revenues per megawatt-hour, excluding large contract customers and net of power cost adjustment mechanisms, which added $38.1 million. The company said the benefit was due primarily to an overall increase in Idaho base rates effective January 1, 2026, from the outcome of the settlement stipulation for Idaho Power’s 2025 Idaho general rate case.

Customer growth excluding large contract customers, net of associated power supply costs and power cost adjustment mechanisms, increased operating income by $5.8 million as the number of Idaho Power customers grew by approximately 15,000, or 2.2 percent, during the twelve months ended September 30, 2026. Usage per retail customer excluding large contract customers was relatively consistent: a 1 percent increase in usage per residential customer and a 3 percent increase in usage per irrigation customer were mostly offset by a decrease in usage per industrial customer. An increase in the deferral of residential and small commercial customer revenues through the Idaho fixed cost adjustment mechanism reduced retail revenues by $3.7 million.

Retail revenues from large contract customers, net of associated power supply costs and the Idaho power cost adjustment mechanism, increased operating income by $11.8 million. The company said the benefit was primarily due to the commencement of Idaho Power earning revenue under a large customer contract on June 1, 2026, the overall increase in Idaho base rates, and an increase in usage per large contract customer.

Other operations and maintenance expenses increased $22.5 million, primarily due to amortization of previously deferred costs associated with converting generating units at the Jim Bridger and North Valmy plants from coal to natural gas and higher wildfire mitigation costs, including amortization of previously deferred wildfire mitigation program expenses. The company said those increases were substantially offset by corresponding revenues recognized through regulatory recovery mechanisms, including the 2025 Settlement Stipulation and approved Idaho and Oregon customer rates. Depreciation and amortization expense increased $7.4 million, due primarily to an increase in plant-in-service. Other changes in operating revenues and expenses, net, increased operating income by $10.6 million, due primarily to a decrease in net power supply expenses that were not accrued for future refund through power cost adjustment mechanisms and lower property tax expense from Idaho legislative changes.

Idaho Power operating income increased $32.9 million. Non-operating expense, net, increased $1.1 million as higher long-term debt raised interest expense and lower interest-bearing cash reduced interest income, mostly offset by higher allowance for funds used during construction income on a higher average construction work in progress balance. Based on Idaho Power’s current expectations of full-year 2026 financial results, Idaho Power recorded no additional accumulated deferred investment tax credits amortization in the third quarter of 2026, compared with $2.5 million in the third quarter of 2025.

IDACORP is increasing its previously reported full-year 2026 earnings guidance to the range of $6.40 to $6.50 per diluted share, from $6.30 to $6.45, with the expectation that Idaho Power will use less than $10 million of additional tax credits available under the Idaho regulatory mechanism in 2026, versus a prior expectation of less than $15 million. The guidance assumes normal weather conditions through the end of the year. Idaho Power O&M expense guidance was raised to $535 million to $545 million from $525 million to $535 million. Capital expenditures excluding AFUDC were unchanged at $1,300 million to $1,500 million. Hydropower generation guidance was narrowed to 5.5 to 6.0 million megawatt-hours from 5.5 to 6.5 million megawatt-hours.

President and Chief Executive Officer Lisa Grow said strong third-quarter results were driven by continued customer growth and additional revenues from current base rates and from large contract customers as they continue to ramp up operations. She added that the year has included installation of battery storage projects and significant progress on development and construction of transmission and generation projects. The 250 MW battery energy storage projects were placed in-service in June 2026. In March 2026, Idaho Power received approval for a certificate of public convenience and necessity for the Bennett expansion from the Idaho Public Utilities Commission and submitted applications for South Hills and Peregrine.