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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended

~~September 30, 2020~~March 31, 2021

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Exact name of registrants as specified

I.R.S. Employer

Commission File

in their charters, address of principal

Identification

Number

executive offices, zip code and telephone number

Number

1-14465

IDACORP, Inc.

82-0505802

1-3198

Idaho Power Company

82-0130980


1221 W. Idaho Street
Boise,		Idaho		83702-5627
	(208)		388-2200

State of Incorporation:

Idaho

None

Former name, former address and former fiscal year, if changed since last report.

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	IDA	New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

IDACORP, Inc.: Yes X No __ Idaho Power Company: Yes X No __

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrants were required to submit such files).

IDACORP, Inc.: Yes X No __ Idaho Power Company: Yes X No __

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies, or emerging growth companies. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

IDACORP, Inc.:

Large accelerated filer X Accelerated filer __ Non-accelerated filer __

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. __

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Idaho Power Company:

Large accelerated filer __ Accelerated filer __ Non-accelerated Filer X

Smaller reporting company ☐

Emerging growth company ☐

Act. __

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

IDACORP, Inc.: Yes ☐ No X Idaho Power Company: Yes ☐ No X

Number of shares of common stock outstanding as of ~~October~~April 23, ~~2020:~~2021:

IDACORP, Inc.: ~~50,461,885~~50,515,478

Idaho Power Company: 39,150,812, all held by IDACORP, Inc.

This combined Form 10-Q represents separate filings by IDACORP, Inc. and Idaho Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Idaho Power Company makes no representations as to the information relating to IDACORP, Inc.’s other operations.

Idaho Power Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this report on Form 10-Q with the reduced disclosure format.

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TABLE OF CONTENTS
				Page
Commonly Used Terms				4
Cautionary Note Regarding Forward-Looking Statements				5

Part I. Financial Information

	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Condensed Consolidated Statements of Income	7
			Condensed Consolidated Statements of Comprehensive Income	8
			Condensed Consolidated Balance Sheets	9
			Condensed Consolidated Statements of Cash Flows	11
			Condensed Consolidated Statements of Equity	12
		Idaho Power Company:
			Condensed Consolidated Statements of Income	13
			Condensed Consolidated Statements of Comprehensive Income	14
			Condensed Consolidated Balance Sheets	15
			Condensed Consolidated Statements of Cash Flows	17
		Notes to Condensed Consolidated Financial Statements		18
		Reports of Independent Registered Public Accounting Firm		3331
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			3533
	Item 3. Quantitative and Qualitative Disclosures About Market Risk			6253
	Item 4. Controls and Procedures			6354

Part II. Other Information

	Item 1. Legal Proceedings			6455
	Item 1A. Risk Factors			6455
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			6455
	Item 3. Defaults Upon Senior Securities			6555
	Item 4. Mine Safety Disclosures			6555
	Item 5. Other Information			6555
	Item 6. Exhibits			6556

Signatures				6657

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COMMONLY USED TERMS

The following select abbreviations, terms, or acronyms are commonly used or found in multiple locations in this report:

~~2019~~2020 Annual Report	-	IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020
ADITC	-	Accumulated Deferred Investment Tax Credits
AFUDC	-	Allowance for Funds Used During Construction
AOCI	-	Accumulated Other Comprehensive Income
~~ASU~~	-	~~Accounting Standards Update~~
BCC	-	Bridger Coal Company, a joint venture of IERCo
BLM	-	U.S. Bureau of Land Management

CWA	-	Clean Water Act


~~FASB~~	-	~~Financial Accounting Standards Board~~
FCA	-	Fixed Cost Adjustment
FERC	-	Federal Energy Regulatory Commission
FPA	-	Federal Power Act

HCC	-	Hells Canyon Complex
IDACORP	-	IDACORP, Inc., an Idaho corporation

Idaho Power	-	Idaho Power Company, an Idaho corporation

Idaho ROE	-	Idaho-jurisdiction return on year-end equity
Ida-West	-	Ida-West Energy, a subsidiary of IDACORP, Inc.
IERCo	-	Idaho Energy Resources Co., a subsidiary of Idaho Power Company
IFS	-	IDACORP Financial Services, a subsidiary of IDACORP, Inc.
IPUC	-	Idaho Public Utilities Commission
IRP	-	Integrated Resource Plan
Jim Bridger plant	-	Jim Bridger generating plant
MD&A	-	Management’s Discussion and Analysis of Financial Condition and Results of Operations
MW	-	Megawatt
MWh	-	Megawatt-hour
O&M	-	Operations and Maintenance
OATT	-	Open Access Transmission Tariff
OPUC	-	Public Utility Commission of Oregon
PCA	-	Idaho-Jurisdiction Power Cost Adjustment
PURPA	-	Public Utility Regulatory Policies Act of 1978

SEC	-	U.S. Securities and Exchange Commission
SMSP	-	Security Plan for Senior Management Employees


Western EIM	-	Energy imbalance market implemented in the western United States
WPSC	-	Wyoming Public Service Commission

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to the historical information contained in this report, this report contains (and oral communications made by IDACORP, Inc. (IDACORP) and Idaho Power Company (Idaho Power) may contain) statements that relate to future events and expectations, such as statements regarding projected or future financial performance, cash flows, capital expenditures, dividends, capital structure or ratios, strategic goals, challenges, objectives, and plans for future operations. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events, or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "continues," "could," "estimates," "expects," "guidance," "intends," "potential," "plans," "predicts," "projects," "may result," "may continue," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance and involve estimates, assumptions, risks, and uncertainties. Actual results, performance, or outcomes may differ materially from the results discussed in the statements. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements include those factors set forth in this report, IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, particularly Part I, Item 1A - "Risk Factors" and Part II, Item 7 - "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of that report, subsequent reports filed by IDACORP and Idaho Power with the U.S. Securities and Exchange Commission (SEC), and the following important factors:

•the effect of decisions by the Idaho and Oregon public utilities commissions and the Federal Energy Regulatory Commission that impact Idaho Power's ability to recover costs and earn a return on investment;

•changes to or the elimination of Idaho Power's regulatory cost recovery mechanisms;

•the impacts of the COVID-19 pandemic on the global and regional economy and on Idaho Power's employees, customers, contractors, and suppliers, including on loads and revenues, uncollectible accounts, transmission revenues, and other aspects of the ~~economy and the~~ companies' business;

•changes in residential, commercial, and industrial growth and demographic patterns within Idaho Power's service area, ~~the loss or change in the business of significant customers, or the addition of new customers,~~ and their associated impacts on loads and load growth, and the availability of regulatory mechanisms that allow for timely cost recovery through customer rates in the event of those changes;

•abnormal or severe weather conditions ~~including~~ (including conditions and events associated with climate ~~change,~~ change), wildfires, droughts, earthquakes, and other natural phenomena and natural disasters, which affect customer sales, hydropower generation levels, repair costs, service interruptions, liability for damage caused by utility property, and the availability and cost of fuel for generation plants or purchased power to serve customers;

•advancement of self-generation, energy storage, energy efficiency, alternative energy sources, and other technologies that may reduce Idaho Power's sale or delivery of electric power or ~~create~~introduction of operational or cyber-security vulnerabilities to the power ~~reliability challenges;~~grid;

•acts or threats of terrorist incidents, ~~other malicious acts, social unrest,~~ acts of war, social unrest, cyber-attacks, the companies' failure to secure data or to comply with privacy laws or regulations, physical security breaches, ~~and~~or the disruption or damage to the companies' business, operations, or reputation resulting from such ~~events and related litigation or penalties;~~events;

•the expense and risks associated with capital expenditures for, and the permitting and construction of, utility infrastructure that Idaho Power may be unable ~~or unwilling~~ to complete or may not be deemed prudent by regulators for cost recovery;

•variable hydrological conditions and over-appropriation of surface and groundwater in the Snake River Basin, which may impact the amount of power generated by Idaho Power's hydropower facilities;

•the ability of Idaho Power to acquire fuel, power, electrical equipment, and transmission capacity ~~under~~on reasonable terms, particularly in the event of unanticipated power demands, price volatility, lack of physical availability, transportation constraints, ~~climate change,~~disruptions or delays in the supply chain, or a credit downgrade;

•disruptions or outages of Idaho Power's generation or transmission systems or of any interconnected transmission systems, ~~may constrain resources or cause~~which can result in liability for Idaho Power, ~~to incur repair~~increase power costs, and ~~purchase replacement power or lease transmission at increased costs;~~reduce revenues;

•accidents, terrorist acts, fires (either affecting or caused by Idaho Power facilities or infrastructure), explosions, ~~and~~ mechanical breakdowns, and other unplanned events that may occur while operating and maintaining ~~Idaho Power~~ assets, which can cause unplanned ~~outages,~~outages; reduce generating output; damage company assets, operations, or reputation; subject Idaho Power to third-party claims for property damage, personal injury, or loss of life; or result in the imposition of civil, criminal, and regulatory fines and penalties for which Idaho Power may have inadequate insurance coverage;

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•the increased purchased power costs and operational challenges associated with purchasing and integrating intermittent renewable energy sources into Idaho Power's resource portfolio;

•failure to comply with state and federal laws, regulations, and orders, including new interpretations and enforcement initiatives by regulatory and oversight bodies, which may result in penalties and fines and increase the cost of compliance, and the cost of remediation;

•changes in tax laws or related regulations or new interpretations of applicable laws by federal, state, or local taxing jurisdictions, and the availability of tax credits, and the tax rates payable by IDACORP shareholders on common stock dividends;

•adoption of, changes in, and costs of compliance with laws, regulations, and policies relating to the environment, natural resources, and threatened and endangered species, and the ability to recover associated increased costs through rates;

•the inability to obtain or cost of obtaining and complying with required governmental permits and approvals, licenses, rights-of-way, and siting for transmission and generation projects and hydropower facilities;

•failure to comply with mandatory reliability and security requirements, which may result in penalties, reputational harm, and operational changes;

•the impacts of economic conditions, including inflation, interest rates, supply costs, population growth or decline in Idaho Power's service area, changes in customer demand for electricity, revenue from sales of excess power, credit quality of counterparties and suppliers, and the collection of receivables;

•the ability to obtain debt and equity financing or refinance existing debt when necessary and on favorable terms, which can be affected by factors such as credit ratings, volatility or disruptions in the financial markets, interest rate fluctuations, decisions by the Idaho or Oregon public utility commissions, and the companies' past or projected financial performance;

•changes in the method for determining LIBOR and the potential replacement of LIBOR and the impact on interest rates for IDACORP's and Idaho Power's credit facilities;

•the ability to enter into financial and physical commodity hedges with creditworthy counterparties to manage price and commodity risk for fuel, power, and transmission, and the failure of any such risk management and hedging strategies to work as intended;

•changes in actuarial assumptions, changes in interest rates, increasing health care costs, and the actual and projected return on plan assets for pension and other post-retirement plans, which can affect future pension and other postretirement plan funding obligations, costs, and liabilities and the companies' cash flows;

•the assumptions underlying the coal mine reclamation obligations at Bridger Coal Company and related funding and bonding requirements, and the remediation costs associated with planned exits from participation in Idaho Power's co-owned coal plants;

•the ability to continue to pay dividends and achieve target-payout ratios based on financial performance, and in light of credit rating considerations, contractual covenants and restrictions, and regulatory limitations;

•Idaho Power's concentration in one industry and one region and the lack of diversification, and the resulting exposure to regional economic conditions and regional legislation and regulation;

•employee workforce factors, including the operational and financial costs of unionization or the attempt to unionize all or part of the companies' workforce, the impact of an aging workforce and retirements, the cost and ability to attract and retain skilled workers and third-party vendors, and the ability to adjust the labor cost structure when necessary; and

•adoption of or changes in accounting policies and principles, changes in accounting estimates, and new SEC or New York Stock Exchange requirements, or new interpretations of existing requirements.

Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. IDACORP and Idaho Power disclaim any obligation to update publicly any forward-looking information, whether in response to new information, future events, or otherwise, except as required by applicable law.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.

Condensed Consolidated Statements of Income

(unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
		(in thousands, except per share amounts)									(in thousands, except per share amounts)
Operating Revenues:	Operating Revenues:									Operating Revenues:
Electric utility revenues	Electric utility revenues	$	424,170	$	385,028	$	1,032,324	$	1,050,574	Electric utility revenues	$	315,568	$	290,488
Other	Other	1,091		1,292		2,711		2,961		Other	486		520
Total operating revenues	Total operating revenues	425,261		386,320		1,035,035		1,053,535		Total operating revenues	316,054		291,008

Operating Expenses:	Operating Expenses:									Operating Expenses:
Electric utility:	Electric utility:									Electric utility:
Purchased power	Purchased power	104,113		93,618		227,088		214,512		Purchased power	67,988		61,201
Fuel expense	Fuel expense	59,745		46,881		121,174		119,577		Fuel expense	33,306		30,015
Power cost adjustment	Power cost adjustment	(9,533)		(16,412)		(14,460)		25,935		Power cost adjustment	5,671		(3,391)
Other operations and maintenance	Other operations and maintenance	82,782		87,151		255,734		263,064		Other operations and maintenance	85,657		89,808
Energy efficiency programs	Energy efficiency programs	10,530		8,438		31,957		30,008		Energy efficiency programs	9,027		9,475
Depreciation	Depreciation	43,243		42,601		128,683		126,006		Depreciation	43,315		42,526
Taxes other than income taxes		8,536		8,827		25,947		27,064
Total electric utility expenses		299,416		271,104		776,123		806,166
Other electric utility operating expenses										Other electric utility operating expenses	9,327		9,141
Total electric utility operating expenses										Total electric utility operating expenses	254,291		238,775
Other	Other	1,075		1,060		3,133		3,313		Other	654		663
Total operating expenses	Total operating expenses	300,491		272,164		779,256		809,479		Total operating expenses	254,945		239,438

Operating Income	Operating Income	124,770		114,156		255,779		244,056		Operating Income	61,109		51,570

Allowance for Equity Funds Used During Construction		7,369		6,803		21,791		19,857

Earnings of Unconsolidated Equity-Method Investments		3,960		4,166		8,963		9,545

Other Income, Net		716		1,825		2,692		4,999

Interest Expense:
Nonoperating (Income) Expense:										Nonoperating (Income) Expense:
Allowance for equity funds used during construction										Allowance for equity funds used during construction	(7,769)		(7,272)
Earnings of unconsolidated equity-method investments										Earnings of unconsolidated equity-method investments	(2,317)		(2,316)
Interest on long-term debt	Interest on long-term debt	21,495		20,489		63,213		62,799		Interest on long-term debt	21,036		19,662
Other interest	Other interest	3,642		3,748		11,012		10,886		Other interest	3,519		3,812
Allowance for borrowed funds used during construction	Allowance for borrowed funds used during construction	(2,969)		(2,666)		(8,585)		(7,989)		Allowance for borrowed funds used during construction	(3,005)		(2,730)
Total interest expense, net		22,168		21,571		65,640		65,696
Other income, net										Other income, net	(241)		(932)
Total nonoperating expense, net										Total nonoperating expense, net	11,223		10,224

Income Before Income Taxes	Income Before Income Taxes	114,647		105,379		223,585		212,761		Income Before Income Taxes	49,886		41,346

Income Tax Expense	Income Tax Expense	12,345		15,161		23,166		26,506		Income Tax Expense	5,086		3,888

Net Income	Net Income	102,302		90,218		200,419		186,255		Net Income	44,800		37,458
Income attributable to noncontrolling interests		(271)		(342)		(509)		(537)
Loss attributable to noncontrolling interests										Loss attributable to noncontrolling interests	31		32
Net Income Attributable to IDACORP, Inc.	Net Income Attributable to IDACORP, Inc.	$	102,031	$	89,876	$	199,910	$	185,718	Net Income Attributable to IDACORP, Inc.	$	44,831	$	37,490

Weighted Average Common Shares Outstanding - Basic	Weighted Average Common Shares Outstanding - Basic	50,541		50,499		50,534		50,502		Weighted Average Common Shares Outstanding - Basic	50,567		50,517
Weighted Average Common Shares Outstanding - Diluted	Weighted Average Common Shares Outstanding - Diluted	50,576		50,558		50,554		50,528		Weighted Average Common Shares Outstanding - Diluted	50,580		50,527
Earnings Per Share of Common Stock:	Earnings Per Share of Common Stock:									Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic	Earnings Attributable to IDACORP, Inc. - Basic	$	2.02	$	1.78	$	3.96	$	3.68	Earnings Attributable to IDACORP, Inc. - Basic	$	0.89	$	0.74
Earnings Attributable to IDACORP, Inc. - Diluted	Earnings Attributable to IDACORP, Inc. - Diluted	$	2.02	$	1.78	$	3.95	$	3.68	Earnings Attributable to IDACORP, Inc. - Diluted	$	0.89	$	0.74

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
		(in thousands)				(in thousands)					(in thousands)

Net Income	Net Income	$	102,302	$	90,218	$	200,419	$	186,255	Net Income	$	44,800	$	37,458
Other Comprehensive Income:	Other Comprehensive Income:									Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $259, $170, $777, and $508, respectively		747		488		2,241		1,464
Unfunded pension liability adjustment, net of tax of $289 and $259, respectively										Unfunded pension liability adjustment, net of tax of $289 and $259, respectively	836		747
Total Comprehensive Income	Total Comprehensive Income	103,049		90,706		202,660		187,719		Total Comprehensive Income	45,636		38,205
Income attributable to noncontrolling interests		(271)		(342)		(509)		(537)
Loss attributable to noncontrolling interests										Loss attributable to noncontrolling interests	31		32
Comprehensive Income Attributable to IDACORP, Inc.	Comprehensive Income Attributable to IDACORP, Inc.	$	102,778	$	90,364	$	202,151	$	187,182	Comprehensive Income Attributable to IDACORP, Inc.	$	45,667	$	38,237

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


		September 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
		(in thousands)					(in thousands)
Assets	Assets					Assets

Current Assets:	Current Assets:					Current Assets:
Cash and cash equivalents	Cash and cash equivalents	$	312,018	$	217,254	Cash and cash equivalents	$	240,007	$	275,116
Short-term investments	Short-term investments	25,000		0		Short-term investments	25,000		25,000
Receivables:	Receivables:					Receivables:
Customer (net of allowance of $3,924 and $1,401, respectively)		103,581		72,675
Other (net of allowance of $499 and $343, respectively)		13,568		18,789
Customer (net of allowance of $5,088 and $4,766, respectively)						Customer (net of allowance of $5,088 and $4,766, respectively)	73,360		72,826
Other (net of allowance of $561 and $497, respectively)						Other (net of allowance of $561 and $497, respectively)	20,708		12,661
Income taxes receivable	Income taxes receivable	0		3,106		Income taxes receivable	0		2,164
Accrued unbilled revenues	Accrued unbilled revenues	64,283		64,545		Accrued unbilled revenues	54,895		72,461
Materials and supplies (at average cost)	Materials and supplies (at average cost)	62,493		56,660		Materials and supplies (at average cost)	68,294		64,941
Fuel stock (at average cost)	Fuel stock (at average cost)	41,193		57,448		Fuel stock (at average cost)	29,261		31,646
Prepayments	Prepayments	17,352		17,638		Prepayments	16,580		20,184
Current regulatory assets	Current regulatory assets	42,830		56,626		Current regulatory assets	63,027		63,407
Other	Other	2,453		405		Other	2,760		1,995
Total current assets	Total current assets	684,771		565,146		Total current assets	593,892		642,401
Investments	Investments	125,612		98,218		Investments	122,862		126,948
Property, Plant and Equipment:	Property, Plant and Equipment:					Property, Plant and Equipment:
Utility plant in service	Utility plant in service	6,263,386		6,113,567		Utility plant in service	6,321,220		6,283,790
Accumulated provision for depreciation	Accumulated provision for depreciation	(2,242,049)		(2,155,783)		Accumulated provision for depreciation	(2,224,063)		(2,193,831)
Utility plant in service - net	Utility plant in service - net	4,021,337		3,957,784		Utility plant in service - net	4,097,157		4,089,959
Construction work in progress	Construction work in progress	599,557		552,499		Construction work in progress	617,265		597,152
Utility plant held for future use	Utility plant held for future use	3,697		3,872		Utility plant held for future use	4,109		4,109
Other property, net of accumulated depreciation	Other property, net of accumulated depreciation	16,930		17,299		Other property, net of accumulated depreciation	16,688		18,290
Property, plant and equipment - net	Property, plant and equipment - net	4,641,521		4,531,454		Property, plant and equipment - net	4,735,219		4,709,510
Other Assets:	Other Assets:					Other Assets:
Company-owned life insurance	Company-owned life insurance	61,326		58,922		Company-owned life insurance	63,507		62,382
Regulatory assets	Regulatory assets	1,355,181		1,326,433		Regulatory assets	1,503,256		1,495,488

Other	Other	61,748		61,028		Other	59,565		58,515
Total other assets	Total other assets	1,478,255		1,446,383		Total other assets	1,626,328		1,616,385
Total	Total	$	6,930,159	$	6,641,201	Total	$	7,078,301	$	7,095,244

The accompanying notes are an integral part of these statements.

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IDACORP, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


		September 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
		(in thousands)					(in thousands)
Liabilities and Equity	Liabilities and Equity					Liabilities and Equity

Current Liabilities:	Current Liabilities:					Current Liabilities:
Current portion of long-term debt		$	0	$	100,000

Accounts payable	Accounts payable	99,767		110,745		Accounts payable	$	81,602	$	120,576
Taxes accrued	Taxes accrued	52,910		11,501		Taxes accrued	34,501		19,508
Interest accrued	Interest accrued	19,502		20,999		Interest accrued	19,459		24,030
Accrued compensation	Accrued compensation	59,096		52,550		Accrued compensation	36,972		52,245
Current regulatory liabilities	Current regulatory liabilities	24,835		33,987		Current regulatory liabilities	27,697		11,104
Advances from customers	Advances from customers	30,270		28,452		Advances from customers	34,604		29,341
Other	Other	16,391		16,625		Other	27,037		30,767
Total current liabilities	Total current liabilities	302,771		374,859		Total current liabilities	261,872		287,571
Other Liabilities:	Other Liabilities:					Other Liabilities:
Deferred income taxes	Deferred income taxes	736,273		746,231		Deferred income taxes	794,525		800,251
Regulatory liabilities	Regulatory liabilities	771,236		748,198		Regulatory liabilities	755,542		757,730
Pension and other postretirement benefits	Pension and other postretirement benefits	499,413		519,570		Pension and other postretirement benefits	641,113		634,070
Other	Other	47,687		45,131		Other	48,917		48,752
Total other liabilities	Total other liabilities	2,054,609		2,059,130		Total other liabilities	2,240,097		2,240,803
Long-Term Debt	Long-Term Debt	2,000,358		1,736,659		Long-Term Debt	2,000,471		2,000,414
Commitments and Contingencies	Commitments and Contingencies					Commitments and Contingencies	0		0
Equity:	Equity:					Equity:
IDACORP, Inc. shareholders’ equity:	IDACORP, Inc. shareholders’ equity:					IDACORP, Inc. shareholders’ equity:
Common stock, no par value (120,000 shares authorized; 50,461 and 50,420 shares issued, respectively)		867,491		868,307
Common stock, no par value (120,000 shares authorized; 50,515 and 50,462 shares issued, respectively)						Common stock, no par value (120,000 shares authorized; 50,515 and 50,462 shares issued, respectively)	868,944		869,235
Retained earnings	Retained earnings	1,732,539		1,634,525		Retained earnings	1,742,994		1,734,103
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(34,043)		(36,284)		Accumulated other comprehensive loss	(42,522)		(43,358)
Treasury stock (0 shares and 22 shares, respectively, at cost)		0		(1,920)

Total IDACORP, Inc. shareholders’ equity	Total IDACORP, Inc. shareholders’ equity	2,565,987		2,464,628		Total IDACORP, Inc. shareholders’ equity	2,569,416		2,559,980
Noncontrolling interests	Noncontrolling interests	6,434		5,925		Noncontrolling interests	6,445		6,476
Total equity	Total equity	2,572,421		2,470,553		Total equity	2,575,861		2,566,456
Total	Total	$	6,930,159	$	6,641,201	Total	$	7,078,301	$	7,095,244

The accompanying notes are an integral part of these statements.	The accompanying notes are an integral part of these statements.					The accompanying notes are an integral part of these statements.

Table of Contents

IDACORP, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)


		Nine months ended September 30,					Three months ended March 31,
		2020		2019			2021		2020
		(in thousands)					(in thousands)
Operating Activities:	Operating Activities:					Operating Activities:
Net income	Net income	$	200,419	$	186,255	Net income	$	44,800	$	37,458
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	132,026		129,393		Depreciation and amortization	44,286		43,666
Deferred income taxes and investment tax credits	Deferred income taxes and investment tax credits	(2,963)		(7,399)		Deferred income taxes and investment tax credits	(3,390)		(1,379)
Changes in regulatory assets and liabilities	Changes in regulatory assets and liabilities	(11,616)		22,549		Changes in regulatory assets and liabilities	2,833		(9,672)
Pension and postretirement benefit plan expense	Pension and postretirement benefit plan expense	21,731		20,857		Pension and postretirement benefit plan expense	7,367		7,260
Contributions to pension and postretirement benefit plans	Contributions to pension and postretirement benefit plans	(44,138)		(46,001)		Contributions to pension and postretirement benefit plans	(918)		(12,270)
Earnings of equity-method investments	Earnings of equity-method investments	(8,963)		(9,545)		Earnings of equity-method investments	(2,317)		(2,316)
Distributions from equity-method investments	Distributions from equity-method investments	7,300		19,000		Distributions from equity-method investments	2,550		2,000
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(21,791)		(19,857)		Allowance for equity funds used during construction	(7,769)		(7,272)
Other non-cash adjustments to net income, net	Other non-cash adjustments to net income, net	7,943		5,785		Other non-cash adjustments to net income, net	3,238		3,490
Change in:	Change in:					Change in:
Accounts receivable		(31,215)		(24,798)
Receivables						Receivables	(3,451)		5,102
Accounts payable and other accrued liabilities	Accounts payable and other accrued liabilities	(19,947)		(31,645)		Accounts payable and other accrued liabilities	(42,219)		(49,389)
Taxes accrued/receivable	Taxes accrued/receivable	44,515		45,600		Taxes accrued/receivable	17,156		12,932
Other current assets	Other current assets	8,938		3,618		Other current assets	19,403		1,268
Other current liabilities	Other current liabilities	5,128		(3,941)		Other current liabilities	2,425		5,122
Other assets	Other assets	(2,768)		(3,477)		Other assets	(2,234)		(1,925)
Other liabilities	Other liabilities	(569)		621		Other liabilities	1,902		(279)
Net cash provided by operating activities	Net cash provided by operating activities	284,030		287,015		Net cash provided by operating activities	83,662		33,796
Investing Activities:	Investing Activities:					Investing Activities:
Additions to property, plant and equipment	Additions to property, plant and equipment	(213,400)		(198,871)		Additions to property, plant and equipment	(77,293)		(73,566)
Payments received from transmission project joint funding partners	Payments received from transmission project joint funding partners	2,451		1,709		Payments received from transmission project joint funding partners	1,096		393

Investments in affordable housing	Investments in affordable housing	(11,619)		(2,687)		Investments in affordable housing	(5,335)		(1,936)

Purchases of equity securities	Purchases of equity securities	(3,401)		(682)		Purchases of equity securities	(171)		(3,230)
Purchases of short-term investments	Purchases of short-term investments	(25,000)		0		Purchases of short-term investments	(25,000)		0
Maturities of short-term investments						Maturities of short-term investments	25,000		0
Proceeds from the sale of equity securities	Proceeds from the sale of equity securities	4,015		3,827		Proceeds from the sale of equity securities	1,557		839

Other	Other	4,862		4,121		Other	797		3,826
Net cash used in investing activities	Net cash used in investing activities	(242,092)		(192,583)		Net cash used in investing activities	(79,349)		(73,674)
Financing Activities:	Financing Activities:					Financing Activities:
Issuance of long-term debt		310,000		166,100
Premium on issuance of long-term debt		31,384		0
Retirement of long-term debt		(175,000)		(166,100)

Dividends on common stock	Dividends on common stock	(101,999)		(95,871)		Dividends on common stock	(36,379)		(34,312)

Tax withholdings on net settlements of share-based awards	Tax withholdings on net settlements of share-based awards	(4,641)		(4,120)		Tax withholdings on net settlements of share-based awards	(3,026)		(4,183)
Make-whole premium on retirement of long-term debt		(3,305)		0

Debt issuance costs and other	Debt issuance costs and other	(3,613)		(1,362)		Debt issuance costs and other	(17)		(10)
Net cash provided by (used in) financing activities		52,826		(101,353)
Net increase (decrease) in cash and cash equivalents		94,764		(6,921)
Net cash used in financing activities						Net cash used in financing activities	(39,422)		(38,505)
Net decrease in cash and cash equivalents						Net decrease in cash and cash equivalents	(35,109)		(78,383)
Cash and cash equivalents at beginning of the period	Cash and cash equivalents at beginning of the period	217,254		267,492		Cash and cash equivalents at beginning of the period	275,116		217,254
Cash and cash equivalents at end of the period	Cash and cash equivalents at end of the period	$	312,018	$	260,571	Cash and cash equivalents at end of the period	$	240,007	$	138,871
Supplemental Disclosure of Cash Flow Information:	Supplemental Disclosure of Cash Flow Information:					Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:	Cash paid during the period for:					Cash paid during the period for:
Income taxes		$	2,435	$	5,225

Interest (net of amount capitalized)	Interest (net of amount capitalized)	64,630		65,835		Interest (net of amount capitalized)	$	25,306	$	19,887
Non-cash investing activities:	Non-cash investing activities:					Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	Additions to property, plant and equipment in accounts payable	$	34,696	$	23,214	Additions to property, plant and equipment in accounts payable	$	27,910	$	22,843

The accompanying notes are an integral part of these statements.

Table of Contents

IDACORP, Inc.

Condensed Consolidated Statements of Equity

(unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
		(in thousands)				(in thousands)					(in thousands)
Common Stock	Common Stock									Common Stock
Balance at beginning of period	Balance at beginning of period	$	866,127	$	864,266	$	868,307	$	863,593	Balance at beginning of period	$	869,235	$	868,307
Share-based compensation expense	Share-based compensation expense	1,353		1,877		5,678		6,543		Share-based compensation expense	2,710		2,624
Tax withholdings on net settlements of share-based awards	Tax withholdings on net settlements of share-based awards	(11)		0		(4,641)		0		Tax withholdings on net settlements of share-based awards	(3,026)		(4,183)
Treasury shares issued	Treasury shares issued	0		(33)		(1,920)		(4,080)		Treasury shares issued	0		(1,920)
Other	Other	22		21		67		75		Other	25		22
Balance at end of period	Balance at end of period	867,491		866,131		867,491		866,131		Balance at end of period	868,944		864,850
Retained Earnings	Retained Earnings									Retained Earnings
Balance at beginning of period	Balance at beginning of period	1,664,468		1,563,399		1,634,525		1,531,543		Balance at beginning of period	1,734,103		1,634,525
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	102,031		89,876		199,910		185,718		Net income attributable to IDACORP, Inc.	44,831		37,490
Common stock dividends ($0.67, $0.63, $2.01, and $1.89 per share, respectively)		(33,960)		(31,933)		(101,896)		(95,919)
Common stock dividends ($0.71 and $0.67 per share, respectively)										Common stock dividends ($0.71 and $0.67 per share, respectively)	(35,940)		(33,950)
Balance at end of period	Balance at end of period	1,732,539		1,621,342		1,732,539		1,621,342		Balance at end of period	1,742,994		1,638,065
Accumulated Other Comprehensive (Loss) Income	Accumulated Other Comprehensive (Loss) Income									Accumulated Other Comprehensive (Loss) Income
Balance at beginning of period	Balance at beginning of period	(34,790)		(21,868)		(36,284)		(22,844)		Balance at beginning of period	(43,358)		(36,284)
Unfunded pension liability adjustment (net of tax)	Unfunded pension liability adjustment (net of tax)	747		488		2,241		1,464		Unfunded pension liability adjustment (net of tax)	836		747
Balance at end of period	Balance at end of period	(34,043)		(21,380)		(34,043)		(21,380)		Balance at end of period	(42,522)		(35,537)
Treasury Stock	Treasury Stock									Treasury Stock
Balance at beginning of period	Balance at beginning of period	0		(1,992)		(1,920)		(1,932)		Balance at beginning of period	0		(1,920)
Issued	Issued	0		33		1,920		4,080		Issued	0		1,920
Acquired for tax withholdings on net settlements of share-based awards		0		(13)		0		(4,120)

Balance at end of period	Balance at end of period	0		(1,972)		0		(1,972)		Balance at end of period	0		0
Total IDACORP, Inc. shareholders’ equity at end of period	Total IDACORP, Inc. shareholders’ equity at end of period	2,565,987		2,464,121		2,565,987		2,464,121		Total IDACORP, Inc. shareholders’ equity at end of period	2,569,416		2,467,378
Noncontrolling Interests	Noncontrolling Interests									Noncontrolling Interests
Balance at beginning of period	Balance at beginning of period	6,163		5,646		5,925		5,451		Balance at beginning of period	6,476		5,925
Net income attributable to noncontrolling interests		271		342		509		537
Net loss attributable to noncontrolling interests										Net loss attributable to noncontrolling interests	(31)		(32)
Balance at end of period	Balance at end of period	6,434		5,988		6,434		5,988		Balance at end of period	6,445		5,893
Total equity at end of period	Total equity at end of period	$	2,572,421	$	2,470,109	$	2,572,421	$	2,470,109	Total equity at end of period	$	2,575,861	$	2,473,271

The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Income

(unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
		(in thousands)				(in thousands)					(in thousands)

Operating Revenues	Operating Revenues	$	424,170	$	385,028	$	1,032,324	$	1,050,574	Operating Revenues	$	315,568	$	290,488

Operating Expenses:	Operating Expenses:									Operating Expenses:
Operation:	Operation:									Operation:
Purchased power	Purchased power	104,113		93,618		227,088		214,512		Purchased power	67,988		61,201
Fuel expense	Fuel expense	59,745		46,881		121,174		119,577		Fuel expense	33,306		30,015
Power cost adjustment	Power cost adjustment	(9,533)		(16,412)		(14,460)		25,935		Power cost adjustment	5,671		(3,391)
Other operations and maintenance	Other operations and maintenance	82,782		87,151		255,734		263,064		Other operations and maintenance	85,657		89,808
Energy efficiency programs	Energy efficiency programs	10,530		8,438		31,957		30,008		Energy efficiency programs	9,027		9,475
Depreciation	Depreciation	43,243		42,601		128,683		126,006		Depreciation	43,315		42,526
Taxes other than income taxes		8,536		8,827		25,947		27,064
Other operating expenses										Other operating expenses	9,327		9,141
Total operating expenses	Total operating expenses	299,416		271,104		776,123		806,166		Total operating expenses	254,291		238,775

Income from Operations		124,754		113,924		256,201		244,408
Operating Income										Operating Income	61,277		51,713

Other Income:
Nonoperating (Income) Expense:										Nonoperating (Income) Expense:
Allowance for equity funds used during construction	Allowance for equity funds used during construction	7,369		6,803		21,791		19,857		Allowance for equity funds used during construction	(7,769)		(7,272)
Earnings of unconsolidated equity-method investments	Earnings of unconsolidated equity-method investments	2,928		3,100		7,368		7,365		Earnings of unconsolidated equity-method investments	(2,550)		(2,453)
Other income, net		183		770		612		1,858
Total other income		10,480		10,673		29,771		29,080

Interest Charges:
Interest on long-term debt	Interest on long-term debt	21,495		20,489		63,213		62,799		Interest on long-term debt	21,036		19,662
Other interest	Other interest	3,637		3,741		10,995		10,847		Other interest	3,514		3,813
Allowance for borrowed funds used during construction	Allowance for borrowed funds used during construction	(2,969)		(2,666)		(8,585)		(7,989)		Allowance for borrowed funds used during construction	(3,005)		(2,730)
Total interest charges		22,163		21,564		65,623		65,657
Other income, net										Other income, net	(191)		(469)
Total nonoperating expense, net										Total nonoperating expense, net	11,035		10,551

Income Before Income Taxes	Income Before Income Taxes	113,071		103,033		220,349		207,831		Income Before Income Taxes	50,242		41,162

Income Tax Expense	Income Tax Expense	12,682		15,054		24,260		27,091		Income Tax Expense	5,873		4,386

Net Income	Net Income	$	100,389	$	87,979	$	196,089	$	180,740	Net Income	$	44,369	$	36,776

The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
		(in thousands)				(in thousands)					(in thousands)

Net Income	Net Income	$	100,389	$	87,979	$	196,089	$	180,740	Net Income	$	44,369	$	36,776
Other Comprehensive Income:	Other Comprehensive Income:									Other Comprehensive Income:

Unfunded pension liability adjustment, net of tax of $259, $170, $777, and $508, respectively		747		488		2,241		1,464
Unfunded pension liability adjustment, net of tax of $289 and $259, respectively										Unfunded pension liability adjustment, net of tax of $289 and $259, respectively	836		747
Total Comprehensive Income	Total Comprehensive Income	$	101,136	$	88,467	$	198,330	$	182,204	Total Comprehensive Income	$	45,205	$	37,523

The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


		September 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
		(in thousands)					(in thousands)
Assets	Assets					Assets

Electric Plant:
In service (at original cost)		$	6,263,386	$	6,113,567
Accumulated provision for depreciation		(2,242,049)		(2,155,783)
In service - net		4,021,337		3,957,784
Construction work in progress		599,557		552,499
Held for future use		3,697		3,872
Electric plant - net		4,624,591		4,514,155
Investments and Other Property		87,629		87,104
Current Assets:	Current Assets:					Current Assets:
Cash and cash equivalents	Cash and cash equivalents	236,162		98,950		Cash and cash equivalents	$	134,536	$	165,604
Receivables:	Receivables:					Receivables:
Customer (net of allowance of $3,924 and $1,401, respectively)		103,581		72,675
Other (net of allowance of $499 and $343, respectively)		13,433		17,107
Customer (net of allowance of $5,088 and $4,766, respectively)						Customer (net of allowance of $5,088 and $4,766, respectively)	73,360		72,826
Other (net of allowance of $561 and $497, respectively)						Other (net of allowance of $561 and $497, respectively)	21,051		12,457
Income taxes receivable	Income taxes receivable	0		9,279		Income taxes receivable	0		4,667
Accrued unbilled revenues	Accrued unbilled revenues	64,283		64,545		Accrued unbilled revenues	54,895		72,461
Materials and supplies (at average cost)	Materials and supplies (at average cost)	62,493		56,660		Materials and supplies (at average cost)	68,294		64,941
Fuel stock (at average cost)	Fuel stock (at average cost)	41,193		57,448		Fuel stock (at average cost)	29,261		31,646
Prepayments	Prepayments	17,231		17,520		Prepayments	16,441		20,057

Current regulatory assets	Current regulatory assets	42,830		56,626		Current regulatory assets	63,027		63,407
Other	Other	2,453		405		Other	2,760		1,995
Total current assets	Total current assets	583,659		451,215		Total current assets	463,625		510,061
Deferred Debits:
Investments						Investments	85,442		87,848
Property, Plant and Equipment:						Property, Plant and Equipment:
Plant in service						Plant in service	6,321,220		6,283,790
Accumulated provision for depreciation						Accumulated provision for depreciation	(2,224,063)		(2,193,831)
Plant in service - net						Plant in service - net	4,097,157		4,089,959
Construction work in progress						Construction work in progress	617,265		597,152
Plant held for future use						Plant held for future use	4,109		4,109
Other property						Other property	3,640		5,123
Property, plant and equipment, net						Property, plant and equipment, net	4,722,171		4,696,343
Other Assets:						Other Assets:
Company-owned life insurance	Company-owned life insurance	61,326		58,922		Company-owned life insurance	63,507		62,382
Regulatory assets	Regulatory assets	1,355,181		1,326,433		Regulatory assets	1,503,256		1,495,488
Other	Other	57,181		56,330		Other	55,075		53,988
Total deferred debits		1,473,688		1,441,685
Total other assets						Total other assets	1,621,838		1,611,858
Total	Total	$	6,769,567	$	6,494,159	Total	$	6,893,076	$	6,906,110

The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Balance Sheets

(unaudited)


		September 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
		(in thousands)					(in thousands)
Capitalization and Liabilities
Liabilities and Equity						Liabilities and Equity

Capitalization:
Common stock equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding)		$	97,877	$	97,877
Premium on capital stock		712,258		712,258
Capital stock expense		(2,097)		(2,097)
Retained earnings		1,597,996		1,503,805
Accumulated other comprehensive loss		(34,043)		(36,284)
Total common stock equity		2,371,991		2,275,559
Long-term debt		2,000,358		1,736,659
Total capitalization		4,372,349		4,012,218
Current Liabilities:	Current Liabilities:					Current Liabilities:
Current portion of long-term debt		0		100,000

Accounts payable	Accounts payable	99,644		110,581		Accounts payable	$	81,529	$	120,476
Accounts payable to affiliates	Accounts payable to affiliates	24,045		2,053		Accounts payable to affiliates	118		1,720
Taxes accrued	Taxes accrued	26,361		11,481		Taxes accrued	32,369		19,554
Interest accrued	Interest accrued	19,502		20,999		Interest accrued	19,415		24,030

Accrued compensation	Accrued compensation	45,019		52,267		Accrued compensation	36,834		52,036
Current regulatory liabilities	Current regulatory liabilities	24,835		33,987		Current regulatory liabilities	27,697		11,104
Advances from customers	Advances from customers	30,270		28,452		Advances from customers	34,604		29,341
Other	Other	15,566		15,629		Other	16,907		16,717
Total current liabilities	Total current liabilities	285,242		375,449		Total current liabilities	249,473		274,978
Deferred Credits:
Other Liabilities:						Other Liabilities:
Deferred income taxes	Deferred income taxes	798,418		794,402		Deferred income taxes	825,179		829,146
Regulatory liabilities	Regulatory liabilities	771,236		748,198		Regulatory liabilities	755,542		757,730
Pension and other postretirement benefits	Pension and other postretirement benefits	499,413		519,570		Pension and other postretirement benefits	641,113		634,070
Other	Other	42,909		44,322		Other	48,199		45,937
Total deferred credits		2,111,976		2,106,492

Total other liabilities						Total other liabilities	2,270,033		2,266,883
Long-Term Debt						Long-Term Debt	2,000,471		2,000,414
Commitments and Contingencies	Commitments and Contingencies					Commitments and Contingencies	0		0

Equity:						Equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding)						Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding)	97,877		97,877
Premium on capital stock						Premium on capital stock	712,258		712,258
Capital stock expense						Capital stock expense	(2,097)		(2,097)
Retained earnings						Retained earnings	1,607,583		1,599,155
Accumulated other comprehensive loss						Accumulated other comprehensive loss	(42,522)		(43,358)
Total equity						Total equity	2,373,099		2,363,835
Total	Total	$	6,769,567	$	6,494,159	Total	$	6,893,076	$	6,906,110

The accompanying notes are an integral part of these statements.	The accompanying notes are an integral part of these statements.					The accompanying notes are an integral part of these statements.

Table of Contents

Idaho Power Company

Condensed Consolidated Statements of Cash Flows

(unaudited)


		Nine months ended September 30,					Three months ended March 31,
		2020		2019			2021		2020
		(in thousands)					(in thousands)
Operating Activities:	Operating Activities:					Operating Activities:
Net income	Net income	$	196,089	$	180,740	Net income	$	44,369	$	36,776
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	131,567		128,945		Depreciation and amortization	44,138		43,505
Deferred income taxes and investment tax credits	Deferred income taxes and investment tax credits	7,554		(6,911)		Deferred income taxes and investment tax credits	(2,958)		(1,207)
Changes in regulatory assets and liabilities	Changes in regulatory assets and liabilities	(11,616)		22,549		Changes in regulatory assets and liabilities	2,833		(9,672)
Pension and postretirement benefit plan expense	Pension and postretirement benefit plan expense	21,716		20,841		Pension and postretirement benefit plan expense	7,367		7,260
Contributions to pension and postretirement benefit plans	Contributions to pension and postretirement benefit plans	(44,123)		(45,984)		Contributions to pension and postretirement benefit plans	(918)		(12,270)
Earnings of equity-method investments	Earnings of equity-method investments	(7,368)		(7,365)		Earnings of equity-method investments	(2,550)		(2,453)
Distributions from equity-method investments	Distributions from equity-method investments	6,500		18,150		Distributions from equity-method investments	2,550		2,000
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(21,791)		(19,857)		Allowance for equity funds used during construction	(7,769)		(7,272)
Other non-cash adjustments to net income, net	Other non-cash adjustments to net income, net	2,264		(759)		Other non-cash adjustments to net income, net	528		867
Change in:	Change in:					Change in:
Accounts receivable		(33,365)		(24,760)
Receivables						Receivables	(5,600)		4,161
Accounts payable	Accounts payable	2,658		(31,563)		Accounts payable	(42,193)		(49,344)
Taxes accrued/receivable	Taxes accrued/receivable	24,159		34,351		Taxes accrued/receivable	17,482		22,446
Other current assets	Other current assets	8,942		3,611		Other current assets	19,414		1,297
Other current liabilities	Other current liabilities	5,207		(3,881)		Other current liabilities	2,451		5,207
Other assets	Other assets	(2,800)		(3,478)		Other assets	(2,245)		(1,935)
Other liabilities	Other liabilities	(481)		658		Other liabilities	2,003		(180)
Net cash provided by operating activities	Net cash provided by operating activities	285,112		265,287		Net cash provided by operating activities	78,902		39,186
Investing Activities:	Investing Activities:					Investing Activities:
Additions to utility plant	Additions to utility plant	(213,400)		(198,871)		Additions to utility plant	(77,293)		(73,566)

Payments received from transmission project joint funding partners	Payments received from transmission project joint funding partners	2,451		1,709		Payments received from transmission project joint funding partners	1,096		393

Purchases of equity securities	Purchases of equity securities	(3,401)		(682)		Purchases of equity securities	(171)		(3,230)
Proceeds from the sale of equity securities	Proceeds from the sale of equity securities	4,015		3,827		Proceeds from the sale of equity securities	1,557		839

Other	Other	4,833		3,964		Other	797		3,796
Net cash used in investing activities	Net cash used in investing activities	(205,502)		(190,053)		Net cash used in investing activities	(74,014)		(71,768)
Financing Activities:	Financing Activities:					Financing Activities:
Issuance of long-term debt		310,000		166,100
Premium on issuance of long-term debt		31,384		0
Retirement of long-term debt		(175,000)		(166,100)

Dividends on common stock	Dividends on common stock	(101,898)		(95,919)		Dividends on common stock	(35,941)		(33,952)

Make-whole premium on retirement of long-term debt		(3,305)		0

Other	Other	(3,579)		(1,284)		Other	(15)		4
Net cash provided by (used in) financing activities		57,602		(97,203)
Net increase (decrease) in cash and cash equivalents		137,212		(21,969)
Net cash used in financing activities						Net cash used in financing activities	(35,956)		(33,948)
Net decrease in cash and cash equivalents						Net decrease in cash and cash equivalents	(31,068)		(66,530)
Cash and cash equivalents at beginning of the period	Cash and cash equivalents at beginning of the period	98,950		165,460		Cash and cash equivalents at beginning of the period	165,604		98,950
Cash and cash equivalents at end of the period	Cash and cash equivalents at end of the period	$	236,162	$	143,491	Cash and cash equivalents at end of the period	$	134,536	$	32,420
Supplemental Disclosure of Cash Flow Information:	Supplemental Disclosure of Cash Flow Information:					Supplemental Disclosure of Cash Flow Information:
Cash (received from) paid to IDACORP related to income taxes		$	(9,189)	$	16,014
Cash received from IDACORP related to income taxes						Cash received from IDACORP related to income taxes	$	0	$	(9,189)
Cash paid for interest (net of amount capitalized)	Cash paid for interest (net of amount capitalized)	64,613		65,796		Cash paid for interest (net of amount capitalized)	25,346		19,888
Non-cash investing activities:	Non-cash investing activities:					Non-cash investing activities:
Additions to property, plant and equipment in accounts payable	Additions to property, plant and equipment in accounts payable	$	34,696	$	23,214	Additions to property, plant and equipment in accounts payable	$	27,910	$	22,843

The accompanying notes are an integral part of these statements.

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IDACORP, INC. AND IDAHO POWER COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This Quarterly Report on Form 10-Q is a combined report of IDACORP, Inc. (IDACORP) and Idaho Power Company (Idaho Power). Therefore, these Notes to Condensed Consolidated Financial Statements apply to both IDACORP and Idaho Power. However, Idaho Power makes no representation as to the information relating to IDACORP’s other operations.

Nature of Business

IDACORP is a holding company formed in 1998 whose principal operating subsidiary is Idaho Power. Idaho Power is an electric utility engaged in the generation, transmission, distribution, sale, and purchase of electric energy and capacity with a service area covering approximately 24,000 square miles in southern Idaho and eastern Oregon. Idaho Power is regulated primarily by the state utility regulatory commissions of Idaho and Oregon and the Federal Energy Regulatory Commission (FERC). Idaho Power is the parent of Idaho Energy Resources Co. (IERCo), a joint venturer in Bridger Coal Company (BCC), which mines and supplies coal to the Jim Bridger generating plant (Jim Bridger plant) owned in part by Idaho Power.

IDACORP’s significant other wholly-owned subsidiaries include IDACORP Financial Services, Inc. (IFS), an investor in affordable housing and other real estate tax credit investments, and Ida-West Energy Company (Ida-West), an operator of small hydropower generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

Regulation of Utility Operations

As a regulated utility, many of Idaho Power's fundamental business decisions are subject to the approval of governmental agencies, including the prices that Idaho Power is authorized to charge for its electric service. These approvals are a critical factor in determining IDACORP's and Idaho Power's results of operations and financial condition.

IDACORP's and Idaho Power's financial statements reflect the effects of the different ratemaking principles followed by the jurisdictions regulating Idaho Power. The application of accounting principles related to regulated operations sometimes results in Idaho Power recording expenses and revenues in a different period than when an unregulated enterprise would record such expenses and revenues. In these instances, the amounts are deferred or accrued as regulatory assets or regulatory liabilities on the balance sheet. Regulatory assets represent incurred costs that have been deferred because it is probable they will be recovered from customers through future rates. Regulatory liabilities represent obligations to make refunds to customers for previous collections, or represent amounts collected in advance of incurring an expense. The effects of applying these regulatory accounting principles to Idaho Power's operations are discussed in more detail in Note 3 - "Regulatory Matters."

Financial Statements

In the opinion of management of IDACORP and Idaho Power, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly each company's consolidated financial position as of ~~September 30, 2020,~~March 31, 2021, consolidated results of operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ and consolidated cash flows for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020. These adjustments are of a normal and recurring nature. These financial statements do not contain the complete detail or note disclosures concerning accounting policies and other matters that would be included in full-year financial statements and should be read in conjunction with the audited consolidated financial statements included in IDACORP’s and Idaho Power’s Annual Report on Form 10-K for the year ended December 31, ~~2019 (2019~~2020 (2020 Annual Report). The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. A change in management's estimates or assumptions could have a material impact on IDACORP's or Idaho Power's respective financial condition and results of operations during the period in which such change occurred.

Management Estimates

Management makes estimates and assumptions when preparing financial statements in conformity with generally accepted accounting principles. These estimates and assumptions include those related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial

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statements and the reported amounts of revenues and expenses during the reporting period. These estimates involve judgments

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with respect to, among other things, future economic factors that are difficult to predict and are beyond management's control. Accordingly, actual results could differ from those estimates.

Reclassifications

Idaho Power changed the presentation of its consolidated statements of income from a utility format to a traditional format. The changes revised the order of certain line items and did not result in any material changes in classification of amounts between line items.

In the condensed consolidated statements of income, certain amounts in prior periods' consolidated statements of income have been reclassified to conform with current period presentation. On IDACORP's and Idaho Power's condensed consolidated statements of income for the three months ended March 31, 2020, $0.5 million that had previously been reported as "Other" within "Operating Expenses" and "Other expense, net" within "Other Income (Expense)" respectively, were reclassified to "Other electric utility operating expenses" and "Other operating expenses" within "Operating Expenses," respectively.

New and Recently Adopted Accounting Pronouncements

~~In June 2016, the Financial Accounting Standards Board (FASB)~~There have been no recently issued ~~Accounting Standards Update (ASU) 2016-13,~~ ~~Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments~~accounting pronouncements that have had or are expected to provide financial statement users with more information about expected credit losses on financial instruments and other commitments. The ASU revises the incurred loss impairment methodology to reflect current expected credit losses and requires consideration of a broader range of information to estimate credit losses. IDACORP and Idaho Power adopted ASU 2016-13 on January 1, 2020. The adoption did not have a material impact on ~~their respective financial statements but did result in the additional disclosure below.~~

~~The measurement of expected credit losses on~~IDACORP's or Idaho Power accounts receivable is based upon historical experience, current conditions, and forecasted information that may affect collections on the outstanding balance. Generally, this includes adjustments based upon a combination of historical write-off experience, aging of accounts receivable, an analysis of specific customer accounts, and an evaluation of whether there are current or forecasted economic conditions that might cause variation in collection from the historical experience. In response to the COVID-19 public health crisis, Idaho Power provided certain relief to customers including temporarily suspending disconnections for customers and temporarily waiving late fees. This relief as well as the economic conditions created by the response to the COVID-19 public health crisis have resulted in higher aged accounts receivable and an increase in the number of late payments. Idaho Power expects higher uncollectible account write-offs as a result of the COVID-19 public health crisis and, accordingly, increased its allowance for uncollectible accounts related to customer receivables at September 30, 2020. The allowance for uncollectible accounts increased to 3.7 percent of the total customer receivables balance at September 30, 2020, compared with 1.9 percent at December 31, 2019, and 1.4 percent at September 30, 2019.

~~The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables for the nine months ended September 30, 2020 and 2019 (in thousands):~~

Nine months ended
September 30,
2020 2019
Balance at beginning of period $ 1,401 $ 1,725
Additions to the allowance 3,543 1,663
Write-offs, net of recoveries (1,020) (1,975)
Balance at end of period $ 3,924 $ 1,413
Allowance for uncollectible accounts as a percentage of customer receivables 3.7 % 1.4 %

~~In August 2018, the FASB issued ASU 2018-15,~~ ~~Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract~~,

to provide guidance on implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 aligns the recognition of such implementation costs with the accounting for costs incurred to implement an internal-use software solution. However, the balance sheet line item for presentation of capitalized implementation costs for a cloud computing arrangement that is a service contract should be the same as that for the prepayment of fees related to the same arrangement, while capitalized implementation costs for internal-use software solutions are often included in property, plant, and equipment as an intangible asset. IDACORP and Idaho Power adopted ASU 2018-15 on January 1, 2020. The adoption did not have a material impact on their respectivePower's consolidated financial statements.

2. INCOME TAXES

In accordance with interim reporting requirements, IDACORP and Idaho Power use an estimated annual effective tax rate for computing their provisions for income taxes. An estimate of annual income tax expense (or benefit) is made each interim period using estimates for annual pre-tax income, income tax adjustments, and tax credits. The estimated annual effective tax rates do not include discrete events such as tax law changes, examination settlements, accounting method changes, or adjustments to tax expense or benefits attributable to prior years. Discrete events are recorded in the interim period in which they occur or become known. The estimated annual effective tax rate is applied to year-to-date pre-tax income to determine income tax expense (or

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benefit) for the interim period consistent with the annual estimate. In subsequent interim periods, income tax expense (or benefit) for the period is computed as the difference between the year-to-date amount reported for the previous interim period and the current period's year-to-date amount.

Income Tax Expense

The following table provides a summary of income tax expense for the ~~nine~~three months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands):


		IDACORP						Idaho Power							IDACORP						Idaho Power
		2020			2019			2020			2019				2021			2020			2021			2020
Income tax at statutory rates (federal and state)	Income tax at statutory rates (federal and state)	$	57,420		$	54,626		$	56,718		$	53,496		Income tax at statutory rates (federal and state)	$	12,849		$	10,651		$	12,932		$	10,595

First mortgage bond redemption costs		(890)			0			(890)			0

Excess deferred income tax reversal	Excess deferred income tax reversal	(3,222)			(4,123)			(3,222)			(4,123)			Excess deferred income tax reversal	(1,606)			(1,481)			(1,606)			(1,481)

Income tax return adjustments		(2,555)			1,071			(2,507)			993

Other(1)	Other(1)	(27,587)			(25,068)			(25,839)			(23,275)			Other(1)	(6,157)			(5,282)			(5,453)			(4,728)
Income tax expense	Income tax expense	$	23,166		$	26,506		$	24,260		$	27,091		Income tax expense	$	5,086		$	3,888		$	5,873		$	4,386
Effective tax rate	Effective tax rate	10.4		%	12.5		%	11.0		%	13.0		%	Effective tax rate	10.2		%	9.4		%	11.7		%	10.7		%

(1) "Other" is primarily comprised of the net tax effect of Idaho Power's regulatory flow-through tax adjustments.

The ~~decrease~~increase in income tax expense for the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, compared with the same period in ~~2019,~~2020, was primarily due to ~~the tax deduction for bond redemption costs incurred in the third quarter and other plant-related income tax return adjustments, partially offset by statutory taxes on greater 2020~~higher pre-tax ~~income and lower excess deferred income tax reversal.~~earnings. On a net basis, Idaho Power’s estimate of its annual ~~2020~~2021 regulatory flow-through tax adjustments is comparable to ~~2019.~~2020.

3. REGULATORY MATTERS

Included below is a summary of Idaho Power's most recent general rate cases and base rate changes, as well as other recent or pending notable regulatory matters and proceedings.

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Idaho and Oregon General Rate Cases

Idaho Power's current base rates result from orders from the Idaho Public Utilities Commission (IPUC) and Public Utility Commission of Oregon (OPUC), as described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2019~~2020 Annual Report.

Idaho Settlement Stipulations

In October 2014, the IPUC issued an order approving an extension, with modifications, of the terms of a December 2011 Idaho settlement stipulation for the period from 2015 through 2019, or until otherwise modified or terminated by order of the IPUC (October 2014 Idaho Earnings Support and Sharing Settlement Stipulation). A May 2018 Idaho settlement stipulation related to tax reform (May 2018 Idaho Tax Reform Settlement Stipulation) provides for the extension of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation beyond the initial termination date of December 31, 2019, with modified terms that became effective beginning January 1, 2020, related to the accumulated deferred investment tax credits (ADITC) and revenue sharing mechanism. The October 2014 Idaho Earnings Support and Sharing Settlement Stipulation and the May 2018 Idaho Tax Reform Settlement Stipulation areis described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2019~~2020 Annual Report and ~~include~~includes provisions for the accelerated amortization of ~~ADITC~~accumulated deferred investment tax credits (ADITC) to help achieve a minimum 9.4 percent ~~(9.5 percent prior to 2020)~~ return on year-end equity in the Idaho jurisdiction (Idaho ROE). In addition, under the May 2018 Idaho Tax Reform Settlement Stipulation, minimum Idaho ROE would revert back to 95 percent of the authorized return on equity in the next general rate case. The settlement ~~stipulations~~stipulation also ~~provide~~provides for the potential sharing between Idaho Power and Idaho customers of Idaho-jurisdictional earnings in excess of 10.0 percent of Idaho ROE.

Based on its estimate of full-year ~~2020~~2021 Idaho ROE, in ~~both~~ the ~~third~~first quarter ~~and first nine months~~ of ~~2020,~~2021, Idaho Power recorded 0 additional ADITC amortization or provision against current revenues for sharing of earnings with customers for ~~2020~~2021 under the May 2018 Idaho Tax Reform Settlement Stipulation. Accordingly, at ~~September 30, 2020,~~March 31, 2021, the full $45 million of additional ADITC remains available for future use. Idaho Power recorded 0 additional ADITC amortization or

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provision against revenues for sharing of earnings with customers during the ~~third~~first quarter ~~and first nine months~~ of ~~2019,~~2020, based on its then-current estimate of full-year ~~2019~~2020 Idaho ROE.

Idaho Power Cost Adjustment Mechanisms

In both its Idaho and Oregon jurisdictions, Idaho Power's power cost adjustment mechanisms address the volatility of power supply costs and provide for annual adjustments to the rates charged to its retail customers. The power cost adjustment mechanisms compare Idaho Power's actual net power supply costs (primarily fuel and purchased power less wholesale energy sales) against net power supply costs being recovered in Idaho Power's retail rates. Under the power cost adjustment mechanisms, certain differences between actual net power supply costs incurred by Idaho Power and costs being recovered in retail rates are recorded as a deferred charge or credit on the balance sheet for future recovery or refund. The power supply costs deferred primarily result from changes in contracted power purchase prices and volumes, changes in wholesale market prices and transaction volumes, fuel prices, and the levels of Idaho Power's own generation.

~~In May 2020,~~On April 15, 2021, Idaho Power filed an application with the IPUC ~~approved~~requesting a ~~$58.7~~$39.1 million net increase in Idaho-jurisdiction power cost adjustment (PCA) revenues, effective for the ~~2020-2021~~2021-2022 PCA collection period from June 1, ~~2020,~~2021 to May 31, ~~2021.~~2022. The net increase in PCA revenues ~~reflects~~reflects a ~~return to a more normal level of power supply costs as wholesale market energy prices have come down from unusually high levels reflected in last year's PCA. The~~forecasted reduction in ~~market energy prices results in Idaho Power forecasting lower wholesale energy sales, which serve~~low-cost hydroelectric generation as ~~an offset to~~well as higher costs associated with higher forecasted PURPA power ~~supply costs.~~purchases. The net increase in PCA revenues also reflects a ~~forecasted reduction in low-cost hydropower generation. The previous PCA for~~smaller credit to customers through the ~~2019-2020 collection period also included $7.7 million in one-time customer benefits associated with revenue sharing and income tax reform benefits, which expired in May 2020.~~

true-up component. As o

~~Previously, in May 2019,~~f the date of this report, the IPUC has not yet issued an order ~~approving a $50.1 million net decrease in PCA rates, effective for~~on the 2019-2020 PCA collection period from June 1, 2019, to May 31, 2020. The net decrease in PCA revenues reflected reduced power supply costs due to higher-than-expected wholesale energy sales and positive results from natural gas hedging activities, which combined to reduce actual net power supply costs for the 2018-2019 PCA year (April 2018 through March 2019). The net decrease in PCA revenues for the 2019-2020 PCA collection period also included a $5.0 million credit to customers for sharing of 2018 earnings under the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation and a $2.7 million credit for income tax reform benefits related to Idaho Power's open access transmission tariff (OATT) rate under the May 2018 Idaho Tax Reform Settlement Stipulation. application.

Idaho Fixed Cost Adjustment Mechanism

The Idaho jurisdiction fixed cost adjustment (FCA) mechanism, applicable to Idaho residential and small general service customers, is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by separating (or decoupling) the recovery of fixed costs from the variable kilowatt-hour charge and linking it instead to a set amount per customer. Under Idaho Power's current rate design, Idaho Power recovers a portion of fixed costs through the variable kilowatt-hour charge, which may result in over-collection or under-collection of fixed costs. To return over-collection to customers or to collect under-collection from customers, the FCA mechanism allows Idaho Power to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power during the year. The IPUC has discretion to cap the annual increase in the FCA recovery at 3 percent of base revenue, with any excess deferred for collection in a subsequent year. In ~~June 2020,~~March 2021, Idaho Power filed its annual FCA update with the IPUC ~~approved~~requesting an increase of ~~$0.7~~$2.8 million in recovery from the FCA from ~~$34.8~~$35.5 million to ~~$35.5~~$38.3 million, with new rates effective for the period from June 1, ~~2020,~~2021, to May 31, 2021. Previously, in May 2019, the IPUC issued an order approving an increase of $19.2 million in the FCA from $15.6 million to $34.8 million, with rates effective for the period from June 1, 2019, to May 31, 2020.2022.

~~Deferred Costs for COVID-19 Public Health Crisis~~

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for possible recovery through future rates. The order also requires utilities to account for the decreases in expenses resulting from the COVID-19 public health crisis, such as reduced employee travel and training, and apply these reductions in expenses to offset the deferral account balance. Additionally, the order addressed potential reductions in revenue due to the COVID-19 public health crisis, allowing utilities to track reduced revenues from customer classes not included in an FCA-type mechanism for possible movement to the regulatory asset account at a later date. Idaho Power resumed assessing late fees and disconnections in its Idaho service area in early August 2020. As of September 30, 2020, Idaho Power had recorded a $0.7 million regulatory asset for its estimate of unanticipated, emergency-related expenses, including higher bad debt expense, net of estimated savings. On October 20, 2020, the OPUC issued an order authorizing Idaho Power to defer certain COVID-19-related costs for the 12-month period beginning March 24, 2020.

4. REVENUES

The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands):


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Electric utility operating revenues:	Electric utility operating revenues:									Electric utility operating revenues:
Revenue from contracts with customers	Revenue from contracts with customers	$	402,941	$	367,101	$	984,096	$	1,010,281	Revenue from contracts with customers	$	291,327	$	270,184
Alternative revenue programs and other revenues	Alternative revenue programs and other revenues	21,229		17,927		48,228		40,293		Alternative revenue programs and other revenues	24,241		20,304
Total electric utility operating revenues	Total electric utility operating revenues	$	424,170	$	385,028	$	1,032,324	$	1,050,574	Total electric utility operating revenues	$	315,568	$	290,488

Revenues from Contracts with Customers

The following table presents revenues from contracts with customers disaggregated by revenue source for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands):


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Revenues from contracts with customers:	Revenues from contracts with customers:									Revenues from contracts with customers:
Retail revenues:	Retail revenues:									Retail revenues:
Residential (includes $4,896, $6,446, $24,740, and $24,988, respectively, related to the FCA)(1)		$	143,822	$	133,550	$	398,180	$	388,566
Commercial (includes $330, $330, $1,211, and $1,022, respectively, related to the FCA)(1)		82,279		80,304		219,006		224,382
Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)										Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)	$	154,785	$	144,887
Commercial (includes $482 and $484, respectively, related to the FCA)(1)										Commercial (includes $482 and $484, respectively, related to the FCA)(1)	72,269		69,513
Industrial	Industrial	50,154		47,122		136,001		138,222		Industrial	45,430		42,760
Irrigation	Irrigation	88,188		82,659		149,711		132,613		Irrigation	1,086		1,375

Deferred revenue related to HCC relicensing AFUDC(2)	Deferred revenue related to HCC relicensing AFUDC(2)	(2,815)		(2,815)		(6,861)		(6,861)		Deferred revenue related to HCC relicensing AFUDC(2)	(2,119)		(2,119)

Total retail revenues	Total retail revenues	361,628		340,820		896,037		876,922		Total retail revenues	271,451		256,416
Less: FCA mechanism revenues(1)	Less: FCA mechanism revenues(1)	(5,226)		(6,776)		(25,951)		(26,010)		Less: FCA mechanism revenues(1)	(16,304)		(16,194)
Wholesale energy sales	Wholesale energy sales	12,178		5,321		22,952		68,693		Wholesale energy sales	6,259		3,908
Transmission wheeling-related revenues	Transmission wheeling-related revenues	16,896		12,498		38,750		40,743		Transmission wheeling-related revenues	14,467		10,363
Energy efficiency program revenues	Energy efficiency program revenues	10,530		8,439		31,957		30,008		Energy efficiency program revenues	9,027		9,475
Other revenues from contracts with customers	Other revenues from contracts with customers	6,935		6,799		20,351		19,925		Other revenues from contracts with customers	6,427		6,216
Total revenues from contracts with customers	Total revenues from contracts with customers	$	402,941	$	367,101	$	984,096	$	1,010,281	Total revenues from contracts with customers	$	291,327	$	270,184

(1) The FCA mechanism is an alternative revenue program in the Idaho jurisdiction and does not represent revenue from contracts with customers.

(2) ~~As part of its January 30, 2009, general rate case order, the~~The IPUC ~~is allowing~~allows Idaho Power to recover a portion of the allowance for funds used during construction (AFUDC) on construction work in progress related to the Hells Canyon Complex (HCC) relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service. Idaho Power is collecting $8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.

Alternative Revenue Programs and Other Revenues

While revenues from contracts with customers make up most of Idaho Power’s revenues, the IPUC has authorized the use of an additional regulatory mechanism, the Idaho FCA mechanism, which may increase or decrease tariff-based customer rates. The

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Idaho FCA mechanism is described in Note 3 - "Regulatory Matters." The FCA mechanism revenues include only the initial recognition of FCA revenues when they meet the regulator-specified conditions for recognition. Revenue from contracts with customers excludes the portion of the tariff price representing FCA revenues that Idaho Power initially recorded in prior periods when revenues met regulator-specified conditions. When Idaho Power includes those amounts in the price of utility service billed to customers, Idaho Power records such amounts as recovery of the associated regulatory asset or liability and not as revenues.

Derivative revenues include gains from settled electricity swaps and sales of electricity under forward sales contracts that are bundled with renewable energy credits. Related to these forward sales, Idaho Power simultaneously enters into forward purchases of electricity for the same quantity at the same location, which are recorded in purchased power on the condensed

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consolidated statements of income. For more information on settled electricity swaps, see Note 1110 - "Derivative Financial Instruments."

The table below presents the FCA mechanism revenues and other revenues for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands):


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Alternative revenue programs and other revenues:	Alternative revenue programs and other revenues:									Alternative revenue programs and other revenues:
FCA mechanism revenues	FCA mechanism revenues	$	5,226	6,776		$	25,951	$	26,010	FCA mechanism revenues	$	16,304	16,194
Derivative revenues	Derivative revenues	16,003		11,151		22,277		14,283		Derivative revenues	7,937		4,110
Total alternative revenue programs and other revenues	Total alternative revenue programs and other revenues	$	21,229	$	17,927	$	48,228	$	40,293	Total alternative revenue programs and other revenues	$	24,241	$	20,304

Receivables and Allowance for Uncollectible Accounts

In response to the COVID-19 pandemic, Idaho Power provided certain relief to customers, including temporarily suspending disconnections for customers and temporarily waiving late fees. This relief as well as the economic conditions created by the response to COVID-19 have resulted in higher aged accounts receivable and an increase in the number of late payments. Idaho Power expects higher uncollectible account write-offs as a result of the COVID-19 pandemic and, accordingly, increased its allowance for uncollectible accounts related to customer receivables at March 31, 2021. The allowance for uncollectible accounts increased to 6.5 percent of the total customer receivables balance at March 31, 2021, compared with 6.1 percent at December 31, 2020, and 3.1 percent at March 31, 2020.

The following table provides a rollforward of the allowance for uncollectible accounts related to customer receivables for the three months ended March 31, 2021 and 2020 (in thousands):


	Three months ended March 31,
	2021			2020
Balance at beginning of period	$	4,766		$	1,401
Additions to the allowance	488			983
Write-offs, net of recoveries	(166)			(216)
Balance at end of period	$	5,088		$	2,168
Allowance for uncollectible accounts as a percentage of customer receivables	6.5		%	3.1		%

5. ~~LONG-TERM DEBT~~

In April 2020, Idaho Power issued $230 million in principal amount of 4.20 percent first mortgage bonds, secured medium term notes, Series K, maturing March 1, 2048. The bonds were issued at a reoffer yield of 3.422 percent, which resulted in a net premium of 13.0 percent and net proceeds to Idaho Power of $259.9 million. After this offering the aggregate principal amount of the 4.20 percent first mortgage bonds is $450 million.

~~In June 2020, Idaho Power entered into a selling agency agreement with six banks named in the agreement in~~

~~connection with the potential issuance and sale from time to time of up to $500 million aggregate principal amount of first~~

~~mortgage bonds, secured medium term notes, Series L (Series L Notes), under Idaho Power’s Indenture of Mortgage and Deed~~

~~of Trust, dated as of October 1, 1937, as amended and supplemented (Indenture). Also in June 2020, Idaho Power~~

~~entered into the Forty-ninth Supplemental Indenture, dated effective as of June 5, 2020, to the Indenture (Forty-ninth~~

~~Supplemental Indenture). The Forty-ninth Supplemental Indenture provides for, among other items, the issuance of up to~~

~~$500 million in aggregate principal amount of Series L Notes pursuant to the Indenture.~~

In June 2020, Idaho Power issued $80 million in principal amount of 1.90 percent first mortgage bonds, secured medium term notes, Series L, maturing July 15, 2030. In July 2020, Idaho Power redeemed, prior to maturity, $75 million in principal amount of 2.95 percent first mortgage bonds, medium-term notes, Series H due in April 2022. In accordance with the redemption provisions of the notes, the redemption included Idaho Power's payment of a make-whole premium to the holders of the redeemed notes in the aggregate amount of $3.3 million.

~~In August 2020, Idaho Power redeemed $100 million in principal amount of 3.40 percent first mortgage bonds due in November 2020.~~

As of the date of this report, Idaho Power has $420 million in principal amount of first mortgage bonds available for issuance, including Series L Notes under the selling agency agreement, but only $190 million in principal amount of long-term debt securities remain available for issuance pursuant to state regulatory authority.

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6. COMMON STOCK

IDACORP Common Stock

During the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, IDACORP granted ~~75,030~~76,147 restricted stock unit awards to employees and issued ~~41,410~~53,593 shares of common stock using original issuances of shares pursuant to the IDACORP, Inc. 2000 Long-Term Incentive and Compensation Plan, including ~~8,480~~11,878 shares of common stock issued to members of the board of directors. As directed by IDACORP, plan administrators of the IDACORP, Inc. Dividend Reinvestment and Stock Purchase Plan and Idaho Power Company Employee Savings Plan used market purchases of IDACORP common stock to acquire shares of IDACORP common stock for the plans.

Restrictions on Dividends

Idaho Power’s ability to pay dividends on its common stock held by IDACORP and IDACORP’s ability to pay dividends on its common stock are limited to the extent payment of such dividends would violate the covenants in their respective credit facilities or Idaho Power’s Revised Code of Conduct. A covenant under IDACORP’s credit facility and Idaho Power’s credit facility requires IDACORP and Idaho Power to maintain leverage ratios of consolidated indebtedness to consolidated total capitalization, as defined therein, of no more than 65 percent at the end of each fiscal quarter. At ~~September 30, 2020,~~March 31, 2021, the leverage ratios for IDACORP and Idaho Power were 44 percent and 46 percent, respectively. Based on these restrictions, IDACORP’s and Idaho Power’s dividends were limited to $1.5 billion and $1.3 billion, respectively, at ~~September 30, 2020.~~March 31, 2021. There are additional facility covenants, subject to exceptions, that prohibit or restrict the sale or disposition of property without consent and any

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agreements restricting dividend payments to IDACORP and Idaho Power from any material subsidiary. At ~~September 30, 2020,~~March 31, 2021, IDACORP and Idaho Power were in compliance with those financial covenants.

Idaho Power’s Revised Code of Conduct relating to transactions between and among Idaho Power, IDACORP, and other affiliates, which was approved by the IPUC in April 2008, provides that Idaho Power will not pay any dividends to IDACORP that will reduce Idaho Power’s common equity capital below 35 percent of its total adjusted capital without IPUC approval. At ~~September 30, 2020,~~March 31, 2021, Idaho Power's common equity capital was 54 percent of its total adjusted capital. Further, Idaho Power must obtain approval from the OPUC before it can directly or indirectly loan funds or issue notes or give credit on its books to IDACORP.

Idaho Power’s articles of incorporation contain restrictions on the payment of dividends on its common stock if preferred stock dividends are in arrears. As of the date of this report, Idaho Power has 0 preferred stock outstanding.

In addition to contractual restrictions on the amount and payment of dividends, the Federal Power Act (FPA) prohibits the payment of dividends from "capital accounts." The term "capital account" is undefined in the FPA or its regulations, but Idaho Power does not believe the restriction would limit Idaho Power's ability to pay dividends out of current year earnings or retained earnings.

7.6. EARNINGS PER SHARE

The table below presents the computation of IDACORP’s basic and diluted earnings per share for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands, except for per share amounts).


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Numerator:	Numerator:									Numerator:
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	$	102,031	$	89,876	$	199,910	$	185,718	Net income attributable to IDACORP, Inc.	$	44,831	$	37,490
Denominator:	Denominator:									Denominator:
Weighted-average common shares outstanding - basic	Weighted-average common shares outstanding - basic	50,541		50,499		50,534		50,502		Weighted-average common shares outstanding - basic	50,567		50,517
Effect of dilutive securities	Effect of dilutive securities	35		59		20		26		Effect of dilutive securities	13		10
Weighted-average common shares outstanding - diluted	Weighted-average common shares outstanding - diluted	50,576		50,558		50,554		50,528		Weighted-average common shares outstanding - diluted	50,580		50,527
Basic earnings per share	Basic earnings per share	$	2.02	$	1.78	$	3.96	$	3.68	Basic earnings per share	$	0.89	$	0.74
Diluted earnings per share	Diluted earnings per share	$	2.02	$	1.78	$	3.95	$	3.68	Diluted earnings per share	$	0.89	$	0.74

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8.7. COMMITMENTS

Purchase Obligations

During the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, IDACORP's and Idaho Power's contractual obligations, outside the ordinary course of business, did not change materially from the amounts disclosed in the notes to the consolidated financial statements in the ~~2019~~2020 Annual Report, except that Idaho Power entered into ~~one~~two new ~~contract with a hydropower PURPA-qualifying facility and ten new replacement contracts for expiring power~~long-term transmission purchase agreements, ~~with hydropower and cogeneration PURPA-qualifying facilities,~~ which increased Idaho Power's contractual purchase obligations by approximately ~~$28~~$16 million over the 5-year terms of the contracts, and one new replacement contract for an expiring power purchase agreement with a PURPA-qualifying hydropower facility, which increased Idaho Power's contractual purchase obligations by approximately $15 million over the 20-year ~~terms~~term of the ~~contracts.~~contract.

Guarantees

~~Through a self-bonding mechanism,~~ Idaho Power guarantees its portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest. This guarantee, which is renewed annually with the Wyoming Department of Environmental Quality, was ~~$58.3~~$51.7 million at ~~September 30, 2020,~~March 31, 2021, representing IERCo's one-third share of BCC's total reclamation obligation of ~~$175.0~~$155.2 million. BCC has a reclamation trust fund set aside specifically for the purpose of paying these reclamation costs. At ~~September 30, 2020,~~March 31, 2021, the value of BCC's reclamation trust fund was ~~$157.5~~$199.5 million. During the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, the reclamation trust fund made ~~$3.3 million of~~0 distributions for reclamation activity costs associated with the BCC surface mine. BCC periodically assesses the adequacy of the reclamation trust fund and its estimate of future reclamation costs. To ensure that the reclamation trust fund maintains adequate reserves, BCC has the ability to, and does, add a per-ton surcharge to coal sales, all of which are made to the

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Jim Bridger plant. Because of the existence of the fund and the ability to apply a per-ton surcharge, the estimated fair value of this guarantee is minimal.

In May 2019, the state of Wyoming enacted legislation that limits a mine operator's maximum amount of self-bonding. Idaho Power and the co-owners of BCC have until November 2020 to comply with the new regulations, which would reduce the portion of Idaho Power's guarantee of reclamation activities and obligations at BCC that Idaho Power is allowed to self-bond and require Idaho Power to acquire a surety bond, or provide other collateral, to secure the remaining portion of its guarantee. As of the date of this report, Idaho Power expects that the cost of a surety bond will be immaterial to IDACORP's and Idaho Power's consolidated financial statements.

IDACORP and Idaho Power enter into financial agreements and power purchase and sale agreements that include indemnification provisions relating to various forms of claims or liabilities that may arise from the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated. IDACORP and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities. As of ~~September 30, 2020,~~March 31, 2021, the companies believe the likelihood is remote that IDACORP or Idaho Power would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnification obligations. Neither IDACORP nor Idaho Power has recorded any liability on their respective condensed consolidated balance sheets with respect to these indemnification obligations.

9.8. CONTINGENCIES

IDACORP and Idaho Power have in the past and expect in the future to become involved in various claims, controversies, disputes, and other contingent matters, some of which involve litigation and regulatory or other contested proceedings. The ultimate resolution and outcome of litigation and regulatory proceedings is inherently difficult to determine, particularly where (a) the remedies or penalties sought are indeterminate, (b) the proceedings are in the early stages or the substantive issues have not been well developed, or (c) the matters involve complex or novel legal theories or a large number of parties. In accordance with applicable accounting guidance, IDACORP and Idaho Power, as applicable, establish an accrual for legal proceedings when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. If the loss contingency at issue is not both probable and reasonably estimable, IDACORP and Idaho Power do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. As of the date of this report, IDACORP's and Idaho Power's accruals for loss contingencies are not material to their financial statements as a whole; however, future accruals could be material in a given period. IDACORP's and Idaho Power's determination is based on currently available information, and estimates presented in financial statements and other financial disclosures involve significant judgment and may be subject to significant uncertainty.

IDACORP and Idaho Power are parties to legal claims and legal, tax, and regulatory actions and proceedings in the ordinary course of business and, as noted above, record an accrual for associated loss contingencies when they are probable and

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~~reasonably estimable.~~ In connection with its utility operations, Idaho Power is subject to claims by individuals, entities, and governmental agencies for damages for alleged personal injury, property damage, and economic losses relating to Idaho Power’s provision of electric service and the operation of its generation, transmission, and distribution facilities. Some of those claims relate to ~~electrical contacts,~~personal injury, service quality and business interruption, property damage, and wildfires. In recent years, utilities in the western United States have been subject to significant liability for personal injury, loss of life, property damage, trespass, and economic losses, and in some cases, punitive damages and criminal charges and fines and penalties, associated with wildfires that originated from utility property, most commonly transmission and distribution lines. In recent years, Idaho Power has regularly received claims by both governmental agencies and private landowners for damages for fires allegedly originating from Idaho Power’s transmission and distribution system. As of the date of this report, the companies believe that resolution of existing claims will not have a material adverse effect on their respective consolidated financial statements. Idaho Power is also actively monitoring various pending environmental regulations and executive orders related to environmental matters that may have a significant impact on its future ~~operations.~~operations and compliance costs. Given uncertainties regarding the outcome, timing, and compliance plans for these environmental matters, Idaho Power is unable to estimate the financial impact of these regulations.

~~10.~~9. BENEFIT PLANS

Idaho Power has a noncontributory defined benefit pension plan (pension plan) and two nonqualified defined benefit plans for certain senior management employees called the Security Plan for Senior Management Employees I and Security Plan for Senior Management Employees II (together, SMSP). Idaho Power also has a nonqualified defined benefit pension plan for directors that was frozen in 2002. Remaining vested benefits from that plan are included with the SMSP in the disclosures below. The benefits under the pension plan are based on years of service and the employee’s final average earnings. Idaho Power also maintains a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers all employees who were enrolled in the active-employee group plan at the time of retirement as well as their spouses and

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qualifying dependents. The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the three months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands).


		Pension Plan				SMSP				Postretirement Benefits				Total					Pension Plan				SMSP				Postretirement Benefits				Total
		2020		2019		2020		2019		2020		2019		2020		2019			2021		2020		2021		2020		2021		2020		2021		2020
Service cost	Service cost	$	10,747	$	8,516	$	54	$	(46)	$	258	$	213	$	11,059	$	8,683	Service cost	$	13,408	$	10,915	$	203	$	53	$	353	$	274	$	13,964	$	11,242
Interest cost	Interest cost	10,004		10,578		1,087		1,143		623		748		11,714		12,469		Interest cost	9,203		10,018		889		1,088		528		614		10,620		11,720
Expected return on plan assets	Expected return on plan assets	(14,060)		(12,156)		0		0		(601)		(555)		(14,661)		(12,711)		Expected return on plan assets	(16,021)		(14,030)		0		0		(601)		(605)		(16,622)		(14,635)
Amortization of prior service cost	Amortization of prior service cost	1		1		73		24		11		11		85		36		Amortization of prior service cost	2		2		74		72		12		12		88		86
Amortization of net loss	Amortization of net loss	4,331		3,391		933		634		0		0		5,264		4,025		Amortization of net loss	5,673		4,367		1,051		934		0		0		6,724		5,301
Net periodic benefit cost	Net periodic benefit cost	11,023		10,330		2,147		1,755		291		417		13,461		12,502		Net periodic benefit cost	12,265		11,272		2,217		2,147		292		295		14,774		13,714
Regulatory deferral of net periodic benefit cost(1)	Regulatory deferral of net periodic benefit cost(1)	(10,511)		(9,845)		—		—		—		—		(10,511)		(9,845)		Regulatory deferral of net periodic benefit cost(1)	(11,695)		(10,742)		—		—		—		—		(11,695)		(10,742)
Previously deferred pension costs recognized(1)	Previously deferred pension costs recognized(1)	4,288		4,288		—		—		—		—		4,288		4,288		Previously deferred pension costs recognized(1)	4,288		4,288		—		—		—		—		4,288		4,288
Net periodic benefit cost recognized for financial reporting(1)(2)	Net periodic benefit cost recognized for financial reporting(1)(2)	$	4,800	$	4,773	$	2,147	$	1,755	$	291	$	417	$	7,238	$	6,945	Net periodic benefit cost recognized for financial reporting(1)(2)	$	4,858	$	4,818	$	2,217	$	2,147	$	292	$	295	$	7,367	$	7,260

(1) Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, the Idaho portion of net periodic benefit cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.

(2) Of total net periodic benefit cost recognized for financial reporting, ~~$4.3~~$4.8 million and ~~$4.2~~$4.3 million, respectively, were recognized in "Other operations and maintenance" and ~~$3.0~~$2.6 million and ~~$2.7~~$3.0 million, respectively, were recognized in "Other expense, net" on the condensed consolidated statements of income of the companies for the three months ended ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020.

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~~The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the nine months ended September 30, 2020 and 2019 (in thousands).~~

Pension Plan SMSP Postretirement
Benefits Total
2020 2019 2020 2019 2020 2019 2020 2019
Service cost $ 32,240 $ 25,546 $ 160 $ (136) $ 772 $ 640 $ 33,172 $ 26,050
Interest cost 30,010 31,734 3,262 3,432 1,870 2,242 35,142 37,408
Expected return on plan assets (42,179) (36,467) 0 0 (1,803) (1,665) (43,982) (38,132)
Amortization of prior service cost 4 4 218 72 35 35 257 111
Amortization of net loss 12,994 10,173 2,800 1,900 0 0 15,794 12,073
Net periodic benefit cost 33,069 30,990 6,440 5,268 874 1,252 40,383 37,510
Regulatory deferral of net periodic benefit cost(1)
(31,532) (29,534) — — — — (31,532) (29,534)
Previously deferred pension costs recognized(1)
12,865 12,865 — — — — 12,865 12,865
Net periodic benefit cost recognized for financial reporting(1)(2)
$ 14,402 $ 14,321 $ 6,440 $ 5,268 $ 874 $ 1,252 $ 21,716 $ 20,841

~~(1) Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which~~ Idaho ~~Power operates. Under IPUC order, the Idaho portion of net periodic benefit cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.~~

(2) Of total net periodic benefit cost recognized for financial reporting, $12.8 million and $12.6 million, respectively, were recognized in "Other operations and maintenance" and $8.9 million and $8.2 million, respectively, were recognized in "Other expense, net" on the condensed consolidated statements of income of the companies for the nine months ended September 30, 2020 and 2019.

~~During the nine months ended September 30, 2020, Idaho Power~~Power's minimum required contribution to be made ~~$40 million of contributions~~ to its defined benefit pension plan during 2021 is estimated to be $4 million and during the three months ended March 31, 2021, Idaho Power made 0 contributions. In April 2021, Idaho Power made a $10 million contribution. Idaho Power is considering contributing up to an additional $30 million to its defined benefit pension plan during 2021 in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions and to mitigate the cost of being in an underfunded position. ~~Idaho Power has no further minimum contribution requirement to its defined benefit pension plan in 2020.~~ The primary impact of pension contributions is on the timing of cash flows, as the timing of cost recovery lags behind contributions.

In March 2021, the American Rescue Plan Act of 2021 (American Rescue Plan) was signed into law, which included changes to the funding rules for single employer pension plans. The American Rescue Plan lowered the minimum funding requirements by revising liability discount rates and by lengthening the period over which unfunded liabilities must be amortized. Idaho Power is evaluating the potential impacts of the American Rescue Plan, but as of the date of this report does not believe it will materially affect Idaho Power's near-term pension contribution plans.

Idaho Power also has an Employee Savings Plan that complies with Section 401(k) of the Internal Revenue Code and covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the Employee Savings Plan.

~~11.~~10. DERIVATIVE FINANCIAL INSTRUMENTS

Commodity Price Risk

Idaho Power is exposed to market risk relating to electricity, natural gas, and other fuel commodity prices, all of which are heavily influenced by supply and demand. Market risk may be influenced by market participants’ nonperformance of their contractual obligations and commitments, which affects the supply of or demand for the commodity. Idaho Power uses derivative instruments, such as physical and financial forward contracts, for both electricity and fuel to manage the risks relating to these commodity price exposures. The primary objectives of Idaho Power’s energy purchase and sale activity are to meet the demand of retail electric customers, maintain appropriate physical reserves to ensure reliability, and make economic use of temporary surpluses that may develop.

All of Idaho Power's derivative instruments have been entered into for the purpose of economically hedging forecasted purchases and sales, though none of these instruments have been designated as cash flow hedges. Idaho Power offsets fair value amounts recognized on its balance sheet and applies collateral related to derivative instruments executed with the same counterparty under the same master netting agreement. Idaho Power does not offset a counterparty's current derivative contracts with the counterparty's long-term derivative contracts, although Idaho Power's master netting arrangements would allow current and long-term positions to be offset in the event of default. Also, in the event of default, Idaho Power's master netting arrangements would allow for the offsetting of all transactions executed under the master netting arrangement. These types of

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transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit). These types of transactions are excluded from the offsetting presented in the derivative fair value and offsetting table that follows.

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The table below presents the gains and losses on derivatives not designated as hedging instruments for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands).


				Gain/(Loss) on Derivatives Recognized in Income(1)															Gain/(Loss) on Derivatives Recognized in Income(1)
		Location of Realized Gain/(Loss) on Derivatives Recognized in Income		Three months ended September 30,						Nine months ended September 30,							Location of Realized Gain/(Loss) on Derivatives Recognized in Income		Three months ended March 31,
			2020		2019			2020			2019							2021		2020
Financial swaps	Financial swaps		Operating revenues		$	1,039		$	3,693		$	2,173		$	904	Financial swaps		Operating revenues		$	0		$	826
Financial swaps	Financial swaps	Purchased power		(2,264)			(2,981)			(3,579)			(2,294)	Financial swaps			Purchased power		249			(190)
Financial swaps	Financial swaps	Fuel expense		(1,115)			(815)			(4,032)			11,587	Financial swaps			Fuel expense		733			(2,848)

Forward contracts	Forward contracts	Operating revenues		229			106			349			170	Forward contracts			Operating revenues		47			79
Forward contracts	Forward contracts	Purchased power		(198)			(106)			(313)			(170)	Forward contracts			Purchased power		(47)			(76)
Forward contracts	Forward contracts	Fuel expense		(6)			191			(25)			607	Forward contracts			Fuel expense		(1)			(19)

(1) Excludes unrealized gains or losses on derivatives, which are recorded on the balance sheet as regulatory assets or regulatory liabilities.

Settlement gains and losses on electricity swap contracts are recorded on the income statement in operating revenues or purchased power depending on the forecasted position being economically hedged by the derivative contract. Settlement gains and losses on contracts for natural gas are reflected in fuel expense. Settlement gains and losses on diesel derivatives are recorded in other operations and maintenance expense. See Note 1211 - "Fair Value Measurements" for additional information concerning the determination of fair value for Idaho Power’s assets and liabilities from price risk management activities.

Credit Risk

At ~~September 30, 2020,~~March 31, 2021, Idaho Power did not have material credit risk exposure from financial instruments, including derivatives. Idaho Power monitors credit risk exposure through reviews of counterparty credit quality, corporate-wide counterparty credit exposure, and corporate-wide counterparty concentration levels. Idaho Power manages these risks by establishing credit and concentration limits on transactions with counterparties and requiring contractual guarantees, cash deposits, or letters of credit from counterparties or their affiliates, as deemed necessary. Idaho Power’s physical power, physical gas, and financial transactions are generally under standardized industry contracts. These contracts contain adequate assurance clauses requiring collateralization if a counterparty has debt that is downgraded below investment grade by at least one rating agency.

Credit-Contingent Features

Certain Idaho Power derivative instruments contain provisions that require Idaho Power's unsecured debt to maintain an investment grade credit rating from Moody's Investors Service and Standard & Poor's Ratings Services. If Idaho Power's unsecured debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at ~~September 30, 2020,~~March 31, 2021, was ~~$0.3~~$0.4 million. Idaho Power posted 0$0.8 million of cash collateral related to this amount. If the credit-risk-related contingent features underlying these agreements were triggered on ~~September 30, 2020,~~March 31, 2021, Idaho Power would have been required to pay or post collateral to its counterparties up to an additional ~~$4.6~~$4.8 million to cover the open liability positions as well as completed transactions that have not yet been paid.

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Derivative Instrument Summary

The table below presents the fair values and locations of derivative instruments not designated as hedging instruments recorded on the balance sheets and reconciles the gross amounts of derivatives recognized as assets and as liabilities to the net amounts presented in the balance sheets at ~~September 30, 2020,~~March 31, 2021 and December 31, ~~2019~~2020 (in thousands).

Asset Derivatives Liability Derivatives
Balance Sheet Location Gross Fair Value Amounts Offset Net Assets Gross Fair Value Amounts Offset Net Liabilities
September 30, 2020
Current:
Financial swaps Other current assets $ 3,270 $ (817) (1) $ 2,453 $ 65 $ (65) $ 0
Financial swaps Other current liabilities 6 (6) 0 152 (6) 146
Forward contracts Other current liabilities 0 0 0 24 0 24
Long-term:
Financial swaps Other assets 111 (23) 88 23 (23) 0
Total $ 3,387 $ (846) $ 2,541 $ 264 $ (94) $ 170
December 31, 2019
Current:
Financial swaps Other current assets $ 2,426 $ (2,034) $ 392 $ 2,034 $ (2,034) $ 0
Financial swaps Other current liabilities 134 (134) 0 924 (134) 790
Forward contracts Other current assets 13 0 13 0 0 0
Forward contracts Other current liabilities 0 0 0 32 0 32
Long-term:
Financial swaps Other liabilities 3 (3) 0 27 (3) 24
Total $ 2,576 $ (2,171) $ 405 $ 3,017 $ (2,171) $ 846


		Asset Derivatives						Liability Derivatives
	Balance Sheet Location	Gross Fair Value		Amounts Offset		Net Assets		Gross Fair Value		Amounts Offset			Net Liabilities

March 31, 2021
Current:
Financial swaps	Other current assets	$	2,958	$	(198)	$	2,760	$	198	$	(198)		$	0


Forward contracts	Other current liabilities	0		0		0		50		0			50
Long-term:
Financial swaps	Other assets	164		(95)		69		95		(95)			0
Financial swaps	Other liabilities	2		(2)		0		46		(2)			44

Total		$	3,124	$	(295)	$	2,829	$	389	$	(295)		$	94

December 31, 2020
Current:
Financial swaps	Other current assets	$	2,028	$	(36)	$	1,992	$	36	$	(36)		$	0
Financial swaps	Other current liabilities	187		(187)		0		786		(652)		(1)	134
Forward contracts	Other current assets	5		(2)		3		2		(2)			0
Forward contracts	Other current liabilities	3		(3)		0		13		(3)			10
Long-term:

Financial swaps	Other liabilities	40		(40)		0		56		(56)		(1)	0

Total		$	2,263	$	(268)	$	1,995	$	893	$	(749)		$	144

(1) Current ~~asset~~and long-term liability derivative amounts offset include ~~$0.8~~$0.5 million and $16 thousand of collateral ~~payable for the period ended September 30, 2020.~~receivable at December 31, 2020, respectively.

The table below presents the volume of derivative commodity forward contracts and swaps outstanding at ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands of units).


			September 30,				March 31,
Commodity	Commodity	Units	2020	2019	Commodity	Units	2021	2020
Electricity purchases	Electricity purchases	MWh	113	109	Electricity purchases	MWh	155	136
Electricity sales	Electricity sales	MWh	0	10	Electricity sales	MWh	0	125
Natural gas purchases	Natural gas purchases	MMBtu	7,930	7,798	Natural gas purchases	MMBtu	10,106	12,220
Natural gas sales	Natural gas sales	MMBtu	775	0	Natural gas sales	MMBtu	78	375

~~12.~~11. FAIR VALUE MEASUREMENTS

IDACORP and Idaho Power have categorized their financial instruments into a three-level fair value hierarchy, based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded on the condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

• Level 1: Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that IDACORP and Idaho Power have the ability to access.

• Level 2: Financial assets and liabilities whose values are based on the following:

a) quoted prices for similar assets or liabilities in active markets;

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~~a) quoted prices for similar assets or liabilities in active markets;~~

b) quoted prices for identical or similar assets or liabilities in non-active markets;

c) pricing models whose inputs are observable for substantially the full term of the asset or liability; and

d) pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

IDACORP and Idaho Power Level 2 inputs are based on quoted market prices adjusted for location using corroborated, observable market data.

• Level 3: Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

IDACORP’s and Idaho Power’s assessment of a particular input's significance to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. An item recorded at fair value is reclassified among levels when changes in the nature of valuation inputs cause the item to no longer meet the criteria for the level in which it was previously categorized. There were 0 transfers between levels or material changes in valuation techniques or inputs during the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021.

The table below presents information about IDACORP’s and Idaho Power’s assets and liabilities measured at fair value on a recurring basis as of ~~September 30, 2020,~~March 31, 2021, and December 31, ~~2019~~2020 (in thousands).


		September 30, 2020								December 31, 2019									March 31, 2021								December 31, 2020
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:	Assets:																	Assets:
Money market funds	Money market funds																	Money market funds
IDACORP(1)	IDACORP(1)	$	30,682	$	0	$	0	$	30,682	$	64,173	$	0	$	0	$	64,173	IDACORP(1)	$	43,026	$	0	$	0	$	43,026	$	56,048	$	0	$	0	$	56,048
Idaho Power	Idaho Power	56,798		0		0		56,798		26,510		0		0		26,510		Idaho Power	20,262		0		0		20,262		40,038		0		0		40,038
Derivatives	Derivatives	2,541		0		0		2,541		392		13		0		405		Derivatives	2,829		0		0		2,829		1,995		0		0		1,995
Equity securities	Equity securities	42,401		0		0		42,401		42,738		0		0		42,738		Equity securities	49,077		0		0		49,077		50,733		0		0		50,733
Liabilities:	Liabilities:																	Liabilities:
Derivatives	Derivatives	146		24		0		170		814		32		0		846		Derivatives	44		50		0		94		134		10		0		144

(1) Holding company only. Does not include amounts held by Idaho Power.

Idaho Power’s derivatives are contracts entered into as part of its management of loads and resources. Electricity derivatives are valued on the Intercontinental Exchange (ICE) with quoted prices in an active market. Natural gas and diesel derivatives are valued using New York Mercantile Exchange (NYMEX) and ICE pricing, adjusted for location basis, which are also quoted under NYMEX and ICE pricing. Equity securities consist of employee-directed investments related to an executive deferred compensation plan and actively traded money market and exchange traded funds related to the SMSP. The investments are measured using quoted prices in active markets and are held in a Rabbi trust.

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The table below presents the carrying value and estimated fair value of financial instruments that are not reported at fair value, as of ~~September 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, using available market information and appropriate valuation methodologies (in thousands).


		September 30, 2020				December 31, 2019					March 31, 2021				December 31, 2020
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
IDACORP	IDACORP									IDACORP
Assets:	Assets:									Assets:
Notes receivable(1)	Notes receivable(1)	$	3,804	$	3,804	$	3,804	$	3,804	Notes receivable(1)	$	3,804	$	3,804	$	3,804	$	3,804
Liabilities:	Liabilities:									Liabilities:
Long-term debt, including current portion(1)	Long-term debt, including current portion(1)	2,000,358		2,440,622		1,836,659		2,083,931		Long-term debt, including current portion(1)	2,000,471		2,270,074		2,000,414		2,466,967
Idaho Power	Idaho Power									Idaho Power
Liabilities:	Liabilities:									Liabilities:
Long-term debt, including current portion(1)	Long-term debt, including current portion(1)	2,000,358		2,440,622		1,836,659		2,083,931		Long-term debt, including current portion(1)	2,000,471		2,270,074		2,000,414		2,466,967

(1) Notes receivable and long-term debt are categorized as Level 3 and Level 2, respectively, of the fair value hierarchy, as defined earlier in this Note 1211 - "Fair Value Measurements."

Notes receivable are related to Ida-West and are valued based on unobservable inputs, including ~~discounted~~forecasted cash flows, which are partially based on ~~forecasted~~expected hydropower conditions. Long-term debt is not traded on an exchange and is valued using quoted rates for similar debt in active markets. Carrying values for cash and cash equivalents, deposits, customer and other receivables, notes payable, accounts payable, interest accrued, and taxes accrued approximate fair value.

~~13.~~12. SEGMENT INFORMATION

IDACORP’s only reportable segment is utility operations. The utility operations segment’s primary source of revenue is the regulated operations of Idaho Power. Idaho Power’s regulated operations include the generation, transmission, distribution, purchase, and sale of electricity. This segment also includes income from IERCo, a wholly-owned subsidiary of Idaho Power that is also subject to regulation and is a one-third owner of BCC, an unconsolidated joint venture.

IDACORP’s other operating segments are below the quantitative and qualitative thresholds for reportable segments and are included in the "All Other" category in the table below. This category is comprised of IFS’s investments in affordable housing ~~developments~~ and ~~historic rehabilitation~~other real estate tax credit projects, Ida-West’s joint venture investments in small hydropower generation projects, and IDACORP’s holding company expenses.

The table below summarizes the segment information for IDACORP’s utility operations and the total of all other segments, and reconciles this information to total enterprise amounts (in thousands).


		Utility Operations		All Other		Eliminations		Consolidated Total			Utility Operations		All Other		Eliminations		Consolidated Total
Three months ended September 30, 2020:
Three months ended March 31, 2021:										Three months ended March 31, 2021:
Revenues	Revenues	$	424,170	1,091		$	0	$	425,261	Revenues	$	315,568	486		$	0	$	316,054
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	100,389		1,642		0		102,031		Net income attributable to IDACORP, Inc.	44,369		462		0		44,831
Total assets as of September 30, 2020		6,769,567		247,753		(87,161)		6,930,159
Three months ended September 30, 2019:
Total assets as of March 31, 2021										Total assets as of March 31, 2021	6,893,076		244,710		(59,485)		7,078,301
Three months ended March 31, 2020:										Three months ended March 31, 2020:
Revenues	Revenues	$	385,028	$	1,292	$	0	$	386,320	Revenues	$	290,488	$	520	$	0	$	291,008
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	87,979		1,897		0		89,876		Net income attributable to IDACORP, Inc.	36,776		714		0		37,490
Nine months ended September 30, 2020:
Revenues		$	1,032,324	$	2,711	$	0	$	1,035,035
Net income attributable to IDACORP, Inc.		196,089		3,821		0		199,910
Nine months ended September 30, 2019:
Revenues		$	1,050,574	$	2,961	$	0	$	1,053,535
Net income attributable to IDACORP, Inc.		180,740		4,978		0		185,718

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~~14.~~13. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME

The table below presents changes in components of accumulated other comprehensive income (AOCI), net of tax, during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands). Items in parentheses indicate charges to AOCI.


		Defined Benefit Pension Items				Defined Benefit Pension Items					Defined Benefit Pension Items
		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Balance at beginning of period	Balance at beginning of period	$	(34,790)	$	(21,868)	$	(36,284)	$	(22,844)	Balance at beginning of period	$	(43,358)	$	(36,284)
Amounts reclassified out of AOCI	Amounts reclassified out of AOCI	747		488		2,241		1,464		Amounts reclassified out of AOCI	836		747
Balance at end of period	Balance at end of period	$	(34,043)	$	(21,380)	$	(34,043)	$	(21,380)	Balance at end of period	$	(42,522)	$	(35,537)

The table below presents amounts reclassified out of components of AOCI and the income statement location of those amounts reclassified during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands). Items in parentheses indicate increases to net income.


		Amount Reclassified from AOCI									Amount Reclassified from AOCI
Details About AOCI	Details About AOCI	Three months ended September 30,				Nine months ended September 30,				Details About AOCI	Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Amortization of defined benefit pension items(1)	Amortization of defined benefit pension items(1)									Amortization of defined benefit pension items(1)
Prior service cost	Prior service cost	$	73	$	24	$	218	$	72	Prior service cost	$	74	$	72
Net loss	Net loss	933		634		2,800		1,900		Net loss	1,051		934
Total before tax	Total before tax	1,006		658		3,018		1,972		Total before tax	1,125		1,006
Tax benefit(2)	Tax benefit(2)	(259)		(170)		(777)		(508)		Tax benefit(2)	(289)		(259)

Total reclassification for the period, net of tax	Total reclassification for the period, net of tax	$	747	$	488	$	2,241	$	1,464	Total reclassification for the period, net of tax	$	836	$	747

(1) Amortization of these items is included in IDACORP's condensed consolidated income statements in other operating expenses and in Idaho Power's condensed consolidated statements of income in other expense, net.

(2) The tax benefit is included in income tax expense in the condensed consolidated statements of income of both IDACORP and Idaho Power.

~~15.~~14. CHANGES IN IDAHO POWER RETAINED EARNINGS

The table below presents changes in Idaho Power retained earnings during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands).


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Balance at beginning of period	Balance at beginning of period	$	1,531,566	$	1,438,019	$	1,503,805	$	1,409,245	Balance at beginning of period	$	1,599,155	$	1,503,805
Net income	Net income	100,389		87,979		196,089		180,740		Net income	44,369		36,776
Dividends to parent	Dividends to parent	(33,959)		(31,932)		(101,898)		(95,919)		Dividends to parent	(35,941)		(33,952)
Balance at end of period	Balance at end of period	$	1,597,996	$	1,494,066	$	1,597,996	$	1,494,066	Balance at end of period	$	1,607,583	$	1,506,629

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of IDACORP, Inc.

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of IDACORP, Inc. and subsidiaries (the “Company”) as of ~~September 30, 2020,~~March 31, 2021, the related condensed consolidated statements of income, comprehensive income, ~~and~~ equity ~~for the three-month~~ and ~~nine-month periods ended September 30, 2020 and 2019, and of~~ cash flows for the ~~nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, ~~2019,~~2020, and the related consolidated statements of income, comprehensive income, equity, and cash flows for the year then ended (not presented herein); and in our report dated February ~~20, 2020,~~18, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, ~~2019,~~2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

Boise, Idaho

~~October~~April 29, ~~2020~~2021

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Idaho Power Company

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of Idaho Power Company and subsidiary (the “Company”) as of ~~September 30, 2020,~~March 31, 2021, the related condensed consolidated statements of income, ~~and~~ comprehensive income, ~~for the three-month~~ and ~~nine-month periods ended September 30, 2020 and 2019, and of~~ cash flows for the ~~nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, ~~2019,~~2020, and the related consolidated statements of income, comprehensive income, retained earnings, and cash flows for the year then ended (not presented herein); and in our report dated February ~~20, 2020,~~18, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, ~~2019,~~2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

/s/ DELOITTE & TOUCHE LLP

Boise, Idaho

~~October~~April 29, ~~2020~~2021

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

In Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in this report, the general financial condition and results of operations for IDACORP, Inc. and its subsidiaries (collectively, IDACORP) and Idaho Power Company and its subsidiary (collectively, Idaho Power) are discussed. While reading the MD&A, please refer to the accompanying condensed consolidated financial statements of IDACORP and Idaho Power. Also refer to "Cautionary Note Regarding Forward-Looking Statements" in this report for important information regarding forward-looking statements made in this MD&A and elsewhere in this report. This discussion updates the MD&A included in IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019, (2019~~2020 (2020 Annual Report), and should also be read in conjunction with the information in that report. The results of operations for an interim period generally will not be indicative of results for the full year, particularly in light of the seasonality of Idaho Power's sales volumes, as discussed below.

INTRODUCTION

IDACORP is a holding company formed in 1998 whose principal operating subsidiary is Idaho Power. IDACORP’s common stock is listed and trades on the New York Stock Exchange under the trading symbol "IDA". Idaho Power is an electric utility whose rates and other matters are regulated by the Idaho Public Utilities Commission (IPUC), Public Utility Commission of Oregon (OPUC), and Federal Energy Regulatory Commission (FERC). Idaho Power generates revenues and cash flows primarily from the sale and distribution of electricity to customers in its Idaho and Oregon service areas, as well as from the wholesale sale and transmission of electricity. Idaho Power experiences its highest retail energy sales during the summer irrigation and cooling season, with a lower peak in the winter that generally results from heating demand.

Idaho Power is the parent of Idaho Energy Resources Co. (IERCo), a joint venturer in Bridger Coal Company (BCC), which mines and supplies coal to the Jim Bridger generating plant (Jim Bridger plant) owned in part by Idaho Power. IDACORP’s other significant subsidiaries include IDACORP Financial Services, Inc., an investor in affordable housing and other real estate tax credit investments, and Ida-West Energy Company, an operator of small hydropower generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

EXECUTIVE OVERVIEW

Management's Outlook and Company Initiatives

In the ~~2019~~2020 Annual Report, IDACORP's and Idaho Power's management included a brief overview of their business strategies for the companies for ~~2020~~2021 and beyond, under the heading "Executive Overview" in the MD&A. As of the date of this report, management's outlook and strategy remain consistent with that discussion. Most notably:

•Idaho Power continues to execute on its four strategic ~~areas:~~areas and initiatives: growing financial strength, improving Idaho Power's core business, enhancing Idaho Power's brand, and focusing on safety and employee engagement.

•Idaho Power continues to expect positive customer growth in its service area and continues to participate in and support state and local economic development initiatives aimed at responsible and sustainable growth. During the first ~~nine~~three months of ~~2020,~~2021, Idaho Power's customer count grew by ~~over 11,300~~nearly 4,200 customers, and for the twelve months ended ~~September 30, 2020,~~March 31, 2021, the customer growth rate was ~~2.6~~2.9 percent.

•Idaho Power anticipates substantial capital investments, with expected total capital expenditures of approximately ~~$1.6~~$2.0 billion over the five-year period from ~~2020~~2021 (including the expenditures incurred so far in ~~2020)~~2021) through ~~2024.~~

•IDACORP increased its quarterly common stock dividend from $0.67 per share to $0.71 per share, as a part of a 137 percent increase in quarterly dividends approved over the last nine years, which moves IDACORP into its target payout ratio of between 60 and 70 percent of sustainable IDACORP earnings.

•In April and June 2020, respectively, Idaho Power issued $230 million in principal amount of 4.20 percent first mortgage bonds due in 2048, and $80 million in principal amount of 1.90 percent first mortgage bonds due in 2030. Idaho Power used a portion of the bond proceeds to redeem outstanding debt. Idaho Power believes the issuances help maintain its strong liquidity position enabling it to fund its ongoing operations, capital expenditures, and dividend payments.

•In October 2020, Idaho Power and the other co-owners of the coal-fired power plant in Boardman, Oregon, ceased operations at the plant in accordance with Idaho Power's planned path away from coal generation.2025.

•Idaho Power continues to focus on timely recovery of costs and earning a reasonable return on investment, including working to evaluate and ensure that its rate design and regulatory mechanisms more closely reflect the cost to provide electric service.

•Idaho Power is committed to continuing to provide reliable, affordable, safe service to its customers while furthering its environmental, social, and governance (ESG) initiatives, including the "Clean Today. Cleaner Tomorrow.®" goal to provide Idaho Power's customers with 100-percent clean energy by 2045, as well as water stewardship and environmental projects, and the company’s diversity, equity, and inclusion initiatives.

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Coronavirus (COVID-19) Response and Impacts

In response to the COVID-19 ~~public health crisis,~~pandemic, in ~~March~~ 2020 Idaho Power implemented its emergency management, business continuity, and enterprise pandemic plans. Idaho Power's internal emergency management team responded in accordance with the plans in an effort to ensure Idaho Power continues to provide reliable service to its customers during the pandemic. Idaho Power's provision of electricity to customers through its power supply, transmission, and distribution operations, as of the date of this

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report, continues largely uninterrupted.

~~Idaho Power has taken proactive steps during the crisis to protect employees, customers, the general public, and~~ For more information about Idaho Power's electrical system. In March 2020, Idaho Power closed all of its operating facilities to the public, upgraded information technology capabilities to facilitate remote working for over half of its workforce, eliminated substantially all in-person meetings and non-essential work travel, reviewed its supply chain for critical items, continued monitoring of cyber and physical security threats, tested critical information technology systems for business continuity purposes, enhanced cleaning procedures at all facilities, and encouraged employees to practice responsible social distancing and other effective prevention and safety measures. Idaho Power has a small number of highly specialized employees who are trained to operate the power grid and critical generation facilities. Idaho Power has taken actions to help ensure the health and availability of those essential employees, including performing health screenings, alternating schedules, segregating employees into separate facilities, and limiting interaction. As of the date of this report, most of Idaho Power's office workforce continues to work remotely.

Also in March 2020, in consideration of the COVID-19 public health crisis, Idaho Power temporarily suspended disconnections and late fees for late payment or non-payment. As approved by the IPUC in July 2020, Idaho Power resumed disconnections and accruing late fees for customers in its Idaho service area beginning in early August 2020. Commercial customers have been particularly affected by the economic impacts of the COVID-19 public health crisis, as the response to the crisis disrupted operations of many of those customers. As many of Idaho Power's larger commercial and industrial customers are in the agriculture and food-processing industry, COVID-19 has had a smaller impact on those customers given the importance of the food that they produce, and thus mitigated in part the overall energy usage decline from those customers. Irrigation customers have also been impacted to a lesser extent. While the COVID-19 crisis does not appear to have significantly affected wheeling revenues to date, to the extent economies of other states continue to be negatively affected by the COVID-19 crisis, transmission wheeling revenues could decrease due to overall decreases in energy loads in the western region of the U.S., impacting energy prices and overall market activity regionally. Overall, Idaho Power anticipates that the disruption of economic activities in its service area and global economic conditions created by the response to the COVID-19 ~~public health crisis could continue to negatively affect energy usage~~pandemic and ~~associated revenues from commercial and industrial customers and will continue to increase late payments and uncollectible account write-offs. In recognition~~the effects of ~~the economic impact,~~COVID-19 on Idaho Power, ~~increased its allowance for uncollectible receivables from $1.4 million at December 31, 2019, to $3.9 million at September 30, 2020, based on Idaho Power's estimate of the impact of the crisis.~~

In July 2020, the IPUC issued an order granting Idaho Power the authority to defer unanticipated, emergency-related expenses due to the COVID-19 public health crisis, net of any cost savings, for possible recovery through future rates. As of September 30, 2020, Idaho Power had recorded a $0.7 million regulatory asset for its estimate of unanticipated, emergency-related expenses, including higher bad debt expense, net of estimated savings. For additional information, see ~~Note 3~~Part II - ~~"Regulatory Matters" to the condensed consolidated financial statements included in this report.~~

As noted above, in April 2020 Idaho Power issued $230 million in principal amount of 4.20 percent first mortgage bonds due in 2048. The bonds were issued at a reoffer yield of 3.422 percent, which resulted in a net premium of 13.0 percent and net proceeds to Idaho Power of approximately $260 million. In June 2020, Idaho Power issued $80 million in principal amount of first mortgage bonds due in 2030. While Idaho Power expected to issue debt securities during 2020 unrelated and prior to the COVID-19 public health crisis, and has used some of the proceeds of the issuances for early retirement of debt, the net proceeds from the issuances provide Idaho Power with additional liquidity should the financial impacts of the COVID-19 public health crisis worsenItem 7 - "Executive Overview" in the ~~coming months or be even further prolonged.~~MD&A in the 2020 Annual Report.

As of the date of this report, Idaho Power is uncertain how long the COVID-19 ~~public health crisis~~pandemic will ~~last~~continue and how significantly it ~~will~~might ultimately impact its business operations, results of operations, cash flows, financial condition, or capital resources. For a discussion of certain risks to IDACORP and Idaho Power ~~are confronting~~ as a result of the ~~public health crisis,~~pandemic, see Part II - Item 1A - "Risk Factors" in ~~this report.~~the 2020 Annual Report.

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Summary of Financial Results

The following is a summary of Idaho Power's net income, net income attributable to IDACORP, and IDACORP's earnings per diluted share for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands, except earnings per share amounts):


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Idaho Power net income	Idaho Power net income	$	100,389	$	87,979	$	196,089	$	180,740	Idaho Power net income	$	44,369	$	36,776
Net income attributable to IDACORP, Inc.	Net income attributable to IDACORP, Inc.	$	102,031	$	89,876	$	199,910	$	185,718	Net income attributable to IDACORP, Inc.	$	44,831	$	37,490
Average outstanding shares – diluted		50,576		50,558		50,554		50,528
Weighted average outstanding shares – diluted										Weighted average outstanding shares – diluted	50,580		50,527
IDACORP, Inc. earnings per diluted share	IDACORP, Inc. earnings per diluted share	$	2.02	$	1.78	$	3.95	$	3.68	IDACORP, Inc. earnings per diluted share	$	0.89	$	0.74

The table below provides a reconciliation of net income attributable to IDACORP for the three ~~and nine~~ months ended ~~September 30, 2020,~~March 31, 2021, from the same period in ~~2019~~2020 (items are in millions and are before related income tax impact unless otherwise noted).

Three months ended Nine months ended
Net income attributable to IDACORP, Inc. - September 30, 2019 $ 89.9 $ 185.7
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms 3.9 10.8
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms 0.3 0.3
Idaho fixed cost adjustment (FCA) revenues (1.6) (0.1)
Retail revenues per megawatt-hour (MWh), net of associated power supply costs and power cost adjustment mechanisms
(0.2) (3.2)
Transmission wheeling-related revenues 4.4 (2.0)
Other operations and maintenance (O&M) expenses 4.4 7.3
Other changes in operating revenues and expenses, net (0.4) (1.3)
Increase in Idaho Power operating income 10.8 11.8
Non-operating income and expenses (0.8) 0.7
Income tax expense 2.4 2.8
Total increase in Idaho Power net income 12.4 15.3
Other IDACORP changes (net of tax) (0.3) (1.1)
Net income attributable to IDACORP, Inc. - September 30, 2020 $ 102.0 $ 199.9


	Three months ended
Net income attributable to IDACORP, Inc. - March 31, 2020		$	37.5
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms	3.7
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms	(1.3)
Idaho fixed cost adjustment (FCA) revenues	0.1
Retail revenues per megawatt-hour (MWh), net of associated power supply costs and power cost adjustment mechanisms	(0.4)
Transmission wheeling-related revenues	4.1

Other operations and maintenance (O&M) expenses	4.2

Other changes in operating revenues and expenses, net	(0.8)

Increase in Idaho Power operating income	9.6

Non-operating income and expenses	(0.5)

Income tax expense	(1.5)
Total increase in Idaho Power net income		7.6
Other IDACORP changes (net of tax)		(0.3)
Net income attributable to IDACORP, Inc. - March 31, 2021		$	44.8

~~Net Income - Third Quarter 2020~~

IDACORP's net income increased ~~$12.1~~$7.3 million for the ~~third~~first quarter of ~~2020~~2021 compared with the ~~third~~first quarter of ~~2019,~~2020, primarily due to higher net income at Idaho Power. Customer growth increased operating income by ~~$3.9~~$3.7 million in the ~~third~~first quarter of ~~2020~~2021 compared with the ~~third~~first quarter of ~~2019,~~2020, as the number of Idaho Power customers grew by approximately ~~14,700,~~16,700, or ~~2.6~~2.9 percent, during the twelve months ended ~~September 30, 2020. Higher~~March 31, 2021. Lower sales volumes on a per-customer basis ~~increased~~decreased operating income by ~~$0.3~~$1.3 million in the ~~third~~first quarter of 2021 compared with the first quarter of 2020, ~~compared with the third quarter of 2019,~~ as ~~higher~~lower usage per ~~residential and irrigation~~commercial customer was mostly offset by decreased usage per commercial customer. Residential customers used more energy for cooling due to warmer weather in Idaho Power's service area and residential customers spending more time at home due to the COVID-19 public health crisis, which increasedhigher usage per residential customer by 3 percent in the third quarter of 2020 compared with the third quarter of 2019. Also, less precipitation in Idaho Power's service area during the third quarter of 2020 compared with the same quarter in 2019 led to a one percent increase in usage per irrigation customer for those periods.customer. A decrease of 32 percent in usage per commercial customer in the ~~third~~first quarter of 2021 compared with the mostly pre-pandemic first quarter of 2020 was partly due to the negative impacts of COVID-19 on commercial customers' operations. Residential customers used more energy for heating due to colder weather in Idaho Power's service area, which contributed to a 1 percent increase in usage per residential customer in the first quarter of 2021 compared with the ~~third~~first quarter of 2019 was largely due to the economic impacts of COVID-19. The increase in sales volumes per residential customer was partially offset by the FCA mechanism (applicable to residential and small general service customers), which decreased revenues in the third quarter of 2020 by $1.6 million as compared with the third quarter of 2019.2020.

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During the ~~third~~first quarter of ~~2020,~~2021, transmission wheeling-related revenues increased ~~$4.4~~$4.1 million compared with the third quarter of 2019. Warmer weather in the southwest U.S. and California led to higher wholesale energy prices in those areas that increased wholesale energy market activity and wheeling volumes in the thirdfirst quarter of 2020 ~~compared with the third quarter of 2019. The~~due to an increase in wheeling volumes ~~was partially offset by~~and an ~~approximate 13 percent decrease~~increase in Idaho Power's open access transmission tariff (OATT) ~~rates during~~rates. Colder winter weather in the ~~period from October 1, 2019, to September 30, 2020,~~southwest United States increased wheeling volumes in the first quarter of 2021 compared with the first quarter of 2020. Also, Idaho Power's OATT rates were approximately 10 percent higher in ~~effect from October 1, 2018, to September 30, 2019.~~the first quarter of 2021 compared with the first quarter of 2020.

Other O&M expenses were ~~$4.4~~$4.2 million lower in the ~~third~~first quarter of 2021 compared with the first quarter of 2020, partially due to a difference in the timing of cloud seeding activities and cost savings initiatives at the jointly-owned coal plants. The decrease was also due to the October 2020 closure of Idaho Power's jointly-owned coal plant in Boardman, Oregon. A regulatory mechanism facilitating the recovery of costs related to the closure of the Boardman plant also reduced operating revenues by a corresponding amount in the first quarter of 2021 compared with the ~~third~~first quarter of ~~2019, partially due to Idaho Power's December 2019 exit from unit 1 of its jointly-owned North Valmy coal-fired power plant (North Valmy). Also,~~2020. In addition, COVID-19-related decreases in employee travel and training costs reduced other O&M expenses ~~decreased~~ in the ~~third~~first quarter of ~~2020~~2021 compared with the ~~third~~first quarter of ~~2019 as a result of a decrease in labor-related costs from lower performance-based variable compensation accruals.~~

2020.

The ~~decrease~~increase in income tax expense for the ~~third~~first quarter of ~~2020,~~2021, compared with the third quarter of 2019, was primarily due to the tax deduction for bond redemption costs incurred in the third quarter of 2020 and other plant-related income tax return adjustments, partially offset by statutory taxes on greater 2020 pre-tax income and lower excess deferred income tax reversal.

~~Net Income - Year-to-Date 2020~~

IDACORP's net income increased $14.2 million for the first nine months of 2020 compared with the first nine months of 2019, primarily due to higher net income at Idaho Power. Customer growth increased operating income by $10.8 million in the first nine months of 2020 compared with the first nine months of 2019. Higher sales volumes on a per-customer basis increased operating income by $0.3 million in the first nine months of 2020 compared with the first nine months of 2019, as higher usage per irrigation and residential customer was offset by lower usage per commercial customer largely due to the impacts of the COVID-19 health crisis. Less precipitation in the Idaho Power service area during the first nine months of 2020 compared with the same period in 2019 contributed to a 10 percent increase in usage per irrigation customer. Also, usage per residential customer increased by 1 percent during the first nine months of 2020 compared with the first nine months of 2019. Compared with the same periods in 2019, an increase in usage by residential customer for cooling purposes in the second and third quarters of 2020 due to warmer weather and COVID-19 was partially offset by lower usage from the first quarter of 2020, ~~caused by more moderate weather, which resulted in residential customers using less energy for heating during that period.~~

The net decrease in retail revenues per MWh decreased operating income by $3.2 million due to Idaho Power’s share of higher net power supply costs in the first nine months of 2020 compared with the first nine months of 2019. The Idaho-jurisdiction PCA mechanism includes a cost or benefit ratio that allocates the deviations in certain net power supply expenses between customers (95 percent) and Idaho Power (5 percent). In the first nine months of 2019, net power supply expenses were reduced by significant wholesale energy sales. Higher wholesale energy prices during the first nine months of 2019 led to greater wholesale energy sales by Idaho Power, of which 95 percent benefited customers and 5 percent benefited Idaho Power under the PCA mechanism and were the primary cause of the variance in net retail revenues per MWh between the comparison periods.

During the first nine months of 2020, transmission wheeling-related revenues decreased $2.0 million compared with the first nine months of 2019, due mostly to Idaho Power's open access transmission tariff rates decreasing approximately 13 percent during the period from October 1, 2019, to September 30, 2020, as compared with the rates in effect from October 1, 2018, to September 30, 2019, and to a lesser extent due to lower transmission loss settlement rates in the first nine months of 2020 compared with the first nine months of 2019. These rate decreases were offset partially by an increase in wheeling volumes mostly from the higher regional wholesale market activity during the third quarter of 2020 noted above.

Other O&M expenses were $7.3 million lower in the first nine months of 2020 compared with the first nine months of 2019, primarily due to the temporary deferral of certain maintenance projects at Idaho Power's jointly-owned thermal generation plants. The timing of these projects is discretionary, and Idaho Power expects these projects to be completed in 2021. Also, other O&M expenses decreased in the first nine months of 2020 compared with the first nine months of 2019 as a result of Idaho Power's December 2019 exit from participation in unit 1 of its North Valmy plant, and lower labor-related costs, as described above. As noted above, in July 2020, the IPUC issued an order granting Idaho Power the authority to defer unanticipated, emergency-related expenses due to the COVID-19 public health crisis, net of any cost savings, for possible recovery through future rates. As of September 30, 2020, Idaho Power had recorded a $0.7 million regulatory asset for its estimate of such costs, including higher bad debt expense, net of estimated savings in vehicle fuel, employee travel, and training. For additional information, see Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.

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~~The decrease in income tax expense for the nine months ended September 30, 2020, compared with the same period in 2019,~~ was primarily due to ~~the tax deduction for bond redemption costs incurred in the third quarter of 2020 and other plant-related income tax return adjustments, partially offset by statutory taxes on~~ greater ~~2020~~2021 pre-tax ~~income and lower excess deferred income tax reversal.~~income.

Overview of General Factors and Trends Affecting Results of Operations and Financial Condition

IDACORP's and Idaho Power's results of operations and financial condition are affected by a number of factors, and the impact of those factors is discussed in more detail below in this MD&A. To provide context for the discussion elsewhere in this report, some of the more notable factors are as follows:

•Regulation of Rates and Cost Recovery: The prices that Idaho Power is authorized to charge for its electric and transmission service is a critical factor in determining IDACORP's and Idaho Power's results of operations and financial condition. Those rates are established by state regulatory commissions and the FERC and are intended to allow Idaho Power an opportunity to recover its expenses and earn a reasonable return on investment. Idaho Power focuses on timely recovery of its costs through filings with its regulators, working to put in place innovative regulatory mechanisms, and on the prudent management of expenses and investments. Idaho Power has a regulatory settlement stipulation in Idaho that includes provisions for the accelerated amortization of certain tax credits to help achieve a minimum 9.4 percent Idaho-jurisdiction return on year-end equity (Idaho ROE). The settlement stipulation also provides for the potential sharing between Idaho Power and its Idaho customers of Idaho-jurisdictional earnings in excess of 10.0 percent of Idaho ROE. The settlement stipulation has no expiration date but the minimum Idaho ROE would revert back to 95 percent of the allowed return on equity in the next rate case. The specific terms of the settlement stipulation are described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2019~~2020 Annual Report. Idaho Power will continue to assess the need to file a general rate case to reset base rates but does not anticipate filing a rate case in the next twelve months.

•Economic Conditions and Loads: Economic conditions impact consumer demand for energy, revenues, collectability of accounts, the volume of wholesale energy sales, and the need to construct and improve infrastructure, purchase power, and implement programs to meet customer load demands. In recent years, Idaho Power has seen growth in the number of customers in its service area. Over the twelve months ended ~~September 30, 2020,~~March 31, 2021, Idaho Power's customer count grew by ~~2.6~~2.9 percent. Idaho Power expects its number of customers to continue to increase in the foreseeable future. Idaho Power expects that existing and sustained future customer growth will require Idaho Power to continue to enhance its distribution and transmission system infrastructure, including the Boardman-to-Hemingway project. That growth may also result in the need for Idaho Power to procure other new sources of energy and capacity to serve growing loads and to maintain system reliability. Idaho Power is analyzing options for potential energy and capacity resource procurement, while at the same time working on its 2021 Integrated Resources Plan. As noted above, Idaho Power's provision of electricity to customers through its power supply, transmission, and distribution operations continues largely uninterrupted despite the COVID-19 ~~crisis,~~pandemic, other than lower average usage by commercial customers ~~during~~since the ~~first nine months of 2020~~pandemic began compared with their usage before the ~~first nine months of 2019.~~pandemic.

In June 2019, Idaho Power released its 2019 Integrated Resource Plan (IRP), which was amended in October 2020. The load forecast assumptions Idaho Power used in the 2019 IRP are included in the table below. For comparison purposes, the analogous average annual growth rates used in the prior two IRPs are included.

5-Year Forecasted Annual Growth Rate 20-Year Forecasted Annual Growth Rate
Retail Sales
(Billed MWh) Annual Peak
(Peak Demand) Retail Sales
(Billed MWh) Annual Peak
(Peak Demand)
2019 IRP 1.3% 1.4% 1.0% 1.2%
2017 IRP 1.1% 1.6% 0.9% 1.4%
2015 IRP 1.5% 1.8% 1.2% 1.5%

•Weather Conditions: Weather and agricultural growing conditions have a significant impact on Idaho Power's energy sales. Relatively low and high temperatures result in greater energy use for heating and cooling, respectively. During the agricultural growing season, which in large part occurs during the second and third quarters, irrigation customers use electricity to operate irrigation pumps, and weather conditions can impact the timing and extent of use of those pumps. Idaho Power also has tiered rates and seasonal rates, which contribute to increased revenues during higher-load periods, most notably during the third quarter of each year when overall customer demand is highest. Much of the adverse or favorable impact of weather on sales of energy to residential and small commercial customers is mitigated

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through the Idaho FCA mechanism, which is described in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report.

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Further, as Idaho Power's hydropower facilities comprise over one-half of Idaho Power's nameplate generation capacity, precipitation levels impact the mix of Idaho Power's generation resources. When hydropower generation is reduced, Idaho Power must rely on more expensive generation sources and purchased power. When favorable hydropower generating conditions exist for Idaho Power, they also may exist for other Pacific Northwest hydropower facility operators, lowering regional wholesale market prices and impacting the revenue Idaho Power receives from wholesale energy sales. Much of the adverse or favorable impact of this volatility is addressed through the Idaho and Oregon power cost adjustment mechanisms. For ~~2020,~~2021, Idaho Power expects generation from its hydropower resources to be in the range of ~~6.5~~5.5 to ~~7.0~~7.5 million MWh, compared with ~~20-year~~ average total annual ~~hydropower~~ generation of ~~7.3~~approximately 7.7 million ~~MWh.~~MWh over the last 30 years.

•Rate Base Growth and Infrastructure Investment: As noted above, the rates established by the IPUC and OPUC are determined with the intent to provide an opportunity for Idaho Power to recover authorized operating expenses and depreciation and earn a reasonable return on “rate base.” Rate base is generally determined by reference to the original cost (net of accumulated depreciation) of utility plant in service and certain other assets, subject to various adjustments for deferred taxes and other items. Over time, rate base is increased by additions to utility plant in service and reduced by depreciation and retirement of utility plant and write-offs as authorized by the IPUC and OPUC. ~~In recent years,~~ Idaho Power ~~has been~~is pursuing significant enhancements to its utility infrastructure in an effort to maintain system reliability, ensure an adequate supply of electricity, and to provide service to new customers, including major ongoing transmission projects such as the Boardman-to-Hemingway and Gateway West projects. Idaho Power's existing hydropower and thermal generation facilities also require continuing upgrades and equipment replacement, and the company is undertaking a significant relicensing effort for the Hells Canyon Complex (HCC), its largest hydropower generation resource. Idaho Power intends to pursue timely inclusion of any significant completed capital projects into rate base as part of a future general rate case or other appropriate regulatory proceeding.

•Mitigation of Impact of Fuel and Purchased Power Expense: In addition to hydropower generation, Idaho Power relies significantly on natural gas and coal to fuel its generation facilities and on power purchases in the wholesale markets. Fuel costs are impacted by electricity sales volumes, the terms and conditions of contracts for fuel, Idaho Power's generation capacity, the availability of hydropower generation resources, transmission capacity, energy market prices, and Idaho Power's hedging program for managing fuel costs. Purchased power costs are impacted by the terms and conditions of contracts for purchased power, the rate of expansion of alternative energy generation sources such as wind or solar energy, and wholesale energy market prices. The Idaho and Oregon power cost adjustment mechanisms mitigate in large part the potential adverse impacts to Idaho Power of fluctuations in power supply costs.

•Regulatory and Environmental Compliance Costs: Idaho Power is subject to extensive federal and state laws, policies, and regulations, as well as regulatory actions and audits by agencies and quasi-governmental agencies, including the FERC, the North American Electric Reliability Corporation, and the Western Electricity Coordinating Council. Compliance with these requirements directly influences Idaho Power's operating environment and affects Idaho Power's operating costs. Recently, energy industry regulators have issued substantial penalties for utilities alleged to have violated reliability and critical infrastructure protection requirements. Moreover, environmental laws and regulations, in particular, may increase the cost of constructing new facilities, may increase the cost of operating generation plants, including Idaho Power's jointly-owned coal-fired generating plants, may require that Idaho Power install additional pollution control devices at existing generating plants, or may require that Idaho Power cease operating certain generation plants. Idaho Power expects to spend significant amounts on environmental compliance and controls in the next decade. Due to economic factors in part associated with the costs of compliance with environmental regulation, Idaho Power ~~has~~ accelerated the retirement ~~dates of two~~date of its jointly-owned coal-fired generating ~~plants, including~~plant in Valmy, Nevada, ceasing operations at one unit in 2019, and Idaho Power is reviewing the retirement date for the other co-owned unit based on economics and reliability needs. In addition, Idaho Power's jointly-owned coal plant in Boardman, Oregon, ~~which~~ ceased operations as planned in October 2020.

•Water Management and Relicensing of Hydropower Projects: Because of Idaho Power's reliance on stream flow in the Snake River and its tributaries, Idaho Power participates in numerous proceedings and venues that may affect its water rights, seeking to preserve the long-term availability of its rights for its hydropower projects. Also, Idaho Power is involved in renewing its long-term federal licenses for the HCC, its largest hydropower generation source, and for American Falls, its second largest hydropower generation source. Given the number of parties involved, Idaho Power's relicensing costs have been and are expected to continue to be substantial. Idaho Power cannot currently determine the ultimate terms of, and costs associated with, any resulting long-term licenses.

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•Wildfire Mitigation Efforts: In recent years, in the ~~Western~~western United States ~~particularly California,~~there has ~~experienced~~been an ~~increased frequency~~increasing trend in the degree of ~~destructive wildland fires (wildfires).~~annual destruction from wildfires. A variety of factors have contributed in varying degrees to this trend including climate change, increased wildland-urban interfaces, historical land management practices, and overall wildland and forest health. While Idaho Power has not experienced the ~~type~~extent of catastrophic wildfires within its

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service area that have occurred in California, Oregon, and elsewhere in the western United States, Idaho Power is taking a proactive approach to wildfire threat relative to its service area. Idaho Power has drafted a Wildfire Mitigation Plan (WMP) that outlines actions Idaho Power is taking or is working to implement in the future to reduce wildfire risk and to strengthen the resiliency of its transmission and distribution system to wildfires. Idaho Power's approach to achieve these objectives includes identifying areas subject to elevated risk; system hardening programs, vegetation management, and field personnel practices to mitigate wildfire risk; incorporating current and forecasted weather and field conditions into operational practices; evaluating whether public safety power shutoffs are currently a reasonable mitigation approach; and evaluating the performance and effectiveness of the strategies identified in the WMP through metrics and monitoring. In January 2021, Idaho Power filed an application with the IPUC requesting authorization to defer, for future amortization, the Idaho jurisdictional share of actual incremental O&M expenses and depreciation expense of certain capital investments necessary to implement the WMP, including incremental insurance costs, among other things. The IPUC filing is described in more detail in Note 3 - "Regulatory Matters" to the consolidated financial statements in the 2020 Annual Report.

RESULTS OF OPERATIONS

This section of MD&A takes a closer look at the significant factors that affected IDACORP’s and Idaho Power’s earnings during the three ~~and nine~~ months ended ~~September 30, 2020.~~March 31, 2021. In this analysis, the results for the three ~~and nine~~ months ended ~~September 30, 2020,~~March 31, 2021, are compared with the same period in ~~2019.~~2020.

The table below presents Idaho Power’s energy sales and supply (in thousands of MWh) for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020.


		Three months ended September 30,		Nine months ended September 30,			Three months ended March 31,
		2020	2019	2020	2019		2021	2020
Retail energy sales	Retail energy sales	4,475	4,394	11,388	11,173	Retail energy sales	3,369	3,319
Wholesale energy sales	Wholesale energy sales	298	148	969	2,050	Wholesale energy sales	121	183
Bundled energy sales	Bundled energy sales	275	307	547	453	Bundled energy sales	211	162
Total energy sales	Total energy sales	5,048	4,849	12,904	13,676	Total energy sales	3,701	3,664
Hydropower generation	Hydropower generation	1,774	1,840	5,655	6,972	Hydropower generation	1,426	1,606
Coal generation	Coal generation	1,365	789	2,637	2,342	Coal generation	537	462
Natural gas and other generation	Natural gas and other generation	794	950	1,520	1,514	Natural gas and other generation	641	638
Total system generation	Total system generation	3,933	3,579	9,812	10,828	Total system generation	2,604	2,706
Purchased power	Purchased power	1,444	1,559	3,971	3,815	Purchased power	1,397	1,222
Line losses	Line losses	(329)	(289)	(879)	(967)	Line losses	(300)	(264)
Total energy supply	Total energy supply	5,048	4,849	12,904	13,676	Total energy supply	3,701	3,664

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Weather-related information for Boise, Idaho, for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ is presented in the table below. While Boise, Idaho, weather conditions are not necessarily representative of weather conditions throughout Idaho Power's service area, the greater Boise area has the majority of Idaho Power's customers and is included for illustrative purposes.


		Three months ended September 30,			Nine months ended September 30,				Three months ended March 31,
		2020	2019	Normal (2)	2020	2019	Normal (2)		2021	2020	Normal (2)
Heating degree-days(1)	Heating degree-days(1)	32	112	122	2,934	3,132	3,321	Heating degree-days(1)	2,327	2,238	2,480
Cooling degree-days(1)	Cooling degree-days(1)	879	861	750	1,074	1,020	933	Cooling degree-days(1)	—	—	—
Precipitation (inches)	Precipitation (inches)	0.2	0.9	1.2	11.8	13.1	8.1	Precipitation (inches)	5.0	5.3	3.6

(1) Heating and cooling degree-days are common measures used in the utility industry to analyze the demand for electricity and indicate when a customer would use electricity for heating and cooling. A degree-day measures how much the average daily temperature varies from 65 degrees. Each degree of temperature above 65 degrees is counted as one cooling degree-day, and each degree of temperature below 65 degrees is counted as one heating degree-day.

(2) Normal heating degree-days and cooling degree-days elements are, by convention, the arithmetic mean of the elements computed over 30 consecutive years. The normal amounts are the sum of the monthly normal amounts. These normal amounts are computed by the National Oceanic and Atmospheric Administration.

Sales Volume and Generation: Retail sales volumes increased 2 percent in ~~both~~ the ~~third~~first quarter ~~and first nine months~~ of ~~2020~~2021 compared with the same ~~periods of 2019. Less precipitation~~period in ~~the Idaho Power service area during the three and nine months ended September 30,~~ 2020, increased usage by irrigation customers by approximately 1 percent and 10 percent, respectively, compared with the same periods in 2019. During the third quarter of 2020, usage per residential customer was approximately 3

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~~percent higher than the third quarter of 2019,~~ primarily due to residential customers spending more time at home due to the COVID-19 public health crisis combined with warmer weather that caused residential customers to use more energy at home for cooling. Cooling degree-daysa 2.9 percent growth in Boise, Idaho were 2 percent higher during the three months ended September 30, 2020, compared with the three months ended September 30, 2019, and 17 percent above normal. For the third quarter of 2020, the increases in sales volumes per irrigation and residential customer were only partially offset by decreases of 3 percent and 4 percent in usage per commercial customer for the third quarter and first nine months of 2020, respectively, compared with the same periods of 2019. The decreases in usage per commercial customer during the third quarter and first nine months of 2020 were largely due to the economic impacts of the COVID-19 crisis. Customer growth increased sales volumes during the three and nine months ended September 30, 2020, compared with the same periods in 2019, with the number of Idaho Power's customers ~~growing by 2.6 percent~~ over the prior twelve months.

Total system generation ~~increased 10~~decreased 4 percent in the ~~third~~first quarter of 2021 compared with the first quarter of 2020, due primarily to lower hydropower generation, offset partially by increased coal-fired generation. Hydropower generation during the first quarter of 2021 decreased 11 percent compared with the ~~third quarter of 2019. Hydropower and natural gas generation during the third~~first quarter of 2020, ~~decreased 4 percent and 16 percent, respectively,~~due mostly to less precipitation in the Snake River basin. For 2021, Idaho Power expects generation from its hydropower resources to be in the range of 5.5 to 7.5 million MWh, compared with average total annual generation of approximately 7.7 million MWh over the ~~third~~last 30 years. During the first quarter of ~~2019, due primarily to decreased wholesale energy sales, higher purchased power,~~2021, the lower hydropower generation and economic-, ~~operations-~~operational-, and reliability-based decisions led to ~~use more coal generation. During the third quarter of 2020, coal~~a 16 percent increase in coal-fired generation increased 73 percent compared with the third quarter of 2019. Purchased power decreased 7 percent in the third quarter of 2020 compared with the same period of 2019, due to higher regional wholesale energy market prices. Total system generation decreased 9 percent during the first nine months of 2020 compared with the first nine months of 2019. During the first nine months of 2019, regional wholesale energy prices were elevated due to below-normal temperatures in the northwest region, lack of energy imports due to equipment maintenance, limited production from the federal hydropower system due to freezing temperatures and low water flow, and reduced capacity of Pacific Northwest and Western Canada region natural gas pipelines due to a natural gas pipeline that ruptured in British Columbia, Canada, during the fourth quarter of ~~2018. The higher regional wholesale energy prices during the first nine months of 2019 led to higher Idaho Power opportunistic wholesale energy sales during that period.~~2020.

Purchased power volumes increased 14 percent in the first quarter of 2021 compared with the first quarter of 2020, mostly due to an increase in purchases from the energy imbalance market implemented in the western United States (Western EIM) and additional purchases to meet load requirements. The financial impacts of fluctuations in wholesale energy sales, purchased power, fuel expense, and other power supply-related expenses are addressed in Idaho Power's Idaho and Oregon power cost adjustment mechanisms, which are described ~~later~~below in ~~this MD&A.~~"Power Cost Adjustment Mechanisms."

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Operating Revenues

Retail Revenues: The table below presents Idaho Power’s retail revenues (in thousands) and MWh sales volumes (in thousands) for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ and the number of customers as of ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020.


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Retail revenues:	Retail revenues:									Retail revenues:
Residential (includes $4,896, $6,446, $24,740, and $24,988, respectively, related to the FCA)(1)		$	143,822	$	133,550	$	398,180	$	388,566
Commercial (includes $330, $330, $1,211, and $1,022, respectively, related to the FCA)(1)		82,279		80,304		219,006		224,382
Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)										Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)	$	154,785	$	144,887
Commercial (includes $482 and $484, respectively, related to the FCA)(1)										Commercial (includes $482 and $484, respectively, related to the FCA)(1)	72,269		69,513
Industrial	Industrial	50,154		47,122		136,001		138,222		Industrial	45,430		42,760
Irrigation	Irrigation	88,188		82,659		149,711		132,613		Irrigation	1,086		1,375

Deferred revenue related to HCC relicensing AFUDC(2)	Deferred revenue related to HCC relicensing AFUDC(2)	(2,815)		(2,815)		(6,861)		(6,861)		Deferred revenue related to HCC relicensing AFUDC(2)	(2,119)		(2,119)

Total retail revenues	Total retail revenues	$	361,628	$	340,820	$	896,037	$	876,922	Total retail revenues	$	271,451	$	256,416
Volume of retail sales (MWh)	Volume of retail sales (MWh)									Volume of retail sales (MWh)
Residential	Residential	1,404		1,332		3,979		3,854		Residential	1,502		1,448
Commercial	Commercial	1,082		1,098		2,980		3,062		Commercial	1,003		1,005
Industrial	Industrial	859		859		2,512		2,541		Industrial	852		852
Irrigation	Irrigation	1,130		1,105		1,917		1,716		Irrigation	12		14
Total retail MWh sales	Total retail MWh sales	4,475		4,394		11,388		11,173		Total retail MWh sales	3,369		3,319
Number of retail customers at period end	Number of retail customers at period end									Number of retail customers at period end
Residential	Residential	487,261		474,210						Residential	495,096		480,166
Commercial	Commercial	74,086		72,647						Commercial	74,701		73,180
Industrial	Industrial	126		127						Industrial	127		126
Irrigation	Irrigation	21,606		21,382						Irrigation	21,624		21,407
Total customers	Total customers	583,079		568,366						Total customers	591,548		574,879

(1) The FCA mechanism is an alternative revenue program and does not represent revenue from contracts with customers.

(2) As part of its January 30, 2009 general rate case order, the IPUC is allowing Idaho Power to recover a portion of the allowance for funds used during construction (AFUDC) on construction work in progress related to the HCC relicensing process, even though the relicensing process is not yet complete and the costs have not been moved to electric plant in service. Idaho Power is collecting approximately $8.8 million annually in the Idaho jurisdiction but is deferring revenue recognition of the amounts collected until the license is issued and the accumulated license costs approved for recovery are placed in service.

Changes in rates, changes in customer demand, and changes in FCA mechanism revenues are the primary reasons for fluctuations in retail revenues from period to period. The primary influences on customer demand for electricity are weather, economic conditions, and energy efficiency. Extreme temperatures increase sales to customers who use electricity for cooling and heating, while moderate temperatures decrease sales. Precipitation levels and the timing of precipitation during the agricultural growing season also affect sales to customers who use electricity to operate irrigation pumps. Rates are also seasonally adjusted, providing for higher rates during peak load periods, and residential customer rates are tiered, providing for higher rates based on higher levels of usage. The seasonal and tiered rate structures contribute to seasonal fluctuations in revenues and earnings.

Retail revenues increased ~~$20.8~~$15.0 million during the ~~third~~first quarter of ~~2020 and increased $19.1 million during first nine months of 2020,~~2021 compared with the same ~~periods~~period in ~~2019.~~2020. The factors affecting retail revenues during the period are discussed below.

•Rates: ~~Customer~~Average customer rates, excluding ~~collections of~~ amounts related to the power cost adjustment mechanism, decreased retail revenues by ~~approximately $0.1 million and $0.8~~$1.0 million for ~~both~~ the three ~~and nine~~ months ended ~~September 30, 2020, respectively,~~March 31, 2021, compared with the same periods in ~~2019.~~2020. Customer rates also include the ~~return to~~collection from customers of amounts related to the power cost adjustment mechanism, which increased revenues by ~~$14.7 million and $1.4~~$11.1 million in the ~~third~~first quarter ~~and first nine months~~ of ~~2020, respectively,~~2021, compared with the same periods of ~~2019.~~2020. The amount ~~returned to~~collected from customers in rates under the power cost adjustment mechanism has relatively little effect on operating income as a corresponding amount is recorded as ~~a reduction of~~ expense in the same period it is ~~returned~~collected through rates.

•Customers: Customer growth of 2.9 percent during the twelve months ended March 31, 2021, increased retail revenues by $5.1 million in the first quarter of 2021, compared with the same period of 2020.

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•~~Customers~~: Customer growth of 2.6 percent during the twelve months ended September 30, 2020, increased retail revenues by $5.2 million and $14.7 million in the third quarter and first nine months of 2020, respectively, compared with the same periods of 2019.

•~~Usage~~: Higher usage (on a per customer basis), primarily by residential customers, increased retail revenues by $2.5 million and $3.8 million in the third quarter and first nine months of 2020, respectively, compared with the same periods of 2019. During the third quarter of 2020, usage per residential customer was approximately 3 percent higher than the third quarter of 2019, primarily due to residential customers spending more time at home due to the COVID-19 public health crisis, combined with warmer weather that caused residential customers to use more energy at home for cooling. Cooling degree-days in Boise, Idaho were 2 percent higher during the three months ended September 30, 2020, compared with the three months ended September 30, 2019, and 17 percent above normal. Less precipitation in Idaho Power's service area during the three and nine months ended September 30, 2020, increased usage by irrigation customers by approximately 1 percent and 10 percent, respectively, compared with the same periods in 2019. For the third quarter of 2020, the increases in sales volumes per residential and irrigation customer were only partially offset by decreases of 3 percent usage per commercial customer, compared with the third quarter of 2019. For the first nine months of 2020, the increase in sales volumes per residential and irrigation customer was partially offset by a decrease of 4 percent in usage per commercial customer. The decrease in usage per commercial customer during the third quarter and first nine months of 2020 were largely due to the economic impacts of the COVID-19 crisis.

•~~Idaho FCA Revenue~~: The FCA mechanism, applicable to Idaho residential and small commercial customers, adjusts revenue each year to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power through volume-based rates during the year. Higher usage (on a per customer basis) by residential and small general service customers during the three and nine months ended September 30, 2020, decreased the amount of FCA accrued by $1.6 million and $0.1 million, respectively, compared with the same period in 2019.

Wholesale Energy Sales: Wholesale energy sales consist primarily of opportunistic sales of surplus system energy and sales into the ~~energy imbalance market implemented in the western United States (Western EIM),~~Western EIM, and do not include derivative transactions. The table below presents Idaho Power’s wholesale energy sales for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands, except for per MWh amounts).


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Wholesale energy revenues	Wholesale energy revenues	$	12,178	$	5,321	$	22,952	$	68,693	Wholesale energy revenues	$	6,259	$	3,908
Wholesale MWh sold		298		148		969		2,050
Wholesale volume in MWh sold										Wholesale volume in MWh sold	121		183
Average wholesale energy revenues per MWh	Average wholesale energy revenues per MWh	$	40.87	$	35.95	$	23.69	$	33.51	Average wholesale energy revenues per MWh	$	51.73	$	21.36

In the ~~third~~first quarter of ~~2020,~~2021, wholesale energy revenues increased ~~$6.9~~$2.4 million compared with the same period of ~~2019, as wholesale energy sales volumes increased 101 percent. The~~2020, primarily due to average wholesale energy ~~revenues per MWh for~~prices more than doubling in the ~~third~~first quarter of ~~2020 were 14 percent higher~~2021 compared with the first quarter of 2020. A February 2021 winter storm in the southwest U.S. resulted in increased wholesale energy prices during the first quarter of 2021 compared with the same period in 2019. The higher prices and sales volumes in the third quarter of 2020 were partially due to a heat wave in the Southwest U.S. and California that contributed to significant higher prices and demand for energy in that region.

In the first nine months of 2020, wholesale energy revenues decreased $45.7 million compared with the same period of 2019, as wholesale energy sales volumes decreased 53 percent in the first nine months of 2020 compared with the same period of 2019. The average wholesale energy revenues per MWh for the first nine months of 2020 were 29 percent lower compared with the same period in 2019. The higher prices and sales volumes in the first nine months of 2019 were due to below-normal temperatures in the Northwest U.S., lack of energy imports due to equipment maintenance, limited production from the federal hydropower system due to freezing temperatures and low water flow, and reduced capacity of Northwest U.S. and Western Canada region natural gas pipelines due to a natural gas pipeline rupture in British Columbia, Canada during the fourth quarter of 2018. The higher regional wholesale energy prices during the first nine months of 2019 led to higher Idaho Power opportunity wholesale energy sales volumes.2020.

Transmission Wheeling-Related Revenues: Transmission wheeling-related revenues increased ~~$4.4~~$4.1 million, or 3540 percent, during the ~~third~~first quarter of 2021 compared with the first quarter of 2020, ~~compared with~~primarily due to an increase in wheeling volume and the ~~third quarter of 2019. Warmer~~approximate 10 percent increase in Idaho Power's OATT rate that went into effect in October 2020. Colder winter weather

in the ~~Southwest~~southwest U.S. ~~and California led to higher wholesale energy prices in those areas which~~ increased ~~wholesale energy market activity and~~ wheeling volumes in the ~~third~~first quarter of ~~2020 compared with the third quarter of 2019. The increase in wheeling volumes was partially offset by an~~

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approximate 13 percent decrease in Idaho Power's OATT rates during the period from October 1, 2019, to September 30, 2020, compared with the rates in effect from October 1, 2018, to September 30, 2019.

~~Transmission wheeling-related revenues decreased $2.0 million, or 5 percent, during first nine months of 2020~~2021 compared with the first nine months of 2019, primarily due to Idaho Power's OATT rates decreasing approximately 13 percent during the period from October 1, 2019, to September 30, 2020, compared with the rates in effect from October 1, 2018, to September 30, 2019, and to a lesser extent due to lower transmission loss settlement rates in the first nine months of 2020 compared with the first nine months of 2019. These rate decreases were offset partially by an increase in wheeling volumes, mostly from the higher regional wholesale market activity during the third quarter of 2020 noted above. Idaho Power's most recent transmission rate went into effect on October 1, 2020, reflecting approximately a 10 percent increase for the period from October 1, 2020, to September 30, 2021, as described below in "Regulatory Matters" in this MD&A.2020.

Energy Efficiency Program Revenues: In both Idaho and Oregon, energy efficiency riders fund energy efficiency program expenditures. Expenditures funded through the riders are reported as an operating expense with an equal amount recorded in revenues, resulting in no net impact on earnings. The cumulative variance between expenditures and amounts collected through the rider is recorded as a regulatory asset or liability. A liability balance indicates that Idaho Power has collected more than it has spent and an asset balance indicates that Idaho Power has spent more than it has collected. At ~~September 30, 2020,~~March 31, 2021, Idaho Power's energy efficiency rider balances were a ~~$8.5~~$13.4 million regulatory asset in the Idaho jurisdiction and a $1.0 million regulatory asset in the Oregon jurisdiction.

Operating Expenses

Purchased Power: The table below presents Idaho Power’s purchased power expenses and volumes for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands, except for per MWh amounts).


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Expense	Expense									Expense
PURPA contracts	PURPA contracts	$	59,314	$	56,848	$	148,990	$	143,837	PURPA contracts	$	43,057	$	42,289
Other purchased power (including wheeling)	Other purchased power (including wheeling)	44,799		36,770		78,098		70,675		Other purchased power (including wheeling)	24,931		18,912
Total purchased power expense	Total purchased power expense	$	104,113	$	93,618	$	227,088	$	214,512	Total purchased power expense	$	67,988	$	61,201
MWh purchased	MWh purchased									MWh purchased
PURPA contracts	PURPA contracts	848		825		2,469		2,385		PURPA contracts	697		707
Other purchased power	Other purchased power	596		734		1,502		1,430		Other purchased power	700		515
Total MWh purchased	Total MWh purchased	1,444		1,559		3,971		3,815		Total MWh purchased	1,397		1,222
Average cost per MWh from PURPA contracts	Average cost per MWh from PURPA contracts	$	69.95	$	68.91	$	60.34	$	60.31	Average cost per MWh from PURPA contracts	$	61.77	$	59.81
Average cost per MWh from other sources	Average cost per MWh from other sources	$	75.17	$	50.10	$	52.00	$	49.42	Average cost per MWh from other sources	$	35.62	$	36.72
Weighted average - all sources	Weighted average - all sources	$	72.10	$	60.05	$	57.19	$	56.23	Weighted average - all sources	$	48.67	$	50.08

Purchased power expense increased ~~$10.5~~$6.8 million, or 11 percent, ~~and $12.6 million, or 6 percent~~ during the ~~third~~first quarter ~~and first nine months~~ of ~~2020~~2021 compared with the same ~~periods~~period of ~~2019. Higher regional wholesale energy market prices led to higher~~2020. The increase in purchased power expense ~~as well as higher generation of projects under~~was primarily due to a 36 percent increase in MWh purchased from sources other than PURPA contracts, ~~during~~mostly due to an increase in purchases from the ~~third quarter~~Western EIM and ~~first nine months of 2020 compared with the same periods of 2019.~~additional purchases to meet load requirements.

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Fuel Expense: The table below presents Idaho Power’s fuel expenses and thermal generation for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands, except for per MWh amounts).


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Expense	Expense									Expense
Coal	Coal	$	43,126	$	27,309	$	86,314	$	82,620	Coal	$	16,935	$	15,774
Natural gas	Natural gas	16,619		19,572		34,860		36,957		Natural gas	16,371��		14,241
Total fuel expense	Total fuel expense	$	59,745	$	46,881	$	121,174	$	119,577	Total fuel expense	$	33,306	$	30,015
MWh generated	MWh generated									MWh generated
Coal	Coal	1,365		788		2,637		2,342		Coal	537		462
Natural gas	Natural gas	794		950		1,521		1,514		Natural gas	641		638
Total MWh generated	Total MWh generated	2,159		1,738		4,158		3,856		Total MWh generated	1,178		1,100
Average cost per MWh - Coal	Average cost per MWh - Coal	$	31.59	$	34.66	$	32.73	$	35.28	Average cost per MWh - Coal	$	31.54	$	34.14
Average cost per MWh - Natural gas	Average cost per MWh - Natural gas	$	20.93	$	20.60	$	22.92	$	24.41	Average cost per MWh - Natural gas	$	25.54	$	22.32
Weighted average, all sources	Weighted average, all sources	$	27.67	$	26.97	$	29.14	$	31.01	Weighted average, all sources	$	28.27	$	27.29

The majority of the fuel for Idaho Power’s jointly-owned coal-fired plants is purchased through long-term contracts, including purchases from BCC, a one-third owned joint venture of IERCo. The price of coal from BCC is subject to fluctuations in mine operating expenses, geologic conditions, and production levels. BCC supplies up to two-thirds of the coal used by the Jim Bridger plant. Natural gas is mainly purchased on the regional wholesale spot market at published index prices. In addition to commodity (variable) costs, both natural gas and coal expenses include costs that are more fixed in nature for items such as capacity charges, transportation, and fuel handling. Period to period variances in fuel expense per MWh are noticeably impacted by these fixed charges when generation output is substantially different between the periods.

Fuel expense increased ~~$12.9~~$3.3 million, or ~~27 percent, and $1.6 million, or 1~~11 percent, during the ~~third~~first quarter ~~and in the first nine months~~ of ~~2020~~2021 compared with the same ~~periods~~period of ~~2019.~~2020. The increase for the first quarter of 2021 was primarily due to higher natural gas prices as regional natural gas supply was affected by February 2021 winter storms in the southwest U.S. In addition, during the first quarter of 2021, lower hydropower generation and economic-, operational-, and reliability-based decisions led to a 16 percent increase in coal-fired generation compared with the first quarter of 2020. The increase in fuel expense was partially offset by an 8 percent decrease in ~~both periods of 2020 compared with~~ the same periods of 2019 was primarily due to economic-, operations-, and reliability-based decisions to utilize more coal generation. Included in fuel expense are losses and gains on settled financial gas hedges entered into in accordance withaverage cost per MWh generated at Idaho Power's energy, risk management policies. In the first nine months of 2020 losses on financial gas hedges of $4.0 million increased natural gas fuel expense, while in the first nine months of 2019, gains on financial gas hedges of $11.6 million reduced natural gas expense. Most of these realized hedging gains and losses are passed on to customers through the power cost adjustment mechanisms described below.jointly-owned coal-fired plants.

Power Cost Adjustment Mechanisms: Idaho Power's power supply costs (primarily purchased power and fuel expense, less wholesale energy sales) can vary significantly from year to year. Volatility of power supply costs arises from factors such as weather conditions, wholesale market prices, volumes of power purchased and sold in the wholesale markets, Idaho Power's hydropower and thermal generation volumes and fuel costs, generation plant availability, and retail loads. To address the volatility of power supply costs, Idaho Power's power cost adjustment mechanisms in the Idaho and Oregon jurisdictions allow Idaho Power to recover from customers, or refund to customers, most of the fluctuations in power supply costs. In the Idaho jurisdiction, the PCA includes a cost or benefit sharing ratio that allocates the deviations in net power supply expenses between customers (95 percent) and Idaho Power (5 percent), with the exception of PURPA power purchases and demand response program incentives, which are allocated 100 percent to customers. The Idaho deferral period, or PCA year, runs from April 1 through March 31. Amounts deferred or accrued during the PCA year are primarily recovered or refunded during the subsequent June 1 through May 31 period. Because of the power cost adjustment mechanisms, one of the primary financial impacts of power supply cost variations is that cash is paid out but recovery from customers does not occur until a future period, or cash that is collected is refunded to customers in a future period, resulting in fluctuations in operating cash flows from year to year.

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The table that follows presents the components of the Idaho and Oregon power cost adjustment mechanisms for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands).


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
		2020		2019		2020		2019			2021		2020
Power supply cost accrual	Power supply cost accrual	$	3,290	$	2,844	$	26,237	$	58,596	Power supply cost accrual	$	15,261	$	10,957

Amortization of prior year authorized balances	Amortization of prior year authorized balances	(12,823)		(19,256)		(40,697)		(32,661)		Amortization of prior year authorized balances	(9,590)		(14,348)
Total power cost adjustment expense	Total power cost adjustment expense	$	(9,533)	$	(16,412)	$	(14,460)	$	25,935	Total power cost adjustment expense	$	5,671	$	(3,391)

The power supply accruals represent the portion of the power supply cost fluctuations accrued under the power cost adjustment mechanisms. When actual power supply costs are lower than the amount forecasted in power cost adjustment rates, which was the case for all periods presented, most of the difference is ~~accrued.~~accrued as an increase to a regulatory liability or decrease to a regulatory asset. When actual power supply costs are higher than the amount forecasted in power cost adjustment rates, most of the difference is ~~deferred.~~deferred as an increase to a regulatory asset or decrease to a regulatory liability. The amortization of the prior year’s balances represents the offset to the amounts being collected or refunded in the current power cost adjustment year that were deferred or accrued in the prior power cost adjustment year (the true-up component of the power cost adjustment mechanism).

Other O&M Expenses: Other O&M expenses decreased ~~$4.4~~$4.2 million, or 5 percent, in the ~~third~~first quarter of 2020 compared with the third quarter of 2019, partially due to Idaho Power's December 2019 exit from unit 1 of its North Valmy plant. Also, other O&M expenses decreased in the third quarter of 2020 compared with the third quarter of 2019 as a result of a decrease in labor-related costs from lower performance-based variable compensation accruals.

Other O&M expenses decreased $7.3 million, or 3 percent, during the first nine months of 2020 compared with the same period of 2019, primarily due to the temporary deferral of certain maintenance projects at Idaho Power's jointly-owned thermal generation plants. The timing of these projects is discretionary and Idaho Power expects these projects to be completed in 2021. Also, other O&M expenses decreased in the first nine months of 20202021 compared with the first ~~nine months~~quarter of ~~2019 as~~2020, partially due to a ~~result~~difference in the timing of cloud seeding activities and cost-saving initiatives at the jointly-owned coal plants. The decrease was also due to the October 2020 closure of Idaho Power's ~~December 2019 exit from participation~~jointly-owned coal plant in ~~unit 1~~Boardman, Oregon. A regulatory mechanism facilitating the recovery of ~~its North Valmy~~costs related to the closure of the Boardman plant also reduced operating revenues by a corresponding amount in the first quarter of 2021 compared with the first quarter of 2020. In addition, COVID-19-related decreases in employee travel and ~~lower labor-related~~training costs ~~as described above.~~reduced other O&M expenses in the first quarter of 2021 compared with the first quarter of 2020.

Income Taxes

IDACORP's and Idaho Power's income tax expense ~~decreased $2.8~~increased $1.2 million and ~~$3.3~~$1.5 million, respectively, for the three ~~and nine~~ months ended ~~September 30, 2020, respectively,~~March 31, 2021, when compared with the same ~~periods~~period in ~~2019. The decreases in income tax expense were~~2020, primarily due to ~~the tax deduction for bond redemption costs incurred in the third quarter of 2020 and other plant-related income tax return adjustments, partially offset by statutory taxes on~~ greater ~~2020~~ pre-tax ~~income and lower excess deferred income tax reversal.~~income. For information relating to IDACORP's and Idaho Power's computation of income tax expense effective income tax rates, see Note 2 - "Income Taxes" to the condensed consolidated financial statements included in this report.

LIQUIDITY AND CAPITAL RESOURCES

Overview

Idaho Power has been pursuing significant enhancements to its utility infrastructure in an effort to ensure an adequate supply of electricity, to provide service to new customers, and to maintain system reliability. Idaho Power's existing hydropower and thermal generation facilities also require continuing upgrades and component replacement. Idaho Power anticipates these substantial capital expenditures will continue, with expected total capital expenditures of approximately ~~$1.6~~$2.0 billion over the five-year period from ~~2020~~2021 (including expenditures incurred to-date in ~~2020)~~2021) through ~~2024.~~2025.

Idaho Power funds its liquidity needs for capital expenditures through cash flows from operations, debt offerings, commercial paper markets, credit facilities, and capital contributions from IDACORP. Idaho Power periodically files for rate adjustments for recovery of operating costs and capital investments to provide the opportunity to align Idaho Power's earned returns with those allowed by regulators. Idaho Power uses operating and capital budgets to control operating costs and capital expenditures. During the first ~~nine~~three months of ~~2020,~~2021, Idaho Power continued its efforts to optimize operations, control costs, and generate operating cash inflows to meet operating expenditures, contribute to capital expenditure requirements, and pay dividends to shareholders.

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As of ~~October~~April 23, ~~2020,~~2021, IDACORP's and Idaho Power's access to debt, equity, and credit arrangements included:

•their respective $100 million and $300 million revolving credit facilities;

•IDACORP's shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on May 17, 2019, which may be used for the issuance of debt securities and common stock;

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•Idaho Power's shelf registration statement filed with the SEC on May 17, 2019, which may be used for the issuance of first mortgage bonds and debt securities; $190 million remains available for issuance pursuant to state regulatory authority; and

•IDACORP's and Idaho Power's commercial paper, which may be issued up to an amount equal to the available credit capacity under their respective credit facilities.

IDACORP and Idaho Power monitor capital markets with a view toward opportunistic debt and equity transactions, taking into account current and potential future long-term needs. As a result, IDACORP may issue debt securities or common stock, and Idaho Power may issue debt securities or first mortgage bonds, if the companies believe terms available in the capital markets are favorable and that issuances would be financially prudent.

In April 2020, Idaho Power issued $230 million in principal amount of 4.20 percent first mortgage bonds, secured medium term notes, Series K, maturing March 1, 2048. The bonds were issued at a reoffer yield of 3.422 percent, which resulted in a net premium of 13.0 percent and net proceeds to Idaho Power of $259.9 million. After this offering, the aggregate principal amount of the 4.20 percent first mortgage bonds is $450 million.

~~In August 2020, Idaho Power redeemed $100 million in principal amount of 3.40 percent first mortgage bonds due in November 2020.~~

As of the date of this report, Idaho Power is uncertain how significantly the COVID-19 ~~public health crisis~~pandemic will ultimately impact Idaho Power's operations, results of operations, cash flows, financial condition, or capital resources. The net proceeds from the debt issuances ~~noted above,~~in 2020 provided Idaho Power with additional liquidity should the financial impacts of the COVID-19 ~~public health crisis~~pandemic worsen in the coming months or be prolonged. Based on planned capital expenditures and other O&M expenses, the companies believe they will be able to meet capital and debt service requirements and fund corporate expenses during at least the next twelve months with a combination of existing cash, operating cash flows generated by Idaho Power's utility business, availability under existing credit facilities, and access to commercial paper and long-term debt markets.

IDACORP and Idaho Power seek to maintain capital structures of approximately 50 percent debt and 50 percent equity, and maintaining this ratio influences IDACORP's and Idaho Power's debt and equity issuance decisions. As of ~~September 30, 2020,~~March 31, 2021, IDACORP's and Idaho Power's capital structures, as calculated for purposes of applicable debt covenants, were as follows:


	IDACORP	Idaho Power
Debt	44%	46%
Equity	56%	54%

IDACORP and Idaho Power generally maintain their cash and cash equivalents in highly liquid investments, such as U.S. Treasury Bills, money market funds, and bank deposits.

Operating Cash Flows

IDACORP’s and Idaho Power’s operating cash inflows for the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, were ~~$284~~$84 million and ~~$285~~$79 million, respectively, ~~a decrease~~an increase of $3$50 million for IDACORP and an increase of ~~$20~~$40 million for Idaho Power, compared with the same period in ~~2019.~~2020. With the exception of cash flows related to income taxes, IDACORP's operating cash flows are principally derived from the operating cash flow of Idaho Power. Significant items that affected the comparability of the companies' operating cash flows in the first ~~nine~~three months of ~~2020~~2021 compared with the same period in ~~2019~~2020 were as follows:

•increased net income;

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•changes in regulatory assets and liabilities, mostly related to the relative amounts of costs deferred and collected under the Idaho PCA mechanism, ~~decreased~~increased operating cash flows by ~~$34~~$13 million;

•~~Idaho Power received $7 million in 2020 and $18 million in 2019 of distributions from IERCo's investment in BCC;~~ changes in ~~distributions~~contributions to pension and postretirement benefit plans increased operating cash flows by $11 million; changes in contributions from year to year are ~~primarily driven by changes in the~~mostly due to timing of cash ~~needs associated with BCC;~~needs; and

•changes in working capital balances due primarily to timing, including fluctuations in accounts receivable, accounts payable, and other current ~~liabilities,~~assets, as follows:

◦timing of collections of accounts receivable balances decreased operating cash flows by $9 million for IDACORP and $10 million for Idaho Power;

◦timing of accounts payable payments increased operating cash flows by ~~$12~~$7 million for IDACORP and ~~$34 million~~ for Idaho ~~Power, of which $23 million of the difference between IDACORP and Idaho Power related to intercompany estimated tax payments;~~Power; and

◦the changes in other current ~~liabilities, which includes non-incentive compensation, customer deposits, accrued interest, and other miscellaneous liabilities,~~assets increased operating cash flows by $9$18 million for IDACORP and Idaho ~~Power.~~Power, which was primarily due to fluctuations in accrued unbilled revenues and the timing of prepayments.

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Investing Cash Flows

Investing activities consist primarily of capital expenditures related to new construction and improvements to Idaho Power’s generation, transmission, and distribution facilities. IDACORP’s and Idaho Power’s net investing cash outflows for the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, were ~~$242~~$79 million and ~~$206~~$74 million, respectively. Investing cash outflows for ~~2020~~2021 and ~~2019~~2020 were primarily for construction of utility infrastructure needed to address Idaho Power’s aging plant and equipment, customer growth, and environmental and regulatory compliance requirements. During the ~~nine months ended September 30, 2020,~~first quarter of 2021, IDACORP's investing cash inflows and outflows also included $25 million of proceeds from maturities of short-term investments and $25 million of purchases of short-term investments, ~~and $12 million of investments in affordable housing, which provide a return principally by reducing federal and state income taxes through tax credits and accelerated tax depreciation benefits.~~respectively.

Financing Cash Flows

Financing activities provide supplemental cash for both day-to-day operations and capital requirements, as needed. Idaho Power funds liquidity needs for capital investment, working capital, managing commodity price risk, and other financial commitments through cash flows from operations, debt offerings, commercial paper markets, credit facilities, and capital contributions from IDACORP. IDACORP funds its cash requirements, such as payment of taxes, capital contributions to Idaho Power, and non-utility expenses allocated to IDACORP, through cash flows from operations, commercial paper markets, sales of common stock, and credit facilities.

IDACORP's and Idaho Power's net financing cash ~~inflows~~outflows for the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, were ~~$53~~$39 million and ~~$58~~$36 million, respectively. ~~The following are significant items and transactions that affected financing cash flows in 2020:~~

•~~in April 2020, Idaho Power issued $230 million in principal amount~~In the first three months of its 4.20 percent first mortgage bonds, secured medium term notes, Series K, maturing March 1, 2048. The bonds were issued at a reoffer yield of 3.422 percent, which resulted in a net premium of 13.0 percent and net proceeds to Idaho Power of $260 million;

•~~in June 2020, Idaho Power issued $80 million in principal amount of its 1.90 percent first mortgage bonds, secured medium term notes, Series L, maturing July 15, 2030;~~

•in July 2020, Idaho Power redeemed, prior to maturity, $75 million in principal amount of 2.95 percent first mortgage bonds, medium-term notes, Series H due in April 2022. In accordance with the redemption provisions of the notes, the redemption included Idaho Power's payment of a make-whole premium to the holders of the redeemed notes in the aggregate amount of $3 million;

•~~in August 2020, Idaho Power redeemed $100 million in principal amount of 3.40 percent first mortgage bonds due in November 2020; and~~

•2021, IDACORP and Idaho Power paid dividends of approximately ~~$102~~$36 million.

Financing Programs and Available Liquidity

IDACORP Equity Programs: In recent years, IDACORP has entered into sales agency agreements under which it could offer and sell shares of its common stock from time to time through a third-party agent. The most recent sales agency agreement terminated in May 2016. IDACORP has no current plans to issue equity securities other than under its equity compensation plans during ~~2020, and as of the date of this report, IDACORP has not pursued the execution of a new sales agency agreement.~~2021.

Idaho Power First Mortgage Bonds: Idaho Power's issuance of long-term indebtedness is subject to the approval of the IPUC, OPUC, and Wyoming Public Service Commission (WPSC). In April and May 2019, Idaho Power received orders from the IPUC, OPUC, and WPSC authorizing the company to issue and sell from time to time of up to $500 million in aggregate

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principal amount of debt securities and first mortgage bonds, subject to conditions specified in the orders. Following the April 2020 issuance of Series K medium-term notes and the June 2020 issuance of Series L medium-term notes described in the 2020 Annual Report, in Part II, Item 7 - "MD&A - Liquidity and ~~the April 2020 issuance of Series K medium-term notes described above,~~Capital Resources," $190 million of debt securities remains available for issuance under the orders. Authority from the IPUC is effective through May 31, 2022, subject to extension upon request to the IPUC. The OPUC’s and WPSC’s orders do not impose a time limitation for issuances, but the OPUC order does impose a number of other conditions, including a requirement that the interest rates for the debt securities or first mortgage bonds fall within either (a) designated spreads over comparable U.S. Treasury rates or (b) a maximum all-in interest rate limit of seven percent.

In May 2019, Idaho Power filed a shelf registration statement with the SEC, which became effective upon filing, for the offer and sale of an unspecified principal amount of its first mortgage bonds. The issuance of first mortgage bonds requires that Idaho Power meet interest coverage and security provisions set forth in Idaho Power's Indenture of Mortgage and Deed of Trust, dated as of October 1, 1937, as amended and supplemented from time to time (Indenture). Future issuances of first mortgage bonds are subject to satisfaction of covenants and security provisions set forth in the Indenture, market conditions, regulatory authorizations, and covenants contained in other financing agreements.

In June 2020, Idaho Power entered into a selling agency agreement with six banks named in the agreement in

connection with the potential issuance and sale from time to time of up to $500 million aggregate principal amount of first

mortgage bonds, secured medium term notes, Series L (Series L Notes), under Idaho Power’s Indenture of Mortgage and Deed

of Trust, dated as of October 1, 1937, as amended and supplemented (Indenture). Also in June 2020, Idaho Power

entered into the Forty-ninth Supplemental Indenture, dated effective as of June 5, 2020, to the Indenture (Forty-ninth

Supplemental Indenture). The Forty-ninth Supplemental Indenture provides for, among other items the issuance of up to

$500 million in aggregate principal amount of Series L Notes pursuant to the Indenture.

The Indenture limits the amount of first mortgage bonds at any one time outstanding to $2.5 billion, and as a result, the maximum amount of additional first mortgage bonds Idaho Power could issue as of ~~September 30, 2020,~~March 31, 2021, was limited to approximately $534 million. Idaho Power may increase the $2.5 billion limit on the maximum amount of first mortgage bonds outstanding by filing a supplemental indenture with the trustee as provided in the Indenture of Mortgage and Deed of Trust. Separately, the Indenture also limits the amount of additional first mortgage bonds that Idaho Power may issue to the sum of (a) the principal amount of retired first mortgage bonds and (b) 60 percent of total unfunded property additions, as defined in the

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Indenture. As of ~~September 30, 2020,~~March 31, 2021, Idaho Power could issue approximately $1.8 billion of additional first mortgage bonds based on retired first mortgage bonds and total unfunded property additions.

IDACORP and Idaho Power Credit Facilities: In December 2019, IDACORP and Idaho Power entered into ~~Credit Agreements~~amendments to credit agreements for $100 million and $300 million credit facilities, respectively, replacing ~~prior credit~~prior-credit agreements. Each of the credit facilities may be used for general corporate purposes and commercial paper back-up. IDACORP's facility permits borrowings under a revolving line of credit of up to $100 million at any one time outstanding, including swingline loans not to exceed $10 million at any one time and letters of credit not to exceed $50 million at any one time. IDACORP's facility may be increased, subject to specified conditions, to $150 million. Idaho Power's facility permits borrowings through the issuance of loans and standby letters of credit of up to $300 million at any one time outstanding, including swingline loans not to exceed $30 million at any one time and letters of credit not to exceed $50 million at any one time outstanding. Idaho Power's facility may be increased, subject to specified conditions, to $450 million. The credit facilities currently provide for a maturity date of December 6, 2024, though IDACORP and Idaho Power may request up to two-one-year extensions of the credit agreements, subject to certain conditions. Other terms and conditions of the credit facilities are described in the ~~2019~~2020 Annual Report, in Part II, Item 7 - "MD&A - Liquidity and Capital Resources."

Each facility contains a covenant requiring each company to maintain a leverage ratio of consolidated indebtedness to consolidated total capitalization equal to or less than 65 percent as of the end of each fiscal quarter. In determining the leverage ratio, "consolidated indebtedness" broadly includes all indebtedness of the respective borrower and its subsidiaries, including, in some instances, indebtedness evidenced by certain hybrid securities (as defined in the credit agreement). "Consolidated total capitalization" is calculated as the sum of all consolidated indebtedness, consolidated stockholders' equity of the borrower and its subsidiaries, and the aggregate value of outstanding hybrid securities. At ~~September 30, 2020,~~March 31, 2021, the leverage ratios for IDACORP and Idaho Power were 44 percent and 46 percent, respectively. IDACORP's and Idaho Power's ability to utilize the credit facilities is conditioned upon their continued compliance with the leverage ratio covenants included in the credit facilities. There are additional covenants, subject to exceptions, that prohibit certain mergers, acquisitions, and investments, restrict the creation of certain liens, and prohibit entering into any agreements restricting dividend payments from any material subsidiary.

At ~~September 30, 2020,~~March 31, 2021, IDACORP and Idaho Power believed they were in compliance with all facility covenants. Further, IDACORP and Idaho Power do not anticipate they will be in violation or breach of their respective debt covenants during ~~2020.~~2021.

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Without additional approval from the IPUC, the OPUC, and the WPSC, the aggregate amount of short-term borrowings by Idaho Power at any one time outstanding may not exceed $450 million. Idaho Power has obtained approval of the IPUC, the OPUC, and the WPSC for the issuance of short-term borrowings through December 2026.

IDACORP and Idaho Power Commercial Paper: IDACORP and Idaho Power have commercial paper programs under which they issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time not to exceed the available capacity under their respective credit facilities, described above. IDACORP's and Idaho Power's credit facilities are available to the companies to support borrowings under their commercial paper programs. The commercial paper issuances are used to provide an additional financing source for the companies' short-term liquidity needs. The maturities of the commercial paper issuances will vary but may not exceed 270 days from the date of issue. Individual instruments carry a fixed rate during their respective terms, although the interest rates are reflective of current market conditions, subjecting the companies to fluctuations in interest rates.

Available Short-Term Borrowing Liquidity

The table below outlines available short-term borrowing liquidity as of the dates specified (in thousands).


		September 30, 2020				December 31, 2019					March 31, 2021				December 31, 2020
		IDACORP(2)		Idaho Power		IDACORP(2)		Idaho Power			IDACORP(2)		Idaho Power		IDACORP(2)		Idaho Power
Revolving credit facility	Revolving credit facility	$	100,000	$	300,000	$	100,000	$	300,000	Revolving credit facility	$	100,000	$	300,000	$	100,000	$	300,000
Commercial paper outstanding	Commercial paper outstanding	—		—		—		—		Commercial paper outstanding	—		—		—		—
Identified for other use(1)	Identified for other use(1)	—		(24,245)		—		(24,245)		Identified for other use(1)	—		(24,245)		—		(24,245)
Net balance available	Net balance available	$	100,000	$	275,755	$	100,000	$	275,755	Net balance available	$	100,000	$	275,755	$	100,000	$	275,755

(1) Port of Morrow and American Falls bonds that Idaho Power could be required to purchase prior to maturity under the optional or mandatory purchase provisions of the bonds, if the remarketing agent for the bonds is unable to sell the bonds to third parties.

(2) Holding company only.

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On April 23, ~~2020,~~2021, IDACORP had no loans outstanding under its credit facilities and had no commercial paper outstanding. Idaho Power had no loans outstanding under its credit facilities and no commercial paper outstanding. During the three ~~and nine~~ months ended ~~September 30, 2020,~~March 31, 2021, IDACORP and Idaho Power borrowed no short-term commercial paper.

Impact of Credit Ratings on Liquidity and Collateral Obligations

IDACORP’s and Idaho Power’s access to capital markets, including the commercial paper market, and their respective financing costs in those markets, depend in part on their respective credit ratings. There have been no changes to IDACORP's or Idaho Power's ratings or ratings outlook by Standard & Poor’s Ratings Services or Moody’s Investors Service from those included in the ~~2019~~2020 Annual Report. However, any rating can be revised upward or downward or withdrawn at any time by a rating agency if it decides that the circumstances warrant the change.

Idaho Power maintains margin agreements relating to its wholesale commodity contracts that allow performance assurance collateral to be requested of and/or posted with certain counterparties. As of ~~September 30, 2020,~~March 31, 2021, Idaho Power had posted no$0.8 million cash performance assurance collateral related to these contracts. Should Idaho Power experience a reduction in its credit rating on its unsecured debt to below investment grade, Idaho Power could be subject to requests by its wholesale counterparties to post additional performance assurance collateral, and counterparties to derivative instruments and other forward contracts could request immediate payment or demand immediate ongoing full daily collateralization on derivative instruments and contracts in net liability positions. Based upon Idaho Power’s current energy and fuel portfolio and market conditions as of ~~September 30, 2020,~~March 31, 2021, the amount of additional collateral that could be requested upon a downgrade to below investment grade is approximately ~~$12.9~~$8.2 million. To minimize capital requirements, Idaho Power actively monitors its portfolio exposure and the potential exposure to additional requests for performance assurance collateral through sensitivity analysis.

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Capital Requirements

Idaho Power's construction expenditures, excluding AFUDC, were ~~$205~~$74 million during the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. The cash expenditure amount excludes net costs of removing assets from service. The table below presents Idaho Power's estimated accrual-basis additions to electric plant for ~~2020~~2021 (including amounts incurred to-date) through ~~2024~~2025 (in millions of dollars). The amounts in the table exclude AFUDC but include net costs of removing assets from service that Idaho Power expects would be eligible to include in rate base in future rate case proceedings. However, given the uncertainty associated with the timing of infrastructure projects and associated expenditures, actual expenditures and their timing could deviate substantially from those set forth in the table.

2020 2021 2022-2024
Expected capital expenditures (excluding AFUDC) $300-$310 $305-$315 $1,000-$1,050


	2021	2022	2023-2025
Expected capital expenditures (excluding AFUDC)	$320-$330	$340-$350	$1,250-$1,350

Major Infrastructure Projects: Idaho Power is engaged in the development of a number of significant projects and has entered into arrangements with third parties concerning joint infrastructure development. The discussion below provides a summary of developments in certain of those projects since the discussion of these matters included in Part II, Item 7 - "MD&A - Capital Requirements" in the ~~2019~~2020 Annual Report. The discussion below should be read in conjunction with that report.

Boardman-to-Hemingway Transmission Line: The Boardman-to-Hemingway line, a proposed 300-mile, high-voltage transmission project between a substation near Boardman, Oregon, and the Hemingway substation near Boise, Idaho, would provide transmission service to meet future resource needs. In January 2012, Idaho Power entered into a joint funding agreement with PacifiCorp and the Bonneville Power Administration (BPA) to pursue permitting of the project. The joint funding agreement provides that Idaho Power's interest in the permitting phase of the project would be approximately 21 percent. Total cost estimates for the project are between $1.0 billion and $1.2 billion, including Idaho Power's AFUDC. This cost estimate is preliminary and excludes the impacts of inflation and price changes of materials and labor resources that may occur following the date of the estimate.

Approximately ~~$111~~$116 million, including AFUDC, has been expended on the Boardman-to-Hemingway project through ~~September 30, 2020.~~March 31, 2021. Pursuant to the terms of the joint funding arrangements, Idaho Power has received ~~$75~~$76 million in reimbursement as of ~~September 30, 2020,~~March 31, 2021, from project co-participants for their share of costs. As of the date of this report, no material co-participant reimbursements are outstanding. Joint permitting participants are obligated to reimburse Idaho Power for their share of any future project permitting expenditures or agreed upon early construction expenditures incurred by Idaho Power under the terms of the joint funding agreement.

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Idaho Power's share of the remaining permitting phase of the project (excluding AFUDC) is included in the capital requirements table above, which includes approximately $160 million of Idaho Power's share of estimated costs related to design, material procurement, and construction, which are primarily included in the table in the period 2023-2025. These preliminary estimates of Idaho Power’s share of construction costs could significantly change as the construction timeline nears and as the project participants further align on future activities, allocation of ownership interests, and cost estimates. In addition to the estimated costs included in the table above, costs will continue to be incurred until the transmission line is placed into service.

The permitting phase of the Boardman-to-Hemingway project is subject to federal review and approval by the U.S. Bureau of Land Management (BLM), the U.S. Forest Service, the Department of the Navy, and certain other federal agencies. The BLM issued its record of decision for the project in November 2017, approving a right-of-way grant for the project to cross approximately 86 miles of BLM-administered land. The U.S. Forest Service issued its record of decision in November 2018 authorizing the project to cross approximately seven miles of National Forest lands. In September 2019, the Department of the Navy issued its record of decision authorizing the project to cross approximately seven miles of Department of the Navy lands. In November 2019, third parties filed a lawsuit in the federal district court of Oregon challenging the BLM and U.S. Forest Service records of decision for the Boardman-to-Hemingway project. In February 2020, Idaho Power filed a motion to intervene in the legal proceeding, and the motion was granted in April 2020. The litigation ~~is in its initial phases and~~ remains pending as of the date of this ~~report.~~report, and a decision is expected in the second quarter of 2021.

In the separate State of Oregon ~~state~~ permitting process, the Oregon Department of Energy (ODOE) issued a Proposed Order in July 2020 that recommends approval of the project to the state's Energy Facility Siting Council (EFSC). Idaho Power currently expects the EFSC to issue a final order and site certificate in the second half of ~~2021.~~2022. Given the status of ongoing permitting activities and the construction period, Idaho Power expects the in-service date for the transmission line will be no earlier than 2026.

As the current joint funding agreement covers primarily permitting activities, which are nearing completion, Idaho Power and its co-participants are exploring several scenarios of ownership, asset, and service arrangements aimed at maximizing the value of the project to each of the co-participants' customers. One ~~option includes~~such scenario could include Idaho Power acquiring BPA’s ownership share and providing long-term transmission service to BPA in lieu of BPA ownership. Under the current joint funding agreement, Idaho Power has an approximate 21 percent interest, BPA has ~~approximately~~an approximate 24 percent interest, and PacifiCorp has an approximate 55 percent interest in the permitting phase. ~~Discussions are~~The participants continue to engage in preliminary discussions regarding the ownership structure during the design and construction phases and thereafter, and any changes would be addressed through amended or new funding agreements for the ~~design and construction~~future phases of the ~~project and would be subject to regulatory approval.~~

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project.

Gateway West Transmission Line: Idaho Power and PacifiCorp are pursuing the joint development of the Gateway West project, a high-voltage transmission lines project between a substation located near Douglas, Wyoming, and the Hemingway substation located near Boise, Idaho. In January 2012, Idaho Power and PacifiCorp entered a joint funding agreement for permitting of the project. Idaho Power has expended approximately ~~$44~~$45 million, including Idaho Power's AFUDC, for its share of the permitting phase of the project through ~~September 30, 2020.~~March 31, 2021. As of the date of this report, Idaho Power estimates the total cost for its share of the project (including both permitting and construction) to be between $250 million and $450 million, including AFUDC. Idaho Power's estimated share of ongoing expenditures for the permitting phase of the project (excluding AFUDC) is included in the capital requirements table above. Idaho Power's share of potential early construction costs are excluded from the capital requirements table above because the timing of construction of Idaho Power's portion of the project is uncertain. Idaho Power and PacifiCorp continue to coordinate the timing of next steps to best meet customer and system needs.

Defined Benefit Pension Plan Contributions

Idaho ~~Power contributed $40 million to its defined benefit pension plan during the first nine months of 2020. Idaho Power has no further~~Power's minimum required ~~contributions~~contribution to be made to its defined benefit pension plan during ~~2020~~2021 is estimated to be $4 million. Idaho Power contributed $10 million to the plan in April 2021. Depending on market conditions and ~~does not expect~~cash flows, including any effects of the COVID-19 pandemic during the remainder of 2021, Idaho Power is considering contributing up to ~~make any~~an additional ~~contributions.~~$30 million to the pension plan. Idaho Power's contributions are made in a continued effort to balance the regulatory collection of these expenditures with the amount and timing of contributions and to mitigate the cost of being in an underfunded position. The primary impact of pension contributions is on the timing of cash flows, as the timing of cost recovery lags behind contributions.

In March 2021, the American Rescue Plan Act of 2021 was signed into law, which included changes to the funding rules for single employer pension plans. The minimum funding requirements have been lowered by revising liability discount rates and by lengthening the period over which unfunded liabilities must be amortized. Idaho Power is evaluating the potential impacts of

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the American Rescue Plan, but as of the date of this report does not believe it will materially affect Idaho Power's near-term pension contribution plans.

Contractual Obligations

During the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, IDACORP's and Idaho Power's contractual obligations, outside the ordinary course of business, did not change materially from the amounts disclosed in the ~~2019~~2020 Annual Report, except that Idaho Power entered into ~~one~~two new ~~contract with a hydropower PURPA-qualifying facility and ten new replacement contracts for expiring power~~long-term transmission purchase agreements, ~~with hydropower and cogeneration PURPA-qualifying facilities,~~ which increased Idaho Power's contractual purchase obligations by approximately ~~$28~~$16 million over the 5-year terms of the contracts, and one new replacement contract for an expiring power purchase agreement a PURPA-qualifying hydropower facility, which increased Idaho Power's contractual purchase obligations by approximately $15 million over the 20-year ~~terms~~term of the ~~contracts.~~contract.

Off-Balance Sheet Arrangements

IDACORP's and Idaho Power's off-balance sheet arrangements have not changed materially from those reported in MD&A in the ~~2019~~2020 Annual Report.

REGULATORY MATTERS

Introduction

Idaho Power is under the jurisdiction (as to rates, service, accounting, and other general matters of utility operation) of the IPUC, the OPUC, and the FERC. The IPUC and OPUC determine the rates that Idaho Power is authorized to charge to its retail customers. Idaho Power is also under the regulatory jurisdiction of the IPUC, the OPUC, and the WPSC as to the issuance of debt and equity securities. As a public utility under the Federal Power Act (FPA), Idaho Power has authority to charge market-based rates for wholesale energy sales under its FERC tariff and to provide transmission services under its OATT. Additionally, the FERC has jurisdiction over Idaho Power's sales of transmission capacity and wholesale electricity, hydropower project relicensing, and system reliability, among other items.

Idaho Power's development of regulatory filings takes into consideration short-term and long-term needs for rate relief and involves several factors that can affect the timing of these regulatory filings. These factors include, among others, in-service dates of major capital investments, the timing and magnitude of changes in major revenue and expense items, and customer growth rates. Idaho Power's most recent general rate cases in Idaho and Oregon were filed during 2011. In 2012, large single-issue rate cases for the Langley Gulch power plant in Idaho and Oregon resulted in the resetting of base rates in both Idaho and Oregon. Idaho Power also reset its base-rate power supply expenses in the Idaho jurisdiction for purposes of updating the collection of costs through retail rates in 2014 but without a resulting net increase in rates. The IPUC and OPUC have also approved base rate changes in single issue cases subsequent to 2014. Between general rate cases, Idaho Power relies upon customer growth, a fixed cost adjustment mechanism, power cost adjustment mechanisms, tariff riders, and other mechanisms to mitigate the impact of regulatory lag, which refers to the period of time between making an investment or incurring an expense and recovering that investment or expense and earning a return. Management's regulatory focus in recent years has been largely on regulatory settlement stipulations and the design of rate mechanisms. Idaho Power continues to assess the need and timing of filing a general rate case in its two retail jurisdictions, based on its consideration of factors such as those described above, but does not anticipate filing a general rate case in the next twelve months.

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The outcomes of significant proceedings are described in part in this report and further in the ~~2019~~2020 Annual Report. In addition to the discussion below, which includes notable regulatory developments since the discussion of these matters in the ~~2019~~2020 Annual Report, refer to Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report for additional information relating to Idaho Power's regulatory matters and recent regulatory filings and orders.

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Notable Pending Retail Rate Changes ~~and Pending Rate Changes~~ During ~~2020~~2021

During ~~2020,~~2021, Idaho Power filed rate change applications ~~and received orders~~ in notable regulatory matters summarized in the table below.

Description

Status

Estimated Annual Rate Impact(1)

Notes

Power Cost Adjustment Mechanism - Idaho

~~New PCA rate became effective June 1, 2020~~Filed April 15, 2021; Pending

$~~58.7~~39.1 million PCA increase for the period from June 1, ~~2020,~~2021, to May 31, ~~2021~~2022

The ~~potential revenue~~income statement impact of ~~rate increases and decreases~~revenue changes associated with the Idaho PCA mechanism is largely offset by associated increases and decreases in actual power supply costs and amortization of deferred power supply costs. The rate increase reflects a forecasted reduction in low-cost hydroelectric generation as well as higher costs associated with PURPA. The net increase in PCA revenues also reflects a smaller credit to customers through the ~~return to a more normal level of power supply costs as wholesale market prices have come down from unusually high levels reflected in last year's PCA.~~true-up component.

Fixed Cost Adjustment Mechanism - Idaho

~~New FCA rate became effective June 1, 2020~~Filed March 15, 2021; Pending

$~~0.7~~2.8 million FCA increase for the period from June 1, ~~2020,~~2021, to May 31, ~~2021~~2022

The FCA is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by partially separating (or decoupling) the recovery of fixed costs from the volumetric kilowatt-hour charge and instead linking it to a set amount per customer.

~~Boardman Power Plant (Boardman) Investment Expenditures - Idaho~~

~~Filed August 21, 2020; Pending~~

~~$3.9 million decrease~~

In August 2020, Idaho Power filed an application with the IPUC requesting an order to find that Idaho Power prudently incurred all actual Boardman investments made through June 30, 2020, and to decrease customer rates $3.9 million to reflect full depreciation of all Boardman investments, effective January 1, 2021, an overall decrease of 0.33%.

~~Boardman Power Plant (Boardman) Investment Expenditures - Oregon~~

~~Approved; Effective November 1, 2020~~

~~$0.3 million decrease~~

In October 2020, the OPUC approved Idaho Power's application requesting a decrease in customer rates by $0.3 million, effective November 1, 2020, to reflect that operations at Boardman ceased in October 2020, an overall decrease of 0.52%.

~~Langley Gulch Power Plant Revenue Requirement-Oregon~~

~~Approved; Effective November 1, 2020~~

~~$0.4 million annual increase~~

In October 2020, the OPUC approved Idaho Power's application requesting an annual increase in customer rates by $0.4 million, effective November 1, 2020, to reflect the revenue requirement variance related to the Langley Gulch Power Plant, an overall increase of 0.69%.

(1) The annual amount collected in rates is typically not recovered on a straight-line basis (i.e., 1/12th per month), and is instead recovered in proportion to retail sales volumes.

Idaho Earnings Support and Sharing from Idaho Settlement Stipulation

In October 2014, the IPUC issued an order approving the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation extending, with modifications, the terms of a December 2011 Idaho settlement stipulation for the period from 2015 through 2019. A May 2018 Idaho settlement stipulation related to tax reform (May 2018 Idaho Tax Reform Settlement Stipulation) provides for the extension of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation beyond the initial termination date of December 31, 2019, with modified terms related to the ADITC and revenue sharing mechanism that became effective beginning January 1, 2020. The more specific terms and conditions of the October 2014 Idaho Earnings Support and Sharing Settlement Stipulation and the May 2018 Idaho Tax Reform Settlement Stipulation areis described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the ~~2019~~2020 Annual Report. IDACORP and Idaho Power believe that the terms allowing additional amortization of ~~ADITC~~accumulated deferred investment tax credits (ADITC) in the settlement stipulations provide the companies with a greater degree of earnings stability than would be possible without the terms of the stipulations in effect.

Based on its estimate of full-year ~~2020~~2021 Idaho ROE, in ~~both~~ the ~~third~~first quarter ~~and first nine months~~ of ~~2020,~~2021, Idaho Power recorded no additional ADITC amortization or provision against current revenues for sharing of earnings with customers for ~~2020~~2021 under the May 2018 Idaho Tax Reform Settlement Stipulation. Accordingly, at ~~September 30, 2020,~~March 31, 2021, the full $45 million of additional ADITC remained available for future use. Idaho Power also recorded no additional ADITC amortization

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or provision against revenues for sharing of earnings with customers during the ~~third~~first quarter ~~and first nine months~~ of ~~2019,~~2020, based on its then-current estimate of full-year ~~2019~~2020 Idaho ROE.

Change in Deferred (Accrued) Net Power Supply Costs and the Power Cost Adjustment Mechanisms

Deferred (accrued) power supply costs represent certain differences between Idaho Power's actual net power supply costs and the costs included in its retail rates, the latter being based on annual forecasts of power supply costs. Deferred (accrued) power supply costs are recorded on the balance sheets for future recovery or refund through customer rates.

~~The table that follows summarizes the change in deferred (accrued) net power supply costs during the nine months ended September 30, 2020 (in millions).~~

Idaho Oregon Total
Deferred (accrued) net power supply costs at December 31, 2019 $ (48.2) $ (0.3) $ (48.5)
Current period net power supply costs deferred (accrued) (26.2) — (26.2)
Prior amounts refunded through rates 42.7 0.1 42.8
SO2 allowance and renewable energy certificate sales
(3.4) (0.1) (3.5)
Interest and other 1.8 — 1.8
Deferred (accrued) net power supply costs at September 30, 2020 $ (33.3) $ (0.3) $ (33.6)

Idaho Power's power cost adjustment mechanisms in its Idaho and Oregon jurisdictions address the volatility of power supply costs and provide for annual adjustments to the rates charged to retail customers. The power cost adjustment mechanisms and associated financial impacts are described in "Results of Operations" in this MD&A and in Note 3 - "Regulatory Matters" to the condensed consolidated financial statements included in this report. With the exception of power supply expenses incurred under PURPA and certain demand response program costs that are passed through to customers substantially in full, the Idaho PCA mechanism allows Idaho Power to pass through to customers 95 percent of the differences in actual net power supply expenses as compared with base net power supply expenses, whether positive or negative. Thus, the primary financial statement impact of power supply cost deferrals or accruals is that the timing of when cash is paid out for power supply expenses differs from when those costs are recovered from customers, impacting operating cash flows from year to year.

~~Deferred Costs for COVID-19 Public Health Crisis~~

Idaho Power has incurred, and expects to continue to incur, costs associated with its response to the COVID-19 public health crisis, including information technology expenditures for remote work, higher than average levels of bad debt expense related to uncollectible accounts associated in part with its temporary suspension of disconnects and late payment fees. Accordingly, in March and April 2020, Idaho Power submitted applications to the OPUC and IPUC, respectively, requesting authorization to defer incremental costs associated with its response to the COVID-19 public health crisis. Idaho Power requested authorization to establish a new regulatory asset to record the deferral of incremental costs and, in the Idaho jurisdiction, unrecovered costs associated with the COVID-19 response. Both applications requested only the authority to defer these costs and to determine ratemaking treatment at a later date. Subsequent to Idaho Power's application, the IPUC opened a general docket to address the issue. In July 2020, the IPUC issued an order authorizing Idaho Power and other utilities to account for unanticipated, emergency-related expenses incurred due to the COVID-19 public health crisis by recording the expenses as regulatory assets for possible recovery through future rates. The order also requires utilities to account for the decreases in expenses resulting from the COVID-19 public health crisis, such as reduced employee travel and training, and apply these reductions in expenses to offset the deferral account balance. Additionally, the order addressed potential reductions in revenue due to the COVID-19 public health crisis, allowing utilities to track reduced revenues from customer classes not included in an FCA-type mechanism for possible movement to the regulatory asset account at a later date. Idaho Power resumed assessing late fees and disconnections in early August 2020 in its Idaho service area. As of September 30, 2020, Idaho Power had recorded a $0.7 million regulatory asset for its estimate of unanticipated, emergency-related expenses, net of estimated savings. On October 20, 2020, the OPUC issued an order authorizing Idaho Power to defer certain COVID-19-related costs for the 12-month period beginning March 24, 2020.

~~Alternative AFUDC Calculation Formula~~

In June 2020, the FERC issued an order allowing jurisdictional utilities the option to apply an alternative AFUDC calculation formula for March 2020 through February 2021 to reflect conditions that arose as a result of responses to the COVID-19 pandemic. The optional alternative AFUDC calculation recomputes AFUDC each month by substituting average short-term debt outstanding in 2019 for the actual amounts in March 2020 through February 2021. The order does not propose any other

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~~changes to~~The following table summarizes the ~~formula. As of~~change in deferred (accrued) net power supply costs during the ~~date of this report, Idaho Power does not believe its AFUDC rate would be affected by the alternative calculation formula, and thus far, has not elected to apply the option.~~three months ended March 31, 2021 (in millions).

~~Open Access Transmission Tariff~~

Idaho Power uses a formula rate for transmission service provided under its OATT, which allows transmission rates to be updated annually based primarily on financial and operational data Idaho Power files with the FERC. In September 2020, Idaho Power filed its 2020 final transmission rate with the FERC, reflecting a transmission rate of $29.95 per "kW-year," effective for the period from October 1, 2020, to September 30, 2021. A "kW-year" is a unit of electrical capacity equivalent to 1 kilowatt of power used for 8,760 hours. Idaho Power's final rate was based on a net annual transmission revenue requirement of $117.7 million. The OATT rate in effect from October 1, 2019, to September 30, 2020, was $27.32 per kW-year based on a net annual transmission revenue requirement of $107.0 million. The increase in the OATT rate is largely attributable to decreased short-term firm and non-firm transmission revenues in 2019, which serve as an offset to the transmission revenue requirement.


	Idaho		Oregon		Total
Deferred (accrued) net power supply costs at December 31, 2020	$	(14.7)	$	(0.3)	$	(15.0)
Current period net power supply costs deferred (accrued)	(15.3)		—		(15.3)

Prior amounts refunded through rates	9.6		—		9.6
SO2 allowance and renewable energy certificate sales	(2.6)		(0.1)		(2.7)
Interest and other	0.7		—		0.7
Deferred (accrued) net power supply costs at March 31, 2021	$	(22.3)	$	(0.4)	$	(22.7)

2019 Integrated Resource Plan

Idaho Power filed its most recent ~~IRP~~Integrated Resource Plan (IRP) with the IPUC and OPUC in June 2019 and filed an amended 2019 IRP with additional information and modeling results in January 2020, as described in Part 1, Item 1 - "Resource Planning and Renewable Energy Projects" in the ~~2019~~2020 Annual Report. ~~Subsequent to the January 2020 filing, Idaho Power noted further complications with its modeling approach.~~ In ~~July 2020, the OPUC granted Idaho Power's motion to suspend the procedural schedule for the Oregon 2019 IRP case,~~March 2021 and ~~the IPUC issued an order vacating the comment deadline previously established in the Idaho 2019 IRP case. In October 2020, Idaho Power filed its Second Amended 2019 IRP with~~April 2021, the IPUC and OPUC, ~~after completing its review of certain inputs~~respectively, acknowledged the second amended 2019 IRP. Also in March 2021, in response to ~~the model the company uses for the IRP, such as operational constraints and financial assumptions, and the modeling system’s logic. As a result of~~ Idaho Power's ~~review of~~request to delay filing the 2021 IRP ~~it made only one change~~beyond the typical end-of-June deadline, the IPUC directed Idaho Power to file a separate petition to request an extension to its ~~near-term IRP action plan~~2021 filing deadline to ~~potentially end its participation in unit 2 of its North Valmy plant as early as 2022, as opposed~~provide interested parties with an opportunity to ~~2025. However, as noted in~~comment on the 2019 IRP, there is considerable uncertainty surrounding the resource sufficiency estimates and project completion dates, including uncertainty around the timing and extent of third-party development of renewable resources, fuel commodity prices, the actual completion date of the Boardman-to-Hemingway transmission project, and the economics and logistics of plant retirements. Over time, these uncertainties, as well as others, will likely result in changes to the desirability of the preferred portfolio and adjustments to the timing and nature of anticipated and actual actions. As of the date of this report, the proceedings relating to the Second Amended 2019 IRP are pending at the IPUC and OPUC.request.

Renewable and Other Energy Contracts

Idaho Power has contracts for the purchase of electricity produced by third-party owned generation facilities, most of which produce energy with the use of renewable generation sources such as wind, solar, biomass, small hydropower, and geothermal. The majority of these contracts are entered into as mandatory purchases under PURPA. As of ~~September 30, 2020,~~March 31, 2021, Idaho Power had contracts to purchase energy from ~~131 on-line~~129 online PURPA projects. An additional three contracts are with ~~on-line~~online non-PURPA projects, including the Elkhorn Valley wind project with a 101-MW nameplate capacity.

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The following table sets forth, as of ~~September 30, 2020,~~March 31, 2021, the resource type and nameplate capacity of Idaho Power's signed agreements for power purchases from PURPA and non-PURPA generating facilities. These agreements have original contract terms ranging from one to 35 years.


Resource Type	Resource Type	On-line megawatts (MW)	Under Contract but not yet On-line (MW)	Total Projects under Contract (MW)	Resource Type	On-line megawatts (MW)	Under Contract but not yet On-line (MW)	Total Projects under Contract (MW)
PURPA:	PURPA:				PURPA:
Wind	Wind	627	—	627	Wind	627	—	627
Solar	Solar	316	3	319	Solar	316	3	319
Hydropower	Hydropower	147	3	150	Hydropower	149	1	150
Other	Other	52	—	52	Other	44	—	44
Total	Total	1,142	6	1,148	Total	1,136	4	1,140
Non-PURPA:	Non-PURPA:				Non-PURPA:
Wind	Wind	101	—	101	Wind	101	—	101
Geothermal	Geothermal	35	—	35	Geothermal	35	—	35
Solar	Solar	—	120	120	Solar	—	120	120
Total	Total	136	120	256	Total	136	120	256

The projects not yet ~~on-line~~online include ~~two~~one PURPA-qualifying facility hydropower ~~projects~~project that ~~are~~is scheduled to be ~~on-line in 2021~~online later this year and one PURPA-qualifying facility solar project scheduled to be on-line in 2022. The non-PURPA solar project is scheduled to be ~~on-line~~online in 2022.

In July 2020, the FERC issued Order No. 872, ~~that~~which could affect how states determine PURPA project avoided cost rates for purchases of power generated from qualifying facilities (QF), which facilities are eligible for QF status, whether and when certain QFs can enter into purchase agreements with utilities, and how parties can contest the eligibility of a generation facility

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seeking QF status. As of the date of this report, Idaho Power is unable to determine the impact of these potential changes on the company's future obligations for new PURPA power purchase contracts. Further action by the state public utility commissions is required to implement many of the changes. While the ultimate impact of implementation of those changes is yet to be determined, taken as a whole, Idaho Power believes that the changes could reduce the number of future PURPA generation projects or the amount paid to the projects for power. Substantially all PURPA power purchase costs are recovered through base rates and Idaho Power's power cost adjustment mechanisms.

Customer-Owned Generation Filings

Customer-owned generation allows customers to install solar panels or other on-site energy-generating resources and connect them to Idaho Power’s grid. If a customer requires more energy than its system generates, it utilizes energy supplied by Idaho Power’s grid. If ~~its~~a customer's system generates more energy than the customer uses, the energy goes back to the grid and Idaho Power applies a corresponding kWh credit to the customer’s bill. In May 2018, the IPUC issued an order authorizing the creation of two new customer classes for residential and small commercial customers who install their own on-site generation, with no change to pricing or compensation. Since October 2018, Idaho Power has ~~initiated~~filed various cases with the IPUC related to ~~studying~~customer generation as described in Part II, Item 7 - "Regulatory Matters" in the ~~costs and benefits of customer-owned generation on Idaho Power’s system, and exploring whether, and to what extent, there should be modifications to~~2020 Annual Report. In March 2021, the ~~customer-owned generation pricing structure for residential and small general service customers, and large commercial, industrial, and irrigation customers. The~~ IPUC issued ~~orders in one of the residential and small commercial cases during December 2019 and February 2020 directing~~an order approving Idaho Power to (1) complete additional studies related to the costs and benefits of customer generation before changes to the compensation structure are implemented, and (2) continue to allow customers with on-site generation prior to December 20, 2019, to be subject to the billing terms in place onPower's application as filed that date until December 20, 2045. In June 2020, Idaho Power filed an application with the IPUC seeking authority to remove the existing two-meter requirement for new large commercial, industrial, and irrigation (CI&I) customers with on-site generation and to establish a ten-year grandfathering term for existing CI&I customers with on-site generation. In July 2020, Idaho Power filed an application with the IPUC seeking to establishestablishes a smart inverter requirement for all ~~customers with~~new on-site ~~generation. As of~~energy-generating resources interconnected to the ~~date of this report, Idaho Power does not expect the pending cases relating to customer-owned generation matters to materially affect its financial condition or results of operations.~~company's system, among other things.

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Relicensing of Hydropower Projects

HCC Relicensing: In connection with Idaho Power's efforts to relicense the HCC, Idaho Power's largest hydropower complex and a major relicensing effort, as described in more detail in the ~~2019~~2020 Annual Report in Part II, Item 7 - "Regulatory Matters," Idaho Power filed water quality certification applications, required under Section 401 of the Clean Water Act (CWA), with the states of Idaho and Oregon requesting that each state certify that any discharges from the project comply with applicable state water quality standards. Idaho Power ~~has been working~~continues to work with the states to identify measures that will provide reasonable assurance that discharges from the HCC will adequately address applicable water quality standards.

In April 2019, the states of Idaho and Oregon, along with Idaho Power, reached a settlement pertaining to the CWA Section 401 certification that requires Idaho Power to increase the number of Chinook salmon it releases each year through expanded hatchery production. Additionally, Idaho Power is required to fund a total of $12 million of research and water quality improvements in the HCC over a 20-year period following the issuance of the license. Idaho Power estimates that the combined cost of the mandated water quality improvements and expanded hatchery production is $20 million over the first 20 years of the new license term. In May 2019, Oregon and Idaho issued final CWA Section 401 certifications. These certifications have been submitted to the FERC as part of the relicensing process. In July 2019, three third-parties filed lawsuits against the Oregon Department of Environmental Quality in Oregon state court challenging the Oregon CWA Section 401 certification based on fish passage, water temperature, and mercury issues associated with the Snake River and the HCC. Two of the lawsuits were consolidated, and Idaho Power has intervened in that lawsuit. Idaho Power is closely monitoring the other pending lawsuit. No parties challenged the Idaho CWA 401 certification. In December 2019, Idaho Power filed an Offer of Settlement with the FERC requesting specific language be included in the new HCC license based upon the settlement among Idaho, Oregon, and Idaho Power. During the first quarter of 2020, the FERC received several comments opposing the Offer of Settlement and its decision relating to the Offer of Settlement is pending as of the date of this report.

In July 2020, Idaho Power submitted to the FERC its supplement to the final license application that incorporated the settlement agreement reached between Idaho and Oregon on the CWA Section 401 certifications, and provided feedback on proposed modification of the 2007 final environmental impact statement for the HCC. The July 2020 filing also contained an updated cost analysis of the HCC and a request for the FERC to issue a 50-year license and initiate a supplemental National Environmental Policy Act (NEPA) process at the FERC. Idaho Power prepared draft biological assessments in consultation with the U.S. Fish and Wildlife Service (USFWS) and the National Marine Fisheries Service (NMFS) and filed those with the FERC in October 2020. The draft biological assessments provide ~~the necessary~~ information to the USFWS and the NMFS that is necessary to issue their biological opinion as required under the Endangered Species Act (ESA). In December 2020, FERC staff issued six requests for additional information from Idaho Power to help with the analysis and baseline for the project moving forward. Idaho Power has responded to five of the six requests as of the date of this report and plans to respond to the remaining request by June 2021. Once FERC has the ~~biological assessments are finalized,~~additional information, Idaho Power expects it to decide what, if any, additional environmental analysis is necessary to issue a license. Idaho Power expects the FERC towill also initiate formal ESA consultation with the USFWS and the NMFS. The FERC could issue an HCC license as early as 2022, but as of the date of this report, Idaho Power ~~continues to expect the FERC to issue a license for the HCC no earlier than 2022.~~believes issuance is more likely in 2023 or thereafter.

Costs for the relicensing of Idaho Power's hydropower projects are recorded in construction work in progress until new multi-year licenses are issued by the FERC, at which time the charges are transferred to electric plant in service. Idaho Power expects to seek ~~timely~~ recovery of relicensing costs and costs related to a new long-term license through the ~~ratemaking~~regulatory process. Relicensing costs of ~~$346~~$365 million (including AFUDC) for the HCC were included in construction work in progress at ~~September 30, 2020.~~

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March 31, 2021. As of the date of this report, the IPUC authorizes Idaho Power to include in its Idaho jurisdiction rates $8.8 million of AFUDC annually relating to the HCC relicensing project. Collecting these amounts currently will reduce future collections when HCC relicensing costs are approved for recovery in base rates. As of ~~September 30, 2020,~~March 31, 2021, Idaho Power's regulatory liability for collection of AFUDC relating to the HCC was approximately ~~$165~~$174 million.

When the FERC issues a new long-term license, Idaho Power will begin operating under the requirements contained in the new license. Idaho Power expects those requirements to increase both O&M expenditures and capital expenditures. Because Idaho Power is uncertain when the FERC will issue a new license, it has not included the expected capital expenditure increases in the “Capital Requirements” section of “Liquidity and Capital Resources” of this MD&A. Idaho Power is unable to predict the exact timing of issuance of a new license for the HCC, or the ultimate financial or operational requirements of a new license.

American Falls Relicensing: In April 2020, the FERC formally initiated the relicensing proceeding for the American Falls hydropower facility, which is Idaho Power's largest hydropower facility outside of the HCC, with a generating capacity of 92.3 MW. Idaho Power owns the generation facility but not the structural dam itself, which is owned by the U.S. Bureau of Reclamation. The FERC recognized Idaho Power’s pre-application document, including a proposed process plan and schedule, and recognized Idaho Power’s intent to file an application for a license. A final license application is due to the FERC in 2023. The relicensing proceeding will begin the process of informal ESA Section 7 consultation with ~~Fish and Wildlife Service~~the USFWS and Section 106 of the National Historic Preservation Act consultation with the Idaho State Historic Preservation Office. American Falls' current license expires in 2025, and as of the date of this report, Idaho Power expects the FERC to issue a license for this facility prior to the expiration.

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ENVIRONMENTAL MATTERS

Overview

Idaho Power is subject to a broad range of federal, state, regional, and local laws and regulations designed to protect, restore, and enhance the environment, including the ~~Affordable Clean Energy (ACE) rule and other~~ Clean Air Act, ~~(CAA) requirements,~~ the CWA, the Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Comprehensive Environmental Response, Compensation and Liability Act, and the ESA, among other laws. These laws are administered by various federal, state, and local agencies. In addition to imposing continuing compliance obligations and associated costs, these laws and regulations provide authority to regulators to levy substantial penalties for noncompliance, injunctive relief, and other sanctions. Idaho Power's ~~three~~two jointly-owned coal-fired power plants and three wholly-owned natural gas-fired combustion turbine power plants are subject to many of these regulations. Idaho Power's 17 hydropower projects are also subject to numerous water discharge standards and other environmental requirements.

Compliance with current and future environmental laws and regulations may:

•increase the operating costs of generating plants;

•increase the construction costs and lead time for new facilities;

•require the modification of existing generation plants, which could result in additional costs;

•require the curtailment or shut-down of existing generating plants; or

•reduce the output from current generating ~~facilities.~~facilities; or

•require the acquisition of alternative sources of energy or storage technology, increased transmission wheeling, or require construction of additional generating facilities, which could result in higher costs.

Current and future environmental laws and regulations may increase the cost of operating fossil fuel-fired generation plants and constructing new generation and transmission facilities, in large part through the substantial cost of permitting activities and the required installation of additional pollution control devices. In many parts of the United States, some higher-cost, high-emission coal-fired plants have ceased operation or the plant owners have announced a near-term cessation of operation, as the cost of compliance makes the plants uneconomical to operate. Beyond increasing costs generally, these environmental laws and regulations could affect IDACORP's and Idaho Power's results of operations and financial condition if the costs associated with these environmental requirements and early plant retirements and new replacement resource costs cannot be fully recovered in rates on a timely basis. Part I - "Business - Environmental Regulation and Costs" in the ~~2019~~2020 Annual Report, includes a summary of Idaho Power's expected capital and operating expenditures for environmental matters during the period from ~~2020~~2021 to ~~2022.~~2023. Given the uncertainty of future environmental regulations, Idaho Power is unable to predict its environmental-related expenditures and infrastructure investments beyond that time, though they could be substantial.

A summary of notable environmental matters impacting, or expected to potentially impact, IDACORP and Idaho Power is included in Part II, Item 7 - "MD&A - Environmental Issues" and "MD&A - Liquidity and Capital Resources - Capital Requirements - Environmental Regulation Costs" in the ~~2019~~2020 Annual Report. ~~Developments in certain environmental matters relevant to Idaho Power are described below.~~

~~Endangered Species Act Matters~~

The listing of a species of fish, wildlife, or plants as threatened or endangered under the ESA may have an adverse impact on Idaho Power's ability to construct generation, transmission, or distribution facilities or relicense or operate its hydropower facilities. When a species is added to the federal list of threatened and endangered species, it is protected from “take,” which is defined to include harming the species. The ESA directs that, concurrent with a designation of a threatened or endangered species, and where prudent and determinable, the applicable agencies also designate “any habitat of such species which is then considered to be critical habitat.” The ESA also provides that each federal agency must ensure that any action they authorize, fund, or carry out is not likely to jeopardize the continued existence of a listed species or result in the destruction or adverse modification of its critical habitat. If an action is determined to result in adverse modification of critical habitat, the federal agency must adopt changes to the proposed action to avoid the adverse modification. These changes are often quite extensive and can affect the size, scope, and even the feasibility of a project moving forward.

~~Gateway West Transmission Project and Other Infrastructure - Slickspot Peppergrass Designation~~: In August 2016, the USFWS re-instated the threatened species status of slickspot peppergrass under the ESA. In July 2020, the USFWS published a revised proposed rule designating critical habitat for the species, most of which are located on federal land. Idaho Power expects the listing of the slickspot peppergrass and its existence within or near the proposed route for theGateway West transmission line project and other transmission and distribution lines to increase the cost and timing of permitting and construction of the projects, as it requires an ESA Section 7 consultation and potential mitigation. As of the date of this report, Idaho Power is uncertain whether such increases will be significant.

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~~Lower Snake River Hydroelectric Projects:~~ In May 2016, the United States District Court for the District of Oregon issued an opinion finding that in the context of hydropower facilities owned and operated by the U.S. Army Corps of Engineers (USACE) and located on the lower Snake River, National Oceanic and Atmospheric Administration's National Marine Fisheries Service (NOAA Fisheries) violated the ESA by using improper standards, failing to consider adequately the impact of climate change on habitat conditions, and placing undue reliance on unproven, future federal habitat conservation measures, particularly to the degree that the success of the measures could be undermined by climate change. The court also found that other federal agencies violated the NEPA by failing to prepare a comprehensive environmental impact statement on implementation of the conservation measures ordered by NOAA Fisheries, including analysis of the measures directed by NOAA Fisheries and other reasonable alternatives. The court’s opinion and its emphasis on a climate change-driven analysis element, if generalized to other situations, could require ESA-driven avoidance, minimization, and compensatory mitigation efforts to incorporate surplus measures to ensure species’ protection, which could result in considerable increases in cost beyond the cost of additional analysis in the NEPA process. In September 2016, federal agencies initiated an environmental impact statement (EIS) process to examine hydropower dams on the lower Snake River. In September 2020, the federal agencies signed a record of decision on the EIS that will guide the operation of those dams. None of Idaho Power’s hydropower facilities were included in the studies.

~~Changes to NEPA:~~ In July 2020, the Presidential Administration's Council on Environmental Quality announced its final rule to narrow federal agencies' NEPA obligations. NEPA applies to Idaho Power’s transmission and distribution lines that are located on federal land, as well as other company activities involving federal actions. While Idaho Power believes the changes to NEPA will be subject to legal challenge, if upheld they may expedite and make less costly Idaho Power’s permitting and right-of-way processes for those projects.

~~Clean Water Act Matters~~

~~Definition of “Waters of the United States” Under the CWA~~: In August 2015, the EPA and the USACE's final rule defining the phrase "waters of the United States" (WOTUS) under the CWA became effective (WOTUS Rule). Idaho Power believes that the 2015 rule potentially expanded federal jurisdiction under the CWA beyond traditional navigable waters, interstate waters, territorial seas, tributaries, and adjacent wetlands, to a number of other waters, including waters with a "significant nexus" to those traditional waters. The WOTUS Rule was widely challenged in both federal district and circuit courts. In January 2020, the EPA and USACE finalized the first of a two-part rule to repeal the WOTUS Rule and set new and more expansive standards for determining which waters are subject to the CWA, which substantially restored the definitions and guidance used prior to the WOTUS Rule. In April 2020, the EPA and USACE published the second part of the final rule to replace the WOTUS Rule with the "Navigable Waters Protection Rule" that provides a final definition of "waters of the United States," which ultimately narrows the scope of waters subject to federal regulation under the CWA. The Navigable Waters Protection Rule became effective in June 2020.

Idaho Power believes the repeal rule, the WOTUS Rule, and the Navigable Waters Protection Rule will continue to be challenged in court, but expects that, even if the WOTUS Rule is reinstated in Idaho and should the revised definition take effect in Idaho, while it may cause Idaho Power to incur additional permitting, regulatory requirements, and other costs associated with the rule, the aggregate amount of increased costs is unlikely to have a material adverse effect on Idaho Power's operations or financial condition, in part due to the relatively arid climate of Idaho Power's service area. Similarly, because the CWA, as interpreted even prior to the WOTUS Rule, applies to most of Idaho Power's facilities, including its hydropower plants, Idaho Power does not expect reinstatement would have a material impact on Idaho Power's operations or financial condition.

~~Section 401 Water Quality Certification:~~ As described more fully under “Relicensing of Hydropower Projects” in the "Regulatory Matters" section of this MD&A and in the 2019 Annual Report in Part II, Item 7 - "Regulatory Matters," Idaho Power filed water quality certification applications, required under Section 401 of the CWA, with the states of Idaho and Oregon requesting that each state certify that any discharges from the HCC comply with applicable state water quality standards. The states issued final certifications in May 2019, but the Oregon certification was challenged in state court by third parties. Idaho Power intervened in one of those lawsuits and is closely monitoring the other. In December 2019, Idaho Power filed an Offer of Settlement with the FERC requesting specific language be included in the new HCC license based upon the settlement among Idaho, Oregon, and Idaho Power. During the first quarter of 2020, the FERC received several comments opposing the Offer of Settlement and its decision relating to the Offer of Settlement is pending as of the date of this report.

In July 2020, the EPA published a rule amending regulations intended to implement the CWA Section 401 water quality certification process. The rule clarifies that a state must issue its water quality certification within a reasonable time period, up to one year from the certification request, and limits the scope of the certification to jurisdictional water quality matters. Further, the new regulations make clear that federal agencies, not the state departments of environmental quality, will enforce

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the certification conditions. This rule became effective in September 2020. The new CWA Section 401 regulations have been challenged in court and Idaho Power has joined a coalition of utilities to defend the EPA’s regulation in a case being tried in the Northern District of California. If these regulations are rejected by the courts, Idaho Power would continue to operate under the current CWA Section 401 regulations as described above.

~~Clean Air Act Matters~~

~~Overview:~~ In addition to the CAA developments related to GHG emissions described in Part II, Item 7 - "MD&A - Environmental Issues" of the 2019 Annual Report, several other regulatory programs developed under the CAA apply to Idaho Power. These include the final Mercury and Air Toxics Standards (MATS), National Ambient Air Quality Standards (NAAQS), New Source Review / Prevention of Significant Deterioration Rules, and the Regional Haze Rule. Developments related to the Regional Haze Rule are discussed below.

~~Regional Haze Rules:~~ In accordance with federal regional haze rules under the CAA, coal-fired utility boilers are subject to regional haze - best available retrofit technology (RH BART) if they were built between 1962 and 1977 and affect any "Class I" (wilderness) areas. This includes all four units at the Jim Bridger and the Boardman coal-fired plants. The RH BART rules would have required installation of a suite of emissions controls at the Boardman plant; however, in December 2010, the Oregon Environmental Quality Commission approved a plan to install a less costly suite of environmental controls and cease coal-fired operations at the Boardman power plant no later than December 31, 2020. The Boardman plant ceased operations in October 2020.

As described more fully in the 2019 Annual Report in Part II, Item 7 - "Environmental Matters," in December 2009, the WDEQ issued a RH BART permit to PacifiCorp as the operator of the Jim Bridger plant. In February 2019, PacifiCorp submitted a SIP revision to the WDEQ as an alternative regional haze compliance plan for the Jim Bridger plant that includes a reduced plant-wide monthly limit on emissions for NOx ~~and SO~~2 ~~and an annual total emissions cap for NO~~x ~~and SO~~2 ~~for units 1-4. In May 2020, the WDEQ approved the alternative plan as proposed, which would eliminate the requirement to install add-on NO~~x controls at Jim Bridger units 1 and 2. The new enforceable emissions limits are scheduled to go into effect on January 1, 2022. As of the date of this report, the EPA is reviewing the plan and will provide a public comment period, but Idaho Power is uncertain when the EPA will finalize its decision on the proposed SIP revision.

OTHER MATTERS

Critical Accounting Policies and Estimates

IDACORP's and Idaho Power's discussion and analysis of their financial condition and results of operations are based upon their condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles. The preparation of these financial statements requires IDACORP and Idaho Power to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, IDACORP and Idaho Power evaluate these estimates, including those estimates related to rate regulation, retirement benefits, contingencies, asset impairment, income taxes, unbilled revenues, and bad debt. These estimates are based on historical experience and on other assumptions and factors that are believed to be reasonable under the circumstances, and are the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. IDACORP and Idaho Power, based on their ongoing reviews, make adjustments when facts and circumstances dictate.

IDACORP’s and Idaho Power’s critical accounting policies are reviewed by the audit committees of the boards of directors. These policies have not changed materially from the discussion of those policies included under "Critical Accounting Policies and Estimates" in the ~~2019~~2020 Annual Report.

Recently Issued Accounting Pronouncements

~~For~~There have been no recently issued accounting pronouncements that have had or are expected to have a ~~listing of new and recently adopted accounting standards, see Note 1 - "Summary of Significant Accounting Policies" to the notes to the condensed consolidated~~material impact on IDACORP's or Idaho Power's financial ~~statements included in this report.~~statements.

~~Table of Contents~~

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

IDACORP is exposed to market risks, including changes in interest rates, changes in commodity prices, credit risk, and equity price risk. The following discussion summarizes material changes in these risks since December 31, ~~2019,~~2020, and the financial instruments, derivative instruments, and derivative commodity instruments sensitive to changes in interest rates, commodity prices, and equity prices that were held at ~~September 30, 2020.~~March 31, 2021. IDACORP has not entered into any of these market-risk-sensitive instruments for trading purposes.

Interest Rate Risk

IDACORP manages interest expense and short- and long-term liquidity through a combination of fixed rate and variable rate debt. Generally, the amount of each type of debt is managed through market issuance, but interest rate swap and cap agreements with highly-rated financial institutions may be used to achieve the desired combination.

Variable Rate Debt: As of ~~September 30, 2020,~~March 31, 2021, IDACORP had no net ~~floating~~variable rate debt, as the carrying value of short-term investments exceeded the carrying value of outstanding ~~variable-rate~~variable rate debt.

Fixed Rate Debt: As of ~~September 30, 2020,~~March 31, 2021, IDACORP had $2.0 billion in fixed rate debt, with a fair market value of approximately ~~$2.4~~$2.2 billion. These instruments are fixed rate and, therefore, do not expose the companies to a loss in earnings due to changes in market interest rates. However, the fair value of these instruments would increase by approximately ~~$260~~$221 million if market interest rates were to decline by one percentage point from their ~~September 30, 2020,~~March 31, 2021 levels.

Commodity Price Risk

IDACORP's exposure to changes in commodity prices is related to Idaho Power's ongoing utility operations that produce electricity to meet the demand of its retail electric customers. These changes in commodity prices are mitigated in large part by Idaho Power's Idaho and Oregon power cost adjustment mechanisms. To supplement its generation resources and balance its supply of power with the demand of its retail customers, Idaho Power participates in the wholesale marketplace. IDACORP's commodity price risk as of ~~September 30, 2020,~~March 31, 2021, had not changed materially from that reported in Item 7A of IDACORP's Annual Report on Form 10-K for the year ended December 31, ~~2019 (2019~~2020 (2020 Annual Report). Information regarding Idaho Power’s use of derivative instruments to manage commodity price risk can be found in Note 1110 - "Derivative Financial Instruments" to the condensed consolidated financial statements included in this report.

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Credit Risk

IDACORP is subject to credit risk based on Idaho Power's activity with market counterparties. Idaho Power is exposed to this risk to the extent that a counterparty may fail to fulfill a contractual obligation to provide energy, purchase energy, or complete financial settlement for market activities. Idaho Power mitigates this exposure by actively establishing credit limits; measuring, monitoring, and reporting credit risk; using appropriate contractual arrangements; and transferring credit risk through the use of financial guarantees, cash, or letters of credit. Idaho Power maintains a current list of acceptable counterparties and credit limits.

The use of performance assurance collateral in the form of cash, letters of credit, or guarantees is common industry practice. Idaho Power maintains margin agreements relating to its wholesale commodity contracts that allow performance assurance collateral to be requested of and/or posted with certain counterparties. As of ~~September 30, 2020,~~March 31, 2021, Idaho Power had posted no$0.8 million performance assurance collateral related to these contracts. Should Idaho Power experience a reduction in its credit rating on Idaho Power's unsecured debt to below investment grade Idaho Power could be subject to requests by its wholesale counterparties to post additional performance assurance collateral. Counterparties to derivative instruments and other forward contracts could request immediate payment or demand immediate ongoing full daily collateralization on derivative instruments and contracts in net liability positions. Based upon Idaho Power's energy and fuel portfolio and market conditions as of ~~September 30, 2020,~~March 31, 2021, the amount of collateral that could be requested upon a downgrade to below investment grade was approximately ~~$12.9~~$8.2 million. To minimize capital requirements, Idaho Power actively monitors the portfolio exposure and the potential exposure to additional requests for performance assurance collateral calls through sensitivity analysis.

IDACORP's credit risk related to uncollectible accounts, net of amounts reserved, as of ~~September 30, 2020,~~March 31, 2021, had not changed materially from that reported in Item 7A of the ~~2019~~2020 Annual Report, except as disclosed in Note 14 - ~~"Summary of Significant Accounting Policies"~~"Revenues" to the condensed consolidated financial statements included in this report. Additional information regarding Idaho Power’s management of credit risk and credit contingent features can be found in Note 1110 - "Derivative Financial Instruments" to the condensed consolidated financial statements included in this report.

~~Table of Contents~~

Equity Price Risk

IDACORP is exposed to price fluctuations in equity markets, primarily through Idaho Power's defined benefit pension plan assets, a mine reclamation trust fund owned by an equity-method investment of Idaho Power, and other equity security investments at Idaho Power. The equity securities held by the pension plan and in such accounts are diversified to achieve broad market participation and reduce the impact of any single investment, sector, or geographic region. Idaho Power has established asset allocation targets for the pension plan holdings, which are described in Note 10 - "Benefit Plans" to the consolidated financial statements included in the ~~2019~~2020 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

IDACORP: The Chief Executive Officer and the Chief Financial Officer of IDACORP, based on their evaluation of IDACORP’s disclosure controls and procedures (pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (Exchange Act)) as of ~~September 30, 2020,~~March 31, 2021, have concluded that IDACORP’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) are effective as of that date.

Idaho Power: The Chief Executive Officer and the Chief Financial Officer of Idaho Power, based on their evaluation of Idaho Power’s disclosure controls and procedures (pursuant to Rule 13a-15(b) of the Exchange Act) as of ~~September 30, 2020,~~March 31, 2021, have concluded that Idaho Power’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) are effective as of that date.

Changes in Internal Control over Financial Reporting

There have been no changes in IDACORP's or Idaho Power's internal control over financial reporting during the quarter ended ~~September 30, 2020,~~March 31, 2021, that have materially affected, or are reasonably likely to materially affect, IDACORP's or Idaho Power's internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS

The factors discussed in Part I - Item 1A - "Risk Factors" in IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, could materially affect IDACORP’s and Idaho Power's business, financial condition, or future results. In addition to those risk factors ~~the risk factor set forth below,~~ and other risks discussed in this report, see "Cautionary Note Regarding Forward-Looking Statements" in this report for additional factors that could have a significant impact on IDACORP's or Idaho Power's operations, results of operations, or financial condition and could cause actual results to differ materially from those anticipated in forward-looking statements.

~~The COVID-19 coronavirus outbreak could adversely affect IDACORP's and Idaho Power's business functions, financial condition and results of operations.~~ The COVID-19 coronavirus outbreak has resulted in widespread impacts on the global economy and on Idaho Power's employees, customers, contractors, and suppliers, and there is considerable uncertainty regarding the duration of the COVID-19 pandemic. Authorities have implemented various measures to reduce the spread of the virus, such as travel bans and restrictions, quarantines, and other restrictive orders and mandates (including those in effect in Idaho Power's service area in the states of Idaho and Oregon), as well as business and government shutdowns. While governmental authorities have eased restrictions, it is possible that an increase in COVID-19 cases could prompt a return to tighter restrictions in some or all of the states and countries in which Idaho Power and its contractors and suppliers operate. Restrictions of this nature may cause Idaho Power or its contractors to miss milestones on construction projects and experience operational delays, delay the delivery of electrical infrastructure and other supplies that it sources from around the globe, delay the connection of electric service to new customers, prolong the time period necessary to perform maintenance of our infrastructure, and significantly reduce the use of electricity by commercial and industrial customers.

Further, while Idaho Power has modified certain business and workforce practices (including employee travel, employee work locations, and cancellation of physical participation in meetings, events, and conferences) to conform to government restrictions and best practices encouraged by government and regulatory authorities, Idaho Power has a limited number of highly skilled operators for some of its critical power plants and its grid operations centers. If a large proportion of Idaho Power's employees in those critical facilities were to contract COVID-19 at the same time, it would rely upon its business continuity plans in an effort to continue operations at those facilities, but there is no certainty that such measures will be sufficient to mitigate the adverse impact to its operations.

Additionally, the effects of COVID-19 on the U.S. capital markets may significantly impact Idaho Power. For example, the costs related to the noncontributory defined benefit pension plan we provide to Idaho Power employees, as well as a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers eligible retirees, are based in part on the value of the plans’ assets and, therefore, adverse investment performance for these assets or the failure to maintain sustained growth in pension investments over time could increase its plan costs and funding requirements related to the plans. Similarly, Idaho Power relies on access to the capital markets to fund its capital requirements. To the extent that access to the capital markets is adversely affected by COVID-19, Idaho Power may need to consider alternative sources of funding for its operations and for working capital, which may increase its cost of, as well as adversely impact its access to, capital. These uncertain economic conditions may also result in the inability of Idaho Power's customers to pay for electric service, which could affect the collectability of its revenues and adversely affect its financial results.

The degree to which COVID-19 may impact IDACORP's and Idaho Power's liquidity, financial condition and results of operations is unknown at this time and will depend on future developments, including the continuing spread of the virus, the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities, and to what extent normal economic and operating conditions can resume.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Restrictions on Dividends

See Note 65 - "Common Stock" to the condensed consolidated financial statements included in this report for a description of restrictions on IDACORP's and Idaho Power's payment of dividends.

~~Table of Contents~~

Issuer Purchases of Equity Securities

IDACORP did not repurchase any shares of its common stock during the quarter ended ~~September 30, 2020.~~March 31, 2021.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 of this report, which is incorporated herein by reference.

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

The following exhibits are filed or furnished, as applicable, with the Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2020:~~March 31, 2021:

Incorporated by Reference

Exhibit No.

Exhibit Description

Form

File No.

Exhibit No.

Date

Included Herewith

~~10.1~~ ~~(1)~~

~~IDACORP, Inc. and/or Idaho Power Company Executive Officers with Amended and Restated Change in Control Agreements chart, as of~~ ~~October~~29 ~~, 2020~~

15.1

Letter Re: Unaudited Interim Financial Information

15.2

Letter Re: Unaudited Interim Financial Information

31.1

Certification of IDACORP, Inc. Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of IDACORP, Inc. Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.3

Certification of Idaho Power Company Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.4

Certification of Idaho Power Company Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of IDACORP, Inc. Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of IDACORP, Inc. Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.3

Certification of Idaho Power Company Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.4

Certification of Idaho Power Company Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

95.1

Mine Safety Disclosures

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

104

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)

(1) Management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.


		IDACORP, INC.
		(Registrant)



Date:	~~October~~April 29, ~~2020~~2021	By:	/s/ Lisa A. Grow
			Lisa A. Grow
			President and Chief Executive Officer

Date:	~~October~~April 29, ~~2020~~2021	By:	/s/ Steven R. Keen
			Steven R. Keen
			Senior Vice President and Chief Financial Officer






		IDAHO POWER COMPANY
		(Registrant)



Date:	~~October~~April 29, ~~2020~~2021	By:	/s/ Lisa A. Grow
			Lisa A. Grow
			President and Chief Executive Officer

Date:	~~October~~April 29, ~~2020~~2021	By:	/s/ Steven R. Keen
			Steven R. Keen
			Senior Vice President and Chief Financial Officer

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	Three months ended			Nine months ended
Net income attributable to IDACORP, Inc. - September 30, 2019		$	89.9		$	185.7
Increase (decrease) in Idaho Power net income:
Customer growth, net of associated power supply costs and power cost adjustment mechanisms	3.9			10.8
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms	0.3			0.3
Idaho fixed cost adjustment (FCA) revenues	(1.6)			(0.1)
Retail revenues per megawatt-hour (MWh), net of associated power supply costs and power cost adjustment mechanisms	(0.2)			(3.2)
Transmission wheeling-related revenues	4.4			(2.0)

Other operations and maintenance (O&M) expenses	4.4			7.3

Other changes in operating revenues and expenses, net	(0.4)			(1.3)

Increase in Idaho Power operating income	10.8			11.8

Non-operating income and expenses	(0.8)			0.7

Income tax expense	2.4			2.8
Total increase in Idaho Power net income		12.4			15.3
Other IDACORP changes (net of tax)		(0.3)			(1.1)
Net income attributable to IDACORP, Inc. - September 30, 2020		$	102.0		$	199.9


	5-Year Forecasted Annual Growth Rate		20-Year Forecasted Annual Growth Rate
	Retail Sales (Billed MWh)	Annual Peak (Peak Demand)	Retail Sales (Billed MWh)	Annual Peak (Peak Demand)
2019 IRP	1.3%	1.4%	1.0%	1.2%
2017 IRP	1.1%	1.6%	0.9%	1.4%
2015 IRP	1.5%	1.8%	1.2%	1.5%


	2020	2021	2022-2024
Expected capital expenditures (excluding AFUDC)	$300-$310	$305-$315	$1,000-$1,050