IDACORP (IDA) gains IPUC nod on $110M Idaho Power rate settlement

Rhea-AI Filing Summary

IDACORP and Idaho Power report that the Idaho Public Utilities Commission has approved a settlement in Idaho Power’s 2025 general rate case. The order allows revised electric rates designed to raise Idaho-jurisdictional retail revenue by about $110 million annually, a 7.48% increase effective January 1, 2026, inclusive of a $13.1 million power cost adjustment (PCA) rate increase.

The settlement reflects a 9.6% allowed return on equity and a 7.410% authorized overall return applied to an Idaho rate base of about $4.9 billion. It also sets a new base net power supply expense of roughly $468.8 million, updates fixed cost adjustment rates, continues deferral of certain wildfire-mitigation costs through the earlier of the next rate case or 2027, modifies how investment tax credits and revenue sharing are handled, and confirms recovery of Idaho Power’s share of capital spending at jointly owned coal plants through year-end 2024.

Insights

Regulated utilities and rate case analyst

IPUC approval secures higher Idaho revenues and clarifies returns.

The order gives Idaho Power clearer earnings visibility in its core Idaho jurisdiction. Approved tariffs are designed to increase annual Idaho retail revenue by about $110.0 million, or 7.48%, effective January 1, 2026, including a $13.1 million PCA rate increase. For a regulated utility, this is a meaningful uplift relative to existing Idaho revenues.

The settlement locks in a 9.6% allowed return on equity and a 7.410% authorized rate of return on an Idaho rate base of about $4.9 billion, based on 2025 plant balances. It also reduces the base net power supply expense to roughly $468.8 million, updates fixed cost adjustment rates, and continues deferrals for wildfire mitigation costs through the earlier of the next rate case or 2027, which may smooth earnings variability from these items.

Changes to accumulated deferred investment tax credits and revenue sharing—such as the $55 million annual cap on accelerated amortization starting in 2026 and reaffirmed Idaho ROE thresholds of 9.12% and 9.6%—clarify how excess earnings are shared with customers. The company also secures recovery of its share of capital expenditures at jointly owned coal plants through year-end 2024. Future Idaho earnings will still depend on load, costs, and the timing and terms of the next rate case, which the company remains free to file.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 8-K

_______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  December 30, 2025

_______________________

Exact name of registrants as specified in

Commission

their charters, address of principal executive

IRS Employer

File Number

offices and registrants’ telephone number

Identification 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 or Other Jurisdiction of Incorporation:

Idaho

Former name or former address, if changed since last report:

None

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.

□

Item 8.01 Other Events.

As previously reported, on May 30, 2025, Idaho Power Company (“Idaho Power”) filed a general rate case with the Idaho Public Utilities Commission (“IPUC”), Case No. IPC-E-25-16. Also as previously reported, on October 24, 2025, Idaho Power filed a motion with the IPUC for approval of a settlement stipulation (the “Settlement Stipulation”) related to the Idaho general rate case filing. The Settlement Stipulation was entered into by Idaho Power, the Staff of the IPUC, and several of the intervening parties and was subject to the approval of the IPUC. On December 30, 2025, the IPUC issued an order (the “Order”) approving the Settlement Stipulation. A copy of the Order is available on the IPUC’s website at puc.idaho.gov.

As approved by the Order, the Settlement Stipulation contains the following significant terms, among other items:

•Idaho Power will implement revised tariff schedules designed to increase annual Idaho-jurisdictional retail revenue by approximately $110.0 million, or 7.48 percent, effective January 1, 2026. The approximate $110 million of additional annual revenue is inclusive of a PCA rate increase of $13.1 million;

•a 9.6 percent return on equity and a 7.410 percent authorized rate of return based on the filed cost of debt and capital structure, applied to an Idaho-jurisdictional rate base of approximately $4.9 billion (which is based on the average of monthly average plant balances for January through December 2025);

•a base level net power supply expense (“NPSE”) of approximately $468.8 million, a decrease of $16.1 million from the currently approved base level NPSE;

•updates to the fixed cost adjustment mechanism rates to reflect approved fixed costs and Idaho Power’s proposed rate designs;

•continued deferral of certain wildfire mitigation related costs, including incremental vegetation management and insurance costs, as measured from 2024 actual costs, through the earlier of Idaho Power's next general rate case or 2027;

•modifications to Idaho Power’s accumulated deferred investment tax credits (“ADITC”) and revenue sharing mechanism to (1) include an additional amount of investment tax credits equal to the total of existing ADITCs not currently eligible for accelerated amortization under the mechanism and all investment tax credits generated through the end of calendar-year 2028; (2) establish an annual cap of $55 million on the amount of accelerated amortization of ADITCs for calendar year 2026 and thereafter; (3) re-affirm the existing minimum specified Idaho-jurisdiction return on year-end equity (“Idaho ROE”) of 9.12 percent for additional amortization of ADITCs; (4) re-affirm the existing 9.6 percent Idaho ROE as the threshold for revenue sharing of Idaho-jurisdiction earnings between Idaho Power and Idaho customers; and (5) continue to implement all revenue sharing through the power cost adjustment mechanism; and

•agreement that Idaho Power’s share of capital expenditures at jointly-owned coal-fired plants through year-end 2024 are included for recovery in the stipulated revenue requirement.

At the time of the Settlement Stipulation, Staff of the IPUC had completed its prudence review of capital projects included in the test year rate base through July 2025. The IPUC Staff will address the prudence of investments placed in service after July 2025 in Idaho Power’s next Idaho general rate case. The Settlement Stipulation does not include a tracking mechanism for incremental depreciation and interest expense that Idaho Power requested as part of the initial rate case filing.

Neither the Order nor the Settlement Stipulation precludes Idaho Power from filing another general rate case in Idaho at any time in the future.

 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 hereunto duly authorized.

Dated:  December 31, 2025

IDACORP, INC.

By:   /s/ Lisa A. Grow

Lisa A. Grow

President and Chief Executive Officer

IDAHO POWER COMPANY

By:   /s/ Lisa A. Grow

Lisa A. Grow

President and Chief Executive Officer

FAQ

What did IDACORP (IDA) announce regarding Idaho Power’s general rate case?

Idaho Power received approval from the Idaho Public Utilities Commission for a settlement in its 2025 Idaho general rate case. The order authorizes revised tariffs designed to increase annual Idaho-jurisdictional retail revenue by about $110 million, or 7.48%, effective January 1, 2026, and confirms other key regulatory terms.

How much additional annual revenue will Idaho Power receive under the approved Idaho rates?

The approved settlement allows Idaho Power to implement revised tariff schedules designed to raise approximately $110.0 million in additional annual Idaho-jurisdictional retail revenue, a 7.48% increase. This amount includes a $13.1 million increase in rates under the power cost adjustment mechanism.

What return on equity and authorized rate of return did the IPUC approve for Idaho Power?

The settlement provides for a 9.6% return on equity and a 7.410% authorized overall rate of return. These returns are applied to an Idaho-jurisdictional rate base of about $4.9 billion, based on the average of monthly average plant balances for January through December 2025.

How does the settlement affect Idaho Power’s base net power supply expense (NPSE)?

The settlement sets a base level net power supply expense of approximately $468.8 million, which is a $16.1 million decrease from the currently approved base NPSE. This new NPSE level will be used in Idaho Power’s rates going forward.

What wildfire mitigation and investment tax credit provisions are included for Idaho Power?

The settlement continues deferral of certain wildfire mitigation costs, including incremental vegetation management and insurance, measured from 2024 actual costs through the earlier of the next Idaho general rate case or 2027. It also modifies the accumulated deferred investment tax credits and revenue sharing mechanism, adding more investment tax credits into the mechanism, setting a $55 million annual cap on accelerated amortization from 2026 onward, and reaffirming Idaho ROE thresholds of 9.12% and 9.6% for ADITC amortization and revenue sharing.

Does this settlement limit Idaho Power’s ability to file future rate cases in Idaho?

No. The order and settlement expressly state that they do not preclude Idaho Power from filing another Idaho general rate case at any time in the future. The prudence of investments placed in service after July 2025 will be addressed in the company’s next Idaho rate case.