A regulated electric utility that powers hundreds of thousands of homes and businesses across southern Idaho and eastern Oregon, drawing about half its electricity from hydropower on the Snake River alongside natural gas, solar, wind, and battery storage. The company took shape in 1915–1916 when five struggling regional power firms merged, and in the 1920s it famously sold electric waffle irons, stoves, and washing machines straight to customers to build demand for its growing capacity.
Idaho Power's new base rates lifted Q2 net income 7% to $95.8M, but the loss of a one-time tax credit masked the underlying earnings gain.
Idaho Power's January 2026 rate increase reshaped the quarter's earnings. rose 7% to $95.8 million on of $450.9 million, as $27.5 million in new base rate revenue and customer growth overcame a $17.2 million drop in non-cash tax credits that had inflated the prior-year result. The core utility business is earning more, but remains deeply negative at -$156.4 million as stays elevated.
Key takeaways
A January 1, 2026 Idaho base rate increase from the 2025 Settlement Stipulation was the primary earnings driver, lifting retail revenues per MWh by $27.5 million in the quarter.
Customer growth of 2.3% over the prior twelve months added $4.5 million to , consistent with the growth rate reported in recent quarters.
Other operations and maintenance expenses rose $11.7 million, driven by of previously deferred Jim Bridger coal-to-gas conversion costs and higher wildfire mitigation program spending, both of which are recovered in rates.
Section summaries
Management's Discussion and Analysis
IDACORP Q2 2026 net income rose to $102.6M, driven by Idaho base rate increases and customer growth, partially offset by higher O&M and lower ADITC amortization.
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Idaho Power's retail revenues per MWh, excluding large contract customers, increased by $27.5M in Q2 2026 due to a base rate increase effective January 1, 2026, from the 2025 Settlement Stipulation.
Idaho Power recorded no additional in the quarter, compared to $17.2 million in Q2 2025, causing a higher effective income tax rate that reduced growth relative to growth.
fell by $122 million for the first half of 2026, largely due to changes in regulatory assets and liabilities related to power cost adjustment and fixed cost adjustment mechanisms.
was -$156.4 million for the quarter, as continued to outpace operating cash generation under the company's growing infrastructure plan.
What changed
The $199.1 million general rate case filed in May 2025 was resolved with a $110 million annual retail increase effective January 2026 and a 9.6% authorized on a $4.9 billion , settling the largest outstanding regulatory question.
The Oregon electric distribution business sale to OTEC for a base price of $154 million, flagged in the FY 2025 annual report, was signed in February 2026 and is pending closing.
The 2.3% customer growth rate held steady, confirming the stabilization from the 2.5-2.6% range seen in earlier quarters, as noted in the Q3 FY2025 watch items.
Wildfire mitigation and insurance costs continued to rise, consistent with the trajectory flagged in every prior filing, and are now being recovered in rates alongside Jim Bridger coal-to-gas conversion costs.
The loss of the ADITC benefit, which had boosted in prior quarters, was a new development this quarter that muted reported earnings growth despite a 30% increase in .
What to watch
Whether the $110 million rate increase and 9.6% authorized are sufficient to offset rising O&M and costs as the grows under the $6.3-$7.2 billion capital plan.
The closing of the Oregon electric distribution business sale to OTEC for $154 million, and whether proceeds are used to reduce debt or fund .
generation in the seasonally stronger Q3, and whether it reduces reliance on debt issuance after rose to $3.45 billion.
Whether the below-normal hydropower generation forecast of 5.5-6.5 million MWh for 2026, down from 7.0 million MWh in 2025, pressures power supply costs or is mitigated by the .
Customer growth of 2.3% (approximately 15,000 customers) over the twelve months ended June 30, 2026, increased by $4.5M in Q2 2026.
Other expenses rose $11.7M in Q2 2026, primarily from amortizing previously deferred costs for the Jim Bridger plant coal-to-gas conversion and wildfire mitigation programs, which are recovered in rates.
Idaho Power recorded no additional in Q2 2026, compared to $17.2M in Q2 2025, contributing to a higher effective income tax expense.
Operating cash flows decreased by $122M for IDACORP in the first half of 2026, largely due to changes in regulatory assets and liabilities related to PCA and FCA mechanisms.
Idaho Power expects 2026 hydropower generation of 5.5–6.5 million MWh, below the 7.0 million MWh generated in 2025, and forecasts significant of $1.3–$1.5 billion for the full year.
Quantitative and Qualitative Disclosures About Market Risk
IDACORP reports no variable-rate debt, $3.8B in fixed-rate debt, and manageable commodity and credit risks mitigated by regulatory mechanisms and collateral practices.
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As of June 30, 2026, IDACORP had no variable-rate debt, eliminating direct earnings exposure to interest rate changes.
The of $3.8 billion in fixed-rate debt would increase by approximately $404 million if market interest rates declined by one percentage point.
Commodity price risk from Idaho Power's operations is largely mitigated by power cost adjustment mechanisms in Idaho and Oregon.
A credit rating downgrade to below could trigger requests for approximately $44 million in additional .
Idaho Power had posted $53 million in cash related to wholesale commodity contracts as of June 30, 2026.
Equity price risk arises primarily from pension plan assets and a mine reclamation trust fund, mitigated through diversification and asset allocation targets.
Refer to Note 9 – “Contingencies” to the condensed consolidated financial statements included in this report. SEC regulations require IDACORP and Idaho Power to disclose certain information about proceedings arising under federal, state or local environmental provisions if the c…
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Refer to Note 9 – “Contingencies” to the condensed consolidated financial statements included in this report. SEC regulations require IDACORP and Idaho Power to disclose certain information about proceedings arising under federal, state or local environmental provisions if the companies reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, the companies use a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required.
The factors discussed in Part I - Item 1A - "Risk Factors" in the 2025 Annual Report, could materially affect IDACORP’s and Idaho Power's business, financial condition, or future results. In addition to those risk factors and other risks discussed in this report, see "Cautionary…
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The factors discussed in Part I - Item 1A - "Risk Factors" in the 2025 Annual Report, could materially affect IDACORP’s and Idaho Power's business, financial condition, or future results. In addition to those risk factors 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.