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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 endedMarch 31, 2021
 OR
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 specifiedI.R.S. Employer
Commission Filein their charters, address of principalIdentification
Numberexecutive offices, zip code and telephone numberNumber
1-14465IDACORP, Inc.82-0505802
1-3198Idaho Power Company82-0130980
 1221 W. Idaho Street
Boise,Idaho83702-5627
(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 classTrading Symbol(s)Name of each exchange on which registered
Common StockIDANew 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

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. __


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 April 23, 2021:     
IDACORP, Inc.:        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
Cautionary Note Regarding Forward-Looking Statements
Part I. Financial Information 
  
 Item 1. Financial Statements (unaudited) 
  IDACORP, Inc.: 
   Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Comprehensive Income
   Condensed Consolidated Balance Sheets
   Condensed Consolidated Statements of Cash Flows
   Condensed Consolidated Statements of Equity
  Idaho Power Company: 
   Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Comprehensive Income
   Condensed Consolidated Balance Sheets
   Condensed Consolidated Statements of Cash Flows
  Notes to Condensed Consolidated Financial Statements
  Reports of Independent Registered Public Accounting Firm
 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Item 4. Controls and Procedures
     
Part II. Other Information 
   
 Item 1. Legal Proceedings
 Item 1A. Risk Factors
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
 Item 4. Mine Safety Disclosures
Item 5. Other Information
 Item 6. Exhibits
   
Signatures

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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:
2020 Annual Report-IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended
December 31, 2020
ADITC-Accumulated Deferred Investment Tax Credits
AFUDC-Allowance for Funds Used During Construction
AOCI-Accumulated Other Comprehensive Income
BCC-Bridger Coal Company, a joint venture of IERCo
BLM-U.S. Bureau of Land Management
CWA-Clean Water Act
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, 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 companies' business;
changes in residential, commercial, and industrial growth and demographic patterns within Idaho Power's service area, 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 conditions and events associated with climate 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 introduction of operational or cyber-security vulnerabilities to the power grid;
acts or threats of terrorist incidents, acts of war, social unrest, cyber-attacks, the companies' failure to secure data or to comply with privacy laws or regulations, physical security breaches, or the disruption or damage to the companies' business, operations, or reputation resulting from such events;
the expense and risks associated with capital expenditures for, and the permitting and construction of, utility infrastructure that Idaho Power may be unable 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 on reasonable terms, particularly in the event of unanticipated power demands, price volatility, lack of physical availability, transportation constraints, 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, which can result in liability for Idaho Power, increase power costs, and reduce revenues;
accidents, terrorist acts, fires (either affecting or caused by Idaho Power facilities or infrastructure), explosions, mechanical breakdowns, and other unplanned events that may occur while operating and maintaining assets, which can cause unplanned 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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Table of Contents                             
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

IDACORP, Inc.
Condensed Consolidated Statements of Income
(unaudited)
Three months ended
March 31,
20212020
(in thousands, except per share amounts)
Operating Revenues:
Electric utility revenues$315,568 $290,488 
Other486 520 
Total operating revenues316,054 291,008 
Operating Expenses:
Electric utility:
Purchased power67,988 61,201 
Fuel expense33,306 30,015 
Power cost adjustment5,671 (3,391)
Other operations and maintenance85,657 89,808 
Energy efficiency programs9,027 9,475 
Depreciation43,315 42,526 
Other electric utility operating expenses9,327 9,141 
Total electric utility operating expenses254,291 238,775 
Other654 663 
Total operating expenses254,945 239,438 
Operating Income61,109 51,570 
Nonoperating (Income) Expense:
Allowance for equity funds used during construction(7,769)(7,272)
Earnings of unconsolidated equity-method investments(2,317)(2,316)
Interest on long-term debt21,036 19,662 
Other interest3,519 3,812 
Allowance for borrowed funds used during construction(3,005)(2,730)
Other income, net(241)(932)
Total nonoperating expense, net11,223 10,224 
Income Before Income Taxes49,886 41,346 
Income Tax Expense5,086 3,888 
Net Income44,800 37,458 
Loss attributable to noncontrolling interests31 32 
Net Income Attributable to IDACORP, Inc.$44,831 $37,490 
Weighted Average Common Shares Outstanding - Basic50,567 50,517 
Weighted Average Common Shares Outstanding - Diluted50,580 50,527 
Earnings Per Share of Common Stock:
Earnings Attributable to IDACORP, Inc. - Basic$0.89 $0.74 
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
March 31,
 20212020
(in thousands)
Net Income$44,800 $37,458 
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax of $289 and $259, respectively836 747 
Total Comprehensive Income45,636 38,205 
Loss attributable to noncontrolling interests31 32 
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)
 
March 31,
2021
December 31,
2020
(in thousands)
Assets
Current Assets:
Cash and cash equivalents$240,007 $275,116 
Short-term investments25,000 25,000 
Receivables:
Customer (net of allowance of $5,088 and $4,766, respectively)73,360 72,826 
Other (net of allowance of $561 and $497, respectively)20,708 12,661 
Income taxes receivable 2,164 
Accrued unbilled revenues54,895 72,461 
Materials and supplies (at average cost)68,294 64,941 
Fuel stock (at average cost)29,261 31,646 
Prepayments16,580 20,184 
Current regulatory assets63,027 63,407 
Other2,760 1,995 
Total current assets593,892 642,401 
Investments122,862 126,948 
Property, Plant and Equipment:
Utility plant in service6,321,220 6,283,790 
Accumulated provision for depreciation(2,224,063)(2,193,831)
Utility plant in service - net4,097,157 4,089,959 
Construction work in progress617,265 597,152 
Utility plant held for future use4,109 4,109 
Other property, net of accumulated depreciation16,688 18,290 
Property, plant and equipment - net4,735,219 4,709,510 
Other Assets:
Company-owned life insurance63,507 62,382 
Regulatory assets1,503,256 1,495,488 
Other59,565 58,515 
Total other assets1,626,328 1,616,385 
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)
 
March 31,
2021
December 31,
2020
(in thousands)
Liabilities and Equity
Current Liabilities:
Accounts payable$81,602 $120,576 
Taxes accrued34,501 19,508 
Interest accrued19,459 24,030 
Accrued compensation36,972 52,245 
Current regulatory liabilities27,697 11,104 
Advances from customers34,604 29,341 
Other27,037 30,767 
Total current liabilities261,872 287,571 
Other Liabilities:
Deferred income taxes794,525 800,251 
Regulatory liabilities755,542 757,730 
Pension and other postretirement benefits641,113 634,070 
Other48,917 48,752 
Total other liabilities2,240,097 2,240,803 
Long-Term Debt2,000,471 2,000,414 
Commitments and Contingencies
Equity:
IDACORP, Inc. shareholders’ equity:
Common stock, no par value (120,000 shares authorized; 50,515 and 50,462 shares issued, respectively)868,944 869,235 
Retained earnings1,742,994 1,734,103 
Accumulated other comprehensive loss(42,522)(43,358)
Total IDACORP, Inc. shareholders’ equity2,569,416 2,559,980 
Noncontrolling interests6,445 6,476 
Total equity2,575,861 2,566,456 
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 Statements of Cash Flows
(unaudited)
Three months ended
March 31,
 20212020
(in thousands)
Operating Activities:
Net income$44,800 $37,458 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization44,286 43,666 
Deferred income taxes and investment tax credits(3,390)(1,379)
Changes in regulatory assets and liabilities2,833 (9,672)
Pension and postretirement benefit plan expense7,367 7,260 
Contributions to pension and postretirement benefit plans(918)(12,270)
Earnings of equity-method investments(2,317)(2,316)
Distributions from equity-method investments2,550 2,000 
Allowance for equity funds used during construction(7,769)(7,272)
Other non-cash adjustments to net income, net3,238 3,490 
Change in:  
Receivables(3,451)5,102 
Accounts payable and other accrued liabilities(42,219)(49,389)
Taxes accrued/receivable17,156 12,932 
Other current assets19,403 1,268 
Other current liabilities2,425 5,122 
Other assets(2,234)(1,925)
Other liabilities1,902 (279)
Net cash provided by operating activities83,662 33,796 
Investing Activities:  
Additions to property, plant and equipment(77,293)(73,566)
Payments received from transmission project joint funding partners1,096 393 
Investments in affordable housing(5,335)(1,936)
Purchases of equity securities(171)(3,230)
Purchases of short-term investments(25,000) 
Maturities of short-term investments25,000  
Proceeds from the sale of equity securities1,557 839 
Other797 3,826 
Net cash used in investing activities(79,349)(73,674)
Financing Activities:  
Dividends on common stock(36,379)(34,312)
Tax withholdings on net settlements of share-based awards(3,026)(4,183)
Debt issuance costs and other(17)(10)
Net cash used in financing activities(39,422)(38,505)
Net decrease in cash and cash equivalents(35,109)(78,383)
Cash and cash equivalents at beginning of the period275,116 217,254 
Cash and cash equivalents at end of the period$240,007 $138,871 
Supplemental Disclosure of Cash Flow Information:  
Cash paid during the period for:  
Interest (net of amount capitalized)$25,306 $19,887 
Non-cash investing activities:
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.
Condensed Consolidated Statements of Equity
(unaudited)
 
Three months ended
March 31,
20212020
(in thousands)
Common Stock
Balance at beginning of period$869,235 $868,307 
Share-based compensation expense2,710 2,624 
Tax withholdings on net settlements of share-based awards(3,026)(4,183)
Treasury shares issued (1,920)
Other25 22 
Balance at end of period868,944 864,850 
Retained Earnings
Balance at beginning of period1,734,103 1,634,525 
Net income attributable to IDACORP, Inc.44,831 37,490 
Common stock dividends ($0.71 and $0.67 per share, respectively)(35,940)(33,950)
Balance at end of period1,742,994 1,638,065 
Accumulated Other Comprehensive (Loss) Income
Balance at beginning of period(43,358)(36,284)
Unfunded pension liability adjustment (net of tax)836 747 
Balance at end of period(42,522)(35,537)
Treasury Stock
Balance at beginning of period (1,920)
Issued 1,920 
Balance at end of period  
Total IDACORP, Inc. shareholders’ equity at end of period2,569,416 2,467,378 
Noncontrolling Interests
Balance at beginning of period6,476 5,925 
Net loss attributable to noncontrolling interests(31)(32)
Balance at end of period6,445 5,893 
Total equity at end of period$2,575,861 $2,473,271 

The accompanying notes are an integral part of these statements.
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Idaho Power Company
Condensed Consolidated Statements of Income
(unaudited)
 
Three months ended
March 31,
 20212020
(in thousands)
Operating Revenues$315,568 $290,488 
Operating Expenses:
Operation:
Purchased power67,988 61,201 
Fuel expense33,306 30,015 
Power cost adjustment5,671 (3,391)
Other operations and maintenance85,657 89,808 
Energy efficiency programs9,027 9,475 
Depreciation43,315 42,526 
Other operating expenses9,327 9,141 
Total operating expenses254,291 238,775 
Operating Income61,277 51,713 
Nonoperating (Income) Expense:
Allowance for equity funds used during construction(7,769)(7,272)
Earnings of unconsolidated equity-method investments(2,550)(2,453)
Interest on long-term debt21,036 19,662 
Other interest3,514 3,813 
Allowance for borrowed funds used during construction(3,005)(2,730)
Other income, net(191)(469)
Total nonoperating expense, net11,035 10,551 
Income Before Income Taxes50,242 41,162 
Income Tax Expense5,873 4,386 
Net Income$44,369 $36,776 

The accompanying notes are an integral part of these statements.
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Idaho Power Company
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
 
Three months ended
March 31,
 20212020
(in thousands)
Net Income$44,369 $36,776 
Other Comprehensive Income:
Unfunded pension liability adjustment, net of tax of $289 and $259, respectively836 747 
Total Comprehensive Income$45,205 $37,523 

The accompanying notes are an integral part of these statements.
 
 

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Idaho Power Company
Condensed Consolidated Balance Sheets
(unaudited)
 
March 31,
2021
December 31,
2020
(in thousands)
Assets
Current Assets:
Cash and cash equivalents$134,536 $165,604 
Receivables:
Customer (net of allowance of $5,088 and $4,766, respectively)73,360 72,826 
Other (net of allowance of $561 and $497, respectively)21,051 12,457 
Income taxes receivable 4,667 
Accrued unbilled revenues54,895 72,461 
Materials and supplies (at average cost)68,294 64,941 
Fuel stock (at average cost)29,261 31,646 
Prepayments16,441 20,057 
Current regulatory assets63,027 63,407 
Other2,760 1,995 
Total current assets463,625 510,061 
Investments85,442 87,848 
Property, Plant and Equipment:
Plant in service6,321,220 6,283,790 
Accumulated provision for depreciation(2,224,063)(2,193,831)
Plant in service - net4,097,157 4,089,959 
Construction work in progress617,265 597,152 
Plant held for future use4,109 4,109 
Other property3,640 5,123 
Property, plant and equipment, net4,722,171 4,696,343 
Other Assets:
Company-owned life insurance63,507 62,382 
Regulatory assets1,503,256 1,495,488 
Other55,075 53,988 
Total other assets1,621,838 1,611,858 
Total$6,893,076 $6,906,110 


The accompanying notes are an integral part of these statements.
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Idaho Power Company
Condensed Consolidated Balance Sheets
(unaudited)
 
March 31,
2021
December 31,
2020
(in thousands)
Liabilities and Equity
Current Liabilities:
Accounts payable$81,529 $120,476 
Accounts payable to affiliates118 1,720 
Taxes accrued32,369 19,554 
Interest accrued19,415 24,030 
Accrued compensation36,834 52,036 
Current regulatory liabilities27,697 11,104 
Advances from customers34,604 29,341 
Other16,907 16,717 
Total current liabilities249,473 274,978 
Other Liabilities:
Deferred income taxes825,179 829,146 
Regulatory liabilities755,542 757,730 
Pension and other postretirement benefits641,113 634,070 
Other48,199 45,937 
Total other liabilities2,270,033 2,266,883 
Long-Term Debt2,000,471 2,000,414 
Commitments and Contingencies
Equity:
Common stock, $2.50 par value (50,000 shares authorized; 39,151 shares outstanding)97,877 97,877 
Premium on capital stock712,258 712,258 
Capital stock expense(2,097)(2,097)
Retained earnings1,607,583 1,599,155 
Accumulated other comprehensive loss(42,522)(43,358)
Total equity2,373,099 2,363,835 
Total$6,893,076 $6,906,110 
The accompanying notes are an integral part of these statements.

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Idaho Power Company
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three months ended
March 31,
 20212020
 (in thousands)
Operating Activities:  
Net income$44,369 $36,776 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization44,138 43,505 
Deferred income taxes and investment tax credits(2,958)(1,207)
Changes in regulatory assets and liabilities2,833 (9,672)
Pension and postretirement benefit plan expense7,367 7,260 
Contributions to pension and postretirement benefit plans(918)(12,270)
Earnings of equity-method investments(2,550)(2,453)
Distributions from equity-method investments2,550 2,000 
Allowance for equity funds used during construction(7,769)(7,272)
Other non-cash adjustments to net income, net528 867 
Change in:  
Receivables(5,600)4,161 
Accounts payable(42,193)(49,344)
Taxes accrued/receivable17,482 22,446 
Other current assets19,414 1,297 
Other current liabilities2,451 5,207 
Other assets(2,245)(1,935)
Other liabilities2,003 (180)
Net cash provided by operating activities78,902 39,186 
Investing Activities:  
Additions to utility plant(77,293)(73,566)
Payments received from transmission project joint funding partners1,096 393 
Purchases of equity securities(171)(3,230)
Proceeds from the sale of equity securities1,557 839 
Other797 3,796 
Net cash used in investing activities(74,014)(71,768)
Financing Activities:  
Dividends on common stock(35,941)(33,952)
Other(15)4 
Net cash used in financing activities(35,956)(33,948)
Net decrease in cash and cash equivalents(31,068)(66,530)
Cash and cash equivalents at beginning of the period165,604 98,950 
Cash and cash equivalents at end of the period$134,536 $32,420 
Supplemental Disclosure of Cash Flow Information:  
Cash received from IDACORP related to income taxes$ $(9,189)
Cash paid for interest (net of amount capitalized)25,346 19,888 
Non-cash investing activities:
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 March 31, 2021, consolidated results of operations for the three months ended March 31, 2021 and 2020, and consolidated cash flows for the three months ended March 31, 2021 and 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, 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 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

There have been no recently issued accounting pronouncements that have had or are expected to have a material impact on IDACORP's or Idaho Power'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 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 three months ended March 31, 2021 and 2020 (in thousands): 
 IDACORPIdaho Power
 2021202020212020
Income tax at statutory rates (federal and state)$12,849 $10,651 $12,932 $10,595 
Excess deferred income tax reversal(1,606)(1,481)(1,606)(1,481)
Other(1)
(6,157)(5,282)(5,453)(4,728)
Income tax expense$5,086 $3,888 $5,873 $4,386 
Effective tax rate10.2 %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 increase in income tax expense for the three months ended March 31, 2021, compared with the same period in 2020, was primarily due to higher pre-tax earnings. On a net basis, Idaho Power’s estimate of its annual 2021 regulatory flow-through tax adjustments is comparable to 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 2020 Annual Report.

Idaho Settlement Stipulations

A May 2018 Idaho settlement stipulation related to tax reform (May 2018 Idaho Tax Reform Settlement Stipulation) is described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2020 Annual Report and includes provisions for the accelerated amortization of accumulated deferred investment tax credits (ADITC) to help achieve a minimum 9.4 percent 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 stipulation also 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 2021 Idaho ROE, in the first quarter of 2021, Idaho Power recorded no additional ADITC amortization or provision against current revenues for sharing of earnings with customers for 2021 under the May 2018 Idaho Tax Reform Settlement Stipulation. Accordingly, at March 31, 2021, the full $45 million of additional ADITC remains available for future use. Idaho Power recorded no additional ADITC amortization or provision against revenues for sharing of earnings with customers during the first quarter of 2020, based on its then-current estimate of full-year 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.

On April 15, 2021, Idaho Power filed an application with the IPUC requesting a $39.1 million net increase in Idaho-jurisdiction power cost adjustment (PCA) revenues, effective for the 2021-2022 PCA collection period from June 1, 2021 to May 31, 2022. The net increase in PCA revenues reflects a forecasted reduction in low-cost hydroelectric generation as well as higher costs associated with higher forecasted PURPA power purchases. The net increase in PCA revenues also reflects a smaller credit to customers through the true-up component. As of the date of this report, the IPUC has not yet issued an order on the 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 March 2021, Idaho Power filed its annual FCA update with the IPUC requesting an increase of $2.8 million in recovery from the FCA from $35.5 million to $38.3 million, with new rates effective for the period from June 1, 2021, to May 31, 2022.

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4. REVENUES
 
The following table provides a summary of electric utility operating revenues for IDACORP and Idaho Power for the three months ended March 31, 2021 and 2020 (in thousands):
Three months ended
March 31,
 20212020
Electric utility operating revenues:
Revenue from contracts with customers$291,327 $270,184 
Alternative revenue programs and other revenues24,241 20,304 
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 months ended March 31, 2021 and 2020 (in thousands):
Three months ended
March 31,
 20212020
Revenues from contracts with customers:
Retail revenues:
 Residential (includes $15,822 and $15,710, respectively, related to the FCA)(1)
$154,785 $144,887 
 Commercial (includes $482 and $484, respectively, related to the FCA)(1)
72,269 69,513 
Industrial45,430 42,760 
Irrigation1,086 1,375 
Deferred revenue related to HCC relicensing AFUDC(2)
(2,119)(2,119)
Total retail revenues271,451 256,416 
Less: FCA mechanism revenues(1)
(16,304)(16,194)
Wholesale energy sales6,259 3,908 
Transmission wheeling-related revenues14,467 10,363 
Energy efficiency program revenues9,027 9,475 
Other revenues from contracts with customers6,427 6,216 
Total revenues from contracts with customers$