On August 1, 2024, Idacorp Inc (IDA, Financial) released its 8-K filing announcing its second quarter 2024 results. The company reported net income attributable to Idacorp of $89.5 million, or $1.71 per diluted share, surpassing the $68.6 million, or $1.35 per diluted share, reported in the second quarter of 2023.
Company Overview
Idacorp Inc is a holding company that, through its subsidiaries, acts as an electric utility engaged in the generation, transmission, distribution, sale, and purchase of electric energy and capacity. The company owns and operates a portfolio of hydroelectric, coal-fired, gas-fired, and diesel-fired power plants located across the Northwestern United States. The majority of its revenue is generated from the sale of electricity to retail and wholesale customers, with residential consumers being the primary customer base.
Performance and Challenges
Idacorp's performance in the second quarter was bolstered by higher-than-expected customer usage, continued customer growth, and rate changes implemented earlier in the year. However, the company faced challenges such as increased depreciation from ongoing system investments and higher operations and maintenance (O&M) expenses, particularly related to pension and wildfire mitigation programs.
Financial Achievements
Idacorp's financial achievements in Q2 2024 are noteworthy, especially in the regulated utilities sector. The company increased its lower-end full-year 2024 earnings guidance to a range of $5.30 to $5.45 per diluted share. This adjustment reflects the company's expectation to utilize between $35 and $50 million of additional tax credits available under the Idaho earnings support regulatory mechanism.
Income Statement Highlights
| Period | Net Income (in millions) | Earnings per Diluted Share |
|---|---|---|
| Q2 2024 | $89.5 | $1.71 |
| Q2 2023 | $68.6 | $1.35 |
| H1 2024 | $137.7 | $2.67 |
| H1 2023 | $124.7 | $2.46 |
Key Metrics and Analysis
Idacorp's net income for the second quarter of 2024 increased by $20.9 million compared to the same period in 2023. This growth was primarily driven by higher retail revenues per megawatt-hour (MWh), customer growth, and increased usage per retail customer. However, these gains were partially offset by higher O&M expenses and depreciation costs.
Customer growth contributed an additional $5.1 million to operating income, with the number of Idaho Power customers increasing by approximately 16,200, or 2.6%, over the past year. Usage per retail customer also saw a significant increase, particularly among irrigation customers, who experienced a 17% rise in usage due to higher temperatures.
Despite these positive trends, Idacorp faced a $2.5 million decrease in transmission wheeling-related revenues due to changes in the financial settlement of transmission line losses. Additionally, O&M expenses rose by $13.8 million, driven by increased pension-related expenses and wildfire mitigation program costs.
Commentary
"Higher than expected customer usage in the second quarter, continued customer growth, and rate changes earlier this year contributed to strong results in the second quarter," said Idacorp President and Chief Executive Officer Lisa Grow. "As expected, higher depreciation from our ongoing system investments to meet customer and load growth partially offset those factors."
Conclusion
Idacorp Inc (IDA, Financial) has demonstrated robust financial performance in the second quarter of 2024, driven by strategic rate changes and customer growth. While the company faces challenges such as increased O&M expenses and depreciation costs, its ability to adjust earnings guidance upwards reflects a positive outlook. Investors and stakeholders will find detailed financial and operational information in Idacorp’s Quarterly Report on Form 10-Q, available on the company's website.
Explore the complete 8-K earnings release (here) from Idacorp Inc for further details.
