IDACORP, Inc.

Welcome to IDA Corp's fourth quarter and year-end 2025 earnings call. Today's call is being recorded and our website is live. A replay will be available later today and for the next 12 months on the IDA Corp website. If you need assistance at any time during the presentation, please press star zero on your telephone. I'll now turn the call over to Amy Shaw, Vice President of Finance and Compliance and Risk.

Thank you. Good afternoon, everyone. We appreciate you joining our call. The slides we'll reference during today's call are available on IDACOR's website. As noted on slide two, our discussion today includes forward-looking statements, including earnings guidance, spending forecasts, financing plans, regulatory plans and actions, and estimates and assumptions that reflect our current views on what the future holds, all of which are subject to risks and uncertainties. These risks and uncertainties may cause actual results to differ materially from statements made today, and we caution against placing undue reliance on any forward-looking statements. We've included our cautionary note on forward-looking statements and various risk factors in more detail for your review in our filings with the Securities and Exchange Commission. As shown on slide three, also presenting today, we have Lisa Groh, President and CEO, Brian Buckham, EDP CFO and Treasurer, and John Wunderlich, Investor Relations Manager. Slide four shows a summary of our full-year financial results. IDA Corp's diluted earnings per share were 590 compared to 550 last year. This made 2025 our 18th consecutive year of EPS growth as noted on slide five. We ended up 15 cents per share above the midpoint of our original EPS guidance for 2025. These results include additional tax credit amortization of about 40 million for 2025 compared to almost 30 million of additional tax credit amortization in 2024. Today we initiated our full year 2026 IDA Corp earnings guidance estimate in the range of 625 to 645 diluted earnings per share. which includes our expectation that Idaho Power will use less than $30 million of additional tax credit amortization to support earnings. These estimates assume historically normal weather conditions throughout the year and normal power supply expenses. Now I'll turn the call over to Lisa.

Thank you, Amy. And thanks to everyone for joining us today. As we look back on 2025, it was a particularly busy and exciting year for IdaCorp. Our employees continued to shine, achieving strong results for our customers and owners. Our company produced its 18th year of consecutive earnings per share growth, as Amy mentioned. We sold a record amount of energy to our retail customers, broke ground on the B2H transmission project, and recorded among the best reliability scores in company history. And we did it all while staying true to our core values of safety first, integrity always, and respect for all. We also settled our general rate case proceeding in Idaho with a constructive outcome for our company and our customers. I want to again extend my thanks to our outstanding employees for their hard work and commitment to helping us build a secure energy future that powers our customers' lives and businesses. As you can see on slide six, growth remains robust across the Idaho Power Service Area, outperforming national trends and highlighting our region's economic vitality. In 2025, our customer base grew 2.3%, including 2.5% for residential customers. bringing the number of metered customers we serve to more than 660,000. This growth is happening across most customer classes with extensive residential, commercial, and industrial construction continuing throughout our service area. In 2025, Micron's new semiconductor facility continued to advance towards completion. The size is impressive, as you can see on slide 7. Meta also made significant progress on construction of its data center, which you can see on slide eight. And that project began taking power last year. Additionally, Idaho Power helped bring several other major industrial projects online, including a tractor supply distribution warehouse and a major expansion of Chobani's yogurt production facility. Along with steady interest from our core industries of food processing, manufacturing, distribution, and warehousing, We're also seeing increased inquiries from other energy intensive customers looking to operate within our service area. We work closely with prospective large customers to set realistic and thoughtful timelines to meet their energy needs while ensuring they are not imposing costs on our other customers. The solution to serving load growth from new large customers in our mind has several important elements. We first have to comply with the laws of physics in delivering power. It has to be at a price the customer will pay. We need to procure reliable resources and have them available in the timeline we agree to with the customer. It has to be appropriately de-risked operationally and on the credit side through special contracts with the customer. And it cannot be subsidized by other customers. As far as we've been able to find, we're serving the fastest load growth rate in the nation. And we're doing it with a thoughtful and measured approach to ensure there are benefits to our company and its owner, at the same time mitigate what might otherwise be a risk of cost shifting to our other customers, were it not for our growth pays for growth regulatory model in Idaho. Notably, last year, Micron announced it would build a second semiconductor facility in Boise. The load and CapEx projections we're providing today don't yet include this expansion, but we're working through the details with Micron. As we've noted previously and continues to be our practice, Idaho Power's public growth projections only include projects that have signed contracts or large financial commitments for customer-funded infrastructure. With this approach, our growth forecast for large load customers is based only on committed projects. We also have a significant pipeline that includes a diverse mix of prospective large load customers, and that pipeline exceeds our current 4,000 megawatt peak load. But if we don't include any of them in our load projections, speculation and hope are not how we like to forecast. Turning to slides 9 and 10, affordability continues to be one of Idaho Power's key focus areas. We work hard to keep our costs down and provide exceptional value for our customers, and our rates have increased at a much slower pace than national averages. We believe that even after implementing our 2025 Idaho general rate case outcome, our prices remain well below the national average. We're proud of our low rates and despite considerable infrastructure investment and expansion of our customer base, we expect rates to remain in check with our regulatory methodology in Idaho. Case in point for affordability based on current projections, we're not planning to file a general rate case in Idaho on June 1st of this year. While we anticipate higher depreciation and interest expense associated with growth and infrastructure build out, as well as wildfire mitigation costs, we expect revenues from new large load contracts will help offset those additional costs. And we continue to benefit from our culture of careful and thoughtful spending. We'll watch revenues and cash flow during the year as part of our continuing assessment of the need and timing of a rate case. As seen on slide seven, or slide 11, We continue to be full speed ahead on our major infrastructure projects. Work is progressing quickly on our B2H project with 80 towers already completed and many more under construction. We expect B2H to be in service by late 2027. Permitting is nearly complete on the Swift North transmission project and we expect construction to begin this year as well. We anticipate the project will be completed as early as 2028. We also continue to work with Pacific Corps on the Gateway West transmission project. We anticipate a critical section of the line between our Hemingway and Midpoint substations will come online as early as 2028. With those expectations, we should have several new large transmission projects added to our system in 27 and 28. Transmission takes a great deal of time to permit, so we're glad we got started early. Moving to resource planning, we recently received acknowledgement of our 2025 IRP from our Idaho and Oregon Commission. Turning to slide 12, Idaho Power is adding generation and storage resources that will help it maintain excellent reliability as demand grows. In 2025, the 200 megawatt Pleasant Valley solar project came online as part of our Clean Energy Your Way program, and we added 230 megawatts of battery storage to the resource portfolio. Additional projects are underway to help us continue meeting growing customer demand, including 250 megawatts of batteries and 125 megawatts of solar, which are both set to be in service later this spring. Idaho Power has announced plans to construct 167 megawatts of natural gas fuel generating capacity next to the existing Bennett Mountain Power Plant in 2028. We're proud that this company-owned project was the most cost-effective resource in the RFP. As we've mentioned on prior calls, we're working hard to solve the generation needs in 29 and 30, which is a deficit of around 200 megawatts of incremental firm capacity needed each year. We expect to procure additional resources to solve for those deficits. The additional gas plant near Bennett Mountain, as well as other resources we expect to construct are included in our CAPX forecast that Brian will discuss. We filed a request for a CPCN for the capacity addition next to the Bennett Mountain plant, and we plan to file requests for CPCNs for other new resources in the relative near term. You'll see those requests on the Idaho Commission website when we file them. In other news on generation resources, in 2025, Unit 1 of the Valmy coal-fired power plant was converted to natural gas, and we also burned the last of our coal at our other bombing unit, which is currently being converted to natural gas. We expect that conversion to be completed this summer. I'll end by discussing this morning's announcement regarding our Oregon service area. We've entered into a definitive asset purchase agreement with the Oregon Trail Electric Cooperative for the sale of our distribution system and some transmission assets in Oregon. After the transaction, we'd have no regulated retail operations in Oregon, so we'd provide power to OTEC for some period of time under a power purchase agreement. The base purchase price for the transaction is $154 million, which is subject to various adjustments. Completion of the transaction is subject to a number of conditions, including approval by the Idaho and Oregon Public Utility Commissions and from FERC. Oregon represents a small portion of our overall service area, projected to be less than 3% of our total sales by 2030. We're confident OTEC will provide a strong local focus and dedicated service for Eastern Oregon, while Idaho Power concentrates on supporting rapidly growing Idaho communities. If the sale is approved, Idaho Power's 20,000 customers in Oregon will transfer to OTEC service. While Idaho Power would no longer directly serve Oregon Electric customers, it would retain ownership of its Oregon generation facilities and a large majority of its Oregon transmission assets, including D2H, which will help serve Oregon residents and businesses. We're working closely with OTEC to prepare for a smooth transition and make the appropriate regulatory filings to support the sale. It's too early to determine, but we expect regulatory approval could take 10 months or longer. And with that, I will turn the time over to Brian.