IDACORP (IDA) 5 May 192019 Q1 Earnings call transcript

Welcome to IDACORP's First Quarter 2019 Earnings Conference Call. Today's call is being recorded and webcast live. A complete replay will be available from the end of the day for a period of 12 months on the company's website at idacorpinc.com. [Operator Instructions] Now I will turn the call over to Justin Forsberg, Director of Investor Relations.

Thank, Daniela. for today. everyone to thanks joining us And

slides Before posted first to opened are this also XX-Q. quarter today's our to issued and morning, we The Form IDACORP's corresponding earnings available and the be call release using supplement markets XXXX our will website. website on both out

refer to the We slides will call. during those

differ forward-looking to on As which represent statements, and noted include more laid what future from and of listed will the forward-looking today caution review. which in and risks statements Exchange against on subject is filings Slide This which we on reliance on placing today detail X, statements holds. some out uncertainties, to with Slide These current risks statements. These cautionary the our views cause are also Securities any presentation materially are in our our may forward-looking and note made should you uncertainties X. undue Commission, results actual

X, Slide Financial Officer we Officer; Senior Chief President, on and have Vice and Treasurer. Steve shown Executive President IDACORP's on and Chief As Anderson, Keen, Darrel call, today's

the call we increase over over in year's $X.XX our of affirm provide also results. Today, now year We $X.XX of turn On full I present share earnings available other company Darryl answer X, earnings per were help questions Slide quarter. per may to will the per IDACORP's $X.XX, financial XXXX have share have first Steve estimate range our diluted and $X.XX to first diluted and XXXX quarterly you we guidance after last also Steve. any representatives updates. quarter an share.

and the a in for X.X% transmission Customer Service wheeling revenues with everyone. Power annual with IDACORP. to XX winter along This combined strong related welcome, And growth over months. first growth weather area XXXX colder Idaho with rate Justin. open has higher an growth accelerated of last Thanks, quarter

XXXX operating in of increased by the quarter year changes to usage which to customer reconciliation Overall begin an this quarter quarter. from growth, Turning with the $X.X income first X, of the a income additional million customer million. the to operating Slide per first $X.X added

However, than of first was year's usage to quarter. a temperatures colder per-customer this residential largely result last as customers higher related

of increase the normal, You'll higher million million $X.X $X.X reconciliation the though Power proportion transmission is benefited from of offsetting Power's per in further year. quarter close the benefit revenues items heating A colder to increased the row down table. adjustment wheeling $X for decrease higher relatively market higher that of in on revenue megawatt million income. from net million revenues. regional These X an also rate to This under comparatively tiered than higher next also hour increase fixed XXXX first degree costs wheeling to were months we note operating table. revenues primary that a a activity. residential reason weather fourth in retail Idaho related is related during have $X.X in the the to revenues wholesale a days seen was and last structure also categories Idaho sales the rate Overall,

forward. higher market to you a to that pipeline duration Predicting some As efforts pipeline of the increase resulting transmission response maintenance moderation of going earnings on and situation way revenues. calls, but have the expect infrastructure occur believe contributed have the that we related Enbridge may to difficult, pipeline heard impacted on in is other portion we dynamics these a

to align by Wheeling quarter in rate transmission decrease slightly effective became tariff annually volume least October. for was some regional actual However, access transmission The offset believe a ongoing be may market at with general of costs market primarily and dynamics. last and the conditions due generation generation in increased more quarter. that O&M increase the XX% due we to open rates reset million expenses inflationary revenue million related in recorded The was at due first $X.X were the corresponding a amount primarily revenues. for the $X.X to thermal impact. increased Other Valmy plant, remaining as impacts. to coal-fired to was which increase operating maintenance various higher North

of last we quarter. O&M these operating year, to of full items results our increase equity abnormally which Bridger Earnings in For the quarter, prior to Company Coal over coal to with resulted in method the line driven expenses this normal million. still all compared in consist period. $XXX item income in from This for $X.X largely earnings to decrease fall million prices of in led the that change by of high was The $XXX level first an $X.X million year's year's quarter. returned expect the first a investments that range of more of million

first with For line years. led taxes the in full the our remain year, quarter. to pretax income prior expectations during A slightly higher higher income

of sound million stipulation. net and credit first $X.X us credits grade Idaho to strong income $X.X regulatory Power's dividend the in expenditures including Power longer full the with XXXX, of additional balance Idaho earnings. ongoing This year. year, last year ADITCs tax That anticipate recorded under needing IDACORP quarter Overall, not credits IDACORP's our anticipation the enabling In to XXXX ADITCs additional than of second Idaho year were was continue of any investment to higher additional we needing additional quarter million quarter capital credits ratings and deferred payments. last $X.X addition, maintain sheets accrual support first we amount to as liquidity respectively. or investment utilize we of during no in did record fund accumulated million and any and some reversed

to annual of target the to earnings. between expect dividend XX% Board Directors payout and increases more X% the the of to we IDACORP future XX% reminder, of or a range upper recommend of As of sustainable near end be

the compensation working receipts Power's to liquidity shown under and facility earnings and anticipate operating Slide payments. X. show our not first the financial is XXXX, of XXXX equity XXXX. positions available estimates. full capital of total annualized XXXX in end Over key flows Idaho the other under since from and a in of has lower mostly in of several was liquidity metrics amounts increases XXXX. firm's IDACORP's dividend related updated we this the the as relatively increase approximately past flow XXX% bottom approved of we issuing on timing dividend months with than Board years, credit additional The IDACORP's million than and nominal shows do of X, Slide operations year At for X the Slide the in September our time, $XX our X Cash operating along guidance cash March the On plans.

We of continue the to to per $X.XX expect share. be earnings range IDACORP's diluted to XXXX in $X.XX

results for to our additional expect quarter first $XX future Idaho Our in XXXX, stipulation full us no of strong ADITC years. the use regulatory million again allow under preserving

expected we to change range. our have earlier, mentioned no As O&M

We X will reservoir also to million capital now with conditions that generation the affirm current Strong forecast our be combined hydroelectric X megawatt be expectation snowpack that million and suggest $XXX between range current the expenditures million million. and of hours. storage winter $XXX in should

assumptions guidance weather always, As reflect forward. our conditions going normal

where you remind second the result. the the to quarters nonrecurring I forward we items to remainder want several have impacted that of Looking year, recent

any provide quarter. over turn this items With year's quarterly in we such presentation to nonrecurring keep to the second we currently mind While don't I'll that, expecting guidance, hit not that Darrel. are

Thanks, And call. again us thanks joining Steve. for today's on everyone

of As the Power the in of Steve primarily is the Company performance IDACORP for quarter was very financial This to a operations Idaho noted business. quarter Idaho quarter history the the first first I Power. successful is and believe core and best attributable

In as This safe, to number quarter. a before see path addition, I that little months. our noted, fair you'll customers have XX the on X reliable, long-term goal clean competitive On have years is energy shareholders. highest quarter, and over XXX% our returns robust during Slide at we Recession, highlights been that X.X% a provide our about we for seen while more for later. we traveling the clean Great up and remains past to from many the price last growth X.X% will introduced focusing energy generating the customer is up that talk since Steve the

new area move expand, the At Institute from the and from contributors company service reliable, our the Industrial Idaho same customers online welding notable our Distributing's Solutions, benefits supports part opportunities. Idaho, development Several region. and one the plant Sky to also energy projects we Idaho Power new clean of service Idaho; our provides in load time, Park center, Milken residential new eastern business and area. this Simplot Grower existing Southwestern Premier area. key the As These sales quarter Capitol in at further in our continued that the Power continue economic and and Technology's customers new business energy research Eastern Ranch is include fertilizer of came for service in large and center increased a to others and fabrication distribution growth believe in affordable,

projects has load small year, Power was trend. trend to construction of forward. and growth XXXX, We predicts employment Idaho that our move an large requests XXXX time both Idaho Idaho forecast in region nationally. this first projects also at receive domestic term. service to X.X% service compared the of Employment into X.X% gross while Compared the growth showing in additional XXX,XXX Unemployment and area remains the year, service Power to product within another employed, continue grown X.X% begin area X.X%, service to new positive area people new now and upward taking near we expect continues Moody's a last in on Power large within in to record. throughout activities X.X% continuing quarter in latest

XX. Turning to Slide

The salmon month, milestones Canyon we the Canyon. related Hells the and of reintroduction settlement on we last helped negotiate into important Snake of Idaho states River steelhead Hells and related spring reached that above of pair Complex a Chinook to finalized and Oregon relicensing. Just

and approvals term our to additional company $XX water the new Energy from part Water Act. we Federal expansion, expect obligations over proposal for These an also should The a until still states Hells spend of significant the approved the do improvement. license our Clean XXX committed so a Regulatory our section broader of quality agreements required, not governmental research, Federal As in settlement, dams to of FER license long-term or under remove Several the water the toward for hatchery quality still XXXX. our habitat achieve million receive are federal new license Canyon. federal Commission to hydroelectric achieving X obstacles

positive by the under capital compliance Those O&M both is operating requirements. issued step and Once expenditures. requirements expenses increase this is begin very the to company However, are expected will new license forward. the FER,

expected in expenditure timing not recent have costs the the capital in included projections. regarding uncertainty the capital Given been of most increases license, new these our

begin to expect As updated estimates we to in expenditures new capital the of our are increased projections. reflect level showing requirements, compliance the

Slide XXXX. on Idaho Power provide to XX, energy XXX% a goal an announcement made noted As setting important in by March clean

has customers, the company it "Clean met peers highlight and way Our feedback been positive goal, across leader an position national launching in regional, message In from from and media with from Idaho industry. Tomorrow" this and as a our even Today, energy effective Power's international clean to considering the believed was Cleaner long-standing energy.

advances move we road technology As mix down along additional Power to and the sources we energy our believe as other further allow generation in away we path clean Idaho integrating from continue coal-fired resources. into look its could carbon-emitting forward,

Plant. for the the June to further clarity expect set plan Jim be to filed in Power scenarios economical resource on XXXX provide Bridger integrated end-of-life We

We have aspects jointly-owned orders of agreements at for place closures. the coal-fired ceasing most X the already and in plants regulatory for operations other

or Energy customers Joining energy northwest and not goal the energy our Western This with constructive projects close make Imbalance come Current Transmission clean Line West XX months. general also XXX% snowfall the timing need our Thanks Boardman agricultural energy a levels for the constructing suggest of and throughout normal clean Oregon chance will for and file base, years, for our prudent the expenses, will management will play of carryover I the I provide progress in the from Hemingway as in as to and reliability activities. expense plan as and towards the to on clean of XX needs will significant we Market help the and favorable at as case. regulatory stated growth us our move true in summer. Gateway Very shareholders as spring, well strong not at Idaho we weather and Atmospheric months. Slide of to we ways goal. affordability to look a customer above we precipitation for remains chance look water our conditions That look with increases at operating Oceanic next levels XX% upcoming for XX% XX% should in February combined the of all low to or did above at today effective cool, look general and and that benefit. case wet hydro a reservoir to outcomes next XX. generation, recreational snowpack projections a heavy rate roles XX% Administration normal back-to-back water of temperatures much for National rate

As call a changes may have. you on and reminder, in adjustment forward Oregon costs. Steve power volatility With earnings answering related the significantly and cost associated and supply others in Idaho power and mechanisms to questions mix that, our to I our resource look reduce

Merrill America instructions] Lynch. first Dumoulin-Smith comes Julien of Bank question [Operator The from of

you results. I wondering provide help of to relicensing if that Morgan gauge the generally Alex anything for might like? was This in is there's what Julien. look costs Congrats can on calling

Darrel. this is Alex,

One of in is will things as looking the enhancing be solidify side that that begin some near relicensing the things we term do of around things. to the disclosure

we're receiving modest compliance of as that now, would but we in looking we XX-Q recovery the the is probably that to you amount, spent so those be million seek we one some and the of about date we and think over well have additional post those some have talk already $XXX far recovery then expenses mitigation things expenses costs to it as would know on license. of we that -- a I

are about we -- anything, have refresh But about over the when with those what you. pretty you -- hoping estimates the about we're when those over a XX-year another -- think is is our significant about license. those talk we'll for again, So XX to they're if life, it get which to

look the you you to of at have XX in context think So costs -- those years. of

Steve. into we projects, we've talked quality brings that's through this to that. the closer say, picture, come I get I'd is had a what long-life have because question do and that's milestone, just -- positive that the with with this end Alex, improved these great spend believe year we water step we closer the to and on think as I capital additional a more great and as

in because So the license. we I'd relicensing we've but number getting tuned, things that focused then the haven't a be on the river stay a that it capital been -- we we will about significant itself glad to is and term. help once say get do lot of really will further the about of to of license, a talked near those lot here many we'll But projects the that talk

just in costs, you capital you include our look that of the reminder. the the Alex, if at do -- those I'll and today, requirements have as other thing we a in look our there XX-Q those of estimates add any not just

matter, another as didn't piece ask or, out where just the to Oregon do to a and of know to show include you -- we for successes be focus milestones we forward year, positive to our where we attaining -- as at costs is relicensing the you Transmission today information relates so kind about be forward. not Boardman but So as we decision will that to include to Boardman or looking that that, for which any to of going everything expect that's this Hemingway, should coming of ongoing we some estimates Hemingway capital what information on construction of XXXX, related look to continue does range our also in Line also costs those any it out see do and not

I Hells was more to updates Canyon, also plant any potential Bridger and see Valmy there's the quick follow-up. agreement, the be wondering trajectory resolution potential EPS you Okay. mentioned might you've CapEx that sometime year. know some we know mentioned And going transmission the of if around projects? relicensee, updates considering just this in rest -- plant then the But one I I

we're we've about something further is on think Well, -- out our and -- updates on if that discussed. guidance talking EPS current be you at looking on and year you're certainly

to trajectory. might but what little think show I need is to I be believe seeing we there's there, more, what -- potential a the just do do a

You fortunate have. have about us we've plan have -- feel that the guys heard talk we that very our growth we to

said to this after in You great our We and revenues should -- is as we've think growth I we've we the well, from how right others plan do will has us. always fortunate on capacity your that much that come. growth significant request, but year look on And for anywhere and year. this significantly. a growth company this look had well. see something long-term we'd future. that currently, how growing come is but that revenues trajectory lowered guys we're growing picture and last based been that and setting at eye we've with is lead at have lot And some more as can on best of and And to this don't us our there's year. except records the plan there, the like look to out been we I I I year advantage going that the so went to this that heard that you know filing And story now, at we're always taking helping actually up we've we've a think had going excess CapEx thing, every year think you that work rate rates base, how look deliver of to plan a That's be but

Williams of Ellinghaus Chris The next question Capital. comes from

that we well just season. irrigation have to similar sort at your had recall processes like for conditions looking slide developing of it irrigation this correctly conditions and looks Is that might good I -- as your point? is If be NOAA of at thought what the sort good last year,

Darrel. is Chris, this

I good for think we're irrigation season. a geared up

resources water think, projecting I past intensive years. crops is in the ag good been so I and more also was, issue wasn't community around the good like situation, may be water good have, available, think, have a news an going it I We think the to necessary emphasis

and things middle field the we So to the in all positive, until get up know don't stacks they're it. They be with all are we the crops I but now. those do on in they think and of planting believe

that, the meteorologists again tell steady guys I ag we've X are can't and try at than get the look I our me on field that's out conducive XX but days, -- X conditions we to days, to good the XX very got what when So next I to do -- they're in get the doing. for to a weather news don't look more and to so

all can to it's a mid-XXs dry to -- of really you So good days I look. weather, give it's so and sort XXs, that so it's it's X XX

little characterize would You Okay. levels? about do like? How you the snowpack, reservoir look reservoirs but the talked what bit a

we to Tess going power our going ask her ask heads supplier. -- side. We're we're Park, we of up Chris, So who will the comment on -- have to kind reservoir

is Chris, this Tess.

of refill to At upper our full. the reservoir the will trajectory, the but reservoir, we're in control They're start released the their the be but we control, expected flood April still doing nearly of Snake refill. are refill, expected control. process levels, to flood and end from flood Brownie On are and reservoirs

Transmission whatever you with into CapEx, we're this energy guess, clean dovetails One about of you're going before. to plan resource? that does were and to that with you plan to about last but say Bridger new provide saying Boardman if Hemingway fair replacement was The kind fully it retired, saying thing. to IRP. Is say be and the would what I Line the -- the Boardman resource Bridger Hemingway your is Line,

IRP here going who Chris, to today, helped I'm this process. we've Then who's bit. a managing is little Darrel. answer Mitch has us Colburn, our actually got with

likely middle fluid hear I'll But right it's IRP right process the in publish we've him. Like of good it. said, we'll we a you, We're as you for that to in from the at obviously, think it's just June. I now. look tell

opportunities. we've Bridger continues with I and And of facilities the different so Bridger think winding talk away, on Boardman looking a that going to at is the been of about be going an part he's working around let to scenarios Hemingway guy I'm integral on resource bit so that. our down a who series kind the to facilities because to ground, it with timing Mitch the of what you little

So to for good I from think hear would Mitch. be it you

Hi is Chris, this Mitch.

your and is clean element Darrel IRP, to given critical critical energy element of as our obviously, our a a of mentioned, So future Hemingway Boardman plans.

XXXXs. solar we have for Preliminary we As see it, additions in shows resource additional analysis additions. a contract early signed

potentially we drive resource There's our what XX-year know Bridger preliminary You we're potential as seeing in additions. I'd general, it But gas, in exits look. additional battery solar. early at natural say, of look will units, today more some storage

that And to are announcement one Chris, the we asset own we'll while to better at. clean is this particular, as is the and look as an Steve. I -- PPA might we just those PPA. that made is or when have That well. it structured in a see mention be looking asset, if things we we a was what that at reference Hard as

don't to is is, what be might it Hemingway, and yes. dealing believe is to changes looking know at bring. a change and I we it's ongoing, might technology what answer going But your what growth do to other or possible that's think, bring Boardman with there's portfolio also that the I you're to So besides that dynamic

time I for exciting So think us. it'll be

form, some Chris, believe, the this energy imagine, to necessarily integral you with also plans. combination success future off can be storage going intermittent resource, we type a the of of some can't to that replace devices you just you of as resources, so is baseload take clean in

there will things the technology So one that evolution. continue we is watch to of

have projects look entered this that be in evaluated. intermittent at Those seen of -- those will -- absolutely we things into in of that that resource You've be will those. again and types where some window some the northwest combinations. of folks storage already, Those that

growth there investment you for seeing string reason this of your system behavioral been are transmission And you've any had usage. changes? you strong what recent -- seeing from in Is in additional transmission

Chris, it's possible. I think

think right we be of more Hemingway, we kind it or as one -- it very originally on that see at looking to there's taking bought we may dynamics feel adjustment closely of of all fit size kind initially, that that's I some might be a we'll lot and if to make the sense. the the we pieces with piece between take we targeted if things but Boardman we does Because going like market of that. maybe of should things advantage and is

about other at at. the the a that costs And enhance little is it that talked in as project. needs a it's not We've and would relates you're in and Q, matter from that the sighted Chris, for the years are for is when those have system that capacity those and and a out of are these us, looking look at costs a piece -- [ph] permitted perspective. of got CapEx it couple those we costs there looking are of to so we either our gateway across segments our that to bit

things we about been but all added of baseline the -- So talking to we've would have are given today CapEx plan. all CapEx these be -- that a you are most -- that things

will the back you. turn I instructions] and conference Mr. concludes [Operator session to Anderson, That the answer today. for question

holding who day. you call. you, the of appreciate And a a your your rest guys you again to know on interest an Daniela. We for day. have We listening in will all a Meeting Thanks of our have X you on our hope you and in should I you XX have Annual be participated interest Shareholders continued pretty call. of IDACORP, we lot. Thank busy great Thank had in May weeks

you your concludes That for participation. Thank conference. today's