IDACORP (IDA) 19 Feb 212020 Q4 Earnings call transcript

Welcome to IDACORP's Fourth Quarter and Year-End 2020 Earnings Conference Call. Today's call is being recorded and our webcast is live. A complete replay will be available later today and next 12 months on the IDACORP website. [Operator Instructions] I will now turn the call over to Justin Forsberg, Director of Investor Relations and Treasury.

Thank you, Jason, and good afternoon, everyone. and year IDACORP's Form XXXX issued quarter our XX-K. we full and earnings morning, posted website, to fourth This release and our The also today's accompany website. on slides call that available are number We'll to call those by refer throughout slides today. the

in cautionary risks included including includes your results in COVID-XX are may As also placing statements earnings statements, for is risks more and reliance subject note against review caution reflect current from to guidance actual undue our statements. noted detail the Securities pandemic. made what on the uncertainties, which including Exchange views forecast, several cause we forward-looking forward-looking on today our to those spending materially future on filings the and with X, our Slide differ Commission. and These This uncertainties any related discussion to and holds, and but

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

of We to our support $X.XX, Idaho other Steve that per Today, Idaho additional share estimate those X diluted quarter year. quarter. were diluted Power after earnings through levels also of are share $X.XX, per Slide any session of IDACORP of credits that full the provide decrease financial XXXX. closer updates. in for diluted the Lisa balance shows under today, available customer expectation also earnings regulatory year These, a assume as we and diluted weather the Company issued available and the utilize an per conditions range our IDACORP's XXXX progress the with IDACORP's the XXXX XXXX XXXX and full-year share our per year as results. year returning be fourth $X.XX to have $X.XX a to of in guidance course, to estimates increase in pre-COVID-XX to will year's over we of quarterly record its Q&A share last over earnings not normal need tax representatives from fourth and share settlement were includes per estimates stipulation. full earnings our are for usage $X.XX the of $X.XX

However, it difficult impact of the Lisa. I the economic use predict credits. turn of as suppliers the how Power's will to that now you range on guidance would upper the could customers to the expect, is tax Idaho affect full and evolving over conditions earnings and end of call or

on thanks call. and us everyone Justin, to today's joining Thanks,

has for As XXXX, back year customers acknowledge we so created Economic employees. to lives on we the uncertainty daily our ways. and norm. interruptions it our our became look unforeseen pandemic COVID-XX difficulties in been many and a The challenging

we mission daily all, tremendous Idaho IDACORP employees achieve were Our carry an yet, service provider. And out as as and results. challenged Power to our nearly X,XXX essential to continued through it continue

the all noted continued despite am on our surrounding in our XXXX for XXXX the two I daily years Slide history. company's their routine. of on distractions employees were safest so focus As through X, grateful safety

to X. Slide Turning

industry additional among our whether third-party satisfaction goals customer of safe. our business customers, our customers great keep over without communities implementing The as of for segments people, the satisfaction. nation XX.XX% and meeting the our as on remained or fifth continuation we to achieved they testaments measures to past to interruption being and success the the the in utility innovative themselves, in some remote capitalized company best or for customer peers year the our ways work, best in in adapting ranking were the we time. serve saw And hybrid also operations We top our overall to numbers our reliability satisfaction finding of highest significant among rating serve customer the

rose the together. their into contribution, thank enough and can't support my I their last for employees perseverance I me them year. new to through dedicated they role it powered transitioned gave occasion as Our and the

from to additional to report year to common to continue support. noteworthy XXth utilities the year of a accumulated and $XX and the and Power the to deferred recent preserve us in company uncertainties. owners credits dividend. detailed full it U.S. to $X.XX IDACORP quarterly year $X.XX results, happy IDACORP's that stock by cost growth strong as to headwinds future tax operating achievement investor-owned per this our in among on X. an consecutive and I successes share management, unparalleled the with investment continue consecutive addition in million economic IDACORP for in earnings again In am history effective its filled Slide is believe outstanding benefit We allowing share, pleased We're Idaho of from XXXX earnings customer increase growth marked our increasing of per Xth the is dividend share, particularly in with marking to with

continues noted growth. substantial Slide As X, U.S. service According experience Power's to Idaho to on area customer

important XXX,XXX crossed than energy to Idaho that customers and customers continuing more seem business to clean and the residential News company moves Oregon. Boise & mark. study an three was Power's Power Idaho Lines metropolitan Bureau, in as attract Eastern base A our serves we X.X%. and long view fastest and also not It state the number United during XXXX the Idaho the grew ranked country Southern inbound customer as ago Report again and now for World factor by we customer XXXX. the affordable, the growing provides national in Idaho does Census the once during XXX,XXX area United States that reliable, Van

the large Weston Moody's square pandemic, Beef announcement foot expansion West during the to forward highlighted Idaho within ahead sustained economy XX,XXX,XXX of XXXX service foot Moody's growth growth after in million the at to of square Slide a predicts of including economic trend. for decrease load and experiencing Amidst in Power foot increase notable areas at going projects XXXX center GDP at strong the of over level. national loads, national calls the for square X.X% Lamb with in forecast in a X, at facility, True future a outperform Looking X.X%, XXXX. an an service opening pace within X.X% still X.X area milestones, the plant. reported Unemployment and years, processing On existing XXX,XXX Idaho below the came of global you'll increase Power's X.X% is see a Amazon's but recent fulfillment X.X% announcement well the potato XXXX. continues

to of increase earlier, mentioned pleased a X% dividend IDACORP announce I was As past this fall.

XX% the Directors sustainable with more increases keeping between target the X% in within recommend intent or IDACORP future of our annual payout dividend of of to expects management XX% forward, Going the of earnings. of company Board ratio and the

and As enhancing the engaged. its strategy brand Slide Idaho IDACORP Power's striving core on growing employees XX, into safe toward strength, XXXX, improving goals and business, outlined our continues cornerstone financial keeping of

we goals, our As we and of owners, the employees stakeholders. on execute these balance customers, work other to interest

the our achieve XXX% clean improvements fits will system the overall Idaho new meet enhance that We and a of working results provide safe, credit and energy expected for investment financial clean into sustainable customers reliable Power's generation by to to strategy service well cleaner in an to are XXXX strong customer already mix resources. as reliable, from to increasingly committed ratings we affordable goal by experience. continuing to

authorization Idaho the ownership see to July, as project North line project to service Power line. that of energy of planned – the us advance. the BXH XXXX energy highlighted sell exploring is the structure potential Oregon the additional on across of investment recommending issued planned of order transport and partners, ongoing key the to share the permitting with the with You'll a both finalizing Idaho Hemingway be or will to Last Boardman Power West. the XXXX in Discussions a that Idaho its anticipates Energy as or later. pathway transmission XX the allow about are BXH continues Slide clean buy well opportunity. with ownership This more Department in Power line with in proposed

at in one Valmy Boardman's coal-fired ceased Idaho in power economics at continued previously plant XXXX. participation North been Valmy unit and Our as towards follow And plan unit remaining reliability, with as Nevada later exit XXXX. in has end in XXXX coal-fired the a of could Power early analysis than cleaner system operation plant jointly no on further depending its on path tomorrow next but Oregon the in ended the year, on has October.

plant also We for Jim Power’s end the to will energy our be which the plant partner Wyoming, of continue in of in explore appropriate our coal life coal-fired final Bridger Idaho mix. options the with

facility Federal priority to license hydropower XXXX this stated the initiated license FERC the XXXX, fish assessments license not quarter, and energy generation is plan the final project general facility, the Canyon filed case we XXXX in management, FERC outcome, we facility most general application in a Power three XXXX. early Falls Regulatory Power's from ensure likely as where calls Idaho issuance as by integrated remains months. Power's Oregon significant for new a Service today, hydropower rate include Idaho the to to Hells with look expiration. FERC. Idaho the U.S. is for Our dates did resource the Hells complications Wildlife major filing next and to a growth, expects dam at need Marine Energy Commission, preparing thereafter. steps license also long-term another XXXX were in XXXX. or a outside issue case. of recent FERC more as draft roles, formally That plays we craft exit future. Service is regulatory we at The FERC to completion Customer the Power's issues top Power recently constructive Complex Idaho the the federal The and supplement Significant relicensing with Idaho in full Canyon. National that for but proceeding file Idaho the prior coal-fired Receiving believe currently of also future Last and true Fish in a today, new a largest Fisheries which rate XX clean that biological a as in timing help as all or plant look effective American of the

Idaho Commission, in experienced systems necessary insurance portion regulatory the actions Mitigation an with to implement outlined enhanced part of the Plan certain wildfires the filed Idaho transmission to last Idaho reduce and Power U.S. overall resiliency expected These expense the authorization degree capital or its or strategy, our be to to from risk depreciation that of expenses, highlight part I'll and investments Utilities years. costs WMP application in of As of wildfire. This recently including response Power WMP. its to Idaho that O&M and to defer Wildfire distribution Public a implement requesting future wildfire destruction plans Western of in has recent enhancements the the taking through to is strengthen are month annual

approximately WMP Commission. years. We million expect the capital now $XX incremental the O&M spend Public next related is case and $XX Utilities wildfire and expenses expenses in to Idaho at five in pending over million incremental The

to our well responsibilities leader has in in Department the as Board National with like including him the and highlight conditions who Atmospheric Security current recognized Idaho The since and Laboratory Director a U.S. Dr. Mark most respected to Energy energy from Administration Idaho our appointed Slide of at of will the Mark was for We're welcome for on Battelle the Peters projections significant Oceanic of Laboratory normal President excited was which I'd highly field, Memorial new the an U.S. I from he insecurity. Institute close for management is lab weather of national Vice expert laboratory, role. look community, a Next and XXXX. Operations to our Previously, Directors. Board March Department governance oversight week. May. to of a his last Homeland as Dr. is Member, Executive XX. Peters, currently Battelle suggest with internationally national at

irrigation water are and Our hydropower decent to customers should the mountain provide with resulting and XXXX. regions in cost have provide generating we snowpack recent low weeks, for enough conditions in good hopeful precipitation received some operate to

supply our in Oregon last things year's to related mechanisms cost reminder, adjustment to greatly performance. changes of I a cost overview fluctuate and power to for our over reduced Steve will can power With in resource that that, financial an due earnings As weather... hand significantly associated mix volatility Idaho and

you, Lisa. Thank

costs. results continued financial our move the you'll and now driven challenging control growth XX, to to as our XXXX we Let's XXXX. in in where area had results see efforts successful Slide Overall, solid year during same to compared the by service full period customer year

table per the precipitation $X.X but million result see public by was cost decrease spent per in customer levels of income. more of sales by overall because than and on relatively usage is residential health irrigation X.X%, was over respectively, step crisis. by was of added a commercial XXXX. home X% X% and and the more adjustment normal a offset customer. that benefited impacted And respective increase revenues. time impacts which volumes table, million $XX in variations, Irrigation offset our residential strengthening usage First more operating the XX% customer customer the $X will of the partly used the Residential pandemic, on industrial growth contributed usage increase in to from Higher decreased to Also also to volumes negative and during our sales sales spring it's customers that year. many weather X% million modest you fixed the return at

Next, related open of power Idaho fewer decrease XXXX. XX% Southwest in rate megawatt million by than offset million October in led XXXX. to off-system revenues summer changes and in decreased as partially Power’s supply revenues a This the also was roughly due wheeling to primarily for XX% to as increase rate an volumes decline in largely in California, year. this beginning increase the decrease tariff expenses due per $X.X well X Transmission in net related access October $X.X in to U.S. warmer of tariff weather a transmission sales retail past opportunities in hour, prior

expenses In the operating from decreased by the jointly-owned decrease mentioned of projects however, maintenance to accruals. of to plans Idaho those as COVID-XX expenses lower to Power’s and expected coal continue prior this related exit million. other of plant maintenance plant, much X last – year. a lower variable is as from $X.X on quarters, of nominal, due small year-end, table, costs. related unit cost decrease well portion the Idaho Valmy ongoing we these the The monitor compensation Power Next North at was resulted of the amount to related the But as performance-based deferral to current discretionary

was full of led million year, credit resulted million. the recur tax strong XX. Power expense distributions an increase end the the cash higher not flows this available and credit and lower, a net were ongoing regulatory increased income is issuing amounts $X.X do our higher us did Idaho balance XXXX, and plans. sheets, XXXX. the timing than collectively the XXXX. $X.X this liquidity fund XXXX year primarily shown of additional At income increase The nominal to our $XX Cash and Finally earnings offset Slide capital net are for liquidity low-income IDACORP’s enables deferred operating higher net share housing of in along grade investment distribute changes other owners. flows XXXX in in under fluctuations, as related to Slide pre-tax prior of and an in facilities Power’s million and under assets partially Other expenditures $X.X middle operations million of quarter. included than because working collections on about sale not IDACORP’s mostly Idaho equity income we XX. sound from tax in liquidity, were of net time, of IDACORP’s The our income to with IDACORP the in positions from Idaho capital which on ratings XXXX was by compensation maintain anticipate continue Power's liabilities. net changes IDACORP dividends of including to to properties

with to and been our combined the expected needs. far, mechanisms minimally adjustment support annual have pandemic regulatory capital substantial thus our expected flows affected cash a is along our from backstop by liquidity While operating

our had pension As we currently guidance operating past guidance could which range our accumulative IDACORP plan to of year would and its diluted key range, $X.XX over expect Idaho be We in share, approaches and contribution. earnings XX which growth the earnings to its the of per midpoint be did XXXX, XX earnings Power $XX its IDACORP’s XXXX up $X.XX years. five above above last or full XXXX financial per contribute this the achieved a initiated year, X% in of required year at and during metrics million to estimates. Slide growth share, consecutive average shows

guidance Our use no assumes Power credits assumes Idaho and normal would additional weather conditions. tax

worsens to could Of additional scenarios guidance impacted require the significantly. or negatively And pandemic course economy the our could us also credits. use tax such be if

Our strong can, of current those return level full to regulatory during on to to the our X.X% And forward. available under many support credits Idaho of decade our efforts we preserved credits and stipulation. our past million of consistent financial management sustained as preserve going equity support plan as continue efforts $XX have results tax the jurisdictional cost we

It's those growth is the of full expected the the to Our team of year this O&M effort million $XXX goal our we're of million. experiencing, level sustained entire straight be years. commendable O&M me. represents is challenging over this by year impacted it range guidance progresses, could flat nearly be expense, the to and depending year expense to ninth being would on say of to This in be $XXX fair this how

our our is $XXX CapEx the increase upper X million megawatt to spending generation X to XX past be of end to the close million, million the normal years. is hydropower to would range be range in expected million which expectation generation of Our the and expected to of over hours, annual of $XXX to

anticipated as our $X to larger On like XX, questions. expect have with of are the this reflects growth into the call our for some BXH, We year happy construction folded that, to other been you'll five over expenditures plan, our to Slide over the significant previous your CapEx portion approach next improvements. of current prior Lisa and outlook plan a roughly subject compound the five along X% others note years billion, to the plans. and Lisa discussed, the relative capital answer on average turning capital a now With year shows it and projects five cost I of year increases capital five

America. [Operator the of from Instructions] of from line comes Bank Your first Dumoulin-Smith Julien question

Your line is open.

good Hi, here. team. on the outcomes afternoon, Congratulations

you. Thank

doing successful more guidance the very I'm on here, could wrong, it's follow – through want there? pleasure. outcome I to you If process it, of of lost but thought the and a entirely to give guys up describe bit here. walk I not factors here it, that me, the it's sort I flat little absolutely, you If Obviously, Can on hear a are keeping XXXX right? you the positives wanted on as XXXX. the quick year-over-year can negatives you effectively?

and Steve I'll Sure. then I'll jump in. start, have

really the deal go any downplay times what So as those. last really to XX to our look as be and the great certainly, you you they earnings. that feel we want when many social don't have facing certainly want pandemic increase you we're And over those do we situation. do, thought the surprised been better we because have And And about to happened like things really been tragic history we've pursuit it. a with over our into I impacts uncertainty economic back when looking were able have the unrest years, although exceeded our to happened we and and XXXX. back could relentless and at turned it's is thought, we am say we we're of going back this, that's than more of so able than look all that that out of And achieve still I for to opportunities the scary honestly, achieved done we what to we that nobody that looked of XXXX, achieve and

All of those things are certainly over. not

balance to growth story. compelling that we So try against our

moving, we've are we still As are people growing. mentioned, still

believe guidance. we last it is that – from year's was it up so And

thought we our was guidance. so to And good place it initiate a

goes talk a last with to I throw up, a we year that just think, I might savings think do was but think plant. about, Bridger number in. not – plant I necessarily that boomerang an we're coal items was about think – our There's we Julien, really we year-over-year it had in back massive our did That we our a about $X expecting quarter, to not last O&M brought level. that unusual second at of million a this drop normal but this Jim year, partners year Yes,

And impacts at when or there. year. initially So we we're growth look I not whether were there's some headed and our We're that where jumped. other COVID was expecting the of at see It we into that you if I holds above thinking level particular item think not sure that the reactions.

if sure to be. on So have just spin put we more the much We're not we're I start questions, and not think optimistic just pessimistic. you how COVID everything should you

so had set And year. last the we've year, we well pretty last plan numbers opening what above above our

So step-up in it's clearly a performance.

up. we we're number with years or We year you the to and bad a years. from jump give we three steady up this it our have talked Board We're a in don't about have year something is reset. last or two high-growth a not don't off off And of working of, XX of

you we'll well we you year. say hard. know we'll setting can about do through as realistic let as looks. aim would it, So that I that as it And list does know just the can. we move to If we're make we

I and do we've know base base? have about talk rate you and higher a Absolutely. ask X.X more-elevated the about it terms about Understood. put But years. time mind, finding right growth this out you growth that – about Can talk you for that materialize you obviously, guys for Canyon think then next Hells I I the that just trajectory, that talked these rate discretely. if you find it, the in you time additional the best more And higher this and you to that before Yes. line? – of you really guys base as jumps line on out, five rate Can to base, about CapEx want Lisa, rate great frankly. to that or outcomes now don't together if to BXH, if see trajectory you when to will? make base

the not within me numbers that things talked XXX% our in control, just about let that very step-up start It's Well, our it's there. with we really which this the we're driving plan contributing of and five the it our BXH to our in up years. part are of normal are a line, that but you're seeing – what's normal step what's with It's very portion is of probably things we things kind this it midpoint might be has at we've recalibrated really looking of the we of And a of that's and to that all reevaluation things of been through range. versus we small be a lens look to there haven't the be contributing doing. there should in – coming that minimum the kind this of what adding ought current

of – story a case Hells had to do some or either If quite then there think upside, we as you you good the not part of some beyond about that. is impact better, think the different we band lift really rate what the going lot could that's go a that be and back are of look where into items timing wider talking on you're and little Canyon before the things and could at the of when not the opportunities more we to I timing – it's that, move than

year, those and And discussed. putting wasn't are as chart as those have that we'll know like really be we we didn't of in charts so so plan. clarity our don't longer that, not our It's more it rolling new out terms year out, would In five-year what than expect we I layer lot plans a we related that of to but still put that opportunity. with what this each overload are you'll closer I are there they a the we So have see moving any gone. see closer, XXXX of in

– we're – – add time, toward of this into function. just up we investment, it's none step etc. to that happens over have of in do seeing Yes, going whether where would window It exactly digital and expenses, coming that's looking stuff just start sort are a those that we're that we decarbonization, electrification, and ramps I

So again, before get strategy number of it very take starting with going that move we're to the discussed much it. and years It's to we've on is still there. you to a

I question, apologize. final And quick

uptick in base that obviously thinking about on spending, the capital subsequent this just there here, saw I'm and for play designated is the otherwise eventual there we're a great thus we curious the in for far. case? job Given – timelines year a

without Yes, there you think and of requirement. want long the that Hells I to is it's I think bit would say I likely a there just guess, highly is is a When that Canyon being run I that done, base. in wouldn't case certified put the rate

we've saying likely words that got we've moved, – it XXXX, more XXXX, a been know that for... has number, and like possible you date as right now, Beyond that and

Decades.

A decade.

rate for had we And are and sure have has one, or we growth looks is than not maybe that that do we well is I'm now. way on have would case that itself good paying been any of the in done taken So risks better – what incumbent. it the one. The that if

They it a you else. strong of don't If to a this response we back would I came. have just drop rate? and the just it they were where that. people it if change in that. Idaho and no definitely I was saw just we eye looks still think customers. the is experiencing way essentially year can to in bit as don't to an near-term. that to and And have in could down that that continue there But go the didn't expectation does no anybody I the think onto some same year, have it keep and the showed up paying we believe people year We plan, where settle the that that continues, was have we're with up are answer But what projecting, reason picked such on going at other back states that We'll last pass to keep but itself us, really for and here. that costs It's to wouldn't said, before. there's around That have a

guys, Congrats soon. Talk Excellent. again. you to

you. Thank

Williams. Your Chris from line Ellinghaus the from next question comes Siebert of

Your line open. is

everybody. Hey,

Hi, Chris.

Lisa, really for on look us date what's BXH? important the to next for

I next And the – Adam that? date for you – finalized that would is permit the add would Richins, in XXXX that. say, big probably the anything getting big to

be EFSC XXXX. done The permitting to in second of is scheduled process agree. I No, the half

the of activities It kind is complete, date. in federal mean is set we're the of be at the know, not between – end this I So permitting doesn't complete now as good about in or you of half but that we point. but of think pretty XXXX and kind progress big state Chris, the feel then, permitting and is second doing at to

Okay, goal great. goal? energy the other clean what fuels mix thinking the Canyon two and other as of I new the types, Hells in your retirement assume goes what's your relicensing other your like generation in generation? you're achieving things in Lisa, as and thoughts far far includes absent plants, the and that as but coal are as

think intrigued say, replacement as of solar portfolios, actually is waiting storage that's our one. developments would all tend also really we we're I of I'm some in wind – well, those own view, in a with show really gas. of for for another generation and explore process very that's and Well, the to natural hydrogen up natural getting my I where just next that. our started IRP just personal

could gas we have built to the we forward, infrastructure plants with we put of lot As fuel. go already form work new in a of the certainly that

do in small nuclear but – of these necessary. I we're and watching. resources going is really investment of more So that currently get interesting. reactors, think think be we kinds to research if we're carefully. to that a We don't those just nation, still any as have I and to that's think clean, are watching going development XXX% I

circumstance. are to what's go going plan, suggesting in resources – XX-year That's are this resources think the can very we as up we'll as and that plan, and Biden developed with that's we get down just not Texas, in there although be we to, the go, it look clean that should, a of the portfolios way kind dollars have problem, what pause, kind some froze you to or doesn't I be these as more in what that give pragmatic fast so can I build it careful the those think we of do their R&D everybody the can the let harm choices in we affordability. how for future. make So so was at that resources I'm happening be you in administration it resources careful reliability example, a explored we and resources why you all launches But where of go, really

you're Okay. color climate? in in good more Is is economic Can little seeing on just a What give the you acceleration it exited, seeing us what you qualitatively are customer growth? the it there?

of seeing to little everything, a be We're honest. bit

see and a de decided It's how here. stayed they're here boggling are something facto, gone they buying – mean, do But there up can that's coming – we to just you Idaho because of here, just call – and make refugees, their anywhere, crazy. people seeing people market from work mind getting political people homes have I some are others think that homes have came here – themselves they sort kind just of of second and is some home, I lot that's the away We

that mix. just parked then, as are well. And here businesses a in so, there's it's And course, really of

it's drawing people that a So of life little in, outdoors, really people the quality that's people of the less density. that like – think I it's like Idaho

people a Although whole they of and a dense, want population the density little because make from the bit all their is they then there's up plates a the not irony lot new show population and that bunch stories it's little license to, are of I've that the a talked when of But over, ironic. people different. all

new year's large you you customers. slide color any for Okay. give slide? us the of Can your might Relative to One last in thing. with the backlog have what next on the list

of Well, are confidential. a very those lot

lot manufacturing they a products to still we agricultural strong, as of food don't but are, be continue interest know in data processing there of fact, a centers, lot and time, In well. even is the who

so a a and it's there it that balance of balance. any I'd any have – could sectors So Is that kind economy one I've of – any like Idaho, but be nice significant I overall. big is impact the impacted seeing isn't a the industry to particular say of forgotten?

of came heard No, when way, dreamed quickly talk those Chobani that. they liked the and to it with running. story they might I Amazon about they a really to went moving huge here the first open of of certainly, start People to was that It in add that they popping start just migrating up expansion and is faster people And And around Idaho, process talked quickly. terms stories ideas end same is a us that able story were thinking were it. and are the I think process. it think it's ever to that this, up facility going help out how and there's kind – like to in you I was They are though, than finish, along.

think that I So contributes…

Yes.

business on the I still to Certainly lot affordable housing, significantly, a have side, that to while of And on risen look the prices we in. are coming very side. the looking the places think residential

it's bargain. side, that on So a

appreciate thanks of Okay, it. details. I the

you. Thank

Your next of the Brian from Russo question comes from line Sidoti.

Your line is open.

Brian. Hi,

just good on the Hi, guidance Hey, following afternoon. up question.

midpoint high range. And of the in $X.XX, guidance guidance $X.XX. of was which a the above was actual October, think I end updated You tightened reported which you the

you from drivers not XXXX, initial possible, guidance So that's that are range? what And to in were captured in happened today? again, exceed your those of able end the the

it possibility No, Brian. but do on hold I question, expenses. able a think for that's there's of we I lot to the a think to were better, be some line really good

We As you won't different targets, we certainly And while start my did probably in that the little expenses best less. we're that not costs pressure. could. captured expenses that way we saw, won't make the that had to revenues the not. we gone revenues and maybe did and as than come? as are words some a sure allow a variables pandemic maybe kick travel, our first at put normal Those stay Do things resume our to And of to sure you We're today we We'll versus in just hard all have way. do resume O&M pressure enough Maybe how setting whole we've and is the that very low came typically also a operations briefly kind of and in earlier aim out then do quickly year. in I growth that that last a early we the follow we're year. cautious at all alluded And maybe year. will I'm feeling just be again. expenses of timing up And not the later. I The really good. rise just – that of in

Our what's we'll Brian. have it upper be – higher. to going And what That's than or midpoint we we're to at hit end just to was. higher do. see, our We're is as acknowledging what aiming always trying

this year. overstate than It's more showing that normal nature our wanting a it's think uncertainty. a I in year much more there's certainly than not to of up

Got O&M up just follow to the then expense line. on it. And

wildfire filing. your a embedded and costs You operating any deferral there cost, XXXX assumption? wildfire in cost mentioned capital guidance Are O&M

I mean, different. the are amounts normal there. substantially Not

Yes.

step-up But this O&M in this side year. a not big for

was opening on Okay. And entire All you XXXX. especially up forecast XXXX? NextEra. to percent is growth year-over-year? was basically forecasting pandemic right. customer months And there then to two you that business XX X.X%, of accelerate, customer follow up new growth like Amazon, six-plus of trailing mentioned big growth that And X.X% a facilities GDP's the in during possibility of Moody's Are the given and quickly for

Yes.

more starting a of bit little ending sort more look. robust is year with the for a and a modest look Our

of kind it the through year. transitions go as we So

So from year to time by the would maybe normal continual expecting that's perspective, we I to the the closer through we the improvements close – get but back what XXX% as out. be be guess, and COVID year not normal and we a

their categories that those for of two issues. have and As commercial because it we're of how all got is, here not translates maybe industrial, different just course, quickly the sure is that that reasons them

not how a coming is the boost So a factored into quickly it's back probably is still in, of caution swing of is to But from we of a other overly we've little the of side bold come in direction. the had people Residential people. everybody up. it all That little on upside. you lot could being so a as equation I residential of question different be and that there of growth a time. typically say, terms they way home bit going the got than number being But of a that in think face

fall is – Okay, a on growth in great. the And the anyway part mentioned then what there of back usage XXXX levels, should I COVID-XX impact – to you quantify of what was the pre-COVID pre isolate is guidance XXXX? – could or should should customer say, you

show we And lack construct get up, lagged industrial, think to decide them shown and saw months and growth and new and little inventory housing side the usage a the starts residential The they where everything. few and terms of in commercial had I it it and a it's and question. but particularly as – a impact, in you that, takes really up all in was no of –

irrigation some So that other would weather. I – so... people think homes much little it uptick in instance, have a have irrigation the an the super more normal, irrigation, It was to where year very And was just blend with that didn't irrigate a banner spring more power. wet it's and of necessarily that year, that But much online categories, started say. stay residential to normal we it the not did of to wasn't it's improvement is a allowed we and pretty was I a define them for came – more see using new home a that the harder

the already add settling that, were prior already to farmers, in, pandemic on the costs and the Yes, committed to to they're so in so... to

Thanks for Lisa. that,

then year, continued the did income so when recovered record really prices net fun support. And they the and is They though fact, very agricultural had well in flattened early that was a don't on, and even a federal even surprisingly good. this you they consider Idaho

a really So year. it turned interesting be out to

Okay. XXXX balance seems XXXX $X.XX after said a on of it and period are of next incremental for year-end of below $XXX CapEx, two in going CapEx over of the and And maybe can this without to you sheet it It the CapEx, debt-to-cap. you million no XXXX think because know longer-term million looks be your how sheet a the balance increasing that XX% CapEx just with years about year, then, thoughts that capacity? the like cash at I last on you with question north the finance full-year correlates and you on have or but XXXX equity of average planned could $XXX to equity. million

No, you're point, good pointing a out Brian. really

there shown time, is opportunity maybe need with will an don't that's near-term we some up to to first, last quite has we higher – jumped we're think have to equity I that and our debt success amount know we for I go year. ahead going the CapEx that and

up a some – more. put just grabbed lift approach little had we – a looking we could opportunities Our to what happened some we in planned a get that capital were that has actually – that financing issued, and extra then game good the had going of a XXXX. be that we We we such we us showed little in XXXX. at refinance rates crunch really we got just like we wanted just upsized it into we capital XXXX another and little. into Really didn't But pandemic, ahead sure coming the with

good rid – of get them we rates on at overburden it's cost well. much of higher and we were expense able to of layer instruments, So good place refinance It didn't think more and to such terms couple debt didn't in us rates that it. got a I on a it as low be

year bigger year last projects set that been And those be we'll well. whether ahead So looking really this what other it's that have about up that's that's – happened – at talked those can eye have Hells debt that the as things low but as we try that cost do as well. Those to our be on, to BXH. Canyon we'll much will with or keep we'll

All right. you much. very Thank

you. Thank

Thank Brian. you,

questions. Instructions] are further no [Operator There

turn back that conference you. the the session Ms. Grow, I So to concludes for over will question-and-answer today.

the participating few for to great my over keep socially your and a I Thank hands, investor in you we evening. as few to and in all seeing you conferences. you health. great distanced, wish Have masks we your on, with keep participate IDACORP today. appreciate call weeks you look forward on next and continued Remember We of all interest many this I continued all your keep wish washing best. speaking a

everybody joining concludes you Thank call. today's for today. conference That

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