IDACORP, Inc. (NYSE:IDA) Q4 2023 Earnings Call Transcript

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Bill Appicelli: Okay. All right. And then, you’ll back off whatever you end up consuming in that range for this year, right?

Brian Buckham: Correct.

Bill Appicelli: Okay. And then, in this rate filing that you’re going to make, should we assume that you would go back and ask for additional credits?

Brian Buckham: I mean, we may. That is one thing we could do because we are installing batteries in 2024, and they will also generate ITCs. We think it’s an efficient mechanism for both our customers and our shareholders to use the ADITC mechanism for those credits. So, it’s possible that we would make a similar ask to incorporate those into the mechanism in even a limited scope case in front of the TUC.

Bill Appicelli: Okay, all right. That’s helpful. And then, just going back a little bit to the questions around the CapEx, you guys have talked about, and Brian sort of asked about this a little bit, and you talked about it regarding the data center, but the potential for additional capital is related to higher load growth. Is that more back-end loaded potentially to the extent that there are additional CapEx revisions from higher load growth, excluding the RFPs, but just strictly from the load growth? That would be sort of on the back end of this CapEx forecast, or is there a potential for some of that to be feathered in sooner? How should we think about that?

Lisa Grow: I think it’s safe to say it’s probably towards the end of the time period we’re talking about, just given how quickly you could actually build something once you’ve negotiated a contract with such a large load.

Bill Appicelli: Okay. And then, Brian, you had mentioned about when you think about the financing and what’s the right metric to look at? You mentioned the 50% to 51% equity. I mean, you — maybe you can share with us the FFO to debt number that maybe you ended the year, or you talked about the cash flow improvement. So, how should we think about under that metric if you have that handy?

Brian Buckham: So what I would tell you is we want to be more towards the 15% to 18% FFO to debt number. We ended up the year below that, and probably through this CapEx cycle, might be closer to that 13% to 15% range where we’ve been recently.

Bill Appicelli: Okay. Okay, all right. That’s helpful. All right, I’ll leave it there. Thank you very much.

Lisa Grow: Okay. Thank you.

Brian Buckham: Thanks, Bill.

Operator: Thank you. And there’s a final opportunity here. [Operator Instructions] And we’ll pause for just a few moments to see if any questions come into our queue. All right, it looks like there are no further questions. So, this does conclude the question-and-answer session for today. Ms. Grow, I will turn the conference back over to you.

Lisa Grow: Thank you. Thanks to everyone for joining us this afternoon and for your continued interest in IDACORP. I hope you all enjoy President’s Weekend and have a great evening. Thank you.

Operator: That concludes today’s conference. Thank you for your participation.

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