Idacorp (IDA) Q4 2013 earnings summary

Executive summary

• 2013 diluted EPS was $3.64 vs. $3.46 in 2012; net income attributable to IDACORP was $182.4m vs. $173.0m, marking a sixth consecutive year of earnings growth.

• Results benefited from a full year of Langley Gulch rate increases, weather-driven sales and customer growth; Idaho-jurisdiction earnings sharing reduced 2013 operating income by $24.1m.

Financial highlights

• Operating revenue was $1,246.2m vs. $1,080.7m; operating income was $291.7m vs. $242.6m; net income attributable to IDACORP was $182.4m vs. $173.0m.

• Idaho Power net income was $176.7m vs. $168.2m; general business revenue rose $164.0m, with rate changes contributing $130.8m and higher per-customer usage contributing $27.9m.

• Reported results included an $11.6m gain on securities sales; retrospective affordable-housing accounting adoption increased 2013 EPS by $0.10 vs. the prior method.

• Income tax expense was $72.2m vs. $33.8m; tax method changes increased expense by $12.4m YoY, including a $4.6m 2013 charge for a generation-property repairs method change.

Outlook and guidance

• 2014 estimates: O&M $335m-$345m vs. $349m in 2013; capital expenditures excluding AFUDC $280m-$295m vs. $228m; hydro generation 5.0-7.0m MWh vs. 5.7m MWh.

• Planned capital expenditures total $1.47bn-$1.56bn for 2014-2018; 2013 IRP projected median annual load growth of 1.1% and peak-hour load growth of 1.4% over 20 years.

• The Boardman-to-Hemingway line is expected in service in 2020 or beyond; the utility is reviewing other resource options in light of permitting delays and potential load changes.

• At least $20m of pension contributions were planned for 2014 against a $1.4m minimum; gross pension and postretirement benefit cost was expected to total $35m in 2014.