# IDACORP (IDA) Sector: Electric utility | Field | Value | |---|---| | Price | $138.30 | | Fair value (Analysts) | $144.00 | | Discount to fair value | 4% | | Fair value uncertainty (Analysts) | Low | | Economic moat (Analysts) | Narrow | | LSEG analyst rating (1 strong buy to 5 strong sell) | 1.63 | | Data as of | 2026-10-16 | | Next earnings | 2026-10-30 (estimate) | ## In short The market prices IDACORP for the new shares that fund its large building plan and for wildfire risk, and EPS within guidance with timely rate increases can close the small gap within a year. ## Themes and gap - Themes: Power and energy (power-energy), Interest rates (interest-rates), Regulation and courts (regulation-legal) - Gap type: Can close (closable) - Why: The Q3 2026 report and the 2027 guidance in February 2027 show whether EPS grows while new shares fund the building plan. ## About IDACORP is the holding company of Idaho Power, a regulated electric utility based in Boise, Idaho. Idaho Power serves more than 670,000 customers in a 24,000-square-mile area in southern Idaho and eastern Oregon. It owns 17 hydropower projects, which give it low-cost power, and it also owns gas-fired plants, shares of coal and gas plants, batteries and transmission lines. Its customer count grew about 2.3% in the 12 months to June 30, 2026, and it serves large industrial customers that each need more than 20 MW under individual contracts that regulators approve. Regulators in Idaho and Oregon set its rates, and the Federal Energy Regulatory Commission sets its transmission rates. IDACORP also has two small businesses: IDACORP Financial invests in affordable housing tax credits, and Ida-West Energy runs small hydropower plants. ## Thesis The market prices IDACORP for the cost of its large building plan and for the risk of wildfires in the West. Idaho Power plans to spend $1.3 billion to $1.5 billion on capital projects in 2026 alone, for new transmission lines, batteries and three gas plants due in 2028 to 2030. It funds part of this plan with new shares: it sold or agreed to sell $418.0 million of shares in the first half of 2026 through forward sale agreements, and it has a $600 million at-the-market program. New shares lower growth in earnings per share. Regulators must also add each project to rates, and Idaho Power earns less until they do. In the West, utilities face large claims when their equipment starts a wildfire. For the gap to close, three things must be true. EPS must reach the 2026 guidance of $6.30 to $6.45 with less than $15 million of extra tax credits. Large contract customers and customer growth must keep raising revenue. Idaho Power must get timely rate increases for its new projects in its next general rate cases in Idaho and Oregon. The Q3 2026 report, expected about October 30, 2026, and the 2027 guidance in February 2027 are the next tests. The gap is small and can close over the next two to four quarters if results stay on plan. The main reason it may not close is a large wildfire or a rate case decision that lowers allowed returns. ## Checkpoints - Oct 30, 2026 (estimate): Q3 2026 earnings: guidance and tax credit use. Status: Pending. Watch: 2026 EPS guidance of $6.30 to $6.45 kept or raised with less than $15 million of extra tax credits passes; a guidance cut or more tax credit use fails. - Feb 2027 (estimate): 2026 results and the 2027 guidance. Status: Pending. Watch: 2027 EPS guidance above the 2026 result, with a clear plan for the next rate cases, passes; flat EPS guidance because of new shares fails. ## Balance sheet - Cash: $84M - Debt: $3.8B - Net debt: $3.7B - Debt due within 12 months: $116M IDACORP funds Idaho Power's building plan with long-term debt, new shares and cash from operations. Debt is long-term debt of $3,678 million and current maturities of $116 million at June 30, 2026. Idaho Power issued $350 million of long-term debt in the first half of 2026. Cash and cash equivalents were $84 million. Under the credit facilities of IDACORP and Idaho Power, debt must stay at no more than 65% of total capitalization, and the ratios were 53% and 52%. In the first half of 2026, IDACORP received $129 million from new shares, and it had forward sale agreements outstanding for later settlement, the first on March 31, 2027. Total equity was $3.8 billion against $10.9 billion of total assets. Dividends on common stock were $98 million in the first half of 2026. Idaho Power expects capital expenditures of $1.3 billion to $1.5 billion in 2026, excluding AFUDC. As of 2026-06-30. Sources: - https://www.sec.gov/Archives/edgar/data/1057877/000105787726000129/ida-20260630.htm - https://www.sec.gov/Archives/edgar/data/1057877/000105787726000130/exhibit991-july302026.htm - https://www.sec.gov/Archives/edgar/data/1057877/000119312526227188/d131497d8k.htm ## Recent events - 2026-07-30: IDACORP reported Q2 2026 results. EPS rose to $1.79 from $1.76 a year earlier, because of higher Idaho base rates from January 1, 2026, customer growth and higher revenue from large contract customers. Idaho Power recorded no extra tax credits in the quarter. IDACORP raised the low end of its 2026 EPS guidance to $6.30 to $6.45. Idaho Power added 250 MW of batteries in June 2026, and a new large contract customer started on June 1, 2026. - 2026-05-15: IDACORP started a new at-the-market program to sell up to $600 million of common shares, including through forward sale agreements. At June 30, 2026, $337.4 million of capacity was left. - 2026-04-30: IDACORP reported Q1 2026 results. EPS was $1.21. - 2026-01-01: New Idaho base rates took effect under the settlement of Idaho Power's 2025 general rate case, which the Idaho Public Utilities Commission approved in December 2025. ## Risks - Medium: Idaho Power's service area includes forests and rangeland. If its equipment starts a wildfire, it can face large claims. It has a wildfire mitigation plan and recovers part of its costs in rates. - Medium: The building plan needs new debt and new shares. IDACORP sold $418.0 million of shares through forward sale agreements in the first half of 2026. More shares or higher interest rates can lower EPS growth. - Medium: Idaho Power must ask regulators to add new projects to rates. Delays or lower allowed returns in its next rate cases can lower earnings. - Low: Hydropower output depends on snow and water. A dry year lowers low-cost hydropower and raises power costs, although power cost adjustment mechanisms recover most of the difference. ## Links - Page: https://picks.kamadorueda.com/company/IDA/ - History of changes: https://picks.kamadorueda.com/company/IDA/history/ - JSON with full history: https://picks.kamadorueda.com/data/company/IDA.json > Picks is a personal record of stock picks. It gives information only, not financial, investment, tax or legal advice. Prices, fair values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.