REGULATORY MATTERS:	6 Months Ended
REGULATORY MATTERS:	Jun. 30, 2024
Public Utilities, Rate Matters [Abstract]
Regulatory Matters	REGULATORY MATTERS Included below is a summary of Idaho Power's most recent general rate cases and base rate changes, as well as other recent or pending notable regulatory matters and proceedings. Idaho and Oregon Rate Cases Idaho Power's current base rates result from the IPUC and OPUC orders described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2023 Annual Report. In May 2024, Idaho Power filed a limited-issue rate case and proposed rate schedules with the IPUC (2024 Idaho Limited-Issue Rate Case). The filing requested an increase in annual Idaho jurisdictional revenue of $99.3 million, to become effective January 1, 2025. If approved as filed, this request would result in an overall increase to adjusted base revenue of 7.31 percent. The 2024 Idaho Limited-Issue Rate Case focuses on revenue requirements for approximately $730 million of incremental plant additions as of December 31, 2024, and incremental O&M labor costs. In the 2024 Idaho Limited-Issue Rate Case, Idaho Power did not request any changes to other aspects of the 2023 Settlement Stipulation approved by the IPUC for Idaho Power's 2023 Idaho general rate case. Additionally, the 2024 Idaho Limited-Issue Rate Case: •applies the overall rate of return approved in the 2023 Settlement Stipulation; •does not seek to adjust any other revenue requirement components such as non-labor O&M expense, net power supply costs, or other revenue; •does not propose changes to any other Idaho regulatory mechanisms, such as the power cost adjustment, fixed cost adjustment, or energy efficiency rider; and •continues to reflect the 2023 Settlement Stipulation amounts for categories other than incremental plant and O&M labor costs. Idaho Power is unable to predict the outcome of the 2024 Idaho Limited-Issue Rate Case. Idaho Power anticipates that new rates, if approved by the IPUC, would become effective on or after January 1, 2025. In December 2023, Idaho Power filed a general rate case with the OPUC. The filing was based on a 2024 test year and requested an overall annual rate increase of $10.7 million, or 19.28 percent. The filing requested, among other items, a 10.4 percent authorized return on equity and an approximate $188.9 million Oregon-jurisdiction retail rate base. The $188.9 million of rate base excludes rate base associated with Idaho Power's jointly-owned North Valmy coal facilities, the costs of which are recovered under a separate rate mechanism. In its application, Idaho Power proposed a capitalization structure of 49 percent long-term debt and 51 percent common stock equity. Idaho Power included an average cost of debt of 5.104 percent and an overall cost of capital of 7.807 percent. In May and June 2024, Idaho Power, the Staff of the OPUC, and certain intervening parties publicly filed three partial settlement stipulations (2024 Oregon Settlement Stipulations) with the OPUC related to Idaho Power's Oregon general rate case filing. The proposed 2024 Oregon Settlement Stipulations contain the following significant terms, among other items: •an increase of $6.7 million, or 12.14 percent, in total Oregon jurisdictional revenue; and •a 9.5 percent Oregon-jurisdiction return on year-end equity and a 7.302 percent Oregon-jurisdiction overall rate of return. The parties to the 2024 Oregon Settlement Stipulations have requested that the OPUC issue an order approving the agreed-upon rates effective October 15, 2024. The 2024 Oregon Settlement Stipulations do not preclude Idaho Power from filing another general rate case or other limited issue proceeding in Oregon at any time in the future. If the OPUC were to deny the 2024 Oregon Settlement Stipulations or materially change their terms, no party would be bound by the terms of the stipulations. As of the date of this report, the OPUC's decision in this matter is pending. Idaho ADITC Mechanism The May 2018 Idaho settlement stipulation related to tax reform (2018 Settlement Stipulation) and the 2023 Settlement Stipulation are each described in Note 3 - "Regulatory Matters" to the consolidated financial statements included in the 2023 Annual Report. The 2023 Settlement Stipulation modifies the 2018 Settlement Stipulation in part. The 2023 Settlement Stipulation includes provisions for the accelerated amortization of ADITC to help achieve a minimum 9.12 percent Idaho ROE. Based on its estimate of full-year 2024 Idaho ROE, in the three and six months ended June 30, 2024, Idaho Power recorded $7.5 million and $20.0 million, respectively, in additional ADITC amortization under the 2023 Settlement Stipulation. Accordingly, at June 30, 2024, approximately $65.1 million of additional ADITC remained available for future use. Idaho Power recorded $3.8 million and $7.5 million of additional ADITC amortization during the three and six months ended June 30, 2023, based on its then-current estimate of full-year 2023 Idaho ROE. Power Cost Adjustment Mechanisms In both its Idaho and Oregon jurisdictions, Idaho Power's power cost adjustment mechanisms address the volatility of power supply costs and provide for annual adjustments to the rates charged to its retail customers. The power cost adjustment mechanisms compare Idaho Power's actual net power supply costs (primarily fuel and purchased power less wholesale energy sales) against net power supply costs being recovered in Idaho Power's retail rates. Under the power cost adjustment mechanisms, certain differences between actual net power supply costs incurred by Idaho Power and costs being recovered in retail rates are recorded as a deferred charge or credit on the balance sheet for future recovery or refund. The power supply costs deferred primarily result from changes in contracted power purchase prices and volumes, changes in wholesale market prices and transaction volumes, fuel prices, and the levels of Idaho Power's own generation. In May 2024, the IPUC issued an order approving a $35.7 million net decrease in PCA revenues, effective for the PCA collection period from June 1, 2024, to May 31, 2025. The net decrease in PCA revenues reflects forecasted improved hydropower generation during the April 2024 to March 2025 PCA deferral period. In May 2024, the OPUC approved a settlement stipulation between Idaho Power and intervening parties for its annual power cost update (APCU) in Oregon. The APCU includes both an October update and a March forecast. The results of the October update are reflected as an update to base rates and the results of the March forecast are reflected as an update to APCU rates. The settlement resulted in an overall rate decrease of $6.9 million effective June 1, 2024. Idaho Fixed Cost Adjustment Mechanism The FCA mechanism, applicable to Idaho residential and small commercial customers, is designed to remove a portion of Idaho Power’s financial disincentive to invest in energy efficiency programs by separating (or decoupling) the recovery of fixed costs from the variable kilowatt-hour charge and linking it instead to a set amount per customer. Under Idaho Power's current rate design, Idaho Power recovers a portion of fixed costs through the variable kilowatt-hour charge, which may result in over-collection or under-collection of fixed costs. To return over-collection to customers or to collect under-collection from customers, the FCA mechanism allows Idaho Power to accrue, or defer, the difference between the authorized fixed-cost recovery amount per customer and the actual fixed costs per customer recovered by Idaho Power during the year. The IPUC has discretion to cap the annual increase in the FCA recovery at 3 percent of base revenue, with any excess deferred for collection in a subsequent year. In May 2024, the IPUC issued an order approving an $11.7 million increase in recovery from the FCA from $25.1 million to $36.8 million for the 2023 FCA deferral, with new rates effective for the period from June 1, 2024 to May 31, 2025.