Idacorp combines a protected utility monopoly with unusually rapid Idaho load growth, supporting an attractive long-term compounder thesis despite near-term dilution, execution, hydrology, and rate-case risks.
Overview
Idacorp is a regulated electric utility holding company whose principal subsidiary, Idaho Power, generates more than 98% of consolidated earnings. It serves more than 1.3 million people and approximately 675,000 accounts across 24,000 square miles in southern Idaho and eastern Oregon, with revenue anchored by recurring residential, commercial, industrial, irrigation, wholesale, and wheeling sales. **The central investment case is unusually strong utility demand growth:** the 2025 IRP projects five-year retail sales CAGR of 8.3% and rate-base CAGR of 16.7% through 2030, driven by Meta data centers, Micron’s $15 billion expansion, and regional manufacturing. Idaho Power’s 36.9% hydro generation share and $0.098/kWh retail rate versus a $0.142 national average provide cost and regulatory headroom. Q2 2026 net income rose 7.1% to $102.6 million, diluted EPS reached $1.79, and full-year EPS guidance increased to $6.30–$6.45. **Valuation is demanding but supported by growth:** the stock trades near 22.0x forward P/E versus an 18.0x sector median, while expected EPS growth is 8%–9%. Near-term catalysts include industrial load ramp, the $154 million Oregon sale, B2H completion in late 2027, and the June 2027 rate case.