IDACORP, Inc. (IDA) Stock Analysis

IDACORP’s principal competitive advantage lies in its regulated utility subsidiary, Idaho Power, which benefits from a constructive regulatory environment, a low-cost generation mix, and robust customer growth. Idaho Power’s rates are 25–30% below the national average, supporting both customer satisfaction and demand growth—customer count rose 2.5% year-over-year to 656,773 as of June 2025, outpacing most U.S. utilities. The company’s service territory in Idaho and eastern Oregon is experiencing above-average economic and population growth, with Moody’s projecting local GDP growth of 4.5% in 2025.

A key differentiator is Idaho Power’s heavy reliance on hydropower, which provides over 50% of nameplate capacity. This results in structurally lower operating costs and reduced carbon emissions compared to peers such as Avista or NorthWestern Energy, which have higher exposure to thermal generation. The company’s “Clean Today. Cleaner Tomorrow.” strategy targets 100% clean energy by 2045, positioning it favorably as environmental regulations tighten.

IDACORP’s regulatory relationships are strong, with recent rate cases yielding authorized returns on equity of 9.5–10.4% and timely cost recovery mechanisms. The company’s culture emphasizes reliability (99.96% uptime) and safety, earning top-tier customer satisfaction scores.

Risks include geographic concentration and exposure to hydrological variability, but the company’s diversified resource plan and proactive infrastructure investment mitigate these threats.