Buried beneath the pleasantries and reassuring tones of IDACORP's Q1 2024 earnings call lies a seismic shift, an undercurrent of change that could propel this traditionally steady utility into a period of unprecedented growth, the likes of which even seasoned analysts seem to be overlooking. The evidence? A dramatic surge in large load inquiries, not just in number but in sheer scale, pointing towards a future where IDACORP's current capital expenditure plans might be dwarfed by the infrastructure needs of a rapidly transforming energy landscape.

While the call focused on the positives—solid hydro conditions, a balanced generation portfolio, and wildfire mitigation efforts—the real story lies in the burgeoning demand emanating from a new breed of energy-hungry customers. IDACORP executives revealed a pipeline overflowing with large load inquiries, many exceeding 100 megawatts, pushing the total prospective load into the multiple gigawatt range. This isn't just a bump in demand; it's a tidal wave.

To put this into perspective, consider IDACORP's historical growth. The company has proudly touted its 16 consecutive years of earnings growth, a testament to its reliable service and consistently low rates. But this growth has been incremental, driven by organic customer additions and moderate industrial expansion. The current wave of inquiries, however, signals a fundamental shift.

"The call itself hinted at this potential, albeit subtly. While IDACORP refrained from updating its capital expenditure forecast, citing the ongoing RFP process for 2026-2027 resources, executives acknowledged a 'high potential for a considerable increase' in their five-year capital expenditure figure. 'Considerable,' they said, for a company already anticipating spending between $925 million and $975 million on capital projects in 2024 alone."

This careful language masks the potential magnitude of this shift. If even a fraction of these multi-gigawatt inquiries translate into actual customers, IDACORP's current five-year capital plan might be woefully inadequate. We're potentially talking about a doubling, or even tripling, of their projected spending.

What's driving this surge? A confluence of factors has converged to make IDACORP's service area—primarily southern Idaho and eastern Oregon—incredibly attractive to energy-intensive industries. A robust regional economy, outperforming national trends, coupled with low electricity rates and a reputation for reliability, has drawn the attention of data centers, semiconductor manufacturers, and other players in the digital economy.

IDACORP's commitment to clean energy further adds to its appeal. The company's 2023 Integrated Resource Plan outlines a bold vision: complete exit from coal-fired generation by 2030, achieved through a combination of natural gas conversions, renewable energy procurement, and battery storage deployments.

This proactive stance on clean energy aligns with the growing demands of large load customers, many of whom have sustainability targets woven into their corporate strategies. The recent approval of IDACORP's 'Clean Energy Your Way' program, allowing large customers to directly source renewable energy, underscores this commitment and is already attracting major players like Meta and Micron.

The implications of this potential demand explosion are profound. IDACORP, long perceived as a slow-and-steady utility, could find itself at the forefront of a clean energy-powered economic boom. The company's stock, a perennial favorite among dividend investors, could gain a new dimension, attracting growth-oriented investors seeking exposure to the electrifying future of the American West.

Capital Expenditure Growth and Potential Impact on Rate Base

The following chart and table are hypothetical representations based on the limited information available. They illustrate the potential impact of this demand surge on IDACORP's growth trajectory.

Of course, significant challenges accompany this opportunity. Permitting delays, supply chain constraints, and rising financing costs could all hinder IDACORP's ability to meet this burgeoning demand. The company's upcoming limited-scope rate case in Idaho, while intended to address existing capital additions and labor increases, might need to be revisited in light of this potential surge in capital needs.

If the company can navigate the challenges and capitalize on this opportunity, it could be on the cusp of a transformation that will redefine its position in the utility landscape and shake the very foundations of Wall Street's expectations.

"Fun Fact: IDACORP's name is derived from 'Idaho' and 'Corporation.' The company has been a fixture in Idaho's energy landscape since 1915, playing a pivotal role in the state's economic development."