IdaCorp Boston Consulting Group Matrix

Idaho Power is making significant strides in its clean energy transition, aiming for 100% clean energy by 2045. This ambitious goal includes a substantial 88% reduction in carbon dioxide emissions by 2030, underscoring its commitment to environmental stewardship.

The company's strategy involves robust investment in renewable resources such as wind, solar, and battery storage, as detailed in its 2025 Integrated Resource Plan (IRP). This forward-thinking approach is not only meeting regulatory and customer demands for sustainable energy but also enhancing its appeal to environmentally conscious investors and customers.

IdaCorp's hydroelectric assets are a clear Star in its BCG Matrix. These 17 low-cost hydroelectric projects consistently generate a substantial portion of the company's clean energy, often exceeding 40% of total generation in 2024 during periods of high water availability. This reliable and affordable power source provides a significant competitive advantage, contributing to stable customer pricing and reinforcing IdaCorp's operational foundation.

IDACORP's position in a mature utility market, serving over 650,000 customers across southern Idaho and eastern Oregon, highlights its stable customer base. This essential service ensures consistent demand, making the customer base predictable and reliable.

The inelastic nature of electricity demand means customers will continue to purchase power regardless of minor price fluctuations, solidifying IDACORP's revenue streams. This stability reduces the need for extensive marketing efforts, allowing for efficient resource allocation.

With a strong market share in its service areas, IDACORP benefits from predictable revenue generation. This allows the company to focus on operational efficiency rather than aggressive customer acquisition strategies.

Idaho Power, IdaCorp's primary subsidiary, functions as a quintessential Cash Cow. Its regulated utility model, characterized by a dominant market share and stable customer base across southern Idaho and eastern Oregon, generates consistent revenue. In 2023, Idaho Power's operating revenues reached $1.9 billion, a testament to its established market position and essential service provision.

The company's 17 low-cost hydroelectric projects are also significant cash cows, providing a reliable, high-margin cash flow with minimal ongoing investment. This stability is further enhanced by IDAOCORP's commitment to cost management, evidenced by electricity rates consistently below the national average. For example, in 2023, Idaho Power's residential electricity rate was approximately 15.5 cents per kilowatt-hour, compared to the U.S. average of 17.1 cents.

Some of IdaCorp's established energy efficiency programs are showing signs of maturity, meaning the benefits they offer customers are starting to level off. This can happen when a program has been around for a while and most interested customers have already participated, or when the most impactful energy-saving opportunities have been addressed.

While these programs still contribute to conservation efforts, their ability to generate significant new savings compared to their operational expenses is decreasing. For instance, in 2024, IdaCorp reported approximately $15 million in customer savings from these initiatives. This figure demonstrates ongoing value, but a closer look at the return on investment for each specific program is crucial to ensure resources are being allocated most effectively.

Dogs in IDACORP's portfolio represent assets or programs with low market share and low growth potential, often requiring significant investment without substantial returns. These are typically legacy systems or initiatives that have become outdated or inefficient. For instance, maintaining older, less efficient power generation equipment that is slated for retirement can be seen as a dog, consuming resources without contributing to future growth. In 2023, IDACORP continued to manage the operational costs of older assets while transitioning to cleaner energy sources, a process that inherently involves managing these lower-performing components.

These 'dogs' often represent a drain on resources due to ongoing maintenance, operational costs, and limited future prospects. They might include legacy IT systems or older energy efficiency programs whose impact is diminishing. For example, if IDACORP continues to invest in maintaining a proprietary, on-premise customer relationship management (CRM) system that has been largely superseded by more efficient cloud-based solutions, this CRM system would likely be classified as a dog. Such assets require careful management to minimize their negative impact on overall profitability and to free up capital for more promising ventures.

Electric Vehicle (EV) Charging Infrastructure for IdaCorp, within a BCG Matrix framework, likely falls into the question mark category. Idaho Power is investing in EV charging, with a 2024 initiative to energize new fast-charging stations and integrate EVs into its fleet, reflecting a growing market. However, the company's current market share and direct revenue from EV charging services remain modest compared to its established operations, necessitating further analysis of future potential and investment returns.

Question Marks represent IdaCorp's ventures in areas with high market growth but uncertain competitive positions. These are typically new technologies or services where significant investment is required, and the return on investment is not yet guaranteed. The company needs to invest heavily to gain market share and understand if these will become Stars or fall behind.

IdaCorp's investments in Electric Vehicle (EV) charging infrastructure and advanced grid-enhancing technologies (GETs) are prime examples of Question Marks. While the markets for both are expanding rapidly, driven by electrification trends and grid modernization needs, IdaCorp's current market share and established profitability in these specific segments are still being defined. For instance, the U.S. electric vehicle market saw sales grow by over 40% in 2023, showcasing strong market potential but also a rapidly evolving competitive landscape.