SUSTAINABILITYREPORT

2016

2016 was a tremendous year of celebration for Idaho Power.

On August 1, we rang the Closing Bell® at the New York Stock

Exchange (NYSE) to commemorate our 100th year of service in

southern Idaho and eastern Oregon. Generations of Idaho Power

employees came together to look back at our accomplishments

and forward to the next 100 years of fair-priced, reliable

electrical service.

Hydroelectric projects along the Snake River and its tributaries

remain the core of our diverse generation portfolio. We are

buying more energy from renewable-energy projects than ever

before. In 2016 alone, 170 megawatts (MW) of capacity from

solar projects came on-line, contributing to a current total of

more than 1,000 MW from 47 independent solar and wind

projects. This trend, along with increased use of cleaner-burning

natural gas, has helped carbon dioxide (CO2) emissions from our

company-owned generating resources continue to fall. The CO2

emissions from our company-owned generating resources during

2016 were approximately 12.6 percent lower than they were in

2015, and we beat our CO2 emissions intensity reduction goal,

ending the year with 28 percent total reduction.

I. Welcome Letter 1

II. About Us 3

III. Resource Portfolio 4

IV. Sustainability Platform 4

V. 2016 Focus Areas/Progress 5

VI. Bayha Island 11

VII. Employee Innovation 13

VIII. Metrics — Charting Performance 15

IX. Recognition 17

X. 2017 Focus Areas 19

XI. References 22

In October 2016, to further our commitment to our customers and as part of our glide

path away from coal, Idaho Power fi led to accelerate the depreciation of our interest in

the North Valmy Power Plant. In assessing resources in our portfolio, we’ve concluded

that Valmy may not benefi t customers electrically or economically if it continues to

operate beyond 2025. The fi ling requests an adjustment to customer pricing to refl ect

an accelerated depreciable life for the plant.

IDACORP again saw improvement in our ranking in the Public Utilities Fortnightly 2016

Top 20 Financial Performers, tying for fi fth place. To identify the Top 20, utilities are

ranked on six fi nancial metrics. IDACORP was also the recipient of the prestigious Edison

Electric Institute (EEI) Index Award at the 51st EEI Financial Conference.

Our Snake River Stewardship Program takes an innovative approach to preserving

and improving the Snake River’s ability to provide clean water and clean power to our

region for future generations. In 2016, the Bayha Island Research Project expanded

wetlands around a tiny island, increasing habitat for plants and wildlife while

deepening and strengthening a portion of our most vital resource.

Our employees are at the center of Idaho Power’s innovative service, environmental

stewardship and community involvement. In recognition of our employees’ long-

standing dedication to the communities we serve, St. Luke’s Health System and Saint

Alphonsus Health System, the two largest health care providers in our service area,

have presented Idaho Power with distinguished community service awards. This report

highlights our employees’ outstanding efforts to better serve customers, improve our

business and care for the environment. We are proud of our employees’ commitment to

our industry and our communities.

This year’s Sustainability Report details how our investments, commitment to

sustainability and innovative workforce drive Idaho Power’s positioning for the future.

We’re preparing for the next 100 years of service, and we can’t wait to show you how.

Signed,

Darrel Anderson, IDACORP and Idaho Power President and CEO

Robert A. Tinstman, IDACORP and Idaho Power Board of Directors Chairperson

Signed,

22

Robert A. Tinstman

We’re preparing for the next 100 years of service, and we can’t wait to show you how.

Darrel Anderson, IDACORP and Idaho Power

Robert A. Tinstman, IDACORP and Idaho Power

Darre

l And

erso

n

IDACORP, Inc. is a holding company incorporated in 1998. Its principal operating subsidiary is Idaho Power Company, referred to in this report as Idaho Power. Idaho Power marked 100 years of service in 2016.

Idaho Power is engaged in the generation, transmission, distribution, sale and purchase of electric energy and energy services. With 17 low-cost hydroelectric projects at the core of its generation portfolio, Idaho Power is among the nation’s few investor-owned utilities with a signifi cant hydroelectric generating base.

IDACORP’s other subsidiaries include IDACORP Financial Services, Inc. (IFS), an investor in affordable housing, historic buildings and other real estate investments, and Ida-West Energy Company (Ida-West), an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

Given that Idaho Power contributes the majority of IDACORP’s net income, this report will focus on Idaho Power’s activity, performance and results. However, the philosophical approach to business, corporate responsibility and stewardship is consistent across all IDACORP subsidiaries.

ABOUTUS

20,638

69,465

444,431

3

2016

Residential

Commercial/Industrial

Irrigation

At Idaho Power, we work hard every day to deliver reliable, fair-priced energy to our customers. We work day and night, through sun and snow, in a region as diverse as our customer base — 24,000 square miles, 27,000 miles of distribution line and 535,000 customers. Through desert and mountains, country and city. We do it safely and proudly, today and tomorrow.

DIVERSITYURBAN/RURAL

MOUNTAIN/DESERT

4

*Idaho Power sells the Renewable Energy Certifi cates (REC) it receives in association with this energy, with proceeds benefi ting retail customers. Because Idaho Power does not own the RECs for the other qualifi ed renewable resources included in our Resource Portfolio Fuel Mix, Idaho Power cannot and does not represent that electricity produced by this fuel mix is being delivered to its retail customers.

VISIONTo be regarded as an exceptional, independent, integrated electric utility

VALUESIntegrity, safety and respect

MISSIONProsper by providing reliable, responsible, fair-priced energy services, today and tomorrow

OUR RESOURCEPORTFOLIO

Hydroelectric38.7%

PurchasedPower26.5%

Natural Gas& Diesel10.4%

Coal 24.4%

ENERGY DELIVERED TO CUSTOMERS

With hydroelectric projects at the core of our generation portfolio, water is a key component in Idaho Power’s fuel mix. Year-to-year variability in snow pack and the resulting Snake River fl ows can signifi cantly affect Idaho Power’s fuel mix; therefore, the makeup of our resource portfolio may change from year-to-year.

For an overview of energy delivered to customers in 2016 and our resource portfolio fuel mix for 2016, visit idahopower.com/aboutus/energysources.

Hydroelectric38.69%

Other 0.41%

Solar 0.24%Biomass 0.87%

Wind 11.62%

Hydro 2.84%

Geothermal 1.52%

OtherPurchases

9.00%

Natural Gas10.39%

Coal 24.42%

Long

-Term

Pur

chas

es*

RESOURCE PORTFOLIO MIX

20162016

88thPERCENTILE

TSRYEARS

THREE

RUNNING

REDUCE

22%

Consistent with existing corporate objectives on Total Shareholder Return (TSR), provide shareholders with a TSR that outperforms IDACORP’s peer group.

TSR measures the performance of a company’s stock and shares over time by combining share price appreciation and dividends paid to the shareholder expressed as an annualized percentage. Our corporate objectives target a 55th percentile or better TSR over a three-year period compared to our peer group. For the three-year period beginning Jan. 1, 2014, through Dec. 31, 2016, IDACORP’s annualized TSR ranking (relative to its peer group) was in the 88th percentile.

Reduce CO2 emissions intensity for the 2010−2017 time period to 15−20 percent below 2005 CO2 emissions intensity.

The company set and achieved a CO2 emissions intensity reduction goal and has since voluntarily extended that goal’s time line twice and expanded the goal to achieve emissions intensity of 15 to 20 percent below 2005 levels for the 2010–2017 period. As of Dec. 31, 2016, the CO2 emissions intensity is 22 percent below the 2005 level.

Consistent with the 2015 Integrated Resource Plan (IRP), continue working with NV Energy to develop alignment on potential retirement dates for the North Valmy coal-fi red plant that support the preferred portfolio, which includes retirement of North Valmy and completion of the Boardman to Hemingway Transmission Line Project (B2H) by year-end 2025.

Our current IRP includes several portfolios exploring the impacts of retiring North Valmy. While we were successful in reaching suffi cient alignment with NV Energy to explore potential retirement dates in the IRP, we still have work to do to fully align on a specifi c retirement date. The preferred portfolio retires North Valmy at year-end 2025.

for the three-year period and the two-year period ending December 31, 2016

5

ON TRACK AND ONGOING

ON TRACK AND ONGOING

ON TRACK AND ONGOING

Balanced and Responsible Management

YEAR-END PROGRESS REPORT

BALANCED AND RESPONSIBLE MANAGEMENT

OPERATIONAL EXCELLENCE

ENVIRONMENTAL STEWARDSHIP

ENGAGED, EMPOWERED WORKFORCE

STRONG COMMUNITY PARTNERSHIPS

SUSTAINABILITYFOCUS AREAS

2016

Remain true to our mission and continue to prosper by providing reliable, responsible, fair-priced energy services, today and tomorrow.

Our rate for commercial customers ($/kilowatt-hour [kWh]) is 7.50 cents versus the national average of 10.61 cents. Our rate for industrial customers ($/kWh) is 5.60 cents versus the national average of 6.80 cents.

Consistent with our existing corporate objective of providing exemplary customer service, continue efforts to improve customer satisfaction rankings

Our Customer Relationship Index (CRI), based on Burke customer survey results for the 2016 fourth quarter rolling 12-month CRI, was 84.55 percent. The fourth-quarter Burke survey results show the highest 12-month CRI the company has ever received. The target goal for 2017 is 82.50 percent.

Communicate the sustainability benefi ts of B2H, including integrating renewable energy generation and deferring the need for development of additional fossil-fueled resources.

Idaho Power continues to work with local communities, permitting agencies and other stakeholders on separate federal and state permitting processes. As an example, new route alternatives were developed for analysis by Oregon’s B2H Advisory Committee, based on community input from Union County.

In our ongoing business optimization efforts, demonstrate effective programs and initiatives that yield tangible, sustainable results.

An air inlet heating apparatus, designed and installed by Idaho Power employees in 2015 at our Langley Gulch combined-cycle gas turbine plant, has proven to enhance energy effi ciency and optimize operations. The company is beginning to promote the efforts of these employees as a demonstration of employee motivation and problem solving.

In December 2016, a rooftop solar array (50 kilowatts [kW]) was installed on the new Twin Falls Operations Center to offset power used in the building.

6

FOCUS AREAS

ON TRACK AND ONGOING

ON TRACK AND ONGOING

ON TRACK AND ONGOING

ON TRACK AND ONGOING

2016

Operational Excellence

10.61¢NATIONAL AVG.

7.50¢IDAHO CUSTOMERS

COMMERCIAL RATES

CRI

84.55ROOFTOP

50kW

Treating a 10-foot area around our power poles running through desert and wildland habitat helps protect our electric system during Idaho and Oregon’s exhaustive fi re season.

As we address relevant river- and watershed-related environmental issues, advocate for implementing cost-effective, sustainable solutions (such as the Bayha Island Research Project) to preserve the long-term health of the Snake River and eastern Snake River Plain Aquifer.

Idaho Power is proposing instream restoration actions, riparian restoration along key tributaries and best management practices to reduce agricultural runoff of sediment and nutrients. Instream restoration includes improving river conditions between Swan Falls Dam and Marsing, Idaho, by deepening and narrowing the river channel in selected areas with the goals of reducing the solar radiation surface area, improving habitat for aquatic species, increasing fl ow velocities, reducing fi ne sediment deposition in the river and decreasing aquatic macrophyte growth.

In the Grandview area, we have entered into cost-sharing agreements with farmers and the Natural Resources Conservation Service to convert fl ood irrigation systems to sprinklers to reduce the amount of agricultural runoff from reaching the Snake River.

Work to sustain current Snake River fl ows while pursuing cost-effective opportunities to increase fl ows and maximize hydroelectric generation.

We continue to work with the State of Idaho to maintain Swan Falls Dam minimum fl ows.

Idaho Power is collaborating with the State of Idaho and regional water users on a cloud seeding program to help increase snowpack, resulting in additional stream fl ow runoff and hydro generation.

Enhance employee awareness and support for conserving resources and promoting effi ciency in company facilities and processes.

Company initiatives promoting sustainability were the focus of News Scans articles and other Corporate Communications messaging.

Presentations on the company’s sustainability efforts were given at corporate headquarters and operations centers.

FOCUS AREAS

ON TRACK AND ONGOING

ON TRACK AND ONGOING

ON TRACK AND ONGOING

Environmental Stewardship

2016

INTERSTATE

7

++

++----55

LOCATIONS

REDUCEW A T E RT E M P

Support sustainable transportation alternatives by committing 5 percent of our annual fl eet budget to purchasing electric vehicles (EV), and by designing and implementing an EV adoption strategy in our service area.

Idaho Power launched an EV charging station incentive program in 2016. The incentive offered up to 50 percent of the project costs (equipment and installation), not to exceed $7,500 per site or $15,000 per parent company.

Idaho Power initiated a Transportation Electrifi cation initiative to identify locations and promote installation of EV fast-charging stations along the interstate and major state highways in our service area.

ON TRACK AND ONGOING

ON TRACK AND ONGOING

8

Investigate and pilot opportunities to partner with government agencies and potentially improve and share facilities in mutually benefi cial locations.

Idaho Power made progress through discussions with the United States Forest Service (USFS) to establish a mutual presence at the Pittsburg Landing site along the Snake River benefi tting Idaho Power, USFS and the public. The company and USFS developed a plan and timeline for environmental review, design and construction of a housing facility. Early phases of the plan are being implemented.

9

Engaged, Empowered WorkforceConsistent with our critical success factors and existing corporate objectives, enhance our efforts to maintain an effective and motivated workforce.

From January to June of 2016, executives conducted employee meetings to discuss current strategic initiatives and respond to employees’ questions or concerns about company activities.

The company administered an employee engagement survey in September 2016. The results of the survey were shared with leaders and employees from November to December 2016.

Following a successful launch of the Idaho Power Employee Volunteer site, active user accounts grew from 220 to 386 (a nearly 75-percent increase), with employee volunteers logging approximately 1,700 hours of total volunteer time during 2016. These efforts contributed to community development, environmental improvements and health and safety awareness.

The inaugural Employee Volunteer Fair was a success, with 32 non-profi t organizations participating and more than 200 employees and company retirees attending the event.

Continually strive to improve our culture and core value of safety by integrating four vital behaviors throughout our organization: Focus, Assess, Make the Safe Choice and Speak Up. Additionally, continue our work to further reduce the frequency and severity of workplace injuries and outperform industry averages.

Vital behaviors in safety policy and core processes, such as job briefi ng/injury prevention plans, near miss and incident review processes, have been embedded accordingly.

The injury severity rate has been reduced 50 percent compared to last year.

While the industry 15-year average OSHA recordable injury rate is 3.5, Idaho Power fi nished the year with a 2.3 rate. Our 15-year average is 2.8.

2016FOCUS AREAS

ON TRACK AND ONGOING

ON TRACK AND ONGOING

1,700volunteer hours

50%decrease

75%increasev

olu

nte

er

Leverage all available media channels to strengthen community relationships and promote company initiatives and endeavors.

Idaho Power promoted our centennial celebration and strong connections to the community and Idaho’s history through videos, a traveling exhibit, an online exhibit and social media posts.

Sponsoring cell phone charging stations at Boise Towne Square and Pine Ridge Mall encouraged customers to sign up for myAccount to pay their bill and manage their energy use.

Support the economic development efforts underway in our service area by continuing to develop and sponsor innovative programs like Idaho Power’s Site Readiness Evaluation Program.

Continuing to build on the success of the 2013 through 2015 programs, Idaho Power continued to offer economic development grant programs in 2016. The 2016 program resulted in 18 marketing and 14 organizational and professional development grants awarded to 22 qualifi ed organizations.

We continue to work with our regional economic development professionals as they work to market sites involved in Idaho Power’s Site Readiness Evaluation Program.

Engage and inform the public in general safety-related issues pertinent to our communities and our region.

We wrapped up our three-year safe-driving campaign/partnership with KTVB News Channel 7 to encourage drivers to put their phones down and Just Drive. We updated our Just Drive webpage to include general, year-round information and frequently used social media to talk about water safety, overhead line safety and hot temperatures.

Idaho Power aired safety radio messages: downed power lines (fi rst quarter), overhead line safety (second quarter) and water safety (third quarter). In the fourth quarter, we tried something new to promote winter preparedness. Rather than radio, we ran digital ads on the Weatherbug app. In addition to the radio ads, we ran print ads in the spring in agricultural publications to promote overhead line safety in the farming community.

10

2016FOCUS AREAS

ON TRACK AND ONGOING

ON TRACK AND ONGOING

COMPLETE

Strong Community Partnerships

3years

32GRANTSAWARDED

11To learn more about the Bayha Island Research Project and the Snake River Stewardship Program, visit IdahoPower.com/River.

STRENGTHENING THE SNAKE:BAYHA ISLAND RESEARCH PROJECT

10+ acresADDED

It takes a lot of time and hard work to reshape a river. In 2016, Idaho Power took on that challenge, starting with a big project on a small island in the Snake River.

Working with the Freshwater Trust, River Design Group, the U.S. Fish and Wildlife Service and a cooperative private landowner, Idaho Power transformed a tiny, remote Snake River island into an ambitious experiment aimed at improving Snake River water quality.

Improving water quality is a primary goal of Idaho Power’s Snake River Stewardship Program. The Snake River Stewardship Program addresses water quality concerns downstream of Hells Canyon as part of Idaho Power’s application for a new federal license to operate its three hydroelectric dams in Hells Canyon.

In this section of the Snake River, warm water, silted gravel on the riverbed and heavy aquatic weed growth reduce water quality and aquatic habitat. To improve river conditions, Idaho Power designed a project that would use locally-sourced gravel material to narrow and deepen the river channel to reduce warming from the hot summer sun. A narrower, deeper river will facilitate increased water velocity and reduced solar heating. This will allow more scouring fl ows, cooler water and less aquatic growth. These improved conditions will provide a healthier river system for fi sh, plants and local fauna.

To create the improved conditions, silted gravel was dredged from the riverbed, and clean gravel was imported from an adjacent landowner’s property and placed on the newly formed channel. This was completed around the perimeter of Bayha and nearby Wright Island, both part of the Snake River Islands Unit of the Deer Flat National Wildlife Refuge.

“We added about 50,000 to 60,000 cubic yards of material, or approximately 10 acres, to the islands,” said Senior Biologist Stacey Baczkowski. “The new acreage is below the ordinary high-water mark, so we planted the area with native species.”

Willows, cottonwoods, golden currant, dogwood, wild rose, sedges, cattails and other plants were planted as soon as the excavators and dump trucks moved out. The new vegetation also provides wildlife habitat and improves aquatic habitat. This, and additional in-river projects planned for the coming years, could make a big difference.

There’s more to the Snake River Stewardship Program than this island project. Idaho Power is evaluating potential sites for similar inset fl oodplains around islands or along the riverbanks, restoration of native trees and shrubs along tributaries of the Snake River to reduce heating and working with landowners to convert from fl ood irrigation to sprinkler systems, which will reduce the amount of nutrients entering the river.

12

Newly-formed channel Native tree and shrub restoration

EMPLOYEE INNOVATION:LANGLEY GULCH AIR

INLET HEATING SYSTEM

The cold Idaho winters can wreak havoc on power production equipment, even the Langley Gulch Natural Gas Plant turbines that operate at high temperatures. Each winter since the plant opened in 2012, Langley Gulch employees watched ice build up on inlet air housing screens, which sometimes prevented the plant from running at full capacity.

The power produced by Langley Gulch is most needed during the cold winter months, so the plant operators knew they needed to fi nd a way to keep the plant running smoothly.

“Our employees tried different approaches to removing the ice, but unfortunately there wasn’t an easy way to remove it,” said Plant Manager Russell Stamps. “A lot of the time, additional people had to be on staff to be ready to remove the ice.”

“The plant’s motivation for a solution was also from a safety concern,” said Senior Engineer Jeremy Jensen. “I don’t think anyone was volunteering to remove the ice buildup from the inlet in the middle of the night.”

After a few winters of removing the ice, employees started considering options that might prevent ice from forming in the fi rst place. When they determined that no commercially-ready solution was available, the team devised a system to recycle a portion of the combustion turbine’s waste heat and route it back into the inlet air housing.

A team of mechanics, plant operators and engineers worked together to design and build a heat transfer system that moved hot air from the rotor air cooler to a distribution network that blows hot air across the housing screens, preventing ice buildup.

After a few months of engineering and construction, the team fi nally got to see their innovative system installed in fall 2015, just in time for the 2015 and 2016 winter season, which became the fi rst winter since Langley Gulch opened that the plant could operate all winter without ice accumulation.

“It’s very satisfying to see this solution work. Especially when you consider that we had enough technical knowledge inside the company to create it and build it,” Stamps said.

The team’s solution is so successful that Idaho Power plans to install similar systems at our Bennett Mountain and Danskin Natural Gas Plants. Idaho Power is proud to have such a talented team of mechanics, technicians, engineers and plant operators who take their big ideas and turn them into solutions.

13

LANGLEY GULCH

EMPLOYEE INNOVATION:TECHNOLOGICAL ADVANCEMENTS

IN STREAM GAGING

Caring for Idaho’s river systems is at the core of Idaho Power’s environmental stewardship. Along with helping to keep our rivers clean, our fi sh healthy and our recreationists happy, we also measure, collect and prepare stream gaging data to help public and governmental agencies, and us, manage water resources.

Stream gaging technology has improved in recent years, helping water resource managers move from manual, and sometimes clunky, data collection to more fl exible, automated processes. In 2016, the Idaho Power Streamfl ow Gaging Group made a strategic technological investment for improved safety of their staff and enhancement of their data collection capabilities—the Ocean Science Z-Boat.

The Z-Boat is a small, remote-controlled watercraft with advanced technological capabilities, including a communication and positioning system and the ability to use multiple instruments at once. It can measure stream fl ows, profi le river velocity and conduct shallow water bathymetric (sonar) surveys.

“Acquiring the ‘Z-Boat’ has allowed us to minimize risks and utilize 21st century technology to collect more accurate, and more extensive, data,” said Engineering Leader Pete Vidmar.

Z-Boat technology allows for more effi cient and complete data collection, including the ability to collect multiple data sets at once, like surveying for river velocity and depth at the same time.

But the Z-Boat’s best feature is keeping our employees safe. Rather than using a manned boat, the Z-Boat can be operated with our staff safely on shore.

“Having one piece of easily transportable equipment that can do multiple tasks at once, and to a fuller extent, saves our group time and money,” Vidmar added.

Teams can now use the Z-Boat for streamfl ow measurements when water and air temperatures are below freezing, when water is too fast for manned kayaks or too low for jet boats and when continuous measurements are needed over an extended period of time.

Enhancing our technological skills to improve safety while saving time and money demonstrates how Idaho Power employees are encouraged and empowered to improve and sustain our business.

14

SNAKE RIVER

CHARTING PERFORMANCE

15

The following metrics demonstrate Idaho Power’s performance and commitment to transparency. All four charts demonstrate our commitment to providing reliable, responsible fair-priced energy services while continually reducing our carbon footprint.

While we still rely on coal to reliably meet our region’s demand for electricity, we are continuing to supplement our mainstay hydro generation with a larger percentage of wind, solar, geothermal and other renewable resources.

Idaho Power-enabled Renewable Energy

400

100

2006 2008 2010 2012 2014 2016

200

Coal-fi red Generation2005 LEVEL

Coal-fi red generation continues to decline as a percentage of our generation. Continued integration of purchased power, including energy from renewable projects under PURPA, increased use of cleaner-burning natural gas, along with continued reliance on our hydro (the original renewable) generation, has contributed to the 44% reduction since 2005.

2016METRICS

Idaho Power’s CO2 emissions intensity (measured in pounds of CO2 per MW hour (MWh) of generation) continues to show a signifi cant downward trend overall. For 2010–2017, our goal is to reduce our company-owned resource portfolio average CO2 emissions intensity to 15–20 percent below 2005 levels. We are exceeding that goal for the 2010–2016 period, by an average of 22 percent reduction under 2005 levels.

CO2 Emissions Intensity

1,300

1,100

900

700

2016

CO2 I

nten

sity

- lb/

MW

h

2005 LEVEL

16

Idaho Power-enabled Cumulative Energy Savings

2006

25

0

125

50

150

75

175

100

200

2008 2010 2012 2014 2016

Since 2002, the cumulative annual savings of our energy-effi ciency programs (including estimated losses) has grown to over 200 average megawatts (aMW), with more than 100 aMW added between 2010 and 2016.

S VA E

aMW

2014

2012

20102008

2006

REDUCTION28%%28REDUCTION2010

2012

Fortnightly 40In 2016, IDACORP again saw improvement in our ranking in the Public Utilities Fortnightly Top 20 Financial Performers, to a tie for fi fth place. To identify the top 20, utilities are ranked on six fi nancial metrics. For the fi fth year in a row, IDACORP’s rank has continued to improve in the assessment of best energy companies, as announced in the magazine’s October issue.

Edison Electric Institute Index The company was also the recipient of the prestigious EEI Index Award in November at the 51st EEI Financial Conference. IDACORP was the top ranking small-cap company with a total return of 142 percent, and fi fth overall when combining our results with large-cap and mid-cap companies.

RECOGNITION

17

HELLS CANYON

NYSE Closing Bell®

On Aug. 1, 2016, Idaho Power employees gathered at corporate headquarters and regional offi ce locations to watch President and CEO Darrel Anderson ring the NYSE Closing Bell® in honor of IDACORP’s 100th anniversary. NYSE and media across the country recognized IDACORP for the centennial event, which was streamed live for those back home.

During his address, Anderson recognized the company’s strong position for the future and our incredible customers, owners and employees.

18

SUSTAINABILITYFOCUS AREAS

2017

Balanced and Responsible Management

Consistent with existing corporate objectives on TSR, provide shareholders with a TSR that outperforms IDACORP’s peer group.

Reduce CO2 emissions intensity for the 2010 to 2017 period to 15 to 20 percent below 2005 CO2 emissions intensity.

Consistent with the 2015 IRP, continue working with NV Energy to develop alignment on potential early retirement dates for the North Valmy Power Plant that support the preferred portfolio.

Develop products and programs for residential customers that help them manage usage, particularly during peak usage times, complement business development efforts and maintain low rates for all customers.

Explore the development of a climate change adaptation plan focusing on the potential impacts to company operations from climate change-related events, including more frequent wildfi res, reduced snowpack and lower streamfl ow and riverfl ow.

Operational Excellence

Remain true to our mission and continue to prosper by providing reliable, responsible, fair-priced energy services, today and tomorrow.

Consistent with our existing corporate objective, provide exemplary customer service and continue efforts to improve customer satisfaction rankings.

Communicate the sustainability benefi ts of B2H, including integrating renewable energy generation and deferring the need for development of additional fossil-fueled resources.

BALANCED AND RESPONSIBLE MANAGEMENT

OPERATIONAL EXCELLENCE

ENVIRONMENTAL STEWARDSHIP

ENGAGED, EMPOWERED WORKFORCE

STRONG COMMUNITY PARTNERSHIPS

19

Environmental Stewardship

As we address relevant river- and watershed-related environmental issues, advocate for implementing cost-effective, sustainable solutions, such as the Pine Creek Water Effi ciency Pilot Program, to preserve the long-term health of the Snake River and eastern Snake River Plain Aquifer.

Work to sustain current Snake River fl ows while pursuing cost-effective opportunities to increase fl ows and maximize hydroelectric generation.

Enhance employee awareness and support for conserving resources and promoting effi ciency in company facilities and processes.

Support sustainable transportation alternatives by committing 5 percent of our annual fl eet budget to purchasing EVs, and fund above the 5 percent based on demonstrated effi ciencies, fuel savings and potential long-term value.

Investigate and pilot opportunities to partner with government agencies and potentially improve and share facilities in mutually benefi cial locations.

Develop a feasibility study on establishing a native tree nursery on our Daly Creek property to supply trees for the Snake River Stewardship Program.

Engaged, Empowered Workforce

Continually strive to improve our culture and core value of safety by integrating four vital behaviors throughout our organization: Focus, Assess, Make the Safe Choice and Speak Up. Additionally, continue our work to further reduce the frequency and severity of workplace injuries and outperform industry averages.

Revise the current Learning Management System sustainability training to promote sustainability at work and at home.

Consistent with our critical success factors and existing corporate objectives, explore approaches targeting specifi c workforce teams (Power Supply, Information Technology, Transmission & Distribution, etc.) to identify and implement changes in design standards and technology-based solutions to enhance company operations. For example, incorporate xeriscape landscaping into our substation design criteria, and utilize moisture monitor technology to promote water conservation.

20

2017FOCUS AREAS

Strong Community Partnerships

Leverage all available media channels to strengthen community relationships and promote company initiatives and endeavors.

Support the economic development efforts underway in our service area by continuing to develop and sponsor innovative programs like Idaho Power’s Site Readiness Evaluation program.

Engage and inform the public in general safety-related issues pertinent to our communities and our region.

Remodel and upgrade the Swan Falls Museum to include interactive exhibits, enhance learning opportunities in STEM topics and highlight the work of Idaho Power’s employees in our oldest hydroelectric generation plant.

21

2017FOCUS AREAS

Dividend Payment DatesFor IDACORP, Inc. Common Stock: quarterly on or about the 28th of February, and the 30th of May, August and November.

Transfer Agents/RegistrarFor IDACORP, Inc. Common Stock Wells Fargo Shareowner Services 1110 Centre Pointe Curve, Suite 101Mendota Heights, MN 55120800-565-7890

Common Stock InformationTicker symbol: IDAListed: New York Stock Exchange 11 Wall StreetNew York, NY 10005

ContactsBroker/Analyst Contact: Justin ForsbergDirector of Investor Relations 208-388-2728 E-mail: jforsberg@idacorpinc.com

Shareowner Contact: Colette ShepardShareowner Services800-635-5406 E-mail: cshepard@idacorpinc.com

Corporate HeadquartersMailing Address: P.O. Box 70, Boise, ID 83707-0070

Street Address: 1221 W. Idaho St., Boise, IDPhone: 208-388-2200

Web sites idacorpinc.com idahopower.com

SEC Form 10-K and Annual Report The IDACORP, Inc. and Idaho Power combined Annual Report on Form 10-K for 2016 has been fi led with the Securities and Exchange Commission. The Annual Report on Form 10-K and the 2016 Annual Report to Shareholders also are available on our website at idacorpinc.com. This report contain detailed descriptions of our business and fi nancial performance.

Internal Data Assurance IDACORP does not use a third party to provide assurance for this report. Instead, we rely on internal resources to ensure the report’s content and accuracy. Our review includes an analysis of specifi c statistics and metrics included in the 2016 Sustainability Report and, where applicable, the 2016 Annual Report on Form 10-K.

Note About Forward-looking Statements in This Report This report contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical fact, including, without limitation, those that are identifi ed by the use of the words “anticipates,” “expects,”

“believes,” or similar expressions. Forward-looking statements should be read with the cautionary statements included in IDACORP’s Form 10-K for the year ended Dec. 31, 2016, including in Part 1, Item 1A – “Risk Factors” in that report, and in other reports fi led by IDACORP and Idaho Power Company with the Securities and Exchange Commission.

Printed on recycled paper. Printed with vegetable-based inks.© 2017 Idaho Power

REFERENCES

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P.O. Box 70Boise, ID 83707-0070

idacorpinc.com

SUSTAINABILITYREPORT

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