diff --git a/.github/workflows/lint.yml b/.github/workflows/lint.yml
index 6139af5..ccc04b1 100644
--- a/.github/workflows/lint.yml
+++ b/.github/workflows/lint.yml
@@ -19,7 +19,7 @@ jobs:
         - name: "Set up Python"
           uses: actions/setup-python@v6.2.0
           with:
-            python-version: "3.11"
+            python-version: "3.12"
             cache: "pip"
 
         - name: "Install requirements"
diff --git a/.ruff.toml b/.ruff.toml
index 84814c1..5dcb06c 100644
--- a/.ruff.toml
+++ b/.ruff.toml
@@ -1,6 +1,6 @@
 # The contents of this file is based on https://github.com/home-assistant/core/blob/dev/pyproject.toml
 
-target-version = "py310"
+target-version = "py312"
 
 lint.select = [
     "B007", # Loop control variable {name} not used within loop body
diff --git a/AGENTS.md b/AGENTS.md
new file mode 100644
index 0000000..b770647
--- /dev/null
+++ b/AGENTS.md
@@ -0,0 +1,232 @@
+# AI Agent Instructions - IEC Custom Component
+
+This document provides guidance for AI coding agents working on this Home Assistant custom integration project.
+
+## Project Overview
+
+This is a Home Assistant custom component for the Israel Electric Corporation (IEC) API. It provides sensors and binary sensors for monitoring electricity consumption, invoices, and meter readings.
+
+**Integration details:**
+- **Domain:** `iec`
+- **Title:** IEC (Israel Electric Corporation)
+- **Repository:** GuyKh/iec-custom-component
+
+**Key directories:**
+- `custom_components/iec/` - Main integration code
+- `config/` - Home Assistant configuration for local testing
+- `.github/workflows/` - CI/CD workflows
+
+## Tech Stack
+
+- **Python**: 3.12+
+- **Home Assistant**: 2025.1.4+
+- **iec-api**: 0.5.3 (Python client for IEC API)
+- **Linting**: ruff (with Home Assistant rules)
+- **Type Checking**: mypy
+
+## Code Structure
+
+```
+custom_components/iec/
+├── __init__.py          # Integration entry point (async_setup_entry, async_unload_entry)
+├── const.py             # Constants and DOMAIN definitions
+├── config_flow.py       # UI configuration flow
+├── coordinator.py       # DataUpdateCoordinator - main API logic
+├── commons.py           # Shared utilities (timezone, helpers)
+├── sensor.py            # Sensor platform
+├── binary_sensor.py     # Binary sensor platform
+├── iec_entity.py        # Base entity class
+└── services.yaml        # Service definitions
+```
+
+## Local Development
+
+**Always use the project's scripts** — do NOT craft your own `hass`, `pip`, or similar commands. The scripts handle environment setup correctly.
+
+**Setup:**
+```bash
+./scripts/setup  # Install dependencies
+```
+
+**Start Home Assistant:**
+```bash
+./scripts/develop  # Start HA development environment
+```
+
+**Debugging:**
+Enable debug logging in `config/configuration.yaml`:
+```yaml
+logger:
+  default: info
+  logs:
+    custom_components.iec: debug
+    iec_api: debug
+```
+
+**Reading logs:**
+- Terminal where `./script/develop` runs
+- `config/home-assistant.log`
+
+## Workflow
+
+### Starting New Work
+
+**When starting a new task, always ask the user first:**
+- Should I switch to `main` branch and rebase?
+- Or should I work from the current branch?
+
+Then checkout a new feature branch before beginning work. Never work directly on `main` or stale branches.
+
+### Branch Naming Convention
+- Features: `feature/description`
+- Bug fixes: `fix/description`
+- Documentation: `docs/description`
+
+## Code Style
+
+**Python:**
+- 4 spaces indentation
+- 120 character lines
+- Double quotes for strings
+- Full type hints (mypy strict)
+- Async for all I/O operations
+- Follow ruff rules from `.ruff.toml`
+
+**Validation commands:**
+```bash
+./scripts/lint        # Run ruff linter (auto-fixes where possible)
+./scripts/typecheck   # Run mypy type checker
+```
+
+## Key Patterns
+
+### Integration Setup
+- Uses `ConfigEntry` for UI-based configuration
+- Supports multiple accounts (one entry per account)
+- Registers `PLATFORMS`: `sensor` and `binary_sensor`
+
+### Coordinator Pattern
+- `IecApiCoordinator` extends `DataUpdateCoordinator`
+- Handles all API calls to IEC
+- Manages JWT tokens and authentication
+- Stores data in `hass.data[DOMAIN][entry.entry_id]`
+- Entities → Coordinator → API Client (never skip layers)
+- Raise `ConfigEntryAuthFailed` (triggers reauth) or `UpdateFailed` (retry)
+
+### Entity Pattern
+- Base `IecEntity` class in `iec_entity.py`
+- Entities inherit from `CoordinatorEntity[IecApiCoordinator]`
+- Read from `coordinator.data`, never call API directly
+- Use `EntityDescription` dataclasses for static entity metadata
+
+### Config Flow
+- Implement in `config_flow.py`
+- Support user setup, reauth
+- Always set `unique_id` for entries
+
+## Project-Specific Rules
+
+### IEC-Specific Identifiers
+- **Domain:** `iec`
+- **Class prefix:** `Iec`
+
+### API Concepts
+- **Contracts**: Electrical contracts linked to user account
+- **Meters**: Physical meters associated with contracts
+- **Invoices**: Billing information (consumption, amount, payment status)
+- **Meter Readings**: Daily/hourly consumption data from smart meters
+- **Future Consumption**: Predicted consumption based on historical data
+
+### Constants
+- All constants defined in `const.py`
+- Use `DOMAIN = "iec"` for all domain references
+- Prefix IEC-specific classes with `Iec`
+
+### Data Storage Keys (from `const.py`)
+- `JWT_DICT_NAME` = "jwt"
+- `STATIC_DICT_NAME` = "statics"
+- `ATTRIBUTES_DICT_NAME` = "entity_attributes"
+- `ESTIMATED_BILL_DICT_NAME` = "estimated_bill"
+- `INVOICE_DICT_NAME` = "invoice"
+- `CONTRACT_DICT_NAME` = "contract"
+- `DAILY_READINGS_DICT_NAME` = "daily_readings"
+- `FUTURE_CONSUMPTIONS_DICT_NAME` = "future_consumption"
+
+## Common Tasks
+
+### Adding a New Sensor
+1. Add constants to `const.py` if needed
+2. Add sensor logic in `sensor.py`
+3. Follow existing sensor patterns (base entity → specific sensor)
+4. Add full type annotations (mypy strict)
+5. Use `EntityDescription` dataclass for static metadata
+
+### Adding a New Binary Sensor
+1. Add constants to `const.py` if needed
+2. Add binary sensor logic in `binary_sensor.py`
+3. Follow existing patterns
+4. Add full type annotations
+
+### API Changes
+When iec-api updates:
+1. Update version in `requirements.txt`
+2. Run type check to find breaking changes
+3. Update types as needed in `coordinator.py`
+
+## Validation
+
+**Before committing, run:**
+```bash
+./scripts/lint        # Auto-format and fix linting issues
+./scripts/typecheck   # Type checking
+```
+
+**Configured tools:**
+- **Ruff** - Fast Python linter and formatter
+- **mypy** - Static type checker (strict mode)
+
+### Error Recovery Strategy
+
+**When first attempt validation fails:**
+1. **First attempt** - Fix the specific error reported by the tool
+2. **Second attempt** - If it fails again, reconsider your approach
+3. **Third attempt** - If still failing, stop and ask for clarification
+
+**After ~10 file reads, you must either:**
+- Proceed with implementation based on available context
+- Ask the developer specific questions about what's unclear
+
+## Testing
+
+Tests are run via GitHub Actions workflows:
+- `.github/workflows/lint.yml` - Ruff linting
+- `.github/workflows/validate.yml` - Full validation (ruff + mypy)
+
+## Breaking Changes
+
+**Always warn the developer before making changes that:**
+- Change entity IDs or unique IDs (users' automations will break)
+- Modify config entry data structure (existing installations will fail)
+- Change state values or attributes format (dashboards affected)
+- Alter service call signatures (user scripts will break)
+- Remove or rename config options
+
+**How to warn:**
+> "This change will modify the entity ID format. Existing users' automations and dashboards will break. Should I proceed, or would you prefer a migration path?"
+
+## Quality Standards
+
+**Follow Home Assistant patterns:**
+- Use type annotations (mypy strict)
+- Follow ruff rules
+- Add docstrings to public functions
+- Use Home Assistant constants from `homeassistant.const`
+- Implement proper error handling
+- Use `async_redact_data()` for sensitive data in diagnostics
+
+## Additional Resources
+
+- [Home Assistant Developer Docs](https://developers.home-assistant.io/)
+- [Integration Quality Scale](https://developers.home-assistant.io/docs/integration_quality_scale_index)
+- [Ruff Rules](https://docs.astral.sh/ruff/rules/)
+- [mypy Configuration](https://mypy.readthedocs.io/)
diff --git a/custom_components/iec/manifest.json b/custom_components/iec/manifest.json
index 0e2a0e9..988bbdb 100644
--- a/custom_components/iec/manifest.json
+++ b/custom_components/iec/manifest.json
@@ -8,6 +8,6 @@
     "iot_class": "cloud_polling",
     "issue_tracker": "https://github.com/guykh/iec-custom-component/issues",
     "loggers": ["iec_api"],
-    "requirements": ["iec-api==0.5.2"],
+    "requirements": ["iec-api==0.5.3"],
     "version": "0.0.1"
 }
diff --git a/hacs.json b/hacs.json
index 19f0881..821b9a4 100644
--- a/hacs.json
+++ b/hacs.json
@@ -2,7 +2,7 @@
     "name": "Israel Electric Corporation (IEC)",
     "filename": "iec.zip",
     "hide_default_branch": true,
-    "homeassistant": "2024.2.0",
+    "homeassistant": "2025.1.4",
     "render_readme": true,
     "zip_release": true
 }
diff --git a/requirements.txt b/requirements.txt
index 94f6dc0..f66870a 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,5 +1,5 @@
 colorlog>=6.8.2
-homeassistant==2024.2.0
-iec-api==0.5.2
+homeassistant==2025.1.4
+iec-api==0.5.3
 pip>=21.0
 ruff>=0.5.6