Energy
Hallador secures major MISO power supply agreement
Hallador Energy Co has entered into a $700 million agreement to provide power from its Indiana facility to an unnamed utility.
Key points
- The six-year supply contract begins in June 2029 and runs through May 2036.
- Hallador expects the arrangement to generate approximately $422 million in energy revenue.
- The company continues development of its proposed Turtle Creek gas project.
What happened
Hallador Energy Co has finalized a $700-million contract to deliver electricity from the Merom Generating Station located in Sullivan County, Indiana, according to Rigzone reporting. The agreement involves supplying a utility operating within MISO Zone 6.
Deliveries under the six-year arrangement are scheduled to commence in June 2029 and conclude in May 2036. The transaction does not necessitate regulatory approval and carries the highest capacity pricing the firm has achieved to date, surpassing its March contract by over 20 percent.
Why it matters
President and chief executive Brent Bilsland noted that regional investment is boosting requirements for dependable power as data centre developments shift across states. The latest transaction elevates the company's total forward sales portfolio to $3 billion within that segment, securing most of Merom's projected output through 2040 with investment-grade entities.
Under the terms, the utility will acquire a yearly average of 225 megawatts of accredited capacity, yielding roughly $271 million in capacity revenue. Furthermore, the energy agreement includes provisions such as a fuel price floor to safeguard margins against rising commodity costs.
What comes next
Alongside the Merom operations, the power producer is advancing plans for the 460-megawatt Turtle Creek gas-fired plant. Having applied for a permit in September and secured a $600 million senior secured loan last month, the organization aims to expand its generating capacity and transition into a multi-fuel independent power producer.
Original reporting
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
