Hallador signs six-year power agreements
- Hallador Energy (NASDAQ:HNRG) signed six-year capacity and energy agreements covering Merom Generating Station deliveries from June 2029 through May 2035.
- The capacity agreement is expected to generate about $271 million, while Hallador estimates the energy agreement could produce about $422 million at current forward prices.
- The agreements lift Hallador’s forward sales book to $3 billion and increase contracted Merom capacity through 2035.
Hallador Energy (NASDAQ:HNRG) said its Hallador Power subsidiary signed six-year capacity and energy agreements with an investment-grade MISO Zone 6 utility for Merom Generating Station deliveries from June 1, 2029 through May 31, 2035.
The capacity agreement covers an annual average of 225 megawatts and is expected to generate about $271 million of capacity revenue over the term, while Hallador said the energy agreement could generate approximately $422 million based on current forward prices.
The energy agreement has an annual average base quantity of 200 megawatts, and is unit-contingent and includes fuel-price protections.
Meanwhile, Hallador said it has no obligation to buy replacement power when Merom units are offline for required maintenance.
Hallador said the agreements increase its segment-level forward sales book to $3 billion and bring about 95% of Merom’s accredited capacity under contract through 2035.
The company said contracted capacity and energy revenue rises from $46 per megawatt-hour for 2026 to about $73 per megawatt-hour by 2030 and $75 per megawatt-hour for 2031 through 2035.
Hallador is also advancing its planned 460-megawatt Turtle Creek natural gas project beside Merom, which the company said would increase total generating capacity by more than 40% if approved and completed.
