October 8, 2026 - Hallador Energy announced October 8 that it has signed six-year agreements to supply electricity and reserve generating capacity from its Merom coal-fired power plant in Indiana. The deals could generate nearly $700 million over the period from June 2029 through May 2035.

The agreements are with a financially strong utility operating in the Midwest’s MISO electricity market. They took effect upon signing and require no regulatory approval.

The utility will pay approximately $271 million to reserve an average of 225 megawatts of Merom’s generating capacity, helping ensure dependable power is available when needed. A separate electricity sales agreement could generate approximately $422 million, based on current market price estimates.

Hallador said the capacity agreement carries the highest price it has secured to date—more than 20% above its March agreement. It is the company’s third capacity deal announced this year.

About 95% of Merom’s generating capacity recognized by the grid operator is now under contract through 2035. Roughly two-thirds is committed for 2036 through 2040.

President and CEO Brent Bilsland said growing investment in Indiana, including data-center development, is increasing demand for reliable electricity and helping Hallador secure stronger prices and long-term customers.

Electricity deliveries under the new agreement will depend on the actual output of Merom’s two generating units. Hallador will not have to purchase replacement electricity when a unit is offline or undergoing required maintenance.

The agreement starts with an average base purchase level of 200 megawatts, but the utility can reduce purchases during certain periods, including to zero for up to 90 days annually. Pricing provisions also help protect Hallador against qualifying increases in fuel costs. Actual revenue will therefore depend on plant performance, purchase volumes and contract adjustments.

The deals bring Hallador’s reported future contracted sales to approximately $3 billion across its business divisions. That figure includes coal sales between its own mining and power businesses. After removing those internal transactions, the company reports approximately $2.48 billion in contracted revenue. Some earlier agreements still require regulatory approval.

Hallador’s updated figures show combined capacity and electricity revenue per megawatt-hour increasing from approximately $46 for the remainder of 2026 to $73 in 2030 and $75 during 2031–2035. These figures reflect the company’s broader contracted sales and generation assumptions.

Hallador also continues to develop its proposed 460-megawatt Turtle Creek natural gas project beside Merom. The company submitted an air permit application September 25. If approved and built, the project would increase Hallador’s generating capacity by more than 40%.

Hallador operates Merom through its power subsidiary, while its Sunrise Coal business supplies fuel to the plant and other customers. Bilsland said the new agreements demonstrate the value of dependable generation as the company works to meet growing electricity demand with both coal and natural gas.