On October 7, 2026, Hallador Energy Company announced that its subsidiary, Hallador Power Company, entered into a six-year Power Purchase Agreement (PPA) with Duke Energy Indiana. The agreement covers the Merom Generating Station and is effective from June 1, 2029, through May 31, 2035. Under the terms of the PPA, Duke Energy Indiana will purchase an annual average base energy quantity of 200 megawatts of electricity from the Merom Station.
The transaction is unit contingent, meaning deliveries follow the actual output of the station's two generating units. Hallador Power has no obligation to purchase replacement power when a unit is offline or under required maintenance. Additionally, Duke Energy Indiana may reduce purchases to zero for up to 90 days per contract year, subject to seasonal limitations.
Separately, Hallador Power and Duke Energy Indiana entered into an agreement under their Master Power Purchase and Sale Agreement for the sale of Zonal Resource Credits (ZRCs). These credits represent accredited generating capacity under MISO rules and will be provided exclusively from the Merom Station. Over the six-year term, Hallador Power will provide an annual average of 225 ZRCs per day. Duke Energy Indiana will pay approximately $271 million for these ZRCs.
The agreements are expected to increase Hallador’s total forward sales book to $3 billion at the segment level. The company estimates the energy agreement would generate approximately $422 million of revenue over the term. The total value of the capacity and energy agreements is approximately $700 million.
Hallador Energy Company is a vertically integrated Independent Power Producer based in Terre Haute, Indiana. The company operates the Merom Generating Station and Sunrise Coal, LLC, which supplies fuel to the station.
