TERRE HAUTE & BLOOMINGTON, Indiana, Oct. 21, 2022 (GLOBE NEWSWIRE) — Hallador Energy Company (NASDAQ – HNRG), through its new subsidiary Hallador Power Company, LLC, has completed the acquisition of the generating facility 1 Gigawatt Merom from Hoosier Energy Station, located in Sullivan County, Indiana, in exchange for assuming certain decommissioning costs and environmental liabilities. The transaction includes a 3.5-year power purchase agreement (PPA).
Hoosier will purchase 100% of the plant’s energy and capacity through May 2023, reducing purchases to 22% of energy production and 32% of its capacity from June 2023 onward. in 2025. The companies’ existing renewable PPA – signed in May 2021 and representing 150 MW of solar generation and 50 MW of battery storage – will be retained, with its start date postponed until Merom’s eventual retirement.
“This transaction provides Hallador with the opportunity to be an integral part of the capacity, reliability and resiliency the grid needs in the near term, while creating a pathway and structure to convert the facility to renewable energy when market signals and developments in the network infrastructure indicate this. it’s time. We are grateful to the Hoosier Energy leadership team and board of directors for working diligently with us to create this opportunity for Hallador, the citizens of Sullivan County and the dedicated employees who choose to work at the plant. of Merom. The acquisition of Merom is exciting for Hallador shareholders as it is the start of a more diverse and growing revenue platform that we will continue to build on,” said Hallador Energy CEO Brent Bilsland.
“Hoosier Energy and its member distribution co-ops benefit significantly from this agreement, providing short- and long-term cost savings and continued stability as we transition our resource portfolio,” said Donna Walker, President and CEO. from the management of Hoosier Energy. “Current employees of Merom and Sullivan County also benefit, preserving more than 100 jobs and a major economic engine for the region.”
###
Hallador Energy Company is headquartered in Terre Haute, Indiana. To learn more, visit halladorenergy.com.
Founded in 1949, Hoosier Energy is a generation and transmission cooperative (G&T) headquartered in Bloomington, Indiana. The G&T provides electricity and services to 18 member distribution co-operatives in central and southern Indiana and southeastern Illinois. We are a community-driven organization that strives to efficiently deliver affordable, reliable and secure energy. Collectively, our 18 members serve more than 760,000 consumers. Hoosier Energy is an equal opportunity employer and supplier. For more information, visit hoosierenergy.com.
Forward-Looking Statements.
This press release contains forward-looking statements regarding, among other things, the future operations and performance of Hallador Energy and its consolidated subsidiaries, including, without limitation, Hallador Power, which are based on current expectations, forecasts and assumptions. of the company and involve risks and uncertainties. These statements include, but are not limited to, the expected benefits of the acquisition, as well as Hallador Energy’s expected business operations, plans, strategy, capital structure, earnings and performance. These forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by these statements. We cannot guarantee that our expectations, estimates or projections will be realized. The forward-looking statements included in this press release speak only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements. Many factors could cause our actual results and events to differ materially from those expressed or implied by the forward-looking statements. In addition, other risks and uncertainties not currently known to us or that we believe to be immaterial could affect the accuracy of these forward-looking statements. Investors should consider this cautionary statement together with the risk factors identified in our most recent annual or quarterly report or in other reports we have filed with the Securities and Exchange Commission.
