Hallador Energy Co., a U.S. coal miner and power producer, landed a six-year contract with an unidentified utility in Indiana. The company expects the agreement to bring in about $711 million beginning in mid-2029, covering electricity from its Merom power plant along with a capacity component.
Long-term power contracts are how data centers lock in their biggest cost. Market Briefs covers that market free every morning.
Hallador says the deal's average price comes in above $80 a megawatt-hour, the richest pricing the company has ever locked down. That stacks up against Merom's long-run average of $35-a-megawatt-hour over the past 15 years. CEO Brent Bilsland pointed to the surge in electricity needs from data centers as the key driver: "These data centers coming to the state of Indiana are just game-changing," he said. "Demand is clearly outstripping supply."
Investors noticed: Hallador's stock jumped as much as 13% on Thursday, its biggest intraday move since May 7. For your money, this sets up a defined revenue stream beginning in mid-2029 and locks in prices well above the plant's historical average per megawatt-hour, a mix that can make future cash flows look a lot sturdier.
Six-year deals tell you what both sides expect electricity to cost. Get the free Market Briefs daily newsletter and follow the pricing.
