Terre Haute-based Hallador Energy Company, through its new subsidiary Hallador Power Company, LLC, will acquire Hoosier Energy’s 1-Gigawatt Merom Generating Station in Sullivan County in return for assuming certain decommissioning costs and environmental responsibilities. The transaction, which includes a 3.5-year power purchase agreement (PPA), is scheduled to close in mid-July 2022 subject to required governmental and financial approvals. Under the agreement, Hoosier Energy will purchase 100% of the plant’s energy and capacity through May 2023, reducing purchases to 22% of energy output and 32% of its capacity beginning in June 2023 and through 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 delayed until Merom’s eventual retirement. Hoosier Energy will retain approximately 5,760 acres of land, which has potential for diverse economic redevelopment. Other benefits cited by Hoosier Energy include elimination of millions of dollars in costs for plant decommissioning and long-term grounds maintenance. The new PPA provides additional capacity to Hoosier as well.