Brent Bilsland: No, that includes the capacity payments from Merom. but most, I mean the majority of, and I don’t have right here in front of me, the majority of our EBITDA in 2023 will be coal because of the PPA we’ve entered into, and the fuel limitations for the plant.
Jeff Bronchick: Got it. And when you say the capacity payments, will basically enable you to run Merom at break even, and then, you get, all the optionality, is that on an operating basis or is that in the cashflow basis, including that 15 to 20 maintenance and then the ELG payments?
Brent Bilsland: So what we’re saying, I’m sorry, Jeff. What we’re saying is the majority of our EBITDA is coming from our coal production in 2023. In 2023 from a plant perspective, we have a fixed cost of that plant, which is mostly labor, right? We get capacity revenue, which in 2023 we anticipate will mostly cover, nearly all the fixed costs of that plan. We do not have, we’re going to run, we’ve got a fair amount of power sold to Hoosier in January, February, March, April and May, but that’s at a relatively low price. So we make the margin on it, but we don’t make a huge margin on that. We are more unfold starting in June through December of 2023. but we don’t have a lot of fuel to put to the plant. So we don’t expect, even though we can make potentially more money on a per megawatt hour basis, because we could sell electrons at a higher price.
We currently don’t have a lot of fuel bot. We have some fuel bot not to meet our requirements in 2023. So all we’re trying to signal is that we don’t €“ today, we don’t anticipate, making a lot of money at the plant in 2023. We expect that to change in 2024 in that we have unsold coal at Oaktown, that we can take the Merom and we can sell that, we can sell electrons out of Merom, either on the day ahead market or through a bilateral sale to say a public utility or trading company. And we think judging by where we forecast prices to be today, that we could make a good margin of that in 2024. We’ve not put out any forecast for 2024 results. But
Jeff Bronchick: You still have to spend 15 to 20, whether you run the plant or not, unless truly close it down for good, right?
Brent Bilsland: Correct. So what we’re saying is that, Hoosier was in the mode of we’re going to shut this plant down. And so, they as did not spend as much money on maintenance of the plant, here in the last nine to 12 months. So what we’re saying is we’ve got some maintenance, elevated maintenance expense on that plant to kind of get it in a little better condition than it’s in today or better condition, not a little better. And then we’ve got some money that we need to spend to become ELG compliant As far as environmental controls. This plant has most everything you need to meet today’s compliance requirements, but for it does not have an affluent limitation guideline control system. So that is an investment that we’re evaluating today to make sure that we choose the right technology.
