New ERA Energy & Digital Enters 20-Year Power Purchase Agreement (200–207 MW)

What Happened
New ERA Energy & Digital, Inc. (through subsidiary TCDC PowerCo LLC) announced on Sept. 18, 2026 that it signed a Power Purchase Agreement (PPA) with Luminant ET Services Company LLC to supply a minimum of 200 MW and up to 207 MW of electricity for its Texas Critical Data Center project near Odessa, Texas. The energy will come from a 1,180 MW natural gas plant owned by Vistra (an affiliate of Luminant) or from other ERCOT sources. The PPA has an initial 20‑year term starting on the date Luminant first delivers power, with automatic one‑year renewals unless either party opts out. The company filed the 8‑K and issued a press release on Sept. 21, 2026.

Key Details

• PPA signed Sept. 18, 2026; press release furnished Sept. 21, 2026.
• Contract quantity: minimum 200 MW, maximum 207 MW; source: Odessa Plant (1,180 MW) or ERCOT.
• Term: 20 years from first delivery, with automatic successive one‑year renewals.
• Credit support required from New ERA: letter of credit of $116,000,000 within 15 business days of the PPA, plus additional security up to $82,800,000 by the delivery date.
• Concurrent Development Framework Agreement (DFA) with Vistra grants ROFR starting April 2028 for onsite generation/expansion, a 5‑year right of first offer on generation and battery projects, reimbursement obligations for substation/transmission construction, and a requirement to issue Vistra non‑voting equity equal to 5% of the fully diluted Project Company once Luminant supplies power. Vistra may draw on New ERA’s credit support for certain unpaid Phase 1 construction costs (up to $116.0M).

Why It Matters
This agreement secures a long‑term power supply for New ERA’s planned Texas data center, reducing a key operational risk (power availability) for the project but also creates sizable near‑term financial obligations (a $116M letter of credit plus up to $82.8M additional security). The DFA gives Vistra preferential rights on future onsite generation and a 5% non‑voting stake in the project company, which could affect future project economics and power build‑out options. Investors should note the material credit commitments and project governance terms disclosed in the filing.