Babcock & Brown Power (BBP.AU) said Thursday it entered into a two-year contract to supply electricity to BHP Billiton Ltd.'s (BHP.AU) Olympic Dam operations in South Australia state from July 1.

The power generation fund said the average estimate load under the contract is 105 megawatts, with pricing in line with its outlook for South Australia in fiscal 2010 and 2011.

Babcock Power chief executive Ross Rolfe said, "The finalization of this contract marks a further important step in management's efforts to stabilize BBP's earnings.

-By Bill Lindsay, Dow Jones Newswires; 61-2-8272-4694; bill.lindsay@dowjones.com