Xcel Energy to Acquire Southern Power’s Mankato Energy Center, Minnesota
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Xcel Energy has agreed to purchase the Mankato Energy Center, a 760-megawatt natural gas power plant from Southern Power, a subsidiary of Atlanta-based Southern Company. The plant currently provides power to Xcel Energy customers under a power purchase contract.
“Securing the Mankato gas plant is a great value for our customers as it will provide significant cost savings and operating flexibility for the long term. As we continue to transition to cleaner energy sources and reduce reliance on coal, this plant will help us continue to deliver reliable electricity while keeping bills low,” said Chris Clark, president, Xcel Energy-Minnesota, South Dakota, North Dakota.
Xcel Energy is planning for several power plant retirements and contract expirations in the mid-2020s. Acquiring this plant now provides certainty that energy from these newer generating units will be available and benefit customers over the life of the plant compared to simply purchasing the output. These benefits include more flexibility as they continue to add renewable energy and analyze the future of its always-on power plants, as well as reducing the risk from expiring power purchase agreements in the next decade.
Xcel Energy’s purchase is dependent on regulatory approval, expected in mid-2019.
Mankato Energy Center
The Mankato Energy Center is a natural gas combined-cycle plant. The second unit, now under construction, will bring total capacity to 760 megawatts of electricity. About 27 employees currently operate and maintain the plant. The facility was originally built by Calpine Corporation and sold to Southern Power in 2016.
About Xcel Energy
Xcel Energy provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices.
To stop by Xcel Energy’s website, CLICK HERE
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