Xcel Energy to buy Mankato Energy Center for $650M
Xcel Energy announced it 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. 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 we continue to add renewable energy and analyze the future of our always-on power plants, as well as reducing the risk from expiring power purchase agreements in the next decade. Xcel Energy has purchased power from the plant's first unit since 2006 and has an agreement for the energy from the under-construction second unit beginning in 2019. Xcel Energy agreed to purchase the plant for $650 million. Current employees will be offered jobs with Xcel Energy.