Southern Company subsidiary to acquire natural gas-fired power facility in Minnesota
- Southern Company
- Southern Power
- Calpine Corporation
- Xcel Energy
Related M&A Transactions
Southern Company subsidiary Southern Power has announced its agreement to acquire the Mankato Energy Center from Calpine Corporation, subject to customary closing conditions.
Located in Mankato, Minnesota (US), the center will include two natural gas units – the existing 375 MW Mankato Energy Center I and the 345 MW Mankato Energy Center II expansion, which is under development. When complete, the Mankato Energy Center will represent 720 MW of generating capacity.
Mankato Energy Center I is a natural gas-fired, combined-cycle facility contracted with Northern States Power, a subsidiary of Xcel Energy Inc., through 2026. The Mankato Energy Center II expansion is expected to be operational by June 2019 to serve an additional 20-year power purchase agreement with Northern States Power.
With the addition of the Mankato Energy Center, Southern Power will own 10 combined-cycle and combustion-turbine natural gas-fueled power plants across five states, representing 9,300 MW of generating capacity operating or under development. The project represents Southern Power's first generating asset within the Midcontinent ISO (MISO).
Southern Power President and CEO Buzz Miller said:
"Southern Power remains committed to the strategic development of a diverse generation mix, and the Mankato Energy Center is an excellent fit for Southern Power's business model. We are proud to serve this region and look forward to expanding the output of the facility to meet the needs of our customers."