Subsidiary of Southern Company Southern Power has completed the acquisition of Mankato Energy Center from Calpine Corporation, a US-based firm that generates electricity from natural gas and geothermal resources.
Financial details of the transaction have not been divulged by both companies.
The acquired facility is located in Mankato, Minnesota. It includes two natural gas units, the existing 375MW Mankato Energy Center I and the currently under development 345MW Mankato Energy Center II expansion.
Southern Power’s president and CEO Buzz Miller said: “The Mankato Energy Center is an excellent fit for Southern Power’s business model and will be a strong addition to our generation portfolio.
“We look forward to serving this region and expanding our partnerships in the Midwest.”
Mankato Energy Center I is a natural gas-fired, combined-cycle facility contracted with Xcel Energy-Minnesota until 2026.
The Mankato Energy Center II expansion is expected commence commercial operations by June 2019 to serve an additional 20-year power purchase agreement (PPA) with Xcel Energy-Minnesota. Upon completion, the Mankato Energy Center will represent 720MW of generating capacity.
The acquisition is in line with Southern Power’s business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.
Image: Southern Company acquires Mankato Energy Center. Photo: courtesy of Southern Company.