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Southern Company subsidiary closes on natural gas-fired power facility in Minnesota
Southern Company subsidiary Southern Power today announced it has completed the acquisition of the Mankato Energy Center from Calpine Corporation. Located in Mankato, Minnesota, the facility includes two natural gas units - the existing 375-megawatt (MW) Mankato Energy Center I and the 345-MW Mankato Energy Center II expansion, which is under development.
"The Mankato Energy Center is an excellent fit for Southern Power's business model and will be a strong addition to our generation portfolio," said Southern Power President and CEO Buzz Miller. "We look forward to serving this region and expanding our partnerships in the Midwest."
With the addition of the Mankato Energy Center, Southern Power owns 10 combined-cycle and combustion-turbine, natural gas-fired power plants across five states, representing 9,300 MW of generating capacity operating or under construction.
Mankato Energy Center I is a natural gas-fired, combined-cycle facility contracted with Xcel Energy-Minnesota 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 Xcel Energy-Minnesota. When complete, the Mankato Energy Center will represent 720 MW of generating capacity.
The Mankato Energy Center fits Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts. The facility represents Southern Power's first generating asset within the Midcontinent ISO (MISO).