Xcel Energy to sell Mankato plant in USA

• 4 years ago (2020-04-08)
• David Flin

Gas 371 North America 998

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Xcel Energy has announced that it will sell its 760 MW Mankato gas-fired power plant in southern Minnesota to Southwest Generation for $680 million. The Mankato Energy Centre will continue to provide electricity to its Upper Midwest customers.

Xcel Energy said that the proceeds of the sale would primarily be used to reduce the company’s overall financing needs and improve its credit. It said that the net gain from the sale would be used to fund its corporate giving and Covid-19 relief efforts.

Ben Fowke, Chairman and CEO of Xcel Energy, said: “This is an unprecedented time, and we want to do our part to support our communities as we face the challenges brought on by the Covid-19 pandemic. The Mankato Energy Centre and its workforce provides essential services for local and regional economies and that will not change. Now, more than ever, the people we serve need safe, reliable, affordable power.”

The sale is expected to close in the third quarter of 2020, and is not expected to have a material impact on short- or long-term earnings.