Xcel Energy selling off Mankato Energy Center to fund COVID-19 recovery support
Xcel Energy announced this week that it intends to sell off the natural gas-fired Mankato Energy Center to Denver-based Southwest Generation for $680 million to benefit COVID-19 recovery efforts on top of reducing its own financial need.
Proceeds from the sale will be split between Xcel Energy’s overall financing needs and improving its credit metrics. The net gain will fund its corporate giving and COVID-19 relief efforts, once the sale closes in the third quarter of 2020.
“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,” Ben Fowke, chairman and CEO of Xcel Energy, said. “The Mankato Energy Center and its workforce provides essential services for local and regional economies, and that will not change. And now more than ever, the people we serve need safe, reliable, affordable power.”
Xcel Energy purchased the 760-megawatt plant just earlier this year through a non-regulated affiliate, after which Southwest Generation quickly offered to purchase it. For Southwest, it will represent a bolster to its growing collection of natural gas plants, some of which already sell energy to Xcel. Mankato currently provides energy to customers in the Upper Midwest, but the sale is not expected to affect that.
“Southwest Generation is excited to add the Mankato Energy Center to our growing portfolio,” John Foster, CEO of Southwest Generation, said. “The plant is a key part of the transition to a lower carbon grid, and we’re pleased to expand our relationship with Xcel Energy, which is leading that transition in the United States.”
