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Southern Power completes expansion of Minnesota gas-fired plant

Southern Power Co. completed the second combined-cycle unit of the Mankato Energy Center expansion project on time and under budget.

The natural gas-fired Mankato facility now can produce up to 760 MW, the Southern Co. subsidiary said in a June 4 news release.

Southern Power has an agreement to sell the Mankato plant in Minnesota to Xcel Energy Inc. for $650 million. Xcel Energy subsidiary Northern States Power Co. - Minnesota purchases power from the plant under two separate 20-year contracts.

The deal is expected to be completed in the third quarter of 2019, subject to regulatory approval and other closing conditions.