MINNEAPOLIS (AP) — Xcel Energy says it will sell its natural gas-fired power plant in southern Minnesota to Southwest Generation for $680 million and use the funds, in part, to support the coronavirus recovery efforts.
Southwest is based in Denver, Colorado.
The 760-megawatt Mankato Energy Center will continue to provide electricity to the company’s Upper Midwest customers.
Xcel says proceeds from the sale will primarily be used to reduce the utility company’s overall financing needs and improve its credit with the net gain from the sale to fund its corporate giving and COVID-19 relief efforts. The sale is expected to close in the third quarter of 2020.