US utility Xcel Energy will sell a 760MW natural gas-fired power plant to raise funds to support its corporate giving and response to COVID-19.
The utility will sell Mankato Energy Center in Denver to independent power producer Southwest Generation for $680 million.
Energy generated from the plant will be sold to customers of Xcel Energy in Upper Midwest
Xcel Energy had purchased the plant in early 2020 through a non-regulated affiliate company.
Ben Fowke, the 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 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.”
“Southwest Generation is excited to add the Mankato Energy Center to our growing portfolio. 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,” said John Foster, CEO, Southwest Generation.
The sale is expected to close in the third quarter of 2020.
