The Mankato Energy Center in Mankato, MN, now has a second combined-cycle unit, completed by Southern Power, a subsidiary of Southern Company.

Southern Power said that the second unit was completed on time and under budget.

After reaching an agreement with Xcel Energy - Minnesota last month, Southern Power plans to sell the plant for $650 million. Southern Power purchased the Mankato Energy Center in 2016 from Calpine Corp. for $395 million while the facility was being expanded. 

The Mankato Energy Center is a gas-fired plant which now includes two combined-cycle units that are capable of generating 760 MW for the region. 

Xcel Energy has purchased power from the plant’s first unit since 2006. Now, the utility is purchasing the plant in an effort to reduce carbon emissions across the Upper Midwest.

Xcel plans to retire its last two coal-burning plants, the Allen S. King plant and Sherco 3 plant, by 2030, a decade earlier than previously scheduled. 

Xcel is purchasing the plant under two 20-year power purchase agreements. The sale, which is subject to regulatory approval and other closing conditions, is expected to be completed by 3Q2019.