We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southern Company (SO) Unit to Buy Natural Gas Power Plant
Read MoreHide Full Article
Electric utility holding firm Southern Company’s (SO - Free Report) subsidiary – Southern Power – announced that it has entered into an agreement to acquire a natural gas-fired power plant in Minnesota from Calpine Corp. for $395.5 million, plus working capital.
Mankato Energy Center – the natural gas-fired power plant to be acquired by Southern Power – comprises two natural gas-fired combined-cycle facilities, a 375-megawatt unit 1 and a 345-megawatt unit 2. The 345-MW Mankato Energy Center II expansion is under development as a combustion turbine and a heat recovery steam generator are being added. It is expected to be in service by 2019, which in turn, will increase the generating capacity of the Mankato Energy Center to 720 MW.
The Mankato Energy Center is contracted with Xcel Energy Inc. (XEL) subsidiary – Northern States Power – through 2026. The expansion also has a 20-year power purchase agreement with Northern States.
The acquisition, which is expected to close by the fourth quarter, would boost Southern Power's natural gas generation portfolio. Also, the company will own 10 combined-cycle and combustion-turbine natural gas-fueled power plants across five states following the deal.
Post acquisition, the Mankato plant will represent Southern Power’s first generating asset in the Midcontinent ISO and hence, is in line with its business plan to diversify its generation mix. Calpine’s business strategy of divesting plants in non-core regions is also supported by this deal.
Atlanta, GA-based Southern Company is one of the largest generators of electricity in the nation. The company serves the booming Southeast market, which is considered to be an advantageous region to operate in. The region’s higher-than-average natural population growth, a strong and diverse regional economy, constructive regulation and comparatively tight power markets make it lucrative.
In another development, Southern Company and leading natural gas pipeline developer, Kinder Morgan, Inc. (KMI - Free Report) , announced the closing of their natural gas pipeline venture. The strategic move is intended to strengthen both companies' position in energy infrastructure development.
Per the deal, Southern Company acquired a 50% interest in the Southern Natural Gas pipeline system. Kinder Morgan, the operator of the pipeline system, will continue with its current responsibilities.
Southern Company currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Southern Company (SO) Unit to Buy Natural Gas Power Plant
Electric utility holding firm Southern Company’s (SO - Free Report) subsidiary – Southern Power – announced that it has entered into an agreement to acquire a natural gas-fired power plant in Minnesota from Calpine Corp. for $395.5 million, plus working capital.
Mankato Energy Center – the natural gas-fired power plant to be acquired by Southern Power – comprises two natural gas-fired combined-cycle facilities, a 375-megawatt unit 1 and a 345-megawatt unit 2. The 345-MW Mankato Energy Center II expansion is under development as a combustion turbine and a heat recovery steam generator are being added. It is expected to be in service by 2019, which in turn, will increase the generating capacity of the Mankato Energy Center to 720 MW.
The Mankato Energy Center is contracted with Xcel Energy Inc. (XEL) subsidiary – Northern States Power – through 2026. The expansion also has a 20-year power purchase agreement with Northern States.
The acquisition, which is expected to close by the fourth quarter, would boost Southern Power's natural gas generation portfolio. Also, the company will own 10 combined-cycle and combustion-turbine natural gas-fueled power plants across five states following the deal.
Post acquisition, the Mankato plant will represent Southern Power’s first generating asset in the Midcontinent ISO and hence, is in line with its business plan to diversify its generation mix. Calpine’s business strategy of divesting plants in non-core regions is also supported by this deal.
SOUTHERN CO Price
SOUTHERN CO Price | SOUTHERN CO Quote
Atlanta, GA-based Southern Company is one of the largest generators of electricity in the nation. The company serves the booming Southeast market, which is considered to be an advantageous region to operate in. The region’s higher-than-average natural population growth, a strong and diverse regional economy, constructive regulation and comparatively tight power markets make it lucrative.
In another development, Southern Company and leading natural gas pipeline developer, Kinder Morgan, Inc. (KMI - Free Report) , announced the closing of their natural gas pipeline venture. The strategic move is intended to strengthen both companies' position in energy infrastructure development.
Per the deal, Southern Company acquired a 50% interest in the Southern Natural Gas pipeline system. Kinder Morgan, the operator of the pipeline system, will continue with its current responsibilities.
Southern Company currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>