Northern States Power d/b/a Xcel Energy and Mankato Energy Center II LLC have executed the First Amendment to their Power Purchase Agreement (PPA), said Xcel in an Aug. 27 filing at the Minnesota Public Utilities Commission that includes a redacted copy of the amendment.
“The one significant modification is the extension of the condition precedent date to April 1, 2016 which allows the Company to terminate the PPA pending all necessary regulatory approval,” said the cover letter. “This extension is intended to accommodate the length of the North Dakota Advance Determination of Prudence (ADP) process which we expect to conclude prior to the condition precedent date in the amended contract.”
The North Dakota Public Service Commission website shows that this advanced prudence application is scheduled for an Oct. 15 hearing.
Mankato Energy Center II is a unit of Calpine Corp. (NYSE: CPN) and this power deal covers the output from a 345-MW expansion of Calpine’s existing Mankato gas-fired plant in Minnesota. The Minnesota commission approved the PPA earlier this year.
The amendment contains several project milestones, including:
- Mankato has obtained the air permit, which permit does not contain conditions reasonably and materially unsatisfactory to Xcel – needed by Sept. 1, 2017;
- Mankato has obtained the site permit, which does not contain conditions reasonably and materially unsatisfactory to Xcel – needed by June 1, 2017;
- Transmission entities and Mankato have entered into the Interconnection Agreement – needed by June 1, 2016;
- Commercial Operation Date – June 1, 2019.