The Arizona Corporation Commission approved Arizona Public Service Co.’s (APS) purchase of Southern California Edison’s (SCE) majority ownership share of units 4 and 5 at a 2,250 MW coal-fired power plant in New Mexico.

According to CBS News, the reported $294 million deal for APS to purchase the 48 percent stake in the units at the Four Corners Generating Station must first be approved by federal regulators, but it is expected to close by the end of 2012.

APS announced plans in 2010 to purchase the majority ownership in the two units and close down units 1, 2 and 3, in which APS has a 100 percent interest.

The plant was granted a lease extension in February 2011 that was part of APS’s plan to close the three units to help cut nitrogen oxide emissions. The remaining units must use best available technology to reduce sulfur oxide and carbon dioxide emissions.

SCE terminated its interest in the plant in order to comply with California laws that prevent utilities from investing in most coal-fired power plants.

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