Part of an aging coal-fired power plant that provides electricity to more than 2 million customers in the Southwest would be shuttered under a plan unveiled by Republican Gov. Susana Martinez's administration.
Months in the making, the New Mexico Environment Department unveiled details of the proposed settlement Tuesday.
It calls for retiring two units at the San Juan Generating Station. The remaining units would be outfitted with equipment designed to curb haze-causing pollution.
State officials say the proposal is a compromise meant to address pollution concerns while ensuring the costs of environmental upgrades at the plant are not unbearable for ratepayers.
They also say the proposal could serve as a catalyst for New Mexico to transition to cleaner energy sources.
Environmental groups that have been pushing for Public Service Company of New Mexico to retire the coal plant describe the state's proposal as a positive step.
Copyright 2012 The Associated Press.