The Four Corners coal-fired power plant in Arizona won a lease extension through 2041, paving the way for three of its generating units to be shut down.

The extension is part of Arizona Public Service's plan to close three generating units at the plant to help cut nitrogen oxide emissions. APS is also seeking majority ownership of the remaining two units from Southern California Edison.

As part of the extension, Four Corners must use best available technology to reduce sulfur oxide and carbon dioxide emissions. The U.S. Environmental Protection Agency has proposed cutting nitrogen oxides at the plant by 87 percent under a regional haze rule but has not developed carbon dioxide regulations.

APS needs approval from the Arizona Corporation Commission to buy out SCE's 48 percent share in two units for $294 million. APS currently owns 15 percent of the two units. SCE is terminating its interest in the plant to comply with California laws that prevent utility providers from investing in most coal-fired power plants.

Read more news and features on coal-fired generation.

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