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NRG Energy Inc., which operates generating stations in 16 states, has agreed with the States of New Jersey and Connecticut to settle a lawsuit concerning the operation of two coal-fueled electric generating units at the company's Portland Generating Station in Mt. Bethel, Pa.

The agreement ends a 2007 lawsuit brought by the states for alleged noncompliance with the federal Clean Air Act at the Portland plant, and NRG denies there have been any violations. However, the company says it agreed to a settlement in resolve the dispute.

To meet the requirements of the settlement, NRG will stop using coal as fuel in two units at its Portland facility by June 1, 2014, after receiving the appropriate regulatory approvals. The units have a combined generating capacity of 401 MW and were previously scheduled to be deactivated on Jan. 6, 2015. NRG has also agreed to invest $1 million to benefit the environment in New Jersey and Connecticut.

"NRG only acquired the Portland plant in December 2012 when we closed our merger with GenOn - but we immediately started working with New Jersey and Connecticut and were able to resolve this issue without additional delay or cost to taxpayers," says Lee Davis, president of NRG’s East region.

"As a part of the settlement, we committed to make a significant investment in projects that are beneficial to the environment consistent with NRG’s focus on providing power in a way that is environmentally responsible, reliable and affordable,” Davis continues.

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