Alliant Energy has received verbal approval to go ahead with the construction of its 700MW natural gas-fired facility near Beloit, in Wisconsin, US.
The Public Service Commission of Wisconsin (PSCW) gave its consent for the project that will be built at a cost of $700m.
The proposed plant will be set up adjacent to the existing Riverside Energy Center, which is a 675MW natural gas-fired generating station.
Alliant Energy president Patricia Kampling said: "This is a major step forward as the Riverside project is a critical part of our mission to provide reliable, cost-effective energy to our customers for many years to come.
"This highly efficient generating station will modernise our generating operations and further our transition to cleaner energy sources."
Plans for the expansion of Riverside Energy Center were announced in 2014.
When operational in 2020, the Riverside expansion will be capable of generating electricity that will power more than 535,000 homes.
It will replace approximately 640MW older, less-efficient Wisconsin coal and gas units, for which retirement will occur by the end of the decade.
Alliant Energy will break ground on the plant later this year, with plans to ramp up construction next year.
During the construction phase, the project will create more than 1,000 jobs.
The regulatory agency's approval is conditional on Alliant Energy obtaining other state and federal permitting approvals necessary to construct, operate and connect the Riverside expansion to the transmission system.
Image: The Riverside Energy Center. Photo: courtesy of Dual Freq.