The Louisiana Public Service Commission has given Entergy Louisiana approval for the construction of the $872m Lake Charles Power Station, a 994MW combined-cycle power plant in Westlake, Louisiana, US.
Entergy Louisiana intends to issue a notice to begin construction by 1 August, and the facility is expected to be ready by June 2020.
Entergy Louisiana president and CEO Phillip May said: "The Lake Charles Power Station will supply the energy we need to help the communities and customers we serve prosper. This plant will not only provide needed generating capacity for the fast-growing region, but it's another step in our ongoing effort to upgrade Entergy Louisiana's plants so they operate more efficiently, affordably and with fewer emissions."
May added: "The vote to approve the project was a clear sign the commission recognised both the need for this plant and the tremendous benefits it will provide our customers."
It is estimated customers will save between $1.3bn and $2bn over the anticipated 30-year life of the plant.
Customer savings are expected to exceed the project's construction cost in less than ten years.
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"This project will not only help customers' budgets in the long run, but it will reduce our environmental footprint as well. Compared to our older natural gas-fired plants, combined-cycle units like the Lake Charles Power Station will, on average, cut carbon dioxide emissions by approximately 40%," May added.
Entergy owns and operates power plants with approximately 30,000MW of electric generating capacity, including nearly 9,000MW of nuclear power.
It provides electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
With annual revenues of around $10.8bn, the firm has nearly 13,000 employees.