US Electric utility Mirant Corp has agreed to close down a large generating plant in San Francisco, US, the company has announced.

The Potrero plant, which is nearly 50 years old, will be shut down permanently by the end of next year following pressure from local officials for a number of years.

The Atlanta-based utility also will pay San Francisco city at least $1m “to help address paediatric asthma in nearby communities and to initiate other mitigations in neighbourhoods adjacent to the fossil-fuelled facility,” the city said in a statement, writes BusinessWeek.

Mirant, which has about 30 workers employed at the facility, will also pay another $100,000 to the San Francisco City Attorney’s Office for legal fees and costs, according to local reports.