DENVER (AP) - Black Hills Energy is proposing that a new natural-gas-fired power plant replace two coal-fired units in southern Colorado.

The Denver Post reported that the utility made the proposal in a filing on Monday.

The 88-megawatt gas-fired turbine would be built at a generation station in Pueblo where two other gas-fired units are being built.

The South Dakota utility announced in December that it was closing two coal-fired units in Pueblo.

The moves follow the passage of a new Colorado law that encourages utilities to replace aging coal-fired plants with ones powered by cleaner-burning natural gas.

The utility had no immediate plans to retire any plants before it was passed. However, vice president of operations Christopher Burke said Black Hills has come up with the most “efficient plan” to address the loss of capacity.

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