A coal-fired power plant in Madison that is among the most polluting plants in the Midwest will stop using coal as a fuel source within six years, Madison Gas & Electric Co. said Thursday.

The Madison-based utility said it will boost its reliance on wind energy, energy efficiency and less-polluting coal-fired power.

The announcements came as the utility announced a 10-year energy plan aimed at helping reduce MG&E's reliance on natural gas- fired electricity and helping it comply with new federal environmental regulations.

The company faced spending tens of millions of dollars to add pollution controls to the Blount St. facility, which is located less than a mile from the state Capitol, utility spokesman Steve Kraus said.

That decision didn't make economic sense for the utility or its customers, he said.

For customers, the utility hopes the plan results in less price volatility because the company projects that natural gas, the price of which has skyrocketed in recent years, will account for less than one-third of the company's fuel supply by 2015.

Natural gas-fired power plants made up nearly half of the utility's energy mix last year.

The plan was praised by environmental and customer groups.

"It's fantastic in so many different ways," said Bruce Nilles of the Sierra Club, noting that Dane County's air quality has been on the verge of violating federal air quality standards and that the Blount St. plant is the largest source of emissions in the county.

"This is a huge down payment to restore clean air in Dane County," Nilles said.

The Blount St. plant will continue to operate as a smaller power plant using natural gas as its fuel, MG&E said.

The company also plans to buy coal-fired electricity from We Energies' new plants under construction in Oak Creek.

The two new We Energies plants are expected to begin generating electricity in 2009 and 2010.

MG&E also said it will dramatically increase its reliance on renewable energy, through both the Forward Wind Energy Center that is expected to begin construction near Fond du Lac this year and other projects that will primarily be based on wind power.

The utility didn't release a cost projection for its energy plan but said it also calls for stepped-up efforts in the area of energy conservation by its customers.

The plan is also banking on approval and construction of new transmission lines, proposed by Pewaukee-based American Transmission Co., to help the fast-growing Madison area import electricity on hot summer days.

"It's a great step in the right direction," said Charlie Higley, executive director of the Citizens' Utility Board, a customer advocacy group that has been a strong proponent of energy efficiency. "We think MG&E's plan is very reasonable and addresses the concern about having coal-fired power plants in the center of the city."

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