Texas' power provider closing units over EPA rule

FORT WORTH, Texas — The largest power generator in Texas says it will close two units and cut 500 jobs if a new EPA rule goes into effect early next year.

But Dallas-based Luminant filed a federal lawsuit seeking to remove Texas from the Environmental Protection Agency's new Cross-State Air Pollution Rule.

The company plans to file another suit to stop the rule that takes effect Jan. 1. It requires Texas and 26 other states to reduce power plant emissions.

Luminant spokesman Allan Koenig said Monday the only way the company can comply is by idling the units. He says that will reduce generating capacity by 1,300 megawatts.

The state's power grid operator says if the EPA rule takes effect, power outages could happen because Texas hasn't had time to mitigate the capacity losses.