The Lansing Board of Water & Light has gotten a key state permit clearing the way for construction of a new $182 million cogeneration power plant.
The Department of Natural Resources and Environment granted the permit.
A Lansing BW&L spokesman says the utility will now move to issuing bonds to pay for the project. The utility hopes to begin operating the new power plant in 2013.
The power plant will rely on natural gas to produce electricity. Lansing utility officials say it will eventually replace an aging coal-fired power plant.