MARTINSVILLE, Ind. (WISH) - Indianapolis Power & Light announced Wednesday that it plans to build a $631 million environmentally-friendly power plant near Martinsville.

The natural gas plant will replace the 64-year-old existing coal facility nearby to comply with EPA mandates for power companies nationwide to reduce emissions.

IPL says the new plant will generate about 600 megawatts of electricity and will reduce emissions by about 97 percent.

"This will be one of the cleanest most efficient plants in the state," said IPL CEO Ken Zagzebski.

The project, pending regulatory approval, would provide about 660 construction jobs and 25 permanent positions.

At a ceremony Wednesday morning, Gov. Mike Pence lauded the project for its transition to cleaner energy and for its economic impact.

According to IPL, the project will bring in more than $1.6 million per year in Morgan County through local tax revenue. The overall economic benefit to the state during construction is reported to be more than $857 million and $48 million each year during operation.

IPL customers could also see electricity costs increase by 2 to 3 percent per year through 2018.

If approved, construction would begin in 2014 and completed by 2017.

IPL said it looked at two other sites, but chose Martinsville, in part, because it would be the least costly for customers.

Click here to learn more about the project. Questions about the project can be sent to IPLanswers@aes.com