US based power producer Dominion will cease operations of two of the four units at the Salem Harbor power station in the US state of Massachusetts by the end of the year and plans to retire all four units by June 2014.

The company is closing the coal-fired units because of pending environmental regulations and the market conditions that are making the facility uneconomical to operate.

Dominion Generation CEO David Christian said that the company plans to close the power station given the significant costs required to keep the station in compliance with pending environmental regulations and the falling margins for coal stations selling electricity in New England.

Last year, the company said it would not invest the funds needed to comply with new environmental regulations that would go into effect in 2014 and beyond.