The firm plans to acquire the Indiantown cogeneration facility from Calypso Energy in a deal valued at about $451m.
FPL also has a long-term purchased-power agreement with the Indiantown cogeneration facility, which is scheduled to be operational until 2025.
Upon securing the PSC approval by December 2016, FPL plans to purchase the power plant as soon as possible to maximize customer savings.
It will later reduce the plant’s operations in a bid to eventually phasing the plant out of service.
Florida Chapter of The Nature Conservancy executive director Temperince Morgan said: "Transitioning to a clean energy economy is something that Floridians want and deserve — and retiring coal-fired facilities is an important step toward a lower-carbon future."
FPL expects the plant, which will be operated minimally through the end of 2018 as needed, to generate $129m in customer savings during its approximately nine years of operational life.
FPL president and CEO Eric Silagy said: "We are delivering power to our customers that is cleaner and more reliable than ever before at a price that is lower than it was 10 years ago and among the lowest in the nation.
"That is no accident – it’s because of our forward-looking strategy of smart investments that improve the efficiency of our system, reduce our fuel consumption, prevent emissions and cut costs for our customers.
"While many years ago it made sense to buy this plant’s power to serve our customers, we’re now able to purchase the facility and phase it out of service, preventing potentially harmful carbon emissions while saving our customers millions of dollars."
According to FPL, reducing output of the plant will prevent more than half a million tons of CO2 emissions per year.
