The move will enhance the reliability of the electric system and provide economic benefits to Western New York.
The repowered facility will operate for 10 years with added capability to generate 435MW using natural gas.
New York Governor Andrew Cuomo said, "After a detailed and thorough analysis, coupled with enormous support of the community and its elected leaders, the repowering of the Dunkirk power plant is moving forward."
The refueling plan will create about 50 construction jobs, and restore tax payments to local governments to their previous level of around $8m per year.
Repowering Dunkirk offers benefits and provides better operational flexibility at the nearby Niagara power project.
The commission has also approved National Grid’s allocation and recovery of costs associated with refueling the Dunkirk generating facility.
National Grid’s deal with Dunkirk expects the refueled facility to start operations in the fall of 2015.
