Wisconsin Public Service (WPS), an electric and gas utility serving US states of Wisconsin and Michigan, will invest nearly $300m to upgrade two coal-fired power plants.

WPS will cut the emissions as a part of the settlement it reached with the US Environmental Protection Agency (EPA) and the Department of Justice.

The company has also agreed to pay a $1.2m penalty and spend $6m on environmental mitigation projects, among other things, to resolve violations of the Clean Air Act.

The settlement covers the utility’s two power plants – the Pulliam plant in Green Bay and the Weston plant in Rothschild, Wisconsin.

In addition, the settlement requires WPS to install new pollution control technology on one of its largest units, and permanently retire, refuel or repower four additional coal-fired units at the Pulliam and Weston plants.

Commenting on the settlement, Justice Department’s Environment and Natural Resources Division assistant attorney general Ignacia Moreno said it will bring down carbon emission and improve air quality in Wisconsin and nearby areas.

"The agreement, which requires WPS to reduce emissions from both of its coal-fired power plants in Wisconsin, demonstrates the Justice Department’s continuing efforts, along with EPA, to bring large sources of air pollution into compliance with the Clean Air Act," Moreno added.