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Otter Tail Power pulls out of Big Stone II project

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MINNEAPOLIS (AP) -- The utility leading an effort to build a $1.6 billion coal-fired power plant in South Dakota that would serve five states has pulled out of the project.

Minnesota-based Otter Tail Power Co. decided Friday to abandon its plans for Big Stone II. Otter Tail cited the economic downturn and uncertainty about federal legislation to regulate carbon emissions.

Otter Tail's withdrawal makes it less likely the plant will be built.

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