Dominion Resources is planning to shut and decommission its Kewaunee Power Station in Wisconsin after it was unable to find a buyer for the nuclear power station.
The US-based energy provider said that the 566MW nuclear facility is expected to cease power production in the second quarter of 2013.
Pending a grid reliability review by the Midwest Independent Transmission System Operator, the station would move to safe shutdown.
The company anticipates recording a $281m charge in the third quarter related to the closing and decommissioning of the power plant.
Dominion Resources chairman, president and CEO Thomas F Farrell II said the decision to shut the plant was based purely on economics.
"Dominion was not able to move forward with our plan to grow our nuclear fleet in the Midwest to take advantage of economies of scale. In addition, Kewaunee's power purchase agreements are ending at a time of projected low wholesale electricity prices in the region," Farrell noted.
"We intend to take all steps necessary to ensure the protection of the public, employees and the environment during the remaining period of power generation, as the station is shut down, and throughout the decommissioning process."
In April 2011, the firm had announced its plans to sell the facility it purchased from Wisconsin Public Service and Wisconsin Power & Light in 2005 for $220m.
Dominion Resources, which serves retail customers in 15 states of the US, is a producer of energy and has the country's largest natural gas storage system.