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White Stallion Energy suspends coal plant project

BAY CITY, Texas (AP) -- An energy company says it is halting development of a coal-fired power plant 90 miles southwest of Houston that ran into fierce local opposition.

The White Stallion Energy Center announced Friday it was stopping work on the 1,200-megawatt power project in Matagorda County.

Chief Operating Officer Randy Bird blamed proposed U.S. Environmental Protection Agency rules and the specter of more regulations. He also said low natural gas prices have made the price of electricity from coal uncompetitive.

The project had faced challenges since it was proposed in 2008 over the amount of water it would need and the potential for pollution of its surroundings.

Ranchers, farmers and other residents opposed plans to build the plant.