HAMMOND, Ind. (AP) - A judge has approved an agreement between Northern Indiana Public Service Co. and the U.S. Environmental Agency that includes closing the company’s Gary plant and $13 million in investments.

U.S. District Judge Joseph Van Bokkelen earlier had expressed concerns over the deal.

The Post-Tribune of Merrillville reported Monday that NIPSCO has agreed to install controls at its Michigan City, Chesterton and Wheatfield power plants to reduce pollutants. The company also agrees to pay a $3.5 million fine, with all but $200,000 going to the EPA. The rest goes to Indiana.

EPA lawyers told Van Bokkelen they deserved most of the money because they did most of the legal work on the case and Indiana will benefit from the 1,000 jobs expected to be created from the power plant improvements.

Posted 7/26/2011