COVERT TOWNSHIP, Mich. — The state has approved Consumers Energy’s plan to opt out of buying power from the Palisades nuclear plant in Covert Township.

The Michigan Public Service Commission says Friday that Jackson-based Consumers Energy can terminate its agreement with Entergy Corp. for just over $142 million. Both need to decide whether to accept the commission’s conditions.

The plant, southwest of Grand Rapids, was built by Consumers Energy which sold it to Entergy in 2007. Consumers Energy agreed to buy power from Palisades until 2022.

Both companies have said the deal’s remaining cost is higher than the projected cost of buying energy on the market.

The commission says the utility can recover the $142 million through surcharges to electric customers.

Entergy has said it intends to shutter Palisades next year.