OAKLEY (AP) — Pacific Gas & Electric Co. is backing out of plans for a power plant in a Contra Costa County city.

PG&E had entered into an agreement with a developer to construct and acquire a 586-megawatt natural gas plant in Oakley.

The Contra Costa Times reports that a PG&E spokesman, Keith Stephens, referred the newspaper to a portion of the company’s quarterly report when he was asked why it was backing out of the project.

The report notes that a state appeals court earlier this year annulled a decision by regulators to approve the purchase and sale agreement for the plant.

According to the report, PG&E could end the agreement if final, non-appealable approval by state regulators was not received by July 1.

Oakley officials say the plant would have brought in millions of dollars.