According to the Fairbanks Daily News-Miner court approval would be the final step before work could begin to restart the 50 megawatt coal-fired power station.
According to the Miner, the plant needs new equipment and renovations, meaning a restart could take up to two years.
It reports the federal and Alaskan governments have put $300 million into the plant, but disagreements over the cost of power from it led to it being closed in 2000 for a short time.
The sharp rise in oil prices over subsequent years changed the dynamics of energy in interior Alaska, making restarting the coal plant seem like a good idea.
However, there were many objections and road blocks put in this path.
Negotiations on the restart began three years ago.