PIERRE, S.D. (AP) - The South Dakota Public Utilities Commission has approved a construction permit for the $700 million Buffalo Ridge II wind farm planned for Brookings and Deuel counties.

All three commissioners agreed Tuesday to approve the 306-megawatt project, which could include up to 204 turbines and generate enough electricity to power 148,000 homes.

Oregon-based Iberdrola Renewables is building the new wind farm close to its existing farms near White. The Buffalo Ridge II project would join the 54-megawatt Minn-Dakota farm and the 55-megawatt Buffalo Ridge I unit.

The project includes a 13-mile, 115-kilovolt overhead transmission line to connect to a collection substation near Brookings.

Iberdrola, the PUC staff and power companies that operate in the area had agreed on most issues and conditions of the permit.

The main issue at a hearing last week and during the PUC's meeting Tuesday was an objection by two people who live near some of the proposed wind turbines. Terrell Spence said he agrees that the Buffalo Ridge II project will meet Brookings County ordinances and the standards used by the PUC, but he still has questions about noise levels.

Spence urged the PUC staff to look out for any new research dealing with noise levels and other technical aspects of wind towers.

PUC Chairman Dusty Johnson said the nearest tower will be 1,355 feet from Spence's home, well beyond the county's minimum of 1,000 feet. The noise level also will be below the 50 decibel standard used by the PUC and set in the county's ordinance.

Johnson said Spence raised legitimate issues but did not present much evidence to justify moving the tower.

Commissioner Gary Hanson said the county did a lot of work in passing an ordinance that requires towers to be at least 1,000 feet from homes. The PUC should not second-guess that ordinance, he said.

Commissioner Steve Kolbeck said evidence suggests the tower would generate a noise level at the house comparable to an office or even a living room.

Johnson said wind towers have been operating near homes around South Dakota.