Court Blocks DOE Order Forcing Michigan Coal Plant to Stay Open

The U.S. Court of Appeals for the District of Columbia Circuit unanimously vacated a Department of Energy order that forced the J.H. Campbell coal plant in West Olive, Michigan, to remain operational past its scheduled May 2025 retirement. Judge Cornelia Pillard ruled that the agency overstepped its authority under the Federal Power Act, stating the administration failed to prove a real emergency existed. The court characterized emergency powers as a "narrow, last-resort backstop" for immediate crises like war or extreme weather, rather than a tool for long-term reliability planning.

The order stemmed from a January 2025 national energy emergency declaration by President Donald Trump, intended to meet power demands from artificial intelligence and data center growth. While the Department of Energy claimed the orders prevented blackouts and saved lives during winter storms, the lawsuit—led by Michigan and joined by Illinois, Minnesota, and environmental groups—argued the move was an unlawful political stunt. Consumers Energy, the plant's operator, spent between $259 million and $295 million to comply with the federal orders, costs expected to be passed to regional ratepayers.

Despite the ruling, the Department of Energy continues to maintain similar orders for coal plants in Indiana, Pennsylvania, and Colorado. Hours after the Michigan decision, Energy Secretary Chris Wright issued a new emergency order to keep a coal plant in Centralia, Washington, operating. In Indiana, owners of the F.B. Culley and R.M. Schahfer stations stated they will continue to comply with current federal directives while reviewing the court's decision.