By Nichola Groom
Sept 11 (Reuters) – A federal appeals court on Friday threw out an order from President Donald Trump’s administration that had forced a Michigan coal plant to remain open beyond its planned retirement.
The unanimous ruling by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found the Department of Energy exceeded its authority under a rarely used emergency provision of federal law, according to court papers.
Michigan challenged the order after DOE instructed the 1960s-era J.H. Campbell plant in 2025 to remain online shortly before its planned closure.
The ruling is a setback for the administration’s efforts to preserve coal-fired generation at a time when U.S. demand for electricity has soared due largely to the expansion of data centers. Coal-fired power is among the largest sources of carbon dioxide emissions that contribute to climate change.
“By forcing its continued operation, DOE tried a never-before-used tactic to illegally prop up the aging J.H. Campbell coal plant that nobody asked to keep, sticking ratepayers with a bill for a facility that should have been retired more than a year ago,” Michigan Attorney General Dana Nessel said in a statement. “I am relieved that the Court saw through this facade and threw out DOE’s order that had zero basis in reality.”
Since 2025, the Trump administration has used emergency powers under the Federal Power Act to keep operating several aging power plants slated for retirement, including coal plants in Michigan, Indiana, Washington state and Colorado.
A DOE spokesperson did not comment on the ruling but called the emergency orders essential to keeping the lights on during times of elevated demand.
“Rest assured, the Department of Energy will continue to protect and defend energy security for all Americans,” the agency said in an emailed statement.
The decision comes a month after DOE extended the emergency order to keep the aging J.H. Campbell Generating Plant open through November 14.
The Consumers Energy plant had been slated to close in 2025 because it was no longer economic. Its continued operation under the order cost the utility $295 million from May 2025 through June 2026, according to the Michigan attorney general’s office.
Consumers Energy is reviewing the ruling, spokesperson Brian Wheeler said.
“While that happens, we are continuing to comply with the current 90-day Department of Energy order that keeps the Campbell plant operating,” he said.
Environmental groups welcomed the ruling.
“The DOE needs to stay in its lane and use its emergency powers only in actual emergencies,” Michael Lenoff, an attorney with environmental group Earthjustice, said in a statement. “Preventing the market-driven retirements of coal plants to advance a coal-friendly agenda is not a proper use of emergency powers.”
(Reporting by Nichola Groom; Editing by Rod Nickel and David Gregorio)
Comments