Federal court blocks DOE order to delay Michigan coal plant retirement

A federal appeals court has vacated a Department of Energy (DOE) emergency order that required the owners of a coal-fired power plant in Michigan to delay its scheduled retirement. The U.S. Court of Appeals for the District of Columbia Circuit ruled that the DOE overstepped its authority under Section 202(c) of the Federal Power Act by attempting to keep the 1,420-MW J. H. Campbell Generating Plant operational past its May 31, 2025, retirement date.

The court held that the federal government’s emergency powers are intended as a “narrow, last-resort backstop” for transitory emergencies such as war, extreme weather, or market manipulation. The ruling emphasized that states bear the primary responsibility for planning and averting reliability risks, noting that the Michigan Public Service Commission and the Midcontinent Independent System Operator had already approved the plant’s retirement following extensive reviews.

The legal challenge was supported by the Michigan attorney general, along with officials from Illinois and Minnesota, as well as environmental organizations including Earthjustice, the Sierra Club, and the Natural Resources Defense Council. Critics of the administration's order characterized the move as an attempt to bypass established regulatory processes.