US court blocks one Trump-era coal plant order

Court rules Department of Energy overstepped by forcing Michigan coal plant to stay open beyond retirement

A US court blocked the Department of Energy’s emergency order to keep Michigan’s J.H. Campbell coal plant running past its planned 2021 retirement. The D.C. Circuit Court found the agency acted outside legal authority under Section 202(c) of the 1935 Federal Power Act to extend operations until May 2025. This ruling specifically addresses only the May 2025 order for this plant, not other seven similar emergency directives the DOE has issued across Colorado, Florida, Indiana, Washington, and Pennsylvania. The court decision follows Michigan Attorney General Dana Nessel’s report that customers of Consumers Energy faced $180 million in costs through March 2026. The Sierra Club estimates total costs of all DOE must-run orders reached $550 million as of the ruling date.

This friction stems from the DOE’s pattern of using emergency powers to delay fossil plant closures. The J.H. Campbell plant was intended to close in 2021, with projected savings of $600 million through 2040 for Michigan’s clean energy transition. By blocking this single order, the court temporarily preserves the fossil fuel plant’s operation, directly delaying the state’s clean energy savings and increasing electricity costs for consumers.

This matters for energy affordability because it extends the period when coal plants—already expensive to maintain—remain operational, raising household electricity costs and slowing the shift to cheaper renewables. The next critical watch point is whether the DOE will challenge this ruling or issue new emergency orders for other plants. The court’s narrow scope means the friction persists for all seven existing orders, with the $550 million cost figure representing only impacts through the ruling date, not future liabilities.

Source: Canary Media