A federal appeals court has overturned a Trump administration order compelling a Michigan coal-fired power plant, the J.H. Campbell Generating Plant, to continue operations past its scheduled retirement date of May 31, 2025. The unanimous ruling by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that the Department of Energy (DOE) exceeded its authority under a rarely used emergency provision of the Federal Power Act, Section 202(c). This provision is typically reserved for short-term crises like extreme weather or wartime, not as a means to override state-level long-term reliability planning, the court determined.
The J.H. Campbell plant, owned by Consumers Energy Company, was the utility's last coal-fired facility and had plans to retire as part of a clean energy strategy approved by Michigan regulators and the Midwest Independent System Operator (MISO). The Trump administration, however, used emergency powers since 2025 to keep several aging power plants, including Campbell, online amidst increasing U.S. electricity demand driven by data center expansion. The DOE had extended its initial 90-day order four times, compelling the plant to operate for a total of 450 days, despite Consumers Energy coordinating its closure with state regulators and MISO.
The court's decision is a significant setback for the administration's efforts to preserve coal-fired generation, a major source of carbon dioxide emissions contributing to climate change. Consumers Energy reported that the net cost of complying with the DOE's emergency orders was $259 million through June 30, after applying $239 million in MISO revenues. The ruling emphasizes that states hold the primary responsibility for planning and averting reliability risks for their in-state power plants, and that federal intervention under Section 202(c) is limited to immediate, unforeseen emergencies.
