Appeals Court Throws Out DOE Order Keeping Michigan Coal Plant Open

A three-judge D.C. Circuit panel ruled unanimously Sept. 11 that the Department of Energy exceeded its authority under a rarely used Federal Power Act emergency provision when it ordered Michigan's 1960s-era J.H. Campbell coal plant to keep running past its planned 2025 retirement. Michigan Attorney General Dana Nessel, who brought the challenge, said DOE's order had "zero basis in reality." Consumers Energy, which owns the plant, said the order cost $295 million between May 2025 and June 2026, a cost borne by ratepayers.

Since 2025 the administration has invoked the same emergency-powers tactic to keep aging, uneconomic coal plants online in Michigan, Indiana, Washington and Colorado as U.S. electricity demand has surged with data-center growth. Environmental groups say the ruling curbs an improper use of emergency authority to override market-driven retirements and prop up carbon-intensive generation nobody had asked to keep running.

DOE did not directly address the ruling but said it would keep defending its emergency orders as necessary for grid reliability. Consumers Energy said it is reviewing the decision but will keep complying with a separate, current 90-day DOE order keeping the plant open through mid-November.