Federal Court Overturns DOE Order Forcing Michigan Coal Plant to Remain Open

A federal appeals court on Friday invalidated a Trump administration order that had compelled a Michigan coal-fired power plant to continue operating beyond its scheduled closure. The court found the Department of Energy (DOE) overstepped its legal authority in issuing the directive.

Court Finds Overreach of Emergency Powers

A unanimous three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled that the DOE exceeded its authority under an emergency provision of the Federal Power Act, according to court documents. The state of Michigan had challenged the initial order, which was issued in 2025 shortly before the plant was set to retire.

The decision is a blow to the administration's broader strategy of using emergency powers to prevent the retirement of coal-fired power plants. Since 2025, the DOE has issued similar orders for aging plants in Indiana, Washington state, and Colorado, often citing rising electricity demand from data centers as justification.

Financial Impact on Utility

The plant at the center of the ruling is the J.H. Campbell Generating Plant, owned by Consumers Energy. The utility had planned to close the facility in 2025 because it was no longer economically viable.

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Keeping the plant operational under the DOE's mandate has come at a significant cost. According to the Michigan attorney general's office, the forced operation cost Consumers Energy $295 million from May 2025 through June 2026. A spokesperson for the utility said it is reviewing the ruling while continuing to comply with a separate 90-day extension order from the DOE that keeps the plant running through November 14.

Broader Policy Implications

The ruling calls into question the administration's use of a rarely invoked federal law to intervene in energy markets and support the coal industry. Environmental groups praised the court's decision as a necessary check on executive power.

“The DOE needs to stay in its lane and use its emergency powers only in actual emergencies," said Michael Lenoff, an attorney with the environmental group Earthjustice, 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."