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D.C. Circuit Rules DOE Lacked Authority to Keep Michigan Coal Plant Open

The unanimous Sept. 11 opinion found no imminent supply emergency and narrowed when the federal government can use short‑term power to force plants to run.

Overview

  • A three‑judge D.C. Circuit panel on Sept. 11 vacated the Department of Energy’s emergency order that kept the 1.5 GW J.H. Campbell coal plant operating past its planned May 2025 retirement.
  • The court said Section 202(c) of the Federal Power Act is a narrow, last‑resort tool that requires a concrete, imminent shortage and cannot be used to undo state and regional retirement plans.
  • Keeping Campbell open has cost hundreds of millions of dollars, with filings and reporting citing roughly $248–$259 million in added operating expenses through mid‑2026 that Consumers Energy and ratepayers may seek to recover.
  • The ruling creates a legal precedent that undercuts similar DOE orders for other aging fossil‑fuel plants and could affect pending challenges, appeals, and FERC and state proceedings over who pays the bills.
  • Watch for immediate next steps: DOE could seek rehearing or appeal, the department already issued another order to a Washington plant hours after the ruling, and courts will likely cite this opinion in related cases.