The Energy Department continues to mandate that older coal plants remain operational, following a ruling from a federal appeals court which found that the department overstepped its emergency authority.
On September 19, Energy Secretary Chris Wright instructed the R.M. Schahfer and F.B. Culley coal plants in Indiana to be available until December 18. This decision came just a week after the D.C. Circuit Court of Appeals reversed Wright’s initial emergency order regarding the J.H. Campbell coal plant in Michigan, which he had issued in May 2025 to extend its operation beyond its scheduled closure.
Energy Department Press Secretary Ben Dietderich mentioned that the DOE disagrees with this court decision and is collaborating with the Justice Department to evaluate options for a potential rehearing and appeal.
Wright reiterated in the announcement that removing coal generation from the energy mix “would jeopardize energy reliability and unnecessarily increase energy costs for Americans.”
Judge Cornelia Pillard, appointed by former President Obama, stated in the ruling that it is states’ responsibility to proactively manage reliability risks.
The Campbell ruling also impacts another challenge concerning the department’s orders regarding Colorado’s Craig Station Unit 1, according to Tri-State Generation and Transmission Association public relations specialist Mark Stutz.
Stutz noted that the D.C. Circuit postponed Tri-State’s initial appeal on June 6, waiting until 60 days after the Campbell ruling, and that Tri-State and its partner, Platte River Power Authority, have submitted three petitions contesting the orders, the latest being on September 22.
Tri-State has received three emergency orders for the unit, with the most recent on June 26, and all requests for rehearing by the owners were automatically denied when the department failed to respond. (RELATED: Data Center Boom Could Supercharge Blackouts Nationwide By 2030, Pennsylvania Regulators Warn)
The office of Democratic Michigan Attorney General Dana Nessel did not respond to requests for comment from the DCNF.
Keeping the Campbell plant operational beyond its planned retirement date was estimated to have cost around $259 million as of September 11, based on financial records reported by the Associated Press.
Between late May and June 30, 2025, the plant generated approximately $33.7 million in electricity sales, leading to a profit of nearly $5 million for its owner, Consumers Energy, as noted by The Washington Free Beacon in 2025.
As for Tri-State, there has been no disclosure regarding the costs of maintaining Craig Unit 1, and specific performance details are kept confidential.
Northern Indiana Public Service Company (NIPSCO), which operates Schahfer, stated to the Indiana Capital Chronicle that both coal units under the orders are currently offline for necessary inspections, maintenance, and repairs.
In August, the utility requested federal approval for about $38 million in cost recovery for the first quarter of 2026, according to the Capital Chronicle.
Meanwhile, CenterPoint Energy, which operates Culley, remarked to the DCNF that it is “reviewing” the Campbell ruling and “evaluating its potential implications for Culley 2,” yet indicated that the ruling “does not alter” the department’s directives for the unit and that it will continue to comply.
“Currently, there are no immediate impacts on customer bills, but we keep customer affordability in mind as we plan for cost recovery associated with unit operations,” the company noted.
Republican Governor of Indiana, Mike Braun, expressed support for the ongoing orders, highlighting that they will “help shield Hoosiers from elevated energy costs and maintain power supply,” as reported by the Capital Chronicle.
The department’s announcement emphasized that the Indiana plants are crucial for the regional grid, especially during high-demand periods when output from renewable sources like wind and solar may fall short.
According to Dietderich, the emergency orders — including those impacting Campbell — have “prevented blackouts and likely saved hundreds of lives during peak capacity events over the past year.”
He added that the Campbell plant was operating at over 650 megawatts daily from January 21 to February 1 during Winter Storm Fern, with a 25% increase in coal generation in impacted areas compared to the previous year. (RELATED: EPA Sets Stage For Court Fight After Taking Buzzsaw To Biden-Era Climate Rule)
Jason Hayes, a senior research fellow at the Heritage Foundation, conveyed to the DCNF that while the ruling restricts future orders by the department, it does not necessarily mitigate the Midwest grid’s ongoing reliability issues.
“The court did not determine that the Midwest has available firm power,” he commented, referring to powerplants capable of generating electricity on demand.
Hayes noted that the closure of the Campbell plant has been accelerated by 15 years, and that Schahfer appears to be on a similar trajectory, with state regulators approving plans to transition from coal to wind and solar.
“Those upset about the expense of keeping Schahfer and Campbell operational should be more frustrated with the policies that shut down dispatchable plants before a reliable alternative is developed,” he stated.
He recommended that state legislatures and Congress “mandate firm capacity to replace firm capacity” before facing another severe weather event like a polar vortex.
Travis Fisher, director of energy and environmental policy at the Cato Institute, told the DCNF that the emergency authority was originally created for wartime situations, and that the D.C. Circuit “correctly found” the department’s reliance on potential future power shortages to be overly vague.
Fisher criticized environmental groups for pushing for Campbell’s retirement, pointing out that Consumers Energy had “every motive” to shut down the plant and invest in newer, pricier facilities.
“It seems the ratepayer, who feels the financial impact when environmentalists and utilities join forces to close existing plants, is the neglected party in this scenario,” he shared.
Fisher argued that the government should enable power plants to compete fairly and allow those deemed uneconomical to be phased out, asserting that electricity providers which succeed in the market should not be subjected to lawsuits or micromanagement by the DOE.
“I believe Secretary Wright and the DOE are on the right path by ordering the operators of these coal plants to ensure their availability during times of baseload constraints, and frankly, the Trump administration could be doing even more,” remarked energy analyst David Blackmon.
Blackmon suggested that the administration should also greenlight new coal plants in areas lacking infrastructure for natural gas and other adjustable power sources.
“It’s no longer feasible for America’s regional grid operators to act as if intermittent generation can effectively replace genuine baseload,” he concluded.
Nessel, whose office is currently contesting the orders legally, commented in a statement after the ruling that “this administration cannot fabricate emergencies to bypass legal standards.”
The present Campbell order is valid until November 14, according to Nessel’s office.
Additionally, the department’s emergency orders encompass coal plants in Colorado, Florida, and Washington state, as reported by the AP.
In its announcement on September 19, the department highlighted that over 17 gigawatts of coal generation remained operational throughout 2025.
