Key Takeaways
Energy Secretary Chris Wright has invoked emergency powers under the Federal Power Act to keep the J.H. Campbell coal power plant in Michigan open through this summer.
The large coal plant was scheduled to close on May 31, 15 years earlier than initially planned, due to state policies favoring intermittent wind and solar energy.
Intermittent sources have been challenging grid reliability and raising electricity rates due to the hidden costs of required backup power.
The North American Electric Reliability Corporation has flagged the Midwest as being at high risk of electricity shortages due to the retirements of coal and other baseload power sources being forced by government policies.
Coal-sourced electricity in Michigan has decreased from 66% to 21% over the past 15 years.
Michigan requires 100% “clean energy” by 2040, allowing for some natural gas generation if 90% of its carbon dioxide emissions can be captured, a technology that is not commercially available.
Wright has directed MISO, the regional grid operator, to ensure steps are taken to dispatch electricity from the plant to benefit consumers in Michigan and the region.
The Department of Energy (DOE) is invoking emergency powers to keep a decades-old coal-fired power plant in Michigan online to avoid power outages and grid reliability issues as peak power demand arrives this summer. In an emergency order (issued under powers conferred to the Energy Secretary under the Federal Power Act), Chris Wright directed the region’s grid operator to coordinate with Michigan-based Consumers Energy, ensuring the utility company’s J.H. Campbell coal power plant remains available for operation. The West Olive, Michigan, plant was slated to be permanently retired on May 31, about 15 years before the end of its scheduled design life, as part of Consumers Energy’s plans to eliminate its coal fleet. This emergency order runs through August 21. The plant, first opened in 1962 and expanded in 1967 and again in 1980, has a capacity of 1,450 megawatts. The move was cheered by the state legislator representing the plant.
DOE is concerned that the plant’s closure would lead to a significant power shortfall as dedicated baseload power would be removed from the grid. According to the nation’s top grid watchdog, the North American Electric Reliability Corporation, the Midwest is at “high risk” of shortfalls due in large part to the planned retirements of fossil-fuel-fired power plants. According to Chris Wright, “This administration will not sit back and allow dangerous energy subtraction policies to threaten the resiliency of our grid and raise electricity prices on American families.” Contrary to popular belief, wind and solar power are raising electricity prices for consumers, as they need backup power from fossil fuel generators or expensive batteries when the sun is not shining and the wind is not blowing. That redundancy is costly for ratepayers.
Driven by state policies that heavily incentivize or mandate green energy investment and massive federal subsidies, coal-fired power generation has been cut nationally from 50% in 2000 to 15% in 2024. In Michigan, coal plants generated 21% of total electricity in 2024, down from the 66% generated by coal in 2009, and are projected to make up 10% of electricity generated in the state in 2025. Biden’s Energy Secretary, Jennifer Granholm, offered a $5.2 billion loan to Consumers Energy for the company to build more solar, wind, and battery storage, and replace its fossil fuel generators. While secretary, Granholm used emergency powers 11 times to press for more renewable energy.
Despite already losing over 100,000 megawatts of coal capacity, utility companies nationwide have announced the closure of coal-fired plants that would remove another 9,356 megawatts of power from the grid, even with a significant increase in demand from artificial intelligence (AI) data centers and electrification.
Michigan laws require utilities to adopt green power sources, aiming to reduce carbon dioxide emissions by mandating that all energy produced in the state be “clean” by 2040. Additionally, the state government assumes control over approving large solar, wind, and energy storage projects — a task previously performed by local governments. The state expects 15% “renewable” energy (nuclear, solar, wind, geothermal, and hydropower) through 2029, 50% by 2030, and 60% by 2035. A target of 80% “clean” energy is set for 2035 and then 100% five years later, which allows natural gas generation provided utilities can become 90% effective at using carbon capture and sequestration, a technology not yet commercially available. Michigan gets 34% of its electricity from natural gas-fired plants and 12% from renewable sources such as wind and solar.
The DOE emergency order is contrary to the state’s goals and Consumers Energy’s plans to remove coal entirely from its fleet by closing the Campbell plant. Besides mandating that Consumers Energy keep the plant operating, the order directs the Midcontinent Independent System Operator (MISO), the regional electric grid operator covering Michigan and 14 other states, to “take every step to employ economic dispatch (operation) of the Campbell Plant to minimize cost to ratepayers.”
Conclusion
The Trump administration issued an emergency order directing a coal-fired power plant in Michigan to remain in operating order through most of August. The plant, J.H. Campbell, was originally scheduled to be shut down on May 31 as part of an effort to meet state requirements for reducing carbon dioxide emissions. Energy Secretary Chris Wright has kept the plant open due to the heightened risk of blackouts this summer and the need to ensure the reliability of the grid in MISO, as electricity demand is expected to increase due to the growth of AI data centers and electrification. Michigan state law requires the addition of “clean” sources of electricity, with a gradual increase to 100% by 2040.
