Federal Appeals Court Rejects Emergency Order Keeping Michigan Coal Plant Online

A federal appeals court ruled that the U.S. Energy Department overstepped its authority by ordering a Michigan coal-fired plant to remain operational beyond its scheduled retirement, undermining the Trump administration’s efforts to keep aging coal facilities running.

The U.S. Court of Appeals for the District of Columbia Circuit ruled unanimously on Friday that no federal emergency justified keeping the 64-year-old J.H. Campbell Generating Plant online. Energy Secretary Chris Wright had invoked emergency powers last year, arguing the plant was necessary to ensure reliable electricity in the region.

In January of last year, former President Donald Trump declared a national energy emergency via executive order, citing surging demand from artificial intelligence development and data center expansion.

Judge Cornelia Pillard, writing for the three-judge panel, described the emergency provision of the Federal Power Act as a “narrow, last-resort backstop,” stating it could only be invoked when immediate action was necessary and states or utilities were unable to resolve the issue independently.

Pillard also characterized the plant’s forced continuation of operation as disruptive, reversing its long-planned retirement.

The plant, operated by Consumers Energy, was slated to close in May 2025, but has continued running under Energy Department orders, accruing approximately $259 million in costs per financial filings. Opponents warn these expenses may ultimately burden families and businesses across the Midwest.

Consumers Energy stated it is reviewing the court’s ruling.

Michigan Attorney General Dana Nessel, a Democrat whose office was joined by counterparts in Illinois and Minnesota in challenging the orders, welcomed the decision, stating the appeals court had “threw out DOE’s order that had zero basis in reality.”

The Energy Department defended its use of emergency powers, arguing the orders prevented blackouts and likely saved hundreds of lives during peak demand periods, particularly amid severe winter storms in late January and early February.

During peak winter demand, coal generation in affected areas rose by 25 percent compared to the previous year, the department reported.

The Michigan case is part of a broader wave of legal disputes nationwide. Hours after the ruling, Secretary Wright issued another emergency order to keep a coal plant in Centralia, Washington, operational, with similar orders having been applied to plants in Indiana, Colorado, and Florida, as well as an oil and gas facility in Pennsylvania.

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