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Federal Appeals Court Blocks Energy Department Order Keeping Michigan Coal Plant Open

A federal appeals court has rejected the Trump administration’s effort to keep Michigan’s J.H. Campbell coal plant operating beyond its planned retirement, raising fresh questions about Washington’s authority to override state energy decisions. The ruling could affect challenges to similar orders covering six coal plants nationwide.

Federal Appeals Court Blocks Energy Department Order Keeping Michigan Coal Plant Open
WASHINGTON — A federal appeals court has struck down an Energy Department order requiring a Michigan coal plant to remain open, handing the Trump administration a major setback in its effort to extend the life of aging coal facilities through emergency powers. The U.S. Court of Appeals for the District of Columbia Circuit ruled Friday that Energy Secretary Chris Wright had not shown that federal intervention was justified when he ordered Consumers Energy to keep the J.H. Campbell plant operating in May 2025. The plant was scheduled to retire just days later. The court said the Federal Power Act provision used by the department is intended for genuine threats to electricity supplies requiring immediate federal action, such as wartime disruptions or natural disasters. It rejected the department’s broader interpretation, which could have allowed Washington to select favored power sources and compel their operation despite state planning procedures. “Our reading of the text, structure, and history leaves us unpersuaded by DOE’s sweeping conception of its ‘emergency’ authority,” Judge Cornelia Pillard wrote in the decision. Judges Sri Srinivasan and Robert Wilkins joined her opinion. All three judges were appointed by President Barack Obama. The order initially kept the Campbell plant online for 90 days, but the Energy Department repeatedly extended it. The administration has used similar emergency orders involving six coal plants across the country, with three other challenges pending before the D.C. Circuit. Michigan and Illinois, along with environmental organizations, challenged the Campbell order. Michael Lenoff, an Earthjustice attorney representing the challengers, called the decision a rejection of what he described as the administration’s misuse of emergency authority. “Preventing the market-driven retirements of coal plants to advance a coal-friendly agenda is not a proper use of emergency powers,” Lenoff said in a statement. The decision also lands in the middle of Michigan’s political fights over energy policy. Michigan Republicans initially welcomed the federal order, while Democrats have criticized the administration for intervening in a state-level decision. The ruling gives Democrats a legal victory as energy policy becomes an issue in races across the state. Consumers Energy said it is reviewing the decision but remains in compliance with the current 90-day Energy Department order keeping Campbell online. The utility said it would follow the law and ensure that customers benefiting from the plant’s electricity across the Midwest pay their fair share. The Justice Department declined to comment on the ruling. The administration could ask the Supreme Court to review the case, though no appeal had been announced as of Friday.

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