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Court voids DOE order keeping Michigan coal plant open

Court voids DOE order keeping Michigan coal plant open

Rule Changes Grand Rapids, MI local

Unanimous ruling finds the agency stretched an emergency power meant for short-term crises to block a state-approved shutdown

Yesterday: DC Circuit vacates the DOE order

Overview

Updated 2 hours ago

A federal appeals court canceled the Department of Energy's order forcing an aging Michigan coal plant to keep running. The unanimous decision said the agency used an emergency power meant for short-term crises to override a retirement plan approved by the plant's owner, Michigan regulators, and the regional grid operator.

The J.H. Campbell plant in West Olive was supposed to shut down May 31, 2025. DOE extended its order five times, most recently requiring operation through Nov. 14, 2026. The ruling gives states and utilities a stronger hand in challenges to similar coal-plant orders tied to data-center electricity demand.

Why it matters

The Energy Department can no longer override state-approved plant retirements just by declaring an emergency—a tool it used to keep coal plants running.

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Key Indicators

540
Days of forced operation authorized by DOE orders
The original 90-day order plus five 90-day extensions. The sixth order required the plant to run through Nov. 14, 2026, until the court vacated the original order Sept. 11.
5
Extensions of the original emergency order
Each extension added roughly 90 days. The sixth order required operation through Nov. 14, 2026.
3
States that filed challenges to the order
Michigan, Illinois, and Minnesota petitioned for review.

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People Involved

Chris Wright
Chris Wright
Secretary of Energy
Head of DOE while the order was issued and defended
 Cornelia Pillard
Cornelia Pillard
Circuit Judge, US Court of Appeals for the DC Circuit
Wrote the unanimous opinion vacating the order

Organizations Involved

U.S. Department of Energy
U.S. Department of Energy
Federal agency
Issued the emergency order; lost this case on appeal

The federal agency that used emergency powers to force coal plants to keep operating.
Consumers Energy
Consumers Energy
Utility
Plant owner that planned and sought the retirement

Owns and operates the J.H. Campbell Generating Plant in West Olive, Michigan.

Timeline

May 2025 September 2026

7 events Latest: Yesterday
Tap a bar to jump to that date

  1. DC Circuit vacates the DOE order

    Latest Legal

    Unanimous panel rules DOE exceeded its emergency authority; no fix on remand possible.

  2. Michigan AG says DOE's sixth order runs Campbell through Nov. 14

    Legal

    Responding to the court's ruling, Attorney General Dana Nessel said DOE had extended its order five times and that the sixth order required the plant to operate until Nov. 14, 2026.

  3. Fourth extension reaches 450 days

    Regulatory action

    Total forced operation hits 450 days under the emergency order.

  4. Third extension of the order

    Regulatory action

    DOE extends order a third time, citing persistent conditions.

  5. Second extension keeps Campbell running

    Regulatory action

    DOE again extends forced operation into winter months.

  6. First extension of emergency order

    Regulatory action

    DOE extends the 90-day order, citing continued emergency conditions.

  7. DOE issues emergency order for Campbell plant

    Regulatory action

    Agency invokes Federal Power Act Section 202(c) eight days before Campbell's scheduled retirement.

Scenarios

1

Campbell plant retires, DOE drops the fight

Likely Resolves by Q1 2027

Discussed by: CleanTechnica, Environmental Defense Fund

With the order vacated and the court saying no fix is possible on remand, Consumers Energy proceeds with the decommissioning it planned for years. The plant shuts down, and the company turns to separate proceedings at the Federal Energy Regulatory Commission to recover the costs of forced operation.

2

Courts extend ruling to other coal plants under emergency orders

Likely Resolves by Q3 2027

Discussed by: RTO Insider, Power Magazine

The DC Circuit decision is binding precedent within the circuit. Utilities and states facing similar Section 202(c) orders cite it in their challenges, and courts either vacate those orders or DOE withdraws them rather than litigate.

3

Supreme Court takes the case and reverses

Unlikely Resolves by Q2 2028

Discussed by: Reuters, AP

DOE petitions for Supreme Court review, arguing the DC Circuit cramped its authority under the Federal Power Act. The Court would need to read the emergency provision more broadly than the appeals court did—a difficult lift given the court's finding that the agency's interpretation conflicts with the statute's plain text.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

April–June 1952

Youngstown Sheet & Tube v. Sawyer (1952)

President Truman ordered the federal government to seize steel mills to prevent a strike he said would cripple Korean War production. He cited his powers as commander in chief without explicit congressional authorization.

Then

The Supreme Court ruled 6–3 that the president lacked authority to seize private industry, and operations returned to the companies.

Now

Youngstown became a foundational precedent limiting presidential power, establishing that the executive cannot manufacture emergencies to override statutes.

Why this matters now

Like Youngstown, this case tests whether an administration can use emergency powers to force private industry to act against approved plans and established law.

February 2021

DOE emergency orders during Texas winter storm (2021)

During Winter Storm Uri, the Department of Energy issued Section 202(c) orders to keep certain generators running and relax emissions limits. The orders were tied to a genuine, short-lived crisis that left millions without power.

Then

The orders helped some plants operate during rolling blackouts.

Now

The episode showed 202(c) working as a short-term crisis tool used for days, not as a multi-year policy instrument.

Why this matters now

The DC Circuit contrasted this history with DOE's 450-day compulsion of the Campbell plant, which had no sudden emergency at its base.

February–June 2022

West Virginia v. EPA (2022)

The Supreme Court ruled the Environmental Protection Agency exceeded its authority when it set generation-shifting rules without clear congressional approval, invoking the major questions doctrine.

Then

The Court limited EPA's ability to reshape electricity generation through broad readings of its statutes.

Now

The decision reinforced that agencies need explicit congressional authorization for decisions with major economic and political weight.

Why this matters now

Both cases confine federal agencies to their statutory lanes when their actions reach into energy policy that states traditionally control.

Sources

(14)
+8
US Court of Appeals for the District of Columbia Circuit Reuters Environmental Defense Fund RTO Insider Power Magazine Associated Press via CBS17 CleanTechnica MLive Law360 Reddit r/energy Michigan Department of Attorney General Al Jazeera The Guardian Utility Dive