US appeals court rejects DOE order keeping Michigan coal plant online

A federal appeals court on Friday threw out a Trump administration order that had compelled a Michigan coal plant to keep operating beyond its scheduled retirement, finding that the Department of Energy had exceeded its legal authority.

The unanimous decision by a three-judge panel of the US Court of Appeals for the District of Columbia Circuit held that the department went beyond the bounds of a rarely used emergency provision of federal law, according to court papers.

The dispute arose after the Energy Department instructed the plant in 2025 to remain online shortly before it was due to close. Michigan subsequently challenged that directive.

The ruling marks a setback for the administration's broader push to keep coal-fired generation running as US electricity demand climbs, driven in part by the expansion of data centers. Coal-fired power remains among the largest sources of carbon dioxide emissions linked to climate change.

Since 2025, the administration has invoked emergency powers under the Federal Power Act to keep several aging plants slated for retirement in service, including coal facilities in Michigan, Indiana, Washington state and Colorado.

The Energy Department did not immediately respond to a request for comment.

Friday's decision came a month after the department extended its emergency order to keep the J.H. Campbell Generating Plant open through November 14.

The Consumers Energy plant had been set to close in 2025 because it was no longer economic. Its continued operation under the order cost the utility $295 million from May 2025 through June 2026, according to the Michigan attorney general's office.

Consumers Energy spokesperson Brian Wheeler said the company is reviewing the ruling. "While that happens, we are continuing to comply with the current 90-day Department of Energy order that keeps the Campbell plant operating," he said.

A spokesperson for Michigan's attorney general did not immediately respond to a request for comment.

Michael Lenoff, an attorney with the environmental group Earthjustice, said in a statement that the department should confine its emergency powers to genuine emergencies. "Preventing the market-driven retirements of coal plants to advance a coal-friendly agenda is not a proper use of emergency powers," he said.