Department of Energy Prolongs Order for Postponing Shutdown of Consumers' Michigan Coal Power Plant
The U.S. Department of Energy (DOE) has issued an emergency order for Consumers Energy to continue operating the J.H. Campbell power plant in West Olive, Michigan, until November 19, 20xx. This order comes as a continuation of the initial emergency order that expired on August 21.
The J.H. Campbell power plant produced 664,000 MWh in June, running at a 61% capacity factor, according to DOE data. In 2024, the power plant produced 7.9 million MWh, as stated in Consumers Energy's annual report.
The Federal Energy Regulatory Commission (FERC) initially ordered the continuation of the J.H. Campbell coal power plant under an emergency order. FERC determined that the costs of keeping the power plant online will be shared across MISO's northern and central regions.
The order directs the Midcontinent Independent System Operator (MISO) and Consumers Energy to continue operating the coal-fired power plant. In the first 38 days of the DOE order, Consumers Energy spent $29 million to keep the J.H. Campbell power plant online.
MISO has issued "dozens" of alerts to manage grid reliability in its central region between June 11 and August 18. The evidence indicates that there is also a potential longer-term resource adequacy emergency in MISO, beyond the summer season.
However, the DOE's initial emergency order and the contention that MISO faces an emergency are being challenged in court by Michigan's attorney general and a coalition of groups, including the Sierra Club and Earthjustice. The Trump administration is expected to prevent significant fossil-fueled power plants from retiring, which could escalate the legal challenges.
A report from Grid Strategies predicts that the cost to ratepayers could grow to $5.9 billion in 2028, depending on how many power plants DOE orders to keep running under its Federal Power Act section 202(c) authority. The DOE has also directed Constellation Energy to keep operating two units at its Eddystone power plant near Philadelphia.
The continuation of the J.H. Campbell power plant's operation raises questions about the future of coal-fired power plants and the role of the DOE in grid reliability during emergencies. As the legal challenges unfold, the future of the J.H. Campbell power plant remains uncertain.
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