A federal appeals court on Friday overturned a Department of Energy order that required a Michigan coal power plant to continue operations past its intended retirement date. The unanimous ruling from a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that the agency had exceeded its legal authority. The court determined that the situation did not constitute a valid emergency under the federal statutes cited by the administration.
The J.H. Campbell Generating Plant, a 64-year-old facility operated by Consumers Energy, was originally scheduled to close in May 2025 because it was no longer economical to operate. Following the plant's planned retirement, the Department of Energy (DOE) issued emergency orders under the Federal Power Act to keep the facility online, citing the need to ensure regional electricity reliability. Michigan Attorney General Dana Nessel, along with the states of Illinois and Minnesota and several environmental groups, challenged these orders in court.
Judge Cornelia Pillard wrote for the panel that the emergency provision of the Federal Power Act is a "narrow, last-resort backstop" and that reversing a "long and carefully planned retirement" was disruptive without a statutory emergency. The DOE recently extended the order to keep the plant open through November 14. A DOE spokesperson did not comment on the ruling but called the emergency orders essential to keeping the lights on during times of elevated demand.
The decision establishes a legal precedent regarding how the executive branch uses emergency powers under the Federal Power Act. While the Trump administration has used emergency orders to keep roughly a half-dozen other aging coal and gas plants open in states including Indiana, Colorado, Washington, Florida, and Pennsylvania, this ruling signals that such maneuvers may be legally vulnerable. Environmental groups stated that the continued operation of these plants contributes to air and water pollution and carbon dioxide emissions that would have otherwise ceased upon the scheduled retirements.
What happens next depends on whether the Department of Energy or the utility appeals the decision and how the ruling is applied to the current 90-day order active through November 14. Consumers Energy stated it is currently reviewing the ruling while continuing to comply with the existing order to keep the plant running. Legal representatives for environmental groups indicated they intend to continue challenging similar emergency extensions at other power plants across the country.