Federal appellate judges ruled that the U.S. Department of Energy overstepped its authority when it ordered Consumers Energy's J.H. Campbell coal plant in Michigan to keep operating after its approved retirement date. The plant was set to close in May 2025 as part of the utility's plan to cut carbon emissions, but DOE extended emergency orders six times, most recently through November 2026. The court said states, not federal agencies, are responsible for deciding which generation resources retire. The ruling could affect similar DOE orders at coal plants in other states. Earthjustice, which intervened in the Michigan case, says the agency issued orders to six plants in five states. Michigan officials also noted that keeping Campbell online has already added roughly $295 million in costs that the utility may seek to recover from MISO ratepayers. Whether Consumers Energy now proceeds with the original closure plan is still open. The court settled the legal question around DOE's emergency authority, but the utility and grid operators still need to confirm the plant can be retired without creating reliability gaps.
