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Michigan sues Trump administration over order keeping its last coal plant alive

It is an important test of how far emergency energy powers can be used.

Smoke rises from cooling towers and chimneys from a coal plant against a sunset sky, symbolizing industrial activity.

Photo Credit: iStock

Michigan is taking the Trump administration to federal court over an order that would force the state's last coal plant to keep operating past its planned retirement date.

The dispute centers on the J.H. Campbell plant in West Olive, which state officials already plan to replace. The Michigan Attorney General's office filed a brief this week in the U.S. Court of Appeals challenging an emergency order from the U.S. Department of Energy requiring Consumers Energy to keep the Campbell coal plant online, per MLive.

The West Olive plant is Consumers Energy's last coal-fired facility. It was set to retire under the utility's clean energy plan, but the Trump administration moved to extend its operation, arguing the step is necessary to protect regional grid reliability as electricity demand grows.

Michigan has argued the order, which has been extended three times now, is unlawful and disregards the state's energy planning process, which it says had already accounted for replacement power. 

Consumers Energy has also intervened in the lawsuit, saying continued operation would cause millions of dollars in losses. Specifically, Consumers Energy has said that it has lost nearly $575,000 daily since May 23 of last year by running the outdated plant, and also that these costs will likely ultimately be pushed onto ratepayers.

The Department of Energy has defended the extension by citing recent grid-stress events and rising demand, including from data centers. But Michigan officials say the regional grid operator, MISO, did not request the emergency action.

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Michigan is now asking the court to block the federal order, arguing that state regulators had already approved a path to retire the coal plant without threatening reliability. The case is now an important test of how far emergency energy powers can be used.

The case is especially relevant as the Trump administration has ordered coal plants in at least three other states to stay online.

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