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Advocates warn of concerning tactic used by government to revive dying industry: 'We currently produce more ... than needed'

"There is no 'energy emergency' here — just a payday for the coal industry."

"There is no 'energy emergency' here — just a payday for the coal industry."

Photo Credit: iStock

An advocacy group has accused the Trump administration of manufacturing an energy emergency in order to shore up the struggling coal industry, including keeping the doors open at one to-be-shuttered Michigan plant.

A state agency has meanwhile backed the position that Michigan is not currently experiencing an energy shortage, as the administration contends.

What's happening?

Following his inauguration in January, United States President Donald Trump signed a flurry of executive orders to propel his administration's agenda. This included the declaration of an emergency that the White House said stemmed from the energy industry being "far too inadequate to meet our Nation's needs."

Four months later, Canary Media reported, U.S. Secretary of Energy Chris Wright issued his own emergency order. This, he said in a May 23 statement, would "[ensure] that Michiganders and the greater Midwest region do not lose critical power generation capability as summer begins and electricity demand regularly reach high levels."

As a part of Wright's order, the Midcontinent Independent System Operator was set to work in coordination with Consumers Energy to keep the J.H. Campbell coal-fired power plant in West Olive, Michigan, operational for at least 90 days beyond its intended closure. The 1,560 megawatt plant was originally slated to shut down on May 31.

While the Energy Secretary's order will keep the plant up and running for now, some have questioned how the plant's operations will be funded. It sounds like some specifics about who exactly will bear the costs associated with keeping J.H. Campbell open are still fuzzy, with MLive recently reporting that experts and regulators say "utility customers will ultimately be the ones to pay it."

Others have pointed to the impacts that coal as an energy source could continue to have on the environment. J.H. Campbell is Consumers Energy's last coal-fired plant in Michigan. Grand Rapids' WOOD TV 8 reported in April that the company has been transitioning to renewable energy. 

Why is this notable?

In a May 23 press release from the Sierra Club, an environmental organization, senior attorney Greg Wannier pointedly accused the current administration of executive overreach. "Donald Trump invoking the Federal Power Act is an illegal abuse of his presidential authority," Wannier said in a statement, per Canary.

The Federal Power Act is the "primary federal statute governing the wholesale transmission and sale of electric power." Enacted in 1920, the FPA was initially focused on coordinating the development of hydroelectric projects. Over time, it has been amended to an expanded scope, including its regulation of electricity markets in an effort to protect consumers.

"If Trump's made-up energy emergency had an ounce of truth to it, he wouldn't be banning wind energy and canceling renewable energy projects," added Wannier.

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What's being done about it?

According to Canary, the FPA is typically enforced when the Federal Energy Regulatory Commission determines that there is a need to ensure grid reliability. This can include during a war in which the United States is actively engaged or when an emergency causes a sudden shortage of electric energy.

State Republicans say keeping the plant open is critical to the grid, and the Trump administration has stood by its order and desire to "[unleash] American energy."

Meanwhile, Michigan Public Service Commission chairman Dan Scripps told the Detroit Free Press in late May, "We currently produce more energy in Michigan than needed."

Relatedly, a March news release from the MPSC noted that DTE Electric and Consumers Energy customers reported drops in power outage minutes and the time required to restore power in 2024.

Back in April, before Wright's order, the Ottawa County Board of Commissioners had previously voted not to pursue legal action against Consumers Energy to stop the plant closure. Now MLive reports that, separately, there could be a legal challenge to the Energy Secretary's emergency order.

Meanwhile, environmental advocates have continued to speak out. Sierra Club Michigan campaign organizer Bryan Smigielski offered up his take on the plant's extended lifespan.

"Don't be fooled: there is no 'energy emergency' here," Smigielski noted in a statement. "Just a payday for the coal industry that leaves us with higher bills and dirtier air."

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