Court blocks extended order on Michigan coal plant

On Sept. 11, 2026, the U.S. Court of Appeals for the D.C. Circuit ruled that the Energy Department exceeded its authority when it ordered Consumers Energy Co.’s J.H. Campbell coal-fired power plant in West Olive, Michigan, to stay online past its planned May 2025 retirement date. A three-judge panel concluded that the department’s use of emergency powers could not justify keeping the aging coal plant in operation on an extended basis.

The decision directly invalidates the federal directive that had compelled the plant to continue running despite retirement plans. It marks a legal limit on how far the department can go in directing individual generation assets to remain in service under emergency authority.

The Energy Department had relied on a provision of the Federal Power Act that allows emergency orders for power plants in limited circumstances. At the Campbell plant, this provision was used to declare an “energy emergency” and require continued operation beyond May 2025. What had been designed for short-term crises was applied repeatedly at this facility.

Emergency orders for the J.H. Campbell plant were first issued in May 2025 and then renewed every 90 days for more than a year. This pattern turned what is typically a temporary measure into a sustained mandate for the plant to keep generating power.

The ruling removes the legal basis for the Energy Department’s extended emergency directive at the West Olive coal plant. The J.H. Campbell facility had been operating under federal compulsion despite plans to retire by May 2025. With the court finding that the department overstepped its authority, that compelled operation is no longer supported by the contested emergency orders.

The case centered on the tension between the plant’s planned retirement and the federal government’s attempt to ensure additional generating capacity through emergency tools. By siding against the extended emergency orders, the court reinforces the importance of established retirement schedules when not supported by a properly justified emergency.

The J.H. Campbell plant is one of several coal facilities that the Energy Department had required to stay open through similar emergency orders. The ruling therefore resonates beyond a single Michigan site, as it scrutinizes the department’s broader strategy of using emergency powers to delay coal plant closures.

Media coverage has characterized the decision as a setback for the administration’s effort to keep aging coal-fired units from retiring. By narrowing how emergency authority can be applied, the ruling places constraints on future attempts to use the Federal Power Act to maintain operations at plants slated for closure.