By Nichola Groom
Sept 11 (Reuters) - A federal appeals court threw out a Trump administration order on Friday that had forced a Michigan coal plant to remain open beyond its planned retirement.
The unanimous ruling by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found the Department of Energy exceeded its authority under a rarely used emergency provision of federal law, according to court papers.
Michigan challenged the order after DOE instructed the plant in 2025
to remain online shortly before its planned closure.
The ruling is a setback for the administration's efforts to preserve coal-fired generation amid soaring U.S. demand for electricity tied to the expansion of data centers. Coal-fired power is among the largest sources of carbon dioxide emissions that contribute to climate change.
Since 2025, the Trump administration has used emergency powers under the Federal Power Act to keep several aging power plants slated for retirement operating, including coal plants in Michigan, Indiana, Washington state and Colorado.
DOE did not immediately respond to a request for comment.
The decision comes a month after DOE extended the emergency order to keep the aging J.H. Campbell Generating Plant open through November 14.
The Consumers Energy plant had been slated to close in 2025 because it was no longer economic. Its continued operation under the order cost the utility $295 million from May 2025 through June 2026, according to the Michigan attorney general's office.
Consumers Energy is reviewing the ruling, spokesperson Brian Wheeler said.
"While that happens, we are continuing to comply with the current 90-day Department of Energy order that keeps the Campbell plant operating," he said.
A spokesperson for Michigan's attorney general did not immediately respond to a request for comment.
“The DOE needs to stay in its lane and use its emergency powers only in actual emergencies," Michael Lenoff, an attorney with environmental group Earthjustice, said in a statement. "Preventing the market-driven retirements of coal plants to advance a coal-friendly agenda is not a proper use of emergency powers."
(Reporting by Nichola GroomEditing by Rod Nickel)
