A U.S. Department of Energy emergency order aims to keep open a Michigan coal-fired power plant that primarily burns Wyoming coal and was scheduled to shut down Saturday.
It counteracts a Michigan state law that requires utilities in that state to phase out all coal-fired generation by 2030.
U.S. Energy Secretary Chris Wright's order directs Consumers Energy to ensure that its 1,560-megawatt J.H. Campbell coal-fired power plant in West Olive, Michigan, remains available for operation ahead of expected high summer electricity demand.
The plant, one of five operational coal-fired power plants in Michigan, was scheduled to shut down May 31.
The DOE’s emergency order is a significant move, but it remains unclear how the Campbell Plant's continued operation might impact Wyoming's coal industry, said Holly Krutka, executive director of the School of Energy Resources at the University of Wyoming.
Even so, the emergency order is “a serious action,” Krutka told Cowboy State Daily on Tuesday.
"It primarily consumes Wyoming coal," Krutka added. "The amount of coal consumed depends on the amount of electricity it is generating.
“Most power plants don't run at 100% capacity all the time, although many could, so I can't comment on how much coal this would consume if kept open through DOE's efforts. It is a very large power plant."
Matt Fry, director of the Center for Energy Regulation and Policy Analysis at UW, told Cowboy State Daily that the DOE’s order is generally good news for Wyoming’s coal producers, but not a game-changer.
“Certainly, any opportunity to produce and sell more coal is beneficial for Wyoming,” said Fry. “In this case, it is only a 90-day extension of their planned retirement date.
“So, if they burn Wyoming coal, it can be viewed as a positive for our coal producers, but would not likely have a significant fiscal impact to the state.”
Peabody Energy and Core Natural Resources (formerly Arch) control a huge slice of Wyoming’s coal production, as shown by both companies in their 2025 first-quarter earnings reports.
Together, their five PRB mines produced a little more than 32 million tons of coal in the first three months of the year, which is nearly 66% of the basin’s entire 49 million tons sold. They also account for 63% of the 3,477 coal mining jobs in the basin with 2,190 workers.
In response to the recent DOE emergency order, Peabody Energy told Cowboy State Daily that it does supply power plants in Michigan, but not the Campbell Plant.
“We agree with the administration that coal is essential at a time of growing U.S. and global energy needs,” Peabody said in a statement. “To support our country’s growing needs for affordable, reliable energy, we believe the U.S. should halt coal plant retirements, use existing plants at higher utilization and restart shuttered coal plants.”
Zero Carbon Rollback
The DOE’s emergency order aimed at the Campbell Plant is part of a larger effort by the Trump administration and energy-producing states like Wyoming to challenge state laws mandating the retirement of coal plants.
In April, the governors of Wyoming, Idaho and Utah discussed decoupling their states from California, Oregon and Washington when it comes to energy policy — including plans to totally phase out electricity generated by coal.
Likewise, the DOE order puts a wedge between federal priorities and those spelled out in Michigan law.
"Today's emergency order ensures that Michiganders and the greater Midwest region do not lose critical power generation capability as summer begins and electricity demand regularly reach high levels," Secretary Wright said in a May 23 statement announcing the order. "This administration will not sit back and allow dangerous energy subtraction policies threaten the resiliency of our grid and raise electricity prices on American families."
Michigan's Public Act 235 establishes a clean energy standard of 100% by 2040, while also setting renewable energy standards of 50% by 2030 and 60% by 2035. The state's MI Healthy Climate Plan calls for phasing out remaining coal-fired power plants by 2030, making the federal intervention a direct challenge to Michigan's timeline.
"The unnecessary recent order from the U.S. Department of Energy will increase the cost of power for homes and businesses in Michigan and across the Midwest," said Dan Scripps, chairman of the Michigan Public Service Commission, in a May 24 statement responding to the federal move.
"Michigan is proud of its robust approach to resource planning which balances reliability and affordability,” added Scripps. “We currently produce more energy in Michigan than needed. As a result, there is no existing energy emergency in Michigan.”
Consumers Energy, which operates the Campbell Plant, said it would comply with the federal directive despite its previous commitment to exit coal generation.
"Consumers Energy plans to comply with the Department of Energy order," said Brian Wheeler, a spokesman for the utility. "We are pausing decommissioning activities at the Campbell Plant and will operate it in compliance with the order.”
The emergency order was issued under section 202(c) of the Federal Power Act, which allows the Energy Secretary to require temporary connections and generation during emergencies or sudden increases in demand for electricity. The order aligns with President Trump's executive order declaring a National Energy Emergency.
Win For Locals?
A local advocacy group called "Save the Campbell" had been working to prevent the plant's closure, arguing that Michigan's transition to renewable energy could lead to higher electricity costs and grid instability.
The group warned that continuing on the current clean energy trajectory could result in expensive electricity imports and potential shortages by 2032, comparing Michigan’s energy policy to the net zero push by the United Kingdom.
"The UK is much further down the net zero path than we are, but for the most part they have thus far avoided blackouts and load shedding,” the group stated in response to the recent DOE order. “However, the UK has experienced rapidly rising electric prices and a tenuous grid.”
From the point of view of the Michigan Public Service Commission, retiring the Campbell Plant 15 years before the end of its scheduled design life does not put electricity consumers at risk of blackouts.
The Public Service Commission said it would continue to work with Consumers Energy, “To assess the impacts of the DOE's order and work to limit unnecessary cost increases imposed as a result of this order."
In Michigan, said Matt Helms, public information officer with the Michigan Public Service Commission, reducing the state’s carbon footprint remains a priority.
“The goal is to eventually bring Michigan to carbon neutral electricity generation and replacing coal with other sources of energy is a big part of that," Helms told Cowboy State Daily on Tuesday.
David Madison can be reached at david@cowboystatedaily.com.
