The Department of Energy’s emergency order delays a scheduled plant closure in West Olive, sparking protests and potential cost increases for Michigan utility customers.

Ratepayer Fallout: Federal Move Forces West Olive Coal Plant to Stay Online

The U.S. Department of Energy issued an emergency order on May 23, 2025, mandating the continued operation of the J.H. Campbell coal-fired power plant in West Olive, Michigan, despite its planned retirement at the end of the month. The decision has ignited controversy, with critics calling the move an unjustified burden on Michigan utility customers.

The plant, owned by Consumers Energy, was scheduled to cease operations on May 31, 2025, as part of the utility’s transition toward cleaner energy. Instead, under the direction of Secretary of Energy Chris Wright, the plant will remain operational under emergency powers authorized by the Federal Power Act.

Emergency Powers Used to Override Michigan Energy Transition Plans

The Department of Energy’s order is reportedly based on a national energy emergency declared by former President Donald Trump. The justification used to keep the Campbell plant running has been characterized by advocacy groups as fabricated and politically motivated.

“This is a radical abuse of the Federal Power Act’s emergency authorities,” said Tyson Slocum, director of Public Citizen’s Energy Program, in a statement released the same day. “Forcing ratepayers in Michigan to pay to keep the inefficient, expensive, and polluting J.H. Campbell coal power plant operational… serves no purpose beyond attempting to prop up the dying coal industry.”

According to the DOE’s directive, Consumers Energy is expected to file a cost recovery application with the Federal Energy Regulatory Commission (FERC). This move could pass financial responsibility to ratepayers, potentially increasing utility bills across the state.

Critics Warn of Financial and Environmental Costs for Michigan Residents

Michigan ratepayers may bear the cost of operating a facility that was deemed economically and environmentally unsustainable. The Campbell plant, which has been a major carbon emitter in the region, was on track for decommissioning as part of Consumers Energy’s commitment to reduce coal use and shift to renewables by 2040.

“This decision could impact thousands of Michigan households already struggling with high energy bills,” said Slocum. Public Citizen has announced plans to file a formal protest at FERC, challenging the order and demanding oversight into what it describes as “an outrageous abuse of emergency authorities.”

Environmental groups have long targeted the Campbell plant as one of Michigan’s most polluting facilities. The plant emits an estimated 7.5 million tons of carbon dioxide annually, according to EPA data from its last full year of operation.

Energy Policy Clash Brings Federal-State Tensions to the Forefront

This action highlights growing tensions between federal energy policy under the Trump Administration and Michigan’s long-term environmental goals. While the federal government claims energy security concerns justify the move, state officials have not publicly confirmed any emergency need for the plant to remain online.

The lack of transparency around the emergency declaration has also raised concerns. Neither the DOE nor the Trump administration has released supporting data indicating a credible threat to grid reliability that would necessitate the Campbell plant’s continued use.

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