Latest news with #coalplant
CNN
4 days ago
- Business
- CNN
The Trump admin ordered a coal power plant to stay on past retirement. Customers in 15 states will foot the bill
An aging coal power plant that was supposed to shutter last week will run throughout the summer at the order of President Donald Trump's Energy Sec. Chris Wright, a decision that could cost Midwest energy customers tens of millions of dollars. The last-minute federal order to keep the J.H. Campbell plant operating came as a surprise to Michigan officials, including the head of the state's Public Service Commission, given it was at the tail end of a multi-year retirement process that was approved in 2022. 'The grid operator hadn't asked for this, the utility hadn't asked for this, we as the state hadn't asked for this,' said Dan Scripps, chair of the Michigan Public Service Commission. 'We certainly didn't have any conversations with the (Energy Department) in advance of the order, or since.' Wright's May 23 emergency order cited concerns the Midwest could face a summer electricity shortage due to a lack of available coal, gas and nuclear plants that can provide stable baseload power. But Consumers Energy, the utility that owns the coal plant, told CNN in an email it already purchased another natural gas-fired power plant to carry the load when the coal plant went offline. Scripps said the cost to keep the over-60-year-old plant operating, even for 90 days, will be high, and customers in 15 states will foot the bill. 'I can say with a pretty high degree of confidence that we're looking at multiple tens of millions of dollars at the low end,' Scripps said. 'I think there's a range between there and the high end of getting close to $100 million.' It's unclear so far what that will mean for individual electricity bills, Scripps added, given the uncertainty about final cost. 'For years, American grid operators have warned decommissioning baseload power sources such as coal plants would jeopardize the reliability of our grid systems, which has raised alarm bells,' Energy Department spokesperson Ben Dietderich said in a statement. Dietderich didn't say whether the Energy Department had conducted a cost analysis before issuing the emergency order. It's unclear whether the department realized the company already had a plan to maintain baseload power after its closure. Wright issued another emergency order last week to keep a Pennsylvania power plant that runs on natural gas and oil open past its May 31 retirement date. Coal is the dirtiest fuel large plants still burn for electricity, and it's now the most expensive as renewable energy sources like solar have become increasingly cost-effective. Although natural gas is a fossil fuel and contributes significantly to warming the planet, it is still considered a cheaper and less-polluting option. Gas generates 43% of the country's electricity. Michigan Attorney General Dana Nessel said she is considering legal action against the federal government. Nessel and energy experts said such an emergency order from the federal government is extremely rare and usually reserved for the aftermath of severe storms or natural disasters. 'This is a novel case for us,' Nessel said. 'We've not had to do this before.' She reiterated keeping the plant open would 'significantly' raise electricity rates, saying, 'The whole point of closing this plant down was to save money.' More electric utilities are retiring their coal plants because they are old and especially expensive to run. In 2021, the average coal-fired power plant was 45 years old, according to a report from the Energy Information Administration. The Energy Department's order didn't specify exactly how much the Michigan coal plant should run, saying it was requiring the utility to 'take all measures necessary to ensure that the Campbell Plant is available to operate.' Scripps and energy experts said that means the coal plant would likely run continuously at a lower level throughout the summer, or until Wright's order ends. Unlike gas plants, coal plants can't be easily turned on and off with the flip of a switch and take time to ramp up and come online. The Campbell plant is so old — it has been operating since 1962 — that Michigan energy regulators feared it could not physically turn back on once it was powered off. The utility will also have to buy more coal to keep it going. Consumers Energy said it has 'arranged for new shipments of coal to keep the plant operating.' A new report from think tank Energy Innovation found the cost of coal-fired power has grown faster than inflation in the last few years — collectively costing US consumers $6.2 billion more in 2024 than it would have cost in 2021. 'Even existing coal where it has fully depreciated and been paid off, the cost of coal is more than solar and storage at this point,' said Doug Lewin, a Texas based energy expert who authors the Texas Energy and Power Newsletter and host of the Energy Capital Podcast. Lewin covers the energy transition in deep red Texas, where power companies are building wind, solar and battery storage at an incredible pace. Of the significant amount of new electricity added to the Texas grid in the last four years, 92% has been wind, solar and storage, Lewin said. That has paid dividends, keeping energy prices relatively low and meeting the state's exploding power demand from air conditioning, data centers and big industry. 'All throughout the summer months, you're getting maximum solar output,' Lewin said. 'It's very well correlated to peak demand. For a place with massive AC load like Texas, it's fantastic.' Texas has also invested a lot in big batteries that can keep power flowing to the grid after the sun stops shining and the wind stops blowing. Energy Sec. Wright, however, has panned renewables, saying they are not a reliable replacement for fossil fuels. 'There is simply no physical way that wind, solar and batteries could replace the myriad uses of natural gas,' he said at Houston energy conference CERAWeek in March. 'I haven't even mentioned oil or coal yet.' • Trump EPA drafting a rule that would undo decades of progress on limiting pollution from power plants • The jobs and tax credits that could disappear if the 'big, beautiful' bill passes the Senate • A polluting, coal-fired power plant found the key to solving America's biggest clean energy challenge
CNN
4 days ago
- Business
- CNN
The Trump admin ordered a coal power plant to stay on past retirement. Customers in 15 states will foot the bill
An aging coal power plant that was supposed to shutter last week will run throughout the summer at the order of President Donald Trump's Energy Sec. Chris Wright, a decision that could cost Midwest energy customers tens of millions of dollars. The last-minute federal order to keep the J.H. Campbell plant operating came as a surprise to Michigan officials, including the head of the state's Public Service Commission, given it was at the tail end of a multi-year retirement process that was approved in 2022. 'The grid operator hadn't asked for this, the utility hadn't asked for this, we as the state hadn't asked for this,' said Dan Scripps, chair of the Michigan Public Service Commission. 'We certainly didn't have any conversations with the (Energy Department) in advance of the order, or since.' Wright's May 23 emergency order cited concerns the Midwest could face a summer electricity shortage due to a lack of available coal, gas and nuclear plants that can provide stable baseload power. But Consumers Energy, the utility that owns the coal plant, told CNN in an email it already purchased another natural gas-fired power plant to carry the load when the coal plant went offline. Scripps said the cost to keep the over-60-year-old plant operating, even for 90 days, will be high, and customers in 15 states will foot the bill. 'I can say with a pretty high degree of confidence that we're looking at multiple tens of millions of dollars at the low end,' Scripps said. 'I think there's a range between there and the high end of getting close to $100 million.' It's unclear so far what that will mean for individual electricity bills, Scripps added, given the uncertainty about final cost. 'For years, American grid operators have warned decommissioning baseload power sources such as coal plants would jeopardize the reliability of our grid systems, which has raised alarm bells,' Energy Department spokesperson Ben Dietderich said in a statement. Dietderich didn't say whether the Energy Department had conducted a cost analysis before issuing the emergency order. It's unclear whether the department realized the company already had a plan to maintain baseload power after its closure. Wright issued another emergency order last week to keep a Pennsylvania power plant that runs on natural gas and oil open past its May 31 retirement date. Coal is the dirtiest fuel large plants still burn for electricity, and it's now the most expensive as renewable energy sources like solar have become increasingly cost-effective. Although natural gas is a fossil fuel and contributes significantly to warming the planet, it is still considered a cheaper and less-polluting option. Gas generates 43% of the country's electricity. Michigan Attorney General Dana Nessel said she is considering legal action against the federal government. Nessel and energy experts said such an emergency order from the federal government is extremely rare and usually reserved for the aftermath of severe storms or natural disasters. 'This is a novel case for us,' Nessel said. 'We've not had to do this before.' She reiterated keeping the plant open would 'significantly' raise electricity rates, saying, 'The whole point of closing this plant down was to save money.' More electric utilities are retiring their coal plants because they are old and especially expensive to run. In 2021, the average coal-fired power plant was 45 years old, according to a report from the Energy Information Administration. The Energy Department's order didn't specify exactly how much the Michigan coal plant should run, saying it was requiring the utility to 'take all measures necessary to ensure that the Campbell Plant is available to operate.' Scripps and energy experts said that means the coal plant would likely run continuously at a lower level throughout the summer, or until Wright's order ends. Unlike gas plants, coal plants can't be easily turned on and off with the flip of a switch and take time to ramp up and come online. The Campbell plant is so old — it has been operating since 1962 — that Michigan energy regulators feared it could not physically turn back on once it was powered off. The utility will also have to buy more coal to keep it going. Consumers Energy said it has 'arranged for new shipments of coal to keep the plant operating.' A new report from think tank Energy Innovation found the cost of coal-fired power has grown faster than inflation in the last few years — collectively costing US consumers $6.2 billion more in 2024 than it would have cost in 2021. 'Even existing coal where it has fully depreciated and been paid off, the cost of coal is more than solar and storage at this point,' said Doug Lewin, a Texas based energy expert who authors the Texas Energy and Power Newsletter and host of the Energy Capital Podcast. Lewin covers the energy transition in deep red Texas, where power companies are building wind, solar and battery storage at an incredible pace. Of the significant amount of new electricity added to the Texas grid in the last four years, 92% has been wind, solar and storage, Lewin said. That has paid dividends, keeping energy prices relatively low and meeting the state's exploding power demand from air conditioning, data centers and big industry. 'All throughout the summer months, you're getting maximum solar output,' Lewin said. 'It's very well correlated to peak demand. For a place with massive AC load like Texas, it's fantastic.' Texas has also invested a lot in big batteries that can keep power flowing to the grid after the sun stops shining and the wind stops blowing. Energy Sec. Wright, however, has panned renewables, saying they are not a reliable replacement for fossil fuels. 'There is simply no physical way that wind, solar and batteries could replace the myriad uses of natural gas,' he said at Houston energy conference CERAWeek in March. 'I haven't even mentioned oil or coal yet.' • Trump EPA drafting a rule that would undo decades of progress on limiting pollution from power plants • The jobs and tax credits that could disappear if the 'big, beautiful' bill passes the Senate • A polluting, coal-fired power plant found the key to solving America's biggest clean energy challenge
New York Times
4 days ago
- Business
- New York Times
Coal and Gas Plants Were Closing. Then Trump Ordered Them to Keep Running.
A 63-year-old coal-fired power plant was scheduled to permanently close its doors in Michigan on June 1. So was an oil- and gas-powered plant that was built in the 1960s in Pennsylvania. But at the last minute, the Trump administration ordered both to stay open. The orders came as it pursues a far-reaching plan to boost fossil fuels, including coal, by declaring a national 'energy emergency.' The grid operators in Michigan and Pennsylvania said they hadn't asked for the orders and hadn't planned on using the plants this summer. The costs to keep the plants open, which could total tens of millions of dollars, are expected to fall on consumers. Experts have said there's little evidence of a national energy emergency, and 15 states have sued to challenge President Trump's declaration, which was issued the day he took office. The emergency orders, which came last month, surprised the companies that operate the plants, and they are now scrambling to delay some workers' retirements and reverse nearly complete plans to shutter their facilities. In Michigan, the plant operator raced to buy enough coal to power operations. The episode marks a highly unusual use of the Energy Department's emergency powers under the Federal Power Act. In the past, the department has typically issued emergency orders at the request of regional grid operators to stabilize the power supply during extreme weather events and blackouts. Source: U.S. Energy Information Administration Note: 'Other' includes batteries, biomass, hydroelectric, solar, waste, and wind. Source: U.S. Energy Information Administration Want all of The Times? Subscribe.
Yahoo
24-05-2025
- Business
- Yahoo
Campbell coal plant's closure delayed 90 days with Energy Secretary's emergency order
The plant, operating since 1962, was originally scheduled to close partially in 2030 and wholly in 2040. But the utility announced in 2021 it was moving the plan up by 15 years for an operations end date of May 31, 2025. [Photo/Courtesy] U.S. Department of Energy Secretary Chris Wright issued an emergency order on Friday, May 23 — just eight days before the J.H. Campbell plant in Port Sheldon Township was scheduled to shut down, a plan that has been in place since 2021. The Ottawa County Board of Commissioners approved a resolution on in February urging Consumers Energy to delay the closure of the J.H. Campbell plant, however, it stopped short of filing a lawsuit in April. Consumers Energy previously said the plan for closure was vetted and approved from multiple stakeholders and regulatory agencies; it is unknown how much coal remains at the site to continue operations. PORT SHELDON TWP. — The long-planned closing of the coal-fired J.H. Campbell plant in Port Sheldon Township will be delayed at least 90 days after Trump Administration officials issued an emergency order directing Consumers Energy to remain 'available for operation' going into peak summer demand. U.S. Secretary of Energy Chris Wright issued the emergency order on Friday, May 23 — just eight days before the plant was scheduled to shut down, a plan that has been in place since 2021. The U.S. Department of Energy said the move is intended 'to minimize the risk of blackouts and address critical grid security issues in the Midwestern region of the United States ahead of the high electricity demand expected this summer.' Wright directed the Midcontinent Independent System Operator, or MISO, in coordination with Consumers Energy to ensure that the 1,560 megawatt plant to '[remain] available for operation, minimizing any potential capacity shortfall that could lead to unnecessary power outages.' '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,' Wright said in a prepared news release. The Energy Department said the emergency order, which is issued by the Office of Cybersecurity, Energy Security, and Emergency Response, is authorized by Section 202(c) of the Federal Power Act and is in accordance with President Trump's Executive Order: Declaring a National Energy Emergency to ensure that power generation availability in the region does not 'dip below 2024 capacity levels.' '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. With President Trump's leadership, the Energy Department is hard at work securing the American people access to affordable, reliable, and secure energy that powers their lives regardless of whether the wind is blowing, or the sun is shining.' On May 14, Consumers officials said the planned May 31 closure of the Campbell plant remained on track. After Wright issued the emergency order on Friday, however, the company said it would comply. 'Consumers Energy plans to comply with the 90-day pause from the Department of Energy. We are reviewing the executive action and the overall impact on our company,' Katie Carey, director of media relations for Consumers, said in a Friday statement to ONN. The emergency order came after a yearlong effort from a local grassroots organization petitioned Ottawa County officials to intervene in some way to prevent the closure of the Campbell plant. Read More: County poised to urge delay in closing Campbell as officials say plan likely won't change Organizers of the 'Save the Campbell' effort coalesced at the beginning of 2024 — mainly members of far-right fundamentalist groups such as Ottawa Impact, The Gideon 300 and the Ottawa County GOP — said a government-owned electric co-op was possible if voters approved a 'home rule charter' at the ballot box. The issue was never put up for a vote, so a change in government structure is not forthcoming; however, local officials asked Consumers for reassurance earlier this year that local energy supplies will be uninterrupted as the Campbell plant headed for closure at the end of May. In February, the Ottawa County Board of Commissioners approved a resolution urging delay in the plant's closure, however, officials stopped short April 22 of opting to bring litigation to prevent the closure altogether. Commissioners pointed to two separate reports — from MISO as well as the North American Electric Reliability Corporation, or NERC — that gave them concerns over the energy grid's reliability once the Campbell is taken offline. MISO published the results of its annual survey in June 2024, which indicated at the time that there was 'a growing capacity deficit beginning in the 2025-26 planning year.' 'Next summer, MISO could see resource sufficiency ranging from a 2.7 GW capacity shortfall to a 1.1 GW surplus, underscoring the need to accelerate resource additions, monitor large load additions, and delay resource retirements to reliably manage the anticipated growth in electricity demand,' according to the survey. NERC is a nonprofit international regulatory authority that more broadly looks at reliability standards as well as seasonal and long‐term outlooks for the entire U.S. grid. The group published a long-term reliability assessment in December 2024 that labeled MISO's section of the grid as 'high risk,' meaning the grid subsection that includes the state of Michigan 'falls below established resource adequacy criteria in the next five years.' 'High-risk areas are likely to experience a shortfall in electricity supplies at the peak of an average summer or winter season. Extreme weather, producing wide-area heat waves or deep-freeze events, poses an even greater threat to reliability,' the report said. Dena Isabell, stakeholder engagement manager at Consumers, told commissioners in February that Consumers adopted in 2021 that helped the company identify about $600 million in savings for its customers over 20 years with the retirement of the plant. 'That includes renewables that get brought onto the grid, which are cheaper than what we have,' she said, 'so that is a savings to our customers, which is part of the clean and affordable and reliable energy — so it's an economic decision.' One component of the cost savings was coal. Rich Houtteman, community affairs manager for Consumers, explained to commissioners in February that the cost of shipping coal is a huge financial consideration for the energy company. 'It's about $50 a ton to ship excess coal off-site,' he said. 'We had 30,000 tons. That's a lot for our customers. So we're trying to burn up all the coal as we kind of bring in 130 train car loads a day.' Consumers did not respond to an inquiry Friday evening on how much coal remained on the site. OI Commissioner Allison Miedema — who strongly backed the county suing Consumers to prevent the Campbell closure — asked the utility company's officials in February what new assets were being brought onto the grid. Isabell pointed to renewables as well as natural gas assets. 'We do have a lot of renewables that are coming online, so that is very important to us,' she said. 'We do have natural gas. We like natural gas. It is part of our future that we have — it is agile, it's able to come online quickly, we can dispatch that in a matter of hours, versus a matter of days in the cold — so we see natural gas as part of our future.' Isabell also noted wind and solar and battery storage, 'which is going to be a major, major component and required by law, so we are going to be adding a ton of battery storage as well.' After Isabell noted that the state's new clean energy laws required energy companies to have clean and sustainable energy sources by 2040, OI Commissioner Sylvia Rhodea asked if the new Trump Administration's policies could lead to a relaxation in Consumers' plans. 'Is it possible we might see a change in that legislation that would lift those requirements? I'm just wondering if it could be slowed down if we're not looking at deadlines until 2040,' Rhodea said. Isabell said Consumers was committed to its clean energy plan in 2021 — before the legislation in Michigan was approved in 2023 — and that bringing massive assets like the Campbell on and off the grid is no simple or quick task. 'We do our best to try to be as agile as possible, but assets like this aren't something that you can just bring on and take off very quickly,' she said. 'So we do our best in these integrated resources plans to try to plan for what we think could be possible in the future. But we can't plan for everything that could happen with any type of policy. So our plan to retire (Campbell) was on the last integrated resource plan, which does actually meet the new state policy, which works for us going forward. 'But large assets like that aren't something that you can just quickly change with new policies in two years.' The integrated resource plans are required by the Michigan Public Service Commission, a regulatory agency that oversees public utilities in Michigan. 'The Michigan Public Service Commission requires us to create a 20-year plan that says, 'How are you going to serve your customer, clean, reliable and affordable energy for the next 20 years?' And this requires us to come up with scenarios,' Isabell said. Those scenarios are then presented to stakeholders in a series of workshops over two years with community stakeholders who then provide feedback to help. 'We're retooling, and we're getting ready to do our next integrated resource plan, new technologies, new laws, new things like that require us to be agile. We constantly need to update those plans and make sure that we're giving our customers the best technology and the best cost we possibly can,' Isabell said. The Campbell Plant is Consumers' last — and largest — coal-fired plant in the state. The plant, operating since 1962, was originally scheduled to close partially in 2030 and wholly in 2040. But the utility announced in 2021 it was moving the plan up by 15 years for an operations end date of May 31, 2025. The utility was seeking to end coal use altogether by 2025 as part of its goal to achieve carbon neutrality. Since the announcement, Consumers has been actively preparing the plant for 'full retirement,' a spokesperson said last year. 'The complex will officially go into retirement with an aim to go cold and dark after 2025,' said former Consumers spokesperson Kristen Van Kley. 'In 2026 and on, the complex will be demolished with a plan to restore the site over time.' The plant, when operating at full capacity, can generate 1,450 megawatts of electricity. Michigan consumed about 113,740 gigawatt hours of electricity in 2019, according to a 2020 report from the U.S. Department of Energy. At the time, Van Kley said new technologies would ensure Consumers would be able to continue supporting the statewide grid. 'Energy efficiency, demand response and emerging technologies such as grid modernization and battery storage will help us lower peak customer demand for electricity and deliver exactly what Michigan needs,' she said. 'Our plan is designed to respond to emerging needs, adapt to changing conditions and embrace emerging innovative technologies as we work to achieve net zero carbon emissions.' Key to that strategy are natural gas-fired plants in Consumers' portfolio, Van Kley said, which include locations in Zeeland, Jackson and a 1,200-megawatt facility that began operating in Van Buren County's Covert Township in June 2023. Those operations 'will supply reliable, on-demand electricity to meet Michigan's energy needs when renewables and other sources are not available,' Van Kley said. Meanwhile, efforts continue to restart operations at Palisades Nuclear Power Plant in Covert Township. The facility, owned by New Jersey-based Holtec International, went offline for decommissioning in May 2022.
Yahoo
24-05-2025
- Business
- Yahoo
Michigan plant will remain available for future operations
(NewsNation) — The J.H. Campbell power plant in Michigan will remain open after a late emergency order from the Trump administration. Michigan Republican State Sen. Roger Victory joined 'The Hill' on Friday to discuss a string of scheduled coal plant closures in 2025, including the J.H. Campbell Power Plant, revealing he received a notice from the U.S. Department of Energy that the plant will now remain available. It was scheduled to be closed as early as June, but with the executive order, its imminent closure has been avoided. 'This is the first step in the process, but I'm glad that the Trump administration has listened to our concerns, especially for us in the Midwest,' Victory said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
