US Coal-Fired Power Plant Directed to Delay Retirement Amid Grid Stability Concerns
A decades-old coal-fired power plant in West Olive, Michigan, has been directed to delay its planned retirement, a decision made by the Department of Energy (DOE). The J.H. Campbell power plant was poised to cease operations, but DOE Secretary Chris Wright declared an emergency, mandating the facility's continued operation for a temporary period.
The DOE's intervention stems from concerns raised in a recent assessment by the North American Electric Reliability Corporation (NERC). The assessment highlights a potential shortfall in electric reserves for the Midcontinent Independent System Operator (MISO), which manages the power grid across 15 central U.S. states. The DOE’s action aims to bolster grid stability and mitigate potential rate increases. NERC’s 2025 Summer Reliability Assessment specifically forecasts an elevated risk of electricity shortages during peak demand periods this summer, particularly in August.
The J.H. Campbell Complex, with a generation capacity of 1,560 MW, was scheduled to be retired this month, with operations ceasing on May 31. Consumers Energy and MISO had anticipated the loss of this capacity and proactively secured a 1,200 MW natural gas power plant in Covert as a replacement. Despite this mitigation, the NERC assessment still anticipates a heightened risk of reserve shortfalls.
Secretary Wright’s order, issued on May 23, 2025, is effective immediately. It instructs MISO to maximize the plant’s output while minimizing costs for consumers and requires Consumers Energy to adhere to all MISO directives. The order stipulates the plant’s continued operation until August 21, 2025, although Consumers Energy has yet to announce their plans regarding the plant's eventual retirement.
The decision has drawn mixed reactions. The Michigan Public Service Commission (MPSC) argues the order is counterproductive and will lead to higher prices for customers. MPSC Chair Dan Scripps stated the order will increase costs and highlighted Michigan's existing energy surplus, suggesting no actual emergency exists. Conversely, Rep. Dave Prestin (R-Cedar River) lauded the order, emphasizing the plant's importance as a regional asset and the potential for widespread outages without it. He expressed gratitude for the administration's commitment to safeguarding American energy production.