Tri-State Rejects Federal Order to Keep Craig Coal Plant Open

Utility co-op says forcing plant to stay open would disrupt clean energy plans and raise costs for consumers.

Jan. 30, 2026 at 1:31pm

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Tri-State Generation and Platte River Power Authority have formally objected to a Trump administration order requiring them to keep the Craig Unit 1 coal-fired power plant in Colorado open past its planned retirement at the end of 2025. The utilities say the order is unconstitutional, would disrupt their carefully planned transition to renewable energy, and would impose significant financial costs on their member co-ops and customers.

Why it matters

The dispute highlights the ongoing tensions between federal efforts to prop up the struggling coal industry and the growing shift by utilities toward cleaner, cheaper renewable energy sources. The Craig plant is a major contributor to Colorado's carbon emissions, and its closure is seen as a key part of the state's transition to a low-carbon future.

The details

Tri-State and Platte River filed a 38-page petition objecting to the federal order, arguing it would force them to keep operating an aging, polluting coal plant that they no longer need. They say the order violates their property rights and disrupts their plans to replace Craig's capacity with new renewable energy sources, including a 145MW solar farm. Keeping Craig Unit 1 running would cost at least $85 million per year, two-thirds of which would be for fuel, according to an analysis. The utilities say their member co-ops and customers can't afford those higher electricity rates.

  • Tri-State and Platte River filed their petition to the U.S. Department of Energy on Thursday, January 30, 2026.
  • Craig Unit 1 was out of service until this week, having shut down for repairs in mid-December 2025.

The players

Tri-State Generation and Transmission Association

A not-for-profit electric power supplier that delivers electricity to 42 member co-ops and utilities serving over 1 million people in four Western states.

Platte River Power Authority

A not-for-profit utility that serves Fort Collins, Loveland, and northern Colorado.

Duane Highley

CEO of Tri-State Generation and Transmission Association.

Jason Frisbie

General manager and CEO of Platte River Power Authority.

Michael Lenoff

Senior attorney with Earthjustice's Clean Energy Program.

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What they’re saying

“We do not take this request for a rehearing lightly, but as not-for-profit entities, we face issues that other utilities do not, because it is our members that ultimately are going to pay for the cost of this order.”

— Duane Highley, CEO, Tri-State Generation and Transmission Association

“Craig's operator and two of its co-owners make plain what everyone sees and the Trump administration fails to acknowledge: the unlawful order is counterproductive and unreasoned.”

— Michael Lenoff, Senior Attorney, Earthjustice Clean Energy Program

“We have planned for the retirement of this resource for over a decade and have proactively replaced the capacity and energy from new sources. While Platte River will continue to comply with federal law, we disagree with the need to keep the plant open.”

— Jason Frisbie, General Manager and CEO, Platte River Power Authority

What’s next

The U.S. Department of Energy has until March 30 to consider the utilities' petition and decide whether to extend the emergency order requiring Craig Unit 1 to remain open.

The takeaway

This dispute highlights the ongoing clash between federal efforts to prop up the coal industry and the shift by utilities toward cleaner, more affordable renewable energy sources. The utilities' objections underscore the significant financial and operational burdens that the federal order would impose, as well as the disruption it would cause to their carefully planned transition away from coal power.