Trump Extends Lifeline to Aging Coal Plants, Raising Costs for Customers

Emergency orders force utilities to keep uneconomical coal plants open, despite grid reliability and affordability concerns

Mar. 29, 2026 at 11:49am

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In an unprecedented move, the Trump administration has invoked emergency powers to force the continued operation of several aging, uneconomical coal-fired power plants that utilities and grid operators had planned to retire. The orders, issued under the Federal Power Act, are expected to cost ratepayers billions of dollars annually, even as the plants often remain offline due to mechanical issues.

Why it matters

The administration's efforts to prop up the struggling coal industry clash with the economic realities of the power sector, where natural gas, wind, and solar have become significantly cheaper options. Consumer advocates argue the orders are an ideological overreach that undermines rational energy planning and will burden customers with higher electricity bills.

The details

The Department of Energy has issued emergency orders to block the retirement of coal plants in Colorado, Indiana, Michigan, and Washington state, claiming the plants are needed to ensure grid reliability. However, state officials and utilities say the plants are often inoperable and their power is not required to meet demand. Three of the five plants covered by the orders have not produced electricity since the directives went into effect, either due to needed repairs or because their power is no longer necessary.

  • In May 2026, the first emergency order was issued to prevent the shutdown of the J.H. Campbell Generating Plant in Michigan.
  • The orders have been repeatedly renewed before their 90-day expiration, keeping the plants open indefinitely.

The players

Department of Energy

The federal agency that has issued the emergency orders to keep the coal plants operational, citing concerns over grid reliability.

Chris Wright

The Secretary of Energy who has claimed the power demands in various regions require the coal plants to remain open.

Consumers Energy

The utility operating the J.H. Campbell Generating Plant in Michigan, which has accrued $135 million in net costs to keep the plant open since the emergency order was issued.

Dana Nessel

The Democratic Attorney General of Michigan who has appealed the emergency order to keep the J.H. Campbell plant open.

Nick Brown

The Democratic Attorney General of Washington state who has sued the Department of Energy over the emergency order affecting the TransAlta Centralia coal plant.

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What they’re saying

“Rather than allowing the realities on the ground, the regulators and the utilities to make rational decisions about how to meet energy needs, we have the Trump administration trying to do Soviet-style central planning to push an ideological agenda that will drive costs to customers.”

— Will Toor, Executive Director, Colorado Energy Office

“Coal plants, baseload plants, are critical to the well-being of our grid. Coal is needed at critical moments for energy.”

— Emily Arthun, CEO, American Coal Council

“If you were to believe the Department of Energy, you would believe that more than half the country is experiencing an emergency around the clock.”

— Michael Lenoff, Senior Attorney, Earthjustice

What’s next

The Michigan case challenging the emergency order is expected to be the first resolved, and its outcome will likely have significant implications for the other orders across the country.

The takeaway

The Trump administration's unprecedented use of emergency powers to keep uneconomical coal plants open, despite grid reliability and affordability concerns, highlights the administration's ideological commitment to propping up the struggling coal industry at the expense of ratepayers. The orders have created chaos for utilities and energy planners, and could ultimately cost customers billions of dollars annually.