{"id":58886,"title":"Federal court voids emergency orders keeping coal plants open","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-09-12T08:02:52+00:00","modified":"2026-09-12T08:02:52+00:00","canonical_url":"https://stockmark.it/trumps-forced-coal-plant-extensions-thrown-out-by-judge/","markdown_url":"https://stockmark.it/trumps-forced-coal-plant-extensions-thrown-out-by-judge.md","json_url":"https://stockmark.it/trumps-forced-coal-plant-extensions-thrown-out-by-judge.json","category":"Business","categories":["Business","Companies","Energy"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/federal-court-voids-emergency-orders-keeping-coal-plants.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"A federal appeals court has ruled that the Department of Energy exceeded its statutory authority when it issued emergency declarations to keep coal-fired power plants operational. The unanimous decision by a three-judge panel of the DC Circuit Court of Appeals directly impacts the J.H. Campbell Generating Plant in Michigan, which had been scheduled to close but was kept open through a series of federal orders. While the ruling specifically addresses this single facility, the legal reasoning established in the judgment is expected to apply to all other coal plant closures that have been blocked by the department. This marks the first of several legal challenges to the administration’s aggressive interventions in the energy sector to be resolved by the courts.\n\nThe administration has sought to reverse the long-term decline in coal generation on the US grid, a trend that persisted despite efforts by the previous administration. To achieve this, the current government has utilised a statute permitting the Department of Energy to declare an emergency during wartime or sudden generation shortfalls. This authority has been used to order plants that were slated for closure to remain open, even in the absence of an immediate need for their capacity. The legal challenge was brought by the state of Michigan and a coalition of environmental organisations, who argued that no such emergency existed to justify the federal intervention.\n\nThe court examined section 202(c) of the Federal Power Act, which allows for emergency declarations only when the US is at war or when an emergency arises from a sudden increase in demand or a shortage of electric energy. In its defence, the government presented a report indicating that the Midcontinent Independent System Operator, or MISO, faced a risk of low generating reserves. However, the court noted that the same report concluded MISO had adequate resources for peak load conditions in 2024. The government also relied on a presentation suggesting grid risks during summer months, which the judges dismissed as a seasonal comparison rather than an assessment of an actual grid emergency. Consequently, the court found that the department failed to provide evidence of a critical supply shortage that would constitute an emergency under the law.\n\nThe judges spent considerable time analysing the historical structure of US electric grid regulation. They observed that, with few exceptions, the regulation of generating capacity is reserved for the states, while the federal government’s role is limited primarily to interstate transmission lines. The court highlighted that the Federal Power Act expressly denies the Federal Energy Regulatory Commission the authority to regulate generation facilities directly. This structure indicates that Congress intended federal intervention at the level of generation to be rare and reserved for cases of immediate shortfall that could only be addressed through federal action. The panel concluded that indeterminate assertions of summer electricity shortfalls do not meet the statutory definition of an emergency.\n\nThe court emphasised that the closure of the J.H. Campbell plant was part of a carefully planned process. The state utility commission had held hearings, managed appeals, and evaluated plans to bring cheaper and less polluting power sources into service to compensate for the loss of capacity. MISO had also evaluated and approved the closure plan, ensuring it would not lead to any shortfalls. The judges stated that allowing the department to compel generation in situations resolvable through ordinary resource adequacy planning would render meaningless the constraints on federal power imposed by Congress. The closure had also been noted for its environmental impact, with estimates cited by the court suggesting the plant’s pollution would result in 30 deaths per year.\n\nAs a result of the decision, the department’s emergency declaration has been voided. Unless the ruling is overturned on appeal, Michigan can proceed with its planned shutdown process. This will relieve local ratepayers from the costs associated with maintaining the coal plant in a state where it could be brought back online. More significantly, the logic of the decision is likely to apply to all other cases where the department has attempted to force plants to stay open. According to the department, it has issued over 55 emergency orders in 2026 alone, a figure that is more than double the total number issued between 2000 and 2025. If the decision stands, these orders, and potentially other actions taken under the same emergency authority, are likely to be reversed."}