Appeals court voids DOE order keeping Michigan coal plant open: agency lacked statutory emergency

A three‑judge panel of the D.C. Circuit unanimously vacated the Department of Energy’s emergency declarations that kept the J.H. Campbell Generating Plant in Michigan operating.

The court invalidated five separate DOE orders, each limited to 90 days under the Federal Power Act, concluding the agency failed to demonstrate the kind of critical supply shortage required by section 202(c) of the Act.

Michigan and several environmental groups challenged DOE’s emergency finding. The court noted the plant’s planned closure had undergone state proceedings, including hearings and appeals, and that the closure was approved after regulators concluded it would not cause service shortfalls.

The court reviewed materials DOE relied on: a MISO‑related report noting risk to reserve margins and a DOE slide deck highlighting seasonal peak risk. It emphasized that the same MISO analysis reported adequate anticipated resources for peak load conditions in 2024, and found the government’s materials did not show an immediate, critical shortage.

Judges placed those facts against the statutory structure of federal electricity regulation, observing that Congress generally left generation planning to states and intended federal intervention at generation facilities to be rare and reserved for genuine emergencies.

The ruling also cited public‑health estimates in the record that the plant’s pollution could cause about 30 deaths per year. The decision’s reasoning is applicable to other DOE actions that have forced coal plants to remain online; DOE stated it issued over 55 emergency orders in 2026.

The outcome allows Michigan to proceed with its planned shutdown process unless the government obtains relief on appeal.