Trump Admin Keeps Coal Plant Open Despite Retirement

Craig Station in Colorado, targeted by a recent energy order.

Energy Secretary Orders Aging Coal Plant to Stay Open Despite Reliability Questions

A Colorado coal plant slated for closure is being kept online, sparking debate over emergency powers and grid stability.

• on Tuesday, US Secretary of Energy Chris Wright issued an order to keep a unit at Craig Station in Colorado operational.
• The Department of Energy cited an energy emergency, but Colorado’s Public Utilities Commission previously determined the plant wasn’t needed for grid reliability.
• The order doesn’t require the plant to generate power, only to be available, potentially violating state pollution laws.
• The cost of maintaining the plant will likely be borne by local ratepayers.

Denver, Colorado — In a move echoing past administrations, US Secretary of Energy Chris Wright ordered a coal plant scheduled for closure to remain open on tuesday. the directive targets one of three units at Craig Station in colorado, which was set to cease operations at the end of this year, with the remaining two units planned to shut down in 2028. This decision raises questions about the definition of an energy emergency and the balance between maintaining grid stability and transitioning to cleaner energy sources.

What’s Behind the Order?

The Department of Energy justified the order, outlined in a statement, by citing a shortage of generating capacity and asserting that “the reliable supply of power from the coal plant is essential for keeping the region’s electric grid stable.†However, this claim is contested. According to reporting from the Colorado Sun,Colorado’s Public Utilities Commission already assessed the potential impact of the plant’s closure and concluded,“Craig Unit 1 is not required for reliability or resource adequacy purposes.â€

What constitutes an energy emergency under federal law? the Federal Power act authorizes the DOE to temporarily connect generation or infrastructure during wartime or when “an emergency exists by reason of a sudden increase in the demand for electric energy, or a shortage of electric energy.†The DOE’s current rationale — anticipating future demand increases — doesn’t clearly align with this definition.

Federal Power Act-The 1935 law grants the Department of Energy emergency authority to ensure grid reliability. Recent administrations have increasingly invoked this power, prompting debate over its scope and application.

Potential Conflicts with State Law

The order doesn’t mandate that the plant actually produce electricity, but rather that it remain available should a shortfall occur. However, the Colorado Sun reports that operating the plant could potentially violate Colorado’s regulations regarding airborne pollution and greenhouse gas emissions. Local ratepayers, who had already adjusted to the planned closure, are likely to bear the cost of maintaining the facility.

Did you know? The use of emergency powers under the Federal Power Act has become increasingly common in recent years,drawing scrutiny from energy experts and environmental advocates.

The Department of Energy is utilizing authority granted under the Federal Power Act. The act allows for these temporary connections during specific circumstances, but the application of these powers in this instance is drawing criticism and raising questions about the true nature of the “emergency.â€

Craig Station History-First operational in 1989, Craig Station is one of the largest coal-fired power plants in the Western US. Its planned closure reflects a broader trend of retiring coal facilities.