A federal appeals court has rejected the Trump administration’s order forcing a Michigan coal-fired power plant to remain open, ruling that the U.S. Department of Energy exceeded its legal authority by invoking emergency powers to prevent the facility’s planned retirement.
The U.S. Court of Appeals for the District of Columbia Circuit issued the ruling Friday, siding with Michigan, Illinois, Minnesota and environmental groups that challenged the federal government’s decision to keep the J.H. Campbell Generating Plant operating beyond its scheduled retirement.
The 64-year-old facility had been scheduled to retire in 2025. Energy Secretary Chris Wright ordered it to remain operational, arguing that the plant was necessary to maintain reliable electricity supplies in the region.
However, a unanimous three-judge panel ruled that the government had not demonstrated the kind of immediate emergency required under the Federal Power Act to justify the order.
Judge Cornelia Pillard described the emergency authority as a narrow, last-resort measure that should only be used when immediate federal intervention is necessary. The court concluded that the circumstances surrounding the Campbell plant did not meet that threshold.
The ruling represents a setback for President Donald Trump’s energy policy, which has emphasized maintaining reliable electricity supplies and supporting fossil-fuel generation. Trump declared a national energy emergency in January 2025, citing rising electricity demand, including increased consumption associated with artificial intelligence and data centers.
The Michigan case is part of a broader legal fight over the administration’s efforts to prevent several aging coal-fired plants from shutting down. Similar federal orders have affected facilities in other states, including Indiana, Colorado, Florida and Washington.
Critics argue that extending the life of older coal plants places unnecessary financial and environmental burdens on consumers. New financial filings indicate that keeping the Michigan facility operating beyond its planned retirement has already cost about $259 million, with opponents warning that ratepayers could ultimately bear much of the expense.
Michigan Attorney General Dana Nessel welcomed the ruling, arguing that the Energy Department had improperly used emergency powers to override the state’s decisions concerning electricity resources.
Environmental organizations also praised the decision, saying it could strengthen challenges to similar federal orders involving aging fossil-fuel facilities.
Despite the ruling, the Campbell plant will continue operating temporarily under the terms of a more recent Energy Department directive that extends the federal order through mid-November, according to the plant’s operator, Consumers Energy.
The decision could have wider implications for the Trump administration’s efforts to use emergency authority to preserve coal and other fossil-fuel power generation as the United States faces rising electricity demand.
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