Court Rejects First Campbell Coal Order as Costs Mount
A federal appeals court vacated the first emergency order keeping Michigan’s J.H. Campbell coal plant open. Later federal orders remained in force, while Consumers Energy sought recovery of hundreds of millions of dollars in operating costs.
“whenever the Commission determines that an emergency exists by reason of a sudden increase in the demand for electric energy”16 U.S.C. § 824a(c), excerpt; emergency power authority[1][2][3]
The D.C. Circuit’s September 11, 2026 ruling addressed the May 23, 2025 order that interrupted Consumers Energy’s planned retirement of the three-unit plant. It did not decide every later order or settle how continued operating costs would be allocated.[3][4][5][6][7]
Consumers’ second-quarter 2026 filing reported a $259 million net financial impact through June 30 after $239 million in revenues from the regional electricity market. Michigan’s attorney general cited a separate $295 million cost figure for May 2025 through June 2026. The two measures have different accounting and scope.[8][5][9]
Who proposed retirement—and what would replace it
Consumers proposed retiring Campbell by May 31, 2025. The Michigan Public Service Commission approved its negotiated electricity-supply plan on June 23, 2022. The utility projected $600 million in customer savings through 2040 compared with its earlier plan, alongside earlier elimination of coal use and reduced emissions.[10][11][12][4]
The replacement plan combined the Covert natural-gas plant, continued availability of the Karn gas-and-oil units through May 2031, electricity-capacity purchases, and additions of solar power and batteries. Consumers began operating Covert in June 2023. The longer-term plan included about 8,000 megawatts of solar capacity by 2040 and battery targets of 75 megawatts by 2027 and 550 megawatts by 2040.[10][11][13]
Federal emergency authority and the court ruling
Energy Secretary Chris Wright directed Consumers and the Midcontinent Independent System Operator, or MISO, to keep Campbell available. The Department of Energy cited summer demand, retirements and low-renewable-output periods as reliability risks. Wright’s August 14, 2026 order covered August 17 through November 14 and directed economical operation when the regional grid needed the plant.[14][7][2]
“whenever the Commission determines that an emergency exists by reason of a sudden increase in the demand for electric energy”16 U.S.C. § 824a(c), excerpt; emergency power authority[1][2][3]
The court held that the emergency provision did not authorize overriding ordinary long-term planning on the record presented. Its discussion included MISO’s projected 9.8% summer 2025 reserve margin—the capacity available above expected peak demand. The decision vacated the initial order rather than resolving all future reliability questions.[3]
Who pays for continued operation
Michigan Attorney General Dana Nessel challenged the federal intervention and said the state-approved replacement plan could serve customers without Campbell. After the ruling, her office noted that the latest extension still ran through November 14; Consumers said it was reviewing the decision while complying with the current order.[4][5][6][7]
Consumers sought recovery through the Federal Energy Regulatory Commission, including cost allocation across MISO’s North and Central regions. Its filing described both a revised allocation proposal and a separate request concerning the initial order. The proceedings, rather than the headline operating-cost totals alone, determine the eventual allocation to customers.[8][5][9]