The Trump administration’s emergency order to extend operations of the J.H. Campbell coal plant on Lake Michigan past its planned retirement has incurred costs of at least $80 million since May, according to Consumers Energy.
In its third-quarter earnings report, the company indicated it will follow the U.S. Department of Energy’s procedure for recovering these costs and will seek payment from Midwest ratepayers.
Despite the end of peak summer electricity demand, Consumers Energy executives report no indication of a decrease in emergency orders. CEO Garrick Rochow stated, “We expect those to continue long-term,” adding the company is prepared to comply.
Rochow noted the costs—$615,385 daily—should be borne by the 42-45 million ratepayers in the region served by the Midcontinent Independent System Operator (MISO), rather than just Consumers Energy’s 1.9 million customers. He emphasized the benefits extend to MISO, not just their customers.
The administration’s strategy allows cost recovery through a path outlined by the Department of Energy, necessitating an application to the Federal Energy Regulatory Commission. Opposition from states could result in intervention.
U.S. Energy Secretary Chris Wright issued two 90-day orders, citing risk of power outages and grid security issues in the Midwest, leveraging the Federal Power Act’s emergency provisions. Historically, such measures address natural disasters; however, Wright’s orders align with Trump’s energy production agenda.
The Department of Energy and MISO did not comment on the costs. Wright previously directed MISO to minimize costs to Americans. Critics argue the 63-year-old plant’s operation incurs unnecessary expense and pollution.
A September filing by environmental groups claims MISO had excess resources exceeding the Campbell plant’s output even during peak demand. EPA data shows the plant’s units were inactive for significant periods.
Michael Lenoff of Earthjustice criticized the plant’s continued operation, attributing costs to consumer exploitation for the coal industry’s benefit. With no response to their petition, environmental groups and several states have appealed to the D.C. Circuit Court of Appeals, seeking to prevent consumer harm and preserve state regulatory authority.
The Campbell plant, the largest kept open under these orders, emitted 6.6 million metric tons of carbon in 2023. Talen Energy’s Wagner plant and Constellation Energy’s Eddystone plant, both using oil and natural gas, have also extended operations. Their financial disclosures are anticipated in forthcoming earnings reports.
Consumers Energy aims for net-zero carbon emissions by 2040 and projected a $600 million savings over 20 years from the Campbell plant’s retirement. Yet, operating the plant for five months has tripled the projected annual savings.
Original Story at insideclimatenews.org