DOE exceeded its authority with coal retirement delay, states tell appeals court

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Dive Brief:

The Department of Energy exceeded its authority when it ordered the owners of a coal-fired power plant in Michigan to run it past its retirement date, a lawyer for Michigan, Minnesota and Illinois and an Earthjustice attorney representing public interest groups told an appeals court panel on Friday.

A DOE lawyer told the panel for the U.S. Appeals Court for the District of Columbia Circuit that the department’s order directing Consumers Energy’s majority-owned 1,560-MW Campbell power to stay online past its May 31, 2025, planned shutdown was based on “substantial evidence” there was a grid emergency in the Midcontinent Independent System Operator’s footprint.

The case is the first among the legal challenges to DOE orders keeping fossil-fueled power plants from retiring to reach oral arguments. A court decision expected later this year could set a precedent for the other pending cases. However, whichever side loses the case will likely appeal the decision to the U.S. Supreme Court, according to ClearView Energy Partners, a research firm.