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Appeals court rejects emergency order keeping Michigan coal plant open

Inside Practice · SEPTEMBER 18, 2026 · 1 MIN READ

On September 11, Reuters reported that the US Court of Appeals for the District of Columbia Circuit unanimously held that the Department of Energy exceeded its authority when it ordered Michigan’s J.H. Campbell coal plant to remain open beyond its planned retirement. The plant’s continued operation cost Consumers Energy $295 million between May 2025 and June 2026, according to Michigan’s attorney general, although the utility said it was still complying with a separate order running through November 14 while reviewing the decision. The ruling limits the use of emergency powers as a substitute for ordinary reliability and market processes, but it does not resolve every plant-specific order. Utilities, investors and large customers should examine which obligations rest on the invalidated order, which survive independently and how disputed carrying costs may be allocated to ratepayers.

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