U.S. steps in to keep some fossil fuel power plants running

The U.S. Department of Energy (DOE) has told some fossil fuel plants to keep running for now. The agency used Section 202(c) of the Federal Power Act, which lets it act during grid emergencies. The first orders went to the Midcontinent Independent System Operator (MISO) for Michigan and to PJM for Pennsylvania. 

DOE says these plants provide dispatchable power. That means power you can turn on when you need it. The agency argues this backstop helps prevent blackouts during heat waves, cold snaps, and high demand. 

Why DOE says it acted

DOE’s July reliability report says the nation faces a tight balance. It points to load growth, slower build-outs of firm capacity, and the timing of retirements. The report warns that allowing 104 GW of firm generation to retire by 2030 without timely replacement could push annual outage hours from single digits to hundreds. That’s a huge swing, and it worries grid planners. 

What it could cost customers

Environmental groups and analysts say keeping old plants online will not be cheap. A coalition report led by Earthjustice and Grid Strategies estimates $3.1 billion per year in 2028 to hold back planned retirements. Utility Dive summarized the math and the state-by-state exposure shown below. 

Estimated annual costs by 2029 (selected states)

Regional exposure by late 2028

Case study: Michigan’s J.H. Campbell plant

DOE issued a 90-day order in May to keep the J.H. Campbell coal plant available beyond its May 31 retirement date. DOE later extended that order so the plant can be dispatched through November 19, 2025, if needed. The order cites tight reserve margins and many grid alerts over the summer. 

Costs rose fast. In a filing noted by Utility Dive, the plant’s owner reported $29 million in spending during the first 38 days under the order. Michigan’s attorney general has challenged the DOE action, arguing the emergency claim is weak and that the retirement had been planned for years with cheaper replacement resources. 

Pennsylvania’s Eddystone units

DOE also ordered PJM, working with Constellation Energy, to keep specified units at the Eddystone station in Pennsylvania available. The goal is similar: reduce the risk of shortfalls during extreme conditions. 

Arguments on both sides

• DOE’s view: Retirements are outpacing new firm capacity. Demand is rising from heat, electrification, and data centers. Emergency authority helps avoid outages. 
• Opponents’ view: The orders override state plans, raise bills, and delay cleaner, cheaper options. They say MISO approved the Campbell retirement, and the “emergency” case is thin. 

What it means for customers

In the short term, these orders may keep lights and air conditioners on during tight hours. But they also shift costs to ratepayers. If more owners seek similar treatment, the total could rise further, as some analyses warn. 

What to watch next

• Court cases: Legal challenges will test where DOE’s 202(c) powers begin and end. 
• New capacity: How fast utilities add firm resources, storage, and wires will shape how long these orders last. 
• Future orders: DOE has already issued multiple directives; more could follow if heat waves or cold snaps stress the grid.

Key points

• DOE used emergency powers to delay plant retirements in Michigan and Pennsylvania so the grid stays stable.
• Advocates say the policy could cost customers about $3.1 billion a year by 2028. 
• At Michigan’s J.H. Campbell coal plant, owners reported $29 million spent in the first 38 days under a DOE order. 
• DOE warns retirements plus fast demand growth raise blackout risks; a July report projects much higher outage hours without firm capacity.