Environmental Groups Challenge DOE's Emergency Order to Keep Michigan Coal Plant Running

Environmental interest groups have challenged the US Department of Energy's (DOE) second emergency order to extend the operation of the J.H. Campbell coal-fired power plant in Michigan for an additional 90 days. The groups filed a request for rehearing with the DOE in response to a new order issued on August 20, citing a lack of evidence of any emergency or electricity shortage in the region. The filing, accompanied by data from the regional transmission organization MISO, indicates that there was a surplus of available resources more than ten times the amount of power being provided by Campbell on June 23, when the DOE claims that electricity from the plant was needed.

The groups argue that relying on unstable sources of generation with a demonstrated history of failure in times of peak demand threatens the electric grid. They also contend that the costs to comply with the order are set to be paid by ratepayers in Michigan and ten other states, with a conservative cost estimate of nearly $140 million per year for the extension of the J.H. Campbell plant, with the actual annual cost potentially doubling that estimate.

The public interest groups, including Environmental Defense Fund, Earthjustice, Sierra Club, and others, are seeking to overturn the DOE's orders in court, citing the Administration's pro-fossil fuel agenda and the impacts on communities and ratepayers.

Key Takeaways:

• The DOE's second emergency order to extend the operation of the J.H. Campbell coal-fired power plant in Michigan has been challenged by environmental interest groups.
• The groups argue that there is no evidence of any emergency or electricity shortage in the region, with data from MISO showing a surplus of available resources more than ten times the amount of power being provided by Campbell on June 23.
• The costs to comply with the order are set to be paid by ratepayers in Michigan and ten other states, with potential costs of nearly $140 million per year for the extension of the plant.
• The public interest groups, including Environmental Defense Fund, Earthjustice, Sierra Club, and others, are seeking to overturn the DOE's orders in court.
• The DOE must respond to today's motion within 30 days, and if they fail to do so, the public interest groups will again challenge this order in court.
• Michael Lenoff, Senior Attorney for Earthjustice, stated that "The Administration again tramples the long-planned retirement of an unneeded and expensive power plant," and that "This is the Trump Administration playbook -- issue emergency orders without support in fact or law, and let ordinary people suffer the consequences."
• Greg Wannier, Senior Attorney for the Sierra Club, stated that "J.H. Campbell wasn't needed to keep the lights on this summer, and it is not about to keep the lights on this fall," and that "The real energy emergency our communities face is an affordability crisis as prices skyrocket; but that emergency is only deepening as this administration forces communities to foot the bill for its pro-fossil fuel agenda."
• Howard Learner, CEO and executive director of the Environmental Law and Policy Center, stated that "Midwestern families and businesses should not be forced by the U.S. Department of Energy to pay millions of dollars in higher electricity bills for an old coal plant that is demonstrably not needed for reliability and much more expensive than sensible alternatives."

Statistics:

• The initial DOE 90-day order cost $29 million in just the first five weeks -- almost $1 million per day.
• The conservative cost estimate of the extension of the J.H. Campbell plant is nearly $140 million per year.
• The costs to comply with the order are set to be paid by ratepayers in Michigan and ten other states.
• The actual annual cost to continue to operate J.H. Campbell may be double the conservative estimate of nearly $140 million per year.

Sources:

• Environmental Defense Fund (EDF)
• Earthjustice
• Sierra Club
• Natural Resources Defense Council (NRDC)
• Environmental Law and Policy Center
• Vote Solar
• Union of Concerned Scientists
• The Ecology Center
• Urban Core Collective
• Grid Strategies report released on behalf of Sierra Club and other organizations.