Keeping West Michigan’s J.H. Campbell power complex going beyond its expected retirement date has cost at least $30 dollars so far, according to a regulatory filing with the Securities and Exchange Commission.
Consumers Energy had planned to shutter the coal-fired power plant for good at the end of May. But eight days before that, the U.S. Department of Energy ordered it to remain open for at least 90 more days, citing a law that allows the federal government to mandate power production in emergency situations.
But no such emergency exists, according to Michael Lenoff, an attorney with Earthjustice. That non-profit environmental group — along with many other parties, including the Michigan Attorney General’s office and Michigan Public Service Commission — is suing over the Trump administration over the order.
“There is enough power on the system,” Lenoff said. “DOE has not presented any reason to believe otherwise. And a plant like Campbell—old, clunky broken--is not the right solution.
“That law is only to address imminent, exigent short-term issues that require a very, very quick response. The Department of Energy presented no evidence that that is what's happening. And of course, they didn't present that evidence because the evidence shows the opposite, that there is enough power in Michigan and in the regional grid.”
Lenoff said forcibly extending the operating life of the Campbell complex puts a burden on Consumers, its ratepayers, and the larger energy system. “The Michigan Public Service Commission and so many stakeholders have carefully planned this retirement to ensure that consumers save money, that the environmental impacts are reduced, and that there's enough electricity on the grid,” he said. “It's just a very powerful instance where DOE is overstepping its authority.”
In its July 29 SEC filing, Consumers said it’s so far incurred about $30 million in costs to keep Campbell working, and that it wants to recoup. Lenoff said the Federal Energy Regulatory Commission will ultimately decide who pays that bill, but for now that remains unclear.
“Is that going to be Consumers Energy's ratepayers? Is that going to be Michigan ratepayers? Is that going to be those people combined with people from other states? That question is up in the air,” Lenoff said.
Lenoff added that tab will inevitably increase before the expiration of the 90-day emergency order, which expires August 21. Consumers noted in its SEC filing that it’s unclear whether the Department of Energy will extend the order, and so far DOE has not signaled its plans one way or the other.
Since taking office, President Trump has made a number of policy moves and issued executive orders meant to boost the U.S. coal industry, calling it “essential to our national and economic security.” However, in addition to pollution concerns, coal is largely no longer cost-competitive in the domestic market, and “U.S. utilities continue to prioritize adding renewables, batteries, gas and nuclear power ahead of new coal-fired capacity based on the cost and efficiency,” according to a Reuters analysis.
Editor's note: Consumers Energy is among Michigan Public's corporate sponsors.
