Attorney General Seeks Rehearing
Michigan Attorney General Dana Nessel announced Friday that she will seek a rehearing with the U.S. Department of Energy over an order requiring continued operation of a West Michigan coal plant beyond its planned retirement date.
The federal directive instructs Consumers Energy to keep the J.H. Campbell coal-fired power plant in West Olive running until May 18, 2026. The facility had been scheduled to close on May 31, 2025, following approval from the Michigan Public Service Commission after what state officials described as extensive planning and analysis.
Nessel characterized the order as “arbitrary and illegal,” arguing that federal authorities have not demonstrated the energy emergency conditions required under federal law to justify prolonging the plant’s operation.
Costs and Replacement Plans
The original retirement strategy relied on securing replacement power resources through the Midcontinent Independent System Operator, the regional grid operator serving 11 states and one Canadian province. State regulators said the transition plan would have saved ratepayers nearly $600 million by replacing the coal facility with alternative resources.
Instead, Consumers Energy has reported at least $135 million in expenses associated with operating the plant beyond its scheduled retirement, not including additional costs incurred since the end of 2025.
Nessel said the continued operation imposes unnecessary financial burdens on ratepayers while undermining Michigan’s regulatory process.
Federal Orders and Ongoing Litigation
The Department of Energy has issued four emergency orders related to the plant, citing concerns about grid reliability. Nessel disputes those claims, maintaining that no legitimate energy emergency has been established.
Her office has filed three previous rehearing requests with the department and three petitions for review with the U.S. Court of Appeals for the District of Columbia Circuit. Those cases are still pending.
Separately, Nessel is challenging a decision by the Federal Energy Regulatory Commission that approved Consumers Energy’s request to distribute the costs of continued plant operations across parts of the regional grid. She argues that the underlying federal orders are unlawful and intends to pursue further review of whether the additional costs are accurate and reasonable.
Broader Implications
Nessel has also opposed similar federal actions involving coal plants in Indiana, saying her efforts are aimed at protecting Michigan residents from what she describes as unnecessary and legally questionable expenses.
The dispute highlights tensions between federal authority over grid reliability and state-level energy planning, particularly as states move to retire aging coal facilities and transition toward alternative power sources.
