Unanimous panel says DOE crossed the statutory line
WASHINGTON — A unanimous federal appeals panel ruled Friday that the Energy Department exceeded its authority when it used a rarely invoked emergency provision to force Consumers Energy to keep Michigan's J.H. Campbell coal-fired power plant running past its planned May 2025 retirement.
Chief Judge Sri Srinivasan and Judges Cornelia Pillard and Robert Wilkins of the U.S. Court of Appeals for the District of Columbia Circuit granted petitions brought by Michigan, Illinois, Minnesota and environmental organizations. Pillard wrote the court's opinion in the consolidated cases, led by People of the State of Michigan v. Department of Energy, No. 25-1159.
The court vacated DOE's May 23, 2025 order. It held that Section 202(c) of the Federal Power Act supplies a narrow, last-resort power for an immediate electricity emergency—not a general federal license to override state generation planning or select which power plants should remain in service.
State and regional reviews had approved the retirement plan
Consumers Energy had spent years planning to retire Campbell and replace its output with a mix of acquired generation, continued operation of other units, solar power and battery storage. The Michigan Public Service Commission approved that plan after a contested proceeding, and a state appeals court upheld the approval.
The Midcontinent Independent System Operator, which manages transmission across a 15-state region, separately concluded that Campbell's retirement would not violate its reliability criteria. The D.C. Circuit also cited Consumers Energy's capacity filings and a regional auction that showed sufficient resources and reserve margins for the period reviewed.
DOE pointed to potential tight reserve margins and the retirement of thermal generation as reasons for intervention. The panel found those circumstances did not establish the immediate, otherwise-unaddressable reliability emergency that Section 202(c) requires.
The ruling limits federal emergency power beyond one plant
Since 2025, the administration has used emergency orders to keep several aging power plants operating beyond announced retirement dates. Reuters and the Associated Press report that facilities in Indiana, Colorado, Washington and other states have also been covered by federal directives.
Friday's opinion interprets the same federal emergency authority, making its reasoning important beyond Michigan. But it does not automatically decide every separate order or shut every affected plant. The facts, directives, parties and procedural posture in those disputes still matter.
The panel did not decide the petitioners' remaining statutory and procedural challenges because its conclusion that DOE exceeded its authority was enough to vacate the Campbell order. The administration could seek rehearing or Supreme Court review; the reviewed sources did not report that either step had been filed Friday.
Campbell is not necessarily shutting down tonight
Consumers Energy spokesperson Brian Wheeler told Reuters and the Associated Press that the company was reviewing the ruling. In the meantime, he said the utility was continuing to comply with a current 90-day Energy Department directive that extends Campbell's operation into November.
That statement is the immediate operational boundary: the court invalidated the challenged 2025 order, but the operator had not announced a same-day shutdown. Whether and when Campbell stops generating power may depend on the ruling's effect on the newer directive, additional agency action and further litigation.
The litigation also does not resolve who ultimately bears every cost already incurred. Reuters cited Michigan's attorney general as estimating $295 million in operating costs from May 2025 through June 2026, while the Associated Press cited approximately $259 million from newer financial filings. The difference reflects distinct cited periods or records, so this report does not combine the figures or present either as a final ratepayer bill.
What is confirmed—and what remains unsettled
Confirmed: the three-judge panel was unanimous; it concluded DOE exceeded its statutory authority; it vacated the challenged order; and the utility said Friday that it was reviewing the decision while continuing to follow the newer directive.
Not established: an immediate closure of Campbell, cancellation of every similar federal order, a final allocation of operating costs, or the end of the case. Political descriptions from both sides—including claims of a fabricated emergency or claims that the orders saved lives—are advocacy positions, not additional findings made by the court.
The featured image is an authentic October 27, 2024 photograph by Wikimedia Commons contributor Toohool showing the E. Barrett Prettyman federal courthouse, where the D.C. Circuit sits. It is published under the Creative Commons Attribution-ShareAlike 4.0 license. The photograph does not show Campbell, the judges, Energy Department officials or Friday's proceeding, and its use does not imply endorsement.
Sources and further reading
D.C. Circuit: September 11 opinion in Michigan v. Department of Energy ↗
Reuters: appeals court vacates the Michigan coal-plant order ↗
Associated Press: court ruling, administration response and immediate operating status ↗
Energy Department: March 2026 order addressing challenges to its Campbell directive ↗
Wikimedia Commons: authentic Prettyman Courthouse photograph and CC BY-SA 4.0 license ↗