AG Nessel Fights DOE Order to Keep West Olive Coal Plant Running

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LANSING — Michigan Attorney General Dana Nessel has formally challenged a federal order that forces Consumers Energy to continue operating the J.H. Campbell coal plant in Ottawa County past its planned May 31 closure date.

On June 19, Nessel filed a Request for Rehearing with the U.S. Department of Energy, asserting that the agency had overstepped its authority under the Federal Power Act when it issued an order on May 23 to halt the retirement of the 60-year-old facility. The plant’s closure was part of Consumers Energy’s 2021 integrated resource plan, approved by the Michigan Public Service Commission in 2022.

According to Nessel, the DOE’s emergency order is unfounded and fails to meet legal standards for invoking emergency powers. She argues the plant’s continued operation would result in significant cost burdens for ratepayers and expose Michigan residents to unnecessary environmental harm.

State regulators and energy planners had already accounted for the Campbell plant’s closure through alternate energy procurement and grid reliability planning. Nessel emphasized that Consumers Energy or any local authority did not request continued operation.

The AG’s filing also notes that the planned retirement was projected to save customers nearly $600 million over time.

The DOE’s action marks the first time the agency has delayed a power plant retirement without receiving a specific request from a utility or local government. The department now has 30 days to respond to Nessel’s challenge.

Nessel’s office contends the DOE’s actions reflect a broader pattern of federal overreach. The case now enters a review period that could impact federal-state dynamics over energy policy in Michigan and beyond.