A federal appeals court vacated the Energy Department’s order keeping the Campbell coal plant in Michigan online beyond its planned retirement, ruling there was no real emergency under the Federal Power Act to justify the action.

Judge Cornelia Pillard wrote that emergency orders are narrow, last-resort tools for immediate needs and should be triggered by the DOE rather than state actions, and that reversing the planned retirement disrupts reliability planning.

The ruling voids Campbell’s extended operation that DOE said was necessary for regional reliability during peak demand and severe weather.

Michigan officials had aimed to retire the plant in May 2025 as part of a cleaner, more affordable grid after negotiations with state officials and advocacy groups.

Industry voices are divided: opponents say the orders prop up aging coal plants with health and climate costs, while supporters argue they prevent outages during high-demand periods.

The case is seen as part of a broader political fight over energy policy, with critics accusing the administration of misusing fossil fuel subsidies and emergency powers.

Friday’s decision is the first ruling in a broader challenge to six DOE emergency orders; it addresses only the May 2025 order, leaving other orders and petitions unresolved.

Advocacy groups, including the Michigan League of Conservation Voters, hailed the decision as a win for ratepayers and environmental protections and credited state efforts against federal overreach.

Key figures cited include Energy Secretary Chris Wright, Michigan Attorney General Dana Nessel, and environmental groups, with Judge Pillard authoring the unanimous decision.

Environmental groups, such as the Environmental Defense Fund and the Sierra Club, celebrated the ruling as a step away from propping up costly coal plants at public expense.

Advocates for the decision framed it as protecting Midwest families and environmental health by curbing the administration’s emergency powers to subsidize aging coal capacity.

Leaders from EDF and the Sierra Club characterized the outcome as a check on federal overreach and a move toward retirement of the Campbell plant and similar facilities.