Michigan Coal Plant Extension Costs Reach 80 Million

By Andi Anderson

The Trump administration’s emergency directive to keep Michigan’s J.H. Campbell coal plant operating beyond its scheduled retirement has cost Consumers Energy and regional ratepayers at least $80 million since May, according to the company’s latest financial report.

Consumers Energy, Michigan’s largest energy provider, revealed the ongoing expenses in its third-quarter earnings report to regulators and investors. The utility said it will follow the U.S. Department of Energy’s outlined process to recover the costs by charging ratepayers across the Midwest.

The J.H. Campbell plant, located along Lake Michigan, was slated for closure earlier this year as part of Consumers Energy’s broader clean energy transition plan. However, the federal order required the company to keep the facility running to ensure grid reliability amid energy supply concerns.

“We expect those [orders] to continue for the long-term,” said Consumers Energy CEO Garrick Rochow during an investor call. “And we’re prepared to continue to operate the plant and comply with those orders.”

Although peak summer demand has passed, the company anticipates the emergency directives will remain in place for the foreseeable future. Operating an aging coal facility beyond its intended lifespan has significantly increased maintenance, labor, and fuel costs—expenses now being passed on to ratepayers.

The situation underscores the tension between federal energy reliability mandates and state-level clean energy goals. Michigan has been working toward reducing coal dependency and investing in renewable energy sources like wind and solar.

As Consumers Energy continues to balance compliance with federal directives and its long-term sustainability plans, public and regulatory scrutiny over cost recovery is expected to intensify in the coming months.

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