Key Takeaways
- The U.S. Department of Energy has issued an emergency order to keep a Colorado coal plant open until March 30, 2026, which can be extended.
- The order has drawn criticism from the governor’s office and environmental groups, who argue that there is no emergency that requires the plant to stay open.
- The plant’s closure was planned as part of Colorado’s push to phase out coal plants, and the order may lead to significant costs for customers of Tri-State Generation and Transmission Association.
- Environmental groups, such as Earthjustice, have stated that the order is illegal and that they are prepared to take action to defend Colorado communities.
Introduction to the Emergency Order
The U.S. Department of Energy issued an emergency order late Tuesday to keep the Craig Station coal plant in Colorado open, just one day before it was slated to close. The plant, which is owned and operated by Tri-State Generation and Transmission Association, a cooperative that delivers electricity to rural communities in Nebraska, New Mexico, Wyoming, and Colorado, is now required to keep running until March 30, 2026. The order can also be extended, which has drawn a furious response from the governor’s office and environmental groups.
Response to the Emergency Order
Governor Polis has stated that the order would lead to a huge spike in costs to repair the plant, which may be borne by customers of Tri-State Generation and Transmission Association. The governor argued that the plant is "broken and not needed" and that the order would pass tens of millions of dollars in costs to Colorado ratepayers. Environmental groups, such as Earthjustice, have also criticized the order, stating that it is illegal and that the Department of Energy’s claims of an energy emergency are unsupported. Earthjustice has already sued the Trump administration over other emergency orders to keep coal plants open and has stated that it is prepared to take action to defend Colorado communities.
The Law Behind the Emergency Order
The Department of Energy Secretary, Chris Wright, invoked Section 202(c) of the Federal Power Act to keep the plant open. This law allows the federal government to order power plants to stay open during emergencies, such as times of war, in the aftermath of disasters, or when there is a shortage of electricity. However, this year, the Trump administration has repeatedly used the law to keep the lights on at plants in Michigan, Pennsylvania, Indiana, and other states. The Department of Energy has stated that Colorado is on the verge of facing a dire energy emergency due to the retirement of power plants and a spike in electricity demand, and that losing Craig Unit 1 could lead to a loss of power to homes and businesses, presenting a risk to public health and safety.
The Costs of Keeping the Plant Open
Keeping coal plants open can be expensive, as it often disrupts years of planning by regulators and utility companies. One analysis by the firm Grid Strategies, prepared for the Sierra Club, found that it could cost around $85 million to run Craig 1 for a year at its average output. These costs may be passed on to customers in the form of higher bills. The plan to close Unit 1 has been in the works for years and is part of Colorado’s push to phase out coal plants. While the Department of Energy’s order may have upended those plans, it is hardly a surprise, as Tri-State has stated that it has been expecting the order for months.
The Impact on Colorado Communities
The decision to keep the Craig Station coal plant open has significant implications for Colorado communities. The plant’s closure was planned as part of the state’s efforts to transition to cleaner energy sources and reduce its reliance on coal. The Department of Energy’s order may delay this transition and could lead to significant costs for customers of Tri-State Generation and Transmission Association. Environmental groups, such as Earthjustice, have stated that they are prepared to take action to defend Colorado communities and ensure a just transition to cleaner energy sources. The outcome of this situation will likely have a significant impact on the future of energy production in Colorado and the surrounding region.
Conclusion and Next Steps
In conclusion, the U.S. Department of Energy’s emergency order to keep the Craig Station coal plant open has drawn criticism from the governor’s office and environmental groups. The order has significant implications for Colorado communities and the future of energy production in the state. As the situation continues to develop, it is likely that there will be further action taken by environmental groups and the governor’s office to challenge the Department of Energy’s order and ensure a just transition to cleaner energy sources. The outcome of this situation will be closely watched, as it has significant implications for the future of energy production in the United States.