DOE Renews 202(c) Order Keeping JH Campbell and Schahfer Coal

The US Department of Energy has renewed orders compelling MISO and Consumers Energy to keep the J.H. Campbell coal-fired plant in West Olive, Michigan, operational from February 17 through May 18, 2026, according to the agency’s filing. This order affects approximately 1,170 MW of capacity. Separately, Order 202-26-19 mandates MISO and NIPSCO to ensure Units 17 and 18 at the Schahfer Generating Station in Wheatfield, Indiana, remain available from March 24 through June 21, 2026, contributing approximately 920 MW. As of April 2026, the Department of Energy’s actions have delayed the retirement of at least 4.4 GW of coal capacity nationwide, per the agency’s Q1 release.

What Actually Changed

Order 202-26-16, issued by the Department of Energy, directs MISO and Consumers Energy to keep the J.H. Campbell coal-fired plant in West Olive, Michigan, operational from February 17 through May 18, 2026. This order affects approximately 1,170 MW of capacity. Separately, Order 202-26-19 mandates MISO and NIPSCO to ensure Units 17 and 18 at the Schahfer Generating Station in Wheatfield, Indiana, remain available from March 24 through June 21, 2026. These units contribute approximately 920 MW. As of April 2026, the Department of Energy’s actions have delayed the retirement of at least 4.4 GW of coal capacity nationwide, according to the agency’s Q1 release.

Grid-Reliability Justification

The Department of Energy cites findings from MISO, indicating a significant shift in resource-adequacy risk. MISO data suggests this risk is no longer confined to summer months but has become a year-round concern. More than 60% of MISO’s MaxGen emergency events, a measure of grid stress, now occur outside the traditional summer peak period, per MISO’s Q1 report. MISO itself issued grid alerts on 40 of the 69 days between June 11 and August 18, 2025. Furthermore, the OMS-MISO survey projects a capacity deficit for MISO, estimating a shortfall of 1.4 GW in 2027, projected to grow to 8.2 GW by 2030, according to the survey’s findings.

Enforcement Reality

The enforcement of these Section 202(c) orders places financial burdens on utilities and, by extension, ratepayers. The cost of keeping these plants online, often uneconomic, is borne by consumers. While the Department of Energy issues these orders under Federal Power Act authority, their enforcement mechanisms are tied to compliance by the named entities. Court challenges are emerging, with state attorneys general and consumer advocates arguing that the Department of Energy is forcing ratepayers to subsidize aging power plants without adequate review of cost recovery, according to their legal filings.

Why It Matters

These Department of Energy orders have substantial implications for utilities, customers, and the broader energy transition. Utilities are compelled to operate plants that may no longer be economically viable, potentially impacting their financial health and investment strategies. Customers face higher electricity costs as they subsidize these older facilities. For the coal-retirement schedule, these interventions represent direct delays, potentially slowing the transition to cleaner energy sources and impacting emissions reduction targets.

Critical Perspective

Despite the Department of Energy’s assertions of grid reliability needs, a critical perspective questions the necessity of forcing coal plants online. The Department of Energy itself estimates that over 35 GW of unused backup generation remains available nationwide, according to its own data. This substantial reserve capacity raises questions about whether the current grid stress truly necessitates the continued operation of older, less efficient, and more polluting coal facilities, especially when alternative generation resources are reportedly available.

Sources

• https://www.powermag.com/doe-has-issued-more-than-40-section-202c-emergency-orders-since-may-2025-heres-an-updated-log/
• https://www.energy.gov/ceser/2026-doe-202c-orders
• https://www.power-eng.com/coal/doe-orders-more-coal-units-to-stay-online-under-emergency-authority/

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