US Plans to Use Emergency Powers to Save More Coal Plants

(Bloomberg) -- The Trump administration plans to continue using emergency authority to stop coal-fired power plants from retiring, according to people familiar with the matter. 

The Energy Department has already issued emergency orders to halt the retirement of two fossil fuel-fired plants, and plans to use the same process to keep others operating, said the people, who asked not to be named discussing internal matters. 

Although such orders are typically reserved for natural disasters or war, the agency used them to save a Michigan coal-fired power plant owned by Consumers Energy and a Pennsylvania oil-and-gas generator owned by Constellation Energy Corp. 

“This administration’s policy is going to be to stop the closure of coal plants,” Energy Secretary Chris Wright said Wednesday during an event held by the New York Times. Shutting down coal-fired power plants “that are working today” would drive up electricity prices, and hinder efforts to reindustrialize the US economy, he said.  

A total of 27 gigawatts of coal-power generating capacity, or about 16% of the US total, is scheduled to retire by the end of 2028, according to the Energy Information Administration. 

The Trump administration has prioritized expanding the use of a coal and argued that closing fossil fuel-powered plants threatens the grid as AI drives up demand. At the same time, the White House has halted wind projects and rolled out policies that disadvantage solar and other renewable energy sources.

“On day one of this administration, President Trump declared an energy emergency,” Energy Department spokesman Ben Dietderich said. “Secretary Wright and the Trump administration remain committed to exploring all options necessary to ensure affordable, reliable and secure energy access for the American people.”

Using emergency powers to save coal plants has drawn criticism from regulators and environmentalists who said no emergency exists and that such orders would increase consumer electricity costs. 

“Despite Americans’ concern about rising bills, the Trump Administration wants to force electricity customers across the country to bail out a dying coal industry,” said Michael Lenoff, a senior attorney for  Earthjustice, said in a statement. “The marketplace is dictating coal plants’ retirement because they are frequently broken, dirty and expensive.”

(Updates with Energy Department response in seventh paragraph, environmental group in last graph.)

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