11/19/2025
What's up with the J.H. Campbell coal fired power plant burning through tax dollars in Michigan?
(James H. Campbell was an executive who served as the President of Consumers Power Company (now Consumers Energy) from 1948 to 1963.)
The $615,000-A-Day Coal Plant: A Federal Order Costs Michigan Millions
A federal emergency order is forcing a Michigan coal plant to stay open, costing hundreds of thousands of dollars daily and overriding state plans for a cleaner energy future.
The Bottom Line
The J.H. Campbell coal plant in West Michigan is operating at a staggering net loss of approximately $615,000 every day. This cost is not borne by the plant's owner, but is expected to be passed on to electric customers across 11 Midwestern states.
Key Facts at a Glance
· Plant: J.H. Campbell Plant, Unit 3 (Ottawa County, MI)
· Owner: Consumers Energy
· Federal Order: Requires the plant to remain open through at least February 2027.
· Planned Shutdown: The plant was scheduled to retire in May 2025.
· Total Net Loss (to date): Over $80 million and counting.
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A Clash Over Energy: Planned Shutdown vs. Federal Order
The story of the $615,000-a-day coal plant is a story of a collision between state energy policy and federal emergency powers.
For years, Consumers Energy had planned to retire the aging J.H. Campbell plant as a key part of its transition to cleaner energy. The utility and Michigan regulators had approved a plan that involved replacing the plant's capacity with solar power, battery storage, and other sources. This transition was projected to save ratepayers $600 million.
However, just days before the planned shutdown in May 2025, the U.S. Department of Energy (DOE) intervened. Using its authority under the Federal Power Act, the DOE issued an emergency order to keep the plant open, citing potential risks to grid reliability and the prevention of blackouts during peak demand.
This order has been renewed multiple times, most recently extending the plant's mandatory operation through February 2027.
Where Does the $615,000 Daily Cost Come From?
The "$615,000 per day" figure is a net cost, meaning it's the loss after accounting for any money the plant makes.
Here’s a simple breakdown of the costs from the initial emergency period:
· Cost to Operate the Plant: $164 million
(Includes fuel, maintenance, and staffing for the aging facility)
· Revenue from Selling Power: $84 million
(The plant still generates and sells electricity to the grid)
· Net Loss: $80 million
When spread across the 130-day period it represents, this equals about $615,000 in net losses per day. These costs continue to accumulate as long as the federal order remains in effect.
Controversy and Legal Challenges
The federal order is highly controversial and faces significant legal and political opposition.
· Unnecessary and Costly: Michigan Attorney General Dana Nessel, state regulators, and consumer advocates argue the order is an unnecessary overreach. They contend that the grid reliability concerns are overstated and that the plant's capacity has already been reliably replaced. They see it as a political move that forces consumers to subsidize an expensive, polluting fuel source.
· Legal Battle: A coalition of state attorneys general, including Michigan's, has filed a lawsuit challenging the DOE's emergency orders, calling them "arbitrary and capricious."
· Environmental Impact: Environmental groups point out that keeping the plant open undermines state climate goals and continues its output of air pollution and greenhouse gases.
What Happens Next?
The J.H. Campbell plant remains online under federal mandate, with costs mounting daily. The outcome now rests on two parallel tracks:
1. The Courtroom: The ongoing legal challenge could potentially overturn the federal order, allowing the plant to finally retire.
2. The Grid Operator: The Midcontinent Independent System Operator (MISO) is working on long-term transmission upgrades that would eliminate the perceived reliability need for the plant, but these projects take years to complete.
For now, the meter is still running, adding hundreds of thousands of dollars to the tab each day in a stark example of the tensions in America's evolving energy landscape.
