DOE Extends Emergency Order for Washington Coal Plant Hours After Court Rejects Similar Mandate

On Friday, September 11, 2026, just hours after a federal appeals court struck down the Department of Energy's use of emergency powers to keep a Michigan coal plant open, Energy Secretary Chris Wright issued a new emergency order extending the life of Washington state's last coal-fired power plant. The directive orders TransAlta Centralia Generation to keep Unit 2 of its Centralia Generating Station available to operate through December 11, 2026, overriding a long-planned retirement.

The sequence of events began when a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit unanimously ruled that the DOE overstepped its authority under Section 202(c) of the 1935 Federal Power Act. The court invalidated a May 2025 order that had forced the 64-year-old J.H. Campbell plant in Michigan to remain online past its scheduled closure date.[1][3][4]

In the ruling, Appeals Court Judge Cornelia Pillard wrote that the emergency statute "is essentially a narrow, last-resort backstop." The court found that the DOE's use of the provision to halt planned retirements disrupted state-level resource adequacy planning and invited federal interventions unsupported by the law.[3][4][5]

Despite the judicial rebuke, the DOE immediately applied the same statutory authority to the Centralia facility in Washington. The plant, which operates under a 2011 agreement with the state to cease coal combustion, was originally scheduled to shut down its final unit at the end of 2025.

Secretary Wright defended the new order, arguing that the Northwest region faces elevated reliability risks during extreme weather. "America needs more reliable power, not less, and today's order will help ensure reliable electricity generation remains available to help address periods of peak demand," Wright stated, adding that the administration is committed to reversing "energy subtraction policies."

The DOE asserts that its interventions have prevented blackouts and saved more than 17 gigawatts of coal-power electricity generation from going offline nationwide in 2025. The agency cited a North American Electric Reliability Corporation assessment projecting energy shortfalls in the Western Electricity Coordinating Council region over the next five years.

However, state officials and environmental groups contend the emergency is fabricated. Data from the Energy Information Administration indicates that the Centralia plant has not generated any meaningful electric power since January 2026, despite previous DOE orders keeping it on standby. During the early months of the year, regional hydropower met 70 percent of total electricity demand, leaving the coal unit idle.[2]

"The Centralia plant hasn't been producing any power over this supposed 'emergency' period because the grid has more than enough electricity without it," said Ted Kelly, U.S. clean energy director at the Environmental Defense Fund. Kelly argued that the orders force families and businesses to bear the costs of keeping uneconomic plants operational.[2][3]

Those costs are substantial. TransAlta previously estimated it would need $23 million to repair and refurbish the aging coal-burning power plant to keep it in safe operating condition if ordered to remain on standby into the latter half of 2026. In Michigan, Attorney General Dana Nessel noted that the Campbell order had cost utility customers $180 million through March.[4]

The Centralia directive is part of a broader administration strategy that has utilized Section 202(c) to force at least seven fossil-fuel power plants to stay open across the country, including facilities in Colorado, Florida, Indiana, and Pennsylvania. These orders consistently override utility and state regulator decisions that determined it was prudent and safe to shut the plants down.[2][4]

The legal battle is expected to escalate. While the D.C. Circuit ruling directly addresses only the initial May 2025 order for the Michigan plant, environmental organizations are preparing to challenge the Centralia renewal in court. Meanwhile, the Department of Justice could seek a rehearing or appeal the appellate decision to the Supreme Court.[2][3]

For now, the Centralia order goes into effect on September 13, 2026. The facility will remain on standby, burning through maintenance budgets and stockpiling coal, waiting for a grid dispatch call that state regulators insist will never come.