Trump Administration’s Sham Coal Plant Order Will Cost Ratepayers, Harm Colorado Communities

Trump Administration's Sham Coal Plant Order Will Cost Ratepayers, Harm Colorado Communities

Emergency order will force Craig Unit 1 to remain available beyond December retirement date

Contacts

Perry Wheeler, Earthjustice, [email protected]

The Trump administration today issued a 202(c) order to prevent the planned retirement of Unit 1 at Craig Station. The unit was supposed to retire tomorrow. The illegal emergency order, issued under the Federal Power Act, will force the coal plant to remain available for 90 days, but may be renewed. The order threatens to raise ratepayers' utility bills and worsen air quality for surrounding communities.

Under the order, the plant should operate only as a last resort in an actual emergency (and the Department of Energy presents no evidence of any actual emergency). According to a new analysis by Grid Strategies, if the plant is dispatched at its average output over the last few years, costs could rise to $20 million over 90 days, equating to approximately $85 million per year, or even upwards of $150 million per year if the plant is required to operate in must-run fashion. Those needless costs are likely to be borne by electricity customers in Colorado and nearby states.

The administration has already acted unlawfully to prevent the retirement of other coal plants, most recently, two coal plants in Indiana on December 23 and a coal plant in Centralia, WA on December 16th. Public advocacy groups led by the Sierra Club and Earthjustice recently filed the first-ever challenge in court to DOE's abuse of Section 202(c) of the Federal Power Act, following three consecutive 90-day orders forcing the aging J.H. Campbell coal plant in Michigan to continue burning coal. The cost of keeping J.H. Campbell open for the initial four months cost ratepayers $80 million.

"This order puts our communities at risk and turns back progress that Coloradans have fought tirelessly for," said Jessica Herrera, in-house counsel for GreenLatinos. "Once again, the administration is putting the fossil fuel industry before our health and well-being. GreenLatinos and our community partners will not allow the administration to undo years of substantial work to close coal plants and ensure a just transition."

"By forcing Unit 1 at Craig Station to stay online past its planned retirement date, the administration is disregarding both the law and the needs of Colorado communities," said Vote Solar's Regulatory Director for the West, Claudine Custodio. "This order saddles families with higher utility bills, prolongs the health impacts of outdated coal pollution, and undermines years of work toward a clean, affordable, and reliable energy future. Coloradans deserve a responsible, just transition to clean energy, not last-minute federal interventions that put our communities and progress at risk."

"This coal plant emits dirty air and haze pollution that harm our beloved Southwest national parks like Rocky Mountain and many others," said Ulla Reeves, clean air program director for National Parks Conservation Association. "Its closure will mean cleaner air for parks and people and we are deeply disappointed by the effort by this administration to order it to stay online past its planned retirement deadline."

"Keeping this dirty and outdated coal plant online will harm the health of surrounding communities and hurt all of our pocketbooks," said Michael Hiatt, deputy managing attorney with Earthjustice's Rocky Mountain Office. "This unlawful order will benefit no one but the struggling coal industry. We are prepared to take action to defend Colorado communities and ensure a just transition."

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