Federal order keeps Colorado coal unit available despite planned closure

On Tuesday, U.S. Secretary of Energy Chris Wright issued an order requiring one of the three units at the Craig Station coal plant in Colorado to remain available after it had been scheduled to close at the end of this year. The plant’s remaining two units were expected to shut in 2028.

The Department of Energy said the action was prompted by a supposed shortage of generating capacity, saying, “The reliable supply of power from the coal plant is essential for keeping the region’s electric grid stable.” But Colorado’s Public Utilities Commission had previously analyzed the impact of the closure and concluded, “Craig Unit 1 is not required for reliability or resource adequacy purposes.” The order does not force the unit to produce electricity; it must be available in case of a shortfall.

Actual operation could potentially violate Colorado laws that regulate airborne pollution and set limits on greenhouse gas emissions. The cost of keeping the unit available is likely to fall on local ratepayers who had already adjusted to the planned closure. The DOE invoked emergency powers under the Federal Power Act, which allows temporary connection of generation or infrastructure when the U.S.

Key Topics

World, United States, Coal, Energy Policy, Department Of Energy, Colorado, Grid Reliability