Oil company Talen granted permission by the Department of Energy to surpass operational limits on an oil-fired unit during a heatwave, in order to prevent power outages.
U.S. Department of Energy Issues Emergency Orders to Extend Operation of Coal-Fired and Oil-Fired Power Plants
The U.S. Department of Energy (DOE) has been issuing emergency orders under the Federal Power Act Section 202(c) to extend the operation of coal-fired and oil-fired power plants beyond their planned retirement dates. These orders are designed to address grid reliability concerns during periods of extreme weather or other system stresses by keeping essential power plants online that would otherwise be retired or shut down.
Specific Instances
On July 28, 2025, DOE authorized the continued operation of the Wagner Unit 4 coal-fired generation unit in Maryland, coordinated with PJM Interconnection and Talen Energy, to avoid potential widespread load shedding due to transmission and generation constraints affecting the Baltimore Gas and Electric (BG&E) zone during extreme heat events.
In Michigan, DOE ordered the J.H. Campbell coal-fired power plant to remain operational beyond its planned retirement to ensure sufficient power supply during emergencies.
Implications
These emergency orders have multiple implications:
- Grid Reliability: DOE argues these measures prevent blackouts by ensuring adequate generation during extreme conditions or supply shortfalls, protecting critical customers and infrastructure.
- Regulatory Disruption: The orders bypass established state regulatory processes, often overriding decisions by utilities, state regulators, and other stakeholders who had approved plant retirements after evaluating cost, efficiency, and environmental impacts.
- Environmental and Health Concerns: Extending operations of aging fossil fuel plants increases emissions of climate-warming greenhouse gases and health-damaging air pollutants, conflicting with broader climate goals and posing risks to public health.
- Cost Impact on Consumers: Operating these plants beyond their economic or planned lifespans may increase costs for consumers, as older fossil plants generally have higher operating costs than cleaner alternatives.
Legal Challenges
Recently, at least two lawsuits were filed over DOE's emergency orders. On July 24, a suit was filed in the U.S. Court of Appeals for the District of Columbia Circuit by Michigan's attorney general challenging DOE's emergency order. The order was prompted by an imminent electric reliability emergency in the BG&E zone in Maryland, allowing a 400-MW oil-fired unit near Baltimore to run beyond its operating limits.
The Sierra Club, Natural Resources Defense Council, Michigan Environmental Council, Environmental Defense Fund, Environmental Law and Policy Center, Vote Solar, Union of Concerned Scientists, Ecology Center, and Urban Core Collective also challenged DOE's emergency order in a suit filed by Earthjustice.
In conclusion, DOE’s emergency orders temporarily keep critical coal- and oil-fired power plants online beyond scheduled retirements to prevent electricity shortages during system emergencies. However, these actions raise significant concerns about environmental harm, consumer costs, and interference with state-level energy planning and regulation.
- The ongoing operation of coal-fired and oil-fired power plants, extended by the U.S. Department of Energy, contradicts broader climate goals due to increased emissions of climate-warming greenhouse gases.
- The recent lawsuits against the Department of Energy highlight concerns about interference with state-level energy planning and regulation, as well as the potential risks to public health posed by continuing the operations of aging fossil fuel plants.
- Despite the grid reliability benefits of keeping these plants operational during extreme conditions, the orders bypass established state regulatory processes, occasionally overriding decisions made after evaluating cost, efficiency, and environmental impacts.
- The extension of coal-fired and oil-fired power plant operations beyond their planned retirements may increase costs for consumers, particularly due to the higher operating costs associated with older fossil power plants compared to cleaner alternatives.
- Acknowledging the potential for widespread load shedding during extreme heat events, the Wagner Unit 4 coal-fired generation unit in Maryland was authorized by DOE to remain operational, a move that raises environmental and health concerns due to the increased emissions involved.
