Federal Order Keeps Colorado Coal Plant Running Amid Ongoing Energy Debate

The U.S. Department of Energy has extended an emergency order to keep a decades-old coal-fired power plant in northwest Colorado operating beyond its planned retirement date.

Energy Secretary Chris Wright originally issued the order on December 30, just one day before Unit 1 at Craig Station in Moffat County was set to shut down. The directive was issued under Section 202(c) of the Federal Power Act, a provision that allows the government to require power plants to continue operating during emergencies such as energy shortages.

The initial order kept the plant running through March 30, citing what Wright described as an energy “emergency” across the western United States. According to the department, concerns included limited electricity supply and insufficient generation capacity.

That order has now been extended through at least June 28. In the latest decision, Wright warned that retiring power plants too quickly could increase the risk of outages, potentially impacting homes and businesses and raising concerns about public health and safety.

The move, however, has sparked strong opposition from environmental groups and state officials.

Earthjustice attorney Leslie Coleman criticized the extension, arguing that the order primarily benefits the coal industry while placing additional financial strain on Colorado residents. She noted that keeping the aging facility operational requires costly maintenance—expenses that could ultimately be passed on to consumers.

The situation has also drawn legal challenges. Phil Weiser, along with a coalition of environmental organizations, has filed lawsuits against the Department of Energy. The lawsuits claim the agency is overstepping its authority under the Federal Power Act.

Weiser has argued there is no true energy emergency and warned that extending the plant’s operation could lead to higher electricity costs and increased pollution across the region.

The Craig Station facility is co-owned by several energy providers, including Tri-State Generation and Transmission Association and Platte River Power Authority—both of which have expressed opposition to the federal order.

The plant, now more than 40 years old, was already offline in December due to a valve failure when the emergency order was issued. Its owners had previously requested that the Department of Energy reverse the decision, citing concerns that customers would bear the full financial burden of continued operations.

Despite the controversy, the plant remains operational for now. Meanwhile, Tri-State has announced long-term plans to retire the remaining coal-fired units at Craig Station by 2028.

As legal battles continue and energy policy debates intensify, the future of coal-fired power in the region remains uncertain.

(Information was taken from The Aspen Times)