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Department of Energy Blocks Closure of Power Plants

The Department of Energy (DOE) has stopped the planned closures of several old power plants, saying they are needed to keep the power grid reliable. This decision marks a clear shift in federal energy policy and is backed by President Trump, who has emphasized the need to keep America’s energy supply strong and secure.

Emergency Orders to Keep Plants Running

On May 31, the DOE issued an emergency order telling PJM Interconnection, the organization that runs the electricity grid for over 67 million people across 13 states and Washington, D.C., to keep two units at the Eddystone Generating Station in Pennsylvania running. These units burn oil and natural gas and were supposed to shut down on May 31. PJM said this was the largest power grid in North America, so the decision has broad impact.

The DOE explained the move was necessary “due to resource adequacy concerns given the timing of the retirement of the generation units coinciding with sustained increased energy demand.” U.S. Secretary of Energy Chris Wright added, “Maintaining access to affordable, reliable, and secure power is always our top priority, particularly during the summer months when electricity demand reaches its peak.” He said, “Americans should never be left wondering whether they will be able to turn on their lights or air conditioning. This emergency order helps keep money in consumers’ pockets while keeping their homes and businesses fully powered.”

Constellation Energy, the company that owns the Eddystone plant, agreed to keep it running through the summer and said it would also “investigate the possibility” of keeping it open even longer, until it can restart Pennsylvania’s closed Three Mile Island nuclear plant. Constellation said it was working with PJM to bring the reactor back online by 2027, though it had earlier said 2028.

The order for Eddystone followed a similar decision on May 30, when the DOE ordered the J.H. Campbell coal-fired plant in Michigan to stay open past its planned shutdown. This plant, which started in 1962, was supposed to close because of an agreement with the community and the utility’s plan to move away from coal. Instead, the DOE required it to keep running for at least three more months.

A Shift in Energy Policy

For years, federal and state policies encouraged shutting down older, fossil fuel-based power plants and replacing them with wind, solar, and other renewable sources. Between 2020 and 2024, 15.896 gigawatts of power capacity were retired, while only 8.518 gigawatts of new energy capacity were added. Most of the new capacity came from wind and solar, which can only produce power when the weather allows.

PJM President Manu Asthana said at a House hearing in March that there is a growing risk to the power grid because of how quickly older fossil fuel plants are shutting down. “The pace of retirements of existing dispatchable fossil-based resources, largely due to state and federal policies, is clearly outpacing the rate of construction of new resources,” he said. “The rate of electricity demand is anticipated to increase significantly in the future due to the development of large data centers in the PJM service area. There have also been increases in demand coming from the electrification of the transportation and heating sectors and from industrial growth.”

At that same hearing, Rep. Bob Latta of Ohio said, “It is no secret our country is in the midst of a reliability crisis, and it could not come at a worse time.” He warned, “It is not clear the pace at which baseload generation is coming online will bridge the gap of retiring supply and meet increasing demands over the next few short years.” Brett Guthrie, chair of the Energy and Commerce Committee, said the gap between retiring generators and growth in demand is over 240 gigawatts, which is enough power to supply 195 million homes for a year.

Trump’s Push for Fossil Fuels

President Trump has taken a different approach, saying that energy production must be strong and reliable. He believes that closing too many plants too fast could leave America short of power. In an April executive order, Trump told the DOE to take any steps needed to keep fossil fuel plants running if they were being replaced by wind or solar power.

The DOE said in a statement to The Washington Post, “This administration is committed to ensuring Americans have access to reliable, affordable, and secure energy that isn’t dependent on whether the sun shines or the wind blows.” The department believes that shutting down reliable fossil fuel plants too quickly will create power shortages.

Some lawmakers in Michigan, like state Rep. Luke Meerman, supported the decision to keep the Campbell plant open. He said, “I hope it stays open for more than just a few months. Given it has a lifespan out to 2040, it seems premature and a waste of resources to shut it down.”

Critics Warn of Costs and Pollution

Many experts and environmental groups disagree with keeping old fossil fuel plants running. They argue it will lead to higher electricity bills and more pollution. Kit Kennedy from the Natural Resources Defense Council said, “The Department of Energy’s move to keep these zombie plants online will have significant public health impacts and increase electricity costs for people in Michigan and Pennsylvania. These dirty and expensive fossil plants were slated to close because they could not compete with cheaper, cleaner alternatives.”

Dan Scripps, who leads the Michigan Public Service Commission, said, “It came as a surprise to everybody, and it was baffling why they chose this plant. Nobody asked for this order. The power grid operator did not. The utility that owns the plant did not. The state regulator did not.”

Howard Learner, CEO of the Environmental Law and Policy Center, said, “This is just bad policy. It is moving us backward by imposing what may be significant costs on ratepayers to run a coal plant which is no longer economic and regulators have found is not necessary.”

What Will Change Moving Forward

The DOE’s actions show that the administration plans to keep more fossil fuel plants operating, even if they were scheduled to close. In some states like Nebraska, lawmakers have passed laws saying that any closed coal, gas, or nuclear plant must be replaced by a plant that can run all day and all night. In Texas, new rules require that starting in 2027, all new wind and solar power be paired with other resources that can make up for any gaps.

The Energy Information Administration expects a 13 percent increase in electricity prices for homes this year compared to 2022, so energy policy changes will affect household budgets. The DOE says the emergency orders are needed to avoid blackouts and keep prices down. Critics argue that these steps will delay the switch to cleaner energy and make electricity more expensive over time.

FAM Editor: What happens if you close energy plants without having a replacement? Look at Europe right now, having closed nuclear and coal plants – and now having to close factories and make sacrifices in living standards. Stupid.

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