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Minnesota, Illinois AGs Sue Over Federal Orders Keeping Coal Plants Running

Federal emergency powers are being tested as states argue no grid crisis exists.

by Elyse S. Apel
April 08, 2026, 9:15 AM
in Energy, Legal, News, Politics
Reading Time: 3 mins read
A A
0

coal plant power lines
Minnesota Attorney General Keith Ellison is challenging the Trump administration over orders requiring coal-fired power plants in Indiana to remain open past their planned retirement dates. [some emphasis, links added]

Ellison, joined by Illinois Attorney General Kwame Raoul, filed the petitions for judicial review against U.S. Energy Secretary Chris Wright in the U.S. Court of Appeals for the District of Columbia Circuit.

Ellison argued the U.S. Department of Energy “unlawfully” invoked emergency powers to keep the plants operating, a move he said will increase costs for ratepayers throughout the Midwest, including those in Minnesota.

The states are challenging federal orders affecting the R.M. Schahfer power plant in Wheatfield, Indiana, and the F.B. Culley generating station in Newburgh, Indiana. Both facilities had been slated for retirement.

“It makes no sense for the federal government to force old, out-of-date, expensive, and polluting coal plants to continue operating far past when they were supposed to shut down,” Ellison said. “Continuing to operate these plants will ultimately raise energy costs for ratepayers.”

The orders were issued in December under Section 202(c) of the Federal Power Act, which allows federal intervention in the electric grid during emergencies. The federal government filed additional extensions on March 23.

Ellison and Raoul argue that no such emergency exists and say the administration exceeded its legal authority.

“Donald Trump doesn’t even have the legal authority to order these plans to continue operating,” Ellison said. “I’m suing to stop this unlawful action and prevent the Trump administration from raising Minnesotans’ energy costs and increasing pollution that leads to climate change.”

The Trump administration has defended similar actions as necessary to maintain grid reliability as electricity demand rises and more traditional power plants retire.

When President Donald Trump took office, he issued executive orders declaring an unlawful “national energy emergency” and “terminating the Green New Deal.”

The R.M. Schahfer coal power plant in Indiana. Image via Northern Indiana Public Service Company.

A July 2021 report from the U.S. Department of Energy warned that the country could face a significantly higher risk of power outages by 2030 if coal and natural gas plants continue to shut down as planned.

The report, ordered by Trump as part of an April 2025 executive order, found closures could increase outage risks by as much as 100 times without intervention and urged keeping existing generation capacity online.

“Our nation possesses abundant energy resources and capabilities such as oil and gas, coal, and nuclear,” the report said.

It applauded deregulation and permitting reform by the Trump administration, but argued that it would not be enough if plants continue to close.

“However, even with these foundational strengths, the accelerated retirement of existing generation capacity … undermines this energy outlook,” it said. “Absent decisive intervention, the nation’s power grid will be unable to meet projected demand for manufacturing, re-industrialization, and data centers driving artificial intelligence (AI) innovation.”

That report faces a lawsuit from a multi-state coalition, as previously reported by The Center Square.

Wright said emergency orders are intended to ensure sufficient generation capacity throughout the Midwest.

“The last administration’s energy subtraction policies had the United States on track to likely experience significantly more blackouts in the coming years—thankfully, President Trump won’t let that happen,” Wright said of the March extension. “The Trump Administration will continue taking action to keep America’s coal plants running to ensure we don’t lose critical generation sources.”

A similar dispute is playing out in Michigan. Just hours before its planned closure last May, the J.H. Campbell coal-fired plant in West Olive was ordered to remain open under a federal emergency directive.

Michigan Attorney General Dana Nessel challenged the move in July, calling it a “manufactured emergency” and arguing the federal government was overstepping its authority to keep open coal plants.

She also warned the plant’s extension would significantly raise costs for consumers, with some reports stating an additional $134 million for just six months of operation.

Wright has filed multiple extensions for that plant since last year, and it remains operational. Nessel has challenged each of those extensions to no avail.

Similar concerns are central to Minnesota’s lawsuit.

Read more at The Center Square

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