DOE Emergency Orders Preserve Coal Plants Amid MISO Capacity Growth
The DOE's emergency orders prolong coal plant operations in MISO, despite surplus capacity from renewables. This preservation may lead to increased costs for consumers and hinder the development of more efficient energy solutions.
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The U.S. DOE has issued five emergency orders extending the operation of coal plants in MISO, preserving approximately 2.5 GW, despite MISO's adequate resource assessment. MISO's 2026/27 capacity auction showed a year-over-year increase of 4.8 GW, with significant growth in solar and battery energy storage (BESS) projects.
The anticipated reserve margin is above the 12% Reference Margin Level, indicating no immediate need for the preserved coal units. Consumers Energy reported $180 million in losses for operating the J.H.
Campbell plant, with costs impacting all MISO ratepayers. New projects, including a 2.7 GW natural gas plant and a 527 MW battery project, are being developed to replace the coal capacity, which is expected to phase out further with 8 GW of additional retirements planned through 2031. The reliance on coal may delay the transition to more efficient energy sources and increase electricity rates.
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