This summer, electricity prices are skyrocketing. Starting June 1, consumers started to feel the heat of poor decision-making at our regional grid operators, PJM and MISO. Unfortunately, there is more bad news: the federal Department of Energy is ordering two expensive, out-of-state power plants on the verge of retirement to stay open past their closing dates, at our expense.
Why is this happening?
In January, the White House declared a national energy emergency, defining “energy” as fossil fuels, biofuel, geothermal, nuclear, and hydropower — in short, everything except wind, solar, and batteries. In April, it asked the federal Department of Energy (DOE) to exercise its emergency authority to identify and prevent certain types of generation plants from retiring or converting to a new fuel source. In late May, DOE responded with two emergency orders to keep otherwise retiring plants open: J.H. Campbell Power Plant in Michigan and Eddystone Generating Station in Pennsylvania.
Emergency orders are supposed to be used for real emergencies, such as a natural disaster or war. Importantly, while these emergency orders have the authority to keep the plant open, they don’t determine who pays for them. Because both plants are in the same Regional Transmission Organizations (RTOs) that serve Illinois, Illinois customers are on the hook to keep them open.
Ameren customers: stuck with the J.H. Campbell Power Plant bill
Campbell, owned by Consumers Energy, is a coal-fired plant with three units that came online 45 to 63 years ago (between 1962 and 1980). The plants are dirty and outdated. Back in 2022, the owners of Campbell made a settlement to stop maintenance and upgrades, with the intention of retiring it this year. In the meantime, they started buying other resources, so there wouldn’t be any power supply loss from retiring Campbell. In short, there is a clear and reliable plan to safely retire Campbell.
But the DOE disagrees, and so someone has to pay to keep the plant open for (at least) an extra 90 days, to the tune of an estimated $100 million. Right now, Consumers Energy wants to spread the cost across the north and central zones of the Midcontinent Independent System Operator (MISO). Ameren customers in Illinois are part of these MISO zones and will have to pony up to keep this dirty, decrepit plant open.
ComEd customers: stuck with the Eddystone Generation Station bill
Eddystone, owned by Constellation, runs on oil or gas, and its two units were built 50 years ago (1974 and 1976). Just like with Campbell, Eddystone is dirty and outdated. It rarely runs–just a few times a year. When Constellation announced its intention to retire Eddystone back in 2023, PJM found that retiring it would cause no issues with grid reliability. The North American Electric Reliability Corporation, which makes sure that all regions of the country have enough electric resources, recently said that PJM was in good shape. In short, experts agreed that Eddystone can proceed to a smooth retirement.
But the DOE disagrees, and so someone has to pay to keep the plant open for (at least) an extra 90 days, to the tune of an estimated $5.1 million. Right now, the plan is to spread the cost across all PJM customers. ComEd customers in Illinois are part of PJM and will have to pony up to keep this dirty, decrepit plant open.
So…there’s not actually an emergency? But I still have to pay for these plants?
Yup.
Why should we pay for propping up expensive, out-of-state power plants? What is CUB doing?
CUB has joined other consumer and environmental advocates in challenging the DOE orders and related cost proceedings.
In the case of Campbell, CUB joined ELPC and 15 other groups in comments with the Federal Energy Regulatory Commission, arguing that there is no evidence that keeping the plant open will benefit customers. Forcing MISO customers to pay for a power plant that does not benefit them violates the Federal Power Act, we argue.
In the case of Eddystone, CUB joined the Maryland Office of the People’s Counsel and three other consumer advocates, including the Illinois Attorney General, on a challenge of the DOE order. No emergency exists, so it is illegal under the Federal Power Act to force customers to subsidize an uneconomic power plant.
