Trump Administration Compels Craig Coal Plant to Sustain Operations

The Trump administration has mandated that the Craig Coal Plant’s Unit 1 remain operational, citing an urgent need for electricity. This directive was issued to Tri-State Generation and Transmission just before the unit’s planned closure on Wednesday. Emergency conditions, including increased demand and the accelerated retirement of generation facilities, were identified by the U.S. Department of Energy (DOE) as potential threats to power supply stability.

Details of the Directive

The DOE’s order requires Tri-State to ensure that Craig Unit 1 operates continuously until March 2026. The unit was initially slated for closure due to compliance with clean air regulations and economic concerns. Tri-State reported a recent mechanical failure further complicating the plant’s status.

Financial Implications

Keeping Craig Unit 1 operational is expected to cost around $85 million annually, with fuel expenses making up two-thirds of that figure. Tri-State is assessing how to manage these additional operational costs without unduly burdening its members.

• Annual operating cost of Craig Unit 1: $85 million
• Fuel costs constitute two-thirds of the overall expense

Political Response and Community Impact

The Trump administration’s decision has sparked backlash from Colorado officials and environmental organizations. Governor Jared Polis criticized the order, stating it could cost Colorado ratepayers millions to maintain a non-operational and outdated plant. This directive highlights the tensions between state energy policies and federal actions.

Tri-State serves 41 rural electric cooperatives and public power districts across four states, with many located in Colorado. The plant is co-owned by Xcel Energy and the Platte River Power Authority, who will share the financial burden of continued operations.

Concerns Over Emergency Justification

Critics argue that the administration’s use of emergency provisions under the Federal Power Act is unwarranted. They point out that the North American Electric Reliability Corporation (NERC) assessed adequate generation capacity for 2026, which undermines claims of a current crisis.

Future Energy Plans

Currently, Colorado is transitioning its energy strategy to close its remaining coal-fired plants by 2031, aiming to replace them with renewable and gas-fired sources. The state’s plans include the construction of a 307-megawatt natural gas plant and 200 megawatts of battery storage at the Craig site.

This situation reflects broader discussions on energy policy, balancing traditional energy sources with future sustainability goals. As federal and state policies clash, local communities will bear the financial consequences of these decisions.