The Trump administration has directed that Craig Station's Unit 1, a coal-fired power plant in northwest Colorado, remain operational, a decision that has met opposition from the plant's co-owners, Tri-State Generation and Transmission Association and Platte River Power Authority.
Background of the Directive
President Trump's administration has taken multiple actions to support the coal industry, including signing an executive order directing the U.S. Department of Defense to purchase electricity from coal plants.
The administration has also issued emergency orders to extend the operation of eight coal units beyond their planned retirement dates, citing concerns over power bills and grid stability. Environmental groups and several states have challenged these orders.
Dispute Over Craig Station
In 2016, the operators of Craig Station decided to close Craig 1 by the end of 2025, deeming it the most cost-effective option to serve customers and meet air quality standards.
However, the federal government issued an order to keep the plant open and available for 90 days just before its scheduled closure.
Colorado's attorney general and environmental groups challenged this order in late January. Subsequently, Tri-State and Platte River filed a petition with the U.S. Department of Energy (DOE) requesting reconsideration.
Owners' Arguments and Federal Response
Tri-State and Platte River contend that they have developed sufficient solar and wind farms, rendering Craig 1 unnecessary. They argue that forcing the plant to remain open necessitates buying coal and investing in maintenance.
They describe this as an "uncompensated taking" of their property in violation of the Constitution.
DOE spokesperson Caroline Murzin stated that the U.S. requires substantial additional electricity generation to support domestic manufacturing and the artificial intelligence sector, citing President Trump's leadership in energy dominance to reduce costs and strengthen the grid.
Tri-State CEO Duane Highly indicated that ratepayers would bear the costs associated with keeping Craig 1 operational. An analysis for the Sierra Club by Grid Strategies estimated these annual costs could range from $85 million to $150 million, in addition to expenses for new renewable energy projects.
Federal Authority and Legal Challenges
The federal government can intervene in power plant operations under the Federal Power Act. Historically, the Energy Department has primarily used this authority during emergencies such as wars or extreme weather events.
Tri-State and Platte River assert that no emergency justifies the order for Craig 1.
A similar legal challenge regarding a Michigan coal plant, which has been open since May 2025 under a federal order, is expected to receive a court decision next summer. This decision could influence the legal boundaries of the Trump administration's directives on coal plant operations.