Federal Directive to Keep Coal Plants Online Clashes With Economic and Mechanical Realities
Washington D.C., Sunday, 18 January 2026.
The Trump administration is prioritizing energy independence by blocking coal plant decommissionings, a move experts warn disregards critical mechanical failures and threatens to burden the energy sector with billions in maintenance costs.
Administrative Intervention in Energy Markets
On January 15, 2026, the Trump administration formalized plans to prevent further coal plant retirements over the next three years, marking a significant federal intervention into utility management [1]. Energy Secretary Chris Wright characterized the initiative as a necessary measure to stop the “political closure of coal plants,” arguing that maintaining these facilities is essential to avoid blackouts and meet rising energy demands [1]. This announcement serves as a continuation of a policy trajectory observed over the last eight months, during which the Department of Energy (DOE) ordered five coal-burning power plants to remain operational despite their scheduled decommissionings [1].
Infrastructure Fragility and Cost Implications
While the administration positions this strategy as a safeguard for energy independence, the physical reality of the infrastructure presents immediate challenges. Two coal units ordered to stay online by the DOE in December 2025 have already broken down, underscoring the volatility of relying on aging hardware [1]. Industry data indicates that many of these facilities are more than 50 years old, requiring major repairs that experts warn could drive maintenance costs into the billions [4]. A pertinent example is the Craig Generating Station in Colorado; although a unit there was slated for retirement since 2016 for economic reasons, the Energy Department recently intervened to keep it active [1][3].
Jurisdictional Conflict: The Washington Case Study
The federal directive has precipitated a sharp legal confrontation in the Pacific Northwest. On December 16, 2025, Secretary Wright issued an emergency order to keep the TransAlta coal plant in Centralia, Washington, operational [2]. However, the plant shut down on December 19, 2025, adhering to a 2011 state law that mandated its closure by the end of the year [2]. On January 13, 2026, the Washington Attorney General’s Office formally requested that the DOE revoke the emergency order, with state attorney Kelly Wood asserting there is “no emergency” and noting that regional reservoirs are above capacity due to a wet season [2]. The DOE has a 30-day window to respond to this request before the state can sue to overturn the order, which is currently set to expire on March 16, 2026 [2].
Regulatory Shifts and Economic Realities
Beyond the Pacific Northwest, the administration is utilizing the EPA to enforce its energy agenda. On January 9, 2026, the EPA rejected Colorado’s Regional Haze Plan—which aimed to reduce emissions by closing coal plants—citing grid reliability concerns [3]. This decision affects a state where six of the eight coal-fired power plants are located near national forests or grasslands [3]. These regulatory maneuvers occur against a backdrop of shifting economic fundamentals; in 2025, renewable energy produced more electricity globally than coal for the first time, and Lazard identified utility-scale solar and wind as the cheapest forms of energy even without subsidies [3]. Despite this, the administration and congressional Republicans passed a spending bill in 2025 repealing tax incentives for wind, solar, and battery technologies, moving to support an industry where fossil fuel subsidies are estimated to cost Americans $757 million annually [3].