Utility director warns DOE orders could leave Coldwater customers on the hook for Campbell plant costs

Rudy Veil, director of Coldwater's Board of Public Utilities, told the board that federal Department of Energy orders have repeatedly required the J.H. Campbell coal plant to continue operating, producing potential regional cost exposures that could reach Coldwater through the MISO market.

Veil described the plant as "a 1,420 megawatt, coal plant" in West Olive owned and operated by Consumers Energy that was approved for decommissioning with a final shutdown in May 2025. He said successive DOE orders have allowed the energy secretary to invoke emergency measures requiring retired or retiring coal units to run for initial 90-day periods and, in some cases, additional 90-day extensions. Veil said order 202-25-3 (May 23, 2025), order 202-25-7 (Aug. 20, 2025) and order 202-25-9 (Nov. 18, 2025) are examples of such directives.

Veil told the board Consumers recently filed with FERC cost-recovery details for one 90-day operating period that Consumers estimated at about $120 million; he said Consumers recouped roughly $80 million of that through kilowatt-hour sales to members and that a remaining roughly $40 million balance would be allocated across the MISO footprint. Veil estimated MSCPA's share would be about $76,000 and stressed that Coldwater/MSCPA have no ownership interest in Campbell and do not take kilowatt-hours from the plant, but are part of MISO and therefore could share discrete portions of those recovery costs.

Board members asked whether running the plant would create grid instability if it shut down; Veil said models informed the DOE's decision and that uncertainty remains. He said options include petitioning FERC to challenge the cost formulas or recovery mechanism, but that such processes may ultimately lead to costs the region would pay. Veil also described that older plants have additional maintenance or "uncommissioning" steps when called back into service.

Veil framed the matter as a regional cost-allocation and regulatory issue rather than a local operational choice. He told the board the precise impact on Coldwater customers would depend on FERC final action and the outcome of any petitions; he recommended the board track the FERC filings and any MSCPA petition activity.

The board did not take formal action on this item; members asked for follow-up information and Veil said he would provide additional details after further research.