- The Department of Energy ordered Colorado’s Craig Station Unit 1 to remain operational through March 30.
- Plant operator Tri-State warned that keeping the unit online will be costly, and Colorado Gov. Jared Polis said the move could cost ratepayers about $85 million.
- The order aligns with the Trump administration’s broader push to slow fossil-fuel retirements nationwide, even as Colorado plans to remove more coal power from the grid and expand wind and solar generation.
The Department of Energy ordered a Colorado coal plant to continue operating through March 30, as other coal plants in the state prepare to close.
Craig Station, in the northwest corner of the state, holds three coal-fired generation units with a combined capacity of more than 1,400 megawatts. After 46 years of operation, Unit 1 was scheduled to close down on Dec. 31. Energy Secretary Chris Wright signed an order to keep it operational on Dec. 30.
Tri-State Generation and Transmission Association, a co-owner of Unit 1, said they are determining “the most cost-effective path” for compliance.
Retaining Unit 1 “will likely require additional investments in operations, repairs, maintenance and, potentially, fuel supply, all factors increasing costs,” the press release said.
Units 2 and 3 are scheduled to close in 2028.
The DOE worries about renewables inducing energy instability
The department’s recent order fits with its broader initiative of curbing the elimination of fossil fuels. Since President Donald Trump took office last January, Wright said the administration had “stopped the closure of over 15 gigawatts of power production capacity across the country.”
Without “decisive intervention, the nation’s power grid will be unable to meet projected demand for manufacturing, re-industrialization and data centers driving artificial intelligence (AI) innovation,” the order said.
Wright added in a statement, “Keeping this coal plant online will ensure Americans maintain an affordable, reliable, and secure supply of electricity.”
Though Colorado has a long history in coal mining, by 2029, roughly 3,700 megawatts of coal-powered energy will be removed from the grid. Additionally, Colorado’s natural gas production has been on the decline since 2020.
Wind and solar are expected to fill in the gaps, and so far, it has. In 2025, wind power generated more than 5,300 megawatts for the state.
Colorado Gov. Polis says reopening the coal unit will increase taxes
Following the order, Colorado Gov. Jared Polis told the Washington Examiner that repairing the plant and resuming power production will cost Coloradans $85 million.
“This order will pass tens of millions in costs to Colorado rate payers, in order to keep a coal plant open that is broken and not needed,” he said. Craig Station Unit 1 shut off on Dec. 19, prior to its end date, after a valve failed.
“Going backwards is an attempt to force local communities to foot the bill to extend plant operations, and will cost energy consumers more. Today’s action flies in the face of this careful planning, is inconsistent with market forces, and will hurt Coloradans,” Polis said.