Federal Directive Forces Colorado Coal Plant to Extend Operations
December 31, 2025
News & Politics

Federal Directive Forces Colorado Coal Plant to Extend Operations

Tri-State Generation and Transmission Association compelled to maintain power output despite retirement plans

Summary

The Trump administration has issued an order requiring the continued operation of Unit 1 at the Craig Station coal-fired power plant in northwestern Colorado, overriding the scheduled retirement of the unit. The directive aims to address regional electricity shortages but imposes additional costs on the plant's owners. This move aligns with the administration's broader effort to support the coal industry amidst a nationwide shift toward cleaner energy sources.

Key Points

The Trump administration ordered the continued operation of Unit 1 at the Craig Station coal plant in Colorado, overriding planned retirement.
Tri-State Generation and Transmission Association will incur costs to repair the plant’s broken valve and comply with the federal directive, potentially passing these costs to cooperative members.
The move is part of a broader federal effort to sustain coal-fired power generation despite industry trends towards cheaper, cleaner energy sources and regulatory pressures.

In a recent move reflecting the ongoing national debate over energy production, the Trump administration directed the owners of Colorado’s Craig Station to keep one of their coal-fired generators operational beyond its planned shutdown date. The Colorado facility, operated by the Tri-State Generation and Transmission Association along with other stakeholders, had scheduled the retirement of its 446-megawatt Unit 1 on Wednesday, but the federal government’s order now mandates continued service.

The directive, issued by Energy Secretary Chris Wright, compels Tri-State and its partners to repair a malfunctioning valve that had taken Unit 1 offline as of December 19, 2023. Restoring the unit will come at a cost to the cooperative, which is owned and operated for the benefit of its members.

This order is consistent with similar initiatives from the Department of Energy aimed at preserving coal-based electricity generation in states such as Indiana, Washington, and Michigan. Such actions correspond with President Donald Trump’s administration’s focus on revitalizing the coal sector, even as energy providers increasingly transition to less expensive and cleaner alternatives like natural gas and renewable sources. Notably, the administration has also impinged on the expansion of renewable energies, including wind power.

Craig Station’s Unit 1, established approximately 45 years ago and one of three units at the site, was originally slated for closure by the end of 2025. The facility’s other two units are scheduled for retirement in 2028. The plant sources its coal from the adjacent Trapper Mine, which is also marked for closure.

Tri-State had contemplated shutting down Unit 1 since 2016 due to economic considerations and the need to comply with various state and federal regulations. The cooperative’s CEO, Duane Highley, indicated that the financial burden of meeting the federal government’s compliance order would fall on its members unless an alternative cost-sharing arrangement is established with regional stakeholders.

When queried about specific expenses and the timeline required to bring Unit 1 back online, Tri-State’s spokesperson Amy Robertson declined to provide further details.

Energy Secretary Wright justified the emergency order by citing a regional shortfall in electricity supply and generation capacity in the northwest United States. He emphasized the administration’s commitment to maintaining affordable energy prices and protecting American families.

Local perspectives on the order vary, with industry workers acknowledging the limited impact on the area’s shifting energy landscape. Wade Gerber, an employee at the plant, remarked that the ongoing political debates surrounding coal’s future do not alter the economic transition facing communities like Craig, Colorado. Gerber pointed out the uncertainty of prolonged federal support for coal and shared plans to diversify his career in anticipation of future changes.

State officials have expressed criticism, labeling the federal mandate as an unnecessary imposition on electricity consumers who would ultimately bear higher costs. U.S. Senator Michael Bennet characterized the directive as unacceptable and detrimental to ratepayers.

The Craig Station power plant, which began operations in 1980, continues to play a pivotal role in the local economy despite the scheduled decommissioning of its units and the pending closure of its associated coal mine. These developments underscore the ongoing tensions between federal energy policy, economic realities, and environmental considerations in the region.

Risks
  • The financial burden from mandated repairs and extended operations may increase costs for cooperative members and local ratepayers, impacting the utility sector’s pricing dynamics.
  • Continued reliance on aging coal infrastructure may conflict with environmental regulations and long-term sustainability, posing regulatory and operational risks within the power generation sector.
  • The political uncertainty surrounding energy policy could lead to further disruptions, affecting investment decisions and economic stability in coal-dependent communities and related industries.
Disclosure
The reporting is based solely on the information publicly available regarding the federal order on the Craig Station coal plant and related statements from involved parties, without additional speculation or external context.
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