Colorado’s Craig coal plant forced to stay open despite steep costs and opposition
The US Department of Energy has ordered the Craig Generating Station Unit 1 in Colorado to remain operational until at least the end of March. Energy Secretary Chris Wright issued the directive, arguing it would secure a stable and affordable electricity supply for Americans. However, state officials and energy experts have strongly opposed the decision, warning of higher costs and grid reliability risks.
This marks the sixth such intervention by Wright this year, following similar orders for coal plants in Indiana, Michigan, Washington, and an oil-fired facility in Pennsylvania. The Craig plant, currently offline, would require millions in repairs before it could generate power again, according to Colorado Governor Jared Polis.
Keeping the unit running for just 90 days could cost around $20 million, while a full year might reach $85 million—or even $150 million if additional Department of Energy mandates apply, per a Grid Strategies report. Colorado Energy Office director Will Toor argued that the plant is unnecessary, as its power has already been replaced by new gas and renewable projects. He also noted that the plant’s coal supply is nearly exhausted, making further operation increasingly expensive. Toor criticised Wright’s decision as ideologically driven, claiming it would hinder the deployment of wind and solar energy while raising electricity prices for Colorado consumers. Previous extensions of ageing coal plants, such as Consumers Energy’s $80 million overrun in Michigan, have already burdened ratepayers with extra costs. No individual or organisation has yet been publicly identified as responsible for managing the plant’s extended operation under the DOE’s order.
The order extends the life of a plant that state officials say is no longer needed. If enforced, it will likely increase costs for Colorado’s electricity customers. The dispute reflects broader tensions over the transition from coal to renewable energy sources.
