The State of Colorado on Wednesday formally appealed a U.S. Department of Energy order issued under Section 202(c) of the Federal Power Act requiring the Craig Unit 1 coal plant to remain available for operation, despite its planned retirement on Dec. 31, 2025.
State officials argue the order is unjustified because Colorado is not experiencing an energy emergency, and regional reliability assessments show no elevated risk. Craig Unit 1 is currently inoperable due to damage, and state estimates place the cost of keeping the plant available at roughly $85 million per year without corresponding reliability benefits.
Gov. Jared Polis and Colorado Energy Office Executive Director Will Toor criticized the order as costly to ratepayers and inconsistent with Colorado’s PUC-regulated electric resource planning process, which relies on long-term forecasting, reserve margin standards and competitive resource solicitations. The state contends the DOE action undermines state authority, creates uncertainty for workers and the local community, and delays planned investment in lower-cost energy resources, prompting the appeal as a first step toward overturning the federal directive.