"The supposed reason for this order is an emergency caused by a shortage of generating capacity. "The reliable supply of power from the coal plant is essential for keeping the region's electric grid stable," according to a statement issued by the Department of Energy. Yet the Colorado Sun notes that Colorado's Public Utilities Commission had already analyzed the impact of its potential closure, and determined, "Craig Unit 1 is not required for reliability or resource adequacy purposes.""
"The order does not require the plant to actually produce electricity; instead, it is ordered to be available in case a shortfall in production occurs. As noted in the Colorado Sun article, actual operation of the plant would potentially violate Colorado laws, which regulate airborne pollution and set limits on greenhouse gas emissions. The cost of maintaining the plant is likely to fall on the local ratepayers, who had already adjusted to the closure plans."
DOE issued an emergency order keeping one Craig Station coal unit available, though Colorado regulators found the unit unnecessary for reliability or resource adequacy. The order requires availability rather than mandatory generation and could conflict with Colorado air-pollution and greenhouse-gas limits if the unit actually operated. Local ratepayers are likely to bear maintenance costs after planning for closure. Emergency authority stems from the Federal Power Act for wartime or sudden demand increases or shortages. The DOE rationale of expected future demand raises questions about whether the situation meets the statutory emergency standard and other limits on emergency orders.
Read at Ars Technica
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