Feds order coalfired Craig powerplant to remain open
Dec 31, 2025
The Department of Energy ordered Tuesday that one of three generating units at the Craig Generating Station be available for operation despite an impending shutdown of the plant and its supplying coal mines.
Secretary of Energy Chris Wright issued the emergency directive under section 202(c) of t
he Federal Power Act.
The order requires Tri-State Generation and Transmission Association and co-owners to maintain the unit’s readiness until March 30, 2026, citing shortages of electric energy and generation facilities across the Western Electricity Coordinating Council Northwest region.
The order thrust northwest Colorado’s coal country back into the national debate over climate change and energy reliability, delaying a long-planned shift away from fossil fuels that has divided residents weighing economic survival and environmental imperatives.
Gov. Jared Polis criticized the federal intervention in a statement.
“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,” Polis said. “Ludicrously, the coal plant isn’t even operational right now, meaning repairs — to the tune of millions of dollars — just to get it running, all on the backs of rural Colorado ratepayers!”
The targeted unit faces mechanical problems at present. Retirement had been set for Wednesday.
Craig evolved from a quiet agricultural town with unpaved roads and 2,000-2,500 residents in the 1930s to a coal-dependent community of more than 9,000.
Neil McCandless, a 94-year-old resident and veterinarian for over 50 years, recalled the town’s early days in an interview with The Denver Gazette.
“When I was a boy — my dad ran a newspaper — I could walk down there in the evenings and not see a car except parked along the road … Nothing driving, no streets were paved — a little sleepy town,” McCandless said.
The Colowyo coal mine near Craig, a primary supplier to the plant, ends operations this month. Owners notified 133 workers of layoffs effective Jan. 6, 2026.
Moffat County anticipates 437 job losses and a 43% drop in property tax revenue from the mine closure, intensifying hardships in a region where towering smokestacks have long dominated the arid landscape and defined livelihoods.
Will Toor, executive director at Colorado Energy Office, also criticized the order in a statement.
“This order makes absolutely no sense and will increase utility bills for Coloradans,” Toor said.
Duane Highley, Tri-State chief executive, pledged compliance in a statement released to the media.
“Tri-State has a policy of 100% compliance, and we will work with Unit 1 co-owners, and federal and state governments to determine the most cost-effective path to that end,” Highley said.
Environmental advocates argued the decision favors a struggling industry at the expense of health and progress.
Michael Hiatt, deputy managing attorney with Earthjustice’s Rocky Mountain Office, said in a news release that keeping the plant online harms communities and boosts costs.
“This unlawful order will benefit no one but the struggling coal industry,” Hiatt said.
Ulla Reeves, clean air program director for the National Parks Conservation Association, said in a news release that the plant affects national parks.
“This coal plant emits dirty air and haze pollution that harm our beloved Southwest national parks like Rocky Mountain and many others,” Reeves said. “Its closure will mean cleaner air for parks and people and we are deeply disappointed by the effort by this administration to order it to stay online past its planned retirement deadline.”
Craig Generating Station coal-fired powerplant outside of Craig, Colo. (The Denver Gazette, Scott Weiser)
EPA data rebut Reeves’ claim of continued particulate damage and haze from facilities like Craig. Colorado met the updated PM2.5 standards statewide, including park-adjacent areas, prompting the Air Quality Control Commission to recommend attainment status in January 2025.
U.S. Rep. Jeff Hurd, a Republican representing the district including Moffat County, said in comments to POWER Magazine that state policies have hurt working families.
“Colorado needs energy policy rooted in facts, reliability, and respect for the people who keep the lights on, not mandates written to satisfy political pressure from activists and Denver bureaucrats,” Hurd said.
Craig Mayor Chris Nichols said in comments to POWER Magazine that the order offers short-term benefits for jobs.
“It’s great for the community to keep those jobs active, even for a short period,” Nichols said.
Colorado Sen. Dennis Hisey has long opposed such closures in interviews with The Denver Gazette, arguing they eliminate good-paying jobs without viable replacements.
“You’re just not going to retrain coal miners … to work in the tourism industry,” Hisey said.
Hisey advocated small modular nuclear reactors as alternatives in interviews with The Denver Gazette.
“Replace good paying jobs with good paying jobs,” Hisey said.
Craig leaders advance diversification through industrial parks, rail infrastructure, and recreation development. The community has secured $70 million in state assistance over the past decade.
While the coal era fades, life in Craig continues with new energy investments.
Tri-State plans a 145-megawatt Axial Basin Solar project, a 307-megawatt natural gas facility, and a 200-megawatt energy storage facility.
Lee Boughey, Tri-State spokesperson, said in a statement that the cooperative remains committed to the region.
“As Craig Station fully retires in 2028, Tri-State will maintain investment in Moffat County … We intend to continue our long-standing involvement and commitment to northwest Colorado,” Boughey said.
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