Federal emergency order delays Craig Station shutdown
The U.S. Department of Energy issued an emergency order at the end of 2025 requiring a northwest Colorado coal-fired power plant to remain in operation beyond its planned closure date.
The order, signed by Energy Secretary Chris Wright on Dec. 30, came one day before Craig Station in Moffat County, Colorado was scheduled to shut down operations.
Under the directive, Craig Station Unit 1 must continue operating until at least March 30, 2026, according to the emergency order.
Order issued under Federal Power Act authority
The emergency order was issued under Section 202(c) of the Federal Power Act, which gives the Energy Department authority to require electric generation facilities to operate during periods of grid reliability risk or energy supply emergencies.
Such orders are typically used during extreme weather events, supply disruptions, or periods when grid operators determine that retiring generation could threaten system reliability.
The Energy Department did not characterize the order as permanent and limited its scope to a defined three-month period.
Craig Station’s role in rural Colorado power supply
The Craig Station coal plant sits on a hill overlooking the town of Craig, Colorado, located roughly 40 miles west of Steamboat Springs. For decades, the facility has been a major source of baseload electricity for northwest Colorado and surrounding rural areas.
The plant has long been viewed as critical infrastructure for the region’s electric system, particularly during periods of high winter demand when alternative generation options may be limited.
Craig Station’s planned retirement was part of a broader transition away from coal-fired generation across Colorado, driven by state climate policies, utility resource plans, and emissions reduction goals.
Plant closure delayed, not canceled
While the emergency order delays the shutdown, it does not reverse the plant’s scheduled retirement. Instead, it temporarily keeps Unit 1 online while federal officials evaluate near-term grid reliability needs.
The order underscores growing national tensions between coal plant retirements, grid reliability concerns, and the pace of the U.S. energy transition, particularly in rural regions that rely heavily on legacy power infrastructure.
The Energy Department has not announced whether additional emergency orders could follow once the March deadline approaches.
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