October 2, 2026 - The U.S. Department of Energy has extended the operating availability of Craig Station Unit 1 in northwestern Colorado for another 90 days, preserving coal-fired generation through December 25 while utilities continue to challenge the need and financial implications of the federal intervention.

Energy Secretary Chris Wright issued the latest emergency order September 25 under Section 202(c) of the Federal Power Act. Effective September 27, the directive follows three earlier orders that prevented the unit’s planned retirement at the end of 2025.

The order applies to Tri-State Generation and Transmission Association, which operates Craig Station, along with Southwest Power Pool and the unit’s other owners: Platte River Power Authority, Salt River Project, PacifiCorp and Public Service Company of Colorado.

It requires the utilities to maintain Unit 1’s availability. Southwest Power Pool must use economic dispatch and operate the unit only during hours necessary to address the declared emergency while minimizing ratepayer costs. The requirement therefore preserves access to the generator without requiring continuous electricity production.

DOE Cites Regional Reliability Concerns

The Energy Department argues that retaining Craig Unit 1 helps protect the Western Electricity Coordinating Council’s Rocky Mountain region against supply shortages during unusual weather and other periods of system stress.

Wright said the administration intends to preserve dependable generating resources as electricity demand increases. DOE also reported that its actions have prevented more than 17 gigawatts of coal-fired capacity nationwide from retiring since 2025.

The detailed Craig order cites aging thermal generators, potential delays in replacement resources and growing electricity demand. It identifies Southwest Power Pool West emergency alerts issued July 20, July 24 and August 9 as evidence of operating stress.

The document also acknowledges that NERC’s 2025 Long-Term Reliability Assessment classified the Rocky Mountain region as facing normal energy-shortfall risk over the next five years, while identifying longer-term reserve-margin concerns.

Coal Generation and Fuel Supply

Craig Station comprises three coal-fired generating units with a combined nameplate capacity of approximately 1,428 megawatts. Unit 1 has a nameplate rating of 446.4 megawatts. Units 2 and 3 remain scheduled for retirement in 2028.

The station is closely connected to the region’s coal industry. Platte River identifies the adjacent Trapper Mine as a fuel source for Craig Units 1 and 2 and holds a 27.14% ownership interest in the mine. According to the utility, that ownership helps manage fuel-cost exposure through oversight of mine production and expenses.

Maintaining Unit 1’s availability consequently involves fuel-supply planning as well as plant staffing, maintenance and repairs. Tri-State has previously warned that compliance could require additional spending in each of those areas.

Utilities Question Need and Costs

Tri-State and Platte River requested a rehearing of the initial order in January, arguing that they had already arranged resources to replace Unit 1 and maintain reliability on their systems.

Both organizations operate on a not-for-profit basis. They contend that unrecovered compliance expenses would fall on their members and utility customers, even though the generator was no longer needed for their individual systems.

Colorado Public Radio reported September 10 that Xcel Energy had disclosed more than $4 million in expenses associated with keeping Unit 1 available. That figure represents one owner’s costs rather than the station’s total compliance expense.

The report also found that Unit 1 generated electricity only in April during the first six months of 2026. Tri-State, Platte River, Colorado officials and environmental organizations have challenged the federal orders in court.

Reporting and Compliance Requirements

The latest order requires daily operating notifications and an October 10 submission describing measures taken or planned to maintain availability. It permits necessary filings with federal regulators for cost recovery and retains environmental compliance obligations to the maximum extent feasible under the emergency conditions.

The current directive expires December 25 and allows time afterward for an orderly ramp-down consistent with industry practices.