Midwest Gas Demand Set to Rise as Michigan Coal Plant Faces Retirement
A federal appeals court has dealt a blow to Consumers Energy's J.H. Campbell coal plant in Michigan, vacating a Department of Energy order that kept the 1.42 GW facility operating beyond its planned May 31, 2025 retirement date.
The ruling puts the plant's retirement and the generation needed to replace it back in focus. Despite its planned closure, the Campbell plant has remained relatively well utilized, with an average capacity factor of 60% from 2022-24 and utilization reaching 66% in 2024.
The loss of coal-fired power could create an opportunity for incremental natural gas demand in Michigan. If the 1.42 GW of coal capacity were fully replaced by gas-fired generation operating at roughly 80% utilization, the replacement generation would require up to 200 MMcf/d of natural gas.