The future of a big and long-standing coal electricity plant in Colorado remains very much unclear in the wake of a new order issued by the Trump administration.
For years, Colorado state officials have been pushing for the closing of the Craig Unit 1 coal plant operated by the company Tri-State Generation and Transmission in the northwestern city of Craig.
Tri-State, which provides power for electric cooperatives in Colorado, as well as Nebraska, New Mexico, and Wyoming, announced two years ago that it would close the Craig Unit 1 by the end of 2025.
But a sudden announcement by the U.S. Energy Department has stated that a loss of power to homes and businesses may occur due to “emergency conditions resulting from increasing demand and shortage from accelerated retirement of generation facilities.”
Such power losses, continued the Energy Department in an official order, may prove a “risk to public health and safety.”
The order was posted on December 30 and, as announced, will remain in effect until the end of March.
In a statement, Duane Highley, chief executive officer of Tri-State, said, “We are continuing to review the order to determine what this means for Craig Station employees and operations, and the financial impacts.”
“As a not-for-profit cooperative, our membership will bear the costs of compliance with this order unless we can identify a method to share costs with those in the region,” continued Highley, adding, “There is not a clear path for doing so, but we will continue to evaluate our options.”
A press release from the company said that keeping the facility open will most likely require new investments in “operations, repairs, maintenance, and, potentially, fuel supply.”
Meanwhile, Colorado Governor Jared Polis condemned the Energy Department order, saying it “flies in the face of careful planning, is inconsistent with market forces, and will hurt Coloradoans.”
The 446-megawatt Craig Unit 1 began operations in 1980.
January 6, 2026
By Garry Boulard
