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Trump Orders Pentagon to Buy Coal Power as DOE Awards Plant Upgrades

The White House frames the directive as a national-security measure under the Defense Production Act.

Overview

  • An executive order directs Defense Secretary Pete Hegseth to pursue long-term power purchase agreements with coal plants for military bases and other mission-critical facilities.
  • The Department of Energy will provide $175 million to upgrade six coal-fired plants in Kentucky, North Carolina, Ohio, Virginia and West Virginia to extend their operations.
  • The Tennessee Valley Authority says it will delay retiring two coal plants in Tennessee following the administration’s push to keep units online.
  • Officials cite grid reliability and rising electricity demand from AI and data centers, while environmental groups and analysts warn of higher costs and pollution, including an estimate that maintaining retiring coal plants could add more than $3 billion a year for consumers.
  • Early pushback includes a Senate inquiry into whether DOE is misusing infrastructure funds for coal subsidies and utility petitions challenging costly emergency orders to keep specific coal units running.