The Columbia Energy Center in Wisconsin is set to receive a substantial boost with $19 million in federal funding for modernization, despite plans to retire the plant nearly two years ago.
In a move aimed at revitalizing the coal industry, the Trump administration announced a $500 million funding package for coal-fired power plants across 10 states, including an export terminal in California. This initiative leverages the Defense Production Act, a law from the Cold War era that allows presidential control over industries deemed essential to national security.
Among the beneficiaries is the Columbia Energy Center, a coal-fired plant co-owned by Alliant Energy, Madison Gas and Electric, and Wisconsin Public Service, which is slated to receive a portion of the funds.
Criticism from environmental groups has been swift, citing coal as a costly energy source responsible for climate change and air pollution.
In a speech from the Oval Office, President Donald Trump declared the Defense Production Act would be employed to safeguard coal plants in states including Wisconsin, West Virginia, and others. “Our action will allow these facilities to invest in upgrades that will extend their operational lives for decades into the future, reinforce the reliability of our electric grid, which is really the biggest beneficiary, and most importantly, keep electricity prices very low for the American people,” Trump stated.
The administration also revealed plans to allocate $700 million for broader coal industry support, encompassing 42 coal mines and the construction of two new coal plants, with an additional $1.7 billion in private investments expected.
According to the U.S. Department of Energy, Columbia Energy Center in Columbia County will receive $19 million from the federal government towards $48.5 million in planned upgrades.
An agency description notes that the initiative aims to maintain dependable baseload service while enhancing efficiency and environmental performance. The plant has a capacity exceeding 1 gigawatt.
Originally, the Columbia Energy Center was scheduled to close by the end of 2024. This retirement was later delayed to 2029.
Alliant Energy, representing the co-owners, filed a grant application for a federal coal modernization program in December.
An Alliant Energy spokesperson highlighted the application as a method to modernize the plant cost-effectively while reducing the expense of planned reliability and safety upgrades. The project aims to sustain employment for approximately 100 union workers.
The company has yet to disclose how long it intends to continue operating Columbia as a fossil fuel-burning facility.
Tom Content, of the Citizens Utility Board of Wisconsin, noted that the administration’s approach marks a departure from previous support strategies for the coal sector. Last year, President Trump mandated the continued operation of coal plants in Michigan and Indiana, which imposed costs on Midwest customers, including those in Wisconsin.
“Wisconsin customers are paying millions and millions of dollars just for coal plants in other states. This grant funding is definitely a different approach,” Content commented.
Jadine Sonoda, from the Sierra Club’s Wisconsin Chapter, expressed dissatisfaction with the federal government and Alliant Energy’s support for coal. “It is ridiculous to see President Trump basically saying we need to keep these coal plants open,” she remarked, emphasizing the advantages of clean energy.
Alliant Energy also plans to convert its Edgewater Generating Station in Sheboygan County to a natural gas facility. Sonoda criticized the utility for not committing to a timeline for ending coal and natural gas use, warning of the climate impact of continued fossil fuel reliance.
