Coal Plant Gets Federal Lifeline While Google Pushes Clean Energy

In a twist that underscores the ongoing tension between energy policy and environmental priorities, Oklahoma’s Grand River Dam Authority has reversed course on shutting down its last coal-generating unit—thanks to a federal grant from the Trump administration that’s designed to prop up the domestic coal industry.

The Grand River Energy Center Unit 2 in Chouteau was supposed to go offline this year. Instead, GRDA is using a $28.5 million federal Energy Department grant, paired with $48 million of its own financing, to modernize the plant’s coal yard, water systems, boiler, and material-handling infrastructure. It’s one of twelve coal plants nationwide that secured rescue funding from President Donald Trump’s $500 million coal support initiative, announced June 4 from the White House.

Here’s where it gets interesting for Lawton and the broader region: GRDA’s largest industrial customer is Google’s data center in Pryor, which has publicly advocated for carbon-free energy sources since 2020. That’s a significant mismatch. GRDA President and Chief Executive Officer Dan Sullivan justified the reversal by claiming the grant“allows us to leverage existing infrastructure to continue to deliver affordable and reliable power to GRDA customers in the future.”But just a few years ago, in August 2023, GRDA’s own Vice President of Generation Operations, Robert Ladd, called the coal unit’s operation highly risky, uninsurable, and plagued by“the highest degree of regulatory uncertainty.”Something changed when federal dollars became available.

The Trump administration is using the Defense Production Act—a Korean War-era law designed for national defense emergencies—to justify the coal investment. Critics argue it’s a stretch. Sierra Club representative Ty Gorman bluntly stated that“Trump is pouring tens of millions of taxpayer dollars into Oklahoma monopoly utility and shareholder pockets to prop up toxic, expensive coal technology that is on the way out.”Meanwhile, GRDA is still spending $475 million on a new natural gas unit at the same facility, originally positioned as the coal unit’s replacement.

Oklahoma Gas and Electric’s Sooner plant in Red Rock received its own $22.5 million federal grant for upgrades to its coal operations, with OG&E contributing an additional $35.2 million. The utility faces potential compliance costs ranging from $2.4 billion to $2.8 billion over its entire coal fleet due to environmental regulations on nitrogen oxide emissions—a reality that federal subsidies don’t ultimately solve.

The move raises a fundamental question for energy customers and policymakers: Is temporary relief from Washington the right path forward, or does it delay the inevitable transition to cheaper, cleaner alternatives? GRDA’s about-face suggests that when federal money flows, even long-term strategic decisions can shift. Whether that serves ratepayers—or just extends the life of aging infrastructure—remains an open debate.