The Department of Energy has ordered the retirement, replacement or repurposing of power plants operating on non-renewable energy once they reach the end of their economic life.
The directive is part of Department Circular No. DC 2026-02-0006, signed by Energy Secretary Sharon Garin on Feb. 16. Known as the Power Generator Accountability Policy, the circular aims to uphold service delivery standards and ensure accountability among power generation entities.
Under the new policy, generation companies, or gencos, must submit a retirement, replacement or repurposing plan within a set period before a facility’s projected expiration.
“The plan shall include the proposed course of action, technical assessment of the facility’s condition, compliance status, implementation schedule and such other information as the DOE may require,” the circular stated.
The policy requires strict adherence to technical and operational standards, dispatch instructions, market rules and reportorial requirements. It also strengthens sanctions against noncompliant companies, including blacklisting or disqualification from DOE-administered auctions and award mechanisms for a specified period.
All power generators are directed to comply with the reportorial requirements established under a 2022 department circular. These reports may be used as evidence in court or administrative proceedings if they are found to contain material misrepresentations.
The DOE may also use this data to curb anti-competitive behavior, unfair practices or market manipulation. Additionally, the agency may intervene if a generator’s behavior threatens the reliability of the power grid or distribution network, as determined by the DOE, market operators and affected utilities.
