An electric clutch actuator capable of operating in two power loss conditions. For a condition where a normally engaged clutch is disengaged during a system power loss and the desired action is for the clutch to remain in the disengaged positional state, a holding device moves to a power off activated position to prevent movement of an actuator for the clutch. For a condition where the clutch is disengaged during a system power loss and the desired action is for the clutch to move to an engaged positional state, a motor in the electric clutch actuator is used as a generator to convert the potential energy of a clutch pressure spring into electrical energy to provide energy for powering the holding device to remain deactivated, permitting movement of the clutch actuator to the engaged position. Maintaining the holding device deactivated permits the clutch to move to the engaged position and thereby allows vehicle engine braking to be used during a power loss of the system.