Palisades Restart: NRC Cites Staff Fear and Exam Failures

The Nuclear Regulatory Commission issued a formal directive to Holtec International this week, requiring the company to improve the operational environment at the Palisades nuclear power plant in Michigan.

The order stems from a July inspection that identified specific deficiencies in safety protocols and staff performance. During that review, the agency documented a "chilled work environment" where employees reported hesitating to raise safety issues due to concerns about retaliation. The NRC also noted that nine of the 15 reactor operators at the facility failed the initial licensing examinations administered in July and August. Only six individuals successfully obtained the necessary operator licenses.

Two distinct physical incidents preceded the regulatory order. In 2025, a contractor fell into the reactor cavity and swallowed water. Although decontamination procedures were performed, an incident report indicated that 300 counts per minute of radiation were still detected in the worker's hair. The second event occurred in August 2026 when a bundle of nuclear fuel rods tilted during a refueling operation. This mechanical issue delayed the start of operations at the facility.

Holtec International has never previously operated a nuclear power plant. The company has secured approximately $2.2 billion in government support for the Palisades project. This initiative is central to the administration's strategy to revive the domestic nuclear industry. The plant was expected to be the first closed nuclear reactor in the United States to resume operations.

Critics of the restart effort argue that financial and political pressures to meet surging energy demand from artificial intelligence may increase the likelihood of operational errors. They suggest that the current regulatory findings reflect a risk pattern that could affect other projects. Two other facilities currently slated for decommissioning, Three Mile Island in Pennsylvania and Duane Arnold in Iowa, have also announced plans to restart operations. These announcements followed the start of work at Palisades.

The NRC's order places the burden on Holtec to correct the identified cultural and procedural gaps. The agency will monitor the company's progress to ensure that the work environment supports open communication regarding safety. The restart timeline remains subject to the resolution of these regulatory requirements.