Reopening of Palisades Nuclear Plant in Michigan Stirs Local Fears and Federal Support

Holtec International's plan to restart the Palisades Nuclear Plant on the shores of Lake Michigan has reignited a long-running debate over nuclear safety, local health risks and the role of nuclear power in reducing carbon emissions. The company says it will bring the mothballed plant back into operation by the end of the year; opponents warn the move could imperil communities that rely on the Great Lakes for drinking water.

Palisades, located in Covert Township about 70 miles south of Grand Rapids, opened in 1971 and was taken out of service and decommissioned in May 2022 after operators cited high costs. Holtec acquired the site in 2023 and announced plans to restore the 800-megawatt reactor, which the company says could produce enough power for roughly 800,000 homes, most in rural Michigan and Indiana. The project has created more than 1,600 jobs at the site, according to Holtec.

Local residents and environmental activists have voiced alarm over the restart, comparing potential failures to historical nuclear accidents such as Chernobyl, Three Mile Island and the 1966 partial meltdown at Fermi Unit 1. Kevin Kamps, a radioactive waste specialist with advocacy group Beyond Nuclear, said the consequences of a major incident at Palisades could extend beyond Covert Township’s roughly 2,500 residents and pose risks to the Great Lakes, which hold about 20 percent of the world’s surface freshwater and supply drinking water to some 40 million people in the United States and Canada.

"It could wipe out more than just a township, it could wipe out the Great Lakes," Kamps said, expressing particular concern about long-term contamination and about Holtec's experience operating reactors. Beyond Nuclear has criticized what it says are safety shortcuts and "Band-Aid fixes" during refurbishment, including the practice of "sleeving" damaged steam generator tubes — inserting a smaller tube inside a damaged tube to restore flow without cutting out the damaged component.

Holtec officials disputed those characterizations. Nick Culp, the company's senior manager for government affairs and communications, said Holtec has assembled a "high-pedigree" team that includes many former naval reactor operators and other industry veterans. He said more than 600 nuclear professionals are employed in the effort, that staff must pass an accreditation program, and that monitoring systems would alert operators to any anomalies. Culp said sleeving is an established industry practice and that the work performed at Palisades was completed successfully.

The question of radioactive waste storage is a central element of local concern. The United States currently lacks a permanent national repository for high-level nuclear waste; as a result, spent fuel is typically stored on-site at reactor locations. Holtec has secured environmental permits related to a proposed interim repository in New Mexico and has said it would operate that facility if it proceeds. Opponents have circulated unverified rumors that spent fuel could be stored on barges in Lake Michigan during transport; Holtec said it had not heard of barge plans and noted that the Department of Energy would have authority over transport decisions.

Federal support for the restart has been a key factor in Holtec's decision to pursue reopening. Holtec says the Biden administration committed to a $1.5 billion loan guarantee for the project, and that the funding has continued to be distributed under the subsequent administration. U.S. Rep. Bill Huizenga, whose district includes parts of southwest Michigan, said the plant already has infrastructure in place and that restarting Palisades avoids a long permitting process required for a new facility.

The restart has prompted a mix of economic and safety arguments. Holtec and supporters emphasize jobs, local economic activity and a reliable source of carbon-free electricity that can help reduce reliance on fossil fuels and stabilize rural grids. Opponents focus on the potential for catastrophic accidents, the absence of a long-term waste repository and community health questions. Some area residents have pointed to clusters of thyroid cancer diagnoses that emerged after the plant first began operations in the 1970s; health authorities and experts note that establishing causal links between cancer rates and plant operations requires detailed epidemiological study.

Regulatory and permitting steps remain part of the pathway to full commercial operation. Holtec has described the Palisades restart as the first U.S. case of a plant moving from a decommissioned status toward operational readiness, but as of Holtec's announcement the site was not yet legally authorized to produce power. Company officials say they are investing to meet applicable safety standards and regulatory requirements.

The debate over Palisades reflects a broader national and international conversation about nuclear energy's role in climate policy. Proponents argue that existing reactors provide stable, carbon-free baseload power that can complement renewables; critics point to the risks of accidents, long-lived radioactive waste and high costs of construction, maintenance and decommissioning. In Covert Township, the contention is immediate: residents weigh the promise of jobs and clean energy against fears about public health and the environmental vulnerability of the Great Lakes.

Holtec and its supporters say they will pursue the licensing, monitoring and staffing needed to operate safely. Activists and some residents say they will continue to press for independent review and oversight and to seek more information about long-term waste plans and the health record in the surrounding communities. The outcome of the Palisades effort may influence how other mothballed or idled plants are evaluated in an era of accelerating climate policy debates and energy transitions.