NRC Warns Holtec Over 'Chilled Work Environment' at Palisades Restart
US regulators told Holtec to fix workplace culture at Michigan's Palisades reactor after a worker fell into the reactor cavity and a fuel bundle tilted.
The story in focus
The US Nuclear Regulatory Commission told Holtec International to address a 'chilled work environment' at the Palisades plant in Michigan, citing a worker's fall into the reactor cavity and a fuel bundle that tilted during refueling. Nine of 15 operator candidates failed initial licensing exams.
- NRC inspection in July followed a worker's fall into the reactor cavity; 300 counts per minute were detected in the worker's hair.
- A fuel bundle tilted during an August refueling operation, delaying the anticipated restart.
- Nine of 15 reactor operators failed initial licensing exams in July and August; six received licenses.
- Holtec holds about $2.2 billion in government support and faces a March 2027 deadline to begin supplying power.
What regulators found
The NRC inspected Palisades in July over safety-awareness concerns. Its warning, issued the week before the report, said staff were hesitant to raise safety issues without fear of retaliation. The NRC asked Holtec to correct the problems and said it will review the company's plan within 30 days.
The NRC said mitigating measures meant public safety was not compromised. Holtec said it takes the findings seriously and that the worker who fell sustained minor injuries and returned to work.
Restart economics
Palisades, operational since 1971 and decommissioned in 2022, received a $1.5 billion Department of Energy loan in 2024. Customers secured an additional $1.3 billion in government funds to buy its power.
Holtec, which has never operated a nuclear plant, postponed a planned initial public offering expected to raise $900 million and value the company at up to $10 billion. More than $30 billion in value has been erased from five large US-listed nuclear companies over the past year, the report said.
Pressure and scrutiny
Former NRC chair Allison Macfarlane said the warning raised concerns that staff do not feel able to speak up. Holtec said a strong safety-conscious work environment is fundamental to its culture and that assertions it rushed are countered by its work.
The report also cited past governance questions, including a whistleblower lawsuit; founder and chief executive Kris Singh has rejected the claims.
How many Palisades reactor operators failed their initial licensing exams?
Nine of the 15 reactor operators failed the initial licence examination administered in July and August, according to the NRC. Six individuals were issued operator licenses.
Sources & further reading
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