The second life of Palisades and nuclear power’s big bet in Michigan
A $1.52 billion gamble to resurrect America’s first restarted reactor
Nestled along the sandy shores of Lake Michigan, the Palisades Nuclear Plant has been a quiet giant in America’s energy landscape for over half a century. Once shuttered and left for dead, this Michigan facility is now on the cusp of a historic comeback—poised to become the first nuclear reactor in the U.S. to restart after decommissioning. Fueled by a $1.52 billion loan from the Department of Energy, its revival signals a bold bet on nuclear power as a cornerstone of the clean energy future. But the road to this moment has been long, winding, and fraught with challenges. Let’s dive into the story of Palisades—its past, its shutdown, and its unexpected second act.
A nuclear dream takes root
The Palisades Nuclear Plant’s story begins in the 1960s, a time when nuclear energy was hailed as the answer to America’s growing power needs. Construction kicked off in 1967, with the plant roaring to life on December 31, 1971. Perched near Covert, Michigan, its 800-megawatt reactor promised carbon-free electricity for homes and businesses across the region. For decades, it delivered, while also providing hundreds of steady jobs to the local community.
But the plant’s early years were rocky. Just a year after opening, in 1972, radioactive leaks from its steam generator tubes forced a shutdown. Another lengthy closure followed in 1973, lasting 19 months. By 1974, a massive repair effort replaced 27,000 faulty tubes, underscoring the technical hurdles Palisades faced from the start. Despite these stumbles, the plant pressed on, a symbol of nuclear ambition in an era of optimism.
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Changing hands and mounting struggles
For years, Palisades hummed along under the ownership of Consumers Power. But in 2007, the plant changed hands when Entergy, a major energy firm, snapped it up for $380 million. That same year, the Nuclear Regulatory Commission (NRC) extended its operating license to 2031, hinting at a long and stable future. Yet, beneath the surface, trouble was brewing.
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By 2012, the NRC labeled Palisades one of the worst-performing nuclear plants in the country. Operational costs were spiraling—57% higher than cheaper alternatives like natural gas. Leaks, repairs, and aging infrastructure piled up, painting a grim economic picture. The plant that once embodied progress was starting to feel like a relic.
The shutdown that sent shockwaves all around Michigan
In 2017, Entergy dropped a bombshell: Palisades would close by May 20, 2022, when its power purchase agreement with Consumers Energy expired. The decision wasn’t just about money though… Entergy was pivoting away from merchant power generation altogether. On that fateful day in 2022, the reactor went silent, ending a 51-year run. For the 600 workers who called Palisades home, it was a gut punch. The local economy reeled, and Michigan lost a key source of clean energy.
But even as the plant powered down, whispers of a revival began. Governor Gretchen Whitmer and state leaders saw Palisades as too valuable to abandon. The stage was set for an improbable next chapter.
A historic comeback
Enter 2024, when the Department of Energy announced a game-changer: a $1.52 billion loan to Holtec International, the company tasked with decommissioning Palisades. The mission? Bring the plant back online by the end of 2025. If successful, Palisades would make history as the first U.S. nuclear reactor to rise from the ashes of a permanent shutdown.
Why the turnaround? The answer lies in the urgent push for clean energy. With climate goals tightening and electricity demand soaring, nuclear power’s reliable, low-carbon output is back in vogue. The Biden administration sees Palisades as a linchpin in the energy transition, capable of delivering 800 MW of clean power and restoring 600 jobs to Michigan.
Reviving a dormant plant, though, is no small feat. Holtec faces a gauntlet of NRC approvals, rigorous inspections, and upgrades to aging systems. No one’s ever done this before—not on this scale. Yet the stakes are high, and the potential payoff is transformative.
The road ahead is full of promise and peril
The Palisades revival isn’t without its skeptics. Environmental groups like the Sierra Club warn of the risks tied to its checkered past—decades of leaks and safety concerns don’t fade easily… but let’s face it; those folks think “green” energy is actually a thing. Critics question whether an old plant can meet modern standards. On the flip side, supporters argue that nuclear power is indispensable for a carbon-free future, especially as renewable sources like wind and solar struggle to keep pace with demand.
If Holtec pulls it off, Palisades could flip the switch by late 2025, setting a blueprint for other shuttered plants. The company even has bigger dreams: building small modular reactors (SMRs) on-site, potentially boosting capacity by 2030. Success here could reshape how we view nuclear energy’s role in the 21st century.
Palisades is a story of innovation and setbacks, of economic realities, and of environmental imperatives. Whether it roars back to life or falters, one thing’s clear: this Michigan marvel ain’t done making headlines.
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Timeline of the Palisades Nuclear Plant
1967: Construction begins on the shores of Lake Michigan.
1971: Plant goes online, generating 800+ MW of power.
1972-1973: Early shutdowns due to radioactive leaks; 19-month closure in ’73.
1974: Major repairs replace 27,000 steam generator tubes.
2007: Entergy buys Palisades for $380 million; NRC extends license to 2031.
2012: NRC flags Palisades as a poor performer amid rising costs.
2017: Entergy announces closure planned for May 2022.
May 20, 2022: Plant shuts down after 51 years.
2024: DOE approves $1.52 billion loan for Holtec to restart the plant.
2025: Targeted restart date, pending approvals and upgrades.
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