Holtec Ordered to Correct Safety Climate at Palisades After Exam Failures

Employees at the Palisades nuclear plant in Michigan are being told by federal regulators to address a workplace atmosphere that has made them hesitant to report safety issues. The Nuclear Regulatory Commission issued a formal warning to Holtec International, the company leading the restart effort. The agency described the current environment as chilled, noting that staff members fear retaliation if they voice concerns about operational safety. This order forces the company to implement specific changes in how it manages personnel and safety communications at the site.

The regulatory action follows a July inspection that was triggered by earlier safety events. In a previous year, a contractor fell into the reactor cavity and swallowed water. Although the worker was decontaminated, an incident report indicated that 300 counts per minute of radiation were still detected in their hair. A second incident occurred in August when a bundle of fuel rods tilted during a refueling operation. That event delayed the start of operations, which had been positioned as the first restart of a closed nuclear reactor in the United States.

The inspection also uncovered difficulties in operator training. Nine of the 15 reactor operators failed the initial licensing examinations administered in July and August. Only six individuals successfully received operator licenses. These exam failures provided concrete evidence for the NRC’s concerns regarding the plant's safety culture. The regulator determined that the combination of failed tests and reported workplace tensions required a direct order to Holtec to remedy the situation.

Holtec International has not previously operated a nuclear power plant. The company has secured approximately $2.2 billion in government support for the Palisades project. The restart has been promoted as a key symbol of a renewed domestic nuclear industry. However, critics argue that the pressure to relaunch these facilities, driven by energy demand from artificial intelligence, may increase the risk of accidents. They point to the recent setbacks as evidence that financial and political goals are outpacing operational readiness.

Palisades is not the only closed plant with plans for a return to service. Owners of the Three Mile Island plant in Pennsylvania and the Duane Arnold plant in Iowa announced restart plans shortly after work began at Palisades. These projects are part of a wider effort to bring shuttered facilities back online. The NRC’s order to Holtec now sets a precedent for how other operators may be scrutinized during the transition from decommissioning to active operation. The company must now file a corrective action plan to address the findings from the July inspection.