Michigan Governor Expresses Support to Reopen Palisade Nuclear Power Plant

Michigan Governor Gretchen Whitmer has sent a letter to the U.S. Energy Department, in support of Holtec International’s application for a federal grant under the Civil Nuclear Credit, or CNC program, to save the Palisades Nuclear Facility in Southwest Michigan. Governor Whitmer noted that keeping Palisades operational is critical for the state’s competitiveness and future economic development opportunities. The letter expressed the state’s readiness to do the needful, in order to receive funding through the CNC program, including identifying state funding and facilitating a power purchase contract.

Governor Whitmer has asked the department to support Holtec’s efforts to repower and reopen the 800 megawatt nuclear power plant, which was taken offline on May 20, 2022, having operated for over 50 years. The plant closed 11 days before its scheduled shutdown, due its short fuel supply and expiration of the power purchase agreement with Consumers Energy. The plant’s closing was enacted by its former operator, Entergy Nuclear, despite the decision being lamented by the nuclear industry and environmental groups, due to the fact nuclear energy remains an essential fuel in the U.S. achieving its goal of reducing the impact of climate change.  The company closed the plant, as part of their strategic plan to withdraw from merchant nuclear generation and focus on its utility operations in the Gulf South.

Palisades Nuclear Facility was sold to Holtec International on June 28, 2022 and despite the site undertaking the decommissioning process, Holtec has announced new plans to reopen. The CNC program, established by the 2021 Infrastructure Investment and Jobs Act, intends to prevent the early retirements of reactors across the U.S. due to financial difficulties and accordingly assist local economies and jobs. Moreover, the program aims to protect supply of carbon free electricity generation, as the U.S. strives to become carbon neutral by 2050.

In addition to the increased clean energy production in the state, reopening of the facility will provide an economic boost, by creating 600 jobs at the plant alone and an extra 1,100 jobs in the community. In addition, the reopening is expected to generate $363 million in annual regional economic development.