NRC orders Holtec to fix fear-based culture at Palisades reactor

The Nuclear Regulatory Commission issued a formal warning to Holtec International, directing the company to correct a work environment at the Palisades nuclear plant in Michigan that officials described as chilled. The order instructs Holtec to address a culture where employees hesitate to report safety issues because they fear negative consequences from management.

The regulatory action follows a July inspection triggered by questions regarding safety awareness at the site. The review came after two distinct safety events. In the first, a contractor fell into the reactor cavity and swallowed water. Radiation protection staff decontaminated the worker, but an incident report recorded 300 counts per minute in their hair, prompting off-site medical care. A second event occurred in August when a bundle of nuclear fuel rods tilted during refueling, delaying the project’s timeline.

Licensing results for reactor operators also drew scrutiny. Nine of the 15 trainees failed the initial examination administered in July and August. Only six individuals received operator licenses. The NRC cited these failures as evidence of the broader safety culture deficit at the facility.

Holtec has not previously operated a nuclear power plant. The company has secured approximately $2.2 billion in government support for the Palisades effort, a project positioned as a key symbol of a domestic nuclear industry revival under the current administration. The plant’s restart was expected to be the first for a closed U.S. reactor.

Industry critics argue that the regulatory warning exposes risks associated with rapid restarts. They contend that financial and political pressure to meet surging energy demand, particularly from artificial intelligence infrastructure, may increase the probability of operational accidents. These concerns extend beyond Michigan, as owners of the Three Mile Island plant in Pennsylvania and the Duane Arnold plant in Iowa have also announced plans to restart facilities originally slated for decommissioning.

The NRC will continue to monitor Holtec’s implementation of corrective actions. The agency expects the company to demonstrate that the fear of retaliation has been removed from the site’s daily operations before the restart proceeds further.