Federal regulators authorize a special procedure to recover a tilted nuclear fuel assembly at the Southwest Michigan plant. A separate inspection identifies concerns about employees reporting safety problems as Holtec works toward restarting the reactor.
COVERT TOWNSHIP, Mich. — Federal nuclear regulators have approved a special procedure to recover a damaged nuclear fuel assembly at Michigan’s Palisades Nuclear Power Plant, clearing a regulatory obstacle to restarting the facility while raising new questions about safety oversight, worker protections and the project’s schedule.
The U.S. Nuclear Regulatory Commission approved the procedure on October 13, allowing plant owner Holtec International to use custom-built equipment to remove a fuel assembly that tilted during loading operations on August 30.
The incident interrupted fuel loading at the 800-megawatt nuclear plant along Lake Michigan in Van Buren County.
Meanwhile, a separate NRC inspection identified workplace conditions that made some employees reluctant to report nuclear safety concerns.
The developments come as Holtec attempts to accomplish something unprecedented in the United States: restarting a commercial nuclear reactor after it entered decommissioning.
Michigan has committed $300 million in public funding to support the restart. According to the Michigan Strategic Fund’s September 2025 report, the entire state commitment had been disbursed.
What Happened During Nuclear Fuel Loading?
According to an October 16 report by the American Nuclear Society, a nuclear fuel assembly tilted approximately 30 degrees after being released by the plant’s refueling machine.
The lower portion remained in its assigned reactor-core position, while the upper portion leaned against the surrounding reactor structure.
The assembly sustained damage to its upper tie plate, preventing workers from retrieving it with the normal refueling equipment.
The NRC reported that the fuel rods remained intact and that no other fuel assemblies were affected.
Holtec subsequently requested permission to use an alternative removal procedure involving specially designed equipment and a fuel-transfer canister.
Under the approved procedure, workers would use a crane and custom fuel-handling equipment to lift the assembly from the reactor vessel, place it inside a transfer canister and move it to the spent-fuel pool.
The assembly would remain underwater during the initial lifting and transfer into the canister. The loaded canister, weighing approximately 49,000 pounds, would then be moved to the spent-fuel pool building.
The NRC reviewed the proposal and determined that the operation could be conducted safely under the approved conditions.
However, authorization to proceed does not mean the recovery operation has been completed.
As of October 18, MITechNews has not independently verified that the tilted assembly has been removed or that fuel loading has resumed.
Michigan Nuclear Safety Advocates Challenge Approval
Michigan environmental organization Don’t Waste Michigan and other nuclear safety advocates have challenged the NRC’s decision, arguing that the agency should have allowed additional time for technical review and public participation.
In an October 14 public statement distributed through Three Mile Island Alert, the coalition questioned whether the engineering analysis supporting Holtec’s proposed recovery operation had received sufficient independent scrutiny.
The organizations noted that the NRC’s public comment period ended October 8, while additional technical information became available afterward.
The coalition cited concerns raised by Alan Blind, a retired nuclear engineer who previously held a senior engineering position at Palisades.
Blind questioned whether the proposed handling procedure could impose additional mechanical stresses on the damaged assembly and whether the available engineering documentation adequately established that it could be moved safely.
Arnie Gundersen, a nuclear engineer serving as an expert adviser to the opposition coalition, also questioned the adequacy of the engineering review.
The organizations argued that the urgency of restarting the plant should not outweigh the need for thorough technical evaluation.
Their concerns represent challenges to the NRC’s conclusions, not independent findings that the recovery operation will cause additional damage or a radioactive release.
The NRC reached a different conclusion.
In its regulatory review, the commission determined there was reasonable assurance that the proposed procedure would protect public health and safety and comply with applicable federal requirements.
The NRC’s evaluation considered potential equipment-handling accidents and other hazards associated with moving the assembly.
According to Michigan Public’s October 14 reporting, the agency is continuing to investigate why the assembly tilted and will monitor the recovery operation.
NRC Finds Workplace Safety Reporting Problems
In a separate development, the NRC identified concerns involving employees’ willingness to report nuclear safety problems in two Palisades departments.
An NRC inspection conducted in July found what regulators described as a chilled work environment in the plant’s supply-chain and quality-assurance departments.
According to October 16 reporting by The National, the NRC concluded that some employees were hesitant to raise safety concerns because they feared retaliation.
The agency emphasized that its findings were limited to those two departments.
Regulators also reported that most Palisades employees felt comfortable raising nuclear safety concerns.
Importantly, the inspection did not identify violations of NRC requirements or significant plant safety issues.
Patrick O’Brien, Holtec’s director of government affairs and communications, told The National that the company was taking steps to address the findings and strengthen its workplace safety culture.
The NRC said it would continue monitoring the company’s corrective actions.
The workplace inspection and the tilted fuel assembly incident are separate matters. There is no verified evidence establishing that the workplace conditions identified by regulators caused the fuel-loading problem.
Holtec Says Recovery Plan Underwent Engineering Review
Holtec maintains that its proposed fuel recovery procedure was supported by technical evaluations.
In its statement to The National, the company said the engineering work addressed structural integrity, fuel handling, thermal conditions and radiation protection.
Holtec also said the plant would return to service only after all required work was completed and federal requirements and industry standards were satisfied.
The company reported that more than 1,000 nuclear professionals were continuing restart preparations alongside the fuel recovery effort.
The NRC said its specialists and resident inspectors would continue monitoring the recovery operation.
Michigan’s $300 Million Investment Raises Stakes
Palisades began commercial operations in 1971 and shut down in May 2022.
Holtec acquired the facility for decommissioning but later pursued restarting the reactor with support from Michigan and the federal government.
The U.S. Department of Energy approved a loan guarantee of up to $1.52 billion to support the project.
Michigan separately provided $300 million in state funding.
Supporters argue that restarting Palisades would restore a major source of reliable electricity generation without the direct carbon dioxide emissions associated with fossil-fuel power plants.
The project is also expected to support skilled employment and economic activity in Southwest Michigan.
The plant’s planned restart is particularly significant because existing nuclear generating facilities can provide electricity without requiring construction of an entirely new reactor.
However, the fuel-loading interruption illustrates the technical challenges involved in returning an older facility to service after several years out of operation.
What Happens Next?
The NRC’s October 13 authorization permits Holtec to proceed with the special recovery procedure under the conditions established by federal regulators.
The immediate priorities are removing the tilted assembly, determining whether additional inspections or corrective actions are necessary and completing fuel loading.
Additional testing and regulatory oversight will be required before Palisades can resume commercial electricity generation.
Holtec has not publicly established a verified new restart date following the fuel-loading incident.
For Michigan residents, the outcome has implications beyond the nuclear industry.
The project involves hundreds of millions of dollars in state funding, substantial federal financing, electricity supply commitments and the future of a major Southwest Michigan industrial facility.
It also presents an important test of how federal regulators oversee the return of a previously closed nuclear power plant.
MITechNews will examine the financial and contractual implications of the Palisades restart in a follow-up report next week, including the project’s March 2027 contractual deadline, federal financing and potential consequences for Michigan electricity customers.
