Holtec to address 'chilled' environment at Palisades after nine operators fail exam

Holtec International received a formal warning from the Nuclear Regulatory Commission regarding safety conditions at the Palisades nuclear plant in Michigan. The agency directed the company to address a work environment it described as chilled, a condition that has made staff hesitant to report safety issues.

The NRC issued the warning following an inspection conducted in July. The review was triggered by concerns about safety awareness at the site. Regulators noted that employees expressed a fear of retaliation if they voiced concerns about operational risks.

Two specific incidents prompted the regulatory scrutiny. In 2025, a contractor fell into the reactor cavity and swallowed water. Although the worker was decontaminated, an incident report found 300 counts per minute of radiation in their hair. A second event occurred in August 2026 when a bundle of fuel rods tilted during refueling, delaying the scheduled restart of the plant.

Exam results for trainee reactor operators also played a role in the NRC's assessment. Nine of the 15 candidates who took the initial licensing examination between July and August failed. Six individuals successfully obtained their operator licenses during that period.

Holtec has not previously operated a nuclear power plant. The company has secured approximately $2.2 billion in government support for the Palisades project. This initiative is a central component of the administration's effort to revive the domestic nuclear industry.

Critics of the restart plan argue that financial and political pressures to meet energy demands created by artificial intelligence increase the risk of accidents. They point to the Palisades situation as an example of these risks materializing in practice.

Palisades is the first of three shuttered reactors to announce a return to service. Owners of Three Mile Island in Pennsylvania and Duane Arnold in Iowa also announced restart plans shortly after work began at the Michigan site.