NRC clears Palisades to return from decommissioning, a U.S. first, Holtec says

Series: Part 1 of 2. Next: Palisades starts loading fuel, then pauses after an assembly tilts (September 2026).

July 2025 — The U.S. Nuclear Regulatory Commission approved the licensing actions that let Holtec International load fuel at the Palisades Nuclear Plant, which stopped running in May 2022. Here's what happened, what it cost, and what went wrong.

Cost and outcome (as of Aug. 26, 2025)

Outcome: the NRC approved actions that "will pave the way for restart"; Palisades moved back to operations status on Aug. 25, 2025. (NRC release 25-046; Holtec, Aug. 26, 2025)
Cost: not disclosed in the NRC or Holtec releases.
Licence: the plant would start up under its original operating license, "which would expire March 24, 2031." (NRC release 25-046)
Status: not restarted. "Several licensing actions" were still under NRC review. (NRC release 25-046)

What the NRC approved

The NRC said it approved the transfer of operating authority for the plant and its spent-fuel storage facility from Holtec Decommissioning International LLC to Palisades Energy LLC, after technical reviews "completed on schedule." (NRC release 25-046)

It also approved Holtec's request to reinstate documents and programs that were in place before shutdown: the technical specifications, emergency plan, emergency action levels and physical security plan, plus programs for quality assurance, maintenance and inservice inspections. A May 2025 report found "no significant environmental impacts from restarting Palisades," the agency said. (NRC release 25-046)

Holtec began filing its licensing requests in late 2023, according to the NRC. The agency was careful about what the approval did and did not do: it "will allow Holtec to load fuel," but "there are still several licensing actions under NRC review and additional requirements that need to be met before the plant can start up." (NRC release 25-046)

What Holtec says it means

Holtec called the decision "the first time a previously shut-down U.S. nuclear plant has received approval to return to operations." With the approval, it said, Palisades could receive new fuel and move licensed reactor operators to on-shift status. (Holtec, July 24, 2025)

"This is a proud and historic moment for our team, for Michigan, and for the United States," said Holtec President Kelly Trice. (Holtec, July 24, 2025)

Once back in service, the plant would generate "more than 800 megawatts" of power, "enough to power more than 800,000 households," Holtec says. Those are the company's own figures. (Holtec, July 24, 2025)

The company said about 600 full-time nuclear staff were on the project, supported by about 1,000 skilled trades workers, vendors and suppliers. It cited "long-term power purchase agreements" but did not name buyers or prices in the release. (Holtec, July 24, 2025)

Back to operations status

On Aug. 25, 2025, Palisades "officially transitioned from decommissioning to operations status," Holtec said. The plant was now authorized to receive fuel and to restart "once allowable conditions are met within the approved Technical Specifications." (Holtec, Aug. 26, 2025)

Holtec listed the work still under way: steam generator repairs by tube sleeving and plugging had been completed, crews were deep-cleaning the steam generators' secondary systems, and the main generator and turbine were being reassembled, including the reinstallation of a 183-ton rotor. (Holtec, Aug. 26, 2025)

The company also plans two 300-megawatt SMR-300 small modular reactors at the site "by the beginning of the next decade," with Hyundai Engineering & Construction. Site work on them had been limited to preparation and geotechnical work, Holtec said. (Holtec, Aug. 26, 2025)

What went wrong

Approval isn't a restart. The NRC said more licensing actions and requirements remained before start-up. (NRC release 25-046)
Equipment needed major repair. Holtec's own list of remaining work included steam generator repairs and turbine reassembly. (Holtec, Aug. 26, 2025)
Firsts are self-described. The "first time" framing is Holtec's; the NRC release does not use it.
What we don't know yet: the restart cost, who pays it, and when the reactor will produce power.

Our follow-up question for Holtec

What is the total cost of the Palisades restart, and how much of it is covered by public money?

Sources

U.S. Nuclear Regulatory Commission, “NRC Approves Major Licensing Actions Required for Restart of Palisades NPP,” release No. 25-046, July 24, 2025. nrc.gov
Holtec International, “NRC Reauthorizes Palisades Operating License in Historic First for U.S. Nuclear Industry,” July 24, 2025. holtecinternational.com
Holtec International, “Historic First: Palisades Transitions Back to Operations Status,” Aug. 26, 2025. holtecinternational.com

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