NRC Orders Holtec to Fix Chilled Safety Culture at Palisades

The U.S. Nuclear Regulatory Commission has issued a formal warning to Holtec International over safety conditions at the Palisades nuclear plant in Michigan. The regulator identified a chilled work environment where employees hesitate to report safety concerns due to fears of retaliation. This directive addresses the company's management of the site as it prepares for a long-awaited restart.

The warning follows a series of operational setbacks. In July, the NRC conducted an inspection prompted by concerns about safety awareness at the facility. That review came after an incident in 2025 involving a contractor who fell into the reactor cavity. The worker swallowed water and required off-site medical care. Decontamination efforts revealed 300 counts per minute of radiation in the individual's hair.

A second incident occurred in August during a refueling operation. A bundle of nuclear fuel rods tilted over, causing delays in the restart timeline. The event interrupted what was expected to be the first restart of a closed nuclear reactor in the United States.

The NRC also flagged performance issues among the plant's workforce. Nine of 15 reactor operators failed the initial licensing examination administered between July and August. Only six candidates successfully received their operator licenses.

Holtec International has never previously operated a nuclear power plant. The company has secured approximately $2.2 billion in government support for the Palisades project. The initiative has been positioned as a central element of efforts to revitalize the domestic nuclear industry.

Critics argue that the situation reflects wider risks in the sector. They contend that financial and political pressures to expand nuclear capacity, driven by rising energy demand from artificial intelligence, may increase the likelihood of accidents.

Palisades is one of three shuttered facilities currently planning a return to service. Owners of Two Mile Island in Pennsylvania and Duane Arnold in Iowa also announced restart plans following the start of work at Palisades.