Restart of Michigan's Palisades Nuclear Plant Faces Another Potential Delay

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Holtec's restart of the Palisades nuclear plant in Michigan faces yet another delay. The effort is a key part of Michigan's goal of reaching net-zero emissions by 2050 and supporting a state law requiring 100% carbon-free electricity in 2040.

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Palisades Nuclear Plant Faces Further Obstacles

Holtec previously pushed the restart of the Palisades nuclear plant in Michigan to February, and now the effort faces further complications.

The plant--which began operating in 2022 and was later sold to Holtec for decommissioning--would be the first U.S. nuclear plant to restart after being closed.

Repair work is still ongoing, and missing documentation poses a regulatory hurdle with the Nuclear Regulatory Commission (NRC), according to local news reporting on the latest update.

According to news site Michigan Public, at a February 9 meeting with the NRC, Palisades Senior Licensing Engineer Steve Callis said, "We do not seem to ... be able to find the CMTRs [certified material test reports] data that we need to back up the post-weld heat treatment we have applied to three welds."

The CMTRs, among other documentation, are needed to prove the work adheres to federal regulations. According to m live, Callis said Holtec expects to request relief from the NRC by February 20, in order to exempt the company from providing the CMTRs.

The latter news site also reported NRC officials are asking for detailed drawings of the repaired areas and a summary of other work done in the plant in the request for documents.

Holtec Spokesperson Nick Culp did not provide an updated timeline for the restart after the meeting.

The plant has received approval to load fuel, but that has not yet begun. For more information on the restart, which also is facing legal challenges, see January 12, 2026, article - Holtec Pushes Palisades Nuclear Restart to February.

Holtec also seeks to build two small modular reactors (SMRs) at Palisades, which would bring its total capacity from 800 megawatts (MW) to about 1,400 MW.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from the related restart and SMR project reports as well as a Palisades plant profile.

Michigan's Power Generation Buildout

Michigan has committed $150 million in funding for the initial restart, which is considered a key part of the state's MI Healthy Climate Plan that includes a goal of the state reaching reach 100% carbon neutrality by 2050. The state also has passed a state law requiring net-zero electricity in 2040, which calls for solar and nuclear power among other sources.

Industrial Info is tracking projects aimed at meeting those goals. This includes efforts from the top two utilities in Michigan (DTE Energy and Consumers Energy), such as DTE's 132-MW Fish Creek solar pant in Sheridan and the latter's 140-MW Spring Creek solar plant in Battle Creek. Industrial Info is tracking the projects with a completion date in the second half of 2026 and 2027, respectively. Subscribers can read the related project reports.

Consumers Energy is the regulated utility of parent company CMS Energy, which earlier this month indicated its new $24 billion five-year capital investment plan (up $4 billion from the previous plan) is focused on the utility.

According to the parent company's fourth-quarter earnings information, the $4 billion increase was due to $2.5 billion in additional capital for electric generation, most of which has been approved, and $1.2 billion in new spending for electric reliability.

"Our integrated resource plan that we'll file in mid-2026 will detail additional capacity needed to replace retired plants and support existing and future growth," Consumers and CMS Chief Executive Officer Garrick Rochow said in the earnings conference call. "This customer investment opportunity is not contingent on new data centers but growth already or soon to be connected to our system. We know we are well on our way in planning and preparation to deliver capacity in this five-year window."

A 2025 report from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) said the state was on track to meet its goal for carbon neutrality by 2050, although the Trump administration's pro-fossil fuel stance could pose a threat. For more information, see January 24, 2025, article - Report: Michigan on Track to Meet Low-Carbon Goals.

Industrial Info is tracking $25 billion worth of active and proposed Power Industry projects across Michigan, with about 65% of the investment attributed to solar projects and the Palisades restart and SMRs. Subscribers can view a full list of project reports.

Key Takeaways

• The restart of Michigan's Palisades nuclear plant is facing further delays.
• Although repair work is ongoing, missing documentation required for regulatory approval poses a new hurdle.
• Holtec will seek relief from the NRC to move forward without it.
• Palisades will support Michigan's effort to reach carbon neutrality by 2050 and net-zero electricity in 2040, which includes nuclear and solar power.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).