NRC Warning: Holtec Must Fix Safety Culture at Palisades
Nine of fifteen trainee operators failed licensing exams, and regulators found staff fear retaliation when raising safety concerns.
By Priya Marino ·
The Nuclear Regulatory Commission has issued a formal warning to Holtec International, the company managing the Palisades nuclear power plant in Michigan. The regulator cited a 'chilled work environment' that has left employees hesitant to report safety issues due to fear of retaliation.
The warning follows two distinct safety incidents and poor performance on licensing exams. During inspections in July and August, nine of the fifteen trainee reactor operators failed their initial license tests. Only six individuals successfully received operator licenses. The NRC stated that the plant's atmosphere discourages staff from voicing concerns about potential hazards.
The regulatory review was prompted by questions about safety awareness at the site. One trigger was an incident last year in which a contractor fell into the reactor cavity. The worker swallowed water and required off-site medical care. Radiation protection staff decontaminated the individual, but an incident report noted that 300 counts per minute were still detected in their hair. A second incident occurred in August when a bundle of nuclear fuel rods tilted during a refueling operation. This event delayed the expected restart of the facility.
Holtec International has never operated a nuclear power plant before. The company secured approximately $2.2 billion in government support for the Palisades project. The restart is central to the current administration's push to revive the domestic nuclear industry. Officials have promoted the plant as a symbol of a renewed commitment to nuclear energy in the United States.
The failure rate among new operators and the documented fear of retaliation have drawn attention from industry critics. They argue that financial and political pressure to revitalize nuclear power, driven by surging energy demand from artificial intelligence, increases the likelihood of accidents. The pressure to meet restart deadlines may be contributing to the strained conditions at the site.
Palisades is one of three shuttered facilities currently planning a comeback. The owners of Two Mile Island in Pennsylvania and Duane Arnold in Iowa announced similar restart plans shortly after work began at Palisades. These projects represent a significant shift in the US nuclear sector, which had previously focused on closing older plants.
The NRC’s order requires Holtec to address the cultural issues identified during the July inspection. The company must demonstrate that it has corrected the environment that led to the exam failures and the two physical incidents. The regulator will monitor the site to ensure that staff feel safe reporting future concerns without fear of retribution.
