House reps urge feds' 'swift' review of loan to restart Michigan nuclear plant

Washington ― A bipartisan group of Michigan and New Jersey lawmakers wrote this week to federal regulators urging a "fair, full and swift" review of Holtec International's application for a $1 billion loan to restart the Palisades Nuclear Plant in southwest Michigan.

The letter, led by Holland Republican U.S. Rep. Bill Huizenga, notes that "buy-in" from all parties including the federal government is needed to repower Palisades and make it successful for future generations. It's addressed to Energy Secretary Jennifer Granholm and Nuclear Regulatory Commission Chair Chris Hanson.

"Throughout this process and going forward, we expect NRC to utilize its full independent oversight authorities to ensure the most stringent standards of safety," the lawmakers wrote.

"The repowering of Palisades represents a critical step in addressing energy shortages, supporting the fight to lower carbon emissions, and promoting economic growth.”

The letter was signed by Reps. Donald Norcross, D-New Jersey; Tim Walberg, R-Tipton; Hillary Scholten, D-Grand Rapids; Jack Bergman, R-Watersmeet; Haley Stevens, D-Birmingham; John Moolenaar, R-Caledonia; Elissa Slotkin, D-Holly; and Jeff Van Drew, R-New Jersey.

Holtec applied for a roughly $1 billion loan from the U.S. Department of Energy in early 2023 to support the effort to restart Palisades, the company has said. It's unclear when a decision is expected, and a Holtec representative declined Thursday to comment on specifics.

"We continue to work cooperatively with the U.S. Department of Energy to move the loan application process forward. We are confident in the strength of our application and hope for a timely approval to bring the plant back to full power operation toward the end of 2025," Holtec spokesman Nicholas Culp said by email.

"We greatly appreciate the bipartisan support from our congressional leaders, which builds upon the strong continued support we have received from our community, state and federal partners."

Holtec, which is based in New Jersey, filed with the NRC in October to make the shuttered Palisades plant the first in the nation to reverse the decommissioning process, asking the commission to decide before the end of 2024.

Holtec bought the Palisades plant in Van Buren County's Covert Township from Entergy in June 2022 shortly after the plant had been shut down and defueled. The company still needs the Nuclear Regulatory Commission to reauthorize the placement of fuel in the Palisades reactor vessel and reauthorize power operations at the plant.

Gov. Gretchen Whitmer has backed the restoration of the plant. Michigan lawmakers set aside $150 million for reopening the plant in the 2024 state budget so long as the effort also gains federal support.

But last year, the Energy Department turned down a request for funding to restart operations. The company did not apply for the second round of funding through the Energy Department's $6 billion Civil Nuclear Credit program because it was unclear whether Palisades met the criteria.

This month, Holtec announced that it plans to build two additional reactors to nearly double the capacity of the site, intending to file a construction permit application in 2026 after the Palisades plant is brought back online in 2025.

Holtec hopes to have the smaller reactor units up and running by mid-2030, pending NRC review.

The existing plant produces about 800 megawatts, while the new reactors would produce a minimum of 300 megawatts each in net electric power and a thermal output per reactor of 1,000 megawatts.

In September, Holtec announced it had two energy cooperatives willing to buy the power produced by the restarted plant: Indiana-based Hoosier Energy and Northern Michigan's Wolverine Power Cooperative.

Holtec executives have said they need three financial promises before they can restart Palisades' operations — a power purchase agreement, support from the state and federal funding.. The federal loan request appears to be the final hurdle.

If Palisades were to reopen, Holtec would be the licensed owner of the plant but would partner with a Nuclear Regulatory Commission-approved operator that still would be needed to be selected.

Staff writers Carol Thompson and Beth LeBlanc contributed.

mburke@detroitnews.com