NUCLEAR POWERFederal Money Could Supercharge State Efforts to Preserve Nuclear Power
A plant in Michigan might become the first to reopen after closing. The Palisades plant in southwest Michigan could be revived by a $1.5 billion loan from the U.S. Department of Energy.
In the coming years, a nuclear power plant on the shores of Lake Michigan could become the first in the country to restart operations after shutting down.
The Palisades plant in southwest Michigan could be revived by a $1.5 billion loan from the U.S. Department of Energy, Bloomberg reported. Federal officials have not yet confirmed the funding, but Dr. Kathryn Huff, assistant secretary in the agency’s Office of Nuclear Energy, told Stateline that it would be “exciting” and “historic” to see the plant return to life.
The potential federal investment comes as state leaders in Michigan and elsewhere have worked to preserve their nuclear power capacity. Democratic Gov. Gretchen Whitmer successfully pushed for $150 million in state funding last year to support the Palisades restart. The plant is owned by Florida-based Holtec International, which bought it in 2022 to decommission it.
Reviving the plant “is really significant to make sure we can meet our clean-energy goals,” said Kara Cook, chief of staff with the Michigan Department of Environment, Great Lakes, and Energy. “This is really important to us not only from a climate perspective, but also the economic impact on the region.”
As states seek to transition to carbon-free electricity, some leaders acknowledge their climate change goals may be out of reach if they can’t keep their nuclear plants online. Nuclear has struggled to compete on cost with other power sources — while also facing concerns about safety risks and radioactive waste — but it provides 18% of the nation’s electricity. The closure of nuclear plants, some state officials fear, could lead to an expansion of fossil fuel-powered replacements, worsening the climate problem.
“You’re starting to see a lot of states transition to a position where they’re supportive of nuclear,” said Todd Allen, chair of the Nuclear Engineering and Radiological Sciences department at the University of Michigan. “And compared to 30 years ago, the amount of federal support for nuclear is unbelievable.”
California also received a boost of federal money in an award finalized last month to keep open a nuclear plant run by Pacific Gas and Electric, known as PG&E. Other states, including Connecticut, Illinois and New Jersey, have passed legislation in recent years to provide subsidies for existing nuclear plants.
