Holtec Ordered to Address 'Chilled' Atmosphere at Palisades After Exam Failures

The Nuclear Regulatory Commission has issued a formal directive to Holtec International, demanding the company address a "chilled work environment" at the Palisades nuclear power plant in Michigan. The regulator stated that the atmosphere at the site has made employees hesitant to report safety concerns due to a fear of retaliation.

This order follows a July inspection conducted by the NRC to assess safety awareness at the facility. The review was triggered by two specific safety incidents. The first occurred last year when a contractor fell into the reactor cavity, swallowed water, and required off-site medical care. Decontamination efforts by radiation protection staff continued to detect 300 counts per minute in the worker's hair, according to the incident report.

A second incident took place in August during a refueling operation. A bundle of nuclear fuel rods tilted over, delaying the anticipated first restart of a closed U.S. nuclear reactor. The NRC also cited poor performance in licensing exams administered to trainee reactor operators in July and August. Nine of the 15 candidates failed the initial test, resulting in licenses being issued to only six individuals.

Holtec has never previously operated a nuclear power plant. The company has secured approximately $2.2 billion in government support for the Palisades project, which is positioned as a central element of President Donald Trump's initiative to revitalize the domestic nuclear industry.

Critics argue that the pressure to restart plants in response to rising energy demand from artificial intelligence could increase the risk of accidents. They view the current regulatory findings as evidence of this potential vulnerability. The restart of Palisades was intended to serve as a model for other shuttered facilities.

The Palisades plant is not the only site planning a return to service. Owners of Three Mile Island in Pennsylvania and Duane Arnold in Iowa announced restart plans shortly after work began at Palisades. Both facilities had been slated for decommissioning before these new proposals were made.

The NRC's directive requires Holtec to remediate the cultural issues identified in the inspection. The plant remains closed while the company works to meet the regulator's requirements for operator licensing and workplace safety.