US DOE issues $57 million payment to restart Michigan nuclear plant

The US Department of Energy March 17 released its second loan disbursement to the operator of the currently shuttered Palisades nuclear plant in Michigan, signaling the administration's support for nuclear power even as it seeks to freeze loans and other federal spending.

Energy Secretary Chris Wright initiated the nearly $57 million payment to Holtec International to restart the Palisades plant. The funds would also help ensure the nuclear facility is compliant with Nuclear Regulatory Commission safety standards, Wright said.

The loan payment marks the second disbursement to Holtec for funds from the DOE Loan Programs Office, following the announcement of its financial loan close in September 2024. The loan office is authorized to provide up to $1.52 billion in loan guarantee to Holtec for the 800-MW Palisades project.

The Palisades plant began operating in 1971 and was shut in May 2022 by its then-owner Entergy due to market conditions. Holtec acquired the plant for decommissioning before later deciding to try to restart it.

Restarting the plant will support "American jobs, bolster domestic supply chains, and strengthen America's position as a world energy leader," Wright said in a statement.

President Donald Trump has argued that the previous administration had sought to close baseload power plants, and has pledged to use his executive authority under an energy emergency order he declared on Jan. 20 to secure more electricity.

The announcement comes at a time when the Trump administration is slashing agency funding and freezing grant and loan commitments, though some of those efforts have been blocked by court rulings. On March 14, Trump continued that push by issuing an executive order ending funding for seven small federal agencies and institutions.

Loan and grant applicants have been advised to make sure their documents are as complete as possible, as federal agencies may be seeking other possible ways to stop funding.

On Feb. 3, the NRC concluded in a draft assessment that the potential environmental impacts from preparing for and resuming power operations at the Palisades plant would not be significant. The NRC is considering reauthorizing power operations at Palisades through March 24, 2031, which is the end of the plant's current operating license term. Holtec has said it plans to operate the plant to at least 2051.

On Feb. 28, the Federal Energy Regulatory Commission granted Holtec's request to extend its grid interconnection rights at Palisades until March 2027.

FERC's order granted Holtec's request for a waiver from a Midcontinent ISO tariff provision that limits how long a generator can remain inactive without losing its interconnection rights.

The MISO tariff allows a maximum of 36 cumulative months of inactivity during any five-year period, FERC said.