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There is no confirmed date for the Palisades Nuclear Plant to return to commercial operation. In its September 21, 2026 update, operator Holtec International said fuel loading was paused after one fuel assembly tilted following placement. Holtec said it was planning retrieval and preparing a related license-amendment request; progression to later operating modes depended on resolving the assembly, completing tests and modifications, and obtaining applicable Nuclear Regulatory Commission (NRC) approvals.
What happened at Palisades?
Palisades is a single-unit, 800-megawatt pressurized-water reactor in Covert Township, Michigan. It ceased operating on May 20, 2022, after more than 40 years of commercial operation, according to the NRC.
Holtec began pursuing restoration and restart of the shutdown, defueled plant in 2023. The effort is unusual: the project aims to return a retired U.S. nuclear plant to service, but regulatory approvals and financing do not by themselves mean the unit is restored or ready to generate electricity.
Why is the restart paused?
Holtec reported that Palisades entered Mode 6, the refueling mode, and began loading fuel on August 30, 2026. According to the operator’s September 21, 2026 progress report, one assembly tilted from its upright position after it was placed and the fuel-handling grapple disengaged.
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Holtec said workers followed procedures and notified the NRC. The company also said it determined the event did not meet NRC regulatory safety-reporting requirements; that is Holtec’s assessment, not an independent NRC safety finding. The operator said it paused fuel loading, initiated a root-cause evaluation, began developing retrieval equipment, and was preparing a license-amendment request for the proposed retrieval method.
Holtec’s report also said the plant had reconnected to the 345-kilovolt switchyard on September 11, 2026, while commissioning and testing continued. Reconnection is a restoration milestone, not evidence that the reactor had resumed commercial operation.
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What must happen before Palisades can restart?
The NRC says a restart requires restoring the plant’s operating licensing basis and returning components to a condition that supports safe operation, including any repairs or upgrades needed for that basis. Its staff reviews licensing documents, inspects new and restored components, and continues oversight. In the September 21 update, Holtec said movement to subsequent operating modes depended on satisfactory resolution of the tilted assembly, completion of tests and modifications, and applicable NRC approvals.
- Resolve the affected assembly. Holtec must carry out its proposed retrieval approach, subject to the applicable licensing process.
- Complete commissioning, tests, and modifications. The work must support the plant’s operating licensing basis and demonstrate readiness.
- Obtain applicable NRC approvals and oversight. The NRC’s review and inspections are distinct from Holtec’s restoration work and DOE financing.
- Progress through operating modes before commercial generation. The September 21 report did not give a confirmed commercial restart date.
Timeline: shutdown, restoration, and restart effort
| Date | Milestone |
|---|---|
| May 20, 2022 | Palisades ceased operations, according to the NRC. |
| March 2023 | Holtec notified the NRC that it sought to restart the shutdown, defueled plant. |
| September 2024 | The U.S. Department of Energy (DOE) closed a $1.52 billion loan to Holtec Palisades, LLC, to support restoration and resumption of service. |
| July 2025 | Regulatory approvals included an exemption, license amendments, and a transfer of operating authority, as summarized by the U.S. Department of Justice. These approvals did not establish that restoration or operational readiness was complete. |
| August 30, 2026 | Holtec said the plant entered refueling mode and began fuel loading; loading was later paused after an assembly tilted. |
| September 11, 2026 | Holtec said the plant reconnected to the 345-kilovolt switchyard. |
| September 21, 2026 | Holtec reported that fuel loading remained paused and that later operating-mode progression was conditional on resolving the assembly, completing work, and applicable approvals. |
What the DOE loan does—and does not—mean
DOE’s Palisades project summary says the $1.52 billion loan closed in September 2024 to help finance restoration and resumed service at the 800-MW plant. DOE states that resumption is subject to NRC licensing approvals. Its Record of Decision describes financial assistance for refueling and resumed generation consistent with the renewed facility operating license through March 2031.
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DOE describes the effort as a milestone, saying, “Once complete, this project will be the first recommissioning of a retired nuclear power plant in the U.S. history.” The loan supports the project financially; it is not permission to operate, which remains subject to NRC requirements.
What was the lawsuit about?
On July 1, 2026, the Justice Department announced that the U.S. District Court for the Western District of Michigan dismissed a lawsuit challenging an NRC exemption decision. DOJ said the Hobbs Act channels review of a final NRC licensing order to the U.S. Courts of Appeals. The dismissal addressed the challenge to the exemption; it did not mean Palisades had returned to commercial operation.
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Is Hyundai restarting the existing reactor?
No. The existing reactor’s restart is Holtec’s restoration and licensing effort. Hyundai Engineering & Construction is connected to a separate proposed project: DOE’s environmental assessment reports that Holtec announced a deal with Hyundai E&C on February 25, 2025, to build small modular reactors at the site. Holtec’s newsroom index lists March 30, 2026 preparatory planning by the Holtec/Hyundai team for Pioneer Units 1 and 2, identified as SMR-300 units. That is future construction planning, not the work to restart Palisades’ existing reactor.
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