Holtec International’s ongoing effort to repower Michigan’s closed Palisades nuclear plant made progress this week with the signing of a power purchase agreement (PPA) between the firm’s Holtec Palisades Energy LLC subsidiary and Wolverine Power Cooperative, a not-for-profit energy provider to the rural communities across Michigan.
The Palisades nuclear power plant may have entered retirement, but it’s not dead yet. Plant owner Holtec International is continuing with its unprecedented effort to restart the Covert, Mich., single-unit facility, shuttered 11 months ago by previous owner Entergy.
The Department of Energy has announced the release of application guidance for the second award cycle of its $6 billion Civil Nuclear Credit (CNC) Program.
Part of the Infrastructure Investment and Jobs Act—the $1.2 trillion bipartisan measure signed by President Biden in November 2021—the CNC Program was established to prevent the premature retirement of economically challenged nuclear power plants in recognition of the crucial role the Biden administration sees nuclear playing in achieving its ambitious decarbonization goals, including 100 percent clean electricity by 2035.
Another calendar year has passed. Before heading too far into 2023, let’s look back at what happened in 2022 for the American Nuclear Society and the nuclear community. In today's post that follows, we have compiled from Nuclear News and Nuclear Newswire what we feel are the top nuclear news stories from April through June 2022.
Stay tuned this week for the top stories from the rest of the past year.
But first:
Holtec International is apparently not ready to give up on the Palisades nuclear power plant just yet. Despite having been denied federal funds last month for a possible reopening of the Covert, Mich., facility, the company this week announced its intention to reapply.
Pacific Gas & Electric’s two-unit Diablo Canyon plant—California’s lone operating nuclear power facility—has been deemed eligible for the initial round of funding from the Civil Nuclear Credit (CNC) Program, the Department of Energy announced yesterday.
The decision was welcomed by a nuclear community disappointed by last Friday’s news that the DOE had rejected Holtec International’s CNC application for the recently closed Palisades nuclear plant in Michigan, despite support for the effort from Gov. Gretchen Whitmer.
Gov. Whitmer
While the fate of Michigan’s Palisades nuclear plant remains uncertain, Gov. Gretchen Whitmer has approved legislation requiring a feasibility study to examine the potential for new nuclear generation in the state.
Signed into law last Friday, House Bill 1609 instructs the Michigan Public Service Commission to engage an outside consulting firm to conduct the study.
The measure was introduced in the House on April 14 by Rep. Graham Filler (R., 93rd Dist.) and passed that chamber on May 19, 85–20. On September 28, the bill passed even more comfortably in the Senate, 32–4.
The mandated study is due to the governor and leaders of the state legislature in 18 months.
Cavanaugh
In an opinion piece published by The Hill, Tim Cavanaugh blasts the federal government for “quick-fix” and “half-hearted” efforts to retain existing nuclear power plants.
Cavanaugh, senior editor at the Mackinac Center for Public Policy, adds that the U.S. nuclear energy industry is stifled by outmoded policies and suggests a number of policy changes to allow it to flourish and to “end a regulatory model that has starved the nuclear industry nearly to extinction.”
Renewable failures: Cavanaugh’s first suggestion is to acknowledge the failure of renewable energy sources like wind and solar, which “produce too little energy and are too unreliable to make a dent in our heat and electricity needs, even though taxpayers have spent billions of dollars on green pork.”
Maybe hold off commenting on those Palisades decommissioning plans for now: Michigan Gov. Gretchen Whitmer last Friday penned a letter to energy secretary Jennifer Granholm pledging state support for a Holtec International plan to restart the recently shuttered Palisades nuclear plant in Covert, Mich. It was Whitmer’s second letter to the Department of Energy head expressing support for Palisades and touting its value to the state.
The Nuclear Regulatory Commission has made Holtec International’s post-shutdown decommissioning activities report (PSDAR) for the closed Palisades nuclear power plant available for public comment until December 27. The NRC also plans to hold a public meeting to discuss the report on the evening of September 22 at the South Haven campus of Lake Michigan College, about 10 miles north of the Palisades site in Covert, Mich.
The deadline for first-round applications to the Department of Energy’s Civil Nuclear Credit (CNC) Program is September 6. While the program’s goal has never shifted from providing support to nuclear power plants facing closure for economic reasons so that they can continue generating clean power, the deadline and the first-round eligibility criteria have changed. The program was established by the Bipartisan Infrastructure Law with a sizable, yet finite, fund of $6 billion. Those applying in the first round will get the first—and possibly the best—crack at a share of the funds.
Holtec International announced on June 28 that it has completed the acquisition of the Palisades nuclear power plant and the Big Rock Point site from Entergy Corporation. The Nuclear Regulatory Commission approved the license transfer for the two sites, both located in Michigan, in December 2021.
Rep. Graham Filler (Photo: Michigan House Republicans)
It’s not all bad news from Michigan. While it may not make up for the closing of Covert, Mich.’s Palisades nuclear plant, the state’s House of Representatives last week easily approved legislation that calls for a feasibility study to examine the potential for new nuclear generation.
Introduced on April 14 by Rep. Graham Filler (R., 93rd Dist.), House Bill 1609 passed the chamber 85–20 on May 19 (just one day prior to Entergy’s announcement that it closed Palisades 11 days before its scheduled retirement). Now in Senate hands, the measure instructs the Michigan Public Service Commission to engage an outside consulting firm to conduct the study.
Should the bill become law, the commission must deliver a report on the study to the governor and congressional leadership within 18 months.
Despite last month’s strong (and many might say overdue) expression of interest from Michigan Gov. Gretchen Whitmer in extending the operational life of the Palisades nuclear power plant via the Department of Energy’s new Civil Nuclear Credit Program, the facility’s 777-MWe pressurized water reactor was removed from service last Friday—11 days prior to its scheduled May 31 retirement date.
The Department of Energy has announced the steps that would-be applicants must take to access funds from the $6 billion Civil Nuclear Credit (CNC) Program. Guidance published April 19 invites owners or operators of those plants most at risk of near-term closure to apply during the program’s first award cycle. With shutdown planned next month, Entergy’s Palisades plant would top that list (read on for more on Michigan’s efforts to keep the plant operating), but any reactor with publicly announced plans to close by September 30, 2026, that meets other program criteria could be certified for credits. Successful applicants won’t have to wait long for good news: the DOE plans to announce award decisions as soon as 30 days after the May 19 deadline for submitting certification applications together with sealed bids for credits.
“Many states have made carbon dioxide–reduction plans with no hope of success. But if they want to meet even a portion of those goals, they must put nuclear power back on the table.” So opined Tim Cavanaugh, senior editor at the Mackinac Center for Public Policy, in an essay published by The Hill on March 23.
The Michigan and Ohio Section of the American Nuclear Society warned of environmental and economic harm if Palisades’ clean energy is lost in May
The combined Michigan and Ohio Section of the American Nuclear Society (ANS) urged Michigan Gov. Gretchen Whitmer and state lawmakers in a letter to reconsider the premature closure of the carbon-free Palisades nuclear power plant in May.
In the spirit of the letter sent earlier this month to California Gov. Gavin Newsom urging the continued operation of Diablo Canyon beyond 2025, the Climate Coalition—a pronuclear group based in Menlo Park, Calif.—has drafted a similar letter to state officials in Michigan concerning the Palisades nuclear power plant.
The letter, which at this writing has over 260 signatories, implores Gov. Gretchen Whitmer and members of the Michigan legislature to take action to save Palisades. Owner and operator Entergy has slated the plant for permanent closure in May, nine years before the expiration of its operating license.
The Nuclear Regulatory Commission has approved the transfer of the Palisades nuclear power plant licenses from Entergy Nuclear Operations to Holtec International, as owner, and Holtec Decommissioning International (HDI), as decommissioning operator. Holtec and HDI intend to decommission the single-unit pressurized water reactor, located in Covert, Mich., under an accelerated schedule.
When on May 7, 2013, the Kewaunee nuclear power plant in rural Wisconsin was shut down, it took with it more than 600 full-time jobs and more than $70 million in lost wages, not including temporary employment from refueling and maintenance outages. Taking into account indirect business-to-business activity, the total economic impact of the closure of the single-unit pressurized water reactor was estimated to be more than $630 million to the surrounding three-county area.