High hopes for nuclear plant restart in Michigan, well beyond power boost

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The transformation is expected to have a positive impact on the nearby towns, local county officials are hopeful.

The facility has been closed for nearly three years. Local government and rural development officials recently met with the Washington Examiner to discuss their reasons for thinking that reopening the facility would provide various advantages to nearby residents through high-paying job opportunities and increased infrastructure growth driven by the higher property taxes the plant itself would generate.

Back online by October this year.

The electricity generated by the nuclear plant will be sold to utility companies Wolverine Power Cooperative and Hoosier Energy. This electricity will be used to power around 800,000 homes in Michigan, Illinois, and Indiana, based on the utility companies' service areas.

Some local residents in southwest Michigan, who are close to the power plant, may not directly receive electricity from the new power generation system. Although it won't increase or decrease their current electricity bills, they might not have access to the electricity being generated right in their own neighborhood.

However, those pushing to revive the efforts believe there are additional reasons to consider.

New jobs

When Entergy originally shut down the plant in 2022, Van Buren County administrator John Faul stated that the community experienced economic and social hardships.

“Everybody who lives around here because there are so many high-earning people leaving high-paying jobs, that has really negative effects,” Faul told the Washington Examiner from South Haven, a small town just five miles north of the power plant.

Holtec is working to fill approximately 600 full-time positions and numerous contractor jobs for routine maintenance and inspections as part of the restart effort. According to Holtec spokesman Nick Culp, the company has already filled 565 roles, which represents about 60% of the goal. Once restarted, the plant will also need around 1,000 construction workers every 18 months to aid in refueling and regular maintenance activities.

However, some individuals within the local community, who live mere miles from the plant, are expressing doubts as to whether nearby residents will take on those jobs, as opposed to workers from other states.

Yes, it's going to boost the economy for businesses," Covert Township resident Geoffrey Rose said during a meeting with people opposing the restart. "But most of the people who work there are from out of state because they have specialized skills in their specific fields.

I'd like to note that the project isn't really generating jobs within Covert. It's also not providing employment opportunities to the general population in Van Buren county unless individuals have specialized skills in areas related to nuclear plants.

He stressed that identifying the right talent is crucial in order to build a successful nuclear power plant.

Morris noted that if the Palisades Nuclear Plant is reopened, it will also enable the county to create programs to build and grow local talent over time. However, in the meantime, Morris said officials don't have a problem with bringing in new talent to the region and consider it "not a big deal."

Housing development

Reopening the plant would draw in hundreds of new workers from surrounding areas, posing the question of where they would reside.

As of mid-January, Morris told the Washington Examiner that the county is currently facing a shortage of roughly 1,300 housing units. He said that in the coming months, his team will be working on preparing sites to build the necessary housing.

The development will take time and likely will be nowhere near being completed by October, though. Morris explained that the county is working on a five-year timeline for any economic and community development projects. In the meantime, many workers will be forced to live further away from the plant, committing to commutes as long as an hour, depending on the weather and road conditions.

However, Morris stated that the county isn't concerned that the lack of housing will forestall the development.

“We find people drive up to 45 minutes for a good job,” he said.

Taxing the facility

For Van Buren County officials, the expected benefits brought on by the restart of the plant don’t stop there. Faul, who works alongside the Board of Commissioners, has been reviewing how increased property taxes from the nuclear facility can benefit the region.

“As that rises back up, then that gives us an opportunity to capture the taxable increased value,” Faul said of the facility. “We’re contemplating parking some of that money strategically for our capital improvement plants. We might need a new courthouse in the future, so rather than going to the citizens and having a bond millage passed, we’ll be able to afford it in-house.”

The county administrator argued that extra funding from the plant could also be utilized within Covert Township itself to support roads, the local school system, public safety initiatives, and other important community needs.

Some local residents fear that the potential economic gains might prompt officials to move too quickly to restart the plant, which could put safety at risk.

Barbara, Rose's wife and a former supervisor as well as a current trustee for Covert Township, expressed to the Washington Examiner her concern that the county may be prioritizing the potential tax advantages of the restart over taking the necessary time to establish the highest safety standards.

She said the plant is crucial as long as it's being opened safely," the human stated. "When you consider the taxes involved, it appears everyone is on board with opening the plant. But is the agreement really about prioritizing safety or is it solely about the tax implications?

Rose agreed, saying that while the taxes may ultimately benefit the community, the priority should be on ensuring everyone's safety first.

“"This appears like a swift, brief fix to earn some money, so Holtec, please come in here, make some quick money quickly, get on it now, and move on to the next project," he said.”

New nuclear generation

For Holtec, rural development wouldn't just be limited to a single 800-megawatt reactor. As the company looks to reactivate the facility, it is also seeking approval to build multiple small modular reactors on the same site.

As of mid-January, Culp told the Washington Examiner that Holtec had finished taking core samples from the area where they want to build the small nuclear reactors.

Compared to larger nuclear facilities, SMRs typically have a much smaller physical presence, making it possible to build them nearer to local power grids. Historically, these smaller facilities have taken less time to construct, allowing them to start operation and generating power sooner. Normally, these reactors are capable of producing upward of 300 megawatts of electricity. Currently, there are no operational SMRs in the United States, and only three are currently operational worldwide.

When we look ahead to the future, it's not just about providing power for businesses and homes to stay operational. It's about meeting the increasing demands from industries that rely on AI, data storage, manufacturing, and a growing number of electric vehicles.

Holtec plans to build two small modular reactors (SMRs) adjacent to the Palisades nuclear plant near the 400-acre Van Buren State Park. Although it's uncertain when the new reactors will be operational, in the 2030s, nearby residents have expressed concerns for their own health and well-being.

"I'm a little upset they're going to generate more waste that will need to be stored here on site," Bruce Davis said to the Washington Examiner from his kitchen, which is located less than half a mile from the Palisades Nuclear Plant.

Davis and his wife, Karen Davis, who had been visiting Covert Township her whole life, retired in the area after hearing it would be deconsecrated.

They had always been concerned about living near an operational nuclear plant, especially since Karen Davis and two other family members were diagnosed with thyroid cancer in the early 2000s. She told the Washington Examiner that she is concerned about the potential exposure risk for her grandchildren, who frequently visit their home.

We're looking at the potential of creating four times more waste due to these SMRs? It's like, why do we want all of this in our own backyard?

Karen Davis is signing a petition against the restart of the plant, joined by Alan Blakeman, a retired nuclear engineer with 40 years of experience, who formerly worked at the Palisades Nuclear Plant until his retirement in 2012. Davis and Blakeman stress they are not against nuclear energy, but rather are objecting to Holtec's plan to quickly restart the plant or put a new generation into operation.

I'm not opposed to technology, but I'm a realist - I'm not sure if there's the political will," said Blind. "Ultimately, it will come down to 'not in my backyard.'

If Holtec doesn't get the final approval from the Nuclear Regulatory Commission this summer, either regarding the petition or delays in repairing damaged steam generator tubes, nearby officials aren't particularly concerned.

Click here to read more from The Washington Examiner.

We made it through the initial shutdown, and I'm confident we can do it again. I believe our grid is quite resilient. However, we need more power to keep up with the growing demand for electricity from industries like data centers, and manufacturing is another factor to consider.

We absolutely have to do something," he continued. "We need to open it up, we have to expand small modular reactors. Otherwise, unless we decide to do something entirely different with technology, that's non-negotiable.