STATEMENT: Energy Department offers $2.8B in subsidies to reopen Michigan nuclear reactor

WASHINGTON — The U.S. Department of Energy announced on Monday that it finalized a $1.52 billion loan guarantee to the nuclear company Holtec, to reopen the Palisades nuclear power plant in Covert Township, Michigan. The deal also includes a $1.3 billion subsidy to two rural cooperative associations to buy power from Palisades under an above-market rate power contract. 

Holtec ceased operations at the Palisades plant in 2022. Never in American history has a nuclear power plant been brought back online after being closed. 

Earlier this year in Massachusetts, Holtec proposed dumping radioactive wastewater from their Pilgrim nuclear power plant into Cape Cod Bay as part of that plant’s decommissioning. The state’s Department of Environmental Protection blocked the proposal.

As of January 2024, utility-scale solar’s capacity has eclipsed that of nuclear power generation in the United States.

In response, Isaac Bowers, federal legislative director of U.S. PIRG Education Fund, issued the following statement:

“This is a classic example of our government throwing good money after bad. Taxpayer dollars shouldn’t further prop up a nuclear industry that’s been lavishly subsidized for generations. Instead, our government should rapidly deploy cleaner, safer and more affordable renewable energy sources.”

Johanna Neumann, senior director of Environment America Research & Policy Center’s Campaign for 100% Renewable Energy, issued the following statement:

“It’s disappointing to see the Department of Energy helping to resurrect a dirty and dangerous nuclear plant from the grave, when America is flush with energy options that are better for people and the planet. 

“Nuclear is, at best, a waste of resources. At worst, it’s a melt-down. Government officials should embrace energy efficiency and renewables as the cheapest, quickest, and cleanest solutions to get America off fossil fuels and keep the lights on.”

Leigh-Anne Cole, executive director of Community Action Works, issued the following statement:

“While it may generate electricity in the short-term, nuclear power’s real legacy is radioactive waste that remains harmful for tens of thousands of years. In Massachusetts, spirited grassroots action convinced regulators to prevent Holtec from discharging nuclear waste into Cape Cod Bay. Instead of supporting the reopening of nuclear reactors, the Department of Energy should lead the way toward a future powered by clean renewable energy sources.”