Moving one step closer to a potential restart, closed Palisades Nuclear Plant secures important agreement

The 800-megawatt unit appears to have found a dedicated power buyer for multiple decades.

Palisades Energy, LLC, a subsidiary of Holtec International, signed a long-term power purchase agreement with Wolverine Power Cooperative, which provides power for many rural residents of Michigan. Websites reported a statement issued by Holtec’s president:

“We are thrilled to enter into this partnership,” Kelly Trice, President of Holtec Nuclear Generation and Decommissioning, said in a statement. “The executed power purchase agreement represents a significant milestone in our journey towards reopening the plant.”

The office of Michigan’s governor praised the news:

“Today’s agreement is a strong step toward restarting Palisades, which would save 600 good-paying, high-skill jobs, continue delivering clean power to approximately 800,000 homes, and support an economic engine in Southwest Michigan,” said Stacey LaRouche, Whitmer’s press secretary.

At the end of July 2023, the Michigan state government approved $150 million for reopening Palisades Nuclear Generating Station. Entergy, its former operator, closed the plant in May of 2022.

According to data from the EIA, in its last full year of operation (2021), Palisades Nuclear Generating Station supplied over 7 million megawatt-hours of electricity. Annual wholesale electricity prices in the midwest range up to almost $150 per megawatt-hour per June 2023 data. At $100 per MW-hr, the output from Palisades could represent around $700 million in annual revenue.