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Legal Battle Erupts Over Plan to Restart Michigan Nuclear Plant

By: Charlotte Burke • November 20, 2025 • Covert, MI
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Palisades Nuclear Power Plant - Located on the eastern shore of Lake Michigan

(COVERT, MI) - A coalition of anti-nuclear organizations has filed a federal lawsuit to block the planned restart of the Palisades nuclear power plant.

The suit, filed Monday in U.S. District Court, comes from Beyond Nuclear, Don't Waste Michigan, and Michigan Safe Energy Future. The groups argue the plant--originally slated for permanent shutdown in 2022--should never have received approval to restart, and they're seeking a permanent injunction to halt the process.

According to reporting from Bridge Michigan, the lawsuit accuses plant owner Holtec Energy of a "bait-and-switch," buying Palisades with the stated intent to dismantle it before shifting gears toward reopening. The plaintiffs also claim Holtec exploited regulatory loopholes by keeping an active operating license while simultaneously classifying the plant as being in decommissioning mode, which they argue could create safety risks.

Holtec disputes those claims, saying the restart has undergone a rigorous, independent review by federal regulators. The company maintains the plant is safe to return to long-term power generation and says it plans to build two small modular reactors at the site in the future.

Federal regulators have already issued a "finding of no significant impact," and Palisades recently received new nuclear fuel as part of the restart process. Meanwhile, Michigan lawmakers are considering additional subsidies and incentives to support nuclear energy amid surging power demand--much of it driven by large data centers planned.