The restart of the Palisades nuclear power plant in Covert Township, Michigan, has faced another setback amid ongoing fuel handling challenges and regulatory scrutiny.

Fuel loading at the 805-megawatt pressurized water reactor began on August 30 but paused after one partially used fuel assembly tipped over in the reactor vessel. Holtec International, the plant's owner, retrieved the assembly earlier this month following Nuclear Regulatory Commission approval of a license amendment request.

The incident marks the latest delay for the project, which aims to become the first U.S. commercial reactor to resume operations after entering decommissioning. The plant shut down in May 2022 under previous owner Entergy.

NRC inspectors continue to monitor activities at the site. The agency issued a warning in mid-October about a "chilled work environment" in supply chain and quality assurance departments, where some employees expressed hesitation to raise safety concerns due to fear of retaliation. Nine of 15 reactor operators also failed an initial licensing exam in July and August.

No radiological release occurred during the fuel incident, and no workers or members of the public were affected, according to the NRC. Holtec has stated that the plant will resume operations only when all federal requirements and industry standards are met.

The company secured federal loan support, including continuation of funding initiated under the prior administration, to advance the restart. Power purchase agreements require the facility to begin supplying electricity by March 2027. Earlier targets for 2025 and early 2026 slipped due to equipment refurbishments, steam generator work, and other upgrades.

Michigan officials have supported the effort to preserve jobs and reliable baseload power. Critics in Congress have highlighted the safety findings and Holtec's lack of prior nuclear operating experience as reasons for caution.

The project aligns with broader interest in reviving shuttered nuclear capacity to meet growing electricity demand. Similar restart plans are underway at other sites, though Palisades remains the furthest along.

Holtec expects to complete remaining work and return the plant to service ahead of its contractual deadline.