This week’s announcement of a $1.5 billion dollar Federal loan for the restart and redevelopment of the Palisades Nuclear Power Plant at Covert may someday be viewed as the official ‘new beginning’ of the Palisades story from an economic perspective.
The shutdown of the plant in 2022 was seen as a virtual death knell for the Van Buren County economy by some. What would replace the 600+ good-paying jobs at Palisades, especially if they disappeared quickly as many feared?
Now, two years later, U.S. Energy Secretary Jennifer Granholm and Michigan Governor Gretchen Whitmer are speaking with some confidence about Palisades again employing 600 or more workers long term, if Holtec Corporation is able to resurrect the plant for another 20 years of nuclear power generation. And, there is talk of two Small Modular Reactors (SMRs), eventually being installed at the Palisades site to extend its life even further.
None of the ‘blue sky’ has happened yet, beyond the paperwork of a federal loan commitment. But it’s a very different sounding story than we were hearing a few years ago about Palisades and the economic prospects for Van Buren County and the surrounding area.
For some perspective, MoodyOnTheMarket.com turned to Zachary Morris, Executive Director of Market Van Buren, the non-profit agency that focuses on economic development and jobs for Van Buren and Cass Counties.
Morris told us that while the shutdown of Palisades was a big blow, the area’s economy has fared better than many expected:
“Van Buren County anticipated and prepared for losses in taxes and employment. However, due to companies making new investments and expanding their businesses the losses were mitigated. The reopening of Palisades brings back 600 high-paying jobs and potentially $10 million of taxes to a healthy local economy. Which was never expected and is a great boost to the local economy, schools, libraries, law enforcement, emergency services, and roads, among others.”
Morris points out that there has still been significant economic activity going on at Palisades during the two-year period since the final reactor shutdown:
“Palisades has over 300 employees currently employed and anticipates returning to their previous employee count of 600 employees. During the re-opening phase, we anticipate at least 1000 skilled trades to be onsite.”
We asked Morris where the approximately 300 former Palisades workers landed:
“Most of the Entergy Palisades employees were offered the option of transferring internally to another site within Entergy’s regulated business (power plants). Not all employees wanted to leave Michigan and found work locally. Those with marketable nuclear or energy industry experience most likely transferred to another nuclear plant or utility company.”
Between the lines, we see that there were certainly some high-paying, highly skilled jobs lost to the local economy. However, there were not hundreds of people who became long-term unemployed in Southwest Michigan, as some feared and predicted when the ‘Off’ switch was flipped at Palisades.
The Palisades plant restart and eventual redevelopment as a new SMR nuclear generating station is a long road. 2026 seems to be the most optimistic timetable anyone is willing to mention for re-licensing of the plant. And quietly we are told it could easily be 2030 before everything is sorted out, reconstructed, inspected, and given the green light—if it EVER happens amid political and scientific ‘back and forth’ about the role of nuclear power in America’s quest for a carbon-free future.
In the meantime, Zachary Morris goes to work every day trying to boost the Van Buren and Cass County economy. We asked him what he’s focusing on when Palisades isn’t on his daily agenda:
“We are excited about bringing high-speed fiber optic internet to thousands of unserved residents, preparing new industrial sites for business growth, and solving the housing challenges facing our communities. We also need to ensure our downtowns are being maintained, refreshed, and rebuilt. This is all part of an effort to attract talented people back to Cass and Van Buren counties to work in strong businesses and live in vibrant communities.”
Morris and his agency are part of the larger Kinexus Group, headquartered in Benton Harbor and focused on economic and job development and training across the entire Southwest Michigan region.
By Gayle Olson, MOTM Contributor
