Holtec faces a March 2027 contractual deadline to begin supplying power to customers, who secured an extra $1.3 billion in government funds to buy power from Palisades.

In a statement to the FT, Holtec said it took the issues identified by the NRC seriously and was addressing them to ensure the plant runs safely. It said the fuel assembly that tilted over was successfully recovered without spilling in a “remarkable demonstration of technical ingenuity.”

“A strong safety-conscious work environment is fundamental to our culture,” the company said. “The assertion that we have rushed has directly been countered by the work that has been accomplished.”

The NRC told Holtec its concerns about workplace culture must be addressed promptly to prevent further “cultural decline” within the affected departments. NRC has asked Holtec to correct the problems and will review the company’s plan within 30 days.

However, the NRC downplayed any immediate risk to the public, saying mitigating measures ensured plant safety was not compromised. Holtec said the worker who fell into the reactor cavity last year had sustained minor injuries from the fall but quickly returned to work.

Holtec, which is trying to transform itself from a supplier of nuclear components and services into a reactor design and plant operator, has faced governance questions in the past. It has been the target of a whistleblower lawsuit and legal disputes involving former executives, relating to allegations of financial misrepresentation, executive retaliation and fraudulent practices.

Kris Singh, founder and chief executive of Holtec, rejected the claims in a prior interview with the FT.

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