Located in SWMPC’s backyard on the coast of Lake Michigan, the Palisades Nuclear Power Plant was one of 54 power plants in operation in the U.S. until its closure in 2022.  The plant was a “long-standing community anchor,” and its closure had significant implications for Southwest Michigan’s economy. As an economic driver, the plant supported jobs, offset negative economic impacts created by fluctuations in seasonal tourism, and was a “key source of tax revenue for the region”.  Furthermore, according to an assessment by the Economic Growth Institute at the University of Michigan, the plant supported over 594 jobs, which would result in approximately $70 million in lost wages, not accounting for benefits. This loss of jobs amounts to an estimated reduction in total output of $259 million, which represents 1.1% of the tri-county economy. Given its role in the local economy, the region’s prosperity was closely tied to the plant, making its closure a major economic disruption.

SWMPCs Role
According to the U.S. Economic Development Administration, EDDs are multi-jurisdictional entities that “lead the locally-based, regionally driven economic development planning process that leverages the involvement of the public, private and non-profit sectors to establish a strategic blueprint (i.e., an economic development roadmap) for regional collaboration.” As the designated EDD for Southwest Michigan, SWMPC was responsible for helping its counties plan for and mitigate the economic impacts of the plant’s closure. SWMPC responded by developing the “Palisades Economic Recovery Strategy” to address the economic gaps left by the plant’s closure.

According to Executive Director John Egelhaaf, SWMPC goes beyond its responsibilities as an EDD acting as a “trusted third party for the region”—facilitating collaboration, clarifying information, and helping communities turn what they learn into actionable strategies. John describes SWMPC as entrepreneurial by necessity, constantly scanning the horizon, building partnerships, and securing resources to address complex issues like energy transitions and economic recovery.

Securing Resources
Regional councils are tasked with identifying and securing funding for multi-jurisdiction projects such as the Economic Development Strategy. In response to the closure of Palisades, SWMPC stepped into the role and stitched together various streams of funding from the U.S. Economic Development Administration, Consumer Energy Foundation, MI Department of Treasury – Energy Impact Project, and Michigan State Housing Development Authority, totaling $1.2 million to fund the development of an actionable strategy to mitigate the economic impacts of the closure.

Facilitating Collaboration
As the trusted third party, SWMPC brought together various levels of government and industry partners to form the Palisades Economic Recovery Initiative. Partners included Market Van Buren/Kinexus, Van Buren County, University of Michigan – Economic Growth Institute, Michigan Economic Development Corporation, Michigan State Housing Development Authority, Michigan Department of Treasury – Energy Transition Impact Project, Consumer Energy Foundation, and U.S. Economic Development Administration. Regional Councils like SWMPC can excel at collaboration, helping foster relationships that otherwise wouldn’t exist under one umbrella to build the capacities necessary to anticipate challenges and solve difficult problems like the closure of a nuclear power plant.

Developing Actionable Strategy
Traditionally, regional councils, as planners for their respective jurisdictions, are experts about the region and positioned to plan transit, economic development, and other industrial projects over 10 to 20 years, sometimes even longer. Together in collaboration with the University of Michigan Economic Growth Institute, Market Van Buren/Kinexus, and the Southwest Michigan Planning Commission conducted a comprehensive economic assessment to understand the impacts of the plant closure. They engaged the public through a dedicated Facebook group and invited community members to complete a survey to help shape the recovery strategy aimed at mitigating these impacts. These insights were being brought together to develop a recovery strategy to mitigate impacts of the plant’s impending closure.

The Rest of the Story and Future Projections for SWMPC
The plant, after 50 years of operation, began its closure process in 2022. Later, it made history as one of the first nuclear energy facilities in the U.S. to receive approval from the Nuclear Regulatory Commission (NRC) for decommissioning followed by recommissioning. This landmark decision eliminated the need for the Palisades Economic Recovery Initiative, as the plant would once again become operational. Operations are scheduled to resume in March 2026. The recommissioning of a nuclear power plant marks a significant policy shift, driven by federal incentives for nuclear energy, surging energy demands from AI, data centers, and electrification.