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Cedar Rapids, Iowa 52401
Restarting Duane Arnold: Linn County weighs economic ripple of nuclear comeback
Union, businesses see gains if Duane Arnold returns
Sep. 21, 2025 5:30 am
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PALO — At Whiskey River Grill, a bar and restaurant that sits a couple miles from the decommissioned Duane Arnold Energy Center, co-owner Lacey Christiansen remembers when the lunch crowd was steady, fueled by technicians and operators coming off shifts at Iowa’s only nuclear plant.
“When we first opened six years ago, they were still up and running, and there was just a lot more lunch business,” Christiansen said. “We definitely saw a decline after it all closed down.”
Now, with plant owner NextEra Energy weighing a plan to restart operations at Duane Arnold by the end of the decade, Christiansen sees reason for optimism.
“I haven’t heard anything negative about it,” she said. “We hear, you know, 1,000 people can be coming to work. … And that's exciting for us, right? You know, because these people are going to be coming right through here to go to work every day and going home every day. So that's a big deal for a small business like us.”
Her reaction is echoed across rural Linn County, where residents and business leaders are bracing for an economic revival spurred by the prospect hundreds of high-wage jobs, a multiyear construction surge, and new housing demand.
Palo and Center Point businesses, union leaders and city officials say the economic ripple would be significant.
Impact of decommissioning
Duane Arnold, a single-unit boiling water reactor, entered service in 1975. It was decommissioned in 2020, after more than four decades of producing around 600 megawatts of power and supplying about 8 percent of Iowa’s electricity.
The decision was driven by a combination of economic factors — with Alliant Energy, the plant’s primary electricity customer choosing to exit its power purchase agreement years early — and was hastened by the August 2020 derecho, which caused “extensive” damage to the facility’s cooling towers.
Officials for both Alliant and NextEra at the time said the declining market value of energy from sources like wind, which had dropped below the cost of nuclear generation, prompted the decision to close Duane Arnold.
Alliant Energy customers were projected to save nearly $300 million in energy costs over 21 years — or about $42 a year for residential customers, starting in 2021 — due to the plant’s closure, The Gazette reported at the time.
Since then, NextEra says recommissioning is needed to meet surging electricity demand driven by data centers and other energy-intensive growth.
For nearby communities like Palo and Center Point, the loss was felt both in jobs and in identity.
“I think the biggest impact was more of, ‘Oh no, the nuclear plant shut down. That sucks,” said Palo Mayor Eric Van Kerckhove. “That's kind of been part of Palo’s identity” for a long time.“
Though Palo has grown with new homes and businesses, the mayor said reduced foot traffic and spending were noticeable.
In Center Point, Mayor Traer Morgan saw the closure more directly. His neighbor lost his job at the plant.
“There are people who had to find work elsewhere since the decommissioning,” Morgan said.
City Administrator Joe Taylor described the loss as a “gradual impact” typical of large employer closures.
“You have a negative impact that’s gradually felt, as opposed to just an immediate shock,” he said.
Businesses wait for return
Restaurants and small businesses reported declines in daytime customers once the plant went offline.
“The lunch rush just hasn’t been the same,” Christiansen said of Whiskey River.
Anticipation for new activity has been building since NextEra confirmed it is exploring recommissioning. The project could bring a thousand or more of temporary construction workers and eventually several hundred permanent employees back to the site.
In Center Point, Taylor said the prospect has already sparked some interest from developers.
“We're examining the aspect now of conducting a hotel study,” he said. “They had attempted to do one about 10 years ago, and the numbers just really didn't jive — didn't validate any forward movement past the initial phase,” but the potential bringing a thousand or more temporary construction workers to the area over three to four years changes the tone and urgency.
“They are going to need places to stay, places to eat, places to do (things),” Taylor said. “And so, you know, where our population and our development is already headed that way, something like this obviously spurs some interest from (developers) who are like, ‘Oh, well, you know, there's a possibility to capitalize on something and go from there,’ and with our position on (Interstate) 380 it makes sense, right?”
Economic stakes
A 2014 economic study by the Nuclear Energy Institute estimated Duane Arnold’s operation pumped $246 million annually into Benton and Linn counties, supported 978 jobs locally, and contributed $25.6 million in tax revenue across federal, state and local levels.
At its peak, the plant directly employed nearly 600 workers, with average wages in Linn County topping $82,000 — far above the county average of $45,690 at the time.
Ron Corbett, vice president of economic development for the Cedar Rapids Metro Economic Alliance, said restarting could restore that kind of economic engine.
He said NextEra is working on an updated economic impact study.
“We know the impact will be substantial,” Corbett said. “ … We are thrilled there is a chance to bring these jobs back with the reopening of the nuclear power plant.”
He said the average wage at Duane Arnold before closing was over $100,000.
Housing demand
New demand for housing is a near certainty, according to local officials. Palo has seen a wave of new single-family homes, and developers are preparing for more.
“My hope is that we'll see a lot of homes sell pretty quickly and be in the situation where we need to build more faster,” Van Kerckhove said.
The Palo mayor also expressed excitement about the broader opportunities for new industry in and around Palo. While he said he could not share any specific companies that Palo hopes to attract with the potential restart of the Duane Arnold nuclear plant, Van Kerckhove said a recommissioned plant could attract companies that require significant clean energy, such as data centers and manufacturers.
Center Point has annexed land across Interstate 380 in anticipation of growth.
“Even in my short tenure here — I got here in September of 2021 — land that was in essence considered pretty much off limits … is now for sale,” Taylor said, noting developers are already positioning for new demand.
He said the “sweet spot” for growth remains homes priced at $350,000 or below, which he now considers the affordable range for new construction. If the plant returns, he expects a wave of new neighborhoods to follow.
“At that price point, you could have a pretty good boom on your hands,” Taylor said.
A recently built 42-unit apartment complex is already full, with some tenants working on new data centers or on early Duane Arnold-related projects.
“That’s a direct impact,” Taylor said.
Union’s perspective
For labor unions, Duane Arnold’s potential restart represents more than jobs — it’s about stability and growth.
“It was a huge deal for us,” said Jon Van Zante, business manager for the International Brotherhood of Electrical Workers Local 204. At its height, the plant employed more than 350 of his members.
Even if staffing levels today are smaller — perhaps 150 to 200 permanent union jobs — Van Zante said the ripple effects across trades would be significant.
“These are highly skilled jobs that pay extremely well,” Van Zante said, estimating wages could exceed $120,000 annually. “That’s long-term employment, not just a project.”
Beyond the permanent workforce, the project would draw hundreds of contractors and tradespeople during construction and scheduled maintenance. Electricians, plumbers, carpenters and other skilled laborers would see steady demand, echoing the plant’s past role as a major source of work for union members across Iowa, he said.
The facility previously paid nearly $3 million annually in property taxes, supporting schools and county infrastructure. Van Zante said reopening would restore that revenue stream, strengthening local services and community projects.
Local businesses would also benefit from increased foot traffic and disposable income. Restaurants, health clubs and service providers once thrived on plant workers and could again, Van Zante and city officials said. Housing demand is expected to rise as workers and families move closer to the site, fueling new construction and boosting property values.
Former employees have expressed interest in returning, Van Zante added. Some transferred to Alliant Energy’s Prairie Creek Generating Station in Cedar Rapids or other nuclear plants nationwide, he said.
“Some of them (who have left and went to work at other nuclear facilities elsewhere in the United States), even still have houses here,” Van Zante said. “And so they would love the option to be able to come back. So I think it creates a lot of good potential.”
And with the state’s growing energy needs driven by data centers and other industries, he said Duane Arnold’s return would ripple well beyond Linn County, supporting suppliers and utilities across the region.
The union also sees a chance to train the next generation.
“I tell my 18-year-old son, there’s never been a better time to go into the trades,” Van Zante said. “I’ve never seen growth like this in 28 years.”
Ripple effects
Beyond jobs and wages, local leaders expect a cascading economic effect.
Restaurants, gas stations, auto shops and retailers all stand to benefit from increased daily traffic, Van Kerckhove said
“You’ll see more people coming in for lunch, getting their oil changed, buying groceries,” he said.
For Center Point, the benefit could extend to schools.
“Good-paying jobs mean stronger school districts,” Taylor said. “... It’s the rising tide that lifts all boats.”
The 2014 study quantified that ripple: for every $1 of output from Duane Arnold, the local economy generated $1.23, while the state economy produced $1.27.
NextEra’s plans
While no final decision has been made, Duane Arnold Energy Center spokesperson Bill Orlove said the company is conducting engineering studies, recruiting licensed nuclear operators and working with potential customers.
If the project moves forward, Duane Arnold would add 600 megawatts of power generation, contributing to the Trump administration’s target of 5,000 megawatts of new nuclear energy by 2030. NextEra said a restart would bring “hundreds of permanent, high-quality, well-paying jobs” back to Linn County and generate millions in tax revenue for schools and local governments.
The company stressed safety remains the top priority, noting Duane Arnold had operated safely for decades before its 2020 closure.
“Restarting a nuclear power plant is a serious undertaking,” Orlove said in a statement. “… It’s important to note that Duane Arnold Energy Center operated safely for decades, providing reliable, emissions-free energy to Eastern Iowa homes and businesses. The health and safety of the public is always our top priority. Highly trained experts run America’s nuclear plants. With the Nuclear Regulatory Commission’s oversight and layers of safety precautions, a nuclear plant is one of the safest industrial environments in the United States.
“As we continue to go through this process, we are committed to remaining engaged with local and state stakeholders.”
From Palo’s vantage, Van Kerckhove said, “It feels more like when, not if.” He expects construction could take about three years once approved, bringing a surge of temporary workers.
NextEra has historically invested in community amenities, from donating a splash pad in Palo to supporting local fire departments. Leaders expect that outreach to continue if the restart proceeds.
Safety and community response
Unlike contentious solar projects that sparked opposition in Linn County, leaders say the nuclear restart has drawn little pushback.
“We haven’t heard any complaints,” Taylor said. “It’s been excitement.”
Van Kerckhove agreed: “I’ve heard nothing but positive remarks. People see it as putting Palo back on the map.”
Emergency planning, once tied closely to the plant, also will return. Palo’s fire department still uses equipment donated when the plant closed. Linn County’s outdoor sirens, originally installed by Duane Arnold, were donated to Linn County and its communities when the plant closed. Officials expect those partnerships to be reactivated.
“The community is very familiar with it,” Morgan said. “It’s not new. It’s been here for 40 years.”
A sense of identity
Palo City Council member Jen Welton said the town has long identified with the plant.
“I think a lot of people would consider Palo as the home of the Duane Arnold power plant, and they take great pride in that,” Welton said. “… There was a sense of loss when it was decommissioned. People really felt strongly about the power plant and felt that it brought a lot of great things to the community over the years for us.”
Welton said residents view the possibility of bringing back hundreds of high-paying jobs as “absolutely great for economic development,” benefiting not only Palo but surrounding communities such as Cedar Rapids, Hiawatha and Marion. The plant’s return, she added, could also spark interest from industries looking for clean power and encourage further housing and business development.
“I haven’t met one person that hasn’t really found this to be a positive,” she said. “It was really hard when the plant closed. When it becomes part of who you are as a community, to lose something of that size and magnitude is tough.”
At Whiskey River, Christiansen sees that identity translating into customers again.
“It’s exciting,” she said. “These are good jobs, good people, and they’re going to be coming right through here every day.”
For union members, it’s a chance to reestablish a pillar of the local labor economy.
“I don’t see anything but positives,” Van Zante said. “It makes our union stronger, and it makes the community stronger.”
And for Center Point’s administrator, the restart could mark a turning point.
“We’re very happy,” Taylor said. “This isn’t new. It’s familiar, it’s proven, and it’s good-paying jobs. We welcome it.”
Gazette reporter Grace Nieland contributed to this report.
Comments: (319) 398-8499; tom.barton@thegazette.com
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