IndianaSB 423First Regular Session 124th General Assembly (2025)Senate

Small modular nuclear reactor pilot program.

Sponsored By: Eric Koch (Republican)

Signed by Governor

Summary

Establishes the small modular nuclear reactor partnership pilot program (program). Provides that certain electric utilities (eligible utilities) may partner with one or more other specified types of partners (eligible partners) to develop one or more small modular nuclear reactors (SMRs) at an eligible project site, subject to the approval of the Indiana utility regulatory commission (IURC). For purposes of these provisions, provides that an eligible project site is: (1) a location in Indiana; or (2) the site of a nuclear energy facility that supplies electricity to Indiana retail customers on July 1, 2011. Provides that an eligible utility that seeks to develop a project with one or more eligible partners may petition the IURC for approval to participate in the program. Sets forth the information that an eligible utility's petition must include. Sets forth the factors that the IURC must consider in reviewing a petition. Requires the IURC to issue a final order approving or denying a petition not later than 180 days after receiving the petition and the eligible utility's complete case in chief, subject to the IURC's right to extend the time for review if the eligible utility does not object to the extension. Provides that the IURC shall approve a petition if the IURC makes specified findings. Provides that an eligible utility may petition the IURC for approval to incur, before obtaining a certificate of convenience and necessity (CPCN) to construct an SMR under the program, eligible project development costs. Defines "eligible project development costs" as project development costs that: (1) have been, or are reasonably estimated to be, incurred by an eligible utility in the development of one or more SMRs under the program; and (2) have not been and will not be recovered by the eligible utility through contributions of any money, services, or property provided at no cost to the eligible utility by any eligible partner, governmental agency, or other third party, regardless of whether the third party has entered into an eligible partnership with the eligible utility. Sets forth certain factors that the IURC must consider in reviewing an eligible utility's petition to incur eligible project development costs. Provides that if the IURC denies an eligible utility's petition to participate in the program, and the eligible utility seeks to pursue the development of an SMR outside the program, the eligible utility may: (1) proceed to develop an SMR under the procedures set forth under the existing Indiana Code section governing CPCNs for SMRs; and (2) request that the eligible utility's petition to incur eligible project development costs under bill's provisions be considered a petition to incur project development costs under the Indiana Code section governing CPCNs for SMRs .Provides that if an eligible utility receives approval to incur eligible project development costs, the eligible utility may petition the IURC for the approval of a rate schedule that periodically adjusts the eligible utility's rates and charges to provide for the timely recovery of eligible project development costs. Provides that an eligible utility that receives approval to recover eligible project development costs shall: (1) recover 80% of the approved eligible project development costs under the approved rate schedule; and (2) defer the remaining 20% of approved eligible project development costs for recovery as part of the eligible utility's next general rate case before the IURC. Provides that eligible project development costs that: (1) are incurred by an eligible utility; and (2) exceed the best estimate of eligible project development costs included in the IURC's order authorizing the eligible utility to incur eligible project development costs; may not be included in the eligible utility's rates and charges unless found by the IURC to be reasonable, necessary, and prudent in supporting the development of the project for which they were incurred. Provides that: (1) eligible project development costs incurred for a project that is canceled or not completed may be recovered by the eligible utility if found by the IURC to be reasonable, necessary, and prudently incurred; but (2) such costs shall be recovered without a return unless the IURC makes certain additional findings.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Customers can pay reactor development costs

Beginning July 1, 2025, participating utilities can seek approval to charge customers for reactor development before receiving construction approval. Each utility must separately request development-cost approval; eligible costs include studies, design, licensing, permits, equipment, and approved financing costs. Costs covered by partners, government agencies, or other third parties cannot also be charged to customers. Utilities can recover 80% of approved costs through periodic rate changes and defer 20% to their next general rate case. Periodic recovery lasts the shorter of three years or the time the costs were incurred; adjustment requests are limited to once every 12 months. The commission must find costs reasonable, necessary, and consistent with its approved estimate; overruns also need a finding of prudent spending. Reasonable, necessary, prudently incurred costs for canceled or unfinished projects can also be recovered, generally without an added return. A return requires further findings about cancellation, offsets, and avoiding harm to the utility and customers; utilities can instead seek approval to defer costs and recover them over time under existing law.

Utilities gain a time-limited reactor pilot

Beginning July 1, 2025, eligible utilities can form partnerships to build, buy, or lease small modular nuclear reactors for Indiana customers. Each partnership needs a utility and another eligible partner, such as a customer, investor, manufacturer, military site, or state college. Sites must be in Indiana or at nuclear facilities that supplied Indiana retail customers on July 1, 2011. Indiana’s utility commission reviews partner contributions, financing partners’ credit, reactor plans, funding efforts, and schedules before approving participation; later construction approvals remain separate. Final decisions on participation and development-cost petitions are due within 180 days of complete filings, with extensions allowed when the utility does not object; the pilot law expires July 1, 2035.

Sponsors & Cosponsors

Sponsor

  • Eric Koch

    Republican • Senate

Cosponsors

  • Andy Zay

    Affiliation unavailable

  • Blake Doriot

    Republican • Senate

  • Daryl Schmitt

    Republican • Senate

  • Edmond Soliday

    Republican • House

  • Gary Byrne

    Republican • Senate

  • James Buck

    Republican • Senate

  • Jeff Raatz

    Republican • Senate

  • Justin Busch

    Republican • Senate

  • Spencer Deery

    Republican • Senate

  • Stacey Donato

    Republican • Senate

  • Susan Glick

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 142 • No: 48

Senate vote • 4/17/2025

Senate concurred with House amendments

Yes: 34 • No: 12

House vote • 4/15/2025

Third reading: passed

Yes: 67 • No: 29

Senate vote • 2/3/2025

Third reading: passed

Yes: 41 • No: 7

Actions Timeline

  1. Signed by the Governor

    5/1/2025Senate
  2. Public Law 137

    5/1/2025Senate
  3. Signed by the President of the Senate

    4/23/2025Senate
  4. Signed by the Speaker

    4/22/2025House
  5. Signed by the President Pro Tempore

    4/22/2025Senate
  6. Senate concurred with House amendments; Roll Call 471: yeas 34, nays 12

    4/17/2025Senate
  7. Returned to the Senate with amendments

    4/16/2025House
  8. Motion to concur filed

    4/16/2025Senate
  9. Third reading: passed; Roll Call 449: yeas 67, nays 29

    4/15/2025House
  10. Second reading: ordered engrossed

    4/10/2025House
  11. Committee report: amend do pass, adopted

    4/8/2025House
  12. First reading: referred to Committee on Utilities, Energy and Telecommunications

    3/3/2025House
  13. Referred to the House

    2/4/2025Senate
  14. Senator Byrne added as coauthor

    2/3/2025Senate
  15. House sponsor: Representative Soliday

    2/3/2025Senate
  16. Senators Buck and Raatz added as coauthors

    2/3/2025Senate
  17. Senator Busch added as coauthor

    2/3/2025Senate
  18. Third reading: passed; Roll Call 60: yeas 41, nays 7

    2/3/2025Senate
  19. Second reading: ordered engrossed

    1/30/2025Senate
  20. Amendment #1 (Hunley) failed; voice vote

    1/30/2025Senate
  21. Senator Schmitt added as coauthor

    1/29/2025Senate
  22. Senator Doriot added as coauthor

    1/28/2025Senate
  23. Committee report: amend do pass, adopted

    1/27/2025Senate
  24. Senator Deery added as third author

    1/27/2025Senate
  25. Senator Donato added as second author

    1/27/2025Senate

Bill Text

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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