IndianaSB 424First Regular Session 124th General Assembly (2025)Senate

Small modular nuclear reactor development costs.

Sponsored By: Eric Koch (Republican)

Signed by Governor

Summary

Amends as follows the Indiana Code section concerning certificates of public convenience and necessity (certificates) for small modular nuclear reactors: (1) Authorizes a public utility to petition the Indiana utility regulatory commission (IURC) for approval to incur, before obtaining a certificate, project development costs for the development of one or more small modular nuclear reactors. (2) Sets forth certain factors that the IURC must consider in reviewing a public utility's petition to incur project development costs. (3) Requires the IURC to issue a final order approving or denying the petition not later than 180 days after receiving the petition and the public utility's complete case in chief, subject to the IURC's right to extend the time for review if the public utility does not object to the extension. (4) Provides that if a public utility receives approval to incur project development costs, the public utility may petition the IURC at any time before or during the development and execution of a small modular nuclear reactor project for the approval of a rate schedule that periodically adjusts the public utility's rates and charges to provide for the timely recovery of project development costs. (5) Provides that after reviewing a public utility's proposed rate schedule, the IURC shall approve the recovery of project development costs by the public utility if the IURC finds that project development costs that have been or will be incurred are: (A) reasonable in amount; (B) necessary to support the construction, purchase, or lease of a small modular nuclear reactor; and (C) consistent with the commission's finding as to the best estimate of project development costs. (6) Provides that a public utility that is authorized to recover project development costs shall: (A) recover 80% of the approved project development costs under the approved rate schedule; and (B) defer the remaining 20% of approved project development costs for recovery as part of public utility's next general rate case before the IURC. (7) Provides that the recovery of a public utility's project development costs through an approved periodic rate adjustment mechanism must occur over a period that is equal to: (A) the period over which the approved project development costs are incurred; or (B) three years; whichever is less. (8) Provides that project development costs that: (A) are incurred by a public utility; and (B) exceed the best estimate of project development costs included in the IURC's order authorizing the public utility to incur project development costs; may not be included in the public utility's rates and charges unless found by the IURC to be reasonable, necessary, and prudent in supporting the construction, purchase, or lease of the small modular nuclear reactor for which they were incurred. (9) Provides that: (A) project development costs incurred for a project that is canceled or not completed may be recovered by the public utility if found by the IURC to be reasonable, necessary, and prudently incurred; but (B) such costs shall be recovered without a return unless the IURC makes certain additional findings. (10) Provides that if a public utility does not seek: (A) approval of; or (B) cost recovery for; project development costs under the bill's provisions, the IURC may approve the deferral and amortization of project development costs in accordance with the statutory procedures set forth for construction costs.

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Bill Overview

Analyzed Economic Effects

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

Indiana utilities can bill reactor development costs

Beginning July 1, 2025, Indiana utilities can seek approval to charge customers for small modular nuclear reactor development costs. They can apply before receiving a construction certificate. Qualifying reactors include hydrogen-producing designs, must require federal nuclear licensing, and cannot exceed 470 megawatts of electric capacity. Development costs include design, licensing, environmental reviews, equipment, and approved financing costs. The Indiana Utility Regulatory Commission must review costs and generally decide complete petitions within 180 days. It can extend that deadline through a docket entry if the utility does not object. Utilities generally recover 80% of approved costs through rate adjustments, with 20% deferred to their next general rate case. Adjustments are limited to once every 12 months. Recovery through adjustments lasts no longer than the cost-incurrence period or three years, whichever is shorter. Costs must be reasonable and necessary; costs above the approved estimate require an added review of whether spending was prudent. Canceled or unfinished projects require added findings on prudent spending, funding efforts or other offsets, and the allowed return. Utilities must describe efforts to obtain U.S. Department of Energy funding; federal funding and other offsets reduce customer-funded costs. Utilities can instead seek to defer costs and spread recovery through a later general rate case. Approved recovery can raise customer bills; the law sets no household dollar amount.

Sponsors & Cosponsors

Sponsor

  • Eric Koch

    Republican • Senate

Cosponsors

  • Andy Zay

    Affiliation unavailable

  • Blake Doriot

    Republican • Senate

  • Brian Buchanan

    Republican • Senate

  • Daryl Schmitt

    Republican • Senate

  • Edmond Soliday

    Republican • House

  • Gary Byrne

    Republican • Senate

  • James Buck

    Republican • Senate

  • Jean Leising

    Republican • Senate

  • Jeff Raatz

    Republican • Senate

  • Matt Lehman

    Republican • House

  • Randy Maxwell

    Republican • Senate

  • Ryan Lauer

    Republican • House

  • Stacey Donato

    Republican • Senate

  • Steve Bartels

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 125 • No: 59

Senate vote • 3/25/2025

Senate concurred with House amendments

Yes: 32 • No: 15

House vote • 3/20/2025

Third reading: passed

Yes: 59 • No: 30

Senate vote • 2/3/2025

Third reading: passed

Yes: 34 • No: 14

Actions Timeline

  1. Public Law 48

    4/10/2025Senate
  2. Signed by the Governor

    4/10/2025Senate
  3. Signed by the President of the Senate

    4/3/2025Senate
  4. Signed by the Speaker

    3/27/2025House
  5. Signed by the President Pro Tempore

    3/26/2025Senate
  6. Senate concurred with House amendments; Roll Call 297: yeas 32, nays 15

    3/25/2025Senate
  7. Motion to concur filed

    3/24/2025Senate
  8. Returned to the Senate with amendments

    3/21/2025House
  9. Third reading: passed; Roll Call 291: yeas 59, nays 30

    3/20/2025House
  10. Representatives Lehman and Lauer added as cosponsors

    3/20/2025House
  11. Representative Bartels added as cosponsor

    3/17/2025House
  12. Second reading: ordered engrossed

    3/17/2025House
  13. Committee report: amend do pass, adopted

    3/13/2025House
  14. First reading: referred to Committee on Utilities, Energy and Telecommunications

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

    2/4/2025Senate
  16. Third reading: passed; Roll Call 61: yeas 34, nays 14

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

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

    2/3/2025Senate
  19. Senator Donato added as coauthor

    2/3/2025Senate
  20. Senator Maxwell added as coauthor

    2/3/2025Senate
  21. Senator Schmitt added as coauthor

    1/30/2025Senate
  22. Second reading: ordered engrossed

    1/30/2025Senate
  23. Senator Byrne added as coauthor

    1/29/2025Senate
  24. Senator Zay added as coauthor

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

    1/27/2025Senate

Bill Text

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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