Small modular nuclear reactors, a new technology currently found only in Russia and China, is being encouraged with SB 424, a measure that allows utility bills to increase for SMR development costs. British engine maker Rolls-Royce is one company planning to build an SMR in the state. Photo from Rolls Royce.

News Release

INDIANAPOLIS — An energy bill encouraging the construction of small modular nuclear reactors, or SMRs are heading towards the desk of Gov. Mike Braun, even as consumer advocacy groups denounce similar bills going through Indiana’s legislature.

The Indiana General Assembly finalized amendments to Senate Bill 424 last week, which lets utility companies increase fees to recover project costs on small nuclear reactors.

SB 424 and HB 1007, almost identical bills written by Sen. Eric Koch, R-Bedford, and R. Ed Soliday, R-Valparaiso, say it is necessary for Indiana to lower the financial risks of major utility companies to ensure the future of its energy.

Currently before the Senate’s Tax and Fiscal Policy Committee, Soliday’s HB 1007 will also accelerate the approval process for utilities that want to create energy projects for large-capacity clients such as data centers. In addition, it would saddle those big customers with 80% of those projects’ costs.

However, groups representing various taxpayers, including the Indiana Conservation Voters, Indiana Industrial Consumers and Civil Action Coalition claim that the bills are unfair to individual taxpayers.

The Indiana Public Service Regulatory Commission must approve any new SMR project, but the group says the process lacks proper oversight. Another aspect of the bill many take issue with is that utility companies can recover the costs of environmental work, design and planning years before construction begins.

The committee hearing held Thursday, March 27 focused on worries that the IURC would only have 90 days to rule on a utility company’s petition.

The bill was previously amended by Koch and Soliday to include a statement that utilities can only recover costs if the cost of the SMR development project is needed and practical.

Soliday believes that because companies without debts can acquire more favorable loans — which would not be passed to taxpayers — allowing utilities to recover costs has long-term benefits for taxpayers.

Indiana currently has no nuclear plants. However, Indiana Michigan Power recently applied for a federal grant to start an SMR feasibility study at its existing coal-fired power plant in Rockport.