First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 423
AN ACT to amend the Indiana Code concerning utilities.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 8-1-44 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]:
Chapter 44. Pilot Program for Small Modular Nuclear Reactor
Partnerships
Sec. 1. As used in this chapter, "certificate of public convenience
and necessity", or "CPCN", means a certificate required under
IC 8-1-8.5-2 for the construction, purchase, or lease of any facility
for the generation of electricity to be directly or indirectly used for
the furnishing of public utility service.
Sec. 2. As used in this chapter, "commission" refers to the
Indiana utility regulatory commission created by IC 8-1-1-2.
Sec. 3. As used in this chapter, "eligible partner" means any of
the following:
(1) An eligible utility.
(2) A person that is a current or prospective customer of an
eligible utility and that commits to:
(A) use electricity generated by an SMR to be constructed
under the program; or
(B) host on the person's premises an SMR to be
SEA 423 — Concur 2
constructed under the program.
(3) A capital partner or third party investor.
(4) A military installation (as defined in IC 1-1-16-5).
(5) A reuse authority established under IC 36-7-30-3 for a
military base reuse area established under IC 36-7-30-10.
(6) A manufacturer of SMRs.
(7) A state educational institution (as defined in
IC 21-7-13-32).
Sec. 4. As used in this chapter, "eligible partnership" means a
group or entity, however organized, that:
(1) consists of:
(A) at least one (1) eligible utility; and
(B) one (1) or more other eligible partners described in
section 3(1) through 3(7) of this chapter; and
(2) is formed for the purpose of developing one (1) or more
SMRs at an eligible project site under the program.
Sec. 5. As used in this chapter, "eligible project development
costs" means project development costs that:
(1) have been incurred, or are reasonably estimated to be
incurred, by an eligible utility in the development of one (1) 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 that have been or will be provided at no cost to the
eligible utility by any:
(A) eligible partner with whom the eligible utility has
entered into an eligible partnership under this chapter;
(B) governmental agency; or
(C) other third party, regardless of whether the third party
has entered into an eligible partnership with the eligible
utility under this chapter.
Sec. 6. As used in this chapter, "eligible project site" means:
(1) a location in Indiana; or
(2) the site of a nuclear energy production or generating
facility that supplies electricity to Indiana retail customers on
July 1, 2011.
Sec. 7. As used in this chapter, "eligible utility" means a utility
listed in 170 IAC 4-7-2(a) and any successor in interest to that
utility.
Sec. 8. As used in this chapter, "program" refers to the small
modular nuclear reactor partnership pilot program established by
section 12 of this chapter.
SEA 423 — Concur 3
Sec. 9. As used in this chapter, "project" refers to a project for
the construction, purchase, or lease of one (1) or more SMRs at an
eligible project site for the generation of electricity to be directly
or indirectly used to furnish public utility service to Indiana
customers.
Sec. 10. As used in this chapter, "project development costs"
means costs that have been incurred, or are reasonably estimated
to be incurred, in the development of one (1) or more SMRs under
the program, including:
(1) evaluation, design, and engineering costs;
(2) costs for federal approvals and licensing;
(3) costs for environmental analyses and permitting;
(4) early site permit (as defined in 10 CFR 52.1) costs;
(5) equipment procurement costs; and
(6) authorized carrying costs.
Sec. 11. As used in this chapter, "small modular nuclear
reactor", or "SMR", has the meaning set forth in
IC 8-1-8.5-12.1(a).
Sec. 12. (a) The small modular nuclear reactor partnership pilot
program is established to:
(1) facilitate the development of SMRs for the purpose of
providing a reliable source of electricity to meet the growing
demand for electric utility service necessary to:
(A) ensure the welfare and enhance the quality of life of
Indiana residents and businesses; and
(B) attract and retain businesses and provide economic
development opportunities for Indiana communities; and
(2) reduce the costs that would otherwise be borne by eligible
utilities and their ratepayers by enabling eligible utilities to
partner with one (1) or more eligible partners to share the
costs and risks associated with developing one (1) or more
SMRs to be directly or indirectly used to furnish public utility
service to Indiana customers.
(b) The commission may consult with:
(1) the United States Nuclear Regulatory Commission;
(2) the department of environmental management; or
(3) any other relevant state or federal regulatory agency with
jurisdiction over the construction or operation of nuclear
generating facilities;
to the extent necessary to ensure the compliance of any eligible
utility or eligible partnership with all applicable federal and state
laws and regulations, or as necessary to review or issue orders on
SEA 423 — Concur 4
petitions under sections 13 and 14 of this chapter.
Sec. 13. (a) An eligible utility that seeks to develop a project with
one (1) or more eligible partners may petition the commission, in
the form and manner prescribed by the commission, for approval
to participate in the program. The eligible utility must file with the
petition the eligible utility's case in chief, which must contain the
information and supporting documentation regarding the factors
the commission must consider under subsection (c). A petition must
include, at the minimum, the following information:
(1) A statement identifying each eligible partner participating
in the eligible partnership, including the contact information
for a representative of the eligible partner to whom the
commission may direct all communications concerning the
proposed project.
(2) For each eligible partner identified under subdivision (1),
a description of the funds, property, or services that the
eligible partner plans to contribute to the project, including
an estimate of the amount or value of the funds, property, or
services to be provided.
(3) For each eligible partner identified under subdivision (2)
that plans to provide financing for or otherwise invest
financially in the project, any information the commission
may require in considering the creditworthiness of the eligible
partner, including:
(A) the eligible partner's investment grade rating;
(B) guarantees of a parent company of the eligible partner
that has an investment grade rating; or
(C) a bank reference letter or bonding commitment on
behalf of the eligible partner;
as may be applicable.
(4) For any eligible partner identified under subdivision (1)
and described in section 3(2) of this chapter:
(A) an estimate of the electricity that:
(i) is to be generated by an SMR developed under the
project; and
(ii) the eligible partner anticipates using; or
(B) a description of the location and site characteristics of
the eligible partner's premises on which an SMR developed
under the project is to be located;
as applicable.
(5) The address or geographic coordinates for, or a legal or
other description that sufficiently identifies the location of, the
SEA 423 — Concur 5
proposed eligible project site.
(6) For each SMR to be developed as part of the project,
information as to the following, to the extent known at the
time of the petition:
(A) The capacity.
(B) The manufacturer.
(C) Any technical configurations or specifications that may
be required by the commission.
(D) The proposed location of the SMR on the proposed
project site.
(7) An anticipated timeline for the following:
(A) Performing project development activities.
(B) Incurring project development costs, including any
eligible project development costs.
(C) The anticipated date by which the eligible partnership
will make a decision as to whether to seek a CPCN under
IC 8-1-8.5.
(8) Any efforts by the eligible utility or the eligible
partnership to pursue funding opportunities from the United
States Department of Energy to offset project development
costs or construction costs in connection with the proposed
project.
(9) Any other information that the commission may require
to enable the commission to conduct a review under
subsection (c) or make the findings set forth in subsection (d).
(b) If more than one (1) eligible utility is part of an eligible
partnership that seeks to develop a project for approval to
participate in the program, the eligible utilities shall jointly file the
petition required under this section. However, each eligible utility
that is part of the eligible partnership and that seeks approval to
incur eligible project development costs under section 14 of this
chapter must separately file a petition with the commission under
section 14 of this chapter. In any case in which more than one (1)
eligible utility files a joint petition under this section, a reference
in this section to one (1) eligible utility is a reference to all eligible
utilities filing the joint petition.
(c) In reviewing a petition and supporting case in chief under
this section, the commission shall consider the following:
(1) Whether the proposed project is consistent with:
(A) the purposes set forth in section 12(a) of this chapter;
and
(B) any rules adopted by the commission under this
SEA 423 — Concur 6
chapter.
(2) The factors set forth in IC 8-1-8.5-12.1(d)(1)(A) and
IC 8-1-8.5-12.1(d)(1)(B) with respect to any SMR that is to be
developed as part of the project, giving due regard to
IC 8-1-8.5-12.1(d)(2) that applies in the context of a petition
for a CPCN.
(3) Whether the eligible utility has provided adequate
assurances that if the eligible utility seeks a CPCN in
connection with the project, the eligible utility will comply
with all requirements set forth in IC 8-1-8.5 and in rules
adopted under IC 8-1-8.5-12.1.
(4) Whether the timeline set forth in the eligible utility's
petition under subsection (a)(7) is reasonable and
demonstrates a likelihood that the eligible utility will seek a
CPCN under IC 8-1-8.5.
(d) The commission shall issue a final order approving or
denying a petition under this section not later than one hundred
eighty (180) days after receiving the petition and complete case in
chief. However, if the commission makes a docket entry extending
the procedural schedule and the eligible utility does not object to
the entered extension, the commission may extend the one hundred
eighty (180) day time frame for issuing a final order under this
subsection for the amount of time set forth in the docket entry. The
commission shall approve a petition if the commission makes the
following findings:
(1) That the proposed project is consistent with:
(A) the purposes set forth in section 12(a) of this chapter;
and
(B) any rules adopted by the commission under this
chapter.
(2) That if the eligible utility seeks a CPCN in connection with
the project, the eligible utility will comply with all
requirements set forth in IC 8-1-8.5 and in rules adopted
under IC 8-1-8.5-12.1.
(3) That the timeline set forth in the eligible utility's petition
under subsection (a)(7) is reasonable and demonstrates a
likelihood that the eligible utility will seek a CPCN under
IC 8-1-8.5.
Sec. 14. (a) An eligible utility may:
(1) simultaneously with filing a petition under section 13 of
this chapter for approval to participate in the program; or
(2) at any time after filing a petition under section 13 of this
SEA 423 — Concur 7
chapter for approval to participate in the program;
file with the commission a petition for approval to incur, before
obtaining a CPCN for the project to be developed under the
program, eligible project development costs. The eligible utility
must file with the petition the eligible utility's case in chief, which
must contain the information and supporting documentation
regarding the factors the commission must consider under
subsection (b).
(b) In reviewing a petition and the supporting case in chief
under this section, the commission shall consider the following:
(1) The timeline set forth by the eligible utility under section
13(a)(7) of this chapter in the eligible utility's petition for
approval to participate in the program.
(2) The amount of eligible project development costs the
eligible utility anticipates incurring.
(c) The commission shall review a petition filed under this
section and issue a final order approving or denying the petition
not later than one hundred eighty (180) days after receiving the
petition and complete case in chief. However, if the commission
makes a docket entry extending the procedural schedule and the
eligible utility does not object to the entered extension, the
commission may extend the one hundred eighty (180) day time
frame for issuing a final order under this subsection for the
amount of time set forth in the docket entry. In an order approving
a petition under this section, the commission must make a finding
as to the best estimate and reasonableness of eligible project
development costs based on the evidence of record. If the
commission denies the eligible utility's petition under section 13 of
this chapter for approval 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
in IC 8-1-8.5-12.1; and
(2) request that the eligible utility's petition to incur eligible
project development costs under this section be considered a
petition to incur project development costs under
IC 8-1-8.5-12.1, subject to the eligible utility's right to
supplement or revise the petition submitted under this section
as necessary.
However, an eligible utility or any other public utility (as defined
in IC 8-1-8.5-1) that seeks to incur project development costs under
IC 8-1-8.5-12.1 may recover under IC 8-1-8.5-12.1 only those
SEA 423 — Concur 8
project development costs that have not been and will not be
recovered by the eligible utility or the public utility through
contributions of any money, services, or property that have been
or will be provided at no cost to the eligible utility or the public
utility by any third party.
(d) If an eligible utility has received approval from the
commission under subsection (c) to incur eligible project
development costs, the eligible utility may, at any time before or
during the development and execution of the project approved
under the program, petition the commission 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.
(e) If, after reviewing an eligible utility's proposed rate schedule
in a petition filed under subsection (d), the commission determines
that the eligible utility has incurred or will incur eligible project
development costs that are:
(1) reasonable in amount;
(2) necessary to support the development of a project under
the program; and
(3) consistent with the commission's finding as to the best
estimate of eligible project development costs in the
commission's order of approval under subsection (c);
the commission shall approve the recovery of the eligible project
development costs, subject to subsections (f) and (g). However, an
eligible utility may not file adjustments to a rate schedule to adjust
for cost recovery approved under this subsection more than one (1)
time every twelve (12) months.
(f) An eligible utility that recovers eligible project development
costs under subsection (e) shall recover eighty percent (80%) of the
approved eligible project development costs under the rate
schedule approved under subsection (e) and shall defer the
remaining twenty percent (20%) of approved eligible project
development costs, including, to the extent applicable, depreciation,
allowance for funds used during construction, and post in service
carrying costs, based on the overall cost of capital most recently
approved by the commission, and shall recover those eligible
project development costs as part of the next general rate case that
the eligible utility files with the commission.
(g) The recovery of an eligible utility's eligible project
development costs through a periodic rate adjustment mechanism
approved by the commission under subsection (e) must occur over
SEA 423 — Concur 9
a period that is equal to:
(1) the period over which the approved eligible project
development costs are incurred; or
(2) three (3) years;
whichever is less.
(h) Eligible project development costs that are found by the
commission to be reasonable, necessary, and consistent with the
best estimate of eligible project development costs in the
commission's order of approval under subsection (c) shall be
recovered by an eligible utility by inclusion in the eligible utility's
rates and charges. Eligible project development costs that are
incurred by an eligible utility and that exceed the best estimate of
eligible project development costs under subsection (b) may not be
included in the eligible utility's rates and charges unless found by
the commission to be reasonable, necessary, and prudent in
supporting the development of the project for which they were
incurred. Eligible project development costs that are incurred by
an eligible utility for a project that is canceled or not completed
may be recovered by the eligible utility if found by the commission
to be reasonable, necessary, and prudently incurred, but such costs
shall be recovered without a return unless the commission also
finds that:
(1) the decision to cancel or not complete the project was
prudently made for good cause;
(2) the eligible project development costs incurred will be
offset, as applicable, by:
(A) funding opportunities from the United States
Department of Energy that are pursued in good faith by
the eligible utility;
(B) a recoupment of revenues received by the eligible
utility from one (1) or more third parties for the transfer
of assets created through the costs incurred; or
(C) a reimbursement of costs by a single customer or
prospective customer at whose request the project was
pursued; and
(3) a return on the eligible project development costs incurred
is appropriate under the circumstances to avoid harm to the
eligible utility and its customers.
(i) An eligible utility may elect not to seek approval of, or cost
recovery for, eligible project development costs under this section
and instead seek approval from the commission to defer and
amortize eligible project development costs in accordance with the
SEA 423 — Concur 10
procedures set forth in IC 8-1-8.5-6.5 with respect to construction
costs.
Sec. 15. This chapter shall not be construed to affect the
authority of the United States Nuclear Regulatory Commission.
Sec. 16. The commission may adopt rules under IC 4-22-2 to
implement this chapter.
Sec. 17. This chapter expires July 1, 2035.
SEA 423 — Concur President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 423 — Concur