Indiana 2025 Regular Session

Indiana Senate Bill SB0424 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0424.1
	2	+	March 13, 2025
	3	+	ENGROSSED
	4	+	SENATE BILL No. 424
	5	+	_____
	6	+	DIGEST OF SB 424 (Updated March 11, 2025 2:09 pm - DI 101)
	7	+	Citations Affected: IC 8-1.
	8	+	Synopsis: Small modular nuclear reactor development costs. Amends
	9	+	as follows the Indiana Code section concerning certificates of public
	10	+	convenience and necessity (certificates) for small modular nuclear
	11	+	reactors: (1) Authorizes a public utility to petition the Indiana utility
	12	+	regulatory commission (IURC) for approval to incur, before obtaining
	13	+	a certificate, project development costs for the development of one or
	14	+	more small modular nuclear reactors. (2) Sets forth certain factors that
	15	+	the IURC must consider in reviewing a public utility's petition to incur
	16	+	project development costs. (3) Requires the IURC to issue a final order
	17	+	approving or denying the petition not later than 180 days after
	18	+	receiving the petition and the public utility's complete case in chief,
	19	+	subject to the IURC's right to extend the time for review if the public
	20	+	utility does not object to the extension. (4) Provides that if a public
	21	+	utility receives approval to incur project development costs, the public
	22	+	utility may petition the IURC at any time before or during the
	23	+	development and execution of a small modular nuclear reactor project
	24	+	(Continued next page)
	25	+	Effective: July 1, 2025.
	26	+	Koch, Buchanan, Leising, Doriot,
	27	+	Zay, Byrne, Schmitt, Buck, Raatz,
	28	+	Donato, Maxwell
	29	+	(HOUSE SPONSOR — SOLIDAY)
	30	+	January 13, 2025, read first time and referred to Committee on Utilities.
	31	+	January 27, 2025, amended, reported favorably — Do Pass.
	32	+	January 30, 2025, read second time, ordered engrossed. Engrossed.
	33	+	February 3, 2025, read third time, passed. Yeas 34, nays 14.
	34	+	HOUSE ACTION
	35	+	March 3, 2025, read first time and referred to Committee on Utilities, Energy and
	36	+	Telecommunications.
	37	+	March 13, 2025, amended, reported — Do Pass.
	38	+	ES 424—LS 7481/DI 101 Digest Continued
	39	+	for the approval of a rate schedule that periodically adjusts the public
	40	+	utility's rates and charges to provide for the timely recovery of project
	41	+	development costs. (5) Provides that after reviewing a public utility's
	42	+	proposed rate schedule, the IURC shall approve the recovery of project
	43	+	development costs by the public utility if the IURC finds that project
	44	+	development costs that have been or will be incurred are: (A)
	45	+	reasonable in amount; (B) necessary to support the construction,
	46	+	purchase, or lease of a small modular nuclear reactor; and (C)
	47	+	consistent with the commission's finding as to the best estimate of
	48	+	project development costs. (6) Provides that a public utility that is
	49	+	authorized to recover project development costs shall: (A) recover 80%
	50	+	of the approved project development costs under the approved rate
	51	+	schedule; and (B) defer the remaining 20% of approved project
	52	+	development costs for recovery as part of public utility's next general
	53	+	rate case before the IURC. (7) Provides that the recovery of a public
	54	+	utility's project development costs through an approved periodic rate
	55	+	adjustment mechanism must occur over a period that is equal to: (A)
	56	+	the period over which the approved project development costs are
	57	+	incurred; or (B) three years; whichever is less. (8) Provides that project
	58	+	development costs that: (A) are incurred by a public utility; and (B)
	59	+	exceed the best estimate of project development costs included in the
	60	+	IURC's order authorizing the public utility to incur project development
	61	+	costs; may not be included in the public utility's rates and charges
	62	+	unless found by the IURC to be reasonable, necessary, and prudent in
	63	+	supporting the construction, purchase, or lease of the small modular
	64	+	nuclear reactor for which they were incurred. (9) Provides that: (A)
	65	+	project development costs incurred for a project that is canceled or not
	66	+	completed may be recovered by the public utility if found by the IURC
	67	+	to be reasonable, necessary, and prudently incurred; but (B) such costs
	68	+	shall be recovered without a return unless the IURC makes certain
	69	+	additional findings. (10) Provides that if a public utility does not seek:
	70	+	(A) approval of; or (B) cost recovery for; project development costs
	71	+	under the bill's provisions, the IURC may approve the deferral and
	72	+	amortization of project development costs in accordance with the
	73	+	statutory procedures set forth for construction costs.
	74	+	ES 424—LS 7481/DI 101ES 424—LS 7481/DI 101 March 13, 2025
1	75		First Regular Session of the 124th General Assembly (2025)
2	76		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	77		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	78		additions will appear in this style type, and deletions will appear in this style type.
5	79		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	80		provision adopted), the text of the new provision will appear in this style type. Also, the
7	81		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	82		a new provision to the Indiana Code or the Indiana Constitution.
9	83		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	84		between statutes enacted by the 2024 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 424
12		-	AN ACT to amend the Indiana Code concerning utilities.
	85	+	ENGROSSED
	86	+	SENATE BILL No. 424
	87	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	88	+	utilities.
13	89		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 8-1-8.5-12.1, AS AMENDED BY P.L.93-2024,
15		-	SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16		-	JULY 1, 2025]: Sec. 12.1. (a) As used in this section, "project
17		-	development costs" means costs that have been incurred, or are
18		-	reasonably estimated to be incurred, in the development of one (1)
19		-	or more small modular nuclear reactors, including:
20		-	(1) evaluation, design, and engineering costs;
21		-	(2) costs for federal approvals and licensing;
22		-	(3) costs for environmental analyses and permitting;
23		-	(4) early site permit (as defined in 10 CFR 52.1) costs;
24		-	(5) equipment procurement costs; and
25		-	(6) authorized carrying costs.
26		-	(a) (b) As used in this section, "small modular nuclear reactor"
27		-	means a nuclear reactor that:
28		-	(1) has a rated electric generating capacity of not more than four
29		-	hundred seventy (470) megawatts;
30		-	(2) is capable of being constructed and operated, either:
31		-	(A) alone; or
32		-	(B) in combination with one (1) or more similar reactors if
33		-	additional reactors are, or become, necessary;
34		-	at a single site; and
35		-	(3) is required to be licensed by the United States Nuclear
36		-	SEA 424 — Concur 2
37		-	Regulatory Commission.
38		-	The term includes a nuclear reactor that is described in this subsection
39		-	and that uses a process to produce hydrogen that can be used for energy
40		-	storage, as a fuel, or for other uses.
41		-	(b) (c) Not later than July 1, 2023, the commission, in consultation
42		-	with the department of environmental management, shall adopt rules
43		-	under IC 4-22-2 concerning the granting of certificates under this
44		-	chapter for the construction, purchase, or lease of small modular
45		-	nuclear reactors:
46		-	(1) in Indiana for the generation of electricity to be directly or
47		-	indirectly used to furnish public utility service to Indiana
48		-	customers; or
49		-	(2) at the site of a nuclear energy production or generating facility
50		-	that supplies electricity to Indiana retail customers on July 1,
51		-	2011.
52		-	(c) (d) Rules adopted by the commission under this section must
53		-	provide for the following:
54		-	(1) That in acting on a public utility's petition for the construction,
55		-	purchase, or lease of one (1) or more small modular nuclear
56		-	reactors, as described in subsection (b), (c), the commission shall
57		-	consider the following:
58		-	(A) Whether, and to what extent, the one (1) or more small
59		-	modular nuclear reactors proposed by the public utility will
60		-	replace a loss of generating capacity in the public utility's
61		-	portfolio resulting from the retirement or planned retirement
62		-	of one (1) or more of the public utility's existing electric
63		-	generating facilities that:
64		-	(i) are located in Indiana; and
65		-	(ii) use coal or natural gas as a fuel source.
66		-	(B) Whether one (1) or more of the small modular nuclear
67		-	reactors that will replace an existing facility will be located on
68		-	the same site as or near the existing facility and, if so, potential
69		-	opportunities for the public utility to:
70		-	(i) make use of any land and existing infrastructure or
71		-	facilities already owned or under the control of the public
72		-	utility; or
73		-	(ii) create new employment opportunities for workers who
74		-	have been, or would be, displaced as a result of the
75		-	retirement of the existing facility.
76		-	(2) That the commission may grant a certificate under this chapter
77		-	under circumstances and for locations other than those described
78		-	in subdivision (1).
79		-	SEA 424 — Concur 3
80		-	(3) That the commission may not grant a certificate under this
81		-	chapter unless the owner or operator of a proposed small modular
82		-	nuclear reactor provides evidence of a plan to apply for all
83		-	licenses or permits to construct or operate the proposed small
84		-	modular nuclear reactor as may be required by:
85		-	(A) the United States Nuclear Regulatory Commission;
86		-	(B) the department of environmental management; or
87		-	(C) any other relevant state or federal regulatory agency with
88		-	jurisdiction over the construction or operation of nuclear
89		-	generating facilities.
90		-	(4) That any:
91		-	(A) reports;
92		-	(B) notices of violations; or
93		-	(C) other notifications;
94		-	sent to or from the United States Nuclear Regulatory Commission
95		-	by or to the owner or operator of a proposed small nuclear reactor
96		-	must be submitted by the owner or operator to the commission
97		-	within such times as prescribed by the commission, subject to the
98		-	commission's duty to treat as confidential and protect from public
99		-	access and disclosure any information that is contained in a report
100		-	or notice and that is considered confidential or exempt from
101		-	public access and disclosure under state or federal law.
102		-	(5) That any person that owns or operates a small modular nuclear
103		-	reactor in Indiana may not store:
104		-	(A) spent nuclear fuel (as defined in IC 13-11-2-216); or
105		-	(B) high level radioactive waste (as defined in
106		-	IC 13-11-2-102);
107		-	from the small modular nuclear reactor on the site of the small
108		-	modular nuclear reactor without first meeting all applicable
109		-	requirements of the United States Nuclear Regulatory
110		-	Commission.
111		-	(d) In adopting the rules required by this section, the commission
112		-	may adopt rules under IC 4-22-2.
113		-	(e) A public utility may petition the commission for approval to
114		-	incur, before obtaining a certificate under this chapter, project
115		-	development costs for the development of one (1) or more small
116		-	modular nuclear reactors. The public utility must file with the
117		-	petition the public utility's case in chief, which must contain the
118		-	information and supporting documentation regarding the factors
119		-	the commission must consider under this subsection. In reviewing
120		-	a petition and the supporting case in chief under this subsection,
121		-	the commission shall consider the following:
122		-	SEA 424 — Concur 4
123		-	(1) Whether a project by the utility to construct, purchase, or
124		-	lease a small modular nuclear reactor is reasonably consistent
125		-	with:
126		-	(A) this section and rules adopted by the commission under
127		-	this section; and
128		-	(B) the purposes set forth in IC 8-1-8.8-1(b), as applicable.
129		-	(2) The following factors with respect to the project
130		-	development costs and the project for which they are to be
131		-	incurred:
132		-	(A) The amount of project development costs the public
133		-	utility anticipates incurring.
134		-	(B) The anticipated timeline for incurring the project
135		-	development costs.
136		-	(C) The anticipated date by which the public utility will
137		-	make a decision as to whether to seek a certificate under
138		-	this chapter.
139		-	The commission shall review a petition submitted under this
140		-	subsection and issue a final order approving or denying the petition
141		-	not later than one hundred eighty (180) days after receiving the
142		-	petition and complete case in chief. However, if the commission
143		-	makes a docket entry extending the procedural schedule and the
144		-	public utility does not object to the entered extension, the
145		-	commission may extend the one hundred eighty (180) day time
146		-	frame for issuing a final order under this subsection for the
147		-	amount of time set forth in the docket entry. In an order approving
148		-	a petition, the commission must make a finding as to the best
149		-	estimate and reasonableness of project development costs based on
150		-	the evidence of record.
151		-	(f) If a public utility has received approval from the commission
152		-	under subsection (e) to incur project development costs, the public
153		-	utility may petition the commission at any time before or during
154		-	the development and execution of a small modular nuclear reactor
155		-	project for the approval of a rate schedule that periodically adjusts
156		-	the public utility's rates and charges to provide for the timely
157		-	recovery of project development costs. A petition under this
158		-	subsection must describe any efforts by the public utility to pursue
159		-	funding opportunities from the United States Department of
160		-	Energy to offset the project development costs that the public
161		-	utility seeks to recover under the proposed rate schedule.
162		-	(g) If, after reviewing a public utility's proposed rate schedule
163		-	in a petition submitted under subsection (f), the commission
164		-	determines that the public utility has incurred or will incur project
165		-	SEA 424 — Concur 5
166		-	development costs that are:
167		-	(1) reasonable in amount;
168		-	(2) necessary to support the construction, purchase, or lease
169		-	of a small modular nuclear reactor; and
170		-	(3) consistent with the commission's finding as to the best
171		-	estimate of project development costs in the commission's
172		-	order of approval under subsection (e);
173		-	the commission shall approve the recovery of the project
174		-	development costs, subject to subsections (h) and (i). However, a
175		-	public utility may not file adjustments to a rate schedule to adjust
176		-	for cost recovery approved under this subsection more than one (1)
177		-	time every twelve (12) months.
178		-	(h) A public utility that recovers project development costs
179		-	under subsection (g) shall recover eighty percent (80%) of the
180		-	approved project development costs under the rate schedule
181		-	approved under subsection (g) and shall defer the remaining
182		-	twenty percent (20%) of approved project development costs,
183		-	including, to the extent applicable, depreciation, allowance for
184		-	funds used during construction, and post in service carrying costs,
185		-	based on the overall cost of capital most recently approved by the
186		-	commission, and shall recover those project development costs as
187		-	part of the next general rate case that the public utility files with
188		-	the commission.
189		-	(i) The recovery of a public utility's project development costs
190		-	through a periodic rate adjustment mechanism approved by the
191		-	commission under subsection (g) must occur over a period that is
192		-	equal to:
193		-	(1) the period over which the approved project development
194		-	costs are incurred; or
195		-	(2) three (3) years;
196		-	whichever is less.
197		-	(j) Project development costs that are found by the commission
198		-	to be reasonable, necessary, and consistent with the best estimate
199		-	of project development costs in the commission's order of approval
200		-	under subsection (e) shall be recovered by a public utility by
201		-	inclusion in the public utility's rates and charges. Project
202		-	development costs that are incurred by a public utility and that
203		-	exceed the best estimate of project development costs under
204		-	subsection (e) may not be included in the public utility's rates and
205		-	charges unless found by the commission to be reasonable,
206		-	necessary, and prudent in supporting the construction, purchase,
207		-	or lease of the small modular nuclear reactor for which they were
208		-	SEA 424 — Concur 6
209		-	incurred. Project development costs that are incurred by a public
210		-	utility for a project that is canceled or not completed may be
211		-	recovered by the public utility if found by the commission to be
212		-	reasonable, necessary, and prudently incurred, but such costs shall
213		-	be recovered without a return unless the commission also finds
214		-	that:
	90	+	1 SECTION 1. IC 8-1-8.5-12.1, AS AMENDED BY P.L.93-2024,
	91	+	2 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	92	+	3 JULY 1, 2025]: Sec. 12.1. (a) As used in this section, "project
	93	+	4 development costs" means costs that have been incurred, or are
	94	+	5 reasonably estimated to be incurred, in the development of one (1)
	95	+	6 or more small modular nuclear reactors, including:
	96	+	7 (1) evaluation, design, and engineering costs;
	97	+	8 (2) costs for federal approvals and licensing;
	98	+	9 (3) costs for environmental analyses and permitting;
	99	+	10 (4) early site permit (as defined in 10 CFR 52.1) costs;
	100	+	11 (5) equipment procurement costs; and
	101	+	12 (6) authorized carrying costs.
	102	+	13 (a) (b) As used in this section, "small modular nuclear reactor"
	103	+	14 means a nuclear reactor that:
	104	+	15 (1) has a rated electric generating capacity of not more than four
	105	+	ES 424—LS 7481/DI 101 2
	106	+	1 hundred seventy (470) megawatts;
	107	+	2 (2) is capable of being constructed and operated, either:
	108	+	3 (A) alone; or
	109	+	4 (B) in combination with one (1) or more similar reactors if
	110	+	5 additional reactors are, or become, necessary;
	111	+	6 at a single site; and
	112	+	7 (3) is required to be licensed by the United States Nuclear
	113	+	8 Regulatory Commission.
	114	+	9 The term includes a nuclear reactor that is described in this subsection
	115	+	10 and that uses a process to produce hydrogen that can be used for energy
	116	+	11 storage, as a fuel, or for other uses.
	117	+	12 (b) (c) Not later than July 1, 2023, the commission, in consultation
	118	+	13 with the department of environmental management, shall adopt rules
	119	+	14 under IC 4-22-2 concerning the granting of certificates under this
	120	+	15 chapter for the construction, purchase, or lease of small modular
	121	+	16 nuclear reactors:
	122	+	17 (1) in Indiana for the generation of electricity to be directly or
	123	+	18 indirectly used to furnish public utility service to Indiana
	124	+	19 customers; or
	125	+	20 (2) at the site of a nuclear energy production or generating facility
	126	+	21 that supplies electricity to Indiana retail customers on July 1,
	127	+	22 2011.
	128	+	23 (c) (d) Rules adopted by the commission under this section must
	129	+	24 provide for the following:
	130	+	25 (1) That in acting on a public utility's petition for the construction,
	131	+	26 purchase, or lease of one (1) or more small modular nuclear
	132	+	27 reactors, as described in subsection (b), (c), the commission shall
	133	+	28 consider the following:
	134	+	29 (A) Whether, and to what extent, the one (1) or more small
	135	+	30 modular nuclear reactors proposed by the public utility will
	136	+	31 replace a loss of generating capacity in the public utility's
	137	+	32 portfolio resulting from the retirement or planned retirement
	138	+	33 of one (1) or more of the public utility's existing electric
	139	+	34 generating facilities that:
	140	+	35 (i) are located in Indiana; and
	141	+	36 (ii) use coal or natural gas as a fuel source.
	142	+	37 (B) Whether one (1) or more of the small modular nuclear
	143	+	38 reactors that will replace an existing facility will be located on
	144	+	39 the same site as or near the existing facility and, if so, potential
	145	+	40 opportunities for the public utility to:
	146	+	41 (i) make use of any land and existing infrastructure or
	147	+	42 facilities already owned or under the control of the public
	148	+	ES 424—LS 7481/DI 101 3
	149	+	1 utility; or
	150	+	2 (ii) create new employment opportunities for workers who
	151	+	3 have been, or would be, displaced as a result of the
	152	+	4 retirement of the existing facility.
	153	+	5 (2) That the commission may grant a certificate under this chapter
	154	+	6 under circumstances and for locations other than those described
	155	+	7 in subdivision (1).
	156	+	8 (3) That the commission may not grant a certificate under this
	157	+	9 chapter unless the owner or operator of a proposed small modular
	158	+	10 nuclear reactor provides evidence of a plan to apply for all
	159	+	11 licenses or permits to construct or operate the proposed small
	160	+	12 modular nuclear reactor as may be required by:
	161	+	13 (A) the United States Nuclear Regulatory Commission;
	162	+	14 (B) the department of environmental management; or
	163	+	15 (C) any other relevant state or federal regulatory agency with
	164	+	16 jurisdiction over the construction or operation of nuclear
	165	+	17 generating facilities.
	166	+	18 (4) That any:
	167	+	19 (A) reports;
	168	+	20 (B) notices of violations; or
	169	+	21 (C) other notifications;
	170	+	22 sent to or from the United States Nuclear Regulatory Commission
	171	+	23 by or to the owner or operator of a proposed small nuclear reactor
	172	+	24 must be submitted by the owner or operator to the commission
	173	+	25 within such times as prescribed by the commission, subject to the
	174	+	26 commission's duty to treat as confidential and protect from public
	175	+	27 access and disclosure any information that is contained in a report
	176	+	28 or notice and that is considered confidential or exempt from
	177	+	29 public access and disclosure under state or federal law.
	178	+	30 (5) That any person that owns or operates a small modular nuclear
	179	+	31 reactor in Indiana may not store:
	180	+	32 (A) spent nuclear fuel (as defined in IC 13-11-2-216); or
	181	+	33 (B) high level radioactive waste (as defined in
	182	+	34 IC 13-11-2-102);
	183	+	35 from the small modular nuclear reactor on the site of the small
	184	+	36 modular nuclear reactor without first meeting all applicable
	185	+	37 requirements of the United States Nuclear Regulatory
	186	+	38 Commission.
	187	+	39 (d) In adopting the rules required by this section, the commission
	188	+	40 may adopt rules under IC 4-22-2.
	189	+	41 (e) A public utility may petition the commission for approval to
	190	+	42 incur, before obtaining a certificate under this chapter, project
	191	+	ES 424—LS 7481/DI 101 4
	192	+	1 development costs for the development of one (1) or more small
	193	+	2 modular nuclear reactors. The public utility must file with the
	194	+	3 petition the public utility's case in chief, which must contain the
	195	+	4 information and supporting documentation regarding the factors
	196	+	5 the commission must consider under this subsection. In reviewing
	197	+	6 a petition and the supporting case in chief under this subsection,
	198	+	7 the commission shall consider the following:
	199	+	8 (1) Whether a project by the utility to construct, purchase, or
	200	+	9 lease a small modular nuclear reactor is reasonably consistent
	201	+	10 with:
	202	+	11 (A) this section and rules adopted by the commission under
	203	+	12 this section; and
	204	+	13 (B) the purposes set forth in IC 8-1-8.8-1(b), as applicable.
	205	+	14 (2) The following factors with respect to the project
	206	+	15 development costs and the project for which they are to be
	207	+	16 incurred:
	208	+	17 (A) The amount of project development costs the public
	209	+	18 utility anticipates incurring.
	210	+	19 (B) The anticipated timeline for incurring the project
	211	+	20 development costs.
	212	+	21 (C) The anticipated date by which the public utility will
	213	+	22 make a decision as to whether to seek a certificate under
	214	+	23 this chapter.
	215	+	24 The commission shall review a petition submitted under this
	216	+	25 subsection and issue a final order approving or denying the petition
	217	+	26 not later than one hundred eighty (180) days after receiving the
	218	+	27 petition and complete case in chief. However, if the commission
	219	+	28 makes a docket entry extending the procedural schedule and the
	220	+	29 public utility does not object to the entered extension, the
	221	+	30 commission may extend the one hundred eighty (180) day time
	222	+	31 frame for issuing a final order under this subsection for the
	223	+	32 amount of time set forth in the docket entry. In an order approving
	224	+	33 a petition, the commission must make a finding as to the best
	225	+	34 estimate and reasonableness of project development costs based on
	226	+	35 the evidence of record.
	227	+	36 (f) If a public utility has received approval from the commission
	228	+	37 under subsection (e) to incur project development costs, the public
	229	+	38 utility may petition the commission at any time before or during
	230	+	39 the development and execution of a small modular nuclear reactor
	231	+	40 project for the approval of a rate schedule that periodically adjusts
	232	+	41 the public utility's rates and charges to provide for the timely
	233	+	42 recovery of project development costs. A petition under this
	234	+	ES 424—LS 7481/DI 101 5
	235	+	1 subsection must describe any efforts by the public utility to pursue
	236	+	2 funding opportunities from the United States Department of
	237	+	3 Energy to offset the project development costs that the public
	238	+	4 utility seeks to recover under the proposed rate schedule.
	239	+	5 (g) If, after reviewing a public utility's proposed rate schedule
	240	+	6 in a petition submitted under subsection (f), the commission
	241	+	7 determines that the public utility has incurred or will incur project
	242	+	8 development costs that are:
	243	+	9 (1) reasonable in amount;
	244	+	10 (2) necessary to support the construction, purchase, or lease
	245	+	11 of a small modular nuclear reactor; and
	246	+	12 (3) consistent with the commission's finding as to the best
	247	+	13 estimate of project development costs in the commission's
	248	+	14 order of approval under subsection (e);
	249	+	15 the commission shall approve the recovery of the project
	250	+	16 development costs, subject to subsections (h) and (i). However, a
	251	+	17 public utility may not file adjustments to a rate schedule to adjust
	252	+	18 for cost recovery approved under this subsection more than one (1)
	253	+	19 time every twelve (12) months.
	254	+	20 (h) A public utility that recovers project development costs
	255	+	21 under subsection (g) shall recover eighty percent (80%) of the
	256	+	22 approved project development costs under the rate schedule
	257	+	23 approved under subsection (g) and shall defer the remaining
	258	+	24 twenty percent (20%) of approved project development costs,
	259	+	25 including, to the extent applicable, depreciation, allowance for
	260	+	26 funds used during construction, and post in service carrying costs,
	261	+	27 based on the overall cost of capital most recently approved by the
	262	+	28 commission, and shall recover those project development costs as
	263	+	29 part of the next general rate case that the public utility files with
	264	+	30 the commission.
	265	+	31 (i) The recovery of a public utility's project development costs
	266	+	32 through a periodic rate adjustment mechanism approved by the
	267	+	33 commission under subsection (g) must occur over a period that is
	268	+	34 equal to:
	269	+	35 (1) the period over which the approved project development
	270	+	36 costs are incurred; or
	271	+	37 (2) three (3) years;
	272	+	38 whichever is less.
	273	+	39 (j) Project development costs that are found by the commission
	274	+	40 to be reasonable, necessary, and consistent with the best estimate
	275	+	41 of project development costs in the commission's order of approval
	276	+	42 under subsection (e) shall be recovered by a public utility by
	277	+	ES 424—LS 7481/DI 101 6
	278	+	1 inclusion in the public utility's rates and charges. Project
	279	+	2 development costs that are incurred by a public utility and that
	280	+	3 exceed the best estimate of project development costs under
	281	+	4 subsection (e) may not be included in the public utility's rates and
	282	+	5 charges unless found by the commission to be reasonable,
	283	+	6 necessary, and prudent in supporting the construction, purchase,
	284	+	7 or lease of the small modular nuclear reactor for which they were
	285	+	8 incurred. Project development costs that are incurred by a public
	286	+	9 utility for a project that is canceled or not completed may be
	287	+	10 recovered by the public utility if found by the commission to be
	288	+	11 reasonable, necessary, and prudently incurred, but such costs shall
	289	+	12 be recovered without a return unless the commission also finds
	290	+	13 that:
	291	+	14 (1) the decision to cancel or not complete the project was
	292	+	15 prudently made for good cause;
	293	+	16 (2) the project development costs incurred will be offset, as
	294	+	17 applicable, by:
	295	+	18 (A) funding opportunities from the United States
	296	+	19 Department of Energy that are pursued in good faith by
	297	+	20 the public utility;
	298	+	21 (B) a recoupment of revenues received by the public utility
	299	+	22 from one (1) or more third parties for the transfer of assets
	300	+	23 created through the costs incurred; or
	301	+	24 (C) a reimbursement of costs by a single customer or
	302	+	25 prospective customer at whose request the project was
	303	+	26 pursued; and
	304	+	27 (3) a return on the project development costs incurred is
	305	+	28 appropriate under the circumstances to avoid harm to the
	306	+	29 public utility and its customers.
	307	+	30 (k) A public utility may elect not to seek approval of, or cost
	308	+	31 recovery for, project development costs under subsections (e)
	309	+	32 through (i) and instead seek approval from the commission to defer
	310	+	33 and amortize project development costs in accordance with the
	311	+	34 procedures set forth in section 6.5 of this chapter with respect to
	312	+	35 construction costs.
	313	+	36 (l) The commission may adopt rules under IC 4-22-2 to
	314	+	37 implement subsections (e) through (k).
	315	+	38 (e) (m) This section shall not be construed to affect the authority of
	316	+	39 the United States Nuclear Regulatory Commission.
	317	+	ES 424—LS 7481/DI 101 7
	318	+	COMMITTEE REPORT
	319	+	Mr. President: The Senate Committee on Utilities, to which was
	320	+	referred Senate Bill No. 424, has had the same under consideration and
	321	+	begs leave to report the same back to the Senate with the
	322	+	recommendation that said bill be AMENDED as follows:
	323	+	Page 2, line 27, delete "(c)" and insert "(c),".
	324	+	Page 5, line 30, delete "Actual project development costs that are".
	325	+	Page 5, delete lines 31 through 36.
	326	+	Page 6, line 3, delete "Reasonable and necessary project
	327	+	development costs that are" and insert "Project development costs
	328	+	that are found by the commission to be reasonable, necessary, and
	329	+	consistent with the best estimate of project development costs in
	330	+	the commission's order of approval under subsection (e) shall be
	331	+	recovered by a public utility by inclusion in the public utility's
	332	+	rates and charges. Project development costs that are incurred by
	333	+	a public utility and that exceed the best estimate of project
	334	+	development costs under subsection (e) may not be included in the
	335	+	public utility's rates and charges unless found by the commission
	336	+	to be reasonable, necessary, and prudent in supporting the
	337	+	construction, purchase, or lease of the small modular nuclear
	338	+	reactor for which they were incurred. Project development costs
	339	+	that are incurred by a public utility for a project that is canceled
	340	+	or not completed may be recovered by the public utility if found by
	341	+	the commission to be reasonable, necessary, and prudently
	342	+	incurred, but such costs shall be recovered without a return unless
	343	+	the commission also finds that:
215	344		(1) the decision to cancel or not complete the project was
216	345		prudently made for good cause;
217	346		(2) the project development costs incurred will be offset, as
218	347		applicable, by:
219	348		(A) funding opportunities from the United States
220	349		Department of Energy that are pursued in good faith by
221	350		the public utility;
222	351		(B) a recoupment of revenues received by the public utility
223	352		from one (1) or more third parties for the transfer of assets
224	353		created through the costs incurred; or
225	354		(C) a reimbursement of costs by a single customer or
226	355		prospective customer at whose request the project was
227	356		pursued; and
228	357		(3) a return on the project development costs incurred is
229	358		appropriate under the circumstances to avoid harm to the
230	359		public utility and its customers.
	360	+	ES 424—LS 7481/DI 101 8
231	361		(k) A public utility may elect not to seek approval of, or cost
232	362		recovery for, project development costs under subsections (e)
233	363		through (i) and instead seek approval from the commission to defer
234	364		and amortize project development costs in accordance with the
235	365		procedures set forth in section 6.5 of this chapter with respect to
236		-	construction costs.
237		-	(l) The commission may adopt rules under IC 4-22-2 to
238		-	implement subsections (e) through (k).
239		-	(e) (m) This section shall not be construed to affect the authority of
240		-	the United States Nuclear Regulatory Commission.
241		-	SEA 424 — Concur President of the Senate
242		-	President Pro Tempore
243		-	Speaker of the House of Representatives
244		-	Governor of the State of Indiana
245		-	Date: Time:
246		-	SEA 424 — Concur
	366	+	construction costs.".
	367	+	Page 6, delete lines 4 through 17.
	368	+	Page 6, line 18, delete "(k)" and insert "(l)".
	369	+	Page 6, line 19, delete "(j)." and insert "(k).".
	370	+	Page 6, line 20, delete "(l)" and insert "(m)".
	371	+	Page 6, line 22, delete "(m)" and insert "(n)".
	372	+	Page 6, line 22, delete "(k)" and insert "(l)".
	373	+	and when so amended that said bill do pass.
	374	+	(Reference is to SB 424 as introduced.)
	375	+	KOCH, Chairperson
	376	+	Committee Vote: Yeas 8, Nays 3.
	377	+	_____
	378	+	COMMITTEE REPORT
	379	+	Mr. Speaker: Your Committee on Utilities, Energy and
	380	+	Telecommunications, to which was referred Senate Bill 424, has had
	381	+	the same under consideration and begs leave to report the same back
	382	+	to the House with the recommendation that said bill be amended as
	383	+	follows:
	384	+	Page 6, delete lines 40 through 41.
	385	+	and when so amended that said bill do pass.
	386	+	(Reference is to SB 424 as printed January 28, 2025.)
	387	+	SOLIDAY
	388	+	Committee Vote: yeas 10, nays 3.
	389	+	ES 424—LS 7481/DI 101