How the Hoosier State is Betting Big on Small Modular Reactors

Indiana stands at a crossroads in energy development. Despite having no active nuclear power plants and only one manufacturer producing components for small modular reactors (SMRs), the state is making bold moves to position itself as a national leader in next-generation nuclear technology.

States across the country are interested in developing nuclear plants because they provide consistent power that operates 24/7 regardless of weather conditions. Unlike solar and wind, nuclear doesn’t depend on environmental factors, making it highly reliable for meeting steady electricity demand.

The Hoosier State’s nuclear ambitions center around recent legislative efforts spearheaded by Senator Eric Koch, who has emerged as one the legislature’s most vocal advocates for SMR development. Koch believes Indiana has unique advantages in the nuclear sector.

“I don’t think there’s a state better positioned to develop SMRs,” Koch told The Indiana Lawyer, reflecting the confidence driving Indiana’s nuclear push.

The cornerstone of Indiana’s SMR strategy is Senate Enrolled Act 424, authored by Koch and signed into law by Governor Mike Braun in April. This legislation represents a significant shift in how nuclear projects can be financed, offering Indiana public utilities a pathway to recover preconstruction costs from customers before projects even begin construction.

The law streamlines the regulatory process for SMR development while providing utilities with financial flexibility that could prove crucial for expensive nuclear projects. However, this approach has generated controversy, as any rate increases tied to cost recovery must still receive approval from the Indiana Utility Regulatory Commission.

The preconstruction cost recovery provision has drawn criticism from utility consumer advocate groups who worry about customers bearing financial risk for projects that my never come to fruition.

This tension underscores the complex economics of nuclear power development, where massive upfront costs and long development timelines create financial risks that utilities have traditionally been reluctant to shoulder alone.

If you have any questions, please contact McNeelyLaw LLP by calling (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.

Sources: The Indiana Lawyer Article

https://www.energy.gov/ne/articles/advantages-and-challenges-nuclear-energy