SB 424

This bill establishes a framework for Indiana public utilities to recover costs associated with developing small modular nuclear reactors before the projects are completed and operational. It allows utilities to petition the Indiana Utility Regulatory Commission (IURC) for pre-approval to incur project development costs and, if approved, to recover these costs through periodic rate adjustments to customer bills—with 80% recovered during development and 20% deferred until the next general rate case. The legislation aims to reduce financial risk for utilities investing in small modular nuclear reactor technology by ensuring they can recoup development expenses even if projects are ultimately canceled, provided the IURC finds the costs were reasonable and necessary. This cost recovery mechanism essentially allows utilities to pass development costs on to ratepayers during the planning and construction phase rather than waiting until the reactors are operational.