Indiana Code Title 8. Utilities and Transportation § 8-1-8.5-12.1

Sec. 12.1. (a) As used in this section, “project development costs” means costs that have been incurred, or are reasonably estimated to be incurred, in the development of one (1) or more small modular nuclear reactors, including:

(b) As used in this section, “small modular nuclear reactor” means a nuclear reactor that:

The term includes a nuclear reactor that is described in this subsection and that uses a process to produce hydrogen that can be used for energy storage, as a fuel, or for other uses.

(c) Not later than July 1, 2023, the commission, in consultation with the department of environmental management, shall adopt rules under IC 4-22-2 concerning the granting of certificates under this chapter for the construction, purchase, or lease of small modular nuclear reactors:

(d) Rules adopted by the commission under this section must provide for the following:

(e) A public utility may petition the commission for approval to incur, before obtaining a certificate under this chapter, project development costs for the development of one (1) or more small modular nuclear reactors.  The public utility must file with the petition the public utility's case in chief, which must contain the information and supporting documentation regarding the factors the commission must consider under this subsection.  In reviewing a petition and the supporting case in chief under this subsection, the commission shall consider the following:

The commission shall review a petition submitted under this subsection 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 public 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, the commission must make a finding as to the best estimate and reasonableness of project development costs based on the evidence of record.

(f) If a public utility has received approval from the commission under subsection (e) to incur project development costs, the public utility may petition the commission at any time before or during the development and execution of a small modular nuclear reactor project for the approval of a rate schedule that periodically adjusts the public utility's rates and charges to provide for the timely recovery of project development costs.  A petition under this subsection must describe any efforts by the public utility to pursue funding opportunities from the United States Department of Energy to offset the project development costs that the public utility seeks to recover under the proposed rate schedule.

(g) If, after reviewing a public utility's proposed rate schedule in a petition submitted under subsection (f), the commission determines that the public utility has incurred or will incur project development costs that are:

the commission shall approve the recovery of the project development costs, subject to subsections (h) and (i).  However, a public 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.

(h) A public utility that recovers project development costs under subsection (g) shall recover eighty percent (80%) of the approved project development costs under the rate schedule approved under subsection (g) and shall defer the remaining twenty percent (20%) of approved 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 project development costs as part of the next general rate case that the public utility files with the commission.

(i) The recovery of a public utility's project development costs through a periodic rate adjustment mechanism approved by the commission under subsection (g) must occur over a period that is equal to:

whichever is less.

(j) Project development costs that are found by the commission to be reasonable, necessary, and consistent with the best estimate of project development costs in the commission's order of approval under subsection (e) shall be recovered by a public utility by inclusion in the public utility's rates and charges.  Project development costs that are incurred by a public utility and that exceed the best estimate of project development costs under subsection (e) may not be included in the public utility's rates and charges unless found by the commission to be reasonable, necessary, and prudent in supporting the construction, purchase, or lease of the small modular nuclear reactor for which they were incurred.  Project development costs that are incurred by a public utility for a project that is canceled or not completed may be recovered by the public 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:

(k) A public utility may elect not to seek approval of, or cost recovery for, project development costs under subsections (e) through (i) and instead seek approval from the commission to defer and amortize project development costs in accordance with the procedures set forth in section 6.5 of this chapter with respect to construction costs.

(l) The commission may adopt rules under IC 4-22-2 to implement subsections (e) through (k).

(m) This section shall not be construed to affect the authority of the United States Nuclear Regulatory Commission.