Tech companies could share cost of small nuclear plant pilot program under bill passed by committee
Several bills that would make Hoosiers pay some of the cost of building small modular nuclear reactors are working their way through the Indiana Statehouse. But a Senate bill that passed committee on Thursday, SB 423, would allow the tech companies driving the need for these plants to share that cost.
Companies like Amazon and Meta plan to build large data centers in Indiana that need a lot of power 24/7. They also have climate goals — which make low-emissions nuclear power an attractive option.
READ MORE: AI data centers threaten to derail climate progress in Indiana
The bill would create a pilot program to build up to two small nuclear plants in the state. Its author, Sen. Eric Koch (R-Bedford) said utilities could team up with all kinds of stakeholders on the projects — tech companies, universities, military installations or nuclear manufacturers.
“One of the eligible partners could provide capital which reduces the amount that may go into rates,” he said.
Though there’s no guarantee that utilities would have to partner on the projects. Utilities would be allowed to pass along 20 percent of the cost of developing a small modular nuclear reactor, or SMR, to their customers.
Some consumer and environmental advocates say — even with the potential for tech companies to buy in — small nuclear plants are too risky of an investment for Hoosiers to bear. None have been built in the U.S. yet and many of those projects have gone billions of dollars over budget. They also have concerns about the safety of nuclear waste.
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One federally-funded SMR project was canceled in 2023 after more than a decade of work and nearly $9 billion in costs.
Kerwin Olson with the Citizens Action Coalition said Indiana utilities should also have to share some of that financial risk.
“How about rather than just mandating that they can collect that 20 percent in the next rate case, how about saying they can collect that 20 percent when the project comes online and it’s commercially operable?” he said.
Right now, as long as the state deems it “reasonable,” a utility could make customers pay part of the cost to build a small nuclear plant under the bill — even if it’s never finished.
A recent Purdue University study showed retired coal plants that aren’t near heavily populated areas could be viable sites — including the Rockport coal plant which is expected to close in three years. Some workers at the Rockport plant have expressed support for the idea.
Two other bills working their way through the legislature would allow utilities to pass along some of the cost of building small modular nuclear reactors to its customers — whether it’s part of a pilot program or not. The Senate’s version of that bill, SB 424, was passed by the Senate Utilities Committee on Thursday.
Rebecca is our energy and environment reporter. Contact her at [email protected] or follow her on Twitter at @beckythiele.
