House Republicans reject Pierce amendment to protect Hoosiers from higher utility costs

Today, Feb. 10, State Rep. Matt Pierce (D-Bloomington) offered amendments to House Bill 1007 that would have prevented utility customers from bearing the cost of failed nuclear power plant projects. The first amendment would have removed a provision in the bill that allows utilities to charge their customers for planning costs for Small Modular Reactors (SMRs) even when they decide to abandon the SMR project. The other amendment would have prevented utilities from charging their customers for SMRs that are not yet generating any electricity. An existing "Construction Work in Progress" (CWIP) law allows utilities to charge customers during the construction of an SMR, including cost overruns, before the SMR provides any benefit to utility customers. No SMR project has been completed in the United States. The most recent SMR attempt was abandoned in Utah after estimated project costs ballooned from around $3 billion to $9.3 billion.

Pierce released the following statement on his amendments:

"HB 1007 allows utilities to gamble on expensive, unproven technology with utility customers' money. It shifts the risk of speculative projects from Utility corporations onto the backs of utility ratepayers. If HB 1007 becomes law, it will give a green light for utilities to pursue one of the most expensive forms of energy that will take years to build. I fear customers will be saddled with higher rates to pay for a boondoggle.

"Once again, the House of Representatives missed an opportunity to protect utility customers from higher rates."