Indy Standard

Legislation concerning the development of energy generation sources in Indiana, co-authored by State Representative Dave Hall, has reached the governor's desk for approval. The bill, known as House Enrolled Act 1007, aims to balance new generation sources construction and ratepayer costs, aligning with Indiana House Republicans' priorities.

As the state attracts more industries, its electricity demand has surpassed initial expectations. The proposed legislation seeks to provide incentives, such as tax credits, to bring small modular nuclear reactor (SMR) manufacturers to Indiana. This strategy aims to bolster industry presence and diversify energy generation sources.

"This legislation is a smart step forward as we work to meet growing energy needs without putting the cost on everyday Hoosiers," Hall stated. He emphasized the importance of SMRs in maintaining energy supply while protecting consumers from excessive rates.

SMRs represent compact energy solutions that may function independently or with similar sources. Companies with significant energy needs could employ SMRs to support generation capacity without excessively taxing the existing grid infrastructure.

The bill mandates that large load customers, those generating at least 150 megawatts for new projects, cover 80% of new generation capacity construction costs, regardless of project completion. Additionally, existing facilities in Indiana would not be closed unless the utility proves to the Indiana Utility Regulatory Commission (IURC) that closures benefit consumers financially and that new generation effectively replaces the capacity.

Furthermore, the legislation requires the Indiana Economic Development Corporation to inform the affected utility and IURC within 15 days about any new or expanding facility with a minimum 20-megawatt demand.

House Enrolled Act 1007 now awaits the governor's action to be enacted into law. For more details and to follow legislative developments, visit in.gov/gov/newsroom/2025-bill-watch.