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HB 74

Electric utilities; recovery of development costs associated with small modular reactor.

2026 Regular Session Introduced by Liz Guzmán and 2 co-sponsors

Virginia bill allows electric utilities to charge ratepayers for small modular reactor development costs upfront, spreading nuclear technology expenses across all customers.

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Bill Summary · HB 74

Legislative bill overview

HB 74 would allow Virginia electric utilities to recover development and deployment costs associated with small modular reactor (SMR) technology through rate mechanisms, rather than bearing these costs independently. This would enable utilities to pass SMR-related expenses to ratepayers during the development phase before the reactors generate revenue.

Why is this important

Small modular reactors represent a significant shift in nuclear energy infrastructure, potentially offering decentralized, flexible power generation. However, development costs are substantial and uncertain, creating a financial barrier for utilities. This bill attempts to reduce that barrier by spreading costs across the customer base, which could accelerate SMR deployment but will directly impact electricity rates for all consumers.

Potential points of contention

  • Cost allocation and ratepayer burden: Customers would fund development of technology that may never materialize or may benefit primarily large industrial users, raising fairness questions about who should bear early-stage technology risks
  • Regulatory oversight gaps: The bill's fiscal impact statement raises questions about whether the State Corporation Commission has adequate mechanisms to prevent cost overruns, inefficiency, or cost-shifting from utilities
  • Competitive market concerns: Recovery mechanisms could disadvantage other energy sources (renewables, natural gas) competing for investment and may reduce incentives for utilities to control development costs

Compiled from official sources — confirm details with the bill’s official record.

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