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HB 862

Permit electric distribution utility to operate nuclear facility

136th Legislature (2025-2026) Introduced by Adam Mathews and 1 co-sponsor

Ohio may authorize utilities to fund and operate a nuclear plant via a Nuclear Project Financing Order with 20-year customer contracts and regulated cost recovery.

Referred to committee
#electricutilities #utilities
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Bill Summary · HB 862

Summary of HB 862 (Ohio, 136th General Assembly)

  • Purpose and intent

    • The bill authorizes electric distribution utilities (EDUs) to construct, own, and operate nuclear generating facilities in limited circumstances, tied to a dedicated Nuclear Project Financing framework.
    • It also creates a new role, the State Nuclear Coordinator, to streamline permitting, siting, and coordination across state agencies, federal entities, and communities, and to report on progress and needs.

  • Key provisions and changes

    • Ohio Nuclear Development Authority (ONDA)
    • Expanded powers to support nuclear deployment, including adopting bylaws, developing strategic plans, fostering public-private partnerships, supporting education programs related to Ohio’s isotope industry, and appointing a State Nuclear Coordinator (4164.11).
    • Appointment of the State Nuclear Coordinator by a majority vote of ONDA for a five-year term (4164.20). The coordinator serves as an internal advocate/ombudsperson for nuclear facilities, coordinates permitting timelines, engages with federal agencies (e.g., NRC, DOE), communities, and issues an annual progress report.
    • Powers and definitions (major utility facilities, environmental certificates, etc.)
    • Revisions to major utility facility definitions and related terms to support nuclear siting, with updated environmental and siting thresholds (4906.01, 4906.03; various definitions in 4906.01).
    • Powering framework for nuclear projects (new Chapter 4928 series)
    • Establishes a Nuclear Project Financing Order process (4928.761 et seq.), enabling EDUs to pursue a nuclear project financing order (NPFO) to fund and operate a nuclear facility.
    • Requires one or more retail participation agreements (RPAs) between the EDU and customers for a minimum term of 20 years, with a renewal option. RPAs ensure customers pay net prudently incurred costs tied to the nuclear facility.
    • Separate ratemaking order to reflect facility in rate base and recovery of prudently incurred costs through electric distribution rates, with explicit protections and timing for cost recovery during the RPAs (4928.765 onward).
    • An audit framework to compare actual facility costs against market prices after RPAs end; decisions on cost recovery depend on whether facility costs are above or below market rates (4028.765-765(D)).
    • Provisions for the transfer/sale of the facility, with net sale proceeds credited to customers.
    • Application and expedited review provisions
    • The Public Utilities Commission (PUCO) would handle NPFO applications with defined timelines for completeness, hearings, and final decisions (4928.763).
    • Accelerated review rules for certain construction certificates (e.g., lines, plants). Special expedited pathways include projects tied to brownfields or former coal mines, as well as priority investment areas.
    • 4928.41x series: Additional requirements
    • Repeals and replaces existing sections related to nuclear facility financing and the broader electricity market, establishing the regulatory, financial, and governance framework to support nuclear projects.

  • Who would be affected

    • Electric distribution utilities seeking to deploy nuclear generation under NPFOs.
    • Electric customers who participate in RPAs and who would bear the costs recovered through rates if costs are prudently incurred.
    • Prospective developers, project sponsors, and communities near proposed nuclear facilities.
    • State agencies and local governments interacting with the State Nuclear Coordinator and ONDA.

  • Procedural and timeline aspects

    • NPFOs: specific timelines for application completeness, hearings, and final decisions (generally up to 360 days, with extensions under certain conditions; deemed approvals if timelines are not met).
    • RPAs: 20-year minimum term with a renewal option; radar for revenue and cost recovery during the term.
    • Post-RPA audits: conducted every three years to determine if costs should continue to be recovered, with a defined timeline for conclusions.
    • The bill creates a new coordinator role and expands ONDA authority, aligning state permitting, education, and coordination efforts around nuclear deployment.

Note: The bill introduces a comprehensive framework to enable nuclear generation within Ohio under a financing order mechanism, with consumer cost recovery protections and expedited review pathways, subject to existing environmental and statutory requirements.

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

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