COLUMBUS, Ohio — American Electric Power is seeking federal funding to explore the possible development of small modular nuclear reactors on two company-owned properties, potentially reshaping electricity production in Indiana and Virginia.
AEP’s Indiana Michigan Power has identified the Rockport Plant property in Spencer County, Indiana, as a prospective SMR site. Its Appalachian Power subsidiary is considering Joshua Falls in Campbell County, Virginia. Both projects are in the early stages, with separate federal grant applications submitted for the Early Site Permit process.
For the Rockport location, Indiana Michigan Power is partnering with the Tennessee Valley Authority and GE Hitachi Nuclear Energy. The utility is seeking $50 million to conduct site assessments, licensing steps, and community outreach. The potential reactor model, the GEH BWRX-300, could produce up to 300 megawatts of electricity.
Appalachian Power, meanwhile, has filed for $35 million to cover Early Site Permit costs for Joshua Falls. No specific reactor technology has been chosen. The company said it will assess multiple SMR designs to meet Virginia’s energy needs.
AEP President and CEO Bill Fehrman said the growing demand for electricity has prompted the company to examine an array of options, from natural gas to fuel cells. Fehrman said smaller-scale reactors could open new avenues in regions previously considered unsuitable for large nuclear facilities.
Still, nuclear power projects, including SMRs, must undergo extensive reviews. Officials and community members often cite safety and long-term waste management as key concerns. While proponents argue that SMRs incorporate modern safeguards, critics point to potential accidents and the complexity of storing radioactive material.
In Spencer County, local leaders support the idea, saying a future reactor could create jobs and boost tax revenue. Some residents have expressed reservations, particularly regarding environmental impact and waste disposal.
In Virginia, public meetings in December 2024 drew more than 100 people to discuss health and safety, emergency preparedness and the broader implications of nuclear storage. Appalachian Power has said it will remain in contact with community members as the process unfolds.
A 2022 study by Stanford University and the University of British Columbia found that SMRs may generate higher volumes of certain types of nuclear waste compared with conventional reactors. Environmental groups argue this complicates disposal efforts, while SMR advocates say advanced reactor designs could reduce those risks.
AEP’s proposals have been submitted under the U.S. Department of Energy’s Generation III+ Small Modular Reactor Program, which provides up to $900 million for advanced nuclear projects. If either site is approved:
- Indiana Michigan Power would begin the Early Site Permit process, including environmental studies and preliminary safety evaluations.
- Appalachian Power would use its grant for site suitability work, pending approval from the Virginia State Corporation Commission under Code § 56-585.1:15.
Even with federal backing, any SMR would likely be at least a decade away from commercial operation. Nuclear plants face multiple layers of local, state and federal scrutiny, partly to ensure public safety and environmental protection.
Several SMR ventures nationwide are navigating similar licensing and construction challenges. While some see SMRs as a cleaner power source that can help reduce carbon emissions, others remain concerned about unresolved issues around nuclear safety and waste storage.
AEP plans additional community meetings in Indiana and Virginia this year to gauge local sentiment and address questions. State regulatory bodies will ultimately decide whether the projects can move ahead, and any construction permit would require approval by the Nuclear Regulatory Commission and other agencies.
AEP officials await the Department of Energy’s decision on the grant applications. Those funds, if awarded, could determine whether the Indiana and Virginia sites advance toward what some view as a new era in nuclear power.