U.S. nuclear decommission trust planning: Romancing a millstone?

Nuclear utilities face unknown financial liabilities for plant decommissioning that exceed the value of present trust fund collections. The situation is a strong bet to get worse than better. Will cost escalation experienced in construction recur in decomissioning? If so, then many Nuclear Decommissioning Trusts (NDTs) are underfunded in real terms. The full consequence of an unfunded liability recognized in the later years of operation will be a ratcheting of collection rates to catch up to the revised decommission estimate. NDT planning should incorporate a conservative set of assumptions based on US experience. An NDT should be treated as a trust fund and not a pay-more-as-you-go fund. Levelization of payments will provide some added earnings and more cash in the NDT fund should a reactor not reach its expected life of 40 years. Facing up to the problem and potential remedial action now is imperative