HISTORICAL LESSONS FOR NUCLEAR DECOMMISSIONING TRUST FUND INVESTMENT.

The article examines the lessons that can be derived from various nuclear decommissioning trust (NDT) fund investment strategies in the U.S. Among the cited drawbacks of a duration-matching strategy are possible increases in the liability value and decreases in the asset value of the fund. It is noted that the capital gains tax liability may offset decommissioning expenses if the NDT was able to realize majority of the capital gains when decommissioning begins. The authors suggest investing in short- to intermediate-maturity debt strategies.