Long Island Power Authority Nuclear Decommissioning Trust

The trust is funded to decommission LIPA's 18% share of Nine Mile Point Unit 2, an operational nuclear station in Oswego, New York, and the fully retired Shoreham Nuclear Power Station on Long Island. Both assets were acquired through LIPA's 1998 merger with the Long Island Lighting Company.

The New York State Department of Public Service provides regulatory oversight, while the LIPA Board of Trustees holds fiduciary responsibility for investment decisions. The trust must file regular reports demonstrating that its assets are sufficient to meet estimated future decommissioning costs under state-approved formulas.

LIPA's Board, with support from external investment consultants, allocates the trust across public equities, fixed-income instruments, and alternative assets. The strategy follows a liability-driven glide path that shifts toward more conservative holdings as major decommissioning expenditures approach.

No. The trust assets are held in a qualified external account, legally separate from ratepayer funds and LIPA's operational budget. The Utility Debt Securitization Authority handles distinct refinancing activities, ensuring the decommissioning pool remains walled off from other obligations.

The trust will be wound down once all radiological cleanup, spent-fuel management, and site restoration work is completed and approved by regulators. Any residual funds would be handled according to New York State law and the trust's governing documents.