Public Service Enterprise Group Nuclear Decommissioning Trust

The trust is mandated by the Nuclear Regulatory Commission and state utility regulators to pre-fund the eventual shutdown, dismantlement, and site restoration of PSEG's nuclear generating stations. Its purpose is to ensure that the substantial costs of decommissioning are paid by current ratepayers rather than deferred to future generations. PSEG Power LLC acts as the sponsor, collecting contributions through utility rates and directing them into the trust, which is overseen by PSEG's senior leadership team.

The trust has a finite, terminal mandate: every dollar invested must ultimately be spent on decommissioning activities, not preserved in perpetuity. This forces a conservative allocation dominated by investment-grade fixed income and highly liquid public equities, with only modest exposure to illiquid alternatives. The primary goal is to keep pace with a growing liability estimate, avoiding the risk of a funding shortfall that would increase future ratepayer costs.

PSEG's senior leadership governs the trust. Chair and CEO Ralph LaRossa sets the overarching guidelines, EVP and General Counsel Grace H. Park manages legal and regulatory strategy, and Charles McFeaters, as President and Chief Nuclear Officer, oversees the nuclear operations that define the trust's eventual drawdown schedule. Day-to-day asset management is typically delegated to external institutional managers under policy guidelines set by the trust.

No. PSEG does not publicly itemize the trust's specific holdings or exact manager roster. Investment disclosures appear in aggregate within PSEG's annual financial statements, which confirm funding status relative to decommissioning liability estimates. Regulatory filings with the Nuclear Regulatory Commission and New Jersey Board of Public Utilities provide periodic funding adequacy assessments but not granular portfolio composition.

Once all covered nuclear units are fully decommissioned — a process that can stretch decades after plant closure — the trust is dissolved. Any remaining funds would return to the sponsor or reduce future ratepayer obligations, while any shortfall would require additional recovery from ratepayers. This terminal structure is unique among institutional investment vehicles and anchors the trust's conservative posture.

While the trust holds real estate and private credit alongside fixed income and public equities, its mandate is tied to decommissioning existing nuclear facilities rather than building new energy assets. Any alternative investment exposure is incidental to the liability-matching mission, not a proactive energy-transition strategy. PSEG's broader corporate and foundation activities engage in sustainability efforts separately from the trust.

The PSEG Foundation is a separate philanthropic entity entirely walled off from the decommissioning trust. Foundation assets fund community and charitable programs and cannot be tapped to cover nuclear decommissioning obligations. This structural separation ensures that ratepayer-contributed funds remain ring-fenced for their regulatory purpose.