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Substantial Increase in Nuclear Decommissioning Funds

In a recent analysis published by Callan, a well-respected institutional investment consulting firm, the findings from the 2025 Nuclear Decommissioning Funding Study reveal a noteworthy escalation in the balances of nuclear decommissioning trusts (NDTs). According to the report, the total fund balance reached approximately $100 billion in 2024, marking a staggering increase of nearly $20 billion, or 23.5%, since 2022.

Julia Moriarty, the author of the study and co-manager of Callan's Capital Markets Research group, attributed this impressive growth primarily to the robust performance of the stock market. Specifically, she noted that the Standard & Poor's 500 index surged by 58% over the 2023-2024 period, substantially bolstering the NDT assets. Meanwhile, the associated costs for nuclear decommissioning rose by only 2.3% during the same timeframe, which led to an impressive jump in the overall funded status of nuclear decommissioning efforts—from 82.5% in 2022 to 99.6% in 2024.

The study draws on data from 51 utilities—24 investor-owned and 27 public power utilities—operating 94 nuclear reactors across the U.S., including 14 non-operating reactors. These trusts are crucial for covering the costs of decommissioning closed nuclear facilities, ensuring environmental safety and financial accountability.

Key Findings from the 2025 Study

• - Substantial Growth: The NDT fund balances rose from $81 billion in 2022 to $100 billion in 2024, driven largely by favorable stock market conditions.
• - Peak Funding Levels: The study revealed that the total funding level reached an all-time high of 99.6% in 2024—the best since tracking began in 2007. This was a significant improvement from the 82.5% funding level recorded in 2022.
• - Dominance of Investor-Owned Funds: Investor-owned funds represented about 89% of the total NDT fund balance, while the remaining 11% was attributed to public power funds.
• - Record Asset Levels: The assets as a percentage of costs achieved record highs: 103.7% for investor-owned utilities and 76.4% for public power utilities in 2024.
• - Decline in Contributions: The total contributions made to the funds decreased to $163 million in 2024, a dramatic reduction of $208 million, or 56%, compared to $371 million in 2022.
• - Increased Cost Estimates: Since 2010, the overall cost estimates for decommissioning have escalated by over $30 billion, surpassing $100 billion by 2024 with a 2.3% increase from the previous year.

As nuclear energy continues to play a significant role in the United States' energy landscape, understanding the financial foundations supporting the decommissioning process is imperative. The trends observed in this report provide a vital glimpse into the economic underpinnings ensuring that these facilities are dismantled safely and responsibly.

Callan LLC, founded in 1973 as an employee-owned investment consulting firm, remains committed to providing clients with creative and tailored investment solutions guided by proprietary research and extensive industry experience. Today, Callan advises on assets exceeding $3 trillion, solidifying its position as one of the largest independently owned investment consulting firms in the nation. For more information on their services and research, visit Callan.com.