N.J. Admin. Code § 14:5A-4.1

Current through Register Vol. 57, No. 1, January 6, 2025

Section 14:5A-4.1 - Investment manager and trustee procurement procedures

(a) In the procurement, by an electric utility, of any new decommissioning fund trustees and investment managers, bidding procedures which include public notification must be employed.

1. The selection process must take into account, but is not necessarily limited to, the following considerations:

i. Existing knowledge or demonstration of ability to obtain knowledge of Internal Revenue Service Rules relating to Nuclear Decommissioning Costs ( 26 CFR parts 1 and 602 SEC 468A );

ii. Performance record in their investment discipline including the fixed income area;

iii. Cash management capabilities;

iv. Investment manager and trustee fee structures;

v. Organizational commitment to keep abreast and maintain a presence in issues related to nuclear decommissioning trust fund management;

vi. Demonstration of sufficient resources to satisfactorily service the fund;

vii. Demonstration of a firm's ability to ensure that the assets contained in the Fund are clearly identifiable and segregated for the benefit of the nuclear facility and will not be considered assets of the managing or trustee institution;

viii. The extent to which a particular firm expands the market of existing managers or trustees to include qualified New Jersey based firms and small and minority owned firms or otherwise provides a unique quality or creates a new and useful niche;

ix. Sufficient assets or evidence of creditworthiness to ensure the value of the funds being managed or held in trust; and

x. The number of clients and the total dollar value of funds currently managed, how long the firm has been in business, and the credentials of the fund managers.

2. Each electric utility must demonstrate to the Board that Requests For Proposals (RFPs) are made widely available to interested and qualified investment managers and trustees, both in and out of state.

(b) Electric utilities shall notify the Board at least four weeks prior to the solicitation of new investment managers or trustees. Said notification shall include:

1. A copy of the Requests For Proposals to be sent to potential investment managers and trustees; and

2. A list of firms that will be sent RFPs and the manner in which the utility chose the distribution.

(c) Further notification to the Board is required as follows:

1. Identification of the firms that responded to the RFPs, the firms chosen to be interviewed and the reason for selection; and

2. Final selection of the firms and the reason for selection including a discussion of the criteria as established pursuant to (a) above.

(d) Copies of all executed trust or fund management agreements, or amendments thereto, shall be filed with the Board.

N.J. Admin. Code § 14:5A-4.1