Japan Atomic Power Co. is considering setting up a subsidiary specializing in the scrapping of retired nuclear reactors at domestic power plants, sources close to the matter said Tuesday.

Japan Atomic Power, a wholesaler of electricity generated at its nuclear plants, is planning to have U.S. nuclear waste firm EnergySolutions Inc. invest in the reactor decommissioning service unit, which would be the first of its kind in Japan, the sources said.

The Tokyo-based electricity wholesaler, whose shareholders are major domestic power companies, will make a final decision by the end of this year, they said.