As a result of massive reductions in deployed nuclear warheads, and their subsequent dismantlement, large quantities of surplus weapons- grade plutonium will be stored until its ultimate disposition is achieved in both the US and Russia. Ultimate disposition has the following minimum requirements: (1) preclude return of plutonium to the US and Russian stockpiles, (2) prevent environmental damage by precluding release of plutonium contamination, and (3) prevent proliferation by precluding plutonium diversion to sub-national groups or nonweapons states. The most efficient and effective way to dispose of surplus weapons-grade plutonium is to fabricate it into fuel and use it for generation of electrical energy in commercial nuclear power plants. Weapons-grade plutonium can be used as fuel in existing commercial nuclear power plants, such as those in the US and Russia. This recovers energy and economic value from weapons-grade plutonium, which otherwise represents a large cost liability to maintain in safeguarded and secure storage. The plutonium remaining in spent MOX fuel is reactor-grade, essentially the same as that being discharged in spent UO{sub 2} fuels. MOX fuels are well developed and are currently used in a number of LWRs in Europe. Plutonium-bearing fuels without uranium (non-fertile fuels) would require some development. However, such non-fertile fuels are attractive from a nonproliferation perspective because they avoid the insitu production of additional plutonium and enhance the annihilation of the plutonium inventory on a once-through fuel cycle.