The only documentation for this plugin is in the help option. It presumes you know what power spectral density means and also that you know what Welch's method (overlapping tapered squared FFTs) means.
I suppose you could do a similar calculation in matlab, if matlab (about which I know very little) has a PSD estimation function. You could then read in an AFNI dataset to matlab -- using Ziad's matlab I/O functions -- and then process it through the matlab PSD function, and then write a new dataset back to disk -- again using Ziad's matlab I/O functions for AFNI datasets.