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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 20, 1995
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DELMARVA POWER & LIGHT COMPANY
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(Exact Name of Registrant as Specified in Charter)
Delaware and Virginia I-1405 51-0084283
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
800 King Street, P.O. Box 231, Wilmington, Delaware 19899
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code 302-429-3448
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None
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
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The following information updates matters related to Salem Units 1 and 2
previously reported under "Item 1-Business" of Part I of Delmarva Power &
Light Company's (the Company) 1994 Annual Report on Form 10-K, "Item 5-Other
Information" of Part II of the Company's Report on Form 10-Q for the quarter
ended March 31, 1995, and "Item 5-Other Events" of the Company's Current
Report on Form 8-K dated June 14, 1995. The following is excerpted from
information reported in the Current Report on Form 8-K dated July 19, 1995,
by the operator of the facility, Public Service Electric and Gas Company
(PSE&G).
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As previously reported, Salem Unit 1 and Unit 2 were taken out
of service on May 16, 1995 and June 7, 1995, respectively. PSE&G
subsequently informed the Nuclear Regulatory Commission (NRC) that
it had determined to keep the Salem units shut down pending review
and resolution of certain equipment and management issues, and NRC
agreement that each unit is sufficiently prepared to restart. On
June 9, 1995, the NRC issued a Confirmatory Action Letter
documenting these commitments by PSE&G.
As previously reported, PSE&G is engaged in a thorough
assessment of equipment issues that have affected Salem's operation
and the related management systems and will keep the units off line
until it is satisfied that they are ready to return to service and
operate reliably over the long term. While PSE&G has not yet
finalized its analysis and assessment activities, it currently
estimates that Unit 1 will be ready to return to service in the
first quarter of 1996 and Unit 2 during the second quarter of 1996,
although no assurances can be given. During the outage, Unit 1
will undergo a partial refueling which will allow PSE&G to
eliminate a full refueling outage for Unit 2 scheduled for 1996.
The restart plan is focused on improving equipment reliability and
operability. PSE&G intends to reduce maintenance and engineering
backlogs of work and to strengthen its management processes before
it returns the units to service.
PSE&G has developed and is implementing a number of detailed
action plans designed to improve performance in 10 key areas:
operations, management, engineering, maintenance, outage
activities, work controls, organization self-assessment, corrective
action, equipment reliability and training. Before restarting the
units, PSE&G will complete a thorough review of station systems and
gain concurrence from the NRC that these action plans have been
satisfactorily completed. No assurances can be given as to what
actions the NRC ultimately might take.
PSE&G estimates that its share of additional operating and
maintenance expenses associated with restart activities will amount
to approximately $17 million. Replacement power costs incurred
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while the units are out of service are expected to be approximately
$5 million per month, per unit. PSE&G does not presently foresee
any shortage in available capacity to satisfy customer demands for
energy.
A previously reported NRC enforcement conference, relating to
incorrectly positioned valves at Salem and a number of other
apparent violations relating to the NRC's quality assurance
criteria and inadequate or ineffective corrective actions affecting
safety-related equipment and components, has been rescheduled for
July 28, 1995. PSE&G cannot predict what, if any action the NRC
may take with respect to these apparent violations.
PSE&G has recently undertaken a number of senior nuclear
management changes, including the hiring from outside of PSE&G of a
Senior Vice President - Nuclear Operations, a Senior Vice President
- Nuclear Engineering, a General Manager - Salem Operations, and a
Director - Quality Assurance and Nuclear Safety Review.
* * *
Delmarva estimates that its share of additional operational and
maintenance expenses associated with the Salem restart activities will amount
to approximately $3 million. Replacement power costs incurred while the
units are out of service are expected to be approximately $800,000 per month
per unit. The Company cannot determine at this time whether the additional
operation and maintenance costs and replacement costs will be recoverable.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Delmarva Power & Light Company
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(Registrant)
Date: July 20, 1995 /s/ Dale. G. Stoodley
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Dale G. Stoodley
Vice President
and General Counsel
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