FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report June 13, 1995
PECO ENERGY COMPANY
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-1401 23-0970240
(State or other (Commission (IRS Employer
jurisdiction of file number) Identification
incorporation) Number)
230l Market Street, Philadelphia, Pennsylvania 19101
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including
area code: (215) 841-4000
PAGE
<PAGE>
ITEM 5. OTHER EVENTS
The Company has been informed by Public Service Electric and
Gas Company that:
On May 16, 1995, Salem Unit 1 was shut down, as required by
its technical specifications, due to the inoperability of certain
switch gear room supply fans. On June 7, 1995, Salem Unit 2 was
also shut down, as required by its technical specifications, due to
both trains of its residual heat removal system being inoperable.
During the shutdown process, Unit 2 tripped due to loss of
electrical power to certain equipment within the Station. As a
result of these shutdowns, and of PSE&G's continued discovery of
equipment deficiencies at Salem, PSE&G informed the Nuclear
Regulatory Commission (NRC) that it had determined to keep both
Salem units shut down pending completion of:
- - A Significant Event Response Team (SERT) review of the
circumstances leading to, and causing the Unit 2 reactor trip;
- - a special team review of long standing equipment reliability
and operability issues, including corrective maintenance and
operator work-arounds; the effectiveness and quality of the
management oversight and review of such matters;
- - a meeting with the NRC to describe, discuss and gain NRC
agreement on PSE&G's plan for the performance of an
operational readiness review (ORR) in support of startup of
each Salem unit;
- - performance of the ORR at each unit; and
- - meetings with the NRC staff to describe the outcome and
conclusions of each ORR and to reach agreement with the NRC
staff that each unit is sufficiently prepared to restart.
PAGE
<PAGE>
On June 9, 1995, the NRC issued a Confirmatory Action Letter
documenting these commitments by PSE&G. In its Confirmatory Action
Letter, the NRC noted that while Unit 2 was stabilized and shut
down, its operators experienced several challenges that required
their intervention due to the unexpected loss of power and long
standing equipment performance issues. The NRC further noted that
operator performance relative to timely recognition and resolution
of the specific safety and technical concerns, prior to PSE&G's
decision to shut down the units, was deficient.
PSE&G is in the process of developing a work plan to meet the
requirements for restart of the units and, accordingly, it is
presently unable to predict when either unit will return to
service. Although PSE&G presently expects that both units will be
in outage status for at least several months, it does not presently
foresee any shortage in available capacity to satisfy customer
demands for energy.
Also on June 9, 1995, the NRC reported the results of a NRC
Special Inspection Team (SIT) it formed to assess how effectively
Salem is currently performing from a safety perspective in
conducting daily activities in the areas of problem identification,
prioritizing and conducting work on plant equipment, and management
oversight of plant performance. While the SIT identified some
areas of strength at Salem as well as areas where improvements are
being made, the team also identified a number of findings that
performance in the areas of configuration control, operator work -
arounds and equipment operability determinations have not
substantially improved and constitute a burden on the plant
operators to safely operate the units, especially during plant
events.
In addition, the NRC has informed PSE&G that the enforcement
conference relating to certain incorrectly positioned valves at the
Stations, previously scheduled for June 1, 1995, has been
rescheduled for June 23, 1995. The NRC has informed PSE&G that
this conference will also address five additional apparent
violations relating to the NRC's quality assurance criteria. PSE&G
cannot predict what, if any, action, the NRC may take with respect
to these apparent violations.
PAGE
<PAGE>
SIGNATURES
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.
PECO ENERGY COMPANY
/S/ J. B. MITCHELL
J. B. Mitchell
Vice President - Finance
and Treasurer
June 13, 1995
<PAGE>
