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 July 24, 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
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ITEM 5. OTHER EVENTS
The Company has been informed by Public Service Electric and
Gas Company (PSE&G) through a Current Report on Form 8-K dated
July 19, 1995 of PSE&G and its parent, Public Service Enterprise
Group Incorporated (Enterprise) that, as previously reported,
Salem Unit No. 1 and Unit No. 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 by PSE&G, 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 PSE&G is satisfied that the units
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 No. 1
will be ready to return to service in the first quarter of 1996
and Unit No. 2 during the second quarter of 1996, although no
assurances can be given. During the outages, Unit No. 1 will
undergo a previously scheduled refueling and Unit No. 2 will
undergo a partial refueling which will allow PSE&G to eliminate a
full refueling outage for Unit No. 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; organizational 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.
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PSE&G estimates that its share of additional operating and
maintenance expenses associated with restart activities will
amount to approximately $17 million.*
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* PECO Energy and PSE&G each own 42.59% of Salem. As a result,
based on PSE&G's estimates, PECO Energy's share of additional
operating and maintenance expenses associated with restart
activities would also amount to approximately $17 million.
As previously reported by PSE&G, an 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.
As previously reported by PSE&G, 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.
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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
J. B. Mitchell
Vice President - Finance
and Treasurer
July 24, 1995
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