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: May 23, 1996
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
On May 23, 1996, Public Service Electric and Gas Company (PSE&G)
issued the following press release:
"PSE&G, CO-OWNERS TO PURCHASE STEAM GENERATORS FOR SALEM NUCLEAR UNIT
1 FROM UNFINISHED SEABROOK NUCLEAR UNIT 2
Public Service Electric and Gas Company (PSE&G) and the co-owners
of the Salem Nuclear Generating Station will purchase unused steam
generators from the unfinished Seabrook Nuclear Unit 2 in New
Hampshire for installation in Salem Nuclear Unit 1. PSE&G, operator
of the Salem facility and co-owners PECO Energy Company, Atlantic
Electric Company, and Delmarva Power and Light Company, jointly
announced the agreement today (May 23, 1996).
By using these steam generators, PSE&G said that it expects to
return Salem 1 to operation in the second quarter of 1997. Salem Unit
2 is on schedule for return to service on Aug. 27, 1996. The return
of both units is subject to Nuclear Regulatory Commission concurrence.
"With this steam generator strategy, we believe we will be able
to keep Salem 1 on track in our initiative to assure that our nuclear
units operate at a high level of excellence, in terms of safety,
reliability and sustained performance," said Leon Eliason, president
of PSE&G Nuclear Business Unit. "We are fortunate that the Seabrook
steam generators are available and are technically and economically
feasible."
The two units at Salem have been out of service since May 16 and
June 7, 1995, respectively. Since that time, PSE&G has been engaged
in a thorough reassessment of the units' equipment, work processes,
and personnel. In February, tests indicated microscopic cracks in
steam generator tubes at Salem 1. PSE&G has been conducting
additional inspections and analyses to determine whether the steam
generators should be repaired or replaced. In April, the company
announced that it had identified options that could make a return to
service in the first half of 1997 a possibility. The decision to
replace the steam generators, Eliason said, proved the best option
from both an operational and financial perspective.
The company plans to purchase four Westinghouse Model F steam
generators that had been installed in Seabrook 2, which was never
completed and is now owned by Northeast Utilities and 10 other co-
owners. They will be shipped primarily by barge and are expected to
arrive at the Salem site before the end of the year.
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PSE&G estimates that the cost of purchasing and installing the
Seabrook steam generators is expected to be between $150 million and
$170 million, of which PSE&G's share would be $64 to $72 million.
Steam generators are large heat exchangers in which hot water
from the reactor passes through tubes and converts surrounding water
into steam that drives the unit's turbines to produce electricity.
Each existing Salem unit steam generator contains 3,388 U-shaped tubes
about 40-feet high and 7/8-inch in diameter.
Westinghouse's Model F steam generator is a newer technology than
the models they will replace. Model F steam generator tubes are made out
of heat-treated Inconel and they have performed well in nuclear plants
throughout the world.
The Salem station consists of two 1,100-megawatt pressurized
water nuclear reactors located along the Delaware River in Salem
County, New Jersey. PSE&G operates the station and owns 42.59% of the
facility. The other co-owners are PECO Energy Company, which owns
42.59%, and Atlantic Electric Company and Delmarva Power and Light
Company, which each own 7.41%. Each Salem unit represents
approximately 4% of PSE&G's installed generating capacity and
approximately 2% of its assets.
PSE&G is the principal subsidiary of Public Service Enterprise
Group Incorporated, a diversified energy and energy services company."
________________________
1 PECO Energy and PSE&G each owns 42.59% of Salem. As a result, based on
PSE&G's estimates, PECO Energy's share would be $64-$72 million.
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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
\s\ J. B. Mitchell
Vice President - Finance
and Treasurer
May 23, 1996
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