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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report October 17, 1995
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Exact name of registrant as specified in its charter)
New Jersey 1-9120 22-2625848
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
80 Park Plaza, P. O. Box 1171
Newark, New Jersey 07101-1171
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 201-430-7000
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(Exact name of registrant as specified in its charter)
New Jersey 1-973 22-1212800
(State or other Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
80 Park Plaza, P. O. Box 570
Newark, New Jersey 07101-0570
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 201-430-7000
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Item 5. Other Events.
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The following information updates certain matters
previously reported to the Securities and Exchange Commission
under Item 1 - Business of Part I of the Annual Report on Form
10-K for 1994 and Part II of the Reports on Form 10-Q for the
quarters ended March 31, 1995 and June 30, 1995 of Public
Service Electric and Gas Company (PSE&G) and its parent,
Public Service Enterprise Group Incorporated (Enterprise).
Nuclear Operations
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Salem
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) of its determination 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.
PSE&G, as previously reported, is engaged in a thorough
assessment of Salem to identify the scope of work necessary to
achieve safe, sustained and reliable operation. PSE&G has
stated that it 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.
PSE&G has completed its rigorous examination of Salem
Unit 1 and its assessment of Unit 2 is continuing. Work on
the 46 systems critical to Salem 1 is continuing, including
those common with Unit 2, with more than 25% of necessary work
activities completed and many others initiated. While PSE&G
had previously estimated that Salem 1 would return to service
in the first quarter 1996, as a result of its completed
assessment, PSE&G now expects the Unit to return in the second
quarter of 1996, assuming receipt of required NRC
authorization, as to which no assurance can be given.
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Nuclear Operations (Continued)
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The work scope assessment for Unit 2 is currently scheduled
for completion in November 1995 for both Units. PSE&G expects
to present its final work scope assessment of both Units to
the NRC in mid-December 1995. Since, as previously indicated,
some of the work being performed relates to systems serving
both Units, the additional time needed for Unit 1 does not
necessarily mean that the current second quarter 1996 return
estimate for Unit 2 will be also extended, although no
assurance can be given. As previously disclosed, during the
outages Unit 1 will undergo a previously scheduled refueling
outage and Unit 2 will undergo a partial refueling which will
allow PSE&G to eliminate a full refueling outage for Unit 2
scheduled for 1996.
PSE&G now estimates that its share of additional 1995
operating and maintenance expenses associated with Salem
restart activities will amount to approximately $22 million,
or a total of $111 million of operating and maintenance
expenses for the year. The increase in the estimate results
from additional overtime expenses projected through year-end.
Additional costs for 1996 (net of previously budgeted amounts
for the previously scheduled 1996 refueling outage) will not
be determined until after the assessment of Unit 2 is complete
and final restart plans are developed. Replacement power
costs incurred while the units are out of service are expected
to be approximately $5 million per month, per Unit. In
addition, PSE&G currently anticipates that the 1995 aggregate
capacity factor of its five nuclear units will be
approximately 63%, below the 65% minimum annual standard
established by the BPU, resulting in a penalty of
approximately $2.3 million.
As previously reported, PSE&G has recently undertaken a
number of nuclear senior management changes. PSE&G is
committed to achieving high standards of safety and
operational performance for its nuclear program. PSE&G's
objective is to restart and run the Salem plants in accord
with these standards so as to assure long-term reliability and
reduce overall production costs in order to provide customers
serviced by Salem with reliable and economic energy.
On October 10, 1995, Enterprise received a letter from a
representative of a purported shareholder demanding that it
commence legal action against certain of its officers and
directors with regard to the current Salem shutdown.
Enterprise is presently considering the matter.
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrants have duly caused this report to
be signed on their behalf by the undersigned hereunto duly
authorized.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Registrant)
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(Registrant)
By R. EDWIN SELOVER
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R. Edwin Selover
Vice President and General Counsel
Public Service Enterprise Group Incorporated
Senior Vice President and General Counsel
Public Service Electric and Gas Company
Date: October 18, 1995
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