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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 December 12, 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, June 30, 1995 and September 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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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, has been 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 Unit 1 and
Unit 2. On December 11, 1995, PSE&G presented its restart plan
for both Salem units to the NRC at a public meeting. Based upon
this assessment, Salem Unit 1, as previously disclosed,
continues to be scheduled to return to service in the second
quarter of 1996. Unit 2 is now scheduled to return in the third
quarter of 1996. As previously disclosed, during these outages
Salem Unit 1 will undergo a previously scheduled refueling
outage and Salem Unit 2 will undergo a partial refueling which
will eliminate a full refueling outage for Unit 2 originally
scheduled for 1996.
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Nuclear Operations
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As previously reported, PSE&G 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 as PSE&G's share of Salem
operating and maintenance expenses for the year. PSE&G now
estimates that its share of additional 1996 operating and
maintenance expenses associated with Salem restart activities
will be approximately $22 million, while incremental capital
costs are expected to amount to $7 million. However, PSE&G does
not presently expect its total 1996 operating and maintenance
expenses to exceed those of 1995.
In addition to the Salem units, PSE&G also owns a 95%
interest in, and operates, the Hope Creek Generating Station and
a 42.49% interest in the Peach Bottom Atomic Power Station,
Units 2 and 3, respectively, which are operated by Philadelphia
Electric Company. Hope Creek is currently undergoing a
refueling and maintenance outage which commenced November 11,
1995. Hope Creek is presently scheduled to return to service in
early February 1996.
Replacement power costs incurred while the units are out of
service are expected to be approximately $5 million per month,
per unit for Salem and approximately $10 million per month for
Hope Creek. PSE&G currently anticipates that the 1995 aggregate
capacity factor of its five nuclear units will range from 62% to
63%, below the 65% minimum annual standard established by the
BPU, resulting in a penalty ranging from $3 million to $4
million. PSE&G presently estimates that its 1996 aggregate
capacity factor for such units will exceed the 65% minimum
annual standard.
New Matter
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Energy Development Corporation (EDC)
On December 6, 1995, Enterprise announced that it will
pursue the divestiture of EDC, its non-utility oil and gas
exploration and development business based in Houston, Texas.
Enterprise anticipates that it will divest EDC in a public or
private transaction during 1996. The decision stems from
Enterprise's belief that EDC is not fully recognized in the
value of its Common Stock and that, with the advent of the
energy futures market, it is not necessary for it to own large
volumes of oil and gas. EDC has operations encompassing about
4.9 million net acres in 13 states, offshore in the Gulf of
Mexico, and both onshore and offshore in the United Kingdom,
Argentina, Senegal, Tunisia and China. At November 30, 1995,
EDC had approximately 900 billion cubic feet equivalent of
proved reserves, of which approximately 67% are natural gas.
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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: December 12, 1995
