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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 June 13, 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 Report on Form 10-Q for the quarter ended March 31, 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
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;
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Nuclear Operations (Continued)
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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.
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 exprects 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.
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Nuclear Operations (Continued)
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In addition, the NRC has informed PSE&G that the enforcement
conference relating to certain incorrectly positioned valves at the
Station, 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.
PSE&G is committed to safe and conservative operations
before production. PSE&G is fully committed to take whatever action
is necessary to return Salem to reliable and event free operation.
Hope Creek
The NRC has scheduled an enforcement conference on June 16,
1995 relating to the previously reported release of a small amount of
low-level radioactive materials to the atmosphere on April 5, 1995 at
Hope Creek Generating Station. The release did not exceed any Federal
limits nor pose any danger to the public or plant employees; however,
a trailer was driven off site which exceeded PSE&G's offsite release
limits. PSE&G cannot predict what action, if any, the NRC may take
with regard to the proposed notice of violation.
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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: June 13, 1995
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