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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 (Date of earliest event reported) July 22, 1996
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Exact name of registrant as specified in its charter)
State of 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)
State of 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
and under Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operation ("MD&A") of the Annual Reports on
Form 10-K for the year ended December 31, 1995; and under Item 2 -
MD&A of Part I and under Item 5 - Other Information of Part II of the
Reports on Form 10-Q for the quarter ended March 31, 1996 of Public
Service Electric and Gas Company ("PSE&G") and of its parent, Public
Service Enterprise Group Incorporated ("Enterprise").
PSE&G - Nuclear Operations - Salem
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Reference is made to the press release of Enterprise and PSE&G, dated
July 22, 1996, a copy of which is attached hereto as Exhibit 99,
announcing PSE&G's decision to extend the restart schedule of its Salem
Nuclear Generating Station, Unit 2.
Item 7. Financial Statements and Exhibits
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Exhibit
Number
99 Enterprise and PSE&G press release dated July 22, 1996.
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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 ROBERT C. MURRAY
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Robert C. Murray
Vice President and Chief Financial Officer
Public Service Enterprise Group Incorporated
Senior Vice President and Chief Financial Officer
Public Service Electric and Gas Company
Date: July 22, 1996
Exhibit 99
July 22, 1996
PSE&G NUCLEAR UPDATE:
SALEM AND HOPE CREEK GENERATING STATIONS
Public Service Electric and Gas Company announced today (July 22,
1996) that refurbishment and comprehensive testing of its Salem 2 nuclear
unit will continue well into the fourth quarter of this year .
"We had hoped to conclude our work and return the unit to service by
late August," said Leon R. Eliason, PSE&G's chief nuclear officer and
president of its nuclear business unit. "In fact, while we have made
substantial progress in upgrading the unit's 46 major systems, some
originally identified work remains to be done. Further, as we restored some
components in these systems, we determined the need for additional work
and testing not anticipated in our original schedule. "
As refurbishment is being completed, Eliason said, PSE&G will
conduct comprehensive integrated testing of plant systems prior to loading
fuel. "This will enable us to demonstrate confidence in the work done in
restoring these systems to reliable performance," he said.
Eliason emphasized that the revised schedule for Salem 2 reflects
PSE&G's commitment to safe, sustained and reliable operation of its nuclear
units. "We have consistently said that we will not return the Salem units to
service until they are ready to meet this standard," he said. "We are taking
the appropriate time to complete our necessary work."
PSE&G also announced today that:
o Acquisition of unused steam generators from the unfinished
Seabrook 2 nuclear unit in New Hampshire for installation at the Salem 1
nuclear unit has been completed, and removal of the replacement steam
generators began last week.
o The Hope Creek Generating Station, which returned to service on
March 25, has achieved its most reliable operating period following a
refueling and maintenance outage in its 10-year history. Today marks Hope
Creek's 120th consecutive day of operation.
Eliason said no new specific target date for Salem 2's restart has been
established. "Our current belief is that the unit will be ready for service
late in the fourth quarter," he said. "Our overriding priority to our
customers, shareholders, employees and communities in which we live and work is
to achieve safe, sustained, reliable operation once it is brought back on line.
We will not compromise this goal."
PSE&G has informed the Nuclear Regulatory Commission (NRC) of
its decision to extend the Salem 2 outage. Restart of the unit requires NRC
concurrence.
Eliason added that this change in the Unit 2 schedule should not
impact the projected restart of Salem 1. "Our current plans call for Salem 1
to be ready for operation by mid-1997 after completion of refurbishment,
including replacement of its steam generators," he said. "Our objective is to
manage the work on Salem 1 so that it remains on schedule."
The replacement steam generators for Salem 1 are now expected to
be barged to the Salem site from New Hampshire by the end of October. "We
are pleased to report that the most recent test results confirm that the
Seabrook 2 equipment, as anticipated, is highly compatible with the Salem
1 unit and should require a minimum of modifications before installation,"
he said. The steam generators, including installation, will cost approximately
$150 to $170 million, Eliason said. PSE&G's share will be approximately
$64 to $72 million.
Regarding Hope Creek, Eliason said the decision to extend the unit's
most recent refueling and maintenance outage by approximately two months
enabled it to accomplish its successful operation since returning to service in
March. "As we are doing with Salem, we followed the same strategy of not
returning the unit to service until we were satisfied it was ready for long-
term operation," he said.
PSE&G removed Salem 1 and 2 from service on May 16 and June 7,
1995, respectively, to thoroughly assess and then make improvements in the
units' equipment, personnel, and work processes. Both units had experienced
operating problems over a period of years prior to their shutdown.
During the assessment of Salem 1, extensive cracking was found in
the tubes of its four steam generators. On May 23, PSE&G announced its
intention to buy replacements from the Seabrook 2 unit. Since the discovery
of the tube cracks in Salem 1 steam generators, PSE&G has been focusing on
the restart of Salem unit 2, and that emphasis is continuing.
The Salem station consists of two 1,100-megawatt pressurized water
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 & Light Company, which each own
7.41%. Each Salem unit represents approximately 4% of PSE&G's installed
electric generating capacity.
The Hope Creek station, located adjacent to Salem, consists of an
1,100- megawatt boiling water reactor. PSE&G also operates the station and
owns 95%, while Atlantic Electric owns the other 5%. Hope Creek represents
nearly 10% of PSE&G's installed capacity.
PSE&G is the principal subsidiary of Public Service Enterprise Group
Incorporated, a diversified energy and energy services company.
