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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 May 24, 1996
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 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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On May 23, 1996, Enterprise and 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 August 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 the PSE&G Nuclear Business Unit. "We are fortunate that the
Seabrook steam generators are available and are technically and
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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.
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 electric 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."
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: May 24, 1996
