FORM 8-K





                  SECURITIES AND EXCHANGE COMMISSION



                        Washington, D.C.  20549

                            CURRENT REPORT


           Pursuant to Section 13 or 15(d) of the Securities
                         Exchange Act of 1934



Date of Report               October 17, 1995                     
  



                           PECO ENERGY COMPANY                    
      
        (Exact name of registrant as specified in its charter)



  PENNSYLVANIA                  1-1401              23-0970240 
(State or other               (Commission          (IRS Employer
 jurisdiction of              file number)         Identification
 incorporation)                                     Number)





 230l Market Street, Philadelphia, Pennsylvania          19101    
    
 (Address of principal executive offices)              (Zip Code)



Registrant's telephone number, including 
area code:                                        (215) 841-4000  

ITEM 5. OTHER EVENTS 

As previously reported, the Company has been informed by Public
Service Electric and Gas Company (PSE&G) that the United States
Nuclear Regulatory Commission (NRC) held an enforcement conference
on July 28, 1995 relating to incorrectly positioned valves at Salem
Generating Station (Salem).  The violations included valves that
were incorrectly positioned following a plant modification in May
1993, nonconservatisms in setpoints for a pressurized overpressure
protection system and several examples of inadequate root-cause
determination of events, leading to insufficient corrective actions
at Salem.  On October 16, 1995, the NRC proposed cumulative civil
penalties of $600,000 related to these violations.  The base civil
penalty for each violation is $50,000; however, in each case, the
NRC stated in its Notice of Violation that it proposed a $100,000
civil penalty for each violation to forcefully convey the NRC's
high level of concern regarding the violations and causes, and the
inadequacy of PSE&G's performance.  The Company has been advised by
PSE&G that it will not contest the proposed penalties.

The Company has been informed by PSE&G that it has completed its
examination of Salem Unit No. 1 and its assessment of Unit No. 2 is
continuing.  Work on the 46 systems critical to Salem Unit No. 1 is
continuing, including those common with Unit No. 2, with more than
25% of necessary work activities completed and many others
initiated.  Although PSE&G had previously estimated that Salem Unit
No. 1 would return to service in the first quarter of 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.  The work
scope assessment for Unit No. 2 is currently scheduled for
completion in November 1995.  PSE&G expects to present its final work
scope assessment of both Units to the NRC in mid-December 1995.  PSE&G has
stated that because some of the work being performed relates to systems
serving both Units, the additional time needed for Unit No. 1 does not
necessarily mean that the current second quarter 1996 return estimate for Unit
No. 2 will also be extended, although no assurance can be given.  As
previously disclosed, during the outages Unit No. 1 will undergo a
previously scheduled refueling outage and Unit No. 2 will undergo
a partial refueling which will allow PSE&G to eliminate a full
refueling outage for Unit No. 2 scheduled for 1996.

The Company has been informed by PSE&G that it now estimates that
its share of additional 1995 operating and maintenance expenses
associated with Salem restart activities will amount to
approximately $22 million (1).  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 No. 2 is complete and
final restart plans are developed.






































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(1) PECO Energy Company and PSE&G each own 42.59% of Salem.  As a
result, based on PSE&G's estimates, PECO Energy's share of
additional 1995 operating and maintenance expenses associated with
Salem restart activities would also amount to approximately $22
million.












                          SIGNATURES




     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.






                                     PECO ENERGY COMPANY






                                     
                                      \s\ J. B. Mitchell
                                   
                                   Vice President - Finance
                                         and Treasurer     


        October 17, 1995