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 July 19, 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, Part II
of the Report on Form 10-Q for the quarter ended March 31, 1995 and
Item 5 of the Current Report on Form 8-K dated June 13, 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
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) that it
had determined 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.
As previously reported, PSE&G is engaged in a thorough assessment of
equipment issues that have affected Salem's operation and the related
management systems and 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. While PSE&G has not yet finalized its
analysis and assessment activities, it currently estimates that Unit 1
will be ready to return to service in the first quarter of 1996 and
Unit 2 during the second quarter of 1996, although no assurances can
be given. During the outages, Unit 1 will undergo a previously
scheduled refueling and Unit 2 will undergo a partial refueling which
will allow PSE&G to eliminate a full refueling outage for Unit 2
scheduled for 1996. The restart plan is focused on improving
equipment reliability and operability. PSE&G intends to reduce
maintenance and engineering backlogs of work and to strengthen its
management processes before it returns the units to service.
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Nuclear Operations (Continued)
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PSE&G has developed and is implementing a number of detailed action
plans designed to improve performance in 10 key areas: operations,
management, engineering, maintenance, outage activities, work
controls, organizational self-assessment, corrective action, equipment
reliability and training. Before restarting the units, PSE&G will
complete a thorough review of station systems and gain concurrence
from the NRC that these action plans have been satisfactorily
completed. No assurances can be given as to what actions the NRC
ultimately might take.
PSE&G estimates that its share of additional operating and maintenance
expenses associated with restart activities will amount to
approximately $17 million. Replacement power costs incurred while the
units are out of service are expected to be approximately $5 million
per month, per unit. In addition, PSE&G currently anticipates that
the 1995 aggregate capacity factor of its five nuclear units will be
below the 65% minimum annual standard established by the New Jersey
Board of Public Utilities (BPU). Failure to meet this minimum
standard would result in imposition of a performance penalty for 1995.
PSE&G currently estimates such aggregate capacity factor for 1995 will
amount to approximately 63%, based on the planned operation of the
other three nuclear units, which would result in a penalty for 1995 of
between $2 million to $3 million. No assurances can be given as to
what action, if any, the BPU might ultimately take. PSE&G does not
presently foresee any shortage in available capacity to satisfy
customer demands for energy.
A previously reported NRC enforcement conference, relating to
incorrectly positioned valves at Salem and a number of other apparent
violations relating to the NRC's quality assurance criteria and
inadequate or ineffective corrective actions affecting safety-related
equipment and components, has been rescheduled for July 28, 1995.
PSE&G cannot predict what, if any, action the NRC may take with
respect to these apparent violations.
PSE&G has recently undertaken a number of senior nuclear management
changes, including the hiring from outside of PSE&G of a Senior Vice
President - Nuclear Operations, a Senior Vice President - Nuclear
Engineering, a General Manager - Salem Operations, and a Director -
Quality Assurance and Nuclear Safety Review. PSE&G is committed to
achieving high standards of safety and operational performance for its
nuclear program. PSE&G's objective is to restart and run the Salem
plants in accord with these standards so as to assure long-term
reliability and reduce overall production costs in order to provide
customers serviced by Salem with reliable and economic energy.
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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: July 19, 1995
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