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) June 10, 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 07101-570
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 201-430-7000
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 Operations ("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 - Rate Matters - Salem Investigation
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As previously reported, on March 14, 1996, the BPU issued an order regarding its
investigation into the continuing outage of the Salem Nuclear Generating
Station.
The BPU's order:
Declared PSE&G's rates related to Salem Unit 1 interim as of March 14,
1996, and subject to refund pending further hearings;
Required PSE&G to file briefs with regard to why the BPU should not declare
rates related to Salem Unit 2 interim and subject to refund;
Required PSE&G to furnish certain other financial information related to the
rate treatment of each Salem Unit as well as replacement power costs
associated with the outage; and
Required further proceedings to determine if each Salem Unit remains "used
and useful" for rate making purposes.
On June 19, 1996, the BPU issued an oral decision declaring Salem Unit 2 rates
interim and subject to refund as of such date. The BPU, in rendering such oral
decision, indicated that it may rescind the decision if Salem Unit 2
is restarted within a reasonable time of PSE&G's estimated August 27, 1996
restart date.
The issue of whether or not Salem Unit 1 and Salem Unit 2 are no longer
used and useful will be addressed in separate hearings before the BPU. The
dates for either hearing have yet to be determined; however, the Salem Unit
2 hearing is not expected to occur prior to August 27, 1996. Neither
Enterprise nor PSE&G can predict the outcome of these proceedings. Removal
of Salem Unit 1 and/or Salem
Unit 2 from base rates could have a material adverse effect on PSE&G's financial
position, results of operations and net cash flows. PSE&G will oppose the
issuance of any order to remove either Salem Unit from base rates and
believes that in the event of a Unit's removal from base rates, all of the
replacement power costs attributable to such Unit would be recoverable
through its Electric Levelized Energy.
Adjustment Clause and that the estimated $12 million Nuclear Performance
Standard penalty for 1996 would be substantially reduced.
PSE&G - Nuclear Operations - Salem
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As previously reported, both of the Salem Units are currently out of service
and their return dates are subject to completion of testing, analysis,
repair activity and NRC concurrence that they are prepared to restart.
PSE&G expects to return Salem Unit 1 to operation in the second quarter of
1997 upon installation of new steam generators being purchased from the
unfinished Seabrook Nuclear Unit 2 in New Hampshire.
Salem Unit 2 is currently estimated to return to service on August 27, 1996.
On June 11, 1996, the NRC advised PSE&G that it expects to conclude its Final
Safety Analysis Report (FSAR) Project with regard to Salem Station shortly
before the August 27, 1996 estimated restart of Salem Unit 2. The FSAR
Project is designed to provide reasonable assurance that Salem Units will be
operated within their licensing and design basis. The FSAR Project includes
various levels of review of 46 major systems in the Salem Station, depending
on their risk significance. While some safety systems will receive the most
comprehensive review, all 46 systems will receive a configuration walkdown,
a system readiness review, and maintenance rule implementation and
Significant Event Report reviews before restart.
While PSE&G does not expect that the FSAR Project will adversely affect the
scheduled restart of Salem Unit 2, no assurances can be given.
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 20, 1996