Headquarters Daily Report AUGUST 02, 1996 *************************************************************************** REPORT NEGATIVE NO INPUT ATTACHED INPUT RECEIVED RECEIVED HEADQUARTERS û REGION I û REGION II û REGION III û REGION IV û PRIORITY ATTENTION REQUIRED MORNING REPORT - HEADQUARTERS AUGUST 2, 1996 MR Number: H-96-0060 NRR DAILY REPORT ITEM GENERIC COMMUNICATIONS NRC Information Notice 96-44, "Failure of Reactor Trip Breaker From Cracking of Phenolic Material in Secondary Contact Assembly," dated August 5, 1996. The U.S. Nuclear Regulatory Commission (NRC) is issuing this information notice to alert addressees to the possible failure of reactor trip breakers to properly function because of cracking or breakage of the secondary disconnecting contact assemblies. Technical contacts: S. Shaeffer, Region II M. Sykes, Region II (704) 875-1681 (704) 875-1681 E. J. Benner, NRR S. K. Mitra, NRR (301) 415-1171 (301) 415-2783 _ REGION I MORNING REPORT PAGE 2 AUGUST 2, 1996 Licensee/Facility: Notification: Niagara Mohawk Power Corp. MR Number: 1-96-0073 Nine Mile Point 1 2 Date: 08/02/96 Lycoming,New York SRI PC Dockets: 50-220,50-410 BWR/GE-2,BWR/GE-5 Subject: NMPC OFFER TO BUYOUT CONTRACTS FROM INDEPENDENT POWER PRODUCERS Discussion: NMPC announced yesterday their offer to terminate contracts with 44 independent power producers in exchange for a combination of cash and securities from a newly restructured Niagara Mohawk. These contracts account for more than 90 percent of the above market cost to Niagara Mohawk customers from government-mandated purchases of power from independent producers. Niagara Mohawk currently pays in excess of 1 billion a year to independent power producers and those payments are escalating by about 50 to 75 million per year. Acceptance of this offer would clear the way for implementation of the company's "Power Choice" proposal, a plan to create a competitive electricity market that allows customers to chose their electricity supplier. Under "Power Choice", Niagara Mohawk would create a separate non-nuclear generating company. The independent power producers would receive their payment from a restructured Niagara Mohawk electric and gas transmission and distribution company. According to Niagara Mohawk, the Nine Mile Point Nuclear Units 1 and 2 would remain part of the parent transmission and distribution company. This proposal is conditioned on receipt of appropriate regulatory and other approvals including the Public Service Commission. Niagara Mohawk hopes to conclude negotiations in the fourth quarter of 1996. Regional Action: None Contact: Richard Skokowski (315)342-4041 Thomas Moslak (315)524-6935 _ REGION III MORNING REPORT PAGE 3 AUGUST 2, 1996 Licensee/Facility: Notification: Commonwealth Edison Co. MR Number: 3-96-0082 La Salle 1 2 Date: 08/01/96 Marseilles,Illinois RI VIA FAX Dockets: 50-373,50-374 BWR/GE-5,BWR/GE-5 Subject: LASALLE MANAGEMENT CHANGE Discussion: On August 1, 1996, the licensee notified the NRC of a change in the LaSalle site vice president. The current site vice president, Robert Querio, will be replaced by William T. Subalusky, Jr. Mr. Subalusky is the current vice president of training and education and executive director of the National Academy for Nuclear Training at the Institute of Nuclear Power Operations (INPO). Mr. Subalusky is expected to arrive at LaSalle by August 19. He will serve as an INPO reverse loan until late 1998. Regional Action: None. Contact: B. JORGENSEN (630)829-9615 M. MCCORMICK-BARGER (630)829-9619 _ REGION IV MORNING REPORT PAGE 4 AUGUST 2, 1996 Licensee/Facility: Notification: Pacific Gas & Electric Co. MR Number: 4-96-0086 Diablo Canyon 2 Date: 08/01/96 Avila Beach,California SRI Notified by Licensee Dockets: 50-323 PWR/W-4-LP Subject: UNIT 2 DOWN POWER BECAUSE OF AN ELECTROHYDRAULIC OIL LEAK (MAIN TURBINE) Discussion: On August 1, 1996, at 3:55 p.m. (PDT), the Diablo Canyon Power Plant, Unit 2, was ramped down and the main generator was disconnected from the grid following the identification of an unisolable leak in the turbine electrohydraulic control (EHC) oil system. The leak was stopped when the EHC oil pumps were deenergized. The licensee implemented its hazardous material response plan and contained the EHC fluid within the turbine building. The licensee estimated that approximately 25 gallons of EHC fluid leaked from the system. No EHC fluid was released to the environment. The reactor remains in Mode 2 while repairs are being made. The control oil leak was caused by a failed o-ring associated with solenoid valve (SV) 41. Valve SV-41 provides overspeed protection of the main turbine when the turbine overspeed protection circuitry senses an overspeed condition. Valve SV-41 is normally deenergized. The ramp down was uncomplicated and no additional significant equipment problems were identified. The licensee replaced the failed o-ring and expects to place the unit on the grid on August 2. Regional Action: The resident inspector and Projects Branch Chief were on-site at the time of the event, monitored the ramp down and response to the event, and are monitoring the licensee's actions. Contact: S. Boynton (805)595-2353 H. Wong (805)595-2353 _