Headquarters Daily Report

                         AUGUST 14, 1996

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                    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 - REGION I  AUGUST 14, 1996

Licensee/Facility:                     Notification:

Public Service Electric & Gas Co.      MR Number: 1-96-0078
Salem 1 2                              Date: 08/13/96
Hancocks Bridge,New Jersey             SRI PC                             
Dockets: 50-272,50-311
PWR/W-4-LP,PWR/W-4-LP                 

Subject: SALEM MAINTENANCE INTERVENTION                                  

Discussion:

Salem management has initiated an intervention plan to upgrade           
maintenance personnel performance and reduce long-term reliance on       
contractors. Senior management concluded this action was necessary based 
on walkdowns that indicated poor standards for facilities, workmanship,  
and poor supervision of technicians; performance indicators that showed  
poor production and coordination of activities; and continuing           
workmanship issues despite a day and a half work standdown in July.      
                                                                         
The intervention plan and approximate schedule include: remediation      
training for technicians and planners, beginning in early September,     
ending early December; maintenance leadership assessment, beginning      
mid-August, ending late September; and assessment and implementation of  
best industry maintenance practices, beginning late- August, ending late 
December. Salem will use contractors (Raytheon) to maintain Unit 2       
production, beginning mid-August, through late September.                
                                                                         
The union (IBEW) is cooperating with the Salem staff during management's 
assessment of technician performance and development of remediation      
training. PSE&G staff will assess, on a sample basis, Hope Creek and Site
Services technicians.                                                    

Regional Action:

The resident staff is following Salem staff actions.                     

Contact:  Charles Marschall          (609)935-5151
          Larry Nicholson            (610)337-5128
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