Headquarters Daily Report

                         JUNE 25, 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 IV  JUNE 25, 1996

Licensee/Facility:                     Notification:

Arizona Public Service Co.             MR Number: 4-96-0068
Palo Verde 3                           Date: 06/25/96
Wintersburg,Arizona                    Resident Inspectors                
Dockets: 50-530
PWR/CE80                              

Subject: MANUAL TRIP OF TURBINE FROM 100 PERCENT POWER                   

Discussion:

At about 6:10 a.m. (PDT), on June 26, 1996, with Unit 3 at 100 percent   
power, control room operators received a turbine electro-hydraulic       
control (EHC) oil reservoir low level alarm.  Operators determined that  
the EHC line to Turbine Control Valve 4 had developed a significant leak.
Control room operators initiated a manual turbine trip which resulted in 
actuation of the reactor cutback system.  With the turbine offline,      
reactor power initially stabilized at about 39 percent on steam bypass   
control discharging steam to the main condenser.  All systems responded  
to the transient as designed.  The licensee has initiated repairs to the 
EHC oil line and anticipates returning the turbine to service within 24  
hours.  The plant is being maintained between 20 and 25 percent power    
while repairs are performed.                                             
                                                                         
Unit 3 experienced a similar event on June 10, 1996, when a weld in the  
same EHC oil line developed a leak.  During that event, the leak was     
small enough to allow operators to reduce turbine load in a controlled   
manner before removing the turbine from service.  The licensee's         
investigation of the June 10 event was in progress at the time of the    
current event and they plan to include this latest event in their        
investigation.                                                           

Regional Action:

The Resident Inspectors are monitoring the licensee's activities to      
repair and recover the unit.                                             

Contact:  D. Kirsch                  (510)975-0290
          K. Johnston                (602)386-3638
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