Headquarters Daily Report

                         MAY 20, 1998

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           û                   
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REGION II                              û                   
REGION III                             û                   
REGION IV           û                                      
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION IV  MAY 20, 1998

Licensee/Facility:                     Notification:

Arizona Public Service Co.             MR Number: 4-98-0029
Palo Verde 1                           Date: 05/20/98
Wintersburg,Arizona                    Resident Inspector                 
Dockets: 50-528
PWR/CE80                              

Subject: CRACK IN LETDOWN LINE                                           

Discussion:

On May 20, 1998, at approximately 1:30 a.m. (MST) operators were in the  
process of increasing letdown flow after starting a second charging pump.
A pressure control valve downstream of the flow control valve failed to  
respond properly which caused pressure to increase and a relief valve to 
lift.  When the relief valve lifted, a downward force caused the piping  
to move downward except for the area at a rigid attachment where a crack 
developed at an adjacent weld.  Approximately 500 gallons of water were  
released to the reactor drain tank from the relief valve and to the floor
from the cracked weld.  The licensee estimated that 20 minutes elapsed   
between the time the crack developed until the operators isolated        
letdown.  The plant is stable at 100 percent power with letdown isolated.

Regional Action:

The resident inspector responded to the site and is monitoring licensee  
activities.                                                              

Contact:  Greg Pick                  (817)860-8270
          Jim Moorman                (602)386-3638
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