Headquarters Daily Report

                         SEPTEMBER 30, 1998

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

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REGION IV           û                                      
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION IV  SEP. 30, 1998

Licensee/Facility:                     Notification:

Houston Lighting & Power Co.           MR Number: 4-98-0054
South Texas 1 2                        Date: 09/30/98
Wadsworth,Texas                        From licensee to Branch Chief      
Dockets: 50-498,50-499
PWR/W-4-LP,PWR/W-4-LP                 

Subject: PLANNED REORGANIZATION AT SOUTH TEXAS PROJECT                   

Discussion:

STP Nuclear Operating Company has implemented the first step in a major  
realignment intended to reorganize the site from the five existing       
functional areas (Generation, Engineering, Nuclear Assurance and         
Licensing, Plant Services and the Site Business Unit) to three primary   
functional areas (Generation, Business Services, and Engineering and     
Technical Services).  The first step involved combining Engineering and  
Nuclear Assurance and Licensing into the Engineering and Technical       
Services function on September 21, 1998.  Ted Cloninger will head up the 
Engineering and Technical Services function until the completion of the  
Unit 1 refueling outage in the spring of 1999.  Lawrence Martin will     
assist Ted Cloninger in the transition activities through the end of this
year.  Joe Sheppard will relieve Ted Cloninger as the head of the        
Engineering and Technical Services function at the end of the refueling  
outage.  Upon being relieved by Joe Sheppard, Ted Cloninger will begin   
such activities as may be required to relieve John Groth as head of      
Generation no later than June 30, 1999. John Groth will remain until the 
end of 1999 at which time he will retire.  The second step is the        
combining of Plant Services and the Site Business Unit into the Business 
Services function by January 30, 1999.  Flo Mangan will assume direction 
of the Business Services function at that time.                          

Regional Action:

For information only.                                                    

Contact:  J. I. Tapia                (817)860-8243
          N. O'Keefe                 (512)972-2507
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