U.S. Nuclear Regulatory Commission

Office of Public Affairs, Region IV

Walnut Creek Field Office

1450 Maria Lane, Walnut Creek, CA 94596-5378

CONTACT: Mark Hammond July

16, 1996

Office: (510) 975-0254 FOR IMMEDIATE

RELEASE

Home: (415) 674-1024

RIV-4496

Pager: (800) 916-4952 E-mail:

mfh2@nrc.gov

NRC RATES PALO VERDE NUCLEAR PLANT `SUPERIOR' IN THREE AREAS

AND `GOOD' IN ONE OTHER IN ASSESSMENT REPORT

The Palo Verde Nuclear Generating Station has received

performance ratings of "superior" in plant operations,

engineering and maintenance and "good" in plant support in the

Nuclear Regulatory Commission's latest Systematic Assessment of

Licensee Performance.

The SALP report was issued on July 5 to the Arizona Public

Service Co., which operates the three-reactor site about 50 miles

west of Phoenix. It evaluates the plant's performance for the

period from Dec. 1, 1994, through June 1.

NRC and APS officials will discuss the report at a meeting

at 9 a.m. Wednesday, July 24, at the Energy Information Center at

the Palo Verde site. The meeting will be open to the public for

observation; NRC officials will be available afterwards for

questions.

SALP reports rate nuclear plants in four functional areas --

plant operations, maintenance, engineering and plant support, and

assign ratings of Category 1, 2 or 3, reflecting superior, good

or adequate performance, respectively.

The NRC rated Palo Verde "superior" in the areas of

operations, maintenance and engineering, and "good" in the area

of plant support. In the previous SALP report, in December 1994,

all four areas were rated as "good."

"The significant improvement reflected in three functional

areas is commendable," L. Joe Callan, Regional Administrator of

NRC Region IV in Arlington, Texas, said in a letter to APS. "It

is clear that Arizona Public Service has established the programs

and processes necessary to achieve and sustain superior

performance."

"Management attention is evident at all levels, self-
assessments have been fully assimilated throughout the Palo Verde

organization and self-criticism has been institutionalized as a

path for individual and organizational improvement," Mr. Callan

said.

In the operations area, the superior rating reflected

improvements in operational performance and leadership. However,

the NRC noted that correction of inconsistencies in individual

performance is necessary to assure continued superior

performance.

In maintenance, safety performance was found to have

improved as evidenced by the improved material condition of the

plant and a low number of maintenance-related plant challenges.

Management attention and skills displayed by craft personnel were

noted as strengths.

Engineering demonstrated superior performance, as evidenced

in part by support of successful efforts to remove a fuel

assembly stuck in the Unit 2 reactor in late March and early

April.

In the plant support area, emergency preparedness and fire

protection were noted as strengths. However, inconsistencies in

radiation protection and security programs detracted from the

overall rating.

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EDITORS/NEWS DIRECTORS: A copy of the SALP report is available

upon request from

this office.