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U. S. NUCLEAR REGULATORY COMMISSION

OFFICE OF PUBLIC AFFAIRS, REGION IV

1450 Maria Lane, Walnut Creek, CA 94596

CONTACT:    Mark Hammond (510) 975-0254/E-mail: mfh2@nrc.gov



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.

                            #### 

EDITORS/NEWS DIRECTORS:  A copy of the SALP report is available upon
request from this office.