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U. S. NUCLEAR REGULATORY COMMISSION
Office of Public Affairs Telephone: 301/415-8200
Washington, DC 20555-001 E-mail: opa@nrc.gov

                               
  
  No.  96-50                            FOR IMMEDIATE RELEASE
                                      (Friday, March 8, 1996)
  
  
           NRC STAFF PROPOSES $100,000 FINE FOR APS
               IN PALO VERDE WHISTLEBLOWER CASE
  
     The Nuclear Regulatory Commission staff has proposed a
  $100,000 fine against the Arizona Public Service Co. for a
  violation of NRC requirements that protect employees who
  raise safety concerns from discrimination. APS operates the
  Palo Verde Nuclear Generating Station 50 miles west of
  Phoenix.
  
     A Department of Labor proceeding and a subsequent NRC
  investigation determined that Thomas Saporito was unlawfully
  discriminated against in December 1991 when an APS supervisor
  did not select him to work on a Palo Verde Unit 1 refueling
  outage. Mr. Saporito, an instrumentation and control
  technician, worked for a contractor, The Atlantic Group.
  
     Mr. Saporito alleged that the APS supervisor
  discriminated against him because he had made nuclear
safety-related complaints in the past at Palo Verde and other
  nuclear plants and filed a complaint with the U.S. Department
  of Labor.  In May 1993 a DOL administrative law judge issued
  a decision that found APS had discriminated against Mr.
  Saporito.
  
     The supervisor was terminated by APS and later admitted
  in U.S. District Court that he had discriminated against Mr.
  Saporito. Last September, he was fined $50 and sentenced to a
  year's probation for the wrongdoing. In 1993, APS and Mr.
  Saporito reached a settlement of the case filed before the
  Department of Labor.
  
     L. Joe Callan, Regional Administrator of the NRC Region
  IV office in Arlington, Texas, informed APS of the fine in a
  letter on Thursday. 
  
     ``...[T]his violation is significant because it went
  undiscovered and uncorrected for more than 19 months, during
  which time the overall environment at Palo Verde for raising
  safety concerns was in need of substantial attention,'' Mr.
  Callan said.
  
     ``In addition, while APS eventually reported this
  violation to the NRC, the report came only after [the APS
  supervisor] had 
  
  admitted to APS' attorneys that he provided false information
  concerning his actions to the ALJ [administrative law
  judge].''
                               
     The supervisor admitted to APS attorneys in August 1993
  that he had discriminated against Mr. Saporito.
  
     Mr. Callan indicated the NRC recognizes that APS has
  taken corrective actions to assure an environment in which
  employees and contractors may feel free to raise safety
  concerns without fear of retaliation. He said the NRC does
  not disagree with APS' assertion that the improved
  environment is evidenced by statistics and employee surveys.
  
     The NRC categorized the violation as a Severity Level
  III. The NRC enforcement system uses four Severity Levels,
  with Level I the most serious.
  
     APS has 30 days to reply to the citation. During that
  time, it may pay the fine or protest it. If a protest is
  denied and the fine is imposed, the company may ask for a
  hearing.
  
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