8-K

  
        SECURITIES AND EXCHANGE COMMISSION
 
              WASHINGTON, D.C.  20549
 
                    FORM 8 - K
 
 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
        THE SECURITIES EXCHANGE ACT OF 1934
 
 Date of Report  (Date of earliest event reported) July 22, 1996
 
   PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
 (Exact name of registrant as specified in its charter)
 
 
  State of New Jersey       1-9120                      22-2625848 
   (State or other               (Commission          (I.R.S. Employer
  Jurisdiction of                File Number)          Identification No.)
    Incorporation)
 
   80 Park Plaza, P.O. Box 1171 
    Newark, New Jersey                                    07101-1171
    (Address of principal executive offices)        (Zip Code) 
 
 Registrant's telephone number, including area code: 201-430-7000
 
      PUBLIC SERVICE ELECTRIC AND GAS COMPANY
 (Exact name of registrant as specified in its charter)
 
 
    State of New Jersey          1-973                   22-1212800 
     (State or other               (Commission          (I.R.S. Employer
     Jurisdiction of                File Number)          Identification No.)
       Incorporation)
 
               80 Park Plaza, P.O. Box 570 
               Newark, New Jersey                                07101-0570
               (Address of principal executive offices)   (Zip Code) 
 
 Registrant's telephone number, including area code: 201-430-7000
  
 
 
 Item 5.  Other Events.
 --------   ----------------
 
 The following information updates certain matters previously reported to
 the Securities and Exchange Commission under Item 1 - Business of Part I
 and under Item 7 - Management's Discussion and Analysis of Financial
 Condition and Results of Operation ("MD&A") of the Annual Reports on
 Form 10-K for the year ended December 31, 1995; and under Item 2 -
 MD&A of Part I and under Item 5 - Other Information of Part II of the
 Reports on Form 10-Q for the quarter ended March 31, 1996 of Public
 Service Electric and Gas Company ("PSE&G") and of its parent, Public
 Service Enterprise Group Incorporated ("Enterprise"). 
 
 
 PSE&G - Nuclear Operations - Salem
 -----------------------------------------------------------------------------
 Reference is made to the press release of Enterprise and PSE&G, dated
 July 22, 1996, a copy of which is attached hereto as Exhibit 99,
 announcing PSE&G's decision to extend the restart schedule of its Salem
 Nuclear Generating Station, Unit 2. 
 
 Item 7.  Financial Statements and Exhibits 
 --------   ---------------------------------------
 
    Exhibit 
    Number                    
 
         99    Enterprise  and PSE&G press release dated July 22, 1996. 
 
 
 
 
 
 
  
                     SIGNATURE
                 -----------------
 
 Pursuant to the requirements of the Securities Exchange Act of 1934, the
 registrants have duly caused this report to be signed on their behalf by the
 undersigned hereunto duly authorized. 
 
   PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
                   (Registrant)
 
      PUBLIC SERVICE ELECTRIC AND GAS COMPANY
                   (Registrant)
 
 
 
          By                                  ROBERT C.  MURRAY
               -----------------------------------------------------------------
                Robert C. Murray 
   Vice President and Chief Financial Officer 
   Public Service Enterprise Group Incorporated
                         
 Senior Vice President and Chief Financial Officer 
     Public Service Electric and Gas Company 
                          
 
 Date:  July 22, 1996 
 
 
 

EX-99

 
 Exhibit  99 
                                                       July 22, 1996
 
              PSE&G NUCLEAR UPDATE:
    SALEM AND HOPE CREEK GENERATING STATIONS 
                          
     Public Service Electric and Gas Company announced today (July 22,
 1996) that refurbishment and comprehensive testing of its Salem 2 nuclear
 unit will continue well into the fourth quarter of this year .
     "We had hoped to conclude our work and return the unit to service by
 late August," said Leon R. Eliason, PSE&G's chief nuclear officer and
 president of its nuclear business unit.  "In fact,  while we have made
 substantial  progress in upgrading the unit's 46 major systems,  some
 originally identified work remains to be done.  Further, as we restored some
 components in these systems, we determined the need for additional work
 and testing not anticipated in our original schedule. " 
     As refurbishment is being completed, Eliason said, PSE&G will
 conduct  comprehensive integrated testing of plant systems prior to loading
 fuel. "This will enable us to demonstrate confidence in the work done in
 restoring these systems to reliable performance,"  he said.
     Eliason emphasized that the revised schedule for Salem 2 reflects
 PSE&G's commitment to safe, sustained and reliable operation of its nuclear
 units. "We have consistently said that we will not return the Salem units to
 service until they are ready to meet this standard," he said. "We are taking
 the appropriate time to complete our necessary work." 
     PSE&G also announced  today that:
     o Acquisition of unused steam generators from the unfinished
 Seabrook 2 nuclear unit in New Hampshire for installation at the Salem 1
 nuclear unit has been completed, and removal of the replacement steam
 generators began last week.
     o The Hope Creek Generating Station, which returned to service on
 March 25,  has achieved its most reliable operating period following a
 refueling  and maintenance outage in its 10-year history. Today marks Hope
 Creek's  120th consecutive day of  operation.
     Eliason said no new specific target date for Salem 2's restart has been
 established. "Our current belief is that the unit will be ready for service
 late in the fourth quarter," he said.  "Our overriding priority to our
 customers, shareholders, employees and communities in which we live and work is
 to achieve safe, sustained, reliable operation once it is brought back on line.
  We will not compromise this goal."
     PSE&G has informed the Nuclear Regulatory Commission (NRC) of
 its decision to extend the Salem 2 outage. Restart  of the unit requires NRC
 concurrence. 
     Eliason added that this change in the Unit 2 schedule should not
 impact the projected restart of Salem 1. "Our current plans call for Salem 1
 to be ready for operation by mid-1997 after completion of refurbishment,
 including replacement of its steam generators," he said. "Our objective is to
 manage the work on Salem 1 so that it remains on schedule."
     The replacement steam generators for Salem 1 are now expected to
 be barged to the Salem site from New Hampshire by the end of October. "We
 are pleased to report that the most recent test results confirm that the
 Seabrook  2 equipment, as anticipated, is highly compatible with the Salem
 1 unit and should require a minimum of modifications before installation,"
 he said. The steam generators, including installation, will cost approximately
 $150 to $170 million, Eliason said. PSE&G's share will be approximately
 $64 to $72 million.
     Regarding Hope Creek, Eliason said the decision to extend the unit's
 most recent refueling and maintenance outage by approximately two months
 enabled it to accomplish its successful operation since returning to service in
 March.  "As we are doing with Salem, we followed the same strategy of not
 returning the unit to service until we were satisfied it was ready for long-
term operation,"  he said.
     PSE&G removed Salem 1 and 2 from service on May 16 and June 7,
 1995, respectively, to thoroughly assess and then make improvements in the
 units' equipment, personnel, and work processes. Both units had experienced
 operating problems over a period of years prior to their shutdown. 
     During the assessment of Salem 1, extensive cracking was found in
 the tubes of its four steam generators. On May 23, PSE&G announced its
 intention to buy replacements from the Seabrook 2 unit. Since the discovery
 of the tube cracks in Salem 1 steam generators, PSE&G has been focusing on
 the restart of Salem unit 2, and that emphasis is continuing.
     The Salem station consists of two 1,100-megawatt pressurized water
 reactors located along the Delaware River in Salem County, New Jersey.
 PSE&G operates the station and owns 42.59% of the facility. The other co-
 owners are PECO Energy Company which owns 42.59%, and Atlantic
 Electric Company and Delmarva Power & Light Company, which each own
 7.41%. Each Salem unit represents approximately 4% of PSE&G's installed
 electric generating capacity.
 
     The Hope Creek station, located adjacent to Salem, consists of an
 1,100- megawatt boiling water reactor. PSE&G also operates the station and
 owns 95%, while Atlantic Electric owns the other 5%. Hope Creek represents
 nearly 10% of PSE&G's installed capacity.
 
     PSE&G is the principal subsidiary of Public Service Enterprise Group
 Incorporated, a diversified energy and energy services company.