Morning Report for June 25, 1999

                       Headquarters Daily Report

                         JUNE 25, 1999

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           X
REGION I                               X
REGION II                              X
REGION III          X
REGION IV                              X
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION III  JUNE 25, 1999

Licensee/Facility:                     Notification:

Consumers Power Co.                    MR Number: 3-99-0055
Palisades 1                            Date: 06/18/99
Covert,Michigan                        Telephone call from licensee
Dockets: 50-255
PWR/CE

Subject: DRY CASK STORAGE PROJECT OFFICE DAMAGED BY FIRE

Discussion:

This report is to provide an update to a Preliminary Notification (PNO
-III-99-032) issued on this topic by Region III on June 18, 1999.

New information since the PN was issued includes the following:

The loss of records was not as extensive as initially feared. The
licensee currently believes that all records on dry cask activities which
are mandated by 10 CFR 50 or 10 CFR 72 can be reassembled or reproduced.
They have stated an intention that they will not commence further cask
loading activities (tentatively set for July 5, 1999) until they have
high confidence of the whereabouts and recoverability of mandatory
records.

Two mutually independent investigations as to the cause of the fire are
underway, one for the licensee by a local contract investigator and
another by an investigator for an involved insurer. No final
determination as to the cause of the fire has been made, but the initial
focus is on an electric vent unit in a ceiling which may have failed and
overheated.

Regional Action:

The root cause investigations and the licensee's determinations regarding
record requirements and compliance will be reviewed as part of the
ongoing inspection covering cask activities at Palisades.

Contact:  R. B. LANDSMAN             (630)829-9609
          B. L. JORGENSEN            (630)829-9615
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