Morning Report for November 10, 1999

                       Headquarters Daily Report

                         NOVEMBER 10, 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  NOV. 10, 1999

Licensee/Facility:                     Notification:

Consumers Power Co.                    MR Number: 3-99-0090
Palisades 1                            Date: 11/10/99
Covert,Michigan                        SRI
Dockets: 50-255
PWR/CE

Subject: PALISADES CONTROL ROD DRIVE MECHANISM OUTAGE ISSUES
Reportable Event Number: 36385

Discussion:

On November 2, 1999, Palisades personnel Identified a crack indication
around the inner diameter of a Control Rod Drive (CRD) motor tube sleeve.
A subsequent sample of 15 housings identified 8 additional indications.
As a result, the licensee plans to examine all 45 inservice CRDM seal
housings and has sent two of the housings offsite for detailed analysis
to determine the root cause. The licensee is considering one of 3 options
for each indication identified: 1) Replacement of housings with spares,
2) Removal of the defects, or 3) Weld repair of any identified defects,
such that all defects will be removed and the welds will meet ASME Code
requirements.

Also, during the start of the current refueling outage at Palisades, one
CRD failed to fall into the core when operators tripped the reactor. The
rundown feature drove the rod into the core per the CRDM design. The
licensee subsequently discovered that a bearing in the CRDM dual clutch
assembly was seized with hardened grease. The licensee sampled other CRDM
assemblies and discovered other bearings that exhibited small resistance
to rotation. The licensee is presently rebuilding all clutch assemblies
(41) except for 5, which were rebuilt in 1996.

Regional Action:

Regional and NRR staff will monitor both examination, and repair, issues
for the CRDM weld indications. Resident inspectors will continue to
follow the licensee's actions concerning the CRDM bearings.

Contact:  ANTON VEGEL                (630)829-9620
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