Morning Report for April 5, 2001

                       Headquarters Daily Report

                         APRIL 05, 2001

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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 - HEADQUARTERS APRIL  5, 2001

MR Number: H-01-0024

                           NRR DAILY REPORT ITEM
                           GENERIC COMMUNICATIONS



Subject: Issuance of RIS 2001-10

NRC Regulatory Issue Summary 2001-10 Revisions to Staff Guidance on
Notices of Enforcement Discretion, dated April 2, 2001

The U.S. Nuclear Regulatory Commission is issuing this regulatory issue
summary (RIS) to notify addressees that NRC Inspection Manual Part 9900,
Technical Guidance - Notice of Enforcement Discretion" has been revised
to clarify the differences between "regular" and "severe weather" Notice
of Enforcement Discretions (NOEDs) and to transmit a copy of the revised
version.

Technical contact: L. Raghavan, NRR
                   301-415-1471
                   E-mail: lxr1@nrc.gov

Accession No.  ML010520526
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REGION IV  MORNING REPORT     PAGE  2          APRIL  5, 2001

Licensee/Facility:                     Notification:

Arizona Public Service Co.             MR Number: 4-01-0003
Palo Verde 1                           Date: 04/03/01
Wintersburg,Arizona                    By phone from SRI
Dockets: 50-528
PWR/CE80

Subject: ONE CONTROL ELEMENT ASSEMBLY (CEA) DID NOT FULLY INSERT DURING
         PLANNED REACTOR TRIP


Discussion:

On Saturday, March 31, 2001, control element assembly (CEA) #22 did not
fully insert when the licensee tripped the reactor, during controlled
shutdown for a refueling outage.  Specifically, CEA 22, which is part of
Shutdown Group B, did not insert the last 12 inches.  The reactor was
subcritical following the trip, even with CEA 22 not fully inserted.

In addition, the rod bottom lights for 3 other CEAs, each from a
different group, did not initially indicate that they were fully
inserted. In response, the operators checked the control element assembly
calculator (CEAC) reed switch position indicators and found that these
CEAs were essentially full in. Soon afterwards, rod bottom lights
illuminated for all but CEA 22.

When all CEAs did not fully insert, the licensee followed their
procedures and increased boron concentrations to ensure adequate shutdown
margin.

Regional Action:

Resident Inspectors will continue to monitor the licensee's followup
activities associated with the control element assembly that would not
fully insert.  An information call between NRR and regional personnel,
and the licensee, will be conducted to ensure an adequate understanding
of the event.

Contact:  Linda Smith                (817)860-8137
          Greg Warnick               (623)393-3736
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