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Explosion occurred in a non-safety related transformer at 1908 EST 0n 01/13/04. The transformer became deenergized as a result of the explosion. Licensee declared an Unusual Event at 1921 EST on 01/13/04 due to an explosion resulting in visible damage to a non-safety related transformer in the Turbine Enclosure building. There was no fire or injured personnel, and the site did not require any off site assistance. The transformer explosion resulted in the loss of power to some 480 VAC non-safety related loads (most significant was a non-safeguard DC battery charger). The explosion has not severely impacted Unit 1 operations. The transformer has been inspected, and it appears that the explosion was internal to the transformer and due to an electrical malfunction. Security personnel conducted thorough walk downs of all areas and had no concerns. NRC Management determined that this event did not require entry into the Monitoring Phase of Normal Mode of Incident Response at 2040 on 01/13/04. The licensee notified the state and local emergency management agencies and notified the NRC Resident Inspector.

• * * UPDATE FROM PETE ORPHANOS (VIA FACSIMILE) TO HOWIE CROUCH @ 0221 EST ON 1/14/04 * * *

Notification of reduction in classification status from Unusual Event. Failure of non-safeguards electrical supply determined to be due to cable fault. Plant remains stable at 100% power. No additional equipment damage identified. Blocking and repair planning in progress. The unusual event was terminated by the licensee at 2151 hrs. EST on 1/13/04. The licensee has notified the NRC Resident Inspector and State and County authorities. A media press release will be issued in the morning.

Notified DHS (Beal) and FEMA (Caldwell).