June 2013 Regular Press Conference : President Mizuno’s Message

• To begin, I would like to briefly discuss my thoughts as I enter my fourth year as President.
• Over the past three years, there have been significant changes in the business environment for the electricity business.
• At present, the government is moving ahead with examination of electricity system reforms with a focus on

• Across-the-board liberalization of power retail
• Invigoration of the wholesale power market, and
• Broadening areas for power transmission and distribution and making transmission and distribution independent of generation

• At the same time, factors including an increase in fuel costs with the shutdown of the Hamaoka Nuclear Power Station have resulted in a considerable worsening of our balance sheets.
• We expect our financial statements to show a loss again in FY2013. This would be the third straight year of losses, and we recognize that this is an extremely difficult management situation.
• However, the mission of the Chubu Electric Group, the mission that we have fulfilled as an electricity utility since our foundation – the stable supply of safe, and affordable energy to our customers – has not changed in the least.
• Given this, we have positioned
  An initiative to further enhance the safety of Hamaoka Nuclear Power Station
  An initiative for the stable supply of power, and
  An initiative to realize management efficiency
  as Three Key Initiatives, and we are devoting our full efforts to their advancement.
• Chubu Electric Power will continue to fulfill its mission as an electric utility. At the same time, we will fulfill our social responsibility as a good corporate citizen that offers people peace of mind, by listening sincerely to our customers and local communities and responding to their expectations and trust.

• Moving on, I would like to discuss our start of construction work for the installation of filter vent equipment at Hamaoka Nuclear Power Station.
• Last December, we resolved to put a variety of measures into effect in order to

• Prevent a large-scale release of radioactive substances, and
• Prevent damage to the reactor containment vessel

in the event of a severe accident in which a reactor core was damaged. These measures include the installation of filter vent equipment and alternative water injection equipment.

• Following this, we began considering detailed designs and construction plans. We have now completed our examination of part of the necessary civil engineering work, and on June 14, we started work for the installation of filter vent equipment for Hamaoka Nuclear Power Station Unit 4.
• We also intend to start work for the installation of filter vent equipment for Unit 3 on June 27.
• Here, allow me to provide a brief overview of filter vent equipment.
• In the event of damage to the core and a build-up of pressure in the containment vessel, it is necessary to release gases, which also contain radioactive substances, from the interior of the containment vessel in order to prevent it from being damaged.
• Filter vent equipment makes it possible to pass these gases through a filter when they are discharged from within the containment vessel, reducing the amount of cesium and other radiactive substances in particulate form that are released and preventing contamination of the soil.
• We believe that by this means it is possible to reduce the amount of radioactive particulates released even if the core is damaged to one part per thousand or less, thus helping to mitigate long-term contamination of the soil.
• To continue, I will discuss the details of our work to install the filter vent equipment.
• Please look at Reference 1 (Overview of Filter Vent Equipment for Hamaoka Nuclear Power Station Unit 4).
• Taking into consideration seismic resistance, measures to prevent exposure, and tsunami resistance, we are locating the filter vent room underground close to the reactor building of Unit 4.
• We will excavate down to bedrock and construct a watertight underground room to function as the filter vent room. The filter vent equipment will be installed on the floor of this room.
• We will also newly install pipes in two directions in the reactor building in order to vent gases from within the containment vessel.
• Specifically, we will establish two routes: from the section of the containment vessel called the dry well; and from the upper section of the circular vessel containing cooling water called the suppression pool. We will be able to vent gases from either of these routes.
• The release valves used when venting gases from inside the containment vessel will be remotely operated from the Central Control Room, but are also designed to be able to be opened manually by station personnel on site if there is no power source for their operation.
• We will be constructing tunnels from the reactor building to the filter units and from the filter units to the exhaust stacks in order to connect them underground.
• In addition, we plan to lay filter vent pipes following the exterior of the exhaust stacks, extending from directly underneath the stacks.
• Chubu Electric Power will engage all its resources in the sure and steady effort to further enhance the safety of Hamaoka Nuclear Power Station. We are also committed to providing detailed explanations of the substance of those efforts in order to contribute to the peace of mind of local residents and society at large.

• Next, I would like to talk about electric power supply and demand this summer.
• July begins next week, so we are really heading into summer.
• We have already made an announcement regarding the subject, but I will briefly discuss the supply and demand situation this summer. Please refer to 1. Balance between electricity supply and demand in Reference 2, Electricity Supply and Demand for Summer, FY2013.

(Balance between electricity supply and demand)

• First, in terms of one-time peak load this summer, we have assumed

• A maximum power three-day average of 25,040 MW (in July and August), and
• A one-time peak load of 25,850 MW (in July and August), calculated assuming temperatures similar to the severe summer heat of FY2010

• With regard to supply capacity, while there will be a partial decline in output due to turbine problems at the Joetsu Thermal Power Station, we are scheduled to commence operation of Joetsu Unit 2-1 in July, and this will bring our August supply capacity to 28,040 MW.
• As a result, we predict that we can ensure the 8% reserve margin that is the benchmark for stable supply in relation to the maximum power three-day average.

(Energy conservation for this summer)

• This summer, the government’s Supply and Demand Verification Committee has once again examined the status of electricity supply and demand throughout the country based on projections supplied by electricity utilities.
• As a result, the government has requested standard energy conservation measures without numerical targets throughout the country, with the exception of the area covered by the Okinawa Electric Power Company.
• We wish to sincerely thank our customers for their long-term cooperation in efforts to conserve energy since the summer of the year before last.
• We would also like to again request our customers to continue as they have been in making efforts to conserve energy, without unreasonably affecting their daily activities.
• This summer we will again be making a strong effort to provide information, such as day-to-day supply and demand figures on our web site, to help our customers conserve energy this summer as well.
• Chubu Electric Power, for its part, will conduct intensive and focused inspection and maintenance of power stations and transmission and conversion facilities in order to ensure the provision of a stable supply of power to its customers.
• At the same time, we also hope, together with our customers’ efforts to conserve energy, to supplement power to areas where supply shortages are expected and help ensure a stable supply of power there.

• Finally, I would like to talk about appointments of officers, effective July 1st.
• Chubu Electric Power will be moving new people into executive posts effective July 1st, in order to create more appropriate conditions for resolving management issues.
• In conducting transfers to executive positions this fiscal year, our allocation of personnel has emphasized the maintenance of our organizational strength, for example through efforts to allocate staff of proven ability, to enable us to work continuously to resolve the management issues that we are facing.
• As a result, our transfers this fiscal year are comparatively small-scale at 1,676 members of staff, 178 fewer than last year.
• Organizational changes include

• The establishment of a Nuclear Fuel Cycle Department to centralize procedures related to the nuclear fuel cycle, which are presently divided between our Nuclear Power Department and Fuels Department. This change to our organization will enable us to respond more flexibly in our nuclear fuel cycle business.
• The Office for Promotion of Women’s careers, established in 2007 in order to fulfill functions including assisting female personnel in balancing work and career formation with child-raising, has been further developed and reorganized as the Diversity Promotion Office to create an organization that not only supports the careers of female personnel, but also of personnel with disabilities, elderly personnel, and others.

• Although our company is facing the most severe management conditions in its history, having enhanced our state of preparedness, we will work together as a single entity, with myself at the head, in order to overcome our difficulties.
• That concludes my remarks for today.