Concerning the Establishment of the Assessment /
Inspection Committee Relevant to the inspection of Hydraulic, Thermal, Nuclear Power Plants
January 10, 2007
Chubu Electric Power Co., Inc.
We are pleased to inform you that we have established on January 9, 2007, the Assessment / Inspection Committee relevant to the inspection of electric power plants, which held its first meeting on the same day to assess / examine the potential existence of falsified data and deficiencies and suchlike in the required procedures and other similar problems (hereinafter called "Incongruous Phenomena") in relation to the hydraulic, thermal, and nuclear power plants in accordance with the instructions (the Nuclear and Industrial Safety Agency (NISA) Issue No 1 of October 30, 2006), "Concerning the Inspection of Electric Power Plants", of the Ministry of Economy, Trade and Industry, Nuclear and Industrial Safety Agency.
In the future, the Assessment / Inspection Committee will examine seemly and strictly the subsistence of Incongruous Phenomena.
Attachment :
Concerning the Assessment / Inspection Committee Relevant to the Inspections of Electrical Power Plants
Solution:
Concerning the Inspection Plan for the Electric Power Plants
< Attachment >
Concerning the Assessment / Inspection Committee Relevant to the Inspections of Electrical Power Plants
1. Date of Establishment
January 1, 2007
2. Composition
Committee Members
Committee Chairman: Haruhiko Asano
Representative Vice-President (Executive Officer, General Manager of Power Generation Division)
Committee Member: Akihisa Mizuno
(Executive Officer, General Manager of Corporate Planning & Strategy Division)
Committee Member: Masato Harada
(Executive Officer, General Manager of Legal Affaires Dept.)
Committee Member: Yoshitaka Takagi
(Executive Officer, Power System Division, General Manager of Electrical Engineering Dept.)
Executive Member: Fumihide Nakai
(Executive Officer, Power Generation Division, General Manager of Thermal Power Dept.)
Committee Member: Masatoshi Sakaguchi
(Executive Officer, Power Generation Division, General Manager of Nuclear Power Dept.)
Committee Member: Masakazu Aida
(Executive Officer, Power generation Division, General Manager of Civil & Architectural Engineering Dept.)
Sectional Meeting
The Committee shall establish Sectional Meetings for the Hydraulic Power Plants, Thermal Power Plants, and Nuclear Power Plants to enforce inspection.
3. Others
The first Committee was held on January 9, at Chubu Electric Power Headquarter.
< Solution >
Concerning the Inspection Plan for the Electric Power Plants
1. Purpose
We have been notified of frequent occurrence of cases of inappropriate revisions of the measured values that should cause great concern, breach of notification based on the law, and data falsification relevant to the thermal power installation by other power companies. Accordingly, the Ministry of Economy, Trade and Industry, Nuclear and Industrial Safety Agency has requested us, to check for potential falsified data and deficiencies with the required procedures and other similar problems (hereinafter called "Incongruous Phenomena") concerning the hydraulic power production plants, thermal power generation, and nuclear reactors in operation.*1
In addition, it has been verified there was an incident in which the required procedures were not implement for the construction work during the inspection already carried out at our hydraulic power production plant (December 20, 2006, announcement). Accordingly, instructions for a collection of reports were issued in compliance with Article 106 of the Electric Utility Law.*2
The company has concluded it was necessary to enforce strict inspection concerning this Incongruous Phenomena, and to stop definitely this state of affair, the company is pressing on with the inspection as follows.
*1: We have received on November 30, 2006 the inspections' instructions from the Ministry of Economy, Trade and Industry, Nuclear and Industrial Safety Agency in accordance with the Nuclear and Industrial Safety Agency Issue No 1 of November 30, 2006, "Concerning the Inspection of Electric Power Plants"
*2: We have received on November 21, 2006, the inspections' instructions from the Ministry of Economy, Trade and Industry, Nuclear and Industrial Safety Agency in accordance with the Nuclear and Industrial Safety Agency Issue No 5 of November 20, 2006, "Concerning the Inspection of Hydraulic Power Plants, and have reported the results. In line with this, we have received the report instruction on December 21, 2006 from the same agency (Nuclear and Industrial Safety Agency Issue No 12 of December 20, 2006) "Concerning the collection of reports in accordance with the provisions of Article 106, Clause 3 of the Electric Utility Law.
2. Inspection Method
(1) Inspection Structure (Drawing -1)
The company shall establish internally an "Assessment / Inspection Committee Relevant to the Inspections of Electrical Power Plants" (hereinafter called "Committee", and at the same time, the company shall establish, as a subordinate organ to the Committee, a "Sectional Meeting" (hereinafter called "Sectional Meeting") for each hydraulic, thermal, and nuclear power plant.*3
The Committee shall supervise the Sectional Meeting to ensure that it is strictly enforcing the inspection operations and shall enforce assessment concerning measures to prevent the reoccurrence of Incongruous Phenomena verified and reported / proposed in the results of the inspections enforced by each Sectional Meeting.
Each Sectional Meeting shall instruct / supervise the inspection operations of each facility and suchlike as to ensure that that they are strictly enforced. In addition, it shall verify the inspection results of each facility and carry out adjustments and it shall propose measures to prevent the reoccurrence of verified Incongruous Phenomena and report / propose them to the Committee.
The Committee shall report the assessment results to the Compliance Committee to hear its opinion, and if necessary, it shall revise the assessment results.
The inspection enforced by Committee and the Sectional Meeting shall be subjected to the supervision of the Internal Audit Office.

*3: We have established the "Assessment / Inspection Committee Relevant to the Inspections of Electrical Power Plants" on January 9, 2007. The First Committee was held on the same day and it established the inspection plan.
(2) Content of the Inspections
The Inspection shall examine whether there are falsified data and Incongruous Phenomena of deficiency and such like of the required procedures pertinent to each thermal power plant or not. In addition, the inspection shall verify whether safety has been compromised based the Incongruous Phenomena.
a. Extraction of Incongruous Phenomena Based on the Inspection
The extraction concerning the Incongruous Phenomena shall be enforced in the form of a survey based on the participation and the observations of the persons in charge (the company's employees, OB employees, people in charge at the affiliate / partner companies).
b. Inspection of Data Falsification (Relevant to Apparatus)
The inspection shall examine the current conditions of the various measuring / computing apparatus and shall verify any dubiousness over safety based on the correction of inappropriateness, revisions, data processing and suchlike.
c. Inspection of Data Falsification (Relevant to Records)
The inspection shall examine the existence of Incongruous Phenomena and shall compare and verify the original data or comparatively possible data, in compliance with the law for each inspection / examination record concerning the reports submitted outside the company based on the law, ordinances and agreements.
d. Inspection of the Required Procedures' Deficiency
The inspection shall examine whether the procedures of the notifications and suchlike in compliance with the law was for construction work carried out in the past was appropriately carried out or not.
(3) Assessment of the Inspection Results
The Chairman of the Committee shall decide whether it is necessary or not to continue the inspection from fiscal year 2007 in line with the assessment of the inspection results at the end of March 2007. When decided that the inspection needs to continue, the Committee will lay out new inspection plans.
(4) Inspection Process and Results Reporting (Drawing-2)
The inspection results shall be collected by the end of March 2007 (The results shall take into consideration inspections of Incongruous Phenomena enforced until this period by other electric power and shall include the results of the inspection enforced in compliance with the inspection instructions, pertinent to the hydraulic power plant, given by the Nuclear and Industrial Safety Agency). In addition, the results shall be explained to the Nuclear and Industrial Safety Agency after the Committee has assessed them.

(5) Publication of the Inspection Results
We shall publish the inspection results
In addition, we shall publish any significant deficient phenomena in the event that we may verify them.