March 2016 Regular Press Conference : President Katsuno's Message

• Chubu Electric Power has thus far been presenting its mid-term management policies and concrete efforts as “Operating Objectives.”
• Starting this year, we decided to introduce “Initiatives for Management Issues” in an effort to more specifically demonstrate our concrete initiatives towards achieving the Management Vision announced last month.
• As we shared in last month’s conference, Chubu Electric Power Group is aiming to become a total energy service corporate group that is one step ahead, providing beyond-expectation services to customers earlier than our competitors do.
• Under the Initiatives for Management Issues, Chubu Electric Power Group set its mid-term goal to become a corporate group that can, by FY2018, gain 150 billion yen or more in terms of consolidated ordinary income.
• With Hamaoka Nuclear Power Station out of operation, this objective will certainly be attended with countless difficulties, but we will strive to reach it by Group-wide streamlining and development-propelling initiatives.

(Four key initiatives)

• In a drive to meet this mid-term goal, Chubu Electric Power will be conducting four key initiatives.
  This includes:
  
  1. Initiatives to further enhance the safety of Hamaoka Nuclear Power Station
  2. Initiatives for stable supply in a new era
  3. Initiatives to accelerate development
  4. Initiatives to build a business mechanism that can instantly respond to environmental changes

(Initiatives to further enhance the safety of Hamaoka Nuclear Power Station)

• Amongst the four key initiatives, I first would like to talk about the initiative to further enhance the safety of Hamaoka Nuclear Power Station.
• Chubu Electric Power is undertaking efforts to enhance the safety of Hamaoka Nuclear Power Station by embracing lessons learned from the Fukushima accident and being strongly committed to preventing any similar accidents from occurring.
• Hamaoka Units 3 and 4 are currently receiving the Nuclear Regulation Authority’s review on compliance with new regulatory requirements, and Chubu Electric Power is responding with sincerity to have our compliance promptly confirmed.
• Chubu Electric Power will work to raise safety levels in both physical and non-physical terms by such efforts as steadily carrying forward new regulatory requirement-based equipment measures, as well as continuing to boost up field response capabilities.
• It is essential to enhance the safety of Hamaoka Nuclear Power Station by steadfastly improving operational/maintenance technology and skills, as well as by reinforcing the idea that nuclear safety measures are never-ending processes and constantly conducting latest-knowledge reflecting voluntary equipment measures without being satisfied on compliance with new regulatory requirements.
• On top of that, the top management including myself will look to strengthen risk communication, risk management, and governance that will serve to achieving higher nuclear safety levels.
• Let us shift our attention out of the company. Customers, especially industrial sector customers from the vibrant manufacturing area, i.e. the Chubu region, are expecting Chubu Electric Power to maintain stable, reasonable, and little-changing electricity rates so they can readily arrange mid- to long-term production plans.
• We must draw on Hamaoka Nuclear Power Station in this regard. Upon giving top priority on safety and gaining the understanding of relevant local parties, we plan to meet customer expectations by making use of Hamaoka Nuclear Power Station.

(Initiatives for stable supply in a new era)

• The business environment surrounding Chubu Electric Power has been undergoing a drastic change with the full electric power retail deregulation starting, the power transmission and distribution sector’s legal unbundling in 2020, and the introduction of renewable energy increasing.
• In response to these changes, the companies will work together within the Group while adequately fulfilling their respective roles to constantly achieve our unwavering mission to provide environmentally-friendly and high quality energy in a safe, reasonable and stable manner.
• More specifically, Chubu Electric Power will proceed with efforts on: the high-efficiency LNG thermal power Nishi-Nagoya Thermal Power Station Group No. 7; development of a low-cost baseload power source, i.e. the coal-fired Taketoyo Thermal Power Plant Unit 5; and the active development of renewable energy and the scale-up of volumes accessible to the power transmission/distribution network.
• By implementing these initiatives, Chubu Electric Power will establish a well-balanced power source ratio and thereby work to curb CO2 emissions, ensure stable supplies, and bring down the prices.

(Initiatives to accelerate development)

• Chubu Electric Power is regarding the major environmental transformation around the energy business as a re-experience of our inauguration process, and we see it as an excellent opportunity to accelerate our development.
• JERA and each of the companies will roll out active initiatives in their respective fields, and thereby work to thrive in many different business domains. This will include: 
  • Further expanding sales in electricity and gas markets
  • Boosting competitiveness with the development of state-of-the-art power
  • Boosting competitiveness in fuel procurement
  • Development in the international energy market

(Initiatives to build a business mechanism that can instantly respond to environmental changes)

• The final key undertaking I would like to talk about are the initiatives to build a business mechanism that can instantly respond to environmental changes.
• As previously announced, Chubu Electric Power will adopt an internal company system from the coming April. With each company’s autonomous business operations, we will address changes in the business environment in a swift and flexible manner.
• We intend to have the companies make progress in change-anticipating initiatives, and outperform others while widening our business domains.

(Summary)

By conducting the four key initiatives, Chubu Electric Power Group will constantly work to realize our unwavering mission, i.e. to provide environmentally-friendly and high quality energy in a safe, reasonable and stable manner, and we will also make effort to create new value in view of the changing times.

(Deficiency in bearing)

• Given that an equipment deficiency was identified during last May’s test operations, the start of operation for Tokuyama Hydroelectric Power Station Unit 1 had been behind schedule; however, with the cause being determined and countermeasures completed, the Unit has been arranged to commence commercial operation from tomorrow, the 24th.
• The deficiency was a result of temperatures rising to beyond-expectation levels, which was caused by a minute projection that formulated on a part of the generator’s rotating shaft during the production process. This projection came into contact with a fixed part that houses the shaft and makes it slide, and thereby produced excessive frictional heat.
• After conducting measures to eliminate the projection, we confirmed in test operations that the Unit was performing normally, and thus arranged to start Unit 1’s commercial operation.
• We apologize to relevant local parties and many others for the inconvenience and concerns we generated from this deficiency.

(Start of commercial operation)

• Tokuyama Hydroelectric Power Station Unit 1 boasts a maximum output of 139 MW. Combining this with Unit 2 that started commercial operation in May 2014, Tokuyama Hydroelectric Power Station’s maximum power would add up to 161.9 MＷ. Besides our pumped storage power stations, this will make Tokuyama Station one of our largest general hydroelectric power stations.
• We owe the start of Unit 1’s commercial operation tomorrow to the understanding and cooperation of Ibigawa Town residents and other local citizens, as well as relevant parties. I take this opportunity to offer our profoundest gratitude.

(Concluding remarks)

• Hydroelectric power is an energy fully produced within Japan, and along its eco-friendly features, its advantage is that it promises a stable amount of power.
• The previously mentioned Initiatives for Management Issues refer to the proactive development of renewable energy, and regarding hydroelectric power generation, Chubu Electric Power will join forces with Group Companies to press ahead with the development of conventional and regular water-flow release hydroelectric power.
• We will also steadily develop the Seinaiji Hydroelectric Power Station, which was announced on March 7, with the understanding and cooperation from Achi Village and Iida City’s local residents and relevant parties.

(Numerical targets on female officers)

• I next would like to speak about Chubu Electric Power’s initiatives to encourage the active involvement of women.
• In terms of our key management issue, we have actively worked to support the active involvement of many different human assets including women, members with disabilities, elderly personnel, and thereby managed to boost up our competitive edge as a company.
• Today, as per the Act on Promotion of Women’s Participation and Advancement in the Workplace, Chubu Electric Power submitted to the Aichi Labour Bureau the Action Plan to Encourage the Active Involvement of Women.
• Chubu Electric Power is currently upholding a numerical target on women’s training to more than double the number of female officers in FY2020 compared to FY2014 levels.
• To achieve this target, we will proactively work for women’s training, and offer assistance to harmonize their working and family lives. This will include:
  • Implementing diversity education for all officers
  • Implementing career-related interviews on all just-before-30 female members who are expected to make further achievements as mid-level employees
  • Implementing seminars for helping achieve a balance between work and childcare
  • Enriching working systems to foster flexible working styles

   

(Selected as a Nadeshiko Brand)

• The national government is backing efforts to encourage women’s active involvement. The Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange have jointly selected listed enterprises that are exceptional in encouraging women’s success in the workplace, and granted them the “Nadeshiko Brand” designation.
• As we previously announced, on March 16, Chubu Electric Power became the first power utility to be granted with this designation. We see this as a positive evaluation for our initiatives and results thus far, and feel greatly honored.
• Chubu Electric Power will continue to actively work to support the active involvement of many different human assets including women, members with disabilities, and elderly personnel.

• Chubu Electric Power has been rolling out KatEne, a web member service, to expand our offerings to household customers by such means as providing a point service or communicating information that are instrumental to their lives.
• We managed to encourage many customers to join the membership, and yesterday we accomplished our target for this fiscal year, i.e. registration by 1 million individuals.
• In a drive to further raise KatEne’s profile and increase users, Chubu Electric Power will respond to consumer expectations and offer services that meet customer needs.
• The full electric power retail deregulation will start next week on April 1. I will lead sales operations so that Chubu Electric Power can continue to serve as a top-choice utility for our customers.