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Press Releases and Other Company News President's Press Conference Concerning Hamaoka Nuclear Power Station Replacement Plan, etc.

December 22, 2008

Chubu Electric Power Co.,Inc.

Today I will be talking about :

Chubu Electric's "Hamaoka Nuclear Power Station Replacement Plan,etc.
 
  • Reference 1 "Notice of Hamaoka Nuclear Power Station Replacement Plan, etc. - Operation of Reactors No. 1 and No. 2 to be terminated, No. 6 to be built, and other plans."
  •  Chubu Electric's Hamaoka Nuclear Power Station began operating with Reactor No. 1 in 1976, and currently it has five reactors in place.
  • With the understanding and support of the local community, Chubu Electric has endeavored to run the Hamaoka Nuclear Power Station with safety as the utmost priority.
  • As a result, the Hamaoka Nuclear Power Station now plays a very important role as a big part of Chubu Electric's electric power supply.
  • I sincerely thank the people of Shizuoka Prefecture, including the citizens of Omaezaki, Makinohara, Kakegawa and Kikugawa Cities, for their understanding and support of operations at the Hamaoka Nuclear Power Station.
    I would like to take this opportunity to express my utmost appreciation to you all.
  • Today, Chubu Electric decided on a number of matters that include a Hamaoka Nuclear Power Station Replacement Plan, under which we will be terminating operations at Hamaoka Reactor Nos. 1 and 2, and building a new reactor, No. 6, along with other plans. The company also announced an overview of its decisions to local communities and other concerned parties.
  • Chubu Electric had been conducting studies into methods for enhancing the seismic resistance of Reactor Nos. 1 and 2, but has concluded that such improvements would take considerable expense and time.
  • Nuclear power is a relatively small part of the power supply structure of Chubu Electric as compared to other electric power companies. We recognize this form of power needs to be prioritized, since there are growing expectations on the role it serves, both in providing a stable power supply and benefiting the global environment.
  • In light of the above considerations, Chubu Electric has decided to terminate operations at Reactor Nos. 1 and 2, since it would not be economical to perform the needed work to restart them.
    In their place, we plan to newly build Reactor No. 6 on the east side of the power station site, with operations to start in 2018 or within several years thereafter.
  • In addition, with the shutdown of Reactor Nos. 1 and 2, Chubu Electric has adopted a plan to build a new dry storage facility inside the power station site for spent fuel from all Hamaoka reactors as part of the current power generation facilities. Operation is projected to begin in FY2016.
  • Chubu Electric will continue to give utmost priority to safety under this plan and endeavor to earn the understanding of the local community and other parties concerned.
  • Chubu Electric plans to post an extraordinary charge of approximately ¥155 billion for the accounting period ending March 2009, owing to the shutdown of Reactor Nos. 1 and 2.
  • Reference 2, "Notice Regarding a Revised Forecast of Results for Period Ending March 2009."
  • As a result of posting the extraordinary charge stemming from the shutdown of Reactor Nos. 1 and 2, Chubu Electric's net income for FY2008, both consolidated and non-consolidated, has been revised downward by ¥100 billion, compared to the outlook announced on October 31, 2008.
  • As a result, we are estimating:
    A consolidated net loss of ¥78 billion and a non-consolidated net loss of ¥94 billion.
  • Although this performance for the period is very disappointing we intend to pay a year-end dividend of ¥30 per share to make ¥60 for the full year.
  • In closing, I would like to say that Chubu Electric recognizes the vitally important role nuclear power has in providing a stable supply of electric power and helping to protect the global environment, and that is why we will continue to prioritize nuclear power.
  • Since Reactor No. 1 was first built at Hamaoka Nuclear Power Station and continues until the present day, we have operated this facility with safety as the highest priority, and it has fulfilled its role as a major part of the stable supply of electric power, which would not have been possible without the understanding and support of the local community and other parties concerned.
    Again, I would like to express my sincere thanks to everyone.
    Chubu Electric will continue to operate the Hamaoka Nuclear Power Station with safety as the top priority, and I thus would like to ask for everyone's continued understanding and support.
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That is all for me.