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Press Releases and Other Company News Measures to a request for suspension of operation at Hamaoka nuclear power station President’s Press Conference

May 9, 2011

Chubu Electric Power Co.,Inc.

  • Hello, my name is Akihisa Mizuno, and I am President & Director of Chubu Electric Power.
  • Today I would like to talk about our response to the Prime Minister’s request to suspend operations at Hamaoka Nuclear Power Station.
  • Please look at “Reference 1.”
  • Chubu Electric Power has received a request to suspend operations at the Hamaoka Nuclear Power Station, and we have put long hours into considering our response.
  • As a result, we decided at a meeting of our Board of Directors today to suspend operations at Hamaoka Nuclear Power Station, Reactors No. 4 and 5 and to postpone the resumption of operations at Reactor No. 3.
  • Chubu Electric Power has received this request from the Prime Minister with the utmost gravity.
    We understand that the Prime Minister decided to make this request based on the growing unease of the public regarding nuclear power following the serious accident at the Fukushima Daiichi Nuclear Power Station.
  • Nuclear power can only be generated and provided if we have the trust of the general public, starting with those living near the power station, and safety must always be our highest priority.
  • Chubu Electric Power’s Hamaoka Nuclear Power Station has in fact earned the support of the local community and many other parties by remaining true to this principle in its four decades of existence.
    We pledge to not deviate from this principle in the future.
  • There is a new and growing sense of unease about nuclear power following the serious accident at the Fukushima Daiichi Nuclear Power Station. At Chubu Electric Power, we regard this new sense of unease with utmost seriousness, and have determined that we must remain loyal to the basic principle of our nuclear power business, which is to place the highest priority on safety.
  • More specifically, our first priority must be to win back the public’s trust by faithfully carrying out measures to strengthen safety during tsunami, and by providing clear and complete explanations of the results of these efforts to the local community and the general public.
  • We believe that these initiatives to enhance safety are the only way for Chubu Electric Power to restore the trust of the local community and the public and ensure their greater confidence.
  • The suspension of operations at Hamaoka Nuclear Power Station will cause significant inconvenience in the short term to the community near the power station, our customers and our shareholders.
  • However, by remaining true to the basic principle of our nuclear power business and conscientiously taking steps to strengthen safety, we will create a foundation for the safe and stable continuation of nuclear power generation over the long term and will ultimately benefit our customers and shareholders.
  • While making the decision whether to accept the Prime Minister’s request, we confirmed with the Minister of Economy, Trade and Industry the conditions for resuming operations and support measures to be provided by the national government to protect our customers and shareholders and the community near our power station from excessive hardship or loss.
  • Please look at Reference 1, Attachment 1.
  • Yesterday (May 8), I confirmed the five items relating to the request to suspend operations at Hamaoka Nuclear Power Station with Mr. Banri Kaieda, Minister of Economy, Trade and Industry.
  • First, item no. 1 on the attachment has to do with the content of the safety strengthening measures necessary to resume operations and the evaluation and confirmation of those measures.
  • Specifically, we confirmed that when we have taken the protective steps against tsunami, secured spare seawater pumps and installed emergency generators, as described in our April 20, 2011 report, and when these measures have been evaluated and confirmed by the Nuclear and Industrial Safety Agency, we will be able to resume operations in all reactors of Hamaoka Nuclear Power Station. Additionally, we requested that this evaluation and confirmation by the Nuclear and Industrial Safety Agency be conducted scientifically, rationally and promptly.
  • Next, regarding item no. 2, we requested that the government sufficiently publicize the fact that safety measures at Hamaoka Nuclear Power Station have been conducted appropriately in accordance with the law and technical standards, and that the current request was made to inspire further confidence among Japanese citizens in the wake of the serious accident at Fukushima Daiichi Nuclear Power Station.
  • Concerning item no. 3, suspending operations at all reactors will result in major additional costs. While Chubu Electric Power will make every effort to ensure that operations are conducted as efficiently as possible, we do not believe that the government’s request was intended to force our customers, shareholders, etc., to be excessively burdened, and we therefore asked the national government to provide sufficient support to avert and/or reduce those burdens.
  • Concerning item no. 4, in the event that operations are suspended at all reactors, balancing supply and demand for electric power will be very challenging. While Chubu Electric Power will make every effort in terms of both supply and demand, we requested that the national government also provide sufficient support.
  • Finally, concerning item no. 5, we asked that sufficient explanation be given to the prefectural governor’s office and mayor’s office and the rest of the community around the power station, and that sufficient consideration be given to the local economy, including subsidies and employment-related consideration.
  • Minister of Economy, Trade and Industry Kaieda confirmed the five items above, agreeing to provide “as much support as possible.”
  • To ensure greater safety during tsunami in the future, Chubu Electric Power will be putting every effort into measures such as building a seawall. Moreover, Chubu Electric Power will explain the content of these measures to the local community and the wider public.
  • Next, I’d like to talk about our measures relating to supply and demand. Please look at Reference 1, Attachment 2.
  • If operations are to be suspended in all reactors at Hamaoka Nuclear Power Station, it will be impossible for Chubu Electric Power to subsequently ensure sufficient supply capacity.
  • We have decided that there is no choice but to terminate supplementing electric power to the 50 Hz region of the country, that is, East Japan.
  • In addition, since the resumption of operations at Hamaoka Nuclear Power Station, Reactor No. 3 has been delayed from March of this year, our supply capacity includes output from Taketoyo Thermoelectric Power Plant, Unit No. 3 (rated electric output 375 MW), which had been prepared for unexpected situations.
  • Even so, we will still fall significantly short of an appropriate supply margin of 8% - 10%, which is our criterion for ensuring supply stability, and so very challenging conditions will continue.
  • For specific information, please see the tables in Attachment 2.
  • These tables show our supply and demand plan from July. Table 1, on top, shows the supply and demand status if operations are suspended in all reactors at Hamaoka Nuclear Power Station based on the current circumstances. Below that, Table 2 shows the supply and demand status if supplementation of electric power to the 50 Hz (East Japan) region is terminated and Taketoyo Thermoelectric Power Plant, Unit No. 3 (350 MW) is counted. As these tables show, unless we take immediate measures, there will be serious obstacles to providing a stable supply of electric power.
  • Therefore, today we established an Electricity Supply and Demand Task Force, of which I will serve as the director. Please look at Reference 1, Attachment3.
  • It is our customers in the Chubu Region that have fostered and supported our electricity business all these years. While we face some truly challenging conditions, we are considering a variety of measures and are prepared to make every effort to ensure a stable supply of electric power so as not to betray our customers’ trust.
  • Continuing, please look at “Reference 2.”
  • Following the decision to suspend operations at Hamaoka Nuclear Power Station, we have decided to revise our earnings forecasts (previously announced April 28) for the first half and the full fiscal year ending March 31, 2012.
  • Specifically, because it is difficult to provide realistic earnings forecasts at this time, we are not making definite estimates of consolidated or non-consolidated operating revenues and income.
  • This concludes my remarks.

 

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