Press Releases and Other Company News January 2007

The Federation of Electric Power Companies of Japan /
Vice President Yamauchi Press Conference of January 2007

January 18, 2007
Chubu Electric Power Co.,Inc.

Today I will be talking about two items:

  • • Commissioning of the Technical Consulting Operation in Singapore
  • • The state of the Hamaoka Atomic Power Plant Number 5

Please allow me to talk about the two above-mentioned points

(Commissioning of the Technical Consulting Operation in Singapore)

  • • I would like first to talk about the commissioning of the technical consulting operation in Singapore, including our position regarding the overseas energy operations.
  • • Please refer to "Reference 1"
  • • On this occasion, Power Grid Corporation of Singapore, an electric distribution company, has entrusted our company with the consulting operations regarding to the technical inspection of the power transmission substation installations, from January 2007 to March 2009, for a period of 27 months.
  • • Singapore electrical system is hidden completely underground and is highly reliable and we were told that Power Grid Cooperation is planning to aggressively improve to a higher level the reliability of the system and electric power in the future.
  • • On the other hand, the construction of electric power infrastructure is progressing at a high pitch that calls for an increase in new facilities and renovation in the future, and the acquisition of an even more advanced knowledge, and the improvement of efficiency of inspections has become a prescribed theme.
  • • Given these conditions, our company, which has a proven a record of accomplishment in consulting operations, has, this time, received proposals for new activities.
  • • There are mainly two kinds of activities in this issue.
  • • One activity concerns the underground transmission lines to supply electric power to Singapore Marina district and the construction of substation project and to provide advice/ instructions from the viewpoint of quality control and the inspection documents concerning the purchase of equipments.
  • • More concretely we shall advise / instruct on what should be the focus of the inspection concerning the content of the proposal documents submitted by the various manufacturers for the products and tests items described in the specifications submitted to Power Grid Corporation at the time of the actual purchase of equipments.
  • • Moreover, currently in the marina district, land reclamation construction work is ongoing, and the development of general resort facilities is progressing, and it is expected that the demand for electric power will greatly increase in the future.
  • • The other activity shall consist of providing technical advice and instructions for the inspection/ installation of construction work on site and observing the inspection at the plants of the equipments' manufacturers in relation to the general construction work of the power transmission substation installations implemented consistently by the same company.
  • • As for our company, in the future, we would like to contribute to improve the quality electric power and the reliability of the electric system of Singapore to bring it an even higher level.
  • • Secondly, I would like to introduce simply our endeavor towards our overseas energy operations. Please refer to "Reference 2"
  • • Our company aims at developing a "General Energy Service Industrial Group", and it is developing its business around three principal pillars, namely "Electrical Power Operations", "Gas/ LNG Sales and Dispersed Type Energy Operations", and "Overseas Energy Operations"
  • • From among these, concerning the Overseas Energy Operations, we have positioned a "developing period for the Overseas Energy Operations" of five years from 2006 to 2010, and we are grappling with emphasis to invest in "electric power operations" and "operations in connection with the environment".
  • • As mentioned in "Reference 2", concerning the "electric power operations", we are participating in the planning of projects in Mexico and Qatar, and can expect to secure long-term and stable revenues.
  • • In addition, we are participating in the planning of projects in Thailand, Malaysia, and other countries in operations in connection the environment, and we can expect to acquire CO2 emission rights and secure revenues.
  • • The operations of the plants of the projects of Thailand, Mexico, and Qatar have already started and operations are progressing satisfactorily.
  • • In addition, concerning the "consulting operations", we are providing consulting services principally in the various Asian countries in relation to the infrastructure installations for electric power.
  • • We have been trusted so far with approximately 100 cases of "consulting operations", and currently, they generate every year approximately 400 million Japanese Yen in revenues.
  • • We are opening our office in Bangkok, Thailand in February 2007.
    The same office, as strong foothold, shall carry out surveys and gouge new business opportunities and we expect to expand even more aggressively our overseas energy operation in the future.

(The state of the Hamaoka Atomic Power Plant Number 5)

  • • Next, I would like to talk about the state of the Hamaoka Atomic Power Plant Number 5.
  • • On July 15 of last years the Hamaoka Atomic Power Plant Number 5 was closed due damage to the low-pressure turbine's wing and on November 8 of last year we have submitted to the government our work construction plan concerning the pressure plate's foundation. The official inspections were completed on December 22.
  • • Accordingly, on the following day, we carried out construction work to scrape the wing's mounted part of the shaft of the turbine in preparation of the assembling works for the low-pressure turbine, and from one day before yesterday, January 16 we have started earnestly the assembly work for the fitting of low-pressure plate and suchlike of the low-pressure turbine.
  • • For our company, safety is our priority, and we our doing our utter most best to restore the plant at the earliest day possible.
  • • Moreover, currently, we have just started to prepare for a conference for the various divisions in charge to negotiate with Hitachi Corporation in connection with the restoration works expenses. In the future, we hope to start negotiation as soon as the preliminaries are completed.

That is all from me. Thank you.