Press Releases and Other Company News September 2007

September 2007 Federation of Electric Power Companies of Japan Press Conference with Chubu Electric President Toshio Mita

September 14, 2007
Chubu Electric Power Co.,Inc.

Today, I will be giving an overview of this summer's electric power market, looking at both the demand and supply sides.

< This summer's electric power market >

  • • First, I will talk about demand.
  • • This year in the Tokai region, the end of the rainy season came on July 27, a week later than average, but afterwards we had a very hot summer. In August for example Tajimi City, Gifu Prefecture experienced temperatures of 40.9°C, a new record high for Japan.
  • • Please refer to Reference 1 (History of New Records in Maximum Output and Single-Day Power Consumption).
  • • This summer, our system broke its record for maximum output, the measure of peak power demand, for the first time in six years.
  • • On August 20, our maximum output reached 27,820 MW, surpassing our previous record of 27,500 MW, set on July 24, 2001, by 320 MW.
    The record was then broken a second consecutive day on August 21 with a maximum output of 27,970 MW.
  • • We also set a record for single-day power consumption three times this summer (August 8, 9 and 21), with a record of 523,285 MWh on August 21.
    The record for single-day power consumption followed a new record set last year.
  • • In addition, this was the first year since 2001 in which both the maximum output and single-day power consumption records were broken multiple times in a single summer.
  • • The chief reasons that new records were set for maximum output and single-day power consumption were that:
    • • The high air temperature encouraged customers to run their climate control equipment, and
    • • Industrial power demand, which underpins power demand at Chubu Electric as a whole, was very strong.
  • • At this point I would like to talk about industrial power demand using Reference 2, entitled "Year on Year Growth of Electric Power Sold to High-Volume Customers, by Industry."
  • • The economy of the Chubu region is very strong compared to the country as a whole. Electricity sales to high-volume customers were up 4.3% year on year in July, marking the 24th straight month of such gains.
  • • Cumulative results from April through July were also strong, up 5.9% from a year ago.
  • • The category of machinery, which carries the greatest weight because it accounts for about 40% of sales to high-volume customers, was up 7.9%, in part because the industries of automobile components and liquid crystals and semiconductors for digital home electronics were very strong.
  • • In the raw materials categories, sales to the ceramics, stone and clay category, which experienced strong production of glass for liquid crystal displays, increased by 7.5%, while sales to the iron and steel category, which experienced strong production for automobiles and construction materials, were up 5.4%.
  • • As these figures indicate, the Chubu region is home to many healthy companies, particularly in the area of manufacturing, and the strong business activity of our industrial customers is one factor pushing up electric power demand.

  • • Next, I would like to look at the supply-side.
  • • On the supply side, we were able to restart operation of Hamaoka Nuclear Power Station, Reactor No. 5 in March of this year. The reactor had been shut down because of turbine problems since June of last year.
  • • At this time, Reactors No. 1 and 2 at Hamaoka Nuclear Power Station are shut down for periodic inspections, while Nos. 3-5 are operating at nearly 100%. Our nuclear power facility load factor has risen from 22.8% in August 2006 to 72.4% in August of this year.
  • • On August 21, maximum output exceeded this summer's anticipated value of 27,480 MW by 490 MW, setting a new record, but we were able to continue a steady supply of power to our customers in part because of the stable operation of our nuclear power station.
  • • Observing this summer's power supply, I personally gained a renewed awareness of the importance of nuclear power, since it provides stable operation as a power source to meet our base demand and is also an excellent power source in terms of our energy security and the protection of the global environment.
  • • Half of September still remains, and we continue to experience many hot days.
  • • Chubu Electric is committed to ensuring that our nuclear power station operates stably, with safety as the number one priority, and we will continue making every effort to enable our customers to use electricity with confidence.

That is all for me.