Key Point of President's Regular Press Conference

September 2019 Regular Press Conference : President Katsuno's Message

October 01, 2019
Chubu Electric Power Co.,Inc.

To begin, I would like to focus on Typhoon No.15 (Faxai).
I would like to express my greatest sympathy to everyone who suffered from the damage wrought by this typhoon.
With the goal of early restoration of any service interrupted by the typhoon, Chubu Electric Power began preparing ahead of the typhoon’s landfall to deploy power-generating vehicles as soon as any areas were affected. Since the official appeal for assistance went out, we and our group companies have deployed a total of 2,933 personnel and 42 power-generating vehicles.
The longest service interruptions following last year’s Typhoon No. 21 (Jebi) and No. 24 (Trami) were 6 days and 12 hours and 5 days and 20 hours, respectively. These power outages caused great inconvenience and hardship for many of our customers. Typhoon No. 15 resulted in prolonged power interruptions still unresolved after more than three weeks. Such conditions once again impress upon us the magnitude of the impact that these events have on society.
In the weeks and months ahead, reviews will be conducted on what transpired from a variety of perspectives, and we will make use of the new knowledge and other insight gained in this process, putting it to use as we strive to further enhance our resilience.
I will be discussing the following matters today:

Electric power supply and demand results for this summer in the Chubu area
Reorganization necessary for the post-split business structure

Electric power supply and demand results for this summer in the Chubu area

First, I would like to talk about the electric power supply and demand during this past summer.
From July of this year through yesterday, the maximum three-day power average was 25,390 MW, which was recorded in August, and the maximum power at a single point was 25,680 MW, which was recorded on September 10.
The maximum power at a single point recorded in September is the highest figure since the Great East Japan Earthquake.
On the supply side, we interchanged 500 MW of power from other companies due to a tight demand-supply situation. Ordinarily, there would have been a decrease in capacity supplied by photovoltaic generation during the evening hours together with a decrease in demand. However, on September 10, the temperature was high at 3 p.m. when we made the power interchange decision as we estimated that demand would not decline that evening either.
In addition, a similar trend was observed the following day on September 11, so we invoked Power Source I’ to secure balancing power so that we could adjust the level of supply to meet demand. I would like to express my appreciation to our customers, with whom we previously entered into electric power and demand adjustment contracts, for their cooperation.
In the future, we will analyze changes in the energy supply and demand structure, including the large volume adoption of renewables, demand trends during heat waves and severe winters, and other factors.
In addition, the Chubu Electric Power Group continue to work together even after the split as we strive to “fulfill our unwavering mission” which is to provide a stable supply of electric power.

Reorganization necessary for the post-split business structure

Next, I would like to discuss our reorganization that will allow us to adapt to the post-split business structure.
In April 2019, Chubu Electric Power integrated our thermal power generation business into JERA. In April 2020, our power transmission and distribution business as well as the sales division will be spun off as we transition to a “model that separates power generation from sales” in which each division deals with a different market and operates its business independently.
With the goal of translating this new business model into action, Chubu Electric Power will implement a reorganization on April 1, 2020 that will allow Chubu Electric Power, Chubu Electric Power Grid and Chubu Electric Power Miraiz to cooperate and maximize the Chubu Electric Power Group’s value even after the split while, at the same time, achieving overall optimization.
I would like to address how we will enhance our management strategy and management functions.
For better coordination among our group companies as well as overall optimization, we will restructure the organizations responsible for corporate strategy and management of the Chubu Electric Power Group into the Corporate Planning & Strategy Division and Corporate Management Division.
More specifically, the Corporate Planning & Strategy Division will formulate and monitor the strategic vision and management plan across our entire group with the aim of promoting cooperation among group companies and maximizing corporate value.
The Corporate Management Division will handle legal affairs, financial affairs and other management functions and ensure appropriateness through controls and management over the entire group.
In addition, to strengthen our relationship with our stakeholders, the general affairs, corporate communications, environmental affairs, regional relations and other functions will be merged into the Corporate Communication　Division.
Within this division, we will promote greater collaboration and information sharing, thereby improving communication with our stakeholders.
Moreover, to reduce costs as well as maintain and improve the quality of universal services within our company, the Business Service Division will integrate general affairs, property administration, human resources, finance & accounting, purchasing & contracting, IT systems and other functions.
Lastly, with top management’s commitment to healthcare management and desire to promote a safety culture throughout our entire group, we will establish the Safety & Health Promotion Office which will further uphold these priorities.
Next, I would like to discuss the continuation of community activities and operations.
Among the functions that our current regional offices handle, the regional offices to be established within Chubu Electric Power Grid will take over coordination of stable supply with local municipalities and other government organizations.
Furthermore, the competent directors responsible for each region serviced by Chubu Electric Power, our holding company, will continue to coordinate with companies and take charge of regional communications concerning businesses or projects relating to the entire group, so the current Nagoya, Mie, Gifu, Nagano and Okazaki regional offices will be closed.
However, the Shizuoka Regional Office will remain open and continue to respectfully convey to the region’s residents the initiatives and other efforts that we are making to further enhance the safety of the Hamaoka Nuclear Power Station.
The Regional Business Division, which will be established within Chubu Electric Power Miraiz, will continue to conduct business activities as the regional hub.
With this new organizational structure, Chubu Electric Power will aim to increase earnings in the energy sector, grow into a stronger corporate group, and endeavor to coordinate our respective business areas so as to provide a stable supply of electric power.

TECHNO FAIR 2019

Lastly, I would like to make an announcement about TECHNO FAIR 2019, which the Research & Development Division will hold on October 31 and November 1.
TECHNO FAIR is held annually to showcase our research and development efforts. Every year, approximately 3,000 customers and other attendees visit this event, and this year marks the 27th time that we have held this event.
This year’s theme is the “New Age of Energy: Challenges for the Future.” The latest technological developments will be presented in activities relating to:

Nuclear safety technology
Stable supply in the new era
Provision of community support infrastructure and innovative technologies
Core technologies supporting the energy business

This ends my presentation.

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