December 2013 Regular Press Conference : President Mizuno's Message

• 2013 will soon be over. The environment facing the electric power industry has changed drastically since the Great East Japan Earthquake. Chubu Electric Power, like others in the industry, continues to face serious challenges. Especially, this year was a tumultuous for Chubu Electric Power.

(Application to increase of electricity rates)

• First, I would like to speak about the application on 29 October to increase our electricity rates.
• As we had announced, Chubu Electric Power applied to increase our electricity rates due to further increased fuel expenditure for our thermal power station and so on. The application is the first that we have made since 1980.
• The Expert Committee on Reviewing Electricity Rate has now met five times, including a session yesterday, and is examining the appropriateness of our application.
• Tomorrow, December 26, the Ministry of Economy, Trade and Industry will hold public hearings in Nagoya City, where we hope to receive valuable input and questions from those participating. We will reply as courteously and conscientiously as possible.
• We regret any inconvenience to our customers, but at this time, as we look back on the last year, we ask for their continued understanding.
• All of us at Chubu Electric Power will keep striving for further management efficiency.

(Safety enhancement initiatives for Hamaoka Nuclear Power Station)

• Next I would like to discuss our safety enhancement initiatives for Hamaoka Nuclear Power Station.
• Up to the present, Chubu Electric Power has been taking voluntary countermeasures against tsunami and serious incidents. We are considering a series of additional responses necessary to conform as soon as possible to the Nuclear Regulation Authority’s new regulatory requirements in effect since July of this year.
• In September, we have decided to implement a set of additional safety measures based on the new requirements to be introduced to Hamaoka Nuclear Power Station Units 3 and 4. Work to introduce these additional measures is scheduled to be completed at the end of September 2015 in the case of Unit 4 and at the end of September 2016 in the case of Unit 3.
• Allow me to provide some details of the status of progress of our safety enhancement initiatives for tsunami and earthquake countermeasure-related work.
• In September of this year, work started on raising the height of the station’s tsunami protection wall from 18 m to 22 m above sea level. We are currently installing the additional part at the top and reinforcing the lower part of the wall.
• In July this year we finished installing watertight doors at about 180 points in Units 3-5 to prevent tsunami from flooding the reactor buildings and causing equipment critical to safety to stop functioning.
• In May we finished constructing the gas turbine generator building on high ground, 40 m above sea level. Among other current tasks, we are now building an underground room that will house a fuel tank, as well as constructing an emergency materials and equipment storehouse.
• Earthquake countermeasures we are pursuing include remodeling supports for pipes and electrical circuits in Units 3 and 4, reinforcing such areas as slopes on the station site along the power supply route from the high-ground gas turbine generator to the reactor buildings, and stabilizing the ground under the tsunami protection wall near Unit 5. At the present time we are doing detailed design work for these tasks, and will begin actual work on each when preparations are complete.
• We began installing filter vent equipment in Units 3 and 4 in June. Presently, we are building the Unit 4 filter vent room and digging a piping tunnel for it.
• Chubu Electric Power is steadily undertaking physical countermeasures such as these to enhance safety. With these and additional “soft” preventive measures, we aim to conform to the new regulatory requirements as soon as possible.
• We believe that it is more important than any other to provide detailed explanations of our initiatives to local residents and society at large, and ask for their understanding.
• Going forward, we will make the necessary preparations so that we will be able to apply for certification of conformity to the new standards at Unit 4 as early as possible next year, and do the same for Unit 3 in the coming fiscal year.

(Business alliance with Tokyo Electric Power Co., Inc. ,etc.)

• As part of our growth strategy, in 2013 we developed business outside our service area and developed new business in fuel procurement.
• Concerning developed business outside our service area, we acquired stocks of Diamond Power Corporation in October, and we established Hitachinaka Generation Co., Inc., with Tokyo Electric Power Co., Inc. in December.
• In the field of fuel procurement, in May we received permission from the US Department of Energy to export fuel from the Freeport LNG project, which we have been pursuing with Osaka Gas. This is a great step forward for our natural gas liquefaction business.
• Also in May, we began jointly procuring LNG with Korea Gas Corporation (KOGAS) to enhance the stability and flexibility of our LNG procurement.
• While maintaining a balance of revenues and expenses is very challenging at this time, Chubu Electric Power is positioning itself for sustained growth. To this end, we plan to carefully select and pursue the investments that need to be made at present.
• At Chubu Electric Power, we believe it is extremely important to respond appropriately to the management issues we face, while also keeping the future in mind as we work steadily to enhance our revenue base and thereby benefit our customers.
• That concludes my remarks for today.