Key Point of President's Regular Press Conference

Regular Press Conference for June 2011: President Mizuno’s Message

June 28, 2011
Chubu Electric Power Co.,Inc.

My name is Akihisa Mizuno.
It was decided at today's General Meeting of Shareholders and at the following meeting of the Board of Directors that I would be reappointed to my post as President of Chubu Electric Power Co., Ltd. Thank you for your confidence. I will also, therefore, continue to be indebted to all the members of the Electric Power Study Group.

Power supply and demand measures for this summer

Chubu Electric Power has examined additional supply-side and demand-side measures since announcing our plans on May 23.
Today, I will provide an explanation of these additional measures. Making full use of our supply capacity, and with tremendous cooperation from our customers, we seek to maintain a stable supply and weather the crucial summer season.
Please refer to Attachment 1-1.
First, on the supply side, we have decided to change the periods for periodic inspections and reduce inspection procedures at three thermal power stations, and to purchase power from other businesses.
Measures at our thermal power stations include

Suspension of periodic inspections of Shin-Nagoya Thermal Power Station Unit 7－2 (output: 243 MW) and Kawagoe Thermal Power Station Unit 4-4 (output: 243 MW), and operation of the Units from late July to early September
Rescheduling of the commencement of the periodic inspection of Yokkaichi Thermal Power Station Unit 3 (output: 220 MW) from early August to mid-September
Moving the date for completion of the periodic inspection of Kawagoe Thermal Power Station Unit 2 (output: 700 MW) from mid-July to early July

The additional implementation of these changes to the periods for periodic inspections and reduction of inspection procedures at three power stations will increase our supply capacity by a maximum of 560 MW in August.
In addition, from July to September, we will purchase 30 MW of power from businesses possessing large-scale generation facilities.
I will discuss the supply capacity obtained from these measures by month. Please refer to the Total column in Table 4 in Attachment 2.
The additional supply capacity provided by the supply-side measures that we have newly announced today will be highest in July, at 430 MW.
However, because we will be unable to purchase the additional 350 MW of power that we had initially planned for, our additional supply capacity will be 240 MW in August and 10 MW in September.
Next, I will discuss demand-side measures. Please refer to Attachments 1 - 2.
We project that an increase in the volume of power generated by customers with home generators will reduce the amount of power supplied by Chubu Electric by approximately 60 MW.
In addition, the cooperation of our corporate customers in expanding planned adjustment contracts, among other measures, has provided us with an additional adjustment capacity of approximately 90 MW.
We have revised our peak load projections for July and August, reflecting the effect of these demand-side measures.
We predict that peak load in July and August will be reduced by 150 MW against previous projections, to 26,220 MW (generating end).
Please refer to Tables 2 and 3 in Attachment 2.
We expect, by means of these supply-side and demand-side measures, to increase our monthly reserve margin for supply this summer by around 1% against the previously announced level of around 5%, to 6-7%. However, this still does not meet the 8% - 10% reserve margin that is the usual criterion for stable supply.
Please refer to Attachment 3.
In addition to indicating our reserve margin for supply by month, we are also publishing the margin by week for the period from the third week of July to the second week of September. The reason for this is that, having reflected the special adjustments made by our customers in their production processes and operations, etc. in our calculations, it was judged more appropriate to offer our customers detailed information concerning our power supply and demand projections.
I would like to take this opportunity to offer my deepest gratitude to our many customers who have cooperated in energy-saving measures including the aforementioned operational adjustments.
Power demand peaks during the daytime on summer weekdays. This summer, despite the implementation of a variety of measures on the supply and the demand sides, we predict that power supply and demand conditions will continue to be severe from 13:00 to 16:00 Monday to Wednesday.
At Chubu Electric Power we are taking all measures possible to ensure stable supply, including steadily implementing priority inspection and maintenance operations for our generating facilities and the related transmission and conversion equipment.
We sincerely regret causing any trouble for our customers, but we are requesting them to continue to cooperate in energy-saving efforts between 13:00 and 16:00 from Monday to Wednesday this summer.
We predict that power supply and demand conditions will be particularly severe between 13:00 and 16:00 from Monday to Wednesday in the weeks in which our projections indicate that our reserve margin will fall below the adequate reserve margin: the third and fourth weeks of July, the fourth and fifth weeks of August, and the second week of September, and we are therefore repeating our requests to our customers to implement exceptional energy-saving measures.
That concludes my remarks for today.

Attachment

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