Regular Press Conference for February 2012

• First, I’d like to talk about our donation for an endowed research division at the Disaster Mitigation Research Center, Nagoya University. Please see “Reference 1.”
• Chubu Electric Power has decided to make a donation to establish an endowed research division at the Disaster Mitigation Research Center, Nagoya University.
• The research division will be called the Energy Disaster Prevention Endowed Research Division. With our donation of 185 million yen, the division will be established for five years, from April 2012 through March 2017.
• Nagoya University’s objective for the new endowed research division is to help enhance regional disaster prevention through the safe and stable supply of energy. As Chubu Electric Power is a lifeline for the Chubu Region, we endorse the university’s cause and have decided to make the donation in light of the importance of energy disaster prevention.
• Some of the specific research themes to be explored in the department are:

• Anticipating the scale of and damage from earthquakes and tsunami
• Research into pre-disaster countermeasures and rapid recovery measures for energy facilities, etc.
  Chubu Electric Power will also help advance the research by sending two of our own experts to the division to work on research themes.

• For our part, Chubu Electric Power hopes to continue proactively collaborating to improve regional disaster prevention through the safe and stable supply of energy.

(Disaster countermeasures for Chubu Electric Power facilities)

• Chubu Electric Power has been taking measures against large-scale earthquakes (such as simultaneous Tokai, Tonankai and Nankai earthquakes) and maintaining a crisis management system.
• This includes countermeasures to earthquakes and tsunami at the Hamaoka Nuclear Power Station, but we are also taking countermeasures to large-scale earthquakes and tsunami affecting our thermal and hydroelectric power generation facilities and power transmission and distribution facilities.
• I would like to take this opportunity today to talk about our stance on preparations for large-scale earthquakes and tsunami at Chubu Electric Power.
• Please see the Reference 1 attachment, “Stance on Design in Large-scale Earthquake and Tsunami Countermeasures.”
• We believe that, broadly speaking, three countermeasures to large-scale earthquakes and tsunami are necessary.
• Specifically, those three are:

• “Pre-disaster countermeasures,” taken before disaster strikes, to maintain facilities’ major functions, keep them operating or protect the public
• “Mid-disaster countermeasures” – the initial response immediately after a disaster begins. These countermeasures are taken to ensure safety and secure the systems and emergency personnel for preventing secondary disasters caused by fire, electricity, etc.
• “Post-disaster countermeasures,” which include making recovery plans and securing the spare equipment and supplies necessary to minimize damage and allow business to continue.

• We believe that, particularly in the case of large-scale earthquakes and tsunami, it is crucial to have made proper preparations in advance to respond with mid-disaster and post-disaster countermeasures in case our pre-disaster countermeasures are overwhelmed.
• You have already heard about the state of countermeasures to earthquakes and tsunami at Chubu Electric Power’s nuclear power facilities, but we are also taking a variety of initiatives for thermal power, hydroelectric power and power transmission and distribution facilities.

(Thermal power facilities)

• Today, I would like to take our thermal power facilities as an example.
• Starting with examples of pre-disaster countermeasures, for public safety, we have long taken measures for buildings, water intake and discharge facilities, etc. to protect against earthquake tremors and liquefaction.
• Presently, we are further reinforcing major facilities to prevent any situation that would cause them to stop functioning.
• For example, at the Hekinan Thermal Power Station we performed ground reinforcement work under an intake tank in October 2011 to inhibit liquefaction, and we studied designs for a project to increase the seismic durability of a coal conveyor.
• Next, I’d like to talk about our initiatives for mid-disaster countermeasures.
• Steps we were already taking in the past as mid-disaster countermeasures for thermal power facilities include:

• Installing oil and gas leak detectors
• Using emergency shutoff valves to prevent fuel leaks and spills
• Installing firefighting equipment to keep fires from occurring and/or spreading

• Presently, we are taking further steps against secondary disasters resulting from earthquakes and tsunami.
• For example, at the Hekinan Thermal Power Station, we began work in November 2011 to install fire prevention and extinguishing pipes above ground (they are presently buried). This will enable the facility to recover faster in the event of an earthquake.
  Above-ground pipes will be installed in future at all power stations where necessary.
• We are also considering a number of countermeasures to prevent fuel spills at Owase Mita Thermal Power Station, which could potentially suffer tsunami damage.

• Installing a circuit that will allow multiple lines between ship and oil tank to be shut off simultaneously when filling tanks
• Building a facility to move fuel ships away from the wharf quickly when a tsunami is approaching

• Finally, I’d like to talk about our initiatives for post-disaster countermeasures.
  It is important to have a recovery plan ready and to maintain the systems and arrangements in advance so that we can quickly restore electricity to customers following a disaster.
• Steps we have previously taken to ensure an early recovery include:

• Maintaining a manual to ensure that major power generation facilities operate dependably and safely following a disaster
• Securing spare equipment and supplies for quickly replacing damaged facilities

• Currently, we are studying expanding the range and enhancing stockpiles of spare equipment and supplies so that we can respond even more quickly to earthquakes and tsunami.

(Power transmission and distribution facilities)

• Getting electricity to customers requires not only thermal power and other generating facilities, but also power transmission and distribution facilities. I would like to say a word about the state of our disaster countermeasures for transmission and distribution facilities.
• Initiatives previously taken by Chubu Electric Power include:

• Ground reinforcement at substations built in areas with liquefaction risk
• Increasing our portable transformers for early recovery of supply capacity, etc.

• Additionally, in light of damage to transmission and distribution facilities caused by the Great East Japan Earthquake, an expert working group has been set up under the government of Japan’s Advisory Committee on Energy and Natural Resources (a consultative body of the Minister of Economy, Trade and Industry) to evaluate and study that situation.
• For our part, Chubu Electric Power will consider the government’s study results as we continue taking appropriate initiatives.

(Conclusion)

• In light of the Great East Japan Earthquake, we believe that much new knowledge will be acquired, including findings of the Central Disaster Prevention Council’s review of massive earthquakes in the Nankai Trough.
• Chubu Electric Power will appropriately reflect such new knowledge and new standards in our measures to build stronger disaster prevention.

• The second point I’d like to talk about is the transfer of our fuel trading function to Singapore in order to further strengthen coal procurement. Please see “Reference 2.”
• Chubu Electric Power has been engaged in a fuel trading business through a partnership with EDF Trading Limited, but in order to expand that business, we have decided to transfer to Singapore the trading function that is now held by our subsidiary Chubu Energy Trading, Inc.
• Chubu Electric Power has already centralized handling of all the coal we require at Chubu Energy Trading, but beginning in April this role will be handed off to a new subsidiary in Singapore.
• Singapore is the hub of coal trading in Asia, and by moving our trading base there we can secure better access to abundant coal trading information as well as skilled personnel. This will allow us to make transactions that are more timely and appropriate for our own coal demand.
• By strengthening and expanding our coal trading function, Chubu Electric Power will enhance the stability, flexibility and economy of fuel procurement and better ensure a stable and inexpensive supply of electric power.
• That is all for me.