May 2012 Regular Press Conference: President's Message

First, I would like to talk about the electric power supply and demand outlook for the Chubu Electric Power service area this summer.

As we have already announced, Chubu Electric Power reported this summer’s supply and demand outlook on April 23 at the request of the Ministry of Economy, Trade and Industry.

The content of our report was verified by the national government’s Supply and Demand Verification Committee before being reported to the Energy and Environment Council on May 14.

Although there have been no changes of report contents resulting from the verification by the Supply and Demand Verification Committee, I would like to give a simple overview of our report one more time.

Peak load this summer (found by taking the one-time peak load during the 2010 heat wave and factoring in energy conservation measures) is estimated to reach 26.48 GW in August.

On the other hand, we have augmented our supply capacity through the following measures.

• Starting commercial operation of Joetsu Thermal Power Station Unit 1-1 (Output: 595 MW)
• Continuing to operate thermal power units under long-term planned shutdown, such as Taketoyo Thermal Power Station Unit No. 2

Other measures will include deferring all periodic inspections of thermal power stations that had been planned for August this year.

Other regional power companies facing supply shortages moreover have asked Chubu Electric Power to supplement their supplies, and we plan to supplement about 1 GW during the peak hours between 1:00 - 4:00 PM and up to 2.3 GW during other hours.

Therefore, our supply capacity to the Chubu Electric Power service area, including an emergency increase of 100 MW in thermal power output, will be 27.85 GW. This is equivalent to a reserve margin of 5.2%.

Converted to the 2012 summer peak load (maximum power three-day average), the reserve margin is 8.1%, and therefore our outlook calls for a stable supply.

Next, I’d like to talk about energy conservation in the Chubu Electric Power service area.

First, though, let me thank everyone again for all the ways they have helped to conserve energy since last year.

This summer is predicted to bring a very challenging electric power supply and demand situation throughout Japan. Serious electric power shortages are expected particularly in some parts of Western Japan. The national government therefore has reviewed electric power supply and demand measures for the country based on the supply and demand outlooks reported by each of the electric power companies.

The national government completed its review today and is asking customers, including those in the Chubu Electric Power service area, to conserve energy in order to allow us to supplement electric power to areas expected to have supply shortages.

The request for energy conservation applies to the entire nation, covering weekdays between 9:00 AM - 8:00 PM from July 2 (Monday) - September 28 (Friday). Citizens are asked to conserve energy, although no nationwide numerical targets have been given.

In the Chubu Electric Power service area, on weekdays between 9:00 AM - 8:00 PM from July 2 (Monday) - September 7 (Friday), with the exception of the Obon holidays of August 13-15, the national government is calling for a 5% reduction in peak power use compared to the summer of 2010.

The peak load for the Chubu Electric Power service area factors in the following.

• The peak load estimate was reduced by about 600 MW to reflect the energy conservation awareness that has become established among customers
• The peak load estimate was further reduced by about 370 MW to reflect new subscribers to summer holiday contracts, increased output from private power facilities, and other factors

The total of these reductions (970 MW) is equivalent to 3.6% of peak power use during the summer of 2010.

Thus, since our energy conservation target is a savings of 5%, once these assumed savings are accounted for, our customers will need to additionally conserve approximately 1.4% (about 380 MW) from peak power use.

This is a level we can reach if customers in our service area make similar efforts to conserve energy as they did in the summer of 2011, when supply and demand were very tight.

Electric power demand during the summer is particularly high on weekdays between 1:00 - 4:00 PM. While we apologize for the inconvenience, we ask that our customers make a particular effort to conserve energy on weekdays between 1:00 - 4:00 PM.

I would like to give some concrete examples of how to conserve energy.

We would like to ask our residential customers to do the following.

• As a guideline, set the cooling temperature of climate control systems to 28°C
• Use screens of bamboo, reed, etc. to filter sunlight coming through windows
• Turn off unnecessary lighting

Etc.

To give an example of energy savings, customers at home during the day can reduce their consumption 5% by turning off unnecessary lighting during those hours when they use the most electricity.

If customers follow through thoroughly on these initiatives, they will be able to meet the energy conservation targets we are asking of them.

Corporate customers are asked to use production equipment efficiently and conserve energy with their general facilities like climate control and lighting.

We will be teaching these customers about effective means of conserving energy.

We will in addition be making a strong effort to provide information, such as day-to-day supply and demand figures on our web site, to help our customers conserve energy.

Chubu Electric Power will do all we can to ensure a stable supply of electric power in our service area by faithfully carrying out prioritized inspections and maintenance of our power stations and transmission and substation facilities.

We also hope, together with our customers’ efforts to conserve energy, to do all we can to ensure a stable supply of power to Central and Western Japan, where supply shortages are expected.

That is all for me today.