September 2012 Regular Press Conference: President Mizuno’s Message

[Thank you for conserving energy]

• First of all, I would like to say how much I appreciate the efforts of customers throughout our region to reduce their electric power usage this summer. I extend my sincere thanks to them all.
• As a result of energy conservation efforts by our customers, continued from last year, we were able to avoid electric power supply problems during the summer.
• Our domestic customers have been more diligent than ever in conserving energy by adjusting the temperature for air conditioning, switching off lights not in use and so on.
• Our corporate customers also engaged in a variety of efforts such as efficient use of production equipment, air conditioning, lighting and other equipment to conserve energy as far as possible without hindering production. We greatly appreciate the trouble they took.
• Energy conservation efforts by many of our customers resulted in a stable electric power supply this summer.
• The effects of the energy conservation measures, which exceeded national targets, are reflected in the supply and demand results.
• Once again, I would to express my sincere thanks to all our customers.

[Electric power supply and demand results for summer 2012]

• Next, I will address this summer’s supply and demand results. Please refer to the Attachment to Reference 1.
• Please refer to Attachment section 1. (1) “Peak load.”
• This summer’s peak load (one-time demand peak), at 24,780 MW (July 27), was 1,700 MW below the estimated value of 26,480 MW (calculated from the one-time peak load for the 2010 heat wave by factoring in energy conservation measures).
• Some of the reasons why this peak load was 1,700 MW below its estimated value were that

• Customers’ energy conservation efforts served to limit demand.
• Temperatures this summer were not as high as in the 2010 heat wave.

[Effects of this summer’s energy conservation measures]

• Next, please refer to Attachment section 1. (2), “Effects of energy conservation measures.”
• Peak load was reduced by customers’ energy conservation efforts. If we compare this summer’s results with those for FY2010, after leaving out of account customers’ operational circumstances and the effects of temperature, we can estimate the reduction of peak load due to customer energy conservation efforts (including an additional 250 MW through planned adjustment contracts) at approximately 1,550 MW.
• Although a full analysis is difficult, we can assume that, of this 1,550 MW (which includes energy saved through planned adjustment contracts), approximately 950 MW resulted from energy conservation measures by corporate customers and 600 MW from those by domestic customers.
• We can also assume that, in addition to the above energy conservation measures by numerous corporate customers following the high targets for energy conservation that they set last summer, the wholehearted efforts of domestic customers, who found ways to conserve energy by diligently keeping air conditioners set to 28℃, using them jointly with electric fans and so on, contributed to this large effect.
• Further, we can assume that the increasing trend toward the replacement of electrical appliances with the latest energy-saving models and the use of LED lighting were important factors.
• As a result of the above continuing efforts by corporate customers and increased efforts by domestic customers to conserve energy, we were able to exceed our estimate for energy conservation.

[Power sold this summer]

• With nuclear power plants shut down, first west-central Japan and then the entire country faced an electric power shortage this summer. Therefore, provided that we were able to maintain a stable electricity supply in our region, we supplied power to other electric utilities.
• Please refer to Attachment section 2, “Electric power supply and demand this summer.”
• By effectively implementing pre-planned supply measures, we secured the supply capacity necessary to ensure stability of the electric power supply.
• Because demand for electric power remained lower than expected, we were able to maintain a steady supply throughout the summer period and sell surplus electric power to other utilities.
• Please refer to Attachment section 2. (2）”Power sold to other electric utilities.”
• During peak hours on weekdays this summer we were able to sell up to 1,360 MW to Kansai Electric Power (September) and up to 900 MW to Kyushu Electric Power (August).
• However, the unplanned shutdown of a number of thermal power plants in September led to a decrease in our surplus power. To ensure stability of supply in our region we limited the supply of power to other utilities for a period of four days in total.

[Problems at thermal power stations]

• I would like to turn to the situation at the thermal power stations. Please refer to the right side of page 2 of the Attachment, section 3, “Unplanned shutdowns at power stations.”
• Although the problems that occurred at Joetsu, Shin-Nagoya and Atsumi Thermal Power Stations in September fortunately did not greatly affect supply and demand, they did cause inconvenience and concern to many people.
• I would like to speak about the current situation at each of these thermal power stations.

(Joetsu)

• Dismantling and inspection of Joetsu Thermal Power Station Unit No. 1-1, where a shutdown occurred on September 1, are largely complete. They show that there is damage to one steam turbine vane.
• The damage to the turbine is being inspected by the manufacturer.
• The steam turbine will be replaced, and we expect a resumption of service in mid-October.

(Shin-Nagoya)

• Shin-Nagoya Thermal Power Station Unit No. 8-2, where a fire occurred on September 15, is being opened to allow detailed inspection.
• The gas turbine is being opened at this time, and the steam turbine will be opened in mid-October. We should then be in a position to carry out detailed checks and inspections for further damage.
• While carrying out the above work, we are continuing our investigation to identify the fire’s point of origin and its cause.
• Although work on opening and inspecting the turbines is still in progress, we expect resumption of service before the end of the year.

(Atsumi)

• Internal inspection of the boiler at Atsumi Thermal Power Station Unit No. 3, where a shutdown occurred on September 18, found an approximately 10 mm-long crack in an evaporator pipe, and corrosion inside the pipe extending approximately 20 mm axially.
• We assume that force (mechanical stress) repeatedly exerted on the corroded area inside the pipe during startup and shutdown of the unit caused the crack to develop.
• The cracked evaporator pipe was replaced, and repair work was completed on September 27.
• We are treating the current problems very seriously. We shall make every effort to resume operations in the near future while preventing a reoccurrence of these problems.

[Start of construction work on Mega Solar Shimizu]

• Finally, I would like to speak about the start of construction work on Mega Solar Shimizu.
• Today, we began construction work at the site of the planned Mega Solar Shimizu in Shizuoka City’s Shimizu Ward. Please refer to Reference 2.
• At 8 MW, Mega Solar Shimizu will have the largest output of all our facilities, and commencement of operations there is planned for FY2014.
• With an estimated annual output of 8,400 MWh, Mega Solar Shimizu will be able to supply electric power equivalent to the annual usage of 2,300 average households and, as planned, will allow an estimated reduction in CO₂emissions of approximately 4,000 tons per year.
• We started construction work at the site today, and we shall be grateful for the understanding and cooperation of local residents and other parties concerned. Safety will be our main priority as we proceed with the construction work.
• Renewable energy faces challenges in terms of economy and stability, but it is low-carbon energy. Furthermore, as domestically produced energy, it is valuable for Japan given the country’s low energy self-sufficiency.
• Chubu Electric Power, in unison with its Group companies, is wholeheartedly pursuing the development of low-cost renewable energy in order to make a low-carbon society a reality.
• That is all from me today.