Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
March 2013 Regular Press Conference: President Mizuno's Message
March 26, 2013
Chubu Electric Power Co.,Inc.
- Today I would like to discuss
- FY2013 “Operating Objectives”
- Filing of FY2013 “Electric Power Supply Plan”
FY2013 “Operating Objectives”
- Please see Attachment 1, “Overview of ‘FY2013 Operating Objectives.’”
- These “Operating Objectives” summarize the directions the Chubu Electric Power Group wishes to take over the medium term as well as specific measures for achieving them, and it is our practice to publicize these objectives widely every year.
(Three Key Initiatives)
- Since the accident at Tokyo Electric Power Company, Inc.’s Fukushima Daiichi Nuclear Power Station, the environment facing the electricity business has changed drastically. Chubu Electric Power also continues to face extremely challenging conditions, including a reduction in our supply capacity due to the suspension of operations at Hamaoka Nuclear Power Station and poorer profitability because of rising fuel costs.
- In response, Chubu Electric Power is putting every effort into “Three Key Initiatives,” namely:
- Initiative to further enhance safety of Hamaoka Nuclear Power Station
- Initiative for stable supply of electric power
- Initiative for management efficiency
(Initiative to further enhance safety of Hamaoka Nuclear Power Station)
- I would like to talk about the first of these “Three Key Initiatives,” namely the “Initiative to further enhance safety of Hamaoka Nuclear Power Station.”
- Chubu Electric Power is going beyond responding to the national government’s safety standards as in the past. To enhance safety at Hamaoka Nuclear Power Station, we have taken a number of safety measures, always reflecting the most up-to-date knowledge. These include voluntarily setting strict targets and performing construction to increase seismic durability margins in anticipation of a triple-interlocked Tokai/Tonankai/Nankai earthquake.
- In addition, in light of knowledge learned from such incidents as the accident at the Fukushima Daiichi Nuclear Power Station, we have decided to take measures against tsunami and severe accidents.
- Presently, we are making great efforts to install a tsunami protection wall and flood protection walls, install gas turbine generators on high ground and take other tsunami measures.
- Going forward, we will also be steadily taking severe accident measures, such as installing filter vent equipment.
- In addition, we will make an appropriate response to new safety standards that the Nuclear Regulation Authority is considering for nuclear power stations, in light of the state of that investigation, and will continue to enhance the safety of Hamaoka Nuclear Power Station, always reflecting the most up-to-date knowledge.
- We will also take initiatives to give the local community and society in general a sense of security by carefully explaining these measures.
(Initiative for stable supply of electric power)
- Next, I would like to talk about our “Initiative for stable supply of electric power.”
- This winter again our customers continued to help conserve energy in all kinds of ways. Once again I would like to thank them sincerely.
- Until now, we have estimated the energy conservation effect achieved by customers in our service area to be about 650 MW. However, we will be announcing new numbers after we have analyzed data through March, as based on this winter’s results.
- Next, I’d like to talk about the supply and demand outlook for summer this year (2013).
- We anticipate that this summer’s maximum power three-day average at the generating end will be about 24.9 GW. This is about 300 MW greater than the peak load results for last year (2012).
- On the supply capacity side, Joetsu Thermal Power Station Unit 1-2 (595 MW) started commercial operation in January 2013, and we anticipate a similar start at Unit 2-1 (595 MW) in July.
- With the additional supply capacity, we forecast a stable supply of electric power for our customers this summer, just like the summer of last year (2012).
- However, the foundation of a stable supply is not completely firm as yet. For example, we continue to operate older thermal power units since operations have been suspended at Hamaoka Nuclear Power Station.
- Since the suspension of operations at Hamaoka Nuclear Power Station, we have endeavored to secure our supply capacity through such steps as deferring and shortening periodic inspections at thermal power stations. At the same time, we have made every effort to secure the additional fuel needed.
- Heading into this summer, we continue to perform prioritized inspections of power stations and transmission and substation facilities as we ensure a stable supply of electric power to the Chubu Region.
- In addition, we will support other electric power companies that expect to have a tight supply and demand situation.
- Looking ahead, the national government’s Electric Power Supply and Demand Verification Subcommittee will be discussing such issues as the FY2013 summer supply and demand outlook.
- Therefore I would like to talk again later about asking our customers to conserve energy, after we see how the committee’s discussion goes.
(Initiative for management efficiency)
- The third “Key Initiative” is our “Initiative for management efficiency.”
- Chubu Electric Power is working to achieve thorough management efficiency in equipment deployment, operation and procurement and all aspects of business operations.
- In terms of equipment, for example, our efforts have included implementing high-efficiency combined-cycle generation and updating gas turbines to a new type as we seek to increase overall thermal efficiency. In the area of distribution, we have worked to reduce electric power transmission and distribution loss.
- As a result of this initiative, we have greatly reduced capital investment, fixed assets in our electricity business, and repair costs.
- In terms of business operations, we have continuously pursued efficiency, including an effort to slim-down our staff, which began even before this. As a result, we have achieved a high level of labor productivity.
- Since the suspension of operations at Hamaoka Nuclear Power Station, we have been working to create even greater management efficiencies for more cost savings. There is no aspect of our operations where we have not tried to find savings. For example, we have been revising construction methods, practicing economical fuel procurement and use, and revising publicity and sales initiatives and R&D/system development processes.
(Chubu Electric Power Group Management Vision 2030 “What We Aim For”)
- Next, I'd like to talk about “What We Aim For.”
- Chubu Electric Power established its “Chubu Electric Power Group Management Vision 2030” in February 2011.
- We are steadily pursuing initiatives to achieve “What We Aim For” in 2030 as described in this management vision.
- Moreover, Japan is currently considering electric power system reforms based on full deregulation of retail electric power, among other measures.
- Chubu Electric Power is committed to achieving “What We Aim For” and building a better electric power system for its customers. To do this, we are working proactively to provide a stable supply of electric power and offer our customers a wide range of services through competition.
(Initiatives for achieving “What We Aim For”)
- In keeping with this stance, our recently established “Operating Objectives” set out the following as initiatives for the Chubu Electric Power Group going forward:
- Becoming the top corporate group in energy services
- Enhancing stability, economy and flexibility in fuel procurement
- Actively implementing high-efficiency combined-cycle generation
- Promoting renewable energy
- Initiative for business continuity in the event of a major earthquake, etc.
- The environment facing the electric power industry has changed greatly since the Great East Japan Earthquake, but the Group’s mission as an electric power utility—to provide a stable supply of safe and inexpensive energy for our customers—remains unchanged.
- Chubu Electric Power will continue to fulfill its mission as an electric utility. At the same time, we will fulfill our social responsibility as a good corporate citizen that gives people peace of mind, by listening sincerely to our customers and local communities and responding to their expectations and trust.
Filing of “FY2013 Electric Power Supply Plan”
- Next, I’d like to talk about the filing of our “FY2013 Electric Power Supply Plan.”
- If you could please look at Attachment 2.
- Chubu Electric Power filed its “FY2013 Electric Power Supply Plan” with the Minister of Economy, Trade and Industry today.
- A power supply plan is filed by a power utility in accordance with the provisions of the Electricity Utilities Industry Law. It sets forth the utility’s plan for supplying electric power for the coming 10-year period together with plans for the installation and operation of electrical facilities during that time.
- In the supply plan that we just filed, we answered “undecided” in response to items concerning nuclear power station plans and supply capacity. We gave this response because we cannot project when we and other companies will be able to resume operations of our nuclear power stations or develop new ones.
- That is all from me today.