December 2018 Regular Press Conference : President Katsuno's Message

• Stable supply of electricity
• Building a new business model
• Providing a new community
• Sales activities
• Efforts related to Hamaoka Nuclear Power Station

(Stable supply of electricity)

• In regards to the stable supply of electricity, I would first like to apologize for all the outages and overall inconvenience we have caused our customers regarding the many typhoons that passed over the Chubu area.
• Our customers and municipalities were critical of our performance during this time. We have taken this to heart, as a manifestation of the mounting expectations for early recovery resulting from electricity being a utility and the “most important power infrastructure”.
• We will continue to enhance preparations for natural disasters by steadily implementing countermeasures to challenges and reflections gathered during this typhoon season.

(Building a new business model)

• In regards to “building a new business model,” we have finalized our policy to integrate our thermal power generation business into JERA in April 2019 and unbundle the general distribution business and electricity sales business in April 2020.
• This will allow each separated company to grapple with their own unique business environment and market. They will be managed autonomously and will be able to respond flexibly and swiftly to the challenges they face.
• As Japan’s energy business system reaches a historical turning point, Chubu Electric Power has decided to build a new business framework to pursue further growth in entering this new energy era.

(Providing a new community)

• In regards to the “provision of a new community”, we have established in our “Chubu Electric Power Group Management Vision” that we will combine our “energy and telecommunications infrastructure” and the latest digital technology in order to advance the “community support infrastructure” that will help solve the various issues facing our customers and the local community.
• As part of this initiative, we have started services to “watch children and the community” and “check in on the elderly”, and have received positive feedback.
• Our “Chubu Electric Power Group Management Vision” outlines our aim to become a corporate group with a consolidated ordinary income of 250 billion yen in the second half of 2020s by “building a new business model” mentioned above, and building a “community support infrastructure”.

(Sales activities)

• In regards to sales, we have been promoting various initiatives as competition grows tougher across industries and areas.
• We have strengthened our sales framework according to area, type of product, and target customer base by establishing “CD Energy Direct” with Osaka Gas in April, “CS Energy Service” with Chubu Gas in October, and by planning to establish “Chuden Energy Service (tentative name)”, a distributor directly managed by Chubu Electric Power, in February 2019.
• In addition, we will be establishing “Korekara Denki” sometime after November 2019 as a new service for customers whose FIT contracts will be ending. We will create a marketplace where customers can trade in various forms the electricity that they have generated.
• We will continue to cooperate with a diverse range of companies in various industries to gain awareness of the customer needs and to be competitive not only in price but also by providing services with high added value.

(Efforts related to Hamaoka Nuclear Power Station)

• Finally, I want to talk about our efforts at Hamaoka Nuclear Power Station.
• The Nuclear Regulation Authority is currently conducting a regulatory review of Hamaoka Nuclear Power Station Unit 4. The review of design basis ground motion and design basis tsunamis have reached its critical stage. We are currently trying to explain how the fault that runs through and to the north of the station premises is not an active fault.
• We have been explaining to the public the necessity of nuclear power plants and our safety improvement measures. Once the design basis ground motion and design basis tsunami is established, we will be able to explain the effectiveness of our safety improvement measures and the safety of the Hamaoka Nuclear Power Station from a more objective standpoint.
• We will continue to respond to the review sincerely and do our best to ensure that the review team confirms the station’s conformity with the new regulatory standards as early as possible.
• We aim to build a relationship of trust with the local community and society by explaining our efforts at Hamaoka in detail and answering and resolving every single one of your concerns and questions.