Other Press Conferences
Other Press Conferences
Press Conference on the Investigation Report Regarding Improprieties in the Formulation of Design Basis Earthquake Motion During the Review of Compliance with New Regulatory Standards at the Hamaoka Nuclear Power Plant
September 14, 2026
Chubu Electric Power Co., Inc.
President Hayashi's Message
- We would like to once again offer our deepest apologies for causing significant concern and inconvenience to the local community and our many stakeholders, as well as for provoking strong distrust from the broader public, due to repeated incidents of impropriety, including those related to the formulation of design basis earthquake motion.
- Regarding this matter, in January of this year, we established an Investigation Committee composed solely of external attorneys independent of our company, and we have cooperated fully with the investigation while ensuring its independence and neutrality.
- Over the course of approximately eight months, the committee compiled its findings regarding the facts of the matter, identified the causes, and proposed measures to prevent recurrence; we received the committee's report on September 11.
- I would like to take this opportunity to express my heartfelt gratitude to the members of the Investigation Committee.
- I would like to share my overall assessment of the findings from the Investigation Committee's report, which we received the other day.
- The Investigation Committee's report identified the following:
- Not only was there a decline in awareness regarding compliance with relevant regulations, but it was also found that inappropriate conduct was carried out with conviction and conviction, indicating the existence of a "unique theory of justification."
- There are concerns that a similar, peculiar mindset may be spreading, as evidenced by other misconduct cases within our company.
- Due to the high level of specialization, internal oversight and checks and balances were structurally difficult to implement;
- Although oversight mechanisms—such as external experts and internal reporting channels (helplines)—
- and checks and balances were in place, they did not function effectively due to a lack of independence and objectivity;
- We take all of the Investigation Committee's findings extremely seriously and with the utmost sincerity.
- Furthermore, it was pointed out that—despite the existence of factors causing delays in the review for compliance with the new regulatory standards that could not be resolved through our company's own responses or efforts—management reprimanded the Nuclear Civil Engineering Department without fully understanding the actual situation. This acted as pressure and became one of the factors contributing to the inappropriate conduct; we deeply regret this.
- We keenly realize that repeatedly engaging in inappropriate conduct during the formulation of the standard seismic motion—which is fundamental to the safety of the Hamaoka Nuclear Power Plant—is something that must never occur for a nuclear power operator. We feel that this has eroded the trust of the local community and cast doubt on our qualifications as an operator.
- Furthermore, despite repeated internal reports—including whistleblower reports—we, the management team, ultimately failed to identify and correct the problems. We believe this indicates serious issues with our corporate governance and organizational culture.
Withdrawal of the Application for a Permit to Modify the Installation
- We take the findings of the Investigation Committee very seriously. As the operator of the Hamaoka Nuclear Power Plant, we consider it our top priority to restore the trust of the local community and our many stakeholders by fundamentally reviewing our organizational culture and business processes, addressing the identified issues, and ensuring the effectiveness of these measures.
- Furthermore, as stated in the Investigation Committee's report, given that serious doubts have arisen regarding the reliability of the application documents for the permit to modify the installation of Units 3 and 4 at the Hamaoka Nuclear Power Plant and our subsequent responses to the review, we have determined that it is not appropriate to maintain the previous application.
- At today's extraordinary board of directors meeting, we decided to voluntarily withdraw the application for a permit to modify the installation of Units 3 and 4 at the Hamaoka Nuclear Power Plant, and we will take the necessary steps with the Nuclear Regulation Authority as soon as preparations are complete.
- We would like to once again offer our deepest apologies to the Nuclear Regulation Authority and the Nuclear Regulation Commission, whose members have been involved in the review of the compliance of Hamaoka Units 3 and 4 with the new regulatory standards. This matter has rendered their efforts to date futile and has caused them significant inconvenience.
- Furthermore, we deeply apologize for betraying the trust of the local community and the broader public, who have supported us to date, and for causing them significant inconvenience.
- In Japan, nuclear power remains a highly effective means of addressing challenges such as rising electricity demand, decarbonization, and energy security; the importance and necessity of the Hamaoka Nuclear Power Plant remain unchanged.
- We are committed to steadily improving our organizational culture and business processes, sparing no effort to ensure their effectiveness, and making the restoration of trust from the local community and our many stakeholders our top priority.
- With that in mind, we will never give up and will continue to move forward with our efforts toward resubmitting the application.
Directions for Measures to Prevent Recurrence of Improper Conduct
- Next, I would like to discuss "Directions for Measures to Prevent Recurrence of Improper Conduct."
- The Investigation Committee's report points out that an "in-house justification theory"—which prioritized the company's internal logic over the perspectives of society and the local community—underlay the issue, leading some employees to deliberately engage in improper conduct.
- A major contributing factor was management's failure to correct the mindset of prioritizing internal logic over laws and regulations, and its inability to establish an organizational culture that places compliance as the top priority. We take this extremely seriously as a responsibility of management.
- Management failed to fully fulfill its fundamental role of standing alongside frontline staff, sharing accurate information, and thoroughly discussing issues from diverse perspectives.
- As a result, the organization was unable to fully demonstrate its ability to work as a unified whole to resolve challenges, which is a major point of reflection.
- We believe that this organizational dysfunction is the fundamental issue that led to this incident.
- Taking this reflection as our starting point, and driven by a strong determination to ensure that a similar incident never occurs again, we will undertake fundamental reforms.
- To fundamentally resolve organizational dysfunction and comprehensively rebuild our governance and organizational culture, we will implement a overhaul of our management structure and reforms to corporate governance, while also
- Transforming mindsets and behaviors
- Transforming the organizational culture
- Transforming and strengthening governance and checks-and-balances functions
- Regarding "Transformation of Mindset and Behavior," we will ensure that all decisions and actions are thoroughly grounded in our Code of Conduct (Core Values), which serves as the foundation for realizing our corporate philosophy. Additionally, we will revise the core personnel system for executives and senior managers to evaluate whether executives and employees are practicing the behaviors expected of them—such as strict compliance—and reflect these evaluations in promotions, demotions, and other personnel decisions. In this way, we will embed in our systems management's firm stance that "inappropriate behavior" will not be tolerated.
- Furthermore, to enhance the effectiveness of these systems, we will deploy HR Business Partners (HRBPs) and make greater use of multi-source feedback.
- Regarding "Transformation of Organizational Culture," we will redefine the mission of the Nuclear Power Headquarters as "rebuilding a safety culture that prioritizes nuclear safety above all else," "compliance with regulations," and "restoring trust," and rename the organization the "Nuclear Safety Promotion Headquarters."
- Furthermore, to implement fundamental reforms to the organizational climate and corporate culture across the entire Group based on psychological safety, and to build an organizational climate that fosters proactive challenges and sincere decision-making, we will establish a new Organizational Climate and Corporate Culture Reform Organization reporting directly to the President.
- By appointing Mr. Tadashi Shimao, an outside director, as chair of the Board of Directors and the Nomination and Compensation Review Committee, we will enhance management oversight and transparency. We will further advance governance reforms among senior management while incorporating objective external perspectives.
- Regarding "Reform and Strengthening of Governance and Checks and Balances," we will establish a new Nuclear Governance Promotion Department to enhance the effectiveness of governance and compliance within the Nuclear Division. Additionally, we will establish a new Nuclear Quality Assurance Organization to strengthen control, oversight, and support functions related to nuclear quality assurance.
- Furthermore, to eliminate insularity and self-righteousness within the Nuclear Division and introduce diverse perspectives, we will appoint personnel from other divisions and external sources to the positions of Head of the Nuclear Division, Head of the Nuclear Governance Promotion Department, and Advisor to the Nuclear Quality Assurance Division, while accelerating personnel exchanges between the Nuclear Division and other divisions.
- For internal audits, we will comprehensively identify risks, including the possibility of misconduct, and introduce a new system for utilizing external advisors to incorporate an objective perspective.
- Furthermore, to strengthen our response to internal whistleblower reports and conduct more appropriate and careful investigations based on the nature and severity of each case, we will restructure our consultation desk by engaging external attorneys and specialized firms that specialize in fraud investigations. Additionally, we will ensure that investigation policies and findings are subject to careful discussion and judgment by multiple parties.
- Furthermore, we will establish a new internal reporting (helpline) channel within the Audit and Supervisory Committee, which is independent of management.
- Finally, we believe that in order to restore the trust we have lost, it is essential to engage in even more frequent dialogue with the local community than before, sincerely listen to their voices, and reflect their feedback in our business operations.
- To this end, we will establish the Shizuoka Regional Headquarters and relocate the Hamaoka Regional Office outside the power plant premises. By doing so, we aim to enhance our responsiveness and capabilities in addressing regional challenges and will work step by step to rebuild the trust we have lost.
- Please note that these initiatives are not the only measures we are taking.
- We take extremely seriously the criticism that it is an urgent priority to fundamentally reform, at the individual executive and employee level, the unique mindset of "we are doing the right thing" and the actions based on it, while also curbing its spread within the company and taking corrective measures. Based on the recommendations of the Investigation Committee, we will reanalyze the root causes of this incident, translate them into concrete measures to prevent recurrence, and implement them steadily.
Clarification of Management Responsibility
- Next, I would like to address the issue of management responsibility regarding this matter.
- We must deeply reflect on the fact that both the management team at the time and the current management team failed to identify this issue early on and take corrective action, allowing the situation to persist to this day. We recognize that this is by no means a problem limited to a single department or a few employees, but rather an issue affecting the entire organization, including us, the management team.
- As the top executive, I personally feel a heavy sense of responsibility, and I am deeply remorseful.
- Furthermore, in addition to this incident, a series of inappropriate incidents related to nuclear procurement and decommissioning have occurred since last year. As the top executive, I am deeply ashamed that I was unable to establish governance that eliminates the insular nature of the nuclear division or foster an organizational culture that prioritizes compliance and safety above all else.
- To take clear responsibility for these management failures, I have decided to resign effective the end of this month, on September 30.
- Regarding my successor, following deliberations by the Personnel Committee and the Nomination and Compensation Review Committee, Mr. Minoru Yasui, Senior Managing Director, was selected at today's extraordinary board meeting.
- Mr. Yasui has served as General Manager of the Business Strategy Division at Chubu Electric Power Miraiz Co., Inc., President and Representative Director of C-Energy Co., Ltd., and Head of the Group Management Promotion Department and Alliance Promotion Department at our company. He is thoroughly familiar with our business and possesses both the judgment and the ability to execute necessary to resolve the mounting management challenges we face.
- He is the most suitable candidate to help us overcome this unprecedentedly difficult situation, and I personally believe that Mr. Yasui is the only person capable of confronting this crisis and vigorously leading the entire Chubu Electric Power Group moving forward.
- Although I will be stepping down as President while the measures to prevent recurrence that I explained earlier are still in progress, I will responsibly and reliably hand over my strong commitment to management reform and organizational culture reform, along with the efforts made to date, to the new President.
- Going forward, I sincerely hope that, under the strong leadership of the new President, the entire company will unite to build a new Chubu Electric Power that can once again earn the trust of the local community and society at large.
- Furthermore, regarding Advisor Mizuno and Chairman Katsuno, they have decided to take responsibility for this matter and resign at the end of this month, on September 30. Consequently, the positions of Advisor and Chairman will remain vacant for the time being.
- Regarding the responsibilities and disciplinary actions for other executives and employees involved in this matter, we will carefully review the findings in the report and take strict measures in accordance with internal regulations.
- Finally, I would like to once again offer my deepest and most sincere apologies for causing this situation, which has caused great concern and inconvenience to the local community and our many stakeholders, and has led to widespread distrust from the general public. That concludes my remarks.
Remarks by Chairman Katsuno
- I would like to once again offer my deepest apologies for causing great concern and inconvenience to the local community and society at large, as well as for having caused a loss of trust.
- As Mr. Hayashi mentioned earlier, we received the report from the Investigation Committee on September 11.
- I would like to express my sincere gratitude once again to all members of the Investigation Committee.
- The report identifies various issues regarding our company's organizational management, governance, and compliance awareness, in addition to the circumstances leading to the incident and its underlying causes. I, too, take these findings very seriously.
- This incident persisted over a long period beginning around 2012, during which time I myself served as Executive Vice President and President and Representative Director, playing a central role in the company's management.
- As the top executive at the time, I recognize that I bear extremely heavy responsibility for failing to prevent the occurrence and continuation of this incident, as well as for failing to identify and rectify it at an early stage.
- Based on this recognition, and to clearly demonstrate my management responsibility, I have decided to resign from my position as Chairman.
- Although I am resigning, I earnestly hope that the company will take the findings and recommendations of the Investigation Committee to heart, devote its full efforts to reforming the organizational culture, strengthening governance, and thoroughly implementing measures to prevent recurrence, and continue moving forward to restore the trust that has been lost.
- Once again, I would like to offer my deepest apologies to the local community, our customers, shareholders and investors, relevant local governments, and society at large for causing you great concern and inconvenience, and for significantly undermining trust in our company.
- This ends my presentation.