Regarding the Increased Construction Cost for Tsunami Countermeasures at Hamaoka Nuclear Power Station
March 21, 2012
Chubu Electric Power Co.,Inc.
The tsunami countermeasures at Hamaoka Nuclear Power Station that Chubu Electric Power announced on July 22, 2011, have subsequently undergone progress in their detailed design. This progress has been accompanied by a decision to review the construction costs that were initially anticipated.
Tsunami countermeasures to date have consisted of "Flooding prevention measures (1) (prevention of flooding within the power station site)," "Flooding prevention measures (2) (prevention of flooding within buildings)," and "Strengthen emergency countermeasures." Since the announcement in July 2011, we have proceeded to conduct examination of specific construction work with a view to further heighten safety. Our examination has also taken into account the findings from the accident at Tokyo Electric Power Co., Inc.'s Fukushima Daiichi Nuclear Power Station and other such findings obtained since the July announcement.
As a result, we have revised the construction costs upward from the approximately 100 billion yen we initially envisioned to approximately 140 billion yen. These construction costs will be expensed over several years following completion of the tsunami countermeasures. Consequently, the impact on earnings for this fiscal period will be slight.
As we gradually proceed with design and contracting in the future, we will strive to reduce the costs of construction while we also continue with construction with the aim of completion in December of this year.
Furthermore, we will take the appropriate countermeasures, as necessary, with regard to new findings that will emerge in the future.