Electric Power Supply and Demand Measures for Summer 2012

Today, the Electric Power Supply and Demand Review Association and the Energy and Environment Council (collectively, "the national government") decided on electric power supply and demand measures for this summer. This announcement concerns Chubu Electric Power's electric power supply and demand outlook this summer as well as energy conservation in the Chubu Electric Power service area.

(1) Electric power supply and demand outlook this summer

Chubu Electric Power reported this summer's supply and demand outlook on April 23 of this year at the request of the Ministry of Economy, Trade and Industry. (This was previously announced on April 23, 2012.) The content of our report was verified by the national government's Supply and Demand Verification Committee before being reported to and confirmed by the Energy and Environment Council on May 14.

[Overview of requested report]

Peak load this summer (found by taking the one-time peak load during the 2010 heat wave and factoring in energy conservation measures) is estimated to reach 26.48 GW in August.

We have augmented our supply capacity through such measures as starting commercial operation of Joetsu Thermal Power Station Unit 1-1 (Output: 595 MW), continuing to operate thermal power units under long-term planned shutdown and deferring all periodic inspections of thermal power stations that had been planned for August this year.

Other regional power companies facing supply shortages moreover have asked Chubu Electric Power to supplement their supplies, and we plan to supplement about 1 GW during the peak hours between 13:00- 16:00 and up to 2.3 GW during other hours.

Therefore, our supply capacity to the Chubu Electric Power service area will be 27.85 GW (which includes an emergency increase of 100 MW in thermal power output in August).

This is equivalent to a reserve margin of 5.2%.*

*Converted to the 2012 summer peak load (maximum power three-day average), the reserve margin is 8.1%.

(2) Energy conservation in the Chubu Electric Power service area

a. Energy conservation request from the national government

This summer is predicted to bring a very challenging electric power supply and demand situation throughout Japan. Serious electric power shortages are expected particularly in some parts of Western Japan.

The national government therefore has reviewed electric power supply and demand measures for the country based on the supply and demand outlooks reported by each of the electric power companies. As a result, the national government is asking customers, including those in the Chubu Electric Power service area, to conserve energy in order to allow us to supplement electric power to areas expected to have supply shortages.

[Overview of the national government's energy conservation request to customers in the Chubu Electric Power service area]

The request for energy conservation applies to the entire nation (although there are no nationwide numerical targets), covering weekdays between 9:00 - 20:00 from July 02 (Monday) - September 28 (Friday). Moreover, within the Chubu Electric Power service area, the following energy conservation target has been established.

Content	Period	Time	Energy conservation target
Energy conservation with numerical target	Weekdays, July 02 (Monday) - September 07 (Friday) (except August 13 - 15)	9:00 - 20:00	Reduction of at least 5% as compared to the benchmark peak power use (kW) in summer 2010, etc.

 The peak load outlook for the Chubu Electric Power service area factors in energy conservation habits that have already become established, including:

• Effect of energy conservation awareness that has become established among customers: reduction of about 600 MW
• Effect of new subscribers to summer holiday contracts, increased output from private power facilities, and other factors: reduction of about 370 MW

The total of these reductions (970 MW) is equivalent to a reduction of 3.6% from the benchmark peak power use during the summer of 2010 (a one-time peak of 27.09 GW).

An energy conservation target of 5% vs. 2010 was set that includes these established energy conservation habits.

b. Request to help conserve energy

Chubu Electric Power hopes, with our customers' efforts to conserve energy, to do all we can to ensure a stable supply of power to Central and Western Japan, where supply shortages are expected. Of course, this will only happen if we can maintain a stable supply to our own service area.

While we apologize for the inconvenience, we ask that our customers make a particular effort to conserve energy on weekdays between 13:00- 16:00, which is when electric power demand is especially high in the summer.

Specifically, we ask residential customers to conserve energy by setting climate control to appropriate temperatures and turning off unnecessary lighting, as they did last summer.

Corporate customers are asked to use production equipment efficiently and conserve energy with their general facilities like climate control and lighting.

We will be making a strong effort to provide information, such as day-to-day supply and demand figures on our web site, to help our customers conserve energy.

Chubu Electric Power will steadily conduct prioritized inspections and maintenance of our power stations and transmission and substation facilities and will make every effort to ensure supply stability in our service area. We also hope, together with our customers' efforts to conserve energy, to supplement power to areas where supply shortages are expected and help ensure a stable supply of power there.