Corporate Profile 2014

Transcription

1 Chubu Electric Power Company Group Corporate Profile 2014

2 Chubu Electric Power Group Corporate Philosophy Chubu Electric Power Group delivers the energy that is indispensable for people s lives and so contributes to the development of society. Sincere and Sustained Effort We make a constant and sincere effort to fulfill our unchanging mission and earn the trust of our customers and society. Creativity and Spirit of Challenge We continually act with creativity and an enthusiasm for new challenges in order to pursue excellence in our services and meet the expectations of our customers and society. Independence and Cooperation We work together as individuals showing respect for one another to create a vibrant and dynamic corporate culture. 1 The AL BAHIYA, loaded with LNG shipped from Qatar for the Kawagoe Thermal Power Station

3 Greetings Since the Hamaoka Nuclear Power Station was taken out of operation in May 2011, the company has continued to experience tough management conditions due to the large increase in costs associated with fuel for thermal power. While we have conducted a thorough company-wide effort to boost efficiency, it has become difficult to cover the costs necessary for the safe and stable supply of electricity our primary mission at the previous electricity rates, and the company has been left with no choice but to reluctantly raise our electricity prices. We are extremely sorry for imposing this extra burden on all our customers, but hope that we can rely on their understanding of the situation. In order for Chubu Electric Power to continue with its core corporate mission of the safe and stable supply of electricity, we are putting every ounce of our strength into initiatives to improve the safety of the Hamaoka Nuclear Power Plant and ensure the stable supply of electricity. At the same time, we will make further efforts to enhance efficiency throughout the whole company without setting aside any sacred cows for special treatment. The government is proceeding with deliberations on the reform of both the electricity system and the gas system, and in the future the environment surrounding the energy market will change greatly. In order for the Chubu Electric Power Group to obtain both trust and a sense of expectation from our customers and society into the future, we perceive these changes in the energy market environment as an opportunity, and will enthusiastically push ahead with initiatives aimed at growth without relying on our old business structure. Nonetheless, even if the management environment changes, you can rest assured that there will be no change in what we see as our mission: delivering energy that is indispensable for people s lives and contributing to the development of society. The Chubu Electric Power Group will continue to listen attentively to the opinions of customers and residents of our region, and make every possible effort to respond to the trust and expectations they place in us. July 2014 Toshio Mita Chairman of the Board of Directors Chubu Electric Power Co., Inc. Akihisa Mizuno President & Director Chubu Electric Power Co., Inc. 2

4 Corporate Profile Corporate name: Chubu Electric Power Co., Inc. Headquarters: 1 Higashi-shincho, Higashi-ku, Nagoya, Aichi , Japan President & Director: Akihisa Mizuno Date of establishment: May 1st, 1951 Region Served Chubu region, consisting of Aichi Pref., Gifu Pref. (excluding some areas), Mie Pref. (excluding some areas), Nagano Pref. and Shizuoka Pref. (area west of the Fujikawa River) Nagano Gifu Aichi Shizuoka Business Outline (fiscal 2013/as of March 31, 2014) Mie Capital: 430,777,362,600 Number of employees: 17,559 Number of contracts: Electric lighting Electric power Total 9,498 thousand 1,083 thousand 10,580 thousand Electric energy sold: Operating revenues: Ordinary income (loss): TWh Consolidated Non-consolidated Consolidated Non-consolidated 2,842.1 billion yen 2,638.2 billion yen (92.6) billion yen (104.1) billion yen Area Served approx. 39,000 km 2 Population Served approx. 16 million people 10.5% 12.5% Summary of Facilities (as of March 31, 2014) Power generation facilities Transmission facilities Transformation facilities Distribution facilities Thermal Hydroelectric Nuclear Renewable energy Total Transmission line route length Number of substations Capacity Linkage station Capacity Distribution line length * Frequency conversion facilities listed separately 24,506 MW (11 locations) 5,232 MW (185 locations) 3,617 MW (1 location) 31 MW (3 locations) 33,386 MW (200 locations) 12,250 km 941 locations million kva 300 MW* 1 location 300 MW 132,435 km GDP (Real) (FY 2011) approx. 77 trillion 14.5% 15.0% * Source: Annual Reports on Prefectural Accounts/Japan, Cabinet Office * Chubu Region: Aichi Pref., Gifu Pref., Mie Pref., Shizuoka Pref. and Nagano Pref. Electric Energy Sold (FY 2013) TWh * Share among 10 electric power companies CONTENTS Chubu Electric Power Group Corporate Philosophy Greetings Corporate Profile, Business Outline, Summary of Facilities, Region Served/Contents Chubu Electric Power Group s Business Foundation Feature Article 1: Measures Implemented at the Hamaoka Nuclear Power Station Feature Article 2: Raising Electricity Rates and Implementing Measures for Higher Management Efficiency Overview of Our Electric Power Business Corporate Social Responsibility (CSR) Activities of the Chubu Electric Power Group Chubu Electric Power Group

5 Chubu Electric Power Group s Business Foundation Chubu Electric Power Co., Inc. is Japan s third-largest electric power company in power generation capacity, electric energy sold, operating revenues, and total assets. Chubu Electric Power serves an area of nearly 39,000 square kilometers in five prefectures of central Japan (Chubu, in Japanese), home to some 16 million people. The Chubu region is known as one of Japan s leading manufacturing regions, and many world-class Japanese industries, including manufacturers of automobiles, machine tools, electric components, aircraft, and new materials, are centered here. Joetsu Schematic Diagram of Chubu Electric Power System (As of March 31, 2014) * Facilities for 500 kv and 275 kv are shown here. Substations (275 kv or higher system) Switching stations (275 kv or higher system) Thermal power stations (excluding internal combustion power generator) Hydroelectric power stations (50 MW or higher) Nuclear power station 500 kv transmission line 275 kv transmission line External substations External hydroelectric power stations 500 kv external transmission line 275 kv external transmission line * FC: Frequency converter Minami-Fukumitsu Linkage Station Tied to Hokuriku Electric Power Company Etsumi trunk line Takane-Daiichi Shin-Shinano Tied to Tokyo Electric Power Company Kita-Matsumoto Chushin Shinano Toshin Shin-Hokushin Saku Nagano Shinano trunk line Tied to Kansai Electric Power Company Mazegawa-Daiichi Okumino Mazegawa-Daini Yokoyama Gifu Aigi trunk line Sangi trunk line Gihoku Tobu trunk line Hokubu Shin-Kamiasou Seibu trunk line Chuno Toyone trunk line Seino Seki Mie-Higashi Inuyama Aichi Yasuoka Oumi line Meijo Dengen Ama Nagoya Mie Seibu Minami-Buhei Yahagi-Daiichi Okuyahagi- Daini Hiraoka Matsugae Umemori Seto Okuyahagi- Daiichi Nishi-Owari Shimohiroi Toyone Shin-Toyone Nishi-Nagoya Shin-Nagoya Kanayama Kita-Toyota Higashi- Nagoya Miyoshi Tobu Kawagoe Chita Tokai Higashi-Toyota Toei trunk line Toei Sakuma Daini Yokkaichi Higashiura Nukata Shin-Mikawa trunk line Suzuka Kameyama Chita Shin- Sunen trunk line Shin-Suzuka Mikawa Hekinan Taketoyo Koda Mikawa Tohtoumi Sunen Chusei Nansei Atsumi Tahara Kosai Hamaoka trunk line Shin-Sakura Nanshin Nanshin trunk line Hatanagi-Daiichi Hatanagi-Daini Ikawa Okuizumi Tied to Tokyo Electric Power Company Oigawa 154kV Kawane Suruga Shizuoka trunk line Higashi-Shimizu (FC*) Shizuoka Abe Kawaguchi Daini-Hamaoka trunk line Hamaoka Tied to Tokyo Electric Power Company Ise Ikehara Owase-Mita 4

6 Feature Article 1 Measures Implemented at the Hamaoka Nuclear Power Station As stated in the basic energy plan issued by the Cabinet in April 2014, the Japanese government regards nuclear power as an important base-load power source that contributes to the stability of the energy demand-supply structure. For Japan, which has scarce energy resources, to ensure stable energy supply on a long-term basis and solve global environmental issues, it is considered indispensable to use nuclear power plants while giving first priority to safety. We have been implementing measures for the Hamaoka Nuclear Power Station, giving first priority to nuclear safety. The accident at the Fukushima Daiichi Nuclear Power Station of Tokyo Electric Power Company, Inc. ( Fukushima accident ) made all those engaged in nuclear power generation keenly recognize once more the importance of constantly pursuing higher nuclear safety and acting to attain this goal. With a strong commitment to preventing similar accidents, we will gather all our knowledge and ability to further improve the safety of the Hamaoka Nuclear Power Station and make it a world-class safe power station. To make it the safest nuclear power station in the world Immediately after the Fukushima accident, we urgently implemented additional safety measures, including installing a portable power source and pumps at the Hamaoka Nuclear Power Station. Subsequently, however, we received a request from the then-prime minister to shut down the power station. After discussing the matter intensively within the company, we decided to consent to the request, in consideration of the public concerns over nuclear power generation, which were increasing due to the Fukushima accident. Nonetheless, in order to ensure the stability of power supply in Japan, which has scarce energy resources, the importance of nuclear power generation will never decrease. The Hamaoka Nuclear Power Station has been operating for about 40 years with the approval and support of local residents, based on the premise of safety management. We will make our best effort to continue to prove worthy of their trust. Our pursuit of safety will never end. We will continue to work to make the nuclear power station the safest in the world, and rather than merely responding to the new regulatory standards we will promote autonomously and ongoing efforts towards improving safety, while at the same time in order to gain a deeper understanding among local residents and society we will provide clear explanations of the measures implemented at the power station. TOPICS Further initiatives towards the voluntary and ongoing improvement of safety in nuclear power In order to autonomously and continuously improve the safety of nuclear power, we have formulated a road map compiling measures and schedules. On July 1, 2014, The Chubu Electric Power Company Group s Charter on Nuclear Safety was established, a charter that reflects our stance and ethos concerning nuclear safety initiatives. Simultaneously, we established the Nuclear Safety Improvement Committee, which will be led by the President and CEO. In addition, we will attempt to strengthen governance through the launch of an Advisory Board that will put to good use the opinions of external experts, and promote initiatives that will provide a pillar for boosting risk management and strengthening risk communication. 5

7 Feature Article 1 Implementing measures to further improve the safety of the Hamaoka Nuclear Power Station Chubu Electric Power is taking a two-pronged approach to increase the safety of the Hamaoka Nuclear Power Station. While conducting measures on equipment in line with the new regulatory standards to prevent the occurrence of nuclear accidents and to mitigate the impacts and restore the station to its normal status as quickly as possible in the event of a disaster, we are also strengthening our disaster management system. Enhancing anti-disaster measures In order to prevent abnormal radioactive emissions in the event of an incident at the nuclear power station and to suppress and mitigate the impact in the event of such emissions, we are establishing the necessary system and manuals and securing the requisite goods and materials. We will also continue to conduct drills to ensure the effectiveness of these measures and improve our ability to respond to disasters, while enhancing cooperation with the national and local governments and thereby increasing the practicality of our anti-disaster measures. Disaster management system We have a disaster management system, based on which we will establish the emergency task force headquarters in the head office and at the power station. These headquarters will collect and share information and issue commands and orders for everyone to take appropriate actions in case of a disaster. In order to enable us to take a swift and flexible approach in the immediate aftermath of an accident, we have set up permanent organizations for initial responses, which are permanently stationed on sites. We are making every possible effort to further reinforce our system, all around the clock and all around the year. We have also concluded support agreements with our partner companies and plant equipment manufacturers to ensure that sufficient support will be given to the power station in case of a disaster. Disaster management system National government Local government Offsite center Chubu Electric Power Head office emergency task force headquarters Power station emergency task force headquarters Nuclear disaster manager (head of the power station) Information strategy team Radioactive ray management team Response team Local PR team Personnel safety check and first aid team Support and firefighting team Security team Team dispatched to the offsite center Partner companies Plant equipment manufacturers Preparation of manuals We will continue to prepare and review all necessary manuals related to disasters. Manuals Securing equipment and materials We have a reserve of equipment so that we can respond to any possible disaster for up to seven days without receiving any outside support, including radiation meters, communication devices and other equipment, as well as food and bedclothes for the staff. Education and drills We provide employees with education on the manuals and other material, while conducting drills to ensure that the disaster management system will work effectively in case of a disaster. Power station emergency task force headquarters In conducting drills, we repeat the plan, do, check and act (PDCA) cycle on a continual basis to improve our ability to respond to disasters. Communication device (Portable satellite phone video conference system) Repository (for food) Cable installation exercise (done with the lights turned off) Enhancing cooperation with the national and local governments We are enhancing mutual cooperation with the national and local governments so that we can implement measures in close cooperation with them in the event of a nuclear accident, including collecting and sharing information for the management of the disaster. Moreover, we will proactively participate in the disaster management drills organized by the national and local governments to further strengthen cooperation with them. Screening exercise (in Shizuoka Prefecture) 6

8 Implementing further measures on equipment based on new findings and regulations in addition to conventional measures Chubu Electric Power has long been committed to improving the safety of the Hamaoka Nuclear Power Station based on new findings. With this strong commitment we are implementing measures on equipment in line with the new regulatory standards and based on findings obtained from the accident at the Fukushima Daiichi Nuclear Power Station. Measures against Earthquakes The Hamaoka Nuclear Power Station is designed to have high seismic resistance, and we are also implementing measures against the triple-interrelated Tokai, Tonankai and Nankai Earthquakes. Further, in line with the new regulatory standards set by the Nuclear Safety Agency and also in consideration of the various ground motion amplifications identified in the premises based on the ground motion evaluation, we set new ground motion parameters. At present, we are working on alterations of the supports for Support (reinforcement) Improved ground conduit pipes and electric cables as well as on ground improvement for the breakwater. Pipe support work Ground improvement work for the breakwater Measures against Tsunamis Prevention of flooding on the station site A breakwater (22 m above sea level in height and about 1.6 km in total length) is under construction, and the embankments will be raised to m above sea level at each end. Moreover, in order to prevent seawater from overflowing into the site through the water intake channel connected to the sea via a tunnel, we will erect approximately 4 m-high overflow prevention walls around the water intake ponds. Prevention of flooding in buildings on the station site Through the replacement of waterproof doors with watertight doors and the establishment of a double tsunami prevention structure with reinforced doors, the pressure resistance and water-tightness of the buildings are being strengthened to prevent interior flooding. Overflow prevention wall Breakwater (under construction) Overflow prevention wall (illustrative image) Reinforced door Measures against Severe Accidents We will prevent the occurrence of severe accidents by implementing countermeasures against earthquakes and tsunamis, but will also take measures in consideration of the small possibility that a severe accident will occur, including installing a gas turbine generator in preparation for the possible loss of power sources and installing filter vent equipment to suppress the release and spread of radioactive substances. Gas turbine generator To prepare for the loss of power supply, we will install a gas turbine generator at a spot 40 meters above sea level, which will be used to drive the reactor cooling pumps and pumps to take seawater for use as cooling water. Gas turbine generator Building that houses the generator Filter vent equipment Filter vent equipment is used to release high-temperature and high-pressure gas from the containment vessel to prevent damage to it, while reducing the release of cesium and other radioactive particles to 1/1,000 or less compared with equipment without filters. Release Containment vessel Filter vent equipment 7

9 Fostering communication with the public We will provide detailed explanations about the measures taken at the Hamaoka Nuclear Power Station. Feature Article 1 Broadening public awareness The Hamaoka Nuclear Power Station, today and tomorrow website On this website, we outline the safety improvement measures taken at the station in an easy-to-understand manner using photos and illustrations. We also dispatch information in various forms, including streaming videos to introduce how the breakwater is being constructed and the commitments made by those engaged in the construction work. We also post the opinions given by our customers and continue to provide the newest information on the website. Homepage of The Hamaoka Nuclear Power Station, today and tomorrow website Tour of the Hamaoka Nuclear Power Station We hold tours of the premises of the power station to introduce the range of safety improvement measures implemented at the station to more people. In fiscal 2013, about 33,000 people participated in the tours in total, including local Shizuoka citizens, government officials, company employees, members of various organizations, students, and members of women s groups. Tour of the power station VOICE Engaged in PR activities at the Hamaoka Nuclear Power Station Exhibition Center At the Hamaoka Nuclear Power Station Exhibition Center, we introduce nuclear power generation technology and anti-earthquake and anti-tsunami measures in an intelligible manner to visitors. We welcomed a total of about 244,000 people to the Center last year. We sometimes receive critical comments from visitors, but we are strongly committed to communicating with and providing explanations to visitors in a straightforward manner to address their concerns about nuclear power generation. We also want to help them understand the energy issues facing Japan through the introduction of nuclear power generation. Sayuri Kato Member of the Hamaoka Nuclear Power Station Exhibition Center Providing information to local residents We send mail directly to citizens of Omaezaki City, where the Hamaoka Nuclear Power Station is located, as well as to citizens of Makinohara, Kakegawa and Kikukawa Cities, providing information about the power station. Moreover, we make visits to and hold dialogue with customers who want to be directly briefed on the measures taken at the power station. We also sometimes insert our information leaflets into newspapers distributed in Shizuoka Prefecture. Examples of opinions given by customers All necessary safety measures should be taken at the power station to prevent the occurrence of an accident similar to the one caused by the tsunami in the Great East Japan Earthquake, even if a tsunami of the same size hits the region. The electric power company provided me with a good opportunity to think about nuclear power. I felt it is essential for the company to further improve its technologies and enhance the facilities to ensure 120% safety. Visit to a customer 8

10 Feature Article 2 Raising Electricity Rates and Implementing Measures for Higher Management Efficiency We will brief readers on the rise of our electricity rates and measures for higher management efficiency. We apologize to customers for the rise in electricity rates and would ask for your kind understanding. It was a difficult decision for us to raise electricity rates and impose a greater burden on customers. We will make a concerted effort across the Group to improve our management efficiency, while contributing to the development of the region through the safe and stable supply of electricity. Rise of electricity rates The shutdown of the Hamaoka Nuclear Power Station in May 2011 forced us to spend more to procure fuels for thermal power generation, which substantially impacted our financial performance and put us in an extremely severe business situation. In response, we made a concerted effort for cost reduction through the drastic improvement of management efficiency. However, it became difficult to cover the cost of supplying electricity in a safe and stable manner, which is our biggest corporate mission, based on the conventional rates, even with the maximum improvement of our management efficiency. Accordingly, we decided to raise electricity rates and subsequently obtained approval for this from the Minister of Economy, Trade and Industry on April 18, Chubu Electric Power will further enhance its measures to improve management efficiency without allowing any area to be fenced off for preferential treatment, while doing its best to improve services for customers. Outline of the Rise of Electricity Rates On May 1, 2014, we raised electricity rates for customers in the regulated sector by an average of 3.77%. [Monetary impact of the rise on customers in the regulated sector by contract type (on a monthly basis, including taxes and other charges)] Households (examples) Offices and stores (examples) Contract type Meter rate lighting B Contract capacity: 30 A Amount of use: 300 kwh 3 time zone-based lighting (E Life Plan) Contract capacity: 10 kva Amount of use: 760 kwh Meter rate lighting C Contract capacity: 12 kva Amount of use: 1,000 kwh Low-voltage electricity Contract capacity: 8 kw Amount of use: 530 kwh (Power factor: 90%) Payment amount April (Tax rate: 5%) May (Tax rate: 8%) 7,568 8,225 15,755 17,548 28,029 31,360 15,909 17,375 Balance 657 (8.7%) 1,793 (11.4%) 3,331 (11.9%) 1,466 (9.2%) Rise based on the approved cost 163 (2.2%) 644 (4.1%) 1,605 (5.7%) 525 (3.3%) Breakdown of the balance Rate Changes in the charges imposed for Fuel cost the use of solar power adjustment* 1 and other renewable energy sources* (2.3%) 433 (2.7%) 570 (2.0%) 302 (1.9%) 108 (1.4%) 273 (1.7%) 360 (1.3%) 190 (1.2%) Change in the consumption tax rate 215 (2.8%) 443 (2.8%) 796 (2.8%) 449 (2.8%) Note) For the meter rate lighting B and C and the 3 time zone-based lighting, the discount service for the first payment by bank transfer has been provided. For the 3 time zone-based lighting, discount services for all-electrified houses and for microcomputer-type heat storage equipment have been provided. *1. Adjustment of electricity rates in response to changes made to fuel prices due to external factors, such as changes in the market and foreign exchange rates. *2. Based on the feed-in tariff system introduced by the government to foster the use of solar power and other renewable energy sources, customers are required to pay extra charges. [Rise of electricity rates for customers in the deregulated sector] For customers in the deregulated sector, we had decided to raise the rates by an average of 8.44% from April 1, 2014, but changed the markup rate to 7.21% in consideration of the approval given by the government. On our website, we provide detailed information about the rise of electricity rates, provide a simulator with which customers can calculate the monetary impact of the rise on their bill, and offer ways to save electricity and energy and other useful information to customers. 9

11 Feature Article 2 Measures to Improve Management Efficiency We are making an all-out effort to reduce the procurement costs for materials, equipment and services, improve the efficiency of thermal power generation, procure fuels at cheaper prices, and increase operational efficiency, so that we can improve our management efficiency as we planned in estimating the power supply cost in consideration of the government s strict assessment policies for the approval of electricity rates. We will continue to implement measures for higher management efficiency to achieve a low-cost structure and increase our competitiveness in the market. Reducing procurement costs by standardizing specifications We will standardize machinery specifications, which each electric power company has independently set, thereby reducing procurement costs. [Specific example: Examination of the standardization of pole-mounted transformer specifications] 1 Pole transformer specifications adopted by the materials departments of electric power companies will be compared to identify the cheapest specifications. Chubu Electric Power Electric power company A Electric power company B Electric power company C Identify the cheapest specifications Electric power company D 2 Examine the monetary merits of adopting the cheapest specifications and the demerits associated with the standardization of the specifications (increased construction cost, etc.), and if the adoption is cost effective, start making examinations toward the standardization of the specifications. Reduced purchase price (Merit) Reduced construction efficiency (Demerit) Cost effectiveness Make examinations for the standardization of the specifications if it is cost effective. 3 Power distribution sector staff will confirm the technological feasibility of the standardization, conduct necessary performance evaluations, and review the specifications starting with those that can be standardized. Estimated cost savings: 170 million yen/year Expansion of competitive bidding We procured materials through competitive bidding at the rate of 20% in fiscal In the future, we will expand competitive bidding for materials, equipment and services, which have been procured from specified suppliers, by disclosing our specifications and further standardizing the specifications in order to eliminate as much as possible restrictions that hinder new suppliers from participating in competitive bidding. Through these measures we will expand the rate of procurement through competitive bidding to about 35% of the total by the end of fiscal Including Nishi Nagoya 29% Excluding Nishi Nagoya 12% * 20% Targeted competitive bidding rate: about 35% Fiscal 2012 Fiscal 2013 End of Fiscal 2016 Note) Calculated for the procurement of materials, equipment and services in relation to capital investment, repairs, and other costs (outsourcing and waste disposal expenses) * Excluding the one-time large electric power project (Nishi Nagoya No. 7) [Example of measures: Inviting new suppliers to participate in competitive bidding by disclosing our specifications (illustrative image)] 1 2 Select an item Select an item to be procured through competitive bidding from the items that have been procured from a limited number of suppliers due to the special specifications set by our company, such as type specified items 1. Invite new suppliers to participate in the bidding Disclose related information (every April), publish an announcement to invite new suppliers to participate in the bidding, and introduce the details on the website. 4 5 Make technological examinations Targeting the suppliers who have passed the assessment, the technology team in charge will conduct a technological assesment of the items to be supplied by the suppliers and for the items that do not meet the specifications, the team will clarify the problems to the suppliers, who will then make efforts to meet the specifications. Give type certifications Based on the technological assessment results, the Purchasing & Contracting Department will give type certifications to new suppliers. 3 Assess the applicants The staff of the Purchasing & Contracting Department will assess the new suppliers who have applied to the bidding. 6 Competitive bidding The new suppliers who have obtained the type certifications as described in 5, as well as existing suppliers, will participate in competitive bidding. Cost to be reduced by the introduction of competitive bidding (About 400 million yen/year) 10

12 Overview of Our Electric Power Business Ensuring a Safe and Stable Supply of High-Quality Energy to Contribute to the Development of Communities and Society Our most important duty is to ensure the safe and stable supply of energy indispensable for our customers lives and for industrial use. We will continuously make improvements in every stage of power generation, transmission, transformation, and distribution, by achieving even more reliable, economical fuel procurement and optimizing infrastructure, to ensure a stable supply of power. Stable procurement of fuels Chubu Electric Power is diversifying the types of fuels procured and decentralizing procurement sources to ensure stable procurement and reduce costs. Major fuel source countries in fiscal 2013 Australia 8.8% Africa 9.6% Asia 15.4% LNG Vietnam 24.2% Qatar 59.5% Russia Others 3.7% 3.0% Crude oil Russia 1.7% Indonesia 48.0% Gabon 4.0% Coal Indonesia 71.8% Canada 1.2% Australia 49.2% Best mix of power sources Since the two oil crises in the 1970s, Chubu Electric Power has been promoting a best mix of electric power sources, shifting from oil to nuclear, LNG, and coal, to assure stable supplies of energy. Composition of generated electricity (TWh) Renewable energy Nuclear LNG thermal Oil thermal Coal thermal Hydroelectric (FY) The Chubu Electric Power Group is united in maintaining stable supplies of electric power. Chita L.N.G. Co., Ltd. Receives and stores LNG in tanks. The company also re-gasifies a certain amount of LNG using the natural heat of sea water and delivers it to power stations. Chita Berth Co., Inc. Undertakes LNG receiving operations. * The Yokkaichi district is managed by KASUMI BERTH CO., INC. and the Kawagoe and Joetsu districts by TechnoChubu Co.,Ltd. Gas sales C ENERGY CO., INC. Sells LNG to city gas companies and industrial customers using tanker trucks. Procurement 11

13 Overview of Our Electric Power Business Chubu Electric Power s power generation facilities Chubu Electric Power has power generation facilities in 200 locations throughout the region, generating 33,386 MW in total. These facilities are maintained and inspected on a daily basis, and carefully repaired as needed, to ensure stable delivery of power. Maximum output of power generation facilities (as of March 31, 2014) Thermal Hydroelectric Nuclear Renewable energy Total 11 locations 185 locations 1 location 3 locations 200 locations 24, 506 MW 5,232 MW 3,617 MW 31 MW 33,386 MW Tokuyama (operation to be started in FY 2015) Nishi-Nagoya (operation to be started in FY 2017) Kawagoe Yokkaichi Taketoyo Mega Solar Taketoyo Mazegawa-Daiichi Okumino Yokoyama Shin-Kamiasou Takane-Daiichi Mazegawa-Daini Mega Solar Iida Hatanagi-Daiichi Yasuoka Yahagi-Daiichi Hatanagi- Hiraoka Daini Okuyahagi- Ikawa Okuyahagi-Daiichi Daini Okuizumi Shin-Nagoya Oigawa Mega Solar Shimizu Chita-Daini (operation to be started Chita in FY 2014) Kawaguchi Hekinan Atsumi Hamaoka Omaezaki Central load dispatching center, load dispatching control center These centers monitor and control the generation of electric power (output control of generators, etc.) according to constantly changing demand from customers, as well as the entire electricity flow, on a 24-hour basis. Owase-Mita Kamishima (internal-combustion power) Thermal power stations Hydroelectric power stations (50 MW or more) Nuclear power station Solar power stations Wind power stations Joetsu Chuden Disaster Prevention Co., Ltd. Responsible for fire prevention, security, and fire-fighting equipment inspections at power stations. Chubu Plant Service Co., Ltd. Undertakes maintenance of turbines, boilers, generators, and other power station facilities. * Also responsible for the operation and maintenance of the facilities at the Taketoyo Thermal Power Station. Techno Chubu Co., Ltd. Undertakes the operation and maintenance of wastewater/coal ash treatment facilities and fuel equipment at power stations. Power generation 12

14 Overview of Our Electric Power Business Making Ongoing, Daily Efforts to Assure Safe and Stable Delivery of High-Quality Energy The electricity generated by a power plant is conveyed through power transmission lines, passes through a substation where the voltage is transformed, and finally reaches customers via distribution lines. These transmission and transformation facilities are constructed to keep up with power plant construction and increasing demand, and repair work is carried out for older facilities in accordance with a defined plan. Patrols and inspections are also conducted regularly to detect any abnormalities as early as possible. Transmission of electricity from power stations The electricity generated in a power plant is transmitted to a distribution substation through transmission facilities. Transmission facilities consist of power lines, towers, and other similar structures for supporting the power lines, and other accompanying equipment. Because these facilities are exposed to lightning, snow, and other natural forces, we ensure that they are designed and constructed appropriately and install technologies to prevent failures in order to maintain a constant supply of electricity. Reducing losses in power transmission and distribution Reducing losses during power transmission and distribution contributes to the conservation of energy resources and the reduction of CO2 emissions. For this reason, Chubu Electric Power is implementing various measures, such as increasing the voltage in power transmission lines and operating distribution networks designed to minimize power loss. As a result of these efforts, our loss rate has become the lowest among major electric companies, both within and outside Japan. Comparison of loss rate in power transmission and distribution among major countries (%) Transmission facilities Transmission line route length: 12,250 km No. of supporting structures: 36,330 0 UK France China USA Germany Japan Chubu Electric Source: Created based on several data sources including Overseas Electric Power Industry Statistics 2013 (Japan Electric Power Information Center, Inc.). The figures for Chubu Electric Power, Japan, and major countries are data from fiscal 2013, fiscal 2012, and calender 2011, respectively. The Chubu Electric Power Group is united in maintaining stable supplies of electric power. C-TECH CORPORATION Undertakes construction and maintenance of transmission and transformation facilities. AICHI KINZOKU KOGYO Co., Ltd. Manufactures transformer casings installed on transmission line towers and utility poles. AICHI ELECTRIC Co., Ltd. Manufactures pole-mounted transformers, medium- and large-scale transformers and control equipment. Transmission and transformation 13

15 Overview of Our Electric Power Business Transformation of voltage to an appropriate level The high voltage electricity transmitted from a power plant needs to be transformed to a voltage level appropriate for end users. The voltage of the electricity is increased when transmitted to reduce losses caused by electrical resistance in wires, and the voltage is lowered gradually at substations before distribution to residences and factories. Transformation facilities Distribution of electricity to residences and factories After the voltage is adjusted at a distribution substation, the electricity is distributed to residences and factories. To prevent any failures in the distribution facilities, we carry out patrols and inspections regularly to maintain the facilities in optimal condition. We also make sure to continually improve our skills for the recovery of such facilities through practical training so that we can take quick action in the case of an unavoidable failure. Distribution facilities No. of substations: 941 Distribution line route length: 132,435 km No. of supporting structures: 2,779,236 No. of distribution transformers: 1,579,312 (Index) Power demand peaks during summer afternoon hours Power demand varies widely depending on the season and time range. Japan s peak power demand comes during afternoon hours in summer every year. In the Chubu Electric Power service area, the power demand increases by approximately 800 MW due to air-conditioning when the temperature rises by 1 C in summer. Usage of electricity in each season (image) Peak-hours come around 冷 afternoon 房 需 要 により hours due to the 午 use 後 of に air 最 大 conditioners. 電 力 が 発 生 します Peak-hours come during the morning due to the use of heaters. The power demand drops sharply due to lunch breaks. Power consumption increases due to the use of night heat storage devices. Summer Winter Spring/autumn Spring/autumn (weekends/holidays) Power consumption increases after sunset due to the use of lighting (Time of day) * Index: Power demand during peak-hours in summer=100 TOENEC CORPORATION Undertakes the installation, repair, and maintenance of distribution lines, service wires, and indoor electrical equipment. CHUBU SEIKI Co., Ltd. Manufactures a variety of measuring equipment, including electricity meters. Chuden Haiden Support Co., Ltd. Engages in negotiations for cutting down trees that interfere with distribution lines and negotiations for acquiring land and designs of distribution lines. TOKAI CONCRETE INDUSTRIES Co., Ltd. Manufactures concrete utility poles. Distribution 14

16 Overview of Our Electric Power Business Thermal Power Generation We are working actively to achieve efficient use of fuels and reduction of CO2 emissions. 11 thermal power stations generating 24,506 MW in total Thermal power is a form of electricity generation that can respond flexibly to shifts in power demand. Chubu Electric Power Company owns thermal power stations at eleven sites, generating a total of 24,506 MW (As of the end of March, 2014). By introducing highly efficient state-of-the-art LNG combined cycle generation at the Joetsu Thermal Power Station that has gradually expanded operations since July 2012, as well as other initiatives, w have been making active efforts to reduce both fuel consumption and CO2 emissions. In the future, we aim to start in FY 2017 operations at the Nishi Nagoya Thermal Power Station Unit No.7, a generating facility with the world s highest level of thermal efficiency, and are steadily taking steps towards this goal. It should be noted that we were able to contain costs for the Nishi Nagoya Power Station Unit No. 7 by the way in which we solicited orders for it. We adopted a competitive bidding format that judged not only development costs but also comprehensive life cycle costs, including for fuel after the commencement of operations as well as maintenance. Increasing composite thermal efficiency of thermal power generation facilities Thermal efficiency is the percentage of the total heat energy of fuels that is actually converted into electricity transmitted, and is a measure used to evaluate the efficiency of thermal power plants. Chubu Electric Power is working hard to increase thermal efficiency through various measures, such as the adoption of a high-efficiency LNG-fired combined-cycle power generation method and the effective operation of high-efficiency thermal power plants. As a result, our composite thermal efficiency of thermal power generation in fiscal 2013 was 47.42% (LHV basis *1 ), the highest level both inside and outside Japan. Thermal efficiency of thermal power generation facilities (LHV basis) (%) Kawagoe Unit No.3 (53.9%) Yokkaichi Unit No.4 (47.3%) Nishi-Nagoya Unit No.7 (approx. 62%) Joetsu Unit No.1, 2 (58.5%) Shin-Nagoya Unit No.7 (54.0%) Shin-Nagoya Unit No.8 (58.0%) 45 Chita No.4 (41.7%) Atsumi No.3 (42.5%) Owase Mita No.3 (44.0%) Turbine generator at the Joetsu Thermal Power Station Unit No. 1 (Joetsu City, Niigata Prefecture) (FY) *1. LHV basis: Thermal efficiency calculated by deducting the condensation heat of the water contained in the fuel and the water generated by combustion Overview of Our Electric Power Business Renewable Energy Power Generation We are actively promoting the introduction of renewable energy power generation. Low-carbon domestic energy sources Renewable energies are low-carbon, and represent precious domestic energy sources for a country like Japan that has a very low rate of energy self-sufficiency. On the other hand, since the amount of power they generate can be greatly influenced by the weather, they need to be used in combination with adjustable energy sources such as thermal power. Because their energy density is low they require vast areas of land in order to produce sufficient power, and the inherent costs are among the current issues raised by renewable energies. Chubu Electric Power is joining with all its Group companies in an effort to overcome these issues and promote the enthusiastic development of renewable energies. Solar power In addition to the Mega Solar Iida and Mega Solar Taketoyo facilities already in operation, we are proceeding with the development of Mega Solar Shimizu with a view to bringing it on line during FY The Group companies are also pursuing development of solar power at numerous locations. Solar Farm Toyohashi (C-TECH, Toyohashi City, Aichi Prefecture) 15

17 Overview of Our Electric Power Business Overview of Our Electric Power Business Hydroelectric Power Generation We will continue to utilize this clean energy source with a long history even more effectively. 185 hydroelectric power stations generating 5,232 MW in total Hydroelectric power generation, among various clean energy sources, is a method with a long and proven history. Chubu Electric Power operates 185 hydroelectric power stations, generating 5,232 MW in total (as of March 31, 2014), and effectively utilizes water resources. The Okumino Hydroelectric Power Station, as well as others, have adopted a pumped-storage method that allows surplus electricity generated overnight to be used efficiently. Hydroelectric power facilities under continued development Since there is hope for hydroelectric power as one of the steadiest modes of generating power among the various renewable energies, we are working hard on the continuous development of ordinary hydroelectric power and regular water-flow release hydroelectricity *1. In concrete terms, we are making steady progress with the development of Tokuyama Hydroelectric Power Plant, which we hope will be fully operational in FY 2015, and are also working on the systematic introduction of regular water-flow release hydroelectric plants below the Gifu Prefectural dams at Atagi and Nyukawa. Furthermore, the Group companies are also endeavoring to pursue the development of regular water-flow release hydroelectricity. *1. Hydroelectric power plants that use precise volumes of discharge water from dams necessary for maintaining the downstream river environment. Hydroelectricity facilities planned or under development *2 Generators at the Okumino Hydroelectric Power Station Pumped-storage power generation Water is pumped from a lower elevation reservoir during the night when an ample supply of electricity is available, which is then used to generate electricity during the daytime. Ordinary hydroelectricity Regular water-flow release hydroelectricity Tokuyama (Ibikawa Cho, Ibi District, Gifu Prefecture) Atagi (Gujo City, Gifu Prefecture) Shin-Kushihara (Ena City, Gifu Prefecture) Nyukawa (Takayama City, Gifu Prefecture) Akigami (Takayama City, Gifu Prefecture) (Ctec Inc.) Output (kw) 153, *2. Three further sites are planned for development *3. Includes the 22,400 kw from Unit No. 2, opened in May 2014 *3 Scheduled to become operational June 2015 June 2015 June 2015 June 2016 April 2016 Daytime (electricity is generated) Night (water is pumped back) Higher elevation reservoir Pumped-storage hydroelectric power station Lower elevation reservoir Higher elevation reservoir Pumped-storage hydroelectric power station Lower elevation reservoir Tokuyama Hydroelectric Power Station (Ibigawa-cho, Ibi District, Gifu Prefecture) Wind power generation Chubu Electric Power Company s Omaezaki wind power plant consists of eleven units generating 22,000 kw. In addition to this, the Group companies are proceeding with development at other Biomass power generation At Hekinan Thermal Power Plant we conduct the mixed-combustion of woody biomass and sewage sludge. In addition, our Group companies are pursuing initiatives towards the development of a generation pilot project using only woody biomass. Wind Park Misato (C-TECH, Tsu City, Mie Prefecture) Hekinan Thermal Power Station (Hekinan City, Aichi Prefecture) 16

18 Overview of Our Electric Power Business Supporting People s Comfortable Lives through Safe and Stable Supply of High-Quality Energy Delivering safe and stable high-quality power Chubu Electric Power is working hard to construct and maintain facilities that ensure safe and stable delivery of high-quality electricity, with little fluctuation in voltage and frequency, as well as to minimize power outages caused by natural phenomena and other accidents. There is also a system for prompt recovery from a failure, whereby engineers from Chubu Electric Power and Group companies are on standby around the clock, ready to act in the event of an emergency. Source: USA, France, UK Overseas Electric Power Industry Statistics 2013 (Japan Electric Power Information Center, Inc.) * Power outages in the Chubu Electric Power service area in fiscal 2011 and 2012 were caused by typhoons. Power outages in the USA (New York State), France and UK include those caused by bad weather. Power outage time per household per year (min/ household) UK France USA (New York) FY 10 FY 11 FY 12 FY 13 Chubu Electric Power In order to stop power outages due to crows nests Crows are in the habit of building their nests in places that are clean, high and offer good vantage points; they sometimes construct their nests on the top of power poles during the season when they lay eggs, from mid-february to early June. Because crows use all sorts of manmade materials in the construction of their nests such as metal (coat hangers etc.) and vinyl, as well as twigs, pieces of metal can become caught between the gaps in the equipment leading to short circuits and electricity leakages, which can in turn lead to power outages. Within Chubu Electric Power Company s business area around 50 to 80 power outages due to crows nests occur each year. In order to prevent this, we remove around 18,000 crows nests per year. * * Licensed personnel perform the removals in the event that there are eggs or chicks in the nest, in accordance with the Wildlife Protection and Proper Hunting Act Removing a nest Toward spreading Smart Houses and Smart Communities At Chubu Electric Power Company, in order to realize efficient electricity use and stable supply, we are working towards the popularization of smart houses and smart communities that enable the efficient use of energy in homes and communities via an information network, and also enable use of electricity during emergencies. Specifically, in Toyota City, which was selected as a demonstration area for the Ministry of Economy, Trade and Industry s Demonstration of Next-Generation Energy and Social Systems project, in order to cope with a tight supply and demand situation we conducted a demonstration test on demand-response * between the winter of 2012 and the winter of 2013, and carried out an evaluation and analysis of demand-response impacts for each of the four seasons. Demand response demonstration (Conceptual chart) Chubu Electric Power Household with no demand response Data transmission device Data comparison/verification of effect Analysis of power demand data Activation of demand response Visualization: Provision of historical power demand data Development of a rate structure for use in the demand response demonstration Internet Data transmission device Display device Household with demand response * A program that offers time-based rates and other incentives to encourage customers to reduce electricity usage in the peak-demand period 17

19 Overview of Our Electric Power Business Proposing optimal energy usage plans Chubu Electric Power and Group companies are working together to meet a wide variety of customers needs. In addition to energy conservation, reduction of CO2 emissions and operational costs, industries seek higher productivity, while businesses need energy supply systems that can withstand natural disasters. In response, we support customers in solving their energy challenges by offerring solutions that employ the best advantages of electricity and gas. Energy diagnosis Energy solutions for customers Customers issues regarding the use of energy are identified through installation of energy data management system. Technical consulting; facility design Support for the introduction Sales of electricity and gas of high-efficiency equipment Sales of electricity Sales of gas and LNG Onsite energy services (design, construction, operation, maintenance) An optimal combination of electricity and gas is proposed, while support is provided for the introduction of high-efficiency equipment, to help customers save energy, cut costs, and reduce CO2 emissions. Energy management support The operation and maintenance of equipment, as well as support for energy management operations in accordance with laws and regulations, help customers achieve improvements in management efficiency. Customers facilities Production line facilities Equipment for coating, drying, heating, cooling, cleansing, sterilizing, and other processes Boiler facilities Industrial furnaces and boilers using oil, coal, etc. as heat sources Utility facilities Power generation equipment (gas co-generation, solar power generation), power receiving and transforming equipment, cooling and heating equipment (refrigerators, high-efficiency heat pumps, etc.) Leveraging technologies and knowhow built up in Japan to promote overseas power generation projects Chubu Electric Power Company wants to put to good use all the technology it has built up in Japan and make further contributions to the development of lifestyles in many other parts of the world; the company provides power generation and consulting businesses in many different nations. We will continue to actively develop our overseas businesses, and contribute to stable energy supplies and CO2 reductions across the globe. Major participation in overseas projects USA Gas thermal IPP project 4,780 MW x five stations (Participation began in 2010, in operation) Canada Gas thermal IPP project 875 MW (Participation began in 2009, in operation) (Additional interests acquired in 2011) Asia Environmental funds Investing in several small-scale projects Qatar Gas thermal power I (W) PP * projects (three projects) 1,025 MW, 2,007 MW, 2,730 MW (Operation started in 2008 to 2011) * I (W)PP: Independent (Water) Power Producer Oman Gas thermal IPP project 2,000 MW (Participation began in 2011, under construction) Myanmar Consulting Preparatory survey for a project to improve electric facilities in urban areas in Yangon Thailand Gas thermal IPP project/operation and maintenance project 1,400 MW (Operation started in 2008) Rice husk biomass power generation project 20 MW (Operation started in 2005) Cogeneration project in industrial areas 120 MW x three locations (Participation began in 2011, under construction) Wind power generation project 90 MW x two locations (Operation started in 2012 to 2013) Solar power generation project Six locations, 30.9 MW (Operation started in 2011 to 2013) Malaysia Palm empty fruit bunch biomass power generation project 10 MW x two locations (Operation started in 2009) Indonesia Consulting Work management project on the Keramasan Thermal Power Station Expansion Project Mexico Gas thermal IPP project 525 MW (one station) (Operation started in 2006) 2,233 MW x five stations (Participation began in 2010, in operation) Focus regions Countries where we are involved in consulting (149 projects in 37 countries (at the end of March 2014)) Providing consulting services for the planning of power development; design, construction and management of power facilities; and other aspects mainly for developing countries in Asia and Africa. 18

20 Corporate Social Responsibility (CSR) Activities of the Chubu Electric Power Group Corporate Social Responsibility (CSR) Activities of the Chubu Electric Power Group The Chubu Electric Power Group fulfills its accountability by disclosing information in a timely and appropriate manner, and remains committed to its corporate social responsibility (CSR) to faithfully meet the expectations of all the stakeholders associated with its business activities. * Our CSR activities are outlined in this section on the basis of items recommended in ISO guidelines for CSR. Please see the Chubu Electric Power Company Group Annual Report 2014 for more details of our activities. Corporate Governance The Chubu Electric Power Group believes that the trust of society is the single most important basis of business. In order to continue to be a corporation trusted by our stakeholders, we work to enhance our corporate governance focusing on fair and transparent management. Chubu Electric Power works to continuously improve its CSR efforts through dialogue with all the stakeholders such as customers, shareholders and investors, local communities, business partners, and employees. Denki No Ashita is one of our web journals ( We relay information about our initiatives via the Chubu Electric Power Company s website. President Mizuno speaks at the briefing on financial results for the March 2014 term Discussion meeting with members from Mie University Respect for Human Rights and Work Environment Chubu Electric Power seeks to create a work environment where the ability and aptitude of each employee are valued and employees can fully show their individuality. We established Chuden Wing Co., Ltd. in 2001 to create new work opportunities for people with disabilities. The jobs for such individuals working at this company include printing, marketing of gifts, and gardening. Challenged employees at a workplace President Mizuno signs the document for Women's Empowerment Principles stipulated by the UN Believing in the importance of creating a workplace atmosphere where there is a mutual respect for the individuality of an array of personnel, and abilities can be adequately exercised, we established the Diversity Promotion Office in July 2013, renamed and reorganized from its predecessor, the Female Activities Promotion Office. Group discussion at a Chubu Electric Power Group Diversity Promotion Training session Vice-President Ohno exchanging opinions with employees Through the Merihari Work campaign, we encourage employees to work with maximum productivity in a limited time so that they can achieve a more fulfilling work-life balance. 19