Today, I would like to speak to you both as chairman of the FEPC, and as
president of Chubu Electric Power.
First, as FEPC chairman, I would like to report on the conclusion of an
agreement regarding cooperative measures to be taken in the event of a
nuclear emergency.
Six months have passed since the accident at the JCO Tokai Plant. As already
reported, last December we established the Nuclear Safety Network (NS Net)
to boost awareness of the need for rigorous safety measures throughout
the nuclear power industry to ensure that such an accident never occurs
again. To this end, the peer reviews that are a key feature of NS Net activities
began last month with a review of the Mitsubishi Nuclear Fuel Co., Ltd.
facility in Tokaimura. A review of the Nuclear Fuel Industries, Ltd. Tokai
Manufacturing Plant also got underway on May 23, and will be completed
today. In addition, Japan Nuclear Fuel Company facilities are slated for
review June 6-9, and in all, some 11 peer reviews are planned for this
year. Schedules and results of the reviews will be posted on the NS Net
website as they become available, and I encourage you all to have a look
at them.
In addition to these preventive efforts, however, it is also essential
for electric power companies to be prepared to cooperate with one another
in the unlikely event that a nuclear emergency does occur.
At the time of the JCO accident, power providers sent some 3500 personnel
and 1200 radiation measurement devices to the area to monitor the surrounding
environment, survey local residents and provide other support services.
Although I believe these activities helped lessen the fears of the local
populace and ensure calm, the number of people and the quantity of equipment
involved brought several problems to light.
EThe need to house and feed personnel at the site and ensure open channels
of communication with them
EThe need for radiation monitoring and administrative guidelines to ensure
the safety of personnel dispatched to the site
EThe need to establish guidelines regarding expenses incurred and the
length of time that support is provided
Based on what we learned at the time, and with a view to ensuring compliance
with the Special Law for Nuclear Disaster Measures that will be enacted
on June 16, we have carefully studied how electric power providers can
best cooperate with one another in the event of a nuclear emergency. Based
on our findings, a cooperative alliance comprised of the nine major electric
power companies, Japan Atomic Power Company, Electric Power Development
Co., Ltd. and Japan Nuclear Fuel Limited will be established. An overview
of the alliance is provided in the Reference Documents.
The alliance will provide support not only in the event of emergencies
at nuclear power plants and related facilities, but also in the event of
emergencies that occur during the transportation of nuclear fuel. Support
activities will, however, be limited to the provision of personnel and
equipment for off-site activities such as environmental radiation monitoring,
contamination assessment and contaminant disposal.
For each facility or geographic region, a specific alliance member will
be appointed to coordinate support activities. Upon receiving a request
for assistance from a facility where an accident has occurred, the designated
member will dispatch an advance support team to the area. This advance
team will establish a local command center and coordinate with other alliance
members in providing the necessary support.
The terms of the alliance agreement also specify that administrative responsibility
for support personnel will reside with the operator providing that personnel,
and that the cost of support activities will be borne by operator of the
facility where the accident occurs.
Due to time constraints, the alliance will initially consist of only 12
members. Should an emergency arise at a facility operated by a non-alliance
member, however, the alliance member charged with the task of coordinating
support efforts in the affected region will take the initiative in providing
assistance. In the future, we hope to expand alliance membership and create
a truly wide-ranging emergency mutual support network.
Details of the alliance are currently being finalized, and we hope to have
it operational by the time the Special Law for Nuclear Disaster Measures
is enacted on June 16.
Turning to the next topic, I would like to announce Chubu Electric Power
Company's entry into the LNG retail market.
On January 7 of this year, we announced plans to form a joint venture company with Japan's largest LNG operator, Iwatani International Corporation. The plans were made with a view to strengthening our operations in the face of electric power industry liberalization, and draw on the strength of both companies.
Since then, we have considered various options, and have almost finalized
plans to establish a new LNG retail sales company. The company will be
known as LNG Chubu Co., Ltd., and will be capitalized at 200 million yen,
with 51% of the funds provided Chubu Electric, and 49% by Iwatani International
Corporation. The head office will be located within the grounds of Chubu
Electric Power Company's thermal generating plant in Kawagoe-Machi, Mie
prefecture. A sales office is also slated for Nagoya. Current plans call
for the company's official establishment on June 8. LNG sold by the new
firm will be delivered to customers by truck from a facility at the Kawagoe
thermal generating plant.
Sales will initially be limited to large industrial customers located within
a few tens of kilometers of the Kawagoe LNG facility. Market research indicates
that there are several companies that meet this criterion and this is where
our efforts will initially be concentrated.
Deliveries are scheduled to begin as early as April 2001, and we expect
to achieve a sales volume of 20-50 thousand tons within 5 years of that
date. In terms of revenue, this translates to first-year sales of approximately
100 million yen in FY 2001, and 1 billion yen in FY 2005.
With regards to management personnel, Katsuya Muroki, managing director
of Chubu Electric Power Company will take on the additional responsibility
of serving as the new company's president. The board of directors will
consist of five members, two from Iwatani International Corporation and
three from Chubu Electric Power Company. They, together with three other
senior management officers, will guide the company at the time of its launch.