Summary of Comments Made at a Press Conference by Hiroji Ohta, FEPC Chairman, on September 14, 2000


There are two topics I would like to cover today. The first is electricity supply and demand during the past summer, and the second is the Environmental Action Plan for Electric Power Providers.

With regard to electricity supply and demand, although the Pacific high-pressure front weakened briefly in early August, summer temperatures were on the whole much higher than average.

Reference Document 1, Graph 1 shows temperature fluctuations by region for the July-August period. As the data shows, the high temperature and average temperature were generally both 1~2 higher than in an average year. At the bottom of the graph, the number of torrid summer days and nights are shown for 10 major cities. Excepting data for torrid days in Naha, and torrid nights in Sapporo, Sendai and Naha, the number of torrid days and nights was significantly higher than in an average year.

As is shown in Reference Document 1, Table 2, record peak loads were recorded in Hokkaido, Tohoku, Hokuriku, Chugoku and Okinawa (summer figures only for Hokkaido). In addition, the peak load for all companies on Friday, August 25 was 17.307 billion kW, a 1.1% increase of 1.94 million kW over the previous all-time high recorded in 1995. Record daily totals were also marked in Hokkaido, Tohoku, Tokyo, Chubu, Hokuriku and Chugoku (summer figures only for Hokkaido), and the record for daily totals across all 10 companies was renewed four times this summer alone, advancing on an annual basis for third straight year.

With regard to our supply capacity, strengthened output capacity enabled us to maintain a stable supply throughout the summer despite some unplanned stoppages caused by problems at nuclear power facilities.

It seems that in California, which also experienced very hot weather this summer, the fact that market liberalisation has slowed the pace of new facilities investment resulted in a very difficult supply situation. Seeing media reports on the problem there brought home the importance of maintaining a stable power supply. In many respects, this summer's hot weather was a good thing, because it served to remind us of the potential problems we face.

In addition to record high demand, this summer presented us with one other area of concern -damage wrought by thunderstorms. Across the 10 FEPC companies, there were 3329 power transmission line incidents, which is more than double the annual average of 1501 recorded over the past 10 years. In fact, this year has been notable for the number of natural disasters that have occurred - heavy rains and flooding in the Tokai region, the eruption of Mt. Usu, as well as the earthquakes and eruptions on Miyake Island. As public utility providers charged with the task of maintaining a steady power supply, we have had to continually be prepared.

I would now like to turn to the annual review of the Environmental Action Plan for Public Power Providers. The Plan addresses the problems of global warming and the creation of a more environmentally friendly society, and is reviewed each year in light of domestic and overseas trends and results to date. This was the third annual review; an overview is shown in Reference Document 2.

The main points can be summarised as follows: CO2 production per 1kWh of household electricity use rose by 0.01kg to 0.37kg in 1999. This was primarily due to the fact that during the same period, household electricity use rose by 18 billion kWh (approximately 2.2%) to 817 billion kWh, while nuclear-generated power declined by 16 billion kWh. Compared to the benchmark year of 1990, however, CO2 production has declined by 0.05kg - a reduction of 12%.

Reductions in CO2 output attributable to nuclear, LNG thermal, and hydro generation are estimated at approximately 410 million tons. Nuclear power alone accounted for a reduction of approximately 230 million tons, an amount that corresponds to 20% of the entire nation's CO2 output in 1997. From the standpoint of the global environment, we are reminded again of the importance of nuclear power promotion.

From an international standpoint, although Japan has a higher CO2 output level than Canada, with its vast hydro power resources, or France, with its extensive nuclear power resources, our output level is only 65% of that of most leading European and American nations.

As you know, our goal for the year 2010 is to reduce CO2 output by 20% of the 1990 benchmark. Despite lengthy delays in the siting process for new nuclear power facilities, we plan to achieve our goal by increasing the nuclear power utilisation rate and thermal power plant efficiency, and by considering various thermal power-management methods that achieve full implementation of the Kyoto mechanisms.

With regard to waste output, which by 2001 is expected to almost double to 11 million tons for the industry as a whole, our goal is to hold output at the 1990 level of 2.4 million tons. In 1999, 7.17 million tons of waste were produced. Although this represented an increase of 520,000 tons on the previous year, waste recycling was increased by 880,000 tons to reach 5.81 million tons. As a result, final waste disposal declined by 360,000 tons to 1.36 million tons, and recycling efficiency of over 80% - twice the national average - was achieved. Most of gains resulted from the recycling of coal-fired thermal power plant waste into raw materials for cement and concrete fill material. Although production of coal waste was high at 4.79 million tons, 76% of the total - some 3.66 million tons - was recycled.

In the future, we will strive to maintain and improve thermal-generating efficiency, and develop efficient new ways to regularly utilise large amounts of coal ash in an all-out effort to achieve our 2010 targets.

New legislation to promote better chemical substance management will take effect in April of 2001. The legislation will call for mandatory tracking of chemical handling and disposal. In advance of this, the electric power industry is releasing its 1999 chemical substance handling and disposal records for 15 of the 354 designated chemicals, including freon and asbestos, that will be covered by the new law.

The power industry has long-established guidelines for the management of designated chemical substances contained in generating plant fuels, boiler water, and water-treatment agents. With regard to chemical substances such as freon and other ozone-depleting chemicals used for cooling and cleaning operations, we are reducing use, preventing runoff, and implementing various recycling and replacement schemes. In the future, we will continue to improve chemical substance management and monitoring accuracy to reduce the environmental impact of all designated chemicals.

As I have stated, the issues that the power industry faces are numerous and complex, but we consider environmental issues one of our top management priorities, and will continue to address such issues aggressively and proactively in the future.