ID :
180989
Mon, 05/09/2011 - 18:58
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https://oananews.org//node/180989
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Chubu Electric agrees to shut Hamaoka nuke plant
NAGOYA, May 9 Kyodo - Chubu Electric Power Co. agreed Monday to suspend operation of the Hamaoka nuclear power station in Shizuoka Prefecture, as requested by Prime Minister Naoto Kan for safety reasons, a move that will likely cause power demand and supply to be tight in its service area, which is home to a number of major Japanese manufacturers.
The utility serving central Japan around Nagoya made the decision at an extraordinary board meeting, the second of its kind since Saturday's inconclusive one, after discussing ways to ensure a stable supply of power in summer in the event the company fulfills the request.
Major Japanese manufacturers including Toyota Motor Corp., Honda Motor Co. and Suzuki Motor Corp. have production facilities in the region served by Chubu Electric, raising concerns over the outlook for Japan's broader economy.
At issue is whether Chubu Electric can secure enough output capacity to meet summer peak demand by rebooting its suspended thermal power plants and whether it can procure sufficient fuel to that end at a time Tokyo Electric Power Co. is also trying to make up for power shortages with its thermal plants.
''We decided at today's extraordinary board meeting to suspend operation of the Nos. 4 and 5 reactors and postpone restarting of the No. 3 reactor,'' Chubu Electric President Akihisa Mizuno said at a news conference.
He said the utility will call on its customers to save energy without implementing rolling blackouts, adding it has decided to stop providing electricity to Tokyo Electric, which has faced severe power shortages after the March 11 devastating earthquake and tsunami crippled its Fukushima Daiichi nuclear power station in Fukushima Prefecture.
Mizuno added his company has no plan to raise its power charges.
Kan welcomed Chubu Electric's decision, saying, ''It was very good.''
''The government will also make efforts to prevent overall electricity from running short,'' he said.
Industry minister Banri Kaieda promised that the Economy, Trade and Industry Ministry will consider offering financial support to the utility over a possible cost burden it would have to bear due to the suspension.
Kaieda's remarks came as fears grow that Chubu Electric will run a deficit in fiscal 2012. The utility on Monday withdrew its earlier earnings forecast for the year ending March 2012 and held off its new earnings outlook.
Last Friday, Kan said all operations at the Hamaoka plant must be suspended because of concern a powerful earthquake could hit the area and trigger another serious nuclear accident in addition to the ongoing crisis at Tokyo Electric's Fukushima plant.
Kan referred to the Education, Culture, Sports, Science and Technology Ministry's prediction that there is an 87 percent chance of a magnitude-8.0 level quake hitting the Tokai region in central Japan within 30 years.
Government officials have said Chubu Electric will likely need around two years to finish implementing sufficient preventive steps against major tsunamis that may be triggered due to the possible powerful quake.
Chubu Electric said it plans to stop operating the Nos. 4 and 5 reactors at the Hamaoka station within the next few days, after making arrangements with Kyushu Electric Power Co. and others for electricity provision.
Mizuno said he had a telephone conversation with Kaieda and obtained the minister's assurance that Chubu Electric can resume its operation of the Hamaoka station after completing its safety measures.
Located in the city of Omaezaki, on the Pacific coast southwest of Tokyo, the Hamaoka complex, which accounts for around 11.7 percent of the total electricity supply of Chubu Electric, stands near a major fault line.
Currently, the Nos. 4 and 5 reactors are in operation and the utility had been hoping to restart the No. 3 reactor, which is undergoing regular checks, as early as in July. The Nos. 1 and 2 reactors have already been put out of operation and the utility is set to decommission them.
The Nagoya-based firm also appears to have examined if it could be held responsible by shareholders if its earnings performance were to deteriorate by accepting the government request, which lacks a legal basis.
In summer, energy demand, chiefly for air conditioning, climbs 800,000 kilowatts for each 1 C rise in temperature, according to the utility.
If it is to meet all of the demand with only thermal power generation, the additional fuel cost would be 700 million yen per day, or about 250 billion yen annually, according to the firm.
The utility serving central Japan around Nagoya made the decision at an extraordinary board meeting, the second of its kind since Saturday's inconclusive one, after discussing ways to ensure a stable supply of power in summer in the event the company fulfills the request.
Major Japanese manufacturers including Toyota Motor Corp., Honda Motor Co. and Suzuki Motor Corp. have production facilities in the region served by Chubu Electric, raising concerns over the outlook for Japan's broader economy.
At issue is whether Chubu Electric can secure enough output capacity to meet summer peak demand by rebooting its suspended thermal power plants and whether it can procure sufficient fuel to that end at a time Tokyo Electric Power Co. is also trying to make up for power shortages with its thermal plants.
''We decided at today's extraordinary board meeting to suspend operation of the Nos. 4 and 5 reactors and postpone restarting of the No. 3 reactor,'' Chubu Electric President Akihisa Mizuno said at a news conference.
He said the utility will call on its customers to save energy without implementing rolling blackouts, adding it has decided to stop providing electricity to Tokyo Electric, which has faced severe power shortages after the March 11 devastating earthquake and tsunami crippled its Fukushima Daiichi nuclear power station in Fukushima Prefecture.
Mizuno added his company has no plan to raise its power charges.
Kan welcomed Chubu Electric's decision, saying, ''It was very good.''
''The government will also make efforts to prevent overall electricity from running short,'' he said.
Industry minister Banri Kaieda promised that the Economy, Trade and Industry Ministry will consider offering financial support to the utility over a possible cost burden it would have to bear due to the suspension.
Kaieda's remarks came as fears grow that Chubu Electric will run a deficit in fiscal 2012. The utility on Monday withdrew its earlier earnings forecast for the year ending March 2012 and held off its new earnings outlook.
Last Friday, Kan said all operations at the Hamaoka plant must be suspended because of concern a powerful earthquake could hit the area and trigger another serious nuclear accident in addition to the ongoing crisis at Tokyo Electric's Fukushima plant.
Kan referred to the Education, Culture, Sports, Science and Technology Ministry's prediction that there is an 87 percent chance of a magnitude-8.0 level quake hitting the Tokai region in central Japan within 30 years.
Government officials have said Chubu Electric will likely need around two years to finish implementing sufficient preventive steps against major tsunamis that may be triggered due to the possible powerful quake.
Chubu Electric said it plans to stop operating the Nos. 4 and 5 reactors at the Hamaoka station within the next few days, after making arrangements with Kyushu Electric Power Co. and others for electricity provision.
Mizuno said he had a telephone conversation with Kaieda and obtained the minister's assurance that Chubu Electric can resume its operation of the Hamaoka station after completing its safety measures.
Located in the city of Omaezaki, on the Pacific coast southwest of Tokyo, the Hamaoka complex, which accounts for around 11.7 percent of the total electricity supply of Chubu Electric, stands near a major fault line.
Currently, the Nos. 4 and 5 reactors are in operation and the utility had been hoping to restart the No. 3 reactor, which is undergoing regular checks, as early as in July. The Nos. 1 and 2 reactors have already been put out of operation and the utility is set to decommission them.
The Nagoya-based firm also appears to have examined if it could be held responsible by shareholders if its earnings performance were to deteriorate by accepting the government request, which lacks a legal basis.
In summer, energy demand, chiefly for air conditioning, climbs 800,000 kilowatts for each 1 C rise in temperature, according to the utility.
If it is to meet all of the demand with only thermal power generation, the additional fuel cost would be 700 million yen per day, or about 250 billion yen annually, according to the firm.