CONTENTS Editorial Policy •This report describes our efforts to help achieve a sustainable society, and the 2007 Chubu Electric Power CSR Report results of our initiatives. •In editing the FY2007 version of our CSR Report, we used as reference the Editorial Policy Sustainability Reporting Guideline 2002 by Global Reporting Initiative (GRI), Corporate Profile which provides international guidelines on Chubu Electric Power Group organizational reporting on sustainability, as well as the Environmental Reporting Guideline 2003 issued by the Ministry of CSR Declaration 1 the Environment. Message from the President & Director 2

Report period Fiscal year 2006 Highlights of FY2006 Initiatives (April 2006 through March 2007) Collaboration 4 (This report also includes information 2007 Chubu Electric Power CSR Report regarding some important events and Addressing environmental issues in partnership with the community activities that occurred outside the above Energy Solution 8 period.) Proposing “E Air-Conditioning” to Help Build Eco Stores

Date of Previous Report Management and Economic Performance September 2006 Management Goals 10 Organizations Covered by this Report Corporate Governance 14 As a rule, the performance of Chubu Electric Power Co., Inc. is reported on a non- Internal Controls 15 consolidated basis from FY2006. In some Ensuring Safety and Security 16 instances, the performance of companies in Unacceptable Acts at Power Stations and Remedial Action 20 the Chubu Electric Power Group is reported. Compliance 21 Contacting Us Commitment to Nuclear Power Generation 22 1 Toshin-cho, Higashi-ku, Nagoya, 461-8680 Japan Environmental Performance CSR Group, Corporate Planning & Strategy Division The Environmental Declaration of the Chubu Electric Power Group 26 Chubu Electric Power Co., Inc. Regime for Protecting the Global Environment 27 TEL: +81-52-973-2124 FAX: +81-52-962-3015 Action Plan 28 E-mail: [email protected] Business Activities and Environmental Impact 32 Environmental Accounting 33 Legend Guideline 1: We will use resources effectively. 34 HP Guideline 2: We will reduce our environmental load. 38 Details are found on our corporate website. Guideline 3: We will improve our level of environmental management. 47 http://www.chuden.co.jp/english/index.html Guideline 4: We will increase environment-related communication 52 • In the main text, the terms denoted by and enhance cooperation with the community on a local “ * ” are explained in the margin of the and global level. page near the location of the applicable term. Chubu Electric Power Environmental Forum 57 LOOK! P. 00 Social Performance Related articles and information can be found on the specified page or pages within Customers 58 this report. Shareholders and Investors 60 URL http://www Local Communities 61 Related websites are listed. Business Partners 66 Photographs on the cover Employees 67 Scenes from Nagoya Port Wildflower Female staff project initiatives 70 Garden Bluebonnet. The photographs at the beginning of the External Feedback three main sections on the chapter title pages Stakeholder Dialogues 72 10, 26 and 58 were also taken at Nagoya Port Wildflower Garden Bluebonnet. For Opinions exchange with Mie University 73 details on Bluebonnet, refer to the relevant Third-party Views 74 section in this report. LOOK! P. 61 Schematic Diagram of Chubu Electric Power System Corporate Profile Chubu Electric Power Group

We are a total energy supplier, with energy as our core business, supplying electricity, gas, LNG, and distributed energy. We also offer environmental, social, and IT services in order to make our core business more competitive and profitable, and improve our brand value. We will draw on the technical capabilities and expertise of Group companies to contribute to the building of a sustainable society.

Corporate Name Chubu Electric Power Co., Inc. Principal Business Indicators (for FY2006 and FY2006 term-end) Electricity Home city 1 Toshin-cho, Higashi-ku, Capital 430.7 billion yen Nagoya 461-8680, Japan AOYAMA-KOGEN WIND FARM CO., LTD. Total Assets 5,287.2 billion yen Phone +81-52-951-8211 (Head) A.T. Biopower Co., Ltd. Interest-Bearing Debt 2,925 billion yen Energy Compañía de Generación Valladolid, S. de R.L. de C.V. President & Toshio Mita Number of Outstanding Shares 782,153,165 LNG Chubu Corporation Director Number of Shareholders 331,701 Cenergy Co., Inc. Telecommunications Number of Employees 16,025 Chita LNG Co., Ltd. Established May 1, 1951 Service Area 5 prefectures in the Chubu region: Chuden CTI Co., Ltd. S-energy service Co., Ltd. Chubu Telecommunications Co., Inc. Summary of Facilities (as of March 31, 2007) Aichi, Gifu (excluding certain areas), Centrair Energy Supply Co., Ltd. Network Support Service Company, Incorporated Mie (excluding certain areas), Nagano,and Nagoya Energy Service Co., Ltd. Power Thermal 22.369 GW (11 locations) Hamamatsu D.H.C. Co., Ltd. Omaezaki Cable Television Generation Shizuoka (all areas west of the Fujigawa River) Hydroelectric 5.22 GW (182 locations) Hokuriku Erunesu Co., Ltd. CHUBU CABLE NETWORK COMPANY, INCORPORATED Facilities Number of Customers Light 9,081 thousand Nuclear 4.884 GW (1 location) (excluding certain Power 1,307 thousand Total 32.473 GW (194 locations) high voltage customers) Total 10,388 thousand Construction Electric Power Sold 132.7 TWh Real Estate Management C-TECH CORPORATION Power Transmission Line 12,218 km Total operating revenues (Parent Only) 2,117 billion yen Transmission Chubu Plant Service Co., Ltd. Chuden Real Estate Co., Inc. Route Length (Consolidated) Facilities 2,213.7 billion yen TOENEC CORPORATION (Parent Only) Ordinary Income (Consolidated) 162.7 billion yen Toenec Service Co. Ltd Transforming Number of 935 locations 178.6 billion yen TOENEC (THAILAND) CO., LTD. Chubu Electric Power Group Facilities Substations Shareholders’ Equity Ratio 29.9% TOENEC PHILIPPINES INCORPORATED 120.613 million kVA Manufacturing Capacity TOENEC (TAIWAN) CO., LTD. 300 MW* TOENEC CONSTRUCTION (SHANGHAI) CO., LTD. COMRES CORPORATION CHUBU SEIKI Co., Ltd. Linkage Station 1 location Electric Power Sales Trend Capacity 300 MW Consolidated subsidiaries AICHI KINZOKU KOGYO Co., Ltd. Logistics (37 companies) AICHI ELECTRIC Co., Ltd. Chita Tansan Co., Ltd. Power Distribution Line 134,971 km Chuden Transportation Service Co., Ltd. Affiliated companies subject Chubu Liquid Oxygen Co., Ltd. Distribution Length Facilities to the equity method TOKAI CONCRETE INDUSTRIES Co., Ltd. SHIN-NIHON HELICOPTER Co., Ltd. (22 companies) * For frequency conversion facilities (capacity: 100 MW), please refer to other pages

Primary Business Areas Service Electric utility and related enterprises EIRAKU AUTO SERVICE Co., Ltd. Chubu Cryogenics Co., Ltd. Chubu Electric Power Company International B.V. Chita Berth Co., Inc. Techno Chubu Co., Ltd. Chubu Electric Power Company U.S.A. Inc. Gas supply and thermal storage brokerage Chuden Wing Co., Ltd. TOHO Industry Co., Ltd. Chubu Electric Power (Thailand) Co., Ltd. Distributed generation systems CHUDEN KOGYO Co., Ltd. Toho Oil Co., Ltd. KASUMI BERTH CO., INC. Chuden Haiden Support Co., Ltd. Overseas consulting and investment Filltech Co., Ltd. Zeneral Heat Pump Industry Co., Ltd. Breakdown of Generated Output by Source CHUDEN BUSINESS SUPPORT Co., Ltd. Real estate management service LiveNet Co., Ltd. NIPPON MALENIT CO., LTD. Chuden Disaster Prevention Co., Ltd. Kiray Yu Co., Inc. Compañía de Operación Valladolid, S. de R.L.de C.V de C.V. IT business CHUBU HOME WARANTEE CORPORATION PFI Toyokawa Hoi Saijo Co., Ltd. Etc. Chubu Ratchaburi Electric Services Co., Ltd. ％ ％ ％ ％ ％ ％ ％ Try Capital, LLC ％ ％ ％

％ ％ ％ ％ Initiatives to strengthen Group management ％

％ A merger of Eiraku Development Co., Ltd., Chuden Bldg. Co., Inc. and Chubu Greenery Co., Ltd. took ％ ％ ％ effect to create a new company called Chuden Real Estate Co., Inc. ％ October 2006 ％ Upon completion of the merger, Eiraku Development spun off its operations related to management of ％ ％ ％ ％ power distribution sites, which were taken over by NITTAI Co., Ltd. The takeover effectively created a new company named Chuden Haiden Support Co., Ltd. Chubu Electric Power successfully implemented a takeover bid on TOENEC CORPORATION to February to March 2007 enhance its capital relationship with TOENEC. TOENEC CORPORATION and C-TECH CORPORATION will mutually transfer business operations October 2007 (scheduled) under a joint business reorganization strategy. Fulfilling our responsibilities and meeting society’s expectations

At Chubu Electric Power, we will continue to fulfill our corporate social responsibility (CSR) by working in good faith to meet the expectations of all our stakeholders, publicly disclosing our initiatives and continually improving them with the help of feedback from the general public. Although our approach to CSR was incorporated into our Basic Management Policies in January 1996, we formulated our CSR Declaration in March 2006 to communicate our message more clearly and concisely to our stakeholders. General Management Policy

1. Bear in mind the origins of our business and create a future of joint opportunities with our customers ·········· Create the future with our customers 2. Contribute to the global community as a good corporate citizen ·········· Form part of the global community 3. Generate new vitality through commitment to the principle of self-responsibility ·········· Head into the future with new energy

CSR Declaration Fulfilling our responsibilities and meeting society’s expectations

Chubu Electric Power, as a general energy service company, is committed to: Contributing to the development of a sustainable society by giving top priority to safety and striving to both provide a stable supply of energy and protect the global environment; Managing our businesses in a fair and sincere manner by observing laws, regulations, and social rules, and by respecting corporate ethics; and Giving priority to dialogue with all our stakeholders and maintaining high levels of transparency and openness in our business activities.

Customers We are committed to providing our customers with safe, reliable, convenient, and inexpensive energy services. Shareholders and Investors We are striving to maintain and increase profits for our shareholders and investors through efficient management and effective investment. Local Communities We are determined to contribute to sustainable local development in partnership with local communities. Business Partners We promise to deal fairly with our suppliers as equal business partners. Employees We respect individuals and are endeavoring to create a cheerful and motivating workplace.

1 We are determined to steadily achieve the goals set out in our declaration through our conduct of day-to-day business activities. endeavor is to create a culture that generation efficiency further through encourages employees to report defects and development of LNG power stations utilizing Message from the President & Director problems instead of concealing them. The a high-efficiency combined cycle system, above-mentioned events do not just concern developing our own wind power generation the engineering department. Rather, they facilities, and acquiring credits by utilizing represent issues we as a company must the mechanisms established under the Kyoto The Chubu region has been dubbed the tackle. We will drive home once again the mechanisms. “most vibrant region in Japan” in recent important message that the power business is Among the programs we implemented in years. This designation is warranted when founded upon the trust of our customers, and FY2006 to promote our environmental one considers the high effective ratio of job we will expend all possible efforts toward communication, was the “Chuden Eco openings to applicants in the region, and building an open workplace where we can Partnership” initiative, where we great effervescence of Nagoya, the center of learn from past defects and problems, collaborated with NPOs and other civic the Chubu region. To help Chubu continue utilizing them as a valuable experience. organizations to plant trees and provide developing into an even more attractive education on the environment. We are region in the future, Chubu Electric Power Resumption of operation confident that accumulation of these projects and its Group companies are committed to of Hamaoka Unit 5 carried out in collaboration with the delivering a wide range of energy-related community will eventually expand our services while stressing reliability and With regard to the shutdown of Hamaoka partnership in environmental preservation affordability, thereby fulfilling our mission as Nuclear Power Station Unit 5 due to a low- efforts. a public utility company that excels at pressure turbine blade failure in June 2006, serving its consumers. we apologize for all the concern that we Respect for diversity – A driving force In 2006, in order to accelerate our CSR caused our stakeholders. We installed a behind sustainable growth activities, we issued the first Chubu Electric pressure plate in March 2007, after which the Power CSR Report under our CSR unit resumed operation. However, it will take As I mentioned above, we are implementing Declaration, which spells out Chubu Electric some time before the full utilization level is a project to further the role of women in the Power’s dedication and commitment to the restored, as we must thoroughly review the workforce. The purpose of this project is to region. We are confident that in line with the design of the facility. We will continue to drive an awareness reform regarding Declaration, we have made steady steps work on ensuring the safety of station workforce diversity and create a culture forward in various areas. This cumulative operations by disclosing information on where not only are women accorded their progress, including the appointment of facility failures and problems in a timely rightful place alongside their male external directors to drive reform of our manner. colleagues, but where all employees respect management mechanism, implementation of the individuality and uniqueness of others more CSR-oriented procurement activity, and Launching full-scale environmental and are encouraged to demonstrate their Taking our a project to promote the role of women in the preservation efforts abilities fully. I personally believe that it is workforce, has built a solid foundation for my job as the president of the Company to our future prosperity. At Chubu Electric Power, we believe that provide an environment and implement commitment to one of our most important management measures to make this happen. Such a challenges is to address issues affecting the diverse workplace will surely harness a Creating an open workplace greater heights by global environment. The shutdown of driving force to propel us forward toward Hamaoka Nuclear Power Station Unit 5 also achieving sustainable growth. It is also hoped On the other hand, sadly we must report that, had significant impact on our environmental that we will be able to coordinate our remaining aware of as a result of investigations following a series activities. Since units 1 and 2 are also activities with similar efforts of other local of scandals at other electric power companies currently stopped for a long-term overhaul to companies to make this a region-wide the weight of our involving falsification of data and ensure operational and environmental safety, movement. inappropriate procedures relating to power we need to do more to achieve our carbon generation facilities, we also found records dioxide emission reduction target without We invite your comments on our CSR Report responsibility of events at our facilities that are considered relying solely on nuclear power generation. 2007. We will analyze and learn from your unacceptable. We take the occurrence of We will resort to all possible measures to inputs and improve the report further. We these unacceptable acts seriously. Under the achieve the target, such as improving power look forward to receiving your candid and leadership of the top management, we must open comments. continuously improve our measures to prevent the recurrence of these events, with a strong determination never to repeat the same mistakes. One important aspect of this 2 Toshio Mita President & Director action, the impact will be magnified and more next targets, and how the partnership should steer people will be encouraged to join the cause. By collaborative efforts further among civic working with civic organizations, we can also organizations and between organizations and better understand and address the environmental companies. Heated discussions took place on needs of the community. various topics, including the issues of manpower By strengthening the traditional framework of and money, which are two important resources independent action by individual environmental required to carry out environmental activities. Highlight Report Special organizations and corporations through civic- Interesting comments were received. These corporate collaboration, we hope to maintain the included: “A problem that cannot be addressed by heightened level of awareness of the environment one civic organization alone will be eventually that followed the holding of Expo 2005 Aichi solved if we continue to create new partners and Japan. seek a solution patiently” and: “We cannot hastily Reconfirming the partnership through set our limit on what we can do, because a symposium possibilities are endless if we work together.” Strengthening the Eco Partnership Chubu Electric Power will learn from the important through concerted efforts! feedback received at the symposium and strengthen

Following a kickoff event in May 2006, we our “Eco Partnership” by working hand in hand Collaboration organized a number of specific, original programs with citizens’ groups. between June and October in collaboration with various citizens’ group in the Chubu region. On November 5, we held the “Chuden Eco Partnership” symposium where participants, including volunteers from civic organizations working in partnership with Chubu Electric Power, discussed activity results. At the symposium, various groups presented the Special Report Collaboration outcomes of their activities and shared with the Highlight from 2006 audience their reflection on what they learned, the Addressing environmental issues in Each group presented the outcome of their effort at the symposium. partnership with the community

“Chuden Eco Partnership” activities

Chubu Electric Power started the “Chuden Eco Expo 2005 Aichi Japan (Japan Expo 2005), the Partnership” initiative together with civic Chubu region, led by civic organizations, became organizations such as NPOs, schools, and other active in the area of environmental organizations concerned about the environment. In preservation. 07CuuEeti oe S Report CSR Power Electric Chubu 2007 FY2006, over 10,000 people participated in various In line with this trend, Chubu Electric Power activities. We will provide support to expand the decided to integrate in FY2006 the various circle of environmental activities in the Chubu environmental activities it was implementing in region, to generate a larger environmental different areas, such as tree planting and nature preservation movement. observation programs, under the single banner of Infusing fresh energy into environmental “Chuden Eco Partnership.” activities through collaboration An individual’s impact may be limited, but if many With the organization of the environment-themed individuals join forces to send a message and take

4 5 Eco No Tsubomi, Aichi Shukutoku University Nissin Citizens’ Network on the Environment (NPO) Ecology Education Study(ECOEDU Group ) (NPO)

Representative: Mikako Kobayashi Representative: Kiyomi Shimamura Representative: Minoru Ohata

We gained knowledge about the We had concerns at the Thank you for making environment and heightened our beginning, but soon found arrangements for labor and other matters on the day of environmental awareness. We that Chubu Electric Power Highlight Report Special tree planting. It was a good were also able to learn how Eco Quiz Rally was a dependable Power generation experiment Children experienced tree planting first-hand. experience for us to organize much energy and effort are put cheerleading squad. They Nisshin Citizens’ Network on the Environment attaches Eco No Tsubomi organizes the Eco Quiz importance to providing children with learning a joint event with a The Group conducts programs designed to into planning and organizing an Rally and maintains the Eco Bulletin Board on supported us every step of opportunities. Under this principle, the Network organizes promote and implement environmental the Candle Night, a power generation experiment, and company. education and research. These programs mainly event. It was a great experience. campus to raise awareness among students the way. other events where citizens can take the lead and also about ecological and environmental issues. collaborate with the local government and companies to target children and their parents, as well as build an environmentally friendly town. teachers, in the community.

Ecobankaichi (NPO) Lovers of Water and Greenery (NPO) Representative: Yasuhiro Hiramatsu Representative: Shojiro Sato

With help from the corporate We had many volunteers What we expect from various sectors of sector, we were able to Expanding the “Chuden Eco Partnership” – society. It was good to see harness fresh energy. We from the people of different

Test drive of fuel cell vehicle Voices of participating Forest building workshop Collaboration will certainly utilize this backgrounds work together Ecobankaichi provides children with information groups and learn about the The Association is organizing events that energy in other events. and opportunities to learn about the environment. educate participants through observation of environment, with activities such as organizing a “Chuden Eco nature and forest building workshops to test drive of a fuel cell vehicle and hosting a create more lovers of water and greenery who laboratory workshop on alternative energy. We want to share our can initiate actions to protect the environment. Partnership” commitment to the global environment with many Association for Promotion of Nutritional Chubu Recycle Citizens’ Organization (NPO) more people. This desire led Improvement – Shizuoka Branch Representative: Yoshiyuki Ogihara to the start of the “Chuden Representative: Ikuyo Oda Eco Partnership.” Under I hope that people will learn various Partnership We were fortunate to be able programs, we are working to organize this class. We more about the collaboration were able to provide the between companies and with citizens’ groups to carry participants with an Tree planting at Expo 2005 Aichi Japan Family Eco cooking class NPOs through the “Eco out many different activities, opportunity to learn new Chubu Recycle Citizens’ Organization conducts wide-ranging programs geared toward creating a all designed to protect our things. The Association focuses on environmental Partnership.” recycling-oriented society and an adequate regional issues relating to food and carries out programs recycling system. They are also Chubu Electric environment. We asked some to help people understand what they can do for Power’s partner in a program to present consumers the environment in the kitchen, such as reducing with gift certificates to receive seedlings. of the groups that worked refuse and wastewater from home. with us to comment on their “Chuden Eco Partnership” Asperger Society (NPO) Chuden Eco Partnership experience. Team Bandori (NPO) Representative: Shoji Tsujii (In random order, November Representative: Ritsuko Sakai 2006) Looking at the faces of We were happy to see some familiar faces, as some children brimming with participants had worked with us energy, I realized once again at Expo 2005 Aichi Japan. We Family cooking class will organize more joint events Field day to observe nature near a power station the significance of like this to deepen friendship By inheriting the spirit of Expo 2005 Aichi companies and NPOs The Asperger Society supports parents who with other organizations. are raising children with developmental Japan, the Team organizes various programs, such as field days to observe nature near disorders. They organize family cooking working together. power stations, where citizens can learn to classes and recreational events. think and act for the global environment.

Executive Committee of the Environmental Learning Exchange Program for high school and university students E-Produce (NPO) Grove Metasequoia (NPO) 07CuuEeti oe S Report CSR Power Electric Chubu 2007 Representative: Takuya Takushoku Representative: Takehiko Hasegawa Member: Yoshihiro Otsuka

We received comments from We had many families taking Many parents participated in participants working for part in the event, which was the event and watched their what we wanted. Many organizations and companies people who met for the first children take on interesting Environmental Learning Exchange Program, time worked together for the Water workshop Forest walk outside schools. They provided participated in by high school and university students challenges. The children also same cause and developed The Friends of the Metasequoia Forest us with fresh insights and views. The Program organizes events that promote friendships. It was a E-Produce promotes events that introduce made many new discoveries organizes activities that allow participants to friendship between high school and university children and their parents to exciting experience nature, mainly in the Gujo area which students in Nagano Prefecture and gives them wonderful gathering. discoveries about global resources and in a natural setting. is blessed with an abundance of greenery, so hands-on experience on environmental issues natural environments, such as hands-on that children will develop a fuller understanding through joint activities. workshops on nature and energy. of the natural environment.

6 7 Customer’s comment Highlight Report Special Shiro Okamura Manager of AEON Chikusa Shopping Mall, AEON Co., Ltd.

Our store is the first Eco Store in the AEON network. It is an urban shopping center that organically integrates various green technologies and environmental preservation efforts. Under this concept, we designed an energy- efficient air-conditioning system incorporating new perspectives hammered out through intense discussion, since this accounts for a significant portion of all energy consumed by the mall. Based on Chubu Electric Power’s proposal, we adopted turbo refrigerating units. They are very efficient and we are able to enjoy significant energy savings while cutting down on carbon dioxide emissions substantially. The energy-efficient air-conditioning system is also helping us keep the running costs low. As an Eco Store, we will continue to provide information on the environment with the goal of becoming trusted and popular among the local community.

Benefits of “E Air-Conditioning System” System overview Solution Energy

Reduction in carbon dioxide emissions • Constant-speed turbo refrigerating unit Reduction in energy consumption 1,230 kW x 1 unit Reduction in running costs • Inverter turbo refrigerating unit Compared to a conventional (gas-based) system, 1,230 kW x 1 unit the “E Air-Conditioning System” resulted in: • Electrical heat pump Lower CO2 emissions by 589 t-CO2 a year 1,834 kW

Energy savings of 11,172 GJ a year

Eco Store combining various utilization of groundwater. The Eco Store adopted this air- Special Report Energy Solution environmental technologies and ideas conditioning system. This “E Air-Conditioning System” can Highlight from 2006 provide a high heat output equivalent to around 18 times the AEON Chikusa Shopping Center opened in 2005 on a large energy input. AEON also introduced the same high-efficient former-factory site. It is drawing attention as an Eco Store “E Air-Conditioning System” to its Nagoya Dome Shopping situated at the heart of an urban area. This Eco Store, the first Center outlet that opened in the spring of 2006 (located in Proposing “E Air-Conditioning” of its kind introduced by the AEON Group, boasts various Higashi-ku, Nagoya City, this shopping center extends 220 environmental facilities such as wind power and photovoltaic meters in total length and houses as many as 180 shops). generators, a rainwater recycling system to reduce feed water We will continue to propose solutions to all the energy to Help BuildEco Stores consumption, and greenery around the exterior walls of the utilization challenges our customers face. We are committed to mall. This “green” shopping center also incorporates various working with our customers to prevent global warming. ideas and attempts to protect the environment. In a sense, it is Working as a Solution Provider a giant theater that provides the audience with real environmental experience. Comment by our staff in charge Proposing electrical air-conditioning Under the “E Air-Conditioning” system that is environmentally friendly project with AEON that We are working together with our Proposing optimal services meeting the eventually led to system and provides energy-saving benefits introduction, we were able to see customers to tackle global warming needs of individual customers the fruits of our effort in putting In line with its environmental concept, the shopping mall spent this system together, such as Report CSR Power Electric Chubu 2007 Prevention of global warming is an important management We are drawing on the technical capabilities and wide range of a lot of effort designing its air-conditioning system to maintain examining various technologies issue Chubu Electric Power is tackling. Accordingly, we experience of Chubu Electric Power and other group comfort in the large commercial complex. However, they and ideas to provide an energy consider it our mission as a corporate citizen to actively reduce companies to propose energy solutions. Each customer is solution meeting the customerﾕs faced a challenge in reducing environmental load while Masayuki Fujimoto needs. We feel AEON has carbon dioxide emissions. At the same time, we are also presented with an optimal energy service designed to meet keeping energy costs low. Chubu Electric Power addressed Solution Group acknowledged us as their collaborating with our customers toward conservation of the their specific needs, be it environmental compliance or cost Customer Service & Sales business partner. We will these needs and proposed an “E Air-Conditioning System” Department, Customer global environment. reduction. (air-conditioning system that runs on electricity), which Service Division continue to work toward consists of an inverter turbo refrigerating unit and other developing optimal solutions for our customers. components that together provide efficient cooling while saving energy and reducing carbon dioxide emissions through

8 9 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Management Goals Management Goals

Environmental Performance

Social Performance

At Chubu Electric Power, we publish Management Goals, an annual management plan that details the Management targets (for FY2010) current business environment and direction of management, as well as setting forth the challenges facing the Company and the specific measures that will be used to tackle them. The 2007 edition of Management Goals focuses on our objective as a business entity, which is to be a “total energy supplier.” To make sure we become the ideal group we envision, we have established a new set of management targets to be achieved by FY2010. For details, refer to the latest edition of Management Goals published on March 27, Electricity sales target 2007. HP > Corporate Profile > Business Plans

In the residential services business, we will convert a cumulative total of over 600,000 homes to The Mission of the Chubu Electric Power Group all-electric appliance operation by the end of fiscal year 2010. In the business and industrial segment, we will create 800 MW of demand by promoting the electrification of kitchens, air- conditioning systems, and so on, within the same time frame. Management As a total energy supplier, we are committed to delivering new value through energy products to and our customers and achieving sustained growth for our entire Group. Economy Targets for the gas, LNG, and distributed generation businesses

Four Pillars of Management Total sales of 45 billion yen in the gas, LNG, and distributed generation businesses by fiscal year 2010 Management and To achieve the Company’s mission, as defined above, we will undertake actions under the following four Economic Performancepillars.

1 Business Activities Aimed at Satisfying Customers Financial targets (Consolidated)

To achieve greater customer satisfaction, we will work to improve our services further and actively Achievement of the following targets through Group synergy propose solutions to meet the diverse needs of customers. We will integrate our business operations in the fields of electricity, gas, LNG and distributed energy to provide customers with new added value from energy products. Item Consolidated targets Target year

2 Continuous, Reliable Provision of Affordable Energy Ordinary income over 160 billion yen By considering such issues as energy security and protection of the global environment, we will work to build and operate efficient facilities in a systematic manner with a medium- to long-term perspective, Average of four years from such as building power generation facilities to achieve an optimal balance of power sources, in order to Return on assets (ROA) over 4.1% FY2007 to FY2010 produce a reliable supply of affordable energy.

3 Higher Corporate Value through Enhancement of Group Power Operating cash flow over 470 billion yen

We will strengthen affiliates through reorganization and reinforcement of business management and strategically utilize their management resources to enhance the comprehensive position of the Group. To Balance of interest- less than 2.6 trillion yen At the end of FY2010 this end, we will achieve the management targets for FY2010 without fail and provide greater enterprise bearing liabilities value as an integrated group of competitive energy service companies, so as to meet and exceed the expectations of shareholders and investors. Note: ROA = business profit (ordinary income + interest paid) / term-beginning and -end average total assets

4 Positive Actions to Fulfill Our Corporate Social Responsibility (CSR)

To ensure management based on complete compliance, we will actively strive to fulfill our corporate social responsibility (CSR) as a good corporate citizen. For example, we will work harder on issues affecting the global environment and reinforce the trust in which we are held by the community, with the aim of building a harmonious relationship with the community in which we operate.

10 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 11 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Management Goals Management Goals

Environmental Performance

Social Performance

Basic policy on utilizing cash flows from business operations Electric Power Supply Plan for FY2007

At Chubu Electric Power, we believe in utilizing the cash flow generated from operating activities in a To map our specific efforts to ensure reliable energy supply into the future as spelled out under our Four manner best serving the needs of stakeholders on the whole. We specify below the four areas where we Pillars of Management, we have developed an electric power supply plan for fiscal year 2007 with a focus will utilize our operating cash flow according to the guidelines illustrated in the chart. We will continue to on three key areas; namely, ensuring a reliable supply, driving further efficiency improvement to seek ideal ways to utilize cash flow by responding to the changing business environment. outperform the competition, and implementing active measures to help preserve the global environment.

Invest in improvements to maintain our power business and efficiently Sales plans provide a reliable supply of electricity FY2005 FY2006 FY05-FY16 FY2007 FY2008 FY2009 FY2010 FY2011 FY2016 annual We will utilize cash flow to fulfill our responsibility as a public utility company, thereby benefiting all (actual) (actual) increase rate stakeholders, including our customers. Power sales 1,306 1,327 0.9 1,350 1,358 1,369 1,379 1,390 1,442 (hundreds of GWh) （1,286） （1,327） （1.0） Provide stable dividends for shareholders 2,634 * 2,685 Maximum power 〈 〉 〈 〉 〈2,748〉 0.9 We will utilize cash flow to repay the support of our shareholders and investors. 2,556 2,606 2,680 2,698 2,716 2,733 2,818 (transmission end, tens of MW) 2,665 0.9 （2,557）* （2,625） （ ） Invest strategically toward business growth and development * Figures in brackets are for levels at the generation end. * Figures in parentheses are for levels after compensation for temperature. We will utilize cash flow to meet the expectations not only of our shareholders and investors, but also of our customers and the communities in which we operate. Major power facility stations (Unit: tens of MW)

(Specific examples: Investing in gas, LNG sales, distributed generation, overseas energy businesses, FY2007 FY2008-2011 FY2012-2016 FY2017 onward and other areas that will help us achieve sustainable growth.) Nuclear power Improve our financial strength Company We will utilize cash flow to provide greater assurance to our creditors, banks and other business Thermal Shin-Nagoya No.8 system: 145.8 Joetsu No.1 system: 119 (7/2012 - 1/2013) Joetsu No.2 system: 59.5/119 (FY2017) partners. This effectively means reducing costs, which, in turn, is in the interest of all our stakeholders. power (4-10/2008) Joetsu No. 2 system: 59.5/119 (7/2013)

facilities 1 location: 0.023 (FY2008) Hydropower 1 location: 0.036 (FY2012) Guidelines for distribution of operating cash flow (consolidated) for FY2007 through FY2010 (figures are estimates) 1 location: 0.021 (FY2011)

New 2 locations: 3.4 (2/2009) Operating cash flow Energy (wind power) 3 locations: 4.6 (FY2009) 1,900 billion yen oe rmother from Power Oma: 20.5/138.3 Tsuruga No.3: 61.52/153.8 (3/2016) companies Nuclear power Strategic utilization (3/2012) Tsuruga No.4: 61.52/153.8 (3/2017) 600 billion yen Kawakami: 0.12 Tokuyama*: 15.3 Hydropower (FY2009 onward) (FY2014) Provision of Investment in improvements to maintain power stable Strategic Improvement of financial 0 174.464 316.876 dividend for investment business and provide electricity reliably and strength, etc. Total 59.5 efficiently shareholders Total of FY2007 through FY2016 491.34 200 billion 150 billion450 billion yen yen yen 1,100 billion yen * Chubu Electric Power will generate power at its own facility at Tokuyama after the completion of the Tokuyama Dam (scheduled for the end of FY2007). Maximum power supply and demand plan (transmission end) Our concept of distributing retained earnings to shareholders FY2006 (actual) FY2007 FY2008 FY2009 FY2010 FY2011 FY2016 Maximum power 2,606 2,665 2,680 2,698 2,716 2,733 2,818 (tens of MW) (2,625）* As mentioned above, we set forth our new management and financial targets for fiscal year 2010 Supply capability 2,773 2,946 3,023 2,982 2,945 2,983 3,081 in Management Goals. In line with the new targets, we aim to maintain a payout ratio of 40% (tens of MW) based on net income in each fiscal period, in consideration of the past levels of dividend per Supply reserve capability 167 281 343 284 229 250 263 share and payout ratio. Even if our earnings deteriorate, we will work to maintain a dividend level (tens of MW) of 60 yen per annum, unless a significant deterioration in earnings has been brought about by an Supply reserve rate (%) 6.4 10.6 12.8 10.5 8.4 9.1 9.3 unexpected change in the business environment or similar cause. * Figures in parentheses are for levels after compensation for temperature.

12 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 13 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Corporate Governance Internal Controls Internal Controls

Environmental Performance

Social Performance

Revision of Management Structure Internal control*1 is a mechanism indispensable to any company in the implementation *1 Internal control: Internal of management strategies and pursuit of business purposes. In a way, internal control control is a process that is built within an organization is a prerequisite of proper risk management. and implemented as part of With the enactment of the Corporation Law in May 2006 and the passing of the its business operation, in Financial Instruments and Exchange Law*2 the following June, a basic legal structure order to achieve one of four and designated the offices of President & purposes: effective and Appointment of outside has been put in place to ensure proper business operations of companies. Director, Executive Vice Presidents, Senior efficient business directors and restructuring of operations, reliable financial Managing Executive Officers, Managing reporting, compliance of the executive officer system Executive Officers, and Executive Officers, and business activities, and Establishment of Internal Controls maintenance of assets. Putting fairness and transparency at the center of have the executive officers complete the management, Chubu Electric Power has been discharge of all duties relating to business *2 Financial Instruments and reforming its management structure since Exchange Law: Enacted in operations. June 2006, the Financial FY2005 through a reduction of the number of As a rule, in a situation where an executive of business operations, Chubu Electric Power has Instruments and Exchange directors, introduction of the executive officer officer serves in another position of particularly Law (the so-called “J-SOX Establishment of systems defined internal Group controls. We have set up a Law”) incorporates a system system, and so on. heavy responsibility such as General Manager, a ensuring proper business department to oversee relevant issues pertaining for the evaluation and audit In fiscal year 2007, we revised our management director is to serve in such dual positions, to to Group companies in order to adequately of internal controls relating operations of the Company to financial reporting, with structure to reinforce the supervisory function prevent discrepancy between management develop management strategies and policies the main purpose of while also building a more efficient system for decisions and actual business operations. applicable to the whole Group, and to effectively ensuring reliability of To set forth our basic stance on the establishment financial reporting by business execution. In fiscal year 2005, we established the Chubu manage the Group companies. Starting from of an internal control system, we passed a companies. With the Specifically, we appointed outside directors to Electric Advisory Board as an advisory body to fiscal year 2006, we have been conducting establishment of the law, resolution at the Board of Directors meeting in listed companies are now further drive our commitment to the separation of the President & Director. We are planning to internal audits of consolidated subsidiaries, while April 2006, to establish a set of systems for required to put in place decision-making and supervision on the one review the roles of the Advisory Board in line extending support to Group companies in their internal controls relating to ensuring proper business operations of the financial reporting. hand, from day-to-day operations on the other, with the revision of our management structure. efforts to establish and operate internal controls. *1 Corporate Governance: The Company, consisting of systems relating to and thereby enhance the fairness and Chubu Electric Power will continue to enhance As of the fiscal year design of the decision- business management, risk management, making system and transparency of our management. its corporate governance*1 in order to ensure the commencing April 1, 2008, compliance and auditing, among others. We are companies are required to organization, and creation We also revised the various titles for directors exercise of sound management and enjoy an even Internal controls on and operation of a system of striving to keep these systems functioning create an Internal Control checks, in order to ensure and streamlined the classifications to have only greater degree of trust among its stakeholders. financial reporting Report evaluating the results effectively so as to earn the trust and support of of their internal financial the appropriate and efficient representative directors and directors. management of the our stakeholders. reporting controls and corporation Furthermore, we set levels for executive officers submit the report to the authorities along with the Establishment of Chubu Electric Power is driving an initiative to company’s Securities risk management regulations establish internal controls on financial reporting Report. Internal control Illustration of management mechanism reports must have been in compliance with the Financial Instruments and In March 2007, we published our Risk audited by certified public Exchange Law, by establishing a review accountants. Before revision After revision Management Regulations to step up our risk committee for these controls chaired by the vice management system further. The regulations president. Board of Board of Board of BoardBoard of of define risks, specify the procedures and Directors Auditors Directors auditorsAuditors As preparation for the official implementation of Internal InternalInternal responsibilities relating to risk management, spell Chairman of Corporate Chairman of Corporateauditors the controls in April 2008, we ran a pilot project the Board of Directors Auditors the Board of Directors Auditors out the risk management system, and also Outside from October through December 2006. This Externally Externallyauditors reconfirm the rules and other specific Appointed Appointed project was aimed at establishing an President & Director Corporate President & Director Corporate requirements regarding risk assessment and Representative Auditors Representative Auditors Directors Directors infrastructure within which we can smoothly Executive Vice Executive Vice analysis to be applied to individual measures. Presidents & Directors Presidents implement internal controls on financial Directors Using the Risk Management Regulations as a Senior Managing from Management Directors & Directors Outside reporting (the so-called “documentation phase”). Executive Officers Executive Officers the Company guide, we will work to achieve continuous and Directors We are expanding the project to all Company Directors & stable growth of our business through more Executive Officers departments after incorporating revisions and Managing Executive proper risk management. Officers improvements reflecting the results of the trial run. Executive Officers Executive Officers Group initiatives Operations Operations Executed Executed As part of initiatives to ensure the proper conduct

14 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 15 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Ensuring Safety and Security Ensuring Safety and Security

Environmental Performance

Social Performance

At Chubu Electric Power, we consider it our responsibility to continuously provide how to safeguard evidence (evidential customers with a reliable, safe and affordable supply of energy well into the future. To documents). fulfill this responsibility, we must build and operate power facilities systematically. The implementation status of the quality system Chubu Electric Power is working to build, maintain and smoothly operate safe facilities with the public’s understanding and cooperation. is regularly checked by internal audits to make We are also striving to provide value-adding services by exercising utmost care to sure the system undergoes continuous ensure quality. improvement. Our Electrical and Telecommunications Engineering Department also introduced a Ensuring and Reliable and Safe Supply of Power quality management system (E-QIC*1) in 2005 *1 E-QIC: An abbreviation for “Electrical and with the aim of ensuring continuous Telecommunications improvement of general maintenance operations. Engineering Dept.,” “Quality,” “Improvement” and They are carrying out improvement activities by Ensuring stable fuel procurement “Continuity.” employing the PDCA*2 cycle. and improving fuel infrastructure 2 Reliable supply We will continue to deliver electricity to the * PDCA: A quality control In the area of fuel procurement, an essential technique whereby the cycle satisfaction of our customers. consisting of Plan, Do, component of electricity supply, we are Check and Act is repeated Efforts to ensure implementing a range of measures designed to Employees inspect a pressure iron pipe at a to improve the control level. an optimal mix of power sources ensure stability, increase operational economy hydropower station. and allow flexibility in the face of changing In order to ensure that our customers continue to demand. Of particular concern to us is LNG, Delivering a reliable enjoy reliable, uninterrupted access to excellent because electricity generated at LNG thermal supply of electricity energy services well into the future, we must power stations accounts for a substantial Each of our power generation departments has develop our power facilities further. It is also percentage of our total electricity productions. As vital to secure an optimum power mix, put in place or introduced a quality system in such, we are working to ensure stable thoroughly comparing and contrasting a wide conformance with legal requirements or under a procurement of LNG, keep costs low, and range of options, including purchasing power voluntary initiative. All activities relating to improve flexibility, among other matters. We are through bilateral contracts and from the quality assurance are documented in manuals that also working steadily to improve our fuel-related wholesale electric-power market, while clearly specify the procedures for creation, infrastructure, such as reinforcing the piers at Engineers assemble a turbine at Hamaoka Nuclear considering such aspects as efficiency, energy Power Station. LNG receiving stations, adding storage tanks, correction, verification, approval, storage and security, and environmental preservation. and building gas pipelines crossing the Gulf of other tasks relating to quality records, as well as To this end, we will develop power sources for Ise. approximately 5 gigawatts, including power purchased from other companies, over the next Building flawless power transmission and distribution equipment 10 years, from fiscal year 2007 through fiscal year 2016. In the area of power transmission and distribution, we will systematically build Initiatives by Our Group Companies Active commitment to equipment to ensure stable supply, by nuclear power introducing new technologies and advanced Nuclear power is an excellent source of safety equipment to improve efficiency further. Chita LNG Receives METI Award for electricity as it can effectively address the needs As our facilities – which were constructed in the Dedication to Safety of High Pressure Gas for energy security and conservation of the global 1960s during Japan’s high economic growth environment. We will continue to carry out period – continue to age, we will drive forward Chita LNG Co., Ltd. receives LNG (liquefied natural gas) shipped from inspections, repairs and other tasks as deemed the refurbishment of power transmission and overseas on tankers, stores LNG in tanks, converts it to gas, and transports distribution equipment over the medium-to-long the converted gas to power stations. necessary to promote the utilization of nuclear As a company tasked with the achievement of the Chubu Electric Power power while always giving top priority to safety. term, following a well thought-out plan to make Group’s commitment to stable supply of electricity, Chita LNG has been We will also direct all possible internal resources sure our facilities continue to operate reliably. expending maximum efforts to improve its management efficiency, giving We will also implement the necessary top priority to safe, stable operation. As a result of this ongoing dedication, to ensuring smooth development of new nuclear Chita LNG has been able to avoid accidents and disasters since its power stations, so as to increase the percentage engineering work by involving Group establishment in 1983. This excellent record was recognized in FY2006, of our power generated from nuclear energy, companies. The technical expertise of Group when the Chita LNG station received an award from the Ministry of the companies will be combined to install and Economy, Trade and Industry at the annual conference of the High Pressure thereby achieving an optimal composition of Gas Safety Institute of Japan, for its status as an excellent facility with a power sources. refurbish equipment effectively. superior track record in the safe handling of high-pressure gas. LOOK! P. 22 – 25 HP > Corporate Profile > Business Plans

16 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 17 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Ensuring Safety and Security Ensuring Safety and Security

Environmental Performance

Social Performance

Safe facility configuration and operation Disaster management system Measures for early recovery for prompt resumption Our group owns a helicopter that can be used to of supply gather information, as well as to transport To make sure our customers can use our power with complete peace of mind, we are materials, equipment and personnel. working to achieve a highly disaster-resistant facility configuration for the entire energy We have also established various communication supply process culminating in the daily delivery of electricity. We have also established Disaster management system networks including those utilizing wireless a system to minimize the spreading of damage should a natural disaster strike, as well communication, optical fiber cables and satellite as a system for prompt resumption of supply in such an event. Our service area is at If a disaster strikes or is anticipated to strike communication, to make sure the emergency risk of the occurrence of major earthquakes anticipated to strike in the Tokai region, and the Pacific coasts of the Kii Peninsula and Shikoku. We are making efforts to shortly, an emergency will be declared taskforces at different locations can communicate reinforce our disaster prevention measures with a focus on earthquakes. immediately and an emergency taskforce will be smoothly. set up at each business location. Once an To aid in the supply of emergency power to emergency is declared, the pre-appointed hospitals, shelters and other vital facilities in the transmission lines connecting them in loops. taskforce members will immediately report to event of a disaster, we also maintain special Even if disasters or other emergencies put some work, even in the middle of the night or on a vehicles, such as power generation vehicles and Disaster-resistant power transmission lines out of service, power can be holiday, and work with dedication on their mobile transformers, at each business location. facility configuration swiftly transmitted to customers by other assigned duties to achieve a swift resumption of connecting routes. Our power systems also supply. Conducting simulated interconnect with the adjoining power systems of If the “Tokai Earthquake Watch” or “Tokai disaster drills Earthquake-proofing of other electric power companies. These Earthquake Warning” is issued, we will issue a So that each employee can act promptly and power facilities interconnected networks mean that even when company-wide earthquake warning and set up the accurately should a disaster strike, we regularly We are taking steps to make our power facilities the power grid of one company sustains damage Earthquake Disaster Management Headquarters. conduct disaster drills and facility recovery drills earthquake-resistant by considering all the in the event of a disaster, other companies can We will closely communicate with national, local to train our employees under simulated disaster characteristics and aspects of each facility. Our supply electricity to prevent a power shortage. and public organizations, as well as other private scenarios. particular focus is on the Hamaoka Nuclear organizations, to collaborate in the case of a Power Station, where the buildings housing Multiplexing of power facilities disaster. nuclear reactors are built directly on rock bed, many thick walls are arranged at regular Generally, our transmission lines are composed intervals, and the center of gravity of each of at least two cables, and substations are Putting our Customers’ Minds at Ease facility is lowered. As a result of these design installed with two or more transformers. In this measures, the Hamaoka Station boasts a very way, our facilities are multiplexed for immediate stable structure that can withstand earthquakes of supply of power through reliable alternative Emergency information on the company the severest levels that are anticipated to hit the facilities if the usual ones are out of service due website region. There is also a failsafe system that will to disasters. We try to provide blackout information rapidly through automatically stop the nuclear reactors should a the mass media and other means of communication. significant tremor be detected. 24-hour monitoring system We post blackout information emergency notices on our web page when a large-scale typhoon or other LOOK! P. 24 Under a system of round-the-clock monitoring, disaster causes a wide-ranging blackout. our Central Load Dispatching Center and Load Dispatching Control Center adjust generated Electricity Safety Handbook We have created an Electricity Safety Handbook in System to minimize the output to correspond with power use by order to help our customers use electricity safely. spread of damage customers, which is constantly changing. They The handbook outlines what to do in the case of a also monitor and control the flow of electricity power outage or disaster, ways to use electrical delivered to customers through transmission lines devices safely and efficiently in our day-to-day lives, Electricity Safety Handbook Networking of power systems and substations. In the event of disasters, they and more. We are distributing the handbook to HP > Learn More about Electricity make a smooth switchover of transmission general customers at our offices and stations. Power systems in our service areas form a web- systems to keep the scope and duration of like network consisting of the transmission lines outages to the minimum. leading away from power stations and other

18 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 19 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Problems at Power Stations and Corrective Action Compliance Compliance

Environmental Performance

Social Performance Ensuring Compliance*1 Thoroughgoing inspections by Countermeasures prevent Compliance Promotion System the “Assessment/Inspection Chubu Electric Power Declaration of Compliance Committee” recurrence Without compliance, there cannot be trust. In January 2007, Chubu Electric Power established the All of the events that were identified had resulted Without trust, there cannot be growth. HP > Compliance Committee Assessment/Inspection Committee which is chaired by partially from organizational factors (such as the the Executive Vice President (General Manager for business culture and customs of the organization), and Building a stronger compliance designed to enlighten and educate employees. Power Generation). It is tasked with the inspection of we recognize that we have not done enough to build an system by reflecting the inspectionSpecifically, we distribute a booklet documenting power generation facilities in order to assess and inspect open environment. results on power stations sample situations where compliance action is the operations of our nuclear, thermal and hydropower Based on the results of cause analysis, we examined a needed, provide training for compliance leaders stations to confirm that all necessary procedures are in set of company-wide recurrence prevention measures Chubu Electric Power recognizes that the as well as training programs specific to each class place and that falsification of data and other problems (action plan) to address the issues by raising the establishment of compliance is essential for of employees and each place of business. Our (hereinafter referred to as “unacceptable acts”) are awareness of individuals and improving the winning the trust of our customers and local goal is to raise the awareness of our employees absent in accordance with the instruction from the organizational culture and characteristics. A preliminary communities. For this reason, we are expending and encourage them to practice a compliance Ministry of Economy, Trade and Industry (Nuclear and draft was presented to the Nuclear and Industrial Safety efforts under the leadership of the Compliance culture. Industrial Safety Agency). Under the leadership of the Agency and published on April 6, 2007, and a more Committee, we are carrying out inspections under strict Committee (established in December 2002) specific action plan was presented to the Agency and Ensuring compliance in the guidelines. chaired by the President. The Compliance published on May 21. To identify all unacceptable acts, we surveyed Committee is functioning effectively as a Chubu Electric Power Group These measures are classified under the following three approximately 13,000 employees, former employees verification system to prevent the occurrence of pillars: and relevant personnel at affiliates, contractors and unacceptable acts. In April 2003, we established the Chubu Electric other business partners over different periods and on • Create an entrenched awareness of compliance However, the unacceptable acts identified Power Group Compliance Council to promote 1 wide-ranging topics. We also inspected various (Raising the awareness of individuals) through the latest inspections of our power compliance among Group companies. Under the * Compliance: To comply with the law, • Establish an environment for open communication internal rules and corporate ethics measuring equipment, computers and other devices and stations work against our aspiration to become a leadership of the Council, all companies of the (Improving the organizational culture) standards. verified their records against original data. Past • Put in place a system to prevent unacceptable acts trusted company. We take these unexpected Chubu Electric Power Group are building a engineering work was also examined to determine if the from being performed outcomes seriously and are committed to compliance system and enlightening their necessary reports and notifications were filed according (Improving the organizational characteristics) building a stronger compliance system. employees. We support the efforts of Group to the applicable law. We honestly acknowledge the fact that these In order to entrench the importance of companies by sending instructors to organize The results of these inspections found that, although unacceptable acts occurred, and there were reasons why compliance in the minds of our employees, we seminars. In November 2006, the Group adopted there is no evidence of compromised security, a total of they occurred. Learning from the mistakes, we will will keep them up to date with messages from top a joint statement to confirm the commitment of 40 unacceptable acts occurred, and these events implement sweeping recurrence prevention measures management as well as through educational each company to drive compliance efforts temporarily put the soundness of our facilities at risk. and strive for continuous improvement. programs on compliance in each business independently while also cooperating with other These results were reported to the Nuclear and HP > Press Releases (April 6, 2007 and May 21, 2007) department. We will also continue to drive a Group companies toward further enhancement of Industrial Safety Agency on March 30, 2007 and grassroots initiative to propose ideas and compliance in the Group as a whole. announced to the public. Implementation and evaluation of solutions that began in fiscal year 2006, and HP > Press Releases (March 30, 2007) recurrence prevention measures promote the use of whistleblower hotlines to Establishment of hotlines make sure the voices of employees in the field Cause analysis of Related departments will share information in the are heard. unacceptable acts implementation of recurrence prevention measures, We established a whistleblower hotline in where the measures are implemented in certain Chubu Electric Power’s December 2002 as a point of contact on As a result of analyzing the causes and backgrounds of departments first and then expanded to the remaining compliance system compliance issues for employees seeking these acts, we have learned that the problems were consultation and reporting problems. In April caused not only by misinterpretation or insufficient departments. The status of implementation and Under the Compliance Committee, we have built 2004, a joint hotline was set up as a central understanding of the law, but also due to our workplace entrenchment of such preventive measures will be a corporate compliance system to expand contact point for all companies in the Chubu culture that prevented employees from reporting their evaluated on a regular basis and the results will be autonomous activities at each department and Electric Power Group. These hotlines ensure mistakes honestly or speaking up in front of their utilized to make improvements. We will also conduct place of business. We have also instituted the anonymity of callers while making sure proper superior or supervising function even when they felt audits through the Internal Audit Office and take something was wrong. appropriate actions to correct any problems we may Chubu Electric Power Declaration of Compliance actions will be taken in response to reported find. and Eight Action Guidelines to propel problems. With the enactment of the management based on strict compliance. We are Whistleblower Protection Act (April 2006), we also conducting a broad range of programs have expanded the scope of hotlines to cover temporary workers and business partners as well.

20 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 21 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Commitment to Nuclear Commitment to Nuclear Power Generation Power Generation

Environmental Performance

Social Performance

Active Commitment to Nuclear Power — Our Stance in the 12th stage and install a “pressure plate*5” commencement of assembly and operation of the instead, as an interim measure until a new turbine low-pressure turbine, and the low-pressure is ready. turbine resumed its service operation on March Nuclear power is an excellent source of electricity tolerance of Hamaoka Nuclear Power Station We submitted a work plan for the installation of 13, 2007. the pressure plate to the government and received Going forward, we will work with the as it can effectively address the needs for energy with the aim of making the facility more resistant *5 Pressure plate: A plate (disk) security and conservation of the global to earthquakes. We will continue to carry out a confirmation that no safety problem was manufacturer and other related parties toward a that does not turn. It has the anticipated. speedy resumption of full-scale operation. By effect of lowering the environment. The Nuclear Power Nation Plan inspections, repairs and other tasks as deemed pressure to the level established in August 2006 spells out the necessary to promote the utilization of nuclear taking this problem as a valuable lesson, we will achieved when the blades government’s policy to promote the development power while always giving top priority to safety. Resumption of improve our design control system and take other were present, and thereby rectifying the flow of steam. and utilization of nuclear power as a key national To achieve an optimal electricity supply mix, we service operation actions to prevent the same problem from measure. will strive to develop nuclear power occurring again. To Chubu Electric Power, providing energy independently so as to increase the percentage of Thereafter, we received inspections by the security for local residents, as well as putting our power derived from nuclear energy. government-appointed inspectors prior to the their minds at ease, are of the utmost importance. Key events and activities that occurred at

As such, we are voluntarily carrying out Hamaoka Nuclear Power Station in FY2006 are Figure 1 Damage Sustained by Low-pressure Turbine engineering works to improve the seismic reported below.

Actions Taken Following the Low-pressure Turbine Failure at Hamaoka Unit 5

Impeller missing one blade Low-pressure turbine without cover (B) vibrations balanced out with each other, Installation of the pressure plate

1 consequently causing cracks to generate due to * Low-pressure turbine: A Overview of problem turbine located after a high- “high-cycle fatigue*4.” Figure 2 Mechanism of Power Generation by Hamaoka Nuclear Power Station Unit 5 pressure turbine that turns The knowledge available during the design stage blades with the force of high- temperature, high-pressure On June 15, 2006, Hamaoka Nuclear Power did not allow us to anticipate that random steam. A low-pressure Station Unit 5 experienced an automatic vibration would affect blades up to the 12th turbine is designed to rotate shutdown of a turbine, upon which the nuclear efficiently even at a stage, and therefore the effect of coupling with weakened level of steam reactor stopped automatically. This problem did flashback vibration was not predicted. In other force after steam has been not cause radiation exposure outside the station. used in the preceding words, verification at the design stage was turbine. (Fig. 2) Subsequent investigations and inspections found insufficient. breakages and cracks in many of the blades in the *2 Random vibration: Irregular This event is caused by a design defect of a 1 vibration caused by 12th stage of the low-pressure turbine* turbine of Unit 5. Based on the past operation disturbance of the flow of comprising Unit 5 (Figures 1 and 2). No records, we have confirmed that similar problems steam inside the turbine in a low-output condition, etc. abnormality was found on blades in other stages. will not occur with turbines of Unit 1 to 4.

*3 Flashback vibration: Vibration that occurs when Investigation results steam flows back into the Countermeasures turbine at high speed in the event that the turbine stops suddenly during testing, etc. Detailed investigations concluded that the blades The blades in the 12th stage will be replaced with in the 12th stage of the low-pressure turbine *4 High-cycle fatigue: A newly designed and fabricated blades. The phenomenon where metal repeatedly endured strong impacts during the test turbine shaft will also be produced anew. material cracks after conducted prior to the start operation. It is likely However, the design and production of new repeatedly receiving a certain that these repeated impacts resulted in cracks. 8 8 level of force, and the blades and shaft will likely take some time, 10 9 8 910 10 9 8 910 1211 1112 1211 1112 2 13 13 14 14 13 13 14 generated cracks progress It is assumed that “random vibration* ” and considering the periods needed for verification 14 and eventually cause “flashback vibration*3” occurred simultaneously equipment failure. and testing, among others. and the forces generated by the respective For this reason, we decided to remove the blades

22 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 23 Management and Economic Performance Management and Economic Performance

Management and Economic Performance Commitment to Nuclear Power Generation Commitment to Nuclear Power Generation

Environmental Performance

Social Performance

Seismic safety of the Hamaoka Nuclear Power Station MOX Fuel Plan at Hamaoka Nuclear Power Station

*1 New seismic resistance Hamaoka Nuclear Power Station is located on units of Hamaoka Nuclear Power Station are guidelines: Seismic safety of The need for MOX fuel Progress of the plan *1 Pluthermal: “Pluthermal” is a nuclear power stations is rock bed and ensures resistance to earthquakes undergoing evaluation for seismic safety under Japanese word which checked according to the guidelines for seismic design characterized by seismic motion with the the new seismic resistance guidelines. combines two English words, Japan is an energy-poor country, and at the same In March 2006, we submitted to the government “plutonium” and “thermal”. It evaluation of nuclear power maximum acceleration of 600 gals. This level of Evaluations of Unit 4 were completed in January reactor facilities (seismic time a major consumer of energy. In order for a request for permission to alter a nuclear reactor refers to the utilization of resistance guidelines) set earthquake resistance was confirmed by national 2007, and those of Unit 3 were completed in plutonium fuel in commercial forth by the national Nuclear Japan to ensure a reliable source of energy in the installation, in connection with our plans for a (thermal) nuclear power Safety Commission. The new safety reviews in which a number of academics February. The required level of seismic safety plants. In English, the fuel is seismic resistance guidelines future while curbing global warming, it is an MOX fuel reactor at the Hamaoka Nuclear Power commonly referred to as were published in September and experts participated. The station is also was confirmed with both units, and the results 2006 with the aim of revising absolute necessity to promote the use of nuclear Station Unit 4. Thereafter, we received the plutonium uranium mixed the old guidelines to capable of withstanding, with a large safety were reported to the government. While the oxide fuel, or MOX fuel. MOX incorporate the latest power generation that does not produce carbon preliminary review*2 by the Ministry of fuel is reprocessing spent information and further margin, the Tokai earthquake predicted by the government is still confirming the results, we are plutonium fuel generated by improve the reliability of dioxide emissions, and also establish a nuclear Economy, Trade and Industry (Nuclear and Central Disaster Prevention Council. proceeding with the evaluations of the remaining a nuclear power station, seismic safety at nuclear fuel cycle by carrying out a MOX fuel Industrial Safety Agency), followed by the which is recovered and then power stations. (The new mixed with uranium to create guidelines do not refute the units. Evaluation of seismic safety under (pluthermal) program. secondary review by the national Nuclear Safety MOX fuel that can be used in validity of the old seismic These evaluations were conducted in response to resistance guidelines.) the New Seismic Resistance Guidelines*1 MOX fuel, called “pluthermal*1” in Japan, is a Commission and the Atomic Energy Commission a thermal reactor (light water a government order as part of its effort to further reactor used by current *2 Seismic tolerance: A safety system whereby a nuclear power station reuses of Japan. In July 2007, we finally received nuclear power stations). margin for earthquake With the revision in September 2006, of the improve the safety of nuclear power stations. resistance measured for a plutonium that has been isolated by reprocessing permission from the Minister for Economy, *2 Preliminary review (safety facility against the level of national guidelines to assess the earthquake- review): An electric power earthquakes anticipated in Construction work for increased the spent uranium fuel. The use of plutonium Trade and Industry. We will continue to make the applicable region. resistant design of nuclear power stations, all company wanting to change seismic tolerance*2 uranium mixed oxide fuel, or MOX fuel, is a key preparations toward use of MOX fuel*3. a key safety facility at its component of Japan's national policy for nuclear power station must Prior to the revision of the national seismic apply for and receive the utilization of nuclear power because it allows for With community awareness government’s permission to Example of construction work for increased seismic tolerance resistance guidelines, a review was conducted change a nuclear reactor effective utilization of uranium resources. It is to installation. When an electric from July 2001 to examine the proposed be introduced in electric power companies all The intention of Chubu Electric Power when power company files a revisions to the guidelines. By taking this request alter a nuclear over Japan. implementing the “pluthermal” plan is to first reactor installation, the opportunity, we voluntarily conducted government will review the Chubu Electric Power is also planning to and foremost create awareness and understanding request to determine if construction work to improve the seismic commence a MOX fuel project starting from among the community. In line with this idea, we sufficient disaster prevention tolerance of Hamaoka Nuclear Power Station. measures have been taken. fiscal year 2010 at Hamaoka Nuclear Power will maintain a dialog with local residents to give These reviews are called This project was initiated to show to the “safety examinations,” and Station Unit 4 (rated electricity output: 1.137 them a fuller understanding of our MOX fuel community that, as a company operating a power consist of preliminary and GW). plans, providing a toll-free number we introduced secondary reviews. station in the Tokai region where a large before filing the request to alter the nuclear *3 MOX fuel: An abbreviation earthquake is anticipated, ensuring the safety of reactor installation. We will report on the for “Mixed Oxide Fuel” local residents is our top priority. created by mixing uranium HP > Nuclear Power Generation progress of the plan on a regular basis. and plutonium in oxide state. To be specific, we set a target seismic activity > Nuclear Fuel Cycle and MOX fuel stronger than the reference level, and made necessary improvements so that the station will Key events until use of MOX fuel withstand this higher level of seismic activity. The construction work is scheduled to be In the preliminary review, the completed in the second half of fiscal year 2010 Ministry of Economy, Trade and

Industry (Nuclear and Industrial

for Units 1 and 2, and in the second half of fiscal ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ Safety Agency) examines if year 2007 for Units 3, 4 and 5. sufficient disaster prevention measures have been taken. In HP > Nuclear Power Generation the subsequent secondary > Earthquake Measures at Power Stations examination, the Atomic Energy Commission of Japan confirms that nuclear energy will be used for peaceful purposes, while the Nuclear Safety Commission double-checks on safety, etc. The two-step review process ensures thorough assessment.

24 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 25 Environmental Performance Environmental Performance

Management and Economic Chubu Electric Power Group Environmental Declaration System for Protecting the Global Environment Performance

Environmental Performance Environmental Declaration/ System for Protecting

Social Performance

Promotion of Environmental Measures Chubu Electric Power Group Environmental Management Support Council Environmental Declaration To achieve sustainable growth, it is important for The Council, chaired by the General Manager of every company to eliminate or minimize any the Plant Siting and Environmental Affairs Environmental Philosophy negative environmental impacts resulting from Division, was instituted in April 1990. It engages 34th Environmental Measures We will conduct ourselves responsibly and in good faith their economic activities. in discussion and coordination of basic policies, Support Council as members of the energy industry, At Chubu Electric Power, we consider it our action targets and specific measures related to mission to ensure a stable and affordable supply preservation of the environment. and strive to protect the global environment of energy and to consider environmental throughthrough local,local, regional,regional, andand internationalinternational cooperation.cooperation. preservation in our business activities. For Chubu Chubu Electric Power Electric Power, “Environmental Management” Environmental Forum Environmental Vision means accomplishing this mission without fail. Environment We will promote global environmental conservation and contribute to the development To consistently carry out our environmental The Forum was established in 1993 with the aim of local communities capable of sustainable growth. management activities, we collaborate with of raising the level of environmental 28th CEP Environmental Forum Transforming ourselves into a corporate group Group companies and have in place a cross- management. Through it, external experts deliver that enables each member to share in the environmental culture functional system so that all departments and their views on our environmental measures Environmental branches can work together under the leadership directly to our president. of the President. Performance Guideline 2 LOOK! P. 57 We will reduce Guideline 1 our environmental load. We will use resources effectively. • We will proactively reduce emissions of Chubu Electric Power Group • We will work toward the development CO2 and other greenhouse gases. Environmental Measures and practical application of renewable energy. • We will aim for zero emissions and creation • We will promote the efficient use of energy. of a society dedicated to recycling. Committee 13th CEP Group Environmental Measures Committee

Environmental load We instituted the Committee in April 2001, for the purpose of increasing group cohesion and reinforcing environmental measures among the Offering a wide variety of energy-related products and services members of the Group. Chubu Natural resources Electric Power Society Environment LOOK! P. 50 Group

Cooperation Global Environmental Measures Support System

Guideline 4 We will promote Guideline 3 environment-related communication We will improve our level of and enhance cooperation with environmental management. the community on • We will clearly recognize a local and global level. the environmental impact of our operations • We will improve interactive communication and undertake thorough related to the environment and energy. environmentally conscious administration. • We will cooperate with people • We will cultivate personnel capable of in a wide range of fields independently taking action on outside the conventional framework. environmental concerns.

26 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 27 Environmental Performance Environmental Performance

Management and Economic Action Plan: Guideline 1-2 Performance

Environmental Performance Action Plan

■ Self-evaluation √: Maintenance Social Performance Level 5: Level 4: Level 3: Level 2: Level 1: Management Goals (attainment of (attainment of (attainment of goal (goal not yet (need for >: Example of Actual long-term goal) medium-term goal) for the fiscal year) attained) improvement) Approaches Guideline Long-Term Goals (up to FY2013) Mid-Term Goals (up to FY2008) Self- See Transforming into a Company Promoting Results for FY2006 Future Initiatives Action Objectives Details that Promotes Environmentalism in Chubu evaluation page Environmentalism Electric Power

We will use resources effectively. Developing and introducing wind-power generation, Complying with provisions in the Law on Special Measures for the Utilization of New Gained an additional 520 GWh through increased purchase of biomass co-firing in coal-fired power stations and small- surplus wind power and other sources Energy, etc. (RPS Law) hydroelectric power stations for commercial use, while (wind, solar, biomass, small-hydroelectric: developed in-house (Target: 16 TWh across Japan by FY2014 (of which Chubu Electric Power will ensuring economic efficiency and a stable supply of and purchased) electricity. Implementation and Development of provide an estimated 2.3 TWh*1)) Studied development/introduction of in-house wind power plant In-house wind 34 MW from 2 sites in FY2008 P. 34 Renewable Energy. > Increasing in-house wind power and small-hydropower generation output, implementing a Developed a biomass co-firing plan for a coal-fired thermal power power generation: 46 MW from 3 sites in FY2009 system to generate power from untapped energy sources (biomass, etc.) station Continuously purchasing surplus power and promoting the use of renewable energy Capacity utilization rate of 49.2% due to a facility shutdown of Maximizing the safe usage of nuclear power generation facilities (85% utilization rate) Further increasing the utilization rate of nuclear power Promoting Nuclear Power Hamaoka Nuclear Power Station Unit 5 caused by damaged low- generation facilities, while giving top priority to safety and promoting safe nuclear fuel recycling pressure turbine blades, and long-term shutdown of Units 1 and 2. P. 36 Generation*2 Promoting nuclear fuel recycling, in line with Japanese > Implementing a plutonium thermal system (by FY2010) (69.9% for all 55 nuclear power station units in FY2005) national policy Efficient Achieving Japan’s highest level of efficiency through continuous improvement (overall Achieved gross thermal efficiency of 45.07% through efficient Preferentially operating highly efficient power stations, and Improving thermal efficiency utilization, despite the shutdown of Hamaoka Nuclear Power Use of thermal efficiency of at least 45.8%) reducing in-station energy use. P. 36 of thermal power plants Station Unit 5 and increased power demand. Promoting development of Shin-Nagoya Group No.8 (FY2008), Energy > Reducing electricity usage inside our power station, setting up world-class facilities (43.1% for all 10 power companies in FY2003) and Joetsu Group No.1 (FY2012) and 2-1 (FY2013). Reducing power transmission Reduced to 4.51% through efficient operation of power √ Maintaining a power transmission/distribution loss rate of less than 5% distribution facilities Continuously maintaining high standards P. 37 and distribution loss (5.1% for all 10 power companies in FY2005)

We will reduce our environmental load. Improving the capacity utilization rate of nuclear power stations by giving top priority to safety Improving gross thermal efficiency by developing a high- Increased base unit by 3.6% over FY1990 levels, to 0.481 efficiency LNG thermal generator Reducing CO2 Reducing the average energy intensity by 20% for the period from FY2008 to FY2012 P. 38 kg-CO2/kWh, partly due to the shutdown of Hamaoka Power Promoting renewable energy generation, including the Proactive reduction 3 (below FY1990 level) Emissions* Station Unit 5 and increased sales volume of electricity. development of in-house wind power generators of CO2 and other Procuring credits through use of Kyoto mechanisms greenhouse gas Achieved 99.3% at dismantlement and 99.6% at inspection Improving SF6 Gas √ Maintaining a High Recovery Rate (over 99% at dismantlement, over 97% at emissions through introduction of collection system and improved Continuously maintaining high standards inspection) P. 39 Recovery Rate management technologies Maintained the ratio of external landfill wastes at less than 1%, Attainment of Zero Reducing external landfill waste by although the absolute landfill volume increased by 3,000 tons Promote the 3 Rs*5 further to reduce external landfill Promoting activities aimed at P. 41 Emissions*4 and a decreasing waste, and increasing over the previous fiscal year’s level to 11,000 tons wastes, while considering economic efficiency achieving zero emissions Sustainable Society recycling and reuse Expanded sales channels for Circulash to the agricultural Expand sales channels for Circulash P. 42 market, and received orders for environmental test kits. 0.05 g/kWh Reducing SOx √ 3 Maintaining the highest standards in the world (0.7 to 3.9 g/kWh in Europe and U.S. in 2002; 0.2 g/kWh in Continuously maintaining high standards P. 43 Emissions* Japan in FY2005) Encouragement of environmental Reducing NOx 0.09 g/kWh conservation √ Maintaining the highest standards in the world (0.6 to 2.0 g/kWh in Europe and U.S. in 2002; 0.3 g/kWh in Continuously maintaining high standards P. 43 Emissions*3 measures at power Japan in FY2005) stations Reducing the Less than 0.001 millisievert/year through appropriate public’s effective √ Maintaining a level below 0.001 millisievert/year management of radioactive materials Continuous and rigorous control P. 44 radiation exposure (in the vicinity of Hamaoka Nuclear Power Station) Thorough Promoting comprehensive treatment Treated all insulating oils with low levels of PCBs Ensuring treatment of insulating oils with low levels of Supporting PCB of pole-mounted transformers Constructed facilities to treat pole-mounted transformer PCBs, construction of facilities to treat pole-mounted Management of Treatment of all devices containing PCBs containers and parts transformer containers and parts, treatment of affected P. 45 Chemical Treatment containing low concentrations of Began treating equipment with high levels of PCBs, but containers/parts and treatment of equipment with high Substances PCBs encountered some delays due to facility problems levels of PCBs Actively promoting conservation Constructed facilities that harmonize with the scenery, such as Encouraging nature activities in our service territory Shin-Nagoya Group Unit 8, etc. Continuously promoting the construction of facilities that Sponsoring conservation activities related Properly maintained and managed the community partnership harmonize with nature and the scenery P. 46 conservation to our domestic and international business > Eco Park (environmental preservation Expansion of facility adjacent to Hekinan Power facility near Hekinan Power Plant Continuously implementing forest-conservation activities, > Planting trees at deserted coal mine P. 54 environmentally- activities Station), forests owned by Chubu Trained “Chuden Foresters,” or forest volunteers working mainly with focus on the Uchigatani Forest Electric Power in Uchigatani Forest, and organized programs to let people friendly activities experience the wonderful natural world of forests Supporting tree Gave away 18,770 saplings (cumulative total of 317,000 since Continually support development of greenery-rich √ Giving away 16,000 saplings per year P. 46 planting 1985) communities.

*1 Estimated from the power supply/demand projections and supply plans released by the Japan Electric Power Survey Committee. *4 Reducing volume of waste sent to external landfills, including waste from contractors (waste generated due to work ordered by us) to less than 1% of entire *2 Facility utilization rates vary every year depending on whether or not a periodical inspection is held. In order to eliminate this variance, the rate is calculated over volume of waste. an extended period of time (averaging over 5 years). *5 The 3 Rs of waste; Reduce, Reuse, and Recycle *3 The CO2 emission base unit is calculated per electricity consumed, while SOx and NOx emission base units are calculated per electricity generated.

28 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 29 Environmental Performance Environmental Performance

Management and Economic Action Plan: Guideline 3-4 Performance

Environmental Performance Action Plan

■ Self-evaluation √: Maintenance Social Performance Level 5: Level 4: Level 3: Level 2: Level 1: Management Goals (attainment of (attainment of (attainment of goal (goal not yet (need for >: Example of Actual long-term goal) medium-term goal) for the fiscal year) attained) improvement) Approaches Guideline Long-Term Goals (up to FY2013) Mid-Term Goals (up to FY2008) Transforming into a Company Promoting Self- See Results for FY2006 Future Initiatives Action Objectives Details that Promotes Environmentalism in Chubu evaluation page Environmentalism Electric Power

We will improve our level of environmental management.

Achieving a 100% EMS Implementation Achieved 97% EMS introduction rate throughout the Company 6 (supported establishment of EMS in offices and plants not yet Achieving 100% EMS introduction rate within the Chubu Promoting the Environmental Rate* in the Chubu Electric Power Group Thorough > Expanding group-wide environmental utilizing the system) Electric Power Group Undertaking strict Management System (EMS) among management activities Set the Chubu Electric Power Group EMS Standard, under Introducing EMS to Chubu Electric Power offices and P. 47 > Implementing more effective and efficient EMS environmental Environmental Chubu Electric Power Group companies which 19 companies introduced EMS (94% EMS introduction plants not yet utilizing the system > Utilizing EMS among Chubu Electric Power > Establishing an in-house environmental P. 50 management in Management accounting system and environmental rate) Providing support for EMS introduction at Group Group companies indicators that contribute to environment recognition of the management Established an environmental activity guideline for Group companies not yet utilizing the system potential companies environmental Promoting Green Procurement Further increasing awareness of the importance of green > Achieving a 100% green procurement rate impact of our Promoting environmentally-friendly Achieved 94% green-procurement rate for office supplies purchasing for office supplies products in society through green for office supplies business operations Promoting Green > Establishing environmental evaluation Completed an environmental assessment for seven Building environmental assessment database for P. 48 procurement cooperation standards for materials and equipment representative materials/equipment materials and equipment Procurement > Collaborating with other companies to > Encouraging green procurement among Began environmental assessment for production methods Conducting environmental assessment for production establish common indices Group companies > Furthering education for suppliers methods Held Executive CSR Seminar for managers in the Chubu Encouraging environmentally- Training personnel capable of Electric Power Group Continuing to train Chuden Foresters and Forest conscious business and lifestyles Cumulative total of 2,144 have experience as environmental independently taking action on Environment Education Instructors environmental concerns within the local > Furthering environmentally conscious trainers, and 95% have taken e-learning courses Training personnel capable of business activities and training Expanding Chubu ECO Point Program community Trained 20 Chuden Foresters, or volunteer forest conservation P. 49 independently taking action on volunteer leaders Encouraging Group companies to provide > Preparing “Environmental Counselors” to lead activity instructors, and nine Forest Environment Education > Improving environmental education at environmental education to their employees P. 50 environmental concerns within local and pursue environmental activities at home Instructors Implemented Chubu ECO Point Program, with participation by communities and in the community Group companies Working with co-ops, etc., to examine ways to P. 54 > Promoting environmentally-friendly Group companies, to promote voluntary efforts by employees promote environmental activities at home and in the > Establishing a Forest Volunteer Activity and their families System lifestyles among employees and their community families Distributed environmental learning materials to Group companies and held workshops

We will advance environment-related communication and enhance cooperation with the community on a local and global level.

Improving Open, Interactive Compiled the CSR report by expanding the scope of the Communication existing environmental report Forging bonds of trust to foster greater > Enhancing active information disclosure Added new content to our website, such as content for children Continuously enhancing the website content by Group companies and others P. 52 Improving interactive communication on understanding of the Group among society > Modifying the environmental report to Held stakeholder dialogues and backyard tours to promote Holding repeated stakeholder dialogues and backyard at large include social issues understanding through observation of business activities tours P. 53 environment and energy > Cooperating with communities to address > Holding a wide range of meetings to Held Chubu Electric Power Elementary School Eco Session Continuing Chubu Electric Power Elementary School P. 72 society’s needs exchange opinions, including 2006 where elementary school children and the President Eco Sessions “Stakeholder Meetings” > Giving tours of our workplaces and discussed environmental topics (268 students from six schools facilities participated in the event)

Conducting activities with diverse Began Chuden Eco Partnership program in collaboration with Continuing implementation of Chuden Eco Partnership groups of people through new civic organizations program in collaboration with civic organizations collaborative organizations Began civic forest conservation activities, called “Invitation to Working with local communities to create Repeatedly implementing “Invitation to Forest” civic- ecological towns > Establishing new collaborative the Forest,” in cooperation with NPOs, etc. P. 4 organizations and carrying out forest Taught 647 traveling classes, gave 284 tours of workplaces and involvement program > Cooperating with local communities in riverside conservation activities in cooperation facilities Frequently holding mobile classroom programs and tours P. 50 Cooperation with areas through forest conservation activities with NPOs and other groups Popularized Eco Cute (contracts for approx. 53,000 units: of workplaces and facilities > Consulting on projects using our technology > Improving children’s environmental P. 54 local communities cumulative total approx. 146,000 units) Constantly promoting Eco Cute for efficient energy use and expertise, and cooperating in Eco-Town education Promoted activities in collaboration with the Environmental P. 55 Projects > Actively promoting an ecological Regularly promoting Environmental Partnership lifestyle, including energy efficiency Partnership Club of which Chubu Electric Power serves as Organizing Club P. 64 Cooperating with > Setting up environmental seminars for citizens chairman > Actively promoting Chubu Electric Continuously promoting environmental and energy Power Group technology through Group companies promoted environmental and energy people from diverse conservation measures through ESCO project fields and sectors consulting business conservation measures through ESCO project Contributing to increasing The Thai project to generate power from rice hulls filed an Continuously promoting overseas projects, such as a application for CDM registration with the United Nations project in Thailand to generate power from rice hulls, and Bringing together the expertise of the environmental conservation in other countries using Chubu Electric Power Participated in a palm oil biomass power generation project in developing and studying new projects Chubu Electric Power Group to pursue Group technology Malaysia Continuously funding PCF and JGRF, and contributing to Cooperation with global environmental conservation activities P. 39 > Executing projects aimed at CO2 Funded PCF and JGRF*7 and contributed to global efforts to global efforts to prevent global warming through projects the World around the world reduction in developing nations (CDM) combat global warming through projects to reduce greenhouse to reduce greenhouse gas emissions in developing P. 56 > Initiating international projects related to global > Supporting methane gas recovery and environmental conservation use in power generation gas emissions in developing countries countries > Supporting technological development Carried out environmental forestation in coal-mining regions in Continuously carrying out environmental forestation in of biomass-based power generation Australia and elsewhere coal-mining regions in Australia and elsewhere *6 Chubu Electric Power is certified under ISO 14001. The Chubu Electric Power Group companies comply with the Group’s EMS Standard (ISO 14001, environmental activity evaluation program, etc.) *7 PCF = Prototype Carbon Fund, JGRF = Japan Greenhouse Gas Reduction Fund

30 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 31 Environmental Performance Environmental Performance

Management and Economic Business Activities and Environmental Impact (FY2006) Environmental Accounting Performance

Environmental Performance

Business Activities and Environmental Impact Environmental Accounting

Social Performance

We are expanding our environmental accounting in order to increase public understanding of our Principles applied in Tables INPUT positions and actions related to environmental Tables were created by referring to preservation. This will also allow us to achieve “Environmental Accounting 2005” (published by Fuel for Power higher levels of both management efficiency and generation Materials Vehicle fuel the Ministry of the Environment), and environmental preservation. incorporate our categorization and calculation Coal 10,013,000 t Calcium carbonate 159,000 t 4,210 kl In 2006, environmental preservation investments criteria. Heavy oil 52,000 kl Ammonia 18,000 t amounted to 21 billion yen; other environmental Power Purchased from expenses totaled 157.8 billion yen. These Period created: April 1, 2006 through Crude oil 1,444,000 kl Other (caustic soda, etc.) Other Companies amounts represented 14.0% and 8.5% of our March 31, 2007 capital investment and total operating expenses, Light fuel oil 13,000 kl 18.3 TWh Scope of tables: All corporate facilities Including the following types of respectively. LNG 9,910,000 t Water renewable energy: Environmental preservation costs LPG 154,000 t Thermal power 10,250,000 t Solar (photovoltaic) Power110.65 GWh (for industrial use) Investment (100 million yen) Expenses (100 million yen) Nuclear fuel (uranium) 49 t Nuclear power 260,000 t Wind (wind turbine) Power155.57 GWh Category Items (for industrial use) FY05 FY06 Changeover FY05 FY06 Changeover Waste Materials 279.72 GWh Global environmental preservation Global warming prevention and Ozone Layer preservation 7 13 6 99 117 18 Regional environmental preservation Air pollution prevention, Water pollution prevention, etc. 22 33 11 629 585 - 44 Resource recycling Resource conservation, Industrial waste measures, and Radioactive material measures 27 19 - 8 217 215 - 2 Purchase of low environmental Electric and low-pollution vehicles, etc. 330220 Electricity for water impact products, etc. Management programs Personnel costs related to environmental preservation measures. Power Generated by Chubu Electric Stations (Thermal, Nuclear, Hydro) 127.4pumping TWh Costs for obtaining and maintaining ISO 14001, etc. 1 2 1 20 17 - 3 • Hydropower generation 8.7 TWh • Thermal power generation 100.6 TWh • Nuclear power generation 18.11.6 TWhTWh Research and development Environment-related research and development 0 0 0 67 62 - 5 International cooperation, Landscape protection, Greening, Social programs Natural environment preservation, etc. 128 139 11 589 571 - 18 Pollution impact levy under the pollution-related health damage Environmental damage countermeasurescompensation system 000990 Total 187 210 23 1,633 1,578 - 55 Percentage of total capital investment 15.1% 14.0% - 1.1%－－－ Percentage of total electric utility business expenses － － － 9.4% 8.5% - 0.9 * Totals may not match because figures have been rounded down to the nearest 100 million yen. Basis for Calculation Investment and expenses for the prevention, reduction or avoidance of environmental burden; environmental impact reversal; and damage restoration are taken into account. - Investment is the amount of capital investment used for environmental protection. - Costs associated with investment such as depreciation, equipment leasing, and maintenance and operating costs are calculated by taking into account factors such as the lifespan of each type of facility or equipment. Environmental preservation impact Our Basic Unit of CO2 emissions increased by 0.029 kg-CO2/kWh, and the volume of waste sent to external In-house electricity consumption/ landfills increased by 3,000 tons, on a year-to-year basis. Indicators Power-transmission loss Category Items OUTPUT 11.4 TWh FY05 FY06 Basic Unit of CO2 Emissions 0.452 kg-CO2/kWh 0.481 kg-CO2/kWh Global Global Warming environmental Power purchases from renewable energy sources 470.02 GWh 545.94 GWh Atmospheric Emissions, preservation Prevention Wastewater, etc. Industrial Waste, Byproducts, etc. Electric Power Sold SF6 recovery rate (at inspection time) 99.2% 99.6% Regional Air Pollution SOx emission (for thermal power stations) 0.06 g/kWh 0.05 g/kWh CO2 63,780,000 t Coal ash 937,000 t 132.7 TWh Environmental Preservation Prevention NOx emission (for thermal power stations) 0.09 g/kWh 0.09 g/kWh CO2 10,000 t Gypsum 293,000 t Industrial Waste Measures Landfill waste at outside locations 8000 t 11,000 t (emissions from vehicle fuel use) Resource Recycling SOx 5,000 t Heavy and crude oil ash 3,000 t General Waste Measures Waste paper recovery rate 91.2% 90.2% Landscape Protection Total length of power distribution cables laid underground 32 km 26 km NOx 9,000 t Sludge 72,000 t Social Programs Greening Green area at power stations 2,446,000 km2 2,401,000 km2 Wastewater 3,870,000 t Spent nuclear fuel Uranium 47 t These figures indicate the levels of environmental burden reduction and avoidance associated with our business operations, as well as environmental improvements made by Chubu Electric Power, and are limited to those related to environmental preservation costs. Waste heat 637 PJ Plutonium 0.5 t Economic impact of environmental preservation measures Others (soot dust, etc.) Fission Product 1.5 t Amount (100 million yen) Radioactive solid waste Category Items Provisional Estimate 1,436 bbl FY05 FY06 Changeover (barrel equivalent) Global environmental Global Warming 2 Fuel cost reduction due to change in gross thermal efficiency of thermal power stations, etc. - 17 6 23 CO absorbed by preservation Prevention Sales income from recycled gypsum, coal ash, etc., and reduced expenses due to reuse of company-owned 13,000 t Resource Recycling Industrial Waste Measures transformers and other equipment 80 78 - 2 green areas These figures represent changes in gains on recycling of gypsum and other waste and expenses related to environmental conservation.

32 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 33 Environmental Performance Environmental Performance

Management and Economic Guideline 1 We will use resources effectively. Performance

Environmental Performance Guideline 1

Social Performance

Since the power industry consumes a great deal of natural resources, including fossil Other efforts and wind power, to promote the use of renewable fuels, we view the effective use of resources as a critical aspect of our environmental • Study of converting sewage sludge to energy. preservation policy. We are working hard to promote the implementation and biomass fuel (jointly with Aichi Prefecture) development of renewable energy, as well as the efficient utilization of resources. • Demonstration project of molten carbonate Chubu Green Power Fund fuel cells (MCFC) using methane gas generated by fermenting wet refuse, In October 2000, we instituted the Chubu Green Development and Utilization of Renewable Energy promoted by the New Energy and Power Fund. Under the Fund, we collect monthly Industrial Technology Development 500-yen donations from customers who support Organization (NEDO) (Tokoname City, Aichi Prefecture) power generation from renewable energy, and Despite shortcomings such as low energy density • Development of high-efficiency gas engine use these funds to encourage its development. As 1 Hydropower generation and unstable output, renewable energy* helps generation system using woody biomass of the end of fiscal year 2006, we have received reduce consumption of fossil fuels and alleviate 999 donations from 1,291 customers. To ensure We are committed to making effective use of our fuel environmental load. transparency in the receipt and use of donations, water resources. We have 182 hydropower • Research and development of small-scale We are implementing various efforts to promote power system with biomass direct injection the Fund is being managed by the Chubu stations, which generate 5,220 MW of electricity. renewable energy, such as installing photovoltaic (combination of biomass direct-injection Industrial Advancement Center. We are also developing small hydropower plants and windpower generation facilities at our burner and Stirling engine) We are publicizing the Fund over our website, using unused drop-offs at existing dams. facilities, and promoting the development and and match customer donations with our own research of commercial-scale wind power Support for expansion of contributions. generation. We are also purchasing surplus renewable energy electricity from our customers and providing 2 Biomass* URL http://www.ciac.or.jp/green/ support for the Chubu Green Power Fund. Chubu Industrial Advancement Center

Installation of photovoltaic and wind power generation Purchase of renewable energy systems at plants (as of the end of FY2006) We are promoting the use of biomass to reduce environmental loads. We purchase surplus power generated from Facilities Output (kW) renewable energy sources, such as photovoltaic Photovoltaic 48 539 Mixed Combustion of Woody Biomass Wind power 2 267 Fuels at Hekinan Thermal Power Plant Amount of surplus power purchased from photovoltaic, *1 Energy sources that are not wind power, and biomass generation systems The Chubu Green Power Fund Mechanism depleted through We are planning to start mixed combustion of consumption, such as sunlight, wind, biomass, and Wind power generation and woody biomass fuels as of FY2009, at the coal- water. （ ） hydropower generation fired Hekinan Thermal Power Plant. The plan *2 An organic substance calls for power generation from woody biomass … derived from animal or plant fuels to account for approximately 2% of total … that can be used as an … output from the Hekinan Thermal Power Plant. energy source. Wind power generation Power generated from biomass (estimated to be 3 * Taking effect in April 2003, approx. 470 GWh per year) will be counted the RPS (Renewable We are developing commercial-scale wind power Portfolio Standards) Law toward the power generation requirement generation systems. These systems will start requires electric power specified under the Special Measures Law suppliers to meet a certain operating at two sites in February 2009 (34 MW) percentage of their Concerning the Use of New Energy by Electric and at three sites in 2009 (46 MW). generation output with new Utilities (Japanese RPS Law)*3. energy sources, such as Group company C-Tech Corporation began photovoltaic, wind power, biomass and small- and operating Wind Park Misato (16 MW) in medium-scale hydropower February 2006. C-Tech is also planning to (water channel type, with a power generation capacity of develop Wind Park Kasadori (approx. 38 MW) in 1 MW or less). the adjacent Nunobiki mountain range. （ ）

34 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 35 Environmental Performance Environmental Performance

Management and Economic Guideline 1 We will use resources effectively. Performance

Environmental Performance Guideline 1

Social Performance

Efficient Utilization of Energy Shin-Nagoya Thermal Power Station Group No.8, which is scheduled to start operation in Reduction of transmission FY2008, uses a combined cycle power and distribution loss rates generation system that utilizes 1,500°C-class gas We are acting to ensure more efficient turbines to achieve a power generation efficiency We have been actively implementing measures to utilization of energy, by increasing the Recycling of nuclear fuel of approx. 57% (based on lower heating value). reduce power transmission and distribution capacity utilization rate of nuclear power Combined cycle generation will also help reduce losses, such as installing high-voltage power stations, recycling nuclear fuel, and In Japan, nuclear fuel recycling forms the basis transmission lines and transformer facilities improving the thermal efficiency of fuel costs and CO2 emissions. of the national nuclear power policy. thermal power stations. Joetsu Thermal Power Station will start operating generating low transmission losses, and utilizing Reprocessing spent fuel to efficiently use Group 1 (1,190 MW) in FY2012. Group 2 will power grid systems designed to reduce electric power loss. Through these efforts, our power Increase in the capacity uranium resources can pave the way for start operation in FY2013, ahead of the original schedule, to cope with increasing demand and transmission and distribution losses in fiscal year utilization rate of nuclear assurance of a long-term energy supply through reduce CO2 emissions. The initial generation 2006 were only 4.51% (one of the lowest levels power stations nuclear power. For Japan, with scarce domestic capacity will be limited to 595 MW, or half the among the 10 electric power companies in We are striving to make efficient use of nuclear energy resources, nuclear fuel recycling is a total capacity. Japan). power station facilities while taking every safety valuable tool for ensuring energy supply stability. Comparison of thermal efficiency of power generation facilities in major precaution. Spent fuel can be reprocessed to separate highly countries (based on lower heating value) (2003) Comparison of transmission and distribution loss rates in major countries 1 * Out of the thermal energy of The capacity utilization rate at Hamaoka Nuclear the fuel consumed, the radioactive wastes to be treated. Since not all （％） （％） 10 45 percentage of energy Power Station dropped to 49.2% (average over spent fuel is waste, the amount of fuel generated 43.1 43.7 9.1 capable of transmission as 41.9 last five years; 41.5% for 2006), due to the long- 8 electrical power; an indicator can be reduced. 40 39.3 6.6 of the efficiency of energy 6.5 term shutdown of Units 1 and 2 and a shutdown 36.7 6 5.5 utilization at a thermal power 5.2 34.9 Increase in 35 4.51 station. of Unit 5 due to a low-pressure turbine problem. 33.3 the thermal efficiency*1 32.0 4 As our customers expect, safety will continue to of thermal power stations 30 2 be our top priority as we operate and run the An increase in the thermal efficiency of thermal 0 Hamaoka Nuclear Power Station. 25 India China France USA GermanyNorthernJapan UK USA UK Germany France Japan Chubu power stations could result in reduced fuel use Europe & Ireland Electric Power and CO2 emissions. We are striving for higher Sources: Updated Comparison of Power Efficiency on Grid Level (2006) Source: Statistics on Foreign Electric Power Industry, 2006 Ed., Japan Electric Capacity utilization rates trend at the Hamaoka Nuclear Power Station (ECOFYS); data from the Federation of Electric Power Companies of Japan Power Information Center, Inc. thermal efficiency by installing high-efficiency Chubu Electric Power: FY2006; Japan: FY2005; Others: calendar 2004 combined-cycle generation systems and Thermal efficiency of power generation facilities and total thermal efficiency (lower heating value standard) effectively operating high-efficiency thermal power stations. ● ℃ The gross thermal efficiency of our thermal （％） ● … ℃ … power stations was 45.07% in FY2006 (based on ● ℃ lower heating value). ● ℃ 45.72（FY2001） Implementation of ● leading-edge combined-cycle power generation

We are developing high-efficiency combined ● ● cycle power stations, such as Shin-Nagoya Thermal Power Station Group No.8 (1,458 MW; Nagoya City, Aichi Prefecture) and Joetsu … … Thermal Power Station (Group 1 and 2, each

1,190 MW; Joetsu City, Niigata Prefecture). （ ）

36 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 37 Environmental Performance Environmental Performance

Management and Economic Guideline 2 We will reduce our environmental load. Performance

Environmental Performance Guideline 2

Social Performance

One of the greatest challenges facing management is the fight against global Electric Power is promoting renewable energy also advancing the procurement of CO2 credits warming. sources. Specific efforts include improved by utilizing the Kyoto Mechanisms. We have actively pursued a reduction in CO2 emissions (per 1 kWh of electric utilization of nuclear power plants, with top power consumed) by efficiently operating our power generation facilities. We are priority given to safety, development of high- Utilizing the Kyoto Mechanisms also striving to completely eliminate industrial waste byproducts from our efficiency LNG thermal power generation We are actively utilizing the Clean Development business operations, with the goal of helping to create a sustainable society. systems, and in-house development of power Mechanism (CDM*1) and Joint Implementation generation systems utilizing wind power, 2 biomass, and small-scale hydropower. We are (JI* ) in order to combat climate change on a Preventing Global Warming global scale.

Implementation of the Kyoto Mechanisms

• World Bank Prototype Carbon Fund (PCF) Capital contribution • Japan Greenhouse Gas Reduction Fund (JGRF) consider it our duty to reduce the level of CO2 to funds • Global/Asia Clean Energy Service Fund emissions per kilowatt-hour of power supplied to Reduction of CO2 emissions our customers in order to prevent global • Thai project to generate power from rice hulls Participation in projects warming. • Malaysian project to generate power from palm oil biomass

Reduction of CO2 emissions resulting from • Procurement through CDM business - 3 wind power generation projects (approx. 400,000 tons in Ningxia Autonomous Region, power use requires efforts from both the Reduction of CO2 emissions base unit approx. 500,000 tons in Gansu Province, and approx. 450,000 tons in Hebei Province, all in company supplying the power and from China) - 2 projects for waste methane gas recovery and use in power generation (approx. 600,000 consumers who must use it efficiently. We The base unit of CO2 emissions from our stations Procurement of tons in Nanjing, Jiangsu Province, and approx. 580,000 tons in Wuxi, both in China) was 0.481 kg-CO2/kWh in FY2006, due in part - Hydropower generation (approx. 500,000 tons in the State of Karnataka, India) CO2 credits - 2 projects for N2O recovery and breakdown (approx. 950,000 tons in Henan Province, China, to increased electricity sales, a long-term and approx. 510,000 tons in Ulsan, South Korea) Measures to prevent global warming - HFC23 recovery and breakdown (approx. 2 million tons in Zhejiang Province, China) shutdown of Units 1 and 2 and a low-pressure • Other - Joint purchases with Japan Carbon Finance, Ltd. (up to approx. 2 million tons) turbine problem in Unit 5 at Hamaoka Nuclear - Purchases from EcoSecurities (up to approx. 2 million tons) Power Station. Total CO2 emissions were 63.78 Mt-CO2. Reduction of non-CO2 Development of CFC Breakdown To reduce the base unit of average CO2 & Treatment System emissions by 20% below the 1990 level, in greenhouse gases accordance with the Kyoto Protocol phase 1 We have developed a CFC breakdown & commitment (FY2008 through FY2012), Chubu We are also working to reduce the emissions of non-CO2 greenhouse gases. Key non-CO2 treatment system capable of breaking down and Breakdown of CO2 emissions by type of power generation greenhouse gases handled by electric power treating CFCs that are known as a cause of ozone （ ） suppliers include sulfur hexafluoride (SF6) used layer depletion and global warming. Unlike in insulation for power facilities. We are traditional treatment systems based on thermal CO2 emissions trend implementing measures to minimize the release decomposition, this system does not require a

CO2 emissions Amount of of SF6 gas into the air during inspection and complex wastewater treatment process and is CO2 emissions ＝× per kWh power use removal of facilities. able to break down/treat CFCs at low

temperatures. *1 In CDM projects, a （ ） （TWh） （Mt-CO2） developed country joins a Reduction of non-CO2 greenhouse gases GHG emission reduction … 0.130 HFCs are mainly used in refrigerants for air-conditioning systems. Our efforts to reduce project in developing … HFC HFCs include prevention of leaks and recovery of gas at disposal facilities. … countries, and may count Total emissions in FY2006 were equivalent to 12 t-CO2. part of the resulting reduction PFCs are used in liquid form in insulation for transformers and also in refrigerants. as its own. PFC 99.8 Accordingly, PFCs are not released into the air. *2 Under JI, a developed SF6 SF6 is mainly used in insulation for power facilities. We are working to recover SF6 during inspection and country (Annex 1) jointly repair, in order to reuse recovered gas for other purposes. The recovery rate in FY2006 was 99.3% during (sulfur hexafluoride) implements a project for removal and 99.6% during inspection. SF6 emissions in FY2006 were equivalent to 60,000 t-CO2. reduction of GHG emissions,

The level of unburned CH4 generated from combustion of fuels at thermal power stations and may count part of the CH4 (methane) was below the CH4 level in the air. Accordingly, there were practically no emissions. resulting reduction as its own. 2 （FY） N O We are working to reduce N2O emissions through improvement of power generation (dinitrogen monoxide) efficiency, among other methods.

38 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 39 Environmental Performance Environmental Performance

Management and Economic Guideline 2 We will reduce our environmental load. Performance

Environmental Performance Guideline 2

Social Performance

Encouragement of workplace Reduction of greenhouse Waste Reduction resource and energy gases from transportation conservation

We are actively working to reduce shipment We are working to reduce electricity, water and Waste generated from our facilities amounted to volumes and improve the load factors on vehicle fuel used in offices. As a result of various Targeting zero emissions 1,417,000 tons in FY2006. Landfill waste container ships and railway cars in the energy/resource-conserving activities, in FY2006 increased by 3,000 tons to 11,000 tons, due transportation of fuels and coal ash. we reduced electricity consumption, water mainly to increased waste material from We set the target of zero emissions in fiscal year To improve the efficiency of fuel shipments from consumption and vehicle fuel consumption by construction work associated with the removal of overseas, we are encouraging the use of large 8.4%, 13.0% and 17.8%, respectively, below 2004, and have been engaged in various activities decommissioned thermal power generation container ships. Using large container ships to FY1998 levels. to meet this goal based on the 3 Rs of reducing, facilities. We will continue to study effective transport coal, we were able to cut transportation Chubu Electric Power is also a member of Team reusing, and recycling waste, including waste uses of outside landfill waste, and make every fuels and reduce CO2 emissions by Minus 6%, which is a nationwide movement led produced by our contractors. approximately 22,000 tons. We are doing the by the Japanese government to help prevent effort to achieve our target of zero emissions. same with LNG shipments and plan to expand global warming. Under the program, we are the LNG receiving dock at Kawagoe Thermal setting air-conditioning temperatures at Power Station and the Chita LNG No.2 receiving appropriate levels and encouraging employees to Industrial waste and outside landfill waste trend Industrial Waste Processing and Recycling Flowchart dock (owned jointly with Toho Gas Co., Ltd.) to wear cooler, more casual attire in summer. （1,000 t） allow large LNG tankers (200,000 m3 level) to … Industrial waste

come alongside the docks. CO2 emissions from electricity consumption in offices and 1600 … Outside landfill waste vehicle fuel consumption ● With the revision of the Energy Conservation 1400 ●

Law, consignors are now required to implement Electricity consumption in offices Approx. 65,000 t-CO2 1200 ● ● energy efficiency measures during transportation. ● 1000 ● Vehicle fuel consumption Approx. 10,000 t-CO2 We will comply with the new requirement and ● 800 ● strive to increase logistics efficiency further. 600 ● Received the Grand Prize at 400 Materials ● STOP Global Warming Awards Fuel 200 ● ●Longer-lasting equipment The award ceremony for the Grand Prize and 0 ●Process improvement other awards under the “STOP Global Warming 1997 1998 1999 2000 2001 2002 2003 2004(FY) 2005 2006 Note: The amount of coal ash and other waste ● ● Action Campaign” was held in February 2007. ● increased in FY2001 and FY2002 due to the start of At the ceremony, the Shimada Sales Office of commercial operation of units No.4 and 5 at the our Shizuoka Branch received an award for its Hekinan Thermal Power Station. commitment to the prevention of global warming throughout the year, with programs such as the Industrial waste, waste byproduct and amount recycled (FY2006, unit: 10,000 t) campaign against vehicle engine idling,

organization of environmental/power saving Amount Generated Amount Recycled In-house Landfill (used as landfill material) Outside Landfill Chubu Electric Power’s dedicated coal transport container workshops, and delivery of seedlings. Coal Ash 93.7 93.7 0 0.0 ship “Yahagi Maru” Heavy / Crude Oil Ash 0.3 0.3 0 0 Gypsum 29.3 29.3 0 0 Efforts of the Chubu Electric Power Labor Union Sludge (including solidified sludge) 7.2 2.1 4.7 0.2 Waste Plastic 0.3 0.1 0 0.2 The Chubu Electric Power Labor Union is driving the “Save the Earth Metal Scrap 2.4 2.4 0 0.0 COCO” initiative to bring environmental conservation efforts closer to home. Glass and Ceramic Scrap 0.2 0.0 0 0.2 Specifically, the Union organizes activities that promote eco-friendly Construction Debris 7.4 7.0 0 0.4 lifestyles at home, such as recommending employees to keep an environmental household account book, and using the union newsletter Others (waste oil, waste alkali, etc.) 0.8 0.6 0 0.1 sent to members’ families to suggest various things they can do at home to Total 141.7 135.5 4.7 1.1

reduce CO2 emissions. Note: Total may not match because the figures are rounded off to two decimal places.

40 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 41 Environmental Performance Environmental Performance

Management and Economic Guideline 2 We will reduce our environmental load. Performance

Environmental Performance Guideline 2

Social Performance

use these seashells effectively, the station is Promoting Environmental Conservation at Power Stations Effective use of coal ash processing them and converting into fertilizer at the seashell conversion plant set up on the We are paying close attention to the surrounding environment by implementing As a material coal ash has many outstanding premises. Recycled fertilizer has been sold since measures against air pollution, water pollution, noise, and vibration based on properties, including making materials finer- 1997. environmental conservation agreements with local municipalities, and we are monitoring the effectiveness of these measures. grained, lighter, and stronger. We have a wide At our power stations, we also carry out monitoring surveys of the surrounding area range of recycling methods, in order to to verify that there is no impact on the environment. effectively utilize our limited resources. among others. We have also prepared for possible oil leaks by, for example, putting oil Utilization for adsorption of dioxins fences around vessels and stockpiling oil-

Many waste incineration facilities operated by collecting materials at all time. local governments use active carbon in fine Noise and vibration prevention powder form to reduce dioxins and other toxic

substances contained in exhaust fumes. We offer Seashell conversion plant We are working to prevent noise and vibration by Circulash*1, a product that exhibits high dioxin constructing and installing buildings and 1 * Zeolite produced from coal adsorption power, for use in these applications. equipment at optimal locations, adopting low- ash generated at Hekinan Management of Thermal Power Station. Circulash is used by municipally operated noise/low-vibration equipment, and installing (Zeolite is a mineral with incineration facilities in Tochigi Prefecture as a radioactive waste numerous pores in its silencing systems and sound-insulating walls. structural crystal, and is powder agent to reduce dioxins and other capable of adsorbing various Observance of pollutants. The term “radioactive waste” refers to the waste substances.) Air pollution prevention generated at nuclear power stations. Radioactive environmental laws, regulations and agreements waste produced at the Hamaoka Nuclear Power Our thermal power stations are implementing a number of measures to prevent air pollution, such Station is treated with various methods adapted In FY2006, there was no violation of any as expanding the use of LNG (which generates environmental law or ordinance. (Refer to P. 20 to the type and concentration, in order to prevent no sulfur oxides [SOx]), use of fuel oils for non-compliance events at power generation it from affecting the environment. containing low levels of sulfur, installation of facilities and actions to prevent such events.) After measuring the radioactivity to ensure sulfur and nitrogen scrubbers, and adoption of safety, some of the gaseous and liquid Comparison of power station SOx and NOx emissions in major countries burners capable of reducing NOx (nitrogen radioactive waste is discharged into the oxides) production from combustion. Through （g/kWh） atmosphere and the sea from exhaust pipes and these efforts, SOx and NOx emissions from our 3.7 ducts. We manage to keep the impact of this thermal power stations are among the lowest in 4 … SOx emissions 2 … NOx emissions * A unit designating the degree A truck delivering Circulash to an incineration facility discharge on the surrounding area to no more the world based on quantity per unit power of radioactive influence on the human body than about one-fiftieth as high as the natural output. 3 2.6 Conversion of seashells radiation (0.05 millisieverts*2/year). We have also installed high-performance dust As of the end of fiscal year 2006, we were safely collectors, and are taking other steps to minimize 2.0 2.0 to fertilizer 1.7 managing 35,584 drums (in oil-drum soot emissions. 2 1.5 The seashell-to-fertilizer recycling activity at equivalents) of low-level radioactive waste at the Wastewater treatment 0.7 Hamaoka Nuclear Power Station received the solid waste storage depot on the station premises. 0.6 1 “Reduce, Reuse and Recycle Promotion Council Since fiscal year 1992, we have sent a total of Water used at power stations is treated by 0.3 20,773 drums to the Low-Level Radioactive 0.2 0.09 Chairman’s Award” in 2006. comprehensive wastewater treatment systems 0.05 Waste Disposal Center (operated by the Japan before being released into the water systems of 0 Hamaoka Station captures a large amount of USA UK Germany France Japan Chubu Nuclear Fuel Limited) in Rokkasho Village, the outside environment. To reduce the effect of Electric seashells from the intake water chamber when Power Aomori Prefecture. There, the drums are stored thermal effluent, we are adopting the deep-layer Source: Basics of Energy Learned from Graphs and Charts, the Federation collecting seawater to use as cooling water. To underground (at a depth of at least 4 meters) after of Electric Power Companies of Japan seawater intake and surface-discharge method, Chubu Electric Power: FY2006; Japan: FY2005; Others: calendar year 2002 the radioactive material is sealed in.

42 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 43 Environmental Performance Environmental Performance

Management and Economic Guideline 2 We will reduce our environmental load. Performance

Environmental Performance Guideline 2

Social Performance

The dose from the Hamaoka Nuclear Power asbestos initiatives in a timely manner. Radiation control in the Station, as estimated based on the amount of PCB (polychlorinated We used spray-on coatings containing asbestos in vicinity of the Hamaoka radioactive gaseous and liquid waste discharged, biphenyl) treatment some of our buildings as soundproofing, Nuclear Power Station was less than 0.001 millisievert for fiscal year insulation, and fireproofing materials, but we are 2006. currently implementing well-planned measures to People are exposed to radiation and radioactive We have devices both utilizing polychlorinated remedy the situation, including asbestos removal. substances in daily life. Annual exposure to biphenyl (PCB) in high concentrations and pole- We also used products containing asbestos in *1 This oil is used in certain natural radiation from cosmic rays and pole-mounted transformers. mounted transformers that utilize recycled some of our generator facilities’ heat insulation, Accidental admixture of PCB 1 radioactive substances in soil and food amounts insulation oil* with accidental admixture of PCB shielding, and other materials, but as these are in trace amounts was to about 2.4 millisieverts per person (average traces. We have stored this equipment under detected in 1989 (this is the molded products, it will not disperse under insulation oil with low PCB worldwide). Laws stipulate that radiation doses strict control since 1974, when a ban was normal-use conditions. For this reason, we plan concentrations). received from nuclear power stations by local imposed on PCB manufacture, import, and use. to gradually replace these products with asbestos- residents must not exceed 1 millisievert per year. Of these, we have been treating insulation with free products when we carry out periodic low concentrations of PCB at an Insulation Oil inspections, improvements, and repairs. We will Recycling Center since February 2005. Treated continue to respond appropriately to asbestos Chemical Substances Management oils are carried out as recycled oils (fuel oils, issues, in accordance with national asbestos etc.) using tank lorries after confirming that the policy and relevant laws and regulations. PCB content is below the standard level. controlled substances based on in-house manuals HP > Environmental Efforts We are also constructing the Transformer and other materials, while also improving the > Key Circumstances of Asbestos Use Use of PRTR-regulated Recycling Center to treat containers and methods of using these substances and substances materials of pole mounted transformers introducing alternative substances and containing low levels of PCB. The Transformer technologies to reduce emissions of PRTR Recycling Center will start operation in the Soil pollution prevention substances. We are studying and calculating the gross second half of FY2007. To reduce the emissions of controlled chemical substances in Approaches to emission reduction environmental load, the Transformer Recycling Public health may be affected by coming into accordance with the “Law for Determination of Center will also have a rooftop garden and utilize direct contact with soil contaminated with toxic the Release of Specified Chemical Substances To reduce the release into the atmosphere of construction materials using coal ash. substances, or by drinking underground water into the Environment and Promotion of Improved toluene, xylene and other pollutants contained in Transformers and other equipment using taken from contaminated ground. Chubu Electric Control” (PRTR Law). paints, we are now using paints with significantly insulation oils containing PCB (equipment with Power is working to prevent soil contamination, Chubu Electric Power uses chemical substances lower levels of toxic substances or none at all. high PCB concentrations) are treated by the while complying with and taking appropriate mainly in paints, control oils for turbines used in We will continue to pursue these methods while Japan Environmental Safety Corporation actions under all laws and ordinances designed to power plants, and boiler feed-water treatment also attempting to reduce emissions by other (JESCO). prevent soil pollution. agents. means, such as revising the frequency of According to the report submitted to the We are implementing strict management of painting. government by the Japan Electrical Manufacturers’ Association in 2002, we are also PRTR-regulated substance survey result FY2006 implementing proper control over transformers Amount discharged Amount Amount Amount Amount Amount discharged (kg) Substance Main Use (kg) transported Substance Main Use transported and other equipment that have been found to used (t) used (t) Atmosphere Water (kg) Atmosphere Water (kg) contain trace amounts of PCB. Heat-retaining Contained in paints, Asbestos 13.3 0013,330 materials, etc. Styrene radioactive waste 6.2 1,800 0 4,400 fixation agent Ethyl benzene Contained in paints 14.8 14,800 0 0 Hydrazine Boiler feedwater 5.8 1.2 26.1 0 treatment Status of asbestos usage Xylene Contained in paints 26.5 26,500 0 0 Contained in thermal Benzene power plant fuel 2177.7 0.0 0 0 HCFC225 Dry cleaning 4.1 4,100 0 0 Trisphosphate Turbine control oils 5.200 5,200

* Calculations include Class 1 Designated Chemical Substances used in amounts of 1 ton or more per year at our plants (or Special Class 1 Designated We are committed to investigating and Insulation Oil Recycling Center Chemical Substances used in amounts of 0.5 tons or more). monitoring our asbestos usage, and publicize our

44 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 45 Environmental Performance Environmental Performance

Management and Economic Guideline 2 We will reduce our environmental load. Guideline 3 We will improve our level of environmental management.Performance

Environmental Performance Guideline 2 / Guideline 3

Social Performance

Environmentally-friendly activities In order for corporations to be committed to conserving the environment, it is critical to promote environmental management. We have worked continuously to introduce such an environmental management Nature Regeneration Technologies system, and we work to promote the principles of environmental management through Biodiversity initiatives based on Creation of Submarine Forest various mechanisms and programs, including education for employees and the community, and green procurement methods. We will press on with the aim of raising A habitat of seaweed is called a “submarine our level of environmental contribution still further. Greening measures forest.” Submarine forests not only provide places for fish and shellfish to live and reproduce We own about 2,300 hectares of green land, in, but also help clean the marine environment. In Environmental Management System including forests and green areas on our power- recent years, however, submarine forests are plant premises. decreasing due to seawater damage and various We green our thermal and nuclear power plants Implementation of Internal EMS certification system other forms of marine pollution. with the goal of forming forested areas similar to environmental Chubu Electric Power has developed a the natural state. When we green our plant management system (EMS) Since fiscal year 1999, we have implemented an technology to produce seaweed seedlings of the premises, we strive to create a land ecosystem. internal certification system for company-wide Eisenia bicyclis family. This technology is being We select trees that harmonize with the local Since establishing environmental management deployment of EMS. Techno Chubu Company used to create a submarine forest around Chubu rules in January 1998, we have worked steadily Ltd., a subsidiary of Chubu, carries out plant life, and also include food plants favored by International Airport. to set up an environmental management system, examinations on par with examination and birds and other animals. In addition, we have been participating in a joint or EMS, at each of our business premises. registration institutions. The name “ECONP” comes Giving away saplings research project called “Creation of New Home As a result, around 97% of our facilities had from the English word “eco,” Ocean” since FY2003. Collaborating with the implemented EMS as of the end of FY2006, and Creation of the ECONP logo the abbreviation of ecology, We donate saplings to schools, parks, and other participating communities in Mie Prefecture, we some had been certified under ISO 14001. and the Japanese word “onpu,” meaning musical notation. public facilities in order to support the creation of are working to create a zosteraceae forest. The In July 2005, we created an environmental logo, Facilities with ISO 14001 certification (As of the end of FY2006) “ECONP,” to promote Group-wide urban and suburban environments rich in results obtained so far have confirmed - Chita/Chita No.2 Thermal Power environmental management and use it to build an greenery. As of the end of fiscal year 2006, we stabilization and growth of seedlings as well as Station Head office environmental brand. have donated a cumulative total of about 317,000 the effect of creating a habitat for marine life. - Hamaoka Nuclear Power Station - Engineering Technology Center This logo is used at the business facilities of saplings. - Research & Development Division Chubu and our Group companies that have The Kariya Sales Office of our Okazaki Branch - 14 facilities supervised by Shizuoka Consideration for Scenery Regional Office obtained ISO 14001 environmental management cooperated with local Sakuno Elementary School Regional offices - 14 facilities supervised by Nagano system certification. as part of the Green School Initiative to help Regional Office In order to create a harmonious balance with the - 13 facilities supervised by Okazaki create schools surrounded by trees and plants. Regional Office surrounding environment, the musical score of The Kariya Sales Office donated 60 seedlings of Mozart’s Symphony No.40 in G minor is Internal EMS certification system rhododendron indicum and planted them at the featured on the exterior walls of the main school’s entrance together with students. building housing Shin-Nagoya Thermal Power Station Group No.8 and the existing Group No.7 building.

Students of Sakuno Elementary School planting trees Transplantation of zosteraceae seedlings Main building of Shin-Nagoya Thermal Power Station Group No.8

46 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 47 Environmental Performance Environmental Performance

Management and Economic Guideline 3 We will improve our level of environmental management. Performance

Environmental Performance Guideline 3

Social Performance

Research on quantitative assessments of Environmental Education environmental management activities

Since FY2003, we have been researching methods to quantitatively and In principle, we offer environmental education to our employees through on-the-job comprehensively evaluate the environmental impact generated from our training on a daily basis. This is supplemented with instruction from environmental business activities as well as the effects of our environmental management education trainers, environmental education programs for newly hired employees, and and conservation activities. an e-learning program offered to all employees through e-learning. In addition, each By the end of FY2005, these research programs made it possible to utilize a division has its own environmental education programs as part of its specialized training. Japanese version of the Life-cycle Impact Assessment Method – based on Endpoint Modeling (LIME) – to calculate the environmental impact generated by our business activities as an environmental impact index per unit of receiving official certifications for environment- electricity sold. We have also developed a method to quantify the effects of related expertise and skills. Over 3,500 environmental management and conservation activities, enabling us to Environmental education employees have participated in the program calculate an environmental contribution index per unit of electricity sold. through the end of fiscal year 2006. In FY2006, the above results were presented at a conference on Life Cycle trainer system Activity results are tabulated every six months, Assessment (LCA) hosted by the Institute of Life Cycle Assessment, Japan. and employees and business facilities that have We would like to thank Professor Inaba of the University of Tokyo and Under the system, our Environmental Affairs accumulated the highest points are Associate Professor Sakagami of Nihon Fukushi University for their dedication Department holds seminars for environmental acknowledged. The Chubu Eco Points program and leadership in driving these research projects. education trainers who are selected at each also encompasses social contribution projects business facility. These trainers apply the organized and run in collaboration with NPOs knowledge gained through the seminars toward and other environmental bodies. Green Procurement educating the employees at their business facility Children conduct an experiment In FY2006, we collaborated with the Chubu – using the environment test kits about the environment. Environment Partnership Office under the that we gave away – at This system was established in fiscal year 1998. Ministry of the Environment and distributed Kawaranbe, a general learning In fiscal year 2003, we inaugurated our green procurement system to further the center in the Tenryu River region A cumulative total of 2,144 trainers have 1,000 environmental test kits incorporating (Iida City, Nagano Prefecture). recycling promotion efforts made by our company and other companies involved in our attended the seminars thus far, and are Circulash to children. business activities. In fiscal year 2006, we also took CSR into consideration when capitalizing on the environmental knowledge Environmental education system procuring our supplies. LOOK! P. 66 obtained in their own work and in guidance of the employees under their supervision. Acquiring Acquiring Specific Acquiring General Knowledge on Items Basic Knowledge on Environment control cables not containing lead, removable Knowledge Environment heat-reserving materials, and non-toxic paint. Environmental education Green procurement of As part of our efforts, since FY2005, we have through e-learning Employee New

office supplies been soliciting “green product proposals” from Education our business partners; i.e. proposals for the use of environmentally friendly electric-power In fiscal year 2002, we began an environmental Evaluation of survey results on First year the status of environmental In fiscal year 2006, our green procurement ratio equipment and materials. education e-learning program for all employees.

management among business In fiscal year 2006, the program attracted the Environmental by Education

was 94%. We are now aiming to raise our e-Learning through Education partners employees’ environmental awareness further, and participation of 95% of all employees. dcto Trainers Education

achieve a green procurement ratio of 100% for Environmental management Division-specific

office supplies. among our Education business partners Chubu Eco Points program Green procurement of Second We have been conducting a survey among our year electric-power onward equipment and materials business partners to determine the status of their We are implementing the Chubu Eco Points environmental management. This will allow us to program to encourage independent, gain a clear understanding of the progress they environmentally aware actions by the employees To reduce the environmental impact of our have achieved in the environmental arena, and of all Group companies as well as their families. Level A: electric-power equipment and materials, we are thereby improve the total level of environmental

Under the program, employees receive points for Management

Sufficient efforts have been for Seminar made. working with our business partners to implement commitment by all companies involved in the the environmental activities they engage in at Senior Level B: a comprehensive set of programs. various business activities of Chubu Electric work, in their communities, and with their Sufficient efforts have not Specifically, we are evaluating equipment and Power. Each business partner is evaluated on the families. Activities may range from everyday Management been made in some areas. materials using criteria such as energy efficiency, status of its environmental management using matters such as not idling their car engines when Level C: resource efficiency, recyclability and toxicity to Sufficient efforts have not our unique evaluation method (companies are parked, and taking their own shopping bags with been made. promote purchases of items such as plastic classified into three levels: A, B and C). them to supermarkets, to broader-scale activities such as community cleanup projects and

48 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 49 Environmental Performance Environmental Performance

Management and Economic Guideline 3 We will improve our level of environmental management. Performance

Environmental Performance Guideline 3

Social Performance

Initiatives by our Group Companies energy conservation through these solutions generate SOx and soot dust when burned, and received high recognition, and the company generates lower CO2 emissions than petroleum or received an award for excellence at the 2007 other carbon-based fuels. The Chubu Electric Power Group engages in the comprehensive energy service Aichi Environmental Awards (organized by Hokuriku Erunesu Co., Ltd., established by business, as well as in the IT and environmental and social service businesses. We Aichi Prefecture). Chubu Electric Power with three other partners are promoting environmental management in all our business activities through including Hokuriku Electric Power Company, is LNG Chubu Corporation concerted Group-wide efforts in keeping with the principal message of the Chubu also engaged in the sale of LNG throughout Hokuriku region. The combined sales volume of Electric Power Group Environmental Declaration. LNG Chubu Corporation sells some of the LNG imported by Chubu Electric Power for use in LNG by LNG Chubu and Hokuriku Erunesu power generation, and transports LNG using tank amounted to approximately 70,000 tons in Chubu Electric Power Group faced with barriers in implementing EMS. Under trucks. LNG is a form of energy that does not FY2006. the new EMS standard, 19 companies have Environmental Measures introduced their own EMS. Environmental load of We began collecting data on the environmental load of all Group companies in fiscal year 2002. Committee As a result, 32 of our Group companies had set Group companies Each company is striving to reduce environmental loads based on its own target. In fiscal year 2006, the Chubu Electric Power up an EMS as of the end of fiscal year 2006 (in FY2006, for 33 of our Group companies In FY2006, there was no violation of any environmental law or ordinance. Group Environmental Measures Committee (implementation rate: 94%) and are working to excluding Chubu Electric Power) gathered in May and November and established practice thorough environmental management. Items FY2006 Items FY2006 the environmental activity guidelines for the In February 2007, we also organized an EMS Offices 76.01 GWh Industrial waste Amount generated: 45,000 tons Chubu Electric Power Group, examined common workshop to assist Group companies in Electricity Amount recycled: 36,000 tons utilization Plants 125.31 GWh Waste paper Amount generated: 1,462 tons targets to be attained by all Group companies, establishing an EMS and operating the system Amount recycled: 1,167 tons 3 and organized seminars on environment-related effectively. Water utilization Tap water: 620,000 m SOx emissions 4.3 tons Industrial water: 110,000 m3 topics. (As of the end of fiscal year 2006, 34 Gasoline: 5,600 kl Environmental education Vehicle fuel utilization NOx emissions 39.0 tons companies including Chubu Electric Power, are Diesel: 2,600 kl To raise the environmental awareness of their Petroleum 2,800 kl CO2 emissions* 150,000 tons-CO2 sending representatives to the Committee.) Fuel utilization employees, all our Group companies are actively Gas 17.40 million m3 * Calculated based on electricity utilization, vehicle fuel utilization, and fuel organizing environmental education programs utilization reflecting the current situation and needs of each PRTR (actual) company, to raise the environmental awareness FY2006 of their employees. We also provided e-learning FY2005 Substance Main application Amount Emissions Amount Amount Emissions Amount and other environmental educational materials to handled (t) (kg) transported (kg) handled (t) (kg) transported (kg) our Group companies over our Group intranet, Halon 1301 Thermal medium for cryogenic 9.1 9,100 0 4.2 4,200 0 and distributed educational textbooks. In power generation addition, we dispatched employees as instructors HCFC 225 Product washing 1.7 1,700 0 1.5 1,500 0 for environmental training courses held by Group Toluene 10.6 9,900 700 11.8 11,000 770 companies. An environmental seminar organized by the Chubu Electric Ethylene glycol monoethyl ether 1.8 180 1,600 1.5 140 1,400 Power Group Environmental Measures Committee As a result, the number of Group companies Contained in paint implementing environmental education increased Xylene 4.8 3,500 1,300 5.9 4,200 1,700 to 33 in fiscal year 2006 (implementation rate: Styrene 1.3 190 1,100000 Increase in the level of 97%). environmental management We calculated environmental preservation costs Environmental preservation costs of our Group companies(amount of expenditures) of our Group companies. Initiatives by Expenditures (millions of yen) Environmental management system Group companies Category Major items FY2005 FY2006

All of our Group companies are actively engaged Resource Reduction and recycling 111 136 TOENEC CORPORATION Waste measures in various efforts to reach the goal of a 100% rate cycle Disposal and treatment 507 877 of EMS implementation within the Chubu Personnel expenses for environmental preservation TOENEC CORPORATION is a general facility Organizational measures 442 470 Electric Power Group by FY2008. Management organizations and environmental training solution provider utilizing its expertise and Certification acquisition and activities Acquisition and maintenance of ISO 14001, and others 57 71 In May 2006, we established EMS standards know-how to develop control systems for maintenance within the Chubu Electric Power Group Social activities Greening and nature Greening and nature conservation activities 96 energy-conservation production equipment and conservation 91 (encompassing ISO 14001, environmental related machinery, and combining system Total 1,207 1,650 activity evaluation programs, etc.) that can be hardware and software to propose energy- Average environmental preservation costs per company (expenditures) 35 50 implemented easily in incremental stages by conservation solutions. small and medium-sized companies traditionally TOENEC’s contribution to the promotion of Note: Totals may not match because figures have been rounded down to the nearest 100 million yen.

50 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 51 Environmental Performance Environmental Performance

Management and Economic Guideline 4 We will advance environment-related communication and enhance cooperation with the communityPerformance on a local and global level.

Environmental Performance Guideline 4

Social Performance

We are working hard to ensure that the public understands and trusts our experience for the parents and children, who environmental efforts through active information disclosure and interactive learned the importance of nature and electricity. communication. We need to cooperate with the local community as well as Eco-Industrial Trade Fair countries worldwide in order to address global environmental issues. We therefore strive to promote cooperation with local communities, and actively Environment and pursue information exchange and overseas technological collaboration with energy- We held an exhibition at the Messe Nagoya 2006 energy seminar and environment-related research institutions. Eco-Industrial Trade Fair in October 2006. Our booth showcased a range of our The seminar provides an opportunity for us to Environmental Communication environmental technologies relating to the exchange opinions on a broad range of creation of submarine forests (seaweed), the environmental issues with young, future leaders effective utilization of coal ash, compensation of society. In FY2006, we organized eight systems for momentary voltage drops utilizing seminars and discussed topics on the electrolytic double-layer capacitors, and CFC students representing each school had talks environment and energy with 10 university and breakdown & treatment systems. We also regarding the environment with President Mita of graduate school students in Aichi Prefecture. Chuden Elementary School presented and demonstrated solutions meeting Chubu Electric Power and astronaut Toyohiro Eco Session the diverse needs of customers. Akiyama.

In December 2006, we organized the Chuden Communication utilizing Elementary School Eco Session 2006 to provide the Chubu Electric Power Backyard tour an opportunity for elementary school children website – who will become society’s future leaders – to We conducted “backyard tours” during which learn about the environment and energy. We are utilizing our website to provide participants had the opportunity to view our The event saw the participation of 268 students information and promote dialogue on the facilities and learn about our environmental from six elementary schools in the Chubu area, environment. efforts. The latest backyard tours, on the theme who had attended preparatory programs We actively provide useful information on how “effective utilization of water resources through conducted by our employee instructors at schools consumers can practice an eco-friendly lifestyle hydropower generation and environmental or during power station tours. The participating at home, such as keeping an environmental conservation efforts by Chubu Electric Power,” children presented the results of their projects household account book and various other ideas primarily consisted of tours of our Kamo Power under the theme of “What we can do for the to “live green.” Supply Control Center and Kawabe Hydropower future of the Earth.” After the session, the Generation Station. After completing each tour, Backyard tour we held a discussion session with the participants. Sample content of our website

HP Lifestyle Information Site 【link chuden】https://link.chuden.jp/ Environmental excursion tour in Nagoya Port Eco Life Club Provide various tips on everyday activities to help you Café live an eco-friendly life. During the Environment Awareness Month of Children can learn about environmental issues in an June 2006, we held an environmental excursion Eco Land enjoyable, game-based setting. tour around Nagoya Port, where the participants (45 families consisting of 104 parents and A web drama where the main character encounters and children) were guided by the skipper, actor Ken Yuna’s Happy Eco Life! learns about energy conservation, recycling and various Nakamoto. The families boarded a cruise boat at other everyday issues regarding the environment Nagoya Port Wildflower Garden Bluebonnet and enjoyed an excursion around the port, visited our Provide fashion and lifestyle tips on living in harmony with power station, and learned about nature and life Hinemosu the environment. Children talk about the environment with President Mita (right) at Chuden Elementary through the picture story show presented by Environmental excursion tour in Nagoya Port School Session. Nakamoto. The event provided a valuable

52 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 53 Environmental Performance Environmental Performance

Management and Economic Guideline 4 We will advance environment-related communication and enhance cooperation with the communityPerformance on a local and global level.

Environmental Performance Guideline 4

Social Performance

to expand the diffusion of Eco Cute, an electric Cooperation with the Local Community water heater that uses a heat pump with natural Promoting more efficient coolant (CO2). Eco Cute reduces energy energy use by customers consumption from water heating and is also budget- and environment-friendly. The machine To reduce CO2 emissions through energy is very popular among our customers and Collaboration with conservation in homes, buildings and factories, “Invitation to the Forest” approximately 53,000 units were sold in fiscal an environmental NPO we are implementing measures such as year 2006 alone. Cumulative sales since the developing and recommending high-efficiency system’s launch amount to around 146,000 units. In Taiwa-cho, located in the city of Gujo in Gifu In collaboration with the Chubu Recycle equipment for use by our customers. We are also implementing the Home Energy prefecture, we own a broad expanse of forest Citizens’ Organization, an NPO headed by Mr. Conservation Partnership Project jointly with covering 11 million square meters, called Yoshiyuki Hagiwara, we have held Popularizing electrical Nagoya City and Owari Asahi City. Backed by Uchigatani Forest. Here, we conduct forest environmental classes for elementary school heat pump air conditioners the New Energy and Industrial Technology activities through a civic program called students since 1999, and given away In our sales promotion activities focused on Development Organization, the project Invitation to the Forest. The theme of the commemorative tree-planting certificates since energy solutions, we recommend highly- subsidizes part of the initial cost of our Eco Cute program is “living in harmony with nature 2001. efficient, environmentally-friendly electrical heat and energy utilization measuring system Sho-ene – cultivating forests and educating people.” pump air conditioners. In fiscal year 2006, we Environmental Classes Navi, and also gathers data on energy- The activities provide a wide range of people received 2,264 orders corresponding to conservation effects and reductions in CO2 with opportunities to help with forest We have held a series of three environmental approximately 240 MW. emissions achieved through the project. conservation and experience nature, so that as classes for 36 elementary school students in many people as possible become actively Nagoya City and its vicinity, starting from Popularizing Eco Cute involved in environmental conservation October 2006. The program was designed in line Water heating accounts for about one-third of activities. with the key philosophy of ESD (UN Decade of residential energy consumption. We are working In fiscal year 2006, we held 32 events (with a Education for Sustainable Development) and total of 314 participants) in cooperation with organized in collaboration with UNY Co., Ltd. Development of energy conservation products groups such as Lovers of Water and Greenery, an and citizen’s groups. The children enjoyed NPO comprised mostly of current and retired learning about the importance of energy and the Chubu Electric Power employees working as environment. Energy management system Development of High for commercial facilities Efficiency Heat Pump volunteers, as well as local NPOs including Tree-planting certificates Friends of the Metasequoia Forest. Activities We developed an energy We have developed the High-F, a management system for use in high-efficiency heat pump, together included training for the Chuden Foresters (forest As a part of the Chuden Eco-Partnership commercial facilities, which with Kobe Steel, Ltd., Tokyo volunteers; the first batch of 20 volunteers Program, we awarded tree-planting certificates to supports energy management by Electric Power Co., Inc., and businesses operating multiple Kansai Electric Power Co., Inc. This completing the workshop received a certification) 5,000 customers chosen by lottery. outlets, such as supermarkets and air-cooled heat pump chiller boasts and practical forest education classes. restaurants. This system can be the highest efficiency in the introduced at a low cost and industry. The system, which is used Environmental Partnership provides a wide range of energy- for air-conditioning heat source conservation support functions to equipment in buildings, factories, Organizing Club meet the various analysis and and other facilities, and supports management needs of customers. both cooling and heating An environmental advocate group, the The system is already in use by applications, received the some supermarkets. Chairman’s Grand Prize for Energy Environmental Partnership Organizing Club, was Conservation from the Energy Conservation Center for FY2006. established in February 2002 by 14 local Commercial facility energy management system companies including Chubu Electric Power. The club had 308 corporate members as of the end of Other energy-conservation activities fiscal year 2006. Chairman Kawaguchi of Chubu Electric Power We take advantage of a wide range of opportunities to provide information about energy conservation to our customers. We ask our customers to use electricity efficiently, to help prevent global warming. was elected Club Chairman in FY2006. Under • Display electricity usage for the same month of the previous year • Distribute pamphlets such as Q&A: Skillfully Using Electricity and his leadership, we are actively participating in on meter readings Eco Report and collaborating with various club activities. • Offer energy-conservation consulting as part of our customer • Recommend high-efficiency energy-conservation devices at solution services exhibitions such as ENE-WAY • Develop public relations via our Eco Life Club, Eco Land, and Chuden Foresters receive training on tree thinning using a chainsaw. other websites

54 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 55 Environmental Performance Environmental Performance

Management and Economic Guideline 4 We will advance environment-related communicationenhance and cooperation with the community on a local and globalPerformance level.

Environmental Performance Guideline 4

Social Performance

Cooperation with the World Chubu Electric Power Environmental Forum

We are helping to improve environmental conditions in other countries through our consultation service, capitalizing on the experience and knowledge we have accumulated by implementing environmental measures at our thermal power Since 1993, we have held the Chubu Electric Power Environmental Forum, 29th Chubu Electric Power stations. We are also actively involved in environment-related projects overseas. which provides an opportunity for our Environmental Forum president to hear outside experts’ views Cooperation Agency (JICA). on our environmental measures. We received comments on our environmental Under this project, which aims to promote the conservation activities in FY2006 at the 29th Palm husk biomass power 28th Chubu Electric Power development and use of electricity in regions Chubu Electric Power Environmental Forum held generation project Environmental Forum where approximately 80% of Malawi’s in May 2007. population live, our employees will join a team In November 2006, we held our 28th Views of the forum members Malaysia is the number-one producer of palm oil of experts and provide operations management Environmental Forum, where we heard opinions in the world. However, the majority of the palm regarding our efforts in the field of PCB consulting regarding line extension work and • For mixed combustion of woody husks left over from the production process are treatment. The forum members also toured the technical management concerning the biomass, it is important to give full Insulation Oil Recycling Center (Minato-ku, discarded as waste. This project aims to develop photovoltaic power generation system. consideration to ensuring sustainable Nagoya City) where insulation oils with low PCB two small-scale power stations with an output of growth of forests. concentrations are treated to remove toxic 10 MW, where palm husks are used as fuel for • Eco Report 2007 should have a substances. generating power. The stations are scheduled to Development of narrower focus by identifying its target start operation in 2008. This project not only International Exchange readers. • In the area of disclosure, relevant and contributes to the preservation of the regional useful information should be environment, but it will certainly help us receive By accepting trainees from developing countries communicated to general consumers CO2 credits, as it has been registered as a CDM and dispatching instructors to these countries, we by emphasizing the additional keyword project with the United Nations. are promoting international exchanges in order to “safety” in addition to “security.” • Chuden Elementary School Eco protect the environment, improve energy Tour of the Insulation Oil Recycling Center Session is a great opportunity for efficiency, and assure the safety of nuclear power children – society’s future leaders – to generation. Views of the forum members learn about energy and the We are also a member of the World Business environment. Council for Sustainable Development (WBCSD), • It is important for Chubu Electric Power to be accountable for its PCB treatment which brings together some of the world’s efforts. Active disclosure of relevant Members of the Chubu Electric Power Environmental Forum (as of May 2007) leading environmental companies to work on information through the CSR report and Nobuhiro Okuno (Chair) Professor, Graduate School of Chukyo University various sustainable growth programs. other means is commendable. • Japan’s PCB treatment standards are Sayuri Ozeki Executive Director, Chubu Chapter, Nippon Association of Consumer Specialists Acceptance of trainees and dispatch of instructors much more stringent than those of Toshihiro Kitada Professor, Department of Ecological Engineering, Toyohashi University of Technology Palm tree and husks used as fuel (left) other countries. The processing Keiko Kunimura Director, Nagoya City Waterside Research Group Number of trainee Number of instructor standards should be reviewed further, Kazuhiro Kuno Professor, Faculty of Engineering, Aichi Institute of Technology projects projects Commissioning of regional taking all factors into account. Koshin Kura Executive Director, International Center for Environmental Technology Transfer FY2006 15 (127) 11 (12) • Among the various issues concerning Naomasa Shida Vice President, Shizuoka Eiwa Gakuin University electrification project the PCB treatment system, we should Seiichi Shimura Editor-in-Chief, The Chunichi Shimbun newspaper Note: Figures in parentheses indicate number of participants. in Africa discuss more efficient treatment Shinkan Tokudome Professor, Nagoya City University Graduate School of Medical Sciences methods in particular. Hiroshi Nakamura Professor, Faculty of Education, Shinshu University We were jointly commissioned with KRI • Obtaining a consensus from the local Park, Hye-Sook Professor, Faculty of Humanities and Social Sciences, Mie University International Corporation to consult on a regional community is very important in driving Masanobu Hasatani Professor, Aichi Institute of Technology the PCB treatment initiative. To do this, electrification project in the Southern African Takeshi Horishita President, Aichi Prefectural Council on Laborers’ Social Welfare further study is needed in the area of Eri Mizuo Associate Professor, Faculty of Human Studies, Meijo University country of Malawi, led by the Japan International risk communication. Ichiro Yamamoto (Vice Chair)Professor, Graduate School of Engineering, Nagoya University

56 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 57 Social Performance Social Performance

Management and Economic Customers Performance

Environmental Performance

Social Performance Customers

Reinforcing communication Aiming at improving Conducting Customer Establishment of management with customers by providing system and employee education customer satisfaction Feedback Surveys helpful information Under the leadership of the Privacy Manager appointed by our president, the privacy We are intensifying a wide range of initiatives A cross-divisional discussion and examination is In addition to our Customer Response System, promotion section and management coordinators underway on the specifics of a new campaign to aimed at offering services that achieve customer we conduct ongoing surveys asking customers in divisions, branches, plants and other company take our personalized service to the next level, so satisfaction (CS). Our drive to ensure customer questions such as what they expect from Chubu facilities are working together to manage as to ensure that the different needs of each satisfaction is focused on: Electric Power, and their impressions of our information, using a single, company-wide customer are met more effectively and precisely. • Care (Improving how customers view company. framework. We are also providing informative The slogan of this campaign is “Enriching the our service and response) content in the company newsletter and intranet, The questionnaires, which target about 1,000 experience of customers.” organizing e-learning seminars, requiring • Accuracy (Accurately handling matters) customers living in our service area, ask Under this campaign, we will enhance our employees to carry an information management • Speed (Acting quickly to respond to customers to give their views of Chubu Electric services through existing communication pocketbook that specifies the key points of our customer’s needs) Power, and their opinions and requests regarding channels with customers, and also set up a new internal rules on handling personal information, As a part of our CS drive, we set up dedicated electricity bills and all-electric homes. lifestyle website providing content the customers and implementing employee education programs. Society customer satisfaction sections at our head office In our survey conducted in September 2006, 73% will find useful. With these measures, we will All our Group companies have also specified and regional offices to support the front line of respondents said they wanted us to lower our expand our communication with customers. their own internal rules on personal information activities where we deal with customers directly. electric bills, 40% said they wanted speedy and share the details of incidents involving At sales offices where sales representatives are recovery from accidents and disasters, and 25% Protecting our information leaks experienced by Group Social engaged in various activities requiring direct said they wanted to see our active commitment to customers’ privacy companies and other companies. These are just a Performance contact with customers, the sales office manager the global environment, especially the reduction few examples of how we are striving to ensure appropriate management of personal information. acts as CS manager and works with the CS of CO2. As a company whose mission is public service, leaders he/she has appointed to promote We carefully analyze the results of these surveys we have a vital responsibility to appropriately Preventing personal information independent programs developed by the specific with the help of outside experts, and reflect our handle and protect personal information. leaks and their re-occurrence sales offices. findings in our sales activities on a company- We have taken a variety of steps to ensure Regrettably, in fiscal year 2006 there were four wide basis. compliance with the Personal Information cases in which personal information was lost or Protection Law, such as establishing a personal stolen from our company. We immediately Utilizing our Customer information privacy policy, creating a privacy- apologized to the customers concerned and Response System protection regime and internal regulations, and explained the situation. We also made Customer Response System educating all employees on privacy issues. announcements to the press in order to prevent We share the valuable feedback received from the damage from spreading. We are also committed to appropriately managing personal our customers with all employees, utilizing our Customer opinions, Providing services requests, etc. information by making all employees aware of Customer Response System. with a higher level of ･ Telephone customer satisfaction Customer ･ Visits the specific situations at hand. The feedback from customers received through ･ Internet the customer service representatives at sales HP > Handling of personal information

offices, over the phone and through other means Study of of communication are registered in the system. improvements Information management regime and new Responding The stored information can be utilized by all service employees opportunities Head Office President employees, so that valuable comments and (divisional level) Privacy Manager Divisions requests that can help us improve our services (appointed by our president) Head-Office Departments Customer Registration General Affairs Division, Head Office Division Information-Management can be shared throughout the Company. Oversight Center Response Information-Management The feedback is examined in detail at cross- System Oversight Center (shared by all Departments/Groups divisional discussion meetings and by division employees) Information Management Leaders representatives. The results of our studies are Regional General Affairs Divisions, Information Management Leaders Regional Offices swiftly reflected by further improvement of our Offices Information Management Section Departments/Groups business processes and services.

Business General Affairs Group, Business Locations Information Management Section Locations Departments/Groups

Information Management Leaders

58 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 59 Social Performance Social Performance

Management and Economic Shareholders and Investors Local Communities Performance

Environmental Performance

Social Performance Shareholders and Investors/ Local Communities

We are working to maintain and increase profit through efficient management and As a company whose businesses are firmly rooted in the Chubu region of Japan, effective investment. We are committed to ensuring a high level of transparency, and to Chubu Electric Power emphasizes communication with all the local communities in the enhancing two-way communication with our shareholders and investors, by Chubu region, aiming to ensure mutual understanding. We are engaged in a wide appropriately and promptly disclosing information on our management/investment range of initiatives that benefit the people of the region, and have also been expanding efforts through investor relations (IR) activities*1. the sphere of our activities to other countries in recent years. Contribution to Society– Helping keep the community safe and secure Raising awareness among top Communication with our management of Group companies shareholders and investors Organization of executive CSR seminar supporting community building drives through gardening welfare activities. This NPO also We maintain a dialogue with our shareholders Gardening welfare initiatives Environmental Management enjoys the participation of local governments and and investors by holding quarterly financial from the Viewpoint of SRI using Bluebonnet briefings and having our managers individually Investors [Seminar] bodies, corporations, universities and other visit shareholders and investors both in Japan and entities that work together to support the Forum’s In December 2006, we held an executive abroad. mission. We will work further to expand the CSR seminar for about 300 of our high- Gardening welfare circle of gardening welfare activities. In order to increase public awareness of our level managers, including management to promote community-building business activities, we also provide tours of our executives and top management from our Group companies, to raise their awareness We are promoting welfare initiatives through power stations and other facilities, and specially URL http://www.wfg-bluebonnet.com/ *1 IR (Investor Relations) of CSR. gardening. As a part of these efforts, we opened a activities: IR activities are tailored company orientations targeting We invited Mizue Tsukushi, President of part of the green area at our Shin-Nagoya aimed at providing prompt individual investors, women, and other specific Nagoya Port Wildflower Garden Bluebonnet The Good Bankers Co., Ltd., to talk about and unbiased information Thermal Power Station to the public as the 42 Shiomi-cho, Minato-ku, Nagoya City groups. the future of environmental management at regarding a company to its Nagoya Port Wildflower Garden, also known by shareholders and investors, We not only disclose our management and corporations from the viewpoint of SRI Phone: +81-52-613-1187 so that these shareholders financial information on our website, but also investors. the nickname Bluebonnet. Our gardening welfare and investors can use the Ms. Tsukushi, who is the creator of “Eco activities are designed to harness the power of information to make accept inquiries from shareholders and investors Fund” — Japan’s first SRI financial product investment decisions. via email. flowers and greenery to alleviate stress, thereby — said that the SRI fund market is contributing to more widespread health and well- *2 IR tools: Our IR tools include expanding in Japan. “The key lies in how being. an annual report companies explain and provide information summarizing the about their efforts to the market. Electric In fiscal year 2006, we organized a number of management and financial Disclosing information condition of the company, power companies in Japan should do more events at the Bluebonnet for senior citizens and and the Investor’s Data to show to the world how they are tackling the handicapped, including flower arrangement Book, a compilation of environmental issues by utilizing their seminars for visitors from social welfare centers, chronological business and We disclose information in accordance with the advanced technologies,” said Ms. Tsukushi. financial data. and handicraft seminars using pressed flowers for Securities and Exchange Law and other relevant The seminar was broadcast to all offices the mentally challenged. We also collaborated *3 SRI (Socially Responsible regulations and ordinances, and the rules for and stations across Japan through our Investment): SRI is an timely disclosure stipulated by the stock internal TV network, and the employees with NPOs, and other bodies to organize investment method that takes exchanges where we are listed. We also actively listened to the speech with great interest to symposiums, friendship events and other into account a company’s gain valuable insights. approach to social publish information that we deem will be useful programs to further promote the spirit of responsibilities – including gardening welfare. addressing environmental to our shareholders and investors via a wide In recent years, local governments have also issues – as well as the range of IR tools*2, including our website. company’s financial introduced the concept of gardening welfare as evaluation. means of community-building. We are lending a Flower arrangement seminar hosted at Bluebonnet for seniors visiting from social Evaluation by SRI*3 hand in the planning and execution of these welfare centers. rating agency programs. One specific initiative worth mentioning is our participation in the launch of Our stock is one of the 150 stocks added to the the Forum for Building Green, Healthy Morningstar Socially Responsible Investment Communities, an NPO aimed at promoting the index (MS-SRI), a socially responsible concept of gardening welfare through the investment (SRI) index by Morningstar Japan organization of seminars, including training President Tsukushi talks about the viewpoints of SRI investors. K.K. seminars for gardening welfare professionals who act as event coordinators, and also at

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Management and Economic Local Communities Performance

Environmental Performance

Social Performance Local Communities

surgery teams overseas regularly in 1993 as a Support for international part of an international volunteer program. Each Information services that Establishment of AED volunteer programs surgery team consists of a group of doctors from benefit local safety Aichi Gakuin University, as well as other volunteer doctors and students. The Foundation Helping children with cleft lip/palate has sent surgery teams to Mongolia, Vietnam, Contributing to the health of School parents’ network, and Indonesia, among other countries, and community members Kizuna Net Cleft lips or palettes are congenital deformities provided free surgery for around 3,000 patients that occur in one in every 500 babies born. In so far. Many of the cured children and their We have an AED (Automated External Since December 2005, we are offering a service Japan, babies born with cleft lip/palate can families have expressed their sense of gratitude Defibrillator) set up in each business location to called Kizuna Net. This service makes it easy to receive corrective surgery to reduce the exterior and appreciation in return. In addition to the assist our employees, customers and community send email to the mobile phones of parents and deformity. However, in developing countries correction of lip/palate cleft in children, the members in the event of a health emergency. guardians of students in kindergarten, as well as where surgeons and medical facilities capable of Foundation is also engaged in a wide range of Instructions for use are posted on the intranet and students in elementary school and junior high remedying the condition are still limited and the other volunteer programs, including free dental AED seminars are conducted in rotation to make school, and other children. Thanks to this corrective surgery itself is expensive for a treatment, technical guidance for local medical majority of citizens, many children are unable to professionals, and donation of medical sure employees will know how to use the device service, schools can contact registered parents receive proper treatment. equipment. when necessary. We are also building an quickly by sending urgent information, such as To provide assistance to children with cleft These activities by the Foundation have been environment where the AED can be quickly put notices that their children are leaving school lip/palate, as well as their families, in January recognized around the world. In 2000, the into operation should emergency medical aid earlier upon the issuance of a heavy-rain or other 1992 the Japanese Cleft Palate Foundation was Foundation received the Welfare Minister’s become necessary. warning. established in Nagoya through a collaborative Award from Mongolia and the Order of effort of oral and maxillofacial Humanitarian Assistance from the Socialist Providing localized mobile surgeons at the Dentistry Republic of Vietnam. In 2006, the Foundation information services with Department of Aichi Gakuin received the coveted Public Health Award in Poketchu! University, as well as other Japan, which is sponsored by a leading life medical professionals and insurance company and given to an organization Since 2005, we have been operating an accident supporting corporations. Chubu that has made a contribution to the improvement and crime information service called Patonet Electric Power has been of public health. These recognitions are proof of Aichi (Patrol Net Aichi) jointly with the Aichi cooperating with the Foundation the far-reaching, important medical contributions Prefecture Police Department. The number of since its establishment, and the Foundation has made in the global registered users exceeded 40,000 as of the end of Chairman Kawaguchi has been community. fiscal year 2006. This service contributes to serving as President of the URL http://www.aichi-gakuin.ac.jp/̃jcpf community safety by alerting residents to Foundation since 2005. Japanese Cleft Palate Foundation, a designated Overseas surgery team in Vietnam (Foundation President The Foundation began sending non-profit organization incidences of crime. Kawaguchi at the center behind a local family)

Employees of Nakatsugawa Sales Office receive instructions on emergency life-saving techniques. Support for raising children specific activities in which Chubu Electric Power with developmental disorders is involved include featuring articles on Initiatives by our Group Companies Collaboration with supporting developmentally challenged children the Asperger Society Japan in Enchante, a life information newsletter published by Chubu Electric Power, and also in Chubu Electric Power is working with the Donation of crime-watch patrol vehicles the cultural magazine Koryu. We offer the EIRAKU AUTO SERVICE Co., Ltd. Asperger Society Japan, a designated non-profit premises of our sales offices for various events, EIRAKU AUTO SERVICE, a member of the Chubu Electric Power organization (NPO), to promote joint projects such as family cooking classes and recreational Group, provides a car rental service that helps companies improve aimed at supporting children with developmental activities, and invite interested families to join. their efficiency and allows individuals to enjoy driving. In June 2006, disorders and other problems that create child- These events provide valuable opportunities for EIRAKU AUTO SERVICE donated three vehicles to a conference rearing difficulties. The Society provides a wide of local school districts to cooperate in the effort to build a better the affected children and families to exchange range of support to children/adolescents with community. These vehicles are used as patrol vehicles by the information with others in similar situations. developmental disorders to help them live an crime-watch patrol teams in each school district to conduct safety LOOK! P. 6 patrols for school children and the community at large. independent life, by offering assistance to the children themselves and their families. The URL http://www.eiraku-car.co.jp/ (Website of EIRAKU AUTO SERVICE)

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Management and Economic Local Communities Performance

Environmental Performance

Social Performance Local Communities

Supporting the Leaders of Tomorrow Contribution to Community Culture

The future of a community depends on its and science. These facilities are open to all As a corporation maintaining close ties with the the cultural development of tomorrow’s Japan. Sponsorship of science children. At Chubu Electric Power, we provide a community members. community where it operates, Chubu Electric In March 2007, 40 brass band members from information program wide range of education and support programs to HP > Learn More about Electricity Power aspires to contribute to the transmission of four high schools in Aichi Prefecture finally make children interested in environmental and > Guide to PR Exhibition Facilities traditional culture and art, as well as the creation realized their dream, after many months of To help children realize the fun of science, we are energy issues. We will continue to work with of new cultural movements. We will assist our practice, of giving a joint concert with Nagoya sponsoring “Denjiro’s younger generations to ensure a bright future for Electric Kids Series community in further developing its culture and Philharmonic Orchestra members to an audience Sunday Experiment corporations and society. (wall posters) tradition, which are common assets shared by all of around 2,000 at the Century Hall in the Laboratory, Love Labo!,” a citizens, so that the community will become Nagoya Congress Center. This is the eighth such science information program broadcast on Since the company was founded in 1951, we richer and more vibrant. event sponsored by Chubu Electric Power. Chukyo TV, as a “traveling Traveling classroom have issued “Electric Kids Series” wall posters Sponsorship of joint concert The joint concert program provides great classroom” utilizing TV that focus on the hows and whys of science to opportunities for high school musicians to media. by Nagoya Philharmonic In response to requests from elementary and help instill children with a scientific curiosity. receive instructions directly from Nagoya Science producer Denjiro Orchestra and high school Yonemura conducts fun- junior high schools, we send our employees to Each year, we deliver 10 different posters to Philharmonic Orchestra members during joint filled experiments to reveal schools to hold classes devoted to electricity about 3,300 locations in our service area, brass bands practice sessions. the mysteries of science. experiments, the environment, and energy. including elementary schools and libraries. We organized a joint concert by Nagoya • Number of classes: 647 for 24,238 students Philharmonic Orchestra and high school students (actual, FY2006) as a part of our effort to support the music Support for Nagoya Student activities of high school students who will lead Film Festival

We are supporting the Nagoya Student Film Festival, organized by local university students in the Nagoya area, to help showcase the creativity and inspiration of local youths to the nation. This film festival features screening of a variety of movies and short films produced by the Activities of the Chubu members of film circles at eight universities. Educational Advancement The latest festival was held over two days in Foundation March 2007, and around 370 visitors enjoyed Scene from a traveling classroom. An instructor observes watching 25 movies. children working seriously on their project. The Chubu Educational Advancement Joint concert by Nagoya Philharmonic Orchestra and high school students Foundation was established with the aim of Tours of workplaces promoting elementary and junior high school Activities of employee volunteer organization “Fairy Lights Club*1” and facilities education. The Foundation helps children develop their creativity through a wide range of The “Fairy Lights Club” was organized in 1991 as have performed volunteer work in areas affected *1 “Fairy Lights Club”: The Club In response to requests from elementary and educational programs, and also conducts art and a part of our social contribution activities, and is by disasters and taken part in clean-up was named after its founding junior high schools, we conduct tours of sales culture programs that cultivate imagination and open to all employees. The “Fairy Lights Club” campaigns in the vicinity of our business philosophy, of promoting was named after its founding philosophy of locations as well as at public facilities. The scope offices, power stations, and other facilities. empathy in children. understanding and promoting understanding and compassionate of the Club’s activities is growing, along with an compassionate collaboration • Number of tours: 284 for 4,581 students collaboration among employees by connecting increase in the number of participants. among employees by (actual, FY2006) the good intentions of each individual (a single In fiscal year 2006, the Club carried out clean-up connecting the good URL http://www.chuden-edu.or.jp/ light) to create a large circle of goodwill (bright campaigns around our offices and stations, and intentions of each individual We have exhibition facilities where children can Activities of the Chubu Educational illumination). It provides information on volunteer in August it participated in the removal of earth (a single light) to create a enjoy learning about the environment, energy, Advancement Foundation programs to encourage participation by other and sand in parts of Okaya City, Nagano large circle of goodwill (bright employees. Prefecture that had been hit by torrential rains. illumination). Since its organization, the members of the Club

64 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 65 Social Performance Social Performance

Management and Economic Business Partners Employees Performance

Environmental Performance

Social Performance Business Partners Employees

We are committed to building a solid foundation of trust with our business partners We employ a diversity of people to promote equal opportunity and also because we through communication as well as fair and honest dealings, and carrying out CSR recognize individual capability and aptitude. We also strive to create a corporate culture procurement activities in partnership with our business partners. that enables each of our employees to fully exercise his or her skills. We have built an employment system aimed at maintaining an optimal balance between work and home, and between work and the community. We offer support so that each employee can work safely and in good health. In partnership with Respect for human rights and equal opportunity Basic procurement policy our business partners awareness of harassment issues. In addition, we have set up a “Harassment Hotline,” as well as We have a basic procurement policy that We hold our business partners in high regard and Respect for human rights various other systems to prevent harassment, specifies total compliance, safety assurance, and recognize that they aim to develop and grow such as retaining an external clinical mitigation of environmental burden, in line with together with us. We are also committed to We are working to create a workplace where psychologist, social welfare nurses and other our CSR mission. All our procurement activities fostering a relationship of trust with our business each employee can work with enthusiasm and professionals to work on company premises. Presentation to business are carried out in accordance with this policy. partners, strengthening our partnerships, and satisfaction, taking into account the rights of partners (April 2007) collaboratively fulfilling our corporate social individuals and respect for diversity. To this end, Employment of individuals responsibility. we put in place the Individual Rights Awareness We are asking all of our business partners to with physical challenges Promotion Committee, and published our CSR Basic Procurement Policy understand our basic procurement policy and Declaration and Eight Action Guidelines on We are actively committed to hiring physically practice the following six items: *1 Exceptional subsidiary: The Compliance, to spell out our commitment to challenged individuals to support their employees of subsidiaries 1. Total Compliance respecting the rights and dignity of our independence in society. incorporated with special · We perform our work duties in strict compliance with all laws, rules and What we ask of our partners consideration for hiring employees as individuals. Active programs are Group company Chuden Wing Co., Ltd. opens corporate ethics. 1. Total Compliance physically challenged · We practice respect for human rights (prohibit child labor and forced or being implemented to ingrain the concept of new employment opportunities for physically individuals can be 2. Safety Assurance considered employees of the compulsory labor, avoid discrimination, etc.), carefully manage personal individual rights in our staff. challenged persons, and is certified as an and confidential information, protect intellectual property rights, and so on. 3. Mitigation of Environmental Burden parent company for purposes 1 2. Safety Assurance As a part of our initiative to raise awareness of exceptional subsidiary* . The 33 physically of legal hiring requirements, 4. Cost-Cutting Endeavors if they meet certain criteria. · Understanding that safety takes priority over all else, we endeavor to the importance of individual rights, we provide challenged employees*2 and 12 other staff Such subsidiaries are called prevent occupational accidents and injuries and ensure public health and 5. Maintained High Quality Level of Service in-house training on such rights issues as social members combine their capabilities in businesses “exceptional subsidiaries.” safety. 6. Work in Partnership discrimination on the basis of ancestry (caste), such as design and printing, marketing novelties 3. Mitigate Environmental Burden In fiscal year 2006, we conducted a survey on the *2 Physically challenged · Cooperating with our suppliers, we work to mitigate environmental burden handicaps, race, ethnicity, gender, and so on to and gifts, gardening*3, and document delivery. status of CSR activities by our business partners. persons: This encompasses by practicing green procurement, among other measures, and help promote understanding and awareness among our Including Chuden Wing, as of June 1, 2007, the individuals born with either establish a recycling society. Starting from fiscal year 2007, we are also physical or mental employees on these issues. We are also percentage of our physically challenged 4. Open Door Policy organizing a presentation to business partners to disabilities, or both. · We provide access to both Japanese and foreign companies, based on promoting awareness programs to coincide with employees is 1.95%, meeting the legal explain key information regarding our *3 Gardening business: We our open door policy, so that we may do business with suppliers with Gender Equality Week, Human Rights Week, requirements. prepare soil, sow seeds, superior technical expertise who can provide quality products and management plan and material procurement and other key national and international drives on grow saplings and plants, satisfactory service. activities. The first presentation was attended by the rights of the individual, and by actively Establishment of good and arrange the beautiful, 5. Fair and Honest Procurement 300 representatives from around 180 companies. carefully-grown flowers and · We conduct fair and honest business transactions for the procurement of sending our employees to participate in external labor-management relations plants in flower gardens and We have established a point of contact in our materials, equipment and so on, basing our decisions on economic seminars on rights issues. planters. We also carry out rationality while assessing each supplier comprehensively for its prices, head-office procurement division. Using this maintenance, such as Chubu Electric Power and its Labor Union*4 product quality, performance, safety, ability to meet delivery and link, business partners can consult with us on Establishment of a point of contact watering, fertilizing, weeding, construction deadlines, after-sale service, technical expertise, production engage as equals in collective negotiation on and replanting. parts and materials transactions in general. The capacity, business administration, safety management system and stance We have set up the Personnel Consultation matters such as working conditions and annual *4 Labor Union: Our employees, on corporate social responsibility (CSR), among others. aim of this point of contact is to enhance Office as a point of contact for employees on bonuses. They also confer on matters related to except those representing 6. Work in Partnership communication with our partners. Please see the the corporate interest, are various issues regarding personnel matters, business operations. · At Chubu Electric Power, we regard each of our suppliers as an important section entitled “Procurement” on our website required to join the Chubu partner with whom we seek mutual growth. including questions they might have about the We hold meetings to encourage the free Electric Power Labor Union for details. · Through open communication and fair and sincere transactions with our activities we are implementing in this area. We exchange of ideas between our executives and in accordance with the labor partner suppliers, we form stronger trust-based relationships and seek to agreement. (Union shop cooperate with our suppliers to contribute to the sustainable development also provide various training programs to the labor union on subjects such as management system) of society. increase understanding and acknowledgment of policy, in order to maintain ties of mutual HP > Corporate Information > Procurement harassment and utilize the intranet to raise understanding and communication.

66 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 67 Social Performance Social Performance

Management and Economic Employees Performance

Environmental Performance

Social Performance Employees

Ensuring continuous employment Balancing Work and Personal Life

General Business We are offering various support systems to allow Personal Support System, whereby employees Action Plan At Chubu Electric Power, we provide rehiring of employees who have reached the age our employees to demonstrate their talents at can receive opportunities for employees to improve their job of mandatory retirement as “senior staff” in order work, while also enjoying a fruitful life at home, subsidies on expenses paid for childcare We are actively skills, and support motivated employees to to make broad use of their knowledge, skills, and so that we can fulfill our obligation as a good facilities, care facilities and other assistance committed to further their career. We also have a program to experience. In April 2006, we revised this system corporate citizen. services. achieving the allow retired employees to work on a contract in order to more actively utilize the resources targets of our five- basis. offered by senior citizens. Under the new system, year General we seek to employ senior staff in positions Balancing work Enhancement of Business Action requiring high levels of expert knowledge and and personal life personal support leave Plan (April 2005 to Open recruitment system March 2010), in skills, a certain level of experience, and jobs with accordance with the set duties. As of the end of fiscal year 2006, we In October 2005, we revised our work system by We support active efforts by our employees to Basic Law for a In April 2002, we established the “Open employ 173 senior staff in various positions. introducing a planned holiday and designated fulfill their roles as members of their families Gender-Equal Recruitment System” allowing highly motivated Career and skills development work program, to allow our employees to balance and communities. Our personal support leave Society and the Law employees to demonstrate their talents in new based on individual their work and personal life and also encourage program allows employees to take leave to for Measures to business fields. target management them to participate in community activities. The recover from an injury or illness, nurse a sick or Support Youth In order to transfer our employees based on their aim of this program is to specify flexible work injured child, volunteer, register as a donor, Development. desires and initiative, we implemented this In April 2003, we introduced a framework based days and working hours, based on the obtain an official certification or otherwise system for transfers to the sales field in February on a voluntary target-management program into individual's preferences and in keeping with the advance their education and qualifications, or for 2003, and to other divisions in April 2004. our human resources and wage system. The aim work situation, enhancing both our ability to plan other personal reasons. As of the end of fiscal year 2006, there had been of the framework is for each employee to set the execution of work and employees' home 560 applicants, and 260 of them had been ambitious targets, in order to harness the lives. transferred to other divisions. motivation and autonomy of each employee and Conducting employee compensate employees based on performance. Support for balancing child satisfaction surveys Ensuring employment Performance evaluation is conducted at the end rearing and nursing care opportunities after retirement of each period in the form of an interview, where with work We conduct employee-satisfaction surveys as a the supervisor evaluates each employee’s mechanism to get feedback from our employees. Utilization of post-retirement achievements, attitude, and demonstrated skills, Our childcare leave program*1 allows employees In fiscal year 2006, we utilized the intranet to employment support program and by also considering the employee’s self- to take leave until their child reaches the age of conduct surveys to measure and study our In April 2004, we instituted a scheme for post- evaluation. 18 months, or the last day of the fiscal year in employees’ work satisfaction and workload in retirement employment named “Second Life which the child turns one year of age, whichever the four categories: Work, Workplace, Challenge.” The object is to assist employees in Human resource development is later. Supervisor(s) and the Company. their endeavors to find new work or go into Training & Education We also have a shortened working-hour program We are also improving our survey method by business after age 60. that is available to employees until the last day of adding questions to the questionnaire we employ. In addition to giving employees aged 60 or over We have a diverse set of human resource the fiscal year in which their child turns six years The questions relate to CSR, such as matters of development programs designed to allow each introductory training as an opportunity to think of age. individual rights and ensuring harmony with [Related data] about their life plans, we also offer subsidies to employee to recognize his or her roles in the Our long-term care/nursing care leave program*2 local communities. The results of our latest *1 In fiscal year 2006, 113 organization and strive to enhance their skills and employees utilized our attend training and classes outside the company, allows employees to take up to two years of leave surveys show that employee satisfaction is childcare leave program. as well as leave to attend educational institutions. abilities with a sense of motivation. These if they must provide long-term or nursing care to improving slightly, and our employees are also programs include specific education programs *2 In fiscal year 2006, 10 As of the end of fiscal year 2006, about 722 a family member. This program is also designed feeling less pressure from work, compared with employees utilized our long- employees have utilized this scheme (number of for employees of different levels, programs to alleviate the financial burden on employees the previous year’s results. term care/nursing care leave program. employees taking training courses). designed to pass on/master technical skills, and providing long-term and nursing care by paying a We will analyze the results of the survey further on-the-job training programs, as well as Re-employment system portion of the employee’s salary while he or she to devise and implement necessary measures. programs that focus on communication skills. Harnessing the power of senior staff is taking leave under this program. In April 2002, we established a system for the In fiscal year 2007, we will introduce the

68 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 69 Social Performance Social Performance

Management and Economic Employees Performance

Environmental Performance

Social Performance Employees Building a corporate culture where diverse employees can fully demonstrate their unique talents Labor Safety and Well-Being Female staff project initiatives

Key policy components of For Chubu Electric Power to survive in an increasingly competitive energy market our companywide policy crammed with new entrants from various industries and segments, and to remain a Operation of Company Vehicles*1 and a Safe safety and well-being campaign (fiscal year 2007) company trusted by its customers and providing a rewarding work environment for its Group-wide activities on Driving Trainer System*2. employees, it is imperative that we build a corporate culture where our diverse workforce – safety and well-being Keynote speech by Chairman consisting of male and female employees of all ages and different attributes – can Rigorous safety instruction 1. Safety Hayashi of Daiei, Inc. demonstrate their unique talents. for contractors (1) When driving Eliminate traffic Three pillars based on the three pillars of: creation of Safety and well-being To eradicate accidents among contractors, we accidents by always checking Creation of opportunities for Utilization and promotion opportunities for female employees to female employees to campaign policies hold ad-hoc conferences composed of the units in safety. demonstrate their abilities of female staff demonstrate their abilities; awareness reform charge of safety and those handling the execution (2) At work We will appoint more women to the Eliminate work- various positions in each division and improvement of support systems, and; To promote comprehensive safety and well- of necessary work based on safety campaign by training female staff as related accidents specialists. We will focus on those At Chubu Electric Power, we believe the collaboration with external organizations. being, we convene an annual ad-hoc committee policies. We prepare guidelines to counsel by observing basic positions where a woman's rules without fail. viewpoint will provide new insight utilization and promotion of female The project will also reflect the current state to consult on and determine the direction of contractors on accident prevention, and furnish and greater value. 2. Well-being employees is a top-priority management of Chubu Electric Power and specific issues company-wide safety and well-being activities them with thorough safety instruction. (1) Mental health care Awareness reform and improvement of support issue. As such, we are driving a project to facing the company. based on opinions from the regional offices and measures systems (2) Physical health We will implement various promote the greater utilization of our female supervisory units. care measures measures (through improvement of Promotion of personnel/education systems) that staff, aimed at fostering a corporate culture Organization of In accordance with the committee guidelines, the (3) Measures to will allow individuals, both men and mental and physical health prevent health women, to fully demonstrate their where female employees can fully kickoff event regional offices formulate their own guidelines, problems due to abilities in order to further their overwork career. demonstrate their abilities, while infusing and the locations make plans for implementation. External collaboration energy into the organization by utilizing For the project to succeed, changing the Performance of the PDCA cycle on an annual As a company firmly rooted in the Promoting mental health *1 Driver’s License System for “woman power.” corporate culture and mindset of individual basis is linked to more effective measures. community where it operates, Operation of Company Chubu Electric Power will create venues for local corporations in the In July 2007, we established a dedicate employees is crucial. Accordingly, we Carrying on from the previous year, in fiscal year Vehicles: Established in Chubu area to exchange section within the Personnel Division to organized a kickoff event in April 2007 to 2006 we continued to position the treatment of 1979, this system requires information regarding the utilization Group-wide safety and employees to receive the and promotion of female staff, and promote greater utilization of our female communicate the aim and activities of the 3 balancing work with personal life, well-being activities mental illnesses* as one of our top priorities. As prescribed training and and also organize activities staff. project to all employees and obtain their such, we expanded our measures to cover obtain a license in order to (workshops, seminars, etc.) with a drive company vehicles. focus on these areas. understanding. We invited Fumiko Hayashi, To promote the development of labor welfare primary prevention (prevention of symptoms), Snapshot of Chubu The three pillars of the then chairman of Daiei, Inc., to present a throughout the Group, we organized a council on while firmly establishing secondary and tertiary *2 Safe Driving Trainer System: the project to promote At each location, “Chief Safe Electric Power keynote speech entitled “Developing the safety and well-being among Group companies greater use of female staff prevention measures. Specifically, we stepped up Driving Trainers” are Of our 16,025 employees, 1,552 designated, who have been (9.7%) are women. We have 60 future of business – Harnessing the synergy and are taking various steps on this front. the education of managers and on-site health women in management positions. The project will be carried out in stages from the collaboration between men and Convening about four times a year, the council specially trained to provide (Both figures are as of the end of professionals on detection of and response to instructions in safe driving. fiscal year 2006.) under medium and long-term action plans women in the workforce.” A workshop, facilitates close communication among Group symptoms, and provided useful tips on how to As the key persons for traffic followed by a panel discussion, was also held companies, and works to prevent accidents, release and reduce stress on the intranet and safety instruction at the facilities, they take various on expanding the role of women in the disease, and injury through publicity and through other means. steps to prevent accidents. workplace. consciousness raising activities on safety and *3 Treatment of mental health management, such as joint patrols and Promoting physical health illnesses: Establishment of seminars. •Primary prevention (health enhancement and Chubu Diversity Net We provide health information on a regular basis prevention of disease and ingrain the mindset of “independent health development) In January 2007, we established the Chubu Efforts to eliminate accidents •Secondary prevention (early management” in our employees by encouraging detection and early Diversity Net together with INAX them to follow up after each health examination, treatment of disease) Corporation, Toyota Tsusho Corporation and each incidence of a disease, or each accident. •Tertiary prevention (promotion of swift Denso Corporation, as a venue for local Efforts to promote traffic safety reinstatement of workers companies to exchange information on and prevention of recurrence of disease) specific efforts to promote collaboration on To prevent accidents, we are implementing Around 150 participants in the workshop, held as a part of the kickoff event, engaged in workforce diversity. various measures designed to promote traffi animated discussion. safety, such as the Driver’s License System for

70 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 71 External Feedback

Opinions exchanged with Mie University Stakeholder Dialogues on how to build a sustainable society

In September 2005, we signed a framework • Clear links should be provided between In addition to explaining our CSR efforts in a • There is not enough explanation about cooperation agreement with Mie University. The the items included in the scope of the CSR clear manner to community members, it is also nuclear power generation, such as the aim of this agreement is to contribute to the Declaration and items described in the report, along with relevant actions. vital to maintain two-way communication with need to promote nuclear energy. sustainable development of local communities by them to receive feedback that we can utilize in The management/economic report includes a expanding our research collaboration with the Our efforts and policies regarding the basic future environmental management. summary of our approach and topics regarding university, currently focused on the science and philosophies spelled out in our CSR Declaration, On March 6, 2007 we held our third Stakeholder nuclear power. engineering fields, to a wider range of fields such as safety, stable supply and compliance, are Dialogue, attended by around 20 people, LOOK! including the arts and humanities. We will explained in a dedicated section in an earlier part including representatives from consumer groups P. 22 - 25 further collaborate with the university in various of the report. We also describe our efforts in and environment-related NPOs in the Nagoya areas, such as education on the environment and relation to each stakeholder group defined in our area and its suburbs as well as environmental • Are there more specific measures to energy. CSR Declaration to explain the specific actions representatives from local corporations. achieve the reduction target for CO2 The key focus of the dialogue, which was emissions? In October 2006, Mie University issued its taken. inaugural Environmental Report 2006 in line centered on the theme “Reading Chubu Electric We will work actively and steadily toward Power’s CSR Report 2006,” was to discuss the improving the utilization of nuclear power with its USR (University Social Responsibility) • There are sections where the descriptions actions Chubu Electric Power must take to meet stations, developing high-efficiency LNG mission to fulfill the university’s responsibility to are too general. They should be its societal expectations and fulfill its thermal power generation systems, and utilizing help create a sustainable society. In line with this, accompanied by specific examples and explanations. responsibilities. After reading the report, the the Kyoto mechanisms. we held an event to exchange opinions with participants presented their feedback on the LOOK! P. 38 university students and faculties on how we can We will continue to improve the report by report, followed by a Q&A session. The contribute to the building of a sustainable using specific descriptions and incorporating participants also engaged in discussions as to society, based on the aforementioned report and examples. what they would expect from Chubu Electric • What is your view of promoting Chubu Electric Power’s CSR Report 2006. Power in the area of social contribution, among collaboration with NPOs and so on? Sharing the common goal of contributing to • The report will be more convincing if others. We will promote collaboration with NPOs communities, specific examples are provided on how the and so on through various activities such as the Key opinions and our actions Mie University and Chubu Electric Power agreed results of activities led to further “Chuden Eco Partnership” started in 2006. improvement or new initiatives. to collaborate on promoting the establishment of • There is so much content and the typeface LOOK! P. 4 - 7, 54 USR and CSR frameworks. We will continue to introduce examples of is small. There are also many technical terms. Enlarge the font size of notes and instances when the results of internal and main text to make the report easier to • There is no mention of CSR activities Comments on Chubu Electric external studies and so on led to improvements. read. – such as social contribution programs Power’s CSR Report We will also incorporate the progress of ongoing – implemented outside Japan. The style was changed from the triple- activities, including any changes made. column to double-column page layout to make We are cooperating to improve the We also received the following comments on our the contents easier to read. Also, the font size of environment in other countries through CSR Report: notes was enlarged and their positions were consulting activities. We are also actively • Utilize the CSR Report within Chubu changed. participating in environment-related overseas projects. Electric Power and follow up on the feedback. LOOK! P. 56 • Quantitative and qualitative measures The CSR Report 2006 was distributed to all should also be stipulated for social employees as a means to communicate our contribution activities, like the measures environmental efforts and conditions. Some of stipulated under the environmental action the feedback received from our employees is plan. reflected in the report 2007. We will further We will examine various standards used by Mie University students visited our booth at Messe utilize the report and continue to follow up on the other corporations to set our CSR targets. Nagoya (October 2006) as a part of the information feedback we receive to improve the report exchange program. further.

72 2007 Chubu Electric Power CSR Report 2007 Chubu Electric Power CSR Report 73 Third-party Views

To make our CSR report more readable, we had three consumer life advisors check the terminology, language, graphics, and other aspects of our 2007 Chubu Electric Power CSR Report.

Remarks on CSR Report 2007

Electricity is a safe, convenient form of energy we cannot straightforward descriptions of the issues and the present live without. Even without using the word “CSR,” status on these activities. consumers are already paying attention to how electric power companies are managing their operations. Global The report is divided into multiple sections corresponding warming is receiving growing attention as a problem to key categories to help readers organize the contents affecting things closer to home, and consumer’s interest better. It is commendable that you have listened to, and in this issue will only increase. acted upon, the feedback from independent sources and In addition, consumers are observing corporations with third parties on the previous report, such as explaining the critical eyes in the aftermath of a series of unnerving terms in margins and reducing the volume of text. As events such as product defects leading to accidents, as representatives of the public, we will continue to actively well as corporate scandals. We will be monitoring you monitor your future reports, with great interest, to see closely to see how you respond to our concerns. how you will utilize the feedback received from many stakeholders of Chubu Electric Power. In this report, we can see that, in your effort to achieve a stable supply of electricity, you are also committed to disclosing negative information. For example, there is a detailed summary about the problems experienced by Hamaoka Nuclear Power Station Unit 5, including the cause, current status, and future outlook, to preemptively ease any shareholder anxiety that might arise from a lack of information. On the other hand, however, certain issues such as data manipulation (non-compliance event at power stations) are not explained in detail in terms of their background and facts. We expect you to continue working to establish a system whereby the accountability Two consumer life advisors and a consultant discuss the CSR rules relating to the disclosure of all information report with our editorial board accurately and promptly will be observed unfailingly, so as to properly communicate the facts to the public. This CSR Report describes the status of efforts by a The section at the beginning, where you explain your company that has a significant impact on the global efforts to achieve continuous growth with emphasis on environment. We hope that our feedback will help create diversity to create an “open corporate culture,” is an even better report that more people will take an interest refreshing. We hope to see more active efforts to promote in, and want to read. CSR-focused procurement activities, internal measures to provide more opportunities for women, and harnessing environmental activities. Collaboration with citizen’s groups and development of energy solutions will certainly provide Chubu Electric Power with new insights as well as greater opportunities to communicate with society at large. We like the segment on the “Chuden Eco ■Consumer life advisors ■Consumer life consultant Partnership,” which is provided as an example of one such effort, as it is accompanied by illustrations and Emi Nakabe Tomoko Fujiwara Kiyono Hayakawa

74 2007 Chubu Electric Power CSR Report

Schematic Diagram Of Chubu Electric Power System (as of the end of March 2007)

Shin-Hokushin

Tied to Hokuriku Electric Power Company

Tied to Tokyo Minami- Electric Power Toshin Fukumitsu Linkage Station Company

Kita-Matsumoto Saku Shin-Shinano

Chushin Shinano Etsumi trunk line Takane-Daiichi

Nagano

Shinano trunk line Mazegawa-Daiichi

Okumino Mazegawa-Daini Yokoyama Gifu Aigi trunk line

Gihoku Nanshin Sangi trunk line Tobu trunk line Hokubu Seibu trunk line Shin-Kamiasou Nanshin trunk line Chuno

Seki Seino Toyone Yasuoka Aichi Mie Higashi Inuyama trunk line Oumi line Meijo Dengen Tied to Kansai Electric Nagoya Hatanagi-Daiichi Power Company Ama Okuyahagi- Mie Seibu Minami-Buhei Yahagi-Daiichi Daini Hiraoka Hatanagi-Daini Matsugae Seto Umemori Okuyahagi- Ikawa Nishi-Owari Shimohiroi Kita- Toyota Daiichi Toyone Shin- Kanayama Okuizumi Nishi-Nagoya Shin-Toyone NagoyaHigashi- Tied to Tokyo Nishi- Nagoya Tobu Electric Power Kawagoe Tied to Tokyo Oigawa 154 kV Nagoya Miyoshi Toei trunk line Electric Power Company Tokai Company Chita- Higashi-Toyota Toei Sakuma Kawane Daini Yokkaichi Higashiura Shin-mikawa trunk line Suruga Shizuoka trunk line Higashi-Shimizu (FC*) Chita Nukata Shin- Mikawa Sunnen Shizuoka Abe trunk line 154 kV Shin-Suzuka Kawaguchi Hekinan Taketoyo Koda Mikawa Tohtoumi Sunnen Daini-Hamaoka trunk line Chusei Hamaoka trunk line Kosai

Tahara Shin-Sakura Atsumi Hamaoka Nansei

Ise

Substations (275 kV or more system) External substations Switching stations External hydroelectric (275 kV or more system) power stations Thermal power stations (with internal 500 kV External Owase-Mita Ikehara combustion power generator) transmission line Hydroelectric power 275 kV External stations (50 MW or more) transmission line Nuclear power station *: Frequency converter

500 kV Transmission

275 kV Transmission

Main Business Locations Headquarters 1 Toshin-cho, Higashi-ku, Nagoya City 461-8680, Japan Phone: +81-52-951-8211 Nagoya Regional Office 2-12-14 Chiyoda, Naka-ku, Nagoya City 460-8310, Japan Phone: +81-52-243-9100 Shizuoka Regional Office 2-4-1 Hontori, Shizuoka City 420-8733, Japan Phone: +81-54-255-1111 Mie Regional Office 2-21 Marunouchi, Tsu City 514-8558, Japan Phone: +81-59-226-5555 Gifu Regional Office 2-5 Mieji-cho, Gifu City 500-8707, Japan Phone: +81-58-265-1122 Nagano Regional Office 18 Yanagimachi, Nagano City 380-0805, Japan Phone: +81-26-232-9060 Okazaki Regional Office 7 Aza daidouhigashi Tozaki-cho, Okazaki City 444-8606, Japan Phone: +81-564-55-5005 Tokyo Regional Office 5th Floor, Nippon Press Center Building, 2-2-1 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan Phone: +81-3-3501-5101 Washington Office 900 17th Street N.W., Suite 1220 Washington, D.C. 20006, U.S.A. Phone: +1-202-775-1960 London Office Nightingale House GF, 65 Curzon Street, London W1j 8PE, U.K. Phone: +44-20-7409-0142 Bangkok Office Unit 4, 18th Floor, M. Thai Tower, All Seasons Place, 87 Wireless Road, Phatumwan, Bangkok 10330, Thailand Phone: +66-2-654-0688 Doha Office (temporary address) Links Office No.4, Ground Floor, Al Mirqab Tower, Al Corniche P.O. Box 24863, Doha Qatar Phone: +974-4954-607 Recycled paper has been employed for the body of this report, while the front and back covers use paper made from lumber from domestic forest thinning. The report has been Use domestic lumber Forest thinning resources and cut printed with biodegradable soy for healthy trees and clean air CO2 emissions ink, and the “waterless” printing process involved no use of Registration Number A-(1)-060001 K0301090 harmful liquid wastes.

Chubu Electric Power Co., Inc. Produced by the CSR Group, http://www.chuden.co.jp/english/index.html Corporate Planning & Strategy Division Published September 2007 Please visit our website for information updates. E0-12-4-06 700