Tokyo Electric Power 2008 Sustainability Report.Pdf
Introduction
The title of this report, "Sustainability Report 2008: The Earth, People & Energy," expresses the TEPCO Group's commitment to working for a sustainable society by offering superior energy services.
The 2008 report gives an account of the TEPCO Group's CSR initiatives and achievements toward a sustainable society. We hope it would serve as a tool for enhancing communication between the TEPCO Group and all stakeholders who hold an interest in our operations. (Beginning with this 2008 edition, the scope of our report will cover the activities not only of TEPCO, but also of the TEPCO Group.)
To better respond to our stakeholders' concerns and expectations of the TEPCO Group, the 2008 report has been produced in line with the AA1000 Assurance Principles*, which are widely accepted throughout the world as professional principles for creating sustainability reports. Topics to be contained in the report have been selected based on an evaluation of their relevance, from the five perspectives shown below. We have adopted external assessments for some of those perspectives, for greater objectivity.
*AA1000 Assurance Principles The AA1000 series of principles are a set of standards developed by an international NPO called AccountAbility (the Institute of Social and Ethical Accountability). (www.accountability21.net)
The five evaluation perspectives
Evaluation perspective Materials used for reference Evaluation criteria
1 Issues which have a direct and short-term financial impact Annual reports and other such published materials Major issues related to corporate management Issues for which the company has set strategic policies Management plans and other such published 2 materials
Issues deemed important by peer organizations (business CSR reports of domestic and foreign energy 3 peer-based norms) companies
TEPCO Advisory Committee on Environmental Affairs Issues deemed important enough by stakeholders to take Internal and external opinions obtained from Social interests and 4 action (whether now or in the future) questionnaires to readers of this report and by other expectations means Issues deemed to originate from societal norms (These are indicated by regulations in force, future regulations, or GRI guidelines 5 standards and regulations that have become customary, Environmental reporting guidelines, etc. etc.)
※ TEPCO financial information can be found in our Annual Report, and information on TEPCO's environmental initiatives are introduced in the online version of our Environmental Activity Report. Other information sources are also available (see page 59).
Sustainability Report 2008
Period covered FY2007 (April 2007 - March 2008) (This report also contains important information that has occurred outside this time period.) Scope of coverage TEPCO and the 242 companies of the TEPCO Group (see page 19 for a complete list of TEPCO Group companies) ※ Some references may be made to a limited scope only, as will be indicated in relevant sections. Date of publication July 2008 Scheduled date of next publication June 2009 Inquiries Corporate Planning Department, Environmental Department, or Corporate Communications Department Tokyo Electric Power Company, Inc. 1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-8560 Japan Tel : (03) 6373-1111 Fax : (03) 3504-1570 URL: www.tepco.co.jp/en/index-e.html CONTENTS
Management Commitment 4 Impacts of the Niigata-Chuetsu-Oki Earthquake and Actions Taken by the TEPCO Group 6 Executive Summary 2008 12 Providing Dependable Electric Power 14
Reaching for Sustainability TEPCO Group Management Principle 18 Practicing CSR in line with the TEPCO Group Management Principle 20 Corporate Governance 21 Risk Management 22 Information Security and Privacy 23 Compliance with Corporate Ethics 24 Legal Compliance 26 Measures to Prevent the Recurrence of Falsification and Other Improper Handling of Data on Power Generation Facilities 27 FY2007 CSR Activities and Plans for FY2008 28
The TEPCO Group's Environmental Initiatives Feature The TEPCO Group's Initiatives for Renewable Energies 30 Environmental Management 32 Inputs and Outputs in the Electricity Business 34 Environmental Indicators 35 Global Warming Countermeasures ─ Overview 36 ─ Supply-side Initiatives 38 ─ Supply-side Initiatives (Renewable Energies) 40 ─ International Cooperation Initiatives 42 ─ Initiatives with Customers 44 Proper Treatment of Air Pollutants and Hazardous Substances 50 Recycling Resources 51 Natural Environment Conservation 52
The TEPCO Group and the Community Feature Overseas Consultancy Services 54 How to read this report Active Communication with Stakeholders 56 Interaction with Customers 60 ● The following marks indicate that more Interaction with Local Communities 62 information is available on our website. Interaction with Children 64 =www.tepco.co.jp/en/index-e.html Interaction with Business Partners 65 E =www.tepco.co.jp/en/index-e.html > Interaction with Employees Challenges of TEPCO > Environment & 66 Community The TEPCO and Nuclear Power N =www.tepco.co.jp/en/index-e.html > Challenges of TEPCO > Nuclear TEPCO's nuclear power stations 70 Preventing the Recurrence of Data Tampering ● Terms followed by an asterisk (*) are explained and other Improper Handling of Data on Nuclear Power Facilities 71 on the same page. Disclosing Information about Our Nuclear Power Stations 72 ● Opinions and questions from our stakeholders Nuclear Fuel Cycle 74 and TEPCO's replies to them Third Party Opinions ● The mark introduces websites that provide relevant information. (TEPCO Advisory Committee on Environmental Affairs) 76 Communication with readers of the TEPCO Sustainability Report 78 Profile 79 Management Commitment
The TEPCO Group contributes to creating a sustainable society by providing electric power in a safe and stable manner.
We are reinforcing our nuclear power stations so that they will be safe and secure against disasters. TEPCO's Kashiwazaki-Kariwa Nuclear Power Station suffered damage in the Niigata-Chuetsu-Oki Earthquake that struck Japan on July 16, 2007. It was shut down following the earthquake, and remains closed today. We sincerely apologize to the local community and the wider society for causing much concern. We are currently conducting extensive inspections of the entire power station. So far, we have found no visible damage that could undermine the safety of its major facilities. The suspension of operations at the Kashiwazaki-Kariwa Nuclear Power Station has had a serious impact on our fundamental mission as an electric power company to provide a stable supply of electric power, as well as on our efforts to pursue environmental friendliness and economic efficiency. To overcome our current difficulties, we will make Group-wide efforts to transform the power station into one that will remain safe and secure in any disaster. Refer to our website for details of our inspection and restoration activities, and status updates.
We consistently strive to deliver a stable supply of electric power. Electric power is indispensable to modern society. The TEPCO Group's greatest mission is to provide electric power that our customers can use with a sense of security, and contribute to better lifestyles and comfortable environments. Our CSR policy also states that the Group's basic social responsibility is to provide a safe and stable supply of electricity. The Kashiwazaki-Kariwa Nuclear Power Station accounts for roughly 10% of TEPCO's total output capacity and close to 20% of total generated power. However, due to the indefinite suspension of operations at the power station, we are accelerating the schedule for the high-efficiency thermal power plant that is currently under construction, restarting operations at a thermal power plant that has long been out of service, and buying emergency electricity from Masataka Shimizu other power companies, whatever the TEPCO Group can do to President secure stable supplies of electricity. We are also strengthening our Tokyo Electric Power Company predictive and preventive maintenance, to safeguard against disasters and deliver reliable electricity to our customers.
4 We are committed to preventing global We will advance hand-in-hand with warming. society. Global warming is a priority management issue for the The TEPCO Group produces and delivers electricity by TEPCO Group as we are responsible for roughly 10% of total operating power stations, transmission lines, and a host of other
CO2 emissions in Japan. By providing quality electricity that facilities. However, we cannot do so without the cooperation of places minimum burden on the environment, we aim to reduce local communities. Based on an awareness of the significance of
CO2 emissions and play a steady role in addressing the global- strengthening communication with society, we will continue to warming issue. pay heed to the voices of local communities and provide easy-to- To contribute to conserving the global environment, the understand information on a more frequent basis.
TEPCO Group has set a target of reducing the average CO2 emission intensity over the five-year period between FY2008 We have a host of issues that we still must address. We will and FY2012 by 20% compared with FY1990. We realize that tackle them one by one at an appropriate pace that is not too slow, this is an extremely difficult target to achieve, with the closure yet not too fast, so that we may overcome them as early as of the Kashiwazaki-Kariwa Nuclear Power Station. However, possible and regain the trust of society. Through our business of we will do our utmost to achieve our goal, by operating our delivering a stable supply of environmentally friendly, quality nuclear power stations in a safe and stable manner, increasing electricity, the TEPCO Group will continue contributing to thermal efficiency at our thermal power plants, expanding the creating a sustainable society. use of renewable energy sources, and utilizing the Kyoto mechanisms.
Furthermore, we will contribute to reducing CO2 in all areas of society by supporting energy-saving measures in households and offices, promoting electricity use in the transportation sector, and providing diverse energy services.
5 Impacts of the Niigata-Chuetsu-Oki Earthquake and Actions Taken by the TEPCO Group
On July 16, 2007, the Kashiwazaki-Kariwa Nuclear Power Station suffered damage in the Niigata-Chuetsu- Oki Earthquake, and the operation of all units (7 units with a combined capacity of 8,212 MW) was suspended. When the earthquake hit, the most important safety functions of nuclear power plants-"stopping" and "cooling" of nuclear reactors, and "containment" of radioactive substances-functioned automatically as designed, and all units shut down safely. No radiation effect has been confirmed in the surrounding environment, to date. Nevertheless, the suspension of operations at the power station, which accounts for roughly 10% of TEPCO's total output capacity and close to 20% of total generated power, is posing serious consequences on stable supply, the very foundation of management, as well as on financial and environmental aspects. In addition to making Group-wide efforts to inspect and restore the power station, the TEPCO Group is also doing everything possible to secure a stable supply of electricity, and is taking extreme measures to reduce costs in the face of a severe financial situation. With respect to restoration activities, visual in-vessel inspections of nuclear reactors in all the units have been completed in February 2008, and inspections of turbines, generators, and other facilities are now being conducted sequentially. No potential damage to the functions of facilities with high safety significance has been confirmed so far. We will hereafter devote our efforts to implementing restoration work on facilities that are important from the perspectives of disaster prevention and security. With respect to seismic safety improvement activities, we have formulated a design-basis seismic motion (see page 9) for use in seismic designing and seismic safety evaluation of facilities, and are now awaiting the outcome of deliberations by a governmental review panel. The design-basis seismic motion is based on the results of geological surveys conducted up to March 31, 2008 and analysis of earthquake monitoring data, in addition to the latest findings related to earthquakes. We will evaluate seismic safety in reference to this design- basis motion and implement the necessary measures for increasing safety. We will provide easy-to-understand information on the status of inspections and restoration at the power station on an ongoing basis, to regain the understanding and trust of local communities, as well as the wider society.
Updates on the status of the Kashiwazaki-Kariwa Nuclear Power Station are available on our website. N > Kashiwazaki-Kariwa Nuclear Power Station > About Kashiwazaki-Kariwa Nuclear Power Station after the Niigata-Chuetsu-Oki Earthquake
Overview of the Niigata-Chuetsu-Oki Earthquake
Date and time of occurrence : 10:13 am, July 16, 2007 July 16, 2007 (as of 10:28 am) Hypocenter : Area off the shore of the Joetsu and Chuetsu regions 37 degrees 33.4 min. north latitude, 138 degrees 36.5 min. east longitude Depth : 17 km Magnitude : 6.8 Kashiwazaki-Kariwa Nuclear Power Intensity : Intensity 6-upper in Kashiwazaki city, Kariwa village, Station Nagaoka city (Niigata pref.), Iizuna town (Nagano pref.) Distance from the power station : Epicenter 16 km Hypocenter 23 km
Legend: Epicenter Intensity 7 Intensity 6-upper Intensity 6-lower Intensity 5-upper Intensity 5-lower Intensity 4 Intensity 3 Intensity 2 Intensity 1 Source: Japan Meteorological Agency
6 Status of Damage to the Kashiwazaki-Kariwa Nuclear Power Station
Impact of the Earthquake
Maximum acceleration observed in each unit (unit: Gal*) Observation point North-South East-West Vertical Unit 1 311（274） 680（273） 408（235） Unit 2 304（167） 606（167） 282（235） Unit 3 308（192） 384（193） 311（235） Notes: 1. Figures in parentheses are design values of Unit 4 310（193） 492（194） 337（235） acceleration response. 2. All figures are values observed on the base Unit 5 277（249） 442（254） 205（235） mat of each unit's reactor building. *Gal : Unit of acceleration (cm/s2) indicating the Unit 6 271（263） 322（263） 488（235） magnitude of motion of the ground or a building caused by an earthquake, and used to estimate the degree of Unit 7 267（263） 356（263） 355（235） force exerted on a building. 1 Gal = 1cm/sec/sec.
● At the time of the earthquake, Units 3, 4, and 7 were in operation and Unit 2 was in start-up mode, but these units shut down automatically, upon detecting the earthquake. Since the other three units were already shut down for regular inspection, in effect, all units safely entered shut down mode. →The most important safety functions of nuclear reactors-"stopping" and "cooling" of reactors and "containment" of radioactive substances-functioned automatically as designed. ● Inspections conducted so far have found no damage to facilities of high safety significance. Rather, damage mainly occurred to facilities with low safety significance. ● No changes have been observed in the monitoring post or other data since the occurrence of the earthquake. This means that no radiation effect has been confirmed in the surrounding environment. Earthquake-induced Incidents
● 3,427 cases of nonconformance have been confirmed as of May 31, 2008, including 10 incidents subject to reporting to the central and local governments, by decrees and safety agreements. ● The INES* Assessment Sub-Committee within the Nuclear Safety and Security Chapter of the Resources and Energy Study Group of the Ministry of the Economy, Trade and Industry evaluated these 10 incidents, as follows. ＊INES (International Nuclear Event Scale) A universal scale that has been developed to enable concise and subjective communication of the level of danger of accidents and troubles reported at nuclear power stations. (Nuclear events are classified at 8 levels, depending on their seriousness. Higher levels mean greater safety significance.)
Event subject to reporting Number of cases INES evaluation
Leakage※ of water including radioactive material in Unit 6 1 0 minus Water spillage from the spent fuel pool in Units 1 to 7 7 Event has no safety significance nor impact on safety Breakage of the nuclear reactor building ceiling crane in Unit 6 1 Out of scale House transformer fire in Unit 3 1 Event has no relevance to the safety of the nuclear reactor facility
※ The discharged water contained about 90,000 Bq of radioactivity emitting an effective radiation dose of about 0.000000002 mSv (1/1,000,000,000 of the radiation an average person is exposed to annually from natural sources).
Assessment by the International Atomic Energy Agency (IAEA) TEPCO has twice received an expert mission from the International Atomic Energy Agency (IAEA) to investigate impacts of the Niigata- Chuetsu-Oki Earthquake on the Kashiwazaki-Kariwa Nuclear Power Station. From August 6 to 10, 2007, the first mission surveyed the state of damage to the power station. From January 28 to February 1, 2008, a follow-up mission held discussions with Japanese experts on the results of examinations conducted by Japanese organizations on the integrity of nuclear facilities, seismic safety, and disaster prevention measures, and inspected the condition inside the reactors. The two missions reported the following. ・"The power station shut down safely as designed, and damage was less than expected." (First mission) ・The findings of the previous mission in August 2007, such as that there appears to be no significant damage to safety-critical equipment, were confirmed by the present mission. (Follow-up mission) ・Since the previous mission, there has been a very significant amount of high-quality work performed with the participation of recognized institutions specializing in earthquake engineering and nuclear safety, making the process highly transparent. (Follow-up mission) (Excerpted from the press announcement issued by the Nuclear and Industrial Safety Agency)
7 Impacts of the Niigata-Chuetsu-Oki Earthquake and Actions Taken by the TEPCO Group
Restoration Efforts
At the Kashiwazaki-Kariwa Nuclear Power Station, we are currently conducting facility inspection and restoration activities.
In-vessel Inspection ● A visual inspection of all units has been completed by February 19, 2008. →No nonconformances that could affect equipment functions and structures have been found. ● External inspections of fuel and control rod are now being conducted (inspections of Units 1, 2, 3, 5, 6, and 7 have been completed).
In-core inspection
Spent fuel pool
Ceiling crane
Refueling machine Temporary equipment storage pool
Reactor pressure vessel Inspection of damage and deformation to Reactor opening work the inner structure of the nuclear reactor using an underwater camera
Cross section of a nuclear reactor building
Turbine Inspection Main Generator Inspection ● The internal inspection of the turbine in all units has been ● The main generator is being inspected in all units. completed by December 21, 2007. →Small friction marks and abrasions have been found in all units, but no nonconformances that could affect equipment functions and structures have been found. ● Detailed inspections are now being conducted in Units 3, 6, and 7.
Turbine inspection
Main generator inspection
Ultrasonic flaw inspection of a turbine
Other Facilities ● Transformers are being sequentially transported to a factory for inspection and repair. Those from Units 6 and 7 have finished being inspected at the factory, and are now being re-installed in their respective unit. ● In addition to the above, restoration of the administrative building and inspection and repair of the discharge canal are being conducted. (As of June 5, 2008)
8 Seismic Safety Improvement
We have formulated a design-basis seismic motion* using geological surveys and analyses/evaluations of observation data obtained from the Niigata-Chuetsu-Oki Earthquake, and are now awaiting the outcome of deliberations by a governmental review panel. While paying heed to the progress of the deliberations, we will continue to evaluate the seismic safety of major equipment based on this design-basis seismic motion and implement the necessary measures to ensure seismic safety. * Design-basis seismic motion Design-basis seismic motion refers to the magnitude of motion caused by an earthquake, and which provides a standard for earthquake resistance design of nuclear power stations. The seismic safety of structures is designed and evaluated in consideration of this design-basis seismic motion.
Geological Surveys
Model of the Nagaoka Plain Western Boundary Fault Boundary Western Plain Nagaoka the of Model N
● Marine sonic prospecting (August to November 2007) Kakuda-Yahiko Fault
Performed over a total distance of about 1,450 km in an area Fault Boundary Eastern Basin Sado 140 x 50 km off the coast of the Chuetsu region ● Subsurface exploration (September 2007 to April 2008)
Conducted over a total distance of about 120 km in land areas Sado Island Southern Fault adjoining the power station
30km
● Fault Boundary
Boring surveys Western Chuo-Kyuryo Kiinomiya Fault Kiinomiya Conducted in three locations within the power station site
F-B Fault
F-D Fault
Model of the F-B Fault Fault Katakai Kashiwazaki-Kariwa Nuclear Power Station
Bay Fault
Takada
30km Active faults
50 10 15 20 km
Selection of Active Faults Based on the results of geological surveys, we identified active faults that may have an impact on our power stations. In cases where a fault was difficult to assess, we erred on the side of safety, and made strict judgments (by assuming that an active fault is longer than it actually is, and that multiple active faults move simultaneously, the scale of assumed earthquakes becomes larger). Active faults that have a direct bearing on power stations, according to the results of geological surveys
Active fault Length Scale of earthquake (※1) Remarks
About 34 km (※2) From the standpoint of safety, the total length F-B Fault 34 km Magnitude 7.0 (About 27 km) of the fault was assessed at about 34 km. Kakuda/Yahiko Fault About 54 km Nagaoka Plain From the standpoint of safety, these faults Western Kiinomiya Fault About 22 km 91 km Magnitude 8.1 were assumed to move simultaneously. Boundary Fault Katakai Fault About 16 km F-D Fault About 30 km From the standpoint of safety, these faults 55 km Magnitude 7.7 Takada Bay Fault About 25 km were assumed to move simultaneously.
※1 The magnitude of the F-B Fault was determined by the size of the assumed fault surface at the hypocenter and the correlation between magnitude and size of the fault surface at the hypocenter of the Niigata-Chuetsu-Oki Earthquake. The magnitudes of the other faults were determined by the length of the ground surface faults using Matsuda's formula (1975). ※2 According to TEPCO survey results, the length of the fault was about 27 km, but from the standpoint of safety, it was assessed at about 34 km.
Summary of the Design-Basis Seismic Motion After identifying major active faults that could affect the power station, we assessed their potential impact on the power station and formulated a design-basis seismic motion (and reported it to the Nuclear and Industrial Safety Agency on May 22, 2008). We also calculated how the design-basis seismic motion reaches the nuclear reactor building, to establish seismic motions on the base mat of each reactor. We have set 1,000 Gal as the standard seismic motion for improved earthquake resistance in all units (on the base mat of each reactor), and will implement construction works, as necessary, to enhance seismic safety. Evaluation of seismic motion in each unit Figures represent the larger of the two horizontal (east-west and north-south) motions. (Unit: Gal) Evaluated seismic motion Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Observed value of the Niigata-Chuetsu-Oki Earthquake 680 606 384 492 442 322 356 Seismic motion on the base mat of the reactor, according to the design-basis seismic motion 829 739 663 699 543 656 642 Design-basis seismic motion 2,280 1,156 Standard seismic motion for improved earthquake resistance 1,000
9 Impacts of the Niigata-Chuetsu-Oki Earthquake and Actions Taken by the TEPCO Group
Strengthening the In-house Firefighting System On December 19, 2007, TEPCO presented its policy on immediate initiatives regarding in-house firefighting and information liaison/provision to the Nuclear Facility Investigative Taskforce in the Niigataken Chuetsu-oki Earthquake, a taskforce under the Nuclear and Industrial Safety Subcommittee of the METI Advisory Committee for Natural Resources and Energy. The report outlined initiatives that TEPCO has thus far taken to strengthen its firefighting capacity, and its policy for future actions. We will continue to pursue effective disaster prevention measures in the future.
Major initiatives for strengthening the in-house firefighting system (As of May 31, 2008)
Major initiatives Details
Strengthening initial fire Assignment of firefighting units to provide 24-hour service (securing ten or more full-time personnel) extinguishing activities ・ Deployment of chemical fire engines to each power station (July 2007) and commencing their operations (Oct. 2007) ・ Addition of large fire extinguishers in buildings (Oct. 2007) Improving the reliability of ・ Deployment of pump trucks with water tanks to each power station (Jan. 2008) firefighting equipment ・ Deployment of chemical tank vehicles for emergency reserve of chemicals used in firefighting to each power station (March 2008) ・ Installation of 17 earthquake-proof fire protection water tanks (April 2008) ・ Unearthing of the firefighting pipe network buried outside (under construction) ・ Establishment of a dedicated communication line between the main control room and the fire department (Sept. Improving the reliability of 2007) associated facilities ・ Permanent installation of personal computers, cell phones, and PHS phones in the Emergency Response Room (Sept. 2007)
Pump truck Firefighting units for equipped with a 24-hour service water tank
Exposure of the firefighting pipe Fire protection network water tank
We have implemented emergency drills based on lessons learned from the earthquake
This year, we have conducted not only conventional nuclear emergency training at TEPCO's nuclear power stations, but we have also carried out various other drills based on lessons learned and issues relating to the Niigata-Chuetsu-Oki Earthquake. They included training in dispatching management personnel from the head office using a helicopter, training in public and press relations, and fire drills by the in-house firefighting unit. We will Satoshi Takashina continue implementing these types of training and accumulate Operation Planning experience, so that we may become disaster-resistant power Dispatch training of management personnel using a Group and stations capable of ensuring safety and reliability to local Disaster Prevention helicopter (Kashiwazaki-Kariwa Nuclear Power Station, and Safety Group communities. March 19, 2008) Nuclear Power Plant Management Dept. 10 We are striving to be a reliable and safe power station worthy of trust from society.
The Niigata-Chuetsu-Oki Earthquake triggered several accidents at the power station, including a fire to a transformer and a slight leakage of radioactive water. We have caused much concern to society, by not being able to properly communicate the necessary information, and deeply regret our poor response in the face of disaster. Taking the lessons of the earthquake to heart and reflecting on our inadequacies, we are taking specific action to steadily boost the safety of the power station. To reinforce our firefighting system, we have installed chemical fire engines and water pump trucks, and secured the necessary personnel for providing 24-hour firefighting service. To communicate information on the status of the power station in an easy-to-understand and timely manner, we are actively holding meetings with local residents and making full use of diverse resources, such as radio broadcasts, the TEPCO website and mobile phone site, and video letters. In the event of another large earthquake, we are prepared to make public announcements using loudspeaker cars. We will continue to inspect and survey each and every facility in detail to ensure their Akio Takahashi, Director of the Kashiwazaki-Kariwa Nuclear Power safety. We will also increase seismic safety based on the results of geological surveys Station performed to date in the entire vicinity, as we strive be a power station that can withstand disasters. We will consistently communicate the details of our inspection and restoration initiatives and information on the status of examinations to the public, in an easy-to-understand and timely manner, through the TEPCO website and PR publications. All of us here at the Kashiwazaki-Kariwa Nuclear Power Station are making concerted efforts with our partner companies, to become a high-quality, world-class nuclear power station that is worthy of the trust and confidence of the local community and the wider society.
Loudspeaker car Explanatory meeting with local residents
Reconstruction assistance efforts
Since immediately after the earthquake, we committed ourselves to providing material and physical support to the victims of the earthquake. We delivered emergency food, portable toilets, and plastic roof coverings for damaged homes, and dispatched power line restoration engineers, medical staff, and damage assessment inspectors to affected areas. More than 2,000 corporate volunteers from TEPCO offices throughout Japan also headed to affected areas, to help local volunteer centers deal with diverse requests, from clearing the debris of damaged buildings, to moving people into provisional housing. With sincere hopes for the rehabilitation of Niigata prefecture, we resolved to do everything we possibly could. TEPCO Group employees, for instance, made frequent Clearing the debris of a damaged home visits to the prefecture, actively purchased regional specialties, and engaged in various activities that might help the prefecture get back on its feet. The entire TEPCO Group of companies will continue to work together as one, in support of the reconstruction of Niigata prefecture.
11 Executive Summary 2008
Providing Dependable Electric Power Reaching for Sustainability
See pages14-17 for details. See pages18-29 for details.
To respond appropriately to global energy situation and secure To contribute to a sustainable society, the TEPCO Group steadily a stable supply of electric power, TEPCO strives to maintain a fulfills its corporate social responsibility in compliance with the good balance between "stability," "environmental friendliness," TEPCO Group Management Principle. and "economic efficiency," from a long-term perspective.
TEPCO Group Management Principle TEPCO energy output by energy source (including purchased power) TEPCO Group Management Principle （％） Plan 100 Contribute to better lifestyles and environments Nuclear by providing superior energy services 80 LNG/ LPG
60 Coal Oil Risk management 40 Geothermal/ We aim to prevent accidents and disasters by regularly managing new energies risks and employing a system for responding to crises and 20 Other gas emergencies. Hydroelectric 0 power 19730605200095908580 07 08 17 (FY)
The TEPCO Group's Environmental Initiatives
See pages 30-53 for details.
TEPCO is undertaking the challenge of reducing CO2 emissions in International society, by addressing the issue from both the power supply and cooperation initiatives Utilize the Kyoto mechanisms consumption sides. TEPCO global warming countermeasures Promote sectoral approaches
Ensure safe and stable operations Supply-side initiatives of nuclear power stations We are actively working to reduce Increase thermal power efficiency global greenhouse gas emissions and fulfill TEPCO's CO2 emission Expand renewable energy use intensity target, by utilizing the Kyoto mechanisms. In Management Vision 2010, TEPCO has set a voluntary target of reducing CO2 emission intensity by 20% on average during the five Recovering methane from a years from FY2008 to FY2012, compared to the benchmark year hog farm in Chile FY1990. In FY2007, however, CO2 emission intensity Promote high-efficiency Initiatives with customers appliances increased 25% over the CO2 emission intensity previous year to 0.425 kg- in FY2007 Advocate eco-friendly lifestyles CO2/kWh, due to out of service the Kashiwazaki- Kariwa Nuclear Power Station At TEPCO, we are actively encouraging our customers to help following the Niigata- 0.425 save energy, by developing and disseminating appliances with high energy-saving and CO2 reduction effects, and Chuetsu-Oki Earthquake. kg-CO2/kWh communicating information on reducing CO2 in an easy-to- understand manner. 12 The TEPCO Group and the Community
See pages 54-69 for details.
TEPCO maintains open channels of communications with Interaction with children stakeholders who take an active interest in our business To teach children the activities. We value the opinions and requests we receive from importance of environmental our stakeholders, and use the feedback to improve our CSR issues, TEPCO sponsors activities and to become a company worthy of their trust. classes on the environment and energy, and holds Interaction with local communities nature observation events TEPCO takes an active for children, in the green part in the development areas of its power stations. Electric vehicle demonstration at the of local communities, by Tsukuba Science Festival working together with Interaction with local residents to promote Employees safety, environmental TEPCO helps employees conservation, education, achieve good balance welfare, and culture in between their work and local communities. personal life, to create a comfortable workplace Transplanting the cutleaf coneflower (Rudbeckia laciniata) alien plant species environment. Seminar for employees on childcare leave
TEPCO and nuclear power
See pages 70-75 for details.
Giving top priority to safety, TEPCO is committed to maintaining Radiation management stable operations at its nuclear power stations and ensuring TEPCO constantly monitors the amount of radiation and the level of transparency by disclosing operational status in an easy-to- radioactive materials released from its nuclear power stations, and understand manner. Furthermore, we use the feedback we makes the information available to the public. receive from our customers to improve operations, in our effort to establish nuclear power stations worthy of the confidence Nuclear fuel cycle and trust of society. TEPCO is pushing ahead with the establishment of a nuclear fuel cycle, for the effective utilization of energy resources. Disclosing information on our nuclear power stations TEPCO actively discloses information on various events occurring at its nuclear power stations, to ensure transparency of nuclear operations.
"Nuclear Information" page on the TEPCO website, PR magazine issued by the Kashiwazaki-Kariwa Nuclear The Rokkasho Reprocessing Plant of Japan Nuclear Fuel Limited Power Station (Rokkasho-mura, Aomori pref.)
13 Providing Dependable Electric Power
We daily deliver electricity to our customers and strive to provide dependable electric power from a broad and long-term perspective. To appropriately respond to the world's energy situation and secure a stable supply of electric power, TEPCO focuses on achieving a good balance between "stability," "environmental friendliness," and "economic efficiency" over the long term. We maintain a sufficient supply capacity to meet peak demands, and provide a stable supply of high-quality electricity even in the face of ever-changing demand, through meticulous management of power supplies.
Increase in global energy consumption, Japan's import-dependent energy situation particularly in Asia Worldwide energy demand is expected to grow about 55% Japan's energy self-sufficiency is a mere 4%, one of the lowest between 2005 and 2030. China, India, and other developing among the world's major economies. Even when factoring in countries mainly in Asia, will account for around 74% of the new nuclear generated power as quasi domestically-produced energy, demand. the ratio only increases to 19%, and the country must import 80% of the energy it consumes. Securing stable energy sources is Worldwide primary energy consumption trends and outlook therefore a pressing issue to Japan. (billion tons: oil equivalent) 18 Energy self-sufficiency of major countries China 15 （％） India 100 96 Asia (excl. China, India, 1 90 Nuclear energy 12 and developed countries) 87 95 80 78 9 70 1 Developing countries 70 9 77 78 9 (excl. Asia) 60 61 Japan 50 50 6 USA 40 39 43 Non-nuclear 30 12 energies 20 19 3 15 0 27 Other 15 10 15 0 0 4 7 1990 2005 2015 2030 (year) Italy Japan Germany France USA India UK China Source: Based on IEA, World Energy Outlook 2007 Source: Based on IEA, "Energy Balances of OECD/non-OECD Countries 2004-2005"
Inextricable relationship between energy and Rising fuel prices global warming CO2 emissions from energy use account for almost 90% of Fuel prices are soaring along with the expansion of global Japan's total greenhouse gas emissions. As can be seen from this energy consumption. Crude oil prices, which have been hovering situation, energy and the global warming issue are inextricably at levels between 20 to 30 dollars per barrel, began to increase linked. around 2004. By December 2007, import prices exceeded 90 Since about 30% of Japan's total CO2 emissions come from dollars per barrel. The growing worldwide demand is also pushing the use of electricity, TEPCO actively promotes nuclear power up LNG and coal prices. generation as a source of low-carbon energy, as it emits no CO2 in the process of generating power. We also encourages efficient Import prices of crude oil, LNG, and coal energy use by developing and disseminating the use of high- Crude oil (USD/b) efficiency appliances. We believe these two efforts are Fuel coal (USD/t) LNG (USD/t) 100 1,000 indispensable to reducing CO2 emissions while creating Crude oil comfortable living. 80 800 Fuel coal Breakdown of greenhouse gas emissions in Japan (FY2006) 60 600 Total: 1,340 million tons 40 LNG 400 Total of CH4, N2O, Waste Energy conversion Industrial processes 3% 6% HFCs, PFCs, SF6: 4% 66 million tons 20 200 Residential CO2 from non-energy 13% (8% from the use sources: 0 0 of electric power) Industries 88 million tons 1998 99 2000 01 02 03 04 05 06 07 08 (year) (10% from FY2006 36% the use of CO2 emissions electric power)1.274 billion Source: Based on Ministry of Finance, Trade Statistics of Japan CO2 from energy tons (11% from sources: Commercial/other the use of 18% (1% from the use electric power) 1,186 million tons of electric power) Transportation 20% Source: Based on press release material issued by the Ministry of the Environment (May 16, 2008)
14 TEPCO is using the best mix of power sources in the guest for long term supply stability.
TEPCO takes advantage of the characteristics of each energy Renewable energies such as wind and solar power will resource and power generation method, and uses the best mix of continue to be supplementary energy sources in the foreseeable power sources to satisfy medium and long-term energy needs. future, because their power output is easily affected by natural conditions. However, we are encouraging their use and promoting With its good balance of "stability," "environmental associated studies, as Japan's precious domestic energy sources. friendliness" and "economic efficiency," nuclear power plays a In addition to the above, TEPCO is actively seeking the best mix central role in TEPCO's array of power sources. Since nuclear fuel of power sources for the future, such as by securing rights to gas can be recycled, it is also a cornerstone of Japan's national energy fields and uranium mines, and building an LNG value chain. strategy. TEPCO mainly uses LNG to generate thermal power, as it offers TEPCO energy output by energy source better "stability", "environmental friendliness" and "economic (including purchased power) efficiency" compared to other fossil fuels. We are also expanding （％） Plan the use of coal-fired thermal power, which provides superior 100 "stability" and "economic efficiency" because it is relatively cheap Nuclear 80 LNG/ and available in abundance around the world, as well as oil-fired LPG thermal power, which allows us to quickly respond to demand 60 Coal fluctuations. Oil Hydroelectric power ensures "stability" and "environmental 40 Geothermal/ friendliness", as it is a renewable energy source that can be new energies domestically produced. Pumped storage power generation, in 20 Other gas particular, allows quick and easy adjustment of supply to demand Hydroelectric changes. 0 power 19730605200095908580 07 08 17 (FY)
TEPCO strives to maintain low TEPCO protects the electricity supply line, and stable electricity rates. and continue delivering quality electricity.
Crude oil prices have risen almost five-fold over the past ten By multiplexing power supply facilities and interconnecting years. However, TEPCO makes effort to keep electricity rates low power transmission and distribution lines, TEPCO takes utmost and stable, by using the best mix of power sources and measures to prevent power outages and achieve quick recovery streamlining business activities. should an outage occur. Power stations, load dispatching stations, and other key facilities, which are crucial to controlling electric power, are monitored around the clock to be prepared at all times to respond to accidents and malfunctions. With a power outage frequency of 0.05 times per year and a power outage duration of 4 minutes, TEPCO boasts an extremely reliable service compared to other countries.
Model household electricity rate and crude oil import prices (Jan. 1998 = 100) 500 Crude oil (USD/b) TEPCO power outage frequency and duration per household
400 Power outage duration per household Power outage frequency per household (min) (frequency) 100 97min.1.0 300 88min. 80 0.8
200 60 0.6
100 Model household electricity rate 40 0.4 0.05 times 20 0.2 0 1998 99 2000 01 02 03 04 05 06 07 08 4 min. (year) 0 0.0 (Note) Model household electricity rate: Meter rate lighting B, 30A, 290 kWh/month 1997 98 99 2000 01 02 03 04 05 06 07 USAUK (includes fuel cost adjustments, consumption tax equivalents, and account transfer discounts (after Jan. 2001) Source for USA: Average of the 2006 System Average Interruption Duration Index (SAIDI) for Source of crude oil import prices: Based on Ministry of Finance, Trade Statistics five companies: Consolidated Edison, Florida Power & Light, NSTAR, Pacific Gas and Electric, and Southern California Edison Source for UK: Ofgem, "2006/07 Electricity Distribution Quality of Service Report."
15 Providing Dependable Electric Power
Our Efforts to Secure a Stable Supply of Power During the Summer Peak Period
Power consumption fluctuates greatly according to Impact of the closure of the Kashiwazaki-Kariwa the season and between daytime/nighttime hours Nuclear Power Station on stable power supply Electricity usage varies according to the season and between We were particularly hard put to satisfy electricity demand in daytime and nighttime hours. It is used most during the summer, summer 2007. TEPCO had sufficient supply capacities before the when demand for air-conditioning increases. In fact, summer peak occurrence of the Niigata-Chuetsu-Oki Earthquake. However, the demand is 1.4 times the peak demands during spring and autumn. closure of the Kashiwazaki-Kariwa Nuclear Power Station, which When we take a look at a regular summer day, we see that accounted for roughly 10 percent of TEPCO's total power supply, electricity demand rises sharply in the morning with the caused our supply capacity to drop considerably, to levels below commencement of economic activities and reaches peak between anticipated peak demands. We were able to bring our capacity up 1 pm and 4 pm, after which it gradually begins to drop. At the to anticipated peak demand levels by increasing operational height of summer, peak demand is almost double the lowest capacity at other power stations, purchasing emergency electricity demand, with electricity demand constantly fluctuating in from other electric power companies, and acquiring surplus power conjunction with changes in temperature. from independent power generation facilities. However, with only a marginal reserve capacity, we could not afford the slightest risk of Trend of Monthly Peak Demand (FY2007) unexpected equipment failure, so we directed the concerted efforts 65 (GW) 61.47 of the entire TEPCO Group to reinforcing inspection activities at all 60 our facilities and ensuring stable operations and maintenance. 55 54.76 55.02 54.07 53.85 50 50.63 50.32 Demand forecast for August 2007
45.25 (GW) Impact of the earthquake 45 48.40 47.75 65 65.27 40 43.48 43.77
0 62.75 2007 2008 61.10 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar (month) 60 (Note) Daily peak at the generation end 58.01
55 Adjusting output in response to peak demand Electricity cannot be stored easily, and must be produced precisely when needed. This means that power output from power 50 Supply capacity Supply capacity Supply capacity [Reference] stations must constantly be adjusted in response to rapid changes before after after implementation of Anticipated in electricity demand. To deliver high-quality electricity at stable the earthquake the earthquake measures to secure peak demand additional supplies voltage and frequency, the Central Load Dispatching Measures for securing sufficient supply Control Station monitors capacity after September 2007 electricity demand levels TEPCO continued to make full-scale efforts to secure a stable around the clock and supply of electric power even after the summer peak period, such efficiently controls the power as by restarting long-suspended thermal power plants and output from all TEPCO accelerating the use of new power sources. For example, owing to power stations. Central Load Dispatching Control Station the prompt response of relevant parties and their implementation of around-the-clock restoration work, the No. 2 gas turbine of Securing a sufficient supply capacity TEPCO's Yokosuka Thermal Power Station (discontinued in 2005) corresponding to how electricity is used recommenced operations in only a month (where it normally takes To secure a stable supply of electricity, measures for the three to six months), on September 11. We are sequentially expansion, inspection, and upgrading of power generation and restarting operations at other long-suspended thermal power distribution facilities must take into consideration how electricity is plants and thermal power plants that run on new power supplies, used. Every year, TEPCO formulates a demand forecast and supply following the completion of the necessary preparations. We plan to plan for the next ten years and steadily develops the necessary continue purchasing emergency electricity from other electric power facilities in response to the anticipated demand-supply power companies, but we are also making independent efforts to structure. We also plan for the inspection of facilities during non- strengthen our predictive management of facilities to prevent peak periods and formulate yearly, monthly, weekly, and daily equipment failure, and are reviewing our regular inspection and operational plans. Based on those plans, we secure the necessary repair processes based on the demand-supply situation. facilities, personnel, and fuel for delivering stable and efficient Furthermore, we are procuring additional fuel for our thermal supplies of electric power. power plants, as they are expected to serve an increasingly important role in providing a stable supply of energy.
16 Efforts We Made to Secure the Necessary Supply Capacity on August 22, 2007 During the summer, electricity demand is largely influenced by temperature. Each one-degree rise in temperature significantly increases demand for air conditioning, and causes electricity demand to jump about 1.7 GW. Due to record high temperatures on August 21 and 22, 2007 peak demand exceeded 60 GW for the first time in two years. Let us recount how TEPCO endeavored to secure a stable supply of power during this peak period.
Measures taken on the previous day (Aug. 21, Contingency plans for a sudden surge in 2007) demand High temperatures persisted, even after the August bon Given a further rise in temperatures and a sharp rise in holiday. On August 21, electricity demand soared within TEPCO's demand, we revised our anticipated peak demand upward to 61.5 service area and marked a peak demand of 60.13 GW, exceeding GW. Although we had secured an additional supply capacity by 60 GW for the first time in two years. Anticipating a peak demand purchasing emergency electricity from other electric companies, of 60 GW in the early evening hours on the next day, we secured a we needed to prepare for the possibility of greater demand. At supply capacity of 61.3 GW at this point. However, at 5:00 pm, the 11:30 am, we made a difficult decision to ask customers who had Japan Meteorological Agency revised its forecast of the next day's interactive contracts* with TEPCO to reduce demand, for the first estimated highs upward, from 34 degrees Celsius to 35 degrees time in 17 years. We obtained permission to temporarily operate Celsius. As the tight demand-supply situation was expected to the Shiobara Power Station whose water use permission had been continue, we needed to secure additional supply capacities and revoked due to illegal water intake. We brought it back into service prepare for a further increase in demand. for one day. With additional supplies from other electric power companies, we ultimately secured a supply capacity of 64 GW, by Anticipated demand and supply capacity early afternoon. (as of early evening on Aug. 21) In Tokyo, temperatures soared to 37 degrees Celsius, and peak ・Request for energy ・Operational capacity increase at demand reached 61.47 GW at 3:00 pm, the highest demand saving efforts thermal power plants recorded that summer. We somehow pulled through, as ・Demand-supply Additional ・Emergency electricity from other adjustment contract electric power companies temperatures began to fall thereafter. supply ・Temporary emergency supply by We experienced an extremely tight demand-supply situation, 1.7 GW Shiobara Power Station increase for each Other but all TEPCO employees worked together and made every effort one-degree rise Reserve capacity in temperature 1.3 GW to maintain a stable supply of electricity.
60 GW 61.3 GW ＊ Interactive contract (anticipated) The customers have contracts with TEPCO to reduce the use of electricity when the balance of demand and supply is tight. In exchange, they receive discounts in electricity charges, as prescribed Demand Supply capacity in their contract.
Supply capacity of 62.5 GW, anticipated peak Electricity use on Aug. 22, 2007 (power-supply side) demand of 61.0 GW (GW) 61.47 GW (3 pm) In the morning of August 22, we revised our anticipated peak 65 demand upward to 61.0 GW, based on the Japan Meteorological 60 Agency's estimated high, and secured about 62.5 GW of supply 55 capacity, with the addition of increased operational capacities at 50 45 our thermal power stations. However, with a reserve capacity of 40 1.5 GW (reserve rate of 2.4%), we needed to keep a close eye on 35 the ever-changing temperature and demand situation. 30 We also informed the public about the power demand situation 2,500 in real time, via TV and website "electricity forecasts," and asked 0 for their cooperation in saving electricity. 01 03 05 07 09 11 13 15 17 19 21 23 (time)
The earthquake completely changed operations at our thermal power plants. We immediately restarted units that had been suspended, and otherwise directed all our efforts to securing a stable supply capacity in the wake of the earthquake. With continuing high demands in August, we could not risk even the slightest possibility of a shut down resulting from equipment failure. Particularly on August 22, we needed to rely on the full, combined potential of all of our power plants. We put into operation all thermal power units that were operable, and even resorted to increasing the operational capacity of some of the units. When operating a unit at increased capacity, we cannot afford to overlook even the smallest problem. Therefore, in addition to strengthening inspections, all power plants, thermal power plant offices, and the head office worked as one, sharing real-time information on the status of all facilities via simultaneous TV transmission, and prepared for any contingency. In our workplaces, we turned off all lighting and air-conditioning to the minimum necessary, and made desperate efforts to deliver as much electricity as possible to our customers. I can still remember the wave of relief that washed over Manager, Thermal Power me when demand dropped in the early evening hours and increased-capacity operations were called off. Once again this Generation Group, summer, we will do our utmost to secure a continuous, stable supply of electricity, based on our experiences of last year. Thermal Power Department Masahiro Kaneko
17 Reaching for Sustainability
TEPCO Group Management Principle
TEPCO Group Management Principle Contribute to better lifestyles and environments by providing superior energy services
TEPCO Group Charter of Corporate Conduct
1. Respect for Human Life and Dignity We give top priority to safety in all scenes of business activities. We also comply with the basic principles of international society regarding human rights. We do not practice any kind of discrimination, and we thoroughly protect personal information to respect human rights. 2. Thorough Compliance with Business Ethics We thoroughly comply with business ethics as we observe the relevant laws and regulations, international rules and their spirits, and act in good faith in all business activities.
3. Promotion of Transparent Business Activities With wide communications with society, we promote highly transparent and open business activities. We also maintain sound and normal relationships with political and administrative organs.
4. Ensuring of Quality and Safety of Products and Services We ensure quality and safety, provide valuable products and services, and always try to improve their values to be trusted and satisfied by customers.
5. Active Efforts to Address Environmental Issues We actively address the resolution of global environment problems, preservation and creation of natural and living environments, and realization of optimum resource recycling, and contribute to the creation of sustainable society.
6. Contribution to Development of Local Communities With the basic awareness that our business activities are supported by the people in local communities, we conduct, as a good corporate citizen, the activities that contribute to the development of local communities.
7. Creation of Cheerful and Energetic Workplace While ensuring safe and ideal working conditions, we create the workplace where the personalities and individualities of employees are respected and their initiative and creativity can be fully exercised.
Management Vision 2010
Win the Trust of Society Compete and Succeed Foster People and Technologies Our qualification to compete Nothing makes the TEPCO Group People and technologies open up in the market is the trust happier than customer satisfaction. the future for our Group. we earn from society.
＞ Corporate Information ＞ Corporate Overview ＞ Our Vision ＞ TEPCO Group's Medium-Term Management Policy 18 TEPCO Group (as of March 31, 2008) Our Customers
Electricity The Tokyo Electric Generation KASHIMA KYODO ELECTRIC Joban Joint Power Co., Ltd. Company, Incorporated POWER Co., Ltd. The Japan Atomic Power TEPCO Kimitsu Cooperative Thermal Soma Kyodo Power Company, Company Power Company, Inc. Ltd.
Living Environment and Lifestyle Overseas Businesses Information Communication Services Telecommunications TOKO ELECTRIC CORPORATION Real estate Tokyo Electric Power Company FAMILYNET・JAPAN CORPORATION TAKAOKA ELECTRIC MFG. CO., LTD. Toden Real Estate Co., Inc. International B.V. and 1 other company OZE Corporation Eurus Energy Holdings Corporation Energy and environmental solution TOSHIN BUILDING CO., LTD. Tokyo Electric Power Company Cable television broadcasting TOKYO TOSHI SERVICE COMPANY ReBITA Inc. International Paiton I B.V. TEPCO CABLE TELEVISION Inc. TEPCO Forests Australia Pty. Ltd. Tohkoh Building Co., Ltd. TM Energy (Australia) Pty. Ltd Kawagoe Cable Vision Co., Ltd. Bio Fuel Co., Inc. Mutsu-Ogawara Habitat Inc. Eurus Energy Europe B.V. KAWASAKI STEAM NET CO., LTD. Toso Real Estate Management Co., other 59 companies IT software and services Morigasaki Energy Service Co., Ltd. Ltd. Bull Creek LLC TEPCO SYSTEMS CORPORATION Isehara Energy Service Co., Ltd. TF Service Co., Ltd. other 10 companies ● TEPCO UQUEST, LTD. TOKYO WATERFRONT RECYCLE Harajuku No Mori Co., Ltd. Tokyo Electric Power Company AT TOKYO Corporation POWER CO., LTD. International Paiton II B.V. Tepco Office Service Corporation Hitachi Heat Energy Co., Ltd. Service CIPI-GP Ltd. TOKYO RECORDS MANAGEMENT CO., Japan Natural Energy Company Tokyo Living Service Co., Ltd. Capital Indonesia Power I C. V. INC. and 1 other company Limited TEPCO PUBLIC RELATIONS CO., LTD. TeaM Energy Corporation Japan e-Market Co., Ltd. Cycle Inc. CareerRise Corporation Great Energy Alliance Corporation Pty. JAPAN CABLENET HOLDINGS LIMITED JAPAN FACILITY SOLUTIONS, Inc. Tepco Town Planning Corporation Limited Japan Digital Serve Corporation Fuchu D.H.C. Co., Ltd. Limited Italian Vent Power Corporation Kanto Natural Gas Development Co., The TEPCO Reinsurance Company other 50 companies Construction and maintenance of Ltd. PCC Limited Gyeongnam Renewable Energy Co., information communication AOYAMA ENERGY SERVICE Co., Ltd. TODEN LIFE SUPPORT CO., LTD Ltd other 2 companies ● equipment CLEAN COAL POWER R&D CO., LTD. Tepco Partners Co., Inc. Loy Yang Marketing Holdings Pty. TEPCO OPTICAL NETWORK Tokyo Heat Energy Co., Ltd. Toden Kokoku Co., Ltd. Limited ENGINEERING INC. Tas Forest Holdings Pty. Ltd. TEPCO CALL ADVANCE Inc. ITM Investment Company Limited ATEMA KOGEN RESORT INC. ITM O&M Company Limited Energy and Environment Supply and transport of fuel Houseplus Corporation, Inc. Star Buck Power Corporation TEPCO RESOURCES INC. Kankyou Bika Center Inc. Tarong North Pty. Ltd. Facility construction and TEPCO Australia Pty. Ltd. Good-Serv Co., Ltd. and 1 other company maintenance TEPCO Trading Co., Ltd. E's Inc. Toden Kogyo Co., Ltd. Recyclable - Fuel Storage Company HP Capital Co.,Ltd. ● Tokyo Electric Power Environmental Pacific LNG Shipping Limited The Japan Utility Subway Company, Engineering Company, Incorporated Pacific LNG Yuso Limited Incorporated Tokyo Electric Power Services Pacific Eurus Shipping Limited Daido Industrial Arts Co., Ltd. Company, Limited Transocean LNG Yuso Limited Houseplus Architectural Inspection, Tokyo Densetsu Service Co., Ltd. LNG Marine Transport Limited Inc. ● TEPCO HOME SERVICE CO., LTD. Cygnus LNG Shipping Limited and 1 other company TOSETSU CIVIL ENGINEERING Tokyo Timor Sea Resources Inc. (USA) CONSULTANT Inc. NANMEI KOUSAN Co., Ltd. KANDENKO CO., LTD. TEPCO-Yu Company, Limited SHIN-NIHON HELICOPTER CO., LTD. TEPSTAR CO., LTD. JAPAN NUCLEAR SECURITY SYSTEM TEPCO Darwin LNG Pty. Ltd. Principle Management Group TEPCO CO., LTD. Tokyo Timor Sea Resources Pty. Ltd. Transmission Line Construction (Australia) Co., Ltd. NANSO SERVICE CO., LTD. Legend Japan Nuclear Fuel Limited Flow of services and goods Supply and transport of materials Pacific Hope Shipping Limited Consolidated subsidiaries and equipment Japan Coal Development Co.,Ltd. Equity method affiliates Tokyo Keiki Kogyo Co., Ltd. Nuclear Fuel Transport Company, Ltd. Non-equity method affiliates TEPCO LOGISTICS CO., LTD. CELT Inc. and 1 other company
(Notes) 1. Companies indicated by a ● mark have newly joined the TEPCO Group during this consolidated accounting year. 2. Companies that engage in multiple business segments are listed under their principle business segment. 19 Reaching for Sustainability
Practicing CSR in line with the TEPCO Group Management Principle
The TEPCO Group's social responsibility to provide a stable supply of safe electric power, in line with the Group Management Principle.
TEPCO Group CSR Policy
Providing a stable supply of safe electric power is the corporate social responsibility of the TEPCO Group. By providing power that is stable, high-quality and affordable, conducting an eco-friendly business, and always working to delight our customers, we enrich our customers' lifestyles and create a more comfortable environment for society as a whole. As a member of our community, moreover, we keep an open dialogue with customers, community members, investors, business partners, and employees. We build trust by responding sincerely to the needs of each of these stakeholders.
CSR promotion framework The CSR Committee, headed by the CSR Officer, CSR Initiatives discusses important matters that pertain to the corporate social responsibility of the entire TEPCO Group. The 1. We strive for a stable and secure supply of energy. CSR Liaison Council has been set up under the 2. We put the highest priority on safety and quality committee, as a working level council charged with the management. task of increasing the effectiveness of CSR initiatives. 3. We approach our work sincerely, with a strong sense of To enhance environmental management at all TEPCO mission and ethics. Group companies, the Environmental Management 4. We mitigate environmental burdens so that the new Panel carries out environmental strategies, establishes generation can inherit our precious global environment. targets, and checks and reviews environmental activities. 5. We communicate actively with the public and openly The Corporate Communications Council deliberates offer information. publicity-related issues that should be shared and 6. Recognizing the value of employees, we foster capable discussed across the Group, from the perspective of and energetic human resources. CSR, and the Group Company Management Information Board promotes Group-wide dissemination of the CSR policy. CSR promotion framework
CSR Committee
Secretariat (Corporate Planning Dept., Environment Dept., Corporate Communications Dept.)
Environmental Corporate Affiliated Companies CSR Liaison Management Communications Management Council Panel Council Meeting
20 Corporate Governance
Additional committees composed of outside personnel TEPCO's corporate governance system also examine corporate ethical practices and verify ensures a healthy and transparent nuclear power safety and quality. By reflecting their management. views in management considerations, TEPCO ensures high management transparency. From June 2007, the terms of directors and other At TEPCO, we constantly strive to upgrade our executive officers have been shortened from two years corporate governance, to ensure a healthy and to one year, to clarify their management responsibilities. transparent management and increase corporate To increase objectivity and transparency of value over the long term. remuneration to directors and other executive officers, TEPCO has established the Remuneration Committee Separating the executive branch of management composed mainly of persons from outside the company from the supervisory in April 2007, and has introduced a performance-based At TEPCO, a Board of Directors composed of up to remuneration system. 20 directors (19 members, including two outside directors, as of March 31, 2008) makes key operational decisions and supervises activities performed by the TEPCO is upgrading its internal control directors. systems in line with its basic policies. The Board of Managing Directors and cross- organizational in-house committees support the functions of the Board of Directors and streamline the decision-making process. Additionally, an executive TEPCO's Board of Directors has approved a basic officer system has been adopted, to separate the policy for establishing an internal control system in executive and supervisory branches of management. April 2006. In line with this basic policy, the Internal
To strengthen the management audit function, more Control System Study Committee actively promotes Governance Corporate / Principle Management Group TEPCO the with line in CSR Practicing than half of TEPCO's audit team of up to seven members legal compliance and greater effectiveness and are outside auditors (4 outside auditors among 7 efficiency of operations. members, as of March 31, 2008). Internal audits are TEPCO is also working to ensure reliability of implemented based on independent audit departments financial reports, by properly applying the internal (Internal Audit & Management of Quality & Safety control system and evaluating its maintenance and Dept. and Nuclear Quality Management Dept.). operation, based on annual plans concerning maintenance, operation, and evaluation. Management framework (as of March 31, 2008)
Shareholders' Meeting Appointment /Dismissal Report Appointment /Dismissal Report
Board of Directors Remuneration Committee Auditors (Board of Auditors) Appointment/ Supervision Report Audit Dismissal
President (Representative Director) Board of Managing Directors Report
Supervision Report Instructions Report Accounting Auditor (Auditing Corporation) Measures Committee System Security Committee Quality and Safety CSR Committee Committee Risk Management Measures Conference Supply and Demand Measures Committee Disaster Prevention Committee General Engineering Management Committee and Organization HR Development Human Rights Committee System Study Committee Internal Control Internal Audit Department Audit Instructions
Report Internal Audit & Management of Quality & Safety Dept. Internal audit Report Nuclear Quality Nuclear Safety and Management Dept. Quality Assurance Comments Meeting Internal Audit Audit General Secretariat of the Corporate Ethics Consultation Committee Report Business Execution Departments Corporate Ethics Ethics Line Committee Study/Countermeasure Comments Report Study/Countermeasure Consultation Group Companies
21 Reaching for Sustainability
Risk Management
TEPCO routinely manages risks to prevent TEPCO is constantly working to develop a consequent accidents or disasters. stronger emergency response capacity.
Risk management framework TEPCO Group has established disaster prevention The Risk Management Committee, chaired by the plans and internal manuals as part of its Group-wide president of TEPCO as the chief risk management risk management system. executive, plays a central role in assessing and In addition to preventing accidents from evaluating risks that could have a particularly serious happening in the first place, our goal is to mitigate impact on business. Its deliberations are reflected in the scale of damage and achieve quick recovery annual management plans. should a disaster occur. TEPCO's Head Office and Risks specific to each risk management unit (head other offices conduct emergency drills (including office departments, offices, and Group companies) are recovery and information training) at least once a managed and addressed by the heads of each unit who year to verify our accident preparedness. are appointed risk managers. Risks common to all risk Basic policy on accident prevention measures management units are addressed by internal committees. First we prevent accidents. If an accident does happen, we mitigate the scale of damage TEPCO has also established an emergency and restore the system to a sound condition as quickly as possible. framework, though consistent efforts are made to collect the necessary information for preventing the occurrence ①Build facilities resistant ②Mitigate the impact ③Achieve quick recovery of risks, providing a stable supply of electricity, and to accidents and disasters damage when an accident of affected facilities delivering high quality services. ・Adopt preventive designs or disaster does occur ・Prepare materials and and reinforce facilities ・Multiplex facilities equipment for recovery ・Ensure proper ・Prepare back-up ・Facilitate the smooth maintenance, etc functions, etc flow of recovery activities, etc Place maximum priority on personal safety and human life, and strive to Risk management framework provide a continuous supply of electricity, to the greatest extent possible.
Board of Directors Responses in the face of an accident/disaster or the threat of one President When faced with an accident/disaster or even the (chief risk management executive) threat of one, TEPCO immediately issues an emergency alert. We set up emergency response centers at the Head Office and branch offices, and promptly enter system Internal Risk Management Committee recovery mode. committees (overall risk management) We have materials and equipment necessary for
Secretariat recovery work stored in local depots throughout our (Corporate Planning Dept., service area and a cooperative framework with electric Corporate Communications Dept., power companies in other regions, to ensure timely Affiliated companies Dept, Corporate Affairs Dept.) recovery. Emergency alerts Risk management units Emergency alert category Status of accident or disaster Class 1 emergency □ Director of Corporate ・An accident or disaster is predicted. Head office Offices Group companies Affairs Dept. An accident or disaster has occurred. departments ・ Risk managers Risk managers ○ About 8,000 Risk managers Class 2 emergency ・A large-scale accident or disaster is predicted. □ Vice President ・A large-scale accident or disaster has occurred (Emergency ・A wide-area power outage has suddenly occurred due to Response Chairman) an electrical accident ○ About 16,000 ・An earthquake alert has been issued in the Tokai region ・A large-scale accident or disaster has occurred, and recovery is expected to take a long time Class 3 emergency ・An earthquake greater than intensity 6-lower has occurred □ President in TEPCO's service area or a prefecture where a TEPCO ○ About 28,000 office is located ・An earthquake warning has been issued in the Tokai region
□ ：Chief of the Emergency Response Center (at the Head Office) ○ ：Number of emergency response personnel (company-wide)
22 Information Security and Privacy Policy
TEPCO makes consistent efforts to TEPCO handles personal information with maintain information security. utmost discretion.
＞ Privacy
TEPCO takes a company-wide approach to As a company that retains some 30 million items safeguarding system security and preventing of personal data from our customers and others, information leaks. To further enhance our security TEPCO is responsible for proper control and measures, the System Security Measures Committee handling of this information. Based on Japan's Law has been set up in 2001. The committee assesses and Concerning the Protection of Personal Information, evaluates security status in the entire company, as which came into full force in April 2005, we have well as reviews and upgrades security standards. established the basic policy on handling personal The System Security Group has also been information, and publicly announce our purposes established, to provide prompt and valid responses to for using personal information and the procedures security issues. for its disclosures upon legitimate requests. Basic policy on handling personal information Information security measures We employ the following measures to ensure 2. Collection and utilization information security. 1. Compliance with laws 3. Safety assurance, etc. and regulations 4. Provision to third parties, etc. 5. Disclosure, correction, etc. Technical and physical measures ・Installation of security-enhanced PCs intended for external use ・Introduction of a system for detecting intrusions in TEPCO's internal network Installation of fire walls and implementation of internal server ・ 6. Internal framework intrusion tests 7. Legal revisions, ・ Internal training ・Introduction of a system that denies access to TEPCO's environmental changes, etc. internal network from an unauthorized PC ・ Internal audit ・Use of an encryption software by all TEPCO Group companies ・Thorough management of buildings and the entry/exit of Management framework and employee training people In each workplace, we make every effort to safeguard Institutional and educational measures personal information under the leadership of personal information managers. Various management and ・Complete ban on the use of personal PCs to perform business tasks throughout the entire TEPCO Group monitoring schemes are also in place, such as for ・Routine verification of the implementation status of security conducting an evaluation of safeguarding activities measures by an administrator according to a checklist and making regular verifications Implementation of security investigations in all Group ・ of personal information retained by each workplace. All Privacy and Security Information / Management Risk companies TEPCO employees receive employee training on an ・Ongoing e-learning programs on information security, for all employees ongoing basis through e-learning programs, and educational CDs are distributed to increase awareness of the importance of personal information protection across Information leak incidents and preventive the entire Group. measures Should personal information be lost, we take To our deep regret, leaks of business information from TEPCO Group companies and partner companies have occurred twice in immediate action, by first apologizing to our customers FY2007. Though the information that had leaked did not contain and communicating the facts of the incident to the public sensitive power demand-supply data, business information through a press release, as well as through our web site. saved on a personal PC of an employee leaked onto the Internet (We deeply regret that there were two incidents of via a file sharing application. To prevent the recurrence of similar incidents, we are making Group-wide efforts to tighten personal information leakage in FY2007.) We have our information management system, by repeatedly ① enforcing taken appropriate measures to prevent the reoccurrence the ban on the use of personal PCs for business purposes, and by enhancing regulations concerning the handling of ②ordering the complete deletion of business information from personal information outside the company. the personal PCs of all employees.
23 Reaching for Sustainability
Compliance with Corporate Ethics
We at TEPCO strictly abide by the standards TEPCO's corporate ethics promotion of our Corporate Code of Conduct. framework actively promotes strict ＞ Corporate Information ＞ Corporate Overview compliance with corporate ethics. ＞ Our Vision
Following the spirit of the TEPCO Group Charter TEPCO has set up a Corporate Ethics Committee of Corporate Conduct, TEPCO has formulated a composed of members from top management, and an Corporate Code of Conduct, as guiding principles of Ethics Line, to widely collect information on corporate behavior. It defines priority values and corporate ethics compliance from the entire Group standards to be observed by all employees, including and take specific action against matters that need to putting safety first and complying with rules. All be addressed. Each department has a corporate employees share and abide by the Code of Conduct, ethics officer, who works closely with the Ethics Line, as they daily engage in their work. while making independent efforts to promote corporate ethics compliance. Around 50 TEPCO Summary of initiatives for ensuring corporate ethics Group companies have so far established a similar compliance framework. Corporate ethics promotion framework Clarification of directions and standards of corporate ethics Formulation of the TEPCO Group Charter of Corporate Conduct Board of Directors Board of Auditors Formulation of the Corporate Code of Conduct President Corporate Ethics Committee Instructions System for assuring corporate ethics and Report, referrals business practices in accordance with social norms Corporate Ethics Group, Establishment of Establishment of Ethics Line Establishment of Corporate Affairs Dept. the Corporate the Corporate the Ethics Line Ethics Committee Ethics Group Head Office Corporate ethics supervisor Appointment of corporate ethics managers Employees Consultation and corporate ethics officers Branch offices, etc. Corporate ethics supervisor
Front-line organizations Corporate ethics supervisor
Culture to prevent Mechanism for Group companies Consultation on illegal activities following the regulations Group company / business matters Revise regulations business partner employees pertaining to the Implement corporate ethics Business partners TEPCO Group education and training and manuals Strengthen internal auditing Promote communications Ensure strict management of Corporate Ethics Committee documents and work records The Corporate Ethics Committee meets every other month to formulate and promote action plans for corporate ethics compliance, and to investigate and discuss actions to be taken Practice against any violation of corporate ethics. and Members : Committee chair: Chairman firmly establish Committee vice chair: President Monitoring Committee members: Outside experts (1 attorney, 2 professors, and 1 labor union chairman)
Framework for speaking out Ethics Line Strengthen support for alleviating the pressures of front-line workers The Ethics Line receives reports and consultations on legal and ethical violations from TEPCO employees and other Strengthen legal and compliance functions to support front-line workplaces stakeholders, including members of TEPCO Group companies Conduct comprehensive operational reviews, and business partners. All calls are referred to the Corporate such as by establishing a Work Inspection Month Ethics Committee, which, when necessary, discloses individual incidents and proposes measures to prevent recurrence. The Ethics Line has received 223 calls in FY2007.
24 Raising employee awareness Training programs and systems ensure TEPCO held a public slogan contest in FY2007, in corporate ethics compliance. search of an ideal catch phrase that would encourage open communication in the workplace. The winning slogan was made into a TEPCO strives ensure strict observance of corporate ethics promotion corporate ethics, by creating an environment that poster, to raise employee naturally promotes compliance. This includes awareness about corporate creating a culture to prevent illegal activities that ethics. Stickers and towels discourages misconduct by instilling a strong bearing safety messages awareness of corporate ethics in all employees; were also distributed to mechanism for following the regulations that employees and Group prevents misconduct by requiring strict adherence to members, to more widely rules; and a framework for speaking out about moral emphasize TEPCO's most issues and concerns. valuable ethical principle of placing highest priority Employee training on safety. Corporate ethics promotion poster TEPCO provides various types of training at different levels, to raise awareness about corporate ethics. It hosts Encouraging voluntary initiatives in front-line seminars by outside lecturers, intended for management workplaces level employees of TEPCO and its Group companies, Each workplace implements its own training and and holds monthly meetings between corporate ethics awareness-raising activities, as well as other voluntary officers from each department and management activities, under the leadership of a corporate ethics personnel, as well as regular training programs for these officer. In FY2007, each employee spent an average of officers. Each department makes independent efforts to 11.7 hours taking part in such activities throughout the train its employees and deepen their awareness and year. These workplace-oriented activities are shared understanding of TEPCO's code of conduct, using across the company via Intranet, and the most various tools. These include FAQs on specific scenes outstanding workplace and voluntary initiatives are concerning corporate conduct; case studies that are used awarded each year. The initiatives of TEPCO Group in group discussions designed to develop moral thinking companies are similarly awarded. skills; practical guides that provide detailed explanations of important points to consider when engaging in code Monitoring of conduct dissemination activities; and audio-visual Each year, TEPCO employees and external associates resources such as e-learning and video programs. Since are asked to respond to a questionnaire, to assess how FY2006, individual workplaces have increasingly begun firmly ethical practices have become established in the to implement independent activities and group company, and to apply the results to developing even discussions that closely correspond to their respective more effective activities. Based on the results of the workplace environment. survey, we have also provided training at our offices and Corporate ethics promotion activities (hours per person) Group companies (71 locations) in FY2007. Similar (hours) initiatives are also being implemented by TEPCO Group companies. 12.00 11.6 11.7
0.98 0.82 e-learning Are you always consciously aware of Ethics Corporate with Compliance 10.00 1.58 Independent workplace-specific Q the Code of Conduct while working ? 9.2 2.15 initiatives 0.99 8.00 0.17 0.82 2.90 Can't say which 2% 0.65 0.17 Group discussions 0.64 Practical guides 6.00 0.45 Video programs Yes % 2.79 0.16 97 2.58 0.46 Seminars by internal and external lecturers 4.00 1.25 Case studies No much 1% Responses to an employee awareness survey (Feb. 2008) 2.00 4.59 4.25 4.06 Read-through of the Code of Conduct 0 2005 2006 2007 (FY) 25 Reaching for Sustainability
Legal Compliance
TEPCO is strengthening its legal compliance Concrete initiatives for legal compliance functions to ensure all aspects of its business activities comply with laws and regulations.
TEPCO is redoubling its efforts to uncover and Legal consultation visits solve legal compliance issues in front-line workplaces. To foster greater awareness of legal compliance in front-line workplaces, relevant members of the Legal Reviewing TEPCO's legal framework Office make legal consultation visits to all TEPCO To improve legal compliance functions, TEPCO has offices, including branch offices, satellite offices, power reinforced the personnel and framework for those plants, and power functions and established a Legal Office in July 2007. system offices. The Legal Office provides support to front-line The visits are workplaces and Head Office departments, to heighten intended to awareness of legal compliance throughout the uncover and solve organization. legal issues and concerns that arise in daily business.
Legal affairs framework Legal consultation visit Up to June 2007 Legal consultation services Corporate Affairs Dept. Legal Group TEPCO has set up a legal consultation help line and an Intranet site, for use by any employee in any Application for Electric workplace who wishes to directly contact the Legal Equipment Group Office concerning legal issues and concerns they face in their daily business. FAQs on specific legal matters that have been referred to the Legal Office are available on From July 2007 the Intranet, for easy access and use by all employees Legal Coordination Group Corporate Affairs Dept. any time they wish. Legal Support Group Legal Office Corporate Legal Affairs Group
Application for Electric Equipment Group
We began making legal consultation visits from July 2007, immediately after establishment of the Legal Office. Since then, we have made 82 visits, and have covered all TEPCO offices, by May 2008. By personally visiting each office, including front-line workplaces, and meeting face-to-face with employees, we aimed to go beyond simply providing a law review, to providing more comprehensive support. We share legal issues and concerns that employees face in their daily work, and together work out possible solutions. We hope our activities will foster the capacity, in each and every employee, to respond appropriately to specific matters from a legal perspective.
Shunichi Kimura General Manager, Legal Office, Corporate Affairs Department
26 Measures to Prevent the Recurrence of Falsification and Other Improper Handling of Data on Power Generation Facilities
TEPCO has reflected deeply on the numerous cases of data falsification and inadequacies in legally prescribed procedures relating to its power generation facilities that have been confirmed since November 2006, and has emerged more committed than ever to prevent the recurrence of such incidents. While we are taking stringent measures to bolster our ongoing initiatives for creating a culture to prevent illegal activities that discourages misconduct and a mechanism for following the regulations that prevents misconduct, we are also taking additional measures to create a framework for speaking out about moral issues and concerns employees face in their work. The FY2008 Business Management Plan has been established based on verifications of the status and effectiveness of measures we have implemented to prevent recurrence of the recent incidents.
FY2007 Business Management Plan
ⅠAwareness measures (culture to prevent illegal activities) Ⅲ Structural measures (framework for speaking out) ① Enhance contents of the Corporate Code of Conduct for ① Reflect public opinion in business management Ethics Compliance ② Conduct concentrated operational reviews, such as by ② Provide better corporate ethics training suited to the establishing a Work Inspection Month characteristics of each department and workplace ③ Enhance the framework for managing facility troubles and ③ Require employees to sign a written oath of compliance nonconformities with corporate ethics ④ Strengthen support for alleviating the pressures of front- ④ Promote further rotation of personnel among departments line workers and offices ⑤ Strengthen legal and compliance functions to support front-line workplaces ⅡStructural measures(mechanism for following the regulations) ⑥ Review the management of operations in the nuclear ① Revise regulations and manuals to correspond to front-line power division workplace facilities and working conditions ② Strengthen and enhance internal auditing
FY2007 Implementation status
FY2008 Business Management Plan for preventing recurrence
Future policies Ⅱ Structural measures (mechanism for following the ● Continue to address and improve issues that have been regulations) found while verifying the implementation status and ● Improve regulations and manuals on an ongoing basis, by effectiveness of the recurrence prevention measures. revising them as necessary and utilizing an opinion system. ● Continue implementing the activities of the recurrence ● Continuously verify the implementation status of recurrence prevention measures study committee in FY2008, from a prevention measures through internal audits. cross-cutting, lateral perspective, to ensure thorough and ● Enhance the mechanism of Group-wide, lateral sharing of ongoing efforts by all employees. nonconformance information and recurrence prevention ● Reflect external views in recurrence prevention measures, measures. (New) as much as possible. ● Incorporate measures that are to be implemented on a Ⅲ Structural measures (framework for speaking out) continuous basis, into daily activities, as much as possible. ● Establish a mechanism for reflecting public opinion in business management ⅠAwareness measures (culture to prevent illegal activities) ● Continue holding Work Inspection Months, to promote ● Enhance training tools and continue providing training in concentrated reviews of operations. corporate ethics. ● Establish a firm framework for managing nonconformities. ● Continue rotating personnel among departments and offices ● Continue the implementation of support activities by the Legal Affairs Office. ● Promote communication with external stakeholders. (New)
27 Reaching for Sustainability
FY2007 CSR Activities and Plans for FY2008
Relevant Field Subject page(s) FY2007 goals
ecigfrSustainability for Reaching Upgrading corporate governance and ・Explore strategies for strengthening Group-wide internal controls, in line with basic policy P21 ・Continue development of internal controls relating to financial reporting, in preparation for internal controls the full-scale enforcement of the new law on financial products trading in April 2008
・Reinforce risk management effectiveness through training (training for risk management Stepping up risk management P22 officers and group managers)
Information security and personal Continue the strict management of personal information and confirmation of the P23 ・ information protection implementation status of protection measures
Ensuring corporate ethics and legal ・Implement measures to prevent the recurrence of improprieties (enhance provisions of the P24－26 Corporate Code of Conduct, require employees to sign a pledge of compliance with compliance corporate ethics, etc.)
・Strengthen proper management of environmental targets and internal environmental audits Improving environmental management P32－35 in each workplace ・Establish and improve the environmental management system in all Group companies niomna Initiatives Environmental [Supply-side initiatives] P36－43 ・Promote efforts to meet the goal of reducing CO2 emission intensity by 20% on average during the 5 years from FY2008 to 2012, compared to the FY1990 level Initiatives for global warming prevention
[ Initiatives with customers] P44－49 ・Promote efforts to reduce CO2 emissions by increasing energy efficiency throughout society
Measures against waste materials and ・Increase recycling efficiency of industrial waste by Group companies P50－51 ・Maintain the world's highest level in controlling SOx and NOx emissions hazardous substances ・Promote proper management of PCB waste and its safe, proper, and efficient disposal
・Design and construct power facilities in consideration of biodiversity Conservation of the natural environment P52－53 ・Continue nature preservation activities in Oze
Customers P60－61 ・Maintain and increase customer satisfaction by providing enhanced services
・Carry out social contribution activities on a continuous basis, in consideration of the Local communities P62－63 concerns and needs of local communities neato ihSociety with Interaction
・Disclose relevant information and hold communications with shareholders and investors on Shareholders and investors P58 a continuous basis
・Continue conducting supplier relations (SR) activities, and implement measures for Business partners P65 improving business activities based on the views of business partners ・Consider formulating CSR Procurement Guidelines
・Enhance disaster prevention activities based on case studies and the nature of each Employees-Ensuring safety business activity and facility ・Confirm the safety management system of Group companies and partner companies on a continuous basis, and provide relevant support
Promoting diversity and good work-life ・Expand the employment and occupational field of female employees, and promote their P66－69 development balance ・Formulate and promote voluntary action plans (phase 2) based on the Next Generation Law
・Reorganize and build training facilities to reinforce technical skills and knowledge (training Human resource development across departments)
28 Comment from a stakeholder: What kind of management practices are employed to enhance CSR activities? (Research institute)
In regard to CSR activities related to management and our interaction with society, we laterally evaluate and check our initiatives in reference to various materials on TEPCO's reply: CSR in Japan and abroad (GRI guidelines, questionnaire surveys by research institutes, etc.). In the case of CSR activities related to our interaction with the environment, we have set up an environmental management system, which establishes targets and monitors results, as a means of making continuous improvements.
FY2007 achievements FY2008 plans
・Explored strategies for strengthening Group-wide internal controls through the Internal Control ・Continue enhancing and strengthening internal controls by implementing the PDCA cycle System Study Committee based on basic policy. ・Documented business processes, established the necessary frameworks, and otherwise ・Employ proper internal controls for financial reporting, in accordance with the new law on prepared for the new standards of the Financial Services Agency financial products trading.
Implemented training for office managers ・ Consistently examine and improve the emergency framework and reinforce regular risk Reviewed and strengthened the disaster prevention framework, particularly against the ・ ・ management activities, including the promotion of awareness-raising activities at front-line occurrence of large earthquakes, based on lessons learned from the July 2007 Niigata- workplaces, based on lessons learned from the Niigata-Chuetsu-Oki Earthquake ・Chuetsu-Oki Earthquake
Implemented e-learning programs on personal information as part of employee training, and ・ Take measures to prevent leakage of in-house information regularly confirmed the management status of personal information (leakage of business ・ Continue implementing measures to ensure proper handling of personal information information: 2 incidents, loss of personal information: 2 incidents) ・
Enhance training tools and implement training programs on a continuous basis, to instill a Enhanced the provisions of the Corporate Code of Conduct, and distributed the revised version ・ ・ firm awareness of corporate ethics in all employees to all employees Implement activities to consistently support front-line workplaces through the Legal Affairs Virtually all employees signed a pledge of compliance with corporate ethics ・ ・ Office
Continue proper management of environmental indicators and systematic implementation Carried out checks and reviews of environmental indicators and internal environmental audits, ・ ・ of internal environmental audits through the Environmental Management Panel of the CSR Committee Support the continuous improvement of the environmental management systems of all Provided support to Group companies through the Group Environmental Committee ・ ・ Group companies Maintain safe and stable operations at nuclear power plants (initiatives toward Ensured safe and stable operations at nuclear power plants (initiatives toward recommencement・ ・ recommencement of operations at the Kashiwazaki-Kariwa Nuclear Power Station) of operations at the Kashiwazaki-Kariwa Nuclear Power Station) Increase thermal efficiency of thermal power plants Increased thermal efficiency of thermal power plants ・ ・ Expand the renewable energy use (achieve the targets prescribed by the RPS Law, promote Expanded renewable energy use (achieved the targets prescribed by the RPS Law, etc.) ・ ・ plans for the construction of new power plants, continue R&D initiatives) ・Earned more carbon credits ・Earn more carbon credits ・Disseminated the use of Eco Cute and other high-efficiency appliances ・Continue disseminating the use of high-efficiency appliances ・Carried out awareness-raising activities to increase participation in the CO2 Household Account ・Step up efforts to provide information and introduce tools related to global warming ・Book and CO2 Diet Declaration initiatives, and provided information through the TEPCO website prevention on a year-round basis ・Developed and introduced electric vehicles, and commercialized practical power supply systems・Further develop and introduce electric vehicles, and disseminate power supply systems to to eliminate idling eliminate idling Provided information and training on recycling, through the Group Environmental Committee ・ Increase recycling efficiency of industrial waste by Group companies Controlled SOx and NOx emissions by implementing measures related to fuel, operations, and ・ ・ Maintain the world's highest level in controlling SOx and NOx emissions facilities ・ ・Promote proper management of PCB waste and its safe, proper, and efficient disposal ・Properly managed and disposed of PCB waste
・Created green belts and biotopes around power plants ・Create green belts and biotopes around power plants ・Improved the plank trail in Oze and implemented volunteer tree-planting activities ・Improve the plank trail in Oze and implement volunteer tree-planting activities
・Consistently improved services, based on customers' opinions and customer satisfaction surveys ・Enhance efforts to maintain and increase customer satisfaction ・Provided training in reception manners, for all Group companies
Cooperate with local communities in examining and implementing policies for harmonious Carried out various community-based activities, including producer-consumer interaction events・ ・ coexistence in consideration of local situations
Disclosed relevant information, as necessary, on the impacts of the July 2007 Niigata-Chuetsu- ・ Disclose relevant information and maintain communications with shareholders and Oki Earthquake and on the status and future plans for the Kashiwazaki-Kariwa Nuclear Power ・ investors on a continuous basis Station FY2008 for Plans and Activities CSR FY2007
・Conducted SR activities, such as by holding orientation meetings on material procurement and ・Continue conducting SR activities, such as by holding orientation meetings and material small meetings in each procurement area procurement and small meetings in each procurement area ・Began discussions on the formulation of CSR Procurement Guidelines ・Create a framework for CSR procurement, including the green procurement system
・Laterally disseminated recurrence prevention measures for major disasters ・Specifically focus on developing human resources capable of promoting safety activities ・Exchanged views with partner companies on the status and improvement of their safety and on laterally disseminating recurrence prevention measures for major disasters, with the management system objective of further enhancing safety activities based on proper risk management
Created the necessary environment in each workplace to expand the occupational fields of ・ Continue creating the necessary environment for expanding the occupational fields of female employees ・ female employees, and upgrade efforts to increase their employment and develop their Formulated voluntary action plans (phase 2), and examined and implemented various policies, ・ skills such as for the development of an employment environment for child-rearing employees, and Make company-wide efforts to reduce working hours for the development of diverse working conditions based on a review of working styles ・
Reorganize and build training facilities to reinforce operational skills and knowledge Developed a portion of the power conversion/distribution training facility (outdoor training ・ ・ Develop human resources who possess skills appropriate to today's business environment, equipment, operation simulators, etc.) ・ such being able to identify and solve issues on their own
29 The TEPCO Group's Environmental Initiatives
Feature The TEPCO Group's Initiatives for Renewable Energies
Solar, wind, and hydroelectric energies and biomass are highly sustainable sources of power. They emit little CO2, minimize environmental burden, and contribute to conserving fossil fuels. For these reasons, renewable forms of energy are gaining widespread attention as potential solutions to the global warming issue. To expand their effective use, the TEPCO Group is pursuing a variety of initiatives, by drawing on the strengths of each of its companies. See page 31 and pages 40-41 for details of FY2007 achievements.
Eurus Energy Holdings Corporation's wind power station in Wales (UK) TEPCO Group is actively promoting increased renewable energy use from various angles, by maximizing Group-wide management resources. In addition to TEPCO's main electricity business, the TEPCO Group also engages in a host of operations related to renewable energies. We are contributing to increasing renewable energy use, by expanding power generation from renewable energy sources and promoting their diffusion. The TEPCO Group's initiatives for renewable energies Figures with an asterisk (*) indicate values as of March 31, 2008 Renewable energy use for power generation Renewable energy use in cooperation with customers Geothermal power generation 3,300 kW* Electric power generation (TEPCO) Wind power generation 500 kW* Cumulative amount purchased (FY1992-2007) Purchase of surplus power Solar power: 730 GWh Offices (TEPCO) 57 locations, 580 kW* Wind power: 730 GWh 6 countries, 1,491 MW Wind power generation See page 31 Cumulative total subsidy (FY2000-2007) → (as of May 31, 2008) Green Power Fund (Kanto region) 402 locations, approx. 99,000 kW Micro hydroelectric power generation 13 locations, 1,660.9 kW* Green Power Certification 148 organizations, 116 GWh Sludge carbonization Reduction of approx. 9,200 tons of CO2(per year) →See page 31 (annual contract volume) (biomass power generation) by using biomass in place of fossil fuels Research and development Offshore wind power generation and other methods of power generation Balancing stability and economic efficiency Cost of solar power generation systems (in Japan) Solar and wind energies are easily affected by natural Cost per 1 kW (10,000 yen) conditions and do not provide stable power output. Unless the 400 370 stability issue can be solved, they cannot be used as potential 350
sources of power to customers. However, at TEPCO, thermal 300 power generation systems and other power supply systems 250 consistently support the use of renewable energies and help stabilize power supplies. 200 200 170 Renewable energies were commonly thought to cost more than 150 120 major power supplies such as thermal and nuclear powers. 100 104 102 93 84 However, they have become less expensive than before, owing to 75 71 69 67 66 50 technological developments and the expanding use of renewable energies in recent years. A proper environment for the 0 1993 94 95 96 97 98 99 2000 01 02 03 04 05 introduction of renewable energy facilities is gradually emerging (FY) today. We believe it is important to effectively use renewable Source: Agency for Natural Resources and Energy, White Paper on Energy 2008 energies, while giving sufficient consideration to ensuring stable power supplies. 30 Case Study 1: Promoting wind power projects on a global scale Eurus Energy Holdings Corporation: www.eurus-energy.com/english/index.html World Wind power generation is easily affected by wind and other natural conditions. Therefore, the key to using wind energy effectively lies in the proper assessment of the characteristics of the region where wind power facilities are installed. Eurus Energy Holdings Corporation, a wind power company Europe Asia founded by TEPCO and Toyota Tsusho Corporation, operates wind 726MW 421MW North America power projects around the world, based on its broad accumulation 344MW of knowledge and experience in wind power generation. It capably handles all aspects of wind power generation, from the selection of an optimum site, through the implementation of wind surveys, creation of business plans and the construction of facilities, to actual operation and maintenance. As of May 31, 2008, the Japan (overall) 323MW Hokkaido company operates 2,206 wind turbines and wind power facilities (119 MW under construction) Soyamisaki Wind Farm with a total capacity of 1,491 MW, in 3 regions and 6 countries Akita 57 MW throughout Asia (including Japan), North America, and Europe. Hamatonbetsu Wind Farm Nishime Wind Farm 4 MW The company has grown into the largest wind power developer in 30MW Enbetsu Wind Park Japan and one of the world leaders in the field. In 2008, it Tashirodaira Wind Farm 3 MW commenced a solar power generation project in Korea, and is 8MW Tomamae Green Hill Wind Park Shimane 20 MW steadily expanding its business field. Shin-Izumo Wind Farm Aomori Wind power generation capacity 78 MW (under construction) （MW） Iwaya Wind Farm 2,000 Tokushima 33 MW Okawara Wind Farm Shitsukari Wind Farm 20 MW (under construction) 19 MW Odanosawa Wind Farm 1,500 1,491 13 MW 1,385 1,323 Eurus Hitz Kitanozawa Cliff Wind Farm 1,132 Wakayama 12 MW 1,000 1,019 Aritagawa Wind Farm Noheji Wind Farm 874 Ehime 13 MW (under construction)50 MW 705 613 Seto Wind Farm Mameda Wind Farm 500 553 8 MW (under construction) 11 MW Kagoshima Iwate Kihoku Wind Farm 21 MW 0 Kamaishi Wind Farm 2000 2001 2002 2003 2004 2005 2006 2007 2008(FY) 43 MW (May) (as of May 31, 2008)
Case Study 2: Acknowledging the environmental value of natural energies with the Green Power Certification System
Many companies and organizations may wish to use natural Mechanism of the Green Power Certification System Green Power Certification Council energies, but doing so independently is not easy, particularly in 1 Contract for natural 4 Certification of performance consideration of the initial investment required for installing solar energy power generation Natural energy power generation companies generation power energy Natural panels or wind turbines and their maintenance. and organizations) Customers (corporations 2 Sale of Subcontracting environmental Japan Natural Energy Based on this understanding, TEPCO and a number of other 5 (wind power, biomass, etc.) value of natural Issuance of Company Limited energy use electric power companies and trading firms have jointly a Green Power Certificate 3 established Japan Natural Energy Company Limited (JNEC) as the Power generation performance report operating body for the Green Power Certification System, a system Electric power 6 for trading the environmental value of natural energies in the form company serving Sale of power Electric power the area of of a certificate (as proof of environmentally friendly power Usual power company in the relevant natural Sale and supply customer's area energy power Power utilization generation). Under this system, corporate customers consign generation companies off-take of electric power power generation using natural energies to JNEC and receive Power purchasing cost certificates according to the amount of natural energy-derived Number of clients and amount of power contracted under power that is generated by a subcontracted power generation the Green Power Certification System company. The service is becoming increasingly popular, as it 150 (Clients) 116.12 120 (GWh) allows corporate customers to use natural energies without Amount of contracted power owning power generation facilities themselves. As of March 31 125 Number of clients 100
2008, corporate customers have contracted to purchase 116 GWh 148 of power under this system. 100 80 We will continue to actively promote this system, as a sustainable system that efficiently promotes the diffusion of 75 60 natural energy use in society. 50 40 Japan Natural Energy Company Limited (JNEC): www.natural-e.co.jp/english/index.html 25 20
0 0 31 2000 2001 2002 2003 2004 2005 2006 2007 (FY) The TEPCO Group's Environmental Initiatives
Environmental Management
The TEPCO Group actively addresses TEPCO's environmental management environmental issues based on the TEPCO system conforms to ISO14001. Group Basic Environmental Philosophy.
The TEPCO Group addresses environmental The Environmental Management Panel established issues under a common management vision, based on under the CSR Committee in the TEPCO Head the TEPCO Group Basic Environmental Philosophy Office sets environmental policies and targets for the and the TEPCO Group Environmental Action entire Group, promotes environmental measures, Guidelines. Each Group company establishes its own and checks and reviews the results of environmental environmental goals and policies as laid out in the activities. In other offices, the Environmental TEPCO Group Basic Environmental Philosophy, Committee assumes that role. according to their business lines and their interaction The TEPCO Advisory Committee on with the environment. Environmental Affairs, composed of outside experts and specialists, provides guidance and advice on TEPCO Group Basic Environmental Philosophy improving TEPCO's environmental initiatives. (See pages 76-77 for details.) The TEPCO Group will: Additionally, TEPCO and 38 Group companies ● Fulfill social responsibilities as a business enterprise to have established the Group Environmental pave the way for sustainable development in the 21st Committee, to improve the Group's environmental century, by taking positive measures for the solution of management by sharing information, reducing environmental problems, including global warming; environmental risks, and publicly disclosing ● Endeavor to achieve the reduction of environmental risks, pertinent information. including air pollution control, by continually improving the environmental management system, while carrying out eco-efficient business activities with consideration given to the reduction of CO2 emissions, waste recycling, and Environmental management framework energy and resource conservation; and ● Aim to create a society suitable for the 21st century by increasing the transparency of corporate activities through Auditors extensive information disclosure while repeatedly holding Advisory Committee on President Board of Managing interactive dialogues with customers, investors and other Directors Environmental Affairs people interested in our business operations.
TEPCO Group Environmental Action Guidelines CSR Committee Related departments Environment Dept. ●Environmental Management Environmental Management Panel Group Environmental ・ Establishment and continual improvement of an environmental Committee management system ・ Compliance with the applicable laws and ordinances Offices ※ ・ Implementation of educational programs for employees Environmental Audit Team General Managers ・ Promotion of green procurement ●Environmental Preservation Environmental ・ Prevention of environmental pollution Committee Environmental officers ・ Protection of biodiversity ・ Reduction of greenhouse gas emissions ・ Promotion of energy and resource conservation Frontline workplaces Departments ・ Promotion of waste recycling ●Environmental Communication ※ Offices: Branch offices, power system offices, thermal power offices, ・ Establishment of environmental partnerships with society nuclear power stations, construction offices
Environmental policies of each Group company
32 Environmental management at TEPCO offices Upgrading the environmental management of TEPCO TEPCO offices, including branch offices and power Group stations, implement environmental conservation The Group Environmental Committee implements activities under an environmental management system various environmental measures in collaboration with that conforms to the ISO14001 standard. The Group companies, by drawing on the strengths and Environmental Committee in each office sets expertise of each company. environmental targets and supervises daily activities, Tokyo Electric Power Services Company, Limited while an Environmental Audit Team composed of provides internal environmental audit training, as well as employees conducts internal environmental audits and guidance and advice on environmental management verifies the effectiveness of the system. systems, to help each company build an effective system Furthermore, as measures to enhance environmental and optimize its operations. As of March 2008, 30 awareness and knowledge among employees, we TEPCO Group companies have successfully built a provide in-house training through environmental e- system that conforms to the ISO14001 standard. learning programs and lectures on environmental laws Tokyo Electric Power Environmental Engineering and regulations, post information concerning Company, Incorporated plays a central role in promoting environmental issues on the Intranet, and provide resource recycling. It aims to achieve a 100% recycling consultation services. rate for industrial waste materials, by providing TEPCO offices are also making individual efforts to information on recycling and holding workshops on acquire ISO14001 certification, as an effective means proper waste disposal. (See page 51 for details.) for receiving objective third-party assessments that they TEPCO Group could use to upgrade their environmental management companies also keep system. track of their environmental load ISO14001 certification status targets and achievements, Office Scope of registration Registration compile environmental activity reports, and Yamanashi disclose them on their Branch Office All offices under its management December 27, 1999 respective websites. Group Environmental Committee Chiba Branch Office ※1 All offices under its management March 29, 2000
Kashiwazaki-Kariwa Entire site of the Kashiwazaki-Kariwa August 20, 2001 Tokyo Electric Power Services Company, Limited : Nuclear Power Station Nuclear Power Station www.tepsco.co.jp/index_e.html Head office and all thermal power Tokyo Electric Power Environmental Engineering Company, Higashi Thermal stations under its operation (the Chiba, February 25, 2002 Power Office ※2 Goi, Anegasaki, Sodegaura, Incorporated : www.tee-kk.co.jp (Japanese only) and Futtsu Thermal Power Stations) Head office and its Minami-Yokohama, Nishi Thermal Environmental performance (FY2007 results) ※ Higashi-Ohgishima, and March 25, 2003 Power Office 3 Yokohama Thermal Power Stations Group ※3 ※1 The scope of registration was expanded to include all offices under the management Item TEPCO companies of the branch office on March 29, 2006. ※2 The scope of registration was expanded to include all offices of the thermal power CO2 emissions ※1 112,000 t-CO2 43,000 t-CO2 office on February 25, 2003. ※3 The Yokohama Thermal Power Station was added to the scope of registration on Electricity used in offices ※2 235 GWh 77 GWh September 24, 2004. Water usage 1.34 million m3 0.44 million m3
Vehicle mileage 0.095 R/km 0.101 R/km (gasoline consumed per driving distance) Gasoline consumption 5,280 kR 4,560 kR Amount of copy/printer paper purchased
220 million sheets Management Environmental (A4 equivalent) 310 million sheets Industrial waste recycling rate 100% 92%
Industrial waste produced 784,000 t 1,210,000 t
※1 Calculated based on electricity and gasoline consumption within offices. CO2 emission intensity used to calculate electricity consumption: 0.425 kg-CO2/kWh (based on TEPCO's FY2007 results) CO2 emission intensity used to calculate gasoline consumption: 2.32 kg-CO2/R ※2 Excludes electricity used in power stations ※3 Refers to the 33 Group companies that comprise the Group Environmental Committee Lecture on environmental laws and regulations
33 The TEPCO Group's Environmental Initiatives
Inputs and Outputs in the Electricity Business
TEPCO inputs various resources to generate and deliver electricity to our customers, and outputs environmental loads and waste. To minimize resource consumption and environmental loads, we are striving to increase power generation efficiency, promote waste recycling, and reduce air pollutants. (Note) Figures may not sum to the total, due to rounding.
INPUTS Coal 3.46 million t Fuel for nuclear power Power for pumping Wind power Heavy oil 6.84 billionR generation ※1 Approx. 192 t water 5.8 TWh Crude oil 3.20 billionR Geothermal energy NGL 20,000 kR Water for power LNG, LPG 20.19 million t generation 980,000 m3 Natural gas 20 million Nm3 City gas 1.19 billion Nm3 Diesel oil 30,000 kR Water for 9.29 million m3 ※ 1 Amount of uranium fuel power generation required for amount of energy (incl. all inputs other than fuel input (calculated based on for steam power generation) design values)
Hydroelectric Natural energy Thermal power generation Nuclear power generation power generation power generation
From thermal power generation From nuclear power generation OUTPUTS
※2 3 Radioactive waste Wastewater 5.88 million m Gases emitted Cumulative amount of low-level Industrial waste 784,000 t to the atmosphere radioactive waste in storage (amount sent to landfill CO2 126.5 million t 219,589 drums (200R) 300 t) SOx 31,000 t Cumulative amount of high-level NOx 38,000 t radioactive waste in storage 261 canisters
Power generated 193.1TWh 68.3TWh 12.1TWh 14GWh
Purchased from other companies Power used in power stations ▲10.1TWh 55.4TWh ［Of the above, surplus power purchased from private solar and wind power generation systems 0.5TWh］ 3 Power transmitted ※ 313.0TWh Power for pumping water (restated) ▲5.8TWh ※3 Power transmitted = power generated + power purchased from other companies - power for pumping water - power used in power stations
Transmission loss ▲15.1 TWh Power used in substations ▲0.4 TWh
Power sold to customers 297.4 TWh
※2 Radioactive waste is reported as cumulative amounts of low-level and high-level radioactive waste in storage, because yearly results fluctuate for reasons other than power generation status, such as compaction by compression and incineration (low-level waste) and shipping to and from overseas points for reprocessing (high-level waste). Cumulative amount of low-level radioactive waste in storage: Cumulative amount in storage at the Fukushima Daiichi, Fukushima Daini, and Kashiwazaki-Kariwa Nuclear Power Stations, as of March 31, 2008 Cumulative amount of high-level radioactive waste in storage: Number of canisters (stainless steel containers 0.4 m in diameter and about 1.3 m high) returned from France and stored by Japan Nuclear Fuel Limited at its Vitrified Waste Storage Center (Rokkasho-mura, Aomori Prefecture), as of March 31, 2008 34 Environmental Indicators
We use environmental indicators to assess major environmental impacts and the effectiveness of environmental conservation measures. We also set numerical targets for environmental initiatives, whenever possible. Global warming indicators See pages 36-49 for information on specific initiatives. Results Target CO2 (carbon dioxide) Unit FY1990 FY2006 FY2007 FY2008 Future
20% reduction on average over the five-year period CO2 emission intensity kg-CO2/kWh 0.380 0.339 0.425 between FY2008 and FY2012, compared to FY1990
Nuclear facility utilization rate % 71.3 74.2 44.9 ─ ─ Related Thermal power generating efficiency 46.1 45.6 Maintain the front-runner position indicators (lower heating value) % 42.2 Amount of power from natural energies Expand as much as possible purchased GWh ─ 340 500 Nuclear facility utilization rate dropped considerably in FY2007, due to the closure of the Kashiwazaki-Kariwa Nuclear Power Station following the Niigata-Chuetsu-Oki Earthquake. We compensated for the loss in generating capacity by relying on thermal power generation. As a result, CO2 emission intensity in FY2007 increased about 25% over the previous year.
Results Target SF6 (sulfur hexafluoride) Unit FY1990 FY2006 FY2007 FY2008 Future
Recovery of SF6 gas during equipment maintenance % ─ 96 98 97 ─
Recovery of SF6 gas during equipment dismantlement % ─ 97 99 99 ─ Owing to effective recovery measures, we have fulfilled our FY2007 targets (97% during maintenance, 99% during dismantlement).
Local environment indicators See pages 50 and 73 for information on specific initiatives. Results Target Air pollutants Unit FY1990 FY2006 FY2007 FY2008 Future
SOx emission intensity (average of all power sources) g/kWh 0.17 0.05 0.11 Maintain the < 0.1 by FY2017 world's cleanest NOx emission intensity (average of all power sources) g/kWh 0.22 0.08 0.14 levels < 0.1 by FY2017
FY2007 SOx and NOx emission intensities both increased over the previous year, due to the increased share of oil-fired thermal power Indicators Environmental / Business Electricity the in Outputs and Inputs generation, which discharges SOx and has a relatively high NOx emission intensity.
Results Target Radioactive substances Unit FY1990 FY2006 FY2007 FY2008 Future < Evaluated value of public radiation dose in the vicinity mSv/year < 0.001 < 0.001 < 0.001 < 0.001 0.001 by of nuclear power stations FY2017 At all TEPCO nuclear power stations, public radiation exposure is sufficiently below both the regulatory value (1 mSv/year) and the target dose value set forth in the guidelines of the Nuclear Safety Commission (0.05 mSv/year).
Results Target PCBs (polychlorinated biphenyls) Unit FY1990 FY2006 FY2007 FY2008 Future Pole transformer R R (used as low-concentration insulating oil) k /year ─ 3,415 3,665 3,000k /year, from FY2008 Pole transformer About 102,000 units/year, (used in cleaning the main housing unit) unit/year ─ 72,840 110,098 from FY2008 We achieved our target values for FY2007 (insulating oil: 3,000 kR, main housing: about 102,000 units), thanks to an increase in processing speed and improved efficiency of the processing framework.
Resource recycling indicator See page 51 for information on specific initiatives. Results Target Industrial waste Unit FY1990 FY2006 FY2007 FY2008 Future
Industrial waste recycling rate % 86 99.9 100 Maintain current level Industrial waste recycling rate stood at roughly 100% in FY2007, owing to effective recycling efforts. 35 The TEPCO Group's Environmental Initiatives
Global Warming Countermeasures - Overview
Creating a low-carbon society is one of 地球温暖化防止に向けて国際的なJapan has strengthened its efforts to the foremost issues of the international 枠組achieveみづくりが進んでいます。 the target of the Kyoto Protocol. community.
Among all greenhouse gases, CO2 has the greatest Japan's greenhouse gas emissions in fiscal 2006 impact on global warming. Global CO2 emission is increased 6.2% against the base year, making continuing to increase with the use of fossil fuels, and Japan's prospect of achieving the Kyoto target as is expected to increase further, particularly in challenging as ever. Judging the need for more developing countries such as China and India, whose earnest measures, the Japanese government economies are growing at an extremely rapid pace. established additional measures to cut greenhouse 2008 marked the beginning of the first commitment gas emissions in March 2008, and revised its Kyoto period of the Kyoto Protocol, which stipulates Protocol Target Achievement Plan. greenhouse gas reduction targets for developed countries as a first step in tackling global warming. Outlook of greenhouse gas emissions in FY2010 However, the present situation under the Kyoto (million t-CO2) Principle additional measures Protocol has not been considered satisfactory because +6.2% ・Promote voluntary action plans against base year ・Increase energy saving performance not all major emitting countries have committed in homes and buildings Promotion of emission ・Disseminate top-runner appliances 1,340 control measures and themselves to reduction obligations. ・Improve vehicle mileage policies ・Promote new energy measures Global CO2 emission outlook ▲0.8 - ▲1.8% (billion t-CO2) against base year Kyoto Protocol 50 1,261 target ▲6.0% 45 China against base year Achievement of the 40 India target using the Kyoto 1,186 Asia mechanism for carbon 35 (excl. China, and forest sequestration India, and 30 developed countries) 25 Developing Base year of 2006 2010 (FY) 20 countries the Kyoto Protocol (excl. Asia) Source: Ministry of the Environment website 15 Japan 10 USA Voluntary action plans in domestic industries 5 Industries that account for a large share of greenhouse Other 0 gas emissions are making voluntary efforts to contribute 1990 2004 2010 2015 2020 2025 2030 (year) to achieving Japan's national target. Source: EIA, International Energy Outlook 2007 International initiatives to prevent global warming Nippon Keidanren (Japanese Business Federation) In December 2007, the 13th Conference of the Parties [Indicator] CO2 emissions from the industrial and energy conversion sectors (COP13) to the United Nations Framework Convention on Climate Change (UNFCCC) culminated in the FY1990 FY2006 Target (FY2008-2012 average) adoption of the Bali Action Plan, which includes an agreement to establish, by the end of 2009, a new 512 million t 505 million t Lower than the FY1990 level international framework designed to tackle climate change after 2012, when the first commitment period of Nippon Keidanren: www.keidanren.or.jp the Kyoto Protocol comes to an end. In response, international negotiations on creating a low-carbon society on a global scale have taken place on the various The Federation of Electric Power Companies of Japan kinds of the negotiation platforms. [Indicator] CO2 emission intensity on the user side
2008 FY1990 FY2006 Target (FY2008-2012 average) July Hokkaido Toyako Summit / Major Economies Meeting (MEM) 0.417 kg- 0.410 kg- Reduction of about 20% against December COP14 (Poznan, Poland) the FY1990 level CO2/kWh CO2/kWh (about 0.34 kg-CO2/kWh) 2009 (Scheduled) June Italy Summit The Federation of Electric Power Companies of Japan: December COP15 (Copenhagen, Denmark) www.fepc.or.jp/english/ In addition to the above, various other special meetings on the new international framework after 2012 will be held throughout the period 36 from March 2008 to December 2009. TEPCO is steadily working toward its TEPCO addresses to reduce CO2 voluntary CO2 emission intensity emissions from three perspectives. reduction target.
The electric power industry accounts for roughly We are actively pursuing measures to reduce CO2 30% of Japan's total CO2 emissions. Particularly, as emissions in the power generation process, by TEPCO responsible for roughly 10% of Japan's total maintaining safe and stable operations of nuclear CO2 emissions, we consider the global warming issue power stations and increasing the thermal efficiency as one of its top business issues. of thermal power stations. At the same time, we are Our Management Vision 2010 sets a voluntary actively promoting the use of high-efficiency target of reducing CO2 emission intensity* by 20% appliances and disseminating information on energy on average during the five years between fiscal 2008 saving, because we believe that efficient use of and 2012, compared to fiscal 1990. Even while electricity by our customers is one of the keys to electricity sales are increasing, we are making reducing CO2 emissions throughout society. various initiatives to reduce CO2 emission intensity Furthermore, we are implementing various and control CO2 emissions. greenhouse gas reduction initiatives in collaboration In fiscal 2007, our CO2 emission intensity increased with countries around the world. considerably, due to out of service of the In these ways, TEPCO is comprehensively Kashiwazaki-Kariwa Nuclear Power Station addressing the global warming issue through supply- following the Niigata-Chuetsu-Oki Earthquake, but side initiatives, international cooperation initiatives, hereafter, we will still make out best efforts to and initiatives with customers. achieve our target. ＊CO2 emission intensity CO2 emission intensity is the amount of CO2 emitted when 1 kW of TEPCO global warming countermeasures electric power is used. The amount of electric power that is used varies depending on weather conditions and customer needs, and cannot be directly controlled by electric power companies. Therefore, Supply-side initiatives Ensure safe and stable operations electric power companies establish CO2 reduction targets in terms of of nuclear power stations CO2 emission intensity. Increase thermal power efficiency CO2 emissions, emission intensity, and nuclear facility Expand renewable energy use utilization rate (million t-CO2) See pages 38-41 for details. (TWh) (kg-CO2/kWh) 350 0.7 Electricity sales International 300 297.4 0.6 cooperation initiatives Utilize the Kyoto Mechanisms 250 219.9 0.425 0.5 Promote sectoral approaches 200 0.4 CO2 emission intensity 150 0.3 See pages 42-43 for details.
0.380 Target Overview - Countermeasures Warming Global 100 0.2 0.304 Initiatives 50 0.1 with customers CO2 emissions Promote high-efficiency appliances 83.6 0 126.5 0.0 Advocate eco-friendly lifestyles 1970 75 80 85 90 95 2000 05 07 (FY) (%) 100 See pages 44-49 for details. 80 Nuclear facility utilization rate 60 40 71.3 44.9 20 0 1970 75 80 85 90 95 2000 05 07 (FY)
(Note) TEPCO's CO2 emission intensity is calculated based on the "greenhouse gas emissions calculation, reporting, and disclosure system" prescribed in the Law Concerning the Promotion of Measures to Cope with Global Warming. Note that the system does not take into consideration CO2 reduction values issued under the Green Power Certification System or other such mechanisms. 37 The TEPCO Group's Environmental Initiatives
- Supply-side Initiatives
CO2 emission reduction through use of nuclear power Nuclear facility utilization rate has direct generation etc. bearing on CO2 emissions. Nuclear and hydroelectric energies are excellent sources of power, because they emit no CO2 in the process of generating power. We actively utilize such non-fossil fuel energies, combined with use of LNG, After out of service of the Kashiwazaki-Kariwa which produces the least amount of CO2 among all Nuclear Power Station following the Niigata- thermal power sources, to substantially reduce CO2 Chuetsu-Oki Earthquake in July 2007, we emissions. compensated for the loss in generating capacity by CO2 emission reduction through the combination of relying on thermal power generation. As a result, power sources (FY2007) CO2 emissions in fiscal 2007 increased by about 28.9 Natural energies 0.3 million t million tons, and totaled 126.5 million tons, while Hydroelectric power 9.1 million t CO2 emission intensity increased about 25% over the LNG thermal power 34.5 million t previous year, to 0.425 kg-CO2/kWh. CO2 emission 2 reduction Nuclear facility utilization rate and CO emissions Nuclear power Nuclear facility utilization rate in fiscal 2007 dropped 50 million t from 74.2% in the previous year to 44.9%. Since nuclear 220.4 Reduction power generation emits no CO2 in the process of million t generating power, the operating rate of nuclear facilities Breakdown of reduced CO2 emissions has a large bearing on CO2 emissions. For every 1% increase in the utilization rate of nuclear facilities, 126.5 TEPCO reduces CO2 emission approximately 1 million million t tons. TEPCO energy output by energy source
FY2006 CO2 emission intensity : 0.339 kg-CO2/kWh Estimated CO2 emission Actual CO2 emissions New energies 0% from conventional oil-fired Geothermal % Hydroelectric 0 power generation Nuclear LNG, LPG Coal Oil 38% 6% 38% 8% 9% Lifecycle CO2 emissions for different types of power Other gases 1% (g-CO2/kWh (transmitting end)) Fuel combustion for power generation 1000 Construction/operation of facilities FY2007 CO2 emission intensity : 0.425 kg-CO2/kWh 975 New energies 0% 887 Geothermal % Hydroelectric 0 800 Nuclear LNG, LPG Coal Oil 742 23% 6% 44% 9% 17% 704 Other gases 1% 600 608 International comparison of nuclear facility utilization rate 478 519 407 400 100 (%) 95.0 91.1 200 80 72.6 73.3 77.7 74.2 69.7 130 88 111 0 38 53 29 22 15 11 60 Coal-fired Oil-fired LNG-fired LNG-fired Solar Wind Nuclear Geothermal Hydroelectric thermal thermal thermal thermal energy energy energy energy 44.9 (combined) 40 (Note 1) Figures may not sum to the total, due to rounding. (Note 2) The above figures include CO2 emitted in the process of burning fuel to generate power, as well as CO2 emissions from all energy uses, such as for the extraction of 20 raw materials, construction of power generating facilities, fuel transportation and refining, and plant operation and maintenance. CO2 emissions from nuclear power include emissions from domestic reprocessing of spent fuels that is currently being planned, the utilization of plutonium-thermal energy (on the assumption that it is 0 recycled once), and from the disposal of high-level radioactive waste. Japan UK Russia France USA Korea TEPCO TEPCO Source: Report by the Central Research Institute of Electric Power Industry and others FY2006 FY2007 (Note) All figures, excluding TEPCO figures, are 2005 values. Source: Japan Nuclear Energy Safety Organization, Annual Report of the Status of Nuclear Facilities in Japan (FY2007 edition) 38 Comment from a stakeholder: I'd like to know how the Niigata-Chuetsu-Oki Earthquake affected TEPCO's CO2 emission intensity. (Questionnaire)
CO2 emission intensity has significantly increased, with the suspension of operations at the Kashiwazaki-Kariwa Nuclear TEPCO's reply: Power Station. We are making every effort to repair and restore the facilities, giving top priority to safety, to reopen the plant as soon as possible.
TEPCO is significantly reducing CO2 TEPCO is actively addressing to develop emissions by increasing the thermal technologies for reducing CO2 emissions. efficiency of thermal power generation.
Thermal energy is an important source of power IGCC (integrated coal gasification combined cycle) that can flexibly respond to changes in power Coal is more widely available in abundance compared demand and provide a stable supply of electricity. To other resources, and is an important energy source to minimize the consumption of fossil fuels and thereby Japan, as Japan is largely dependent on imports for fuel reduce CO2 emissions, we are working to increase resources. In order to take advantage of the benefit of thermal power generation efficiency, such as by coal, which enables stable and economical supply of implementing high-efficiency power generating electricity, and to reduce CO2 emissions significantly, facilities. TEPCO is addressing to develop an integrated coal gasification combined cycle (IGCC) system, which Installation of high-efficiency power generating facilities could provide high-efficiency power generation by In June 2007, we began operation of a 1500℃ means of a combined cycle that gasifies and burns coal. combined-cycle power generation system (More Commercial implementation of the system is expected to Advanced Combined Cycle (MACC) system) at our boost coal-fired thermal power generation efficiency to Kawasaki Thermal Power Station. The system boasts a 48-50% (LHV standard; transmitting end), while thermal efficiency of 59%, which is among the highest emitting only the same amount of CO2 as oil-fired levels in the world. We plan to also install the system in thermal power generation. With an aim to our Futtsu Thermal Power Station in July 2008. Owing commercializing the technology, we are currently to this and other measures to improve thermal efficiency, conducting demonstration tests, to further examine its we are reducing about 1.7 million tons of CO2 emissions thermal efficiency, environmental performance, and for every 1% increase in thermal power generation durability. efficiency. Thermal efficiency of TEPCO's thermal power stations CCS (carbon dioxide capture and storage) (lower heating value) Carbon dioxide capture and storage (CCS) is a process (%) for capturing CO2 released from power stations and 60 Kawasaki Group 1 59％ plants and storing it underground or in the sea for long- Design thermal efficiency by class term isolation from the atmosphere. IPCC* considers Yokohama Groups 7 & 8 54.1％ 55 this technology as one of the effective methods for Futtsu Groups 1 & 2 Futtsu Group 3 tackling global warming, and R&D activities for this 50 47.2％ 55.3％ Unit 1 Kashima Units 5 & 6 Kashima technology have been implemented all over the world. 42.7％ 43.2％ 45 TEPCO is also conducting studies on technologies for Initiatives Supply-side - Countermeasures Warming Global 42.4 45.6％ capturing CO2 by using a small-scale test plant, as well 40 as basic research on CO2 storage, solidification, and 39.6 utilization technologies. Although it will still take some 35 Thermal power generation efficiency (steam-power generation) time to apply the technologies to Japan's power stations, 19709590858075 2000 05 07 2010 (FY) we intend to continue our basic research from the International comparison of thermal power generation medium- and long-term perspectives. ＊IPCC efficiency Intergovernmental Panel on Climate Change. Assesses the latest (%) scientific, technical and socio-economic literatures produced 50 worldwide relevant to the understanding of the risk of human-induced 45 45.6 climate change, and provides objective advice to the governments of 43.6 42.2 43.4 member countries. 40 39.3 40.5 41.6 38.0 CO2 separation/capture and underground storage technology 35 35.9 31.6 30 30.0 Separation and capture Injection from marine facilities Injection from Large scale emission 25 source
China India Australia USA Germany Korea South countries Nordic France Japan UK/Ireland TEPCO land-based facility
Transport via pipeline
(Notes) Thermal efficiency values represent weighted average thermal efficiencies of coal, Impermeable bed oil, and gas on the power generating end (LHV standard). CO2 The thermal efficiency of independent power generation equipments is not included. Impermeable bed The figure for TEPCO is FY2007 result. Other figures are 2004 values. CO2 Source:ECOFYS, "Comparison of Efficiency Fossil Power Generation" Onshore aquifer Offshore aquifer Source: Based on Ministry of Economy, Trade and Industry, "CCS2020" 39 The TEPCO Group's Environmental Initiatives
- Supply-side Initiatives (Renewable Energies)
Wind power generation and the Green Power Certification System are featured on page 31.
TEPCO is steadily achieving its quota of TEPCO is advancing the use and R&D of renewable energy use. renewable energies in the electricity sector.
Solar and wind energies are environmentally- Use of wind, geothermal, and solar energies friendly, renewable sources of power. TEPCO has In 2000, TEPCO began commercial operations at a long been promoting their use, by conducting R&D wind power station in Hachijojima, for the first time in activities, introducing relevant facilities, and Japan by an electric power company. Hachijojima is also supporting their diffusion. Owing to these efforts we home to our geothermal power station, which generates are steadily achieving our quota of renewable energy power using magma energy. use prescribed by the RPS Law*. Additionally, in our offices, ＊RPS Law we have installed solar and Renewable Portfolio Standards Law. The law requires electric power wind power facilities, to companies to use renewable energies to generate a certain supplement electricity used percentage of the electric power they sell. in those offices. TEPCO's RPS obligation achievements and outlook Hachijojima Geothermal Power (TWh) Station 5 Higashi-Izu Wind Power Station 4 TEPCO is planning to build a wind farm straddling the villages of Higashi-Izu and Kawazu in Shizuoka 3 Prefecture, with an aim to commence operations in 2 1.86 October 2011. In the adjacent region, Eurus Energy 1.15 1.33 0.99 1.08 Holdings Corporation, a TEPCO Group company, is also 1 planning to build a wind farm, as part of the Group-wide 0 effort to promote wind power generation. 2005 2007 2010 2014 (FY) (Note) Power sources subject to the RPS Law (incl. conditional application) Overview of TEPCO's Higashi-Izu Wind Power Station ・Solar, wind, biomass, small & medium hydroelectric, and geothermal energies ・ TEPCO's hydroelectric and geothermal power generations exceeding 1,000 kW Location are not subject to the law. Higashi-Izu-cho and Kawazu-cho, Kamo-gun, Shizuoka Prefecture Power generation plan Construction of the Tochikawa Hydroelectric Power Rated output of each unit 1,670 kW (planned) Station Number of units 11 Shizuoka Prefecture Hydroelectric power has been a major source of Total rated output 18,370 kW (planned) energy in Japan from early on. It is advantageous in Scheduled start of construction terms of its stable supply and environmental April 2009 friendliness, and is one of the few resources in which Scheduled start of operations 1,670kW(planned)×11units Japan is self-sufficient. October 2011 TEPCO is currently moving forward with a plan for Study of offshore wind farms the construction of a penstock-type hydroelectric power TEPCO is actively conducting a study of floating station with a maximum capacity of 1,000 kW, on the offshore wind farms with the University of Tokyo and Tochikawa River. Commencement of operations at the other relevant parties. To make maximum use of the new power station, which is slated for the end of 2010, is powerful wind energies along the coast of the Kanto expected to bring a CO2 reduction effect of about 1,900 region, we are studying the impacts that a floating tons/year. offshore wind farm may have on safety and the stringent Conceptual diagram of the Tochikawa Hydroelectric conditions of Japan's natural environment. We are also Power Station Intake weir investigating the Max.0.73k/s Tochikawa technical aspects of River building such a wind Water flow farm, including the Tochikawa Effective elevation drop construction of grounded Hydroelectric About 175m Power Station foundations and floating Max. capacity: Penstock length platforms corresponding Discharge 1,000kW channel About 1.8km to sea depth. Conceptual image of the floating offshore wind farm (to Tochikawa River) 40 Biomass power generation Bio Fuel Co., Inc. a TEPCO Group company, We are expanding renewable energy use, carbonizes sewage sludge for reuse as feedstock in coal- with the cooperation of our customers. fired thermal power stations. Conventionally, sludge has been disposed of, either by burning or burying, but the Challenges of TEPCO > New Energies effective use of sludge as biomass fuel is expected to reduce greenhouse gases. Green Power Fund TEPCO actively supports the Green Power Fund Mechanism of recycling biomass fuel (in the case of Tokyo) system operated by the Greater-Kanto Industrial Treatment center Biomass fuel Coal-fired thermal Power generation using Advancement Center (GIAC), to promote the use of "Carbonization of power station biomass fuel sludge" renewable energies. Under this system, TEPCO collects Reduction of about Reduction contributions of 500 yen per month from customers and 37,000 t / year of about donates them to GIAC, along with its own contributions of greenhouse 9,000 t / year Wastewater gases sludge of greenhouse matching the amount collected from customers. In fiscal gases 2007, our customers have contributed a total of 115 million yen, and TEPCO has contributed the same Wastewater amount. Green Power Fund system Recycled into construction and land reclamation materials Power sales Purchase
Ash Pa
rticipants TEPCO TEPCO service area Bio Fuel Co., Inc.: www.biofuel.co.jp (Japanese only) Donation Donation Subsidy Pa Micro-hydroelectric power generation Deposit rticipants TEPCO's donation GIAC The Tokyo Electric Generation Company, Incorporated Wind power facilities
(TEG), a TEPCO Group company, is contributing to Subsidy reducing greenhouse gases, through its micro- hydroelectric power generation business, which utilizes Energies) (Renewable Initiatives Supply-side - Countermeasures Warming Global water/sewerage systems, water for agricultural uses, and Solar power facilities other unused water resources to generate power. ・ Issuance of certification label, reporting on the use of contributions In addition to the Saginuma Power Station, which Subsidies provided in FY2007 began operations in September 2006 as a micro- No. of occasions Output (kW) No. of occasions Output (kW) hydroelectric power station under joint management Solar power generation 44 724 Hydroelectric power generation 2 201 with the Kawasaki Waterworks Bureau, TEG is building Wind power generation 3 13,700 Hybrid power generation 14 5.3 and operating micro-hydroelectric power stations with a Greater-Kanto Industrial Advancement Center (GIAC): combined capacity of 1,660.9 kW, in 13 locations www.giac.or.jp (Japanese only) throughout Japan. Joint power generation project with the Kawasaki Purchasing electric power from customers Waterworks Bureau TEPCO actively purchases electric power from solar, wind and other natural energy facilities operated by customers. We have purchased 500 GWh of power from such facilities in fiscal 2007.
Treatment center Height 13.1m Electric power purchased from customers' facilities difference Newly built section (GWh) 300
250 Wat Wind power Power 300 er flow generating 200 equipment Distribution Manual Automatic 150 90kW reservoir valve valve Solar power 100 Existing 200 conduit 50 Existing flow control valve 0 The Tokyo Electric Generation Company, Incorporated: 95 96 97 98 99 2000 01 02 03 04 05 06 07 (FY) www.tgn.or.jp/teg (Japanese only) 41 The TEPCO Group's Environmental Initiatives
- International Cooperation Initiatives
CDM project for methane recovery in Chile TEPCO is making effective use of the Under this project, Chilean food processing company Kyoto Mechanisms. Agrosuper has installed anaerobic manure treatment facilities at its swine farms, to recover and burn methane (CH4) that would otherwise be released to the atmosphere in the manure fermentation process. The Kyoto Mechanisms are tools for economically Methane is 21-times more potent a greenhouse gas than reducing greenhouse gases on a global scale, through CO2. Therefore, international collaboration. They include Joint recovering and Implementation (JI), the Clean Development burning off methane Mechanism (CDM), and emissions trading. is considered a Japan is among the most energy-efficient countries significant means of in the world. Compared to other countries, there is reducing greenhouse little room left for cost-effective domestic measures. gas emissions. Therefore, TEPCO is actively working to achieve its The United CO2 reduction target, by employing the Kyoto Nations issues Mechanisms to even more efficiently reduce carbon credits* for greenhouse gas emissions while contributing to this project. Methane burning facility sustainable development in developing countries. ＊Carbon credits Reductions of greenhouse gas emissions that can be used to offset Clean Development Mechanism (CDM) greenhouse gas emissions This mechanism allows developed countries to invest in projects that reduce How carbon credits are issued greenhouse gas emissions in developing countries, in return for emission reductions Approval and issuance of credits Approval by the UN CDM Executive Board (carbon credits), which they can use to meet their reduction targets. of an implementation Creation Approval Developed Developing countries (host countries) by an investing country countries
(investing Funds and technologies Joint CO2 reduction project plan Validation of the legitimacy of the project by a Designated countries) Operational Entity
Reduction amount Reduction of greenhouse gases Approval by the host country
Projects implemented under the Kyoto Mechanisms
China CDM project for power generation using renewable energies
Sugarcanes used to Hydroelectric power station manufacture sugar in the Xiajiang Uighur Vietnam Autonomous Region Honduras Hydropower CDM project CDM project with power Thailand generation using bagasse＊2 Chile CDM project with producing tapioca starch biogas ＊1 CDM project with methane recovery from swine farms
Australia Forest plantation project Participation in carbon funds World Bank Prototype Carbon Cassava, the source of Fund tapioca starch World Bank Bio Carbon Fund Japan GHG Reduction Fund
＊1 Biogas: A methane-rich, flammable gas that results from the decomposition of organic waste materials and livestock manure. It is considered a viable alternative to fossil fuels. ＊2 Bagasse: The fiber remaining after sugarcane stalks are processed to extract their juice.
42 Ta Thang Hydropower CDM Project in Vietnam TEPCO and Tokyo Electric Power Services Co., Ltd. TEPCO is contributing to reducing (TEPSCO), a TEPCO Group company, are setting in greenhouse gases as a member of the motion the Ta Thang 60,000 kW Hydropower CDM Asia Pacific Partnership. Project in Lao Cai Province located in the northwestern part of Vietnam, with Vietracimex Lao Cai Electric Joint Stock Company, a hydropower company in Vietnam. By The Asia-Pacific Partnership on Clean supplying the generated power to the grid in the northern Development and Climate (APP) was established in part of the country, the project is expected to reduce CO2 2006, to promote the development, deployment, and emissions by about 300,000 tons, by 2012. TEPCO has transfer of clean, efficient technologies against global earlier implemented a feasibility study of the project, warming. Its members include governmental and TEPSCO has created the detail design of the plant agencies and private sector companies from seven facilities. The two companies are leveraging the Group's APP partner countries-Australia, Canada, China, technical resources in support of the project. India, Japan, Korea, and the United States. Through international cooperation under the APP, TEPCO Participation in the Japan GHG Reduction Fund and other Japanese electric power companies are The Japan GHG Reduction Fund (JGRF), the first facilitating sectoral approaches＊ to reducing carbon fund in Asia, was established in December 2004, greenhouse gases in the power generation sector, on a by 33 private companies and organizations in Japan. global scale. TEPCO has invested in this fund, as a means of ＊Sectoral approaches Approaches to saving energy and reducing greenhouse gas acquiring carbon credits. In emissions in industrial sectors (electric power, steel, cement, etc.), by August 2007, the fund has, for sharing best practices, developing, diffusing and transferring the first time, acquired carbon technologies, promoting international cooperation in capacity building, and comparing/analyzing energy efficiencies, within each credits worth about 100,000 sector. tons of greenhouse gas reductions from the Antonio Peer review* of coal-fired power plants Moran Wind Power Plant As one of its international cooperation activities in the Project (Argentina) between power sector, peer reviews of coal-fired power plants November 2001 and July 2006, have been conducted under the APP, to maintain and and we have received our share improve their thermal efficiency. The first such peer in proportion to our review was held in Japan, in April 2007. Antonio Moran Wind Power lblWrigCutresrs-ItrainlCoeainInitiatives Cooperation International - Countermeasures Warming Global contribution. Plant During the second peer review in India (Feb. 2008), Japanese engineers made proposals for increasing Forest plantation project in Australia thermal efficiency, based on the collection of best In 2000, TEPCO Forests Australia Pty. Ltd., a wholly practices known as the "Green Handbook," efficiency owned subsidiary of TEPCO, started a eucalyptus and review procedures, and an efficiency checklist, which pine planting project in New South Wales, Australia. By were originally prepared by the Japanese electric power the end of fiscal 2007, it has planted an area of about industry and later approved as official peer review tools. 7,000 ha, and expects to sequestrate about 3 million tons In the third peer review, in the United States (Apr- of CO2 through this project. May, 2008), efficiency-affecting factors were diagnosed TEPCO is also according to efficiency review procedures. As a result, it investing in a tree- was found that thermal efficiency could be increased 1.0 planting project in to 1.5% at the relevant power plants, which corresponds Tasmania, Australia. to about 90,000 tons reduction of CO2 emissions annually. The fourth review is scheduled to be held in Australia, with further reviews to be consecutively conducted in other countries. By sharing best practices on plant operations and Planted eucalyptus forest maintenance management, it is anticipated that some 120-million-ton reduction in annual CO2 emissions for every 1% improvement in the thermal efficiency of coal- fired plants in the APP member countries. ＊Peer review A process in which power plant engineers visit each other's power stations to exchange technical views, share best practices and solutions to issues, and put those solutions to practice. 43 The TEPCO Group's Environmental Initiatives
- Initiatives with Customers
We are helping our customers save Heat pumps make effective use of energy and reduce CO2 emissions even ambient heat to save energy and reduce while using electricity. CO2 emissions.
In addition to supply-side initiatives to reduce CO2 Heat pumps use only a small amount of electricity emissions, we are implementing initiatives on the to gather ambient heat, but produce three to six consumer side, to reduce CO2 emissions through times greater heat energy than the electric energy efficient electricity use by our customers. We are they use. Therefore, using heat pumps in homes and actively developing and disseminating high-efficiency offices can significantly contribute to reducing CO2 products, such as Eco Cute water heaters, which can emissions. save energy and reduce CO2 emissions. We also provide easy-to-understand information on how to How a heat pump works reduce CO2 emissions. By encouraging our customers to save energy, we aim to increase energy efficiency 1 electric energy 3～ and reduce CO2 emissions in society as a whole. 6 heat energy
2～5 ambient heat CO2 emissions from homes and offices Heat Heat Heat About 31% of all CO2 emissions in Japan come from homes and offices. In consideration of the fact that Heat Heat Heat Heat emissions from these sources have increased about 36% Heat since fiscal 1990, the base year of the Kyoto Protocol, Heat pump Heat reducing them is critical to fighting global warming. Heat Heat Breakdown of Japan's CO2 emissions (FY2006) The EU has expanded the definition of renewable energies to Energy industry sector 6.1% Other sectors 6.9% include ambient heat. Transportation Residential The EU Renewable Energy Directive Proposal (January 28, 2008) has Industry sector sector sector included in its definition of renewable energies, ambient heat used by heat 36.1% 19.9% 18.0% 13.0% pumps that clear the European eco label efficiency criteria. Commercial & other sector Source: Greenhouse Gas Inventory Office of Japan, Heat pumps are at work all around us "The GHGs Emissions Data of Japan" As heat pumps can efficiently produce low 2 Changes in CO emissions by sector, compared to the temperatures to high temperatures of about 100℃, they FY1990 level are commonly used in home appliances such as air (%) conditioners, Eco Cute water heaters, refrigerators, and 50 Commercial & other sector (office buildings, etc.) 39.5% clothes dryers. Heat pumps in the residential sector 40 Residential sector Air conditioner 30 30.0% Transportation sector (automobiles, ships, etc.) 20 16.7% Bathroom ventilation /heater/dryer 10 Energy industry sector Refrigerator 13.9% 0 Overall 11.3% Industry sector Eco Cute (plants, etc.) water heater －10 －4.6% Floor heating 1990 1995 2000 2006 (FY)
Source: Greenhouse Gas Inventory Office of Japan, "The GHGs Emissions Data of Japan" Washing machine/dryer 44 Comment from a stakeholder: I'd like to know more about the environmental advantages of all-electric homes. (Postcard)
TEPCO's reply: Compared to conventional homes that use both electricity and gas, all-electric homes save about 10% more energy and release about 16% less CO2.
Energy-saving and environmental advantages of all- TEPCO is helping the residential sector electric homes save energy and reduce CO2 emissions. All-electric homes that use heat-pump air conditioners and Eco Cute water heaters reduce energy consumption by about 10% and releases 16% less CO2, compared to conventional homes that use both electricity and gas. We About 60% of energy consumed in homes comes will continue to make efforts to promote all-electric from using heating appliances and hot water. homes, as an environmentally-friendly, economic, Therefore, the efficient use of appliances and hot comfortable, and safe solution to saving energy and water is a vital key to reducing CO2 emissions in the reducing CO2 emissions. residential sector. Air conditioners and Eco Cute appliances use the Comparison of primary energy consumption and CO2 heat pump technology to provide heat and hot water. emissions in different types of homes
Such high-efficiency appliances generate many times Primary energy consumption CO2 emissions more heat energy than the electric energy they use, Gas and electricity and release significantly less CO2 compared to powered homes ① 100％ (conventional water heater combustion-type appliances. and heating appliances) 100％ Gas and electricity Energy consumption by household use powered homes ② (latent heat recovery-type About 95％ water heater and About 94％ Cooling 1 % heating appliances) Heating Lighting and All-electric homes About 90％ home appliances, 20 % (Eco Cute + heat-pump warm-water floor About 84％ etc. % heating system) 42 060 80 100 (%) 37 % Calculation conditions 1. Building condition: 2-story wooden single-family house, with a 4LDK layout occupying Water heating about 122 m2 2. Family composition: 4 members 3. Insulation performance: Equivalent to next-generation energy saving standard for region IV 4. Yearly load: Source: "Annual Report on Household Energy Statistics, Cooling: 8.0 GJ/year; heating: 6.3 GJ/year; floor heating: 2.4 GJ/year; cooking "FY2006 edition (Kanto region) appliances: 2.0 GJ/year; water heating: 20.2 GJ/year; drying: 1.3 GJ/year; 24-hour ventilation: 1.7 GJ/year; lighting outlets: 10.8 GJ/year 5. Primary energy heating intensity: Electricity (9.76 MJ/kWh, all-day average); city gas (45 MJ/m3, 13A) Promoting the use of Eco Cute heat-pump water 6. CO2 emission intensity: Electricity 0.425 kg-CO2/kWh (FY2007 TEPCO results); city gas (enforcement ordinance for the Law Concerning the Promotion of Measures to Cope heaters with Global Warming) 7. Equipment efficiency In May 2001, TEPCO successfully commercialized Electricity and gas Electricity and gas powered homes ① powered homes ② All-electric homes "Eco Cute," the world's first natural refrigerant (CO2) Air conditioning Cooling heat-pump water heater for homes. Recognizing the 3.93
Air conditioning Customers with Initiatives - Countermeasures Warming Global environmental advantage of Eco Cute, the Japanese Heating 4.26 government set about promoting its use, such as by Conventional water heater Latent heat recovery-type water Heat-pump water-water establishing a target for its diffusion in the Kyoto Floor and heating appliances heater and heating appliances floor heating system heating 0.80 0.89 3.73 Protocol Target Achievement Plan and providing Gas range IH cooking heater Cooking subsidies to purchasers. By September 2007, domestic 0.56 0.90 Conventional water heater Latent heat recovery-type water manufacturers have marketed more than a million Eco Water and heating appliances heater and heating appliances Eco Cute Cute units. heating 0.80 0.95 3.20 We are also encouraging our customers to use Eco Cute, and are actively promoting its diffusion. As a result, a total of more than 330,000 Eco Cute units have been installed in TEPCO service areas by the end of fiscal 2007, corresponding to a total CO2 reduction of about 400,000 tons since fiscal 2001.
Eco Cute
45 The TEPCO Group's Environmental Initiatives
Energy solutions TEPCO is also helping the consumer and JAPAN FACILITY SOLUTIONS, Inc. (JFS), a industrial sectors save energy and reduce TEPCO Group company, provides ESCO* services, for CO2 emissions. the simultaneous reduction of CO2 emissions and energy costs. If the guaranteed reduction in CO2 and energy costs is Heat pumps are also effective in reducing energy not achieved, JFS compensates for the shortfall. This consumption and CO2 from air conditioners and means that customers can reduce CO2 emissions at no water heaters used in office buildings and factories. risk. TEPCO is actively encouraging customers to use The Tokyo Chofu City Hall (and another facility) heat-pump appliances and other high-efficiency ESCO project, which JFS implemented with TEPCO systems, to maximize their energy saving and CO2 and other relevant parties, received the Gold Prize of the reduction efforts. Third ESCO Excellence Award, hosted by the Energy If all air-conditioning equipment and water heaters Conservation Center, Japan. in the consumer (commercial and residential) and ＊ESCO industrial sectors are replaced with those powered by Energy Service Company heat pumps, about 130 million tons of CO2 emissions, JAPAN FACILITY SOLUTIONS, Inc.: corresponding to roughly 10% of total CO2 emissions www.j-facility.com(Japanese only) in Japan, could be reduced.
CO2 reduction potential of heat pumps ( if all air-conditioning equipment, water heaters, and appliances for heating/drying at temperatures up to 100℃ are replaced with those powered by heat pumps )
Residential heating Residential water heating Commercial air conditioning Commercial water heating Industrial purposes (boiler only)
Current status
Equivalent to roughly 10% of total CO2 emissions in Japan.
Potential Reduction of about 130 million tons Certificate of appreciation from the Mayor of Chofu City 0 50 100 150 200 (right) (million tons) Source: Estimates by Heat Pump and Thermal Storage Technology Center of Japan
Comparison of the cogeneration system and the heat-pump system Cogeneration
CO2 Fossil fuel consumption Cogeneration ※1 30 Yearly overall average efficiency 55% (LHV equivalent of 61%) Electricity Water heating using heat exhaust 100 100 Absorption water chiller Natural gas Heat exhaust 25 23 = Air conditioner ※3 COP 0.9 About 21％ About 37％ (cooling) reduction of CO2 emissions reduction of fossil fuel consumption
※2 30 63 Electricity 79 Heat pump 34 (high-efficiency heat source) Thermal power 4 23 Hydroelectric power Nuclear power Air conditioner Heat pump COP = 6.0 (cooling)
※1 Average values (transmitting end) of the consumer CGS measurement survey were calculated based on the Natural Gas Cogeneration Heat Usage Survey Report (March 2008) of the Basic Survey Project for the Promotion of New Energies, New Energy Measures Division, Ministry of Energy, Trade and Industry. ※2 Fossil fuel consumption intensity: 6,770 kJ/kWh (FY2007 TEPCO results) 46 ※3 CO2 emission intensity: Electricity 0.425 kg-CO2/kWh (FY2007 TEPCO results), city gas (enforcement ordinance for the Law Concerning the Promotion of Measures to Cope with Global Warming) Comment from a stakeholder: I'd like to know what kinds of environmentally-friendly equipment TEPCO offers. (Questionnaire)
TEPCO's reply: We offer various energy saving solutions in response to diverse customer needs. Some of our representative examples are provided below and on our website.
TEPCO energy solutions
High-efficiency, low-CO2 heat pump systems
Heat storage air conditioning system High-efficiency air conditioners High-efficiency water heaters Nighttime electric power is used to run heaters and Improvements in heat pump efficiency have These water heaters use heat pumps to heat collect heat in a heat tank for use during the day. allowed us to develop high-efficiency air-cooled water. We offer a variety of water heaters, for Since nighttime electric power is cheaper and heat pumps and centrifugal chillers. Heat pumps residential and commercial use, in response to relies less on fossil fuels than daytime power, this will continue to garner widespread attention as a diverse needs. system promising key to fighting global warming. provides an economic way to reduce CO2 emissions.
Heat storage air conditioning system Intelligent lighting control
Commercial electric kitchen facilities
Heat storage showcases High-efficiency water heater
Electric heating
Offices Process cooling
Commercial facilities
Factories Restaurants lblWrigCutresrs-Iiitvswt Customers with Initiatives - Countermeasures Warming Global High-efficiency air conditioner
(Heat tank) NAS battery
Other high-efficiency, low-CO2 systems
NAS (sodium-sulfur) batteries Commercial electric kitchen facilities Electric heating appliances NAS batteries use nighttime electric power, which As electric kitchen facilities emit little heat, they Electric heating appliances that use infrared waves relies less on fossil fuels compared to daytime curb rises in room temperature and reduce the and microwaves deliver high heating efficiency. As electric power. Therefore, they produce less CO2 need to operate air conditioners and ventilators. they are capable of directly heating only areas that compared to This means reduced energy consumption and CO2 need to be privately- emissions. heated, heat owned electric These loss is power facilities are minimized. facilities. commonly used by restaurants and cafeterias.
47 The TEPCO Group's Environmental Initiatives
Comment from Have you considered creating solutions based on expertise gathered from different divisions, not only within TEPCO, but a stakeholder: also from other companies? (TEPCO Advisory Committee on Environmental Affairs)
TEPCO's reply: We are working in concert with various partners to develop electric vehicles and promote electricity use in the transportation sector.
Commencement of full-scale operations of external TEPCO is also helping the transportation power source supply systems to prevent engine sector reduce CO2 emissions. idling To prevent engine idling, TEPCO has developed a system that uses electricity to circulate air inside a vehicle while the engine is turned off, and has TEPCO is actively engaging in the joint commercialized it in October 2007. development of commercial electric vehicles with The system allows trucks equipped with an other companies, and in the development and electrically-operated air conditioning unit to draw diffusion of a system that uses an external power electricity from a power supply stand installed in source to control temperature in trucks. By parking lots, and control inside temperatures even with promoting the use of environmentally-friendly the engine turned off. electricity, we are contributing to reducing CO2 By eliminating the need to keep engines idling during emission in the transportation sector. long rest periods, the system reduces CO2 emissions and contributes to preventing global warming and air pollution. It also cuts the cost that would be needed for Development and diffusion of electric vehicles (EV) fuel, if the engine is kept idling. Electric vehicles emit significantly less CO2 than As of March 31, 2008, 71 power supply stands have gasoline vehicles, and can greatly contribute to reducing been installed and are in operation in 16 truck stations CO2 emissions. and private-sector facilities (factories, gasoline stations, TEPCO is making active efforts to jointly develop etc.). We will continue to work in collaboration with electric vehicles with Fuji Heavy Industries Ltd. and transport businesses that have adopted the system, and Mitsubishi Motors Corporation. We are currently with truck stations and parking facility operators whom conducting road tests we are counting on to install power supply stands, to using forty "R1e" increase public electric vehicles awareness of our manufactured by Fuji initiatives, promote Heavy Industries and the diffusion of the eleven "i MiEV" electric system, and vehicles manufactured ultimately reduce by Mitsubishi Motors, by CO2 emissions in using them as company the transportation The R1e and quick charger A truck using a power supply stand to draw vehicles. sector. electricity (Toshin Truck Station) We are also developing quick chargers that allow an
electric vehicle to travel 60 km after just 10 minutes or ● Promotion Committee Chairperson's Prize (grand prize) of the 4th Eco Product so of recharging. Awards Furthermore, in pursuit of increasing the convenience ● FY2007 Environment Minister's Award for Activities to Fight Global Warming of electric vehicles, we have installed and conducted proving tests of power outlets (100V or 200V) for CO2 emission reduction effect recharging electric vehicles at Times hourly parking lots While idling operated and managed by parking lot operator Park24 Co., Ltd. 4.09kg We will continue to While using an external power source promote the diffusion 0.09kg 98％ reduction of electric vehicles, as an effective means of 012345 (Note) Figures represent the amount of CO2 emissions from a large truck (10t ) (kg) reducing CO2 that is kept idling for an hour. emissions in the Calculation conditions transportation sector. CO2 emission intensity ・ Diesel fuel (2.62 kg-CO2/R: Ministry of the Environment, "Greenhouse Gas Emissions Calculation and Reporting Manual") i MiEV test vehicles ・ Electricity (0.410 kg-CO2/kWh: Federation of Electric Power Companies of Japan, "Environmental Action Plan by the Japanese Electric Utility Industry") ・ Fuel consumption of large trucks (1.56R/h: Based on Ministry of Environment website, "Idling Stop Q&A")
48 Comment from TEPCO has a large responsibility to local communities and the wider society, to implement educational activities. (TEPCO a stakeholder: Advisory Committee on Environmental Affairs)
We consistently provide environmental information by promoting activities such as the CO2 Diet Declaration and by TEPCO's reply: distributing pamphlets on energy conservation, and will continue to support environmental initiatives pertaining to electricity use by diverse means.
CO2 Diet Declaration TEPCO promotes eco-friendly lifestyles, The CO2 Diet Declaration program invites by providing information on global participants throughout Japan to help prevent global warming prevention. warming by voluntarily pledging to save energy and donating a tree seedling to elementary schools, for every 20 participants. Providing information via commercials and Since commencement of the program in August 2004, pamphlets more than 1.55 million participants have pledged to We actively encourage our customers to select and use reduce some 92,000 tons of CO2. electric appliances wisely, by means of commercials and Local governments, NGOs and NPOs, private sector pamphlets featuring an original cartoon character companies, and schools have joined the program, and "Denko-chan", and via customer electricity consumption have allowed us to donate seedlings to 497 notices (meter statements). The reverse side of the organizations, in proportion to the number of electric consumption notice provides a CO2 checklist, participants. Some of the seedlings have been donated to which customers can use to easily calculate their the Mount Fuji Afforestation Project sponsored by the household CO2 emissions from the amount of electricity Organization for Industrial, Spiritual, and Cultural they use. Advancement (OISCA), in support of its forest regeneration initiative.
A page from the CO2 Diet Tree planting in Mount Fuji Declaration website (Japanese only)
Energy conservation Electricity consumption pamphlet (Japanese only) notice CO2 Household Account Book TEPCO operates a lifestyle information website called Electricity Shape-up Diagnosis "TEPORE," and offers a service called "CO2 Household To support our customers' energy-saving efforts, we Account Book" (Japanese only). When users input the provide an online web service, where our customers can amount of electricity and gas they have used along with Customers with Initiatives - Countermeasures Warming Global compare their own electricity use (going back up to the their payment costs, the site automatically calculates and past two years) with the average use by all customers generates a graph of household CO2 emissions. The under the same contract capacity, in the form of a graph. account book is a convenient, environmentally friendly, and economical tool for eliminating wasteful utility use in daily living and promoting eco-friendly lifestyles.
CO2 Household Account Book website Leaflet on the CO2 (Japanese only) Household Account Book Electricity Shape-up Diagnosis (sample image) (Japanese only) TEPORE: www.tepore.com (Japanese only)
49 The TEPCO Group's Environmental Initiatives
Proper Treatment of Air Pollutants and Hazardous Substances
TEPCO controls SOx and NOx emissions TEPCO ensures the safe storage of PCB* from power generation, to provide clean waste until it can be properly detoxified. electricity.
To prevent air pollution, TEPCO's thermal power ＊PCB (polychlorinated biphenyls) stations are addressing the issue of air pollutant Organic compounds composed of carbon, hydrogen, and chlorine. As they do not decompose naturally, they tend to accumulate in the emissions, through initiatives that focus on fuel, fatty tissue of organisms. The toxicity of PCBs came to light in the operations, and facilities. SOx and NOx emission 1968 Kanemi Oil Poisoning Case, which led to a termination of PCB intensities in fiscal 2007 remained among the lowest production in 1972. levels in the world. We will continue to keep a tight control on SOx and NOx emissions, to provide clean PCB waste is stored in facilities specially designed electricity to our customers. to prevent leaking, based on the Waste Management International comparison of SOx and NOx emission Law and the Law Concerning Special Measures intensities (average of thermal power stations) against PCB Waste. We also keep a management ledger, appoint PCB waste managers, conduct (g/kWh) SOx emission intensity NOx emission intensity 4.0 regular inspections, and report the status of our 3.5 possession of PCB waste to local governments. 3.4 3.4 3.3 3.0 2.9 Number of devices containing PCBs, and plans for their 2.0 treatment (as of March 31, 2008) 1.6 1.4 1.4 1.2 1.2 Number of devices containing PCBs Treatment plan 1.0 0.70.8 0.8 0.6 Devices containing 0.2 0.2 0.16 0.19 high concentrations About 3,500 high-pressure To be treated by Japan Environmental 0 transformers/condensers Safety Corporation (JESCO) Canada Fra Germany Italy UK USA average 6-country Japan TEPCO of PCBs nce Treated at TEPCO facilities (recycling Devices containing About 830,000 pole centers) low concentrations transformers Note: Insulation oil from the Tokyo region of PCBs is separately treated by JESCO's (Note) (about 270,000 units TEPCO figures are FY2007 values; figures for Japan are FY2006 values based have already been treated) Tokyo facility (low-concentration on a survey by the Federation of Electric Power Companies of Japan; figures PCB treatment facility) for the other six countries are 2005 values. Source: Based on OECD, OECD Environmental Data Compendium 2006/2007 and IEA, Energy Balances of OECD Countries 2004-2005 Treating pole transformers (PCB recycling) Although no PCBs were originally used, we discovered trace amounts of PCB insulating oil in some of our pole transformers. Therefore, we have been TEPCO keeps close tabs on the status of treating them at three TEPCO recycling centers, since asbestos use, toward its systematic 2001. The detoxified insulating oil is thermally elimination. recycled* as fuel for generating power, and the transformer units are washed and reused as steel/copper feedstock and roadbed materials. TEPCO maintains a firm grasp of the status of ＊Thermal recycling asbestos used in its facilities, all of which were Collected waste materials are burned and reused as a new energy installed prior to the introduction of regulations. source. Although most asbestos components are nonfriable, Treatment of PCB-containing insulating oil we take special measures to prevent the dispersal of (as of March 31, 2008) asbestos fibers based on relevant laws and Treatment facility Amount of PCB insulating oil regulations, when dismantling buildings and facilities treated so far Yokohama Approx. 6,100 kR containing asbestos and when transporting and Recycling Center Decomposition of insulating oil (equivalent to 122,000 units※) Approx. 2,900 kR disposing of dismantled components. Chiba Recycling Center Decomposition of insulating oil (equivalent to 58,000 units※) We will continue to keep close tabs on the locations Approx. 6,400 kR Kawasaki Decomposition of insulating oil (equivalent to 128,000 units※) and status of asbestos use, to ensure it is properly Recycling Center Washing of pole transformers Approx. 270,000 units managed until we can systematically eliminate it from all of our facilities. ※Figures are equivalents of the number of average-capacity pole transformers (30 kVA; 50R of oil)
50 Recycling Resources
Recycling coal ash TEPCO is making Group-wide efforts to TEPCO and Tokyo Electric Power Environmental achieve a 100% industrial waste Engineering Company, Incorporated (TEE), a TEPCO recycling rate. Group company, have developed a "Heat Island Effect Inhibiting Pavement," which effectively uses coal ash produced from coal-fired thermal power plants in road In fiscal 2001, TEPCO set forth the target of pavements. Asphalt pavement is known to retain heat achieving a 100% recycling rate for industrial waste, and produce a heat island effect. However, experiments by fiscal 2005, and have achieved that target through have shown that the new pavement technology maintains company-wide efforts. We have basically maintained surface temperatures that are 5 to 9℃ lower than asphalt the 100% recycling rate in fiscal 2007, as a result of pavement, under natural conditions. Furthermore, the ongoing efforts to promote proper recycling. Our production process employs an unfired-brick Group companies are also implementing recycling manufacturing technology, to reduce CO2 emissions. policies that correspond to their respective business, Tokyo Electric Power Environmental Engineering Company, under the target of achieving a 100% recycling rate Incorporated : www.tee-kk.co.jp (Japanese only) for industrial waste by fiscal 2010. In fiscal 2007, 33 Surface temperatures of the Heat Island Effect Inhibiting Group companies have achieved an average recycling Pavement and regular (permeable) pavement in summer rate of 92%. (See page 33.) Ambient temperature (Tokyo region) Typical pavement (permeable pavement) Recycling rate* and landfill disposal of industrial waste Heat Island Effect Inhibiting Pavement Head Island Effect Inhibiting Pavement (℃) (with clinker ash) (with solidified and crushed coal ash) (TEPCO) 65 Landfill disposal Recycling rate (kt) (%) 60 40 100 38.8 55 100 Te mperature 50 30 95 45
40 20 90 Resources Recycling / Substances Hazardous and Pollutants Air of Treatment Proper ※ Recycling rate= Amount of waste recycled 35 (incl. salvaged materials and materials reused in-house) 30 10 86 ÷ Amount of industrial waste produced x 100 85 25 0.3 8/11 8/12 8/13 8/14 8/15 8/16 0 80 （0：00） （0：00） （0：00） （0：00） （0：00） （0：00） 1990 95 2000 05 07 Date / time (2007) (FY) (Note) Figures have been rounded to the nearest tenth. Waste power generation Breakdown of major industrial waste (TEPCO, FY2007) TOKYO WATERFRONT RECYCLE POWER CO., Unit: kt/year LTD., a TEPCO Group company, operates a recycling Amount ※ Type of waste produced Use after recycling facility for industrial and medical waste. Metals, Coal ash 480.3 Raw material for cement, land reclamation, etc. aluminum, slags, and other by-products of the recycling Scrapped concrete utility poles 108.1 Roadbed material, etc. process are recovered, and waste heat is used to generate Desulfurized gypsum 95.1 Gypsum boards, cement raw material power. It emits less CO2 compared to simple combustion Metal scraps 59.3 Metal materials, recycled cables, etc. facilities. Fertilizer, raw material for cement, Shells 8.9 soil amendment, etc. Waste oil 7.4 Fuel substitute, heat recovery, etc. Heavy/crude oil ash 6.5 Metal recovery, raw material for cement Sludge from wastewater treatment 5.0 Raw material for cement, steel, etc. Insulator scraps 3.2 Blocks, roadbed material, etc. Waste plastics 2.0 Plastic recycling, heat recovery, etc. Concrete fragments 1.0 Roadbed material, etc. Recycled thermal insulation, Thermal insulation scraps 0.4 raw material for cement, etc. Other 6.7 - The "Super Eco Plant" recycling facility Total 783.7
※Amount of waste produced = Salvaged materials + materials reused in-house TOKYO WATERFRONT RECYCLE POWER CO., LTD.: + industrial waste www.tgn.or.jp/tokyorp (Japanese only) Radioactive waste is not included in industrial waste, as it is separately governed by nuclear power laws and regulations. 51 The TEPCO Group's Environmental Initiatives
Natural Environment Conservation
TEPCO has been protecting the natural Oze has marked a new beginning as Oze environment in Oze for over 40 years. National Park.
TEPCO owns about 70% of the Oze National Park The Oze area, which was formerly a part of Nikko Special Protection Area, which corresponds to about National Park, became its own independent national 40% of the entire national park. The land was park on August 30, 2007. The new Oze National Park acquired by an electric power company in the early includes the Aizu-Komagatake, Tashiroyama and 1900s, for the purpose of using the abundant water of Taishakusan mountains, and covers a vast 37,200-ha the park to generate power. TEPCO succeeded the area. land upon its establishment, but later abolished the We intend to steadily continue our activities to plan for power generation. Instead, TEPCO and Oze "protect everyone's Oze" with the cooperation of Corporation, a TEPCO Group company, have local communities, so that the beauty of Oze National continued to implement various measures over a Park may forever be passed on to future generations. period of more than 40 years, to protect the beautiful nature of Oze, as a precious asset of the Japanese people.
Oze Corporation: www.tgn.or.jp/oze (Japanese only)
Plank trail maintenance A 65-kilometer plank trail allows visitors to investigate the natural environment of the Oze National Park safely, without disturbing the Ozegahara Wetlands in early July wetland. TEPCO has installed about 20 kilometers of that trail, Oze National Park Area formerly belonging to and systematically maintains and Nikko National Park manages that segment. Old planks Area newly included that are no longer safe are replaced Special protection area Land owned by TEPCO with new planks. Repairing the plank trail
Restoration of the Ayame-daira Marshland Niigata Pref. Fukushima Pref. The Ayame-daira Marshland, located south of the Ozegahara Wetlands, was once known as Japan's Mt. Komagatake celestial paradise. However, the booming popularity of Oze in the 1960s brought vast numbers of hikers to the Mt. Tashiroyama Mt. Keizuruyama area, and caused great damage to the natural Mt. Hiuchigatake environment of the Mt. Taishakusan Ayame-daira Marshland. We have been working to Ozegahara Wetland Ozenuma Lake Mt. Kuroiwayama restore the marshland Mt. Shibutsusan since 1969, and have Mt. Kinunumayama successfully restored Tochigi Pref. today. Restoring the Ayame-daira Marshland Gunma Pref. Tree-planting project with volunteers Since 1997, we have been planting beech trees and other broad-leaf trees in the Oze-Tokura Forest, located adjacent to Oze, with the participation of volunteers. Close to 300 people have participated in the project each year, and have planted roughly 30,000 beech trees over a 6.0-ha area. 52 TEPCO's power facilities respect We have established a TEPCO Nature biodiversity. School.
TEPCO's power facilities are designed to preserve Over the years, TEPCO has implemented various their natural surrounding environment as much as environmental educational activities, such as nature possible, while adding greenery to the facility observations events in the green areas of power grounds, to both protect and enhance the natural stations, beech tree planting projects with volunteers environment. We also take into consideration the in the Oze region, and clean-up activities (green unique characteristics of each locale, and create volunteers). We are continuing these activities, but waterscapes, grass fields, woods, and other natural from April 2008, they are being implemented under living environments to promote biodiversity. the scheme of the TEPCO Nature School. TEPCO Nature School operates under the slogan, "Let's pass on abundant nature and nurturing spirits to the next generation." In addition to initiatives that have been implemented before establishment of the school, it also offers new opportunities to learn about the workings of nature, such as CO2 sequestration by forests and water source cultivation, while having fun. The school maintains a close relationship with society, through an Advisory Committee composed of outside biology experts and educators, and incorporates their views in providing enhanced activities. The Soga biotope, adjoining the Chiba Thermal Power Station Creating environments in consideration of local characteristics TEPCO protects and creates natural environments not only by simply building green spaces and waterscapes, but by doing so in consideration of local characteristics. From the perspective of biodiversity, we believe it is essential to properly assess the ecosystem of each area Opening of TEPCO Nature School Event held in commemoration of the and develop living environments that would preserve opening of TEPCO Nature School that ecosystem. (Chiba Thermal Power Station) We are making special efforts to maintain ecosystems at the genetic level. For example, we grow trees from seedlings collected from around our power stations, to Outside members of the TEPCO Nature School Advisory restore original forests or create new ones. We also Committee Alphabetical order; titles omitted create hiding places and floating islands for wildlife, using scrap wood from power stations. Manabu Abe : Chairman, NPO Raptor Japan Conservation Environment Natural Junko Edahiro : Environmental Journalist Through these efforts, we hope that local residents Hiroshi Iijima : Director General, NPO Asaza Fund will become more Takao Matsui : Teacher in charge of the Natural Environment Course aware of the natural at Gunma Prefectural Oze High School beauty of their Ichiro Hongo : Professor, Nihon University College of Bioresource local environment Sciences Hiroshi Sasaki : Professional Naturalist and gain a greater Kan Tanahashi : Research Director, National Primary and Junior High appreciation for School Environmental Education Council wildlife and the Takeo Tanimoto : Honorary Professor, Utsunomiya University changing seasons. A halcyon visiting the water environment of our power station 53 The TEPCO Group and the Community
Feature Overseas Consultancy Services
As a company aiming to be a top runner in the global energy industry, TEPCO promotes the development of electric power infrastructures that are needed to support people's lives and the effective use of resources, particularly by providing technologies related to electricity to developing countries and helping them develop human resources.
Major projects (FY2007)
Denmark China United States Analysis of underground Technical support for high power transmission systems Technical consultation on voltage power transmission the construction and operational management of nuclear power plants Laos China (Shanghai) Hybrid power station Technical support for construction underground power distribution
Vietnam Surveys for the construction of a hydroelectric power station Fiji Saudi Arabia Renewable energy Caribbean countries Master plan study for survey energy conservation in (Bahamas, Jamaica) the power sector Consultation on reliability improvement of power distribution facilities
Zambia Singapore Australia Rural electrification Technical consultation on the Operation of Loy master plan construction of power distribution Yang Power Station facilities
(Note) Countries in blue indicate recipients of TEPCO consultancy services.
Providing power to unelectrified villages in Laos (October 2003 - ) >Corporate Information > Overseas Consultancy Services
Maximizing TEPCO's technologies and expertise to bring electricity to people's lives
In Laos, TEPCO built a hybrid power station that runs on renewable energies alone, through the combination of solar and water pumping energies, and has succeeded in providing electricity to roughly 5,000 residents in ten unelectrified villages in the northern province of Oudomxai. Most noteworthy about this project is that (i) we built the world's first power generation system of its kind in a location subject to severe environmental conditions, and that (ii) we leveraged TEPCO's expertise to train the local people to operate, maintain, and manage the power station by themselves. We also actively implemented activities to raise awareness of energy conservation and environmental considerations, so that the local residents would be able to use Hybrid power station built in Laos electricity based on proper understanding of its significance. As a result, the power station is still operating smoothly today, Hybrid power system flow chart after three years of the commencement of operations. Access Transformer Cunsumers Water flow to electricity has improved the level of medical technology and Electric current education, increased household income by allowing nighttime Flow of electricity employment, and has otherwise brought many comforts to Houay Xe River Intake facility people's lives. Not only has the project been greatly appreciated Overseas Consulting and Development Group, by the Lao government and village people, but it is also Dummy road GOV Power conditioner International Affairs Dept. attracting widespread attention from around the world. Genshiro Kano PC Solar panels Upper reservoir (100 kW) Penstock
Water turbine Storage generator pumps Spillway Nga River Lower reservoir Lower dam Lights in the village Electricity has put smiles on children's faces
54 Supporting energy-saving efforts in Saudi Arabia (February 2007 - )
Promoting energy conservation in oil-producing countries, to help fight global warming TEPCO, commissioned by Japan International Cooperation Agency (JICA), has been supporting Saudi Arabia to formulate a master plan for energy conservation in power sector. In Saudi Arabia, the demand of electric power has been rising annually by more than 6% on average over the five years since 2000. Recognizing its responsibility to address the global warming issue as a major oil-producing country, Saudi has set forth a policy to promote energy conservation not only by industries but also by each citizen.
Support in a special way that TEPCO can offer with its long-standing experience in promoting "Energy Conservation" Workshop Saudi government has been assisted to set targets in electric power conservation towards 2030 and formulate an energy conservation strategy. Policies and institutions, and concrete action plans to promote energy conservation have been proposed with the efforts to adjust them for Saudi Arabia, after the presentation of energy conservation measures in Japan and collection of opinions of concerned parties. TEPCO has also proposed an energy conservation campaign designed specially for Saudi Arabia, in which preachers at mosques give sermons to prayers to take actions for energy conservation, with the cooperation of Ministry of Islamic Affairs of Saudi Arabia.
Imparting TEPCO's expertise in environmental and energy education, to the next generation Saudi Arabia recognizes that promoting energy conservation requires a change in people's awareness and cultivation of relevant knowledge from a long-term perspective. It has been seeking a way for educating the next generation, as energy education, especially from a young age, is vital. In July 2007, the TEPCO Shinjuku Office welcomed a survey mission from Saudi Arabia, and introduced TEPCO's know-how on environmental and energy education, accumulated through the many years of activities. (See page 64 for details on environmental and energy and education) The survey mission visited an "Energy Seminar" at Tenjin Public A TEPCO staff conducting an environment and energy Elementary School in Shinjuku and held an exchange with the students. seminar Through this experience, the mission members reconfirmed the significance and possibilities of providing energy and environmental education to the next generation. They also expressed their appreciation of our initiatives. In May 2008, TEPCO staffs traveled to Saudi Arabia to hold an environment and energy seminar for elementary school students, and conveyed the importance of such education to educators and concerned parties of energy sector in Saudi Arabia.
The Saudi survey mission interacting with Japanese elementary school students
Technical support for high voltage power transmission in China (July 2005 - March 2008)
TEPCO supported the Chinese national electric power company's efforts to extract technical issues related to ultra high-voltage (UHV) power transmission technology, and proposed solutions and improvement measures for those issues. UHV transmission technology is being reconsidered as an efficient means of transmitting large volumes of electricity in China and India, where power demand is growing at a substantial rate. However, as the impact of a power outage would be enormous, an even more advanced power transmission technology is needed. TEPCO developed the UHV transmission technology as early as twenty years ago, and has been actively promoting its international standardization. We will continue to apply our expertise in this field, to also contribute to the development of UHV systems in various countries. Confirming the power transmission network route
55 The TEPCO Group and the Community
Active Communication with Stakeholders
TEPCO constantly maintains open channels of communication with diverse stakeholders who have an interest in TEPCO's business activities. By reflecting the views and requests of our stakeholders in our business activities, or by strengthening stakeholder engagement*, we aim to enhance our activities and more strongly retain the trust of society.
Customers
Improvement of services Shareholders Local and investors communities Acquisition of Development of management local communities information
Business Employees partners Increasing job Optimization of satisfaction business terms
Future Central and generations local governments Increasing awareness Creation of of the environment effective systems and energy International society Enhancement of technical capabilities and expertise
＊Stakeholder engagement Involving stakeholders in management, by holding dialogues with them and incorporating their views into management decisions
56 Prompt disclosure of information on facility TEPCO strives to ensure transparency operations through proper disclosure of business In the event of prolonged, wide-area power outages information. caused by a large earthquake, other natural disasters, or an accident, we provide information on the extent of damage to our facilities and the status of restoration We strive to increase the transparency of our work to society via the media, as well as through our business operations, by proactively disclosing website and mobile phone site, as necessary. In areas relevant information to our stakeholders. affected by extended power outages, we use loudspeaker cars to promptly communicate the necessary Types of information that are disclosed information. Ensuring transparency through information disclosure
Timely and appropriate Prompt disclosure of information disclosure of business activities on facility operations
Timely and appropriate disclosure of business "TEPCO for you" commercial on the status activities of TEPCO business activities We provide information on the status of our business activities to the mass media on a daily basis, through press releases and press conferences. We also use our Image of a cell phone screen conveying information on a website to ensure prompt and accurate disclosure of power outage and the status information. Particularly in regard to the status of our of various facilities nuclear power stations and requests for energy saving efforts, we take advantage of TV and radio commercials and newspaper and magazine advertisements as appropriate, to achieve the maximum effect. The TEPCO Group's initiatives are also summarized and introduced in our various publications and at TEPCO PR facilities. Press release posted on the TEPCO website
> TEPCO News > Press Releases
Communication through PR facilities
TEPCO Electric Energy Museum www.denryokukan.com Electric Power Historical Museum www.tepco.co.jp/en/shiryokan (Japanese Only) cieCmuiainwt Stakeholders with Communication Active TEPCO Electric Energy The Electric Power Historical Museum introduces the history of the Museum was established in 1984 electric power industry in Japan, through a collection of some 700 as a comprehensive PR museum objects and machines that have been used over the years to provide of electricity. It showcases a stable and efficient supplies broad range of information on of electricity. They convey electricity, such as the to future generations the mechanisms of nuclear power "spirit of making generation and other power electricity" that has been generation methods, TEPCO's passed down through the environmental initiatives, and the generations since the Meiji advantages of all-electric homes Era. for comfortable lifestyles.
57 The TEPCO Group and the Community
TEPCO values its communication with TEPCO strives to create a shared shareholders and investors, and reflects awareness across the Company their views in business activities. by enhancing internal communications. > Corporate Information > Investor Relations
TEPCO values its relations with shareholders and Communication between employees and investors, based on the basic policy of "maintaining management mutual communication with shareholders and Management representatives make visits to practically investors to further improve business." all offices every year, to assess onsite issues through exchanges of views with employees, and to personally Investor relations convey management-related information to the offices. With respect to our institutional investors, we hold Additionally, a explanatory meetings regarding management plans and forum is available financial settlement. After the closing of accounts, our on our Intranet, as management personally visits those institutional a regular tool for investors inside and outside of Japan, and holds direct communicating exchanges of views with them. To increase public with the understanding of TEPCO activities, we also offer tours management. of our power stations, research laboratories, and other facilities. For our individual shareholders, we are Holding an exchange of views at one of working to enhance our disclosure of information, using TEPCO's offices business reports, our website, and videos of explanatory Employee awareness surveys meetings. The views obtained from our IR efforts are Once a year, we conduct an employee awareness shared throughout the company, and are used to improve survey, to gauge the dissemination of the TEPCO business activities and increase corporate value. Management Vision, the state of internal communications, and employees' sense of satisfaction in their work. The survey results are shared by all IR information disclosure tools employees via the Intranet, and are used to review and Annual Report Fact Book improve various policies. In-house communication tools In addition to the Intranet, we also take advantage of internal newsletters and in-house TV services to raise employee awareness and to efficiently share information. Internal newsletter "Toden"
TEPCO issues a monthly internal newsletter called "Toden" (Japanese only), to promote internal communications and facilitate business operations. The newsletter is issued based on Introduces TEPCO's financial status (issued annually) the following four policies. Facility tours ① Communicate the future direction of the company in an easy-to- understand manner. ② Share important information among all employees. ③ Lend an ear to the voices of employees and create an open corporate culture. ④ Foster a sense of pride in TEPCO's business, and boost motivation among employees.
58 Comment from a stakeholder: What initiatives have you implemented to ensure proper information disclosure? (Questionnaire)
TEPCO's reply: We proactively disclose information to our stakeholders by various means.
Major information disclosure tools Publications
Sustainability Report Corporate Brochure Denryoku Setsubi TEPCO Environmental Introduces the TEPCO Group's Introduces TEPCO's management (Power Facilities) Highlights initiatives and achievements in issues and business activities in Introduces the status of TEPCO Introduces TEPCO's environmental creating a sustainable society general (issued annually) power stations, substations, power initiatives in an easy-to-understand (issued annually) distribution systems, and other manner, using photographs and facilities (issued annually; Japanese diagrams (issued annually) only)
TEPCO Illustrated Genshiryoku hatsuden no genjou TEPCO Report Collection of data on TEPCO's business (Status of Nuclear Power Generation) Provides timely information on TEPCO's ealdcroaeinformation corporate Detailed (issued annually) Provides an overview of the present state of management issues and nuclear power nuclear power generation by TEPCO and its (issued about 4 times a year; Japanese only) status in Japan (issued annually; Japanese only)
Information on our website cieCmuiainwt Stakeholders with Communication Active
State of the power station after the 2007 Niigata-Chuetsu-Oki TEPCO website top page Earthquake
59 The TEPCO Group and the Community
Interaction with Customers
Customer satisfaction surveys TEPCO is constantly improving its To improve the quality of our services and operations, customer services. we began conducting customer satisfaction surveys in fiscal 1987. We mail questionnaires to our customers who contact us regarding relocation procedures or changes in ampere capacity, and ask them to rate our At TEPCO, our goal is to provide services that are responses and manners, so that we many use their appreciated by our customers, and to continue feedback to improve our services. building trusting relationships. We have established a system for sending out Every month, we receive about 30,000 - 40,000 questionnaires to about 200,000 customers throughout customer opinions through various dialogue the year and using the results to make timely opportunities. These opinions are shared across the improvements to our services. Company, and are used to improve business Results of the FY2007 survey showed that 93.9% of operations and create new services. our customers are satisfied with our telephone services, and 93.4% are satisfied with our home-visit services. We Utilization of customer feedback will use these survey results to further enhance and improve the quality of our business operations and Interaction with customers through business activities/dialogue opportunities services. Telephone Visits Visits by sales Customer Results of customer satisfaction surveys calls by workers representatives service centers Meetings （%） 100 Offer Improve Telephone new services service quality 95 93.5 93.9 services 92.1 92.6 91.8 93.4 90 92.1 Home-visit Make 85 88.8 services Collect customer Analyze results of customer 86.8 86.9 feedback ※1 satisfaction surveys improvements 80
75 Analyze customer Assess customer needs ※2 feedback ※1 70 2003 04 05 06 07 (FY) TEPCO (Note) Figures represent the sums of the top two responses of "Fully satisfied" and ※1 Customer feedback is entered into an internal system, for use by all employees. "Satisfied," among five responses indicating the level of satisfaction regarding services. ※2 Based on the analysis results, an internal committee (Echo Committee) discusses new services and measures for improving quality.
> Contact Us Services that have been improved by customer feedback
■ Provision of information on how people with a Using customer feedback hearing or speaking disability may contact TEPCO Our offices and departments examine and analyze (Japanese Only) customer feedback, to obtain clues for improving services and business We conventionally had a dedicated fax number for use operations. At customer by customers who have a hearing or speaking disability, service centers in each but in response to customer feedback, we provided the fax area, CS analysts play a number on our website, to more widely publicize its use. central role in ■ Improved application for credit card payment improving the quality We switched our application forms for credit card of TEPCO services and payment from postcards to hard copies, to provide more operations in line with detailed information and a sample form that customers customer needs. Meeting between CS analysts could better understand. (Japanese Only)
60 TEPCO introduces safe and comfortable TEPCO provides information on electricity electricity-oriented lifestyles. that is useful to our daily lives.
Universal designs Proposals for comfortable living TEPCO is striving to create a universal design for IH The TEPCO Lifestyle Laboratory proposes total cooking heaters, so that a wider range of people can solutions for comfortable living based on electricity, enjoy cooking, safely. through reports and the Switch! website. It examines and We are conducting ongoing studies and research in tests IH cooking heaters, air conditioners, washing pursuit of usability, and have, for instance, created pot machines, refrigerators, positioning stickers for our IH cooking heaters, based on dish washer/dryers, and an opinion from a visually-impaired customer that the other home appliances flat top plate of the heater makes it difficult to know from the perspective of where exactly to place a pot. Our publicity centers use users, and provides the results of such advice on how to select improvements, to and use such home provide consultations in appliances, as well as response to individual promotes the benefits of Lifestyle Laboratory Reports customer needs. all-electric homes. (Japanese Only) We also actively share the knowledge we acquire through our studies and research to Cooking class for the visually impaired (hosted by the TEPCO Tochigi Branch manufacturers, to Office) contribute to the Pot positioning development of stickers products that can be easily used by anyone.
Switch! website (as of May 2008; Japanese only)
These stickers help visually- impaired people place pots in the correct position on the Information on electricity safety IH cooking heater. A set of two stickers is pasted on the Customers can learn about the safe use of electricity top plate, as a guide for from our safety information booklets and website. Cooking class for people with a hearing placing pots in the correct disability (hosted by the TEPCO position. Numazu Branch Office)
TEPCO Switch! Card As part of our efforts to enhance customer services and promote the diffusion of all-electric lifestyles, we have launched a credit card with which customers can
pay their electricity bills and other public utility fees and Customers with Interaction receive special benefits.
Booklet on electricity Booklet on electromagnetic safety (Japanese only) fields (Japanese only)
Switch! card
61 The TEPCO Group and the Community
Interaction with Local Communities
Local safety activities TEPCO works in partnership with local Promoting anti-crime communities communities of nuclear power station Since fiscal 2006, the sites and service areas. TEPCO Kumagaya Branch Office has been creating and putting up posters that The TEPCO Group's business activities are call on people to quit supported by local communities. As a member of pasting illegal ads on utility those communities, we contribute to their poles, with the cooperation development by taking an active part in various local of the local government and activities for promoting safety, environmental the police. The effort to protection, educational support, welfare, and culture. eliminate all illegal ads from utility poles has paid Producer-consumer exchange activities off, and hardly any ads are TEPCO implements producer-consumer exchange now found in the area. Poster calling on people to quit activities between local communities of nuclear power pasting illegal ads on utility poles station sites (electricity producing areas), which includes Fukushima and Niigata prefectures and Aomori prefecture, where preparations for the construction of a power station is underway, and TEPCO service areas (electricity consuming areas) around Tokyo, to promote mutual understanding between electricity producing and consuming areas. With the cooperation of local communities where our nuclear power stations are located, our nuclear power stations and offices within the TEPCO service area join hands in creating The poster affixed to a utility pole opportunities for introducing lifestyles, culture, and products of the local communities, and planning and Cooperation in promoting anti-crime communities carrying out sports events. Since fiscal 2004, Kawagoe Cable Vision Co.,Ltd., a TEPCO Group company, has been promoting the Junior high school students from an electricity development of a safe and secure community, based on consuming area participate in an exchange the Kawagoe City Basic Policy for Anti-Crime program in an electricity producing area Community Development, formulated by the city of In June 2007, the TEPCO Shinagawa Branch Office Kawagoe in March 2004. To contribute to preventing organized an exchange program, inviting second-grade crime in the area, the company is working in cooperation students from the Shinagawa Public Ebara No. 4 Junior with the local government and the police, to provide High School to visit Fukushima. The students toured the anti-crime and warning information through cable TV Fukushima Daini Nuclear Power Station and interacted broadcasts. with the residents of Tomioka town, known as the Kawagoe Cable Vision Co.,Ltd.: "birthplace of electricity." Shinagawa and Tomioka are www.kcv-net.ne.jp (Japanese only) under an agreement to provide mutual relief in the event Elderly support services in times of disaster of a disaster. Owing to this relationship, the town hall Tokyo Electric Power Services Company Limited and residents of the town readily gave their full support (TEPSCO), a TEPCO Group company, has signed an to the program, and engaged the students in harvesting agreement with Ueno Elderly Homecare Service Center, radishes. We believe that such exchanges with electricity a nursing facility located across the street from the producing areas allow TEPSCO Head Office, to provide support in times of residents of electricity disaster. On receiving the suggestion from the local fire consuming areas to department, TEPSCO readily agreed to helping the deepen their elderly evacuate from the facility in the event of a understanding of nuclear disaster, and is steadily contributing to creating a local power stations, and cooperative framework as a member of the provide a precious neighborhood association. opportunity to reconsider Tokyo Electric Power Services Company Limited (TEPSCO): the importance of Tour of the Fukushima Daini Nuclear www.tepsco.co.jp/index_e.html electricity. Power Station 62 Comment from a stakeholder: I'd like to know what specific initiatives TEPCO takes to maintain good relations with local communities. (Questionnaire)
TEPCO's reply: We take an active part in implementing various activities in partnership with local residents.
Preservation of local environments Welfare and cultural activities Removal of thimbleweed and other foreign plant Participation in creating a basic vision for barrier- species free transportation in Minato City In the Oku-Nikko area of Between August 2007 and March 2008, the Human Nikko National Park, Factor Group of our Research and Development Center thimbleweed and other foreign participated in creating a basic vision for barrier-free plant species are proliferating transportation in Minato City, and investigated measures over a wide area, and are for making the Hamamatsu Station area more convenient threatening the growth of and user-friendly to everyone. precious endemic species. We made active proposals to incorporate into the To protect the natural Thimbleweed community development scheme the knowledge that we ecosystem of Oku- have accumulated through human engineering studies in Nikko, the TEPCO our effort to enhance the operations of our power Tochigi-Kita Branch stations. We will continue to share the results of our Office is working in human engineering studies, to contribute to eliminating cooperation with the all barriers from society. central and local governments and the Support for local development local tourism Operations of the Kawasaki City Gender Equality association, to remove Center (Scrum 21) Clearing foreign plant species from Oku- foreign plant species Nikko TEPCO Public Services, a consortium of three and otherwise TEPCO Group companies, CareerRise Corporation, implement measures to TOSHIN BUILDING CO., LTD., and Toden Kokoku preserve the ecosystem. Co., Ltd., established and began operating the Kawasaki City Gender Equality Center (Scrum 21) in April 2006, Educational support activities as the designated administrator. The undertaking has Educational opportunities using thermal power received widespread attention as a rare example of a station facilities private sector company operating a facility for gender TEPCO's Minami-Yokohama Thermal Power Station equality. offers the following educational programs to the local Scrum 21 conducts surveys, studies, and awareness- community. raising activities, provides information on gender issues, ● Hands-on vocational training intended for school offers educational and training programs, and organizes teachers various events, to promote gender equality and revitalize ● Internship for high school students the local community. ● Hands-on work experience designed for junior high school students The programs aim to provide hands-on experience in the operations of a power station, including patrolling the site and overhauling a motor, and to contribute to developing career and work values in students, who are the bearers of our future. Through ongoing efforts to provide educational support, TEPCO aims to become an integral part of local communities where our thermal power stations are located. Communities Local with Interaction The Scrum 21 building
Scrum 21:www.scrum21.or.jp (Japanese only)
Hands-on vocational training Internship for high school students intended for school teachers Handling disaster prevention equipment 63 The TEPCO Group and the Community
Interaction with Children
Nature observation programs at TEPCO power TEPCO supports children's education. stations Since 1993, TEPCO has been sponsoring nature observation programs in the green areas of its power stations, which offer a rich natural environment designed to preserve biodiversity. Under the guidance of TEPCO sponsors environment/energy courses and specialized instructors and TEPCO employees who have nature observation events in the green areas of power qualified as Nature Experience Leaders* through in- stations, to promote an awareness of environmental house training, participants enjoy the outdoors while issues in a wide range of people, and particularly in receiving useful pointers on observing nature. 2,252 children. elementary school students and others participated in the FY2007 program. Educational support activities We also offer environmental education training programs for teachers, so that they may effectively apply Environment and energy Nature experience the techniques and tools of the nature observation Courses, lectures, curriculums Nature observation programs program to school education. 149 teachers attended the FY2007 program. Contests (Science Grand Prix) Environmental training programs
＊Nature Experience Leaders Facility tours Other (power stations, etc.) A private qualification given to those who complete a training curriculum designated by the NPO Council for Outdoor and Nature Hands-on work experience (KidZania Tokyo) Experiences (CONE) Environment/energy training programs Dietary education
Environment/energy classes We offer environment/energy courses to children as part of school curriculums. Using models and science kits, we explain how electricity is made, discuss the energy situation and the global warming issue, and teach Nature observation children how to use electricity wisely to prevent global program held in warming, in an easy-to-understand manner. For teachers, the green area of a TEPCO power we provide hands-on environment/energy training station programs. As many as 179 teachers participated in the FY2007 program. Support for dietary education We will continue to provide effective educational TEPCO also takes an active interest in dietary support that takes local characteristics into education, as part of its social contribution activities. We consideration, in cooperation with people who are in the sponsor a wide range of activities throughout the year, position to educate the next generation. including children's cooking classes, which promote parent-child communication, beginning in the kitchen. Participants in the FY2007 environment/energy course The series of recipe books that we have published, called 71,541 elementary school students 16,370 junior high school students Paku-paku Recipe, has become a favorite among users. 2,246 high school students We will be issuing the sixth book of the series on tomatoes this year, and plan to continue providing Our Ibaraki Branch Office maintains a close relationship with the Tsukuba University Energy Education Society, an dietary information on an ongoing basis. organization composed of representatives from Tsukuba University and local education institutions. We participate in training programs and workshops sponsored by the society, and jointly submit items for exhibition at the Exhibition of an electric vehicle Tsukuba Science Festival. at the Tsukuba Science Festival Paku-paku Recipe- Tomato edition
Children's cooking class
64 Interaction with Business Partners
Procurement Advice Center TEPCO promotes CSR procurement* in Corporate Information > Procurement collaboration with business partners. > Inquiries and Consultations TEPCO established a Procurement Advice Center in > Corporate Information > Procurement the Materials and Procurement Department, in January 2003. Members of the advice center, who are ＊CSR procurement independent of any departments that directly handle Procurement of parts and materials used in a product in consideration not only of cost and quality, but also the CSR activities contracts, process problems and opinions they receive of suppliers, including legal compliance, safety management, human from TEPCO business partners, in regard to their rights, and environmental initiatives transaction with TEPCO. The advice center strives to maintain relationships of trust between TEPCO and its TEPCO's Basic Policy on Procurement sets forth business partners and ensure transparent transactions, by basic rules by which TEPCO should purchase investigating issues and recommending improvements materials from suppliers, and also contains TEPCO's from a neutral standpoint. requests of its business partners. We will strictly abide by this policy, to ensure proper CSR Green procurement performance in procurement, while further TEPCO has been actively promoting green strengthening legal compliance and safety awareness procurement since October 2001. As one of our green in collaboration with our business partners. procurement initiatives, we confirm the status of environmental management systems at some 400 of our Basic Policy on Procurement major business partners, by means of an original Comply with laws, regulations, checklist, every two years. We use the evaluation results Promotion of CSR procurement and social norms Procurement Consultation Office not only as criteria for selecting business partners, but Give top priority to safety also as a tool for increasing environmental awareness in our business partners, by providing feedback through Maintain an open business stance Supplier relations activities TEPCO-sponsored environmental seminars and supplier Strengthen mutual trust International procurement Pursue fairness and equity relations activities.
Give environmental Aiming to enhance the procurement process considerations Green procurement When changes occur in laws and commercial practices, TEPCO accordingly reflects those changes in its transactions with business partners. We revise the Implementation of supplier relations activities terms of order contracts, as well as the content of TEPCO discloses its management plans and contracts and confirmation documents, and request our procurement information (basic policy on procurement, business partners to also comply with those changes. procedures, plans, etc.) on its website. As a forum for In November 2006, we included fundamental Partners Business with Interaction / Children with Interaction directly conveying pertinent information and principles of the international community (prohibition of communicating with business partners, we hold a child labor, prevention of forced labor, etc.) in our procurement guidance seminar every April. We also contracts with business suppliers, and clarified conduct regular small meetings with business partners in provisions concerning confidentiality of trade secrets each procurement area, including the thermal power, and personal information. We also corrected some one- nuclear power, power transmission, and power sided provisions, for instance by stipulating that both transforming areas, as a means of exchanging views and TEPCO and business partners have the mutual right to information related to procurement. In fiscal 2007, about initiate changes to the terms of a contract. Furthermore, 400 companies attended the procurement guidance we intend to redouble our efforts to ensure and maintain seminar, and a total of proper transactions, by implementing various activities about 350 companies to verify the appropriateness of the cost base and participated in small transparency in our transactions with business partners. meetings. We use the We will continue upgrading our activities so that we views and requests we may further promote CSR procurement based on our receive through these Basic Policy on Procurement, with the understanding activities, to review and cooperation of our business partners. and enhance our procurement activities. Procurement guidance seminar
65 The TEPCO Group and the Community
Interaction with Employees
TEPCO is committed to creating a fair and TEPCO values diversity in its staff and secure working environment. workplaces.
Labor-management relations TEPCO practices fair and equal employment from Based on our labor agreement, TEPCO has adopted a the perspective of human rights and diversity. union shop system, in which all employees who do not hold a management position become members of Employment of persons with disabilities TEPCO's labor union. In fiscal 2007, we held a labor- As many as 502 employees with disabilities work for management committee to discuss working hours, TEPCO. They account for 1.98% of our workforce (as of changes in working styles, and promotion of the June 1, 2007), and more than satisfy the 1.8% statutory voluntary action plan based on the Law for Measures to requirement. In July 2008, we established a special Support the Development of the Next Generation. The subsidiary*, as a means of creating new employment labor and management sides exchanged views on the opportunities for persons with disabilities and further effectiveness of current policies and future measures. supporting their participation in society and their independence. The company is slated to begin Human rights operations in October 2008, mainly in the areas of TEPCO has established Human Rights Education printing/copying, cleaning, and gardening (growing Committees and Human Rights Education Promoters for flowers and planting flowerbeds) work. promoting human rights awareness. In fiscal 2007, a total of 37,642 employees received human rights ＊"Special subsidiary" under the Employment Promotion Law A subsidiary acknowledged by the government as a company that training provided by the committee. We have also gives special consideration to employing persons with disabilities organized the Human Rights Association of Power under the Employment Promotion Law. Persons who work for the Suppliers, as a Group-wide effort to promote human special subsidiary can be considered employed by the parent rights awareness. The association shares human rights company or by a group of designated subsidiaries. information among Group companies, and provides lectures and support for human rights education, as Employment of older persons necessary. TEPCO has reviewed its employment system for older persons and extended the retirement age to 65, in Measures against sexual harassment accordance with the revision made to the Law for the To prevent sexual harassment, TEPCO has created Stabilization of Employment of the Aged in June 2004. Sexual Harassment Prevention Guidelines. We have also From April 2007, the new system allows employees established consultation offices both inside and outside between ages 55 and 57 to choose to either work until the company, to prevent any occurrence of sexual age 65, through re-employment by TEPCO or transfer to harassment among TEPCO employees, temporary a different TEPCO division, or to work at TEPCO until workers, and all who are involved in TEPCO's business, the mandatory retirement age of 60. and to resolve any issues should they occur. Support for female employees Health management Female workers account for roughly 12% of TEPCO's To help employees maintain and improve their health, workforce. To support their careers, the Diversity TEPCO provides regular health checkups as required by Development Office plays a central role in creating law, as well as actively engages employees in healthcare measures and policies that promote the ascent of women guidance under industrial physicians and conducts into management positions. The office has hosted female personal counseling for those who work prolonged manager/leader training sessions five times to date since working hours. We also offer EAP (employee assistance February 2004, and received participation from 98 program) services in partnership with external specialist female employees. Thanks to these efforts, eight women institutions, to help solve mental and physical concerns were promoted to management positions in fiscal 2007, through telephone consultations and face-to-face and raised the total number of female managers to 55. counseling sessions. In fiscal 2007, we placed particular For middle-level and young female employees, we emphasis on mental health, and provided seminars have held cross-industrial exchange seminars jointly according to rank and age group, distributed a mental with other interested companies as a means of enhancing healthcare booklet for families, to raise awareness about job awareness. We issued an open invitation and mental health and prevent illnesses. received participation from 24 female employees. 66 Comment from Employees are working increasingly longer hours. What kind of initiatives are you taking to shorten working hours? a stakeholder: (Questionnaire)
TEPCO's reply: We are working to shorten employee working hours, such as by establishing days of no overtime work and making working hours "visible."
Maternity and child-raising support systems
TEPCO supports good work/life balance maternity leave During spouse's Pregnancy among employees. 6 weeks before birth
Birth
Prenatal/postnatal leave Paternity leave TEPCO believes that achieving a good work/life balance leads to greater productivity among 8 weeks employees and improved performance by the after birth Maternity leave system 3 months Support after returning to work company as a whole. In fiscal 2007, we introduced a after birth 5 days within 3 months of a child's birth special flextime system, to create a comfortable Shortened work hours Special flextime system Childcare leave (up to 5 days/year) workplace for expecting female employees and 1 year old Nursing time (30 minutes, twice a day) employees who must care for children or other family members. Through these efforts, we have achieved our target of 80% on the Work/Life 3 years old
Balance Index*. ※1 (up to 2 hours/day)
※2
＊Work/Life Balance Index An index created by the Ministry of Health, Labor and Welfare, for companies to objectively evaluate the effectiveness of their measures Child enters and policies in support of good work/life balance elementary school Child finishes Management of working hours first year of elementary school TEPCO keeps control of working hours from the standpoint of proper management, work efficiency and ※1 After the fiscal year in which the child turns three, the system is valid for up to a total working styles, and reforming employee awareness and of three years. ※2 Even in workplaces that do not have a flextime system, employees who need to care work climate. for a child or another family member may also apply for the system on an individual We encourage our employees to principally work no basis. later than 8 p.m., enforce a day of no overtime work, and Number of employees who Number of employees who make working hours "visible," so that each and every have used the parental have used the family care one of our employees may achieve a good work/life leave system leave system balance. (people) (people) 400 25 Total working hours per Average number of days 22 350 297 (7) taken for ordinary leave* 18 employee 272 (4) 20 17 300 244 (6) (hours) (days) (1) (5) 2,000 1,967 1,975 1,973 20 250 (3) 15 16.0 15.8 15.9 200 15 1,500 150 10 10 100 5 50 0 0 2005 06 07 (FY) 2005 06 07 (FY) 0 0 *Legally mandated paid leave of 20 days/ 2005 06 07 (FY) 2005 06 07 (FY) year, in principle. (Note) Number of employees who began (Note) Number of employees who began their leave during the fiscal year. Figures their leave during the fiscal year. Figures Maternity and child-raising support in parentheses represent number of men. in parentheses represent number of men. TEPCO provides a leave system, as well as system for Support for employees' volunteer activities returning to work after taking a leave, to create a TEPCO's volunteer leave program allows employees
comfortable working environment for expecting to take up to five days per year, in principle, to Employees with Interaction employees and employees who are raising children. To participate in social service activities at their own eliminate worries among initiative. 1,120 employees used the program in fiscal female employees about 2007. Since April 2002, we have continued to returning to work, we also implement wide-ranging activities to encourage sponsor seminars by other employees to use the program. For example, we female employees who have established the TEPCO Volunteer Center, provided actually taken a parental leave information on volunteer activities via Intranet, and and have returned to work sponsored various seminars and events. after a certain absence. Parental leave seminar 67 The TEPCO Group and the Community
Comment from a stakeholder: What specific measures is TEPCO taking to prevent accidents? (Postcard)
TEPCO's reply: We have assigned Safety and Quality Officers to each office, to discuss potential risks and issues hidden in business activities, and implement activities for eliminating all causes of accidents.
Thorough commitment to Group-wide safety TEPCO gives top priority to safety. initiatives TEPCO performs various onsite work in partnership with other Group companies (35 companies, including related companies that undertake the inspection of TEPCO facilities and cooperating companies in the As TEPCO's power facilities are distributed over power distribution and communications fields). an extremely wide area, the understanding of local Therefore, we exchange information on safety activity communities and the wider society is essential to systems and implementation status and share potential pursuing business activities. Based on this awareness, causes of accidents with other Group companies, to we give top priority to safety and promote company- further strengthen mutual cooperation. wide safety activities, to prevent accidents. In fiscal 2007, the number of accidents involving Promotion and implementation of safety activities second-degree minor injuries or worse has decreased, To prevent accidents, our Head Office and other which is one of our priority goals for preventing offices formulate and implement an annual Safety accidents. We will continue to enhance risk assessments Activity Plan, based on risk assessments and other and other accident prevention practices, to further investigations. They also check and evaluate the status improve Group-wide safety management initiatives. of safety activities and review them as necessary, to ensure the smooth flow of the PDCA safety management cycle and consistently improve safety. Number of accidents Safety and Quality Officers in each office encourage Deaths Severe Second degree First degree No impact employees to individually look for potential risks and injuries※1 minor injuries※2 minor injuries※3 on work※4 issues hidden in their business activities, and to discuss TEPCO employees 0 33 9 96 them within each workplace, to eliminate all causes of FY2005 Contractors, accidents. general public 4698361 149 The Head Office supports the efforts of other offices, TEPCO employees 14 2 16 119 such as by upgrading company-wide safety rules, FY2006 Contractors, providing safety education, examining causes and general public 3675985 146 countermeasures for major accidents, and verifying and TEPCO employees 13 3 14 127 FY2007 Contractors, assessing the status of safety management. 3774282 167 Our goals for fiscal 2008 include the development of general public ※1 Injuries resulting in a loss of at least 14 days of work (in the case of the general public, injuries human resources capable of promoting safety activities diagnosed by a physician as requiring at least 30 days for treatment) and the steady implementation of measures against the ※2 Injuries resulting in a loss of 4 to 13 days of work (in the case of the general public, injuries diagnosed by a physician as requiring 10 to 29 days for treatment) recurrence of major accidents. ※3 Injuries resulting in a loss of 1 to 3 days of work (in the case of the general public, injuries diagnosed by a physician as requiring less than 10 days for treatment) Overview of safety activities in each office ※4 Applies to TEPCO employees and contractors only
Create safety policies Identify risks and priority Plan and a safety activity plan issues Frequency* and severity* ・Risk assessment ・Preliminary safety Frequency Severity evaluation ・Danger prediction FY2005 Carry out the plan 0.24 0.00 ・Daily safety management FY2006 0.36 0.12 Do ・Safety education Correction of FY2007 0.33 0.12 ・Response to accidents / nonconformities disasters ・Reporting nonconformities *Frequency ・Upgrading rules The frequency of accidents, measured as the number of persons injured or killed in a labor accident resulting in a loss of at least one day of work, per one million hours of work *Severity Conduct a management review Major roles The severity of accidents, measured as the number of days of work lost because of labor accidents, ・Status of safety activities Office Directors per 1,000 hours of work (0.00 means less than 0.005) Check ・Evaluation of the safety ・Overall supervision of management process activities (Note) TEPCO employees only ・Status and causes of accidents Safety and Quality Officers ・Verification and assessment of safety initiatives ・Guidance and support for Act Review safety activities the establishment of safety measures
68 Training systems TEPCO actively supports employee TEPCO supports the capacity development of its performance and capacity development. employees in many ways. Although on-the-job training and employees' self-development efforts are the two main pillars of employee training, all TEPCO departments, offices, and the General Training Center Evaluation of skills and performance offer diverse training programs designed to help TEPCO's employee evaluation system ensures proper participants acquire the latest in specialized knowledge evaluation of employee skills and performance. To and skills in a short period of time, and to promote increase subjectivity, transparency, and acceptance, friendly competition for mutual growth. evaluations are made from multifaceted angles by a The General Training Center provides a wide range of number of senior employees. Details of the system and training programs intended for different employee evaluation criteria are disclosed on the Intranet, and levels, from new employees to upper management, in employees are notified of their evaluation results in an line with the TEPCO Management Vision. The interview with their superior. The implementation status programs enhance the skills of each individual, based on and content of the interviews are monitored. the concept that three types of human resources are necessary for supporting frontline workplaces, where Support systems that exploit employees' full abilities employees must make consistent and independent efforts TEPCO's Internal Recruiting System provides aspiring to improve work quality and efficiency. They include employees an opportunity to challenge themselves and managers who possess outstanding management skills; realize their full potential. For employees who possess frontline workers with advanced technologies and skills high professional knowledge, the Professional/Specialist and the ability to discover and solve issues; and System evaluates and accredits their technical expertise. innovative leaders who can promptly respond to environmental changes and initiate management reforms. As a place that gathers more than 6,000 participants a year, the training center provides ideal opportunities for "face-to-face communication" among employees. Based on this awareness, it provides training programs on topics and subjects that are directly related to each employee's duties. Major training programs offered by the TEPCO General Training Center Goal Development of managers Development of frontline workers possessing advanced technologies Development of Awareness-raising and others Scope with outstanding management skills and skills and the ability to discover and solve issues innovative leaders Business management Management Certification acquisition support measures (correspondence course,Certification etc.) training
Office selection training Manager management training Innovative leader Innovative Branch office Advanced leadership GM training training training Intensive technology course Intensive technology Marketing skill reinforcement training
Management Vo General employees Career vision training Sales and marketing training skill improvement training (English) luntary training (follow-up training) (follow-up Security control systems Facilities automation neato ihEmployees with Interaction systems training Management WT training basics II (CES) training W-T W-T P Domestic university enrolment system
※3 Management Technical Σ
※2 basics I leader
training ※1 Practical skill development program
New employee training
※1W-TΣP: Offers young employees an opportunity to exercise and expand their potentials, and fosters employees who are capable of taking positive action to promote new technologies, business restructuring, and creation of corporate value ※2WT training: Offers an opportunity to discuss the latest management issues among participants from various departments, to raise motivations for innovations and foster a positive and independent attitude toward work. ※3Career vision training: Helps employees create a subjective career vision based on an understanding of their own values and strengths, and motivates them to develop the capacities necessary for realizing the vision 69 The TEPCO and Nuclear Power
TEPCO is committed to ensuring stable operations of its power stations by placing top priority on safety, and discloses information on the status of power station operations, to increase transparency of its business. Taking the views and opinions we receive from our customers to heart, we will steadily improve the operations of our power stations, as we strive to regain the trust and confidence of our customers.
Fukushima Daiichi Nuclear Power Station
TEPCO's nuclear power stations
TEPCO nuclear power stations in Fukushima and Niigata Prefectures produce most of the electricity that is used in the Tokyo Metropolitan region.We are currently preparing to construct a new power station,the Higashidori Nuclear Power Station,in Aomori Prefecture,to further ensure stable supplies of electric power. The power station's No.1 unit is slated to commence operations in 2015.(As of May 31, 2008, the Kashiwazaki- Kariwa Nuclear Power Station in Niigata Prefecture remains closed, caused by the occurrence of the Niigata-Chuetsu-Oki Earthquake.) Kashiwazaki-Kariwa Nuclear Higashidori Nuclear Power Station Power Station Kashiwazaki City and Kariwa Village, (preparing for construction) Niigata Prefecture Higashidori Village, Aomori Prefecture Total output: 8,212 MW Commencement of operations: September 1985 Number of TEPCO employees: 1,072 Employment Number of contractor employees: 4,233 within (as of December 1, 2007) Niigata Fukushima Daiichi Nuclear Prefecture Power Station 77% Okuma and Futaba Towns, Fukushima Prefecture Total output: 4,696 MW Commencement of operations: March 1971 Number of TEPCO employees: 1,064 Employment Number of contractor employees: 5,315 within (as of December 1, 2007) Fukushima Prefecture 93% Fukushima Daini Nuclear Power Station Tomioka and Naraha Towns, Fukushima Prefecture Power output by energy source Total output: 4,400 MW (incl. purchased power) 90 (GW) Commencement of operations: April 1982 84.98 Number of TEPCO employees: 710 76.86 Number of contractor employees: 3,265 75.63 Hydroelectric (as of December 1, 2007) Other Construction plans at nuclear power stations 50 Petroleum Planned commencement LNG/LPG Location Power output of operations Fukushima Daiichi Unit No. 7 1,380 MW October 2014 Coal Fukushima Daiichi Unit. No. 8 1,380 MW October 2015 Nuclear 0 Higashidori Unit No. 1 1,385 MW December 2015 2007 2008 2017 (FY) Higashidori Unit No. 2 1,385 MW FY2018 or later (Projection)
70 Preventing the Recurrence of Data Tampering and other Improper Handling of Data on Nuclear Power Facilities Since incidents of misconduct at nuclear power stations have been revealed in 2002, TEPCO has devoted its efforts to creating a compliance culture and a mechanism of checks and controls to prevent their recurrence. However, more examples of past misconduct, including data tampering and concealment, have been confirmed after November 2006. Again, we have ended up causing much concern and inconvenience to local communities and the wider society, and have lost the very trust and confidence we have been working hard to regain from our customers. Reflecting deeply on these incidents, we are bolstering our ongoing initiatives for creating a compliance culture and a mechanism of checks and controls, and are taking additional measures to create a framework for speaking out, to ensure our nuclear power stations think and act from the standpoint of local communities and society, in the effort to widely restore public confidence.
Thinking and acting from the standpoint of local communities and the wider society Technical PR Officers Reflecting public opinion in TEPCO business management We have established a new position called Technical PR To properly reflect valuable opinions we receive from local Officers in our Head Office and nuclear power stations in communities in our business management, we have April 2007, to strengthen ties established Local Opinion Committees not only in our with the local governments nuclear power stations, but in our Head Office as well. In of communities where our addition to communicating public opinions to the power stations are located, management, the committees strengthen ties between the as well as to promote cross- power stations and Head Office and help improve business sectoral responses across operations. the publicity, technical, and Explanatory meeting for local management sectors in each residents held by Technical PR of our facilities. Officers
Compliance culture and a mechanism of checks and controls Strengthening "visible" information dissemination Disclosing data on seawater intake/discharge We have bolstered our ongoing efforts for proper information temperatures (Japanese only) disclosure, to further increase transparency of business at To properly manage seawater temperature data, we have our power stations. We are actively implementing diverse established policies for the management of the temperature measures to disseminate information on various aspects of difference between the intake and discharge of seawater our power stations in a "visible" manner, by means of that is used to cool steam after power generation, and publicity relations magazines and our website. disclose the data on our website (data from Fukushima Daiichi and Daini Nuclear Power Stations only, at present). Data of seawater intake/discharge temperature differences disclosed on the website
Measures for preventing the natural withdrawal of the control rod To prevent inadvertent withdrawal of the control rod from Status of regular inspections disclosed on the website the core, we have reviewed our manuals and operating instructions, and are improving our facilities to prevent any withdrawal of the control rod in the event of an incorrect operation or equipment malfunction.
Framework for speaking out Enhancing the framework for managing nonconformities Holding safety seminars We are working to create a culture that encourages To create an organizational culture that supports learning employees to openly speak out about nonconformities＊ from mistakes, we have when they occur, without hiding them. As part of this effort, sponsored safety seminars we have made it clear in our manual that individuals who given by outside experts and report a nonconformity that could not be avoided in spite of instructors, intended not precautions, will not be blamed for that nonconformity. only for TEPCO employees, ＊Nonconformity but also for people from A condition that differs from a rightful condition, or an action local communities and (decision) that differs from the action (decision) that should Seminar on safety issues rightfully be taken cooperating companies.
We will continue to concentrate our efforts on preventing the recurrence of improper conduct, so that our nuclear power stations are worthy of our customers' trust and confidence.
71 TEPCO and Nuclear Power
Disclosing Information about Our Nuclear Power Stations
TEPCO is committed to proper information disclosure, to be a power provider worthy of public trust and confidence.
TEPCO proactively discloses information on various aspects of its nuclear power stations, to be worthy of the trust and confidence of local communities and the wider society.
Active disclosure of information by nuclear power stations Nuclear information on The Nonconformities Management Committee in each the TEPCO website power station examines all cases of nonconformities such as equipment troubles and failures that occur at power stations. The committee decides which incidents should be disclosed, based on disclosure criteria it has established from the standpoint of local communities and the wider society, and uses press releases and the TEPCO website to disclose pertinent nonconformities. They include incidents that TEPCO has a legal obligation to report, as well as information on relatively minor equipment failures and daily maintenance. Reports of such incidents are accompanied by the results of examinations of causes and measures to prevent recurrence. Public relations magazines issued by power stations To further reassure our customers of the safety of our operations, we provide information on daily safety assurance and quality control tasks that are of particular concern to local residents on our website and through distribution of public relations magazines. By actively disseminating information on various aspects of our power stations in "visible" form, we are striving to increase transparency of our operations.
● MobileTEPCO Fukushima ● Mobile Kashiwazaki-Kariwa http://www.tepco.co.jp/i/np-f/ http://www.tepco.co.jp/i/np-kk/ (Japanese only) (Japanese only)
Nonconformity disclosure criteria Disclosure Number of incidents category Types of incidents and specific examples Disclosure method (news media, website) reported in FY2007 Serious cases, including those subject to reporting under the Disclose by means of a press release or via website, 1 law regardless of the time of day or whether the day is a 7 e.g.: ・Unplanned shutdown of a nuclear reactor ・Occurrence of a fire, etc. holiday or weekend Minor problems not subject to reporting under the law Disclose by means of a press release or via website, 2 e.g.: ・Minor malfunction of an important safety device, etc. regardless of whether the day is a holiday or weekend. If the 50 ・Discovery of foreign matter in the reactor or spent fuel incident has occurred at night, the incident is to be disclosed pool the next morning after making the necessary preparations. Incidents to be disclosed from the perspective of securing trust Analyze and disclose on the website by the evening of e.g.: ・Equipment failure that has no direct impact on the safety 3 or operations of the nuclear reactor the following day (weekday), and inform the press that 119 ・Injury that has occurred onsite at a power station new information has been posted on the website.
Other Nonconformities other than the above Regularly disclose via website. Provide details to the About 14,200 e.g.: ・Minor daily repairs, etc. press at a regular press conference.
72 Comment from a stakeholder: Please provide more information about the amount of radiation in the vicinity of power stations. (Questionnaire)
TEPCO's reply: We constantly monitor the amount of radiation and levels of radioactive substances emitted from our nuclear power plants and disclose the information to the public.
TEPCO strictly manages and discloses all [Radiation is all around us] pertinent information on radiation. Radiation is the very energy that is released from the nucleus of an atom and electrons surrounding the nucleus. The ability to release radiation is called radioactivity, and substances that have the ability to We constantly monitor the amount of radiation release radiation are called radioactive substances. and levels of radioactive substances emitted from our We are constantly exposed to radiation in our nuclear power plants and disclose the information to daily lives. For example, from outer space and from the public. radioactive substances contained in the ground and the food we eat. The amount of radiation we receive Management of radiation from nuclear power from natural sources varies from region to region, stations but on average, we are exposed to about 2.4 Nuclear operations release very slight amounts of mSv/year (world average) of natural radiation. radioactive substances. However, we strictly manage the radioactivity of these radioactive substances, not only to make sure it does not exceed the legally allowed limit (1 Radiation in our daily lives mSv/year), but to minimize the amount of radiation as Amount of radiation (unit: mSv) much as possible. 10 We have set a target of 0.05 mSv/year, but in reality, Natural radiation in Guarapari, we are maintaining lower levels than the target level (the Brazil: 10／year amount of radiation emitted by each TEPCO nuclear From chest X-ray CT scan power station in fiscal 2007 was less than 0.001 examination: Natural radiation per person: mSv/year). This means that surrounding residents are 6.9／exam 2.4／year From outer exposed to significantly less radiation from our nuclear 1 space: power stations compared to radiation that naturally 0.39/year Public radiation exists in the environment. From food: dose limit:1／year 0.29/year From radon in Monitoring of radiation and radioactive substances the atmosphere: Our nuclear power stations closely monitor the 0.1 1.26/year amount of radiation and levels of radioactive substances Chest X-ray mass From examination: the ground: they release into the environment, by installing 0.48/year monitoring posts in the perimeter of power station sites 0.05／exam Target radiation level around and monitoring radiation in the atmosphere around the 0.01 nuclear power stations: clock. Real-time information of radiation is made 0.05／year publicly available on our website. icoigIfrainaotOrNcerPwrStations Power Nuclear Our about Information Disclosing We also measure the amount of radioactive substances Monitoring of environmental radiation around nuclear contained in seawater, soil, and agricultural products by power facilities collecting samples from around our power stations, and examine the impact of radiation on the surrounding Monitoring car Collection of land environment samples environment. The results of such surveys are reported to Measurement of radioactivity in plants, milk, soil, rainwater, etc. local governments, as well as widely disclosed to the Measuring public. instrument Exhaust Real-time data disclosed on our website (Japanese only) stack ※1
Nuclear power facility Monitoring zone
Water discharge port 2 Monitoring post ※ Measuring instrument Collection of marine environment samples Measurement of radioactivity in fish/shellfish, seaweed, seawater, etc. ※1 Exhaust stack: Radiation is constantly measured at the exhaust stack, where air is released after circulating the buildings of the power station. ※2 Water discharge port: Radiation is constantly measured at the discharge port, from where seawater that has been used to indirectly cool the steam for running the turbine and a portion of the wastewater from the power station are released to the sea. Source: Based on Federation of Electric Power Companies of Japan, Consensus Nuclear Power 2008 73 TEPCO and Nuclear Power
Nuclear Fuel Cycle
generating process. These substances can be TEPCO is promoting the nuclear fuel cycle, collected, reprocessed, and reused as new fuel. This for the effective utilization of energy process from mining uranium ore to recycling spent resources. fuel is called the nuclear fuel cycle. As Japan depends heavily on imports for most of its energy needs, it is pushing ahead with the Uranium ore is extracted from mines and establishment of the nuclear fuel cycle, as a means of converted to fuel for nuclear power generation, securing stable energy supplies through the effective through a variety of processes. Spent nuclear fuel use of uranium resources and ensuring proper contains unfissioned uranium, in addition to treatment and disposal of radioactive waste. plutonium that is newly produced in the power
Nuclear fuel cycle
Refined uranium Uranium ore (yellow cake) Recovered uranium Natural uranium Uranium mine Refining plant Conversion facility
Radioactive waste (high level) Reprocessing MOX＊powder Uranium plant enrichment plant High-level radioactive waste storage and Spent fuel management Spent fuel Spent fuel Enriched MOX fuel uranium facility interim storage fabrication plant Depleted uranium facility
MOX fuel assemblies Spent fuel Nuclear power station Re-conversion facility Low-level radioactive waste underground Radioactive waste (low level) facility Uranium fuel assemblies Fabrication Enriched uranium High-level radioactive ＊MOX: plant waste disposal facility Mixed oxide composed of uranium and plutonium
Preparations are underway for the commencement of We are preparing to build a safe storage facility for operations at a reprocessing plant and a MOX fuel spent fuel fabrication plant TEPCO and The Japan Atomic Power Company Spent fuel from TEPCO's nuclear power stations is founded Recyclable-Fuel Storage Company (RFS) in collected by Japan Nuclear Fuel Limited (JNFL) and November 2005, in Mutsu City, Aomori Prefecture. RFS chemically treated at its Rokkasho Reprocessing Plant. applied to the Ministry of Economy, Trade and Industry Unfissioned uranium and newly-produced plutonium are for a business license in March 2007, and is now removed from the fission product, and the plutonium undergoing strict safety analysis by the government. The that is removed is ultimately recovered as MOX powder. company has also begun preparations for the The MOX powder is processed into MOX fuel for light- construction of a spent fuel storage facility in March water reactors in a MOX fuel fabrication plant. 2008. Japan Nuclear Fuel Limited (JNFL): Recyclable-Fuel Storage Company (RFS): http://www.jnfl.co.jp/english/index.html http://www.rfsco.co.jp (Japanese only)
JNFL's reprocessing plant (Rokkasho-mura, Aomori Prefecture) Conceptual image of the recyclable-fuel storage center (slated to 74 commence operations in 2010) disposal of nuclear waste in close cooperation with the Candidate sites are being selected for the government and electric power companies. It is openly construction of a high-level radioactive waste seeking candidate sites for preliminary investigation on disposal facility the feasibility of siting a final repository. After verifying Reprocessing facilities produce fission products and the geological conditions of each candidate site and other waste materials in the process of recovering making sure there are no volcanoes or active faults uranium and plutonium from spent fuel. These waste located in the site, NUMO conducts a three-step survey materials are called high-level radioactive waste, and selection process. because they display high levels of radioactivity. In line with the revision of the Final Disposal Law in High-level radioactive waste is mixed with glass June 2007, high-level waste among low-exothermic components and melted at high temperatures. The radioactive waste with long half-lives (transuranic molten waste is then solidified into chemically stable, (TRU) waste)* was included among radioactive waste vitrified waste in an anti-corrosive stainless container. requiring underground disposal. NUMO has therefore Because vitrified waste has high calorific value, it must expanded its operations to the disposal of high-level be stored and cooled for about 30 to 50 years, before it TRU waste, in the same manner and schedule as high- can be buried in a stable stratum more than 300 meters level radioactive waste. below the earth's surface. As a generator of radioactive waste, TEPCO works in Underground disposal is internationally acknowledged close cooperation with the government and NUMO, to as a highly viable method that poses fewer problems promote public understanding of the matter. compared to cosmic, seabed, or ice-sheet disposal that has been researched by international institutions and ＊Low-exothermic radioactive waste with long half-lives (transuranic (TRU) waste) countries around the world. Countries such as Finland, TRU waste is produced during the operations and dismantlement of Sweden, France, Germany, and the United States have reprocessing plants and MOX fuel fabrication plants. These plants adopted underground disposal policies. generate an estimated 18,100m3 of high-level TRU waste, which In Japan, the Nuclear Waste Management requires underground disposal. Organization of Japan (NUMO), which was established Nuclear Waste Management Organization of Japan (NUMO): based on the Law on Final Disposal of Designated http://www.numo.or.jp/english/index.html Radioactive Waste (Final Disposal Law), handles the
Image of a high-level waste repository Basic framework for radioactive waste disposal
Electric power External fund management Radioactive Waste companies, Management Funding reprocessing Access shaft Disposal panels and Research Center (RWMC) companies, (designated organization) Payment Retrieval of funds MOX fuel fabrication (governmental Management and investment of companies of funds Boring hole approval required) the waste disposal fund Underground connecting pathways Nuclear Waste Management Organization of Japan (NUMO) (authorized organization) Backfill completed Selection of preliminary investigation sites contribution amount
In operation of Determination Designation,
Construction, improvement, and maintenance of repositories supervision Underground disposal Depth of more than 300m Under construction Closure and post-closure management of repositories Collection of contributions Ancillary operations
Underground repository: Total area of about 10 km2 Authorization for establishment, supervision Formulation of NUMO Responses to unexpected circumstances implementation plans Prevention of the dissolution of NUMO Governmental approval Safety regulations
Formulation of basic policies Government Formulation of final disposal plans Schedule of underground disposal Around 2010 Around 2028 Around late 2030s ula ulCycle Fuel Nuclear Selection of preliminary Selection of detailed
Public construction site Commencement investigation site investigation investigation site investigation Selection of a repository solicitation of operations investigation investigation Preliminary Preliminary Literature-based Preliminary Detailed Detailed survey investigation investigation Application Construction Operations Closure and post-closure management ※
※ At times, the government may consult with a municipality regarding the implementation of a literature-based survey, while giving full consideration to the wishes of the local community. The head of the municipality may accept or reject the government's proposition. Source: Based on materials from the Nuclear Waste Management Organization of Japan (NUMO) 75 Third Party Opinions
Third Party Opinions (TEPCO Advisory Committee on Environmental Affairs)
The TEPCO Advisory Committee on Environmental Affairs, which was established in 1993, convenes every year, to widely receive opinions and advice from outside authorities and experts, on TEPCO's CSR and environmental initiatives. We are actively utilizing the opinions we have received in the fiscal 2007 meeting, to further enhance our activities.
TEPCO Advisory Committee on Environmental Affairs Members (in alphabetical order; job titles are those at the time of the meeting) ● The 16th Meeting of the TEPCO Advisory Committee on Environmental Affairs: August 27, 2007 ● Facility tour: March 10, 2008
■ Outside members Junko Edahiro Chief Executive, Japan for Sustainability Toshihiko Goto Chair, Environmental Auditing Research Group; Chair, NPO Sustainability Forum Japan Yojiro Ikawa Editorial Writer, The YOMIURI SHIMBUN Junichi Mizuo COE Professor, Tokyo Institute of Technology; Professor, Surugadai University Ken Noguchi Alpinist Motoyuki Suzuki Professor, The Open University of Japan; Special Programme Advisor, United Nations University
■ TEPCO members President and CSR Officers
Major opinions received in the fiscal 2007 meeting (top paragraph: opinion; bottom paragraph: overview of TEPCO's initiatives)
Impact of the Niigata-Chuetsu-Oki sTEPCO has given very little attention to its in-house firefighting capacity up to now. Large earthquakes are almost always Earthquake on the Kashiwazaki-Kariwa accompanied by a fire, but the local fire department may always Nuclear Power Station not be able to rush to the power station at once, due to collapsed roads and landslides. TEPCO should have given more sTEPCO was slow in announcing the safety of its nuclear power consideration to enhancing its in-house firefighting capacity on a station. A risk management framework should be created based routine basis. on a firm understanding that electric power companies must ─ We will take sufficient measures to enhance our in-house communicate with the public under severe circumstances. firefighting capacity, such as by assigning firefighting ─ We will organize and prepare a list of important items to be personnel to provide 24-hour service in nuclear power communicated to the public in the case of a disaster, such stations, deploying chemical fire engines to extinguish oil as the status of nuclear power stations, radiation, fire, and fires, and providing continuous education and training to other impacts, and strive to provide information in a prompt firefighting personnel. (See page 10 for details.) manner. We will also enhance communications with local residents, by making full use of diverse resources, such as sFrom an outside perspective, TEPCO appears to have poor risk radio broadcasts, the TEPCO website and mobile phone site, management. It is worrying to imagine that TEPCO may be thinking and loudspeaker cars. it can ensure safety and proper risk management simply by meticulously complying with numerous relevant regulations. sThe Kashiwazaki-Kariwa Nuclear Power Station is extremely Fundamentally, risk management is something that each company significant, as a rare case in which a power station has must establish independently. Whether or not it satisfies experienced a major earthquake. Therefore, TEPCO should analyze governmental rules should only come as a consequence of having the incident in terms of how it may share the experience with the independently established the system. world and how it may use it to benefit mankind. ─ At our nuclear power stations, we have always worked to ─ We are actively disclosing and sharing data we have identify risks from the perspective of disaster prevention, obtained through various surveys, as well as our experience provide safeguards for nuclear fuel substances, and prevent from the Niigata-Chuetsu-Oki Earthquake, to promote safety nuclear accidents. Based on our experience of the Niigata- in nuclear facilities throughout the world. We also hope the Chuetsu-Oki Earthquake, we have strengthened our in- information will be more widely disseminated through house firefighting system and information governmental expert committees and third-party institutions communication/provision framework. Hereafter, we plan to such as the International Atomic Energy Association (IAEA), conduct geological surveys, to appropriately reflect the and will help nuclear power stations secure safety in the knowledge we have gained from the earthquake to seismic event of an earthquake. safety assessments, and ensure effective implementation of the necessary seismic resistance measures.
76 TEPCO's initiatives against global warming Energy issues and others sTEPCO should think about how to promote natural energy use in sTEPCO should provide a large picture of Japan's energy supply- society, and put its ideas to practice. The issue lies not in demand situation in 2050, based not on its earnings from selling considering whether the world's greenhouse gas emissions can be electricity, but on a more advanced concept of selling energy reduced, but in actually implementing measures to reduce them services. and exploring the means of doing so. ─ We will take serious note of your opinion. ─ We will leverage the efforts of the entire TEPCO Group to implement practical measures, while addressing the issues sMany people take electricity for granted, though it is a precious of cost and stability, and will widely disseminate information commodity. People in countries that face power shortages and of our initiatives to gain steady public understanding. experience rampant power outages know the difficulties of living without electricity, but in Japan, there is no realistic concern over sDeveloping countries emit half the world's total greenhouse gas. the issue of power shortage. To reduce total emissions by half, Japan must reduce its ─ To support Japan's advanced IT society, we need to work emissions by 80-90%. TEPCO should explain the difficult situation harder to provide a reliable power supply, compared to such that Japan faces as a member of the international community, as other countries. However, we will certainly continue our well as TEPCO's role in supporting Japan's difficult challenge. efforts to deepen public understanding of the importance of ─ We will give detailed explanations at various opportunities. electricity and energy, by providing information on energy conservation. sTEPCO has an important responsibility to fulfill as one of the largest emitters of CO2 in Japan. The issue of global warming is sThe peak demand period in Japan continues over 1-3 weeks in being addressed at the corporate and national levels, but no the summer. To accommodate peak demands and provide stable progress is observed at the individual level. TEPCO must fulfill its supplies of electricity, power generating facilities must have social responsibility, by more strongly encouraging energy extremely large capacities. However, it seems slightly misguided to conservation in society, and making ongoing efforts to increase allow society to use as much electricity as it wants. From the public awareness of the global warming issue. concept of changes in lifestyles, a social system should be ─ We will provide information through our CO2 Diet Declaration created, based on national consensus to create holidays or to shut campaign, as well as by distributing pamphlets on energy down plants in turn, during the peak period. conservation, and continue to support effective electricity ─ To secure stable supplies of electricity, the supply side must use by our customers. (See page 49 for details.) maintain capacities that can respond to peak demands, while also employing measures to disperse demands during sIn addition to this Advisory Committee on Environmental Affairs, peak periods. By promoting thermal storage equipment that TEPCO should perhaps hold stakeholder dialogues on the global could help shift demands to nighttime and offering contracts warming issue several times a year, with more diverse members that provide discounts to customers who systematically curb from both inside and outside of TEPCO. their electricity use during peak periods, we have improved ─ We are working toward the realization of stakeholder our annual load factor. dialogues, but heeding your advice, we will redouble our efforts to implement such dialogues in the future. ＊Annual load factor The ratio of annual average demand to maximum demand sThe international community has agreed to reduce the world's greenhouse gas emissions by 50%. This decision was apparently sTEPCO is apparently working hard to maintain effective made, based on political acknowledgement of the IPCC's outlook communication, but is not doing a very good job. Making serious that a continuation of the present state could be a disaster for all efforts does not guarantee understanding on the part of life on earth. Perhaps it is time for TEPCO to break free from the stakeholders or society. In today's partnership or network society, bonds of conventional thinking and review its corporate strategies. TEPCO should review and reformulate its conventional ─ We will take serious note of your opinion. communication policies and strategies from a different perspective. sTo prevent any public misunderstanding that Japan can do ─ We will take serious note of your opinion. without nuclear power generation, TEPCO should clearly convey the difficult situation it faces in terms of the global warming issue and environmental countermeasures, on a regular basis. ─ We have issued reports on the impact that the Kashiwazaki- Kariwa Nuclear Power Station became out of service, as well as on the validity of nuclear power generation as a countermeasure to global warming. (See pages 14-15 and 38 for details.)
77 Communication with readers of the TEPCO Sustainability Report
Last year, we published 90,000 copies of Sustainability Some specific opinions from stakeholders Report 2007 in Japanese and 3,000 copies in English, and distributed them to stakeholders who have an interest in sPlease conduct a detailed investigation into the state and TEPCO's business activities. They took the time to provide causes of damage to the Kashiwazaki-Kariwa Nuclear Power Station in the Niigata-Chuetsu-Oki Earthquake, and disclose the feedback of the report using the attached questionnaire form results of the investigation. and via our website. More than 80% of the feedback were ─ We have provided a special feature at the beginning of this from readers who felt the report was generally "satisfactory" report, on the impacts of the Niigata-Chuetsu-Oki or "somewhat satisfactory." However, we also received Earthquake on the Kashiwazaki-Kariwa Nuclear Power requests to include information on the Niigata-Chuetsu-Oki Station, and have also disclosed more detailed information on our website. (See pages 6 - 11 for details.) Earthquake, which occurred after Sustainability Report 2007 was issued, in the 2008 version of the report, as well as sPlease provide more outside opinions on the state of the many opinions and suggestions for improvement. Kashiwazaki-Kariwa Nuclear Power Station in next year's report. We have used the precious feedback we received from our ─ We discussed the state of the Kashiwazaki-Kariwa Nuclear stakeholders in selecting the contents, deciding the structure, Power Station in our annual meeting with the Advisory Committee on Environmental Affairs, and received various and improving the layout design of this year's report. views from outside experts. (See pages 76 - 77 for details.)
sWhat risk management measures does TEPCO employ, to Result of the questionnaire form (FY2007 report) ensure stable power supply in the event of a large earthquake? ─ We are conducting seismic safety assessments based on Overall evaluation of the report new seismic resistance guidelines. In preparation for the occurrence of an earthquake, however, we are also "Did the report contain all the information you needed? strengthening our in-house firefighting capacity, carrying No. 0% out emergency drills, and otherwise reinforcing other aspects of our disaster prevention system. (See pages 9 - No, not sufficiently. 1% 10 and 22 for details.) Can't say which. Yes. 13% sThe 2007 report emphasizes the efforts TEPCO has made in regard to reducing CO2 emission intensity, but details should also be given on specific future strategies toward achieving a 20% Number of feedbacks reduction in emission intensity. 43% 507 ─Since nuclear power generation emits no CO2 in the process of generating power, the nuclear facility utilization rate has 43% a large bearing on TEPCO's CO2 emissions. To achieve our CO2 emission reduction target, we will devote our efforts to restoring operations at the currently-suspended Yes, to some extent. Kashiwazaki-Kariwa Nuclear Power Station, as well as make consistent efforts to reduce CO2 emissions through the use of renewable energies and the Kyoto mechanisms. Information that was of interest or concern (multiple answer) (See pages 37 - 43 for details.)
Number of s Content feedbacks TEPCO should provide more detailed information on the initiatives it is taking to contribute to the development of local Heading off Global Warming communities. 297 pages 34 - 47 ─ In this year's report, we have included specific examples of Providing Dependable Electric Power how we are taking an active part in local activities, such as 276 providing support services to the elderly in the event of a pages 12 - 15 disaster. (See pages 62 - 63 for details.) Feature: Cutting CO2 Emissions in the Transportation Sector 248 s pages 26 - 27 Please provide more information on other TEPCO Group companies. Nuclear Fuel Cycle Beginning with this year's edition, we have expanded the 179 ─ pages 70 - 71 scope of the report to include all companies of the TEPCO Group. The 2008 report covers a wide range of information, from policies of the TEPCO Group Management Vision, to local activities implemented by each Group company.
78 Profile
Since its establishment in 1951, the Tokyo Electric Power Company, Inc. Power Stations and Branch Offices (TEPCO) has continuously delivered a stable supply of high-quality electricity through an integrated system of power generation, transmission and distribution. TEPCO supplies electricity to the Tokyo metropolitan region, which, though it covers only about 10% of Japan's total land area, is home to about 30% of its population and is the political and economic
heart of the nation. TEPCO's electricity sales in FY2007 totaled 297.4 Akimoto TWh in volume. This roughly equals one-third of the national total Fukushima Daiichi and is about the same as generated in all of Italy. Kashiwazaki-Kariwa Fukushima Daini Hirono Shinanogawa
Shiobara Nakatsugawa Daiichi Yagisawa Tanbara Imaichi Kinugawa Tochigi Branch Utsunomiya Hitachinaka Shin-Takasegawa Thermal power station Gunma Branch Ibaraki Branch Maebashi Mito Midono Azumi
Kannagawa Saitama Branch Kashima Saitama
Tama Branch Tokyo Branch Head Office Nuclear power station Yamanashi Branch Shinjuku Chiba Branch Kofu Hachioji Kazunogawa Shinagawa Chiba Ohi Chiba Kawasaki Goi Higashi- Anegasaki Yokohama Ohgishima Sodegaura Kanagawa Branch Yokohama Minami-Yokohama Futtsu
Yokosuka Numazu Branch Hydroelectric power station Numazu
Nuclear power station Hydroelectric power station (100MW or more) Thermal power station
Wind power station Location of branch office ※ In this report, TEPCO's internal organizations are referred to as "Head Office and other offices (branch offices, power stations and front line organizations)."
Electricity sales by the 10 electric utilities Service areas of the 10 electric utilities
Corporate Name: Okinawa 1% Kyushu Tokyo Electric Power Company, Inc. (TEPCO) Hokkaido Electric Power Company Shikoku 10% TEPCO Head Office: 3% 297.4 TWh 1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo, JAPAN Chugoku 32% Established: May 1, 1951 7% Total Equity capital: 676.4 billion yen Shareholders: 811,725 16% 919.5 TWh Sales turnover: 5,479.3 billion yen (FY2007)* Tohoku Electric Power Company Ordinary income or loss: 33.1 billion yen (FY2007)* Kansai 9% Hokkaido 4% 15% Net income or loss: -150.1 billion yen (FY2007)* Hokuriku Tohoku 3% Gross assets: 13.679 trillion yen* Hokuriku Electric Power Company Employees: 38,234 Chubu Kansai Electric Power Company Electricity sales: 297.4 TWh (FY2007) ※FY2007 results Customer agreements: Chugoku Electric Power Company Tokyo Electric 28.34 million (does not include specified scale demand) Power Company Maximum output: 64.3 GW (July 24, 2001) Chubu Electric Power Company Kyushu Electric Power Company As of March 31, 2008 Shikoku Electric Power Company * Consolidated basis Okinawa Electric Power Company
Annual Report Corporate Information > Investor Relations > IR Tools > Annual Report 2008 79 Protecting Oze through Everyone's Cooperation TEPCO will continue to actively support the environmental protection of Oze. www.Corporateregister.com 02/10/2008