KansaiKansai ElectricElectric Power’sPower’s GlobalGlobal EnvironmentalEnvironmental ActionAction ReportReport 20012001 A Well-Balanced Environment Today and Tomorrow A Message from the President The 20th century saw Man’s wisdom inspire great leaps in science and technology, bringing about hitherto unknown riches and wealth. However, there has been another side to this, too. We now have to grapple with a new kind of problem: global environmental problems such as global warming, ozone layer depletion and acid rain. It was the century that made large-scale production, large-scale consumption and large-scale waste all possible. And now, to create a sustainable ‘metabolic’ society and to prevent environmental problems threatening the very existence of future generations, we must work persistently to produce results through specific activities aimed at environmental protection in the 21st century. As an energy company whose role in society is to supply clean electric power, we have always strived our utmost to preserve the environment, with particular attention being paid to the demands of the age. From the ’90s onward, in particular, we adopted the ‘Kansai Electric Action Plan for Global Environmental Considerations’ based on the ‘Kansai Electric Five Basic Principles of the Action Plan for Global Environmental Considerations’, and have followed these principles in all our areas of business as part of our work toward global environmental protection. As a result of this, mainly owing to the effects of developing power resources based on nuclear power and the safe and stable operation of such facilities, our company has seen its levels of CO2 emissions (volume per 1kwh of electricity consumed) fall to 0.3kg-CO2/kWh, currently, the lowest among domestic power companies. Furthermore, we have been applying the three ‘Rs’ (Reduce, Reuse and Recycle) in all our business activities in our efforts to process waste products. Through this and other such activities aimed at benefiting society as a whole, we are striving, along with all the citizens of the world, to build a society which values its material resources. We will continue to take a comprehensive view of our operations from the point of view of conserving the environment, obtaining a stable supply of energy and achieving economic viability and continue to pursue the optimum structure for our power resources (the ‘best mix’). While striving to maintain and improve current levels of CO2 emissions in line with the ‘New Era Strategy’, which constitutes a comprehensive approach to the prevention of global warming, we will continue to work toward the creation of a ‘metabolic’ society. This reports describes our policy toward tackling environmental problems, our goals and the current state of affairs with regard to such activities. We recognize our social responsibility as a company to open up information on environmental preservation to the public. As part of this, we believe that, together with obtaining the trust of all our stakeholders, this is an important prerequisite if we are to succeed in managing the environment. In order to achieve sustainable development throughout the 21st century, we, along with all the citizens of the world, will continue to rise to the challenge of environmental problems, independently and energetically, working ceaselessly to get real results. It is our firm resolve, to strive for environmental management, so please feel free to read this report. We hope that this will give you a better understanding of what we are doing, and we hope that you, in return, will give us your frank opinion and advice on our efforts. Yohsaku Fuji President and Director The Kansai Electric Power Co., Inc. 2 Overview of Kansai Electric Japan has ten major private electric utility companies demand, which has increased with the growth of the which operate independently. Each company produces and Japanese economy. As of March 31, 2001, the company’s distributes electricity to a specific geographical region of capacity for hydroelectric power is 8,129 MW, fossil fuel Japan. Kansai Electric’s service area is located in the power 19,561 MW, and nuclear power 9,768 MW, making central part of the main island Honshu and covers 28,681 the total capacity 37,458 MW, which is 16 times larger than km2 (8% of Japan’s total land area). This region, generally the initial figure of 2,284 MW in May 1951, when we known as Kansai, includes Osaka, Kyoto, and Kobe and began operation. Electricity sold in fiscal 2000 amounted to has a population of 21 million, accounting for 16% of the 142,852 million kWh, accounting for 17% of the total nation’s total. power sold in Japan, or the second largest amount in Japan, Since its establishment, Kansai Electric has emphasized following the Tokyo Electric Power Co., Inc. the development of power sources to meet electricity ■ System capacity (As of End of Fiscal Year) Fossil fuel Nuclear Hydro 1998 19,921 9,768 8,087 37,776 MW （53％） （26％） （21％） 1999 19,921 9,768 8,107 37,796 MW （53％） （26％） （21％） 2000 19,561 9,768 8,129 37,458 MW （52％） （26％） （22％） 010,000 20,000 30,000 40,000 (MW) ■ Percentage of Total Volume of Electricity Produced (figure includes amount produced by other companies as well) Amount of (Fiscal Year) electricity purchased Nuclear Fossil fuel Hydro from other companies 72,091 42,993 16,177 21,311 1998 152,572 million kWh （47％） （28％） （11％） （14％） 1999 70,388 45,306 13,880 24,138 153,712 million kWh （46％） （29％） （9％） （16％） 70,036 41,141 14,426 30,215 2000 155,818 million kWh （45％） （27％） （9％） （19％） 050,000 100,000 150,000（million kWh） To give a clear picture of the amount of electricity generated and supplied, we have also included the amount of electricity purchased from other companies. These figures show the amount of electricity delivered to customers, including the amount of electricity generated by Kanden as well as that supplied by other companies. (See page 21) Moreover, the ratio of nuclear power within the total amount of electricity produced by this company (total amount of nuclear, fossil fuel and hydroelectric generated electrical power produced by this company, excluding amounts given above for other companies) exceeds 50% each year. 3 ■ Number of Employees ■ Volume of Sales ■ Annual power sales (As of End of Fiscal Year) (Fiscal Year) (Fiscal Year) 1998 26,333 1998 ¥2,535 billion 1998 138,818 million kWh 1999 26,248 1999 ¥2,517 billion 1999 140,403 million kWh 2000 25,988 2000 ¥2,582 billion 2000 142,852 million kWh 0 10,000 20,000 30,000 010,000 20,000 30,000 (¥ billion) 0 100,000 200,000 (million kWh) ■ Service areas of Japan’s ten electric power companies Okinawa Hokkaido Tohoku Hokuriku Chugoku Kansai Kyushu Tokyo Chubu Shikoku 4 ■ Outline of Japan’s ten major power companies (as of March 31, 2001) Maximum Annual revenue System capacity (MW) Capital Number of power Annual from power Number of customers demand power sales sales employees Hydro Fossil Nuclear Total (billions of yen) (thousands) (MW) (millions of kWh) (billions of yen) Hokkaido Electric Power Co. 114 3,760 5,255 29,111 529 6,381 1,278 3,450 1,158 5,936 Tohoku Electric Power Co. 251 7,522 14,700 74,514 1,320 14,011 2,442 11,206 1,349 15,220 Tokyo Electric Power Co. 676 26,669 59,240 280,651 5,086 41,403 8,508 33,023 17,308 58,843 Chubu Electric Power Co. 375 10,023 26,364 123,037 2,143 18,851 5,213 22,941 3,617 31,771 Hokuriku Electric Power Co. 118 1,960 5,482 25,692 418 5,499 1,806 4,562 540 6,909 Kansai Electric Power Co. 489 12,768 31,060 142,852 2,526 25,988 8,129 19,561 9,768 37,458 Chugoku Electric Power Co. 186 5,109 11,293 54,503 918 11,250 2,893 8,015 1,280 10,908 Shikoku Electric Power Co. 146 2,834 5,613 25,686 463 6,642 1,124 3,730 2,022 6,876 Kyushu Electric Power Co. 237 8,055 16,284 75,251 1,348 14,348 2,371 11,130 5,258 18,966 Okinawa Electric Power Co. 8 746 1,412 6,626 132 1,558 0 1,456 0 1,456 Total 2,600 79,446 176,703 837,923 14,883 145,931 33,764 119,074 42,300 194,343 ■ New Companies Established Since Year 2000 Our company’s goal is to establish an ‘all-round living infrastructure-related service group of companies.’ Therefore, as the Kansai Electric Group, we have concentrated our activities around the three core areas of the comprehensive energy business, information and communications and the daily life and community development business. We are constantly developing new areas of business through a total of 85 related companies (as currently, at the end of fiscal 2000). � List of Companies Outline of Business � Energy Business eL ENERGY CO., INC. (established May 17, 2000)� ■ Sales of LNG delivered by tank trunks (commenced April, 2001)� Comprehensive� (sales directly made by this company)� ■ Sales of LNG delivered by tank trunks (commenced December, 2000)� ■ Sales of gas delivered by pipeline (scheduled for commencement April, 2002)� SAKAI L.N.G. CO., INC. (established December 20, 2001)� ■ Sakai LNG Plant Construction, Operating Company� ■ Construction commencing January, 2002. Scheduled to commence operations in 2005� KANDEN GAS & COGENERATION CO., INC. (established April 2, 2001)� ■ Gas sales agent, design of optimum systems such as Cogeneration, energy diagnosis, guarantee of energy saving results, etc.� Communications Business ■ Leasing of optical fibers (commenced operations September, 2000)� Information and � K-OPTICOM CORPORATION (established June 1, 2000)� ■ Provision of high-speed, high-volume communications platform (commenced operations June, 2001)� ■ Data center business� ■ Provisions of content � KANSAI.COM,INC.