June 28, 2011

Monthly Press Conference

Today, President Kawai made monthly press conference in Aomori City and talked about the "Status of activities on emergency safety measures at the Reprocessing Plant," "Energy saving measures for this summer," and "FY2010 settlement of account" as summarized below.

"Status of activities on emergency safety measures at the Reprocessing Plant"

  • In view of the accident at Fukushima Daiichi Nuclear Power Station, our emergency safety measures for station blackout were evaluated as "appropriate" by the national government on June 15.
  • As to the instruction for the "actions similar to those for a severe accident at a nuclear power station," a report was also submitted on June 22 and the national government conducted an on-the-spot inspection on June 23.
  • What I think most important is to always check whether these measures can really be put into practice.
  • After the installation of motorized air-compressors to maintain the function of preventing hydrogen from piling up on the 7th of this month, about 120 operators have been trained to be able to connect the air-compressors and the air tanks with hoses, so that all shift personnel can start up the air-compressors.
  • The power supply training with power supply cars performed on April 21 and the flooding training with fire engines will be performed during the nighttime next month or at the latest in August. We are also thinking about conducting training during the harsh winter season.
  • Furthermore, we are thinking about adding station blackout to "Comprehensive Emergency Drill" which we conduct every year, anticipating a case in which multiple events should occur. We would like to conduct this training within this fiscal year, setting some themes, e.g. whether power supply cars can be connected promptly and whether internal and external communications can be performed appropriately.
  • In any case, our sensitivity toward safety needs to be improved by repeating training. We would like to carry out these activities, always keeping in mind that "there is no end to activities to ensure safety", in order to make the public feel safe as much as possible.
  • The emergency safety measures are presently discussed by the Aomori Prefecture's Nuclear Safety Measures Verification Committee (Prefectural Verification Committee). We would like to take appropriate actions based on their opinions.

"Energy saving measures for this summer at the Reprocessing Plant"

  • According to the national government's "Notice of the Energy Use Limit" based on the Electricity Business Act, the electrical energy used at the Reprocessing Plant will be limited to 44,200 kW. Since the supply and demand situation within Tohoku Electric Power Company's service area is very tight, we will set the Reprocessing Plant's daily energy-saving target at 42,000 kW.
  • Specifically, we will save energy to the extent possible by "shifting equipment inspections to summertime to reduce equipment operating power," "avoiding peak hours to operate cranes and other machines and equipment," and "adjusting air-conditioning systems within the offices, turning off lights in the daytime, and encouraging thinned-out elevator operation."
  • Although the energy saving target is hard to achieve, we would like to contribute to further energy saving if only a little, rather than just keeping the energy use limit.
  • The replacement of the A-train combiners that had been performed inside the vitrification cell was completed on June 10, waiting for the national government's inspection. The ongoing statutory inspection of safety steam boilers will be continued until the middle of August.

"FY2010 settlement of account"

  • "Sales" amounted to 308.2 billion yen, increase of 22.6 billion yen from the previous year. The main factor was that the operating cost increased as a result of last January's significant increase in the nuclear fuel material handling tax rate imposed on spent fuel and that an amount equivalent to such increased cost was factored into the spent fuel reprocessing fee.
  • "Sales Cost" was 263.2 billion yen, increase of 10.8 billion yen from the previous year. The main factor was an increase in the nuclear fuel material handling tax imposed on spent fuel (nuclear fuel tax) and in expenses for commission.
  • As a result, "Gross Profit on Sales" amounted to 44.9 billion yen. "Operating Profit" setting off "Selling and General Administrative Expenses" was 19.8 billion yen. "Ordinary Profit" reflecting "Nonoperating Profit and Loss" was 3.8 billion yen.
  • Since 3.4 billion yen of removal cost associated with equipment renewal was added to "Extraordinary Loss," moreover, "Current Term Net Profit" was 0.4 billion yen, which eventually allowed us to stay in the black.
  • Last September's 400 billion yen of capital increase significantly improved our financial strength, i.e. a capital adequacy ratio of 19.2%. Based on this strengthened financial foundation, we would like to steadily promote the nuclear fuel cycle business, including the reprocessing business.