csr report 2006 · 2020-03-08 · corporate profile corporate profile (as of end of march 2006)...

CSRReport2006

Chubu Electric Power Co., Inc.

2006 Chubu Electric Power CSR Report

C O N T E N T S

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2006 Chubu Electric Power CSR Report

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Management andEconomic Performance

EnvironmentalPerformance

Social Performance

Editorial Policy

This report describes our efforts to help achieve

a sustainable society, and the results of our initia-

tives. Since 1994, we had been publishing the

Chubu Electric Power Annual Environmental Re-

port. Starting this year, however, we are publish-

ing the CSR (Corporate Social Responsibility) Re-

port, with even more content describing our many

initiatives in the fields of management and

economy, the environment, and society.

Report Period

FY 2005 (From April 2005 to March 2006)

Date of Previous Report

June 2005 (2005 Annual Environmental Report)

Organizations Covered by This Report

As a rule, the performance of Chubu Electric

Power Co., Ltd. is reported on a non-consolidated

basis. In some instances, the performance of com-

panies in the Chubu Electric Power Group is re-

ported.

Guidelines Referenced

Sustainability Reporting Guidelines 2002 issued

by Global Reporting Initiative (GRI)

Environmental Reporting Guidelines (FY 2003

Version) issued by the Ministry of the Environment

Contacting Us

1 Toshin-cho, Higashi-ku, Nagoya,461-8680 JapanCSR Group,Corporate Planning & Strategy DivisionChubu Electric Power Co., Ltd.TEL: +81-52-973-2124FAX: +81-52-962-3015E-mail: [email protected]

About the Symbols in this Report

Page numbers for reference or related information

Links to detailed/related information on our Website or other sites

Editorial Policy

Corporate Profile

Group Companies

CSR Declaration

Message from the President

Highlights of FY 2005 Initiatives

People and Technology Initiatives for CSR

Leveraging technology to contribute to the environment

Contributing to society through communication

Providing satisfaction byhelping to make living environments more pleasant

Four Pillars of Management

Corporate Governance

Compliance

Stable Supply and Safety

Chubu Electric Power Group Environmental Declaration

Regime for Protecting the Global Environment

Action Plan

Business Activities and Environmental Impact

Environmental Accounting

Guideline 1: We will use resources effectively

Guideline 2: We will reduce our environmental load

Guideline 3: We will improve our levelof environmental management

Guideline 4: We will promote environment-relatedcommunication and enhance cooperationwith the community on a local and global level

Chubu Electric Environmental Forum

Communication with Our Stakeholders

Customers

Shareholders and Investors

Local Communities

Business Partners

Employees

External Feedback

Sustainable Management Rating

Stakeholder Dialogues

Consumer Life Advisors & Consultants

Third-party Views

Schematic Diagram of Chubu Electric Power System

Corporate Profile

Corporate Profile (as of end of March 2006)

CapitalTotal AssetsInterest-Bearing DebtNumber of Outstanding SharesNumber of ShareholdersService Area

Number of Customers (excluding certain high voltage customers)

Light Power TotalElectric Power SoldTotal operating revenues (Parent Only)Total operating revenues (Consolidated)Ordinary Income (Parent Only)Ordinary Income (Consolidated)Shareholders’ Equity RatioPower Generation Facilities Thermal Hydroelectric Nuclear TotalPower Transmission Facilities Transmission Line Route LengthTransforming Facilities Number of Substations Capacity

Linkage Station CapacityPower Distribution Facilities Distribution Line LengthNumber of Employees

*: For frequency conversion facilities (capacity: 100,000 kW), please refer to other pages

0

50

100

150

0

50

100

150

TWh

TWh

20012001 '02'02 '03'03 '04'04 FY '05FY '05

20012001 '02'02 '03'03 '04'04 FY '05FY '05

130.6

140.47%

10%11%4%

44%

25%

16%12%21%

20%

47%

3%9%

25%

48%

7%8%

4%

44%

23%

19%

7%

38%

25%

23%

137.9132.0130.2127.1

126.7122.2123.0120.9

Hydro

LNG

Coal

Nuclear

Oil

Electric Power Sales Trend

Breakdown of Generated Output by Source

Chubu Electric Power Co., Inc.1 Toshin-cho, Higashi-ku, Nagoya 461-8680, JapanPhone +81-52-951-8211PresidentEstablished

Toshio MitaMay 1, 1951

430.7 billion yen5,488 billion yen3,101.1 billion yen782,153,165347,9315 prefectures in the Chubu re-gion: Aichi, Gifu (excludingsome areas), Mie (excludingsome areas), Nagano, andShizuoka (all areas west of theFujigawa River)

8,962 thousand1,337 thousand10,299 thousand130.6 TWh

2,069.3 billion yen

2,150.5 billion yen

205.9 billion yen

219.6 billion yen28.0%

22.369 G W (11 locations)5.22 GW (182 locations)4.997 GW (1 location)32.586GW (194 locations)

12,149 km

935 locations120.110 million kVA300,000 kW*1 location300,000 kW

134,498 km16,245 people

Primary Business AreasElectric utility and related enterprisesGas supply, thermal storage brokerageDistributed generation systemsOverseas consulting & investmentReal estate management serviceIT businessEtc.

Service Area for Chubu Electric Power

HOKURIKU Electric Power Co.

The KANSAI Electric Power Co.

The CHUGOKUElectric Power Co.

SHIKOKU Electric Power Co.

KYUSHU Electric Power Co.The OKINAWAElectric Power Co.

TOKYO Electric Power Co.

TOHOKU Electric Power Co.

HOKKAIDO Electric Power Co.

CHUBU Electric Power Co.

Manufacturing

LogisticsService

Real Estate

Construction

Electricity and Energy Telecommunications

Chubu Electric PowerEiraku Development Co., Ltd.C-TECH CORPORATIONChubu Greenery Co., Ltd.Chubu Plant Service Co., Ltd.TOENEC CORPORATION

LNG Chubu CORPORATIONC ENERGY CO., INC.Chita L.N.G. Co., Ltd.S-energy service Co., Ltd.CJIA ENERGY SUPPLY COMPANY, LTD.Nagoya Energy Service Co., Ltd.Compañía de Generación Valladolid, S. de R.L. de C.V.Hamamatsu D.H.C. Co., Ltd.Hokuriku Erunesu Co., Ltd.A.T.Biopower Co., Ltd.

Chuden CTI Co.,Ltd.Chubu Telecommunications Co., Inc.Network Support Service Company, IncorporatedCHUBU CABLE NETWORK COMPANY,INCORPORATEDHamaoka Cable Television

GLYENCE Co., Ltd.COMRES CORPORATIONCHUBUSEIKI Co., Ltd.AICHI KINZOKU KOGYO Co., Ltd.AICHI ELECTRIC Co., Ltd.Chita Tansan CO., Ltd.Chubu Liquid Oxygen CO., Ltd.TOKAI CONCRETE INDUSTRIES Co., Ltd.

We are committed to creatinga sustainable society by makingthe best use of our technologyand expertise.

Chubu Electric Power Group

PresidentToshio Mita

ChairmanFumio Kawaguchi52 Group companies

Consolidated subsidiaries (32 companies)Affiliated companies subject to the Equity Method (20 companies)

EIRAKU AUTO SERVICE Co., Ltd.Chita Berth Co., Inc.Chuden Wing Co., Ltd.CHUDEN KOGYO Co., Ltd.CHUDEN BUSINESS SUPPORT Co., Ltd.Chuden Bldg. Co., Inc.Chuden Disaster Prevention Co., Ltd.Chuden Transportation Service Co., Ltd.CHUBU HOME WARANTEE CORPORATIONChubu Cryogenics Co., Ltd.Techno Chubu Co., Ltd.TOHO Industry Co., Ltd.

Toho Oil Co., Ltd.NITTAI Co., Ltd.LiveNet Co., Ltd.Kiray Yu Co., Inc.Chubu Electric Power Company International B.V.Chubu Electric Power (Thailand) Co., Ltd.Chubu Electric Power Company U.S.A. Inc.KASUMI BERTH CO., INC.SHIN-NIHON HELICOPTER Co., Ltd.NIPPON MALENIT CO., LTD.Compañía de Operación Valladolid, S. de R.L.de C.V de C.V.CHUBU Ratchaburi Electric Services Co., Ltd.

CSR DeclarationFulfilling our responsibilities and meeting society’s expectations.

CustomersWe are committed to providing our customers with safe, reliable, convenient,

and inexpensive energy services.

Shareholders and investorsWe are striving to maintain and increase profits for our shareholders and investors through efficient management and effective investment.

Local communitiesWe are determined to contribute to sustainable local development in partnership with local

communities.

Business PartnersWe promise to deal fairly with our suppliers as equal business partners.

EmployeesWe respect individuals, and are endeavoring to create a cheerful and motivating workplace.

General Management Policy

1. Recalling the origins of our business and creating a future of joint advances with our customers.……….Creating the future with our customers

2. Contributing to the global community as a good corporate citizen.……….Forming a part of the global community

3. Generating new vitality through commitment to the principle of self-responsibility……….Heading into the future with new energy

CSR DeclarationFulfilling our responsibilities and

meeting the expectations of society

Chubu Electric Power is committed to:Contributing to the development of a sustainable society

as a general energy service company by giving top priority to safety and strivingto both provide a stable supply of energy and protect the global environment;

　Managing our businesses in a fair and sincere manner

by observing laws, regulations, and social rules, and respecting corporate ethics; and　

Giving priority to dialogue with all our stakeholders andmaintaining high levels of transparency and openness in our business activities.

Formulation of our CSR Declaration

We have worked actively to fulfill our responsibilities as a good

corporate citizen through our initiatives to establish a compliance

system and resolve global environmental issues. We will continue

to fulfill our corporate social responsibility (CSR) by working in

good faith to meet the expectations of all our stakeholders, in-

cluding our customers, shareholders and investors, local commu-

nities, business partners, and employees; communicating our ini-

tiatives in a clear and easy-to-understand manner; and continually

improving them with the help of feedback from our stakeholders.

Although our CSR philosophy has already been incorporated

into our Basic Management Policy, we have formulated our CSR

Declaration – "Fulfilling our responsibilities and meeting society’s

expectations" – in order to create a more unified CSR message

within our company to further promote our initiatives, and to

communicate our message more clearly and concisely to our

stakeholders. We are determined to carry out this declaration

through our business activities.

1

Fifty-five years of community trustand our determination tomaintain this trust

On May 1, 2006, Chubu Electric Power proudly

marked the 55th anniversary of its founding.

Since then, we have worked tirelessly to reduce

costs and ensure a stable supply of energy, in or-

der to fulfill our mission as an energy supplier of

providing continuous and reliable access to inex-

pensive, high-quality energy services.

Japan's electricity business is currently in the

midst of great change. In April 2005, we began

new initiatives in response to the increasing com-

petition resulting from the liberalization of the

electric power services market, which has ex-

panded the scope of customers that are allowed

to select electric power providers to those using

at least 50 kW of power, such as small manufac-

turing plants and buildings. This liberalization has

increased competition in all energy markets in-

cluding gas market, breaking down barriers be-

tween industries and businesses.

Meanwhile, as public sector entity, our stake-

holders' interest in our corporate social responsi-

bility (CSR) has increased considerably.

2

Fulfilling our responsibilities and meeting society’s expectationsContributing toward a sustainable society

Constantly improving,while responding sincerelyto expectations

As a public utility company in the field of en-

ergy, CSR is not new to us: we have been com-

mitted to fulfilling our corporate social responsi-

bility since our founding. In order to communi-

cate our CSR philosophy in a clearer and more

effective manner, we have created our CSR Dec-

laration – Fulfilling our responsibilities and meet-

ing society’s expectations.

As stated in this declaration, we are committed

to meeting the expectations of each of our stake-

holders and pledge to constantly improving our-

selves through our business activities.

We are also determined to fulfill our responsi-

bility and accountability by disclosing informa-

tion about our actions. In addition, it is our belief

that avoiding complacency and constant self-

scrutiny by keeping our initiatives in the public

eye will eventually lead to further improvement.

Under these circumstances, we believe that, as

a general energy service company, we must offer

services that meet our customers' needs, fulfill

our corporate social responsibility, and increase

the level of trust we enjoy from local communi-

ties, in order to receive the support of our stake-

holders.

It is the understanding and cooperation of local

communities in particular that enables us to in-

stall our power plants and many other facilities,

and smoothly operate them. In order to respond

to the support of these communities, we must

have an unwavering commitment to safety. We

give top priority to ensuring safety during our

equipment operations and all other business ac-

tivities.

3

Preserving our irreplaceable earthfor our children

We consider resolving global environmental is-

sues to be one of the top priorities for the entire

Chubu Electric Power Group, and the entire

Group is united in its commitment to resolving

environmental issues. In keeping with this com-

mitment, in 2004 we issued the Chubu Electric

Power Group Environmental Declaration, stating

a common environmental philosophy and vision

for the Group.

We are particularly making efforts to combat

global warming. The entire group is not only

working to improve power-generation effi-

ciency, but is also partnering with our electricity

customers in initiatives such as proposing devices

with low environmental impact and ways to use

energy efficiently.

The 21st century has been called "the century

of the environment," and at Expo 2005 Aichi Ja-

pan, the first World Fair held in the new century,

we had the opportunity to reflect on the environ-

ment with the children who will be the major

players in the future. We were very successful in

increasing international awareness of the need

to protect the global environment for the next

generation. We are committed to carrying on the

spirit of Expo 2005 to do even more to fulfill our

CSR as a good corporate and global citizen.

Advancing into the future byresponding to stakeholder feedback

We had long published our Annual Environmen-tal Report; this year, we began publishing our CSRReport to provide expanded content, emphasizingour initiatives and achievements in sustainablegrowth that is in harmony with society.

We have built our company on a foundation ofsincerely responding to feedback from our stake-holders. It is our hope that this report will help uscommunicate with even more stakeholders, andimprove our CSR initiatives for the future. We con-tinue to value your feedback as we move forwardwith new initiatives.

4

Fulfilling our responsibilities and meeting society’s expectations

Toshio Mita

President

Contributing toward a sustainable society

5

Facility inspection at Kawagoe Thermal Power Station. Advanced technologies and human skills help ensure a stable supply of electricity.

2005 HighlightsPeople and Technology

Initiatives for

CSR

Highlights of FY 2005 Initiatives

We are active in a number of initiatives to fulfill our CSR,

including efforts to ensure a stable supply of energy,

protect the environment, and contribute to local development.

Here we present the highlights of our initiatives in FY 2005.

Highlight 1 – Leveraging technology to contribute to the environment

Highlight 2 – Contributing to society through communication

Highlight 3 – Providing satisfaction by helping to make living environments more pleasant

6

2005 Highlights

Developing a compact biomasspower-generator systemThe challenge ofcommercializingthe Stirling engine

Biomass is a resource of biological origin, such as lum-ber from tree thinning. It is gaining popularity as a newenergy source which when incinerated will not increaselevels of CO2 in the atmosphere. Until now, however,there have been a number of difficult technical chal-lenges to the use of biomass for power generation. Onesuch challenge was the need to gasify the fuel. Our at-tention was drawn to the Stirling engine as we searchedfor a way to create a compact power-generation systemthat could use biomass as-is, in its solid form.

While an ordinary internal combustion engine oper-ates by injecting gasoline or another fuel into a cylinderand combusting it, the Stirling engine is an externalcombustion engine: heating and cooling from an exter-nal source expands and contracts gas inside a sealed cyl-inder, which in turn drives a piston. The use of an exter-nal heating system makes it possible to use a wide rangeof heat sources, including biomass. Although the systemis theoretically capable of high heat efficiency, therehave been almost no successful commercial applicationsof this technology to date.

We have developed a high-efficiency, small-scale power generation system based on directinjection and combustion of biomass using theStirling engine, and are currently conductingtesting aimed at commercial applications. We arecurrently testing sawdust as a fuel for the system,in a joint research project with the New Energyand Industrial Technology Development Organi-zation (NEDO). We are highly confident that if wecan develop a commercially viable application forthis system, we can help reduce CO2 emissionsthrough its use as a small-scale distributed powersystem fueled by wood biomass.

Norio OoiwaEnergy Engineering GroupElectric PowerResearch & Development Center

The Stirling engine I am researching uses an externalheating technology, which makes it possible to generateelectricity using heat from such sources as the sun, andincinerated waste and biomass. Until now, it was difficultto utilize waste heat, but this technology enables us to cap-ture waste heat as electricity. I will continue to work oncommercial applications for highly energy-efficient elec-tricity technologies that are friendly to the global environ-ment.

Active commitment to developingenvironmental technologies

Research and development is a key tool for resolving man-

agement challenges. To further promote our R&D initiatives,

we select strategic topics for R&D from a holistic perspective.

The environment is a major focus in the field of stable

electricity supply. In addition to research into such topics as

improving efficiency, reducing loss, and reducing CO2 emis-

sions, we also leverage the technical capabilities of all Group

companies in a wide range of efforts to develop solutions to

global environmental issues.

Visitors are fascinated by the Stirling engine(Techno Fair 2005)

Biomasspulverizer

Biomasspulverization

plant

Treatmentcapacity2-3t/day

Wood biomass

Supply ofpower

Supply ofthermal energy

Biomass direct combustion system

Stack

High-temperatureair preheater

Heat exchangerfor waste heat

recovery

Biomass

Biomassdirect combustion

burner

Stirling enginegenerator

(50-kW class)

Blower

High-efficiency small-scale power generation system based ondirect injection and combustion of biomass

Highlights of FY 2005 Initiatives 1

Leveraging technology to contribute to the environment

7

Developing the Eco Cute instantaneousdirect-heating systemSuccessfullyreducing size ofheat-on-demand water boiler

The Eco Cute is more energy efficient and economi-cal than gas water heaters, and is gaining popularity asa water heater with low CO2 emissions. ConventionalEco Cute systems require space for a hot-water storagetank, because they heat water during the nighttimehours when electricity is cheapest, and store it for usethroughout the day. Our goal in this project was todevelop an instantaneous direct-heating version of EcoCute that would heat water on demand, in order toreduce the amount of space required by the system.Increasing the heating power of the heat pump anddeveloping a technology to control it in accordancewith usage conditions made further space efficiencyand miniaturization possible, enabling us to develop aspace-efficient tank. We jointly developed this productwith the Kansai Electric Power Co., Inc., and HitachiAppliance, Inc. It won the Chairman's Grand Prize forEnergy Conservation of The Energy Conservation Cen-ter, Japan (ECCJ) for FY 2005.

Winning 2006 Aichi Environmental Prize

In February 2006, wewon the 2006 Aichi Envi-ronmental Prize in recogni-tion of our efforts towardenvironmentally-consciouselectricity supply and envi-ronmental conservation.Organized by Aichi Prefec-ture, the prize rewardscompanies, foundations,and other groups whohave made pioneering andeffective efforts to reduce environmental impact. We won this year'sGrand Prize for our efforts to deliver world-class environmentally harmoni-ous electricity supply and promote environmentalism.

Receiving award from Masaaki Kanda,governor of Aichi (right)

Showcasing the Eco Cute instanta-neous direct-heating system to cus-tomers (Techno Fair 2005)

Mari MiyataCustomer Technology GroupEnergy ApplicationsResearch & Development Center

My job is to develop more efficient and compact homewater-heating systems. In cooperation with our sales team,we have researched how people are using their water heat-ers in order to design systems that match our customers’lifestyles and are easier to use. I feel great satisfaction in mywork because I am helping make people's living environ-ments more comfortable, while developing products withoutstanding environmental features. My ultimate goal is todevelop an ultra-compact wall-hanging water heater thatwill supply all the hot water you could want.

2005 HighlightsHighlights of FY 2005 Initiatives 2

Contributing to society through communication

8

Carrying on the spirit of Expo 2005 Aichi Japan

We are actively carrying out environmental efforts in part-

nership with local communities and society.

In FY 2005, we set up many venues for communication

through Expo 2005 Aichi Japan, which was focused on the

global environment.

We made special efforts to create opportunities to discuss

environmental and energy issues with the young people

who will play a key role in the future.

We are committed to carrying on the spirit of Expo 2005 to

protect the global environmental through communication

with our stakeholders.

Discussing the environment and energywith elementary-school childrenEPOC Eco-Talk Session

The EPOC Eco-Talk Session was held at the Expo2005 Aichi Japan venue from June to July 2005. Orga-nized by the Environmental Partnership OrganizingClub (EPOC)*1, this event brought together about2,650 students from 26 elementary schools in Aichiprefecture to discuss the environment with the topmanagement of 12 private-sector companies, includ-ing the president of our company.

The EPOC Eco-Talk Sessionwas very worthwhile

Masanori HashimotoElementary schoolteacherSeto Municipal Dohsen Elementary School

There are limits to the amount of specialized learningmaterials that the school can provide. That is why ChubuElectric's "traveling classroom" is a great help; its employ-ees provide equipment for experiments, and speak on thesubject as experts.

The information in textbooks and other sources tends tobe superficial. Experiments generating electricity and toursof actual facilities create new discoveries and surprises.

As our children prepared to give presentations on whatthey had learned to a large audience at the Eco-Talk Ses-sion, Chubu Electric's support was very valuable because ithelped us dig deeper into our topics. I am looking forwardto more opportunities for partnerships between schoolsand companies.

In the part led by Chubu Electric Power, elementary-school children acted in plays and sang songs aboutways that everybody can help the environment andother topics, gave presentations using computer im-ages and other tools, and communicated environmen-tal messages.

Before this event, we provided learning opportuni-ties to about 240 elementary-school children in orderto deepen their understanding, including a travelingclassroom*2 and a tour of a power plant. These effortstied into presentations on the importance of energyresources and new energy, and created a commonawareness among the participants. In order to con-tinue to take advantage of this invaluable effort, weare planning to independently organize talk sessions

between local elemen-tary-school children andour directors starting in FY2006.

*1: The Environmental Partnership Or-ganizing Club (EPOC) is an organizationpromoting environmental awareness es-tablished in February 2000 by ChubuElectric Power and 13 other local compa-nies (as of end-FY 2005, it has 314 cor-porate members). Its activities includeforums and social events.*2: Traveling classroom: We have along-standing "traveling classroom"program. Under this program, our em-ployees visit elementary schools, juniorhigh schools, and others at their requestto hold environment and energy classes,where students learn about such topicsas energy resources and global warm-ing, and electricity laboratory classes,where experiments are conducted usingelectricity from situations familiar to thestudents. We also work actively to createother opportunities to deepen interest inenvironmental and energy issues, includ-ing tours of our power plants and otherfacilities.

Elementary-school children give inventive presentationson the environment at EPOC Eco-Talk Session

9

Children's World Summitfor the Environmentand Field Tour in Gujo

In July 2005, the Children's World Summit for theEnvironment 2005 was held at the Expo 2005 AichiJapan venues and elsewhere. Advocated by the UnitedNations Environment Program (UNEP), this event hasbeen held around the world. This was the first time thesummit was held in Asia. About 480 children from 55countries around the world gathered for the summit,where they studied and exchanged views on the envi-ronment. As a result of their efforts, the children an-nounced their own Aichi Declaration directed world-wide. Since our company's president chaired the ex-ecutive committee, we were actively involved in andassisted the event in order to make this local summit asuccess.

After the summit, 27 children from four countrieswho had participated in the summit were invited to thecity of Gujo, in Gifu Prefecture, for an event named"Field Tour in Gujo." In collaboration with the GujoCity Executive Committee, the children joined in a so-cial gathering with local residents, and participated inevents bringing them in contact with nature at ourUchigatani Forest. We were able to extend our circle ofcooperation to children from other countries throughthe experience of Japan's rich natural environment andculture.

Paving the wayfor future activities:Field Tour in Gujo

Jin IshikawaEnvironmental Planning &Administration GroupEnvironmental Affairs Department

Through this event, we were able to build a broad net-work with NPOs and other community members. Expo2005 Aichi Japan and the Children's World Summit for theEnvironment has increased interest in the environment,and I will work to tie this interest to future activities.

We have to valueour irreplaceable Earth

Smitha Ramakrishna

My name is Smitha Ramakrishna. I am a 14 year-old girlfrom Arizona, in the United States. The greenery in Gujotakes my breath away; it is in stark contrast with my hometown, which is in the desert.

I participated in the Children's World Summit for theEnvironment and Field Tour in Gujo because I want to be-come a leader in increasing local communities' awarenessof the environment. As soon as I get back from my trip toGujo, I plan to start visiting local elementary and juniorhigh schools to this end.

Tour participants enjoy nature in Uchigataniduring Field Tour in Gujo

Chubu Electric Power's exhibitionbooth at the Children's World Sum-mit for the Environment

Elementary students received in-struction in a traveling classroombefore participating in Eco-TalkSession

2005 Highlights

10

Highlights of FY 2005 Initiatives 3

Providing satisfaction byhelping to make living environments more pleasant

As our customers' lifestyles change, their needs also be-

come more diverse, including need for safety, convenience,

economic efficiency, and low environmental impact.

We believe that our customers can improve economic effi-

ciency as well as help prevent global warming by using more

highly efficient devices in their homes that use clean energy

without waste. Therefore, we offer solutions for a conve-

nient and safe lifestyle through electricity.

More customers are choosingall-electric homes250,000 homesin our service area are all-electric

An all-electric home uses electricity for all the home'sheating, cooling, kitchen, and hot-water devices, suchas IH cooking heater and Eco Cute water heater. All-electric homes provide an efficient, clean, and safe liv-ing environment. More and more customers are choos-ing all-electric homes because the E-life Plan (lights inthree-hour slots) and other fee plans can greatly reduce

lighting and heating costs. Over the past few years inparticular, these homes have been highly rated fortheir friendliness to seniors and the environment,which is increasing the number of customers who havebuilt new homes as well as remodeled existing homesto be all-electric. As of the end of April 2006, morethan 250,000 homes in our service area were all-elec-tric.

40

80

120

160

200

240

0'97 '98 '99 2000 '01 '02 '03 '04 FY'05 4/'06

256.5Thousands of homes

Numbers of all-electric homes(cumulative total in our service area)

11

Safety firstVery economical, too

A couple planning to build a new home(residents of Gifu City)

Wife: I'm using a combination-type cooking heater now,but I hadn't realized there had been so much progress. Itlooks like the heating power has improved; I bet this willmake cooking more enjoyable. I was relieved to learn howto clean and care for it. I'm thinking about going with an IHcooking heater in our new house.Husband: I had thought that an all-electric home was ex-pensive, but it's not as much as I expected. I learned thatwhen you take your electricity bills into account, all-electrichomes are very economical. Also, since my parents will beliving with us, safety is the most important consideration.I'm going to talk to our architect right away about plan-ning a new home that doesn't use any open flames and isalso friendly to the environment.

Our Gifu branch has an all-women sales teamnamed "Smile" that encourages home and kitchenbuilders to go all-electric. One of the strengths of thisteam is that all its members are homemakers, who ac-tually use all-electric appliances every day. The teamfully leverages this knowledge and experience to pro-pose solutions suiting each of our customer’s lifestyle.It also is engaged in a wide range of other activities,including planning for exhibitions at events and dem-onstrations at various occasions. In this section, we re-port on the activities of "Team Smile."

At event venuesAmazed by the heating power;convinced by the ease of cleaning

On this day, the team was to promote the IH cookingheater to customers in a newly opened showroom of ahome fixtures manufacturer.

All customers there were actually considering build-ing a new house or remodeling an existing one, andthe team had been nervous since morning. Many cus-tomers were current users of the IH cooking heater,and a large proportion of their questions dealt withhow to clean the top plate. A team member gave a tipthat cleanser cream and plastic wrap would get theplate sparkling, and the customers were delighted atthe prospect of maintaining a hygienic kitchen. Natu-rally, the team also pitched the product's economic ef-ficiency.

Incidentally, the demonstration on that day waspasta. The pot full of water came to a boil right away,and before you knew it, the pasta was ready. The cus-tomers were amazed at this. One woman commentedthat the heat was much more powerful than she ex-pected: "I bet you could cook with a wok on that aswell." On that day, the team successfully deepened theunderstanding of all-electric homes among customers.

Proposals by "Smile" – our all-women sales team

Members of the Smile team share their knowledge to create proposals that willbenefit their customers.

A showroom demonstration. It is vital to get people to actually see the products.

Comments from Team Smile

Our job is to communicate the benefits of all-electric homes toa wide range of people, from retailers to end-users. Althoughmembers of the team have different career histories, they allhave two things in common – they are all homemakers, and theycan talk about the benefits of all-electric homes from their ownexperiences. We love being able to help make our customers'lives more comfortable through our advice. When we recom-mend our products, we always focus on the fact that seeing isbelieving. We first get them to use the IH cooking heater andexperience it for themselves. Our team's motto is "we will dis-cover the real benefits of our products by ourselves."

2005 HighlightsHighlights of FY 2005 Initiatives 3

Providing satisfaction by helping to make living environments more pleasant

12

Proposals to homebuildersPersistent effort is vital with sales

Although demonstrations at events are a good op-portunity to hear what our customers have to say di-rectly, it is also vital to continually sell our products tohome and kitchen builders. On this day, we visited ahomebuilder that has a local exhibition site. We toldthem about a new program that allows customers us-ing the environmentally friendly Eco Cute to receivesubsidies from their city governments and other agen-cies. The homebuilder asked us to help out in an up-coming event, and we decided to propose a projectthat promotes all-electric homes.

Working to make more homes all-electric

The activities of “Team Smile” have expanded to in-clude seminars for junior sales representatives athomebuilders. This is because the team believes that bygetting these junior employees to experience all elec-tric, they will in turn increase our customer base.

Our other branches and offices are also engaged inthe types of proposal activities highlighted here. Weare committed to ensuring customer satisfaction bymaking people's lives more pleasant while contributingto the environment.

We recommendall-electric homesfrom our customers'perspectives

Yoichi NakanishiOffice managerGifu North OfficeMisawa Homes Tokai Co., Ltd.

In my sales area, the number of customerschoosing all-electric homes is skyrocketing. Thisincrease has been due to the customer seminarswe conduct jointly with Chubu Electric Power andthe all-electric lectures by “Team Smile" that hasbeen attended by all our sales staff.

We have learned two things: that customers arevery interested in all-electric homes; and how torecommend all-electric homes to such customers.The lectures by “Team Smile” are particularly valu-able because they are from the viewpoint of users.They have enabled us to give appropriate advice,including information that our customers want toknow and are not yet aware of.

A junior sales representative from a homebuilder also participatesin the hands-on learning at the seminar

All-electric makingcustomers' dreamscome true

Shunjiro FuruhamaOffice managerLegal Dept., Gifu Housing OfficeDaiwa House Industry Co., Ltd.

Recently, more and more customers havebeen building all-electric homes, and I sensethat interest is getting even higher. Not solong time ago, we had to promote all-electrichomes to our customers, but recently our

customers ask us such questions as "Could you explainabout the IH in detail?" and "Are all-electric homes reallymore economical?" I am attending Chubu Electric's semi-nars because I want to answer those questions appropri-ately. I really learned a lot from practical lectures given by“Team Smile”.

We have also added a Chubu Electric All Electric Plaza inour tour course. When customers are considering buildinga new home, IH demonstrations and the like turn theirvague thoughts of building a home into a concrete imageof a comfortable and safe home. It really is vital to experi-ence things first hand.

I hope to continue our collaboration with Chubu ElectricPower in helping to enrich our customers' lives through theprovision of safe and secure all-electric homes.

13

Management andEconomic Performance



Compliance


The 275-kV Kota Shin-Mikawa Line under construction (operation started May 2006)

Management and Economic Performance

14

As a total energy supplier based in theChubu region, we are committed to de-livering new value grounded in energy toour customers and achieving sustainedgrowth for our entire Group.

Toward this goal, we are acceleratingour initiatives to increase our corporatevalue under the four management pillarsstated above.

Management targets

Electricity sales target

Additional demand equivalent to 2.4 TWh by the end of fiscal 2007through promotion of all-electric energy systems and utilization ofelectricity for air conditioning, cooking, and industrial processes

Targets for the gas, LNG,and distributed generation businessesTotal sales of 45 billion yen in the gas, LNG, and distributed genera-tion businesses by fiscal 2010

Financial targetsAchievement of the following targets through Group synergy

*1: ROA = business profit (ordinary income + interest paid) / term-beginning and -end average total assets*2: Free cash flow =operating cash flow - investment cash flow


1. Business Activities Aimed at Satisfying Customers

2. Stable and Continuous Provision of Affordable and High-quality Energy Services

3. Sustained Growth through Higher Resiliency and Strategic Utilization of Business Resources

4. Positive Actions to Fulfill Our Corporate Social Responsibility


Item

Return on assets (ROA) *1

Ordinary income

Capital investment

Free cash flow *2

Non-consolidatedtargets

over 4.5%

over160 billion yen

less than170 billion yen

over350 billion yen

less than3 trillion yen

Consolidatedtargets

over 4.5%

over165 billion yen

less than200 billion yen

over360 billion yen

less than3.1 trillion yen

Balance ofinterest-bearing liabilities

Target year

Average ofthree yearsfrom FY2004to FY2006

At the end ofFY2006


15

Managem

ent and Economic Perform

ance

As a total energy service supplier, ourGroup aims to be the choice of our cus-tomers, contribute to the developmentof local communities, and help enrichour customers' lives, by offering a widerange of energy services that meet ourcustomers' demands.

In fiscal 2005, we set a new target:additional demand equivalent to 2.4TWh by the end of fiscal 2007 throughpromotion of all-electric energy systemsand utilization of electricity for air condi-tioning, cooking, and industrial pro-cesses. We are currently working toreach this goal ahead of schedule by en-hancing our services and actively propos-ing solutions, and quickly, accurately,and sincerely responding to our custom-ers' diverse needs.

Offering energy serviceschosen by our customers

Household sales activitiesAll-electric houses have many advan-

tages: they are hygienic, safe, comfort-able, and economical. We actively workto help make our customers' lives richerand more comfortable through all-elec-tric homes and other electricity solutions.

Business sales activitiesAs business partners, we offer the en-

ergy services best suited to each of ourcustomers, by responding to their spe-cific needs and combining electric powerwith gas and distributed energy.

Enhancing services andactively proposing solutionsthat meet diverse needs

Provision of solution services*1In coordination with other companies

in our Group, we are avidly developingtotal energy solution service for our di-verse clientele, including cost reduction,

Look! P10～12

Offering gas, LNG, anddistributed energy services

As environmental awareness in-creases, there is a shift underway in theenergy market from heavy oil to naturalgas. A market fusing gas and distributedenergy systems is also forming, as cus-tomers increasingly adopt gas cogenera-tion systems fueled by natural gas.

In order to meet our customers diverseneeds, we are rolling out a variety of en-ergy businesses, including: gas sales har-nessing the gas conduits around ourpower plants; LNG sales using tankertrucks; and distributed-energy servicessuch as installation, operation, and ad-ministration of our customers' in-house

generation systems. In fiscal 2005, ourtotal sales from these businesses wereapproximately 25 billion yen.

In July 2006, we established the En-ergy Division to provide comprehensiveservices meeting our customers' needs.In the future, we will offer even broaderand more sophisticated energy solu-tions.

increase in power supply quality, envi-ronmental measures, and energy facilitymanagement.

*1: advice and proposals for problem solving

Energy supply solutionsProposal of optimal energy systems

combining on-grid power sources, gas,and distributed generation

Chubu Electric Power Group

Cost reductionOptimization of energy facilities

to match the pattern of customer useReduction of total life cycle cost,

inclusive of all phases from constructionto maintenance

Energy facility managementProxy performance of facility operationand maintenance for power receiving

and transforming facilities and heat source systemsSupport for preparation

of optimal facility maintenance plans

Environmental measuresFuel conversion (from heavy oil to natural gas)

Consultation services for energy conservation and CO2 reductionProxy performance of energy management and planning

Increase in power qualityDesign to curtail damage to the minimum

in the event of an outageConsultation services for momentary voltage drop

Installation and operation servicesfor outage-free power sources

CustomersNeeds

ConsultationProposals

Business Activities Aimed at Satisfying Customers

Social Performance

Environmental Perform

ance

Management and Economic PerformanceFour Pillars of Management

16

Actively developinginternationalenergy businesses

We have developed overseas energybusinesses to effectively harness our ac-cumulated technical capabilities, people,and other management resources and togain new sources of revenue, while si-multaneously contributing to local com-munities and conservation of the globalenvironment, as well as maintaining andpreserving power technologies.

We consider the next five years untilfiscal 2010 as our period to developoverseas energy businesses. During thisperiod, we will aggressively developoverseas businesses based on the exper-tise and alliances we have built duringour past efforts, by making our busi-nesses more efficient while fully consid-ering risk management.

Future directionsfor business development

We will select business fields and ar-eas, and concentrate our management

Overseas consulting

Power generationproject

Environment-related(CDM/JI) project

Examples of Projects Underway or Completed

1,400MW

525MW

1,025MW

–

–

20MW

–

–

Project Capacity Overview

resources on the bestprojects, based on ourknowledge and perfor-mance to date, with a fo-cus on power generationbusinesses that can en-sure long-term, stablerevenues, and environ-ment-related businessesthat can ensure revenuesand help us gain CO2

emission rights.In our power-genera-

tion business, we will begin in the coun-tries where we already have an estab-lished track record – Thailand, Mexico,and Qatar – and roll out a phased expan-sion of businesses to their neighboringcountries. Meanwhile, in our environ-mental business, we will develop busi-nesses in countries that have ratified theKyoto Protocol and are actively seekingapproval for clean development mecha-nism (CDM) and joint implementation (JI)businesses*1.

In our consulting business, we will fo-cus on projects that can ensure rev-enues, while promising a synergistic ef-

fect with our domestic and internationalenergy businesses.

We are also committed to enhancingour operational regime. As an exampleof our initiatives in this area, in February2006 we opened an overseas office inthe Thai capital of Bangkok, with themain goals of investigating and uncover-ing new business opportunities, and sup-porting existing projects.

*1: CDM/JI business is a project to find, research, and launchclean development mechanism joint implementation op-portunities with the goal of gaining CO2 emission rights.

A rice-chaff-fueled power generation facility in Thailand

Overseas investm

ent

Joined the project in fiscal 2001. Construction begun in Feb. 2006.

Joined the project in fiscal 2003 in partnership with Mitsui & Co., Ltd. and others.Test operation underway as of Jun. 2006.

Joined the project in fiscal 2004. Partial operation begun in May 2006; full operationplanned for 2008.

Joined the project in fiscal 2004 in partnership with ITOCHU Corporation. To date,rights have been gained on three gas-powered thermal power plants.

Joined the project in fiscal 2002 in partnership with Mitsubishi Paper Mills Limitedand five other companies. Project continues to plant trees and purchase land.

Began our first biomass power-generation project in fiscal 2003, in Thailand. Opera-tion began in December 2005, in Phichit.

In fiscal 2003, joined a fund targeting investment in multiple small-scale projects,with a focus on ESCO businesses. Investments include a small-scale hydroelectricpower project in India and a cogeneration project in Thailand.

Consulting business, with a focus on electric power infrastructure in Asian nations,which have been highly praised by the Japan International Cooperation Agency(JICA), the World Bank, and others. To date, the business has generated an annualrevenue of about 400 million yen from more than 90 consulting contracts.

ThailandGas-powered thermalIPP project

MexicoGas-powered thermalIPP project

QatarPower generation/de-salinization projects

United StatesInvestment in existingIPP distribution project

AustraliaAdelaide afforestationproject

ThailandRice-chaff-fueled powergeneration project

AsiaEnvironmental fund


17

Stable and Continuous Provision of Affordableand High-quality Energy Services

In 2001, we set a target of reducingcosts by 20% under levels immediatelyprior to liberalization by fiscal 2005. Wehave succeeded in achieving this targetthrough a unified commitment to reduc-ing costs and streamlining managementacross the board, as well as by increasingefficiency when scrapping and buildingpower-generation facilities.

We will continue to use our ingenuityto reduce costs in our facility design, op-eration, and procurement, as well as inour business activities. We also continueto plan our facility architecture andmakeup over the medium and long termin order to ensure reliable access to en-ergy into the future, including creatingthe optimum power-source architecturewith full consideration for energy secu-rity and environmental conservation.

Higher efficiencyin facility design, operation,and procurement

Our capital investment peaked in fiscal1993, at 742.4 billion yen. Since then,we succeeded in reducing our capital in-vestment to 124.3 billion yen by fiscal2005, through measures such as carefulselection of investment targets. We con-tinue to work toward our goal of a three-year capital investment average of nomore than 170 billion yen on a non-con-solidated basis, and no more than 200billion yen on a consolidated basis, be-tween fiscal 2004 and 2006.

We are also committed to reducingour operation & maintenance costs andgeneral expenses, and reducing our fuelexpenses in order to increase our com-petitiveness in the power-generationfield.

Billion yen

20012001 '02'02 '03'03 '04'04 FY'05FY'05

127.9

219.3

267.8

346.8

0

100

200

300

400

500

124.3

Non-consolidated capital investmenttrends

Higher efficiencyin business operation

Achieving personnel targetsWe were among the first in the industry

to begin moving toward a leanerworkforce, and by the end of fiscal 2005we achieved our target of reducing ourworkforce to approximately 16,600 em-ployees. We have the highest power salesper employee (an indicator of productiv-ity) of any power company in Japan.

We will continue to streamline ourbusiness operations and maintain highlabor productivity.

8,037

6,766

'98 '99 2000 '01 '02 '03 '04 FY'05

MWh/person

Chubu Electric Power

9-company average

0

2,000

4,000

6,000

8,000

10,000

Trends in power sales per employee

Laying an 8-km undersea cable to Kamijima Island (Toba city,Mie Prefecture) in order to switch power supply from remote-island generator to power grid. The island began drawingpower from the power grid in June 2005.

Transferring telecommunicationsline-route facilities and relatedbusinesses

In January 2006, we transferred partof our telecommunications line-routingequipment and some related equipmentmaintenance and other operations, aswell as related businesses (core-wireleasing and FTTH) to Group companyChubu Telecommunication Co., Ltd.(CTC), integrating these civilities within asingle company, and thereby streamlin-ing the operations of the Group as awhole and effectively utilizing its man-agement resources.

Managem


anceSocial Perform

anceEnvironm

ental Performance


18

Against a backdrop of industrial activ-ity responding to the gradual recovery of

Initiatives to ensure futuresecure access to energy

Look! P24

the economy and rising popularity of all-electric homes, we expect a steady rise inthe demand for power in the Chubuarea.

In order to respond to this demand forpower, we have formulated our fiscal2006 power-supply plan with the fol-

Electric Power Supply Plan for FY2006

　

Sales plans

FY2004(actual)

1,267(1,254)

2,4432,545*1

(2,545*1)[2,624]

FY2005(actual)

1,306(1,286)

2,556(2,557)[2,634]

FY2006

1,270

2,580

[2,658]

FY2007

1,274

2,600

FY2008

1,285

2,622

FY2009

1,299

2,644

FY2010

1,313

2,666

FY2015

1,388

2,784

FY’04-FY’15annual

increase rate

0.8%(0.9%)

0.8%(0.8%)

Figures in parentheses are for levels after compensation for temperature.Figures in brackets are for levels at the generation end.*1: Maximum demand for July

Power sales(hundreds of GWh)

Maximum power(transmission end, tens of MW)

　

　

　

FY2005(actual)

2,556

2,849

293

11.5

FY2006

2,580

2,890

310

12.0

Maximum power supply and demand plan (transmission end)

FY2007

2,600

2,902

302

11.6

FY2008

2,622

2,912

290

11.1

FY2009

2,644

2,907

263

10.0

FY2010

2,666

2,901

235

8.8

FY2015

2,784

3,054

270

9.7

Major power facility plants

　

　

　

　

　

lowing three key targets: (1) Ensure astable supply; (2) Further streamline tooutperform our competitors; and (3)Work actively to protect the global envi-ronment

Nuclear power

Thermal power

Hydropower

New Energy (wind power)

Companyfacilities

Power fromother

companies

Nuclear power

Hydropower

Total

FY2007-2010

Shin-Nagoya No. 8 system:145.8(2008/4-10)

First Location:0.021(FY2010)

Three Locations:6.8(FY2008)

Kawakami:0.12(from FY2008)

152.741

FY2006 From FY2016

Joetsu No.2 system:118

118Total of FY2006-FY2015429.517

FY2011-FY2015

Joetsu No.1 system:118(2012/7-12)

Second Location:0.036(FY2011)

Oma:20.4/138.3(2012/3)Tsuruga:No.3 61.52/153.8(2014/3)Tsuruga:No.4 61.52/153.8(2015/3)

Tokuyama:15.3(FY2014)

276.7760

(Unit: tens of MW)

Maximum power(tens of MW)

Supply capability(tens of MW)

Supply reservecapability(tens of MW)

Supply reserve rate(%)



19

Trends in outstandinginterest-bearing debt andshareholders' equity ratio (consolidated)

%Billion yen

2001 '02 '03 '040

1,000

2,000

3,000

4,000

5,000

6,000

FY'050

5

10

15

20

25

3028.9

3,175

Balance of interest-bearing liabilities

Bala

nce

of in

tere

st-b

earin

g lia

bilit

ies

Shareholders' equity ratio

Shar

ehol

ders

' equ

ity ra

tio

Strategically re-allocatingour management resources

We are committed to achieving sus-tained growth by strategically re-allocat-ing the free cash flow generatedthrough our management efforts intoour key investment fields, such as ourcore business: energy. We will also cre-ate appropriately timed and formulatedstrategies to improve our financial posi-tion and return profits to our customersand shareholders.

Sustained Growth through Higher Resiliencyand Strategic Utilization of Business Resources

The money and capital markets arebecoming increasingly selective. In orderto satisfy our shareholders and providequality services to our customers on asteady basis, we must improve our rat-ings in these markets, and obtain financ-ing from them at a low cost.

In our bid to increase the combinedstrength of the Group as a whole in abusiness environment that is increasinglyharsh, we have set management targetsfor FY 2004-2006 on a consolidated aswell as non-consolidated basis. To meetthese targets and achieve continuedgrowth for the Group as a competitivetotal energy supplier, we are working toincrease our ratings in the money andcapital markets and increase our corpo-rate value by strategically focusing andreallocating our management resourcesinto our core energy business.

Strengtheningour bottom line

Increasing our earningand growth capabilities

Our efforts to bolster our sales, reducecosts, and streamline our operationshave resulted in a rise in our ordinary in-come at the Group level for the past sev-eral years, and our return on assets(ROA) also remains steady. Our free cashflow has also risen steadily for the pastseveral years. Note that although ourfree cash flow momentarily declined infiscal year 2005, this was due to specialcircumstances: the creation of an exter-nal reserve of 260 billion yen, in accor-dance with the enactment of the LawConcerning the Establishment and Man-agement of Reserves for Reprocessing ofSpent Fuel at Nuclear Power Plants.

Trends in ordinary income and ROA(consolidated)

%

Ord

inar

y in

com

e

Billion yen

2001 '02 '03 '040

50

100

150

200

250

FY'0500

1.0

2.0

3.0

4.0

5.0

6.05.5

219.6

Retu

rn o

n as

sets

Return on assets

Ordinary income

Trends in free cash flow (consolidated)

Billion yen

2001 '02 '03 '040

100

200

300

400

500

215.4

265.1

393.0

442.1

FY'05

166.4

*

Improving our financial positionWe are actively working to reduce our

interest-bearing debt, which has fallento about 3,175 billion yen as of the endof fiscal year 2005. Our shareholders'equity ratio has also been over 20%since the end of fiscal year 2002. At theend of fiscal year 2005, it was 28.9%.

Managem


ance

Note: Return on assets (ROA) = business profit (ordinary income+ interest paid) / term-beginning and -end average total assets

Note: The cash flow for fiscal year 2005 in green indicates theportion accounted for by our external reserve (260 billion yen)in accordance with a change in the nuclear-power back-endsystem.

Social Performance


ance


20

Rolling out and developingGroup businesses

We are a total energy supplier, withenergy as our core business, supplyingelectricity, gas, LNG, and distributed en-ergy. We also offer environmental, so-cial, and IT services in order to make ourcore business more competitive andprofitable, and improve our brand value.

Group management

Environmental and social services

Energy business(core)

IT business

　

Major cases of business development

Domain

IT

Outline

Consultation for home construction

Assessment and assurance of housing performance

Real estate business

Bathhouse operation

Employment promotion business

Production and sale of artificial zeolite

Production and sale of fungus (Pleurotus eryngii)

Services in portable community information provision ("poketchu!)

Data center business

Electronics authentication services

Reinforcementof the Group business structure

We are reorganizing the Group com-panies to intensify resources andstrengthen the management founda-tion. We intend to accelerate this reorga-nization to establish a more efficientstructure for the Group as a whole.

Initiatives to strengthen Group companies

Better supervision of Groupmanagement

In fiscal year 2005, in order to encour-age steady achievement of our consoli-dated targets, we established a Groupperformance evaluation scheme to ob-jectively and quantitatively evaluate lev-els of attainment of performance targetsat these companies, and clearly define

management responsibility.We are also trying to increase the effi-

cacy of management supervision by dis-cussing target attainment measures dur-ing the strategic Group conference at-tended by executives from Chubu Elec-tric Power and the Group companies.

"commuf@" optical fiber Internet

In November 2002, we began offering our“commuf@” service in the city of Nagoya.“commuf@” is an FTTH that leverages ouroptical-fiber cables to provide high-speedInternet connections of up to 100 Mbps.

In January 2006, we transferred our FTTHbusiness to group company Chubu Telecom-munication Co., Ltd. (CTC) in order to focusthe management resources of our telecom-munications business and accelerate theirstrategic utilization. Our goal is to roll out anew group telecommunications business. As

part of this plan, in January 2006 we ex-panded our service area from Nagoya to in-clude the Aichi-prefecture cit ies ofIchinomiya, Kasugai, and Nisshin, and theGifu-prefecture city of Gifu. We plan to suc-cessively expand our coverage to include themajor cities of the Tokai region.

We are actively expanding this business inorder to make our service available to morecustomers. We aim to achieve a cumulativetotal of 90,000 subscriptions by the end offiscal year 2006.

T O P I C S 2 0 0 5

Environmentaland social services

October 2001

December 2001

October 2002

October 2003

October 2003

January 2006

January 2006

Establishment of the new Chubu Precision Machinery Co., Ltd. through combination ofChubu Keiki Kogyo and the former Chubu Precision Machinery

Establishment of the new firm Chubu Cable Network Company Inc. through consolidationof Kasugai Komaki Communication Television, the CC Net Department of C-TECH Corpo-ration, and Tomei Cable Television

Establishment of the new firm Chuden Bldg. through combination of the former ChudenBldg. and Uspac

Establishment of the new firm Chuden CTI Co., Ltd. through amalgamation of CTI andChuden Computer Service Co., Ltd.

Reorganization of Chuden Engineering and Sales Service Shizuoka Co., Ltd. and ChudenEngineering and Sales Service Nagano Co., Ltd.

Establishment of the new firm Chuden Transportation Service Co., Ltd. through combina-tion of Eiraku Transportation Co., Ltd. and Oigawa Transportation Co., Ltd.

Transfer of our telecommunications line-route facilities and FTTH business to Chubu Tele-communication Co., Ltd. (CTC).



21

In July 2005, we established a CSRGroup in our Management Strategy Divi-sion in order to further enhance our CSRinitiatives. Then in September 2005, wecreated a CSR Council consisting of themanagers of each of our divisions. Thecouncil selects and prioritizes CSR topics

Enhancing our CSR practices

Executive CSR Seminar raises awareness withtop management

In December 2005, we held an Executive CSR Seminar forabout 300 of our high-level managers, including managementexecutives and the top management from our Group companies.We invited Toshihiko Goto, chair of the Environmental AuditingResearch Group, to serve as lecturer. Mr. Goto's presentation cov-ered the state of CSR in Japan and internationally, and what soci-ety demands from companies. Mr. Goto's clear explanations ofCSR increased the participants' understanding. Notable com-ments included "For society, CSR represents what it expects ofcompanies. For companies, it represents society's trust." and"corporate decision making is CSR."

T O P I C S 2 0 0 5

Positive Actions to Fulfill Our Corporate Social Responsibility

Toshihiko Goto speaks at the Executive CSR Seminar

for management, and tracks and sharesthe progress of CSR policies in each divi-sion.

When implementing CSR, it is vitalthat we view and improve our actionsfrom an outsider's perspective. We mustlisten carefully to the feedback we re-ceive from our stakeholders, and periodi-cally identify issues with our initiativesthrough ratings and other objectiveevaluations by third-party organizations.The CSR Council's objective is to exam-

ine remedies to these issues, andproactively launch new initiatives in or-der to respond to our stakeholders' me-dium- to long-term expectations of ahigh level of excellence.

Rolling out CSR through PDCACSR Council

External communicationworking group

Topic-specificworking groups

CSR Council

CSR procurementworking group

Internal communicationworking group

Group-rollout examinationworking group

General conference

Board of executiveofficers

Board of directors

Managem


ance

Comparison with external evaluation standardsand monitoring

Spiral upthrough PDCA

Specific actions

Information Disclosure

Stakeholders

Improvements

Social Performance


ance



22

Reforming our Management Structureto Strengthen Corporate Governance*1

We identified fiscal year 2005 as the"Year of Management Reform" in orderto further streamline our management,with the goal of improving corporategovernance. After a general sharehold-ers' meeting in June 2005, we reducedthe number of directors on our boardand reformed our management struc-ture.

We are committed to further strength-ening our corporate governance, mak-ing fairness and transparency even morecentral to our management, with thegoal of earning the trust of our stake-holders in our management.

Reformingour management structure

Decrease in number ofdirectors on corporate board

We have decreased the number of di-rectors on our board in order to improveboard review, speed-up managementdecision making, and enhance theboard's supervisory functions The corpo-rate charter was revised to decrease thenumber of directors from no more than32 to no more than 20.

Introduction ofexecutive-officer system andtransfer of authority to divisiondirectors and general managers

We have introduced an executive of-ficer system and transferred significantauthority to division directors and gen-eral managers (executive officers), in or-der to separate management decision-making and supervision from execution,and speed-up business execution.

Shorter terms for directorsand introduction of directorretirement scheme

We have shortened the terms of direc-tors and executive officers to one yearand introduced a retirement scheme, inorder to clarify directors' managementresponsibilities and executive officers'executive responsibilities, and build amanagement structure capable of re-sponding instantly to changes in themanagement environment.

Clarification of procedures forappointing and determiningremuneration of directors,auditors, and executive officers

We have clarified that the president willpropose candidates for the board of di-rectors after discussion between all repre-sentative directors, in order to ensure thefairness and transparency of appoint-ments of directors, auditors, and execu-tive officers. Full-time auditors will alsoparticipate in discussions between all rep-resentative directors regarding the selec-tion of candidates for auditor, in order toenhance the independence of the board

Board of directors(No more than 20 members)

Decision-making and supervision

Vice-President(Representative director)

Managing directors & executive officers(Division directors & general managers)

Corporate directors & executive officers(Head office division directors, regional office directors, etc.)

Executive officers(Head office division directors, regional office directors, etc.)

Corporate ChairmanChairman of the Board(Representative director)

Internal auditors(3 members)

Outside auditors(4 members)

Board of auditors(7 members)

Advisory Board

Advice andproposals

Executiveofficers

Execution of businessin specific fields

or divisions

Line

of b

usin

ess e

xecu

tion

President(Representative director)

*Note: This structure separates specific decision making and supervision from executive management. In order to accomplish this, as arule the president and vice president do not make executive decisions regarding specific fields or divisions below the division-director orgeneral-manager level; instead, they focus on resolving management issues and supervising the executive actions of executive officers.

Main reforms to man-agement structure

of auditors. The same procedures will alsobe followed regarding remuneration ofdirectors and executive officers.

Creation of an advisory boardWe have created a Chubu Electric Ad-

visory Board. The board, which consistsof eight leading figures from differentsectors including academia, financial, la-bor, consumer, and the media, serves asan advisory body to the president, in or-der to reflect the advice and recommen-dations of outside experts and opinionleaders on issues related to Chubu Elec-tric Power and its Group companies.

*1: Corporate Governance: The design of the decision-makingsystem and organization, and creation and operation of asystem of checks, in order to ensure the appropriate andefficient management of the corporation

Diagram of our management structure

First meeting of the Advisory Board, held in November 2005


23

The establishment of compliance is es-sential for winning the trust of our cus-tomers and local communities. For thisreason, in December 2002 we created aCompliance Committee chaired by thepresident, which works to ensure thecompliance of Chubu Electric Power andthe Group as a whole.

We have created this CSR Declarationto publish our standards for fair and hon-est action in compliance with relevantlaws and norms, and with a focus oncorporate ethics, as our fundamental ap-proach to business operations.

Ensuring Compliance*1

Ensuring compliancein the Chubu Electric PowerGroup

In April 2003, we created the ChubuElectric Power Group Compliance Coun-cil (with 35 member companies). Thecouncil's mission is to ensure the compli-ance of Group companies.

In the past, we have supported theautonomous initiatives of our Groupcompanies, including sending instructorsto company training courses. In the fu-ture, we will extend and strengthen oursupport tailored to each company'sneeds.

*1: Compliance: Strict observance of all pertinent laws, regula-tions, in-house rules, and corporate ethical norms.

Compliance Manager (CM)

Compliance Chief Manager (CCM)Head office division directors and regional office directors

Chubu Electric Power Group Compliance Council

Group Corporations

Employees

Employees

Compliance Leader (CL)

ComplianceCommitteeComplianceCommitteeComplianceCommittee

Regional office division directors,front-line office managers, etc.

Section heads and group leadersof each workplace

Compliance Promotion System

The Eight Action Guidelines ofChubu Electric Power Co., Inc.Becoming a "good corporate citizen" that is highly trusted and has the support of society. Thorough ComplianceWe comply with the law, CEPCO's rules and corporate ethics.Fair and Sincere Corporate ActivitiesWe treat our customers, business partners and local communities fairly.Proper Information Management and DisclosureWe deal with information fairly, confidentially and accurately, and we disclose information required of CEPCO on time.Establishing a Sound Corporate CultureWe respect human rights and provide for a sound business culture.Maintaining a Good Relationship with the Government and AuthoritiesWe will take no actions that make people doubt our fairness in undertaking our business activities.Proper Management and Utilization of AssetsWe administer and use CEPCO's assets in a proper fashion.Environmental ConservationWe make efforts to minimize the environmental impact of CEPCO's operations.Assuring Safety, Hygiene and SecurityWe strive to maintain a safe and healthy work environment and ensure the security of CEPCO' plants and infrastructure.

Ensuring compliance atChubu Electric Power

We have created a company-widecompliance regime, and created suchbasic policies as the Chubu ElectricPower Declaration of Compliance andThe Eight Action Guidelines of ChubuElectric Power Co., Inc., in order to en-sure that each division and facility actsautonomously with the oversight of theCompliance Committee.

The committee's mission is to raiseawareness of compliance and ensurethat it is practiced. In order to accomplishthis mission, it carries out a wide range

of awareness-raisingactivities, includingdistributing collec-tions of compliancecase studies, provid-

Without compliance, there cannot be trust.Without trust, there cannot be growth.

Chubu Electric PowerDeclaration of Compliance

Compliance

ing case-method training to complianceleaders assigned to each workplace, andproviding e-learning to all employees.

Addit ional ly, start ing in f iscalyear2005, Compliance Chief Managers(CCMs), who are responsible for pro-moting compliance within their divisions,began circulating their thoughts on com-pliance to all employees in their divisions.

http://www.chuden.co.jp/torikumi/compliance/chuden/sengen.html

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Initiatives tooptimize the power mix

Accomplishing our duty as a publicutility to provide a stable supply of elec-tricity requires the systematic construc-tion and operation of not only powerstations but also a unified system oftransmission lines and substations. Wecontinue our construction, maintenance,and operation of facilities in a steady andefficient manner with the understandingand cooperation of our customers.

Safety is what makes these initiativespossible. We are fully committed to pro-viding our customers with safe access toelectricity, as well as ensuring the safetyof our supply, so that typhoons, earth-quakes, and other natural disasters donot cause electricity-related accidents ordisasters. We also believe that occupa-tional safety is extremely important, andare committed to preventing accidents

and creating an environment where allemployees and related personnel canwork safely. We recognize that safe op-eration is only possible when all equip-ment and facilities are backed up bythese safety initiatives. We fulfill our mis-sion of providing a safe supply of elec-tricity, by giving top priority to safety ini-tiatives.

Ensuring a Stable Supply of Electricity

In order to ensure that our customerscontinue to have reliable, uninterruptedaccess to high-quality energy servicesinto the future, we must develop ourown power facilities. It is also vital to se-cure an optimum power mix, thoroughlycomparing and contrasting a wide rangeof selections, including purchasingpower from sources developed by othercompanies and purchasing from thewholesale electric-power market, whileconsidering such aspects as efficiency,energy security, and environmental con-servation.

In accordance with this fundamentalphilosophy, we plan to develop morethan 4 GW of electric power over the 10-year period from fiscal 2006 to fiscal2015, including power from other com-panies. Look! P18

Active commitment tonuclear power

Nuclear power is a superb source ofelectricity in several respects, includingenergy security and conservation of theglobal environment. We are working totake greater advantage of each unit of

our Hamaoka Nuclear Power Station,with proper and timely inspections, re-pairs, and other maintenance. We arealso committed to increasing the propor-tion of our electricity derived fromnuclear power by actively utilizing powerfrom other nuclear power stations, andfacilitating the development of our ownnuclear power.

Building flawless powertransmission anddistribution equipment

We also implement well planned-outmeasures to reduce the number ofblackouts and brownouts due to ourpower transmission and distributionequipment, while reducing coststhrough the introduction of new tech-nologies and design streamlining, withconsideration for ensuring a stable sup-ply of power, economy, and environ-mental conservation.

World’s best supply of power

A quality supply of power is an indis-pensable aspect of a comfortable life,high levels of production technology,and the developing information society.

0

45

70

80

1520

40

60

80

100Min.

Chubu USAUKFrance

Source: Figures other than those for our company are from theFederation of Electric Power Companies of Japan. Figures forour company are for FY2004; France for 2001; and UK and USAfor 2003.Note: Average yearly hours of outage per customer for ourcompany in FY2004 was two minutes longer than the previousyear due to the impact of typhoons and other natural disasters.

Average yearly hours ofoutage per customer

Thus far, we have supplied high qual-ity electric power, stably and continu-ously, without voltage or frequency fluc-tuation by adjusting output to corre-spond with customer demand, under asystem integrating all processes frompower generation to distribution to ourcustomers. We have also strived to con-struct and maintain facilities so as tolessen occurrences of failure and outagedue to lightning and other natural disas-ters. As a result of these efforts, ourpower supply ranks at the top world-wide.


25

Disaster-resistantconfiguration

System networkingPower systems in our service area form

a web-like network consisting of thetransmission lines leading away frompower stations and other transmission

To make sure that our customers canuse our power with complete peace ofmind, we are working to achieve a highlydisaster-resistant facility configuration forthe entire energy supply process culmi-nating in the daily delivery of electricity.We have also established a disaster pre-vention system to ensure prompt resump-tion of supply in the event of disaster.

Our service area is at risk of the occur-rence of major earthquakes anticipated tostrike in the Tokai, Eastern Nankai, andNankai regions. We are making efforts toreinforce our disaster prevention mea-sures with a focus on earthquakes.

Safe facility configuration and operation

lines connecting them inloops. Even if disasters orother emergencies putsome transmission linesout of service, power canbe swiftly transmitted tocustomers by other con-necting routes.

Partnership withother electric powercompanies

Our power system isconnected with those ofpower companies in adja-cent areas. This enablesmutual supply support inthe event of shortages dueto disasters, for example.

24-hour monitoringsystem

Under a system of round-the-clockmonitoring, our Central Load Dispatch-ing Center and Load Dispatching Con-trol Center adjust generated output tocorrespond with power use by custom-ers, which changes every moment. Theyalso monitor and control the flow ofelectricity delivered to customersthrough transmission linesand substations.

In the event of an emer-gency , they make asmooth switchover oftransmission systems tokeep the scope and dura-tion of outages to theminimum.

Multiplexing ofpower facilities

Generally, our transmis-sion lines are composed ofat least two cables, andsubstations are installedwith two or more trans-formers. In this way, ourfacilities are multiplexed

for immediate supply of power throughreliable alternative facilities if the usualones are out of service due to failures.

Seismic measures forpower facilities

We implement seismic measures forpower facilities with consideration oftheir distinctive characteristics.

In the case of transmission towers, theburden imposed by typhoons or otherhigh winds is greater than that imposedby earthquakes. The towers are de-signed with sufficient strength to with-stand high winds, and therefore arestrong enough to weather seismic trem-ors as well.

When installing substations, we pre-pare designs according to the results ofin-depth studies of ground strength andthe earthquake resistance of componentequipment.

For the Hamaoka Nuclear Power Sta-tion, we have constructed many thickwalls in precise layouts and adoptedstructures with low centers of gravityand other features. This creates ex-tremely high stability. In addition, thefoundation is directly attached to bed-rock subject to few tremors.

Quality inspection of the transmission tower

We ensure proper operation of power facilities through periodic checks

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As the operators of the Hamaoka NuclearPower Station, which is located in the regionwhere the Tokai Earthquake is forecast to strike,we believe that ensuring the peace of mind ofthe local community is our most important task.Thus, when the national government consideredrevising its earthquake-tolerance guidelines, itspurred us to carry out a construction project toimprove the plant's seismic tolerance, in order toincrease the earthquake magnitude that theplant could withstand.

Seismic safety of the HamaokaNuclear Power Station

The safety of the Hamaoka Nuclear PowerStation has been assured even in the case of seis-mic motion (bedrock tremors) on the order of600 gals. It was equipped with this tolerancebased on the magnitude of the earthquake an-ticipated to occur in the Tokai region (8.0) andthe largest-ever earthquake in the region: theAnsei-Tokai Earthquake, which had a magnitudeof 8.4.

Perspectives on seismic safetyWe have always applied the latest knowledge

to ensure the safety of the Hamaoka NuclearPower Station in the event of earthquakes, and

work to improve its reliability. We confirmed theseismic safety of units 1 and 2, which were con-structed prior to the establishment of guidelinesfor earthquake resistance, and that of units 1 - 5using a seismic motion of 395 gals forecast forthe Tokai Earthquake by the Central Disaster Pre-vention Council in 2001.

Outline of constructionAware of the importance of giving the

Hamaoka Nuclear Power Station ample surplustolerance, we have set target values for earth-quake motion with adequate margin and areperforming the construction necessary to meetthem.

[Target values for earthquake motion]We are outfitting the Hamaoka Nuclear

Power Station with a tolerance of about 1,000gals. We arrived at this figure by building someleeway into the level of earthquake motion (bed-rock tremors) in the current standards (600 gals)to allow for short and long cycles, and then add-ing a margin of about 30% on top of that, inconsideration for the earthquake motion fore-cast for the Tokai Earthquake by the Central Di-saster Prevention Council. This is two to threetimes the estimate for the Tokai Earthquake

made by the Central Disaster Prevention Council(395 gals).

[Details]We will assess target earthquake motion for

critical facilities for seismic-tolerant design, andperform necessary construction to improve theseismic tolerance. Currently, the following con-struction is either under way or scheduled.• Modification of piping supports (unit 4)• Modification of power-conduit supports (unit

4)• Modification of rail guide for fuel replacement

(unit 4)• Modification of crane support materials for

ceiling of reactor building (unit 4)• Modification of oil tanks (unit 4)• Strengthening foundation behind retaining

wall (unit 4)• Strengthening foundation around piping ducts

(units 3-5)• Modification of exhaust stacks (units 3-5)

[Construction period]All construction on units 3-5 is scheduled for

completion in the second half of fiscal year2007. The construction on units 1-2 will be per-formed in conjunction with the replacement ofthe reactor-core shroud*2. Since we expect con-struction to begin later due to the need for de-signs for the improvement of outdoor facilitiesand the like, we have extended the shutdownperiod of units 1 and 2, originally scheduled tolast until March 2008, to March 2011.

Note: If, after deliberation, the national Nuclear Safety Com-mission revises the earthquake resistance guidelines, andconstruction beyond what is currently scheduled becomesnecessary, we will respond as necessary in accordance withthe guidelines.

*1: Seismic tolerance: The level of margin in earthquake re-sistance beyond the forecast earthquake strength

*2: Reactor-core shroud: A structure situated so as to enclosethe fuel assembly (reactor core) inside the reactor pres-sure vessel; it functions as a separator for the flow ofcooling water in the reactor.

Construction for increased seismic tolerance*1 at the Hamaoka Nuclear Power Station

*Response spectra are graphic indications of the vibration imparted to structures by seismic motion.

3,500

3,000

2,500

2,000

1,500

500

1,000

0

gals

0.02 0.05 0.1 0.2 0.5 1.0 2.0 5.0 sec.

Target seismic motion: about 1,000 gals

Standard seismic motioncurrently taken into account: 600 gals

Cycle

Seismic motion forecastby the Central Disaster Prevention Council

for the anticipated Tokai Earthquake: 395 gals

Surplus ofabout 30% overall

Resp

onse

acc

eler

atio

n Two-three times greater than the motionin the anticipated Tokai Earthquake

Comparison based on seismic motion response spectra

Maintaining power during heavy snowfall

From Dec. 2005 to Jan. 2006, locationsthroughout our region saw record-breakingsnowfalls. This heavy snow caused damage toour equipment, due to such causes as treesfalling under the weight of the snow.

Although most of the damage was concen-trated in the northern area of our Nagano

R E P O R T 2 0 0 5

branch, we were able to quickly recover fromblackouts thanks to support from other of-fices and Group companies, putting our fulleffort into removing falling trees, knockingsnow off of utility poles, and other measures.

Knocking snow off of utility poles at our Iiyama officeThe work was done with painstaking care for safety


27

Disaster managementsystem for early recovery

Disaster Management SystemWe issue three degrees of emergency

conditions depending on the situation,and set up an emergency disaster man-agement headquarters at each businesssite.

When an emergency is declared, pre-determined disaster management per-sonnel report to the company regardlessof the time or day of the week, to performtheir assigned duties.

If the “Tokai Earthquake Watch” or“Tokai Earthquake Warning” is issued,we will issue a company-wide earthquakewarning and set up the Earthquake Disas-ter Management Headquarters.

We will closely communicate with na-tional, local and public organizations, aswell as other private organizations, to col-laborate in the case of a disaster.

Measures for early recoveryOur group owns a helicopter that can

be used to gather information, as well asto transport materials, equipment andpersonnel.

We are also equipped with our owncommunications network which includesa radio communication systems and fiberoptic cables, in addition to a satellite com-munications network that connects majorbusiness sites and transmits informationbetween regional offices and disastermanagement headquarters.

During blackouts caused by disasters,we transmit electricity immediately to im-portant facilities, including hospitals andemergency shelters.

We are, in addition, promoting seismicmeasures for power stations, substations,and other buildings of vital importanceduring disasters so that they can performtheir proper function.

Disaster Measures

Issuance Standard for Emergency

Chubu Electric PowerEmergency Disaster Management

Headquarters(at company Headquarters)

Self-Defense Force

Fire Station

Ministry of Economy, Trade and IndustryBureau of Economy, Trade and Industry

OtherElectric Power Companies

Chubu Electric PowerEmergency Disaster

Management Headquarters(at each regional office)

Police

MeteorologicalObservatory

Mass Media

Other Organizations

National or PrefecturalDisaster Management

Headquarters

Conducting disaster drills

Although each employee has an as-signed role in case of emergency, weregularly conduct disaster drills undervarious scenarios so that every employ-ees recognizes his/her roles and acts rap-idly and precisely in an emergency.

Fire drill conducted by our own firefighters at the KawagoeThermal Power Station

Notifyingblackout information tocustomers

Emergency information on thecompany website

We try to provide blackout informa-tion rapidly through the mass media and

Electricity Safety Handbook

other means of communication. Wepost blackout information emergencynotices on our web page when a large-scale typhoon or other disaster causes ablackout over a wide area.

Electricity Safety Handbookhelps people use electricity safely

We have created an Electricity SafetyHandbook in order to help our custom-ers use electricity safely and conve-niently. The handbook outlines what todo in the case of a power outage, fire, ordisaster, ways to use electrical devicessafely and efficiently in our day-to-daylives, and more. We are distributing it toour general customers.

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A disaster is forecasted or is occurring

A significant disaster is forecasted or is occurring

A severe disaster is forecasted or is occurring

“Tokai Earthquake Watch” or“Tokai Earthquake Warning” is issued

Disaster ManagementHeadquarters

EmergencyDisaster ManagementHeadquarters

Earthquake Disastermanagement Headquarters

Conditions

Emergency Level 1

Emergency Level 2

Emergency Level 3

Earthquake DisasterManagement

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Group-wide safetyand well-being activities

The safety and health of our employ-ees are integral to our company’s suc-cess. Therefore, we are striving to createmore pleasant work environments.

Labor Safety

To promote the development of laborwelfare throughout the Group, we orga-nized a council on safety and well-beingamong Group companies and are takingvarious steps on this front.

Convened about four times a year, thecouncil allows close communicationamong the Group companies and worksto prevent accidents, disease, and injurythrough publicity and consciousness-raising activities about safety and well-being management.

Safety and well-being cam-paign policies

To promote comprehensive safety andwell-being, we convene an annual ad-hoc committee*1 to consult on and de-termine the direction of company-widesafety and well-being activities based onopinions from the regional offices andsupervisory units.

In accordance with the committeeguidelines, the regional offices formulatetheir own guidelines, and the locationsmake plans for implementation. Perfor-mance of the PDCA cycle on an annualbasis is linked to more effective mea-sures.

Company-wide safetyand well-being campaign policies(FY2006)

1. Safety1) Employees

Eradication of traffic accidents at intersec-tions

2) Outsourced workers (meter inspection)Eradication of falling and stumbling acci-dents

3) Contracted workersEradicat ion of acc idents due toinobservance of basic rules

2. Well-beingProvision of better mental care• Primary prevention (health enhancement

and prevention of disease development)• Secondary prevention (early detection and

early treatment of disease)• Tertiary prevention (promotion of swift re-

instatement of workers and prevention ofrecurrence of disease)

Steps to achievezero accidents

We have established in-house rules,guidelines, and schemes related to safetyand well-being, and are taking variousmeasures in line with them.

Driver’s license for operation ofcompany vehicle

In 1979, we instated an in-house sys-tem requiring employees to receive theprescribed training and obtain a licensein order to drive company vehicles. Afterlicensing, employees are given follow-upinstruction at regular intervals to rigor-ously manage driving safety.

Safe driving trainersAt each location, we have posted chief

safe driving trainers who have been spe-cially educated to provide such training.As the key persons for instruction in traf-fic safety in the location, they take vari-ous measures to prevent accidents.

Rigorous safety instruction forcontractors

To eradicate accidents among con-tractors, we hold ad-hoc conferencescomposed of the units in charge ofsafety and those handling the executionof necessary work. We prepare guide-lines to counsel contractors on accidentprevention, and furnish them with thor-ough safety instruction.

Frequency rate*1, Intensity rate*2

Promoting mental health

In fiscal year 2005, we continued to con-sider treatment of mental illnesses one ofour top priorities. Specifically, we imple-mented secondary prevention (early detec-tion and treatment) by having our indus-trial health staff visit workplaces, keepingtrack of information and responding asnecessary, and tertiary prevention that pro-vides support while employees are onmental-health leave and after they return.As a result, we were able to halt the rise inthe number of mental-health patients infiscal year 2005 (it had been continuouslyrising until then). In fiscal year 2006, wewill expand our measures to include pri-mary prevention (prevention of symp-toms), while firmly establishing secondaryand tertiary prevention.

*1: Frequency rate: An indicator of the number of deceasedand injured missing at least one day of work due to laboraccidents per million working hours; it expresses the fre-quency of accident occurrence.

*2: Intensity rate: An indicator of the number of labor days lostdue to labor accidents per thousand working hours; it ex-presses the relative seriousness of accidents.

*3: Preliminary figures: Nationwide figures are based on thecalendar year.

Figures for Chubu Electric Power for FY2005 increased year-on-year due to a fatal accident.

FY2004

FY2005

Frequency rate Intensity rate

0.18

0.27

1.85

1.95 *3

0.004

0.232

0.12

0.12 *3

ChubuElectricPower

ChubuElectricPower

NationwideNationwide

29

EnvironmentalPerformance

Chubu Electric Power GroupEnvironmental Declaration

Regime for Protectingthe Global Environment

Action Plan

Business Activitiesand Environmental Impact


Guideline 1: We will use resources effectively

Guideline 2: We will reduce our environmental load

Guideline 3: We will improve our level ofenvironmental management

Guideline 4: We will promote environment-related communicationand enhance cooperation

with the community on a local and global level

Chubu Electric Environmental Forum

The Uchigatani Forest stands on Chubu Electric property in the city of Gujo, Gifu Prefecture.This forest serves as the stage for forestry activities with civic involvement.

Environmental Performance

30

Society EnvironmentNatural resources

Environmental load

Cooperation

Offering a wide variety of energy-related products

and servicesChubu

Electric Power Group

Guideline 1

We will use resources effectively.

• We will work toward the development and practical application of renewable energy.• We will promote the efficient use of energy.

Guideline 4

We will promote environment-related communication

and enhance cooperation with the community

on a local and global level.

• We will improve interactive communication related

to the environment and energy.• We will cooperate

with people in a wide range of fields outside the conventional framework.

Guideline 3

We will improve our level of environmental management.

• We will clearly recognize the environmental impact of our operations and undertake

thorough environmentally conscious administration.• We will cultivate personnel capable

of independently taking actionon environmental concerns.

Environmental Vision　

We will promote global environmental conservation and contribute to the development of local communities capable

of sustainable growth.

Transforming ourselves into a corporate group that enables each member to share in the environmental culture

Guideline 2

We will reduce our environmental load.

　• We will proactively reduce emissions of CO2

and other greenhouse gases.• We will aim for zero emissions

and creation of a society dedicated to recycling.


31

Regime for Protecting the Global Environment

The Council was instituted in April1990 to actively respond to global envi-ronmental problems. It is chaired by theGeneral Manager of the Plant Siting andEnvironmental Affairs Division, and com-posed of the company’s various divisionmanagers. It engages in deliberation andcoordination of basic policies, action tar-gets, and specific measures related topreservation of the global environment.

The Council is engaged in activities re-lated to the ongoing improvement of en-vironmental measures through perfor-mance of the PDCA cycle. More specifi-cally, it rates the degree of attainment oftargets noted in the Action Plan. The Ac-tion Plan, which was formulated in April

Departments& Divisions

PowerGeneration

Division

CustomerService Offices

Nuclear Power Station

Suggestion / Opinion

Inspection & Reports

(In Charge)

Environmental MeasuresPromotion Council

Internal AuditDepartment

Thermal PowerStations

Field Maintenance Construction Office

EnvironmentalAffairs

Department

Chubu Electric’sEnvironmental ForumPresident

RegionalOffice

GroupCompanies

PlanActEducation

Enact Basic Policy & Action Objectives

Collaboration

Chubu Electric Power GroupEnvironmental Measures Committee

31st Environmental Measures Promotion Council

Environmental MeasuresPromotion Council

26th CEP Environmental Forum

The Forum was established in 1993with the view of raising the level of envi-ronmental management. Through it, ex-ternal experts furnish their opinions onour environmental measures directly toour president.

The Forum is generally held twice ayear. The appraisals, guidance, and ad-vice on the nature of our environmentalactivities are then reflected in our envi-ronmental measures.

Chubu Electric PowerEnvironmental Forum

We instituted the Committee in April2001 for the purpose of increasinggroup cohesion and reinforcing environ-mental measures among the membersof the Group. Besides providing a venuefor sharing information and opinions onenvironmental problems, the Committeepromotes environmental measures byconducting environmental awarenesstours and holding theme-specific studygroups.

Continuous Improvement

ActionSuggestions

for improvementsthe Counci

CheckEvaluation

of accomplishment the Council

DoImplementing

policies and action plansdivisions and departments

PlanDeciding on policies

and action plansthe Council

Chubu Electric Power GroupEnvironmental MeasuresCommittee

Global Environmental Measures Promotion SystemPDCA cycle

2004, contains concrete steps and timelimits, and ensures that divisions and de-partments check each other's approachesto prepare for the next fiscal year.

Look! P60

10th CEP Group Environmental Measures Committee

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*1: Facility utilization rate varies every year depending on whether or not periodical inspection is held. Inorder to eliminate this variance, the rate is calculated over a long period of time (averaged over 5 years).

*2: CO2 emission base unit is calculated per electricity consumed, while SOx and NOx emission base unitsare calculated per electricity generated.

*3: Reducing volume of waste sent to external landfills (including land filling after intermediate pro-cessing), including waste to landfill by contractors (waste generated due to work ordered by us)to less than 1% of volume of industrial waste and by-products.

*4: The 3 R's of waste: Reduce, Reuse, and Recycle

Action Plan Guideline 1-2

Action Objectives

Guideline Long-Term Goals <up to FY 2013>Transforming into a Corporation thatPromotes Environmentalism

Mid-Term Goals <up to FY 2008>Promoting an Environmental Culturein Chubu Electric Power


Promoting Implementation andDevelopment of Renewable Energy

Efficient Use ofEnergy


Promoting NuclearPower Generation*1

Improving ThermalEfficiency ofThermal Power Plants

Reducing Transmissionand Distribution Loss inElectricity

ReducingCO2 Emissions*2

Improving SF6 GasRecovery Rate

ReducingSOx Emissions*2

ReducingNOx Emissions*2

Reducing the Public’sEffective RadiationExposure

Promoting PCBTreatment

Promoting NatureConservationActivities

PromotingTree Planting

Proactive Reductionof Emissions of CO2and OtherGreenhouse Gas

Promotion ofEnvironmentalConservationMeasuresat Power Stations

ThoroughManagement ofChemical Substances

Expansion ofActivities thatTake into AccountNature

Aiming for Zero Emissions*3and a Sustainable Society

Reducing the Base Unit by 20% by FY2010#2 (compared with FY1990)

Maximizing the Safe Usage of Nuclear Power Generation Facilities (85% utilization rate) andPromoting Safe Nuclear Fuel Recycling◆ Implementing a plutonium thermal system (by 2010)

★ Maintaining a High Recovery Rate (over 99% at dismantlement, over 97% at inspection)

Achieving Japan’s Highest Level of Efficiency through Continuous Improvement(overall thermal efficiency of at least 41.9%)◆ Reducing electricity usage inside our power station, Setting up world-class facilities

★ Maintaining a Power Transmission/Distribution Loss Rate of Less than 5%

Promoting activities aiming forZero Emissions

Reducing External Landfill Waste by Decreasing Waste,and Increasing Recycling and Reuse

★Maintaining by far the best standard in the world

★Maintaining by far the best standard in the world

★ Maintaining a Level Less than 0.001 millisievert/year

Treatment All Devices Containing PCB

Deploying Nature Conservation Activities Relatedto Our Domestic and International Businesses◆ Planting trees at deserted coal mine

Promoting Comprehensive Treatment ofPole-Mounted Transformers Containing LowConcentrations of PCB

Actively Promoting Nature Conservation Activitiesaround Our Business Territory◆ Conserving Eco Park, forests owned by Chubu Electric

Power Co., Inc.

★ Giving Away 16,000 Saplings per Year

Promoting Implementation and Development of Renewable Energy#1

Ensuring the achievement of provisions in the Law on Special Measures for the Utilizationof New Energy etc. (RPS Law)target for introduction: 1,780 GWh by FY2010

◆ Increasing in-house wind power and small-hydropower generation output, Implementing a systemto generate power from untapped energy sources (biomass, etc.)

Particulars


33

P38

P39

P41

P41

P42

P44

P45

P47

P47

P48

P50P57

P50

#1: Change of target – promotion of implementation and development of renewable sources of energy: clarified target values#2: Change of target – Reduction of CO2 emissions: aiming at achieving long-term target only, since medium-term target (2005) has passed.

Achieved usage of 420 GWh through increased purchase of surplus wind power andother sources(wind, solar, biomass, waste, small-hydroelectric: developed in-house and purchased)Created plan to develop in-house wind power plantBegan Group-wide operation of wind power plant

Capacity utilization rate of 54.9% due to long-term shutdown of Hamaoka NuclearPower Station No. 1 and No. 2 units (FY2005: 63.1%)(68.9% for all 53 nuclear power station units in FY2004)

Despite efforts to operate plants efficiently, gross thermal efficiency was only 41.36%due to factors such as increased electricity demand during the winter months and thewater shortage (40.09% for all 10 power companies in FY2004)

Reduced to 4.66% through efficient operation of power distribution facilities (5.2%for all 10 power companies in FY2004)

Reduced base unit by only 2.4% from FY 1990 levels to 0.453 kg-CO2/kWh, due tofactors such as the long-term shutdown of Hamaoka Nuclear Power Station No. 1 andNo. 2 units, and reduced hydroelectric power generation caused by the water shortageMedium term target of 18% Reduction of Base Unit by 2005 (compared with 1990)not met

Achieved 99.6% at dismantlement and 99.2% at inspection through introduction ofcollection system and improved management technologies

Reduced external landfill volume by 1,000 tons from the previous fiscal year to 8,000tonsEffective reuse of coal ash through Circulash, LandPlus Z, etc.

0.04 g/kWh for all power sources0.06 g/kWh for thermal power stations(0.7-3.9 g/kWh in Western countries in 2002 and 0.2 g/kWh in Japan in FY2004)

0.06 g/kWh for all power sources0.09 g/kWh thermal power stations(0.6-2.0 g/kWh in Western countries in 2002 and 0.3 g/kWh in Japan in FY2004)

Less than 0.001 millisieverts/year through appropriate management of radioactive ma-terials(in the vicinity of Hamaoka Nuclear Power Station)

Treatment delayed due to problems with equipment that processes insulating oils withlow levels of PCBsStarted construction of facilities to treat pole-mounted transformer containers andparts, and created plans for treatment of PCB equipment with high levels of PCBs

Reduced volume of trees cleared during construction due to development of tech-nique to dismantle steel towers.Started full-scale operation of landscape simulationsTrained forest instructors and gave hands-on learning at Uchigatani Forest

Gave away 18,700 saplings (cumulative total of 288,600 since 1985)

Developing in-house wind-power stations in FY2008 (3 sites: 68 MW)Promoting initiatives to develop and introduce wind-power generators forbusiness use, small-hydroelectric generators, and the like, while achievingeconomic efficiency and a stable supply of electricity.Continuously and actively purchasing surpluses, and promoting the use ofrenewable energy

Further increasing the utilization rate of nuclear power generation facilities,while giving top priority to safetyPromoting recycling of nuclear fuel, in line with Japanese national policy

Preferentially operating highly efficient power stations, and reducing in-sta-tion energy usePromoting development of Shin-Nagoya No. 8 system (by FY2008) and JoetsuNo. 1 system (by FY2012)

Continuously maintaining high standards

Improving gross thermal efficiency through development of high-efficiencyLNG thermal generatorPromoting renewable-energy generation, including development of in-housewind power generatorsProcuring credits through use of Kyoto mechanisms


Further promote 3 R's*4 to reduce external landfill, while considering eco-nomic efficiencyExpanding sales channels for Circulash


Continuous and rigorous control

Ensuring treatment of insulating oils with low levels of PCBs, construction offacilities for disposing of pole-mounted transformer containers and parts, andtreatment of containers with high levels of PCBs

Continuously creating equipment setups that take into account nature andscenery Continuously implementing forest-conservation activities, with focuson the Uchigatani Forest

Continuously supporting development of greenery-rich communities

Managem


ance

Self-evaluation★: Maintenance/Management Goals◆: Examples of Actual Approaches

Level 5:attainment oflong-term goal

Level 4:attainment ofmedium-term goal

Level 3:attainment ofgoal for the fiscal year

Level 2:goal not yetattained

Level 1:need forimprovement

Results for FY 2005 Future Initiatives Seepage

Selfevaluation

Social Performance


ance


Action Plan Guideline 3-4

34

*1: Certification/registration and self-declaration based on ISO14001 for Chubu Electric Power Co., Inc. Group corporations include environmental Activity Evaluation Program.

Action Objectives

Guideline Long-Term Goals <up to FY 2013>Transforming into a Corporation thatPromotes Environmentalism

Mid-Term Goals <up to FY 2008>Promoting an Environmental Culturein Chubu Electric PowerParticulars


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

UndertakingThoroughEnvironmentalManagement byRecognizingthe EnvironmentalImpact ofOur Operations

ThoroughEnvironmentalManagement

PromotingGreen Procurement

Cultivation of Personnel Capable ofIndependently Taking Action onEnvironmental Concerns

Improving Interactive Communicationon Environment and Energy

Cooperating withPeople in a Diversityof Fields outside theConventionalFramework

Cooperation withthe Local Community

Cooperation withthe World

Forging a Bond of Trust to Foster Unity with Society◆ Cooperating with communities to address society’s

needs

Working with the Local Community to Create Ecologi-cal Towns◆ Cooperating with riverside areas through forest conser-

vation activities◆ Conducting consulting projects by utilizing our technol-

ogy and expertise, and cooperating in Eco Town Projects◆ Setting up environmental seminars for citizens

Bringing Together the Expertise of the Chubu ElectricPower Group to Pursue Global Environmental Conser-vation Activities around the World◆ Initiating international projects related to global environ-

mental conservation

Improving Open, Interactive Communication◆ Promoting active information disclosure, including by

Group corporations◆ Modifying the environmental report to also include social

issues◆ Holding a wide range of meetings to exchange opinions,

including “Stakeholder Meetings”◆ Giving tours of our workplace and facilities

Conducting Activities with Diverse Groups of Peoplethrough New Collaborative Organizations◆ Establishing new collaborative organizations and carryingout forest conservation activities in cooperation with NPOsand other groups◆ Improving children’s environmental education◆ Actively promoting an ecological lifestyle including effi-cient energy use◆ Actively promote Chubu Electric Group Power technologythrough consulting business

Contributing to Increasing Environmental Conserva-tion in Other Countries Using Chubu Electric PowerGroup Technology◆ Executing projects aimed at CO2 reduction in developing

nations (CDM)◆ Supporting methane gas recovery and use in power gen-

eration◆ Supporting technological development of biomass-based

power generation

Achieving a 100% EMS Implementation Rate*1 in theChubu Electric Power Group◆ Expanding group-wide environmental management ac-

tivities◆ Implementing more effective and efficient EMS◆ Establishing an in-house environmental accounting sys-

tem and environmental indicators that contribute to envi-ronmental management

Promoting Green Procurement◆ Achieving a 100% green procurement rate for office sup-

plies◆ Establishing environmental evaluation standards for mate-

rials and equipment◆ Promoting green procurement among Group corpora-

tions

Promoting an Environmentally Conscious Businessand Lifestyle◆ Promoting environmentally conscious business activities

and training volunteer leaders◆ Improving environmental education at Group corpora-

tions◆ Promoting environmentally-friendly lifestyles among em-

ployees

Promoting Environmental Management System (EMS)among Chubu Electric Power Group Corporations◆ Utilizing EMS among Chubu Electric Power Group Cor-

porations

Promoting Environmentally Friendly Products in Soci-ety through Green Procurement Cooperation◆ Collaborating with other corporations to establish com-

mon indices

Cultivating Personnel Capable of Independently Tak-ing Action on Environmental Concerns within the Lo-cal Community◆ Training “Environmental Counselors” to act as leaders

that actively pursue environmental activities at home andin the community

◆ Establishing a Forestry Volunteer Activity System


35

P30P31P51

P52

P21P53

P8P21P56P75

P8P56P68

P8P59

Applied Redesigned EMS to all branches, and achieved 97% EMS introduction rateFive of our Group corporations (36) have newly created environmental policies (total 33companies), and five have designed EMS (total 14 companies; introduction rate 39%)Created ECONP as Group-wide environmental logo

Achieved 94% green-procurement ratio for office suppliesBegan environmental evaluation for equipment and materials, and published greenprocurement guideline

Held Executive CSR Seminar for managers in the Chubu Electric GroupCumulative total of 1,920 have experience as environmental trainers, and 97% havetaken e-learning coursesImplemented Chubu Eco Point Program in order to encourage employee volunteeringDistributed environmental learning materials to Group companies and held workshops

Established CSR regime and prepared to publish CSR ReportHeld "backyard tours" to gain understanding through observation of business activitiesHelped run Wonder Circus – Electric Power Pavilion at Expo 2005 Aichi Japan as amember of the Federation of Electric Power Companies of Japan (3,740,000 visitors tovenue)Held Family Eco Map Contest

Carried out forest program with civic involvement called “Invitation to the Forest”Provided participants in Children's World Summit for the Environment with opportuni-ties to experience Japan's culture and natureTaught 687 traveling classrooms, and gave 240 tours of workplaces and facilitiesPopularized Eco Cute (contracts for approx. 39,000 units; cumulative total approx.94,000)Gave Backyard Tours and held Eco-Talk SessionGroup companies promoted environmental and energy conservation through ESCOproject

Started operation of rice-hull power plant in Thailand (20,000 kW)Contributed to global efforts to combat global warming through the World Bank'sPrototype Carbon Fund (PCF) and the Japan Greenhouse Gas Reduction Fund (JGRF)Carried out environmental forestation in coal-mining region of Australia and elsewhereSupported Children's World Summit for the Environment, organized by United NationsEnvironmental Program (UNEP)

Creating environmental guidelines and action targets for all Group companiesStriving to improve EMS introduction rate among Group companiesStriving to establish environmental assessment methods and environmental indi-cators that contribute to environmental management

Further increasing awareness of green purchasing for office suppliesBuilding environmental assessment database for equipment and materialsExamining measures to improve green-procurement ratio of Group corporations

Examining ways to cultivate environmental activities in homes and communities,in partnership with consumers' cooperatives and othersExpanding Chubu Eco Point ProgramEncouraging Group corporations to provide environmental education to theiremployees

Holding repeated stakeholder dialogues and backyard toursIndependently organizing Talk Sessions in the five prefectures of the Chubu re-gionContinuously enhancing our Website content

Repeatedly implementing “Invitation to the Forest” civic-involvement programDeveloping Chuden Eco Partnership environmental event in partnership withcivic organizationsContinuously implem–enting programs in partnership with NPOs (such as gifts oftree-planting vouchers on anniversaries)Frequently holding traveling classroom programs and tours of workplaces andfacilitiesConstantly promoting Eco Cute for efficient energy useContinuously supporting activities of Environmental Partnership Organizing ClubContinuously promoting environmental and energy conservation measuresthrough ESCO project

Registering Thai power generation from rice hulls project with UN CDM Execu-tive BoardContinuously funding PCF and JGRF, and contributing to global efforts to pre-vent global warming through projects to reduce greenhouse gas emissions indeveloping countriesContinuously carrying out environmental forestation in coal-mining region ofAustralia and elsewhere

Self-evaluation★: Maintenance/Management Goals◆: Examples of Actual Approaches

Level 5:attainment oflong-term goal

Level 4:attainment ofmedium-term goal

Level 3:attainment ofgoal for the fiscal year

Level 2:goal not yetattained

Level 1:need forimprovement

Results for FY 2005 Future Initiatives Seepage

Selfevaluation

Managem


anceSocial Perform

anceEnvironm

ental Performance


36

Coal ash

Gypsum

Heavy and crude oil ash

Sludge

Spent nuclear fuel

Fission Product

Radioactive solid waste *1: Recycled for use in cement, wall and flooring board materials, etc.*2: Recycled for use in cement, gypsum board, etc.*3: Recycled for use in cement, etc.*4: Including solidified sludge *5: Planning to recycle as nuclear fuel*6: barrel equivalent

931,000 t*1

293,000 t*2

4,000 t*3

73,000 t*4

Uranium 71 t*5

Plutonium 0.8 t

2.2 t

898 bbl*6

Fuel for Power generation Materials Water Vehicle fuel Power Purchased

from Other Companies

Coal

Heavy oil

Crude oil

Light fuel oil

LNG

LPG

Nuclear fuel (uranium)

10,298,000 t

143,000 kl

1,560,000 kl

13,000 kl

8,276,000 t

1,000 t

74 t

Lime

Ammonia

Other (caustic soda, etc.)

*1: calcium oxide, calcium carbonate

160,000 t*1

16,000 t

Thermal power

Nuclear power*1: industrial water

10,110,000 t*1

220,000 t*1

4,307 kl 17.2 TWhIncluding the following typesof renewable energy:

• Solar (photovoltaic) Power

• Wind (wind turbine) Power

• Waste Materials

89.09 GWh

113.68 GWh

267.25 GWh Etc.

In-house electricity consumptionPower-transmission loss

11.5 TWh

Electric Power Sold Atmospheric Emissions,Wastewater, etc.

Industrial Waste,Byproducts, etc.

Electric Power Sold 130.6 TWh CO2

CO2(emissions from vehicle fuel use)

SOx

NOx

Wastewater

Waste heat

Others (soot dust, etc.)

59,110,000 t

10,000 t

5,000 t

8,000 t

3,910,000 t

653 PJ*1

Provisional EstimateCO2 absorbed by company-ownedgreen areas 40,000 t*1: 1 PJ (petajoule) = 1.0X1015 J (joules)

Power Generated by Chubu Electric Stations (Thermal, Nuclear, Hydro) 126.2 TWhHydropower generation 7.6 TWhThermal power generation 91 TWhNuclear power generation 27.6 TWhElectricity for water pumping –1.3 TWh

Business Activities and Environmental Impact


37

We are pursuing expanded environ-mental accounting in order to increaseunderstanding of our position on andactual activities for environmental pres-ervation, as well as to achieve bothhigher levels of management efficiencyand preservation of the environment.

Environmental preservation costsOver the period in question, our envi-

ronmental preservation investment and

ment, and incorporated our views oncategorization and calculation criteria.Period covered:April 1, 2005 - March 31, 2006Scope of tabulation:All corporate locations

expenses amounted to 18.7 and 163.3billion yen, respectively. These amountsrepresented 15.1 % and 9.4 % of ourcapital investment and total operatingexpenses, respectively.

FY2005 TabulationPremises applied in tabulation

Tabulations were made by referring to“Environmental Accounting 2002” pub-lished by the Ministry of the Environ-

Investment (100 million of yen) Expenses (100 million of yen)

Basis for CalculationInvestment and expenses for the prevention, reduction or avoidance of environmental burden; environmental impact reversal; and damage restoration are taken into account.• Investment is the amount of capital investment used for environmental protection.• Costs associated with investment such as depreciation, equipment leasing, and maintenance and operating costs are calculated by taking into account factors such as useful life

for each type of facility or equipment.

Environmental preservation impactOur Basic Unit of CO2 emissions increased by 0.003 kg-CO2/kWh, while the volume of waste sent to external landfills decreased by 1000 ton, on a year-on-year basis.

Category

GlobalEnvironmental Preservation

RegionalEnvironmental Preservation

Resource Recycling

Social Programs

Global Warming Prevention

Air Pollution Prevention

Industrial Waste Measures

General Waste Measures

Landscape Protection

Greening

Items

Basic Unit of CO2 Emissions

Power purchases from renewable energy sources

SF6 recovery rate (at inspection time)

SOx emission (for all power stations)

NOx emission (for all power stations)

Land Fill Waste at Outside Locations

Waste paper recovery rate

Total length of power distribution cableslaid underground

Green area at power stations

FY04

Category

Global Environmental Conservation

Resource Recycling

Economic effects associated with environmental preservation measures

Global Warming Prevention

Industrial Waste Measures

Items

Fuel cost reduction due to change in gross thermal efficiency of thermal power stations, etc.

Sales income from recycled gypsum, coal ash, etc., and reduced expenses due to reuse of transform-ers and other equipment

These figures indicate the levels of reduction and avoidance of the environmental burden associated with our business operations as well as environmental improvements made by Chubu Electric, and are limited to thoserelated to environmental conservation costs.

These figures are changes in gains on recycling of gypsum and other waste and expenses related to environmental conservation.

FY05

0.450kg-CO2/kWh

376.96GWh

99.3%

0.03g/kWh

0.06g/kWh

9,000t

92.2%

58km

2.447 million m2

0.453kg-CO2/kWh

470.02GkWh

99.2%

0.04g/kWh

0.06g/kWh

8,000t

91.7%

40km

2.446 million m2

FY04

-19

66

FY05

-17

80

2

14

FY04

4

8

27

1

1

0

163

0

204

15.9%

-

FY05

7

22

27

3

1

0

128

0

187

15.1%

-

3

14

0

2

0

0

- 35

0

- 17

- 0.8%

FY04

87

674

207

2

24

69

603

9

1,676

-

9.8%

FY05

99

629

217

2

20

67

589

9

1,633

-

9.4%

12

- 45

10

0

- 4

- 2

- 14

0

- 43

-

- 0.4%

*: Totals may not agree because figures have been rounded down to the nearest 100 million yen.

Managem


ance


Category

Global environmental preservation

Regional environmental preservation

Resource recycling

Purchase oflow environmental impact products, etc.

Management programs

Research and development

Social programs

Environmental damage countermeasures

Total

Percentage of total capital investment

Main Items

Global warming prevention, and Ozone layer conservation

Air pollution prevention, Water pollution prevention, etc.

Resource conservation, Industrial waste measures, and Radioactive ma-terial measures

Electric and low-pollution vehicles, etc.

Personnel costs related to implementation of environmental conserva-tion measures. Costs for obtaining and maintaining ISO 14001, etc.

Environment-related research and development

International cooperation, Landscape protection, Greening, Natureconservation, etc.

Pollution impact levy under the pollution-related health damage com-pensation system

Percentage of total electric utility business expenses

Change overFY 04

Change overFY 04

Change overFY 04

(100 million of yen)

Social Performance


ance


Despite shortcomings such as a lowenergy density and unstable output, re-newable energy helps to reduce con-sumption of fossil fuels and alleviate en-vironmental load.

We are working to implement renew-able energy in accordance with the Spe-cial Law on the Renewable PortfolioStandard (RPS Law)* 2, which went intoeffect in April 2003.

*1: Energy sources that are not depleted through consump-tion, such as sunlight, wind, biomass, and water. While theamount of energy attainable in a set area is limited, we canuse it almost indefinitely.

*2: This regulation requires electric power suppliers to utilize acertain percentage of renewable power sources, such assolar, wind, biomass, or small- to medium-scale hydroelec-tric (water channel type, less than 1000 kW) in their powergeneration operations.

Wind power generation

Hydropower generation

Since the power industry consumes a great deal of natural resources,including fossil fuels, we view the effective use of resourcesas one of the critical aspects of our environmental conservation policy.We are working hard to promote the implementation and development of renewable energy,as well as the efficient utilization of resources.

Biomass-fuelcombustion testing

Promoting Development and Utilization of Renewable Energy*1

38

As we move toward the developmentand introduction of wind-power genera-tion for business use, we are surveyingwind conditions at several sites, as wellas the impact on the surrounding envi-ronment. We are aiming to bring threeof these sites (68 MW) online by fiscalyear 2008. Additionally, in February2006, Group company C-Tech Corpora-tion began commercial operation of theWind Park Misato (16 MW) in the city ofTsu, in Mie Prefecture.

　

Photovoltaic

Wind power

Fuel cell

Installation of photovoltaic, windpower, and fuel-cell generation systems(as of end-FY 2005)

　

Locations

49

3

1

Output (kW)

550

267

105

We are committed to making effectiveuse of our water resources. We have 182hydropower stations, which generate5,220 MW of electricity. We also con-tinue to develop new and efficient hy-dropower sources, using maintenancedischarges and unused drop-offs.

In fiscal years 2006 and 2007, we planto manufacture biomass fuel fromsludge generated from sewage treat-ment, and perform test combustion in athermal power station, jointly with theprefecture of Aichi. It is expected thatthe spread of sewerage will increase thegeneration of sludge, and this project’saim is to promote its effective utilization.

The Kinuura East Purification Center inAichi prefecture, carbonizes sludge andmanufactures it into biomass fuel. Weare currently testing factors such aswhether the fuel will affect the genera-tion boiler when combusted at ournearby Hekinan Thermal Power Station.

0

100

200

221.91 226.50262.23

343.61

470.02

300

400

2000 '01 '02 '03 '04 FY'05

500GWh

376.96

Biomass

Wind power

Photovoltaic

Amount of surplus power purchasedfrom photovoltaic, wind power,and biomass generation systems

Purchase ofrenewable energy

We are taking a variety of approachesto promote renewable energy. Besides

Fuel cell proving testsat Expo 2005 Aichi Japan

At Expo 2005 Aichi Japan, we con-ducted demonstration tests for moltencarbonate fuel cells (MCFCs) and solid-oxide fuel cells (SOFCs).

We participated in the Project for Es-tablishing New Energy Visions at the Lo-cal Level (Large-Scale Field Test of Resi-dential Fuel Cell System and MicrogridDemonstration Test at Aichi Expo 2005)carried out by the New Energy and In-dustrial Technology Development Orga-nization (NEDO). We installed a 250 kW-class MCFC cogeneration system fueledby methane gas produced through thefermentation of food waste collectedfrom restaurants at the expo venues, andsupplied part of the electricity and en-

Guideline 1We will use resources effectively.

installing photovoltaic and other renew-able energy systems in our locations, wepurchase surplus power generated byphotovoltaic, wind power, and othersuch systems.


39

The Chubu Green Power Fund Mechanism

Supporter

Supporter

Donatedfor facilities

Participants receive a Green Label and notifications of grants and results

Chubu ElectricPower Co., Inc.

Local solar (photovoltaic)power generators, etc.

Environmental education at schools.Natural energy generation facilities

Donations

Donations

Chubu Green Power Fund

Chubu IndustrialAdvancement Centeroperates the fund

Chubu Green Power Fund

In October 2000, we instituted the Chubu Green PowerFund. Under the Fund, we collect monthly 500-yen dona-tions from customers who support power generation usingrenewable energy, and use these funds to promote its diffu-sion. As of the end of fiscal year 2005, we had received 426donations from 490 customers. To assure transparency in re-ceiving donations, the Fund is being managed by the ChubuIndustrial Advancement Center.

We are publicizing the Fund over our website, and matchthe customer donations with contributions of our own.

MCFC Cogeneration System

Efficient Utilization of Energy

We are proactively taking measures toensure more efficient utilization of en-ergy, by increasing the capacity utiliza-tion rate of nuclear power stations, recy-cling nuclear fuel, and improving thethermal efficiency of thermal power sta-tions.

Increase in the capacityutilization rate of nuclearpower stations

We are striving to make efficient useof nuclear power station facilities whiletaking every safety precaution.

At the Hamaoka Nuclear Power Sta-tion, the capacity utilization rate for units3, 4, and 5 was 87.2 % thanks to theunits’ smooth operation. However, theoverall average capacity utilization ratewas only 54.9 % over the last five years

Trend of capacity utilization rate at theHamaoka Nuclear Power Station

Recycling of nuclear fuel

In Japan, nuclear fuel recycling is at thebasis of the national policy on nuclearpower.

Reprocessing spent fuel for efficientuse of uranium resources can pave theway for long-term assurance of an en-ergy supply through nuclear power. ForJapan, with its scarcity of domestic en-ergy resources, the recycling of nuclearfuel holds great value for energy supplystability. In addition, spent fuel repro-cessing also reduces the amount ofnuclear waste for disposal, because iteliminates the need for disposal of theentire volume of spent fuel, and extractswaste with a high level of radioactivityfor separate disposal.

ergy for air conditioning to the NagakuteNippon-kan and NEDO Pavilion.

These demonstration tests are beingcontinued in Chubu Rinku City, which isadjacent to the Central Japan Interna-tional Airport.

At the Wonder Circus – Electric PowerPavilion, we also installed a 30 kW SOFCcogeneration system, which supplied

(63.1 % in fiscal 2005), mainly due tothe long-term shutdown of units 1 and 2to increase their seismic tolerance.

As our customers expect, safety willcontinue to be our top priority as we op-erate and run the Hamaoka NuclearPower Station.

63.1

54.9

2000 '01 '02 '03 '04 FY'05

%

0

20

40

60

80

100

5-year average

1-year average

part of the pavilion’s electricity and air-conditioning energy. Despite the factthat the expo was an out-of-the-ordinaryevent, we succeeded in continuouslyand stably operating the system fornearly 4,000 hours.

Managem


anceSocial Perform

anceEnvironm

ental Performance

Environmental PerformanceGuideline 1


40

We are implementing a pluthermal program at our Hamaoka Nuclear Power Station,while giving safety top priority

Acting withthe understanding ofthe local community

We plan to begin a pluthermal*1

program at Hamaoka NuclearPower Station Unit No.4 in fiscalyear 2010.

In March 2006, we applied tothe national government for apermit to modify our reactor core.This is a key procedure for apluthermal program. Before sub-mitting this application, our em-ployees visited and spoke with ev-ery household in the four local cit-ies in the station’s area betweenSeptember and December 2005.The information provided by the employeesincluded the status of the power station, and

*1: Yellow powder created after purifying uranium ore, which looks like cake.*2: Waste liquid with a high level of radioactivity left after reprocessing spent fuel and extracting uranium and plutonium, which is later solidified with glass.

Uranium Ore Yellow cake*1

UraniumHexafluoride

Uranium Mine Refining Plant

Conversion PlantUranium

Enrichment Plant

Reconversion Plant

Fuel Fabrication Plant

NuclearPower Station

FuelAssembly

Reprocessing Plant

Recovered Uranium

High-LevelRadioactive Waste

Storage &Management Facility

Stockpile Center forFuel to be Recycled

(Intermediate Storage Facility for Spent Fuel)

UraniumHexafluoride

Uranium Dioxide

RadioactiveWaste*2

(High-level)

Recycling(Recovered uranium

& plutonium) Uranium Dioxide(Depleted uranium)

High-LevelRadioactive Waste

Management Facility

MOX FuelFabrication Plant

MOX Fuel

SpentFuel

SpentFuel

Our employees visited and spoke with every household in the station’s area

A public discussion forum held in November 2005

Recycling of nuclear fuel

the importance of the pluthermal program.We also sought out a broad range of opinion,including holding a total of 90 local orienta-tion meetings and public discussion forums.We will continue to proceed with ourpluthermal program with the understandingof the local community.

The need for pluthermalJapan is an energy-poor country, and at the

same time a major consumer of energy. In or-der for Japan to ensure a stable source of en-ergy into the future, while responding to such

global environmental issues as re-ducing CO2 emissions, it is an ab-solute necessity to establish anuclear fuel cycle and carry out apluthermal program, in additionto the promotion of nuclearpower generation. Pursuing anuclear fuel cycle includingpluthermal is Japan's basic policyon use of nuclear power.

Safety of pluthermalThe properties of the mixed ox-

ide (MOX) fuel used in pluthermalprograms are well understood.This fuel can be used safely in ex-isting power stations. Even if up toabout one third MOX fuel is used,

it is possible to ensure essentially the samesafety design and evaluations as with currenturanium fuel.

*1: This term refers to mixing plutonium recovered throughthe reprocessing of spent fuel from nuclear power sta-tions with uranium, and using it again as mixed-oxide(MOX) fuel in a light-water thermal reactor (this is thetype of our existing reactors).

When we perform our periodic inspection of HamaokaNuclear Power Station Unit No.4 in fiscal year 2010, weplan to use MOX fuel as part of the new fuel. We plan togradually increase the ratio, until the MOX fuel accountsfor up to about one third of the total fuel.


Increase in the thermalefficiency*1of thermal power station

Reduction of transmissionand distribution loss rates

41

Adoption of leading-edgecombined-cycle powergeneration

An increase in the thermal efficiencyof thermal power stations could result ina reduction in the use of fuel and curtail-ment of CO2 emissions.

We are striving for higher thermal effi-ciency by installing high-efficiency com-bined-cycle generation systems and ef-fectively operating high-efficiency ther-mal power stations.

The gross thermal efficiency of ourthermal power stations was ranked firstnationwide every year from fiscalyear1997-2001, and continues to stay ata high level.

In fiscal year 2005, our total thermalefficiency came to 41.36 %.

*1: Out of the thermal energy of the fuel consumed, the per-centage of energy capable of transmission as electricalpower; an indicator of the efficiency of energy utilization ata thermal power station.

In July 2005, we started the construc-tion of the Shin-Nagoya Thermal PowerStation No. 8 System fired with LNG, a

Conceptual drawing of the Shin-Nagoya Thermal Power Sta-tion No. 8 System upon completion (No. 8 System in the fore-ground and No. 7 System in the background)

To reduce such loss, we have beentaking various steps, including an in-crease in transmission voltage and a shiftto low-loss transformers. Since fiscal year1993, our loss rate has been very low(less than 5 %).

In fiscal year 2005, our transmissionand distribution loss rate amounted to4.66 %, the best of the ten Japaneseelectric power companies.

Trend of thermal efficiency of power generation facilities, and total thermal efficiency(higher heating value standard)

Comparison of transmission anddistribution loss rates

Source: Statistics on Foreign Electric Power Industry, 2005 Ed.,Japan Electric Power Information Center, Inc.Chubu Electric Power: FY 2005; Japan: FY 2004; Others: calen-dar 2003

0

2

4

6

8%

6.3 6.5

5.2

6.9

5.24.66

USAFrance

UK

GermanyChubu

Japan

25

30

35

40

45%NorthernEurope

USA

France

UK&

Ireland

Germany

China

India

43.4 43.942.8

35.637.0 37.2

33.3

28.6

Japan

Comparison of thermal efficiency ofpower generation facilitates in majorcountries (based on lower heating value) (2002)

Note: Outside Japan, it is common to use the lower heatingvalue (LHV) standard. The Japanese data (higher heating valuestandard) was thus converted to LHV. LHV is about 5-10%higher than HHV.Sources: Updated Comparison of Power Efficiency on GridLevel (2005) (ECOFYS); data from the Federation of ElectricPower Companies of Japan

Managem


ance

leading-edge, high-efficiency facility.The system is scheduled to commenceoperation in fiscal year 2008. The systemhas a capacity of 1.458 GW, and is lo-cated in the city of Nagoya, Aichi Prefec-ture. In the interest of lower fuel con-sumption and curtailment of CO2 emis-sions, we adopted a combined cyclepower generation system based on a gasturbine in the class of 1,500 ºC with ageneration efficiency of about 51 %.

In fiscal year 2012, we also plan tostart the operation of the Joetsu ThermalPower Station No. 1 System in the city ofJoetusu, Niigata Prefecture, as anotherLNG-fired high-efficiency facility with acapacity of 1.18 GW.

Atsumi No.3 (700 MW)

Owase-Mita No.3 (500 MW)

Yokkaichi No.4 (560 MW)(1,100ºC combined-cycle)

Kawagoe No.3 (1.65 GW) (1,300ºC combined-cycle)

Shin-Nagoya No.7 (1.458 GW)(1,300ºC combined-cycle)

Shin-Nagoya No.8 (scheduled for startup in 2008)(1,500ºC combined-cycle)

Thermal efficiency(Thermal power station)

Gross thermal efficiency for Chubu EPCo.(generation-end)

Average thermal efficiencyfor 10 Japanese companies(9 companies until FY1988)

39.5

39.01

39.10

41.81

41.84

39.640.4

41.842.6

48.5

48.6

41.36

51.0

'75 '85'70 '80 '90 '95 2000 '05 FY'1030

35

40

45

50

55%

(FY2001)

Chita No.4 (700 MW)

Social Performance


ance


42

One of the most important challenges facing management is the fight against global warming.We have been actively pursuing a reduction in CO2 emissions(per 1kWh of electric power consumed) by efficiently operating our power generation facilities.We are also striving to completely eliminate industrial wastes byproducts from our business operations,with the goal of creating sustainable society.

Preventing Global Warming

Reduction of CO2 emissions

Reduction of CO2 emissions resultingfrom power use requires efforts bothfrom the company supplying the powerand from consumers who must use it ef-ficiently. We consider it our duty to re-duce the level of CO2 emissions per kilo-watt-hour of power supplied to our cus-tomer in order to prevent global warm-ing.

The Federation of Electric Power Com-panies of Japan has formulated an “Envi-ronmental Action Plan” for the Japaneseelectric utility industry, and in line withthis, we have posted the target of reduc-ing emissions by at least 20 % relative tofiscal year 1990 by fiscal year 2010. Toattain this target, we are implementing avariety of measures.

Reducing the CO2 emission baseunit

CO2 emissions from the use of elec-tricity are calculated by multiplying thevolume of CO2 emitted per kWh (CO2

emission base unit) by the amount ofelectricity used by customers.

The amount of electricity used is af-fected by factors such as the weatherand our customers' usage. Our goal,therefore, is to reduce what we can con-trol through our own efforts: the emis-sions of CO2 per base unit.

In fiscal year 2005, we were only ableto reduce CO2 emissions per base unit by2.4% from fiscal year 1990 levels, due to

the long-term shutdown of HamaokaNuclear Power Station Units No.1 andNo.2, and reduced hydropower genera-tion resulting from low water levels. OurCO2 emission base unit was therefore0.453 kg-CO2/kWh. Our total CO2 emis-sions were 59,110,000 tons.

We will continue to work actively toachieve our targets. We will improve the

CO2 emissions trend

30

40

50

130.6

59.11998

4,631

0.464

70

60

'90 '91 '92 '93 '94 '95 '96 2000 '01 '02 '04 '05'03 FY '10'97 '98 '9950

60

70

80

90

100

110

120

130

140

0.3

0.4

0.5

0.6

0.453

Pow

er C

onsu

med

TWh

CO

2 Em

issi

ons

Mt-CO2

CO

2 Em

issi

ons

Per

Pow

er C

onsu

med

kg-CO2/kWh

Goal : 20% reduction (0.371)compared to 1990

CO2 emission base unit

CO2 Emissions

Power Consumed

utilization rate of nuclear power plantswhile giving top priority to safety, im-prove the thermal efficiency of our ther-mal power plants through the successfuldevelopment of high-efficiency LNGthermal units, reduce transmission anddistribution loss, introduce renewablesources of energy, and utilize the KyotoMechanisms.

Guideline 2We will reduce our environmental load.

Chubu Electric Powervoluntary approaches

• Increase in the capacity factorof nuclear power stations units• Increase in thermal efficiency

at thermal power stations • Reduction of T/D loss

• Development and extensive useof alternative energy

• Incorporation of renewable energy• Extensive use of the Kyoto Mechanisms• Curtailment of non-CO2 GHG emissions

Measures to preventglobal warming

Measures to promotecustomer cooperation

• Purchase of power fromrenewable energy systems

• Support of efficient energy utilization• Advocacy of energy conservation

and eco-friendly lifestyle

CO2 emissions＝ ×CO2 emissionsper kWh

Amount ofpower use

CO2 emissions due to power consumption


43

Utilizing the Kyoto MechanismsWe are actively utilizing the Clean De-

velopment Mechanism (CDM)*1 andJoint Implementation (JI)*2 in order tocombat global warming on a globalscale.

Our project to generate electricityfrom rice hulls in Thailand, which wasapproved by the Japanese government

as a CDM project, began operation inDecember 2005.

We are also investing in projects to re-duce greenhouse-gas emissions in devel-oping countries, including funding $10million each to the World Bank's Proto-type Carbon Fund (PCF) and the JapanGreenhouse Gas Reduction Fund (JGRF),which is the first fund for the reduction

of greenhouse gases in Asia.

*1: In CDM projects, a developed country joins a GHG emissionreduction project in developing countries, and may countpart of the resulting reduction as its own

*2: Under JI, a developed country (Annex 1) jointly implementsa project for reduction of GHG emissions, and may countpart of the resulting reduction as its own.

An environmentalaction plan forthe electric-power industry

In November 1996, the Federation of Elec-tric Power Companies of Japan Group of12*1 published the Electric Power IndustryAction Plan, which lists their voluntary targetsand efforts needed to achieve them. This planwas announced before the adoption of theKyoto Protocol in December 1997.

The environmental action plan states "Wewill strive to reduce our end-use CO2 emis-sions per base unit by 20% below fiscal year1990 levels (about 0.34 kg-CO2/kWh) by fiscalyear 2010."

We are actively implementing measures as

Note: Dotted line represents estimates without an effect oflong-term shutdown of nuclear power stations from 2002to2004.Source: the Federation of Electric Power Companies of Japan

an electric utility in terms of both electricityusage and supply, and we will continue to putour maximum effort into attaining this targetby strengthening the following measures.• Promotion of nuclear power energy

committed to ensuring safety and re-gaining trust

• Examination of ways to further improvethermal efficiency of thermal powerstations and to operate thermal powersources

• Utilization of the Kyoto Mechanisms

*1: The Federation of Electric Power Companies of JapanGroup of 12 consists of the 10 members of the Federa-tion of Electric Power Companies of Japan (Hokkaido,Tohoku, Tokyo, Chubu, Hokuriku, Kansai, Chugoku,Shikoku, Kyushu, and Okinawa Electric Power), ElectricPower Development Co., Ltd., and The Japan AtomicPower Company.

Stable supply of electricity andthe environment

Japan must import nearly all its energy re-sources from overseas. In order to ensure astable supply of electricity, it must generatepower using a combination of hydropower,thermal-power sources such as oil, coal, andLNG, as well as nuclear power.

In order to provide our customers withworry-free access to electric power, we de-velop an appropriate balance of these powersources, taking into account economic effi-ciency, environmental impact, and technicaloperating characteristics.

Nuclear power is the most effective way toprevent global warming, as it does not gener-ate CO2 emissions.

Meanwhile, coal-fired thermal power sta-tions generate large quantities of CO2, butcoal is more abundant than other fossil fuels,and as a fuel, coal excels in ensuring a stableand economic supply. The effective use of coalwill thus be essential in the future. We utilize

coal with consideration for the environment,by employing technologies such as the latesthigh-efficiency generation facilities, and sulfurand nitrogen scrubbers in our stacks.

We are jointly researching a power genera-tion system called the Integrated GasificationCombined Cycle (IGCC) with other electriccompanies. The goal of this joint research is tohave thermal efficiency on a par with LNGthermal plants.

Breakdown of CO2 emissions bytype of power generation

CO2 emissions derived from energy consumption at allstages, from resource extraction and facility construction tofuel transportation, refining, operation, and maintenance,as well as fuel for power generation.Figures for nuclear power generation include emissions as-sociated with domestic reprocessing of spent fuel and use ofa pluthermal system (assuming a single recycling) as nowplanned, and disposal of high-level radioactive waste.Source: Central Research Institute of the Electric Power In-dustry (CRIEPI)

Source: BP Statistics 2005; URANIUM2003

Recoverable reserves

0

50

100

150

200

Petroleum Natural gas Coal Uranium

40.5

66.7

164

85

years

CO2 emissions of by electric utilities

0.0

0.2

0.4

0.6

0.8

0

2,500

5,000

7,500

10,000

Electricity utilization

'70 '75 '80 '85 '90 '95 2000 FY'04

CO2 emissions

Amount of power from nuclear power generation

End-use CO2 emissionsper base unit

CO

2 em

issi

ons

per

base

uni

t: k

g-C

O2/

kWh

CO

2 em

issi

ons:

bill

ions

of

tons

of

CO

2

Elec

tric

ity u

tiliz

atio

n: 1

00,0

00 m

Wh

Managem


ance

0.975

0.742

0.6080.519

Kg-CO2/kWh

0.0880.038

0.130 0.1110.053 0.029 0.0150.022 0.0110

0.2

0.4

0.6

0.8

1.0

1.2

75 75 75 75 15 20 75 60 45％Utilization rate

Nuc

lear

pow

er

Phot

ovol

taic

pow

er

Win

d po

wer

Geo

ther

mal

pow

er

Hyd

ropo

wer

Coa

l-fire

dth

erm

al p

ower

Oil-

fired

ther

mal

pow

er LN

G-f

ired

ther

mal

pow

er L

NG

-com

bine

dth

erm

al p

ower

Emissions due to the construction and operation of facilities

Emissions due to combustion of fuel

Social Performance


ance



44

In June 1999, we established in-houseguidelines for limiting utilization andemission of chlorofluorocarbons (CFC).In accordance with these guidelines, weare striving to curtail emissions, and re-cover and reuse global warming sub-stances such as hydrofluorocarbons(HFC), perfluorocarbons (PFC), and sulfurhexafluoride (SF6) as well as CFC andother ozone depleting substances.

HFC is used mainly as a refrigerant forair conditioning systems. We work to-ward limiting its emission into the atmo-sphere by preventing leakage duringequipment installation and repair and byreusing recovered gas.

PFC is used in liquid form as a trans-former coolant and insulating medium,and there is no risk of its emission intothe atmosphere.

Reduction of non-CO2greenhouse gases*1

Rate of SF6 recovery during inspection

40

60

80

100%

'99 2000 '01 '02

86.0

95.9

'03 '04 FY'05

98.1 99.0 98.4 99.3 99.2

Emissions of HFC and SF6 (Substitute for CFCs)

Emissions

176 t-CO2

About 50,000 t-CO2

Measures to reducegreenhouse gasesfrom transportation

Promotion of resourceand energy conservationat the office

We are working to reduce greenhousegases from transportation, by usinghighly fuel-efficient cars and other low-emission vehicles; strictly enforcing theprohibition against leaving the engineidling when stopped; and ensuring thatall our employees use public transporta-tion for commuting and business travelas a rule. We have reduced the fuel con-sumption of company vehicles by 13%below fiscal year 1998 levels.

We also strive to effectively operateour tankers when shipping fuel fromoverseas.

When shipping coal, we promote theuse of large container ships, in order toimprove transportation efficiency. In fis-cal year 2005, we conserved about10,000 tons of transportation fuel andreduced CO2 emissions by 30,000 tonsby promoting efficient transport.

LNG tankers use the boil-off-gas(BOG) from vaporized natural gas in thetanks during transport as fuel, so as notto waste it.

We have strived to reduce the use ofelectricity, water, and other resources inthe office by setting targets at eachworkplace. In fiscal year 2005, our ef-forts to conserve energy and resourcesmade it possible to reduce our electricityand water usage by 9.8% and 9.6% re-spectively, compared with fiscal year1998 levels,.

Additionally, in June 2005, we joinedTeam Minus 6%, which is a nationalmovement to prevent global warmingbeing promoted by the national govern-ment. Our president and two of our em-ployees modeled at the Cool Biz Collec-tion (event organized by the Ministry ofthe Environment) at Expo 2005 Aichi Ja-pan.

Then-president FumioKawaguchi and two ofour employees modeledat the Cool Biz Collection

99.6 % during removal and 99.2 % dur-ing inspection.

*1: There are six types of Greenhouse gases: carbon dioxide(CO2) emitted mainly along with fuel combustion; methane(CH4) derived from fermentation of organic substances;dinitrogen monoxide (N2O) deriving from production activi-ties at industrial plants; hydrofluorocarbons (HFCS), whichare refrigerant alternatives to freon; perfluorocarbons(PFCS), also refrigerant alternatives; and sulfur hexafluoride(SF6), used for electrical insulation.

SF6 is used mainly as an insulating me-dium in electrical equipment. Its green-house effect is estimated to be 23,900times greater than CO2. We have devel-oped a recovery device and rigorouslyapply procedures for its recovery and re-use during inspection and repair. In fiscalyear 2005, we worked for efficient re-covery, and achieved a recovery rate of

CO2 emissions from use of electricity inoffices and fuel in vehicles

Our coal-carrier ship, Tatsuki-maru

　　　　　　　　　　

Substance

HFC

SF6

CO2 emissions

About 50,000 t-CO2

About 10,000 t-CO2

Office electricity usage

Vehicle fuel


45

Waste Reduction

Targeting zero emissions

Effective use of coal ashAs a material, coal ash has many out-

standing properties, including makingmaterials finer-grained, lighter, and stron-ger. We have a wide range of recyclingmethods, in order to effectively utilize ourlimited resources.

CirculashWe manufacture artificial zeolite at our

Hekinan Thermal Power Station (locatedin Hekinan City, Aichi Prefecture) with thegoal of adding value to coal ash and usingit in advanced applications.

Artificial zeolite is an inorganic materialconsisting of fine gray granules. It is madeby adding caustic soda to coal ash, whose

Amount of outside landfill waste by type

'95 '96 '97 '98 '99 2000 '01 '02 '03 '04 FY'05

Mt

0

0.25

0.50

0.75

1.00

1.25

1.50

Outside landfill waste

Industrial waste

Industrial Waste Processing and Recycling FlowchartRecycle

• Coal ash (in-house construction material)• Metal scraps (recycled power lines) etc.

• Coal ash (cement material, land-development material, etc.)• Gypsum (cement material, gypsum board, etc.)• Cement scraps (roadbed material, etc.)• Asphalt (recycled asphalt, etc.)• Metal scraps (metal), etc.

In-house landfill waste 33,000 t• Portion of sludge

IN OUTAmount Recycled1,366,000 t

MaterialsFuel Reduce

Reuse

• Cable drum• Packing materials• Thermal insulation• Gauges etc.

• Longer-lasting equipment• Process improvement

Amount of Waste1,413,000 t

Outside landfill waste 8,000 t• Portion of construction debris• Portion of discarded plastics etc.

Note: The amount of coal ash and other waste increased inFY2001 and FY2002 due to the start of commercial operationof units No.4 and 5 at the Hekinan Thermal Power Station.

Industrial waste, waste byproduct, and amount recycled (FY2005) (Unit: 10,000 t)

Amount Generated

93.1

0.4

29.3

7.3

0.3

2.0

0.2

8.3

0.5

141.3

Amount Recycled

93.1*2

0.4

29.3

3.4

0.0

2.0

0.0

8.0

0.3

136.6

Outside Landfill

0.0

0

0

0.1

0.2

0.0

0.2

0.2

0.1

0.8

In-House Landfill*1

0

0

0

3.3

0

0

0

0

0

3.3

Artificial zeolite products: powder and granule type

*1: Our in-house landfill is used as landfill material along with coal ash.*2: In the past, we had accounted for coal ash used in landfilling as in-house landfill, but the national government has deemed that coal

ash from coal-fired thermal power plants used in a landfill in accordance with a plan in the Harbor Law counts as land-developmentmaterial. For this reason, we have accounted for it as amount recycled.

*3: Waste oil, waste alkali, etc.Note: Total may not match because the figures are rounded off to two decimal places.

Trend of the amount of industrial wasteand outside landfill waste

0

0.5

1.0

1.5

2.0

2.5

Waste generated by Chubu EPCo.

Waste generated by our contractors

Waste generatedby our contractors

7,000t

1,000t

Totallandfill waste

at outsidelocations

8,000t

Wastegenerated

by Chubu EPCo.1,000t

Sludge

WastePlastics

MetalScraps

Glass andCeramic Scraps

ConstructionDebris

Others

We set the target of zero emissions infiscal year 2004, and have been engagedin various activities to meet this targetbased on the 3Rs of reduction, reuse,and recycling of waste, including wasteproduced by our contractors.

In fiscal year 2005, we produced1.413 Mt of waste. Through 3R activi-ties, the amount taken off company pre-mises for disposal amounted to 8,000 t,a decrease of 1,000 t from the previousfiscal year.

We shall continue to study effective

uses of outside landfill waste and makevarious efforts in order to achieve ourtarget: zero emissions.

Managem


ance

Coal Ash

Heavy / Crude Oil Ash

Gypsum

Sludge (including solidified sludge)

Waste Plastics

Metal Scraps

Glass and Ceramic Scraps

Construction Debris

Others*3

Total

Social Performance


ance



46

Management ofradioactive waste

The term “radioactive waste” refers tothe waste generated at nuclear power

stations which emits radiation. Radioac-tive waste produced at the HamaokaNuclear Power Station is treated withvarious methods adapted to the typeand concentration, in order to prevent itfrom exerting any impact on the livingenvironment.

Some of the gaseous and liquid radio-active waste is discharged into the atmo-sphere and the sea from exhaust pipesand ducts, upon confirmation of itssafety through measurement of the ra-dioactivity. We manage to keep the im-pact of this discharge on the surround-ing area to no more than about one-fifti-eth as high as the natural radiation (0.05millisieverts/year).

As of the end of fiscal year 2005, wewere safely managing 34,986 drums (inequivalent of oil drums) of low-level ra-dioactive waste at the solid waste stor-age depot on the station premises. Sincefiscal year 1992, we have sent a total of19,693 drums to the Low-Level Radioac-tive Waste Disposal Center (operated bythe Japan Nuclear Fuel Limited) inRokkasho Village, Aomori Prefecture.There, the drums are stored under-ground (at a depth of at least 4 m) afterthe radioactive material is sealed in.

Examples of processing of radioactive waste

Filtering

Evaporation/enrichmentLiquid

Gas

Solid

Measurement ofradioactivity

and confirmation of safety

Measurement ofradioactivity

and confirmation of safety

Safe storageon station premises

Release into the seawith coolant sea water

Releasefrom exhaust pipes

Hardening in drumsIncinerationCompression

Melting

Filtering

RokkashoLow-Level Radioactive WasteDisposal Center

main constituents are silicon and alumina,and performing alkaline treatment. It hasa porous crystalline structure, and func-tions as an adsorbent, cation exchanger,medium, and more. It is used in a widerange of applications, including absorb-ing and deodorizing foul-smelling gases,purifying wastewater containing heavymetals, and soil amelioration and otherenvironmental improvement.

We market the high-quality artificialzeolite we manufacture under the tradename Circulash®. It is used as householdair purifiers, garden soil improvers, andothers.

We have also developed an agriculturalsoil improver named Land Plus Z, which isnow available on the market. This prod-uct is a mixture of artificial zeolite and clin-ker ash, which is a type of coal ash. LandPlus Z has the ability to retain fertilizer andwater and to improve soil pH, and has ex-cellent water and air permeability.

Exhaust vent using PLASH

Edible chrysanthemums growing in a greenhouse. The plantson the left use Land Plus Z, and the plants on the right do not.

Development of PLASHplastic/coal-ash mixture

We have jointly developed a productthat effectively utilizes coal ash as an in-gredient in plastic products withMITSUBISHI HEAVY INDUSTRIES, LTD.The product, named PLASH, has beenmanufactured and marketed since 2004.

We have also developed new productswith added glass fiber for increasedstrength and products made from re-

cycled materials, with the aim of effec-tively using PLASH in a wide range of ap-plications.

Using fallen leaves washed intodams as humus

The Kawabe Dam Control Center,which is part of the Kamo Electric PowerCenter at our Gifu branch, has developeda device to mulch and separate fallenleaves washed into our dams to make hu-mus. The center offers hums made fromfallen leaves to members of the local com-munity.

Fallen leaves, driftwood, and other de-tritus wash into our dams. We havemanufactured humus from those other-wise useless materials. We distributed it atthe Minokamo Environmental Fair orga-nized by the city of Minokamo and gaverhinoceros beetles (a popular children'spet in Japan) raised in the humus to localelementary-school children. We also sup-plied driftwood as fuel for the ForestPower Station in the village of Shirakawa.


R E P O R T 2 0 0 5

47

Promoting Environmental Conservation Measures at Power Stations

Environmentalconservation measures atthermal power stations

We are paying close attention to thesurrounding environment by implement-ing measures against air pollution, waterpollution, noise, and vibration based onenvironmental conservation agreementswith local municipalities, and we aremonitoring the effectiveness of thesemeasures.

At our power stations, we also carryout monitor ing surveys of thesurrounding area to verify that there isno impact on the environment.

Our thermal power stations take a va-riety of measures to protect the environ-ment, including measures to protect theair, as well as to reduce wastewater,noise, and vibration. Our stations havethe world's lowest levels of sulfur oxide(SOx) and nitrogen oxide (NOx) emis-sions per unit of electricity in the world.

Air Pollution

Water Pollution

EnvironmentalConservation

Measures

Warm Wastewater

Noise & Vibration

Industrial Waste

Others

Sulfur oxide reduction measures

Nitrogen oxide reduction measures

Soot dust reduction measures

Wastewater measures

Warm wastewater measures

Noise prevention measures

Vibration prevention measures

Recycling and reusing measures

Treatment measures

Warm wastewater measures

Offensive odor prevention measures

Surrounding environmentsconservation measures

Measures in construction work

Security measures

Oil leakage prevention measures

Turbine building

Exhaustgasmonitor

Steamturbine

Condenser

Generator

Boiler Bunker

Coal pulverizer

SOx/NOx-collecting smokestack

Removal of soot dust

Wastewater purification

Constant wastewatermonitoring

Reduced wastewater flowPrevention of coal dust scatteringPrevention of oil leakage

Effective use of resources

Exhaust gasmonitoring camera

Electric grime arrester

Boiler building

Transformerbuilding

To homes, factories,etc.

SwitchgearTransformer

Water intake

Water outlet

Surface discharge

Wastewatermeasuring equipment

Wastewatertreatment equipment

Wastewater discharge

Sea

Sea

Green area

Transmission tower

Coal-stack yard

Reclaimer

Wind fence (Coal hoist)

Effective use of coal ash

Stacker

Conveyer(anti-dust construction)

Unloader

Conveyer(anti-dust construction)

Water sprayer

Coal carrier

Oil fence

Waterspray

Curtain wall

Deep-layer seawater intake

Removal ofnitrogen oxide

Limit watertemperature increases

Removal ofsulfur oxide

Constant monitoring of exhaust gases Reduction of nitrogen oxide Noise Prevention

Electric grime arrester

Flue gasdesulfurizationfacility

Flue gasdenitrificationfacility

Environmental conservation measures at thermal power stations(Example of Coal-Fired Thermal Power Station)

Observance ofenvironmental laws,regulations, and agreements

In fiscal year 2005, we did not violateany environmental laws or regulations,but in one case we did exceed levelsstipulated in antipollution agreements,and have taken measure to prevent a re-currence.

Radiation controlin the vicinityof the HamaokaNuclear Power Station

People are exposed to radiation andradioactive substances in daily life. An-nual exposure to natural radiation insuch forms as cosmic rays and radioac-tive substances in soil and food amountsto about 2.4 millisieverts*1 per person(average worldwide). Laws stipulate thatradiation doses received from nuclearpower stations by people residing intheir vicinity must not exceed 1millisievert per year.

The dose from the Hamaoka NuclearPower Station, as estimated based onthe amount of radioactive gaseous andliquid waste discharged from it, was lessthan 0.001 millisieverts for fiscal year2005.

*1: A unit designating the degree of radioactive influence onthe human body

USA UK Germany France Japan Chubu0

1

2

3

4g/kWh

SOx emissions

NOx emissions

0.06 0.09

Comparison of power station SOx andNOx emissions in major countries

Source: Basics of Energy Learned from Graphs and Charts, theFederation of Electric Power Companies of JapanChubu Electric Power: FY 2005; Japan: FY 2004; Others: calen-dar year 2002

In January 2006, it was found that the ef-fluent from the sewage treatment facility atour Yokkaichi Thermal Power Station had acoliform bacteria count of 590 per cm3. Thisexceeded the limit of 200 per cm3 weagreed upon with the city of Yokkaichi forpollution prevention.

We reported this finding to the relevantgovernment authorities, and investigated thecause. We confirmed that our facilities wereall functioning properly, and conjecturedthat it was highly probable that the samplehad become contaminated. We thus devisedmeasures to prevent foreign substances fromfalling into the water.

Excessive coliform bacteriacount in effluent fromsewage treatment facility

Managem


anceSocial Perform

anceEnvironm

ental Performance



48

Chemical Substances Management

Use ofPRTR-regulated substances

We have always managed the chemi-cals used for water and wastewatertreatment and chemical analysis at ther-mal power stations in accordance withmanuals.

In 1997, prior to the July 1999 enact-ment of the Law for Determination ofthe Release of Specified Chemical Sub-stances into the Environment and Pro-motion of Improved Control (i.e., thePRTR Law), we commenced PRTR studieson our own initiative and confirmed thattheir release was below prescribed levels.

We are committed to strict manage-ment of such substances based on in-house manuals and other materials, andshall continue to work for lower releaselevels of PRTR-regulated substancesthrough measures such as improving op-erating methods and shifting to alterna-tive substances and technologies.

Preventing emissions ofdioxins

In order to prevent the emission of di-oxins, we phased out 243 small-scale in-cinerators (since September 1997) by theend of fiscal year 2005, leaving only fa-cilities for research purposes as specifiedunder the Law Concerning Special Mea-sures against Dioxins. These facilities areproperly maintained and managed in ac-cordance with the law.

Approaches to emission reduc-tion

To reduce the release of toulene, xy-lene, and other pollutants contained inpaint into the atmosphere, we are study-ing prospects for a switch to paint prod-ucts that contain little or no such sub-stances. We used paint with almost no

toulene and xylene for some of thepainting done in thermal power stationsin fiscal year 2005. We shall further pur-sue these studies while also attemptingto reduce emissions by means such asrevising the frequency of painting.

PRTR-regulated substance survey results (FY 2005)

　　

Substance

Ethyl benzene

Xylene

HCFC 225

Styrene

Hydrazine

Halon 1301

Benzene

Trisphosphate

Dioxins

6.0 t

11.7 t

2.7 t

5.4 t

6.4 t

7.7 t

891.7 t

4.5 t

-

Main Use

Contained in paint

Contained in paint

Dry cleaning

Contained in radioactive wastefixation agent

Boiler feedwater treatment

Refrigerant for cryogenicpower generation

Contained inthermal power plant fuel

Turbine control oil

Emitted from small incinerators, etc.

6,000kg

11,700kg

2,700kg

0kg

1.2kg

0kg

0.0kg

0kg

Amount Discharged

0kg

0kg

0kg

0kg

0kg

0kg

0kg

4,500kg

0kg

0kg

0kg

0kg

17.1kg

0kg

0kg

0kg

0kg

Amounttransferred

Amount releasedinto the atmosphere20 tXylene usedin fuel and paint, etc.

Benzene in fueland Xylene in paint, etc.

Amount of chemicals usedin fuel, paint, etc.

936 tAmount consumed, etc.

911 tAmount dischargedinto water0.02 tHydrazinein feedwatertreatment

Amount transferredas waste5 tTrisphosphatein turbine control oil,etc.

Consumption & emission of PRTR-regulated substances (FY 2005)

Note: Except for dioxins, figures are for Class I Designated Chemical Substances that are handled in amounts of 1 ton or more per year(0.5 ton or more for Special Class I Designated Chemical Substances) at company business locations.Note: Since the toxicity of dioxins varies with the type of isomers, they were converted to toxicity equivalency quantities (TEQ) of 2, 3, 7,8-tetrachlorodibenzo-p-dioxin.

PCB(polychlorinated biphenyl)treatment

We have devices both utilizing poly-chlorinated biphenyl (PCB) in high con-centrations and pole-mounted trans-

formers that utilize recycled insulationoil*1 with accidental admixture of PCBtraces. We have stored this equipmentunder strict control since 1974, when aban was imposed on PCB manufacture,import, and use.

To detoxify large quantities of storedinsulation with low concentrations of

Amount UsedWater

0.20mg-TEQ

Atmosphere

0.00016mg-TEQ


49

Measures againstsoil pollution

We are committed to preventing soilpollution, and strictly complying with rel-evant laws and regulations. In fiscal year2005, two new cases of soil pollutionwere confirmed, so we acted appropri-ately to remove the soil within the rangeof contamination in accordance with le-gal ordinances.

We are planning voluntary soil surveysbased on our internal policy, in order toavoid soil pollution-related risk.

Insulation oil treatment facility

PCB, we built a insulation oil recyclingcenter on company land in the No. 9zone of the Nagoya port (located inMinato Ward, Nagoya City), and beganits operation in February 2005. The cen-ter safely and reliably detoxifies this oil bythe alkali catalytic cracking method,which is one of the dechlorination meth-ods recognized under the Waste Dis-posal and Public Cleaning Law. Aftertreatment, the oil is shipped by tank lorryfor reuse.

Soil surveys on our property

We surveyed the soil at our formerYada Minami Warehouse (located inYada Minami, Higashi Ward, Nagoya)when we dismantled the building. Thesurvey analysis detected levels of lead andlead compounds exceeding environmen-tal standards. For this reason, under theguidance of the city of Nagoya, we re-moved and appropriately treated the soilin the affected area.

R E P O R T 2 0 0 5

To treat the casings and parts from thetransformers containing low concentra-tions of PCB, we are building a facility onthe premises of our Nishi-Nagoya Ther-mal Power Station (located in TobishimaVillage, Ama County, Aichi Prefecture).Tentatively named the “Transformer Re-cycling Center,” this facility is scheduledto commence operation in the latter halfof fiscal year 2007. We also plan tooutsource the treatment for the PCB-usedevices (with high PCB concentrations).

*1: This oil is used in certain pole-mounted transformers. Acci-dental admixture of PCB in trace amounts was detected in1989 (this is the insulation oil with low PCB concentra-tions).

Fire at our insulating oil recycling center

On August 13, 2005, there was a fire atthe facility for treating oil with low concen-trations of PCBs at our insulating oil recyclingcenter. At 9:40 am, the fire department con-firmed that the fire had been extinguished.We conjectured that high temperatures andalkalinity wore and damaged the gasket* inthe connection between the container hold-ing insulating oil with low PCB concentrationfor treatment and the outlet valve, causing aleak of this oil from the connector and lead-ing to the fire.

R E P O R T 2 0 0 5

We are committed to investigatingand monitoring our asbestos usage, andpublicize our asbestos initiatives in atimely manner.

We have used spray-on coatings con-taining asbestos in some of our buildingsas soundproofing, insulation, and fire-proofing materials, but we are currentlyimplementing well-planned measures toremedy the issue, including asbestos re-moval. We have also used products con-taining asbestos in some of our genera-tor facilities' heat insulation, shielding,and other materials, but as these aremolded products, it will not disperse un-der normal-use conditions. For this rea-son, we plan to gradually replace theseproducts with asbestos-free productswhen we carry out periodic inspections,improvements, and repairs.

We will continue to respond appropri-ately to asbestos issues, in accordancewith national asbestos policy and rel-evant laws and regulations.

There have also been claims of work-related accidents involving asbestos bythe employees of our company and ourgroup companies. One person's case hasbeen recognized as a work-related acci-dent involving asbestos, and there aretwo ongoing claims as of May 2005.

Status of asbestos usage

For this reason, we replaced the gasketwith a product with high temperature andalkalinity resistance, and also isolated theconnection so that even if insulation oil withlow PCB concentrations should leak, itwould not come in contact with the air, andfilled the interior of the isolator with an inertgas (nitrogen). Note that this incident didnot result in leakage of insulating oil outsideour facility, nor did it cause any casualties.

Note: Gaskets are thin disks placed between connectors inorder to prevent leaks of liquid from ductwork and otherconnectors.

Transformers treatment facility (tentative name)

Managem


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anceEnvironm

ental Performance



50

Environmentally-friendly activities

Greening measures

We own about 2,300 ha of land cov-ered in greenery, including forests andgreen spaces on our power-plant pre-mises.

We green our thermal and nuclearpower plants with the goal of formingforested areas similar to the naturalstate. When we green our plant pre-mises, we strive to create a land ecosys-tem. We select trees that harmonizewith the local plant life, and also includefood plants favored by birds and otheranimals.

When building new facilities, we makevarious efforts to take into account theenvironment and landscape of the sur-rounding area, in order to preserve na-ture.

Giving away saplings

We donate saplings to schools, parks,and other public facilities in order to sup-port the creation of urban and suburbanenvironments rich in greenery. As of theend of fiscal year 2005, we have do-nated a cumulative total of about289,000 saplings.

Our Chita and Chita Number TwoThermal Power Stations cooperated with

tree-planting activities carried out in theOkada Hokubu district of Chita City. Thiswas part of the Acorn Woods Project or-ganized by the district's zoning associa-tion. Chita and Chita Number Two do-nated 400 saplings to the project.

Planting trees in the Okada Hokubu district of Chita City

Biodiversity initiatives

Establishingbiotelemetry technologies

We are working to develop technolo-gies to investigate the influence of ourhydropower dams and other river struc-tures on the habitats of river fish andother wildlife. As part of these efforts,we have developed a form of biotelem-etry, whereby we tag fish with miniaturetransmitters, and use them to analyzetheir actions. One conventional methodof tracking fish was to attach identifyingtags to them, release them, and thencatch them again, but the only informa-tion this provided was the point of re-lease and the point of capture. Our bio-telemetry technology, however, is ableto track the movements of each fish inthe river, around the clock. This survey isbeing conducted by Group company,Techno Chubu Co., Ltd.

Reducing tree loggingby using helicoptersto remove steel towers

Group companies, C-TECH CORPO-RATION and SHIN-NIHON HELICOPTERCo., Ltd. have jointly developed a trans-portation support system for removingsteel towers. When dismantling a steeltower in mountainous areas, we hadconventionally dismantled the structurepiece by piece from the top down, andthen removed the dismantled materialsfrom the site using helicopters andcableways. This new system reduces the

Tower carried to levelground by a helicopter

Landscaping considerations

When we build and maintain genera-tors, transformers, power transmittersand distributors, and other power-sup-ply equipment, we strive to achieve har-mony with the local scenery, while tak-ing into account economic factors.

We select the color and shape ofstacks, buildings, and other structures inour power stations after evaluating themvia a scenery simulation program.

When we pass power lines throughareas with superb natural beauty, suchas nature parks and picturesque sites, weemploy a number of measures toachieve harmony with the surroundingnature, including using colored coatingsand low-gloss treatment on our steeltowers, and colored insulators.

We have also developed a scenerysimulation system that makes it easy tovisualize utility poles and other overheaddistribution lines, and examine the im-pact on the surrounding scenery. We be-gan full-scale operation of this system inthe fall of 2005.

amount of working space on the moun-tain by suspending the tower in midairand carrying it down to level ground. Asa result, we are able to reduce theamount of trees that must be cleared byas much as 80 to 90%. This also has

safety and costbenefits , in-cluding reduc-ing the amountof work per-formed at highelevations.


51

In order for corporations to be committed to preserving the environment,it is critical to promote environmental management.We have been working hard to introduce an environmental management system,provide thorough environmental education to our employees,and promote green procurement.Our aim is to elevate our level of environmental commitment even further.

Environmental Management

Implementation ofenvironmental managementsystem (EMS)*1

For sustainable growth, it is importantfor companies to pursue environmentalpreservation and economic activities si-multaneously.

We consider it part of our mission toensure that our corporate activities showconcern for environmental preservationwell as provide a stable and low-costsupply of energy. The constant practiceof this philosophy is what the term "en-vironmental management" means to us.

To properly implement environmentalmanagement we have established an or-ganizational structure headed by ourpresident, to promote it across divisionaland office boundaries.

Stable energysupply

Stable energysupply

Low-costenergy

Low-costenergy

Environmentallyfriendly energy

delivery


delivery

Stable energysupply

Stable energysupply

Low-costenergy

Low-costenergy


delivery


delivery

Since establishing environmental man-agement rules in January 1998, we havegone on to set up environmental guide-lines and action targets at each location.

As a result, as of the end of fiscal year

Locations with ISO 14001 certification(as of end of FY2005)

Chita/Chita No. 2 Thermal Power StationHamaoka Nuclear Power StationEngineering Technology CenterResearch & Development Division

Shizuoka Regional Office (14 locations)Nagano Regional Office (14 locations)Okazaki Regional Office (13 locations)

InternalEMS certification system

Since fiscal year 1999, we have imple-mented an internal certification systemfor company-wide deployment of EMS.

1

2

3

4

5

6

7

Environmental Affairs Dept.

System supervision

Sign a contract agreementfor assessment services

Report on fiscal yearassessment plan

Implement assessment

Issuecertificationdocument Express desire

to be assessed

Power Stations,Business Locations, etc.

Create and operateenvironmental

management systems

Techno Chubu Co., Ltd.

Implement assessment

Regional Offices, etc.

Requestassessment implementation

Reportassessment results

Coordinate assessment plans Judge assessment results

Internal certification

Internal EMS certification system

Transition in EMS completion rate

'98 '99 2000 '01 '02 '03 '04 FY'050

20

40

60

80

100%

97

2005, about 90 % of our locations hadimplemented EMS, and some had beencertified under ISO 14001. EMS activi-ties, such as environmental load reduc-tion efforts and PDCA technique intro-duction, are gradually taking root.

In fiscal year 2004, we began rede-signing our environmental managementsystem, and had launched it at allbranches by the end of fiscal year 2005.

When redesigning the system, weadded the improved goal of achievingfurther efficacy and efficiency, by pro-moting environmental management di-rectly linked to our business activities,and enabling each regional office to cen-trally manage the environmental man-agement systems of all business loca-tions under its supervision.

*1: An organizational scheme enabling a company to ascertainthe actual or potential impact of its activities, goods, andservices on the environment; establish related guidelinesand targets; and take independent action on them.

Techno Chubu Company Ltd., a subsid-iary of Chubu, carries out examinationson par with examination and registrationinstitutions.

This system allows us “to confirmcompany statements by a person orgroup outside the organization” (ex-cerpt from JISQ 14001), recognized un-der the revised ISO 14001 of November2004.

Managem


ance

Guideline 3We will improve our level of environmental management.

Head office

Regionaloffices

Social Performance


ance


52

Green ProcurementCreation of the ECONP logo

In July 2005, we created an environ-mental logo and name in order to pro-mote Group-wide environmental man-agement and use it to build an environ-mental brand.

This logo is used at the business loca-tions of Chubu and our Group compa-nies that have obtained ISO 14001 envi-ronmental management system certifi-cation.

Green procurementof office supplies

We conduct green procurement forcopier paper, pens and pencils, andother general office supplies based ongenerally recognized evaluation criteriasuch as eco logos. In fiscal year 2005, ourgreen procurement ratio was 94%. Weare now aiming to further raise our em-ployees' environmental awareness, andachieve a green-procurement ratio of100% for office supplies.

In fiscal year 2003, we inauguratedour green procurement system to con-tinue the efforts our company and othercompanies involved in our business ac-tivities have taken to help create a recy-cling-oriented society. In fiscal year2006, we plan to also take CSR into con-sideration when procuring our supplies.

Survey of the status ofenvironmental managementamong business partners

Since fiscal year 2002, we have con-ducted a survey with our business part-ners to ascertain the status of their ap-proaches to the environment, and im-prove such approaches among all com-

Green procurement ofelectric-power equipmentand materials

In order to reduce the environmentalimpact of our electric-power facilities,we facilitate green procurement of ourelectric-power equipment and materials.In July 2005, we published a Green Pro-curement Guideline. We are currentlyworking to improve our products in part-nership with our business partners, tak-ing into consideration the environmentalimpacts of our electric-power equipmentand materials.

As part of our efforts, we are solicitingfrom our business partners "green prod-uct proposals" on environmentally-friendly electric-power equipment andmaterials. We received one proposal infiscal year 2005, and certified it as agreen product.

Record of green product proposals(Certified as green product)Company: Showa Denko K.K.Product: ECOANNProposal details: Switched part of the materials used to makeliquefied ammonia (mainly used in thermalpower stations) from fossil fuels to used plastics,increasing resource efficiency.

Green procurement recordin FY2005

Green procurement ratio

100%

100%

76%

94%

panies involved in our business. In fiscalyear 2005, we conducted a survey ofabout 1,240 companies, regarding EMSimplementation, chemical control sys-tems, and other aspects of environmen-tal management.

Research on quantitativeassessments of environmentalmanagement activities

Since fiscal year 2003, we have been con-ducting research with the goal of developingmethods to quantitatively and comprehen-sively ascertain the effects of our environmen-tal management activities on our businesses.

In fiscal year 2004, we calculated an indexof environmental impact per unit of electricitysold, by using a Japanese version of the LifeCycle Impact Assessment Method based onendpoint modeling (LIME) to assess the envi-ronmental impact of our business activities.We additionally calculated an index of envi-ronmental contribution per unit of electricitysold, by using the Contingent ValuationMethod (CVM) to assess our contributions tothe environment.

In fiscal year 2005, we improved the evalu-ation method of our environmental impact tomore closely reflect our business activities inthe indicator, by expanding the scope of as-sessment to include all fields, ranging frompower generation to logistics.

R E P O R T 2 0 0 5

The name "ECONP" comes from the English word "eco", or theenvironment, and the Japanese word “onpu”, or musical note.

Look! P70

Guideline 3


*1: Figures are for those purchased through electronic purchas-ing system.

Item

Copier paper

Printer toner

Other office supplies*1

Total


53

Environmental Education

In principle, we offer environmentaleducation to our employees through on-the-job training (OJT)*1 on a daily basis.

This is supplemented with instructionfrom environmental education trainers,and environmental education programsfor new hires, as well as for all employeesthrough e-learning.

In addition, each division has its ownenvironmental education program aspart of its collective training.

*1: A method to educate and train personnel in the workplace

Environmental education system

Items

First Year

SecondYearOnward

AcquiringBasic Knowledge

In-House SystemsEnvironmentalPoliciesAction Objectives, etc.

Timely LearningaboutEnvironmentalIssuesAction ObjectiveAccomplishmentTrends in GlobalEnvironmental Issues

Learning aboutDivision-specificEnvironmentalIssuesWaste TreatmentProcessEnvironmentalRegulations, etc.

New

Em

ploy

eeEd

ucat

ion

Educ

atio

n by

Env

ironm

enta

l Edu

catio

n Tr

aine

rs

Educ

atio

n th

roug

h E-

Lear

ning

Div

ision

-spe

cific

Edu

catio

n

Environmentaleducation trainer system

Under the system, our EnvironmentalAffairs Department holds seminars forenvironmental education trainers whoare selected at each business location.These trainers apply the knowledgegained through these seminars towardeducating the employees at their busi-ness location about the environment.

This system was established in fiscalyear 1998. In fiscal year 2005, the semi-nar was held for a total of 218 trainers. Acumulative total of 1,920 trainers haveattended the seminars thus far, and arecapitalizing on the environmental

knowledge obtained in their own workand in guidance of their subordinates.

Environmental Education Trainer System

1

2

3

4

5

Environmental EducationTrainers

(One-Year Term)

General Managerof Headquarters

General Managerof Business Locations

All Employees

EnvironmentalAffairs

Department

Training Report

ReportSelection &Assignment

Education

Environmental educationthrough e-learning

In fiscal year 2002, we began an envi-ronmental education program throughe-learning for all employees. E-learning iseducation through the in-house commu-nications network. It enables each of ouremployees to learn at their own conve-nience and to deepen their understand-ing through repeated review.

The program has been steadily height-ening awareness of environmental edu-cation. In fiscal year 2005, it attractedthe participation of 97 % of the employ-ees.

Chubu Eco Points

As part of the Global Warming Pre-vention Month initiatives in December,we implemented a Chubu Eco Pointsprogram, in order to encourage inde-pendent environmentally aware actionsby our employees.

Under the program, employees re-ceive points for the everyday environ-mental activities they engage in at work,in their communities, and with theirfamilies. Activities may include cleanupprojects, environment-related householdbookkeeping, environmental workshopattendance, and environment certifica-tion acquisition.

During the period of the program(from December 2005 to February2006), 1,555 employees participated inthe program (about 10%).

The results of the program were pub-lished throughout our company, andbenches made during forest activities inUchigatani Forest were given to thehighest point earners as a prize.

We plan to continue this program forthe sake of the environment.

E-learning for all employees

Managem


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54

Approaches by our Group Companies

Environmental philosophyand vision shared by theentire Group

In April 2004, we formulated ourGroup Environmental Declaration, whichconsists of the environmental philosophyand vision shared by all Group members.

Increase in the level ofenvironmental management

The Chubu Electric Power Group en-gages in the comprehensive energy ser-vice business, as well as in the IT and en-vironmental and social service busi-nesses. In all our business activities, weregard the prevention of global warm-ing, the contribution to the building ofrecycling-oriented communities, andother components of environmentalpreservation as a matter of CSR. In keep-ing with this view, we are promoting en-vironmental management through aconcerted Group-wide effort.

Chubu Electric Power GroupEnvironmental MeasuresCommittee

We instituted the Committee in April2001 for the purpose of increasing coop-eration and improving environmentalmeasures among Group companies. Asof the end of fiscal year 2005, it had theparticipation of 36 firms, includingChubu Electric.

In fiscal year 2005, members of theCommittee gathered twice to study thepossibility of setting up environmentalactivity guidelines that can be shared byGroup companies.

Formulation of environmentalguidelines and action targets

To reach the goal of a 100 % rate ofEMS implementation, we are having allof our Group companies formulate envi-ronmental guidelines and action targetsadapted to their business.

As of the end of fiscal year 2005, 33 ofour Group companies had set up suchguidelines and targets (implementationrate: 92%).

In addition, 14 of our Group Compa-nies had implemented EMS (implemen-tation rate: 39%), an increase of 5 com-

Implementation rate of environmentalguidelines and action targets

Implementation rate ofenvironmental management system*1

Implementation rate ofenvironmental education

0

20

40

60

80

100

'03 '04 FY'05

%

92

76

43

0

20

40

60

80

100%

03 04 05年度

38

46

89

0

20

40

60

80

'03 '04 FY'05

%

8

313

2219

Eco Action 21*2

ISO 14001

panies from the previous fiscal year.

Environmental educationIn fiscal year 2005, we held an envi-

ronmental education workshop in or-der to support environmental educa-tion for employees of our Group com-panies. We also provided e-learningand other environmental educationalmaterials to our Group companies overour Group intranet, as well as distrib-uted educational textbooks. In addi-tion, we dispatched our employees asinstructors to environmental trainingcourses held by our group companies.As a result, the number of our Groupcompanies implementing environmen-tal education has grown by 15 fromfiscal year 2005, to 32.

*1: Counted the number of our Group companies with at leastone business location that is certified under ISO 14001 / ISO14001 (self-declared), or has introduced environmental ac-tivity evaluation programs.

*2: An environmental activity evaluation program created bythe Ministry of the Environment based on ISO 14001.

Green procurement ofoffice supplies

As of the end of fiscal year 2005, 33 ofour Group companies practiced greenprocurement of office supplies.

In fiscal year 2005, the green procure-ment rate among our Group companiesreached 70%.

Guideline 3



55

Environmental load of our Group companies (in FY2005, for 35 of our Group companies excluding Chubu Electric)

Substance

Halon 1301

HCFC 225

Toluene

Ethylene glycol monoethyl ether

Xylene

Styrene

FY2004Main application

Thermal medium for cryogenicpower generation

Product washing

Contained in paint

　　

　

Resource cycle

Management activities

Social activities

Total

Average environmental preservation costs per company (expenditures)

Major items

Industrial waste measures

Ordinary waste measures

Organizational measures

Certification acquisition and maintenance

Greening and nature conservation

(Unit: millions of yen)

CategoryFY2005

97

705

39

142

977

71

111

2,140

61

Note: Totals may not agree because figures have been rounded down to the nearest 100 million yen.

Environmental preservation costs of our Group companies (in FY2005, for 35 of our Group companies excluding Chubu Electric)

We calculated environmental preservation costs (amount of expenditures) of our Group companies

Utilization

Electricity utilization

Water utilization

Vehicle fuel utilization

Fuel utilization

Substance

Industrial waste

Waste paper

SOx emissions

NOx emissions

CO2 emissions

We began collecting data on environmental load of all our Group companies in fiscal year 2002. Each company isstriving to reduce environmental loads based on its own target.

FY2005

66.63 GWh

137.34 GWh

Tap water: 640,000 m3; Industrial water: 130,000 m3

Gasoline: 4,400 kl; Diesel: 2,900 kl

2,800 kl

9.67 million m3

Petroleum

Gas Note: Calculated based on electricity utilization, vehicle fuel utilization, and fuel utilization

Initiatives by our Groupcompanies

C-EnergyThrough its ESCO business, C-Energy

supports environmental, energy-conser-vation, and other measures for its cus-tomers as a total energy service com-pany. As of the end of fiscal year 2005, ithad 83 contracts for 178,195 kW.

C-Energy helps its customers reducetheir CO2 emissions and other environ-mental impacts by choosing systems har-nessing new energy, such as natural-gas

Cogeneration system

cogeneration systems, solar power gen-erators, and fuel cells.

Offices

Plants

FY2005

Amount handled

7.0 t

2.5 t

8.2 t

1.7 t

5.2 t

1.1 t

Emissions

7,000 kg

2,500 kg

7,400 kg

170 kg

3,800 kg

160 kg

Amount transported

0

0

750 kg

1,500 kg

1,400 kg

920 kg

Amount handled

9.1 t

1.7 t

10.6 t

1.8 t

4.8 t

1.3 t

Emissions

9,100 kg

1,700 kg

9,900 kg

180 kg

3,500 kg

190 kg

Amount transported

0

0

700 kg

1,600 kg

1,300 kg

1,100 kg

ExpendituresFY2004

60

683

85

152

652

77

118

1,827

51

Managem


ance

TOENEC CORPORATIONTOENEC CORPORATION is engaged in

the ESCO business, offering comprehen-sive services, including energy-conserva-

tion assessments, design, installation,setup, maintenance, operation, and man-agement of energy-conservation equip-ment, and project financing.

In January 2006, The Energy Conserva-tion Center, Japan (ECCJ) presented thecompany with the Excellent ESCO ProjectAward Bronze Medal for the Bank ofNagoya Takabari Building ESCO Project, ajoint project with the Bank of Nagoya.This project created annual savings of12,873 GJ (equivalent to 337 kl of crudeoil), and reduced CO2 emissions by 145.7tons, through the introduction of energy-efficient lighting and air conditioningunits, as well as a cogeneration system.

FY2005

Amount wasted: 65,000 tons; Amount recycled: 55,000 tons

Amount wasted: 1,687 tons; Amount recycled: 1,209 tons

4.0 tons

48.4 tons

150,000 tons

PRTR (actual)

Note: Figures are for Type 1 chemical substances with a handling volume of at least 1 ton per year(including Special Type 1 chemical substances with a handling volume of at least 0.5 t/ year) at our business locations.

Reduction and recycling

Disposal and treatment

Reduction and recycling

Disposal and treatment

Personnel expenses for environmental preservation organizations, and environmental education/training

Acquisition and maintenance of ISO 14001, and internal certification

Greening and nature conservation activities

Social Performance


ance

56

Environmental Communication

“Eco Life Club”*1

We began operating the “Eco LifeClub” on our website in March 2003 toexchange ideas with our stakeholdersabout environmental problems and envi-ronment-friendly lifestyle.

The Club features essays by “eco-lifeexperts”, “recycled goods” made of or-dinary items, recipes for waste-freecooking, and ideas for living environ-mentally-friendly lifestyles proposed bycustomers (in fiscal year 2005, a total of876 such ideas were proposed). On aver-age, the Club is visited about 19,000times every month.

In August 2005, we ran a programcalled Eco Life Challenge. We sought3,000 families to master the efficient useof home electrical appliances. The par-ticipants were highly impressed by theprogram. One participant stated that al-though she had conserved electricity be-fore on her own, since taking part in theEco Life Challenge, her family hadstarted helping out.

*1: A lifestyle that is both environment-friendly and pleasant

We are working hard to make sure those around us can understandand trust our environmental efforts through active information disclosure and interactive communication.We need to cooperate with the local community as well as countries worldwidein order to address global environmental issues.We, therefore, strive to promote cooperation with the local communitiesand actively pursue information exchange and overseas technological collaborationwith energy- and environment-related overseas research institutions.

Eco Life Club Websitehttps://link.chuden.jp/ecolife/

URL

In December, we organized the”Chuden Eco Kitchen Studio” at a depart-ment store in the city of Nagoya. At theevent, we showcased a eco-friendlymenu perfect for parties and entertain-ing using an IH cooking heater.

Chuden Eco Kitchen Studio

Backyard tour

In March 2006, we gave a tour to con-sumer groups and students with thetheme "using coal at Hekinan ThermalPower Station", in order to deepen un-derstanding of our environmental effortsamong our stakeholders. The toursshowed the environmental measurestaken from the point that coal is un-loaded from ships until it is used to gen-erate electricity. It also explained the en-tire process of recycling of the coal ashcreated from power generation. Aftercompleting the tour, we held a discus-sion session with the participants.

“Eco Land”website for children

In December 1999, we launched the“Eco Land” website for children, so thatthey can enjoy learning about environ-mental problems.

“Eco Land” provides straight forwardexplanations on various global environ-mental issues and features answers toquestions received from children across

the country. It also describes our environ-mental approaches and suggests how toreduce CO2 emissions at home in a funand easy-to-understand manner.

Backyard tour

Eco Land Websitehttp://www.chuden.co.jp/kids/ecoland/

URL

In January 2006, we launched the“Ecology Tour” on our website. The sitefeatures female reporters guiding ecotours, where visitors can learn about theenvironment in a fun way.

Ecology Tour Websitehttps://link.chuden.jp/ecolife/ecotour/index.asp

URL


Guideline 4We will promote environment-related communicationand enhance cooperation with the community on a local and global level.


57

Cooperation with the Local Community

“Invitation to the Forest”

In Taiwa-cho, located in the city ofGujo in Gifu prefecture, we own a broadexpanse of forest covering 11 millionsquare meters, called Uchigatani Forest.Here, we conduct forest activities withcivic involvement called "Invitation tothe Forest." The theme of the program is“Co-existing with nature: Cultivatingforests and people “

The activities provide a wide range ofpeople with opportunities to help withforest conservation and experience na-ture so that as many people as possibleactively get involved in environmentalconservation activities.

In fiscal year 2005, we held 28 activi-ties (with a total of 308 participants) incooperation with groups such as “Loversof Water and Greenery”, an NPO com-prised mostly by current and retired em-ployee volunteers; and local NPOs“Komisisu Yamato” and “Friends of theMetasequoia Forest”. Activities includedtraining for forest volunteers and practi-cal forest education classes.

Making picture frames

Collaboration with anenvironmental NPO

In collaboration with “Chubu RecycleCitizens' Organization,” an NPO headedby Mr. Yoshiyuki Hagiwara, we haveheld environmental classes for elemen-tary school students since 1999, andgiven away commemorative tree-plant-ing certificates since 2001.

Chubu Recycle Citizens' Organization, NPO

Tel: +81-52- 339-5541

Environmental ClassesSince November 2005, we have held a

series of three environmental classes for30 elementary school students inNagoya and its vicinity. The students en-joyed learning about the importance ofenergy and the environment.

Commemorative tree-plantingcertificates

As a part of the Chuden Heart-to-Heart Campaign, we gave away com-memorative tree-planting certificates to5,000 customers through a drawing.

The certificate can either be ex-changed for a sapling to be planted byour customers or their family memberson a commemorative day, or donated tocitizen groups that plant trees in Japanand abroad. In fiscal year 2005, for ex-ample, some of the winners joined ac-tual tree-planting activities in NagakuteTown in Aichi Prefecture and ShirakawaVillage in Gifu Prefecture.

http://www.es-net.jpURL

http://www.wa.commufa.jp/~m-midori/URL

Environmentand energy seminar

The seminar provides the opportuni-ties for us to exchange a broad range of

Environment and energy seminar

We participated and assisted with theExpo Eco Money voucher program atExpo 2005 Aichi Japan as a partner com-pany. The program was a social experi-ment in environmental currency that isfriendly to both people and the planet.We issued certificates that could be ex-changed for Expo Eco Money vouchersto participants in environmental classesand other activities at the Electricity Mu-seum.

Additionally, in November 2005 theprogram was re-opened in theKanayama district of Nagoya city, andwe continue to participate in and assistwith the program.

Expo Eco Money

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Lovers of Water and Greenery, NPO

Tel: +81-52-880-6678

opinions on the environment with theyoung people who will lead the 21stcentury.

In fiscal year 2005, we held 10 ses-sions with nine college and graduate stu-dents in Aichi Prefecture, and sharedviews on the environment and energy.The participants had positive commentsabout the seminars, including their ap-preciation for hearing directly from thepeople producing environmental reportsand learning about environmental edu-cation in the company, as well as gainingthe ability to hold their own opinions onenvironmental issues.

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Creating environmentally-aware communitiesin cooperationwith local companies

In February 2000, we joined with 13companies in our area in establishing theEnvironmental Partnership OrganizingClub (EPOC). As of the end of fiscal year2005, 314 companies were participat-ing.

In fiscal year 2005, the club organized“Backyard Tour” and “Eco Talk Session”at EXPO and we actively participated inand supported these events.

Chubu Electric Chairman, FumioKawaguchi, served as a chairman of theclub in fiscal year 2006.

Promotingmore efficient energy useby customers

CO2 emissions resulting from poweruse cannot be reduced without the co-operation of our customers. We arehelping them make more efficient use ofenergy by recommending the use ofhighly efficient equipment and othermeasures.

Popularizing electrical heat-pump air conditioners

The Plan for Achieving the Kyoto Pro-tocol Targets lists heat-pump technolo-gies as a decisive way to prevent globalwarming, and the public and private sec-tors are working in partnership to popu-larize this technology.

In our sales promotion activities fo-cused on energy solutions, we recom-mend highly-efficient and environmen-tally-friendly electrical heat-pump airconditioners. In fiscal year 2005, we re-ceived 1,775 orders using about 190GW.

Popularizing “Eco Cute”Water-heating accounts for about

one-third of the energy consumption inthe home. We are working to expand

the diffusion of “Eco Cute,” an electricwater heater that uses a heat pump withnatural coolant (CO2). Eco Cute reducesenergy consumption from water-heatingand is also friendly to the family budgetand global environment.

Hot water tank unit

Expansionvalve

Compressor

Heat pump unit

Hightemperature

Watersupply

電気のパワー1

空気からの吸熱パワー2

お湯を作る3のパワー

1 Electric power

CO2

1 Electric power

3. Power to heat water

Temperature rises rapidly when CO2 is compressed electrically

With more advanced energy conservation

technology, there are now models that can use

electricity four times more efficiently.

Heatexchanger

Heatexchanger

Lowtemperature

Hot watersupply2. Air heat

absorptionpower

2. Air heatabsorption powerHeat

from air

Refrigerant (CO2)that absorbs heat

Refrigerant (CO2)

CO2 absorbs“heat” from air.

Hot Water

CO2 Cold Water

Water is heated toabout 90 degreescentigrade

How “Eco Cute” Works

Developing a low-cost,multifunctionaldemand-management system

We have jointly developed a low-cost,multifunctional demand-managementsystem with Hioki EE Corporation, com-bining a wireless load-curve*1 measuringdevice with monitoring and control soft-ware.

For customers, this system is particularlyeffective at conserving energy and savingmoney, because it is able to reduce peakelectricity load during the summer, whenelectricity usage is highest.

*1: A continuous display of customers' electricity demand overtime, as it fluctuates according to the time of day and season

Thanks to our aggressive sales activi-ties and the support of our customers,we sold some 39,000 units from in fiscalyear 2005. This brought the cumulativesales volume to about 94,000 units.

Getting people to use electric-ity efficiently

We take advantage of a wide range ofopportunities to provide information aboutenergy conservation to our customers. Weask our customers to use electricity effi-ciently in order to prevent global warming.• Display electricity usage for the samemonth of the previous year on meter read-ings• Distribute pamphlets such as “Q&A: Skill-fully Using Electricity” and “Eco Report”• Offer energy-conservation consulting aspart of our customer solution services• Exhibit energy-efficient devices at ENE-WAY and other shows, and organize en-ergy-conservation seminars• Develop public relations via our Eco LifeClub, Eco Land, and other Websites

Look! P8

Guideline 4

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

High voltage meterAdapted to 50,000 pulses/kWh

Wireless load-curvemeasuring device ENE-WAY 2005


59

Cooperation with the World

We are helping to raise the level ofenvironmental conditions in other coun-tries through our consultation activities,by capitalizing on the experience andknowledge we have accumulated byimplementing environmental measuresat our thermal power stations. We arealso actively involved in environment-re-lated projects overseas.

Participating in project togenerate powerfrom rice hulls in Thailand

As part of our overseas environmentalprojects aimed at acquiring CO2 emis-sions credits, we are participating in aproject in Thailand to generate electricpower from rice hulls. Under this project,multiple small-scale thermal power gen-erators fueled by rice hulls are being builtin the rice-growing belt of northern-cen-tral Thailand. In the province of Phichit(about 320 km north of Bangkok), wherethe project first started, a rice hull-firedthermal power station (20,000 kW out-put) went into commercial operation inDecember 2005. This was our first biom-ass power-generation project, in Japan orabroad.

Overseas consulting business

We provide technical assistance to de-veloping countries that are developingelectric utilities through official develop-ment assistance (ODA) projects and oth-ers commissioned by international institu-tions.

More specifically, we assist in thepreparation of power source develop-ment plans and in the design of electricfacilities, and provide expertise in the ar-eas of construction, supervision, opera-

Initiatives with fuel suppliers

In addition to environmental conserva-tion measures at our power stations andbusiness locations, we are also advancinginitiatives with our fuel suppliers.

Forestation at former coal-minesites in Australia

We are currently researching a foresta-tion project jointly with Toyota Tsusho Cor-poration, with the goal of increasing CO2

absorption and minimizing forestationcosts. The site we are researching is aformer coal-mining site in Camberwell,Australia, where our thermal power sta-tions procure fuel.

In October 2005, we also conducted avolunteer tree-planting activity on the landadjacent to the former mining site. This ef-fort was a continuation from 2004. Agroup of twenty-two individuals, includingcurrent and former employees and theirfamily members, from Chubu and ourGroup companies participated in theplanting of Eucalyptus saplings.

Volunteer tree planting activity

Desalinization project in QatarWe are currently carrying out a project

to build and operate a natural-gas com-bined cycle power-generation facility with

Development ofInternational Exchange

By accepting trainees from developingcountries and dispatching instructors tothese countries, we are promoting inter-national exchanges in order to protectthe environment, improve energy effi-ciency, and assure the safety of nuclearpower generation.

Acceptance of traineesand dispatch of instructors

FY2005

19(137)

16(16)

tion, and maintenance of electric facilitiesand environmental management.

Since launching the overseas consult-ing business in 1996, we have executed atotal of 94 projects in 31 countries as ofthe end of fiscal year 2005.

Part of the Qatari power-generation facilities went online inMay 2006

1,025 MW of output, and a desalinationplant with daily output of 273,000 tons,inside the Ras Laffan industrial zone, whichis located 80 km northeast of the Qataricapital of Doha.

The Middle Eastern country of Qatar ispoor in rivers and groundwater, and de-pends almost entirely on desalinization forits water-resource needs. We purchaseLNG from Qatar to fuel our thermal powerstations, and hope to further strengthenour friendship through this project.

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Note: Figures in parentheses indicate number of participants.

We are also a member of the WorldBusiness Council for Sustainable Devel-opment (WBCSD), which brings to-gether some of the world's leading envi-ronmental companies.

Number of trainee projects

Number of instructor projects

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Chubu Electric Power Environmental Forum

Since 1993, we have held the ChubuElectric Power Environmental Forum,which gives our president the opportu-nity to hear views on our environmentalmeasures directly from outside experts.

26th Chubu Electric PowerEnvironmental Forum

In November 2005, we held our 26thEnvironmental Forum, where we heardopinions on the topic "EnvironmentalInitiatives of Our Group Companies."We also observed the environmental ini-tiatives of Group company, ChudenWing Co., Ltd.

Views from the forum members• When developing wind power, please

conduct a thorough preliminary study,focusing on the impact on local com-munity and birdlife (raptors and migra-tory birds).

• Regarding Guideline 4 (environment-related communication and coopera-tion), you should publicize your Groupcompanies' initiatives in way that iseasier to understand.

• Improving thermal efficiency and oper-ating technologies has a significant im-pact on the environment. You shouldmake sure you do well in these areassince they are the core businesses of anenergy supplier.

• You should plan to bury power cablesin partnership with other industries.This will reduce the amount of roadconstruction needed and the impacton the lives of local residents.

• Having your president participate inthe Children's World Summit for theEnvironment (the fact that your topmanagement is involved) was a PRcoup. You should consider making ef-

Observing Chuden Wing Co., Ltd.

fective use of your existing resourcesfor PR like you did here, rather thancreating complicated PR strategies.

27th Chubu Electric PowerEnvironmental Forum

In May 2006, we held our 27th Envi-ronmental Forum, where we heard opin-ions on the results of our environmentalconservation initiatives in fiscal year2005.

Views from the forum members• Although your target was an 18% re-

duction in CO2 emissions per baseunit, you only achieved a reduction of2.4%. I think you will have troublemeeting your target of a 20% reduc-tion by fiscal year2010.

• The utilization rateof your nuc learpower station is low,but I th ink youshould emphasizethe fact that you areproactively shuttingdown units to in-crease their seismictolerance to improvesafety.

Nobuhiro Okuno (chair)

Sayuri Ozeki

Toshihiro Kitada

Keiko Kunimura

Kazuhiro Kuno

Koshin Kura

Naomasa Shida

Akira Tajima

Shinkan Tokudome

Hiroshi Nakamura

Park, Hye-Sook

Masanobu Hasatani

Tetsuo Hara (Vice Chair)

Takeshi Horishita

Eri Mizuo

Ichiro Yamamoto

Members of the Chubu Electric Power Environmental Forum (as of May 2006)

• I participated in the Chubu ElectricBackyard Tour. I felt that actually see-ing business activities gave a greaterunderstanding and fomented trust.

• You are currently focused on theyounger generation in your environ-mental communication activities, butwith the baby boomers approachingretirement, you should also bring theelderly into focus.

27th Chubu Electric Power Environmental Forum

Professor, Graduate School of Chukyo University

Executive Director, Chubu Chapter, Nippon Association of Consumer Specialists

Professor, Department of Ecological Engineering, Toyohashi University of Technology

Director, Nagoya City Waterside Research Group

Professor, Faculty of Engineering, Aichi Institute of Technology

Executive Director, International Center for Environmental Technology Transfer

Vice President, Shizuoka Eiwa Gakuin University

Editor-in-Chief, The Chunichi Shimbun (Newspaper)

Professor, Nagoya City University Graduate School of Medical Sciences

Professor, Faculty of Education, Shinshu University

Professor, Faculty of Humanities and Social Sciences, Mie University

Professor, Aichi Institute of Technology

Professor, Applied Biological Science, Gifu University

President, Aichi Trade Union Confederation

Associate Professor, Faculty of Human Studies, Meijo University

Professor, Graduate School of Engineering, Nagoya University

61

SocietySocial Performance


Customers


Local Communities

Business Partners

Employees

Bluebonnet Nagoya Port Wildflower Gardenat our Shin-Nagoya Thermal Power Station helps us coexist with the local community

Social Performance

62


We are actively committed to helpingbuild a sustainable society, while re-sponding in good faith to the opinionsand expectations we learn through com-munication with all of our stakeholders,including customers, shareholders andinvestors, the community, business part-ners, and employees.

Communication toolsWe use several tools to provide infor-

mation to our stakeholders, includingimmediate press releases, as well asbooklets and pamphlets. We also postuseful information for our stakeholderson our Websites.

Customers

Shareholdersand Investors

Business Partners Employees

Local CommunitiesThe leaders

of tomorrow

Chubu Electric Power

ManagementEnvironment

Corporate profilesNewsletters

CSR ReportThis report summarizesour CSR activities in thefields of managementand economy, the envi-ronment, and society.Published annually

Management GoalsThis annual manage-ment plan summarizesour current manage-ment status and futuretargets, as well as spe-cific challenges and ini-tiatives for the fiscalyear.Published annually

Eco ReportThis pamphlet summa-rizes environmental is-sues, with a focus oncombating global warm-ing.Published annually

Way (corporate profile)This booklet summa-rizes our corporateprofile in a easy-to-un-derstand manner. It isalso distributed to stu-dents with an interestin employment atChubu Electric.Published annually

Koryu (exchange)This cultural newslet-ter outlines topics onlocal communities andculture.Published twice a year

enchantéThis lifestyle newsletterhas celebrity interviews,seasonal recipes, and in-formation about envi-ronmentalism and en-ergy.Published four times peryear

Annual ReportThis report summarizesthe status of our com-pany, with a focus onmanagement and fi-nancial data.Published annually

Investors'Data BookThis report pre-sents histograms ofbusiness and finan-cial dataPublished annually

Corporate Websitehttp://www.chuden.co.jp/

link chudenhttps://link.chuden.jp/

Financial informationWebsites

Social Performance

Voice on Site: Comments from a customer representative

Utilizing our CustomerResponse System

63

Customers

We are intensifying a wide range ofinitiatives aimed at offering services thatmeet our customers’ satisfaction. Ourtelephone support centers and sales of-fices are in direct contact with our cus-tomers, and they strive to providefriendly and polite service, perform theirduties quickly and accurately, and offerpersonalized services tailored to eachcustomer's needs.

In addition to publishing information,we are doing our best to listen to ourcustomers’ feedback, and improve bothour services and business processes. Weare also committed to protecting ourcustomers' privacy.

We share the valuable feedback re-ceived from our customers with all em-ployees over our intranet by utilizing ourCustomer Response System.

We use this system to improve ourbusiness processes and services, in orderto achieve an even higher level of cus-tomer satisfaction.

When our sales representatives receivefeedback from a customer, either in per-son or via the telephone, they enter it in

Redesigning our Website

In October 2005, we completely over-hauled our Customer Website with theaim of making it more accessible andeasier to use.

We have created a new Website called"link chuden," which is different fromour main site that contains our corporateprofile and other information. Readers of“link chuden” can register to view spe-cific information about the services weoffer. The site offers information and ser-vices that meet our customers’ needs,including useful lifestyle tips, informa-

Conducting a customerfeedback survey

In addition to our Customer ResponseSystem, we conduct ongoing surveysasking customers questions such aswhat they want from Chubu Electric andtheir impression of our company.

The questionnaires, which targetabout 1,000 customers living in all pre-fectures in our service area, ask custom-ers their impression of Chubu ElectricPower, and their opinions and requestsregarding electricity bills and all-electrichomes.

In our survey conducted in September2005, 75% of respondents said theywanted us to lower our electric bills, 44%said they wanted quick recovery from ac-cidents and disasters, and 27% said theywanted our active commitment to theglobal environment, especially the reduc-tion of CO2. We carefully analyze the re-sults of these surveys with the help of out-side experts, and reflect them in our salesactivities on a company-wide basis.

the system. The feedback is then exam-ined in detail at cross-divisional discus-sion meetings and by division represen-tatives and the results of our studies areswiftly reflected in improvements in ourbusiness processes and services. The sta-tus of feedback examinations is alwaysaccessible within the company, whichhelps respond quickly.

Using this system allows our employ-ees learn about our customers’ needsand opinions, as well as share the resultsof our studies and responses.

Respondingemployees

Registration

Customer

Study ofimprovement measures

and new service opportunities(divisional level)

Provision of serviceswith a higher

customer satisfaction

CustomerResponse System

(shared by all employees)

Customer opinions,requests, etc.• Telephone

• Visits• Internet

Customer Response System

Aiming at improving cus-tomer satisfaction

Helping our customersover the phone

The Nagoya Call Center provides customersupport in our Nagoya and Shizuoka Officesales departments. My main responsibility is totake telephone requests from customers whowant to start or discontinue electricity service.I also offer first-line support for a wide rangeof other issues.

As an employee, my mission is to serve as aliaison between our telephone service con-tractors and our sales offices, working closelywith each. I communicate with both sides on adaily basis, so when the need arises I can dealwith situations without conflict.

When I am speaking on the phone, I can'tsee the customer's face, so I think it is vital toput myself in his or her shoes as much as pos-sible. I believe that a single phone call can havea major impact, and I put 100% into every call.One time, although I thought I had only giventhe level of service anyone would expect, I re-ceived a thank-you letter. That really movedme. Naturally we share information aboutproblems, but we also share when we arepraised or receive thank-yous. That really mo-tivates everyone at the center.

Misako Nomura,Senior StaffNagoya Call Center

tion about events and free gifts. Someexamples of site content are recipes andhousehold cleaning tips.

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Protecting our customers'privacy

As a company whose mission is publicservice, we have a vital responsibility toappropriately handle and protect per-sonal information. We have always beencommitted to protecting personal infor-mation and managing it appropriately.

In April 2005, the Personal Informa-tion Protection Law went into effect. Wehave responded to it by establishing abasic policy to further ensure that per-sonal information is handled appropri-ately, creating a privacy-protection re-gime and internal regulations, and edu-cating all employees on privacy issues.

Creating a basic policyIn April 2005, we established a Basic

Policy for Personal-Information Protec-tion, which clarified our basic stance re-garding privacy protection. Based on thispolicy, we declare our active commit-ment to protecting personal informa-tion, and publicize the purposes for col-lecting and storing personal informationas well as information disclosure proce-dures.

http://www.chuden.co.jp/info/privacy/URL

Information management regime

Information management pocketbook

PresidentHead Office

Divisions

RegionalOffices

BusinessLocations

Privacy Manager(appointed by our president)

General Affairs Division, Head OfficeInformation-management oversight center

Head-office departmentsDivision information-management oversight center

General Affairs Divisions, Regional OfficesInformation management section

General Affairs Group, Business LocationsInformation management section

Departments/Groups

Information Management Leaders

Departments/Groups


Departments/Groups


Customers

Establishing a company-wideprivacy-protection regime

We have built a company-wide regimefor protecting personal information. Un-der the leadership of a Privacy Managerwho is appointed by our president, thegeneral affairs division of our head officeserves as the information-managementoversight center. Furthermore, an infor-mation management section is estab-lished at each division, regional office,and business location, and an informa-tion management leader is appointed ateach business location.

Creating internal regulationsWe have created regulations for the

handling of personal information, in-cluding the Personal Information Protec-tion Regulations, which went into effectin April 2005.

Additionally, in response to recentcases of personal information leaks, weare committed to creating an environ-ment for the appropriate handling ofpersonal information, and provide thor-ough coverage of rules, including theimprovement of computer security andthe restrictions on removal of informa-tion from company grounds.

Privacy issues educationWe are striving to further raise our

employees’ awareness of privacy andthoroughly educate them on relatedmatters via our in-house newsletter,intranet, and e-learning courses on per-sonal information protection. Addition-ally, all or our employees carry an infor-mation management pocketbook sum-marizing our internal regulations on in-formation management at all times.

Preventingpersonal information leaksand their re-occurrence

Regrettably, in fiscal year 2005, therewere 16 cases in which personal infor-mation was lost or stolen from our com-pany.

We immediately apologized to the af-fected customers and explained the situ-ation. We also made announcements tothe press in order to prevent the damagefrom spreading.

We are also committed to appropri-ately managing personal information bymaking all employees aware of the spe-cific situation at hand.

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Shareholder makeup

As of March 31, 2006, we have a totalof 347,931 shareholders; 38.2% ofthem are individuals, and 41.2% are fi-nancial institutions.

We are committed to ensuring a highlevel of transparency, enhancing two-way communications with our share-holders and investors, and gaining theirtrust by appropriately disclosing informa-tion in a timely manner through our in-vestor relations (IR) activities.

Disclosing information

We disclose information in accordancewith the Securities and Exchange Lawand other relevant regulations and ordi-nances, and the rules for timely disclo-sure stipulated by the stock exchangeswhere we are listed. We also activelypublish information that we deem willbe useful to our shareholders and inves-tors via a wide range of IR tools, includ-ing our Websites.

We prepare not only brief financialstatements, but also "About These Fi-nancial Statements" as a supplementary

http://www.chuden.co.jp/corpo/ir/URL

Communication withour shareholdersand investors

We maintain a dialogue with ourshareholders and investors by holdingquarterly financial briefings and havingour managers individually visit share-holders and investors both in Japan andabroad.

In order to deepen the understandingof our business activities, we also providetours of our power stations and otherfacilities, and specially tailored company

http://www.chuden.co.jp/inquiry/index.htmlURL

A company orientation for women held in Shizuoka

document to disclose financial informa-tion in an easier to understand format.

We also disclose information with aneye to the convenience of our sharehold-ers and investors. In addition to our An-nual Report, which includes the status ofour company with a focus on manage-ment and financial information, we alsopublish “Investors' Data Book” contain-ing our business and financial data inchronological order.

We also send our biannual businessreports to all of our shareholders.

In order to give all shareholders andinvestors equal access to the informationwe disclose, we strive to publish thenotes to our financial statements, annualreports, and other major publicationsand data simultaneously in Japanese andEnglish.

orientations targeting individual inves-tors, women, and other specific groups.

We not only disclose our managementand financial information on ourWebsite, but also accept inquiries fromshareholders and investors via email.

Evaluation bySRI rating agency

Our stock is one of the 150 stocksadded to the Morningstar Socially Re-sponsible Investment index (MS-SRI), asocially responsible investment (SRI) in-dex by Morningstar Japan K.K.

Main IR activities (FY2005)Shareholder makeup

Tokyo: 4; Nagoya: 2

2

119 (31)*1

7

10

10

Financial briefings

Small meetings

Individual meetings

Facility tours

Individual investor briefings

Exhibits at IR events

*1 Figure in parentheses is the number of foreign financial in-vestor visits.

IR tools

Nationallocal governments

0.6%

Securitiescompanies

1.0%

Othercorporations

5.8%

Treasury stocks0.0%

Financialinstitutions

41.2%

Individualsothers38.2%

Foreigncorporations,

etc.13.2%

Totalnumberof shares

782,153,165

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Social Performance

School parents' network,Kizuna Net

66

Contribution to Society

In December 2005, we began offeringa service called Kizuna Net. This servicemakes it easy to send email to the mobilephones of parents and guardians of kin-dergarten, elementary school, juniorhigh school, and other children. Thanksto this service, schools can contact regis-tered parents quickly by sending urgentinformation, such as notices that theirchildren are leaving school earlier uponthe issuance of a heavy-rain or otherwarning, and information about suspi-cious individuals.

As a company whose businesses arebased in the Chubu region of Japan, weemphasize two-way communicationwith the Chubu community. We work

Offeringinformation servicesthat benefit local safety

With the recent upsurge in childrenbeing victimized by crimes, day-to-daysafety has become a key issue in thecommunity. We leverage the facilitiesand technologies of Chubu ElectricPower Group to help improve commu-nity safety.

Providing localizedmobile information serviceswith Poketchu!*1

Expanding the service area ofPatonet Aichi

Since 2005, we have been operatingan accident and crime information ser-vice called Patonet Aichi ("Patrol NetAichi") jointly with the Aichi PrefecturalPolice Department. In January 2006, we

Kokodenchu,a mobile-phone positioningservice using utility poles

We have begun trial operation ofKokodenchu, a service that provides po-sitioning information, maps, and otherdata to users who connect their mobilephones to the Internet and enter the

Helping keepcommunities safe throughsafety patrols

In May 2004, our Okazaki RegionalOffice worked with our Group compa-nies to form a Chubu Electric GroupSafety Patrol Team consisting of all ofour business locations in each regionaloffice’s area and our Group companies.The teams conduct safety patrols in thelocal community to prevent crimes. Dur-ing commuting, the employees ofChubu and our Group companies oftentravel through the community, both bycar and on foot. For this reason, theymake an organized effort to assist in pre-venting crime by quickly reportingcrimes, suspicious individuals, and otherrelevant information to the police. InMarch 2006, the city of Okazaki com-mended these efforts by presenting uswith an award as a Community SafetyPartner.

Additionally, our Kariya Sales Office,Kariya Electric Power Center, and TobuSubstation have been registered with thepolice as a Children's Emergency House:a place where children can take refuge inemergencies.

Another way in which we are helpingto ensure community safety and envi-ronmental conservation the is a memo-randum of understanding signed be-tween the city of Toyota and our Toyota-Kokodenchu

actively to benefit the community, andimplement a wide range of initiatives inpartnership with community members.We will continue to work to earn the

trust of the community, and help build asustainable community.

Local Communities

expanded the service area from the cityof Nagoya and its suburbs to all of AichiPrefecture. This service uses Poketchu!to send information about accidents andincidents occurring in their vicinities viaemail to users’ mobile phones. This ser-vice contributes to community safety byalerting residents to crime waves andother incidents.

Emergency informationin Nagoya

In April 2006, we began offering anemergency information service in part-nership with the city of Nagoya. UsingPoketchu!, this service sends an evacua-tion, evacuation preparation, and otherorders issued by the city of Nagoya, aswell as disaster prevention and otheruseful information regarding safety, viamobile-phone email.

*1: A website we run that sends useful information to residentsof Nagoya and the Tokai area via mobile phone.

control number displayed on a utilitypole. We plan to run this trial from Feb-ruary 2006 to March 2007. The service isavailable free of charge throughout ourservice area.

This service is useful when giving di-rections and checking one's location.

67

Opening our facilities tocontribute tomanufacturing andwelfare for the community

MOT School

In November 2005, our Group com-pany, Chuden CTI Co., Ltd. opened theNagoya campus of the Management ofTechnology (MOT) School at ourHigashi-Sakura Kaikan Hall*2 in collabo-ration with isupport Co., Ltd.

MOT's mission is to train managerswho are highly versed in both manage-ment and technology. In the Chubu re-gion, which is famed for artisanship andhands-on engineering, interest in such aschool is high, and we believe that by of-fering our facilities for the study of man-agement for manufacturing companies,we are contributing to the developmentof the local economy.

*2: A hall built to commemorate the 50th anniversary of ChubuElectric Power's founding, with conference rooms, galler-ies, and a gymnasium, which are open to the public.

Gardening welfareinitiatives using“Bluebonnet”

In April 2002, we opened part of thegreen area of our Shin-Nagoya ThermalPower Station to the public as the Blueb-onnet Nagoya Port Wildflower Gardens.This new open-air garden has becomevery popular with local residents. Thereare 22 separate gardens in the park, allthemed on wildflowers, offering sugges-tions on how people can incorporateflowers into their lives. In fiscal year2005, about 100,000 people visited thegardens for rest and relaxation.

A flower arrangement class in partnership with a day-servicecenter

Partnerships withuniversities aimed atmaking multifacetedcontributions intechnology and other fields

Industrial-academiccollaboration agreementwith Mie University

In September 2005, we signed aframework cooperation agreement withMie University. The aim of this agree-ment is to contribute to the sustainabledevelopment of local communities byexpanding our research collaborationwith the university, currently mainly inthe science and engineering fields of en-ergy and the environment, into a wider

Collaboration withNagoya University'sEcotopia Science Institute

In October 2004, our Research & De-velopment Divis ion and NagoyaUniversity's Ecotopia Science Institutesigned a collaboration agreement for re-search and development with the aim ofenhancing and accelerating each other'sR&D efforts, and helping to develop re-searchers and engineers. Through thisagreement, we have collaborated on anumber of joint research and otherprojects.

In fiscal year 2005, we conductedseven projects, including joint researchand technical guidance.

We are active in the field of gardeningwelfare. Our gardening welfare activitiesharness the power of flowers and green-ery to lift people's spirits and contributeto people’s health and well-being. Blue-bonnet received many visitors from so-cial welfare centers, and we partner withday-service centers and facilities for thechallenged to offer gardening and gar-dening welfare specialist trainingcourses, as well as to host symposiumsand events.

Another way we are harnessing thepower of flowers and greenery is our ef-forts to develop health-promoting com-munities. We are working in partnershipwith local governments, social-welfareorganizations, universities, private com-panies, NPOs, and others to expand ouractivities throughout Aichi Prefecture.

range of fields, including the arts andhumanities.

We will further collaborate with theuniversity in various areas by participat-ing in the Mie University Cultural Forumand jointly researching wind power gen-eration, while holding consultative meet-ings to decide in detail the areas for col-laboration.

Activities ofthe “Fairy Lights Club”

The Club was organized in November1991 as a part of our social contributionactivities, and is open to all employees. Itis engaged in a diversity of volunteer ac-tivities.

Since its organization, the Club hasdone volunteer work in areas affected bydisasters and taken part in clean-up cam-paigns in the vicinity of our business lo-cations as well as public facilities. In fiscalyear 2005, many of our employees wereinvolved in volunteer activities on the siteof EXPO 2005 Aichi Japan.

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Kamo office in Aichi Prefecture to reportroad damage, illegal dumping, andother incidents.

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The future of a community dependson its children. Using our facilities, weprovide a wide range of education andsupport programs relating to the envi-ronment and energy, in order to get chil-dren interested in environmental and en-ergy issues, and encourage them to act.

The Leaders of Tomorrow

Tours of workplacesand facilities

In response to requests from elemen-tary and junior high schools, we send ouremployees to schools to hold classes de-voted to electricity experiments, and onthe environment and energy.• Number of classes: 687 for 25,462 students (actual, FY2005)

Traveling classroom devoted to electricity experiment atTokoname-Nishi Primary School

Traveling classroom

In response to requests from elemen-tary and junior high schools, we conducttours of sales offices, power stations,and other facilities.• Number of tours: 240 for 4,061 students (actual, FY2005)

Tour ofPR exhibition facilities

We have exhibition facilities wherechildren can enjoy learning about the en-vironment, energy, and science. Thesefacilities are open to all the communitymembers.

Electric Kids Series,wall posters

Ever since our founding in 1951, wehave issued wall posters that focus onthe hows and whys of science to help in-still children with a scientific curiosity.Each year, we deliver 10 different postersto about 3,400 locations in our servicearea, including elementary schools andlibraries.

Children studying science at the Science Museum of Electricity

Major PR exhibition and community-partnership facilities

Information on PR exhibition facilitieshttp://www.chuden.co.jp/manabu/pr/index.html

URL

Local Communities

(As of the end of May 2006)

Days ClosedHours Opento the PublicAddress and Phone Number

9:30 a.m. –

5:30 p.m.

9:00 a.m. –

5:00 p.m.

9:00 a.m. –

4:40 p.m.

9:30 a.m. –

5:00 p.m.*1

9:00 a.m. –

4:30 p.m.

9:30 a.m. –

5:00 p.m.*3

Science Museum ofElectricity

Hamaoka NuclearExhibition Hall

KawagoeElectricity Museum“Terra 46"

“Hekinan Tantopia”(Electricity Museum,Healing Garden, Eco Park)

Chita ElectricityMuseum

“Bluebonnet”Nagoya PortWildflower Garden*2

2-2-5 Sakae, Naka-ku, Nagoya-shi, Aichi-

ken 460-0008,

Phone: +81-52-201-1026

5561 Sakura, Omaezaki-shi, Shizuoka-ken

437-1695, Phone: +81-537-85-2424

87-1 Asaake, Kamezaki-Shinden, Kawagoe-

machi, Mie-gun, Mie-ken 510-8587,

Phone: +81-593-63-6565

2-8-2 Konan-machi, Hekinan-shi Aichi-ken

447-0824,

Phone: +81-566-41-8500

23 Kitahama-cho, Chita-shi, Aichi-ken

478-0046,

Phone: +81-562-55-8311

42 Shiomi-cho, Minato-ku, Nagoya-shi,

Aichi-ken 455-0028,

Phone: +81-52-613-1187

Mondays (if a holiday falls on a Monday,closed on Tuesday), third Friday of everymonth, year-end and New Year’s holi-days (except spring and summer holi-days)

Third Monday of every month (if a holi-day falls on a Monday, closed on Tues-day), year-end and New Year’s holidays

Mondays (if a holiday falls on a Monday,closed on Tuesday), third Friday of everymonth, year-end and New Year’s holi-days

Mondays (if a holiday falls on a Monday,closed on Tuesday), year-end and NewYear’s holidays

Mondays (if a holiday falls on a Monday,closed on Tuesday), year-end and NewYear’s holidays

Mondays (if a holiday falls on a Monday,closed on Tuesday), Marine Day, De-cember 24, December 27 to the end ofFebruary

Facility Names

*1: Entrance to the Healing Garden and Eco Park ends at 4:00 PM.*2: Admission • Adults: 300 yen • 65 and older: 200 yen • Elementary/Middle school students: 150 yen • 6 and under No charge • Handicapped: 200 yen (10% discount for groups of 30 or more)*3: Varies according to season

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Collaboration withAichi University of Education

In March 2006, we gave a seminar onteaching elementary-school children in col-laboration with the Aichi University of Educa-tion at the Science Museum of Electricity,one of our PR exhibition facilities.

The university has introduced this seminarinto its curriculum to improve students' prac-tical classroom management skills. In theseminar, students taught classes using inno-vative teaching techniques under the guid-ance of several instructors.

This was the first time Aichi University ofEducation has given academic credits for ateacher-training course held at the PR exhibi-tion facilities of a private company.

Friends of Ergon,a science club for3-6 graders

We operate a free, members-only clubcalled “Friends of Ergon” for elementaryschool pupils in grades 3 – 6, to stimulatetheir interest in science and energy. Weregularly send the members copies ofthe newsletter “Ergon” containing infor-mation on the latest scientific develop-ments. We also hold club events in vari-ous places, focusing on themes such aselectricity, energy, and the environment.• Club membership: 13,000 (as of the end of March 2006)

https://link.chuden.jp/kids/erugon/index.aspURL

Denjiro Yonemura’s Fun Experiment Lab

Our rugby club coachesjunior and senior high schoolstudents

Since 1996, our rugby club has invitedlocal high-school rugby team membersevery year to provide technical guidanceand go through workouts together aspart of friendship and exchange events.

Few Japanese high schools have genu-ine turf-covered rugby fields to practiceon. We continue holding this event togive high school students the opportu-nity to learn advanced techniques andexperience the fun of rugby first-hand,through interaction with adult athletesin a positive environment.

In April 2006, we invited about 150members of rugby teams from four Aichi

Activities ofthe Chubu EducationalAdvancement Foundation

We established this foundation in June2001 with the aim of helping the gen-eration of children that will lead Japan inthe 21st century to be physically, men-tally, and emotionally healthy andsound.

We presented the Chuden Educa-tional Grant worth a total of 14,850,000yen and the Chuden Educational Awardsfor essays on educational achievementsto 46 and 6 elementary and junior highschools nationwide, respectively. Wealso awarded 70 elementary school chil-dren in the Recycling Craft Contest and4 outstanding writers with the Chudenchildren’s Literature Awards in a nation-wide contest. In addition, we held theChildren’s Picture Book Exhibition as partof our cultural and artistic activities.Note: Figures in parentheses indicate actual performance ofFY2005.

Teaching technique to local high-school rugby players

http://www.chuden-edu.or.jp/URL

Chubu Educational Advancement Foundation

Tel: +81-52-932-1741

4th Chuden Educational Award ceremony

The teaching seminar at one of theChubu Electric Power's PR exhibition facili-ties was very exciting. The students taughtwith passion in a workshop format, usinghand-made experiment kits and gamesthemed on electricity and energy.

I think that this collaboration betweenthe university and a private company was anexcellent opportunity to develop teachersfull of human charisma and energy.

high schools to our Nisshin General Ath-letic Field, where our rugby club con-ducted a workshop and held practicematches. We also actively support thedevelopment of future local athletes. Infiscal year 2005, we began holding aRugby School, which teaches rugbyabout twice a month to about 40 juniorhigh-school students each time.

Atsunori Noda, professorAichi University of Education

T O P I C S 2 0 0 5

To join, access the following website.

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We are committed to building a solidfoundation of trust with our businesspartners through communication as wellas fair and honest dealings, and carryingout CSR procurement activities in part-nership with our business partners.

In partnership withour business partners

We have created a new basic procure-ment policy in order to give greater con-sideration to CSR during procurement.Our future procurement activities will bebased on this policy.

Basic procurement policy

We consider our business partners asimportant partners that are aiming todevelop and grow with us. We are alsocommitted to fomenting a relationshipof trust with our business partners,strengthening our partnerships, andcollaboratively fulfilling our corporate so-cial responsibility. For this reason, in ad-dition to our own initiatives, we ask all ofour business partners to practice the fol-lowing six items after they have under-stood our basic procurement policy.

Point of contactfor purchasing materials

We have established a point of con-tact in our head-office procurement divi-sion, where business partners can con-sult with us about parts and materialstransactions in general. The aim of thispoint of contact is to enhance the com-munication with our partners.

Please see Information on Procure-ment of Parts and Materials on ourWebsite for details.

http://www.chuden.co.jp/corpo/shizai/index.html

URL

What we ask of our partners1. Total Compliance2. Safety Assurance3. Mitigate Environmental Burden4. Endeavor to Cut Costs5. Maintain and Improve Quality and

Provide Good Service6. Work in Partnership

Basic Procurement Policy

Meeting with our business partner at our head-office procure-ment division

Business Partners

1. Total Compliance

• We perform our work duties in strict compliance with all laws, rules and corporate ethics.

• We practice respect for human rights (prohibit child labor and forced and compulsory

labor, avoid discrimination, etc.), carefully manage personal and confidential information,

protect intellectual property rights, and so on.

2. Safety Assurance

• Understanding that safety takes priority over all else, we endeavor to prevent occupational

accidents and injuries and ensure public health and safety.

3. Mitigate Environmental Burden

• Cooperating with our suppliers, we work to mitigate environmental burden by practicing

green procurement, among other measures, and help to build and establish a recycling

society.

4. Open Door Policy

• We provide access to both Japanese and foreign companies, based on our open door

policy, so that we may do business with suppliers with superior technical expertise who

can provide quality products and satisfactory service.

5. Fair and Honest Procurement

• We transact fair and honest business in the procurement of materials, equipment and so

on, basing our decisions on economic rationality while assessing each supplier compre-

hensively for its prices, product quality, performance, safety, ability to meet delivery and

construction deadlines, after-sale service, technical expertise, production capacity, busi-

ness administration, safety management system and stance on corporate social responsi-

bility (CSR), among others.

6. Work in Partnership

• At Chubu Electric, we regard each of our suppliers as an important partner with whom we

seek mutual growth.

• Through open communication and fair and sincere transactions with our partner suppli-

ers, we form stronger trust-based relationships and seek to cooperate with our suppliers

to contribute to the sustainable development of society.

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Respect for human rights

We are aiming at creating a corporateculture that tolerates absolutely no dis-crimination on the basis of sex, belief,physical conditions, social standing, orany other such attributes by deepeningour employees’ understanding of humanrights.

For this reason, we strive to clarify ourstance regarding respect for human rightsthrough our CSR Declaration, Eight Ac-tion Guidelines on Compliance, and thelike. As a part of our initiative to raiseawareness of the importance of humanrights, we provide in-house training onsuch human-rights issues as the Dowa is-sue (social discrimination based on ances-try) and sexual harassment, and we alsoactively utilize outside training.

We will continue to raise awareness aswe work toward a future free of discrimi-nation and respecting human rights.

We employ a diversity of people inconsideration for equal opportunity aswell as individual capability and aptitude.We also strive to create a corporate cul-ture that enables each of our employeesto fully exercise his or her skills.

We have constructed an employmentsystem aimed at harmony with the homeand community, and offer support soeach of our employees can work withpeace of mind.

Employment andLabor-ManagementRelations

Open recruitment system

In April 2002, we established an openrecruitment system allowing highly moti-vated employees to demonstrate their

Employmentof the challenged

We are actively committed to hiringchallenged individuals, and support theindependence of the challenged in soci-ety.

Group company Chuden Wing Co.,Ltd. started business in April 2003. Thiscompany opens new employment op-portunities for the challenged, and is cer-tified as an "exceptional subsidiary"*1.The 32 challenged*2 employees and 12other staff combine their capabilities insuch businesses as design and printing,sales of novelties and gifts, gardening,and document delivery.

At Expo 2005 Aichi Japan, challengedemployees at Chuden Wing were incharge of planting the flower garden infront of the Wonder Circus – ElectricPower Pavilion (the exhibit of the Federa-tion of Electric Power Companies of Ja-pan). They delighted visitors to the pavil-ion during the expo, watering the gar-den under the hot summer sun, replant-ing, and doing other work.

As of 1 June 2006, our challengedemployment rate is 1.82% including

Chuden Wing. This meets the legally re-quired proportion of 1.8%.

*1: Exceptional subsidiary: The employees of subsidiaries incor-porated with special consideration for hiring challenged in-dividuals can be considered employees of the parent com-pany for purposes of legal hiring requirements, if they meetcertain criteria. Such subsidiaries are called "exceptionalsubsidiaries."

*2: Challenged: This term refers to individuals born with physi-cal or mental challenges.

Challenged employees at Chuden Wing work on the flowergarden in front of Wonder Circus – Electric Power Pavilion

Employees

talents in new business fields.In order to transfer our employees

based on their desires and initiative, weimplemented this system for the transferto the sales field in February 2003, andto other divisions in April 2004.

As of the end of fiscal year 2005, therehad been 540 applicants, and 260 ofthem had been transferred to other divi-sions.

Creation ofa sound corporate culture

We established a personnel counsel-ing service for resolution of problemsfaced by employees in the office as wellas employment-related questions andworries.

Similarly, to eradicate sexual harass-ment, eliminate gender bias, and re-spond to these issues, we are providingeducational programs on these subjectsto all employees and trying to raiseawareness through our intra-net. Wehave also established internal and exter-nal contacts for consultation.

In addition, we are attempting to cre-ate a sound corporate culture imbuedwith mutual respect for the person, dig-nity, and privacy of employees as indi-viduals. We are also making efforts toprepare a safe and pleasant work envi-ronment for our employees.

Establishment of favorablelabor-management relations

In accordance with a labor agreement,all of our employees join the Chubu Elec-tric Power Labor Union, except thoserepresenting the corporate interest, un-der the union system.

The labor and management sides en-gage as equals in collective negotiationon matters such as working conditionsand annual bonuses. They also confer onmatters related to business operations ina timely manner.

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Support schemesfor post-retirementemployment

In April 2004, we instituted a schemefor post-retirement employment named“Second Life Challenge.” The object isto assist employees in their endeavors tofind new work or go into business afterage 60.

In addition to giving employees 60and over introductory training as an op-portunity to think about their life plans,we also offer subsidies to attend trainingand classes outside the company, as wellas leave to attend educational institu-tions.

As of end-fiscal 2005, about 630 em-ployees have utilized this scheme (num-ber of employees taking trainingcourses).

Employmentof senior citizens

In April 2002, we established a systemfor the rehiring of employees who havereached the age of mandatory retirementas “senior staff” in order to make broaduse of their knowledge, skills, and experi-ence.

In April 2006, we revised this system inorder to more actively utilize the resourcesoffered by senior citizens. Under the newsystem, we seek to employ senior staff inpositions requiring high levels of expertknowledge and skills, a certain level of ex-perience, and jobs with set duties. As ofend of fiscal year 2005, we employ 99 se-nior staff in various positions.

Human resourcedevelopment

Basic human-resourcedevelopment policy

Our education program aims to maxi-mize the value of our human resourcesin a comprehensive manner, in order toout-perform our competitors in the en-ergy business, and enable our sustainedgrowth over the middle- to long-term.

What we wantfrom our human

resources

Continually honehigh level of

expert knowledgeand skills

Set personal goalto be electric-power

professional

Harness the desireand motivation to take on

new challengesand out-performour competitors

Spirit ofautonomyThink and

act independently

Harness creativityCreate new ideas

Awareness ofmission and actionWin customers' trust

We hold meetings to allow free ex-change of ideas between our executivesand the labor union on subjects such asmanagement policy, in order to maintainties of mutual understanding and com-munication in every layer of the organi-zation.

At the end of March 2004, we createdan action program for proper manage-ment of working hours and efficient ex-ecution of business, and declared ourcommitment to the same. Labor andmanagement worked together to en-sure working hours were properly man-aged in the implementation of our mea-sures, and to make our company an evenbetter place to work at, in accordancewith this action plan.

We have expanded the scope of em-ployment for women. We have assignedfemale employees to positions in opera-tion and maintenance of facilities in theElectrical Engineering, Distribution, andThermal Power divisions, and also em-ploy them in shift work and night service.

As of end-fiscal year 2005, 1,532 ofour 16,245 employees (9.4%) are

Employment of women

women, and we have 54 female employ-ees in leadership positions.

We are also actively committed toachieving the targets of our five-yearGeneral Business Action Plan (April 2005to March 2010), in accordance with theBasic Law for a Gender-Equal Societyand the Law to Promote Measures toSupport Fostering Next-GenerationYouths.

Voice on Site:

The section where I work handles electricitybills. I have a front-row view of how our cus-tomers feel. Every day, we get feedback fromcustomers that makes us happy, and feedbackthat makes us reflect on our actions as well.

In my work, I strive to guide subordinates inthe following two ways. The first is to recog-nize and be grateful that our customer hassubscribed with us. The second is an attitudeof wanting to serve our customers – givingthat little something extra. Naturally, the mostimportant part of our jobs is to perform our

work accurately. I believe that the attitude ofeach individual, grounded in this requirement,is vital for making this a great place to work.

I think that a great place to work is a placewhere people talk to each other. I believe thatgoing out of my way to speak to my subordi-nates and obtaining information from "downin the trenches" will lead to good communica-tion.

I give 100% to make sure that come rain orwind, we see smiling customer faces at ourworkplace.

A great place to work is a placewhere people talk to each other

Comments from a female employee in a management position

Yukie Hirai, Assistant ManagerBilling & Collections Section, Hamamatsu Customer Service Office(currently Manager, Customer Service Section, Shimada CustomerService Office)

Employees

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Introducing voluntary targetmanagement program

In April 2003, we introduced a frame-work based on a voluntary target-man-agement program into our human re-sources and wage system. The aim of theframework is for each employee to setambitious targets, in order to harness themotivation and autonomy of each em-ployee and compensate employees basedon performance.

Under this program, employees settheir own targets, and work to achievethem with the support of their superiors.Employees set challenging individual tar-gets after discussion with their superiors,based on the targets and policies of theirdivisions and places of work. The pro-gram employs a self-reporting system.Superiors evaluate their subordinates'performance at the end of each period,interviewing each subordinate and evalu-ating performance based on results, atti-tude, and the degree to which the em-ployee harnessed his or her capabilities.

In the evaluation of skills and suitability,superiors set targets for skill developmentafter interviewing the subordinate, basedon the subordinate's self-reporting. Thesuperior then checks the employee's sta-tus each half-year, and provides appropri-ate guidance and advice.

Creating a cheerful andmotivating workplace

Balancing workand personal life

In October 2005, we revised our worksystem, introducing a planned holidayand designated work program. The aimof this program is to specify flexible workdays and working hours, based on theindividual's preferences and in keepingwith the work situation, enhancing both

Support for balancingchild rearing with work

We provide support to help our em-ployees balance childcare with their jobs.Our childcare leave program allows em-ployees to take leave until their childreaches the age of 18 months, or the lastday of the fiscal year in which the childturns one year of age, whichever is later.We also have a shortened working-hourprogram that is available to employeesuntil the last day of the fiscal year inwhich their child turns six years of age.

Enhancement of long-termcare/nursing care leave

Our long-term care/nursing care leaveprogram allows employees to take up totwo years of leave if they must providelong-term or nursing care to a familymember. This program is also designedto alleviate the financial burden on em-ployees providing long-term and nursingcare by paying a portion of theemployee's salary while he or she is tak-ing leave under this program.

Enhancement of personalsupport leave

We support active efforts by our em-ployees to fulfill their roles as membersof their families and communities. Ourpersonal support leave program allowsemployees to take leave to recover froman injury or illness, nurse a sick or injuredchild, volunteer, register as a donor, ob-tain an official certification or otherwiseadvance their education and qualifica-tions, or for other personal reasons.

Conducting employeesatisfaction surveys

We conduct employee-satisfaction sur-veys as a mechanism to get feedbackfrom our employees.

We use these surveys – chiefly ques-tionnaires given to students of our Hu-man Resources Development Centertraining courses – to find out such thingsas what our employees think of theirwork, their awareness of management is-sues and the like, and the state of com-munication in the company.

The results of surveys we have con-ducted to date show that employee satis-faction is improving, including in terms ofmanagement policy focused on social re-sponsibility, and workplaces that giveconsideration to fostering active commu-nication and dialogue.

We plan to take greater advantage ofthis system, expanding the questions onour surveys and further analyzing andstudying their results.

Facilitating communicationthrough internal newsletters

our ability to plan the execution of workand employees' home lives.

We publish a monthly internal newslet-ter ca l led Human Energy. Thenewsletter's goal is to communicate infor-mation about our management and im-portant company policies in a detailedand understandable format.

The newsletter decreases the distancebetween management and the work-place, and also serves as an importantcommunication tool for improving moti-vation, by showcasing strong commit-ments by management and employees toresolving management challenges from awide range of perspectives.

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External Feedback

We have had an outside party evaluate our CSR initiatives from a third-party perspective.We take the opinions and suggestions we have received very seriously,and are committed to further improving the initiatives that received high marks,and take appropriate measures to remedy initiatives where room for improvement was found.

Sustainable Management Rating

We have received a sustainable management rating by theSustainable Management Rating Institute of the NPO Sustain-able Management Forum of Japan.

We were rated along 21 axes in each of the fields of Manage-ment, Environment, and Society, from the perspective of howour initiatives were contributing to the creation of a sustainablesociety.

The evaluation showed that our initiatives already met manyof the criteria for sustainability, and also showed that there hadbeen improvement in our CSR procurement and measuresagainst soil pollution, which had been found lacking in the pre-vious fiscal year.

Note: Each of the 21 evaluation criteria is evaluatedin three stages: strategy, framework, and results, fora total of 63 items; the evaluation expressed as atree, with the directions and colors of the leaves rep-resenting the stages/ratings. The deeper the shade ofgreen, the higher the level of accomplishment is.

Sustainable management tree

Main findings• Our progress toward our target to reduce greenhouse gas

emissions has been insufficient.• The fact that we have created a basic policy for strategic initia-

tives for preventing soil pollution is laudable, but procedureshave yet to be documented.

• Group-wide commitment is lacking in some areas.• Regarding corporate governance, we do not appoint outside

directors as a measure to guarantee the independence ofmanagement supervision.

Our views• Regarding the finding that we do not appoint outside direc-

tors, we expressed the view that we assured the fairness andtransparency of management through such means as the ap-pointment of outside auditors and the creation of the ChubuElectric Power Advisory Board, consisting of outside expertsand opinion leaders.

Framework

Framework

Strategy

Strategy

Results

Results

Superio

Excellent

Good

Fair

Poor

No leaf Does not apply

Legend

Look! P22

A Management philosophy

B Corporate governance

C Compliance

D Risk management

E Information disclosure communication

F Quantitative material and energy data

G Reduction of environmental burden products and services

H Prevention of global warming

I Reduction of environmental burden transport

J Resource recycling and waste reduction

K Management of chemical substances

L Prevention and remediation of soil contamination

M Preservation of water resources and water quality

N Preservation of biodiversity

O Sustainable corporate culture

P Contribution to regional lifestyles

Q Fulfillment of responsibilities to consumers

R Formation of safe, healthy work environment

S Equality of opportunities

T Balance between work and personal life

U Support for environmental and social activities of suppliers

Management

SustainabilityManagement Tree

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Stakeholder Dialogues

Maintaining a dialogue with our many stakeholders is vital forincreasing community members' understanding of our commit-ment to the environment, and utilizing their feedback in our fu-ture environmental management.

In February 2006, we held our second Stakeholder Dialogue,attended by 20 people, including people from environment-re-lated NPOs in the Nagoya area and its suburbs and corporateenvironmental representatives. The theme of the dialogue waswhat Chubu Electric needs to do in order to spread its environ-mental education to families and communities. Under the coor-dination of Masayo Kishida, president of the Partnership Sup-port Center, the members split up into three groups for groupdiscussions, after which we joined in with the members in anactive discussion.

Views on environmental education• Partnerships with NPOs, community members, and local gov-

ernments are needed in order to expand human resources andcollaborate more closely with the community.

• Why don't you create a human-resource bank for environ-mental education and make it available to the communities?

• You need to avoid using difficult terms, encourage people totake notice, and emphasize action over theory.

• You should encourage changes to the way people think, andleverage the hidden potential of all employees in the commu-nities.

• Is the Environment Department respected in the company?When the people providing environmental education becomeheroes, the activities will grow.

• You need to conduct initiatives in partnership with other com-panies.

• Chubu Electric has many different activities and programs. Ifyou could bring all of these together under a single brand, youshould be able to improve their level of recognition.

• How about an Environmental Skills Exam to certify people in-volved in environmental knowledge and activities?

Consumer life advisorsConsumer life consultants

We administered a questionnaire to consumer life advisorsand consumer life consultants, asking them their impressions,opinions, and suggestions regarding our 2005 Annual Environ-mental Report. We used the feedback we received from them toimprove our Chubu Electric 2006 CSR Report (this document).

Some feedback we received and our response• The expansion of your report from the environment to include

the economic and social fields shows your company's desire tobuild good relationships with your stakeholders.Starting this fiscal year, we have expanded and enhanced ourcontent in the fields of management, economy, and societythrough the Chubu Electric 2006 CSR Report

• The Action Plan in your environmental report is very concreteand easy to understand.We will continue to strive to make it easier to understand,based on the list format we have used to date.

• Some improvements are needed. There are too many pages,and much of the content is too technical for general readers.We designed the report to be more readable, reducing thenumber of pages and also trying to balance text with imagesand graphics.

• You should add more content on nuclear power and disposalof radioactive waste.We have added more content relating to nuclear power, in-cluding content relating to the pluthermal program and othernew trends.

• I think there should be stakeholder comments for each item.In our social report, we described the breakdown of eachstakeholder group, and reported our initiatives in the form ofresponses to expectations of Chubu Electric Power.

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Third-party Views

In order to make our CSR report more readable, we had three consumer life advisors checkthe terminology, language, graphics, and other aspects of our 2006 Chubu Electric CSR Report.

Remarks on 2006 CSR Report

Most consumers probably still do not know what the term "CSR"means. I feel, however, that the idea of evaluating companies not just bytheir efforts for their customers, but also by their efforts for their communi-ties, society, and the global environment is beginning to take root. Ourbasic expectation of CSR is that companies utilize their businesses to con-tribute to a sustainable society.

This report's content has been expanded from that of a traditional an-nual environmental report to a CSR report. You have published a CSR Dec-laration, and reported on your CSR in relation to a wide range of stakehold-ers.

I greatly approve of your clear statement of your commitment to fulfillyour responsibilities in response to society's expectations of you as a totalenergy supplier. Some of your concrete initiatives are introduced as"People and Technology Initiatives for CSR," showing Chubu ElectricPower's plans for CSR. In your fiscal 2005 highlights, the articles aboutindividual employees working with dedication while remaining environ-mentally conscious and valuing communication with customers left an im-pression on me. I believe that CSR is not something that a company carriesout as an enterprise; it depends on the awareness of each employee mak-ing up that enterprise.

I also rate highly your demonstrated desire to grasp the needs and issuesof society. In your social report, you reported on a great many initiativesaimed at ensuring community safety, including starting such services asKizuna Net and Poketchu. We have reached a time when the power ofcommunities is being focused on in many ways. There are high expecta-tions on companies to harness their unique features to benefit local com-munities, and I feel this will grow even more important. We also must notforget that openness is the key for local communities to be friendly towarda company and feel secure about it.

Although your environmental report states that reducing CO2 emissionsper base unit is one of your missions, your reduction was only slight. I thinkdealing with this issue will be one of your greatest challenges. There areexpectations for the creation of more environmental technologies to helpprevent global warming. As our lifestyles come to take energy conservationfor granted, I see difficulties in how the energy-supply business can ad-vance while remaining environmentally aware. You should clearly stateyour policies and plans in this respect.

Consumer life advisors discuss the CSR report with our editorial board

A greater level of information disclosure is needed about ensuring thesafety and security of nuclear power. Your visits to local homes to explainyour pluthermal program and other efforts show that you are taking thismatter seriously, but I believe that continued sincere and honest statementswill lead to community understanding. Your active commitments to lower-ing electricity rates, quickly recovering from power outages, resolving glo-bal environmental issues, and the like should also respond sincerely to awide range of opinion.

Most consumers almost never visit a Chubu Electric Power sales office inperson, even though they use your electricity 24 hours a day. Even with theliberalization of electric power, you are still a special type of company, andconsumers still do not have many choices. For this reason in particular, Ithink that a CSR report should be understandable to whoever picks it up.That is why I state my views very frankly on things like technical terms,foreign words, and hard-to-read layouts. Please make readability a constantgoal. When I pick up a report, I don't just want to read about what you havedone. I want to learn new things from it, learn things I wanted to know, andbecome motivated to act myself.

It is my hope that this CSR Report will serve as a good communicationtool, and that you continue to expand your contributions to society bymatching Chubu Electric's concept and practice of CSR with your stake-holders' expectations of Chubu Electric for CSR.

Consumer life advisorsNahomi KojyoYasuko HanaiNoriko Mizuno

GRI Guideline Content Index

This report was prepared with reference to the2002 Sustainability Reporting Guidelines of the Glo-bal Reporting Initiative (GRI). The table to the rightshows the pages corresponding to each section inthe guidelines.

A more detailed reference table is available fordownload from our Corporate Website.

http://www.chuden.co.jp/corpo/csr/URL

GRI guideline section

Vision and strategy

Profile

Governance Structure and Management Systems

GRI Content Index

Performance Indicators

Related pages

1-4

Editorial Policy, Corporate Profile, 1, 20-22, 37, 62, 76

1-4, 14-27, 30-35, 43-44, 51-52, 59, 62-73, 75

76

Corporate Profile, 17

32-50

1, 14-21, 23-28, 63-64, 70-73

Economic Performance


Social Performance

Substations (275 kV or more system)

Switching stations (275 kV or more system)

Thermal power stations (with internal combustion power generator)

Hydroelectric power stations (50,000 kW or more)

Nuclear power station

500kV Transmission line

275kV Transmission line

External substations

External hydroelectric power stations

500kV External transmission line

275kV External transmission line

Owase-Mita

Kosai

Taketoyo

Yokkaichi

Ise

Hamaoka

Takane-Daiichi

Mazegawa-Daiichi

Mazegawa-Daini

Okumino

Nagano

Minami-FukumitsuLinkage Station

Yokoyama

Okuyahagi-DainiHiraoka

Yasuoka

Oigawa

Kawaguchi

Okuizumi

Ikawa

Hatanagi-Daini

Hatanagi-Daiichi

Okuyahagi-Daiichi

Yahagi-Daiichi

Shin-Sakura

Abe

Suruga154kV

154kV

Sunnen

Shizuoka

Tohtoumi

Kawane

Mikawa

Miyoshi

UmemoriKanayama

Matsugae

Meijo

Minami-Buhei

ShimohiroiAma

Nishi-Owari

SeibuMie

Kita-Toyota

Seto

Inuyama

SekiSeino

Chuno

Hokubu

Gifu

Chushin

Shin-Shinano

Tied toTokyo Electric PowerCompany

Tied to Tokyo Electric Power Company

Tied to Tokyo Electric Power Company

Tied to Hokuriku Electric Power Company

Tied to Kansai Electric Power Company

Kita-Matsumoto

Toshin

Shin-Hokushin

Shinano

Saku

NanshinGihoku

DengenNagoya

Higashiura

Tokai Higashi-Nagoya

Koda

Tahara

Nukata

Higashi-Toyota

Tobu

Aichi

Shin-Mikawa

Toei

Toyone

Shin-Toyone

Shin-mikawa trunk line

Sunnen trunk line

Toei trunk line

Toyone trunk line

Shinano trunk line

Shizuoka trunk line

Daini-Hamaoka trunk line

Hamaoka trunk line

Etsumi trunk line

Nanshin trunk line

Tobu trunk lineAigi trunk lineSangi trunk line

Seibu trunk line

Nishi-Nagoya Shin-NagoyaNishi-Nagoya

Kawagoe

Chita-Daini

Chita

Shin-Suzuka

Chusei

Nansei

Hekinan

Atsumi

Shin-Kamiasou

Mie Higashi Oumi line

Sakuma

Ikehara

Higashi-Shimizu（FC*）

*: Frequency converter

Schematic Diagram of Chubu Electric Power System (as of end of March 2006)

Main Business Locations

HeadquartersNagoya Regional OfficeShizuoka Regional OfficeMie Regional OfficeGifu Regional OfficeNagano Regional OfficeOkazaki Regional OfficeTokyo Regional OfficeWashington OfficeLondon OfficeBangkok Office

1 Toshin-cho, Higashi-ku, Nagoya-shi 461-8680, Japan Phone: +81-52-951-82112-12-14 Chiyoda, Naka-ku, Nagoya-shi 460-8310, Japan Phone: +81-52-243-91002-4-1 Hondori, Shizuoka-shi 420-8733, Japan Phone: +81-54-255-11112-21 Marunouchi, Tsu-shi 514-8558, Japan Phone: +81-59-226-55552-5 Mieji-cho, Gifu-shi 500-8707, Japan Phone: +81-58-265-112218 Yanagimachi, Nagano-shi 380-0805,Japan Phone: +81-26-232-90607 Aza daidouhigashi Tozaki-cho, Okazaki-shi, 444-8606, Japan Phone: +81-564-55-50055th Floor, Nippon Press Center Building, 2-2-1 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan Phone: +81-3-3501-5101900 17th Street N.W., Suite 1220 Washington, D.C.20006, U.S.A. Phone: +1-202-775-1960Nightingale House GF, 65 Curzon Street, London W1j 8PE, U.K. Phone: +44-020-7409-0142Unit 4, 18th Floor, M. Thai Tower, All Seasons Place, 87 Wireless Road, Phatumwan, Bangkok 10330, THAILAND Phone: +66-02-654-0688

This report was printed on 100% recycled paper.This report was printed using environmentally-friendly vegetable soy oil ink, and a water-freeprinting process was used in order to prevent theescape of toxic liquid waste.

Published September 2006, CSR Group, Corporate Planning & Strategy DivisionE0-12-4-06 700

Please visit our Website for the latest information.

http://www.chuden.co.jp

Chubu Electric Power Co., Inc.

csr report 2006 · 2020-03-08 · corporate profile corporate profile (as of end of march 2006)...

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