Kansai Electric Power GroupKansai Electric Power Group and its pledge to stakeholders
C O N T E N T S

The Kansai Electric Power Group aims to become the No. 1 company in customer satisfaction in its business areas,
built around energy, which are foundational to people’ s lifestyles and society as a whole. Through its various businessactivities, the Group will respond to stakeholders’ requirements and expectations while obtaining their trust andunderstanding, and will contribute to the development of a sustainable society.

Kansai Electric Power Group and its pledge to stakeholders ········ 1
Editorial policies, Contents ······························································· 2
Message from our President ···························································· 3
Overview of Kansai Electric Power ·················································· 4Business
partners

Management and CSR

Local
communities

Customers

Kansai Electric Power
works hard to gain an
accurate understanding ofcustomer needs, in orderto build a stable
relationship with ourcustomers by providing
excellent products andservices.

As an enterprise with strong
connections to communities
and individual lifestyles,
Kansai Electric Power joins
hands with local
communities to make anactive contribution to solving
the issues that confront
them, building a trusting
relationship with local
communities.

Integrating CSR into the management of the Kansai Electric Power Group ··· 5Shareholders
and investors
Kansai Electric Power builds
stable relationships with
suppliers by purchasing
safe, high-quality andreasonably priced materials
and services that areenvironmentally friendly anddelivered in a timely manner.

Comfort and
Safety services
in daily life

Toward higher customer satisfaction and a low-carbon society ··· 7
Deploying the Kansai e-Eco Strategy

Employees

At Kansai Electric Power,
our employees are ourdriving force. We work
hard to create anorganizational climate andsystem that motivate andinspire our employees,
giving them opportunities
to develop their abilities tothe utmost.

Editorial policies

The Kansai Electric Power Group CSR Action Standards ········· 9• This report on the Kansai Electric Power Group’s work related

CSR promotion system ································································ 9

Risk management········································································· 9

to the economy, society, and the environment is for ourcustomers and stakeholders that support our businesses.

• In preparing this report, we referred to Sustainability Report

Guidelines, 3rd Edition, published by GRI, and Environmental
Report Guidelines, 2007 Edition, from Japan’s Ministry of theEnvironment. Guidelines for financial statements can befound at the URL below:
http://www.kepco.co.jp/corporate/csr/index.html• When information related to items published in this report areavailable online, the URL is given, accompanied by a “Weblink” icon.

KansaiElectric Power

Integrated
energy supply

Published October 20102009 edition published October 2009.
2011 edition to be published in the autumn of 2011.

Kanden Energy Solution Co., Inc.
SAKAI LNG Corp.
Kanden Energy Development Co., Inc.
ECHIZEN ENELINE CO., INC.
Two other companies

Information and telecommunications (IT)K-Opticom Corp.
K Cable Television Corporation
Kanden System Solutions Co., Inc.
Four other companies

Comfort and Safety services in daily life
KANDEN FUDOSAN CO., LTD.
Clearpass Co., Ltd.
KANDEN Security of Society, Inc.
Kanden E House Corp.
KANSAI Medical Net Co., Inc.



Kansai Electric Power Group CSR Report 2010

Kanden Joy Life Co., Ltd.
Kanden Building Management Co., Ltd.
Urban Service Co., Ltd.
El Suehiro Food Service Co., ltd.
KANDEN AMENIX Corp.
MID Urban Development Co., Ltd.
Five other companies

Group business support, etc.
Kanden Engineering Corp.
NIHON NETWORK SUPPORT CO., LTD.
Kanden Plant Corp.
The Kurobe Gorge Railway Co., Ltd.
NEWJEC INC.
Institute of Nuclear Safety System, Inc.
Nuclear Engineering, Ltd.
THE GENERAL ENVIRONMENTALTECHNOS CO., LTD.
The Kanden Services Co., Inc.

Kanden Joinus Co., Ltd.
Kanden CS Forum Inc.
Kanden Office Work Co. inc.
Kanden Power-Tech Corp.
The Kanden L & A Co., Ltd.
Kanden Business Support Corporation
Kanden EL Auto System Co., Ltd.
KANDEN GEO-RE Inc.
Kansai Power International Corp.
Kansai Power Venture Management Corp.
Kanden L-Heart Co., Inc.
Kansai Electric Power Australia Pty Ltd.
ENEGATE Co., Ltd.
KINDEN CORPORATIONSan Roque Power Corporation
Ten other companies

1 Safe, Stable Delivery of Products and Services
Our mission and responsibility as a lifeline service provider ········ 11
Initiatives prioritizing safety at nuclear power plants ···················· 13
Providing services as a unified group ············································ 15

2 Progressive Approach to Environmental Problems
Kansai Electric Power Group Environmental Action Plan ············· 17
Status overview of our business activities and environmental load (fiscal 2009) ··· 18
Eco Action (targets and results) ····················································· 19
Becoming a main player in the drive for a low-carbon society ······ 21

3 Proactive Contributions to Development of Local Communities

Report publication dateGroup companies (Consolidated subsidiaries and companies to which the equity method is applied) (as of March 31, 2010)

3
4
5

Initiatives toward a trusted, environmentally advanced corporation ······· 29

Period covered: April 1, 2009, to March 31, 2010.
(Important items from outside this period have also been
included in the report.)
Companies covered: The Kansai Electric Power Co., Inc., andKansai Electric Power Group companies.
Areas covered: economic, social, environmental

Group businesssupport, etc.

Corporate governance ······························································ 10

Initiatives toward the achievement of a sound material-cycle society ···· 28

Scope of report

Integrated energy supply

2

The Kansai Electric Power Group CSR Action Charter·············· 9

By disclosing necessary
information in a fair andtimely manner, andworking constantly to build
enterprise value, Kansai
Electric Power is building astable relationship with ourshareholders andinvestors.

Web The Kansai Electric Power Group’s corporate vision
http://www.kepco.co.jp/corporate/vision/index.html

Information andtelecommunications(IT)

1● To find out more about the Kansai Electric Power Group, werecommend reading the following publications.

Contributing as a member of society ············································ 35
Efforts for regional vitalization ························································ 36

64 Respect for Human Rights, Development of Favorable Work Environments
Respect for human rights ······························································· 37
Promotion of diversity and creation of comfortable workplaces ··· 37

5 Highly Transparent and Open Business Activities
Communicating with stakeholders ················································ 39

6 Strict Enforcement of Compliance
Consciousness raising and autonomous efforts in individual workplaces ··· 41
Advance of information security management ····························· 42

CSR Report
2010

Annual Report
2010

Company
Profile 2010

Describes theKansai ElectricPower Group’s CSR
activities.

Reports the businessresults and financial
position of the Groupto its shareholders
and investors.

Describes Kansai
Electric Power’s
operations.

Web Detailed information on the Group’s CSR and environmental initiatives
http://www.kepco.co.jp/corporate/csr/charter.html
Web site for detailed financial information:
http://www.kepco.co.jp/ir/index.html
Kansai Electric Power Group CSR Report 2010



Message from our President

Formulating the Kansai Electric Power Group Long-term
Growth Strategy 2030, with CSR as a firmly held value
Our unchanging mission

Continue to serve customers and communities
Since its inception, the Kansai Electric Power Group has
provided its customers with a safe and stable supply of goods
and services, principally consisting of electrical power. It has
always been our mission to contribute to the sustainable
development of the Kansai region, providing a solid foundation
for customers’ living standards and regional industrial activity.
This long journey has never been straight or smooth.
Even so, we have remained constantly mindful of our position
as a corporate citizen, and have always striven to fulfill our
responsibilities diligently.
Whether building the Kurobegawa No. 4 Power Station,
developing nuclear energy, or enhancing the Group’s services,
we are constantly tackling new issues. We are striving tooperate in harmony with the environment by adopting clean
fuels and planting forests. We also take part enthusiastically in
local events and festivities, building an open and constructive
dialog with the communities we serve.
Recent years have seen rapid change in environmental
conditions. The momentum toward a low-carbon society is
growing, while the worldwide competition to secure resources
is intensifying and populations are declining in many regions.
In the near future, we can expect to confront changes wehave never experienced before. Yet no matter how much theworld may change, we at the Kansai Electric Power Group willpersevere in bringing the best possible solutions to customers
and communities, in whose lives we continue to play such an
essential role.
It is in this spirit that the Group drafted the Kansai ElectricPower Group Long-term Growth Strategy 2030.

Our corporate social responsibility

Firmly held values

Kansai Electric Power Group CSR Report 2010

FY 2009, as of March 31, 2010

We, the directors and employees of the Kansai ElectricPower Co., Inc., and its affiliated companies, will continue tomaintain a clear vision of CSR for the entire Kansai ElectricPower Group.

Promoting CSR

Each Kansai Electric Power Group employee
is the star of CSR
The key person in moving CSR forward is each and every
employee of the Kansai Electric Power Group. In each
workplace, all employees under their own initiative test a variety
of methods, with guidance from key CSR persons.
I intend to make personal visits to every workplace,
explaining directly and repeatedly to everyone what the CSR
approach is and why it is so important.
At the same time, we are continuing to take every
possible measure to create dynamic workplaces that nurtureand motivate employees, to train employees and to foster a
supportive atmosphere.

Through the CSR ReportCompany name:
The Kansai Electric Power Company, Incorporated
Headquarters:
3-6-16 Nakanoshima, Kita-ku, Osaka 530-8270
Date of establishment: May 1, 1951
Paid-in capital:¥489,300 million
Shares of stock outstanding: 946,340,000
Main business:
Electric power industry
Number of group companies: 60 consolidated subsidiaries, 3 affiliates
accounted for by the equity method
Number of employees: 32,083 (consolidated),
22,143 (non-consolidated)
Electricity sales:
141,600 million kWh
Operating revenues: ¥2,606,500 million (consolidated),¥2,347,400 million (non-consolidated)
Total assets:¥7,116,600 million (consolidated),¥6,275,500 million (non-consolidated)
Power source composition:(Total 152.7B kWh)

15.7B kWh

Renewable energies

1%

10%
Nuclear 45%

Fiscal year-end power sourcecomposition:(Total 40.25M kW)

1.1B kWhHydropower

Hydropower 22%

8.91M kW

Thermal 44%

66.6B kWh

69.4B kWh

Nuclear 26%

10.33M kW

Thermal 52%

21.01M kW

Notes: 1. Power source composition and fiscal year-end power source composition include power received
from other companies (interchange power and pumped-storage hydropower are not included).
2. Due to rounding, the totals may not equal 100%.

We invite frank opinions on our initiatives
One of the purposes of this CSR Report is to foster close
communication with all stakeholders. On the next andsubsequent pages, we are including special features on theGroup’s long-term growth strategy and the challenge tocreate a low-carbon society.
After the special features, this report describes theGroup’s CSR initiatives with as much specific information as
possible, organizing the Kansai Electric Power Group’s efforts
in accordance with the six action principles drafted as a guideto CSR practice.
I invite you to read this report and offer us your frank andunvarnished opinion regarding future issues and any otheraspects of the Group’s CSR profile.

System map (as of March 31, 2010)
Supply area:
Osaka, Kyoto, Hyogo (greater part),Nara, Shiga, and Wakayama prefectures;
portions of Mie, Gifu, and Fukui prefectures

MihamaReinanMaizuru Takahama
MiyazuOhi

Shin-Kurobegawa
No. 3
Kurobegawa
No. 4

Kiso
YomikakiMaruyama

Shin-Ayabe
OkawachiOkutataragi
Keihoku

Yamazaki

Nose
Seiban

Ho

Ina

ku

Higashiomi
Nishi Kyoto
Kisenyama

ga

se

tsu

wa

Minami Kyoto
Shin-ikoma

Legends:

Nanko

SakaikoKansai Energy Center

Tanagawa No. 2

Makoto Yagi
President and Director

Otozawa

Shimokotori.2No
eji . 1
Him ji No
e
Himi
o
Ai
o
Ak

To serve customers and communities well, all employees of
the Kansai Electric Power Group carry out their own tasks
diligently, as required by their own posts. We are committed tosatisfying our customers and other stakeholders and earning
their trust. By accomplishing all of these things, we recognizethat we can drive the Group’s growth and motivate our
employees. This is the virtuous cycle to which we at the Kansai
Electric Power Group aspire.
The basis on which all these achievements become
realizable is corporate social responsibility (CSR)—the
fulfillment of our duties as a member of society. In our longterm growth strategy, this responsibility is clearly recognized
and loudly proclaimed.

Overview of Kansai Electric Power

Kainantrren Gobot cu
irec linedV
0 k sion±25 nsmis
tra

Shigi

Higashi Yamato

Hydropower plant
Thermal power plant
Nuclear power plant

Kinokawa
Okuyoshino
KihokuSubstation
Switching station
Converter station
500 kV transmission
line
Tie point with other power companies
Kansai Electric Power’s supply area

Kansai Electric Power Group CSR Report 2010Management and CSR

Integrating CSR into the management of the Kansai
Electric Power GroupIn March 2010, the Kansai Electric Power Group established the Kansai Electric Power Group Long-term Growth
Strategy 2030. The purpose of this plan is to serve as a compass, keeping the Group focused on its unchanging mission
through the unpredictable times ahead. One of the key features of this growth plan is that it explicitly positions CSR as
Kansai Electric Power Group Long-term Growth Strategy 2030
Our Target State for 2030

the basis for all activities.

2004 Established in March

2004
1964

Established in MarchManagement
Philosophy

Kansai Electric Power GroupThe Establishment ofKanden∗ Services

Our ideal, target
enterprise statehigh-quality,
reasonably priced
electricity
To provide sincere,
attentive service to thebest of our ability
To contribute to thedevelopment andprosperity of the local
community••

CSR Action Charter

2010

Our Target State for 2030
Established in March

Actions the Kansai
Electric PowerGroup has identified
as pillars of its
support for CSR

Internally announced

meet the public’s•To
need for abundant,

The Kansai ElectricPower GroupCSR Action
Principles

Management Vision

Long-term
Growth Strategy

2030

To be No. 1 in customer
satisfaction amongsuppliers of basic dailyneeds, with energy at thecore of our businessIndividual action policy
Each of us will do his/her
absolute best to make thecustomer happy.

Kansai Electric Power Group

Assuming the specificform of a Group that is“No. 1 in customer
satisfaction”

2005 Established in MarchThe Kansai ElectricPower GroupThe medium-to-long-termplans and annual
management plans
should be based on thisstrategy.

CSR Action
Standards∗ Kanden is a nickname for Kansai Electric Power.

Rules specified by
the Group for
specific actions at
the individual levelaccording to six
action principles

Be the best partner
for energy and living

Keeping close ties with ourcustomers at all times over thelong term, we serve ourcustomers with ever-increasinglevels of satisfaction in energy
and modern living.
We are playing a key role inachieving a sustainable,
low-carbon society throughan integrated approach encompassing acceleration of
conversion to low-carbonprocess electricity, focusedon nuclear energy; contributing to energy conservation,
cost reductions and CO2
reductions; and constructionof a Kanden Smart Grid.

Expand service
lineup and global
contributions

Be a main player
in a low-carbon
society

Be a pioneer inthe stable supply ofnext-generationenergyThe new era of a low-carbon
society is rapidly emerging, inwhich resources are higher inprice and increasingly limited.
The Kansai Electric PowerGroup will develop optimalframeworks to serve the needsof this new era, to ensure astable supply of resources andstable energy supplies to Japanand the world.

Pursue best solutions
Taking advantage of the Group’s rock-solid business foundation,
we continually anticipate the needs of each age to deploy optimal
operations for both customers and society.

Rock-solid business foundation
We earn the trust of customers and the community by deliveringhigh-quality electrical power at low cost, with sincere and excellent
service. This business foundation includes the people, facilities andtechnology required to deliver this service.

Firm values
Immediately after Kansai Electric Power was founded in 1951,
its first president, Shiro Otagaki, called for it to maintain a“Maedaregake Spirit” (the spirit of consideration for and service
to others) as a private-sector company. These statements
encapsulate the Kansai Electric Power Group’s approach to what
is now called CSR. In 1964, the formula was rephrased as theManagement Philosophy (the establishment of Kanden services).
In 2004, as the business environment and the Group’s modes ofoperation changed dramatically, the Kansai Electric Power GroupManagement Vision was drafted. At this time the Group clearlyenunciated CSR as an integral part of its management vision in
the Kansai Electric Power Group CSR Action Charter, consistingof six action principles needed to realize its “ideal enterprise state”
as an enterprise that is “No. 1 in customer satisfaction.” Further,in March 2010, the Kansai Electric Power Group established theKansai Electric Power Group Long-term Growth Strategy 2030.
This strategy aims to prepare the Group for unprecedentedchanges, including accelerating movement toward the achievementof a low-carbon society. This strategy also establishes CSR as“firm values,” a part of the ideal or target state of the Group, alongwith the goals of being a main player in a low-carbon society, apioneer in the stable supply of next-generation energies and thebest partner of customers for energy and living. In the future as in
the past, CSR will continue to hold a place in the very foundationof the Group’s management.

The Group’s firm values include a safety culture, which vows to never again see
an accident like that of the Mihama Nuclear Power Station Unit 3, andmanagement that values people, by which we strive to see the other side’s
perspective. We recognize the vital importance of practicing CSR, fulfilling our
responsibilities to the communities in which we do business.

The Kansai Electric Power Group’s corporate vision
http://www.kepco.co.jp/corporate/vision/index.html
Kansai Electric Power Group Long-term Growth Strategy 2030
http://www.kepco.co.jp/corporate/strategy/index.html

Kansai Electric Power Group CSR Report 2010

Kansai Electric Power Group CSR Report 2010Management and CSR

Toward higher customer satisfaction and a lowcarbon society
Deploying the Kansai e-Eco Strategy
Our basic approach toward realizing a lowcarbon society
Global warming is an extremely serious global issue, threatening
natural ecosystems and our way of life in countless ways.
Solving these and other difficult problems requires international
coordination, along with the ability to improve people’s lives anddevelop the economy with a consistent, long-term vision. In theview of the Kansai Electric Power Group, the goal of realizing a lowcarbon society must be pursued through measures that are realistic
and practical.
Specifically, an effective approach to realizing a low-carbon
society must include both demand-side and supply-side measures.
Demand-side measures include installation of high-efficiency heatpumps and other energy-saving equipment, and switching from oil
and gas to low-carbon energy sources such as hydroelectricity. On
the supply side, the Company can switch to low-carbon means ofsupplying customers with the energy they need. By combining these
two approaches, it is possible to create a virtuous cycle leading
toward a low-carbon society.
■ Basic approach to realizing a low-carbon society

Demand side

Demand side

Energy-conservation
measures

Shifting to
low-carbon energy

Supply side

Supplying electricity
via low-carbon processes

Realization of a low-carbon society

What is the Kansai e-Eco Strategy?
The Kansai e-Eco Strategy is one of our measures for long-term
growth as a main player in a low-carbon society, as spelled out
in Kansai Electric Power Group Long-term Growth Strategy 2030
announced in March 2010. Execution of the three measures listed
below constitutes the Kansai e-Eco Strategy

From Kansai to the world: promoting globalscale initiatives
In addition to the Kansai e-Eco Strategy, a low-carbon strategy
focused on the Kansai region, the Group is advancing numerous
activities abroad and developing a series of leading-edge
technologies. Through these efforts, the Group’s aim is to contributeto the realization of a sustainable, low-carbon society on a worldwide
scale.
(For details, see pages 21 to 27.)

❶ Accelerate conversion to low-carbon electricity❷ Contribute to energy conservation, cost reductions
and CO2 reductions by customers and society.
❸ Construct the Kanden Smart Grid.
The Kansai e-Eco Strategy includes solutions from both the supply
and demand sides. This strategy represents an advance on the New
ERA Strategy, established in 1995, focusing on the realization of alow-carbon society and the construction of a Kanden Smart Grid.

Measures included in the Kansai e-Eco
Strategy❶ Accelerate conversion to low-carbon electricity
To reduce the amount of CO 2 its customers emit as they use
electricity, Kansai Electric Power must first supply those customers
with low-carbon electricity. The Kansai Electric Power Group isaccelerating supply-side measures to shift to low-carbon energysources.
Specific measures are implemented by maintaining andimproving the utilization of nuclear energy while ensuring safe
and stable operation, putting existing plants to more efficient use,
and installing new nuclear generating equipment and replacing
relevant equipment. In addition, the Group is introducing renewableenergies (see page 23), promoting customers’ use of solar powerand expanding hydroelectric operations. Moreover, the Group is
improving the efficiency of thermal energy and working to balance
supply and demand.
As a result of all these efforts, renewable and other non-fossilfuel energy sources are expanding. These sources, which accounted
for roughly 50% of the Group’s energy production in FY 2008, areexpected to rise to between 60% and 70% by 2030.
Note: Includes electric power purchased from other companies (other thaninterchange power and pumped-storage hydropower).

The Kansai Electric Power Group believes that customers’ andsociety’s need for low-energy, low-cost, low-CO 2 solutions will
increase dramatically.
To that end, the Group is supporting customers’ energysaving efforts while introducing high-efficiency heat pumps andother devices that make effective use of solar-heated air. By
recommending these devices, which utilize low-carbon-processelectricity described in ❶ above, the Group is moving forward withefforts to enhance customer satisfaction while realizing a low-carbon
society.

Kansai Electric Power Group CSR Report 2010

Reducing the amount of CO2 released when electricity is consumed
certainly requires ❶ acceleration of the shift to low-carbon-processelectricity and ❷ contributing to customers’ and communities’ ability
to reduce energy consumption, costs and CO2 emissions. However,this goal also requires something to link these two together: a highefficiency, high-quality, highly reliable electricity distribution system.
The Kansai Electric Power Group is using new technologies suchas data communications and storage battery technology to build aradically new power grid, bringing added comfort to customers alongwith the realization of a low-carbon economy.
In this and many other ways, the Group is joining hands witha wide range of partners to move forward with the Kansai e-Eco
Strategy, to shift the region to a low-carbon basis over the medium
and long terms.

—————The Kansai e-Eco Strategy—————❷ Contribute to energy conservation, cost reductions
and CO2 reductions by customers and society❸ Construct the Kanden Smart Grid

■ The Kansai Electric Power Group’s approach to the achievement of a low-carbon society

The Kansai e-Eco Strategy■ Raising the efficiency ofthermal power plants■ Raising the ratio of nuclear power generation◆ Developing technology toforecast solar power output■ Actively introducing new
forms of energy such as
biomass

CO2 reductions by customers and society◆ Construct the Kanden Smart Grid

■ Supporting and expandinghydroelectric power generation◆ Developing technologies to control supply
and demand using storage batteries■ Promoting the expansion of solar
power generation

New measurement systems

Legend ■ Accelerate conversion to low-carbon electricity● Contribute to energy conservation, cost reductions andStorage cells◆ Rendering energy use visible◆ Making power distribution systems
more sophisticated● Promoting the use of high-efficiency
heat pumps and other devices◆ Rendering energy use visible● Expanding the adoptionof electric vehicles

IH cooktops

EcoCuteRealization of a sustainable,
low-carbon society in Kansai
Activities abroad

Development ofadvanced technologies○ Transfer of environmental technologies to developing
countries, implementation of renewable energy projects○ Afforestation projects○ Application of the Kyoto Protocol mechanisms○ Development of technologies contributing to low energy consumption,
low costs and low CO2 emissions for customers○ Development of technologies to construct the Kanden
Smart Grid
○ Development of technologies leading to next-generation electrical
power generation and realization of a low-carbon society

Contributing to the realization of a sustainable, low-carbon society on a global scaleKansai Electric Power Group CSR Report 2010Management and CSR

4. Respect for Human Rights, Development of Favorable
Work Environments
5. Highly Transparent and Open Business Activities
6. Strict Enforcement of ComplianceKansai Electric Power Group CSR Action Charter
http://www.kepco.co.jp/corporate/csr/charter.html

The Kansai Electric Power GroupCSR Action Standards
Directors and employees recognize at all times that they are
members of the Kansai Electric Power Group, always maintaining
the propriety and dignity appropriate to that station and acting in
the best interest of society. In carrying out the Group’s operations,directors and employees maintain safety as their first priority, strictly
comply with all relevant laws, corporate ethics and social rules,
conduct their duties diligently, and make every possible effort tomake the customer happy.
Carrying the Conduct Card
Every employee has been issued
with a Conduct Card to carry, which
is printed with the Kansai ElectricPower Group management vision and
CSR Action Standards. Employees
fill in their own action targets on thereverse side and use the card tocheck their actions and targets intheir everyday business activities.
Kansai Electric Power Group CSR Action Standards
http://www.kepco.co.jp/corporate/csr/standards.html

Kansai Electric Power Group CSR Report 2010

Kansai Electric Power Procurement Activities
http://www.kepco.co.jp/english/procurement/index.html

Risk management
Management of risk accompanying businessactivities
In line with the Kansai Electric Power Group Risk Management
Rules, risk accompanying business activities is, in principle,
managed autonomously by the executive section of each respective
business division. In cases of risk deemed to be important acrossmultiple organizational levels, risk management is strengthened
by determining, when necessary, risk management items by fieldof specialty, after which experts in each field provide advice andguidance to the various business execution divisions.
In addition, a Risk Management Committee has been formed
to manage risk comprehensively. The Committee strives to manage
risk accompanying Group business activities at the level deemed
appropriate in each case. Based on this risk management system,
the Company carries out appropriate financial reporting and ensures
the trustworthiness thereof, as stipulated in the Financial Instruments
and Exchange Law.

Kansai Electric Power takes proactive steps to enhance its corporate
governance capability on an ongoing basis. Board of Directors
meetings are convened regularly once each month, complemented
by extraordinary meetings held when deemed necessary, and it ishere that matters of essential importance to Group management aredeliberated and decided. In addition, all Directors are continuously
supervised through regularly issued reports on the execution statusof the duties incumbent upon them.
In executing important business matters, the Company
implements swift and proper decision-making by convening meetingsof the executive directors regularly—in principle once every week—inorder to implement efficient and effective corporate management.
The system of executive officers was introduced in order toseparate the executive and supervising functions of management
and to boost the speed and efficiency of business execution.

Assurance of transparency and soundness
Kansai Electric Power uses a system of Corporate Auditors
to audit continuously and effectively the appropriateness andadequateness of Directors in the performance of their duties. The
Corporate Auditors attend important meetings, including Board

Kansai Electric Power has established an Internal Auditing
Committee whose functions are to share and deliberate a broad
range of management issues relating to quality and safety, secureviews and information from outside the Company and, from an
impartial and specialized standpoint, maintain proper internal auditingof the Kansai Electric Power Group as a whole.
An Office of Internal Auditing, consisting of 41 members, hasalso been established as an organization specially assigned toperform internal auditing. The office conducts regular auditing of risk
management systems, risk management status, etc., and submits
proposals or reports to the Executive Meetings concerning internal
auditing plans and their results. At the various work areas, activities
needed for making improvements in light of the auditing results
are carried out in an ongoing quest to ensure proper business
management.
As the vital overseers of corporate governance, the Office ofInternal Auditing, Corporate Auditors, and Accounting Auditors
coordinate, at their discretion, in the performance of auditing duties.
They also maintain close ties for exchanging views regarding auditing
results, etc.

General Shareholders’ Meeting
Appointment

CSR promotion system

Board of Directors (Directors)

Submission or reporting

Appointment

Audit

Corporate Auditors(meeting)<Decision-making and supervision pertaining to important management matters>

The CSR promotion system centering on the
CSR Promotion Council
Kansai Electric has a CSR Promotion Council in place, chaired by
the Company’s president. These meetings establish the generalpolicies and activities that guide the entire Group in promoting
CSR, provide general coordination of specific activities, and serve
to encourage implementation. Issues of a specialized nature aresent to committees, such as the Compliance Committee and theEnvironmental Board, for deliberation. Policy is decided through theaccumulation of the various deliberations of these committees andsubcommittees.
The policies mooted at the CSR Promotion Council arecommunicated to each sector and operating location, and activities
are deployed at each.
Other companies in the Kansai Electric Power Group, however,conduct CSR autonomously, exchanging information and opinions
as required, thereby strengthening liaison among Group companies.

Enhancement of internal auditing functions

Approval
ReportPresident (Executive Meeting)

Auditing Office<Execution of business based on policies set by the Board of Directors (organization for discussing execution of important business duties)>
Response

Committeeorganization<Fine-tuning of plans,
inspections anddeliberations>

ReportInquiry

ReportDetermination and instructionof management measures

Business execution divisions(operating sectors, internal control sectors and subsidiaries)

Accounting
auditing
Audit
reportInvestigation

Accounting Auditors

Approval ofinternal auditing
plans, etc.

Etc.

Monitoring /evaluation

Audit report
Internal audit

Appointment

3. Proactive Contributions to Development of Local
Communities

of Directors meetings and Executive Meetings, where they state
their opinions, listen to explanations by the Directors pertaining tomatters of importance to Company management, and look into
the business and assets status of the Company’s main bases ofoperation and Group companies. Through auditing, the Corporate
Auditors ensure the transparency and soundness of the Company’sbusiness operations. In addition, meetings are regularly convened
between the Corporate Auditors and Representative Directors, et al.,as a way of promoting exchanges of opinion.
To support the duties of the Corporate Auditors and Board ofAuditors, an Auditing Office (13 members) has been established.
This is a specially appointed organization in charge of actual auditing
duties, operation of Board of Auditors meetings, etc. To ensure the
Office’s independence, it functions directly under the Corporate
Auditors and does not perform any other duties relating to the
executive functions of the Group. Outside officers have also been
appointed: three Directors and four Corporate Auditors, the latter
representing a majority among the seven Corporate Auditors in total.
Outside Directors and outside Corporate Auditors have no special
rights or interests in the Company and retain independence.

Internal Auditing
Committee

2. Progressive Approach to Environmental Problems

Assurance of appropriate execution ofbusiness matters

Nuclear Power
Integrity Reform
Committee

1. Safe, Stable Delivery of Products and Services

1. Highest priority to the safety, maintenance andimprovement of quality and technical strength
2. Being environmental-friendly
3. Establishment of fiduciary partnership
4. Transparent, open business activities
5. Full complianceKansai Electric Power has a number of committees, such as themeetings of the executive directors, the CSR Promotion Council andthe Risk Management Committee, which oversee and ensure theappropriate execution of duties. These committees operate under
the supervision of the Board of Directors, which is appointed at theGeneral Meetings of Shareholders. The Company also employs
corporate auditors, a Board of Auditors and accounting auditors.
From each of their professional perspectives, these auditors confirm
that the Company executes its operations in an appropriate andlawful manner. This system constitutes the foundation of Kansai
Electric Power’s corporate governance system.

Risk Management
Committee

CSR Action Principles

Basic system of corporate governanceCompliance
Committee

Behavioral Standards for the Procurement Activities

The Kansai Electric Power Group aims for further growth basedon a firmly held vision of CSR. Recognizing the importance oftransparency and soundness of business operations in achieving thisgoal, the Group aims to strengthen its corporate framework.

CSR Promotion
CouncilAiming at the best suited formulation, maintenance and operationof our equipment, the Purchasing Department of Kansai EP
timely and ecologically procures equipment, materials andservices that excel in safety, quality and price. Through theseprocurement activities, we would like to drive forward corporatesocial responsibility.
As our procurement activities are supported by all of you,our valued business partners, we believe that working to build
mutual trust and forging the stronger-than-ever partnership will
directly lead to the promotion of CSR activities. The Purchasing
Department of Kansai EP will set and practice "Behavioral
Standards for the Procurement Activities." We would like you
to understand the "Behavioral Standards for the Procurement
Activities" and practice "Requests for the Suppliers" in aproactive manner.

Corporate governanceApproval

The Kansai Electric Power Group’s business activities draw
support from customers, regional communities, business partners,
shareholders, investors, employees and many other segments ofsociety. This trust the Group earns from all these communities is thevery bedrock of the Group’s operations, without which we would
be unable to maintain sustainable growth and fulfill our mission.
By fulfilling its responsibilities as a member of the community andfaithfully meeting the expectations of the community as a business,
the Group contributes to sustainable development while reinforcingthat hard-earned trust. Based on this awareness, the Kansai ElectricPower Group deploys six action principles in all aspects of its
operations, meeting its responsibilities to society as an enterprise.

CSR Procurement Policy

Submission

The Kansai Electric Power GroupCSR Action Charter

Office of Internal Auditing

Nuclear Power
Integrity Reform
Verification Committee

Internal auditing
reportKansai Electric Power Group CSR Report 2010

0

1

Safe, Stable Delivery of Products and Services

Our mission and responsibility as a lifeline
service provider

The “best mix” of power sources and its
stable, long-term supply
Because Japan is poor in natural resources, it has a fragile energy
structure that is dependent on imported or specific energy sources.
Kansai Electric Power has already made efforts to build up a
combination of multiple energy sources to avoid being dependent on
any specific one.
Specifically, Kansai Electric Power puts safety assurance first
while engaging in the comprehensive consideration of energy
security, environmental impact, and economics. The Group seeksa well-balanced, optimal combination of power sources based on
nuclear energy, including the nuclear fuel cycle, and also including
other energy sources such as thermal and hydroelectric power.

With respect to nuclear fuel procurement, while the Company
continues to rely on long-term contracts as the mainstay of its
procurement operations, it is also diversifying its procurement
channels. Kansai Electric Power is purchasing fuel from a wider
range of sources, and is participating in uranium-mine development
projects to protect its procurement interests. For example, in recent
years the Company has joined a mine development project in
Kazakhstan and a uranium enrichment project* with AREVA NC, aFrench nuclear energy company.
* Enrichment project: SET, a subsidiary of AREVA NC, will build and operate theenrichment facility in the southern French commune of Pierrelatte. When fullfledged operation begins, the plant’s production capacity is expected to equal
some 13% of global demand.

Training the personnel required for the safe,
reliable provision of products and services

Preparing for natural disasters and influenza outbreaks:

To enable us to provide products and services in a safe, reliable
manner, Kansai Electric Power recruits staff yearly on a continuous
basis and implements continued, systematic, repeated educationand training with the aim of nurturing specialist personnel.
We are promoting a range of initiatives to ensure that skills
and expertise are maintained and passed on, including an expert
technician system,* so that the skills and expertise built up over theyears will be steadily passed on and improved throughout the entire
Group.

Based on our mission of the stable provision of electric power,
Kansai Electric Power is engaged in initiatives for “strengthening
facilities to withstand disaster” and “establishing a disaster control
system to enable rapid recovery” as basic measures for dealing withnatural disasters such as earthquakes, typhoons, snow damage,heavy rain, and lightning damage. Also, in recent years the Company
has been pursuing measures in preparation for outbreak of a newstrain of influenza.

* Frontline staff who possess high-level technical expertise and skills particular to
the electrical business, as well as the enthusiasm and leadership required topass these down to the next generation, are designated as “expert
technicians.” They instruct their juniors in the workplace about techniques andskills, so that they are properly maintained and transferred. As of May 2010, a
total of 181 people have been certified.

To provide higher-quality electric power■ Power source composition comparison

Composition ratio of power generation facilities at the endof the fiscal year

(Unit: %)2009(results)

26

2019(planned)
(FY)

28

11

20

21

13

10

20

12

9

To provide electric power safely and stably, Kansai ElectricPower works to operate power grids that link power stations
with consumers reliably as well as for the optimal configuration offacilities. We are also engaged in rigorous efforts to prevent accident
reoccurrence, as a result of which Kansai Electric Power’s electricity
achieved one of the world’s highest levels of power supply reliability
in 2009.
■ Annual power interruption time per household

12
Coal

Nuclear20

Oil/other

LNG

Oil/
other

Power source composition ratio
2009(results)

45

15

Pumped- Convenstorage tional
Hydro Hydro

50

23

Nuclear

17
Coal

200

(Power interruption includes stoppages due to accidents and work)

Pumped- Conven- Renewablestorage tional
Hydro Hydro Energies

6

19
LNG

4

Due to the Great Hanshin-Awaji
Earthquake

100

9
1

2019
(planned)(FY)(Min/household)Due to typhoon

1

Due to typhoon

9 min

8
2

1

0

83

85

87

89

91

93

95

97

99

01

03

05

07

Safety initiatives in the gas business
Kansai Electric Power, a natural gas supplier in almost all
Kansai metropolitan areas, takes all possible measures
to ensure the safety of customers, including ensuring thesafety of customer appliances, in compliance with the Gas
Business Act and relevant regulations. For example, oursecurity system consists of 14 operation bases including
power plants and electric power system centers. In addition
to statutory inspections, we carry out security tasks suchas periodic inspections of customer gas equipment basedon our own management standards. We are also improving
regular education and training, including through companywide emergency responses to enhance our technicalexpertise.
We also offer safety presentations to customers. At
these sessions, customers learn how to take the first steps
themselves in the event of a gas leak, and practice shutting
off gas valves. Through explanations and group practicesessions such as these, customers gain a united sense of
purpose, and redouble their efforts to ensure safety.

09

Stable fuel procurement
In the procurement of fuel for thermal power plants, we are aiming
to optimize our purchasing balance of crude oil, LNG, and coal whileaccommodating changes in electric power demand. For LNG, we arediversifying suppliers and contract terms, and making efforts to build
up an integrated system that extends from gas development andproduction to importing and receiving, by acquiring upstream equity
and our own LNG transport vessel, LNG EBISU. To support flexible
procurement, we plan to introduce three dedicated coal carriers
to our fleet, and acquire additional transport capacity in oil, for fueltransportation to our thermal power plants. With the implementationof these various measures, we expect to secure stable, long-term
fuel supplies while reducing cost.

11

Kansai Electric Power Group CSR Report 2010

The Company is continuing to develop and install newtechnologies and construction methods to ensure that accidents areprevented and to enable swift recovery in the event an accident does
occur. In addition, Kansai Electric Power is carrying out quantitativeevaluations of the state of deterioration of its facilities, which wereconstructed during the period of high economic growth in the 1950s
and 1960s, in order to deal reliably with the aging of these facilities.
The Company is implementing the efficient, planned preservation andrepair of facilities by such means as inspections and determination of
repair periods in accordance with their conditions.
The Company is also striving to ensure a fully operational
supply system in terms of both speed and quantity in response to
the demand from society, responding reliably to customer needs
and contributing to the further development of the economically
expanding Kansai region.

1■ Strengthening facilities to withstand disaster:
preparing for a wide range of disasters
Thanks to lessons from past natural disasters, electrical distribution
equipment is today designed to sustain minimal damage even in theevent of earthquake, typhoon or other such occurrence. Also, thepower distribution system covers the Kansai region like a fine meshnet. In the unlikely event of damage occurring to some of the routes
on this network, power can be supplied quickly from alternative
connecting routes.

■ Disaster control system to enable rapid recovery:
comprehensive preparations for every eventuality
In the event that power supply facilities are damaged as the resultof a disaster, or upon actually detecting such damage, a disaster
control system, as described below, will immediately be establishedto deal with the situation. The Company gathers and distributes
information both fromwithin the Group andfrom other sources, anddetermines recovery
policy, in promotion ofrecovery activities.
Emergency Disaster
Measures Headquarters at
the Company’s head office■ Disaster control system
Organization

Criteria for establishment

Disaster Alert Headquarters

Cases where a disaster such as a typhoon is predicted
Occurrence of earthquake with an intensity of 6-lower orgreater on the Japanese scale within power supply area
Other necessitating circumstances

Emergency Disaster
Measures Headquarters■ Preparations for a predicted large-scale earthquake(FY)
Notes:
1. Includes electric power received from other companies (interchange power and pumpedstorage hydro- power are not included).
2. Due to rounding, the totals may not equal 100%.

continuing to deliver electricity regardless of crisis

Training in shutting off gas valves in an emergency

The Tonankai and Nankai earthquakes predicted to occur during
the first half of the 21st century are a matter of concern, as is thepotential occurrence of an earthquake with an epicenter in the
Kansai region.
In preparation for these major earthquakes, the departments
concerned are collaborating to investigate matters such as measuresfor disaster mitigation and rapid recovery as well as logisticalsupport. The Company is also engaged in repeated drills to simulate
major earthquake damage, with the aim of establishing a robust
disaster prevention system.

■ Preparing for an outbreak of a new strain of influenza

Joint training sessions with customers

In April 2009, an outbreak of a new strain of influenza, A/H1N1,
occurred. Concern is rising that an even more virulent strain of
influenza will emerge and spread in the near future.
To prepare for such an event, Kansai Electric Power has drafted
a plan to ensure continued operation of vital systems and services
in case of a new-strain influenza outbreak. Even in the event of apandemic, systems are in place to ensure customers a stable supplyof electricity.

Kansai Electric Power Group CSR Report 201012

Safe, Stable Delivery of Products and Services

Initiatives prioritizing safety at nuclear power plants
Necessity and features of nuclear power

Safe operation of nuclear power plants■ Guaranteeing energy security■ Attitude to safety at nuclear power plants

Japan is an energy-poor country: if nuclear power is excluded its
self-sufficiency rate is only 4%, with the remaining 96% imported
from overseas (figures from Ministry of Economy, Trade and Industry’s
Energy White Paper 2010). Also, even though a spike in energy
prices (such as in the one in FY 2008) did not occur in FY 2009,
similar rapid changes in conditions cannot be ruled out in the future,
given the anticipated expansion of demand for energy in developing
countries. This suggests that it is necessary to secure resources inorder to ensure the reliable provision of electricity.
Unlike crude oil or natural gas, the uranium used in nuclear
power plants is available in many parts of the world, and mostnations that possess it are politically stable, contributing to stabilityof supply. The fact that uranium contains a high concentration ofenergy also contributes to ease of transportation and storage as anenergy stockpile.
In addition, reprocessing spent fuel from nuclear power plants
recovers the useful resources of uranium and plutonium, which also
facilitates in securing resource stability.

Kansai Electric Power is implementing a variety of measures tominimize risk and ensure sufficient safety at its nuclear power plants.

■ Nuclear power generation does not produce CO2
emissions
As nuclear power generation utilizes the heat produced whenuranium undergoes nuclear fission to generate electricity, like solar
and wind power generation, it produces no CO2 emissions when
producing electricity. This makes it an extremely useful in curbing
global warming.

■ Plu-thermal initiative
Spent uranium fuel from nuclear power plants is sent to reprocessing
plants and its reusable substances (uranium and plutonium)
recovered for use as MOX (mixed oxide) fuel. The process in which
existing nuclear power plants use this fuel is known as the “pluthermal” process.
Kansai Electric Power is moving forward with plans to implementa plu-thermal system at Takahama Power Station beginning in FY
2010. In April 2010, marine shipments of the required MOX fuelbegan from the fuel-fabrication company’s plant in France.

■ Design and function to maintain safety
The facilities at nuclear power plants utilize the concept of multiple
protection to confine radioactive materials. To start with, the facilities
are constructed to even stricter standards than those laid down
by law, and their designs include fail-safe systems 1 and interlock
systems2, premised on the fact that machines break down andhuman beings make mistakes, in order to prevent a malfunction or
human error from resulting in an accident. In the unlikely event of amalfunction occurring, safety measures are implemented at multiple
levels, and multiple safety functions come into action: the abnormality
is detected at an early stage and the nuclear reactor shuts down
automatically, and large amounts of water are injected to cool thefuel and radioactive materials being contained within fivefold walls.3
Notes:
1 Fail-safe systems are designed to shift in the direction of safety in order
to avoid dangerous situations should a mechanical malfunction occur.
2 Interlock systems utilize a system whereby a mistaken operation is nottransmitted to related equipment even in the event that a human being
makes a mistake when operating it.
3 Fivefold walls consist of five layers of walls to contain radioactive
substances, and are used in pellets, cladding pipes, nuclear reactor
pressure vessels, reactor storage vessels, and reactor buildings.

■ Safety measures in nuclear power plants■ Stringent implementation of measures for long-lifeusage
In order to ensure long-life usage of its facilities, Kansai ElectricPower conducts technical inspections of nuclear power plants thathave been in operation for more than 30 years, and has establishedthe Long-term Maintenance Management Policy to be reflected inpreservation activities. These technical inspections for aging-relatedchanges are re-evaluated every ten years.
In November 2010, Mihama Power Station Unit 1 will celebrate
its 40th year of operation. In view of its operating period, Kansai
Electric Power conducted a technical reevaluation and, based on
this evaluation, drafted a long-term maintenance and management
policy. The Company also submitted a Request for Approval of
Changes to Technical Specifications to Ministry of Economy, Tradeand Industry (METI) with respect to this policy, and submitted
an Evaluation of Long-Life Usage Technology to related local
governments. Later, METI conducted an audit of the plant,
including an on-site inspection, resulting in an Approval of Changes
to Technical Specifications from the Minister in June 2010. The
Company decided on an operating policy not to exceed 10 years,
within the scope of the long-term maintenance and management
policy, and distributed a report thereon to related local governments.

Safety design
withleeway built inFail-safe
systems

In operation for 30 years

Technical examinationofaging-related changes
Identification of
aging-related
matters to beaddressed

Interlocksystems

Shutdown
Should a malfunction
occur, a control rod isimmediately inserted
into the reactor toshut it down.

Cooling/containment
An emergency reactor
core cooling system
is used to cool the
nuclear reactor, andradioactive material iscontained
withinfivefold walls.

1

To improve employees’ skills in operating, maintaining and inspecting
nuclear power plants, the Company launched education and training
programs for employees at the institution below.

■ Training at the Nuclear Energy Training Center(Takahama, Fukui Prefecture)
Using realistic mockups of actual equipment installed in nuclear
power plants, employees practice maintenance and inspection. To
ensure that past troubles are never repeated, the parts that werefactors in previous failures are used in instruction, aiming to prevent
human error, prevent abnormal conditions and detect any problems
early. Because this training program provides a glimpse of theinternal structures of nuclear power plants, which cannot normally beentered and viewed, it attracts some 4,000 visitors each year.

Approx. every 10 years

Re-evaluation oftechnical examinationof aging-relatedchanges
Identification ofRegular
Regular
Regularaging-related mattersinspections, inspections, inspections, to be addressed (in Continuation
etc.
etc.
etc.
consideration of
newly gathered dataon preservation, etc.)

Application

Long-term
MaintenanceManagement Policy

In the unlikely event ofa malfunction

Teaching safety awareness■ Flowchart of initiatives in long-life usage(multiple protection)

Design and systems

Power was making significant progress in its improvement activities.
In light of this objective finding by an international agency, Kansai
Electric Power will continue to engage in further improving safety andreliability with the aim of building up a firm culture of safety.

Review of Long-term
Maintenance Management
Policy■ Evaluation of power plant operational status by IAEA
OSART
From January to February 2009, Kansai Electric Power was
subjected to a review by the IAEA’s Operational Safety Review
Team (OSART), at Mihama Power Station. OSART offered highpraise for the Company’s measures to build a robust safety culture
and submitted a set of 13 recommendations and suggestions forfurther improvements. Kansai Electric Power immediately began
improvements inaccordance withthose 13 issues,
publishing theresults in August
2009. From May
to June 2010,
the review teamconducted afollow-up visit,
confirming that
Kansai Electric

Practicing disassembly inspection of valve types used in actual
nuclear power plants■ Training at the Nuclear Power Operating Support
Center (Ohi, Fukui Prefecture)
The Nuclear Power Operating Support Center offers a suite of highly
advanced training facilities. An operational training simulator enables
trainees to review a wide range of operating scenarios and evenwatch video of their own training. By reviewing and experiencing
realistic simulations of abnormal scenarios, operators of nuclear
power plants can bolster their skills.
The simulator is used not only for training, but also for manyother tasks in operation that cannot be confirmed on actual plant
equipment. For example, it is used to check information whenrevising operating manuals.

Since its opening, the center has trained over 2,000 operators

Meeting between OSART and Kansai Electric Power.

13

Kansai Electric Power Group CSR Report 2010

Kansai Electric Power Group CSR Report 201014

Safe, Stable Delivery of Products and Services

Providing services as a unified group
Your trusted partner in energy and living
As a comprehensive provider of electricity and other forms ofenergy, as well as a variety of information and telecommunications(IT) and lineup of business providing comfort and safety services
in daily life, the Kansai Electric Power Group interacts with thepeople of the Kansai region in countless ways. These interactions
enable us to grow closer to our customers and further to integrate
our electricity and other Group operations as a total solution. By
meeting and exceeding our customer needs, our aim is to become
our customers’ trusted partner in energy and living, for tomorrow’s
low-carbon society.
■ How the Kansai Electric Power Group aims to grow as

an integrated corporate group

Comfort and
Safety services
in daily life

Electricity operations(core business)

Information andtelecommunications(IT)

Integrated
energy supply

Kansai Electric Power has implemented customer satisfaction
surveys continuously since 1993. These are performed via a researchcompany, and customers who have applied for the Company’s
services are asked to give their impressions of our staff and evaluate
their tasks. The results are reported appropriately to the sales offices
concerned. In this way we are able to objectively assess the service
levels of our sales offices, verify the results of efforts to improve
our work, and discover areas for further improvement. These also
provide useful information for setting targets and improvement
actions for subsequent business periods as we strive to further
improve customer satisfaction levels.
In addition, Kansai Electric Power Group companies also carryout regular customer satisfaction surveys, the results of which leadto improvements in existing service content and the developmentof new services, as we endeavor to further improve the level ofcustomer satisfaction as a unified group.

Toward improvement of customer service
To provide ever greater levels of customer satisfaction, the Kansai
Electric Power Group ensures thoroughgoing, customer-oriented
business management and is engaged in effective customer service
operations from receipt of applications from customers to meterreading and payment collection.
The Group is also providing an array of new, Internet-based
services. By offering the best possible contract terms and modes ofenergy use, the Group supports reduction of energy use, costs andCO2 emissions for all customers.

■ Improving services by listening to customer
opinions
Kansai Electric Power collates and analyzes customer opinions
gathered through the call centers and Electric Life Consultation
Desks established to provide points of contact with customers. The■ Customer service improvement philosophy

Collection of opinions/comments

Value-added services
Service improvement

Satisfaction survey

Base operation
Improvement of base operation expertise

Moves toward a low-carbon society are growing increasingly
vigorous. Under revisions to the Energy Conservation Law and
Basic Law for Prevention of Global Warming of April 2010, moreenterprises than ever are being required to reduce energy use andCO 2 emissions. Faced with highly stringent medium- and longterm targets from the national government, companies in Japanare strongly conscious of the need to reduce emissions of CO2 andother greenhouse gases. Additionally, given the currently uncertain
economic outlook, customers increasingly need to improve both
environmental and economic performance. To solve these problems
confronting many of its corporate customers, the Kansai ElectricPower Group is working in unison to propose effective energy
solutions. We propose optimal energy systems that combine, forexample, Kansai Electric Power’s low-CO 2-emission electricity
service with highly energy-efficient electrical equipment, such as heatpumps that use renewable energy sources. In these and other ways
the Kansai Electric Power Group is offering energy solutions that suitthe lifecycles of customers’ existing equipment.

The Kansai Electric Power Group delivers total solutions, combining
electricity and other services that only the Group can provide. In
information and telecommunications services, K-Opticom Corp.
offers a combination of Internet, telephone and TV services underthe eo brand. In March 2010, this company launched eo Mobile,
a new suite of services including a public, wireless LAN service
that is scheduled to have one of the nation’s largest collection ofaccess points. In December 2009, by acquiring a major stake in
MID Urban Development Co., Ltd., the Kansai Electric Power Grouphas enhanced its ability to offer fully electric homes appropriate
for a low-carbon society. By combining totally electric homes
and IT services such as these with home security, nursing care,health management support and other services related to better
modern living, the Kansai Electric Power Group is drawing closer
to its customers to offer services tailored to each customer’s
stage in life and mode of living. In this way the Group supports
safety, peace of mind, comfort and convenient living for all its
customers.

By using the environmentally friendly EcoCute, the Group is
expanding its efforts to promote totally electric homes that aresafe, convenient and economical, contributing to lower energy
consumption, lower costs and lower CO2 emissions by customers
and society.
We also deal with inquiries about totally electric homes via
telephone calls from the Electric Life Consultation Desks and visits
by staff, responding swiftly to customers’ needs in line with theirequipment. In addition, we are working with external partners
such as house builders, developers, and local dealers to gain theirunderstanding of the advantages of totally electric homes andencourage them to recommend such residences to customers.
Thanks to these steady initiatives, as of March 31, 2010 the numberof totally electric homes reached some 770,000 in the Kansai
Electric Power supply area, and as of March 31, 2010 some 1.07
million households were using the EcoCute and other electric water
heaters.*
In the future, we will focus on activities to promote the “totallyelectric homes plus” plan, combining the totally electric home withhighly environmentally friendly products and services such as solar
power generation and electric vehicles.

■ Total solutions focused on electricity

0354

2006.3458

562

The needs of today’s customers are growing increasingly diverse.
To respond effectively to these requirements, Group companies
such as Kanden Energy Solution Co., Inc. are offering all-inclusive
utility services, including equipment planning, design, installation,
ownership, operation, maintenance and overhaul. Another service
these companies are actively promoting is an energy management
service, which assists customers in finding the optimal use of energy
for their needs.

KANDEN FUDOSAN CO., LTD.

Utility Service

Optical fiberInternet connection,
optical fiber telephone,
optical fiber TV

Totally electric home

Home security,
health management
support, long-termcare, etc.

Facility
Service
K-Opticom Corp.

● Alternative to full-timeelectrical engineer● Management of facilities ingeneral

MID Urban
Development
Co., Ltd.

774

Kanden Security KANSAI Medical Net
Co., Inc.
of Society, Inc.

Kanden Joy Life Co., Ltd.

Sales of Gas
and Fuel Oil● Gas/fuel oil sales● On-site energy service

2007.32008.32009.3types of energy needs,
we provide
comprehensive bestsolutions for utility
equipment in addition
to individual services.

EnergyManagement
Service● Surveys of energy-use status andproposals for improvement● Regular reports under the Energy

Conservation Law● Production of medium-term plans and services

including participation by an energy manager(1,000 homes)

679■ Further development of energy solutions● As well as meeting all■ Increase in number of totally electric homes

800

1■ Development of energy solutions* The number of contracts for nighttime power supply used for electric water
heaters, etc., in our supply area

400

Kansai ElectricPower Group

Providing solutions in the corporate field

The EcoCute is a highly efficient water heater system that employsa heat pump mechanism to raise the temperature of water byusing heat contained in the air. It provides outstanding energysaving and environmental performance, using only one third of thepower required by existing electric water heaters. It is included ingovernment-proposed initiatives, and its further market penetration
was mentioned in the Plan to Achieve the Targets of the Kyoto
Protocol as a trump card for measures to curb global warming.
Kansai Electric Power is disseminating information to customers
on how the EcoCute can work to their advantage, including its
outstanding features, and we are striving for its widespread adoption.

■ Example of total solutions based on the totallyelectric home

■ Promotion of totally electric homes

Providing total solutions by combining excellent
Group services, with a focus on electricity

15■ Implementing customer satisfaction surveys

Providing lifestyle solutions

Group businesssupportCustomercustomer needs identified in this way are reflected in improvements
to the value of products and services. Kansai Electric Powerlaunched an inquiry service to notify customers of the amount ofelectricity they use (see page 24), and made several improvements,
including reform of records provided to customers.

■ Promoting widespread adoption of the EcoCute2010.3

ESCO Service● Comprehensive services inenergy-efficient equipment, fromdesign and installation to operationand maintenance, as well as
measurement, testing and warranty ofenergy-saving effectiveness* Results for the Kansai Electric Power supply area, including small properties
such as studio apartments.
* Survey by Kansai Electric Power. Figures are cumulative.

Kansai Electric Power Group CSR Report 2010

Kansai Electric Power Group CSR Report 2010

1000

16

2

Progressive Approach to Environmental Problems

Kansai Electric Power Group Environmental
Action Plan

Status overview of our business activities andenvironmental load (fiscal 2009)

With the goal of contributing to the realization of a sustainable low-carbon society, Kansai Electric Power Group is accelerating the
momentum of our environmental efforts with the formulation of the Kansai e-Eco Strategy, which builds on and advances our New
ERA Strategy, a comprehensive package of measures to prevent global warming. In line with this strategy, the Kansai Electric PowerGroup Environmental Action Plan was revised in April 2010. With this three-pronged strategy as our basic course of action, we willcontinue working together as a group for the cause of environmental protection, to build a sustainable society.

INPUT

Business activities

OUTPUT

Building a sustainable society
Initiatives toward a trusted,environmentally advanced
corporation

We will make every effort to act as a main player in the realizationof a low-carbon society, by promoting initiatives such as theKansai e-Eco Strategy, a comprehensive strategy aimed atpromoting a sustainable low-carbon society.

❶ Kansai e-Eco Strategy
a. Accelerate conversion to low-carbon electricityⓐ Expanding the ratio of nuclear power generation to all power
generationⓑ Maintaining and expanding hydroelectric power generationⓒ Improving the efficiency of thermal power generationⓓ Promoting adoption of solar power generationⓔ Proactive adoption of biomass and other renewable energy sources
b. Contribute to energy conservation, cost reductions and CO2

reductions by customers and societyⓐ Promoting the use of heat pumps and other high-efficiency devicesⓑ Diffusion of electric vehiclesⓒ Activities aimed at reducing energy use and CO2 emissions
from our business activities
c. Construct the Kanden Smart Gridⓐ A more advanced power distribution systemⓑ Development of supply and demand control technology using
storage cellsⓒ Development of output prediction technology for solar power generationⓓ Visualization of energy consumption patterns❷ Activities abroadⓐ Transfer of environmental technologies to developing countries,
promotion of renewable energy initiativesⓑ Afforestation projectⓒ Utilization of the Kyoto Mechanism, etc.
❸ Development of advanced technologiesⓐ Development of technologies contributing to low energy
consumption, low costs and low CO2 emissions for customersⓑ Development of technologies to construct the Kanden SmartGridⓒ Development of technologies leading to next-generationelectrical power generation and realization of a low-carbon
society2.

Initiatives toward the achievement of a soundmaterial-cycle society

The entire Kansai Electric Power Group is working to promote
initiatives aimed at the realization of a sound material-cycle
society, including efforts to achieve the goal of zero emissions.

Coal
Heavy oil

121 thousand kL

Amount of nuclear
power generation

Crude oil

1,313 thousand kL

65.9 TWh

LNG(Liquified natural gas)

4,981 thousand t

21 thousand kL
Wood pellets (converted to heavy oil)Kansai Electric Power Group CSR Report 2010

Power generation

4.66 million m3

Clean water

1.20 million m3

River water,
groundwater, etc.
Seawater(desalinated)

0.80 million m3
2.78 million m3

Resources❶ Active efforts to achieve zero emissions, including activities

related to promotion of the three Rs (reduce, reuse andrecycle)❷ Promotion of secure, thorough processing of all PCBs

Limestone

30 thousand t

Ammonia

6 thousand tNOx (nitrogen oxides)

4,302 tAmount of thermal
power generation

Amount of hydroelectric
power generation

43.0 TWh
0.1 TWh from biomass
power generation

14.0 TWh
0.06 TWh fromsmall-scale
power generation

Radioactive waste

Industrial waste, etc.
Total amount ofemissions

Pumped-storagehydropower(2.1) TWh

Power transmission and power distribution

Office electricity❶ Promotion of community environmental protection measures

Office water
Copy paper

291 thousand t

Recycling

287 thousand t

Reduction inintermediate treatment

1 thousand t

Final disposal

4 thousand t

Recycling rate

98.7%

CO2 emissions resulting
from office activities
Total amount ofemissions

OfficeKansai Electric Power seeks to be recognized as a safe, trusted,and environmentally advanced corporation, making efforts inareas such as promotion of community environmental protection
measures, environmental management and advancement ofenvironmental communications.

9,900 drums(200 L drums)∗ Net generation (generated amount –reduced amount)

Electric power
consumed withinpower plants(4.8) TWhPurchased fromother companies
33.8 TWhof which, solar,
wind, biomass, andsmall-scale hydroelectric
power generation
1.0 TWh

6.28 million m3

Amount of low-level
radioactive waste
generated∗

SF6 gas recovery rate
(at time of inspection)
99.0%

toward a trusted, environmentally
3. Initiatives
advanced corporation

26 t

Total effluents❸ Promotion of green purchasingⓐ Continuous measures to prevent air and water pollutionⓑ Strict controls on hazardous chemical substances and further

1,520 t

COD emissions

Fuels for nuclear
184 tUpower generation (weight of pre-irradiation uranium)

Industrial waterSOx (sulfur oxides)

100 GWh
0.59 million m3
1,064 tGasoline

3.3 thousand kL

Diesel oil

0.9 thousand kL

efforts to reduce these substancesⓒ Promotion of measures to ensure the preservation of2

Released into water areas(converted to heavy oil)

Water for power generation

41.61 million t-CO2(37.57 million t-CO2) ∗2∗1 Includes CO2 originating from electricity
purchased from other electric companies.
∗2 Amount of emissions taking CO2 credits
into account.

1 thousand kL

OtherElectric power
consumed withintransformer
substations(0.2) TWh

OfficeGreen purchasingrate foroffice supplies
97.5%

Transmission anddistribution losses(8.1) TWh

Rate of adoptionof low-pollution
vehicles
79.1%

37.1 thousand t-CO2

Office electricity

26.9 thousand t-CO2(0.265 kg-CO2/kWh)

Office water

200 t-CO2(0.36 kg-CO2/m3)

Vehicle fuels(Gasoline: 2.32 kg-CO2/ℓ)(Diesel oil: 2.58 kg-CO2/ℓ)

10 thousand t-CO2∗ Figures in parentheses indicate the CO2
emissions factor. Amount shown for officeelectricity use takes CO2 credits into account.

Customers

biodiversity

Amount ofelectric powersold141.6 TWh

❷ Advancement of environmental communicationsⓐ Development of environmental-awareness-raising initiatives
involving customers and community membersⓑ Public disclosure of environmental data

❸ Promotion of environmental managementⓐ Collective environmental management initiatives involving theEnvironmental efficiency

entire Kansai Electric Power Groupⓑ Utilization and ongoing improvement of the ISO 14001compliant environmental management systemwith FY 1990
level as 100

Amount of electric power sold
Composite index∗

Environmental load caused by∗ Composite index = CO2, SOx, NOx, and landfill disposal of industrial waste

Note: Totals may not tally due to rounding

17

CO2 (carbon dioxide)∗1(dry coal weight)

Vehicle fuels

1.

Initiatives toward the realization of a lowcarbon society

1,419 thousand t

Processing classification

Initiatives toward
the achievement of a soundmaterial-cycle society

Released into atmosphere

Emissions breakdown

Initiatives toward
the realization ofa low-carbon society

Fuels for thermal power generation

Fuels for power generation

236

Amount of electric power soldAmount of CO2 emissions

133

Resources consumed
Oil, coal, LNG∗ In calculations starting in fiscal 2007, we are using the LIME2 integrated coefficient developed by the Research Center for Life Cycle Assessment.
∗ The amount of CO2 emissions shown here takes CO2 credits into account.

Kansai Electric Power Group CSR Report 201018

Progressive Approach to Environmental Problems

Eco Action (targets and results)
Item(Self-evaluation) ○: Target achieved △: Target mostly achieved ×: Target not yet achieved−: Unable to evaluate (e.g. because target is for a date several years in the future)

FY 2008 results

Targets

FY 2009 targets and results

FY 2009 targets and results

Targets

Results

Self-evaluation

FY 2010

FY 2011

FY 2012Page

Environmental efforts in business operations

Initiatives toward the realization of a low-carbon society
CO2 emissions reduction per unitof electric power used (sold)

0.299 kg-CO2/kWh ∗1<0.355 kg-CO2/kWh>Approx. 0.282 kg-CO2/kWh ∗1(5-year average for FY 2008–FY 2012)0.265 kg-CO2/kWh ∗1<0.294 kg-CO2/kWh>−Approx. 0.282 kg-CO2/kWh ∗1(5-year average for FY 2008–FY 2012)

P. 21

Promoting “safety first” operationsat nuclear power plants

72.4% facility
utilization rate

Operate nuclear power plants with safety assurance
measures to prevent a recurrence of an incident likethe Mihama Nuclear Power Station Unit 3 accident

77.0% facility
utilization rate−

Operate nuclear power plants with safety assurance
measures to prevent a recurrence of an incident likethe Mihama Nuclear Power Station Unit 3 accident

P. 22

Maintaining and improving the thermal
efficiency of thermal power plants(lower heating value base)

41.7%

44.0% or more

44.1%

○

45.0% or more ∗2

P. 22

Limiting SF6 emissions (calendar year basis) (gasrecovery rate at inspection/removal of equipment)

98.0% (at time of inspection)
99.2% (at time of removal)

97% (at time of inspection)
99% (at time of removal)

99.0% (at time of inspection)
99.4% (at time of removal) ∗3○97% (at time of inspection)
99% (at time of removal)−

Achieve amount required by
the RPS Law (1,220 million kWh)

Achieve amount required by the RPS Law

Achieve amount required by
the RPS Law (1,490 million kWh)○

Achieve amount required by the RPS Law

P. 22Power output from subsidized facilities: 0.2 MW(Number of facilities: 28)

Promote the Kansai Green Electricity FundPower output from subsidized facilities: 0.3 MW(Number of facilities: 31)−

Promote the Kansai Green Electricity Fund−

36 thousand t-CO2(39 thousand t-CO2)

̶̶̶

49 thousand t-CO2(46 thousand t-CO2)−

Reduce customer CO2 emissions through the further diffusionand expansion of EcoCute

P. 23

Ratio of low-pollution vehicles to all
vehicles held

74.8%

76.0%

79.1%

○

Number of next-generation electric vehicles
and plug-in hybrid vehicles introduced̶̶̶Approx. 200 vehicles by FY 2011
Approx. 1,500 vehicles by FY 2020

111 vehicles−

Approx. 200 vehicles by FY 2011
Approx. 1,500 vehicles by FY 2020

P. 23

Promotion of environmental household account books(Number of participants as of the end of the fiscal year)

5,674

Encourage use of Kansai Electric Power environmental household
account books both inside and outside the company

8,600

−

Encourage use of Kansai Electric Power environmental household
account books both inside and outside the company

P. 32

99.3%

More than 99% (up to FY 2009)

98.7%

△ ∗5

More than 99.5% (up to FY 2012)

P. 28

Processed volume:Low-concentration PCB: 47 thousand kL (cumulative total)
High-concentration PCB: 938 units (cumulative total)

Process all PCBs by the legal deadline (by 2016)

Processed volume:Low-concentration PCB: 57 thousand kL (cumulative total)
High-concentration PCB: 1,403 units (cumulative total)−

Process all PCBs by the legal deadline (by 2016)

P. 28

13 locations

Support of and expansion to appropriate
numbers of locations

13 locations○

Support of and expansion to appropriate
numbers of locations

P. 33

SOx

Emissions per basic unit
Overall 0.029 g/kWh
Thermal 0.072 g/kWh

Maintain current status(Reference) 5-year averages for FY 2004–FY 2008
0.02 g/kWh (overall) 0.06 g/kWh (thermal)

Emissions per basic unit
Overall 0.012 g/kWh
Thermal 0.035 g/kWh○

Maintain current status(Reference) 5-year averages for FY 2005–FY 20090.02 g/kWh (overall) 0.06 g/kWh (thermal)

NOx

Emissions per basic unit
Overall 0.046 g/kWh
Thermal 0.113 g/kWh

Maintain current status(Reference) 5-year averages for FY 2004–FY 2008
0.04 g/kWh (overall) 0.12 g/kWh (thermal)

Emissions per basic unit
Overall 0.035 g/kWh
Thermal 0.100 g/kWh○

Maintain current status(Reference) 5-year averages for FY 2005–FY 20090.04 g/kWh (overall) 0.11 g/kWh (thermal)Less than 0.001 millisieverts/year

Less than 0.001 millisieverts/year

Less than 0.001 millisieverts/year○

Less than 0.001 millisieverts/year

Development and diffusionof renewable energies
Reducing customer CO2 emissions throughthe diffusion and expansion of electric water
heaters such as EcoCute ∗4

80.0%

81.0%

82.0%

2

P. 23

Initiatives toward the achievement of a sound material-cycle society
Improving the recycling rate of industrial
wastesProper processing of PCB wastes ∗6

Initiatives toward a trusted, environmentally advanced corporation
Further introduction of systems in compliancewith ISO or other certifications (compliant
locations at fiscal year-end)
Maintaining sulfur
oxide (SOx) andnitrogen oxide(NOx) emission levels
proportional to thevolume of electric
power generated

Office energy and resource conservation activities

Measured dosages of radioactive gaseous
waste in public areas around nuclear
power plants

Item

Reducing office electricity consumption Reducing office water consumption ∗8 Improving fuel efficiency of company vehicles
Volume of office electricity consumption

1,200

150

Progress since
fiscal 2000
(Excerpted)

Volume of office water consumption(Thousand m3)

(GWh)

119
100

104

101

Target
100

50

400

0

0

615

590

8

584

-4.0%

9.47

9.41

1,200

9.57

+0.7%

Target
1,001

1,061

4

400

0

0

maximum
1,064 (Promotepossible reduction)

Target100
80

About the sameas previous year

800

Green purchasing rate for office supplies(%)

99

97 approx. 100%

98

About the sameas previous year

60
40
20

2000

2008

2009

2010

(FY)

2000

2008

2009

2010

(FY)

2000

2008

2009

2010

(FY)

Targets for fiscal 2009 to 2012 1% or more reduction compared to the prior fiscal year 1% or more reduction compared to the prior fiscal year 1% or more improvement compared to the prior fiscal year

2000

2008

2009

2010

(FY)

Promote maximum possible reduction

0

2003

2008

2009

Self-evaluation

○

○

△

○

○

26.9 thousand t-CO2 (28.6 thousand t-CO2) ∗7

0.2 thousand t-CO2

10.0 thousand t-CO2̶̶̶̶̶̶

̶̶̶̶̶̶

Kansai Electric Power Group CSR Report 2010

∗3: Tracking of the amount of gas in devices prior to SF6 gas removal work, which serves
as the basis for calculation of the recovery rate, was previously done using the values
inscribed on the devices themselves, but has recently been conducted using the“gas pressure conversion method,” using the device’s SF6 gas enclosure amountand the pressure.

2010

(FY)

Maintain current status (approx. 100%)

FY 2009 CO2 conversion∗1: Takes CO2 credits into account as provided for under the Kyoto Mechanism. Figures in<> marks indicate CO2 emissions factor before taking CO2 credits into account.
∗2: We raised our target from “44% or more” to “45% or more” in anticipation of
improvements in the thermal efficiency rate resulting from installation of
combined-cycle equipment at the Sakaiko Power Station and startup of the Maizuru
No. 2 unit.

19

9.14

Target800-2.7%

Volume of copy paper consumption(t)Target

12

1,021

−

Reducing copy paper consumption Improving the green purchasing rate for office supplies ∗9Fuel efficiency of company vehicles(km/L)

P. 29∗4: Regarding values for reduction of customer CO2 emissions through diffusion andexpansion of EcoCute and other water heaters, we changed to use of a combined
value for EcoCute and electric water heaters. The formula used for calculation is:[Amount of CO 2 emissions reduction] = [number of EcoCute units registered tocustomers (increase in number of units for the fiscal year)] x [annual amount of CO 2
emissions from conventional water heater models] – [annual amount of CO 2

emissions from EcoCute] + [number of electric water heater units registeredto customers (increase in number of units for the fiscal year)] x [annual
amount of CO2 emissions from conventional water heaters] – [annual amountof CO2 emissions from electric water heaters]. In terms of results, for the CO2
emissions factor for the fiscal year in question taking CO 2 credits into
account, figures in parentheses are Kansai Electric Power’s CO2 emissions
factor targets (approximating the 5-year average of 0.282 kg-CO2 (kWh) for
FY 2008–FY 2012).
∗5: While there was a major reduction in the amount of industrial waste
generated, there was an increase in the amount of difficult-to-recycle waste
generated as a result of regularly scheduled plant inspections, and we fellslightly short of our target. Regarding this industrial waste, we have alreadyswitched over to a contract with a waste management company capable ofrecycling it, and from FY 2010 onward a drastic reduction in the amount oflandfill waste is expected.
∗6: The results for treatment of “high-concentration PCB waste” are based on“amount of waste delivered to Japan Environmental Safety Corporation
treatment facilities.”∗7: In terms of the CO2 conversion for amount of office electricity use, amounts
are the FY 2009 CO2 emissions factor with CO2 credits taken into account,
while figures in parentheses are Kansai Electric Power’s CO2 emissions factor
targets (approximating the 5-year average of 0.282 kg-CO 2 (kWh) for FY
2008–FY 2012).
∗8: Scope of calculations has been revised in accordance with water use results.
∗9: Fourteen items have been added as a result of government measures toaddress recycled-paper content falsification (31 items → 45 items).

Kansai Electric Power Group CSR Report 201020

Progressive Approach to Environmental Problems

Becoming a main player in the drive for a low-carbon
societyKansai Electric Power Group’s uniquecomprehensive measures
Kansai Electric Power Group has formulated the Kansai e-Eco
Strategy, which builds on our New ERA Strategy, as a part of the
newly formulated “Kansai Electric Power Group Long-term Growth
Strategy 2030.” The Kansai e-Eco Strategy includes comprehensive

promotion of the goals of “accelerate conversion to low-carbon
electricity,” “contribute to energy conservation, cost reductions
and CO2 reductions by customers and society,” and “construct
the Kanden Smart Grid.” The Group is also undertaking “activities
abroad” and “development of advanced technologies.” This brings
us closer to realization of a sustainable, low-carbon society.

Contribute to energy conservation, cost reductions
and CO2 reductions by customers and society

Accelerate conversion to
low-carbon electricity

Construct theKanden Smart Grid

Accelerate conversion to low-carbon electricity
Kansai Electric Power Group takes a wide variety of measures
aimed bringing customers electricity with lower CO 2
emissions, including promoting “safety first” operations at
nuclear power plants, maintaining and expandinghydroelectric power generation, proactively adopting
renewable energy sources, and maintaining and improving thethermal efficiency of thermal power plants.

Setting targets aimed at reducing the CO2
emissions factor
Kansai Electric Power has been promoting comprehensive strategies
with the goal of reducing the amount of CO2 emissions proportional
to the amount of electric power consumed (sold), known as the CO2

Because it does not emit CO 2 during generation, nuclear power
generation is a valuable means of reducing global warming.
Moreover, the uranium used in nuclear power plants as fuel canbe imported from a number of politically stable countries, assuringstability of supply and economic viability. For these reasons, Kansai
Electric Power is actively promoting nuclear power, placing thehighest priority on the safe and stable operation of nuclear power
plants.
Japan’s Basic Energy Plan, approved by a Cabinet resolution inJune 2010, also focuses on active promotion of nuclear power as amain energy source over the mid- to long-term, with safety as a toppriority and the trust and understanding of the nation’s citizens as aprerequisite.

Stable operation and improved capability ofhydroelectric power generation

Development ofadvanced technologies

Activities abroad

Promoting nuclear power generation

emissions factor. As a result, CO2 emissions factor reduction hasreached the highest standards in the industry, but with the goal ofestablishing an even lower-carbon power grid, we are challenging
ourselves to reduce emissions by a five-year average of 0.282 kgCO2/kWh over the first commitment period of the Kyoto Protocol (FY
2008–FY 2012), and are promoting further efforts.

Results of CO2 emissions factor reductions
Through expanded use of nuclear power generation and otherfactors, the CO2 emissions factor for fiscal 2009 was 0.265 kg-CO2/
kWh, lower than that of fiscal 2008.
* This is a provisional value. The government will officially announce actual
values, based on the Law Concerning the Promotion of the Measures to Copewith Global Warming, etc.

Hydroelectric power generation is a purely domestic Japaneseenergy source, excellent in terms of both stability of supply andeconomic efficiency. In addition, like nuclear power, it has earned
accolades because it emits no CO 2 during generation. Kansai
Electric Power will continue stable operation of hydroelectric power
generation facilities by carrying out appropriate maintenance, boost
output at our existing facilities, and promote the switch over tovariable-speed operation at pumped-storage hydropower plants
and development of small- and mid-scale hydroelectric power
generation, with the goals of flexible response to supply and demand
fluctuations and further mitigation of the environmental load.

■ A new hydropower plant making effective use ofexisting equipment(Shin-Kuronagi No. 2 Power Station (tentative name) construction project)

As a part of efforts to further promote electricity with low CO2
emissions, Kansai Electric Power is currently planning a newhydropower plant that will utilize excess flow from the driving channelof the existing Kuronagi No. 2 Power Station (Unazuki, Kurobe City,
Toyama Prefecture). With a maximum output of 1,900 kW, the plantis scheduled to commence operation in 2012. Realization of thisproject will achieve a 3,600-ton annual reduction in CO2 emissions.

Maintaining and improving the thermal
efficiency of thermal power plants
Kansai Electric Power is pursuing ongoing measures in both facilities
and operations in order to maintain and raise thermal efficiency,
to save fossil fuels and as a result, reduce CO2 emissions. At the
Sakaiko Power Station, we are presently pursuing a facility renewal
plan that will incorporate state-of-the-art, 1,500°C-class combinedcycle power plants, improving thermal efficiency from its current 41%
to 58% and reducing the CO2 emissions factor. Units 1 through 4commenced commercial operations in 2009, with Unit 5 scheduled
to go online in September 2010. Also, at the Himeji No. 2 Power
Station, our largest plant, we are making progress on a facility
renewal that will employ a 1,600°C-class gas turbine. The planned
new equipment will bring thermal efficiency from its current 42%
to approximately 60%, among the world’s highest, and allow forsignificant reductions in the CO2 emissions factor.

2

Actively introducing renewable energies■ Promotion of independent development of
renewable power generation
Ten electric power companies, including Kansai Electric Power,plan to develop mega solar power plants in about thirty locations
nationwide with a total power output of approximately 140 MW. They
will be used to verify the technical impact of large-scale introductionof solar power into the power grid in the future, as well as toencourage further expansion of solar power.
Kansai Electric Power is constructing the first mega solar
power generation plant on the Sakai City waterfront, tentatively
named Sakai No. 7-3 District Mega Solar Power Generation Plant(rated output: 10 MW; estimated CO2 emissions reductions per
year: approx. 4,000 tons), which on completion will be one of thelargest solar plants in Japan. A portion of the facility is scheduled tocommence operation in November 2010 and start verification tests
soon after, with the entire facility going online in October 2011. In
addition, Kanden Energy Development Co., Inc., a wholly owned
subsidiary of Kansai Electric Power, has embarked on a wind power
project with a rated power output of 24 MW in the northern part of
Awaji City, Hyogo Prefecture.

■ Change in CO2 emissions factor, etc.
Branch fromexisting penstock

1,206
0.353

0.366

5,173

Thermal Nuclear

0.294

44%

1990

5,499

2007

4,360

2008

3,757

2009

Kansai Electric Power Group CSR Report 2010

Renewable energy
sources, etc. 1%

Amount deducted
through CO2
credits (Note)2012

Commitment period of the Kyoto Protocol (2008–2012)

21

45%

0.265
4,161

4,261

2030

r

1.70 m3/s

ive

56%

Penstock

6.20 m3/s

Non-fossil fuel power generation(of which 80% comes from nuclear power generation)

5-year average for
FY 2008–FY 2012

0.355

0.299

Kansai Electric Power
reduction target:
Approx. 0.282kg-CO2/kWhIntake weir

7.90 m3/s
Sakai No. 7-3 District
Mega Solar Power
Generation Plant(tentative name)

iR

1,416

Waterwag

1,459(including power bought from other companies(except for power used for power flexibility andpumped-storage hydroelectric power))ay

Head tank

ron

1,504

■ FY 2009 percentage of power generated
from non-fossil fuel sources(Ten thousands of t-CO2)
Amount of CO2
emissions

Ku(100M kWh)Amount of power consumed (sold)(kg-CO2/kWh)End-use CO2 emissions factor(FY)

Hydroelectric
power 10%

Note: The values for FY 2005 onward are calculated
based on the calculation, reporting andpublication system for greenhouse-gas
emission volumes, as mandated in the Law
Concerning the Promotion of the Measures to
Cope with Global Warming. Note that under
this system, CO2 reduction values such as
green power certifications are not taken into
consideration.

Kuronagi No. 2
Power Station

Shin-Kuronagi No. 2 Power Station(tentative name)■ Promoting the switch over to variable-speed
operation at pumped-storage hydropower plants
At Units 1 and 2 of the Okutataragi Power Station, we are planning
to replace the fixed-speed system with a variable-speed system.
This will allow adjustment of the network frequency, and in turn help
curb the operation of thermal power plants that support frequency
adjustment during nighttime hours. In FY 2009, Kansai ElectricPower’s efforts toward development and adoption of variable-speed
pumped-storage hydropower systems earned high acclaim, and theCompany was awarded the Environment Minister’s Award for Global
Warming Prevention in conjunction with Hitachi Ltd.

■ Purchasing of surplus solar power
Kansai Electric Power encourages the spread of solar power incommunities and private residences, and through the feed-in tariffs(FIT), purchases surplus electricity (power generated by solar panels
but not used at their place of installation) from customers.

Mixing in biomass fuel before combustion at
Maizuru Power Station
In August 2008, Kansai Electric Power began using wood pellets,a biomass fuel, with the coal burned at the Maizuru Power Station
thermal plant. This allows for decreased coal consumption, andresults in an annual CO2 emissions reduction of approx. 92,000 tons.

Kansai Electric Power Group CSR Report 201022

Progressive Approach to Environmental Problems

Contribute to energy conservation, cost reductions and CO2 reductions by customers and society
Kansai Electric Power offers customers a wide range ofenergy-saving proposals to encourage efficient energy use
throughout society, and also strives to cut energy use andCO2 emissions at our bases of operation.

Providing optimum solutions for reduced
energy consumption, costs and CO2 emissions
Kansai Electric Power meets customer needs for energy efficiency,
cost savings and CO2 reductions, and contributes to the realizationof a low-carbon society by working actively to promote widespread
adoption of heat pumps and other high-efficiency devices andsystems.
For our individual customers, we proposed the conceptof “totally electric homes plus,” which synergistically combines
environmentally efficient products and services such as solar powerand electric vehicles with safe, comfortable and economical “totallyelectric homes” incorporating environmentally superior EcoCute
water heaters. For our corporate customers, we offer systems that
optimize energy use by combining low-CO2-emissions electric powerwith high-efficiency electric devices such as heat pumps, helping tofind solutions to the challenges facing customers.

Domestic Credit System initiative
Kansai Electric Power participates in efforts to reduce CO2 emissionsin accordance with the Japanese government’s Domestic Credit
System. As of the end of March 2010, the Company has participatedin six joint projects registered by the Domestic Credit Certification
Committee. These projects are expected to lead to an estimated
2,501-ton annual reduction in CO2 emissions. Among them is a
project to reduce CO2 emissions by introducing heat pumps for use
in landscaping facilities, implemented in conjunction with the Heguri
Greenhouse Rose Association (Heguri, Ikoma-gun, Nara Prefecture).
Through this project, in April 2010 the Company obtained its first
domestic credit for 295 tons.

Providing a variety of information about energy
conservation
Kansai Electric Power offers a wide variety of services aimed
at helping customers use energy more efficiently, such as the“environmental household account book” tool and helpful tips onenergy conservation for individual customers, as well as a variety ofservices tailored to the life cycle of facilities, such as energy-saving
diagnostic services and energy management support, for corporate
customers.

■ Providing information about saving energy throughWeb sites and pamphlets
Kansai Electric Power distributes pamphlets that explain how
customers can use energy wisely, and the Company’s Web site
also includes a section that introduces tips and fun ways to help
customers conserve energy more efficiently.
Enjoy Sho-ene Life: The Ekoda family’s energy-conservation lifestyle
http://www.kepco.co.jp/sho-ene/

The Kansai Electric Power Group aims to contribute to theachievement of a low-carbon society and a better energy
environment for customers through the construction of asmart grid (next-generation electricity transmission network).

What is the “Kansai Electric Power smart grid”?
The concept of the smart grid has gained widespread prominence
recently. The Kansai Electric Power Group has positioned thesmart grid as a key to achievement of an electricity transmission
system high in efficiency, quality and reliability, employing advanced
information, communications and storage cell technology to achievea low-carbon society and a better energy environment for customers
without sacrificing the stability of the basic electric power grid.

A stable supply of electricity with low CO2
emissions■ Totally electric homes + solar power
The combination of totally electric homes incorporating EcoCute,which uses heat extracted from air warmed by the sun, andsolar power, is proposed as an optimum solution to the issue of
CO 2 emissions. Both systems employ renewable energy, andthe combination of them enables even greater reductions in CO2emissions.

Construct the Kanden Smart Grid

Energy conservation and CO2 emissions
reduction at Company bases of operation■ Energy management at bases of operation
In order to further reduce energy consumption at Kansai ElectricPower bases of operation, in fiscal 2007 we introduced the “energy
management” program at some of our business locations. At
these locations, the daily energy consumption is measured, datais confirmed and analyzed on a regular basis, and effective energy
conservation strategies based on that data are put into place.
In fiscal 2009, we increased the number of locations by one
to 18 locations. By optimizing operations through raising staff
awareness, and universally implementing measures that were
found to be particularly effective, we have achieved a 4% reduction
in electric power consumption in comparison with the previous
year. In the future, we intend to accumulate and make use offurther knowledge about energy use suited to the characteristics ofbuildings and successful measures to reduce this use, and apply thisknowledge effectively at locations where energy management has
not yet been implemented.

■ Active adoption of electric and plug-in hybrid
vehiclesElectric vehicles emit no NOx (nitrogen oxides), SOx (sulfur
oxides) or CO2 while on the road. Plug-in hybrid vehicles also emit
considerably less CO2, NOx and SOx while on the road, and have
low environmental impact.
In order to cut the amount of CO2 emitted by company vehicles,
Kansai Electric Power has set a target of introducing a total of 1,500
electric and plug-in hybrid vehicles by 2020. As one of the first steps,
the Company plans to introduce 200 such vehicles by fiscal 2011. In
fiscal 2009 a total of 111 vehicles—86 electric vehicles and 25 plugin hybrid vehicles—were introduced at offices, including sales offices,
power plants, and power stations, and 200 V chargers and rapid
chargers have been installed, helping to encourage the use of thesevehicles in daily operations.

In the future, should renewable energy sources with unstable output,
such as solar power generation, supply power in a large-scale orcentralized fashion, there are concerns that it could adversely affectthe stability of the electric power grid (in terms of electricity quality
factors such as voltage and frequency). In order to avert such asituation, Kansai Electric Power intends to pursue the constructionof a smart grid, including maintenance and renewal of thermal andpumped-storage hydroelectric power generation and distribution
facilities fulfilling the function of supply control, to deliver stableelectricity with lower CO2 emissions.

■ Research on a power supply control system
employing storage cells
It is important to maintain a reliable power supply in the event thata large amount of energy from renewable sources such as solar
power, which fluctuate drastically over short periods of time, isintroduced to the power grid. Starting in fiscal 2010, Kansai ElectricPower has been engaged in research on a power supply control
system employing storage cells at the Ishizugawa Substation, which
is linked to the Sakai No. 7-3 District Mega Solar Power Generation
Plant (tentative name).

Kansai Electric Power Group CSR Report 2010

In order to provide a better energy environment and support energysaving for customers, Kansai Electric Power is making efforts
to introduce new measurement systems and visualize energy
consumption patterns, while also considering other potential
services.

■ Support for visualization of energy consumption
patterns2

In order to facilitate reductions in energy consumption, costs, andCO2 emissions resulting from customers’ electricity use, Kansai
Electric Power offers a service to inform customers of how muchenergy they use each month and in the past 15 months, as well as
the CO2 emissions resulting from this use, on our Web site.
When this service is used, electricity consumption and expenses
are automatically transmitted to the environmental household
account book (“Eco e-Life Check”).
(See p. 47 for details on the environmental household account book (“Eco e-Life
Check”).)

Service informing customers of electricity use:
http://www.kepco.co.jp/service/miruden/

Initiatives toward new metering systems
In recent years, much attention has been paid to “smart
meter” electric meters. Since 1999, before the phrase “smart
meter” had yet gained currency, Kansai Electric Power
has been engaged in research and development on new
measurement systems. These systems, making use of nextgeneration meters employing communications technology,
optical fiber networks, and other such technologies areintended to provide customers with better service and boost
the efficiency of business operations. With their introduction,customers’ electricity use is measured in 30-minute units,
supporting effective equipment configurations tailored toelectricity use patterns and more precise energy consulting.

■ Construct the Kanden Smart Grid
Power plant
Nuclearpower

Securing power generation adjustment capability

Pumped- Thermal
Hydropower storagehydropower power

Development of output forecast technology for solar
power generation

Maintenance and renewal of facilities to attain stable,
low-carbon power supply

Web notifications, etc.

Wind
power

Support for energy consumption, cost and CO2
emissions reduction

Central load-dispatch Electricity bill
calculation center
centerCustomer
New-type meterPrimary substation

Storage cell

Power gridCommunication lines forelectric power
General communication
network

Visualization of energy consumption patterns

Maintenance and renewal of power generationand distribution facilities

Mega solar

23

A better energy environment for customers

Improvement of power
supply adjustment
capabilities

Development of power
supply control technology
using storage cells

Power distribution
substation

New
metering
systemLoad dispatching andSolar power generation

Electric
vehicleHeat pump electric
hot-water system(EcoCute)

Advanced distribution
automation system

Increased sophisticationof distribution networks•Maintenance and improvement ofelectric power quality(increased sophistication of voltage
control etc.)•More efficient facility configurations

Power distribution
network

Storage cellKansai Electric Power Group CSR Report 201024

Progressive Approach to Environmental Problems

Activities abroad■ Senoko Power Station Stage II Repowering Project

Making use of the technological capabilities, knowledge and expertise that we have gained through years of operation as anelectrical power supplier, the Kansai Electric Power Group is undertaking a wide range of activities abroad to contribute to themitigation of global warming on a global scale. Our efforts employing the CDM (Clean Development Mechanism) and other Kyoto
Mechanisms are contributing to reductions in the CO2 emissions factor.
■ Overseas projects by the Kansai Electric Power Group

China

Worldwide

In September 2008, Kansai Electric Power and other companies
purchased shares in Senoko Power Limited, Singapore’s largest
electricity supplier. Currently, work is underway on the conversion of
Senoko Power Station’s existing oil-fired steam thermal plants, witha total capacity of 750 MW, to combined-cycle natural gas turbinesof with a total capacity of 860 MW. This project will benefit theenvironment by expediting efficient energy use and bringing aboutmajor reductions in CO2 emissions. Using the power-plant-related
technological expertise we have amassed through our domestic
and international electricity business activities, the Company intends
to continue contributing to the steady implementation of suchrepowering projects.

Location
Participating
corporations

SingaporeKansai Electric Power, Marubeni, GDF SUEZ, Kyushu ElectricPower, Japan Bank for International Cooperation

CO2 emissions per
basic unit reduced

Before facility renewal = 0.72 kg-CO2/kWh
After facility renewal = 0.38 kg-CO2/kWh

Period of construction

Dec. 2009–Aug. 2012 (scheduled)2

Vietnam(Japan Greenhouse Gas
Reduction Fund)

BhutanSenoko Power Station

Taiwan

India

Chile

Computer rendering of facility after renewal

TuvaluMalaysia■ Ming-Jian Hydropower Project
Singapore

New ZealandAustralia

Legend
F d
Fund

Aff
i
Afforestation

Th
Thermall power

processing
i

Solar
S
power
ti
generation

Biomass
Bi■ Environmental afforestation project in Australia■ Hydroelectric power CDM project in China

Kansai Electric Power is carrying out a multiple-benefit environmental
afforestation project in Australia, aiming for simultaneous mitigationof soil salination, mitigation of global warming and improved
biodiversity. We have planted belts of mallee eucalyptus trees
approximately 10 meters wide over a combined 900 kilometers or
so in length, on farm and pasture land leased near Perth in the stateof Western Australia. About 1,000 hectares in area, the tree belt
contains as many as 2.5 million trees.

This project entails the construction of the Kanfeng and Luertai
hydropower stations on a tributary of the Yellow River in southernGansu Province, China, and sale of the power generated to local
electricity suppliers. Both the Kanfeng Hydropower Station Project(total output: 15 MW) and the Luertai Hydropower Station Project(total output: 12.2 MW) are registered as CDM projects by the UN,
with CO2 credits being issued for the Luertai project, helping to
reduce the Company’s CO2 emissions factor.

Location
Participating
corporations
CO2 absorption amount

Perth, Australia

Location

Southern Gansu Province, China

Kansai Electric Power, The General Environmental
Technos, Oil Mallee Company (CO2 Group)

Participating corporations Kansai Electric Power, Gansu Gongjiaotou Kanfeng
Hydropower Development, Lintan Luertai Hydroelectric Power

Approx. 860,000 t-CO2 (over 20 years)

Reduced amount of
CO2 emissions

Period of participation in project 2003 to 2022

Kanfeng: Approx. 52,000 t-CO2/year
Luertai: Approx. 42,000 t-CO2/year

Period of participation in project 2006 to 2012

Ming-Jian Hydropower is an independent power producer (IPP) in
Taiwan, which was tendered by the Taiwanese government in 2003
as a 25-year BOT (build-operation-transfer) project. Ming-Jian power
plant with the capability of generating 16.7 MW takes advantage ofpotential head of existing irrigation canal. Under a power purchaseagreement in accordance with the Taiwanese renewable energy
purchasing criteria, all of the electricity generated is sold to the Taiwan
Power Company, contributing to the Taiwanese government’s
promotion of renewable energy use. Kansai Electric Power holds
approximately 30% of shares, and makes use of its technical skills
acquired in rich experience of the domestic hydropower operationand maintenance to maintain and improve the safe and stable
operation.

Location

Ming-Jian, Nantou County, Taiwan

Participating corporations Kansai Electric Power, Dong Jin Enterprise, others
Amount of CO2 reduced Approx. 48,000 t-CO2/year
Period of participation in project 2005 to 2029

Ming-Jian Hydropower Station

Interior of Ming-Jian Hydropower Station■ Tuvalu Solar Power Generation ProjectAt an elevation of only two meters above sea level, the island nationof Tuvalu is under threat of sinking beneath the ocean due to rising
sea levels caused by global warming and other factors. As part ofits environmental preservation activities with e8 (a conference of theworld’s major electric power companies), the Company has installed
a 40 kW solar power generator in Tuvalu’s capital Funafuti, and is
working to pass along our construction, engineering and operation
know-how. The solar power generator commenced operation in
February 2008, and the Company participated over the next two
years by monitoring operations and providing support for the power
station.

Location

Funafuti, Tuvalu

Participating corporations Kansai Electric Power, Tokyo Electric Power, Tuvalu Electricity Corporation
Amount of CO2 reduced Approx. 50 t-CO2/year
Period of participation in project 2007 to 2010

Solar power generation equipment

Part of the malee eucalyptus forest, planted in belts

25

Kansai Electric Power Group CSR Report 2010

Luertai Hydropower Station

Tuvalu’s capital Funafuti

Kansai Electric Power Group CSR Report 201026

Progressive Approach to Environmental Problems

Development of CO2 recovery and fixation
technology■ Separation and recovery of CO2 in exhaust gases
Since 1990, Kansai Electric Power has been collaborating with
Mitsubishi Heavy Industries, Ltd., on the development of CO 2
separation and recovery technology that employs a processof chemical absorption to separate and recover the CO 2 fromexhaust gases resulting from thermal power generation. In 1994,
the Company’s continuing research resulted in the developmentof a new CO 2 absorption solvent, KS-1, the world’s mostefficient and a superior replacement for the conventional solvent,monoethanolamine. With this solvent, the energy needed for CO2
recovery was reduced from the previous 900 kcal/kg-CO2 range toaround 700 kcal/kg-CO2. We are currently engaged in developing
a new absorption solvent that will reduce CO2 recovery energy to alevel even lower than KS-1.
From an application standpoint, we have also succeeded inboosting the system’s effectiveness and developing a low-cost
chemical absorption process. The
technology is currently used at 9
locations worldwide, primarily infertilizer plants, and its use is growing
outside Japan in particular due toits effectiveness in cutting costs invarious fields, such as enhanced oil
recovery.
Trademark registered July 2007
Trademark registration applied
for in other countries(USA, Canada, countries in theEU, Norway, etc.)■ Participation in a geological CO2 storage andfixation technology development project
In May 2008, the Company joined other electric power suppliersin establishing Japan CCS Co., Ltd., and is participating ingovernment-sponsored CCS (carbon capture and storage) research
efforts. At present, the project is at the stage of selecting sites for■ Overview of main CCS technologies being consideredin Japan
Major source of CO2 emissions(CO2 separation and recovery)
Ocean sequestration

CO2 shipping
CO2 injection
Cap lock∗
Coal
seam
Coal seam fixation

CO2 injection

CO2 shipping

CO2 dissolution
and dispersion

CO2 injection

CO2

Deep-sea
floor storage
CO2

Aquifer storage (on land)
Cap lock∗

Aquifer storage(in the sea)
Cap lock∗

CO2

Aquifer

Aquifer

CO2

Sub-seabed storage∗ Cap lock: an impermeable stratum or other impenetrable base rock layer

27

Kansai Electric Power Group CSR Report 2010

CCS verification tests. We intend to continue playing an activerole in large-scale verification tests under the auspices of thecentral government, and pursuing the development of CCS-related
technologies.

Development of high-efficiency electric devices
Kansai Electric Power has long been engaged in research anddevelopment efforts to further boost the efficiency of heat pumps,
and to expedite their use in a wider range of fields. For example, inrecent years the Company, in partnership with Chubu Electric Power
Co., Inc., Tokyo Electric Power Company and Kobe Steel Ltd., hasbeen working to answer calls from factory personnel for highertemperature hot water heat pumps. The result is the industry’s first
hot water heat pump with not one but two screw compressors used
to raise the temperature of refrigerant. This heat pump is capableof supplying 70°C to 90°C hot water and 5°C to 30°C cold water.
When simultaneously supplying 90°C hot water and 7°C cold
water, the total COP (coefficientof performance) is 4.5, meaning it
is possible to extract heat energy
equivalent to 4.5 times the energy
consumed. Since April 2010, thishot water heat pump has beencommercially available as the HEMHR90 sold by Kobe Steel.
HEM-HR90: total COP of 4.5 whensimultaneously supplying 90°C hot waterand 7°C cold water

Development of power system operation andcontrol technology
Because renewable energy sources such as solar power arecharacterized by major fluctuations in output over short periods oftime due to climatic conditions and other factors, there are concernsthat a massive or highly concentrated inflow into the power grid
could adversely affect the stability of the electric power grid (in termsof voltage, frequency, etc.). With this in mind, Kansai Electric Power
is working to verify the actual effects of such power generation on
the power grid, as well as to develop new technologies of powersystem operation and control.

■ Assessment of the effects of solar power generationon the power grid
By collecting data and monitoring sunlight levels in various areas, weare making efforts to gain a clearer understanding of the potentialof smoothing output throughout the Kansai region and the output
fluctuations caused by sudden weather changes in specific areas,
as well as the scope of solar power generation output fluctuations
in comparison to demand on an yearly basis. Based on this data,
we are formulating solar power generation output forecast methods,
estimates of the power generation adjustment capability needed tosuppress frequency fluctuations, and measures to address areaspecific voltage fluctuations. The accurate forecasting of solar power
output presents a difficult challenge, but we intend to push forincreased precision so as to eventually be able to reflect predictions
in daily supply and demand schedules.
In addition, with the potential introduction of storage cells into
the electric power grid in mind, we are pursuing the developmentof technologies such as power supply control systems employing
storage cells. While practical technological issues related to large
scale storage cells needed for power supply control exist, we willcontinue the steady pursuit of basic research in this area.

Efforts to achieve zero emissions

PCB waste processing

Kansai Electric Power is working to promote the recycling ofindustrial waste generated by business activities, with the goalof achieving zero emissions, and a target of an industrial waste
recycling rate of 99.5% or higher by fiscal 2012.

Since April 2004, Kansai Electric Power has been processing poletransformers at our Recycling Center for Utility Pole Transformers
to appropriately handle low-concentration PCB wastes in insulation
oil and transformer cases. In addition, for high-concentration PCB
wastes, such as high-voltage transformers and condensers, we havecontracted the Japan Environmental Safety Corporation to processthese items starting in October 2006.

■ Improving the recycling rate of industrial wastes
Kansai Electric Power promotes efforts related to the three Rs
throughout all its operations. For example, waste-concrete utility
poles are recycled as roadbed materials, and 100% of the coal ash
produced by the Maizuru Power Station is recycled as raw material
for cement. Regarding glass, a material with limited recycling
applications, the Company has been pursuing research anddevelopment, and starting in fiscal 2010 will be capable of recycling
almost 100% of insulators used.
■ Changes in emissions and recycling rates forindustrial wastes(Thousand t)

Landfill disposal

98

400
300

98

98

548

98

100

99

99

95

399
331

89

90

342

331

291

200

85
80

100
0 57 603■ Processing of low-concentration PCB wastes (poletransformers) (as of March 31, 2010)
Insulation oil(10,000 kL)

Transformer cases(10,000 units)

Volume to be processed

Approx. 10

Approx. 24

Volume processed so far(cumulative)

5.7

12.7

8

7
05

04

7
06

4

6
07

(high-voltage transformers and condensers)

Recycling rate
(%)

600
500

2

■ Processing of high-concentration PCB wastes

Emissions475(as of March 31, 2010)
Recycling rate of industrial wastes

The Kansai Electric Power Group makes maximum use of thetechnological expertise we have acquired as an electric power
supplier, contributing to the achievement of a low-carbon
society through the development of cutting-edge technology
such as CO 2 capturing and storage technology and highefficiency electric devices.

Initiatives toward the achievement of a soundmaterial-cycle society

Industrial waste emissions and landfill disposal

Development of advanced technologies

09 (FY)08* Industrial waste recycling rate (%) = (industrial waste emissions – landfill disposal
amount) / industrial waste emissions × 100■ Some of the main applications of recycling of industrial

waste, etc.

Type of industrial waste

Recycling rate

Main recycling
applications

Sludge(Desulfogypsum, wastewater processing sludge, etc.)

95%

Construction
materials

Soot(Coal ash, heavy oil ash, etc.)

100%

Cement raw
materials

Cinders(Coal ash, heavy oil ash, etc.)

100%

Rare metal
recovery99%

Waste oil
Metal scraps
Demolition debris(Waste concrete utility poles, etc.)

Fuel

100%

Metal
recovery99%

Roadbedmaterials■ Recycling of insulator scraps

Volume to be processed

5,534 units

Volume processed so far(cumulative)

1,403 units■ Mobile decontamination treatment technology for
waste electrical equipment containing trace lowconcentration PCBs
Since it was determined that some equipment, such as transformers,
were contaminated with trace amounts of PCBs, Kansai ElectricPower has been working on research and development ofprocessing technology for safe decontamination of such equipment,
and in fiscal 2008 underwent evaluation by the PCB Processing
Technology Evaluation Committee (Ministry of the Environment),
receiving technological accreditation for this technology. In fiscal
2009, the Company developed a mobile decontamination treatment
system to remove harmful materials from large and immovableequipment on-site, and both safety and adequate decontamination
capabilities were confirmed through on-site verification testing.

Green purchasing efforts
Kansai Electric Power is conducting green purchasing activities inwhich products and services with minimum environmental impact
are given priority. Specific measures include the creation of a “green
procurement manual” and setting of company-wide targets. In thearea of office supplies, we have maintained a nearly 100% green
purchasing rate for some time, and in terms of green purchasing ofelectric wires, transformers and other equipment for electric power
facilities, we are making every effort to use environmentally friendly
materials.
■ Green purchasing of office supplies
Green purchasing rate
TargetWaste insulator before breakup

Conventional insulator scraps

Overall (45 items)

Polished insulator scraps

While insulator scraps can be recycled as road-paving and other materials,
conventional methods leave scraps with sharp edges that limit their possible
applications. With this in mind, Kanden L&A Co., Ltd., part of the Kansai ElectricPower Group, has developed a new type of polishing device that makes it
possible to recycle insulator scraps without leaving sharp edges, which is
expected to enable a recycling rate of almost 100%.

Results (FY 2009)

Nearly 100%

97%

Copy paper

99%

Stationery supplies (28 items)

90%

Fixtures (11 items)

92%

Office equipment (5 items)

100%

Kansai Electric Power Group CSR Report 201028

Progressive Approach to Environmental Problems

Initiatives toward a trusted, environmentally advanced
corporation■ SOx and NOx emissions per unit of thermal power generated(g/kWh)Environmental protection measures at power plants
At our power plants, we undertake measures based on laws,
regulations, environmental protection agreements and other rules
to reduce atmospheric pollution, water quality contamination, noise,
vibrations and other problems. In addition, we monitor and measure
the air and seas around our power plants and carefully evaluate theenvironmental effects of our operations on the regional environment
to ensure that no problems occur.

3.4

3.3

1.2
0

USA

0.7 0.8
Canada

UK

0.6

0.2
0.2

0.100
0.035

France Germany Italy

Japan KEPCO (FY)
05
05
05
05
05
05
07
09
Sources:
Emission amounts: OECD Environmental Data Compendium 2006/2007
Amounts of electric power generation: Energy Balances of OECD Countries 2005–2006
Japan figure: Federation of Electrical Power Companies of Japan

Kansai Electric Power has implemented measures aimed at reducing
the volume of SOx (sulfur oxides) emitted by our thermal power
plants, such as using fuels with lower sulfur content and installing
sulfur scrubbers. To address the issue of NOx (nitrogen oxides),we are taking steps to lower emission levels, including installationof nitrogen scrubbers and improvement of combustion methods.
As a result, our SOx and NOx emissions proportional to the volumeof electric power generated are ranked among the lowest in theworld. In addition, we have installed high-performance electric filters,
drastically cutting soot emissions.

An environmental assessment is a consultative process with respect
to the environmental impact of a company’s business activities. The
company’s operations are measured and evaluated to determine thedegree of their environmental impact. The results are disclosed to
the regional community and opinions are canvassed. These findings
inform the company’s environmental efforts and are reflected in its
operating plans.
At the Himeji No. 2 Power Station, we conducted anenvironmental assessment between May 2007 and March 2010
in conjunction with an ongoing facility renewal that will incorporatea state-of-the-art, combined-cycle power generation method.
By employing this highly efficient method featuring a 1,600°C
gas turbine, the updated facility will allow for reductions in the
CO 2 emissions factor and amount of heated wastewater andNOx emissions. We will continue the process of environmental
assessment and work to start operations at Unit 1 in October 2013,
ensuring that we have the public’s understanding at all times.

(GWh)
Thermal power generation

40

80,00030
42,97560,00020

40,00010

20,000
0.15

0
65

70

75

80

85

90

95

00

0

09 (FY)480,0003

60,000Inspired by nearby Himeji Castle,a World Heritage site, the new
design of Himeji No. 2 Power
Station employs colors that blend
harmoniously with thesurrounding natural and urban
environments.

Item

30000

2

40,0001

0.43

020,000
0

65

70

75

80

85

90

95

00

09 (FY)

Current state

20000 2,550 MW (6 units,

LocationSprayed materials
containing asbestos

Thermal insulations, acoustic materials,
fire-resistant materials and soundproof
materials of transformers

Building
materials

Asbestos
cement tubes

3.0
Tubing for buried cables(power transmission and distribution, 2.5
communication equipment)
2.0
1.5

Products
containing
asbestos

Thermalinsulation

Power generation equipment(thermal, nuclear)

Sealants andjoint seating

Power generation equipment(thermal, nuclear)

Shockabsorbent
materials

Suspension insulators for powertransmission equipment, etc.

Adhesives

Aerial power transmission cables,hydroelectric dams

250–600 MW each)
Natural gas

Natural gas

Approx. 42%

Approx. 60%

0.470 kg-CO2/kWh

0.327 kg-CO2/kWh

453 m3N/h

70.8 m3N/h

103 m /s

60 m3/s

Oct. 1963 (Unit 1) to
Nov. 1973 (Unit 6)

Scheduled: Oct. 2013
(Unit 1) to Oct. 2015 (Unit 6)

Fuel used 10000
Power generation terminal
thermal efficiency (lower
calorific value base)CO2 emissions factor

0

Amount of NOx emissions

300000
Amount of heated wastewater
Scheduled start ofoperations

30000
100000
20000

3

60000
40000
20000
0

Substances

1.0
0.5
0.0

Proper handling of chemical substances
In addition to complying with the PRTR Law (Pollutant Release andTransfer Register Law), the Company has prepared a Handbook
on PRTR Chemical Management, and we follow its guidelines toensure the strict management of hazardous chemical substances,and to make efforts to reduce the volume of such substances.
In accordance with the PRTR Law, we report to the national
government our volumes of chemical emissions and the amounts
transported, and regularly make the same information public.

Discharge (t/year) Transferred (t/year)
FY 2008 FY 2009 FY 2008 FY 2009

2-aminoethanol

0

0

13

10

Asbestos

0

0

26

20

Bisphenol A epoxy

＜0.1

＜0.1

0

0

Ethylbenzene

15

10

0

0

Xylene

30

31

0

0

HCFC-225

4.2

5.6

0

0

Styrene

—

5.3

—

0

Toluene

13

7.4

0

0

Hydrazine

＜0.1

＜0.1

4.8

4.0

0

0

7.1

13

0.12

0.50

3.5

8.2

Tris (dimethylphenyl) phosphate

Flame-retardant boards, roofing andflooring in buildings, etc.
3.5

Post-renewal
2,919 MW(atmospheric temperature 4°C)
(6 units, 486.5 MW each)

40000
200000Kansai Electric Power Group CSR Report 2010

Application

80000

Power generation method Steam power generation Combined-cycle power generation
Power plant output

42,975used (as of March 31, 2010)

facility renewal■ Himeji No. 2 Power Station in its current state and post-renewal(GWh)
Thermal power generation(10,000 t)
NOx emissions■ Locations (buildings and equipment) where asbestos is■ Computer rendering of Himeji No. 2 Power Station after

40000■ Thermal power generation and NOx emissions

29

0.8

Implementing environmental assessments(10,000 t)
SOx emissions

Kansai Electric Power has been periodically monitoring andappropriately managing the condition of facilities identified as
containing asbestos and taking appropriate action. We continue toundertake appropriate management and execute carefully planned
measures to handle asbestos.

1.6 1.4 1.4

Air pollution prevention measures (NOx, SOx, soot)■ Thermal power generation and SOx emissions

Efforts to handle asbestos problems

SOx emissions
NOx emissions

3.1 3.2

to PRTR Law

Kansai Electric Power has produced our own Handbook on
Measures Against Soil Pollution, and complies with all laws andregulations relevant to soil contamination. Moreover, our power
plants have water- and oil-retaining walls installed, preventing soil
contamination from chemicals and fuels such as heavy/crude oil in
the unlikely event of leakage.

Promotion of community environmental protection measures
At Kansai Electric Power, we conduct comprehensive efforts
to protect the community environment, including preventing
atmospheric pollution and water quality contamination. We
also take appropriate measures to prevent chemical
substances from harming people and the environment.

■ Discharge and transferred chemical substances subject

Measures to prevent soil and groundwatercontamination

Dioxins2(mg-TEQ/year) (mg-TEQ/year) (mg-TEQ/year) (mg-TEQ/year)* Quantities indicated are for facilities that handle quantities greater than those
designated under the PRTR law.
* A “0” indicates no discharge, etc.
* “<0.1” indicates discharge, etc. was less than 0.1 t/year.
* A “—“ indicates that the item is not applicable to any Company facility.
* Displayed to two significant digits

Preservation of biodiversity
When conducting business activities, Kansai Electric Power monitors
and analyzes their effect on the environment, and takes steps topreserve biodiversity, taking the specific characteristics of the region
into account. For example, when constructing power plants, theCompany performs environmental assessments, and minimizes
the impact on plants, animals and habitats, while creating natural
woodlands using our ecological revegetation method and biotopes
that provide habitats for animals. In addition, we work to raise
environmental awareness through educational programs making useof these woodlands and biotopes, as well as partnerships and ties
with the local community.
A variety of small animals can be seenon the grounds of our power plants(Left: Shrike; Right: Japanese Bush
Warbler)

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0

80000
60000
40000

Kansai Electric Power Group CSR Report 201030

Progressive Approach to Environmental Problems■ Creation of natural woodlands (ecologicalrevegetation)

Promoting environmental communication■ Biotopes

The Company is working to create natural environments around ourbases of operations, an endeavor rooted in the three fundamental
principles of “preserving and protecting nature,” “restoring nature,”and “creating nature.”
In particular, we are engaged in efforts to quickly create natural
woodlands using our ecological revegetation method in the largescale open spaces surrounding our power plants. The method
involves dense planting of mixed varieties of saplings, particularlyof tall tree varieties native to the woodlands of the region, in soil
modified and arranged for optimum growth. Trees grow three tofour meters in the three years following planting, and seven to eight
meters in the first ten years, creating a mature forest more quickly
than it would occur naturally. We first introduced the method atTanagawa No. 2 Power Station in 1977, and we have successfully
created a large number of natural woodlands at our power plants,
including Gobo Power Station and Nanko Power Station.

We have been working to create environments (biotopes) aroundour power plants, with the goal of making good use of the natural
resources at our disposal, and creating benefits for surrounding
communities in the form of environmental education, connectedness,and social exchange. At the “dragonfly pond” on the grounds of the
Sakaiko Power Station, autumn brings a wide variety of dragonflies
such as the common skimmer and lesser emperor, while the
Okutataragi Power Station biotope in Hyogo Prefecture provides avaluable breeding ground for the endangered forest green tree frog.
The biotope at Himeji No. 1 Power Station is a habitat for fireflies
and a valuable environmental education resource for children, witha “nature-watching party” held here each autumn, and opportunities
for local elementary school children to release Japanese firefly larvae
into the wild.

Committed to the creation of a better environment and theachievement of a sustainable society, Kansai Electric Power is
not only weighing various ecological issues, but also working
actively with our customers and the regional community toraise environmental awareness. We have divided our efforts
into categories depending on the type of customer they target,in the hopes of raising awareness as effectively as possible.

Family-oriented activities■ Eco e-Life Check: an environmental household
account book
The Kansai Electric Power Web site features the environmental
household account book “Eco e-Life Check,” a tool used to monitor
CO 2 emissions and encourage reductions in emissions fromhouseholds. Users simply input the amount of electricity, gas, water,and so forth that they use in order to calculate their CO2 emissions.
After registering with Eco e-Life Check online, users can view
their own CO2 emissions volumes on a personalized Web page, andcan also use tools for self-evaluation, comparing their results withthe average of all members and checking their ranking comparedwith other users on the site. Families can have fun together as theywork to continuously reduce their CO2 emissions, and can also enjoy
twice-monthly Web site updates like useful environmental informationin the Eco-Mame section, and messages from members in the “Minnano Hiroba” section. In addition, for every 10 people who register as
members, Kansai Electric Power plants one tree, in the hopes ofencouraging as many people as possible to join.

Nanko Power
Station“Dragonfly pond” at Sakaiko
Power Station“Nature-watching party” held at
Himeji No. 1 Power Station

Windbreak net
Saplings
Tree height after 10 years
Ameliorated soil
(30 cm thick)
Added
soil

7–8 m
3–4 m

Tree height after 3 years

1m
Base soil

Side facing sea

Side facing power plantSea

Ecological revegetation method■ Protection of rare plants on power plant premises
We take steps to protect rare plants found in areas scheduled
for power plant construction or renewal work. For example, thebarrentwort was discovered growing in such an area scheduled
for construction on the grounds of Maizuru Power Station andtransplanted to the natural woodland on the power plant premises,
and in an area of Sakaiko Power Station where construction work forfacility renewal is planned, specimens of the rare small potamogeton
panormitanus were discovered and relocated to the “dragonfly pond”
biotope. After transplant, the health of the plants is monitored.

Just enter the information required
and receive a quick calculation ofyour CO2 output.

Activities oriented toward the next generation■ Kanden e-Kids Club
Each year since 2006, children in the fifth and sixth grades inour service area are invited to participate in a series of ecologicalprograms, known as Kanden e-Kids Club. In fiscal 2009, a total of
200 children took part in this program, which encourages them torecognize, find out about and take action on global warming and awide variety of environmental problems.
Kanden e-Kids Club canvasses for new members every June,and activities continue from theopening ceremony in July tothe program’s end in March of
the following year. The children
take part in activities including
hands-on nature experiences,
visits to facilities, and the Kids’
ISO Program, which encourages
children to play a leading role in
reducing their families’ energy
A hands-on nature experience
consumption.

2■ Green Curtain
Since fiscal 2008, Kansai Electric Power has been conducting a
campaign to raise environmental awareness using “Green Curtains,”
led by staff from Company branches and district offices, at regional
elementary schools. A “Green Curtain” is a net, cast across an entire
window, on which climbing plants are grown, eventually covering
the entire window. The curtain is an effective device for reducing
energy consumption: it shades
the interior from the sunlight,
regulating indoor temperatures,
while the plants’ evaporating
effect cools the surroundingarea. Company staff members
visit elementary schools, explain
the purpose and effects of theGreen Curtain and how it iscreated, and assist the children
in planting seedlings of their Planting seedlings for a Green Curtainown.
at an elementary school■ A natural woodland created by Kansai Electric Powerusing our ecological revegetation method
Areas of ecological revegetation:
15 times the size of Koshien Stadium (approx. 600,000 m2)
Kansai Electric Powersupply area

Maizuru Power Station

Acquisition of the EcoLeaf environmental label

Ecological revegetation
at Ako Power Station

Ohi Power Station
Miyazu Energy Research Center
Aioi Power Station

Himeji No. 1 Power Station
Himeji No. 2 Power Station

Ako Power Station

Photo taken Sept. 1987

Nanko Power Station

The barrentwort (left) and the area where it wastransplanted (right)

Tanagawa No. 2 Power Station
Gobo Power Station■ Future efforts aimed at preserving biodiversity
Photo taken Oct. 2007

* Kansai Electric Power maintains vegetated areas, including natural woodlands,
covering 78 million m2 (30 times the size of the Expo Park in Osaka)

31

Kansai Electric Power Group CSR Report 2010

The Company intends to continue closely following domestic andinternational trends, and making contributions to the preservation of
biodiversity in accordance with the Electricity Utility Industry’s Action
Guidelines for Biodiversity formulated in April 2010 by the Federationof Electric Power Companies of Japan.

Kansai Electric Power’s main product, electric power (gridelectricity), has received the EcoLeaf environmental label.
The EcoLeaf environmental label is an environmental labelingsystem that is operated by the Japan Environmental Management
Association for Industry (JEMAI). This system uses third-party
verification of quantitative environmental data for the productlifecycle from the gathering of raw resources to disposal andrecycling. In July 2003, Kansai Electric Power became the firstbusiness in the energy services field to receive this registered andpublicly certified label.
Each year, we update our results with the latest available
data, and in the future we will continue disclosing environmental
information so as to maintain the trust of our customers.

■ Registered and published data for

FY 2008 results
Product name: Grid electricity
Specification: 60 Hz
Fiscal year:
2008
Global-warming load during life cycle(CO2 equivalent): 0.417 kg-CO2/kWh (FY 2008)
CO2 emissions in power generation:
Adjusted emission factor 0.299 kg-CO2/kWh<0.355 kg-CO2/kWh> *1(FY 2008)
Adjusted emission factor 0.344 kg-CO2/kWh<0.355 kg-CO2/kWh> *2(5-year average for FY 2004–FY 2008)*1 Figures in < > brackets indicate the CO2 emissions factor before CO2 credits are taken into account. The “adjusted emission factor” is the CO2 emissions
factor after CO2 credits are taken into account.
*2 Updates to the FY 2009 results are based on the Law to Promote Measures Against Global Warming, in consideration of the Company’s CO2 emissions factor
as published by the government of Japan.
*3 For details on the certification data, please visit our website at (http://www.kepco.co.jp/kankyou/ecoleaf.html) or the website for the Japan Environmental
Management Association for Industry (http://www.jemai.or.jp/english/ecoleaf).

Kansai Electric Power Group CSR Report 201032

Progressive Approach to Environmental Problems

Promoting environmental management
The Kansai Electric Power Group has introduced anenvironmental management system based on the total quality
management (TQM) system, and is working to reduce theenvironmental load of our business activities throughcontinuous improvements.

The Group-wide promotion system
In order to further promote our environmental activities across Group
companies, in August 2005 we established the Kansai ElectricPower Group Environmental Management Committee, which
formulates, checks and reviews Group Eco Actions in conjunction
with the Company’s CSR Promotion Council‘s Environmental Board.
In fiscal 2007, we completed maintenance of our risk
management system primarily focused on legal risks and covering
consolidated subsidiaries, among other areas. We will continue topromote these initiatives and work to reduce both environmentalload and environmental risk throughout the Group.
■ Environmental management promotion system of

Kansai Electric Power and its Group companies

Observance of laws and regulations
Kansai Electric Power abides by all laws and regulations related
to the environment. We also ensure strict compliance withenvironmental protection agreements concluded with local
governments in the areas of our power plants. We did notreceive any guidance, notices or orders from any national or local
government entity in fiscal 2009 regarding these environmental laws,
regulations and agreements, nor were there any violations of said
agreements.

A management system conforming to ISO
standards
Since fiscal 1997, the Company has utilized an environmental
management system (EMS) compliant with the ISO 14001
international standards for environmental management, primarily at
our thermal power plants. We have also obtained ISO 14001 external
certification for the model business locations we set up for eachbusiness format, as shown below.
■ Business locations acquiring ISO 14001 external

Kansai Electric Power conducts a wide range of activities toraise the environmental awareness of employees, so as topromote environmentally friendly business activities.

■ General educational programs

Employee education● Main educational programs■ Specialized educational programs
In order to foster human resources that can both understand and act
on the Kansai Electric Power Group Environmental Action Plan (seep. 17), we have developed specialized education programs for our
staff in charge of environmental issues at each base of operation.

● Main educational programs

The Company is actively promoting awareness by ensuring that all
employees are well informed about environmental initiatives in the
Kansai Electric Power Group and in society as a whole.

❶ Environmental e-learningThis is a flexible online educational program. Lectures are
conducted about three times a year with creative formats andcontent, such as lectures held during Environment Month(June).

2❷ Challenge training
This training is aimed at encouraging self-development andproviding more advanced knowledge. Topics of high interest
to employees, such as trends in global warming, are covered,and efforts are made to offer training to as many employees as
possible.

❶ Training of newly appointed personnel and officials
in charge of environmental issues
Cultivation of human resources capable of performing
environment-related duties at bases of operation❷ ISO 14001 staff training / internal auditor training
Cultivation of human resources capable of constructing andadministering environmental management systems

certification (as of the end of May 2010)

President

Kansai Electric Power

Environmental Board
Chairperson: Executives in charge ofenvironmental affairs
Vice Chair: Director of the Office ofEnvironmental Considerations
Committee members: Chairperson appoints
from among headquarters and enterprisedivision and office heads

Cooperation

CSR Promotion Council• Working Group to Address Global
Environmental Problems• Cyclical Business Activities Promotion
Working Group

Kansai Electric PowerGroup Environmental
Management Committee
Committee chairperson:
Director of the Kansai
Electric Power Office ofEnvironmental
Considerations
Committee members:
Staff responsible for the
implementationof environmental
management at eachgroup company(62 companies asof May 31, 2010)

Office of Environmental Considerations

Managers of businesslocations under directcontrol ∗BusinessformatElectric
power
generation

Managers of operationand maintenance offices ∗Managers of
power plants ∗∗ Supervisor for promotion of environmental management activities

Himeji No. 1 Power
Station (thermal)
Kainan Power Station(thermal)Nanko Power Station(thermal)Electric
power
circulation

Himeji Substation
Electric Power Circulation
Division
Technical Testing Center

Company name
ENEGATE Co. Ltd.
THE GENERAL ENVIRONMENTALTECHNOS CO. LTD.
Environmental e-learning

Kanden Engineering Corp.
KINDEN CORPORATIONInternal auditor training

K-Opticom Corp.
NEWJEC INC.
Kanden Plant Corp.

Efforts to raise environmental awarenessamong our business partners

Managers ofsales offices ∗Managers of Nuclear Power Division,
branch offices, district offices andFossil Power Administration Center ∗Group companies

Business location
name

Ohi Power Station(nuclear)Group companies(Environmental Management Oversight Department)

Managers of
headquarters,
divisions and offices ∗Raising the environmental awareness of employees

Kansai Electric Power conducts a wide range of activities toencourage our business partners to pursue environmental initiatives.
In fiscal 2009, the Company sent out a mailing to our main business
partners encouraging environmental awareness, based on the resultsof a questionnaire we gave to these business partners. In addition,
we sent out information on our environmental household accountbooks.

Renewable energies
Solar power generation system

Renewable energy sources are gifts from nature that can be
renewed in a natural environment, such as light and heat fromthe sun, wind, hydroelectric power, geothermal energy andbiomass. Unlike fossil fuels such as oil and coal, there is norisk of drying up, and they are clean energy sources capableof expediting major cuts in CO2 emissions. Heat from the air,which can be harnessed using heat pump technology, hasbeen recognized as a renewable energy source in the EU andin Japan, and the government is making efforts to encourage
its widespread adoption.

Solar power generation converts the energy of the sun’s rays directly into electricity, and emits no CO2 during
generation.

Sunlight■ Eco Action: Group company concrete action plans
Item
Reducing officeelectricity
consumption
Reducing utility
water
consumption
Improving fuelefficiency ofcompany vehicles
Reducing copy
paper
consumption

FY 2008
results

Targets and results in FY 2009
Targets
Results

1% or more
reductioncompared to theprevious fiscal year
1% or more
reduction
271,700 m3 compared to theprevious fiscal year
1% or more
improvement
8.52 km/L compared to theprevious fiscal year

47.9 GWh

889.3 tReduceas much as
possible

0.2% decrease
compared to theprevious fiscal year
47.8 GWh
0.6% increase
compared to theprevious fiscal year
273,400 m3
4.8% improvementcompared to theprevious fiscal year
8.93 km/L
5.0% increase
compared to theprevious fiscal year
933.7 tTargets
FY 2010 FY 2011 FY 2012

Evaluation(Reasons for increase/reduction)

1% or more reduction
comparedto the previous fiscal year

Due to an increase in the number of offices and corresponding
rise in energy consumption, we were unable to reach our target.
We will continue to carry out energy-saving activities.

1% or more reduction
comparedto the previous fiscal year

Due to a rise in the volume of water consumed at some of thetarget offices, we were unable to reach our target. We willcontinue to carry out water-saving activities.

1% or more improvementcompared to theprevious fiscal year

Thanks to the proactive introduction of fuel-efficient vehicles, the fuelefficiency of vehicles improved and we were able to reach ourtarget. We will continue to promote improvements in fuel efficiency.

Reduce as muchas possible

Owing to an increased workload and other factors, we wereunable to reach our targets. We will continue making efforts to use
less paper.

Heat from the air

Sunlight

Solar heat

Wind power

Renewable energy
Heat fromthe air

Biomass
Hydroelectric Geothermal
power
heat

EcoCute
EcoCute uses electric power to harness heat from air warmed by thesun, producing thermal energy equivalent to more than three times theelectricity consumed.

* As the number of applicable companies increased during fiscal 2009 from 40 to 44, this report evaluates the results for 44 Group companies.

33

Kansai Electric Power Group CSR Report 2010

Kansai Electric Power Group CSR Report 2010

34

3

Proactive Contributions to Development of Local Communities

Contributing as a member of society

Activities that meet local needs at eachbusiness location■ Engaging in activities together with local
communities
Kansai Electric Power holds a range of events at business locations
such as branches and sales offices, to interact with local people indifferent areas. Below, we introduce just some of the events in which
we participate alongside people from the local communities.
We also value our activities together with local communities atnuclear power plants in Fukui Prefecture, which play a major role inproviding electricity to the Kansai region, while paying attention tothe opinions of local people.

■ Electrical equipment checkups at local culturalproperties
In collaboration with local fire departments and other organizations,Kansai Electric Power checks electrical equipment at culturalproperties such as shrines and temples. Staff check for electricalleaks and wiring faults, and advise customers on the safe use ofelectricity in accordance with their equipment. Equipment inspections
are also offered to elderly
people living alone andsocial welfare facilities.

■ Cleanup activities in cooperation with local
communities
yearly “Fureai Festa” where local
children present choral performancesand dances.

participated as volunteers in the FY
2009 Naniwa Graffiti Cleanup Day
organized by a local ward office.

Each business location holds cleanup activities together with local
residents to help beautify the local environment. As well as cleaning
up around the site, staff work together with local governments,neighborhood associations, and other groups in wide-ranging
cleanup activities covering beaches, rivers, tourist spots, and welfare
facilities.

Support for Kansai culture, art, and sports■ Kanden Collabo Art 21■ The Hanshin Sales Office takes part in ■ Staff of the Hokuriku Branch participateda yearly Christmas party held by a local
social welfare institution, giving presentsbought with money including donations
from staff.

as volunteers in a festival at an
institution for severely disabled people,
helping to set up the venue and staff
refreshment stands.

Since 2001, Kansai Electric Power has been holding the Kanden
Collabo Art 21 public art exhibitions in collaboration with theTanpopo-no-ye Foundation, with the aim of creating the opportunity
for people with disabilities to express themselves through art andparticipate more actively in society. In FY 2009, the ninth year of
the event, almost 1,000 works were submitted from the entire
Kansai region. As well as supporting social participation by disabled
people, selected works formed a traveling exhibition that visited nine
venues in the Kansai region for four months from late November, inconjunction with Disabled Person’s Week, with the aim of enabling as
many people as possible to experience the appeal and possibilitiesof these works of art.

■ Classical music concert■ Many members of staff from the Kansai Electric Power Group ran in the Mihama

Itsuki Hiroshi Marathon, which is put on every spring by the town of Mihama, Fukui
Prefecture (photo on left). The Mihama Power Station worked together with people
from local communities and partner companies in a variety of different ways, such as
picking up trash from the course before the race (photo on right).

■ Takahama Power Station staff helpedwith the “Wakasa-Takahama Fishing
Festival in Uchiura” event, from setting
up the venue to measuring catches andorganizing records.

35

Kansai Electric Power has held a yearly classical music concert since1988 as part of its cultural promotion activities in the Kansai region.
The FY 2009 Kanden Classical Special “Invitation to the Opera” wasa performance of Puccini’s opera Madame Butterfly. Around 2,500
people were invited to attend free of charge over two days, allowing
them to experiencemarvelous singing voices
and performances. Yearlyclassical concerts are also
held at different branches.

■ Ohi Power Station staff took part in

Kansai Electric Power Group CSR Report 2010

the preparations for the Super Ogase
summer fire festival held in the local
town of Ohi, including making the hugetorches.

Kansai Electric Power is
supporting American football,a popular college sport in
Kansai. We sponsor the
Kanden Flashbowl Seriesof matches held in spring
and fall, and are working topromote American footballamong Kansai students.

FY 2009 performance in The Symphony Hall
(Osaka)Support systems and their results

Volunteer time-off program
Results (FY 2009): 73 instances totaling 213 days
This system allows employees that participate in activities that contribute tosociety and meet fixed conditions to take 50% or 100% of the time devoted
to such activities as specially recognized time off, up to an annual limit.

Volunteer sabbatical program
Utilized by 15 employees from FY 1992 to FY 2009

Kanden Flashbowl Series

Support for employees engaged in activities
contributing to society■ Social Contribution Activities Support System datingfrom 1992

Staff of the Wakayama Sales Office inspecting
wiring and lightning rods in temples and shrines
designated as national treasures■ The Moriguchi Sales Office holds a ■ The staff of the Namba Sales Office■ Sponsorship of college American football in Kansai

To support employees who engage of their own accord incommunity activities or volunteer programs, we encourage themto use our volunteer time-off and matching gift programs. We also
provide information on volunteer activities through channels such as
in-house publications.

This program enables employees who have worked for the company for five
years or more to take up to a year off in order to participate in long-term
volunteer work for a public social welfare organization. In the case of theJapan Overseas Cooperation Volunteers, the maximum sabbatical period is
two years and six months.

Matching gift program
Results (FY 2009): 5 instances totaling ¥330,000
Under this system, the company makes contributions up to a set limit tomatch support provided, either by individual employees or collected throughworkplace fund-raising activities, to public organizations that meet fixed
requirements.

3

Efforts for regional vitalization
Developing promotional activities to attract
businesses to Kansai
As a company developing in step with local communities, Kansai
Electric Power seeks to play a role in revitalizing the regional
economy and ensuring sustainable development. To achieve thisgoal, we are collaborating with local governments and businessorganizations in efforts to encourage new businesses to locate in
the Kansai region. In concrete terms, we provide information on
industrial parks and incentive systems offered by local governments
to companies nationwide that are considering capital investment,
and explain the benefits of locating in Kansai.
We also publish the bimonthly magazine Community Informationand the “KANSAI Guide to Investment” Web site, containing
information on industrial promotion policies by local governments,
available industrial sites, and industry-university collaboration
projects, as well as the latest information on the attractions of
Kansai.
Recent years have seen the establishment in Kansai ofnumerous large, cutting-edge factories related to flat-panel television
manufacture, resulting in the formation of what is called “Panel Bay”
(a nickname for Osaka Bay), and there is also an increasing numberof factories concentrated in environment-related industries such as
solar cells and lithium ion batteries. As an even greater concentrationof such companies is anticipated in the future, Kansai Electric Powerwill utilize the services of the Kansai Electric Power Group to develop
solutions-oriented activities to attract new businesses.
Kansai Guide to Investment
http://www.kepco.co.jp/i-park/

Using light to promote urban development
Osaka, located at the center of the Kansai region, has historically
been known as the “City of Water” for its numerous canals andrivers. The “Osaka City of Light” project is one initiative making useof this appeal to revitalize the city, jointly promoted by governmental
and private representatives under the guidance of the “City ofLight” Planning Promotion Committee. Kansai Electric Power isacting as the secretariat for this committee, and is responsible forplanning and promoting the creation of “Osaka City of Light.” When
three bridges were floodlit during the Aqua Metropolis Osaka 2009
event, we helped to ensure the lighting was appropriate to the
Nakanoshima cityscape and acted as the contact point for press
releases, contributing to the “Osaka City of Light” project that the
governmental and business sectors collaborate in.
We are also deeply involved in the planning and management of
Osaka Hikari-Renaissance, now a well-established winter traditionin Osaka. In 2009, thanks to an expanded area and improved
content, the number of visitors more than doubled to 3.04 million.
As part of the “Osaka City of Light” project, we are also developing
links and sharing information with other cities throughout Japan, as
well as developing international PR activities. Domestically, many
cities in Kansai are engaged in efforts to use light as a tool for urban
revitalization, and Kansai Electric Power is helping to promote“City of Light” projects in cities throughout the region in addition to
Osaka—for example by hosting a “City of Light Information Exchange
Meeting” between Osaka, Kyoto, and Kobe in November 2009.
Internationally, in March 2009, Osaka became the first Japanesecity to join the Lighting Urban Community International (LUCI), aninternational network for creating urban lightscapes. Kansai ElectricPower attended the Annual General Meeting held in October thatyear in Gwangju, South Korea as a representative for the “Osaka Cityof Light” project, and disseminated information on the project to theinternational community.
If the “City of Light” project becomes a Kansai-wide initiative,
and we can disseminate information internationally while working to
improve collaboration, this will increase the appeal of the region asa whole. Kansai Electric Power is continuing to play a central rolein “City of Light” projects throughout the Kansai region, not just in
Osaka, thus contributing to theregion’s economic vitalization.

The floodlit Tenjinbashi Bridge during
the Aqua Metropolis Osaka 2009
event, and the large fountain in
Nakanoshima Park installed during
the same period

Kansai Electric Power Group CSR Report 201036

4

Respect for Human Rights, Development of Favorable Work Environments■ f-Staff system

Respect for human rights

Basic policy
The Kansai Electric Power Group, aware of the social responsibility it
should exercise as a corporation, is engaged in initiatives to deepena correct understanding and awareness of human rights on the partof every employee in order to eliminate all forms of discrimination,
including the burakumin issue.
As well as working to develop respect for human rights anda pleasant working environment, we are proactively engaged in
activities to create a system with zero tolerance for all forms of
discrimination and achieve our goal of being a discrimination-freecompany.

Kansai Electric Power also understands the international
agreements and standards regarding human rights, and rejects
child labor and forced labor. With respect to sexual harassment andpower harassment in the workplace, the Company has established
Harassment Consultation Desks and is working toward the rigorous
prevention of all types of human rights infringement in collaboration
with the Compliance Consultation Desks.
In addition, to ensure the active implementation of suchinitiatives in collaboration with Group companies, Kansai ElectricPower provides support for education and training as well as sharing
a range of information on respect for human rights, and is aiming to
expand these initiatives further in the future.

Promotion of diversity and creation of comfortableworkplaces

Through our f-Staff system, introduced in 2005, we have reemployedapproximately 30 women who resigned their jobs with Kansai
Electric Power to give birth or to raise their children. Based on theirwork performance, such f-Staff members may eventually be hired
as full-time employees, if they so desire; four f-Staff members havebeen rehired as full-time employees so far. The system was further
expanded in FY 2008 to include the reemployment of employees
who resigned to provide nursing care to family members.

■ Leave systems
Kansai Electric Power offers leave systems to support employees
who are raising the next generation. In addition to providing maternity
leave and childcare leave as mandated by law, the Company offers
its own support measures: spouse maternity leave and family
support cumulative leave.
Spouse maternity leave offers five days’ leave to employees
whose spouses are giving birth, while family support cumulative leavepermits employees to save time from their annual paid leave anddivert it to spouse or family nursing care, or for visits to the hospitalfor infertility treatment.

Promotion of employment of older people
Initiatives to encourage the further success offemale employees
In accordance with the letter and spirit of the 1986 enactment of theEqual Employment Opportunity Law and the revisions of the samelaw in later years, we actively recruit women and enable personnel
deployment with no distinction of gender. We are placing more
women in engineering positions as part of a broader effort to widen
the range of positions in which women are employed. In positions ofresponsibility, the Company evaluates personnel fairly and impartially,basing decisions on individual ability and appropriateness for eachposition, while avoiding gender-based discrimination. As a result,the number of women employed at Kansai Electric Power is steadilyrising.

Supporting the upbringing of the next
generation
Kansai Electric Power provides a range of options that enable
employees to balance work and home duties, such as leave andflexible work systems.

Female employees active in technical workplaces

Number of female employees

Number of female employees
in positions of responsibility

Fiscal 2004

71

63

Fiscal 2009

105

79

■ Leave systems and shortened work hours to support
childcare and nursing
To support employees involved in childcare and nursing, we offer aleave system and system of shorter work hours.

······ 10 years

Maternity leave
6 weeks before
childbirth
8 weeks following
childbirthTemporary childraising leave
Through the end of the fiscal year in which
the child reaches three years of age

Shorter work hours
Extended until theThrough the end of the fiscal year in which start of elementary
the child reaches three years of age
school(from April 2010)

f-Staff system
The employee is re-employed through the end of the fiscal year in which the childreaches 10 years of age, then switches to contract employment thereafter

37

Kansai Electric Power Group CSR Report 2010

Constructive guidance in order topass on skills to younger employees

Promotion of the employment of people withdisabilities■ Main child-raising support systems
Under 1 year 1 year 2 years 3 years 4 years 5 years

Efforts to employ the elderly at Kansai Electric Power predate theimplementation of the Law for the Stabilization of Employmentof Older Persons in 2006, which mandates such measures. Ourreemployment system for employees retiring at the age of 60 was
introduced in 1996. In 2001 we established the e-Staff system, which
greatly expanded the types of work covered. In 2006, we revised
our system to raise the mandatory retirement age to 65 in stages
and expand further the range of positions in which older employees
are placed. Today, more thanhalf of our retirees choose toreturn to work after the age of
60 under the e-Staff system.
It enables older employees tocontinue to use their knowledge
and experience in their familiar
workplaces.

The childcare support system helps female employees who are raising children

For example, Kansai Electric Power introduced a childcare leavesystem in 1991, before this was required by law, and from FY 2010is extending the system of shorter working hours to cover the period
until children start elementary school. This framework is used byalmost all eligible female employees as well as a few male membersof staff, and is firmly established as a familiar system.
■ Status of use of childcare support system

Our efforts to employ disabled people are ongoing. For example, in
1993 we established Kanden L-Heart, a special affiliate company
where we have actively employed disabled people for many years.
Thanks to these efforts, as of June 2010, our employment rate
for disabled people was 2.24%, continuing to exceed the legallyrequired rate (1.8%). We will continue to promote the employmentof people with disabilities, with the goal of increasing their
independence and participation in society.
■ Change in the rate of employment of disabled people
(%)

2.30

Childcare leave

Women: 72 out of 73 female employees who gave birth in FY 2009used this system, and the one remaining employee is scheduled touse it.
Men: Since its introduction in 1991, nine men have used this system.

Shorter working hours

Women: 144 women used this system in FY 2009.
Men: Since FY 2003, two men have used this system.

2.25 2.24
2.10

1.90
0

1.98

2.03

2.08

2.11

05/6 06/6 07/6 08/6 09/6 10/6 (Year/Month)■ Initiatives to promote the employment of mentallydisabled people
At Kanden L-Heart Co., Ltd., 112 disabled people are employed. In
May 2009, the Ministry of Health, Labour and Welfare designatedKanden L-Heart as a “model business promoting the employmentof mentally disabled people,” who are in special need of more
employment opportunities, and in light of this the Company took
on nine mentally disabled people together with three counselors.
The entire Kansai Electric Power Group is united in the effort toimplement this employment model for mentally disabled people
so that it can serve as a reference for as many other companies
as possible, by means such as pioneering new job categories andproviding support to help employees settle in the workplace.

Appropriate management of working hours
We are endeavoring to monitor employees’ working hours accurately
and to comply with applicable laws by, for example, ensuring that
employees working long hours receive guidance from industrial
physicians. We also require employees who work overtime toreceive instructions from management beforehand and to selfreport their hours worked. In addition to having management checkthese reports, we
aim to instill anawareness in all
employees of theneed for appropriate
management ofworking hours.

4

Morning and evening meetings are held in all
business locations to help create a pleasant, open
working environment

Maintenance of stable labor and management
relationsKansai Electric Power has concluded union shop agreements with
the Kansai Electric Power Labor Union, and we have built over 50
years of history of working toward the shared goal of improving
company productivity accompanied by improving labor conditions.
We have built good labor and management relations based on astrong relationship of trust. In order to maintain this good relationship,
we will hold operation confabulations about company management
plans and other topics among other efforts to promote mutual
understanding and agreement between labor and management.

Initiatives to support employee development
Aware that our employees are the driving force behind all thebusiness activities of the Kansai Electric Power Group and that it istheir development that underlies the Group’s overall growth, we are
actively developing a range of initiatives to offer sustained support for
the growth of each employee. For example, Kansai Electric Power
has reviewed its personnel and salary systems so as to offer more
support than ever before for the sustained development of motivatedemployees. In terms of measures for education and training, we aremaking efforts to create even more opportunities for employees toteach and be taught, by means such as improving training programs
designed for different specialties and competence levels, with a viewto enabling the development ofeach individual employee.
The Company is also proactively supporting workplace
events, clubs, and otherinitiatives to create more lively
workplaces overall.
A workplace event

2.2
2.1

Kansai Electric Power Group CSR Report 201038

5Highly Transparent and Open Business Activities

Communicating with stakeholders

A multifaceted dialogue with customers■ Teaching the younger generation■ Promoting better understanding of nuclear power● Mobile classrooms

Approximately half of the electricity Kansai Electric Power delivers to
its customers comes from nuclear power plants in Fukui Prefecture.
Nuclear power is an environmentally friendly form of energy that
does not produce CO2 emissions during power generation. Thus,
nuclear power is not only indispensable for generating the electricity
on which our lives depend, but is also a key element of measures tocurb global warming. Kansai Electric Power is conducting extensive
activities to deepen people’s understanding of nuclear power.

Our future is in the hands of the children who form the next
generation. One of our most vital missions at Kansai Electric Poweris to impart to the younger generation a sense of what energy is andwhy it is so important. Members of our staff visit local elementaryand junior high schools to hold “mobile classrooms” teaching
students about energy. These mobile classrooms explain the basics
of how electricity is produced and transmitted over distances, aswell as how it is used and what we can do to conserve energy andprotect the environment.
The classes are devised to enable students to learn about
energy in fun, simple ways, such as operating a hand-turned
generator to light a light bulb, or using experimental equipment to
explain the effect of CO2 on global warming.

● Observation tours of nuclear power facilities
Kansai Electric Power invites customers to visit Fukui Prefecture
and participate in the observation tours of nuclear power plants andrelated facilities. In FY 2009, some 35,000 people took part in these
tours.

Interaction with local communities via PR
facilities

Providing information through print
publications

Kansai Electric Power is setting up PR facilities for use by thegeneral public at power plants and other locations, both to help
local residents understand our business activities and initiatives inthe electric power industry and to deepen communication with local
communities.
In July 2008, we opened Elgaia Ohi within the Uminpia Ohi
Marina multi-leisure facility in Ohi, Fukui Prefecture. It includes one of
the world’s largest virtual reality theaters, offering visitors the chance
to have fun while learning about energy and our planet’s future.
In March 2009, we renovated the El City PR facility within the
Nanko Power Station in Osaka City’s Suminoe Ward. It enables
visitors to learn in an interesting way about a range of interestingscientific phenomena in areas such as power, magnets, light, andheat.

We are making use of media, including print publications, to broadly
provide information to deepen understanding of the businessactivities of the Kansai Electric Power Group.
Our regular publications are Yaku, a report aimed at opinion
leaders, which delves into timely social issues, and the public
relations magazine Watt, which features reports on our businessactivities in addition to lifestyle information and regional topics.

Yaku (issued quarterly)

Watt (issued quarterly)

Reflecting community opinions in our businessactivities
Giant virtual reality theater (Elgaia Ohi)

Observation tour at the Nuclear Energy Training Center* For details of observation tours, please contact your nearest sales
office.

“Mobile classroom” illustrating the mechanisms of global warming

El City in Nanko has been renovated with a scientifictheme

Communication via the Internet

V O

I

C

E

Working for harmony with local communities and PR at a frontline workplace

Striving to create trust throughmobile classrooms
I work on activities designed to increase people’s
understanding of our business through initiatives
such as guided tours of power plants, mobile
classrooms, and local events. At mobile
classrooms in particular, I ask teachers about
what they want in advance so as to prepare
better lessons, and in the classes themselves I
try and prepare explanations and experimentsfrom the children’s own viewpoint. Seeing thestudents’ eyes sparkling as they listen or carry out

experiments in classes not only feels worthwhile,
but also gives me a real sense of my role inharmony with local communities and PR activities.
I believe that such activities result in a deeper levelof trust in the Company, and hope to be able tocontinue to use mobile classrooms to give children
the opportunity to think about energy and the
problem of global warming.

Kansai Electric Power Group CSR Report 2010

5

Kansai Electric Power is not only striving for the swift, accuratedissemination of information about the Company, but is also working
to provide content that is easy to use and useful for customers.
For example, in June 2009 we launched a “thunderstorm
information” service on our Web site for use in preventing lightning
damage. We also redesigned our mobile site in March 2010 in light of
the increasingly widespread use of mobile platforms. Via our Kanden
e-Patio Internet members club (with around 35,000 members), we
also send out an e-mail magazine and provide information on the
club Web site in an effort to deepen our relationship with members.
Kansai Electric Power actively hosts discussion
meetings

Kenji Onishi

General Manager’s Office, Kyoto Sales OfficeKansai Electric Power Web site(thunderstorm information)

39

As well as inviting members of the community to obtain a deeper
understanding of the Company’s business activities, Kansai ElectricPower sends staff from business locations to visit customers’ homes
and holds discussion meetings aimed at local key figures and opinion
leaders in order to solicit opinions and requests that the Company
can reflect in its operations.
We thus invite a range of opinions and requests concerning
our business activities, both at events to enable interaction withpeople from local communities and during everyday operations. We
value every piece of feedback, and are developing a diverse array of
public consultations in order to reflect them in our various businessactivities. At the “Dambo-no-Koe” event started in 1994, Kansai
Electric Power employees share opinions received from membersof local communities with the Company in order to improve ouroperations.

Kansai Electric Power mobile
site

Kansai Electric Power Group CSR Report 2010

40

6

Strict Enforcement of Compliance

Consciousness raising and autonomous
efforts in individual workplaces

Compliance promotion system
With the aim of earning even greater trust and fostering an open
corporate culture, Kansai Electric Power established the Kansai
Electric Power Compliance Committee in November 2002.
Compliance Consultation Desks were established both in-house(Office of General Administration [Legal Affairs]) and externally(Miyake & Partners legal office) in February the following year to give
employees a contact point for discussing compliance-related doubts.
Since July 2005, the Compliance Consultation Desks have been
available to all companies belonging to the Kansai Electric PowerGroup, and in April 2006 they were also made available for use bytrading partners as part of the development of a system capable ofgathering a wide range of information on risk.
Notifications to and consultations with the Compliance
Consultation Desks are all reported to the Kansai Electric Power
Compliance Committee. In FY 2009, there were 35 cases across theentire group.
■ Kansai Electric Power Group ComplianceKansai Electric Power
Reportemployees and others(Group company employees
Consultation
Consultationand others)
ReportExternal Consultation Desk(outside lawyer desk)(Consultation Desk)

Consultation Secretariat

Report of outcome(Office of General Administration[Legal Affairs])
Communication/instruction

Lawyer’ s officeon content of consultation

Consultation concerning Group companies
Cooperative investigation of content of consultation and appropriate
cooperation/support for dealing with matters raised

Report ofoutcome

Office responsible for compliancein Group companies
Compliance Committee or responsible
executive in Group companies

Fact-finding
and formulationof action plan byeach company
concerned

Activities to establish solid complianceawareness
To support autonomous, effective workplace activities with a view topromoting an even more pervasive awareness of compliance, staffof the Legal Department at Kansai Electric Power are continuing
to visit frontline workplaces such as sales offices, operation andmaintenance offices, and power stations to engage in dialogue
and training. In FY 2009, 35 visits were made to a total of six
departments, including those related to nuclear and thermal power.
Questions are invited in advance of this dialogue and training toenable staff to deal with material firmly rooted in actual operations.
Answers to a questionnaire completed after attending the sessions
included numerous positive responses and requests for the program
to continue, such as “I felt closer to the Legal Department having
been able to talk face-to-face,” and “Holding this regularly would be
useful for my work.”

41

Kansai Electric Power Group CSR Report 2010

■ Enhanced information dissemination via electronic
media“Horei Mamoru-kun’s Compliance Promotion Office,” establishedin August 2006, has been redesigned, and the database of casestudies concerning legal issues has been improved.
In addition to the Compliance Manual and a supplementary
Casebook in question-and-answer format, Compliance Case Studies
Collections and a range oftraining materials have also
been included, enabling
employees to look up therequired information easily.

Horei Mamoru-kun’s Compliance
Promotion Office

Discussion and training activities

Initiatives to establish autonomous activities ineach workplace

Consultation Desks

Kansai Electric Power legal staff

In FY 2010, Kansai Electric Power will continue to engage
in dialogue and training rooted in actual operations while also
implementing educational dialogue with management-level staff
on contemporary issues such as harassment, enhancing thedevelopment of activities that balance imparting information withraising awareness.

Improving different types of promotion tools
and disseminating legal information

Since FY 2007, Kansai Electric Power has been engage in workplace
discussion activities to enable employees to debate the compliancerisks inherent in everyday operations in the workplace and foster ashared recognition of these risks.
This initiative was continued in FY 2009, and has become anestablished part of CSR educational activities, in the form of activities
adapted to fit individual workplaces based on the April 2009 revised
edition of the Compliance Manual.
These workplace discussion activities are continuing in FY2010 with improved discussion tools aimed at deepening a shared
workplace awareness of compliance risk, with the aim of further
invigorating autonomous activities in the workplace.

Expanded support for Group companies
Visiting compliance training for Group companies, begun in FY
2007, was continued in FY 2009, with a total of 23 visits made to 14
different companies.
Attendees encompassed a wide variety of employees, fromdirectors and management-level to staff levels at each company,
with training mainly comprising raising awareness of compliance.
Areas of interest to attendees were incorporated into the content ofsessions and case study discussions were used to align training with
the needs of individual companies.
This program is being continued in FY 2010 with the aim of
expanding the number of different companies covered, and will
also incorporate training themes dealing with an awareness ofrecent issues, suchas the occurrence ofproblems related tothe diversification of
employment patterns,
in order to continue toenhance our support
for Group companies.

In addition, our in-house publication Homu Joho, which hasprovided information on legislation and compliance since its first
appearance in 1988, has been transformed from the paper version,and is now published in a dual e-mail and database format. In its
new incarnation as an e-mail magazine sent to all employees, it
not only enables the provision of rapidly updated information but isalso designed with a digest version in the body of the e-mail so thatreaders can easily sift through information. The Column on Current
Affairs in Compliance, which explains compliance-related issues ofgeneral concern, is also being sent out as
one part of this e-mail magazine, helping
raise awareness among employees.

Homu Joho■ Compliance with the AntiMonopoly Law
Because the operating environment for Kansai Electric Power
has changed significantly as a result of the liberalization of theelectric power industry, we are required to carry out our operations
with an even greater awareness of the Anti-Monopoly Law than
before. Kansai Electric Power had already prepared a manual andexplanations concerning the Anti-Monopoly Law and distributed
these to all our business locations to make their content known.
Taking the opportunity of the 2009 revisions to the Anti-Monopoly
Law, as well as the review of the Guidelines on Appropriate ElectricPower Trade set out by the Fair Trade Commission and the Ministryof Economy, Trade and Industry, in February 2010 we further revised
our Anti-Monopoly Law Observance Manual (first published 1996,
revised June 2006).
In addition to the preparation of this manual, in March 2010 weheld an Anti-Monopoly Law training session in an effort to ensure aneven firmer understanding of this issue on the part of employees.
We are continuing to provide detailed assistance in FY 2010,
by means such as visiting branches to give training sessions on theAnti-Monopoly Law.

Advance of information security management
Kansai Electric Power has established the Infrastructure Development
Committee chaired by the Vice President with the aim of building astrong management base capable of supporting mid-term and longterm growth. One important management issue it is addressing is

the promotion of information security management.
To advance effective, efficient security control measures, thecommittee deliberates on the formulation of annual plans and on
midterm progress made, from the following four perspectives.

Viewpoints for deliberation of information security management❶ Organizational measures❷ Personnel measures such as education and training❸ Physical measures such as document management andaccess control for offices❹ Technical measures such as improving computer systems

6

Practical measures implemented❶ Organizational measures• Appointment of the General Manager of the Management

Innovation and IT Headquarters as Chief Privacy Officer.
• Formulation of Information Management Regulations, andproduction of the Information Security Rulebook explaining
these regulations in straightforward terms for all employees.
•Self-checking by Information Security Managers regarding
the daily handling of information, including the safe-locking ofconfidential documents and their appropriate disposal.
•Establishment of Kansai Electric Power Group Information
Security Help Desk.

❷ Personnel measures•Enforcement of rules by means of intensive training for new
employees, managerial staff, and other groups.
•Education program on information security for all employees
at least once a year.
• Workplace discussions using case studies, etc.

❹ Technical measures•IC cards (employee identification cards, etc.) for authorizationof computer users.

•Checking by immediate managers to prevent fraudulent use ofcustomer information systems.

•Data-file security system that automatically encrypts data files
taken out of the company.

•Use of system logs to prevent fraudulent manipulation by IT
staff.

•Introduction of measures to restrict the connection of external
storage media to in-house computers.

Enhancement of information security by IC
cards (employee identification cards, etc.)

Provision of locked
furnishings

Individual authorization
for logging in to thein-house network

Rigorous management ofimportant documents andexternal memory media❸ Physical measures
Visiting compliance training•IC cards (employee identity cards, etc.) to control access to

offices, zoning of offices by partitions, strict managementof confidential documents by means such as additional
allocation of shredders and locked furnishings.

Unlocking with keycards
and monitoring ofentrance and exit history

Kansai Electric Power Group CSR Report 201042

Kansai Electric Power Group

This report is also available on the Internet (http://www.kepco.co.jp/english).
Please direct your opinions and questions about this report to the CSR Promotion Group.

The Kansai Electric Power Co., Inc.
3-6-16 Nakanoshima, Kita-ku, Osaka 530-8270, Japan

K10I0006