Kansai Electric Power GroupCSR Report 2008

Contents
Kansai Electric Power Group and its pledge to stakeholders
Editorial policies
Customers

Kansai Electric Power works hard to gain an accurate
understanding of customer needs, in order to build astable relationship with our customers by providing
excellent products and services.

Editorial policies, Contents• This report on the Kansai Electric Power Group’s work related toLocalcommunities

Integrated
energy supply

Information andtelecommunications (IT)Lifecycle-related
business

Business
partners

KansaiElectric Power

Shareholders
and investors

Group businesssupportWe have undergone inspections by a third-party organization toprovide assurance of the objective reliability of the environmental
information provided in this report. As a result of these inspections
and fulfilling the Environmental Report Inspection Registration
Mark Allowance Standards of the Japanese Association of
Assurance Organizations for Sustainability Information(http://www.j-sus.org/), we are allowed to use the mark shown
below.

Kansai Electric Power builds
stable relationships with
suppliers by purchasing safe,
high-quality and reasonably
priced materials and services
which are environmentallyfriendly and delivered in a timely
manner.

At Kansai Electric Power, our employees
are our driving force. We work hard tocreate an organizational climate andsystem that motivate and inspire our
employees, giving them opportunities todevelop their abilities to the utmost.

Group companies (Consolidated subsidiaries and companies to which the equity method is applied) (as of March 31, 2008)
Integrated energy supply
Kanden Energy Solution Co., Inc.
SAKAI LNG Corp.
Kanden Energy Development Co., Inc.
Osaka Bioenergy Co., Ltd.
ECHIZEN ENELINE CO., INC.
Two other companies

Information and telecommunications (IT)KANDEN FUDOSAN CO., LTD.
Clearpass Co., Ltd.

CSR policies
Corporate governance1
2

By disclosing necessary
information in a fair and timely
manner, and working constantly
to build enterprise value, Kansai
Electric Power is building astable relationship with ourshareholders and investors.

Scope of report

Lifecycle-related business

Overview of Kansai Electric Power

Other businessareas
Employees

K-Opticom Corp.
K Cable Television Corporation
Kansai.com, Inc.
Kanden System Solutions Co., Inc.
Five other companies

Message from our President

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

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

KANDEN Security of Society, Inc.
Kanden E House Corp.
KANSAI Medical Net Co., Inc.
Kanden Joy Life Co., Ltd.
KANDEN AMENIX Corp.
Three other companies

Group business support
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 CS Forum INC.
Kanden Office Work Corp.
Kanden Power-Tech Corp.
The Kanden L & A Co., Ltd.
Kanden Business Support Corporation
ENEGATE Co., Ltd.
KINDEN CORPORATION
Eight other companies

Other business areas
KANDEN GEO-RE Co., Ltd.
Kansai Power International Corp.
Kansai Power Venture Management Corp.
Kanden L-Heart Co., Inc.
Kansai Electric Power Australia Pty Ltd.
LNG Ebisu Shipping Corporation
Kansai Electron Beam Co., Ltd.
Three other companies

1
2
3
4
5
6

Kansai Electric Power Group and its pledge to stakeholders

Period covered: April 1, 2007, to March 31, 2008.
(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

Report publication datePublished October 20082007 edition published October 2007.
2009 edition to be published in the autumn of 2009.
● The following symbol and the relevant URL appear in this report

3
4
5
6

Safe, Stable Delivery of Products and Services
Our mission and responsibility as a lifeline service provider

7

Providing services as a unified group9

Progressive Approach to Environmental Problems
2008 CSR Topics
opics Rising to the challenge of technological development
Special Feature to achieve a low-carbon society

11

Environmental policy

15

Status overview of our business activities and environmental load (fiscal 2007)

16

Eco Action (targets and results)

17

Environmental management system

19

Environmental accounting

22

Global warming prevention efforts

23

Efficiency – achieving more efficient energy use throughout society

24

Reduction – decreasing greenhouse gas emissions through the supply of electric power

26

Activities Abroad – efforts to prevent global warming overseas

27

Progressive approach to regional environmental issues

29

Promotion of business activities suitable for a sound material-cycle society

31

Raising environmental awareness33

Independent review

34

Proactive Contributions to Development of Local Communities
Contributions to society as a corporate citizen

35

Respect for Human Rights, Development of Favorable Work Environments
Promotion of diversity and creation of comfortable workplaces

37

Highly Transparent and Open Business Activities
Communicating with stakeholders

39

Strict Enforcement of Compliance
Consciousness raising and autonomous efforts in individual workplaces

41

when related information is available on our Web site.
Web Kansai Electric Power Group Management Vision
http://www.kepco.co.jp/corporate/vision/index.html

Web site for information about the Kansai Electric Power Group’s
work related to corporate social responsibility:

http://www.kepco.co.jp/english/action/index.html
Web site for detailed financial information:

http://www.kepco.co.jp/english/ir/index.html

1

Kansai Electric Power Group CSR Report 2008

Kansai Electric Power Group CSR Report 20082

Message from our President
Overview of Kansai Electric PowerFY 2007, as of March 31, 2008

Nevertheless, as a business with responsibility fordevelop and implement a range of educational activities.

maintaining our customers’ lifelines, we will make the best

I hope that this initiative will lead to every employee

use of the Group’s overall power to ensure energy

thinking about how to respond in an autonomous,security

globalforward-looking manner to the expectations of society andenvironmental issues—which are urgent issues faced byof our various stakeholders in implementing these ideas.

humanity—while at the same time supporting the diverse

This will improve both the quality of our operations andlifestyles of consumers and their economic activities ascustomer satisfaction, leading to the motivation andwe continue to contribute to the sustainable development

growth of individual employees.

and

to

respondproactively

toof society.

We will continue to progressively implement these
initiatives, responding to the opinions of our stakeholders.

Our corporate social responsibility:

By so doing, we aim to make powerful strides toward theFulfilling our mission with trust as the foundation

realization of our corporate image—that of being the top

The business activities of the Kansai Electric Power

company in terms of customer satisfaction.

Group are founded on the trust placed in us by ourcustomers, the local communities where we operate, ourOur communication goal for this CSR Report:

shareholders and investors, our business partners, andWe want to keep moving forward together with you

our numerous other stakeholders.

Our aim is to deepen communication with you by means

1%
9%

Nuclear 42%

engaged in rebuilding a culture of safety. We are also

the challenging initiatives undertaken by the Kansai

66.5 B kWh

striving to reduce our environmental impact and create

Electric Power Group in as practical a way as possible. I

links with local communities by means of consistently

hope that after reading this report you will offer your frankrigorous compliance and the assurance of transparency.

feedback regarding future issues and your expectations.

Our mission:

1951, for over half a century we have continued to fulfill

We regard it as vital for every employee to be involved in

our primary mission to our customers and society throughpromoting CSR in an “autonomous, forward-looking

visiting workplaces on the front line to deepen

worldwide competition for resources, and the increasing

communication concerning the concept and importanceseriousness of global-scale environmental problems.

of CSR, while CSR key persons in each workplace willNotes: 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%.

Takahama
Ohi

MiyazuShin-Kurobegawa
No. 3
Kurobegawa
No. 4

Kiso
Yomikaki

ReinanMaruyama
KeihokuOkawachiYamazakiHigashiomi
Nose Nishi Kyoto
Kisenyamaag
HoMinami Kyoto
aw
ku
a
se
ts
u
Shin-ikoma
In

SeibanShosuke Mori
President and Director

Legends:

Nanko
Sakaiko

Shiki

Higashi Yamato

Hydropower plant
Thermal power plant

Tanagawa No. 2
SeidanKinokawa
Kainanent

rr
t cu
irec eV d ion link0s±25 nsmis
traKansai Electric Power Group CSR Report 2008

Shimokotori

Shin-Ayabe

Kihoku3

Otozawa

Okutataragi

.2
No 1
eji .
m No
Hi eji
m
Hi i
o
Ai
o
Ak

I am personally pursuing a vigorous program of

20.81M kW

Mihamaperceptions and our corporate culture.

unprecedentedly high levels of oil price, intensifying

10.33 M kW

Maizurumanner,” and are engaged in developing both staff

changed greatly in recent years with, for example, theThermal 52%
Nuclear 26%

78.3 B kWh

Supply area:
Osaka, Kyoto, Hyogo (greater part),Nara, Shiga, and Wakayama prefectures;
portions of Mie, Gifu, and Fukui prefectures

expectations of society at large.

Forward-looking action by every employee

Thermal 49%

System map (as of March 31, 2008)

trust by responding proactively and in good faith to the

Since the Kansai Electric Power Group was established in

Hydropower 22%

8.91M kWdeveloped for the implementation of CSR, and describes

Toward the promotion of CSR:

1.1B kWhHydropower

Power Station Unit 3, and the entire company is now

Continue to serve customers and communities

Fiscal year-end power sourcecomposition:(Total 40.05M kW)

Renewable energies

13.7 B kWhof this report. It follows our six action principles

responsibility (CSR) and obtain an even greater level ofThe business environment in which we operate has

Power source composition:(Total 159.6B kWh)

We have reflected deeply on the accident at Mihama

We will redouble our efforts to fulfill our corporate social

the safe, reliable provision of electricity.

Company 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: 962,690,000
Main business:
Electric power industry
Number of group companies: 58 consolidated subsidiaries, 2 affiliates
accounted for by the equity method
Number of employees: 30,040 (consolidated),
20,184 (non-consolidated)
Electricity sales:
150,400 million kWh
Operating revenues: ¥2,689,300 million (consolidated),¥2,478,500 million (non-consolidated)
Total assets:¥6,789,600 million (consolidated),¥6,135,000 million (non-consolidated)

Nuclear power plant
Substation
Okuyoshino

Switching station
Converter station

Gobo

500 kV transmission line
Tie point with other power companies
Kansai Electric Power’s supply area

Kansai Electric Power Group CSR Report 2008

4

CSR policies

Corporate governance

We have set out the Kansai Electric Power Group Action Charter, made up of our six action principles, and theKansai Electric Power Group CSR Action Standards, which enable all Group employees to implement theseactions for themselves.

Kansai Electric Power and its Group companies view improvement of corporate governance as a vital element ofoperational management, and are working towards that goal. This will improve corporate value in the long term, as
well as maintaining the transparency and soundness of its business operations.

CSR Action Principles

1. Safe, Stable Delivery of Products and Services
2. Progressive Approach to Environmental Problems
3. Proactive Contributions to Development of Local Communities
4. Respect for Human Rights, Development of Favorable Work Environments.
5. Highly Transparent and Open Business Activities
6. Strict Enforcement of Compliance
Web Kansai Electric Power Group CSR Action Charter
http://www.kepco.co.jp/corporate/csr/charter.html

The Kansai Electric Power Group CSR
Action Standards
We set specific standards at the individual level in the Kansai
Electric Power Group CSR Action Standards in May 2005 to
help individual employees, as members of society, fulfill theirown responsibilities reliably and be able to respond to the
expectations of society. Individual employees are carrying out
their work duties in accordance with our CSR Action Standards.

Management of risk accompanying businessactivities

Every employee has been issued with a Conduct Card to carry,which is printed with the Kansai Electric Power Groupmanagement vision and CSR Action
Standards. Employees fill in their own action
targets on the reverse side and use the card
to check their actions and targets in theireveryday business activities.
Conduct Card,

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 byextraordinary meetings held when deemed necessary, and it is herethat matters of essential importance to Group management aredeliberated and decided. In addition, all Directors are continuously
audited through regularly issued reports on the execution status of theduties 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 to separate theexecutive and auditing functions of management and to boost the
speed and efficiency of business execution.

In line with the “Kansai Electric Power Group Risk Management
Rules,” risk accompanying business activities is basically managed
autonomously by the executive section of each respective businessdivision. As to risk deemed of importance across multiple
organizational levels, risk management is strengthened bydetermining, when necessary, points in risk management that are
special in nature, in which case experts 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 down to a level deemed
appropriate. Based on this risk management system, the Company
carries out appropriate financial reporting, as stipulated in the
Financial Instruments and Exchange Law, to ensure its
trustworthiness.

Assurance of transparency and soundness

Enhancement of internal auditing functions

Kansai Electric Power uses a system of Corporate Auditors. The
Corporate Auditors attend important meetings, including Board of
Directors meetings and executive meetings, where they state theiropinions, listen to explanations by the Directors pertaining to mattersof importance to Company management, and look into the businessand assets status of the Company’s main bases of operation andGroup companies. By auditing the Directors’ execution of theirduties from the perspectives of legal conformity and propriety, theCorporate Auditors ensure the transparency and soundness of theCompany’s business operations. In addition, meetings are regularly
convened between the Corporate Auditors and Managing 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
Board of Auditors and does not perform any other duties relating to
the executive functions of the Group. Outside committee members
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.

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 or safety, secureviews and information from outside the Company and, from an
impartial and specialized standpoint, maintain proper internal
auditing of 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 ofrisk management systems, risk management status, etc., andsubmits proposals or reports to the executive meetings concerninginternal 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.

Web Kansai Electric Power Group CSR Action Standards
http://www.kepco.co.jp/corporate/csr/standards.html

printed with the CSR
Action Standards.

CSR Procurement Policy
Basic Philosophy of Procurement Activities
Aiming at the best suited formulation, maintenance andoperation of our equipment, 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 Corporate
Social Responsibility (CSR).
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. Purchasing
Department of Kansai EP will set and practice "Behavioral
Standards for the Procurement Activities." We would like you tounderstand the "Behavioral Standards for the Procurement
Activities" and practice "Requests for the Suppliers" in aproactive manner.

Behavioral Standards for the Procurement Activities
1. Highest priority to the safety, maintenance and improvementof quality and technical strength
Giving the highest priority to the safety, we work on a rock-solid footing
on the approaches and measures required for ensuring public safety
and sanitation and for preventing industrial accidents.
Also aiming at the best suited formulation, maintenance and operation of
our equipment, we take approaches and measures that contribute to themaintenance and improvement of quality and technical strength.
We push forward the procurement of environmental-friendly equipment,materials and office supplies (green purchasing) in order to contribute tobuilding up a recycle-oriented society in cooperation with our suppliers.

Kansai Electric Power Group CSR Report 2008

General Shareholders’ Meeting
Appointment

3. Establishment of fiduciary partnership

Board of Directors Meeting (Directors)

5. Full compliance
We observe all the applicable laws and regulations and follow the spiritof the laws. In particular, we give due consideration to the observance ofthe safety-related laws, respect for human rights (including child laborand forced labor prohibition) and strict management of personal dataand confidential information.

Corporate
Auditors

Decision-making and supervision pertaining to important management matters
Submission or reporting

4. Transparent, open business activities
For the purpose of purchasing equipment, materials and services thatexcel in safety, quality and price in a timely manner, we keep the door
widely open both nationally and internationally. Thus we are continuously
exploring ourselves the possibility of introducing new products and newtechnologies, and businesses with new corporations as well.
In choosing the supplier, we stick to being fair and impartial whilepursuing both economic and social rationalities, based on safety, quality,
technical strength, environmental-friendliness, fiduciary relationship withour company, price, certainty of delivery deadline & construction
schedule, implementation of maintenance and management, after-sales
service, response to accidents or malfunctions and other factors.

Appointment
Audit

Through joint efforts on the improvement of the whole procurement
supply chain, from our suppliers to our company, we establish a fiduciary
partnership for the benefit of mutual growth and development.

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

5Overview of corporate governance2. Being environmental-friendly(meeting) (auditing)Approval
ReportPresident (Executive Meeting)

Auditing Office

Execution of business based on policies set at Board of Directors meeting (organization for discussing execution of important business duties)
Response

Appointment

Kansai Electric Power Group CSR Action Charter

Assurance of appropriate handling ofbusiness matters

Inquiry
ReportInvestigation

Committee organization
Fine-tuning of plans, inspections and deliberations
Approval

The business activities of the Kansai Electric Power Group aresupported by our customers, shareholders, business partners,
investors, and employees, as well as the residents of the region
and many other people throughout society. The trust that theKansai Electric Power Group has received from ourstakeholders is the foundation for fulfilling our business mission
and achieving continuous growth.
At Kansai Electric Power, we see our Group-wide
corporate social responsibility—CSR—in two ways. First, our
CSR is to fulfill, with absolute assurance, our responsibilities asa member of society through rigorous compliance,transparency, etc. Second, our CSR is to contribute to ongoingsocial development by responding, in good faith, to the
expectations that society embraces toward our Group-widebusiness activities.
Based on the foregoing understanding, in March 2004 wedrew up the Kansai Electric Power Group CSR Action Charter.
It includes the following six principles to serve as guidelines in
the performance of business activities.

Carrying the Conduct Card: keeping the Action Standards
close to employees’ hearts

Submission

The Kansai Electric Power Group CSR
Action Charter

Various committees(CSR Promotion Council, etc.)

Risk Management
Committee

Internal Auditing
Committee

Audit
reportEtc.
ReportDetermination and instructionof management measures

Business execution divisions(business segments and subsidiaries)

Internal audit

Accounting
auditing

Accounting Auditors(account auditing)Approval ofinternal auditing
plans, etc.

Audit report

Office ofInternal Auditing

Internal auditing
reportKansai Electric Power Group CSR Report 20086

Safe, Stable Delivery of Products and Services

1

Our mission and responsibility as a lifeline service provider
Providing electric power safely and stably to our customers—that in itself is our most important mission as a lifeline service
provider. Kansai Electric Power takes responsibility for the entire process from power generation to sales, and is working toensure a stable power supply and prevent accidents and disasters.

■ Power source composition comparison

26

2017
(planned)
(FY)

11

28

20
12

22

42

2017
(planned)
(FY)

19

20

10

12

9
1

Nuclear

18
50

21

LNG

Oil/other17

Pumped-storage Hydro

Due to the Great Hanshin-Awaji
Earthquake

19

8

4

8

Conventional Hydro

Due to typhoon
Due to typhoon
5 min

1

11

1
Coal

(Power interruption includes stoppages due to accidents and work)

200(Unit: %)13

Power source composition ratio
2007(results)(Min/household)100

Composition ratio of power generation facilities at the end of the fiscal year
2007
(results)■ Annual power interruption time per household(including stoppages due to work)

Renewable Energies

Notes:
1. Fiscal year-end facility numbers and electric power generation amounts include electric
power received from other companies (interchange power and pumped-storage hydropower are not included).
2. Due to rounding, the totals may not equal 100%.

To provide higher-quality electric power
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 ElectricPower’s electricity achieved one of the world’s highest levels in
power supply reliability in 2007.
The Company is continuing to develop and install newtechnologies and construction methods to ensure that accidents
are prevented and to enable swift recovery in the event an
accident does occur. In addition, Kansai Electric Power iscarrying out quantitative evaluations of the state of deteriorationof its facilities, which were constructed during the period of higheconomic growth in the 1950s and 1960s, in order to dealreliably with the aging of these facilities. The Company isimplementing the efficient, planned preservation and repair offacilities by such means as inspections and determination of
repair periods in accordance with their conditions.

83

85

87

89

91

93

95

97

99

01

03 04 05 06 07

Structuring a fuel value chain, covering all
stages from exploration to retail
In August 2007, Kansai Electric Power signed two contracts
with Woodside Energy Limited, Australia’s largest oil and gas
development company. One was for the sale and purchase of
Pluto LNG and another was for the sale and purchase of
equity in the Pluto project. The Pluto LNG project, located innorthwest Australia, is now being promoted by Woodside,
Tokyo Gas, and Kansai Electric Power. The Company now
owns its first LNG transport vessel, the LNG EBISU. Throughsuch undertakings, we are seeking to structure a “fuel value
chain” that extends from development and production totransportation and reception, in order to ensure stable, longterm procurement and price competitiveness.
LNG has superb characteristics in terms of supply
stability, price competitiveness, and environment friendliness.
Kansai Electric Power will continue to pursue the above LNGrelated undertakings, while also continuing its efforts toensure a stable, secure supply of both electricity and otherforms of energy for customers.
■ LNG Value Chain

Pipeline

Power
plant

LNG vessel
Liquification plant(exploration & production rights,
liquification plant companies)
Upstream equity acquisition andinvestment

Receivingterminal
Midstream(transportation)
Securing distribution LNG vessel
under direct control

Downstream(reception, delivery, retail)Kansai Electric PowerThe Company is participating at every stage, from upstream to downstream,with the aim of stable, long-term procurement of fuel.

7

Kansai Electric Power Group CSR Report 2008

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

Design and function to maintain safety
The facilities at nuclear power plants are constructed to evenstricter standards than those laid down by law, and their designs
include fail-safe systems1 and interlock systems2 to prevent a
malfunction or human error from resulting in an accident. In theunlikely event of a malfunction 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 the fuel and radioactive
materials being contained within fivefold walls.3

Design andsystems
Safety design withleeway built inFail-safe systems

Interlock systems

Cooling/
containment

Shutdown

An emergency reactor
core cooling system isused to cool the nuclear
reactor, and radioactive
material is contained
within fivefold walls.

Should a malfunction
occur, a control rod isimmediately inserted
into the reactor to shutit down.

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 not transmitted torelated 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 areused in cladding pipes, nuclear reactor pressure vessels, reactor storage vessels, andreactor buildings.

Measures toward long-life usage
In order to ensure long-life usage of its facilities, Kansai ElectricPower conducts technical inspections of nuclear power plantsthat have been in operation for more than 30 years, and has
established a Long-term Preservation Plan that is reflected inpreservation activities. These measures to deal with aging
facilities are re-evaluated every ten years.
■ Flowchart of initiatives in long-life usage
In operation for 30 years

Approx. every 10 years

Consideration of
measures toward
long-life usage
Identification of
aging-related
matters to beaddressed
Application
Long-termpreservation plan

Kansai Electric Power constantly monitors the flow of electricity thatlinks power stations and customers. The Company has prepared a
range of advance measures for dealing with disasters such as
earthquakes, typhoons, snow damage, heavy rain, and lightning
damage.
The Company is engaged in disaster control initiatives at thistime when concerns are being raised about the occurrence of amajor earthquake, such as the predicted Tonankai and Nankai
earthquakes, in order to fulfill our social responsibility for the stablesupply of power. These initiatives center on “a disaster control
system to enable rapid recovery” and “strengthening facilities towithstand disaster.”Disaster control system to enable rapid recovery:
comprehensive preparations for every eventuality
In the event that damage may have occurred to power generation
facilities as the result of a disaster, or upon actually detecting suchdamage, a disaster control system (see table below) will immediately beestablished in-house to deal with the situation.
In the event of the occurrence of a disaster and the establishmentof an Emergency Disaster Measures Headquarters, the Company will
collaborate closely with disaster-related organizations such as
government institutions, the police, fire department, and the media while
carrying out safety measures at its facilities, assessing the status ofdamage and recovery, gathering information concerning the disaster,and engaging in recovery operations. The Company has also set up amutual support system with otherpower generation companies that
goes beyond the boundaries of its
own area, for activities such as
emergency power interchange andthe exchange of staff, materials,
and resources required forrecovery operations.
Emergency Disaster Measures
Headquarters at the head office■ Disaster control system
Organization
Disaster Alert
Headquarters

Criteria for establishment●

Predicted occurrence of a disasterA disaster has occurred or is certain to occur
Occurrence of earthquake of magnitude six or greater on
the Japanese scale within power supply area
Emergency ● Tokai earthquake advisory, Tokai earthquake prediction,
or declaration of alert issued within an intensified
Disasterearthquake disaster control measures area
Measures
Headquarters ● Occurrence of Tonankai or Nankai earthquake (including
the occurrence of an earthquake adjudged to be possiblyon the same scale in terms of shaking, epicenter, tsunami
alerts, and other factors)● Other necessary circumstances

Identificationofaging-related mattersto be addressed (inconsiderationofnewly gathered dataon preservation, etc.)

Review of Long-term
Preservation Plan●

Strengthening facilities to withstand disaster: preparing fora wide range of disasters

Re-evaluation of
measures toward
long-life usage
Regular
Regular
Regularinspections, inspections, inspections,
etc.
etc.
etc.

Improvement of disaster control measures●

Pipeline

LNG tank
Upstream

Maintenance and inspection work at a transformer station

Attitude to safety at nuclear power plants■ Safety measures in nuclear power plants

0
(FY)

1

Measures for the safe operation of nuclear
power plants

Further measures

As 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 numerous
efforts to create a suitable combination of multiple energy
sources that is not too dependent on any specific one, including
moving from oil to nuclear power, natural gas and coal.
Kansai Electric Power seeks an optimal combination of
power sources that puts safety assurance first and takes
comprehensive consideration of economic, energy security andenvironmental impact characteristics.

The Company is also striving to ensure a fully operational
supply system in terms of both speed and quantity in responseto the demand from society, responding reliably to customer
needs and contributing to the further development of theeconomically expanding Kansai region.

In the event of a malfunction:

The “best mix” of power sources and its stable,
long-term supply

Continuation

Power transmission facilities are designed to withstand evenpowerful typhoons, and the Company ensures that they also
possess high earthquake resistance to prevent the occurrence ofmajor damage in an earthquake.
The electric power system network encompasses the Kansai
area by means of the transmission lines from power stations and thetransmission line loops with which they connect. In the unlikely eventof damage occurring to some of the routes on this network, even if
they become unusable, power can be supplied quickly fromalternative connecting routes.

Kansai Electric Power Group CSR Report 20088

Safe, Stable Delivery of Products and Services

1

Providing services as a unified group
Our aim is to provide services that satisfy our customers. Starting from this concept, the Kansai Electric Power Group is
responding to customer demands and developing a range of initiatives that will enable the Group as a whole to provide
attractive services and products.

Toward improvement of customer service
In order to promote business activities that are responsive to
our customers, Kansai Electric Power is developing a range ofinitiatives across the whole Group. One example is the collation
and analysis of customer opinions gathered through the callcenters and Electric Life Consultation Desks established by theCompany to provide points of contact with customers. The
customer needs identified in this way are reflected in
improvements to products and service value.

Collection of opinions/comments

Value-added services
Service improvement

Kansai ElectricPower Group
Satisfaction survey

Lifecycle-related
business

Information andtelecommunications (IT)Improvement of base operation expertise

Create a living environment
providing peace of mind,
comfort, and convenience

Provide IT services
focused on
local communities

Electricity+
High added value

Collection andaccumulation

Customers
Gathered via telephone, e-mail, on-site, etc.
Call center Dambo-no-Koe

Web site(See p. 40)

e-Patio

Analysis andexamination

Customer(See p. 39)

K-Opticom Corp. is playing the central role in expanding Group
services that use its own optical fiber network extending
throughout the Kansai region. Under the integrated brandname of eo-HIKARI, our main FTTH service provides a bundleof three services: optical fiber Internet connection, optical fiber
telephone, and optical fiber TV.

Further development of energy solutions● Initiatives in the lifecycle-related business fieldKansai Electric Power is aiming to improve customer
satisfaction by providing a range of lifecycle-related services,
including real estate development focused on totally electric
housing, home security, in-home nursing and long-term care,and health management support.

Development of Total Solutions
Kansai Electric Power is developing an even more attractive“totally electric home + α,” which combines a totally electric
home with optical fiber Internet connection and lifecyclerelated services. This has been adopted in numerous detachedresidences and condominiums and helps create a safe,
comfortable lifestyle with peace of mind for customers.

To provide customers with optimum solutions to their energy
needs, Kansai Electric Power is working in collaboration with
Kanden Energy Solution Co., Inc. to develop solution services
that offer a wide-ranging response to our customers’ diverse
energy needs, spanning their entire use of energy. We are also
proposing the “Utility Service,” under which the customer’sutility use contract is a comprehensive package, including
everything from the design of utility facilities to operational
management.
■ Development of energy solutions“Utility Service”
Help with every aspect ofcustomers’ utility facilities

Integrated energy supply

Providing lifestyle solutions

Service
improvement

Implementation of customer satisfaction
surveysKansai Electric Power employs specialist companies to
conduct customer satisfaction surveys by telephone. We have
implemented surveys of customers who have made various
applications to our company continuously since 1993. In thesesurveys, customers are asked to give their impressions of ourstaff and evaluate the handling of their cases, and the results
are reported to the sales centers concerned together withcustomers’ opinions, dissatisfactions, words of praise, andother feedback. In this way, we are able to objectively assess
the service levels of our sales offices, verify the results ofefforts to improve our work, and discover areas for further
improvement. These also provide useful information for setting
targets and improvement actions for subsequent businessperiods as we strive to improve customer satisfaction levels
further.

Kansai Electric Power Group CSR Report 2008

● Initiatives in the information and telecommunications field

For example, in addition
to proposing high-efficiency
devices, mainly heat pumps,
Kansai Electric Power offers
system electric power with a
low CO2 emissions factor,
which appeals to customers
from the perspective ofcontributing to reduction in Diagnosing customer equipment
CO2 emissions. Great interest is also being shown by manycustomers in converting their kitchens to use electricity alone,and examples of this being carried out are rising in number.

• A comprehensive service for
utility facilities, covering allor partial aspects of theirdesign, construction, operation,
maintenance, and operational
management in response tocustomers’ needs

Provide customers with optimum energy

Study of customer-proposed measures and strategies
Analysis of customer opinions

Product and service Information anddevelopment
PR enhancement

widespread adoption both nationally and within the industry.
Kansai Electric Power disseminates a variety of information
when introducing or actually installing the EcoCute, including
how to apply for a subsidy system, to help the product’s use
become widespread.

■ Example of Total Solutions based on the totally electric homeElectric Life
Consultation Desks

Customer opinions

Sharingandutilization■ All-round life-support provider

Base operation■ Effective use of customer opinions

9

Comprehensive, advanced utility services
supporting customers’ living and business
The Kansai Electric Group is concentrating on the following
three business areas: integrated energy supply, informationand telecommunications, and lifecycle-related business. The
Group provides unique, total solutions through its high value
added services, which combine electricity and the Group’s
other services and meet a variety of customer needs.

■ Customer service improvement philosophy

CustomerIn addition, every company in the Kansai Electric PowerGroup also carries out regular customer satisfaction surveys.
These enable us to assess customers’ honest opinions andevaluations of the services offered by each Group company,
leading to improvements in existing service content and thedevelopment of new services, as we endeavor to further
improve the level of customer satisfaction as a unified group.

Totally electric home

● Promotion of totally electric homes

Kansai Electric Power is engaged in a variety of initiatives tooffer customers easy access to totally electric homes, which
are not only safe, comfortable, and economical, but also
environmentally friendly.
In practical terms, we are disseminating a variety of
information on totally electric homes via our “Electric Life” Website, as well as improving the “Hap-e Life Square” facility where
people can experience a totally electric environment. In
addition, since July 2007 we have collaborated with PanaHome
Corporation on the development of a residential-type, totallyelectric model house, the EL PanaHome Shukugawa. In
response to inquiries from customers, we have made telephone
calls and visits to explain the concept in detail, and have also
embarked on initiatives such as enhancing our collaboration
with external partners, including sales agents, to make it easy
for customers to consult us. Thanks to these and otherinitiatives, at the end of August 2007 there were already over
500,000 totally electric homes in the Kansai Electric Powerarea.
The EcoCute water heater, which is outstanding both
environmentally and in terms of energy conservation, wasmentioned in the Plan to Achieve the Targets of the Kyoto
Protocol as meriting support for its accelerated market
penetration, and the Company is engaged in promoting its

Optical fiberInternet connection,
optical fiber telephone,
optical fiber TV
Energy Solutions

Provide customers with optimum
energy solutions

Kansai ElectricPower Co., Inc.

Home security,
in-home nursing and long-termcare, health management
support, etc.

• Energy diagnosis• Proposal of optimum energy systems• Energy conservation assistance• ESCO service
K-Opticom Corp.

Energy Supply
Electricity
KANDEN Securityof Society, Inc.

Kanden Joy Life Co., Ltd.

KANSAI Medical Net Co., Inc.

Providing customers with a stable supply of energy• Gas and LNG sales, sale of fuel oil for cogeneration• On-site energy supply (electricity, steam)Providing solutions in the corporate field
Against the backdrop of heightened environmental awarenessand high fuel prices, needs are increasing in areas such as
reducing the burden on the environment (lowering CO2
emissions), saving energy, and reducing costs. Installing
equipment or facilities involves a process of planning, design,
construction, operation, maintenance, and renewal, and Kansai
Electric Power is responding to customer demand in a range ofsituations to offer solutions resulting in customer satisfaction.

We will continue to put the resources of the entire Kansai
Electric Power Group into providing solutions that will result incustomer satisfaction.

Web Kanden Energy Solution Co., Inc.
http://www.ke-sol.co.jp/index.html

Kansai Electric Power Group CSR Report 200810

Progressive Approach to Environmental Problems

22008 CSR Topics
opics
Special Feature2008 CSR Topics
opics Rising to the challenge of technological development
Special Feature to achieve a low-carbon society
Kansai Electric Power’s initiatives toward theachievement of a low-carbon society● Establishing a low-carbon power grid

In order to provide economical, stable electric power while
continuing to take environmental considerations into account,
Kansai Electric Power is basing its future on nuclear power
generation (with ensuring safety as a basic premise), andcombining it in a well-balanced way with other power sources,
such as thermal and hydropower generation, to create theoptimum composition of electric power sources.
In terms of measures to prevent global warming, Kansai
Electric Power is working to establish a low-carbon power gridin order to further reduce the CO2 emissions factor of electrical
power consumed (sold). In addition to efforts to increase theratio of CO2-free power sources such as nuclear power
generation and renewable forms of energy, the Company isworking on other initiatives such as increasing the heatefficiency of thermal power plants even further in the endeavor
to reduce its CO2 emissions factor, which is already one of thelowest in the industry, by a still greater margin.
■ CO2 emissions reduction target for FY 2008–2012 (five-year average)
FY 1990 results

0.353

TargetFY 2008–2012(five-year average)
0.0

0.282
0.1

0.2

0.3

0.4
（kg-CO2/kWh）● Promoting an electric society

The first commitment period of the Kyoto Protocol (FY 2008–2012) has begun. Within
the next five years, Japan has to reduce its emissions of greenhouse gases such as
CO2 by 6% in comparison with 1990 levels. In the long term, the entire world will be
required to make major reductions. In the context of this situation, Kansai ElectricPower has set itself an extremely high-level target for reductions, and is continuing torise to the challenge of preventing global warming on the basis of the New ERA
Strategy, a comprehensive package of measures to prevent global warming.

At present, fossil fuels account for over 80% of primary energy
in Japan, an extremely high figure. In this situation, achieving
significant CO2 reductions will inevitably require breaking freefrom our society’s reliance on fossil fuels. As one measure
toward attaining this goal, we believe that moving away fromthe direct use of fossil energy and converting to the use ofelectricity, a low-carbon form of energy, to the maximum extent
possible will have a major effect on reducing CO2 production.
Kansai Electric Power is striving to reduce CO2 emissions,providing customers with electric power with a reduced CO2
emissions factor and encouraging the use of this electricity inhigh-efficiency electrical devices such as heat pumps andelectric vehicles, thereby both supporting our customers’
diverse lifestyles and enabling significant reductions in CO2emissions from society at large.
This combination of establishing a low-carbon power gridand promoting an electric society forms the basis of Kansai
Electric Power’s efforts to achieve a low-carbon society.

Dealing with global warming from a long-term,
global standpoint
The development of innovative technologies will be
indispensable if we are to achieve the high-level target of
reducing worldwide greenhouse gas emissions by 50% by
2050. Kansai Electric Power is a leader in technologicaldevelopments including the expanded use of renewable formsof energy such as biomass and wind power generation,
research into high-efficiency devices such as heat pumps andelectric vehicles, and CO2 separation, recovery, and fixation. In
recent years, the Company has also announced the expanded
use of renewable forms of energy, such as solar power
generation that is already among the world’s largest, andintends to accelerate such efforts in the future.
Measures to prevent global warming will be effective ifthey are implemented on a global scale. For this purpose,
Kansai Electric Power is using the technological capabilities,
knowledge and expertise that it has gained through years ofoperation as an electricity supplier to participate in global
warming prevention projects in countries around the world,using active promotion of measures to prevent global warming
overseas.

―― Diagram of Kansai Electric Power’s contribution to the achievement of a low-carbon society ――
Basic attitude toward preventing global warming
At the G8 Heiligendamm Summit in 2007, Japan called for the
long-term target of reducing worldwide greenhouse gas
emissions by 50% by 2050. In 2008, at the Toyako Summit, theG8 Leaders’ Declaration agreed to call for the United Nations
to adopt this long-term target, marking a step forward in the
movement to reduce greenhouse gas emissions worldwide.
At present, developed countries and developing nations
each account for about half of global CO2 emissions, and theamount of emissions from developing countries such as China
and India that are undergoing dramatic economic growth is
rapidly increasing. Even if developed countries were able toeliminate their emissions entirely, it would be impossible toreduce worldwide CO2 emissions by 50% unless those fromdeveloping countries were restricted to around their current
levels, making this target extremely difficult to meet.
Japan’s own long-term target, announced in the Fukuda
Vision in June 2008, is to reduce emissions by 60–80%
compared with present levels by 2050.
The concrete policies required to make the Fukuda Visiona reality consist of four main pillars. These are the developmentof innovative technologies and the widespread adoption of

11

Kansai Electric Power Group CSR Report 2008

existing advanced technologies; mechanisms to move thecountry as a whole in the direction of a low-carbon society;regional activities; and citizens playing a leading role in
reducing carbon dioxide emissions. Among these,
breakthroughs due to the development of innovativetechnologies will provide the key to achieving Japan’s target,
and the importance of technological innovation is emphasized
in its position as the first pillar.
Now that long-term major reductions in CO2 have become
necessary, the importance is increasing for Japan of thewidespread adoption of high-efficiency devices such as its
world-leading heat pumps, as well as the development ofinnovative technologies for drastic reductions such as
innovative solar power generation and advanced nuclear
power generation.
In this environment, Kansai Electric Power is basing its
endeavors to achieve a low-carbon society on the two pillars of
establishing a low-carbon power grid and promoting anelectric society, and is also actively engaged in thedevelopment of innovative technologies and overseas
measures to prevent global warming.

Establishing a low-carbon power grid

Promoting an electric society

Achieving
AchieAc
hievingving a low-carbon
low-carbon society
Expansion of the use of high-efficiency
devices through heat pump technology

Stable operation and functional
improvement of hydropower plants

Safe, stable operation of
nuclear power plants

Promotion of renewableforms of energy

Improved efficiency ofthermal power plants
Widespread use of electric vehicles

Developing
innovative technologies

Measures to prevent
global warming overseas

Prevention
Prevention of global warming

Kansai Electric Power Group CSR Report 2008

12

Progressive Approach to Environmental Problems

22008 CSR Topics
opics
Special Feature

The Group’s technological developments for a
low-carbon society and prevention of global
warming
Establishing a low-carbon power grid
● The use of biomass for power generation

Atsuya Deguchi
Manager,
Construction Group,
Fossil Power Division

Since June 2008, Kansai Electric Power
has been using biomass fuel at
Maizuru Power Station Unit 1. The
Maizuru Power Station is the only coalfired thermal plant owned by Kansai
Electric Power, and we are mixing
biomass fuel known as “wood pellets”
and burning them together with coal.
Using biomass fuel in this way reduces
coal consumption, and as a result, we
can contribute to CO2 emissions
reductions. At Maizuru Power Station,
we can reduce CO2 emissions byaround 90,000 t per year.

“The wood pellets used by Kansai Electric Power are
made from sawdust and wood shavings generated at sawmillsin Canada. Before Kansai Electric Power began using them as
fuel, they were mostly being thrown away.”
This quote comes from Atsuya Deguchi, manager of theFossil Power Division’s Construction Group. The amount ofpellets used every year by the Maizuru Power Station comes toaround 60,000 t.
However, the use of biomass with coal as fuel requires avariety of evaluations to be carried out concerning safety andefficiency aspects.
Deguchi adds, “Before introducing wood pellets, we used
experimental facilities to carry out repeated experiments to

Bunker■ Schematic overview of multi-fuel combustion of coal and biomass

Coal silo

BoilerCoal pulverizer

Biomass silo

Flow ofcoal

Flow of woodpellets(additional
facilities)

At the Maizuru Power Station, a biomass silo and other facilities have been added to theexisting facilities for burning coal in the boiler, so wood pellets and coal can be burned
together to produce steam.

Biomass silo

13

Wood pellets

Kansai Electric Power Group CSR Report 2008

validate the process, and evaluated the effect of mixing themwith coal from various perspectives. For example, coal isground into a powder in a coal pulverizer to be ignited easily,
but we were not sure whether or not we could maintain thispulverizing performance when we mixed it with wood pellets,
so we tested the pressure of the rollers for crushing capability
and operating conditions of the sieving device that separates
out the coarse powder.”Actually, the amount of wood pellets used is about 3% of
the total fuel. This ratio is to preserve the safety of existing coalfired thermal power facilities and to use the biomass efficiently.
He says that “a proportion of 3% is about the same as the
furikake seasoning powder sprinkled on top of rice, but wecan’t be aggressive in increasing this figure when we consider
that the most important mission of power plants is to generatesafe, stable electric power.”
While observing progress at Unit 1, Kansai Electric Powerwill also consider starting biomass multi-fuel combustion in Unit
2, which will come into operation in 2010.

Promoting an electric society● Advancing heat pump technology anddiversifying heat pump devices
These days we often hear people
talking about heat pumps. The featureof these devices is that they can reuse
spent electrical energy many times
over in the form of heat energy.
Electricity consumption is reduced
accordingly, enabling a corresponding
reduction in CO2.
Kansai Electric Power has been
involved in developing devices andTadashi Masuda
facilities for heat pump use in situations
Chief Researcher,ranging from homes to institutions.
Product R&D Office,Energy Utilization“The old style of heat pump had
Technology Laboratory,
poor heat efficiency and could only
Research andproduce hot water of about 70°C. But
Development Center
since we started using CO2 as acoolant, their efficiency has improved
dramatically, meaning that 90°C is now feasible.”
So says chief researcher Tadashi Masuda, an authority onelectric hot water supply devices. He has long been engaged in
the development of electric water heaters in Kansai ElectricPower’s Product R&D Office of the Energy Utilization Technology
Laboratory, part of the Research and Development Center, and in2001 succeeded in completing the EcoCute water heater, whichuses CO2 as a coolant, in collaborative research with its
manufacturer. He has subsequently developed a residential,
space-saving version of the EcoCute as well as a multifunctional,
compact version that is integrated with the external part of theappliance and which includes underfloor heating, bathroom
heating and drying functions.
He adds that “recently I have been concentrating on researchon how to reduce the cost, so that more customers will use heatpumps to reduce CO2 in their everyday lives.”
If heat pump systems were to be more generally adopted byhomes and offices throughout Japan, as well as for use in air
conditioning in shops and for heating processes in factories, it isbelieved that the resulting CO2 reductions would total around 130
million t-CO2/year, greatly exceeding the figure for CO2 reductions
by the private sector (about 60 million t-CO2/year) set out in thegovernment’s plan for achieving the targets of the Kyoto Protocol.

■ Potential for CO2 reductions by means of heat pumps and thermal
storage systems(Source: Heat Pump & Thermal Storage Technology Center of Japan)(Millions of t-CO2/year)

20,000

About 18,900
4,300

15,000

About

130

4,300

million t

10,0004,400

About 5,760

5,000

2,300
3,600

0

Current status(FY 2004 results)

Industrial sector
1,010
Institutional air conditioning
1,400
Home air conditioning
1,350
Institutional hot water supply
770
Home hot water supply
1,230
If each sector were to convert completely
to heat pumps and thermal storage systems

Promoting an electric society● The trump card for achieving a low-carbon society:pushing for the adoption of electric vehicles
Kansai Electric Power is also promoting
the adoption of electric vehicles as ameasure for reducing CO2 emissions
from private households and othersources.
“It’s said that electric vehicles are
currently undergoing their third boom.
The first boom was during the 1940s,
when gasoline was in short supply
Yuji Horidomestically during wartime; theManager,
second came during the 1990s,
Technology Survey Group,
triggered by the ZEV standards
Research and Development
adopted by the US state of California.
Center (at time of interview)
Now, at the beginning of the 21st
century, electric vehicles are attracting attention for their potential
as the trump card for raising environmental awareness on the partof society as a whole and in measures to prevent global warming.”
So says manager Yuji Hori of Kansai Electric Power’s
Technology Survey Group of the Research and Development
Center. At present he is engaged in collaborative research with
Mitsubishi Motors Corporation, carrying out running tests in urban
environments and gathering data.
He adds that “in comparison with gasoline vehicles, electricvehicles can reduce CO2 emissions by about 70%. In the future, if
we can make progress in developing high-performance batteries
and constructing the infrastructure for recharging them so that theiruse becomes more widespread, we can anticipate that they will
make a major contribution to reducing CO2.”
As one contribution toward achieving a low-carbon society,Kansai Electric Power will proactively press ahead with the use ofelectric vehicles.

Developing innovative technology● The world-leading KS-1 absorbs 90% of CO2!

During the 1990s, when global
warming had not yet attracted theattention it does today, Kansai ElectricPower embarked early on thedevelopment of technology for the
dissociation and recovery of CO2. It
was a decision that foresaw that CO2
was to become an increasingly serious
problem. A team was assembled
Yasuyuki Yagi
together with Mitsubishi Heavy
Senior Researcher,
Industries, Ltd., and as the result of fullElectric Power Technology
scale research in an experimental plantLaboratory,
constructed at Kansai Electric Power’s
Research andNanko Power Station, a new CO2
Development Center
absorption solvent was developed
three years later. KS-1, which begins with the letter “K” from Kansai
Electric Power, absorbs CO2 at 40°C and recovers it at 120°C,
enabling greater than 90% recovery of the gas. This outstanding
performance has earned it the reputation of being the world’s best
CO2 absorption solvent.
“I was told that they tested hundreds of different aqueous
solutions of amines, one by one, until they finally discovered theright one.” Yasuyuki Yagi, senior researcher in the Electric PowerTechnology Laboratory of the Research and Development Center,
relates this story about the pioneers’ achievements. The research
institute that first developed KS-1, reputedly the best in the world,
is still continuing with research into absorption solvents.
He says that “in the case of KS-1, thermal energy from steam
at 120°C is required to release the CO2, meaning that the cost iscorrespondingly high. As a result of continued research, last year
we were able to develop an absorption solvent that releases CO2
for a lower amount of energy.”
At present, KS-1 is used mainly in overseas fertilizer plants
and other factories for the purpose of using the CO2. “We believethat it will eventually be used at facilities such as power plants forthe direct recovery of the CO2 contained in exhaust gases, and will
be useful in preventing global warming. We hope to develop
absorption solvents with even greater practical utility in future, andare engaged in research with this in mind.”
Such earnest dedication to technological development will put
a stop to global warming. Kansai Electric Power Group employees
firmly believe this today as they commute to and from the power
stations, laboratories, and sites where they work.
■ CO2 chemical absorption method
Exhaust gases
other than
CO2 are sent
to the chimney

Reduction of around 71%

217

Exhaust
gases

KS-1

Gasoline vehicle(minicar)CO2
recovery

Packing■ Comparison of yearly CO2 emissions per car (calculated by Kansai
Electric Power)
Electric vehicle(minicar)

Recoveryof CO2

Absorption
solvent
containing
CO2 is sent
to theregenerator

Absorption
Heatsolvent notcontaining
CO2 is sent
to absorption KS-1
tower

738
Thermal power station

0

200

400

600 （kg-CO2）

Absorber

Regenerator

KS-1 CO2 absorption
solvent absorbs CO2
by means of achemical reaction at
40°C and recovers it
at 120°C. Making useof this property, KS-1
is repeatedly cooled
and heated as it iscirculated around theequipment,
absorbing andrecovering CO2.

Kansai Electric Power Group CSR Report 2008

14

Progressive Approach to Environmental Problems

Environmental policy

Status overview of our business activities andenvironmental load (fiscal 2007)

Kansai Electric Power’s philosophy consists of the “Five Basic Principles of the Environmental Action Plan,” based on our
CSR Action Charter. With the “Environmental Action Plan” as our basic course of action, each year we draw up a concrete
plan for the year, known as “Eco Action.”

The verification mark on the left
identifies items that have received an
independent review from Tohmatsu
Environmental Research Institute Ltd.

INPUT

Philosophy:

Five Basic Principles of the Global Environmental Action Plan (Adopted in 1990)

Kansai Electric Power is conscious of our great responsibilities as an energy provider. As we strive to deliver an affluent way oflife to people, we are actively taking on the challenge of making the conservation of the global environment a part of ourcorporate agenda. In all aspects of our operations, we are investigating advanced means of global environmental protection
and taking action immediately in areas where we can be effective:! Reduction of environmental impact @ Promotion of effective and efficient use of energy and resources# Development of advanced technology $ Coordination of efforts throughout the Kansai Electric Power Group% Creation of a new corporate culture to support harmonious coexistence with the global environment

Action Guide:

Fuels for power generation

Released into atmosphere
CO2 (carbon dioxide)∗ 54.99 million t-CO2

1,614 thousand t

Coal(dry coal weight)

Heavy oil

258 thousand kL

Crude oil

3,098 thousand kL

64.3 TWh

LNG(Liquified Natural Gas)

1 thousand kL

Other(converted to heavy oil)

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

Industrial water

5.01 million m3

Clean water

1.28 million m3

River water,
groundwater, etc

0.66 million m3

Seawater(desalinated)

2.71 million m3

Resources! Addressing global environmental problems@ Earnest exchange andcooperation with externalgroups

41 thousand t

Ammonia

8 thousand t

Amount of hydroelectric
power generation

50.8 TWh12.4 TWhPurchased fromother companies
38.1 TWhof which, solar,
wind and biomass
power generation
1.1 TWh

5.541 t

COD emission

35 t

Total effluents

7.33 million m3

Volume of low-level
radioactive waste
generated∗

5,150 drums(200 L drums)

Electric power
consumed
within power
stations(5.1) TWh

∗ Net generation (generated amount –reduced amount)

Pumped-storagehydropower(2.2) TWh

Total amount ofemissions

Industrial waste, etc.
342 thousand t

Recycled or reused 333 thousand t
Reduction inintermediate treatment

3 thousand t

Landfill disposal

6 thousand t

Recycled rate

98.3%

Emissions from vehicle use
OfficeOffice electricity

110 GWh
0.68 million m3

Copy paper

1,087 tGreen purchaserate foroffice supplies
97.6%

Gasoline

4 thousand kL

Diesel oil

1 thousand kL

Rate of adoptionof low-pollution
vehicles68.2%# Raising employees’ awareness of their respon-

sibilities as global citizens and encouraging
them to develop good daily practices

OfficeOffice water

Vehicle fuels

CO2 emissions 11 thousand t-CO2

Electric power
consumed withintransformer
substations(0.2) TWh

Customers

Transmission anddistribution losses(7.8) TWh

Amount ofelectric powersold
150.4 TWh

Environmental efficiency (with FY 1990 level as 100)
Amount of electric power sold…… 128Composite index∗
Note: Totals may not tally due to rounding

Kansai Electric Power Group CSR Report 2008

NOx (nitrogen oxides)

Radioactive waste

SF6 gas recovery rate
(at time of inspection)
98.3%

Concrete
Action Guide:
Action Plans:
GlobalEco
Environmental
Action (Adopted
Action
every
Plan
year.
Seeinpages
17–18.)(Adopted
1991, revisedin 2005)15

3,412 tReleased into water areas

Power transmission and power distribution

a. Measures to prevent air pollution
b. Measures to prevent water pollution
c. Measures against chemical substances,
etc.

Action 2 Activities aimed at building a sound material-cycle society
suitable for a sound materialcycle society

Limestone

Amount of thermal
electric power generation@ Addressing local environmental problems

a. Measures to prevent global warming (New ERA Strategy)
Efficiency: Efforts to increase energy efficiency by society
as a whole
Reduction: Reducing greenhouse gas emissions in power
supplyActivities abroad: Overseas activities carried out to prevent global
warmingb. Protecting the ozone layer! Promoting business activities

Power generation

84 tU

Water for power generation

SOx (sulfur oxides)∗ Includes electricity purchased from otherelectric companies.

5,109 thousand t

Global Environmental Action Plan (Adopted in 1991, revised in 2005)

Action 1 Consideration for the environment in all areas of our businessAmount of nuclear
electric power
generation

Processing classification

As an energy supplier with strong ties to the environment, the Kansai Electric Power Group aims for the world’s highest level byrecognizing the extent of the impact of its business activities on the global environment and by working to reduce the load
placed on the environment by its business activities. The Kansai Electric Power Group has also taken advanced initiatives tocreate a better environment and actively contributes to building a sustainable society.

OUTPUT

Business activities

Fuels for thermal power generation

The Kansai Electric Power Group CSR Action Charter (extract)
Progressive Approach to Environmental Problems

2

Amount of electric power soldAmount of CO2 emissions…… 97

Environmental load caused by
Resources consumed∗Composite index = CO2, SOx, NOx, and landfill disposal of industrial waste ＋ Oil, coal, LNG

Kansai Electric Power Group CSR Report 200816

Progressive Approach to Environmental Problems

2

Eco Action (targets and results)
We set annual targets for our environmental efforts and undertake various activities to realize them in accordance with theenvironmental policies of the Kansai Electric Power Group. Our 2007 fiscal-year targets and results, and our targets for2008 and later, are as shown below.
(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)■ Environmental efforts in business operations

Item

The verification mark on the left identifies items thathave received an independent review from Tohmatsu
Environmental Research Institute Ltd.

FY 2007 targets and results
Results
Targets

FY 2006 results

Self-evaluation

FY 2008

Targets
FY 2009

Evaluation of FY 2007 results and future actions

Page

There was decreased utilization of our nuclear power plants and a lower rate of nuclear power generation, along with higher sales ofelectric power. Due to this and other factors, there was increased operation of thermal power plants, leading to a greater volume of CO2
emissions. We will continue to focus on the safety and stability of nuclear power generation facilities, as well as maintaining and improving
the thermal efficiency of our thermal power plants and our application of the Kyoto mechanism, in order to reduce CO2 emissions.

P. 23

FY 2010

CO2 emission reduction per unit ofelectric power used (sold)

0.338 kg-CO2/kWhApprox. 0.282 kg-CO2/kWh(5-year average for FY 2008–FY 2012)

0.366 kg-CO2/kWh−Approx. 0.282 kg-CO2/kWh(5-year average for FY 2008–FY 2012)

Promoting “safety first” operations at
nuclear power plants

77.0% facility
utilization rate

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

75.0% facility utilization rate−

Continuous improvement and effective implementation of safety assurance
Based on the principle of “safety first,” involving proactively ensuring safety through regularmeasures to prevent a recurrence of an incident like the Mihama Powerchecks, we are planning to carry out safety- and preventive-measure-related construction.
Station Unit 3 accident, and to continue safe and secure operations

P. 26

While we optimized the operation of thermal power plants, largely through the use of high-efficiency combined plants,
factors such as a decline in nuclear power output and increases in the amount of electric power sold meant that operation offossil fuel-based thermal power plants increased, and we were unable to meet our target. We are taking measures focusedon equipment and operations, including the smooth implementation of plans to update equipment at Sakaiko Power Station.

P. 26

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

42.6%

42.0% or more

41.8%

△

42% or more

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

98.2%(at time of inspection)

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

98.3% (at time of inspection)
99.6% (at time of removal)○

97% (at time of inspection) 99% (when scrapping)Target achieved

Achieve amount required by
the RPS Law (1,020 million kWh)

Target achieved○

Achieve amount required by the RPS Law

Power output from subsidized facilities:
30 MW

Promote the Kansai Green
Electricity FundPower output from subsidized facilities:
37 MW

−

Promote the Kansai Green Power Fund

Reducing customer CO2 emissions throughthe diffusion and expansion of EcoCute

95 thousand t-CO2

138 thousand t-CO2

148 thousand t-CO2○

Adoption of low-pollution vehicles(ratio of low-pollution vehicles to all vehicles)

59.0%

61%

68.2%

○

Promotion of household environmental
account books――――――――――――――――――−

97.9%

More than 99% (up to fiscal year 2009)

98.3%

−

Processed volume:Low-concentration PCB:
28 thousand kL (cumulative total)
High-concentration PCB:
214 units (cumulative total)

Process all PCBs by thelegal deadline (by 2016)

Processed volume:Low-concentration PCB: 37
thousand kL (cumulative total)
High-concentration PCB: 635
units (cumulative total)−

15 locations

Support of and expansion toappropriate numbers of locations

14 locations

×

Development and diffusionof renewable energies

Improving the recycling rate ofindustrial wastes
Proper processing of PCB wastes
Further introduction of systems in compliancewith ISO or other certifications (compliant
locations at fiscal year-end)

Maintain current status
Maintaining sulfur oxide (SOx)and nitrogen oxide (NOx)emission levels per unit ofpower generated

Thermal 0.045 g/kWh
Overall 0.014 g/kWhSOx

We were able to meet our target thanks to appropriate operation of collection equipment forSF6 gas and other strategies. We will make continued efforts to meet targets in this area in the
future.
In fiscal 2007, we were able to achieve the amount required by the RPS Law. We intend to continueautonomously developing new types of energy such as the introduction of biomass fuel at Maizuru Power
Station and purchasing electric power from new energy sources, in addition to other efforts in this area.
In fiscal 2007, we expanded the range of organizations eligible for diffusion and development-related energy aid to include
public-benefit groups such as schools and NPOs, resulting in an increase in the number of subsidies provided. We plan toprovide further support for diffusion and promotion in the future by collecting subsidies, distributing PR leaflets, etc.
Use of the EcoCute water heater continued to expand at a steady rate, and we will continue to

192 thousand t-CO2 246 thousand t-CO2 300 thousand t-CO2 work for its widespread adoption.
69%

70%

71%

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

P. 24
P. 24
P. 25
P. 33
P. 31

Process all PCBs by the legal deadline (by 2016)

A cumulative total of 37,000 kL were processed out of the 100,000 kL targeted for treatment at the
Recycling Center for Utility Pole Transformers. Starting from October 2006, highly concentrated
PCB waste is treated at the Japan Environmental Safety Corporation (JESCO). Aiming to treat all
waste as required by the legally stipulated deadline, we continue to treat waste appropriately.

P. 30

Support of and expansion toappropriate numbers of locations

The number of locations installed with ISO-compliant systems decreased by one due to operational changes.
In the future, we plan to overhaul our company-wide environmental management system, continuously
improve the system, and maintain and expand the number of locations meeting requirements.

P. 21

While emissions levels for fiscal 2007 exceeded those of the previous year as well as the averagevalue for the past 5 years, by using low-sulfur fuels and installing sulfur scrubbers we made efforts
to maintain emission levels, and once again achieved the world’s lowest emission levels. We willcontinue to use fuels with superior environmental characteristics and sustain the performance ofsulfur-scrubbing equipment to maintain the world’s highest levels of cleanliness.

(Reference) 5-year averages for FY 2003–FY 2007
0.06 g/kWh (thermal)
0.02 g/kWh (overall)△NOx

Thermal 0.121 g/kWh
Overall 0.039 g/kWh(Reference) 5-year averages for FY 2002–FY 2006
0.13 g/kWh (thermal)
0.04 g/kWh (overall)Thermal 0.109 g/kWh
Overall 0.043 g/kWh△(Reference) 5-year averages for FY 2003–FY 2007
0.12 g/kWh (thermal)
0.04 g/kWh (overall)

While emissions levels for fiscal 2007 exceeded those of the previous year as well as the averagevalue for the past 5 years, by using low-nitrogen fuels and installing nitrogen scrubbers, we madeefforts to maintain emission levels, and once again achieved the world’s lowest emission levels. We
will continue to use fuels with superior environmental characteristics and sustain the performanceof nitrogen-scrubbing equipment to maintain the world’s highest levels of cleanliness.

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

Less than
0.001 millisieverts/year

Less than
0.001 millisieverts/year

Less than
0.001 millisieverts/year○

Less than 0.001 millisieverts/year

We are properly managing the volume of radioactive gaseous waste, maintaining a level ofless than 0.001 millisieverts per year.

Maintain current status

Maintain current status−

Working toward the goal of a recycling rate of 99% or higher by fiscal 2009, in fiscal 2007 we strengthened
our in-house system, and made efforts to collect data from recycling businesses and improve informationsharing channels within the Company. We will continue working toward the goal of zero emissions.

99.5% or more
(by FY 2012)

99% or more (by FY 2009)

Maintain current status
Thermal 0.067 g/kWh
Overall 0.027 g/kWh(Reference) 5-year averages for FY 2002–FY 2006
0.05 g/kWh (thermal)
0.01 g/kWh (overall)

By continuing to purchase low-pollution vehicles, we were able to achieve results exceeding
our target. We intend to continue pushing for a higher purchasing rate of low-pollution
vehicles.
As we attempt to meet the targets set by the Kyoto Protocol, reduction of CO2 emissions in the residential
sector is of increasing importance. One of the Company’s contributions is to encourage use of Kansai ElectricPower environmental household account books (“Eco e-Life Check”) by both employees and customers.

−

P. 29

−

■ Office energy and resource conservation activities

Item
Targets for fiscal 2007 to 2010

Reducing office electricity consumption
1% or more reduction compared to the prior fiscal year

Reducing office water consumption

Improving fuel efficiency of company vehicles

1% or more reduction compared to the prior fiscal year

1% or more improvement compared to the prior fiscal year

Volume of office water consumption

Volume of office electricity consumption
(GWh)

150

Progress since fiscal 2000
(Excerpted)

Target

119

110

111

Kansai Electric Power Group CSR Report 2008

6,000

1,046

800

676

2006

2007

2008

(FY)

In fiscal 2007, extreme hot and cold weather resulted in a 1.6%
increase in electricity consumption compared to the previous year.
We will continue steady efforts to curb electricity consumption ateach location, through conservation activities such as efficientenergy management (appropriate control of heating and cooling,etc.) in company-owned buildings.
[Self-evaluation: ×]

0

2000

2006

2007

9.26

9.51

9.61

12

4,000

669

2,000
2008

Promote maximum possible reduction
Volume of copy paper consumption
Target

(t)

1,200

8

800

4

400

(Promote maximum

1,001

(FY)

In fiscal 2007, we achieved a 1.2% reduction from the previous
fiscal year. We will continue patient efforts at each location,such as reuse of sink water and rainwater for toilet flushing, inorder to reduce water consumption.
[Self-evaluation: ○]

0

4,995

4,714 4,420 4,420

2000

2006

2007

2008

Maintain current status (approx. 100%)
Green purchasing rate for office supplies

1,033 1,087 possible reduction)

Target

(%)

100
80

+5.3%

99

60

+2.7%

–1.2%

400

2000

9.14

Target

684

+1.6%

0

17

1,200

110

100
50

Evaluation of estimated results
for fiscal 2007
and plans for future efforts(Thousand m3）

Volume of fuel consumption (gasoline and diesel oil)
Fuel efficiency of company vehicles(kL)
Target (km/L)

Reducing copy paper consumption Improving the green purchasing rate for office supplies

96

98 approx. 100%

About the sameas previous year

40

8

In fiscal 2007, we made a 2.7% improvement in the fuel efficiency
of company vehicles; specifically, 10.5 km/L for gasoline-powered
passenger vehicles and 5.7 km/L for specialized or large-sized
light diesel-powered vehicles. We plan to continue steady efforts
to improve fuel efficiency at each location, including the promotionof refraining from engine idling.
[Self-evaluation: ○]

0

2000

2006

2007

2008

(FY)

In fiscal 2007, the volume of copy paper used
increased 5.3% from the previous fiscal year.
We will continue patient efforts at each location,
including strict enforcement of the use of bothsides of copy paper, and minimizing paper use
during daily office activities. [Self-evaluation: ×]

0

2003

2006

2007

2008

New additions• In order to contribute to
reduction of household CO2
emissions as a part of ourefforts to cope with global
warming, we have added theitem, “Promotion of household environmental accounting.”

Changes in items
covered20(FY)

Changes from theprevious report(FY)

Results for fiscal 2007 were almost the same as
those of the previous year. We will continue
steady efforts at each location in order topromote green purchasing by raisingawareness among employees, etc.
[Self-evaluation: ○]• Regarding the item, “Improving the green purchasingrate for office supplies,” thenumber of target items was
reduced from 45 to 31, with
14 recycled-paper items
eliminated as a result of theincidents of recycled-paper
content falsification that
occurred in 2007.

Kansai Electric Power Group CSR Report 200818

Progressive Approach to Environmental Problems

2

Environmental management system
The Kansai Electric Power environmental management system is based on the ideas of the total quality management (TQM)
system. With this system, we seek sustainable development that balances the environment, society and economics. Under theenvironmental policy, we are working to reduce environmental burdens in our enterprise activities through our continuous
environment-improvement activities based on the PDCA cycle.

Establishment of a company-wide promotion system

Eco Action: Group company concrete action plans

In order to further strengthen and promote acrossdepartments our leading efforts to resolve environmental
problems, we established the Environmental Board as anorganization below the CSR Promotion Council in February
2006. The Environmental Board prepares, checks andreviews Eco Actions, which are concrete action plans forcompany-wide environmental management.
In addition, in 2006 we adopted the existing CyclicalBusiness Activities Promotion Working Group as anorganization below the Environmental Board, and in 2007 we
established the Working Group to Address Global
Environmental Problems as part of our efforts to create a fully
realized promotion system.

Starting in the 2005 fiscal year, we at Kansai Electric PowerGroup began working to implement concrete plans for theenvironment, called Eco Actions.
In fiscal 2007 results, we achieved our targets in one
area: reducing utility water consumption. In other areas,
however, we were unable to reach our targets.

Maintenance of the group-wide promotion system

FY 2006 results Targets and results in FY 2007

Item
Fifth CSR Promotion Council (Environmental Board) (April 2, 2008)

Reducing officeelectricity
consumption

The Group Environmental Management Committee wasestablished in August 2005, with the goal of expanding
environmental management efforts at Group companies. This
Committee establishes, checks and reviews the Group’s Eco
Action, working with the CSR Promotion Council’s
Environmental Board.

In FY 2007, we worked on maintaining our risk
management system, focusing on legal risks related toconsolidated subsidiaries and equity method affiliates, andas a result completed all applicable maintenance.
In FY 2008, we will work to boost the rate of inclusion of
consolidated subsidiaries and equity method affiliates in theGroup’s Eco Action.

■ Environmental management promotion system of Kansai ElectricPower and the Group companies(60 companies, as of June 30, 2008)

Group business support

President

Cooperation

CSR Promotion Council

Environmental Board
Chairperson: Excutive Vice President andDirector (responsible for the Office ofEnvironmental Considerations)
Vice Chair: Director of the Office ofEnvironmental Considerations
Committee members: Chairperson appoints
from among headquarters and enterprisedivision and office heads• Working Group to Address Global
Environmental Problems
Chairperson: Global Environmental Group
Chief Manager, Office ofEnvironmental Considerations

Kansai Electric Power Group
Environmental Management
Committee
Committee chairperson:
Director of the Kansai ElectricPower Office ofEnvironmental Considerations
Committee members:
Staff responsible for the
implementationof environmental
management at each groupcompany• Cyclical Business Activities Promotion
Working Group
Chairperson: Environmental EngineeringGroup Chief Manager, Office ofEnvironmental Considerations

Office of Environmental Considerations(Environmental Management Oversight Department)

Managers of headquarters,
divisions and offices

Managers of business locations
under direct control(Persons responsible forenvironmental management)(Persons responsible forenvironmental management)

Managers of Nuclear Power Division, branch offices, district
offices and Fossil Power Administration Center(Persons responsible for environmental management)

Managers of sales offices(Persons responsible forenvironmental management)

19

Managers of operationand maintenance offices(Persons responsible forenvironmental management)

Kansai Electric Power Group CSR Report 2008

Managers of power plants(Persons responsible forenvironmental management)

Henceforth, we will seek to expand the number of Group
companies implementing Eco Action, and continue topromote activities to reach our targets for each area.
Please note that due to the recycled-paper content
falsification incidents that occurred in 2007, we haveeliminated “purchasing recycled copy paper” as a category
for evaluation in fiscal 2007.

Kanden Engineering Corp.
ENEGATE Co., Ltd.
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 Joynus Co., Ltd.
Kanden CS Forum INC.

Kanden Office Work Corp.
Kanden Power-Tech Corp.
The Kanden L & A Co., Ltd.
KINKA Corporation
Kanden Business Support Corporation
KANDEN EL AUTO SYSTEM Co., Ltd.
Kyushu Network Support Co., Ltd.
NES Co., Ltd.
Daito Industries Co., Ltd.
Kanden-el-farm, Inc.
CCL Co., Ltd.
KINDEN CORPORATION∗ 34 target companies in
FY 2006( ) cumulative total
for 38 companies

Targets(∗ 34 target companies) FY 2008 FY 2009 FY 2010

Targets

1% or more
reduction
46.5 million kWhcomparedto(46.8 million kWh)the previous
fiscal year

1.7% increase
comparedto the previous
fiscal year
47.3 million kWh

1% or more reduction
comparedto the previous fiscal year

The number of companies under review decreased, but
due to increases in the number of business locations andother factors, we were unable to reach our target. We willcontinue to carry out energy-saving activities.

Reducing utility
water
consumption

251,000 m3(253,000 m3)

1% or more
reductioncompared tothe previous
fiscal year

1.2% reduction
comparedto the previous
fiscal year
248,000 m3

1% or more reduction
comparedto the previous fiscal year

As we worked aggressively in areas such as raisingawareness of water conservation, water consumption
volume fell, enabling us to reach our target. We willcontinue to carry out water-saving activities.

Improving fuelefficiency ofcompany vehicles

9.0 km/L(9.0 km/L)

1% or more
improvementcompared tothe previous
fiscal year

1.3% decrease
comparedto the previous
fiscal year
8.9 km/L

1% or more improvementcompared to theprevious fiscal year

While we promoted Eco-Drive principles such as enforcementof the “idling-stop” policy, we were unable to reach our target
due to increases in the number of short-distance trips andother factors. We will continue to promote Eco-Drive.

Reducing copy
paper
consumption

698.5 t(706.5 t)

Reduceas muchas possible

18.7% increase
comparedto the previous
fiscal year
829.1 tReduce as muchas possible

The number of companies under review decreased, but due
to increases in the number of business locations maintained
under the system and other factors, we were unable to reachour target. We will continue making efforts to use less paper.

∗ In FY 2007, the number of companies under review was reduced from 38 to 34. This report evaluates the results of those 34 companies.

Maintaining an environmental risk
management system

Observance of laws, regulations and otherrules

At Kansai Electric Power, we divide environmental risk into
three categories—legal risk, social risk and cost risk—andcarry out necessary risk management by keeping employees
informed of revisions to environmental laws, Eco Action, etc.
We intend to extend this risk-management approach to allapplicable Group companies and deploy environmental risk
management Group-wide.

Kansai Electric Power strictly abides by all laws andregulations related to the environment. We also ensurecompliance with environmental protection agreements
concluded with local governments in the areas of our power
plants, and none of our facilities have violated the terms ofthese agreements. We did not receive any guidance, notices
or orders from any national or local government entities infiscal 2007 regarding these environmental laws, regulations
and agreements.

Lifecycle-related business
KANDEN FUDOSAN CO., LTD.
Clearpass Co., Ltd.
KANDEN Security of Society, Inc.
Kanden E House Corp.
KANSAI Medical Net Co., Inc.
Kansai Jyutaku Hinshitsu Hosho Co., Inc.
Kanden Joy Life Co., Ltd.
Kanden Building Management Co., Ltd.
L-Suehiro Food Services Co., Ltd.
KANDEN AMENIX Corp.
Sunny Estate Services Co., Ltd.

Information andtelecommunications (IT)K-Opticom Corp.
K Cable Television Corporation
Kansai.com, Inc.
DS Networks, Co., Ltd.
Kanden System Solutions Co., Inc.
Chuo Computer Co., Ltd.
K-Opti Cyber Port Co., Ltd.
Kansai Computer Service Co., Ltd.
Kansai Record Management Co., Ltd.

Integrated energy supply
SAKAI LNG Corp.
ECHIZEN ENELINE CO., INC.
Kanden Energy Solution Co., Inc.
Kanden Energy Development Co., Inc.
Osaka Bioenergy Co., Ltd.
Kanden GASCO, Kinden, Shinryo
Joint ESCO Co., Ltd.
E&G Energy Service Co., Ltd.

Evaluation(Reasons for increase/reduction)

Results■ Environmental risk management system

Sustainable development

Organizational Targets
Stable supply and social responsibilities

Profitable operation

Loss-of-confidence risk

Cost-increase risk

Important risks
Other business areas
KANDEN GEO-RE Co., Ltd.
Kansai Power International Corp.
KPIC Netherlands
Kanden Venture Management Corp.
Meteorological Engineering Center, Inc.
Kanden L-Heart Co., Inc.
Kansai Electric Power Australia Pty Ltd.
LNG Ebisu Shipping Corporation
Kansai Electron Beam Co., Ltd.
One other company

Risk category

Samplemeasuresagainst risk

Legal riskSocial risk

Cost risk(violation of environmental laws)(insufficient response to major environmental problems)(introduction of measures to deal with rising costs)• Dissemination of information on latest
revisions of environmental laws
• Implementation of self-check practices• Deployment of Eco Actions• General strategy against global warming

Kansai Electric Power Group CSR Report 200820

Progressive Approach to Environmental Problems

2

Environmental accounting
At Kansai Electric Power, in order to clarify the costs of environmental protection efforts in our business activities and thebenefits attained by these efforts, we have conducted environmental accounting of the annual results since the 1999 fiscal
year for Kansai Electric Power as an individual company, and since fiscal 2003 for the entire Kansai Electric Power Group, andhave made these results public.

Management systems compliant with ISO
standards
Since the 1997 fiscal year, we have been implementing
environmental management systems (EMS) that conform to
the ISO 14001 standard, an international body ofenvironmental management, especially at our thermal power
stations. In model operations for each business type, theCompany has received ISO 14001 external certification, andin February 2005, our Hokusetsu Sales Office acquired Eco
Action 21 certification from the Ministry of the Environment.
In addition, starting in 2008 at the Ohi Power Station, we
have been working to merge EMS with quality management
systems (QMS) with the goal of jointly achieving targets for
quality management and environmental management.
Henceforth, in consideration of the activities of thesemodel business locations, we will focus on deploying EMS
throughout the Group, as well as working to combine EMS
with QMS.
■ Business locations that have acquired ISO 14001 external
certification (as of the end of FY 2007)
Kansai Electric PowerBusiness type Name of business location
Himeji No. 1
Power Station (thermal)
Himeji No. 2
Power Station (thermal)
Kainan Power Station
Power
Generation (thermal)
Nanko Power Station(thermal)Ohi Power Station(nuclear)
Himeji Operation and
Maintenance OfficeDistribution Power Distribution andSales Division,
Technical Test Center

Date of Registration Certification Agency
March 24, 2000

Organization ofInternational
Standards
Certification
Co., Ltd.

Evaluation of the 2007 fiscal year

Challenges undertaken by Group companies
Thorough purification of contaminated soil at low cost
KANDEN GEO-RE Co., Ltd.

Up until now, soil contaminated by factory runoff andother pollutants has generally been purified using either
the “washing” or “heat treatment” method. There areadvantages and disadvantages to both, as washing canbe done at low cost, but there are limits to the pollutants
it can eliminate, and it has a low recycling rate, whereas
heat treatment is highly effective, but the cost is highdue to the consumption of fuel and other factors.
By combining these two purification methods into
one progressive treatment system, KANDEN GEO-RE
Co., Ltd. has been able to exploit the advantages ofboth methods, establishing a treatment technology
capable of thoroughly cleaning up almost any pollutant
at minimum cost.
As a result, the purified soil can be reused forgardening or for shoring up foundations, achieving a
recycling rate of 97% or more.
As an organization of professionals in contaminatedsoil cleanup, KANDEN GEO-RE offers clients acomplete range of solutions from soil testing to sale ofpurified soil.
This business has been able to play a part in the
movement toward efficient use of land, and thus tocontribute to the realization of a sound material-cycle
society.

Investment

ExpenseFY 2007 FY 2006 FY 2007 FY 2006
Cost of measures against global
environmental problems(CO2 reduction measures, etc.)

22.3

288.3

240.6

372.2

275.6

0.3

0.0

25.5

25.7

204.8

160.1

309.3

209.9

83.2

80.5

37.4

40.0

0.3

0.2

91.8

97.0

0.3

0.2

50.8

48.9

−

−

0.2

0.2

3. Treatment of radioactive waste

−

−

40.7

47.9

4. Green purchasing

0.0

0.0

0.1

0.0

Kanden Plant Corp.

Cost of environmental management

4.3

0.3

33.3

32.2

ENEGATE Co., Ltd.

Cost of research and development

0.6

0.4

19.6

16.8

October 27, 2000
March 29, 2002
October 25, 2002
March 29, 2002
January 26, 2004

Japan Audit
andCertification
Organization
Organization ofInternational
Standards
Certification
Co., Ltd.

Name of Group company

Kanden Engineering Corp.

Washing facility

THE GENERAL ENVIRONMENTAL TECHNOS CO., LTD.
K-Opticom Corp.
Heat treatment facility (rotary kiln)■ Business locations that have acquired Eco Action 21 certification(as of the end of FY 2007)
Business type Name of location Date of registration
Hokusetsu
Sales Office

Certification agency

Institute for Global
February 16, 2005 Environmental Strategies
Sustainability Center■ Purification capabilities, etc. of KANDEN GEO-RE Co., Ltd.
Purification
capabilities

Washing

330 t/day (top class for the industry)

Heat treatment Rotary kiln: 100 t/day

Pollutants that
Oil, hazardous substances covered under thecan be dealt with Soil Contamination Countermeasures Law, etc.
Property area

Approx. 3 haContaminated soil Approx. 15,000 t (indoors)
Volume of soil
able to be stored
Purified soil

Kansai Electric Power Group CSR Report 2008

Cost of conservation of regional
environments
1. Measuring and monitoring ofenvironmental impact
2. Pollution prevention (anti-air
pollution measures, anti-watercontamination measures, oilleakage prevention measures, etc.)
3. Natural environment protection
and harmonization
Cost of building a soundmaterial-cycle society
1. Treatment and recycling ofindustrial waste
2. Treatment and recycling ofgeneral waste

thermal power plants amounted to ¥4.8 billion yen. Thismeans that the economic effect on Kansai Electric Powergrew by ¥3.9 billion from the previous year to ¥28.4 billion.
∗ Savings on fuel costs during the period concerned were calculated from an
improvement in thermal efficiency compared with that of the 1990 reference year.

■ Economic effect of environmental protection efforts (Millions of yen)
Category
Revenue

Business income from recycling, etc.
Cost reduction by energy saving(improved thermal efficiency of thermal
power plants, etc.)

Expenditure Cost reduction by material reuse andrecycling

Approx. 8,000 t

Other costs

0.2

0.1

10.1

11.0

1. Coexistence with local communities andsupport for environmental education

−

−

2.0

2.5

2. International activities

0.2

0.1

0.1

0.1

3. Environmental compensationand contributions

−

−

8.0

8.4

Total

327.3

248.5

559.1

454.9

Total investment for the period
concerned
Total running costs for electric utilities
business during the period concerned

2,688

2,237

−

−

−

−

23,330 21,687

Economic effect of environmental protection efforts
In terms of economic effects, cost reduction due to reuse andrecycling dropped by ¥1.0 billion from the previous year, butsavings on fuel costs∗ due to increased thermal efficiency of

FY 2007

FY 2006

27.1

26.3

222.2

173.8

34.2

44.6

Other
Total

0.6

0.6

284.1

245.3

Eco-efficiency
Kansai Electric Power conducts trial calculations of therelationship between the environmental loads of our businessactivities and the economic value that those activities produce tomeasure the eco-efficiency index (in which the 1990 fiscal year
is given a value of 100). Eco-efficiency for the 2007 fiscal year
declined from the previous year, with the volume of power solddivided by the composite index equaling 128 (a 17-point
decrease from the previous year) and the volume of power solddivided by the volume of CO2 emission equaling 97 (a 7-point
decrease from the previous year). A primary cause was theincreased environmental burden (CO2, SOx, NOx emissions
volume) due to the increased operation of thermal power plants.
∗ In calculations starting in fiscal 2007, we are using the LIME2 integrated coefficientdeveloped by the Lifecycle Assessment Research Center.

Group environmental accounting efforts
Group environmental accounting efforts focused on all or someof the companies participating in the Kansai Electric PowerGroup Environmental Management Committee.
In fiscal 2006, we focused on all 38 participatingcompanies, but in fiscal 2007 we focused on 35 out of the 58
participating companies. 25 new companies participated in theCommittee, while 5 withdrew, whereas 2 new companies
became the focus of environmental accounting, while 5 were
removed from being the subject of accounting.
We will continue to work to expand the scope of ourenvironmental accounting.
■ Environmental protection costs (Millions of yen)
Category

NEWJEC INC.

21

Category

32.2

KINDEN CORPORATION

Sales■ Environmental protection costs (Millions of yen)

6.9

Business type

Information technology

Investments increased by ¥7.9 billion over the past fiscal
year to ¥32.7 billion. Primary factors were CO2 reduction
measures such as the construction of biomass mixed
combustion facilities at Maizuru Power Station Unit 1 (a ¥3.0
billion increase), anti-oil leakage work at transmission andsubstation facilities (a ¥2.6 billion increase), and work on air
pollution prevention measures at Maizuru Power Station Unit
2 (a ¥1.9 billion increase).
In expenses, there was a dramatic rise in the use ofthermal power plants due to the increased amount of electric
power sold, resulting in expenses such as the cost of lowsulfur fuel as an anti-pollution measure (a ¥7.0 billion
increase), and the operating costs of air/water pollution
prevention equipment (a ¥2.6 billion increase). As a result,
expenses rose by ¥10.4 billion over the previous fiscal year
to ¥55.9 billion.

33.5

March 23, 2001

Group

Power support

Environmental protection costs

Management
activity costs

Main items
ISO implementation and operation

Pollution
Maintenance of air/water pollution
prevention costs prevention equipment
Ordinary/industrial waste processing/
Recycling costs recycling
Social activity costs Planting activities, participation in
non-company projects
Other costs
Levies on pollution levels
Total

Investment Expense
2007 2006 2007 2006
5

3

697

685

60

13

34

29

0

0

509

572

−

−

5

5

20
85

22
73
17
38 1,319 1,307■ Economic effect of environmental protection efforts (Millions of yen)
Category
Revenue

FY 2007

FY 2006

Business income from recycling, etc.

355

765

Sales proceeds from eco-products, etc.

119

13

Expenditure Cost reduction by energy saving, etc.
Total

57

20

532

798

Kansai Electric Power Group CSR Report 200822

Progressive Approach to Environmental Problems

Global warming prevention efforts

E fficiency – achieving more efficient energy use throughout society

Promoting our New ERA Strategy of comprehensive measures to prevent global warming
and developing the initiatives for the reduction of greenhouse gases and appropriate
energy use worldwide.
• Promotion of• Stable operation nuclear power
generationand improved
functionality ofhydroelectric
power plants

New ERA Strategy• Improving andmaintaining thermal
efficiency of thermal
power plants

The verification mark on the left
identifies items that have received an
independent review from Tohmatsu
Environmental Research Institute Ltd.

• Development of CO2
capturing andstorage technology

New ERA (pronounced “era”) is a unique• Expansion of renewableenergyReduction
overall strategy developed by Kansai
Reducing greenhouse gas emissions from
Electric Power, consisting of the well• Promoting more efficientthe power supply
use of energy forbalanced promotion of threecustomers bydeveloping/spreading
strategies–efficiency (E), reduction• Afforestation projects in
Activities
Efficiency
the use of highorder to expand CO2
efficiency electric(R) and activities abroad (A)–withabsorption
Abroadequipment/systems
EffortstoincreaseenergyActivities carried out abroad
the goal of contributing to the battle
efficiency by society• Use of untapped
to prevent global warming
against the global warming problem for
as a wholeenergy sourcesmany years to come. It was formulated in• Promotion and spreadof renewable energy• Undertaking projects
1995 by systematizing the environmental
abroad in order to utilize• Development and spread of
the Kyoto Mechanism
policies that had been in place up to that time.
electric vehicles

ERA

Kansai Electric Power’s CO2 reduction
target and performance throughimplementation of the New ERA strategy

CO2 emissions factor reduction results
Due to the decreased utilization of our nuclear power plants
and a lower rate of nuclear power generation, along withhigher electric power sales and other factors, the volume of
CO2 emissions increased compared to fiscal 2006, and theCO2 emissions factor for our fiscal 2007 was 0.366 kgCO2/kWh.∗
Henceforth, with the goal of establishing a low-carbon
power grid, we will focus on increasing the utilization of
nuclear power generation facilities, where our top priority issafety, as well as improving the thermal efficiency of ourthermal power plants and our application of the Kyoto
mechanism related to the reduction of CO2 emissions on a
global scale.

Setting targets aimed at reducing the CO2 emissions factor
Kansai Electric Power has been promoting our New ERA
Strategy with the goal of reducing the volume of CO2
emissions proportional to the volume of electric power
consumed (sold), known as the CO2 emissions factor. As aresult, CO2 emissions factor reduction has reached thehighest standards for the industry, but with the goal ofestablishing a low-carbon power grid, we have set thechallenging goal of reducing emissions by an average of
0.282 kg-CO2/kWh per year over the first five-year
commitment period of the Kyoto Protocol (FY 2008–FY 2012),
and are pushing for further results.

∗ This is a provisional value. The government will officially announce actual
values, based on the Law concerning the Promotion of Measures to Copewith Global Warming, etc.

■ Change in CO2 emissions factor, etc.
(100M kWh)Amount of power consumed (sold)(kg-CO2/kWh)End-use CO2 emissions factor

1,473

1,449

1,471

0.356

0.358

0.338

51.6

52.7

49.8

(Million of t-CO2)
Amount of CO2
emissions
1,504

We have set CO2 emissions
reduction target of an averageof approximately 0.282 kg of
CO2 per kWh of electric power
consumed for the five years
from FY 2008 to FY 2012.

1,402
1,206
0.353

42.6
1990

0.366

0.261

36.6
2003

2004

2005

Approx.
0.282

55.0

2006

2007

2008 to 2012 (FY)

(Average)
Note: The values for FY 2005 onward are calculated based on the calculation, reporting and publication system for greenhouse-gas emission volumes, asmandated 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.

CO2 emissions factor and ourcustomers’ lifestyles
The volume of CO2 emitted as aresult of customers’ use of electricity
is obtained by multiplying the CO2
emissions factor for electricity use
with the amount of electricity thecustomer uses. Kansai ElectricPower contributes to reduction ofcustomers’ CO2 emission volumes bymaking efforts to further lower theCO2 emissions factor, as well as
offering energy-saving suggestions.

23

Kansai Electric Power Group CSR Report 2008

■ How to calculate CO2 emission volumes in electricity use
CO2 emission volume(kg-CO2)＝2

CO2 emissions factor for end
use of electricity (kg-CO2/kWh)

CO2 emissions factor for electricity(CO2 emission volume per unit ＝of electricity consumed)×

Amount of electricity thecustomer consumes (kWh)CO2 emission volume from thermal power stations
Volume of end-use electricity supplied from all power
stations, including thermal, nuclear and hydroelectric∗ The government of Japan publishes CO2 emissions factor values for each individual electrical
power supplier annually.

We are working to promote customer energy conservation methods, the development and popularization of new energy andother ways to increase more efficient use of energy throughout society.

Promotion of more efficient energy use

Promoting the use of renewable energy

At Kansai Electric Power, in order to assist our customers inpracticing more efficient energy use, we are making efforts inareas such as the “development and deployment of highly
efficient equipment and systems” and “proposals for
improving procedures for using customers’ equipment.” Forexample, to our corporate customers, we suggest solutions
such as highly efficient air conditioning and heat pumps for
hot water supply, whereas forindividual customers, we areworking to popularize the useof EcoCute, a high-efficiency
water heater employing heatpump technology that canrealize three times the heat
energy per unit of electric
power consumed. The use ofsuch energy-saving devices
can help us to cut CO2
emissions drastically.

Mini-hydropower generation

Energy-efficient EcoCute can contribute to
the battle against global warming

Informing the public about energy-saving
practices
Kansai Electric Power is dedicated to assisting its customers
in practicing efficient energy use. For our corporate
customers, we provide a full suite of services for this purpose
throughout the entire equipment cycle from equipment
planning and design to installation, operation andmaintenance. To serve individual customers, we provide a
wealth of information about energy-saving techniques,
including the household environmental account book.

Providing information about saving energy throughwebsites and pamphlets
KansaiElectricPower
distributes pamphlets that
explain how customers canuse energy wisely, without
undue effort or waste. The
Group’s website includes apage that introduces tips on
and fun ways of savingenergy.

In February 2007, Kanden Energy Development Co., Inc., amember of Kansai Electric Power Group, began a minihydropower generation project in collaboration with the
Toyonaka City Water and Sewer Commission. Installed inside
Toyonaka City’s Terauchi water distribution site, this minihydropower plant employs the pressure of tap water en routefrom the clean water reservoir to the distribution reservoir todrive a 129 kW generator.
Efficient use of this waterpressure,which
had
previously gone unused,made it possible to cover theelectric power needs of thewater distribution site. Kansai
Electric Power purchased theMini-hydropower generation at the Toyonaka
leftover power.
City Terauchi water distribution plant

Use of biofuels
In Osaka Prefecture, we have been involved since 2007 in
the Ecological Fuel Practical Application Region System
Verification Project, a verification project commissioned by
the Ministry of the Environment and aimed at advancing the
distribution and use of “E,” a type of gasoline containing 3%
bioethanol. We are participating in the project by registering
several of our company vehicles and running them on E3.

The Kansai Green Electricity Fund
The Kansai Green Electricity Fund (operated by the Kansai
Institute of Information Systems and Industrial Renovation(KIIS) is a citizen participation project that solicits contributions
from customers in the Kansai region to assist in theconstruction of renewable energy generating equipment that
does not emit CO2. Kansai Electric Power is proud to match its
customers’ contributions, taking an active part in the quest to
promote the increased use of new energy sources.
Assistance in fiscal 2007 was given to 6 solar energy
installations, 2 wind power installations, and 7 facilities devoted
to the adoption and development of renewable energy
sources, meaning that the total number of installations assisted
since the launch of the fund in fiscal 2000 now amounts to 90.
■ Results as of fiscal 2007 (Number of installations assisted / Total amount of
power output by equipment)

The Ekoda family’s energy-saving lifestyle

Web Enjoy Sho-ene Life: The Ekoda family’s energy-saving lifestyle
http://www.kepco.co.jp/sho-ene/index.html

71

7

12

1,887 kW112,500 kW

10 kW

Solar energy equipment
for public use

Wind power installations
for business use

Equipment devoted to adoptionof new energy sources, etc.

Service to find out how much energy you use
The energy use notice we deliver every time a customer’s
electricity meter is read contains a comparison with theamount of electricity used in the same month of the previous
year. On our website, customers can view their accounts tosee how much electricity they have used in the past 15
months. Information services such as these provide a handy
index for reducing lighting and heating expenses and savingenergy.
Web Referring to the electric bills of the past 15 months
http://www.kepco.co.jp/service/syoukai/index.html

Energy conservation in the area of freight shipping
As a result of the revision of the Act Concerning the Rational
Use of Energy (energy saving law) in 2007, the Company
was designated by the Japanese government as a specified
freight shipper, and has been cooperating appropriately byreporting the volume of energy consumed by freightshipping. More than 90% of our domestic freight transport,
mostly consisting of fossil fuels, is carried out by ship, andthere is a continuing modal shift. However, we will not becomplacent with these results, and will continue to strive for
reduced energy use in the area of freight shipping.

Kansai Electric Power Group CSR Report 200824

Progressive Approach to Environmental Problems

2

R eduction – decreasing greenhouse gas emissions through the supply of electric power
We are working actively to reduce greenhouse gas emissions through promotion of nuclear power generation that puts
assurance of safe and stable operation first, as well as maintenance and improvement of thermal power plant efficiency andother aspects of the electric power supply.

Adoption of electric vehicles● Promotion of energy conservation

Promoting nuclear power generation

Electric vehicles do not emit CO2 (carbon dioxide), NOx(nitrogen oxides) and SOx (sulfur oxides) while running, andeven when the electrical energy consumed when recharging
the battery is taken into account, they still emit only about
30% of the carbon dioxide of gasoline-powered cars. This
makes them ideal next-generation automobiles, capable ofdrastically reducing the burden on the environment.
While employing test vehicles under development foreveryday company operations, Kansai Electric Power
collects data onthem and evaluates
theiracceptability
andpracticality,
continuing
efforts
toward the massmarket acceptance ofelectric vehicles.

With automatic lighting in work areas and efficient air
conditioning methods, we combine energy conservation with
comfort.

Nuclear power generation does not produce CO2 emissions
that cause global warming, and so is a valuable means toprevent global warming. Moreover, the uranium used in nuclear
power plants as fuel is available in a number of politicallystable countries, assuring stability of supply and economic
efficiency. For these reasons, Kansai Electric Power considers
the continuation of nuclear power generation to be a highpriority, and is actively pressing ahead with its development.

● Promotion of electric load leveling

While hot water supply equipment is run on nighttime power
supply, the building’s heat storage or large-scale ice thermal
storage is used to reduce daytime peak energy consumption.
● Effective use of resources

Rainwater, water draining from sinks, etc., are treated andreused as water to flush toilets, resulting in a 40% reduction inwater use.

60%

The Kansai Electric Power Building, housing our new
corporate headquarters, which started operations in 2005,
implements a wide variety of features to be a “model forenvironmentally friendly buildings.” Following the Minister ofthe Environment Award for
Initiatives to Prevent Global
Warming in November 2005, thebuilding was awarded the 2nd
Sustainable Architecture Award(Institute for Building Environment and Energy Conservation
Chairperson Prize) in February
2008,
showingsociety’s
continued appreciation of ourefforts.
Kansai Electric Power Building● Efforts to use natural energy

The building is constructed to make effective use of naturalventilation and lighting, and it makes active use of naturalenergy with features such as solar panels installed on every
floor. Also, while maintaining excellent energy conservation by
utilizing the heat from river water for air conditioning, thebuilding avoids releasing heat directly into the atmosphere,
helping to curb the heat island phenomenon.

Inside the Kansai ElectricPower Building, the Nakanoshima 3-chome District Heat
Supply Facility is gaining
attention as a pioneering
example of a technique tomitigate global warming andthe heat island phenomenon

25

Kansai Electric Power Group CSR Report 2008

Thermalpower 40%

Through these efforts, the energy consumption on an office floor
will be about 30% less than on a standard office floor.
Heat sources

Efforts toward environmental friendliness at the Kansai
Electric Power Building

CO2-free power sources■ Expected effects

Electric test vehicles are used foreveryday purposes to assess
their practicality and other factors.

Office activities aimed at conserving energy
and resources■ Percentage of CO2-free power sources (amount of electric power
generated at Kansai Electric Power facilities in fiscal 2007)

Standard officebuilding

558

Power

Lighting outlets

537

773

(nuclear power accounts
for 80% of these)

Nuclear
power
50%

Hydropower 10%■ Lifecycle CO2 emissions factor by source

Kansai ElectricPower Building

313

454

493

500

1000

166

0

Equipment and operation use
Power generation fuel combustion(g-CO2/kWh at transmitter)(Fiscal 2007)
1500

2000

Coal thermal

2500
975
88

(MJ/m2 year)

Oil thermal
LNG conventional

742
38

Energy management at business locations
In order to push for further reductions in energy consumption
at Kansai Electric Power business locations, some locations
have adopted “energy management.” At target locations, thedaily energy consumption is measured precisely andcontinually, data is confirmed and analyzed, and effective
strategies are put into place.
In operations during fiscal 2007, in addition to the energy
conservation activities already in place, efforts such as databased adjustment of air conditioning controls havesucceeded in reducing the energy consumption by 3% ormore in comparison with the preceding year. Whilecontinuing these activities, we will attempt to make maximum
possible use of the knowledge gained through them toprovide opportunities for more efficient energy use to ourcustomers.
■ Progress of electric power consumption during operations infiscal 2007(%)

(Million kWh)

14

Fiscal 2006

Fiscal 2007

Rate of reduction (%)

7

12

6

10

5

8

4

6

3

4

2

2

1

0

Apr May Jun

Jul

Aug Sep Oct Nov Dec Jan Feb Mar

0887

LNG combined cycle

608
130

704

Solar power

519
111

Wind power
Nuclear power

478

Geothermal power

408

Hydropower

53

0

29

■ Comparison of CO2 emission volumes before and after facility
renewal at Sakaiko Power Station
Output (unit: 10,000 kw)
CO2 emissions factor (kg-CO2/kWh)Now

After facility renewal

200

200

Equivalent

0.36

Approx. 30%
reduction

0.51

22

15

11

(Taken from the Report of the Central Research Institute of Electric Power Industry)∗ Calculations take into account all energy consumed, not just the fuel burnt inproducing the electricity but also the energy consumed in obtaining the basic fuel forthe construction of facilities, transportation of fuel, refining, use and maintenance.

Stable operation and improved capability ofhydropower generation
With a long history of providing power derived from water, oneof nature’s gifts, hydropower generation is a purely domestic
Japanese energy source, excellent in terms of both stability ofsupply and economic efficiency. In addition, like nuclear
power, it is an environmentally friendly method of power
generation that emits no CO2 during the process. Kansai
Electric Power will continue to carry out all appropriate
maintenance to ensure the continued stable operation ofhydropower generation facilities, and promote the switch overto variable-speed operation at pumped-storage hydropower
plants, with the goals of flexible response to changes indemand and lightening of the burden on the environment.

Maintaining and improving the thermal
efficiency of thermal power plants
Improving the thermal efficiency of thermal power plants
contributes directly to the saving of fossil fuels, and as a result,CO2 emissions can be reduced. At the Sakaiko Power Station,
we are presently pursuing a facility renewal plan that will

Evaluation

Actively developing wind and solar power
generation
Renewable energy sources such as
wind and solar power do not emit
CO2 during the power generation
process. The Kansai Electric PowerGroup has been steadily developing these technologies.

Other

280

incorporate a state-of-the-art, combined-cycle power generation
method (improving thermal efficiency from 41% to 58%) with atemperature in the entrance of the gas turbine of around
1,500°C. Phased launch of operations at the new facility will
begin in April 2009. In other power plants, the Company iscontinuously pursuing improvements in both equipment andoperation in order to maintain and raise thermal efficiency.

Hyogo
Site of a windfarm (planned)

Osaka

Mega solar site(planned)

Wind farm planned on Awaji Island
With limited locations suitable for wind power generation, theKansai region has relatively few installation of wind power
generators compared to the other regions of Japan.
However, a site with relatively strong and steady wind has
been found on Awaji Island, and Kanden Energy
Development Co., Inc., a subsidiary of the Kansai ElectricPower Group, is planning a wind farm with 12 turbines
generating a total of 24,000 kW of power.

Mega solar power generation plan on the Sakai City waterfront
The Company, Sakai City and Sharp Corporation have agreed tocooperate on the Sakai City Waterfront Mega Solar Power
Generation Plan at the following two locations.
Sakai No. 7-3 District Solar Power Generation Plant(tentative name)[Output: approx. 10 MW (10,000 kW); Scheduled start ofconstruction: Fiscal 2009; Scheduled start of operation: Fiscal 2011]
The Company will build a solar power generation plant in Sakai No.
7-3 District, on an industrial waste landfill in Nishi Ward, Sakai City.

Sakai Manufacturing Complex Solar Power Generation
Facilities (tentative name)[Output: Approx. 9 MW (9,000 kW) initially, with maximum of 18 MW(18,000 kW); Scheduled start of construction: by March 2010;
Scheduled start of operation: by March 2011]
The Kansai Electric Power Group and Sharp will install solar power
generation facilities on Sharp’s and other companies’ buildings in thecomplex, which is currently under construction.

The two power generation facilities will have a combined output
of approximately 28 MW(28,000 kW), making thisone of the largest solar
power facilities in theworld. When completed
and operational, this projectwill result in CO2 emission
reductions of approximaArtist’s conception of fully completed Sakai No. 7-3
tely 10,000 tons a year.
District Solar Power Generation Plant (tentative name)Kansai Electric Power Group CSR Report 2008

26

Progressive Approach to Environmental Problems

2

A ctivities Abroad – efforts overseas to prevent global warming
Making use of the technological capabilities, knowledge and expertise that we have gained through years of operation as anelectricity supplier, Kansai Electric Power is developing activities such as using the Kyoto mechanisms to contribute to themitigation of global warming.

Installation of solar power generationequipment in Tuvalu

Environmental afforestation enterprise inAustralia

Participation in wind power generation
project in New Zealand

At an elevation of only 2 meters above sea level, the island nation of
Tuvalu is under threat of sinking beneath the ocean due to rising sea
levels caused by global warming and other factors.
As part of its environmental preservation activities with e8 (aconference of the world’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 is participating over the next 2 years bymonitoring operations and providing support at the power station.

Past logging practices in Australia have led to serious
environmental problems, as soil salination has made previously
arable land unfit for farming. In response to this crisis, since
fiscal 2002, the Kansai Electric Power Group has been carryingout a co-benefit environmental afforestation enterprise tocounter global warming and soil salinization at the same time.
In an agricultural area leased outside Perth in Western
Australia, we have planted malee eucalyptus trees in belts
about 10 m wide, extending a total of approximately 900 km(about 2.5 million trees covering about 1,000 ha).

There are a total of 134 wind turbine generators in operation at
Tararua Wind Power Station in Palmerston North on the northisland of New Zealand, making it the largest wind power station in
the Southern Hemisphere. The Company participated in the
Phase 3 project by installing 31 wind turbine generators,(respectively 3,000 kW) and selling the power generated by them.
For this project, Kansai Electric Power received Joint
Implementation (JI) certification from the New Zealandgovernment, becoming the first Japanese corporation toparticipate in a JI project in New Zealand.

Project nameTuvalu Solar Power Generation Project

Project nameWestern Australia Environmental Afforestation Project

Project name

Participants other thanKansai Electric PowerTokyo Electric Power, Tuvalu Electricity
Corporation

Participants other thanKansai Electric Power

Oil Mallee Company, General Environmental
Technos Co., Ltd.

Participants other thanKansai Electric Power

Volume of CO2 reduction About 50 t-CO2/year
Participation period

Volume of CO2 reduction About 860,000 t-CO2/20 years

2007–2010

Tuvalu is a small island nation in the South
Pacific, only 2 meters above sea level

Participation period

Solar power generation equipment

Participation period

Part of the malee eucalyptus forest, planted in belts (photo shows a local excursion to
the site)

Project name

Thermal Energy Recovery for New Applications Project

TrustPower Limited

Participants other thanKansai Electric PowerBee Joo Industries Pte Ltd

2008–2012

Participation period

2008–2012

Waste heat from an incineration facility for thinned wood, etc., is used for new
purposes

LegendChina
FundVietnamBhutanHydropower
India

MalaysiaWind power generation

Chile
Australia

Afforestation

Methane gas emission prevention at palm oil
mill in Malaysia
At a palm oil mill on the island of Sabah in Malaysia, vast
amounts of empty fruit bunches left over after palm oil
extraction, as well as organic effluents, are left to decay
anaerobically, releasing methane gas into the atmosphere.
Kansai Electric Power contributes by composting the empty
fruit bunches and effluents before they decay, turning them into
useful fertilizer and preventing the emission of methane gas.
In November 2007, this project was registered by theUnited Nations as a CDM project in recognition of theprevention of methane gas emissions, thereby fighting against
global warming.

TuvaluSingapore
Waste processing

Project name

Co-composting Project at palm oil millParticipants other thanKansai Electric PowerMG BioGreen Sdn. Bhd.

Volume of CO2 reduction About 29,000 t-CO2/year
Worldwide(Japan Greenhouse Gas
Reduction Fund)

About the “Clean Development Mechanism” and “Joint Implementation”
These are methods of greenhouse gas emissions reduction laid out by the
Kyoto Protocol. When developed countries take part in projects in othercountries aimed at reducing emissions of greenhouse gases such as CO2
and methane, the volume of emissions reduced can be put toward meeting

Kansai Electric Power Group CSR Report 2008

Volume of CO2 reduction About 15,000 t-CO2/year

Tararua Wind Power Station on New Zealand’s north island■ Main overseas projects by Kansai Electric Power

27

In this project, the waste heat from an incineration facility forthinned wood and other waste materials in Singapore’s Sungei
Kadut district is put to use for drying spent grain from abeverage factory and for maintaining the storage temperatureof chemicals. Efficient use of waste heat from the incinerator
allows for suppression of greenhouse gas emissions, incontrast to previous use of fossil fuels.
This project was the first to be authorized by thegovernment of Singapore as a CDM project, and we will makeefforts to apply for CDM registration.

Phase 3 Tararua Wind Power Station Project

Volume of CO2 reduction About 230,000 t-CO2/year

2002–2022

Efficient use of waste heat in Singapore

New Zealand

Solar power generation

Participation period

2007–2012

Kansai Electric Power can be expected
to continue making contributions to theprevention of global warming
Kyotoenergy Pte Ltd is specialized in services to theCDM, integrating the business from carbon advisory
services, Carbon Asset Management, emission
reductions aggregator and project financing. Over the
past year, Kyotoenergy Pte Ltd and Kansai ElectricPower have jointly participated in CDM projects.
Efforts to prevent global warming are urgently
needed and CDM proves to be a realistic and efficientmeasure to reduce CO2 emissions. Kansai ElectricPower has clearly understood that climate change isredefining business objectives and opens perspectives
for future growth from a brand new angle. We believe
its efforts should be recognised and evaluated as ahuge step forward against global warming, and lookforward to Kansai Electric Power’s
continuous and thorough investment in the future.

Biomassthe developed country’s reductions target. The “Clean Development
Mechanism” (CDM) is a system in which developed countries conduct
projects in developing countries aimed at reducing emissions of greenhousegases, and “Joint Implementation” (JI) is a system in which two or moredeveloped countries collaborate on such a project.

Kyotoenergy CEO
Michel Buron
Fruit bunches

Composting facility

Kansai Electric Power Group CSR Report 200828

Progressive Approach to Environmental Problems

2

Progressive approach to regional environmental issues
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 substancesfrom harming people and the environment.

At our power stations, we undertake measures based on laws,
regulations, environmental protection agreements and otherrules to reduce atmospheric pollution, water quality
contamination, noise, vibrations and other problems.
In addition, we monitor and measure the air and seasaround our power stations and carefully evaluate theenvironmental effects of our operations on the regional
environment to ensure that no problems occur.

Air pollution prevention measures (NOx, SOx,
soot)
Our thermal power plants use low-sulfur and low-nitrogen fuels,
and we have dramatically reduced sulfur oxide (SOx) andnitrogen oxide (NOx) emissions through measures such as theinstallation of flue gas desulfurization and denitrificationequipment. As a result, SOx and NOx emissions from ourthermal power facilities are ranked among the lowest in theworld.
In addition, high-performance electric filters are installed,
drastically cutting soot emissions.

(t)

Thermal power generation

300,000

40,000100,000

20,000

65

70

75

80

85

90

95

00

1.9
1.5

1.7

Canada02

UK
02

France
02

0.2

0.7

0.7 0.6

Italy
02

Germany Japan
02
06

0
USA
02

0

07 (FY)

Strict management of chemical substances
We strictly manage chemical substances to prevent harm tohuman health and impact on ecosystems in accordance withapplicable laws.

PCB waste processing
2.0
2.0

0.2

0.11
0.07
KEPCO
07 (FY)

Sources:
Emission amounts: OECD Environmental Data Compendium 2004
Amounts of electric power generation: Energy Balances of OECD Countries 2002-2003
Japan figure: Federation of Electrical Power Companies of Japan

Water quality degradation and hot water
discharge measures

60,000200,000

0

3.9
2.6

1.7

NOx emissions

Noise pollution and vibration prevention
measures50,8043,412

3.7

SOx emissions

80,000(GWh)

400,000(kWh)

Water used in thermal power plants is thoroughly purified by avariety of processing equipment before discharge.
Furthermore, to supplement oil barricades and loading arms,
we have installed oil fences and other oil spill countermeasures
to be completely prepared for the unlikely occurrence of an oil
spill. We also release seawater used for power plant cooling(hot water discharge) at a temperature no more than 7°C
higher than the nearby ocean. In addition, to prevent affecting
the sea creatures that live nearby, we choose appropriate
methods and locations for water intake and output.

■ SOx emissions and thermal power generation
SOx emissions■ SOx and NOx emissions per unit of thermal power generated

Whenever possible, we place devices that may cause noise
pollution or vibrations inside and far from the boundaries of ourpower plants and substations. We also reinforce machineryfoundations and install noise absorbers and barriers tominimize noise pollution and vibration.

Since April 2004, Kansai Electric Power has been smoothly
processing pole transformers at our Recycling Center for
Utility Pole Transformers to 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 contracted the Japan
Environmental Safety Corporation to process these items
starting in October 2006. Moreover, we are managing heavy
electrical machinery and other equipment appropriately inresponse to the identification of PCB traces in some items.

Efforts to handle asbestos problems
Kansai Electric Power has been periodically monitoring andappropriately managing the condition of facilities identified as
containing asbestos and taking appropriate action. We
continue to undertake appropriate management and execute
carefully planned measures to handle asbestos.
■ Locations where asbestos is used
Application

LocationSprayed materials containing
asbestos

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

Building materials

Flame-retardant boards, roofing and flooring inbuildings, etc.

Asbestos cement tubes

Tubing for buried cables (power transmission
and distribution, communication)

Thermal insulation

Power generation equipment (thermal, nuclear)

Products containing
asbestos

Community environmental protection measures

The verification mark on the left identifies items thathave received an independent review from Tohmatsu
Environmental Research Institute Ltd.

Sealants and joint seating Power generation equipment (thermal, nuclear)
Shock-absorbent materials Suspension insulators for power transmission
equipment, etc.
Adhesives

Aerial power transmission cables, hydroelectric dams

Odor prevention measures

Volumes of chemical emissions and amounts transported

Input levels of the ammonia used in our sulfur scrubbers andsoot collectors are constantly maintained at an appropriate
level by automatic control systems, and emissions arecontrolled to low ammonia concentrations. This concentrationis measured regularly to prevent odor.

In anticipation of the enactment of the PRTR law, theCompany prepared the Handbook on PRTR Chemical
Management as part of ongoing efforts to ensure the prudent
and appropriate handling of chemicals. In accordance with
the PRTR law, we disclose to the national government ourvolumes of chemical emissions and the amounts transported,
and regularly make the same information public.

Measures to prevent soil and groundwatercontamination
Kansai Electric Power has produced a Handbook on
Measures Against Soil Pollution and applies it appropriately.
Moreover, our power stations have water and oil retaining
walls installed, preventing contamination from chemicals andfuels such as heavy oil in the unlikely event of leakage.

Implementing environmental assessments
An environmental assessment is a consultative process withrespect to the environmental impact of a company’s businessactivities. The company’s operations are measured andevaluated to determine the degree of their environmental
impact. The results are disclosed to the regional communityand opinions are canvassed. These findings inform thecompany’s environmental efforts and are reflected in its
operating plans.
In environmental assessments of power generating
stations, not only the procedures stipulated in theEnvironmental Impact Assessment Law, but also the specificsteps outlined in the Electricity Enterprises Law, must be
followed.
Kansai Electric Power is upgrading its generating
equipment at Sakaiko Power Station to a combined-cycle
power generation system. This upgrade was the subject ofan environmental assessment lasting from January 2004 toJuly 2006.
Similarly, we are evaluating the commercial viability of
upgrading the Himeji No. 2 Power Station to combined-cycle
power generation. The environmental assessment process
for this move, includ- Artist’s conception of Sakaiko
ing a one-year status Power Station
inspection and sub- when completedsequent
measurements and evaluations,began in May 2007.

The color scheme reflects the pine trees on thestation’s grounds as well as nearby Hamadera Park.

■ NOx emissions and thermal power generation■ Discharge and transferred substances subject to PRTR Law
NOx emissions(t)

Thermal power generation(GWh)

40,00080,00030,00050,80420,00060,00040,00010,000

5,541

Research on the use of bamboo charcoal
for CO2 fixation and effective applicationsin the Maizuru region
Kansai Electric Power is conducting empirical researchon making charcoal from bamboo grown in the Maizuru
region of Kyoto to fix CO2 from the atmosphere and on
effective applications for bamboo charcoal, including
water purification and soil improvement.

20,000
0

0
65

70

75

80

85

90

95

00

07
Maizuru Bamboo Charcoal
Testing Center for CO2 Fixing
and Utilization (Maizuru, Kyoto)

Substances

2-aminoethanol
Asbestos
Bisphenol A epoxy
Ethylbenzene
Xylene
HCFC-225
StyreneThiourea
TolueneHydrazine
Bis (2-ethylhexyl) phthalate
BenzeneTris (dimethylphenyl) phosphate
Dioxins

Discharge (t/year)
FY 2004

FY 2005

FY 2006

Transferred (t/year)
FY 2007

FY 2004

FY 2005

FY 2006

FY 2007

＜0.1
＜0.1
0
0
3.3
5.1
4.7
11
0
0
0
0
120
50
80
25
＜0.1
＜0.1
0.11
0.11
0
0
0
0
4.0
7.1
14
17
0
0
0
0
33
32
36
46
＜0.1
＜0.1
0.11
＜0.1
4.3
2.1
4.6
3.2
0
0
0
0
2.4
2.2
1.2
1.2
0
0
0
0
0
0
―
―
0
0
―
―
7.0
4.5
6.9
14
0
0
＜0.1
＜0.1
＜0.1
＜0.1
＜0.1
＜0.1
1.4
2.1
0.89
1.1
―
―
―
1.1
―
―
―
0
＜0.1
―
―
―
0
―
―
―
0
0
0
0
15
7.7
7.3
3.7
70 (mg-TEQ/year) 340 (mg-TEQ/year) 0.44 (mg-TEQ/year) 0.45 (mg-TEQ/year) 3.9 (mg-TEQ/year) 4.4 (mg-TEQ/year) 14 (mg-TEQ/year) 1.5 (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

29

Kansai Electric Power Group CSR Report 2008

Kansai Electric Power Group CSR Report 2008

30

Progressive Approach to Environmental Problems

2

Promotion of business activities suitable for a sound material-cycle society
Kansai Electric Power is working hard to promote a sound material-cycle society. Efforts include energy- and material-saving
activities such as green purchasing and activities related to the three Rs: reduction, reuse and recycling.

Sorting and collecting of general waste

At Kansai Electric Power, from fiscal 2007 we have adopted a
new industrial waste recycling rate target of 99.5% or more inline with our commitment to achieving zero emissions in ourbusiness operations in the medium and long term.
To achieve this target over the next five years or so, we arestrengthening our in-house system for promoting recycling, andare moving forward with efforts to collect information on
recycling contractors and establish mechanisms for information
sharing within the company.

At Kansai Electric Power’s head office, we do not keep trashcans in work areas. Instead, each work area is furnished with a“sorting collector,” “collection box for non-burnables and otherwaste” and other depots forthe sorting and collection of
garbage.
Thanks to this system,
the Company has achieved a
100% recycling rate for paper.

■ Changes in emissions and recycling rates for industrial wastes
Landfill disposal

Industrial waste emissions and landfill disposal

(%)

450
98

400
350
300

89

98

98

98

399

331

342

100
95

331

89

90

250
86

200

85

150
100
50
0

64

80

57

50

■ Concrete efforts to meet targets

Recycling rate

7

7

6

8

7

7

2001

2002

2003

2004

2005

2006

6

Recycling rate of industrial wastes

Emissions(Thousand t)

75

2007 (FY)∗ Industrial waste recycling rate (%) = (industrial waste emissions – landfill
disposal volume) / industrial waste emissions × 100■ Applications for resources recovered from industrial and other waste
Industrial and other waste

Recycling rate

Sludge(Desulfogypsum, wastewater
processing sludge, etc.)
Soot(Coal ash, heavy oil ash, etc.)

97%

100%

Main recycling
applications
Construction
materials
Cement raw
materials

Sorting collector (right) and collection box forother non-burnables and other waste (left)

Issue

EffortIn-house systems
for promoting recycling
are insufficient.

Enhance efforts for promoting
recycling-oriented activities (setting up
policies to increase the recycling rate
and monitor progress by division).

Recycling methods
are unclear.

Collect information and establish
mechanisms (for sharing information
on recycling contractors andrecycling examples).

■ Categories for sorting of office trash at the head office
Item

Paper collector

Newspapers

Newspaper collector
Magazine collector

Cans

Can collector

PET bottles

PET bottle collector

Lunch packaging, drink packs,
instant-noodle containers

Other burnables collector

Other burnables

Other burnables collector

Kansai Electric Power purchases plastic waste, such as thepolyethylene insulation (polyethylene tubes) from discarded
power distribution equipment and electrical connection
covers, for reuse as materials.

Cardboard boxes

Stack in the work corner■ Recycling of waste plastic

Ceramics

Cultivate new avenues for recycling
based on work to develop newtechnologies, etc.

Recycling of unneeded protective tubes, etc.
Shredded paper
Glass (bottles, etc.)

Stack in the work corner

Collection box for othernon-burnables (bottles and glass)PET bottle labels, caps, lids for paper cups
Cinders(Coal ash, heavy oil ash, etc.)

100%

Waste oil100%

Rare metal recovery

Demolition debris(Waste concrete utility poles, etc.)

31

Manufacturing(Recycling)

Supply ofrecycled materials

Fuel, etc.

Purchase of products

Disposal and recovery

99%
Metal recovery

Metal scraps

Processing company(Recycling)

Kansai Electric
Power

99%
Roadbed materials

Glass and ceramics scraps(Thermal insulation scraps, insulator scraps, etc.)

38%

Waste plastic scraps(Ion-exchange resin etc.)

71%

Special management industrial waste(Waste oil, waste asbestos, etc.)

73%

Kansai Electric Power Group CSR Report 2008

Metal recovery

Plastic raw materials

Fuel, etc.

Electrical connection covers

Branch-line guards

Polyethylene
insulating tubes

Green purchasing rate
Item
TargetAlmost100%

Result (fiscal 2007)98%

Total (31 items)• Stationery (15 items)

Office supplies

75%• Appliances and furniture97%(11 items)• OA devices (5 items)

99%■ Green purchasing results for electrical power facility materials
and parts
Purchasing value

Number of items

10,000

150

8,000
99

6,000

108

111

120

64

84

4,000
2,000

106

90
36

36

41

60

21

30

0

0
03

04

05

06

07

(FY)

Collection box for non-burnables (plastic)
Plastics (except PET bottles)V O I C E

Metals (metal office materials only)

Collection box for other non-burnables (metals)

Paper cups from vending machines

Paper cup collection box beside vending
machines in the “refresh corner”

Food waste

Tea dregs collector in the “refresh corner”

Cigarette ash

Ash trays in the “refresh corner”
and smoking room

Increasing the number of green purchasing items

Main materials for recycling■ Results for green purchasing of office supplies

Placed in:

Copy paper

Magazines, brochures(color printed items)

Disposal of
difficult-to-recycle
waste

promoting further improvements in our green purchasing rate.
Owing to problems regarding the percentage of recycled
paper in certain paper products, in fiscal 2007 the Company
reduced the number of items it lists in its green purchasing
activities from 45 to 31, removing 14 partial-recycled-paper
products.
At the same time, we actively advanced the procurementof environmentally friendly materials for electric lines,
transformers, and other materials and parts for electric power
facilities, raising the number of green purchasing items to 111
in fiscal 2007. The number of covered items will rise to 114 infiscal 2008 as we continue to expand the scope of our green
purchasing program.

Number of items covered

Kansai Electric Power promotes efforts related to the three Rs
for waste and other materials throughout all its operations toencourage business activities appropriate to a sound materialcycle society. For example, waste concrete utility poles arerecycled as roadbed materials, and all of the coal ash andgypsum produced by the Maizuru Power Station is recycled as
raw materials for cement and the like.

Efforts to achieve zero emissions

Green purchasing value (millions of yen)

Industrial waste recycling rate and landfill
disposal volume performance

The verification mark on the left identifies items thathave received an independent review from Tohmatsu
Environmental Research Institute Ltd.

At Kansai Electric Power, in accordance with Japan’s green
purchasing promotion policy, which was established in 1999,
we are pursuing green purchasing efforts by giving priority to
products and services with low environmental impact whenbuying supplies. Specifically, we have established a green
purchasing manual and are promoting efforts to realize thecompany-wide purchasing targets that we have set.
In office supplies, we have achieved a green purchasingrate of almost 100%. From fiscal 2007 forward, we are
increasing the range of office supply items from 43 to 45,

Toward zero emissions
To promote still further improvements in the recycling ofindustrial waste emitted from our business locations,
we have adopted the ambitious target of zero
emissions (recycling rate target of 99.5% or more), andthe Company is united in working toward this goal. To
reach this target, we are focusing closely on the basics,
ensuring that all employees are strongly aware of theirindividual responsibilities for thewaste they generate in the courseof operations. This is the surest
path toward fulfilling our goal.

Takamitsu Yabe
Environmental Engineering Group
Office of Environmental Considerations

Kansai Electric Power Group CSR Report 2008

32

Progressive Approach to Environmental Problems

Raising environmental awarenessIndependent review

Committed to reducing the environmental impact of its business activities and the realization of a sustainable society, Kansai
Electric Power is working actively with its customers and the regional community to raise environmental awareness.

Kansai Electric Power has received independent review of environmental performance informationin our CSR Report 2008 from Tohmatsu Environmental Research Institute Ltd. to assure confidence
in our accuracy.
(Items that have received independent review are indicated by the mark to the right.)

Eco eLife Check: an environmental
household account bookCO2 emissions from households are climbing every year.
Reducing the volume of these emissions is an important front in
the fight to prevent global warming. That’s why Kansai ElectricPower created Eco eLife Check, an environmental household
account book. This tool, available on the Company Web site,
offers a new way of thinking about the energy people use athome, by encouraging families to include environmental impact
in everyday household calculations.
By registering with Eco eLife Check online, families canview their own private statistics on the Web, comparing theirresults with the average and checking their position in anational ranking. Families can have fun together as they
continuously evaluate their environmental performance.
For every 10 people who register as members, Kansai
Electric Power plants one tree. By helping people to makeJapan a greener place, Kansai Electric Power is responding to
the public’s desire to protect the environment, while widening
the circle of positive environmental action.

and forest thinning. Tours of power stations and trashincinerator stations provide an added perspective on
environmental issues, and the Kids’ ISO 14000 Program
encourages parents and children to work together to explore
ways of reducing energy consumption in the family home.
By organizing Kanden e-Kids Club in the Kansai
community, Kansai Electric Power hopes to provide children
with opportunities to try their hand at eco-friendly activities andgrow as environmentally responsible individuals.

Kansai Electric Power commits time and resources toward
developing the environmental consciousness of the next
generation, on whom all our hopes for the future depend.
Children in the fifth and sixth years of primary school in our
region of operation are invited to participate in a series of
ecological programs, called Kanden e-Kids Club, to encouragethem to recognize, think about and take action on global
warming and a wide variety of environmental problems.
In fiscal 2007 a total of 198 children took part in thisprogram, which was launched in fiscal 2006. Kanden e-Kids
Club canvasses for new members every June, and activities
continue from the opening ceremony in July to the program’s
end in March of the following year. The children take part in fun
activities that encourage them to experience the natural world
with their own eyes, ears and hands, including tree climbing

33

Kansai Electric Power Group CSR Report 2008

Independent Review Report
July 4, 2008
Mr. Shosuke Mori
President and Director
The Kansai Electric Power Co., Inc.
Tohmatsu Environment Research Institute Ltd.
Hiroshi Enoki, Representative Director

2. Responsibility of the Management
The Report is the responsibility of the Company’s management. Our responsibility is to provide ourlimited assurance with respect to the review performed on the Report from an independent practitioner.

3. Summary of Review

Raising environmental awareness with theGreen Curtain

Kanden e-Kids Club(TRANSLATION)

We have reviewed the “Kansai Electric Power Group CSR Report 2008” (the “Report”) prepared by
The Kansai Electric Power Co., Inc (the “Company”). The purpose of our review was to provide
limited assurance from an independent practitioner about whether material environmental information
indicated with the verification logo for the period from April 1, 2007 to March 31, 2008 included in theReport was accurately measured and calculated, referring to the Environmental Reporting
Guidelines – 2007 version (issued by the Japanese Ministry of the Environment) and GRI
Sustainability Reporting Guidelines (Version 3.0), in accordance with calculation methods adopted by
the Company, and that no such material items were omitted.

Closing ceremony

Just enter the information
required and receive aquick calculation of yourCO2 output.

In this year’s overall independent review, we
received the following comments from Tohmatsu
Environmental Research Institute Ltd.

1. Scope of the Review

Tree climbing

From April to June 2008, Kansai Electric Power conducted anenvironmental awareness-raising campaign at 35 primaryschools throughout the business areas of Company outlets andshowrooms.
The “Green Curtain” is a net, cast across an entire window,
on which climbing plants are grown. The curtain is an effective
device for reducing energy consumption: it shades the interior
from the sunlight, regulating indoor temperatures, while theplants’ evaporating effect cools the surroundings. During thisperiod, Company staff visited primary schools, distributing
leaflets explaining the purpose and effects of the Green Curtain
and how it is created, and even assisting the children inplanting seedlings of their own.
Through these activities, children experience how theirown Green Curtains work.
Kansai Electric Power
expects this program to bolster children’s environmental
awareness and encourage
families to think about things
they can do to use energy
wisely.

Green Curtain2

To obtain an adequate and valid standard of basis for providing limited assurance with respect to ourconclusions, we performed our review with reference to the International Standard on Assurance
Engagements (ISAE) 3000 (issued by the International Federation of Accountants in December 2003),
the Proposed Environmental Report Review Standard (issued by the Japanese Ministry of theEnvironment in 2004) and the Practical Guideline for Assurance Engagement of Sustainability
Information (issued by the Japanese Association of Assurance Organizations of Sustainability
Information in February 2008).
The review procedures performed for the material environmental information indicated with theverification logo for the period from April 1, 2007 to March 31, 2008 included in the Report consistedof; 1) agreeing information to summary tables and supporting documents on a sample basis; 2)interviewing the responsible personnel and the persons in charge; 3) reviewing and agreeing
information to the relevant minutes, the Company’s regulations, and ISO related documents and so on;4) site visits; and 5) comparing information with other available supporting internal and externalmaterials.

4. Conclusions
On the basis of the review procedures described in the preceding paragraph, nothing has come to ourattention that caused us to believe: the material environmental information indicated with theverification logo for the period from April 1, 2007 to March 31, 2008 included in the Report was notaccurately measured or calculated, referring to the Environmental Reporting Guidelines – 2007 version(issued by the Japanese Ministry of the Environment) and GRI Sustainability Reporting Guidelines(Version 3.0), in accordance with calculation methods adopted by the Company, in all material
respects; or that any material items listed in the Appendix: Requirements for Logotype Registration ofEnvironmental Reporting were omitted.

5. Special Interests
There are no interests between the Company and Tohmatsu Environmental Research Institute Ltd. or
its engagement personnel, requiring disclosure referred to the provisions of the Certified Public
Accountants Law of Japan.

Acquisition of EcoLeaf environmental label
certification
Kansai Electric Power’s main product, electric power (systemelectric power), has received EcoLeaf environmental label
certification.
The EcoLeaf environmental label is an environmental
labeling system that is operated by the Japan Environmental
Management Association for Industry (JEMAI). This system
uses third-party verification of quantitative environmental
data for the product lifecycle from the gathering of raw
resources to disposal and recycling. In July 2003, Kansai
Electric Power became the first business in the energy
services field to receive this registered and publicly certifiedlabel.

Independent expert comments
1) To promote the consistent application of accounting
methods for the environmental performance data, theGroup produced its Eco-Action Accounting
Guidelines as part of the development of its EcoAction Accounting Manual. The Group’s circulation ofthese documents to all related sections anddepartments represented a concerted effort toimprove the accuracy of environmental information.
However, we found some areas where further
clarification of the accounting methods is needed.
Improvement of these points in the next fiscal year
would be desirable.
2) Thanks to use of the environmental information
management system becoming entrenched andcooperation among departments and sections, thetabulation of environmental performance data wasfaster this year than the previous fiscal year. We
expect that continuing efforts will be made totabulate the environmental performance data more
efficiently.
3) The prevention of global warming, an issue of strong
current interest, was well covered in a Special
Feature. For the period from fiscal 2008 throughfiscal 2012, the Group has set a challenging target of
reducing CO2 emissions per unit of electrical power
to 0.282 kg/kWh. We expect that future reports will
carry more specific information about the means bywhich the Group intends to fulfill this target.

Future Kansai Electric Power efforts
Kansai Electric Power will make solid efforts to improve
the accuracy of its environmental information by clarifying
further the accounting methods stated in the Group’s
Eco-Action Accounting Guidelines. Beginning in the next
fiscal year, the Company will also strive to establish its
data more quickly. Finally, the Company will provide moredetailed information regarding the efforts by which it isendeavoring to reduce its CO2 emission factor.

We update our certification every year, using the latest
results, and will continue to use this label to build customer
confidence through the display of valuable environmental
information.
■ Registered and published data for

FY 2006 results
Product name: System electric power
Specification: 60 Hz
Fiscal year:
2006
Global-warming load during life cycle (CO2 equivalent):
0.392 kg-CO2/kWh (FY 2006)
CO2 emissions in power generation (all-day average):
0.338 kg-CO2/kWh (FY 2006)
0.315 kg-CO2/kWh(5-year average for FY 2002–FY 2006)* Updates to the FY 2007 results are based on the Law to Promote Measures Against Global Warming, in consideration of the Company’s
CO2 emission factor as published by the government of Japan.
** For details on the certification data, please visit our website at (http://www.kepco.co.jp/kankyou/) or the website for the Japan
Environmental Management Association for Industry (http://www.jemai.or.jp/ecoleaf).
Planting seedlings

Kansai Electric Power Group CSR Report 200834

Proactive Contributions to Development of Local Communities

3

Contributions to society as a corporate citizen
At Kansai Electric Power, we recognize that our operations vitally affect the daily lives of the people in the region we serve.
Each employee is dedicated to serving the regional community, partnering with local people at every Company location to
make our region a better place.

Contributing to regional communities

Inspection of electrical equipment for elderly people who live alone

Support for employee volunteer activities

Meeting the expectations of each region

Liaising with local social
services organizations and firestations, Kansai Electric Power
providesinspectionsofelectrical equipment in thehomes of elderly people living
alone. Company representatives
check for electrical leaks and Checking for electrical leaks (Mikuni
wiring faults and advise Sales Office)customers on the safe use of electricity, not only to ensure asafe and reliable power supply but also to enable customers to
use their electricity with peace of mind.

Enhancing the support system

In a spirit of gratitude to the communities that support us every
day, each of our locations participates actively in local events,and even hosts its own wide range of events. These activities
serve to deepen the spirit of open dialogue between Kansai
Electric Power and its customers.
Kansai Electric Power
employees add fun toChristmas parties at social
services facilities.
(Hanshin Sales Office)We support the desires of our individual employees tocontribute to society through volunteer activities. In addition tooffering volunteer time off, a matching gift program and othersupport policies, we provide information to our employees
through in-house publications to raise their desire to participate
in volunteer activities.

■ Support system for volunteer activities
Matching gift program
Results (FY 2007): 7 instances totaling ¥460,000

Supporting and helping to promote student
sportsCompany employees
inspect the wiring usedin Kyoto’s Gion Festival.
(Kyoto Sales Office)Co-sponsoring student American football in Kansai

At the Gokoyama Kanjiki
Country Festival, theCompany bonds with thelocal community throughshared experience oftraditional culture.
(Hokuriku District Office)Kansai Electric Power has been supporting student American
football in Kansai since 1988.
The KANDEN FLASHBOWLSERIES is a league tournament
held each spring and autumn. It
aims to generate interest in
student American football in
Kansai and raise the level ofskill.
KANDEN FLASHBOWL SERIESAssisting people with disabilities through art
Kanden Collabo Art 21 exhibitions for disabled artists

The station’s grounds open
to the public for an eveningof appreciation for the firefly.
(Himeji No. 1 Power Station)

At the Mihama/Hiroshi Itsuki
Marathon, Kansai ElectricPower employees
participate not only asorganizers but also as
runners.
(Mihama Power Station)

Beautification activities in partnership with regional
communities
Each Company facility works with the community in which it
operates to maintain the beauty of the local environment
through regular cleanup campaigns. In addition to participatingin area cleanup activities, the Company cooperates with local
governments, councils and other organizations to conductcleanups atsightseeing
spots, coastal
areas, riversides and social
services facilities.
Cleaning and inspecting utility
poles as part of efforts tomaintain well-lit city streets(Shiga Sales Office)35

Kansai Electric Power Group CSR Report 2008

Maintaining pathways on
Mount Koya
(Hashimoto Sales Office)Kanden Collabo Art 21, a series of exhibitions featuringsubmissions of art created by disabled people, is acollaborative project that connects businesses and society
through art. It is organized in collaboration with the Tanpopono-ye Foundation, a group that has extensive experience withdisabled artists. We accept works of art from throughout
Kansai, and every year we receive submissions from all over
the region. In fiscal 2007, the seventh year we held this event,
we received over 700 submissions. The best of these wereselected for exhibition at seven locations throughout Kansai
and Fukui Prefecture. They were first displayed in Osaka aspart of the Disabled Persons Week promoted by the national
government. Large numbers of people turned out to see theworks of these talented artists.

Providing superb opportunities for theappreciation of music
Classical concerts
To promote the blossoming of culture in the Kansai region, we
have been holding a series of classical concerts, called theKanden Classic Special, since 1998. In fiscal 2007 wesponsored a production of Puccini’s opera Tosca. Over twonights, some 4,200 opera lovers
turned out to enjoy thisoutstanding performance. The
Company also hosts a series ofclassical concerts at its sales
offices and other locations.

Under this system, the company makes contributions up to aset limit to match support provided, either by individual
employees or collected through workplace fund-raising
activities, to public organizations that meet fixed requirements.

Volunteer time-off program
Results (FY 2007): 114 instances totaling 254 days
This system allows employees that participate in activities that
contribute to society and meet fixed conditions to take 50% to100% of the time devoted to such activities as speciallyrecognized time off, up to an annual limit.

Volunteer sabbatical program
Utilized by 15 employees from FY 1992 to FY 2007
This program enables employees who have worked for thecompany for five years or more to take up to a year off in orderto participate in long-term volunteer work for a public social
welfare organization. In the case of the Japan Overseas
Cooperation Volunteers, however, the maximum sabbatical
period is two years and six months.

V O I C E
Using the volunteer sabbatical program
to serve in the Japan Overseas
Cooperation Volunteers
Tatsuo Fujii
Akashi Customer Center
Kobe Sales OfficeEfforts for regional vitalization
Attracting businesses to Kansai from across Japanand overseas for regional vitalization
Since fiscal 2000, Kansai Electric Power has been cooperating withlocal governments and business communities in an effort to promoteeconomic growth in the areas where we operate by attracting new
businesses. For example, we provide information on the incentive
system by local governments and industrial parks in Kansai toenterprises that are investigating Kansai as a new location. We also
conduct public relations efforts and other activities to promote theconvenient transport access and numerous merits of the Kansai regionin order to attract the attention of businesses that are considering
investment in domestic facilities.

Informing the world about the attractions of Kansai
We produce “The KANSAI Guide to Investment” a concise pamphlet
with information on industrial parks in Kansai and the incentive systems
offered by local governments. Japanese and English versions of “TheKANSAI Guide to Investment” may be accessed on the Kansai ElectricPower Web site.
We also publish the magazine Community Information on abimonthly basis. It contains information on industry-university
collaboration projects, industrial promotion policies and the latest
incentive systems offered by local governments, and available
industrial sites.
The Company also has a libraryof local-government pamphlets on thethird floor of its head office building.
Kansai Electric Power invites everyone
interested in investing in Kansai tomake full and free use of this trove of
information about investing in thisdynamic region.

Web “The KANSAI Guide to Investment”
http://www.kepco.co.jp/english/i-park/index.html

The Osaka Bay area becomes a world-leading
production hub for flat-panel displays
In 2005, Matsushita Plasma Display Co., Ltd. (MPD) established aplasma display plant in the city of Amagasaki, on the former grounds ofKansai Electric Power’s Amagasaki No. 3 Power Plant. In 2007, MPD
expanded its operations, opening Amagasaki No. 2 Plant. In addition,
Amagasaki No. 3 Plant is already under construction.
Meanwhile, Sharp Corporation decided in July 2007 to open theworld’s largest LCD panel plant in Sakai. Plans call for the new plant tostart production within fiscal 2009.
Another major production facility will soon be constructed in Himeji,
as IPS Alpha Technology, Ltd. decided in February 2008 to build an LCD
panel plant there.
These exciting developments highlight the Osaka Bay region’s
emerging presence as a flat-panel production hub. Further
concentration of industry is expected in the near future.

Posted to the Provincial Sports Bureau, Ministry of
Culture, Department of Caldas, Republic of Colombia(March 2008 to March 2010)

I am currently seconded to Colombia as a basketballinstructor, providing instruction to youth teams and training
for local instructors. Though I have experience as an
instructor in Japan, I’ve had to play a lot of things by ear in
putting my instruction program together here, given the
differences in culture. Nonetheless, my goals are the sameas those I have in Japan: to help kids discover the fun ofsports, and to cultivate in them a spirit of consideration forothers.
I’m determined to work hard every day to use myexperience for the benefit of the Colombian people.

Artist’s conception of Sharp’s“21st-century industrial
complex” when completed

Creating a vibrant industrial hub
The Kansai Electric Power Group is committed to promoting vibrant
growth in the Kansai region. We are devoting the expertise of the entire
Group to a “solutions-based incentive program,” to serve the needs ofthe digital electronics and other manufacturers who will bring fresh
capital investment to the region over the coming years.

Kanden Classic Special

Kansai Electric Power Group CSR Report 200836

Respect for Human Rights, Development of Favorable Work Environments

4

Promotion of diversity and creation of comfortable workplaces
The entire Kansai Electric Power Group is pursuing efforts for the realization of fair and impartial employment, and for thecreation of comfortable workplaces that suit individual abilities and aptitudes, while complying with applicable laws andregulations.

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 leaveand flexible work systems.

Leave systems and shortened work hours to support
childcare and nursing
To support employees involved in childcare and nursing, weoffer a leave system and system of shorter work hours.
For example, we introduced a temporary leave system forchild-raising in 1991, before such provisions were mandatedby law. At present, employees can utilize this system until theend of the fiscal year in which their child turns three. Though it
is primarily utilized by women, the system is easy to use andwell-established, with several male employees presently
making use of it.
■ Status of use of childcare support system

Leave systems
Kansai Electric Power offers leave systems to support
employees who are raising the next generation. In addition toproviding maternity leave and childcare leave as mandated bylaw, the Company offers its own support measures: spousematernity leave and family support cumulative leave.
Spouse maternity leave offers five days’ leave toemployees whose spouses are giving birth, while family
support cumulative leave permits employees to save time fromtheir annual paid leave and divert it to spouse or family nursing
care, or for visits to the hospital for infertility treatment.
■ Main child-raising support systems
Under 1 year 1 year 2 years 3 years 4 years 5 years…… 10 years

Maternity leave
Maternitylea
6 weeks before childbirth
8 weeks following childbirthTemporTemporaryemporararyy childraisingchildraising leavelea● Childcare leave

Women: 100% of female employees who gave birth in fiscal
2007 used this system.
Men: Since its introduction in 1991, 8 men have used thissystem.
● Shortened work hours for childcare

Women: 146 women used this system in fiscal 2007.
Men: Since fiscal 2002, 1 man has used this system.

Through the end of the fiscal year in which
the child reaches three years of age

V O I C E
I returned to my old job using f-Staff
When I had my first child, I quit my job to become a fulltime mom. Later, after the birth of my second child, I heard
about the f-Staff system, but I wasn’t sure it was right forme, as my kids were still small. I thought about it anddecided to work while I still can, and two years ago I went
back to work. Usually, going back to the working world isstressful, because you have to build relations with coworkers all over again. That’s why I was so happy that I
could return to my old workplace. Also, being able tochoose my working hours was really
wonderful, because I could
continue to work without placing aburden on my children, and asking
my parents to look after them wasn’t
an option for me.
Atsumi Hato
Toyooka Customer Center
Toyooka Sales Office37

Kansai Electric Power Group CSR Report 2008

Promotion of the employment of people withdisabilities
Our efforts to employ the disabled are ongoing. For example, in
1993 we established Kanden L-Heart, a special affiliatecompany where we have actively employed disabled people
for many years. Our employment rate for disabled people was
2.11% in June 2008,
continuing to exceed the ■ Change in the rate of employment
of disabled people
legally required employment(%)
rate of 1.8%. In the future, 2.20
with the goal of increasing
2.11
their independence and
2.05
2.08
participation in society, we
2.03
will do everything we can to
1.94
1.98
promote the employment of 1.90
1.92
people with disabilities.
003/6 04/6 05/6 06/6 07/6 08/6

(Year/Month)

Shor ter wor
Shorterw
work
orkk hours
Through the end of the fiscal year in which
the child reaches three years of age

V O I C E

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.

f-Staff system
Approximately 20 employees are presently participating in our
f-Staff system, which reemploys women who resigned their jobs
with Kansai Electric Power to give birth or to raise theirchildren. Based on work performance, f-Staff members may
eventually be hired as full-time employees, if they so desire. In
April 2008 two f-Staff members were rehired as full-time
employees. The system was expanded in fiscal 2008, toprovide for the reemployment of employees who resigned toprovide nursing care to family members.

after the age of 60 under the e-Staff system. It enables older
employees to continue to use their knowledge and experiencein their familiar workplaces.

Promotion of hiring in compliance with the
Equal Employment Opportunity Law
In accordance with the letter and spirit of the 1986 enactmentof the Equal Employment Opportunity Law and the revisions of
the same law in later years, we actively recruit women andconduct personnel deployment with no distinction of gender.
We are placing more women in engineering positions as part ofa broader effort to widen the range of positions in which
women are employed. In positions of responsibility, theCompany evaluates personnel fairly and impartially, basing
decisions on individual ability and appropriateness for eachposition, while avoiding gender-based discrimination. As aresult, the number of women employed at Kansai ElectricPower is steadily rising.
Number of female
employees

Number of female employees
in positions of responsibility

Fiscal 2002

66

61

Fiscal 2007

115

72

Promotion of employment of older people
Efforts to employ the elderly at Kansai Electric Power predate
the implementation of the Law for the Stabilization of
Employment of Older Persons in 2006, which mandates suchmeasures. Our reemployment system for employees retiring at
the age of 60 was introduced in 1996. In 2001 we establishedthe e-Staff system, which greatly expanded the types of work
covered. In 2006, we revised our system to raise themandatory retirement age to 65 in stages and expand further
the range of positions in which older employees are placed.
Today, more than half of our retirees choose to return to work

Kanden L-Heart now employs 98
disabled people
When I was a baby I was diagnosed with cataracts. When I
was one year old, cancer was discovered in one of mykidneys. A third of my other kidney was removed. When I
graduated from the school for the visually impaired, I waswarned that few workplaces would accept me. But I didn’t
want to live in nursing care—to the best of my ability, I
wanted to work. I obtained national certification as amassage therapist. Fortunately, soon after that I discovered
Kanden L-Heart.
I’ll never forget how, when I finished my first massage
and my customer said “thank you,” I felt fulfilled as neverbefore. For the first time I understood the joy, theexcitement of working. This is only my second year here at
Kanden L-Heart, but I still treasure every encounter with acustomer. I’m determined to
become the best massage
therapist I can possibly be.

Madoka Sato

Appropriate management of work hours
Through the entire work cycle from hiring to retirement, we
endeavor to monitor the work hours of employees and tocomply with the applicable laws by, for example, encouraging
employees working long hours to meet with and receive
guidance from industrial physicians. At Kansai Electric Power,
we also require employees who work overtime to receive
instructions from management beforehand and to self-report
the hours worked. In addition to having management personnel
check the reported overtime hours, we aim to instill anawareness in all employees of the need for appropriate
management of work hours.

Maintenance of stable labor and management
relationsKansai Electric Power has concluded union shop agreementswith 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 a strong relationship of trust. In order tomaintain this good relationship, we will hold operationconfabulations about company management plans and othertopics among other efforts to promote mutual understanding
and agreement between labor and management.
■ Main opportunities for communication between labor and management● Operation confabulations

The Company fosters an exchange of views between laborand management regarding the Company’s management
plans and other issues (annual basis).
● Operation discussions

The Company conducts discussions between labor andmanagement regarding reorganization and other importantmatters (occasional basis).

Enhancement of personnel vitalization systems
Our employees are the driving force behind the future growthof the Kansai Electric Power Group; with this in mind, we are
actively introducing a variety of systems. In fiscal 2007 we
continued our effort toward improving training for different
specialized fields and stages of capability, following the key
policy of “implementation of training to support reliable
execution of work tasks, with safety as the top priority.” In
addition, we have increased the coverage of our Challenge
Training courses, which employees can attend on their days
off. The response has been enthusiastic, with 5,101
participating in the 158 courses offered.
To promote communication among employees and vitalize
the workplace, we also enhanced our welfare programs.

Kanden L-Heart Co., Inc.

Diverse working time systems
In order to support flexible lifestyles, we are operating existingworking hour and time-off systems adaptably through theRefresh Time-off and Flexible Time-off long-term time-off
systems, and promoting work efficiency through the Selective
Working Hours and Flextime Working Hours systems.

Supporting a dynamic
and enthusiastic
workplace
From October 2007, Kansai
Electric Power has provided
support for special events at
the workplace as well as sports
and other team activities.

Workplace recreation(softball tournament)

Kansai Electric Power Group CSR Report 200838

Highly Transparent and Open Business Activities

5

Communicating with stakeholders
The Kansai Electric Power Group actively works to create opportunities for canvassing the views of customers and forconveying our ideas and concerns to customers. We make extensive use of a variety of publicity media, including print
publications and the Internet.

A multifaceted dialogue with customers

Communication efforts at Company facilities

Providing information through print publications

Promoting better understanding of nuclear power

The Company actively communicates with local communities at
each Company facility, to enable
them to understand Kansai
Electric
Power’sbusiness
activities and also to enable
customers’ opinions to bereflected in ongoing efforts toimprove its operations.

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.
Examples include Yaku,Watt
a report aimed at opinion Yaku
leaders that probes deeply into timely social issues, and theregularly issued public relations magazine Watt, which features
reports on our business activities in addition to lifestyle
information and regional topics.

Approximately half of the electrical power Kansai ElectricPower delivers to its customers comes from nuclear power
plants in Fukui Prefecture. Nuclear power is a clean,environmentally friendly energy source that generates no CO2.
Nuclear power is not just indispensable for generating theelectrical power on which customers’ modern lives depends,
but also a key element in the promotion of measures to prevent
global warming. Recognizing the need to gain the public’s truston this vital issue, Kansai Electric Power is conducting
activities on several fronts to deepen people’s understanding of
nuclear power.
● Observation tours of nuclear power facilities

To foster a deeper understanding of nuclear power among its
customers, the Company invites the general public to visit the areas
where power is generated to tour nuclear power stations and otherfacilities related to nuclear power. In fiscal 2007 some 31,000 people
participated in these tours. For further details on tours of nuclear power
facilities, please inquire at any Kansai Electric Power sales office.

Communication with people in each
community

Communication via the Internet
In the interest of rapid and accurate disclosure, we present on
our Web site the contents of press conferences, messages
from Kansai Electric Power, and various other information. In
addition, Kanden e-Patio, an Internet club (with approximately
35,000 members) we launched in 2002, provides information
through an e-mail magazine and its own Web site. We havealso established an e-mail inquiry desk and are actively
advancing two-way communication with all our stakeholders.

● Dialogue between energy-producing and energy-consuming regions

The Company offers an array of interactive events in which children andyoung people from energy-producing regions and energy-consuming
regions can tour a nuclear power station together. These events provide
opportunities to learn not only about power generation but also about
each others’ communities.
We also offer interactive discussions between primary schools inenergy-producing regions and those in energy-consuming regions.
Linked by live video stream over the Internet, the students exchange
opinions and ideas about environmental issues, energy and other matters.

Kansai Electric Power Web site

Interactive exchange event for the younger
generation

We receive a variety of views and requests regarding ourbusiness activities in the course of our day-to-day work andwhen we encounter members of the community. Our “Dambono-Koe” feedback system is designed to ensure that every oneof these valuable opinions can be used to help improve theoperations of Kansai Electric Power. Customer views collected
through Dambo-no-Koe are conveyed to the management atour business locations and also shared throughout the entire
company, including top management. We sort these opinions
according to content and utilize them to the fullest.

Providing information to media agencies
Information about Kansai Electric Power on television and innewspapers greatly influences customer understanding of ourbusiness and our corporate image.
Kansai Electric Power actively provides information to
media agencies, including regular press conferences with thecompany President. In addition, we respond swiftly andappropriately to reporting requests from media agencies, anddisclose and communicate accurate information.

Kanden e-Patio

Observation tour at the Nuclear Energy
Training Center

Sharing insights from customers throughout the GroupWeb Kansai Electric Powerhttp://www.kepco.co.jp/english/index.html

Kanden e-Patio

http://www.fururu.net/e-patio/

Mobile classrooms for the younger generation

Communication through round-table discussions

Our future is in the hands of the children who form the next
generation. One of our most vital missions at Kansai ElectricPower is to impart to the younger generation a sense of what
energy is and why it is so important.
The “mobile classroom” explains the basics of how energy
is produced and transmitted over distances, as well as how it isused and what we can do to conserve energy and protect theenvironment. The “classroom” consists of a series of fun,interactive demonstrations: for example, children operate a
hand-turned generator to light a light bulb, or conduct
experiments to explore ways of reducing global warming.
These
demonstrations
provide children withentertaining explanationsof how CO2 contributes toglobal warming and therole energy plays in ourworld.

To create opportunities to listen directly to the opinions ofpeople in the region, in March 2008 Kansai Electric Powerinvited members of its online members’ club, e-Patio, to takepart in round-table discussions concerning environmental
issues.
The Company is proud of its continuing series ofcommunication activities, as it strives to gather a wide range of
opinions from the communities it serves and align its
perspective with that of its customers.

Promoting communication within thecompany
We promote active communication within the Company toencourage sharing and understanding of business information,and to enable employees and management to work together asa team.
We provide time-sensitive information via our in-houseportal site and publish a monthly in-house newspaper, Kansai
Electric Power News. In keeping withthe goal of reliably conveying businessinformation to each of our employees,
especially important information, we
sometimes publish special issues and39

Kansai Electric Power Group CSR Report 2008

Providing information to shareholders andinvestors
Kansai Electric Power discloses information to its investors
impartially and swiftly. We provide information to ourinstitutional investors, individual investors, public groups and awide range of otherinvestors in Japanand overseas throughthe Kansai ElectricPower Web site andvarious other means.
Company explanatory meeting
about FY 2007 (convened
October 31, 2007)

Company explanatory meetings and visits to investors
We periodically have company explanatory meetings headedby the President, as well as visits to investors in Japan andabroad by the President and corporate officers. Through thesemeetings, corporate managers promote active, two-way
communication with investors.

Disclosure through investor relations tools
We create pamphlets that we also make available as
downloads from our web site to provide our shareholders andinvestors with an overview of Kansai Electric Power businessactivities, our management targets, financial data and otherinformation.

Kansai Electric Power News

Fact Book

Kanden-dayori(shareholder newsletter)

Annual Report
In-house portal site

Mobile classroom using experimental equipment
to simulate global warming

include explanatory matter as summaries in the monthly issues.
We also administer questionnaires after issues appear and use
this feedback to implement changes as needed in order tomake the newspaper more useful to our employees. In cases
where the management wishes to convey its thoughts toemployees in a direct, visual manner, we broadcast messages
using our in-house television system.
In fiscal 2007 Kansai Electric Power published the firstissue of Wakasa, a magazine for communication with
employees working in the nuclear
operations area of the Company andits affiliates. By sharing information
on nuclear-related topics, thepublication aims to build a dynamic
and motivated nuclear-powergeneration workplace with a strong
sense of teamwork and a wellentrenched, safety-first mentality.
WakasaDiscussion with Kanden e-Patio members

Web IR information for shareholders and other investors:
http://www.kepco.co.jp/english/ir/index.html

Kansai Electric Power Group CSR Report 200840

Strict Enforcement of Compliance

6Consciousness raising and autonomous efforts in individual workplaces
In fiscal 2007 we continued to promote autonomous efforts in every workplace, mostly led by compliance promotion staff
appointed at each location. In addition, our Compliance Committee Secretariat strengthened support for frontline workers
through dialogue, training and other activities.

System for Promoting Compliance

Shared awareness of compliance risk at all workplaces

Promotion of dialogue with frontline workplaces

In November 2002, the Company established the Kansai
Electric Power Compliance Committee to reinforce the strong
public confidence the Company already enjoys and promote a
corporate culture of frank and open dialogue. In February
2003, this Committee prepared a Compliance Manual, which is
distributed to all employees. This Manual explains instraightforward language the minimum standard of conduct
expected of all employees in the execution of their duties, fromthe perspectives of the law, business ethics and internal
Company rules.
At the same time as the Compliance Manual was being
produced, Kansai Electric Power established Compliance
Consultation Desks to serve as resources for employees who
have concerns about compliance. These desks are located bothin-house (Office of General Administration (Legal Affairs)) andoutside the Company (legal offices), and have started to accept
a wide range of consultations. From 2005, the Company
expanded access to these desks for consultations to include theKansai Electric Power Group as a whole, and they now also
handle issues faced by our Group companies.
From April 1, 2006, in tandem with the enforcement of the
Whistleblower Protection Act, the Company has informed
employees of business partners of the role of the Compliance
Consultation Desks, and has been collecting risk information
extensively from such personnel as well.

With the objective of fostering a shared recognition of
workplace compliance risks, in fiscal 2007 compliancepromotion staff led brainstorming sessions at each workplace
regarding latent risks in their operations. These exercises were
followed by extensive discussions.
In fiscal 2008, the Company will raise awareness to newlevels regarding compliance risk in numerous fields of real
operations, drawing on results from the previous fiscal year as
feedback.

Staff from our Compliance Committee Secretariat (Legal
Department) visit our frontline workplaces for dialogue andtraining. In fiscal 2007 such visits covered all 90 of our frontline
workplaces, including our sales offices, operation andmaintenance offices, and power stations. Participation was
widened to include not only compliance promotion staff, butalso unit leaders and senior persons in charge (number ofparticipants: 1,256).

Raising consciousness at frontline workplaces

Dialogue and training activities with frontline
workers
In fiscal 2007, compliance promotion staff dedicatedthemselves to raising consciousness of compliance in theworkplace. At the same time, the Compliance Committee
Secretariat (Legal Department) focused on direct dialogue andtraining activities with frontline workers. Both of these efforts
served to support independent and practical complianceactivities at each workplace.

■ Kansai Electric Power Group Consultation Desks
ReportingConsultation

Reporting

Reporters(Group company employees)(outside lawyer desks)(Kansai Electric Power desks)(Office of General Administration(Legal Affairs))

Discussion and training activities

Report of results
Legal offices
Communication of
consultation details

For consultation on Group companies• Communication of consultation details• Appropriate cooperation and support for investigations and handling

Report ofresults

Factualinvestigation at eachcompany and creation
Each Group company’s compliance of countermeasurescommittee or responsible executives

Each Group company’s
compliance secretariat

To promote independently motivated compliance activities at
each workplace, the head of each workplace, department orsection is designated as its compliance promotion officer.
Compliance promotion staff are then appointed for each
workplace (equivalent to a section head) to carry out
grassroots compliance activities.

Compliance promotion activities at each
workplace
Training based on workplace examples
Awareness-raising training (example-based training) is carriedout at each workplace using specific examples of compliancerisk in that workplace. In fiscal 2007, our Compliance
Committee Secretariat (Legal Department) compiled 33
examples and published them as the Collection of New
Compliance Case Studies. These examples are helpful inconsciousness-raising efforts at Company workplaces.

41

Kansai Electric Power Group CSR Report 2008

A sure grasp of legal procedures
Inadequacies in our performance of legal procedures,
including failure to submit the required reports andapplications, came to light at some of our power stations infiscal 2006. In response, in fiscal 2007 we took measures toprevent the recurrence of these omissions. We reviewed theLegal Procedure Checklists, a list of legal procedures
produced at each department and section, to ensure that theCompany’s operations follow the letter and spirit of the law.
We will vigorously promote these efforts at each
workplace. We will also work to collect and manage the latest
information on revisions to applicable laws and to accurately
track the execution of required filings, submissions and otherlegal procedures in our business activities.

Tools for raising awareness of complianceissuesConsultation

Kansai Electric Power Group
Consultation Desks

Kansai Electric Power Group
Consultation Desks
Kansai Electric Power
Consultation Secretariat

In dialogue and training activities with frontline workplaces infiscal 2007, the Company explained a number of issues,
drawing on examples from the Company’s own operations andfrom incidents at other companies that are currently in the
public eye. We explained and underscored the importance ofcompliance as a form of risk management, socially accepted
standards as criteria for action, the dangers of concealment
and falsification, and the role of managers in promotional
activities.
The Company also used these activities to canvass
employees on their opinions and hopes regarding complianceactivities. In addition, to ensure that employees are fully awareof the activities and role of the Compliance Consultation Desks,
we circulated information about the Desks, their operations andwhy they matter to employees. In October 2007 a PR leaflet on
the Compliance Consultation Desks was distributed to every
employee in the Kansai Electric Power Group.

Electric Power Trade, a collaboration between the Fair Trading
Committee and METI. In June 2006 we revised this manual toreflect revisions to the Electricity Enterprises Law andguidelines issued by METI.
From September to November 2007, we held AntiMonopoly Law training sessions, as we do every year, at ourhead office and branches, in order to deepen understanding of
this topic among our employees.
As part of our efforts to ensure thorough compliance, inthe years ahead we will continue these training sessions withthe aim of instilling in our employees a correct understandingof the intent and content of the Anti-Monopoly Law that will bereflected in their work.

V O I C E
Creating a workplace where we can all
talk openly and work together as a team
When the “activities to develop a shared awareness ofcompliance risk at each workplace” were carried out where
I work, everyone joined in the discussion, and we set towork on activities focused on preventing risk fromoccurring. As a result, we all gained a firmly rooted ideathat risk could not be hidden or ignored, and that none ofus could understand its full extent on our own. We resolved
to discuss compliance issues openly and address them asa team, with the participation of all members.
For me, compliance activities are not just a
psychological exercise. They are the execution of a dutywith real practical implications in step with the changing
times and common social awareness. I’m determined to do
my part to ensure that where I work,
everyone feels they can speak theirmind at any time, and that we’re allin this together.

Tetsuta Nishikawa
Manager, Planning Section,
Kainan Power Station

PR leaflet about the Compliance Consultation Desks

Follow-up on earlier discussion and training activities withfrontline employees
To reduce the sense of distance between senior management
and frontline workplaces, and to improve and build on
employees’ awareness of compliance issues, Kansai ElectricPower will expand its program of direct visits to frontline
workplaces for dialogue and training activities in fiscal 2008.
In addition to promoting general understanding ofcompliance matters, compliance officers probed deeply into
potential sources of legal and other risk in individual sections
and departments, in a bid to enhance employees’ recognitionof compliance issues still further.

In March 2008, the Company launched an e-Learning course
entitled “Compliance: What You Need to Know in 2008.” Using
specific examples, this course outlines the approach tocompliance needed to ensure prudent risk management. The
course is available to all employees of all Kansai Electric PowerGroup companies, providing the entire Group with a thoroughgrounding in understanding compliance.
From January 2007, Kansai Electric Power have madeavailable on the Company Intranet a “Column on Current
Affairs in Compliance,” discussing specific incidents and otherrelated matters in the news today. The Company uses thesetimely updates in morning assemblies, meetings and otheroccasions as tools to promote understanding of and raise
consciousness of compliance. In fiscal 2008, topics will be
introduced relating compliance issues to current trends insociety, further supporting this consciousness-raising process.

Compliance with the Anti-Monopoly Law
The Company produces and distributes a number of
explanatory texts to raise awareness of the Anti-Monopoly Law
and its implications. In 1996 we issued the first version of our
Anti-Monopoly Law Observance Manual. Later, we produced
and released the explanatory text of the Guidelines for Proper

Compliance: What You Need to Know in 2008

Kansai Electric Power Group CSR Report 200842

Kansai Electric Power GroupCSR Report 2008

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
We have undergone inspections by a third-party organization
to provide assurance of the objective reliability of theenvironmental information provided in this report. As a resultof these inspections and fulfilling the Environmental Report
Inspection Registration Mark Allowance Standards of theJapanese Association of Assurance Organizations forsustainability Information (http://www.j-sus.org/), we areallowed to use the mark on the left.

This document was printed using
environmentally friendly soy ink.

K08J0006