Environmental Report 2004

The kansai Electric Power Co., Inc.

Overview of Kansai ElectricCompany name

The Kansai Electric Power Company, Incorporated

System capacity(As of March 31, 2004)

Headquarters

3-3-22 Nakanoshima, Kita-ku, Osaka, 530-8270
TEL: 06-6441-8821
http://www.kepco.co.jp/

Hydropower
23%
8.149 M kW

Date of establishment May 1, 1951
CapitalThermal49%
16.907M kW·489.32 billion (as of March 31, 2003)

Chairman of the Board of Directors Yoshihisa Akiyama
President and Director Yohsaku Fuji
Main business

Nuclear28%
9.768M kW

Electric power industry

Kansai Electric s service area: Osaka Prefecture, Kyoto Prefecture, excluded in Hyogo Prefecture,
Nara Prefecture, Shiga Prefecture, Wakayama Prefecture, Mie Prefecture,and portions of Gifu Prefecture and Fukui Prefecture

Generated power supply(fiscal 2003)

Number of group companies 85 affiliates(as of March 31, 2004)
1 time sharing system company
Number of employees 33,935 (consolidated), 21,031 (single)

from other companies
24%
36.161B kWh(as of end of fiscal 2003)

Annual power sales 140,246 million kWh

Nuclear50%
76.468B kWh(fiscal 2003)

Sales figures·2,540,156 million (consolidated), ·2,375,239 million (single)(fiscal 2003)

Current profit·187,380 million (consolidated), ·188,833 million (single)

Hydropower
12%18.539B kWh(fiscal 2003)

Current term net profit ·90,111 million (consolidated), ·118,448 million (single)(fiscal 2003)

Gross assets

Thermal
14%
21.947B kWh·7,150,826 million (consolidated), ·6,540,844 million (single)(as of end of fiscal 2003)

Otozawa
Kurobegawa No. 4

System map

Johana(as of March 31, 2004)

Shimokotori

LegendMiboroHydropower station
Thermal power station (Mihamaincluding under construction)

Nuclear power station

Maizuru

Substation

ReinanTakahama
Ohi
Seki

Switching station
Shin-Ayabe

Converter station
500 kV transmission line

Okawachi187-275 kV transmission line

YamazakiKeihokuNose

Tie point with other power companies
Kansai Electric s service area

SeibanHimeji No. 1
Ako

Aioi

Maruyama

Okutataragi
Okutataragi

Inagawa Kita
Hokusetsu
Osaka

Nishi Kyoto
Kisenyama
Yodogawa
Minami Kyoto

Higashiomi

Shin-ikoma

Himeji No. 2
Nanko
Sakaiko

Shiki

Higashi Yamato

Tanagawa No. 2
SeidanKinokawa
KainanKihokutrren Gobo
t cu
c
e
dir e
kV ion lin Gobo50
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Okuyoshino

Editing Policy
This report concerns socioeconomic efforts,
primarily those involving the environment, to haveall stakeholders, beginning with our customers,
support the Kansai Electric Group.
When preparing the report, we referred to“Sustainability Report Guidelines” (2002 version)of the Global Reporting Initiative (GRI) and“Environmental Report Guidelines” (2003 version)of the Ministry of the Environment.
Concerning the report, we obtained the opinion ofa third party, Professor Takashi Gunjima of theFaculty of Economics at Doshisha University.
Concerning the group’s efforts with theenvironment, the report contains the opinion of
Takeo Inoue, Directors for NPO E-Being.
The report also contains the contents of theconversation between the president Kansai Electric
and Toshihiko Goto, Board of Directors for GRI.
When listing the companies of the Kansai ElectricGroup in this report, the name prior to
restructuring was used (see page 81).

Scope of Report*The report applies to the period from April 1, 2003
through March 31, 2004. Important matters up
until the report is published are contained herein(as much as possible).
*Applicable scope: Kansai Electric Power Co., Inc.
and Kansai Electric Group companies*Applicable fields: Environmental, Social, Economical

Publishing Period
Published November 2004.
The 2003 version was published in July 2003.
The 2005 version is scheduled to be published about summer of 2005.

Contents
Overview of Kansai ElectricContents and Editing Policy
MessageFeatureManagement Vision of the Kansai Electric GroupCSR Action Charter of the Kansai Electric Group

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2
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5
11
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I Providing Safe and Reliable Products and Services
Mission/Responsibility for Stable Supply
Safe/Stable Operation for Nuclear Power Generation
Aiming to Enhance Customer Service

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14
15

II Addressing Global Environmental Problems
Environmental Policy
Conceptual View of Our Environmental Load
Targets and Performance
Environmental Management
Addressing Global Environmental Problems (New ERA Strategy)
Efficiency … Efforts to Increase Energy Efficiency by Society as a Whole
Reduction … Reducing Greenhouse Gas Emissions in Power Supply
Activities Abroad … Activities Carried Out Abroad to Prevent Global Warming
Addressing Local Environmental Problems
Promoting Business Activities Suitable for a Recycle-Oriented Society
Environmental Communication
Developing the Eco-Business

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25
27
31
35
39
43
49
53

III Positive Contributions to Development of Local Communities
Contributing to Society as a Corporate Citizen

55

IV Respect for Human Rights and Building a Pleasant Working Environment
Respect for Human Rights
Safety and Sanitation Activities
Equal Opportunity Employment and Employee-friendly Workplace

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58
59

V Transparent, Open Business Activities
Corporate Governance
Plenty of Opportunities to Communicate with Customers

61
62

Reference

VI Thorough Compliance

Concerning the report prepared by the Kansai ElectricGroup, please use the following tools as well:

Establishing the system promoting compliance

65

Third Party’s Comment
Interview
Data
Comparison between Guidelines
Index
Group Companies
Questionnaire
Main Workplaces

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71
79
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81
82
84

*Online version of the Environmental Report 2004
(Can be accessed from Kansai Electric’s Web site)*English version of the Environmental Report 2004
(Scheduled to be published around December 2004)*Kanden Environmental Report 2004
(Scheduled to be published around November 2004)

2

MessageThis past August 9, there was a very serious accident at Unit 3 of our Mihama Power
Station that cost the lives of five persons and left six gravely injured. I humbly
apologize to those who suffered, the bereaved and their families, as well as Kiuchi
Instrumentation Co., Ltd. which is where the men worked. I also want to apologize tothe people of the local community and elsewhere for the worrying and trouble wecaused you.
We fully understand that the path to regaining public trust is a very difficult one,nevertheless all directors and our entire workforce will make every effort to do so under
the firm resolution to prevent this kind of accident from ever happening again.
We have always recognized that fulfilling our social commitment as an energy utility ofstrong public nature is our duty and have long conducted business activities
accordingly. Nevertheless, the fact that this accident occurred and we lost the public’s
trust because of it shows that our activities and schemes are not yet sufficient enoughand we need to reexamine ourselves carefully.
We will steadfast fulfill our social commitments as a company by returning to our
origins and executing fundamental operations that assuredly, safely and stably deliverelectricity products and services. We will take compliance to new depths as a pretext toall activities, promote better communication with society and make our businessactivities highly transparent.
With regards to environmental problems, we have long been aware of our
responsibilities as an energy utility because of the strong relation to the environmentthat this business has. We have made the environment an important management
issue and have come together as the Kansai Electric Group to develop activities. We
will be putting even more effort into this area of activity in the future.

3

One particular area of activity in this regards has been to address global warming,
which, in recent years, has been looked at closely as a national problem. We are
aggressively working to reduce emissions of greenhouse gases in each the electricity
production, transmission and usage stages in order to support an affluent way of lifeand contribute to the sustainable development of society at the same time. We are also
deeply involved with the diffusion of alternative energy sources such as solar power
and wind power. Not only are we dealing with global warming through out New ERA
Strategy but we also have mid to long-range activities aimed at physically reducing
industrial waste destined for landfill disposal in order to help bring about a recycleoriented society, as well as constructive activities to help protect local environments
where we have operations.
This Environmental Report introduces the environmental protection activities of ourentire group. It additionally details a broad range of activities that concern our social
commitments in non-environmental areas and there is a special section that explains
the secondary pipe rupture at the Mihama Power Station’s Unit 3 and our failure toreport periodic checks at improper treatment of periodic inspections at thermal power
stations.
We will continue to read the demands of the times before they materialize and takevoluntary concrete steps to protect the environment, amongst which includes
preventing global warming. In the future, we also will provide a wide range of
information about all of our business activities. I would like everyone to read this reportand provide us with their frank opinions, reprimands and advice on the activities of the
Kansai Electric Group.

President and Director
Kansai Electric Power Co., Inc.

4

Feature

Concerning the incident involving ruptured secondary pipe
at Mihama Power Station’s Unit 3
We would like to take this opportunity to offer our sincerest apology for the tragic accident at our
Mihama Power Station’s Unit 3 whereby 11 people were killed or seriously injured.
We offer our prayers for those who died, and we sincerely wish those who were injured a speedy
recovery. We are also determined to do all we can for the bereaved families, those who sufferedinjuries and their families, as well as Kiuchi Instruments Co., Ltd., the company for which the victims
worked.
We would also like to take time to listen to the people of the local community who wereinconvenienced by the accident. We will do all we can to remedy the situation.
The contents of this document are current as of October 28, 2004. For the latest information, please visit the Press
Release section of our Web Site.

■Background■Condition

An accident in which secondary piping (*2) in the turbine building(*1) at the Mihama Power Station’s Unit 3 (pressurized water lightwater reactor, rated electric output 826,000 kW) ruptured while thepower station was in operation on August 9, 2004.
The accident occurred at 3:22 pm. The alarm was immediately
sounded and emergency output power cutback was implemented at
3:26 pm. The reactor automatically shut down at 3:28 pm.
Because the accident involved rupturing of secondary piping and thenuclear reactor was safely shut down, there was no leakage ofradiation to the surrounding environment.

This accident was caused by rupturing of condensate piping (*1)
near the ceiling of the second floor of the turbine room at theMihama Power Station’s Unit 3. When the pipes ruptured, hot water(140˚C) pressurized to approximately 9 atmospheres turned to
steam, which sprayed out and filled the building. At the time, there
were 105 employees of Kansai Electric and cooperating companies
in the building to prepare for the 21st periodic inspection (*2) to be
implemented August 14. Eleven of them were rushed to the hospital.
Five died of their injuries and 6 suffered serious injury.

*1: Building containing equipment such as pumps, piping and steam condenser which returns steam towater after it is used to turn the turbine and sends the water to a steam generator.
*2: All commercial nuclear reactors currently in operation in Japan are “light-water reactors.” Light-water
reactors produce electricity by means of turbines powered by steam produced by heating ordinary water(light water) by nuclear fission of uranium. There are two types of light-water reactors: boiling water
reactors, or BWR, and pressurized water reactors, or PWR. BWRs produce electricity by directly routing
steam produced in the nuclear reactor to the turbine, whereas PWRs feature water separately flowing
through the nuclear reactor and steam (water) that drives the turbine generator. With PWR, the water
system that carries water that flows through the nuclear reactor is called the “primary” system, and thesystem that carries steam (water) that drives the turbine generator is called the “secondary system.”

Mihama Power Station*1: Piping that runs from the condenser to the air purge in the system whereby steam used to drive theturbine generator is returned to its liquid state by cooling, and the water is reheated and returned to thesteam generator.
*2: Inspection carried out once each 13 months in accordance with the Electric Utility Law. Equipment andfacilities are inspected to maintain safety, prevent trouble and ensure safe operation of power stations.

■Condition of Ruptured Piping
A large rupture 55 mm wide in the axial direction was found at thedownstream section of the orifice (*) of the condensate piping. At
the time of the accident, the pipes were carrying approximately 885
tons of water in the form of steam.
The thickness of the walls of the piping was 10 mm (nominal) when
the plant began operating in 1976. Design called for pipes to be atleast 4.7 mm thick. The thickness
where the walls peeled back due tothe force of escaping steam at thesite of the rupture was 0.4 mm at
the thinnest spot.
*Provided to reduce cross-section of the pipe formeasuring the amount of flow due to difference inpressure, the orifice is a stainless steel disk with adonut-shaped opening.

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Site of condensate piping ruptureLayout of Mihama No. 3 power station and location of condensate piping rupture (system diagram)
Nuclear reactor containment vessel
Steam

Pressurizer
Steam
Control rod

Low pressure turbine

Secondary system

Generator
Circulation pump

Water
High pressure turbine
Steam generator

Water

High pressure water supply heater

Vacuum deaerator

Primary system
Water

Nuclear reactor
containment vessel

Cooling materialpump

To water supply pump
A: Location of condensate
piping rupture

SeawaterCondensate pump
OutletWater
Fuel

Condenser

SeawaterCondensate
demineralizer

Grand steam
Condensate piping
condenser
Outer diameter: 560 mm
No. 1
Thickness: 10 mm
No. 2
Max. internal pressure: 1.27 MPa
No. 3Max. temp: 195˚C
No. 4
Material: Carbon steel
Low pressure water supply heater
Liquid volume: 1600 t/h per loop

Inspection of secondary system piping using
ultrasonic measurement■Cause of Rupture■Inspection of Secondary System Piping at All Nuclear Power Stations

According to the intermediate summary of the government accident
investigation committee of September 27, the cause of the ruptureappeared to be tendency of the pipe wall to erode and become thinnerat the downstream section of the orifice of the condensate piping.
Observation of the inner surface of the piping uncovered a shiny
scale-shaped pattern that is indicative of “erosion corrosion” (*), a
phenomenon whereby the thickness of the pipe walls is eroded bymutual interaction of corrosion due to mechanical and chemical effect.
The committee therefore surmised that the rupture was caused by
gradually reduction of the pipe wall thickness due to erosion corrosion
along with operation, which caused the pipes not to be strong enoughto withstand the internal pressure, resulting in rupture.

Kansai Electric has systematically shut down nuclear power stations
one at a time since August 13, and has conducted ultrasonicmeasurement (*) of pipe wall thickness at sites similar to the one
where the rupture occurred in the presence of representatives fromnational, prefectural and local governments to confirm thesoundness of the pipes.
*Test where the object is penetrated by ultrasonic waves from the surface to the interior of the metal. The
ultrasonic waves that bounce back are detected and distance (thickness) is measured from the time.

Operation status of and inspection of plants at the various power
stations are as follows:*Phenomenon whereby pipe wall thickness erodes due to chemical corrosion and corrosion inside thepipes caused by repeated impact of flowing liquid.

Mihama Power Station■Management of Wall Thickness of Secondary System Piping
Kansai Electric has systematically measured thickness of pipe walls
in accordance with “Guidelines for management of wall thickness of
secondary system piping in nuclear power stations (PWR) (*)”
established in 1990. Systematically measuring and managing wall
thickness of the part of the piping that ruptured comes under theguidelines, but it was not registered as a place requiring
measurement and was consequently not measured in the past.
Kansai Electric was instructed by the Nuclear and Industrial Safety
Agency to conduct a survey of approximately 43,000 spots otherthan the location of the rupture where pipe wall thickness may nothave been properly inspected. On August 18, the company presented
the Ministry of Economy, Trade and Industry with the “Report oninvestigation of inspections concerning corrosion erosion” that
contained the results of the study.
The study revealed that in addition to the sites where the accident
occurred (2 sites in systems A and B), a total of 15 sites failed to beregistered on the inspection list.
*Compiled jointly by power companies since 1990 in light of the accident at the Takahama Power
Station’s Unit 2 involving leakage from pipes in the secondary system in 1983, the guidelines involve
voluntary inspection of piping in pressurized water reactors (PWR). The guidelines call for establishing aplan for the next inspection based on the results of pipe wall thickness measurements, establishing a plan
for replacement if the pipe life has less than 2 years remaining, and replacing the pipes with corrosionresistant materials.

Replacement or repair was conducted for place (main water supply pipe) at Mihama
Unit 1 and 2 places (high pressure discharge pipe and main water supply pipe) at
Mihama Unit 2. All piping other than these 3 places was confirmed by the company
to be sound.
Mihama Power Station’s Unit 3 is currently shut down due to the accident.

Takahama Power Station
The soundness of the piping at the Takahama Power Station’s Unit 1, Unit 2 and Unit
3 was confirmed by the national government as well as the local town governmentand government of Fukui Prefecture. The Unit 1 station began operating September
21, the Unit 2 began September 5 and the Unit 3 began September 13.
The soundness of the piping at the Takahama Power Station’s Unit 4 was confirmedby the national government as well as the local town government and government of
Fukui Prefecture by inspections that started August 10, 2004. Adjustment operation
has been carried out since October 28.

Ohi Power Station
Based on the results of replacement/repair work conducted at one place (Unit 4 lowpressure water supply heater drain pipe) at the Ohi Power Station’s Unit 1,
soundness of the piping was confirmed by the national government as well as the
local town government and government of Fukui Prefecture, and operationcommenced on October 16.
Soundness of the piping at the Ohi Power Station’s Unit 2 and 4 was confirmed by
the national government as well as the local town government and government of
Fukui Prefecture. Operation of Unit 2 commenced on September 22 and Unit 4 on
September 5.
Period inspections have been conducted at Ohi Unit 3 since April 20, 2004. As aresult of measuring thickness of pipe walls, the company confirmed that the pipes atthe power station were sound.

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Feature■Current Measures
Based on this series of circumstances, Kansai Electric decided tovoluntarily manage wall thickness of secondary system pipes. The
measures the company is currently taking to prevent reoccurrence
and restore public trust in the company are as follows:(1) Enhance strength of system●In order for the company president to take the lead in finding out the causeof the accident and take measures to prevent reoccurrence, the president
was made the director of Nuclear Power Business Headquarters.
●Technicians have been stationed in Fukui Prefecture to take care oftechnical matters.
(2) Ensuring worker safety●Access to plants during operation was restricted immediately
following the accident. Fireproof clothing is required in case work
must be performed.
●Soundness of secondary system piping would be checked, andpreparatory work for inspections would not be carried out until theunderstanding of cooperating companies and the local community is
obtained. In the future, after close investigation of priority,
importance and contents of work that had been conducted in
preparation to periodic inspections during operation. Concerning
necessary work, improvements would be planned such as clarifying
restrictions and safety measures. The company would also like toobtain the understanding of cooperating companies and the people oflocal communities.
●From the standpoint of accurately implementing rescue activities for
accident victims, along with revising the in-house route by which
information is conveyed to prevent medical institutions outside theservice area from being exposed to or contaminated by radiation,
introduce a system to keep tabs on name of workers and cooperatingcompanies in the work area so the person in charge of work canconfirm the safety of workers right away, and get an accurate
understanding of what workers are in the area in the event of adisaster.
●Each power station has been instructed to notify all workers in thestation which places are dangerous according to the operation statusof the plant.
(3) Thorough reexamination of management of outside orders for
management of wall thickness for pipes of secondary system
As a sweeping reform, Kansai Electric has decided to take care of all pipe
wall thickness management, with the exception of taking measurements.
As for the time up to when responsibility for management transfers fromcooperating companies to Kansai Electric, the following measures shallbe taken to bolster management of outside orders for the time being:●Based on Kansai Electric s 5-year inspection plan, a cooperatingcompany shall be hired to prepare the plan for periodic inspections.
After checking the inspection plan prepared by the cooperating

7

company, along with hiring the cooperating company to perform theinspections, Kansai Electric shall check inspection results directlyagainst the management guidelines.
●Modifications of secondary system piping accompanying modificationof facilities shall be changed to a mechanism reflected in wall
thickness management for secondary system piping.
●The company has decided to improve the system of having Kansai
Electric personnel monitor wall thickness testing at the site and better
prepare observers.
(4) Fortification of wall thickness management for secondary system piping●Provide reliable pipe wall thickness management and foster awareness of
responsibility for equipment by mounting markers on all inspection locations
important for pipe wall thickness management that clearly indicate who is
responsible for inspection and when the next inspection is to be carried out,
as well as letting worker in the area know the management status.
●Because some qualifications of technical standards interpretations
had been improperly applied for pipe wall thickness management
implemented by Kansai Electric, the company as decided to strictly
adhere to the numerical values indicated by the technical standards.
●Supervisors at the site shall be provided systematic education
concerning the importance of pipe wall thickness management forsecondary systems.
(5) Improvement and advancement of the system of pipe wall
thickness management for secondary systems●In addition to taking back charge of responsibility for pipe wall
thickness management for secondary systems, from the standpoint ofpreventing human error, a 3D skeleton diagram of the piping routeand management chart for inspections shall be linked within
computers, and along with recording details concerning modificationsin the system, the display method shall be enhanced so important
modifications can be clearly recognized.
(6) Switch to direct management of auditing on-site work for periodic inspections●In order to further reinforce the ability of Kansai Electric employees toperform maintenance, the company will study and realize establishmentof a group dedicated to auditing on-site work for periodic inspections.
(7) Lateral spread of information●Concerning the themes involved in pipe wall thickness management atthe various power stations, the company plans to develop a mechanism
for lateral spread of information among all power stations as well aslateral spread of information among power companies in the case where
inspections on the list failed to be conducted such as in this case.
(8) Sharing of information between Kansai Electric and cooperatingcompanies●In order to maintain and improve exchange of information byincreasing exchange of information between Kansai Electric andcooperating companies, the power station supervisor and assistantsupervisor, in addition to existing activities, shall facilitate exchange

of information by providing the opportunity for individual dialog withprime contractors, and by having section managers conduct dialog
with workers of cooperating companies on a daily basis.
(9) Activities for promoting dialog with local communities●Since it is important for power station technicians and so on to listen
directly to how the people of local communities near power stations
feel, the company plans to increase the number of opportunities fortechnicians and so on, as well as the president on down, andmanagement of the main and branch offices to talk with the people oflocal communities near power stations on a regular basis.
The company also intends to implement these measures without delay
and add to them as more facts come to light in the future.

■Themes of the Future(1) Explanation of mechanism by which pipe rupture occurred●Along with confirming occurrence and progress of erosion corrosion at thedownstream section of the orifice, analysis and tests are being conducted
to verify features of wall thickness erosion in the ruptured pipes.
●Behavior of the secondary plant system which actuate automatic
shutdown of the nuclear reactor is to be analyzed.
●A study of how far-reaching the effects of the pipe rupture accident is
to be conducted.
(2) Study of problems involving quality assurance and maintenancemanagement●After the Mihama Power Station s Unit 3 began operating, the section where
the rupture occurred was left off the list of places requiring inspection. In
order to determine why this was not corrected, a study of pipe wall

thickness management for secondary systems shall be conducted at eachstage from establishment of management guidelines to the present fromthe standpoint of quality assurance and maintenance management.
●Based on the actual state of work, stricter outside order management
are to be enforced for repair work other than pipe wall thickness
management for secondary systems as well.
●In order to aim for reliable maintenance work, a nuclear power
maintenance function fortification study committee (vice president
not in charge of nuclear power department appointed as committee
chairman) comprised of concerned Kansai Electric staff and experts
outside the company shall be established, problems with the existing
system of maintenance shall be arranged and a study of restructuringof the system including manufacturers are to be conducted.
(3) Further improvement and enhancement of pipe wall thickness
management for secondary systems●Concerning main places requiring inspection of secondary system piping,plants starting periodic inspection in the future are to change fromconducting inspections before remaining life reaches 2 years to
conduct inspections when remaining life reaches 5 years plus whenremaining life reaches 5 years, continue to perform periodic inspections
each time up until piping is replaced and welding repaired. In order tofurthermore improve and enhance data on erosion of pipe wall thickness,
all places that have not yet been inspected in those sections are to beinspected when periodic inspection are conducted the next three times.
●Reexamination by summarization of actual current measurement data
and reexamination of management guidelines from the standpoint of
whether or not the guidelines act as a manual according to the stateof equipment are to be conducted. Along with making themanagement guidelines more advanced, the company will actively
participate in reexamination of guidelines implemented by academic
societies and associations.

Along with deepening our commitment to restoring public trust, while obtaining the understanding of the nation,
Fukui Prefecture and local people and authorities such as the towns where power stations are located, Kansai Electric
is striving offer stable operation of nuclear power stations with safety as our top priority.
■*Press Release
http://www.kepco.co.jp/pressre/index.html
Provides Kansai Electric press releases. Visit this section to get the latest press releases.

■*Nuclear Power Station Operation Status
http://www.kepco.co.jp/localinfo/live/n_unten/unten_10.htm
Let s you know the operation status of Kansai Electric nuclear power stations in real time.

■Nuclear Power Generation
http://www.kepco.co.jp/gensi/index.html
Provides basic knowledge such as how electricity is generated by nuclear power and information on the various nuclear
power stations.

8Feature

Concerning improper treatment in review of periodic
contractors in thermal power stations
We would like to take this opportunity to offer our sincere apology for betraying the trust of ourcustomers and the public due to improper treatment in reviewing periodic contractors in thermal
power stations and the Kansai International Airport Kansai Energy Center.
Based on the recognition that all our business activities are founded upon the trust of all the people inlocal communities surrounding power stations and the population in general, we declared ourintention to voluntarily fulfill or obligations to society through thorough compliance in March 2004. It
is unfortunate that despite having done so, the following problem occurred.
We intend to do everything in our power to make sure it never happens again and will strive to restore
your trust in us.

■Details and Study Results
When safety management of the Kansai International Airport
Energy Center (hereinafter referred to as the “Kansai Energy
Center”) was examined by the Kansai Bureau of the Ministry of
Economy, Trade and Industry (hereinafter referred to as “METI
Kansai”) (*1), it was pointed out that records of the results ofreviewing periodic contractors were not appropriately kept. METI
Kansai then conducted its own on-the-spot inspection. We were
subsequently instructed by METI Kansai to report the results ofthe study conducted at the Kansai Energy Center to them on May
31. Kansai Electric also conducted a review of periodic
contractors at 10 thermal power stations (*2).
On June 28, we reported results of an additional study of the

Kansai Energy Center and 10 thermal power stations to METI
Kansai, and on October 26, we further reported the results of avoluntary review of 36 periodic contractors who had not yet been
examined, subsequent to implementing safety management
examinations.
As a result of the series of studies, of the approximately 37,300
pages of records subject to examination, there were 101
incidents of noncompliance (see examination results on thefollowing page).

Details
April 15/16

Safety management review by METI Kansai (→Kansai Energy Center)

April 28

Instructed by METI Kansai to collect reports in accordance with Article 106 of the Electric Utility Law.

Results of study of the Kansai Energy Center reported to METI Kansai.

May 31
Instructed by METI Kansai to collect reports in accordance with Article 106 of the Electric Utility Law (additional).

June 28

Results of study of the Kansai Energy Center reported to METI Kansai.
Results of detailed study of the Kansai Energy Center, results of a review of periodic contractors at 10 thermal power stations, results ofstudy of other report items
Instructions from METI Kansai concerning measures for preventing reoccurrence
Voluntary report of study results to METI Kansai

October 26
Results of all reviews of periodic contractors (remaining 36 studies) conducted up to June 2004 since initial safety management review.
(*1) System whereby the Japanese government reviews whether studies of periodic contractors have been properly conducted.
(*2) Periodic inspections of equipment that contactor himself is obligated by law to conduct periodically, provided that autonomy is preserved.

9

Items where recorded measurement
values and management standard
values had been altered75

committee and participation of outside experts such as attorneys
and university professors, plus people involved in fields otherthan thermal power, a committee on voluntary
inspections/examinations at thermal power stations wasestablished and a study was conducted.

Items where a record of tests had
been prepared without actuallyconducting the tests

4■Safety of Equipment

Quality records where the date had
been altered

4

Items here a record of meetings had
been prepared without the meetings
actually taking place

18*Study results*Items not in complianceStudy results

Test
records
QualityrecordQualityrecordsother thantest records

Total

No. ofincidences

Concerning soundness of equipment for which records had notbeen treated properly, it has been confirmed by the investigationthat problems had not occurred due to inspection records orreports of contactors or results of test operation subsequent totesting.

101■Cause and Measures for Preventing Reoccurrence
The main causes of a series non-compliances and measures forpreventing reoccurrence are as follows.

■Study System
When studies were conducted in accordance with instructions of
METI Kansai, along with establishing a committee for studying
periodic contractors at thermal power stations whereby thechairman of the committee is the director of thermal powerbusiness headquarters, in order to preserve transparency andobjectiveness of study method and results, the company
obtained the fair and broad-based opinions of a third party,
university professors who are experts on quality control.
Concerning the voluntary study of 36 applicable studies of
periodic contractors, with the president as chairman of the

In the future we will enhance effectiveness by making our quality
control system more adequate, take thorough measures toprevent reoccurrence such as improved communication among
thermal power stations, and periodically reporting on thesemeasures to management such as the quality and safetycommittee.

Main causes and measures for preventing reoccurrence
Main causes
Problems involving building of quality control system
Insufficient preparation of mechanism for reviewing periodic
contractors

Insufficient management and improper guidance from main
thermal power department
Insufficient internal check function

Problems involving awareness, etc.
Insufficient awareness of responsibility to explain complianceand quality control
Poor flow of ideas in thermal power department

Main measures for preventing reoccurrence
Reconstruction of quality control system
Clarification of operation method and proper establishment of “management
standard values” for each inspection item of the “quality record”
Construction of a mechanism that does not require transcription
Sustained follow up of operation status an reconstruction of quality control
system through guidance of top management of thermal power department
Conduct training seminar on quality control that includes top management of thermal power department
Improve and enhance internal check

Improvement of awareness, etc.
Have entire staff understand the importance of compliance and obligation to explain quality
Provide compliance education
Provide a target box to provide opportunities for power stations to directly
express opinions to top management of thermal power department

10Management Vision of the Kansai Electric Group
Based on “the spirit of modesty” since being founded in 1951,

We have also ranked “fulfilling our social responsibility as a

the Kansai Electric Group has made enhancement of customer

business” as one of the important mainstays of our efforts toservice an important management policy and has strived to earn

realize the goal of our company to be “Number One in Customer

the trust of its customers. Now that the management

Satisfaction.” Earning the trust of the people is the foundation

environment surrounding the group has changed dramatically,

upon which the Kansai Electric Group grows and develops as a

you could say we are facing the “2nd founding period” of thebusiness group that is beneficial to its customers. In order to

Kansai Electric Group. We therefore settled on “Management

solidify this trust, we have adopted the “CSR Action Charter of

Vision of the Kansai Electric Group” in March 2004 to continue tothe Kansai Electric Group” and have declared our intention tochallenge endless self-reform to realize “the image to strive for”

work as a group to carry out our business activities based on six

in the 21st century by once again sharing the customer-oriented

action principles.

spirit of the time when we were founded with the entire group.

Management Vision of the Kansai Electric GroupThe management environment surrounding the group has changed dramatically, but our mission remains
unchanged. Based on the customer-oriented spirit, the Kansai Electric Group wants to continue to be abusiness group that is beneficial to its customers. The group hopes to continue to strive for self-reform
without a pause.

The Kansai Electric Group will continue to adapt to achieve our unchanging mission.

Corporate image the Kansai Electric Group strives for
Corporate The Kansai Electric Group aims to be “Number One in Customer Satisfaction”
image

with energy as the core in the area that serves as the foundation for living.

ActionpolicyThe Kansai Electric Group does its utmost to make the customer happy.

To achieve the corporate image we aim for, he Kansai Electric Group:●Provides the best service possible to satisfy the customer.
●Fulfills its social obligation as a business.
●Has the efforts of each and every employee tied in with pleasing the customer.
●Plans to secure the expected profit to grow as a group.

11

CSR Action Charter of the Kansai Electric Group
Basic philosophy
The business activities of the Kansai Electric Group are supported by the people of local
communities, stockholders and investors, business partners, employees and the rest of society
in general.
In order to earn the trust of all these people, the Kansai Electric Group is founded uponachieving its mission as a business and achieving sustained growth.
Along with fulfilling its obligation to society to be transparent and in compliance with laws andregulations, the Kansai Electric Group wants to earn the trust of all and contribute to sustained
development of society by living up to the expectations of society through out business activities.
Based on this awareness, the Kansai Electric Group plans to fulfill its corporate social
responsibility (CSR) by carrying out all business activities in accordance with the following rules.

CSR action rules
Delivery of safe, stable products and services
As a business that functions as an indispensable lifeline for society, the Kansai Electric Group recognizes it is
supporting the foundation upon which all our customers carry out their daily living activities, and makes surethat customers are provided with safe, stable products and services on a daily basis.

Advanced initiative to solve environmental problems
As an energy company with deep connection to the environment, the Kansai Electric Group recognizes theimpact its business activities have on the environment. Along with working to reduce environmental load of
its own activities, the company aims to be on the highest global level.
The company will also carry out cutting edge initiatives aimed at creating a better environment and will
actively contribute to building a sustainable society.

Positive contribution to growth and development of local communities
As a business with close ties to local areas, the Kansai Electric Group recognizes that its own development is
impossible without development and growth of local communities. Based on this awareness, the Kansai
Electric Group contributes to growth and development of local communities through initiatives to invigorate
the local economy and community.

Respect for human rights and creation of a pleasant workplace
The Kansai Electric Group recognizes “respect for human rights” as an important obligation based oninternational consensus. Concerning all of its business activities, the Kansai Electric Group strives to makethe workplace safe and pleasant for all people.

Transparent, open business activities
Along with properly reflecting the opinion of society into its business activities, the Kansai Electric Group
strives to promote communication with society and conduct business in an open, transparent manner tosecure fair business management and fulfill our obligation to keep the people informed.

Full compliance“Establishment of corporate logic” and “observance of all rules and regulations” are obligations required forliving in society. The Kansai Electric Group has created a system to ensure compliance with rules andregulations and is working to maintain and improve the system.

12

I

Providing Safe andReliable Products and Services

Mission/Responsibility for Stable Supply
In order to provide customers with stable electric power, Kansai Electric takes total responsibility for its products and services fromgeneration to sales. The company is working on a high quality, efficient distribution system that promotes the “best mix” of power sources.

“Best mix” Optimal Combinationof Power Sources
Because Japan is poor in natural resources,
the country has a weak energy structure that
relies on certain forms of energy andimports from overseas. Kansai Electric has
therefore strived to put together the optimal
combination of energy sources by switchingfrom oil to nuclear power or natural gas so
as not to overly depend on certain energy
sources.
Thus, “best mix” means stably andefficiently supplying electric power bymeans of the optimal combination of thesuperior features various methods ofgenerating power such as nuclear power
generation, thermal power generation andhydropower generation, based on
characteristics such as impact on theenvironment, cost and coping with variationin power demand.
With safety as an indispensable prerequisite,
Kansai Electric promotes the best mix,
which is the optimal combination of electric
power sources including thermal,hydropower and pump-up power
generation, which offers low cost, fuelsecurity and superior environmental
characteristics.

TOPICS■Power source makeup proportion
Unit: %

10

9

Ordinary hydropower

13

12

Pump-up24

22

Oil, other

19

LNG

7

12

Coal

26

26

Nuclear

2003

2013

21

0

(Fiscal year)■Power generation makeup proportion
Unit: %

1

11

2 3
15

1

0
9
8

New energy, etc.
Ordinary hydropower
Pump-up
Oil, other

17

LNG

17

Coal

47

NuclearKansai Electric has already succeeded in
fortifying its power distribution facilities
while pursuing low cost for its system of
distributing electric power (transmission,transforming, distribution) efficiently andreliably. As a result, the quality of thecompany’s electricity is among the best in
the world.
Kansai Electric will continue to takemeasures to observe rules and prevent
accidents owing to human error while
maintain trust in its supply of electric powerso that people in the areas supplied by
Kansai Electric will not be inconvenienced.
■Annual power outages per household in
various countries
Unit: Minutes/household

82

13

56

0

2003

2013

73

46

(Fiscal year)

Note 1: Facilities at end of fiscal year and power generation include powerreceived by other companies.
Note 2: Due to rounding off, the total may not add up to 100%.

13
50 Kansai Electric Japan

USA

UK

France*All figures are from fiscal 2000. Figures from foreign countries are adopted
from the current state of the electric power business (Federation of ElectricPower Companies of Japan).

Aiming for Electricity Supply that can Stand up to Earthquakes- Getting over the Great Hanshin Awaji Earthquake

As a designated public institution based on the “Disaster
Countermeasures Basic Law”, Kansai Electric has createdits “Disaster Prevention Work Plan” and is striving toprepare electricity supply facilities that can withstanddisasters. The company is also preparing company rules
and training personnel in preparation of disasters resulting
from typhoons, earthquakes, etc.
The Emergency Disaster Team takes control in the event of
a disaster and works to restore power in coordination withthe administration, police, fire department, etc.
Our power generating facilities were seriously impaired by
the Great Hanshin Awaji Earthquake that struck on January
17, 1995. At that time 2.6 million households lost power. It

13Realization of High-quality
Electric Power Distribution System

took six days to complete emergency transmission. Having
learned a lesson from this, Kansai Electric has established aplan for quick restoration of power by reviewing our first
response system and information communications system.
This will improve the company’s ability to respond swiftly
and accurately in the event of a disaster.
In addition to this, the company is promoting measures todeal with Tokai earthquakes in compliance with the “Large
Scale Earthquake Countermeasures Special Measures Law”
and measures to deal with tidal waves in compliance withthe “Special Measures Law Concerning Promotion ofCountermeasures against Earthquakes Related toTonankai/Nankai Earthquakes.”▲Disaster training▲Electric wiring
restoration

Safe/Stable Operation for Nuclear Power Generation
Based on its quality assurance system that places priority on safety, Kansai Electric is striving for sustained safe and stable
operation for nuclear power generation. The company aims to be a nuclear power energy supplier that has earned trust of all,especially the people living near nuclear power stations.

Ensuring Safety of Nuclear Power
In order to prevent accidents involving
radiation at nuclear power stations, Kansai
Electric is making doubly sure thateverything is secure by taking redundantsafety measures.
In line with the “Law For Measures Against
Nuclear Accidents”, Kansai Electric has
adopted an Accident Response Plan drawn
up through consultation with local
communities that spells out action to takein a nuclear emergency. The plan isreexamined each year to make adjustment
or improve on what could be done in theevent of a nuclear emergency.
As indicated in the action response plan,each nuclear power plant stages drills oncea year to ensure preparedness in the eventof a nuclear accident.
The national and local governments play
an active part in these drills as they serveto strengthen coordination.
*The law provides a framework of cooperation that allows national and local
governments, power companies and related organizations to build adefense against nuclear accidents that threaten surrounding areas.

▲Accident response■Accident response system
Offsite Center
National Nuclear Accident HQ

National Field HQAdviceParticipation
Nuclear Safety Commission

Nuclearaccident expert

Prefectural Field HQPrefectural Disaster Prevention HQ

Nuclear Accident Joint Response Council

Nuclear power station operator

Municipal Field HQ

Municipal Disaster Prevention HQ

Evacuation, “stay indoors” or other instruction (mayor)
Instruction and supervision

Police surveillance
Nuclear Power Business Disaster Prevention
Organization (Disaster manager)

Site ofaccident

Accident
spreadprevention, etc.

Fire department, fire fighting, search & rescue

Japan Nuclear Energy Research Institute,
Expert support
other nuclear power station operators

Self-defense ForceFirst-aid for victims,
radioactivity measuring
Residents
Announcement ofradiation levels,
disposal of radioactive materials

Quality Assurance Activities for
Nuclear Power
Based on the steam leakage accident inwhich the heat transfer tube broke at theMihama No. 2 power station and the MOX
fuel data problem at BNFL in the UK, inaccordance with legal requirements andprivate standard “Quality Assurance
Regulations Concerning Safety at Nuclear
Power Stations”, the Quality Assurance
Regulations Concerning Safety at Nuclear
Power Stations” was enacted in October2003 and a quality management system
for nuclear power was prepared, but asecondary pipe breakage accident

occurred at the Mihama No. 3 station.
Kansai Electric takes these accidents
very seriously. Along with doing ourutmost to determine the causes of theaccidents and taking countermeasure toprevent reoccurrence, the company isreconstructing the quality management
system with priority on safety.

■Quality management system
Sustained improvement of quality management system

Responsibilities of management

Citizens

Management of resources

Laws/regulations/requests

Input

Citizens

Assessment and improvement

Satisfaction

OutputPlan and implementation of work

Nuclear power safety

Activities for adding value
Information flow
Adapted from ﾒQuality Assurance Regulations Concerning Safety at Nuclear Power Stationsﾓ published by Japan Electric Association (JEAC4111-2003)

14

Providing Safe andReliable Products and Services

I

Aiming to Enhance Customer Service
The Kansai Electric Group will provide solution service that is intimately related to the customer’s daily living in order toprovide optimal service to satisfy the customer and earn the customer’s trust.

To Have Customers Use
Electricity Without Worry

Enhancement of Customer Service
By reliably carrying out every duties on adaily basis, in order to maintain thehighest customer satisfaction possible,
through means of listening to customers
opinions and comments to improve
service (Web site and call center) andmeans of quantitatively assessing/analyzing customer satisfaction (customer
satisfaction survey), Kansai Electric aims
to be “Number One in Customer
Satisfaction” by providing customers withproducts and services that exceed their
expectations.
■Philosophy of customer service enhancement
Collection of opinions/comments

Value-added service

Customer Satisfaction Survey
Kansai Electric has conducted a telephonesurvey of customer satisfaction bycontacting each customer who applies forsomething at Kansai Electric since 1993.
By asking customers their impression of
the person handling their business andwhat they thought of the treatment theyreceived, our sales offices are able to get
an objective picture of their own service
level, thereby enabling them to verify the
results of improvements and discover
new points that need to be improved.
Kansai Electric is furthermore working to
improve the service level by establishing
things that need to be emphasized andtargets for the next period.

In order to provide customers with stable,
high-quality electricity, Kansai Electric
works on maintenance and improvementof electric power equipment on a daily
basis, periodically conducts training ofmaintenance workers for emergencies toensure quick restoration of power in theevent of an accident that interrupts power.
The company also strives to respondquickly and properly when a customer
requests service such as by directly visitsby Kansai Electric personnel, etc.

Perfection of service

Customer■Transition of Customer Satisfaction

Kansai Electric

Unit: %

Satisfaction rate

Satisfaction survey

89.6

Base operation

87.8

Dissatisfaction rate

88.4

88.2

▲Periodically conducts training of maintenance workers

Improvement of base operation technologies■Annual power interruption time per household
Unit: Min/household

200

0

2.0

2.8

3.0

2.7

00

01

02

03 (Fiscal year)

Due to Great Hanshin
Awaji Earthquake■Effective use of customer opinions/commentsCollection/accumulation
Telephone
CustomerSite, etc.

Danbo no koe

e-PatioAll-electric life

Workers’ opinions

Study of proposed
countermeasuresand strategy

Development of products and services

100
Due totyphoon No. 7

Customer
opinions/
comments

Analysis of customer
opinions/comments

Perfection of information supply and PR

8.0 min.
Improvement of service0

81 83 85 87 89 91 93 95 97 99 01 03(Fiscal year)

Aiming to respond in a manner that leaves customers with a good impression

Kobe Sales Office, Kobe Customer Center

Mai Kibamoto(left), Maya Yonetani (right)

15

Shared/utilized

Call centerHP
E-mailAnalysis/examination

Returning to the origin, we would like toexpress our sincere gratitude to ourcustomers. The time we spend withcustomers taking calls and son on isrelatively short, so we are always thinkingof ways we can please the customer. We
can always be courteous whenever talking
with customers. It all begins with noticing.

▲Respond in a manner that leaves
customers

Providing Solution Service
In addition to supplying energy forbusiness and households and supplying
IT service, the Kansai Electric Group
provides total solution service that iscloser to the customer’s living suchservices intimately related to thecustomer’s lifestyle, maintenance of thecustomer’s equipment and suggestions
on how to use energy to better suit thecustomer’s needs.
In addition to stably providing services

TOPICS

that support the living base for residential
customers, the Kansai Electric Groupwants to provide the customer with easeof mind by responding to the needs ofeach and every customer.
The group hopes to be of service tobusiness customers by supporting
utilities in general that support thecustomer’s business.

Safety of Various Service Supplied by the Kansai Electric Group and Stable Delivery

As a solution service business intimately
related to our customers’ businesses anddaily living, the Kansai Electric Group
provides various products and services
other than electricity. The group strives to
ear the trust of customers by providing
stable and safe products and services.

Information Telecommunications Service
K-Opticom Corporation, which forms the nucleus of the Kansai
Electric Group’s information telecommunications business is atelecommunications service that provides telecommunications
via optical fiber or dedicated line. The services provided by thecompany include Internet connection, IP telephone, opticalbroadcasting and other telecommunications services that are
indispensable for business and daily living. To stably provide
such services which are becoming increasingly important as alifeline, along with being monitored around the clock at theservice operation center, the company has prepared a system
for speedy response in case of emergence for the entire
service area.

▲Service operation center of K-Opticom
Corporation

Gas Business

Home Security Service

In order to provide optimal energy solutions for customers,in addition to electricity, the Kansai Electric Group supplies
gas and fuel for cogeneration (oil). When supplying gas forexample the group has prepared a system for quick
response using all electric power system center and power
stations in the Kinki area in the event of an emergency suchas gas leak and makes doubly sure to provide security byproviding organized training and education for safety
personnel and preparing and safety management system
based on safety regulations (gas work).

As one of the services related to daily living provided by the
Kansai Electric Group, KANDEN Security of Society, Inc.
(KANDEN SOS) provides home security service whereby
when a sensor installed at the customer’s home detects anabnormality, it transmits a signal to the monitor center andsecurity guards of a collaborating security service are sent
to investigate. Along with using the Kansai Electric Group’s
information telecommunications technology and opticalfiber network, the system includes a backup line in caseout a communications interruption to form a reliable,highly stable security network.

16

II

Addressing Global Environmental Problems

Environmental Policy
The Kansai Electric Group CSR Action Constitution (extract)
Addressing Global Environmental Problems
As an energy supplier with ties to the environment, the Kansai Electric Group aims for the world s highest level byrecognizing the size of the impact of its business activities on the global environment and by working to reduce
the load placed on the environment by its own business activities. The Kansai Electric Group furthermore hastaken advanced initiatives to create a better environment and actively contributes to building a sustainable society.

Philosophy

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

Kansai Electric is well aware of our big responsibilities and an energy provider. As we strive to deliver and affluent way of life topeople in our service area, we are staking a serious challenge to protecting the global environment on the corporate level. In all
aspects of our operations, we are investigating advanced means of global environmental protection and taking action immediately
in areas we can be effective.

Action Guide

1

Reduction of environmental impact

2

Promotion of effective and efficient use of energy and resources3

Development of advanced technology

4

Coordination of efforts throughout the Kansai Electric Group5

Creation of a new corporate culture to support harmonious coexistence with the global environment

in 1991,
Action Plan for Global Environmental Considerations (Adopted
revised in 2000)

Action 1
Consideration for the environment
in all areas of our business

1

Address global 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 supply
Activities abroad: Activities carried out abroad to prevent global warmingb. Protecting the ozone layer

2

Addressing local environmental problems
a. Measures to prevent air pollution b. Measures to prevent water pollution c. Measures against chemical substances, etc.

Action2
Activities aimed at building a
recycle-oriented society

Concrete Action Plans

17

1

Promoting business activities suitable for a recycling-oriented society

2

Earnest exchange and cooperation with external groups

3

Raising employee awareness of their responsibility as global citizens and encouraging them to develop good daily practices

Eco Action (Adopted every year)

Conceptual View of Our Environmental Load
Kansai Electric is working hard to quantitatively identify the full picture of the environmental load caused by ourbusiness activities so that we can reduce the load.

Business
Activities

INPUT

Fuel for power generation
Fuel for thermal power generation

Coal

123,000 t

Heavy oil

98,000 kR

Crude oil

215,000 kR

LNG

3.366M t(Liquid Natural Gas)

Release into atmosphereCO236.56M t of CO2(Carbon dioxide)

SOx

415 t

(Sulfur oxide)NOx2,731 t(Nitrogen oxide)

Release into water area

6,000 kROther

OUTPUT(Converted to heavy oil)

COD emission

32 t

218 tU
Fuel for nuclear power generation (pre-irradiation uranium weight)

Radioactive waste
Water for power generation
Industrial water

3.06M tClean water

600,000 t

Low level*1

2,267 drums

High level*2

Approx.261(200R drums)(glassification)*1. Net generation (generated amount - reduced amount)*2. Calculated from wattage generated by nuclear power

Resources

Industrial waste, etc.

Limestone

3,000 tAmmonia

3,000 tOther (caustic soda, etc.)

Other
Electricity

106M kWh

Water

800,000 m3

Gasoline

3,343 kR

Light oil

1,095 kR

Landfill disposal

6,000 tDischarge

57,000 t
Recycled or reused

49,000 t

Recycled (Re-pump)
Recovered heat

1,000 tReduction in intermediate treatment

2,000 tLandfill disposal

6,000 tKandenService activities
CO2 emission from vehicles

10,600 t of CO2

Generated power

Electricity purchased from other companies, etc.

Self-consumed and loss in generation, transmission and distortion

116.954B kWh

41.810B kWh▲12.870B kWh(Including new energy sources)

Electricity for water pumping▲5.649B kWh

Solar power
39M kWhWind power
12M kWh
Waste-fired power 627M kWh

Electricity sold
140.246B kWh

18

II

Addressing Global Environmental Problems

Targets and Performance
Each year Kansai Electric draws up companywide concrete action plan “Eco Action” that establishes numerical targets forthree years to come in accordance with the environmental policy.

Eco Action 2004 (companywide concrete action plan) [adopted in March 2004]
Targets and performance for 2003
Item

Environmental management

Measures for dealing
with problems concerning
the global environment

Targets

Performance

Adoption/expansion of system in compliance with ISO standards

Maintenance/increase of
number of conforming locations

17 locations

Amount of CO2 emitted for the amount of power used

Approx.
0.34kg of CO2/kWh(expected)

0.261
kg-of CO2/kWh

Improvement of equipment utilization factor of nuclear power stations

At least 85%

89.1%

Maintenance/improvement of heat efficiency of thermal power stations

At least 42%

42.3%

Output increase by refurbishing hydropower stations(cumulative total form 1989 to present)

38,752kW

38,752kW

Reduction of total loss (transmission/distribution loss)

Reduce as much as possible

8.4%

Suppression of SF6 gas emission (gas recovery rate for equipment inspection)

95%

97%

Power demand Increase in all-electric home accounts (Happy e Plan, etc.)
load averaging
Increase in regenerative adjustment accounts

250,000 accounts

260,000 accounts

6,600 accounts

6,415 accounts

Utilization of unused energy (location where heat is supplied)

11 locations

11 locations

Development/diffusion of new energy

610M kWhAt least 610M kWh

Maintained at approx. current level 0.004 g/kWh (Kansai Electric)
Measures for dealing
with problems
concerning the regional
environment

Promotion ofrecycling-oriented
business activities

SOx

5-yr. avg.
1998 - 2002
SOx: 0.02 g/kWh (Kansai Electric)(Thermal power 0.06 g/kWh)NOx: 0.04 g/kWh (Kansai Electric)(Thermal power 0.14 g/kWh)0.023 g/kWh (Kansai Electric)

Improvement of resource recycling rate for industrial waste

90%

86%

Amount of industrial waste disposed of as landfill (compared with 2000)−

6,476tGreen procurement of office supplies (43 applicable items)

100%

99%

Introduction of low-pollution vehicles(number of low-pollution vehicles among the total number of vehicles)

30%

29.7%

Reduction of amount of electricity used in offices

4% reduction

10.7% reduction

Reduction of amount of utility water

3% reduction

23.1% reduction

Improvement of vehicle fuel consumption

Improve as much as possible

9.3km/r

Reduction of amount of copy paper used

12% reduction

9.7% reduction

Amount of SOx and NOx emitted for theamount of power generated
NOx

Energy savings andresource savings(In-house use)(compared with 2000)（）*Points modified since last environmental report*“Amount of industrial waste disposed of as landfill” was added to include target values in conjunction with the Kansai Electric Recycling Activities Promotion Plan (March 2004).
*“Promotion of peak-cut-type equipment” and “Using LNG (Ratio of LNG to thermal fuel)” have been eliminated because targets have been met.

19

0.019 g/kWh (thermal power)

0.124 g/kWh (thermal power)Targets for 2004 and beyond
Fiscal 2004

Targets and action plans up to fiscal 2010

page

Devise continual improvement of environmental management system

P.21

Attain about 0.34 kg of CO2/kWh at Kansai Electric by 2010 in order to attain target
value for all electricity business (0.34 kg of CO2/kWh by 2010). Promote New ERA
Strategy to continually attain targets.

P.26

At least 85%

Make efforts to ensure continual, safe, stable operation for nuclear power.

P.31

At least 42%

The target of thermal efficiency rate of 42% was achieved by using primarily high-efficiency
combined plants while working to improve application aspects such as shortening start-up
time at conventional plants. Now we need to maintain/improve the thermal efficiency rate.

P.31

Targets were achieved to carry out refurbishing work according to schedule.
Subsequent refurbishing work and other large scale improvement projects are to be
carried out aiming to increase output to 49,852 kW in 2006.

P.32

The same level as the previous year was maintained. Next we will device ways tominimize loss form both aspects of equipment formation and use.

P.32

A high recovery rate was achieved by efficiently recovering when performing inspections. Next
we will maintain approx. 97%, which is the target for the electricity business on the whole.

P.32

Fiscal 2005

Fiscal 2006

Maintenance/increase in number of conforming locations
0.34kg-of CO2/kWh(expected)

49,852kW

46,452kW

46,452kW

Reduce as much as possible
97%

97%

97%

610,000 accounts

714,000 accounts

841,000 accounts

7,400 accounts

8,400 accounts

9,400 accounts

12 locations

The number of regenerative adjustment accounts was just short of the target value. Next we hope
to further popularize regenerative adjustment and further increase the number of accounts.

P.28

We hope to start projects at 12 locations by new introduction.

P.30

P.27

At least 660M kWh At least 710M kWh At least 760M kWh Targets were achieved due to purchase of electric power from new energy sources.

P.29

Next we will work on popularization/development of new energy by promoting
autonomous development and by PR for the Green Power Fund.

P.30

Promote growth of Kansai Green Electricity Fund
Maintain at approx. current level
5-yr. avg.
1998 - 2002
SOx: 0.02 g/kWh (Kansai Electric)(Thermal power 0.05 g/kWh)NOx: 0.04 g/kWh (Kansai Electric)(Thermal power 0.14 g/kWh)This was improved in comparison with the previous year by increase in power rate of
LNG thermal power generation. We will continue to maintain the current status, whichis the highest level in the world.

P.39

Half reduction (max. 4,500 t)

Due to reduction of soot emitted from thermal power stations, the recycling rate fell
short of the target value. Next we hope to reduce zero emission of industrial waste
disposed of as landfill in the medium-to long term.

P.43

100%

Fell just short of target values. Next we will increase the number of applicable items.

P.47

Fell just short of target values. In the future we will introduce/increase the number ofhybrid vehicles and low emission vehicles (LEV) in addition to electric vehicles.

P.47

The mount of copy paper used fell just short of target values. We plan to promote
activities to further reduce the amount of paper used at all of our facilities.

P.47

（

）

90%

35%

40%

45%

12% reduction

13% reduction

14% reduction

24% reduction

25% reduction

26% reduction

Improve as much as possible
11% reduction

12% reduction

13% reduction

20

II

Addressing Global Environmental Problems

Environmental Management
A more complete environmental management system is being devised based on the philosophy of TQM (total management
system), in order to maintain more efficient measures while strictly observing pertinent laws and regulations.

Environmental Improvement Activities Basedon the Environmental Management System
Based on the CSR Promotion Council headed by thepresident of Kansai Electric, with the Environmental
Considerations Department in charge of environmental
issues in general, those in charge of environmental
management are positioned in each organization. Based on
the concrete action plan Eco Action , companywide
environmental improvement activities are carried out inaccordance with the PDCA cycle.
Kansai Electric also has about 250 environmental project
promotion staff who impart environmental education in theworkplace, do PR activities outside the company and anumber of other chores aimed at helping the individual
departments take up environmental activities of their own.

Introduction of ISO14001 standards
The environmental management system that complies
with ISO14001 we started building for our thermal
power stations in 1997 is now complete. We are also
trying to expand the system to cover our nuclear andconventional power stations. We have worked on
improving the system by having experts from otherplants and from outside the company participate ininternal audits of our thermal power stations that havevoluntarily declared their data since 2002.
In order to have our initiatives objectively evaluated, asof March 2004, we have obtained external certification
at 10 of our operations.

■Organization
President
CSR Promotion Council(headed by the president)
Environmental Considerations Department(General environmental management)
Quality and Safety Improvement Audit Department
Other divisions and departments
Sales offices
Branch offices andthermal power centers

Operation and maintenance offices
Power stations
Construction offices, etc.

Global environmental project promotion staff(Approx. 250)

■Locations acquiring external certification
Name

Date registered

Himeji No 1 Power Station (thermal)

March 24, 2000

Kainan Power Station (thermal)

October 27, 2000

Himeji No 2 Power Station (thermal)

March 23, 2001

Sakaiko Power Station (thermal)

February 22, 2002

Wakayama Power Station, Tanabe Electric Power SC

February 22, 2002

Nanko Power Station (thermal)

March 29, 2002

Himeji LNG Management Office

March 29, 2002

Himeji Operation and maintenance Office

March 29, 2002

Ohi Nuclear Power Station

October 25, 2002

Customer Headquarters, Technical Test Center

January 26, 2004

Environmental Considerations
Department

All company divisions,departments and branches

Quality and Safety Improvement
Audit Department

Main Environmental Laws
Air Pollution Control Law
Water Pollution Control Law
Noise Regulation Law
Vibrations Regulation Law
Offensive Odor Control Law
Waste Disposal and Public Cleansing Law

Ordinance Pertaining to the Protection of the Living Environment in Osaka Prefecture
Ordinance Pertaining to the Protection and Creation of the Environment (Hyogo Prefecture)
Law on the Protection and Fostering of the Environment of Kyoto Prefecture
Ordinance Pertaining to the Prevention of Environmental Pollution in Wakayama Prefecture
Ordinance Pertaining to the Prevention of Environmental Pollution in Fukui Prefecture
Main Agreements
11 environmental protection agreements forthermal power stations

Establish concrete
activity plans

Review activity results andestablish concrete activity
plans for the entire company■Main laws, ordinances and agreements

Main Ordinances

Notify concrete
activity plans for theentire company

Define environmental policy

In 1997, requirements for environmental impact
assessment were strengthened by ministerial decision.
Since that time, Kansai Electric has conducted 16
environmental impact assessments.
Following passage of the Environmental Impact
Assessment Law in 1997 and revisions to the Electric
Utilities Industry Law, specific procedures were added
to assessments for power stations.
Based on these procedures, we are currently evaluating
environmental impact concerning upgrading our
Sakaiko Power Station to combined cycle power
generation.
Kansai Electric s facilities strictly observe laws,
ordinances and Agreement on Environmental
Protection concluded with local communities near our
power stations.

(Fiscal 2003)■PDCA cycle
CSR Promotion Council

Strict observance of environmental
laws and ordinances

Make the company s
achievements open to
the public throughthe Environmental
ReportAgreement on Pollution Prevention at Nanko Power
Station (Power stations in Nanko, Sakaiko and Osaka)
Evaluate propriety andefficiency of the system

Agreement on Environmental Protection (Himeji No. 1 and No. 2)
Agreement on pollution Prevention(Kainan Power Station)
Agreement on Environmental Protection at Maizuru Power Station (Maizuru Power Station)
3 safety agreements for nuclear power stations

Implement environmental
management activities
Collect, check andreview activity results

21

Check and review
activity results

Agreement on Environmental Safety for Area Around Nuclear Power
Stations (Nuclear power stations in Mihama, Ohi and Takahama)Promotion of Environmental Management
Activities as a Group
Environmental education
In order to promote and improve environmental protection
activities in all business fields, Kansai Electric is working
hard to develop human resources that can create andimplement voluntary and constructive activities inaccordance with their own position and responsibilities intheir respective workplace. Companywide training has been
implemented since fiscal 2004 using the e learning system.
■Educational programs for employees(imparted by Kansai Electric)
ProgramDescription

Environmental
staff training

Implemented September 2003. Provided staff in charge
at various locations (38 participants) with knowledge ofwhat is going on inside and outside the company.

Internal
environmental
audit training

Implemented August 2003. Provided Internal auditors
in charge at various locations (22 participants) withknowledge auditing techniques, etc.

ISO14001 staff
training

Implemented October 2003. Provided
staff with knowledge of environmental
sampling and assessment methods.

Award of excellence in environmental action promotion
In order to promote and improve environmental
protection activities in all business fields, Kansai Electric
is working hard to develop human resources that cancreate and implement voluntary and constructive
activities in accordance with their own position andresponsibilities in their respective workplace.
Companywide training has been implemented since
fiscal 2004 using the e learning system.
■Award-winning business sites (fiscal 2003)
Award

Business site

Excellence Award

Hanshin sales office, Hokuriku branchSpecial Award

Hokusetsu sales office

TOPICS

The entire Kansai Electric Group is working
together to strengthen risk management by enhancing
environmental management and increasing groupprofits by promotion of eco business.
Kansai Electric is fortifying the linkage among thevarious companies belonging to the group throughvarious opportunities such as support for eco businessexpansion using all sorts of environmental technologies
and expertise and sharing information by holding
information meetings. Based on the philosophy of
CSR, Kansai Electric intends to continue to pursue
environmental management activities as a group.

Acquisition of ISO14001 certification
Six companies of the Kansai Electric Group haveobtained ISO14001 certification.
Kansai Electric aims to build an environmental
management system for the entire group based on theactual state of each company.
■Company that have acquired
ISO14001 certification (As of March 31, 2004)
Company

When acquired

KANSAI ENVIRONMENTAL
ENGINEERING CENTER CO., LTD.

May 1996

KINDEN CORPORATION

September 1999

NEWJEC INC.

January 2000

Kansai Tech Corp.

February 2002

Osaka Rinkai Netsu Kyokyu Co., Ltd.

January 2003

The Kanden Kogyo, Inc.

November 2003

Gathering environmental load data
Kansai Electric has gathered data on 23 groupcompanies which are expected to have a highenvironmental load (electricity/water consumption,
vehicle fuel consumption, air and water polluting
substances, industrial waste, etc.) and has disclosed
the data to the public since fiscal 2002. Three morecompanies were added in fiscal 2003, so environmentalload data is now being managed for 26 companies.
In fiscal 2004, Kansai Electric is considering
improvement of the management system andexpansion of the range of application in order to reduce
environmental load for the entire group.

■Environmental load data of groupcompanies(26 companies)
Item

Fiscal 2003 results

Electricity consumption

363M kWh

Water consumption

1,487M m3

Gasoline consumption

4,503kR

Light oil consumption

4,504kR

Industrial waste discharge

58,000 t(Re-pump) Landfill disposal

24,000 t

CO2 emission

164,000 t[26 applicable group companies]
Wakayama Kyodo Power Co.,Inc., K-Opticom Corp., Kanden Information
Systems Co.,Inc., KIA Heating & Cooling Supply Co.,Ltd., Osaka Rinkai
Energy Service Corp., Wakayama Marina City Energy Service Co.,Ltd.,
Kanden Gas And Cogeneration Co.,Inc., Kanden Energy Development
Co.,Inc., KOBE HEATING AND COOLING SUPPLY Co.,Ltd., The Kanden
Industries ,Inc., KANDEN REAL ESTATE CO.,LTD., TOKO SEIKI CO.,LTD.,NIHON ARM CO.,LTD., KINKI CONCRETE INDUSTRIES CO.,LTD., KINDEN
CORP., Kansai Tech Corp., The Kanden Kogyo ,Inc., NEWJEC INC.,KANSAI ENVIRONMENTAL ENGINEERING CENTER CO.,LTD., Kansai
Electrical Instruments Co.,Ltd., SONODA INSTRUMENTS INC., The Kanden
Services Co.,Inc., The Kanden Seisakusho Co.,Ltd., KANDEN KAKOH
CO.,Inc., KANDEN AMENIX CO.,LTD., Kurobe Gorge Railway Co.,Ltd.

Fiscal 2004
Osaka Environmental Award First Prize (business department)*

Kansai Electric is the first company in theenergy industry to acquire the Eco Leaf
Environmental Label . The company has
been acclaimed for raising awareness of theenvironment, and received the Osaka
Environmental Award First Prize in June

2004. The Kanden Kogyo, Inc., also amember of the Kansai Electric Group, waspraised for reusing air-conditioning filtersby employing ultrasonic cleaning andreceived the incentive award.

*Sponsored by the Rich Environment
Creation Council of Osaka Prefecture(headed by Osaka Governor Fusae Ohta,
the award is presented to businesses for
exemplary voluntary environmental
conservation activities.

▲Award certificate

22

II

Addressing Global Environmental Problems

Environmental Accounting
Kansai Electric introduced its own original system of environmental accounting in 1999 and has since disclosed the results to the public. As a test, the company has totaled the cost ofenvironmental protection activities for some of the companies belonging to the group. The company intends to further improve on environmental accounting for the group in the future.
■Environmental protection costs

Units: ¥100 million

Investment
Fiscal 2003
Fiscal 2002

Category

ExpenseFiscal 2003
Fiscal 2002

Main items

I. Cost of environmental management

0.2

−

44.9

53.4

1. Environmental management

0.2

−

1.5

0.8

2. Environmental advertising

−

−

1.1

1.4

3. Labor costs

−

−

42.2

51.2※

7.3

1.8

12.5

9.2

278.3

328.4

202.9

240.4

6.2

7.5

20.4

19.6

209.7

208.1

140.3

172.1

Measures for preventing air and water pollution

62.4

112.8

42.2

48.7

Burying of transmission cables, planting projects

24.7

18.8

63.0

65.1

1. Treatment and recycling of industrial waste

17.2

12.6

14.4

14.3

2. Treatment and recycling of general waste

−

0.6

0.2

0.2

3. Treatment of radioactive waste

7.5

5.6

48.1

50.2

Low level radioactive waste treatment

4. Green purchasing

0.0

0.0

0.3

0.4

Leasing of low-pollution vehicles

V. Cost of research and development

−

0.0

18.5

20.0

VI. Other costs

2.0

4.9

12.7

12.7

1. Coexistence with local communities and support for environmental education

−

−

3.5

2.9

Membership in environmental organizations, donations for events

2. International activities

2.0

4.9

0.0

0.0

Donations to environment funds overseas

3. Environmental subsidies and donations

−

−

9.1

9.8

Levies on pollution levels

312.5

353.9

354.3

400.9

2,551

3,265

−

−

−

−

20,297

21,552

II. Cost of measures against global environmental problems
III. Cost of conservation of regional environments
1. Monitoring and measuring of environmental impact
2. Pollution prevention
3. Natural environment protection and harmonization
IV. Cost of building a recycle-oriented society

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

Preparation of environmental reports, internal education programs,
acquisition of external certifications such as ISO
Monthly events related to the environment,
PR work on energy conservation

System linkage to wind power generation,purchase of excess electricity from new energy sources

Measurement and management of radioactivity levels, measurement andresearch of substance concentration in the environment

Industrial waste and PCB treatment
Recycling of old paper

CO2 measures※In accordance with formulation of our calculation guidelines, the results for 2002 have been altered.
Note: "Environmental Accounting Guidelines, 2002 edition" (Ministry of the Environment) was used a reference. Depreciation was not used as a factor in figuring cost. Complex cost was figured by using one of the following 3 methods: 1. balance tabulation, 2. prorata tabulation based on rational standards or 3. pro rata tabulation based on simple standards. The total of individual environmental preservation initiatives has been used as a factor in figuring cost involving nuclear power generation (managing/measuring
radiation, treating low-level radioactive waste, etc.). Totals may not add up exactly due to rounding off of figures.

■Effect of environmental protection activities
Category

Fiscal 2003 (A)Item (unit)

I. Environmental management

Acquisition of external certification such as ISO (facilities)

II. Global environmental protection

CO2 emissions(10,000 tons of CO2)

CO2 emissions per unit of power (kg of CO2/kWh)III. Regional
environmental
protection

Environmental
harmonization
IV. Building of a recycle-oriented society

V. Other

Result (A - B)

Against 1990 (or accumulative total)

12

3,656

3,684

△28

△605

0.261

0.260

0.001

△0.093△10,882

△2

−

415

1,332

△917

SOx emissions per unit of power (g/kWh)

0.004

0.011

△0.007△0.088NOx emissions

2,731

3,740

△1,009△12,315

NOx emissions per unit of power (g/kWh)

0.023

0.031

△0.008△0.100Extended length of buried cable (km)

134

178

△44

（12,862）

SOx emissions
Pollution
prevention

Fiscal 2002 (B)

10

(t)

(t)

2

※1
（3,628）Forested area

(1,000 m )

41

4

37

Industrial waste discharge(1,000 t)

57

50

7

Industrial waste recycle rate

(%)

86

85

1

9

Low level radioactive waste(drum cans)

2,267

1,078

1,189

（118,095）

Introduction of electric vehicles (total number of vehicles)

162

175

△13

Forestation(10,000 trees)

2.0

2.4

△0.4

※2
（33.7）

Beautification activities(no. of cases)

308

841

△533

※3
（6,450）△82−

Note: CO2 emissions include those of other companies. SOx and NOx emissions are only for self-generated power. CO2 emission per unit of power is based on amount of energy sold. SOx and NOx emission per unit of power is based on amount of power generated.
*1. Fiscal 2002 not yet cumulative area altered along with modification of totaling method. *2. Total of fiscal 1993 and subsequent *3. Total of fiscal 1996 and subsequent23

■Economic effect of environmental protection efforts

Units: ¥100 million

Fiscal 2003

Category

Fiscal 2002

Main items

Revenue

Revenue from recycle business

0.0

0.0

Expenditure

Cost reduction by energy saving

44.7

79.8

Reduction in fuel consumption by improving heat efficiency of thermal power stations*

Cost reduction by material reuse and recycling

52.3

49.8

Cost reduction by reusing utility pole transformers, etc.

0.2

0.2

97.2

129.8

Other
Total

Sales of desulfurizing gypsum for flue gas

Reduction in pollution load levies by reducing SOx emissions*The reduced fuel consumption for this year was calculated from the heat efficiency improvement compared against 1990 levels.

Accounting results for 2003

Evaluation of Eco-efficiency

As for environmental protection cost for 2003, there
was a reduction in amount invested due to reductionin underground cable construction and so on;
investment decreased a total of ¥4.1B in comparison
to the previous period. Because of a decrease inmaintenance and operation cost of pollution
prevention-related equipment due to a decrease inthermal power generation, expenditure decreased bya total of ¥4.7B in comparison to the previous
period.
Concerning environmental prevention effect, on theother hand, due to high level operation of nuclear
power stations and decrease in amount of thermal
power generation, CO2, SOx and NOx emissions
decreased in comparison to the previous period.
Due to a decrease in amount of thermal power
generation, economic effect accompanying
environmental protection measures also decreased a
total of ¥3.3B in comparison to the previous period.

Kansai Electric estimates eco-efficiency which
expresses the correlation of economic value
produced by business activities and environmentalload discharged by business activities.
This fiscal year the company began integrating
environmental load using the Japanese version ofdamage calculation impact assessment method“LIME※1” developed by the LCA national project of
the Ministry of the Economy, Trade and Industry
Because of the nature of our business, integrated
environmental load is calculated using operating
profit for clerical accounting of economic value
concerning emission of CO2, SOx, NOx which havea huge impact on the environment, amount ofindustrial waste disposed of plus amount of

resources consumed such as crude oil.
Compared with 1990 levels, eco-efficiency for 2003
improved 50 points. This was due to the fact that
CO2 and other environmental load was dramaticallydecreased by the effect of nuclear power.
In order to promote business activities that aim tosupport both decrease of environmental impact andincrease of economic value, Kansai Electric wants
to determine and evaluate eco-efficiency.

※1 CO2 is an environmental load substance. This method calls forscientifically analyzing the impact on environmental problems such as global
warming and depletion of the ozone layer, calculating damage to human healthand the ecosystem and ranking the importance.

■Eco-efficiency (Operating profits ÷ Environmental load), 1990 level = 100
150

Operating profit
Integrated index※2

150

Operating profit
CO2

111

Group initiatives with environmental accounting
Total environmental protection cost of 11 groupcompanies was ¥800M; this means each company
spent an average of ¥70M.
The group intends to further improve environmental
accounting by expanding the number of applicablegroup companies, improving accuracy of calculation
methods and determining economic effect.

100

50

90

91

92

93

94

95

96

97

98

99

Emission environmental load
Consumed resources※2 Integrated index = CO2, SOx, NOx, amount of industrial waste disposed of ＋ Oil, coal, fuel for nuclear power generation

00

01

［

■Group environmental protection cost (expense)
11 group companies for which economic effect was totaled
Wakayama Kyodo Power Co.,Inc., Osaka Rinkai Energy
Service Corp., Wakayama Marina City Energy Service Co.,Ltd.,KOBE HEATING AND COOLING SUPPLY Co.,Ltd., TOKO SEIKI
CO.,LTD., KINDEN CORP., Kansai Tech Corp., The Kanden
Kogyo ,Inc., NEWJEC INC., KANSAI ENVIRONMENTAL
ENGINEERING CENTER CO.,LTD., KANDEN KAKOH CO.,Inc.

02

03 Fiscal year

Each is multiplied by the LIME
integration coefficient(¥100 million)

Category

Main items

Fiscal 2003

Environmental management cost

Preparation/utilization of environmental management system (ISO14001)

613

Regional environmental protection cost

Maintenance/management of air/water pollution prevention equipment

18

Recycling-oriented society building cost

Disposal/recycling of industrial/ordinary waste

Other cost］

Charges for pollution load

58
116

Total

805

Average environmental protection cost per company

73

24

II

Addressing Global Environmental Problems

Addressing Global Environmental Problems (New ERA Strategy)
Kansai Electric is expanding its initiatives to use energy more efficiently and reduce greenhouse gases by promoting its “NewERA Strategy” to prevent global warming.

CO2 Emissions Around the Worldand in JapanThe world as a whole emits about 23.6
billion t-CO2 (figure for 2001), of which
Japan accounts for about 5%. Emissionsof CO2 in Japan are climbing markedly
compared to 1990 levels in the private
and transportation sectors.
The Kyoto Protocol was adopted at thethird Conference of the Parties to the
UNFCCC (COP3) held in Kyoto in
December 1997. Japan signed theprotocol in June 2002 agreeing to reduce
the amount of greenhouse gases emitted
from 2008 to 2012 by 6% in comparison
to 1990 levels.

Measures for Reducing CO2 Emissions
in the Electric Utility Industry
Environmental plan of action for
the electric power industry■World CO2 emissions (2001)

U.S.A.
24%

Others29%
Australia
2%

World's total
23.6 B t-CO2
China
13%
Russia7%

Mexico 2%
France 2%
Korea 2%
Italy 2%
Canada 2%

India 4%Germany 4%
U.K. 2%

Japan 5%

Source: Energy and economic statistics for 2004
The Institute of Energy Economics, Japan■Japan’s CO2 emissions by sector (2002)
Others: 0.0%
Waste (incinerationof plastic, etc.) 1.9%
Industrial process(limestone consumption, etc.)
3.9%

Expansion rate since 1990 is indicated in parentheses.

Industry
476

（-2%）

1990

TOPICS

363

to

0

en

d

Industry(factories, etc.)
Domestic (households) 37.5%
13.3%*Indicates emission trading (ET), joint implementation (JI) and clean
development mechanism (CDM) established by the Kyoto Protocol.

Source: Assembled from Ministry of Environment data.
Note: Amount emitted in conjunction with generating electricity is allotted to theultimate demand sector in accordance with amount of power consumed. The
percentages given are percentage relative to emission volume. “Others” includes
error when distributing power and consumption of lubricating oil, etc.

Selection of “Climate Leadership Index” top 50 companies

In May 2004, Kansai Electric was included in the best 50
companies for initiatives for addressing the problem ofglobal warming and disclosure of related data by the
Carbon Disclosure Project* funded by a group of theworld’s most prominent corporate investors. Kansai
Electric was the only company from the Japaneseenergy industry selected.
*Project for getting companies to disclose information about their awareness and measures they
are taking to address the problem of global warming. This project is sponsored by 95 corporate
investors from all over the world. The project targets the top 500 companies in aggregate market
value. The total operating assets of the project is in excess of $1 trillion (about ¥1.1 quadrillion),
which is on par with the gross domestic product (GDP) of the United States.

25

erg y elater

Domestic (commercial)
15.8%

2002 (Fiscal year)

Source: Assembled from Ministry of Environment data.

Total
1,248 M
t-CO2

Due（+33%）
Domestic
Transportation 273
261
217（+20%）
Energyconversion（±0%） 8282

468

Transportation(cars, ships, aircraft)
21.0%
.2 %

Unit: Million t-CO2

94■Japan’s CO2 emissions by sector

Energy conversion(power stations, etc.) 6.6%

The Federation of Electric Power
Companies of Japan adopted and released
the Environmental Action Plan ofJapanese Electric utility industry in
November 1996. The plan went throughits 7th review in September 2004.
The plan raises as the reduction target to“by fiscal 2010, we aim to further reduce
CO2 emissions intensity (emissions perunit of user end electricity) byapproximately 20% from the fiscal 1990
level, to about 0.34kg-CO2/kWh”.
Kansai Electric has carried out various
initiatives for achieving these targets.
Besides redoubling our efforts with
“Promotion of nuclear power on theprecondition of ensuring safety andrestoring trust”, “Further increase in theefficiency of thermal power, and reviewing
thermal power plant operating methods”
and “Efforts for Using the Kyoto
Mechanisms*”, Kansai Electric willcontinue to strive to promote energy
savings and use of natural energy.

■Electric Power companies selected (8 companies)*American Electric Power (U.S.)*Entergy (U.S.)*Florida Power and light (U.S)*Public Service Enterprise Group (U.S.)*Endesa (Spain)*Iberdrola (Spain)*Kansai Electric (Japan)*Scottish Power (U.K.)■Two Japanese companies other than Kansai Electric*Nippon Steel Corp.

*Mitsui & CO., Ltd.

Kansai Electric’s Action Against Global Warming – New ERA Strategy
Kansai Electric has raised and is actively
expanding its “New ERA Strategy”, ageneral measure for reducing greenhousegases. We are implementing a goodbalance of various measures.

■New ERA Strategy
Promoting more efficientuse ofenergy for customers by developing/spreadinguse of high-efficiency electric equipment/system

Development and spread of
new energy sources

Efficiency

Promotion of
nuclear power generation

Efforts to increase energy
efficiency by society as a whole

Improving and maintaining
thermal efficiency ofthermal power stations
ERA is an acronym that stands for Efficiency, Reduction and Activities Abroad. Era means an“era” or period, and contains the nuance of the start of a new era.

Use of untappedenergy sources

Reduction

Activities Abroad

Reducing greenhouse gas
emissions in power supply

Activities carried out abroad toprevent global warming

Renovating hydropower
stations

Undertaking projects abroad in order toutilize the Kyoto Mechanism

Developing fuel gas
decarbonization technology

CO2 Reduction Targets andPerformance

Developing tropical rain
forest reforestation andmangrove aforestation
techniques in order toexpand CO2 absorption

Effect of Avoiding CO2 Emissions

In keeping with the targets of the electric
power industry as a whole, the numericaltargets of Kansai Electric for reducing CO2 is
to reduce the amount of CO2 emitted relative
to the amount of power used (sold) (CO2emission unit) in 2010 to 0.34 kg of
CO2/kWh.
By maintaining equipment use rate ofnuclear power stations, which do not
produce CO2 when generating electricity, atabout 90%, the amount of CO2 emitted
relative to the amount of power used (sold)(CO2 emission unit )for 2003 was 0.261
kg-CO2/kWh. This is the lowest level among
all domestic electric power companies.

■*CO2 emissions per unit of power generated
and nuclear/hydropower ratio (2001)(kg-CO2/kWh)

0.61

CO2 emissions per unit of power generated

0.47 0.47 0.50
0.34
0.22 0.229
0.05
0France Canada Kansai Electric Japan
0
13
35
56
77
58
10

U.K.

Italy Germany U.S.A.

25
1

23

30
4

23
6

14
14

Nuclear power

Ratio of electric power generated

Hydropower

In 2003, Kansai Electric avoided emitting
about 23.10 million t-CO2 compared to1990 levels, of which nuclear power
generation accounted for about 80%. This
amount is equivalent to about 2% of the
1.248 billion t-of CO2 (2002) that Japangenerates annually. When converted into
a quantity of oil, it is 8.30M kR or about
1.6 times the fuel Kansai Electric
consumed in 2003.

(%)■*CO2 emissions saved

Sources for foreign countries: Energy Balances of OECD Countries 2000-2001
Source for Japan: Survey by the Federation of Electric Power Companies. Actual results for Kansai Electric for fiscal year 2003.

(10,000 t-CO2)

CO2 emissions saved
CO2 emissions

Compared CO2 emissions per unit of power generated of Kansai Electric tothose of Europe and U.S., we are in the third level behind France, high ratio of
nuclear power, and Canada, high ratio of hydropower.

1,990 2,000 2,180 2,390 2,310■Trend of CO2 emissions per unit of power consumed (sold)(100M kWh)
(10,000 t-CO2)

Volume of power consumed (sold)
Volume of CO2 emissions

CO2 emissions per unit of power consumed

1,319 1,338
1,206 1,227 1,226
0.353

0.331

1,388 1,404

1,429

0

0.327

0.306

4,261 3,926 3,954 3,688 3,684 3,656

1,398 1,418 1,402

1,233

0.275
4,261

1,364 1,374(kg-CO2/kWh)

4,316

4,068

99

00

01

02

Cooperative measures with local
communities, etc. 600,000 t-CO2 (2.6%)

0.313 0.301
4,191 4,10390

0.260 0.253

0.280 0.277

0.264 0.260 0.261

3,926 3,954

3,755
3,388

3,688 3,684 3,656

03(Fiscal year)(Breakdown)

Development of hydropower
resources, etc. 600,000 t-CO2 (2.6%)
Improved thermal efficiency of thermal
power station 500,000 t-CO2 (2.2%)
Use of LNG 2.10M t-CO2 (9.1%)

3,569 3,516

Improved capacity factor of nuclear
power stations7.60M t-CO2 (32.9%)
0

90

91

92

93

94

95

96

97

98

99

00

Compared to fiscal 1990, the volume of power consumed increases by 16%, while the volume of CO2 emissions reduced by 14%.

01

02

03 (Fiscal year) 0

New nuclear power stations (Ohi No. 3 & 4)
11.70M t-CO2 (50.6%)
Note: Percentages are calculated against total amounts.

26

II

Addressing Global Environmental Problems

Efficiency Efforts to Increase Energy Efficiency by Society as a Whole
Kansai Electric is working on developing and spreading new forms of energy and suggesting to customers ways to conserve
energy in order to have energy used more efficiently by society as a whole.

Promoting More Efficientuse ofEnergy for Customers
Kansai Electric promotes more efficient use ofenergy by customers by developing/spreadinguse of high-efficiency equipment/systems ,making suggestions to help customers
improve equipment operations methods , andpromoting leveling of nighttime electric power
consumption (load leveling) .
■Heat pump technology and heat storage systems

Promoting energy conservation for supplying
heated water and air-conditioning, which
account for 54% of energy used in the private
sector (commercial sector, household sector)
for which consumption continues to increaseis an urgent theme.
The primary means of solving this problem
focuses on heat pump technology, which uses
air heat, a clean, recyclable source of energy
and can use three times as much energy as is
introduced.
In addition there are heat storage systems thatutilize cheap nighttime power that produces
little CO2 emission. The system uses heat
energy stored at night during the daytime.

Initiatives with corporate customers■Activities for encouraging the use ofheat storage systems

For customers in the industrial and commercial
sectors, we recommend the Eco Ice and Eco
Ice mini ice type heat storage air-conditioning
systems, the heat storage heat pump hot watersupply system and commercial electric
kitchen . These offer an assortment ofvariations that can be selected according toapplication and scale. Applications range fromoffice buildings to hotels, hospitals, stores andfactories.
We also offer heat storage and adjustment
plan that provide discounts up to 60 % onelectric power charges if you introduce a heatstorage system. In recent years, the number ofaccounts has risen to approximately 1,000 new
accounts per year. The number of accounts
exceeded 6,000 at the end of fiscal 2003.

■Services such as energy consulting service

Kansai Electric offers energy consulting
service for our customers equipment, whichtakes advantage of the Kansai Electric Group stechnology and expertise, to help thecustomers understand the features ofelectricity and let the customers know the best
way to use their equipments. By the end of
2003, 443 energy diagnoses had been
conducted.
Kansai Electric also offers a heat storage trust
system and e Pack lease service forcorporations, so energy can be used effectively
in accordance with the customer s needs.

■Number of accounts for heat storage andadjustment plan
Accounts

6,415
5,594

▲Diagnosis of customer s equipment

4,697■Heat storage air-conditioning system

3,815

Heat pump

2,804
1,877
1,392

Electric power
1

Electric
heat pump

Air heat20

Heat energy
3

3 heat energy is
obtained from 1
electric energy.

Heat storage
Heat storage layer

Hot water

Hot water
supply27

Cold water

Ice

Air
conditioning

Heating

97

98

99

00

01

02

03（Fiscal year）

TOPICS High Environmental Efficiency Service PSS
Product Service System, or PSS, is a set ofservices that satisfy the customer s needs
rather than selling substantial products
only, and is also an environmental
business model that provides the function
itself. PSS promotes the move fromproducts to services for society and iscurrently attracting attention as a systemthat holds great potential for reducing
environmental load.
Kansai Electric s e Pack electric
equipment and facilities lease service forout corporate customers (see above) andour HAP-e Package hot water equipment
and IH cooking heaters for households(see P28) are services that include
elements of PSS.

Initiatives concerning general household customers■Activates for spreading the use ofelectric water heaters and eco units

Kansai Electric is working on spreading andexpanding use of our Eco Cute products that
employ heat pump technology together withelectric water heaters which are therepresentative device using nighttime
electricity.
Eco Cute is a heat pump system that canobtain 3 heat energy from 1 electric energy
and is a hot water supply device that efficiently
heats water. It is also a device that is friendly
to the global environment and saves energy byusing CO2 with a small global warming factor
that doesn t destroy the ozone layer as
refrigerant.

Promotion of load levelingWith the increase in air conditioning demandof recent years, power consumption has cometo differ greatly between daytime and nighttime
use. By balancing between day and night,
Kansai Electric can efficiently use equipment
and reduce emissions of CO2. Therefore,
Kansai Electric is encouraging customers to
use nighttime electricity by proposing heatstorage adjustment contracts that shift
daytime demand peak to nighttime, etc.

order to have customers switch to all electric
power, Kansai Electric proposes a special fee
menu that matches the customer s lifestylesuch as HAP-e Time fee and HAP-e Plan thatfurther offers a 10% discount. The number ofcustomers taking advantage of these services
is increasing year by year.

■Time-specific electricity contracts and
HAP-e Plan contracts
Thousand inpurchases

Number of time-specificelectricity contracts

Number of Happy Plan Thousand inpurchases
contracts

261■CO2 emissions per unit of power
consumed (sold)

140.0
199
151

kg-CO2/kWh

88.9
0.238(0.253)

95
65

80

0.283(0.265)

0.268(0.261)

115
48.0
19.5
0

▲Eco Cute■HAP-e Time and HAP-e Package services

In addition to HAP-e (Happy) Time and Timespecific electricity contracts to provide
customers with cheap nighttime electricity, in

TOPICS

97

98

99

00

01

02

03 0
(Fiscal year)

The HAP-e Package lease system of electricwater heating equipment and IH cooking
heaters requires no initial cost, so it is rapidly
spreading. The cumulative number ofcontracts at the end of fiscal 2003 has alreadyexceeded 14,000.

0Daily averageNighttime (10 pm - 8 am) Daytime (8 am - 10 pm)*Average demand over six years from fiscal 1999 to 2003. Figures inparentheses are for fiscal 2003 only

Acquisition of Eco Leaf Environmental LabelIn July 2003, the electricity provided to customers received
certification of the Eco Leaf Environmental Label promotedby the Japan Environmental Management Association for
Industry (JEMAI). The label certifies that environmental load
data of the product life cycle from procurement of raw
materials to disposal is quantitatively calculated and has been
examined and certified by a judgment committed formed of
consumer representatives and knowledgeable persons. This is
the first time a product with no concrete form such as
electricity has been certified. Kansai Electric will continue to
strive to disclose environmental data and provide its customers
with electricity in a transparent and dependable manner.

■Certified environmental data
Product:
System electric power
Spec:
60 Hz
Target fiscal year: 2003
Global warming load for life cycle:
0.309kg of CO2/kWh
CO2 emission for electricity generation:
0.261kg of CO2/kWh(Daily average)
0.265kg of CO2/kWh(Daytime)
0.253kg of CO2/kWh(Nighttime)
Fiscal 2003 data was certified July 2004, and has been subsequently updated.

※http://www.kepco.co.jp/pressre/2004/0712-3j.html

28

II

Addressing Global Environmental Problems

Development and Spread of
New Energy Sources
Introduction of electric power purchase system

For the diffusion of new energy sources
While generation of electricity by solar and wind
power does not emit CO2, it is affected by theweather and it costs more than other sources ofpower. In Japan, which has almost no energy
resources, spread of generation of electricity bysolar and wind power is being promoted on thenational level. Japan leads the world in introductionof solar power electricity generation.
In April 2003, the Special Measures for Use of New
Energy Sources in the Electric Power Industry (RPS
Law)*, was fully implemented. The law calls for
introduction of new energy sources by those in theelectricity business.

As of the end of fiscal 2003, Kansai Electric has
introduced solar power electricity generationequipment capable of producing 765 kWh and wind
power electricity generation equipment capable ofproducing 154 kWh. As in the past, we continue tosupport the spread of new energy sources bypurchasing electricity produced by wind and solar
power and cooperation with the Kansai Green Power
Fund.
Other companies belonging to the Kansai ElectricGroup, such as Kanden Gas and Cogeneration CO.,Inc. which has started studying the possibility ofgenerating electricity by biomass, will continue towork on developing and spreading new energy
sources.

Kansai Electric has introduced a system ofpurchasing electric power produced from solar
power, wind power and waste. The number ofincidence of purchase and amount of electric powerpurchased increases year by year. The amount ofelectric power produced by solar power and wind
power in particular has increased dramatically.
■Purchase of electricity from solar power generation
1,000 kWh

26,511

17,88839,047
11,793
26,8808,031*RPS Law
Law that obligates electric power companies to use a certain percentage ofpower generated by new energy sources according to the amount of electric
power sold each year.

■Use of solar and wind power by nation

No. of accounts Accounts

Electric power

18,522

4,636
10,987292

01,000 kWh

5,804
99

00

01

02

03 0
(Fiscal year)

637
Solar power■Purchase of electricity from waste-fire power generation
M kWh

30

277
212
25

0
0

No. of accounts Accounts

Electric power

Japan

U.S.A.

Germany

644

31

26

22

22

26

16

Italy

Holland

Spain

891

912

4
U.K.

2
Denmark
627

704

11

3,115

549

Wind power

394

431

99

00

555

6,202

6,352

152

14,609Ref: Prepared by Kansai Electric from information in IEA PVPS Report(September 2003) and Wind Power Monthly (April 2004).
Note: Solar power is given for December 31, 2002 and wind power for
December 31, 2003.

0

92

01

02

03 0
(Fiscal year)■Purchase of electricity from wind power generation
1,000 kWh

11,944

TOPICS Initiatives with Voluntary Development of New Energy Sources

29

Both companies will take advantage of abundant
management resources
to promote wind power
development.

6,250

2,227

▲

In February 2004, Kansai Electric teamed up with Eco
Power Co., Ltd., to form a joint venture concerning
wind power generation. Eco Power belongs to the
Ebara Corporation Group, and is a leading company
in the wind power electric power generation market
that has the wind power electricity generating
equipment of the highest class in the country.

Wind power electricity
generation equipment

405
0

00

01

02

03 (Fiscal year)

Use of Untapped Energy Sources
Cooperation with the Kansai Green Power Fund
The Kansai Green Power Fund* was created in
October 2000 on a proposal made by Kansai Electric.
It was set up to promote the use and spread of newenergies. The Fund basically provides financial aid forthe construction of solar and wind power generation
systems for public or business use, from donations
received from our customers. By fiscal 2003, theFund had provided financial assistance for a total of
33 solar power generators and 2 wind power
generators.
Kansai Electric matches the donations that customers
give yen-for-yen. We are collaborating in otherconstructive ways too, by handling PR activities,
accepting and depositing donations, and more.
*To join the Kansai Green Power Fund, contact your nearest Kansai Electricsales office.

■Aid recipients for 2003
Solar power generation*
Recipient

Output capacity

Asago-cho Yamaguchi
Elementary School (Hyogo)
Other 21 recipients

320.792 kW(Total output: 240.792 kW)Wind power generation
Recipient

Output capacity

Hotel New Awaji (Hyogo)

There are many sources of energy that disappear
without ever being used, such as river temperature
differential and heat emitted from transformers andbuildings. Kansai Electric is involved in supplying
heat by making effective use of such untappedenergy sources.
The project has currently grown to 11 locations, andin December 2004, we plan to introduce regional heat
supply using heat from transformers and river waterin the 3-chome section of Nakanoshima in Osaka.

2,000 kW■Regional Heating Service Area
■Aid recipients for 2004
Solar power generation*
Recipient

Output capacity

Ibaraki City Lifetime Training
Center (Osaka Prefecture,
Ibaraki City)Other 13 recipients

1,054.49 kW(Total output: 207.49 kW)

Kobe Research Park,
Kanokodai
Honjohigashi District, Osaka
South District ofSannomiya Station
Nishiumeda, Osaka
Konohana Rinkai, Osaka
Cosmo Square, Nanko, Osaka

OAP, Tenjinbashi
1-chome, Osaka
West District ofNakanoshima 6-chome

Kansai International Airport

Wind power generation
Recipient

Rinku Town

Output capacity

Hirogawa-cho wind power generator(Wakayama Prefecture, Arida-gun,Hirogawa-cho)

1,500 kW
Marina City, Wakayama

Electricity generation for environmental education▲Solar power generation equipment (Shiga Prefecture, Ohmi Bridge)

Recipient

Output capacity

Maizuru City Takano Elementary School(Kyoto Prefecture, Maizuru City)
Other 2 recipients

4.16 kW*The upper limit for aid per incident is 20 kW for solar power generation.

■Structure of Kansai Green Power Fund
Sales of electricity

Donations fromdonators
Entrust donation

Donators▲Utility tunnel and pipes

Purchasing sum

Use Kansai Electric’s
revenue collection system

Kansai Electric
Donations from
Kansai Electric
Certificate testifying
to participation■Example System*

Kansai Institute of Information
Systems and Industrial
Renovation (KIIS)The Management Committee of
Kansai Green Power Fund

Assistance(Kansai area only)
Wind-generated energy,
solar power forpublic use,electricity generation forenvironmental education

Building waste heat use

Cooling tower(Heat radiation)*http://www.kiis.or.jp

Building

Cooling
Cooling(Heat recovery)

HP
Heat recovery
heat pump(Heat recovery)

Hotel,
etc.

Hot water supply

30

II

Addressing Global Environmental Problems

Reduction Reducing Greenhouse Gas Emissions in Power Supply
Kansai Electric is aggressively pursuing reduction of greenhouse gas emissions in power supply to maintain/improve
thermal efficiency of thermal power generation and best mix of power sources, primarily nuclear power.

Nuclear Power Generation that
does not Emit CO2

Improving and Maintaining Thermal
Efficiency of Thermal Power Stations

Nuclear power generation is a superior methodof generating electric power that does not emit
CO2 when producing electricity.
Kansai Electric is actively addressing the
problem of global warming by promoting
nuclear power generation providing safe andstable operation is secured.

Combined cycle generating system■Units and comparison of CO2 emissions
in Japan by type of electricity source(g-of CO2/kWh at sender end)

Facility use
Fuel consumed in
producing electricity

Coal furnace (975)88

In addition to taking measures to improveequipment and operation for steam turbine
plants, Kansai Electric is striving tomaintain/improve overall thermal efficiency ofthermal power plants by introducing highefficiency combined cycle generation (54%thermal efficiency) at the Himeji No. 1 power
plant.

incorporating state-of-the-art 1500˚C class(combustor exit temperature) gas turbines.
We expect that this will raise the gross thermal
efficiency to the world’s highest level, at about
59%, and will reduce CO2 emissions fromelectricity generation by about 25% compared
to conventional LNG power generation.

■Kansai Electric’s thermal power grosstransmission thermal efficiency■Gross thermal efficiency of combined
cycle generation system

(%)

42.3

Oil furnace (742)38

Steam turbine plant
Generator output

42

LNG furnace (608)
LNG combined cycle (519)130Solar power
Wind power
Nuclear power
Geothermal power
Hydropower

111

887
704

478 407

0

53

29

22

15

Adoption of combined cycle
41

Steam cooling loss/other losses 56%

40

11(Taken from the Report of the Central Research Institute of Electric Power Industry)

Calculations take into account all energy consumed, not just the fuelburnt in producing the electricity but also the energy consumed in
obtaining the basic fuel for the construction of facilities, transportationof fuel, refining, use and maintenance.

Combined cycle plant (example of Wakayama Power Station)
0

89

91

93

95

97

99

01
03
(Fiscal year)

We are planning to adopt combined cycle power
generation at our Wakayama Power Station

59%

Steam turbine 19%
Steam cooling loss/other losses 41%

Combined cycle power generation
As the name suggests, two power generation systems are combined into one. Hot
exhaust from a gas turbine is routed to a heat recovery boiler, where it is used togenerate steam to run a steam turbine. Effective combination of these two generation
cycles can improve the thermal efficiency of the entire generation facility.

Comparison of CO2 Emission Volume and Fossil Fuel Consumption for
Systematic Power Supply System and Fuel Cell Type.

A comparison of a systematic power system *1
and fuel cell type *2 under the same conditions
such as hot water supply shows that the allelectric type consumes less fossil fuel and emits
less CO2. Other cogeneration systems are also
introducing high energy efficiency, decentralized
power supplies. It is assumed that efficiency
deteriorates for those used for generating
electricity only and those that do not sufficiently
utilize waste heat, and there is a need toconsider NOx produced by the customer sideand the production of contaminants that cause
air pollution. (Adopted from the Federation ofElectric Power Companies of Japan pamphlet.)■System comparison When fossil fuel conversion value (66.7%) is used
All electric typePrimary energy
283

Systematic electric power

Electric power load 100
IH

Fossil fuel ratio: 100
CO2 emission ratio: 100

Philosophy of fossil fuel conversion value
Rounded heat efficiency
Equivalent to 66.7% (HHV) standard

Kitchen load

Fuel cell typePrimary energy425

12

Air conditioning 42
Air conditioning
Heating
Hot water
storage tankHeat pump

Systematic electric power

187

Hot water supply load 115

Electric power load 100
IH

Fossil fuel ratio: 150

Kitchen load

12

Air conditioning 42

CO2 emission ratio: 121

Air conditioning
Heating
PEFC

Rounded heat efficiency 66.7%, heat pump COP4, total power supply average CO2 coefficient,fuel cell power generation efficiency 28%, waste heat recovery efficiency 38% (HHV standard)*1: Consists of systematic electric power + heat pump.
*2: Consists of fuel cell (PEFC) + cogeneration + systematic electric power. System is fossil fuel improved type.

31

Generator output
Gas turbine 40%
Fuel (LNG)
100%

In recent years, we have introduced highly efficient combined cycle
power generation with a thermal efficiency of 54%. By operating
existing equipment, gross thermal efficiency is approximately 42% at
all thermal power stations.

State-of-the-art gas turbines

TOPICS

44%

Fuel (LNG)
100%

Hot water
storage tank187

Hot water supply load 115

Renovating Hydropower Stations
Hydropower is a clean energy resource that is
purely domestic. Kansai Electric is therefore
promoting various activities to increase output.
This includes replacing obsolete facilities inalready-existing power stations with more
efficient water turbines an, in rivers with anample amount of water, using the maximum
amount of water for power generation.
From fiscal 1989 through fiscal 2003, output by
our hydro power stations increased to 38,752
kWh. And, we plan to further increase output to49,852 kWh in 2006.
■Increase in hydropower output from facility renovation(kW)

Suppressing Emission ofGreenhouse Gases other than CO2Emissions of greenhouse gases

Reducing emissions of SF6

Targets for reducing carbon dioxide (CO2),methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons(PFCs) and sulfur hexafluoride (SF6) weresettled upon the COP3 in December 1997.
CO2 accounts for about 90% of all greenhousegases emitted by Japan and more than 99% ofthat emitted by Kansai Electric.
Other than CO2, we emit small amounts of SF6,
which is used in insulation of electricalequipment. Apart from that, we emit hardly
any greenhouse gases.

Kansai Electric overhauls SF6 gas insulated
equipment* such as gas circuit breakers andinsulated switchgears once every 18 years.
With the cooperation of electric equipment
manufacturers who recover and use SF6 gas,
we have reduced the amount of SF6 gas that isreleased into the atmosphere.
Moreover, Kansai Electric developed auxiliary
equipment for recovering any residual SF6 left
over in the SF6 recovery system itself. When
this auxiliary equipment is used, recovery canbe boosted to 97% or higher.

49,85250,00038,75240,00030,000■Emission rate of greenhouse gases
in Japan (fiscal 2002)

20,000

HFC 1.0%
CH4 1.5%
CO2(non-energetic
cause)5.4%

10,0000 89

N2O 2.7%
PFC 0.7%
SF6 0.4%*SF6 is widely used as a high performance insulating gas because it
helps downsize electric equipment and is safe to humans.

■How SF6 gas is recovered and reused (image)Kansai Electric

99 00 01 02 03 04 05 06(Fiscal year)

Recovery during inspection
Reuse
Recovery during takedown

Reducing Transmission andDistribution Losses
The electricity we generate loses someelectrical energy as heat in transmission anddistribution to the customer. To reduce thisloss, Kansai Electric has turned totechnological innovation for boostingtransmission voltage and capacity. These
efforts have paid off as we are maintaining
transmission and distribution loss at a low
level.

CO2 (energetic cause)
88.3%

Performanceeffective

Equipment manufacturer
Use in new equipment

Note: Emission rate was calculated as carbon dioxide equivalent (IPCC,
1995) using global warming coefficient.
Source: Assembled from data Ministry of Environment

Not
performanceeffective

Gas manufacturer
Proper treatment■Emission rate of greenhouse gases at
Kansai Electric (fiscal 2003)
SF6 0.2%■SF6 gas recovery rate during apparatus
inspection(%)

Gas recovery rate

18.0

■Ratio of transmission and distribution losses

92

96 97 97

(t)

97

83

(%)

40

13.7
CO2
99.8%

30

Emissions13.5

60 60 60 60

10.9

6.1

20

5.0
Note: Emission rate was calculated as carbon dioxide equivalent (IPCC,
1995) using global warming coefficient.

10
5.5
0

51

60

70

80

90

00

01

0.9 0.7 0.7
0 95 96 97 98 99 00 01 02 03

06 0(Fiscal year)

02 03(Fiscal year)

32

II

Addressing Global Environmental Problems

Technological Development with
the Goal of Reducing CO2 Emissions
Kansai Electric has worked together with
MITSUBISHI HEAVY INDUSTRIES, LTD.,on developing technologies to separate
and recover CO2 (flue gas decarburization).
Beginning with application to global
warming problems such as CO2 carbon
layer fixing and landfill disposal, thistechnology is expected to be widely usedin the future as a CO2 supply source suchas industrial raw materials, and theresearch is also expected to contribute toeffective use of CO2 both within Japan andoverseas.

Development of technology forthe effective use of CO2▲Flue gas CO2 recovery pilot plant (Nanko Power Station)■Mechanism of flue gas CO2 recovery
equipment (chemical absorption method)
Exhaust gas

Recovered CO2

Flue gas CO2 recovery equipment
AbsorberWith the goal of eliminating CO2 from fluegas at thermal power stations, Kansai
Electric has been researching chemical
absorption methods, by operating a fluegas CO2 recovery pilot plant at Nanko
Power Station. We have establishedhighly efficient technology for separating
and recovering CO2 and patented thetechnology in Japan, the USA, Europe andmany countries in Asia. And, this CO2
recovery technology has been applied to aurea production plant in Malaysia.
Research continues today on ways toreduce the costs of CO2 separation andrecovery.

What our staff has to say

Stripper■Making DME from CO2
Current industrial synthesis
Raw material

1st stage

2nd stage

Natural gas, etc.

Methanol

DME

CO2

BlowerCO2

Lean solvent

Heatingstream

DME-from-CO2 process
Raw material

1st stage

CO2 (from thermal PS exhaust gas) + H

Methanol → DME

Whereas the current industrial method synthesizes DME by through a
2-stage process using natural gas as a raw material, DME is directly
synthesized by causing CO2 to react with hydrogen. This enables morecompact synthesizing equipment.

“CO2 can be used effectively.” Searching for possibilities through research.

R&D Department
Electric Power Technology Research Laboratory
Environmental Technology research Center

Ikuko Ogawa

33

Exhaust gas from boiler

Developing flue gas CO2
recovery technology

To expand the use of CO2 recovery
technology, Kansai Electric is promoting
researchanddevelopment
into
synthesizing dimethyl ether (DME) fromCO2 recovered by flue gas decarburization
systems.
DME offers expectations as a new clean
fuel alternative fro LPG and light oil.
Though in general DME is produced fromfossil fuel natural gas, our research is
looking to synthesize it from CO2 andhydrogen.

In addition to synthesizing of dimethyl ether
mentioned above, Kansai Electric is attempting to
use raw materials and synthesize intermediates
for drugs and so on as part of its development oftechnologies to use CO2 effectively. It would be asignificant development if compounds with highadded value taken into the molecule can besynthesized using recovered CO2 as a raw
material. Kansai Electric hopes to continue tosearch for methods of using CO2 effectively ineven more diverse ways.

▲At work in laboratory

Development of Advanced Technology
for Next-generation Energy Supply
R&D into SOFC

Development of next-generation semiconductors (SiC)

Fuel cells chemically react hydrogen andoxygen to directly produce electricity.
They are highly efficient with minimal loss
in energy conversion, so they are
expected to have a lot of potential as a
new decentralized electric power
generation system.
Compared with phosphorous acid fuelcells (PAFC) and solid high polymer fuelcells (PEFC), solid oxide fuel cells (SOFC)
have a very high power generation
efficiency. They therefore have thepotential to replace existing decentralized
power generations systems.
Concerning low temperature-actuated
SOFC that can use inexpensive metal,
Kansai Electric is working on preparing its“tens of kW system” (for medium size
stores and small factories), scheduled forrelease some time before the end of fiscal
2006.

Silicon (Si) power semiconductors areused as components in the circuits ofalmost all equipment that controls electric
power. As manufacturers aim to increase
capacity and voltage to contribute help
reduce transmission and distribution
power loss, Si power semiconductors are
currently limited in terms of performance
because energy loss is large. Siliconcarbide (SiC) semiconductors, on theother hand, hold great potential as thenext generation of semiconductors
because they offer superior durability andminimal loss.
Kansai Electric is the first company tosucceed in developing an inverter using
SiC semiconductors. If SiC inverters are
perfected enough for practical application,
if Si inverters are replaced by the SiC
variety in the future, power loss due totransmission and distribution can be
reduced to less than half of the present
loss, thereby contributing to reduction of
CO2 emission and saving energy for theindustry in general.
In the future, the company is hoping toincrease capacity of SiC inverters for■Overview of fuel cells
The principle by which fuel cells produce electricity isreverse reaction of electrical decomposition of water.
Hydrogen and oxygen are produced by placing positive andnegative electrodes in water and passing electricity throughthe water. A fuel cell oppositely produces electricity when
supplied hydrogen gas and air, i.e. oxygen.
e-electric power-related equipment so they
can be used for various applications
including industrial motors, decentralized
power supplies such as fuel cells, bullet
train and linear motor cars, and improve
SiC inverters enough to market a VA classgeneral purpose inverter of several
hundred kVA by the end of 2006.

▲12 kVA class SiC 3-phase inverter■Future potential of SiC semiconductorse+OxygenFuel electrode Electrolyte Air electrode

Higher voltage and current

HydrogenFor electric power storage batteries

Future of SiC
For linkage with decentralized power supply systems
Instantaneous voltage drop protection device countermeasures unit
System stabilizer
For bullet trains and linear motor cars

■Features of solid oxide fuel cells (SOFC)
Highest electricity generation efficiency of all fuels cells
Has potential to realize high electricity generation
efficiency for a wide range of applications.

Internal modification is possible.
Enables simple system configuration.
Produces a minimum of NOx and SOx; produces minimal
noise and vibration.
Environment friendly.

Space transmission

For electric vehicle and fuel cell vehicles
Electric power transformers

Performance doesn’t tend to deteriorate due to corrosion;
doesn’t require expensive materials (precious metal).
Offers long life and low cost.
Able to directly generate electricity by hydrocarbon andcarbon monoxide.
Enable use of a wide range of fuels.

Satellites

For environmental equipment(exhaust gas treatment, deodorizing, sterilizing)High frequency transmitters for mobile wirelessWorld of Si
IH cooking heater, air conditioner, etc.

Faster speed
Si power semiconductors are currently used to control electric power in various fields. In the future, as SiC power semiconductors are improved enough forpractical use and manufacturing cost is reduced, if Si power semiconductors are replaced by the SiC variety, they would be expected to contribute largely toenergy saving for industry in general.

34

II

Addressing Global Environmental Problems

Activities Abroad Activities Carried Out Abroad to Prevent Global Warming
Utilizing its technical expertise, experiences and know-how cultivated over the years, Kansai Electric is developing projects
overseas with the aim of those projects to the Kyoto Mechanism which is a cost-effective way to reduce greenhouse gases.
RussiaThailand

PolandLaos

UkraineBhutanPhilippines
Eastern Europe

Republic of Georgia
Vietnam

Australia
Indonesia
Mauritius

LegendSymbols and colors

Icon shape
CO2 reduction projects

ThermalHydroelectricWind power,
solar power

Fund

Forestation

R&D

Joint activities,
surveyOverseasbusiness
expansion

Research and Development for
Expanding Natural Sinks

Development of technologies
for mangroves planting andtropical rain forests reforestation
We have been conducting research of forestation
technologies since fiscal 1992 using the symbiotic
relationship of lauan and mycorrhizal fungi, which is anative species of the tropics in Indonesia.
We have also worked on restoring coastal ecosystemand forestation of devastated lands in Thailand since
fiscal 2000 by developing mangrove planting
technologies.

35■Outline of joint project in Indonesia
Project name

Tropical Rainforest Restoration
Technology Development Project

Participatingcompanies

Kansai Electric, Kansai Environmental
Engineering Center, Gadjah Mada
University

Description

Research and development to raise survival rate
and growth speed of lauan splings utilizing thesymbiotic relationship of lauan and mycorrhizal
fungi. It has become known that the fungi
approximately double the growth rate (area) and
improve survival rate by approximately 5 times.
About 80 ha of trees have been planted thus far.

Duration■Outline of project in Thailand
Project name

Mangrove Ecosystem Restoration
Reforestation Technology Development
project

Participatingcompanies

Kansai Electric, Kansai Environmental
Engineering Center, Department of Marine
and Coastal Resources of Thailand

Description

Development of technologies for planting
mangroves in seacoasts that have changed
to desolate areas due to shrimp
cultivation, etc. About 83 ha of (250,000)
trees have been planted thus far.

Duration

1st phase: Fiscal 2000 to fiscal 2003
2nd phase: Fiscal 2004 to fiscal 2006

Fiscal 1992 to fiscal 2001

▲When planted▲

The Kansai Electric Group has been conducting
research and development of forestation technologies
for restoring nature destroyed in various areas on theworld along with radical economic activities.
Through these activities, the group has
simultaneously realized contribution to the global
environment aimed at expanding CO2 sinks andcontribution to the global environment by
forestation of devastated areas.

Four-month-old saplings
have been treated withfungi and grow at twice
the rate of untreated
ones. (left two trees)▲Site of abandoned shrimp pond 3 years after
the trees were planted (March 2004)

Model Development of Carbon Sequestration
Project by Forestation and Carbonization

Joint research using forestation
technology of Kansai Electric

In 2002, the Kansai Electric Group began
research on a project to sequestrate carbon
by forestation and carbonization (CFC),
which are seeking to realize sustainable
wood production and effective atmospheric
CO2 sequestration simultaneously.
The ultimate goal is to prove this carbon

sequestration project model can be
economically feasible.

■Outline of Project in Indonesia
Project name

Model Development of Carbon Sequestration
Project by Forestation and Carbonization (CFC)

Participatingcompanies

Kansai Electric, Kansai Environmental
Engineering Center, PT. Musi Hutan Persada,
PT. Tanjungenim Lestali Pulp and Paper

Description

Convert wood residue from local plantation
area and waste from pulp mills to charcoal
and use the charcoal as soil conditioner,
etc., in plantation area. Develop model
carbon sequestration project thatsimultaneously enables sustainable wood
production and effective CO2 sequestration.

Duration

Since fiscal 2000, a group of Kansai Electricand three other companies has been
carrying out a joint Japan-Australia project
to develop and test technologies for growing
forests of high CO2 fixation capacity on thesite of an open-cut coal mine in Australia.
■Outline of project in Australia
Project nameOpen-cut Coal Mine Rehabilitation
Project

Participatingcompanies

Kansai Electric, Japan Coal Energy
Center, Idemitsu Kosan Co., Ltd.,Electric Power Development Co., Ltd.

Description

Carried out under auspices of the New
Energy and Industrial Technology
Development Organization(NEDO).At
open-cut coal mines, nutrients in soil haveellunvated and hence it is difficult to plantto grow. About 28ha(13,000eucalyptus
trees)have been planted ,using by
mycorrhizal fungi and charcoal developedby the Kanai Electric Group.

Duration

Fiscal 2000 to fiscal 2004

Fiscal 2002 to fiscal 2004

▲Use the charcoal as Soil conditioner■Carbon sequestration by forestation and carbonization (CFC)
Forestation/acacia and eucalyptus trees
Harvesting
Chip production
Rotation

Paper & pulp

Fuel

Biomass-fueled
power generation

Wastewater treatment material

PlantingBark,
branches,etc.

Farmland, coconut plantation, etc.

Charcoal fertilizer

Carbonization
Waste
Farmland▲Initial planting (December 2000)

Charcoal

Coconut plantation
Soil conditioner

Research of CO2 Sequestration and Effective Use by

TOPICS Making Charcoal from Bamboo in the Maizuru Area
Kansai Electric has conducted research to provethe effectiveness of making charcoal frombamboo and sequestering CO2 in the bamboo
charcoal in the Maizuru area. The research
includes life cycle assessment (LCA) of theamount of CO2 sequestered and assessment ofbusiness potential by effective use. Damage offorests cause by bamboo spread has become aproblem all across the country. There are highhopes for the results of this research.

■Description of research using
bamboo charcoal
Making charcoal from bamboo
Purifying water with bamboo charcoal▲Tree growing to height of 7 m (as of July 2004)

Soil conditioner using bamboo charcoal
Use of bamboo charcoal compost in agriculture
Seaweed bed formation using bamboo charcoal

36

II

Addressing Global Environmental Problems

Looking to Apply CO2 Recovery
Technology AbroadBusiness Study and Activities for
Making Use of Kyoto Mechanism
Research into possible overseas applications

Kansai Electric has worked together with
Mitsubishi Heavy Industries, Ltd., ondeveloping technologies to separate andrecover CO2 (flue gas decarburization) since
1990, and has conducted research on effectiveuse.

In 2001, Kansai Electric began research on
ways to improve the efficiency of oil extraction
by injecting CO2 into oil fields; the jointly
developed technology has attracted theattention of the CCP*.
Decarburization technology is expected tocontribute greatly to the effective use of CO2
overseas.

Development of Technology for CO2 Coal Seam Sequestration
The Kansai Electric Group has been taking partin the CO2 sequestration and Effective
Utilization program of Ministry of Economy,
Trade and Industry since 2002.
In the future, monitoring technologies will be
studied and proven and studies will be
conducted to turn it into a business.

Implementation of CDM project in Kingdom of Bhutan*CCP (CO2 Capture Project): International consortium of 8 major oilcompanies (BP, Amoco, ENI, Norsk, Hydro, ChevronTexaco, EnCana, Shell,
Statoil, Suncor).

■Research into decarburization
technology applications■Outline of development of technology for CO2 coal seam sequestration
Project name

Development of Technology for CO2
Coal Layer Fixation

Participatingcompanies

Kansai Electric, Kansai Environmental
Engineers Center

Description

Utilize exchange mechanism of
methane (CH 4) and CO 2 in coallayer. Sequester CO2 collected fromthermal power stations in the coallayer, collect as CH4 and effectivelyuse.

Duration

Kansai Electric has taken part in 10 studies
such as the “basic study for promoting joint
implementation” of the New Energy andIndustrial
Technology
Development
Organization (NEDO) since fiscal 1998. We
hope to discover business opportunities thatcan be expected by making use of the Kyoto
Mechanism in the future.

Project name

CCP (CO2 Capture Project)

Participatingcompanies

Kansai Electric, MITSUBISHI HEAVY
INDUSTRIES, LTD. KPS (Norway)

Description

Kansai Electric was entrusted
research aiming to improve efficiencyof enhanced oil recovery (EOR) by
pumping CO2 into oil fields.
Reduce cost of CO2 fixation by
combining CO2 recovery technology
from Kansai Electric and MHI withmembrane technology from KPS.

Duration

Fiscal 2001 to fiscal 2002

Fiscal 2002 to fiscal 2007 (scheduled)

In order to contribute to sustainable
development of the community of the Kingdomof Bhutan and to formulation of rule regarding
Clean Development Mechanism, Kansai Electricis participating in the project as a project leaderof e7 (See page 38). The project was approved
as a CDM project by the Government of Japanand the Royal Government of Bhutan.
■Outline of project in Bhutan
Project namee7 Bhutan Micro Hydro Power CDM
Project

Participatingcompanies

Kansai Electric (Project leader),American Electiric Power (USA), EDF(France), Hydro Quebec (Canada)

Description

The four participating companies
construct a run-of-river micro hydropower station with a power
generation capacity of 70kW in an
unelectrified Chendebji village.

Expected effectApprox. 500t-CO2/year■CO2 fixation in coal layer
CO2 separation and recovery
CO2
CO2

Gas power station CO2 separation and recovery systemCH4CH4CH4 recovery and use

CH4

CO2

CH4 replacement

Sequestration in coal

Coal seam▲Chendebji village

TOPICS

Contributing to Development of Local Community

The Kansai Electric Group hopes the forestation
project will contribute to sustainable developmentof local community, and that the local people will
voluntarily take part in planting trees. As a system
whereby stable profit can be obtained by

37

forestation activities of the local people, researchand development of agroforestry (combined
management method of agriculture and forestry)and silvofisheries (combined management
method of fishery and forestry) being conducted.

▲Agroforestry mixing oil palm with lauan
in Indonesia

Development of Overseas Projects thatContribute to Prevention of Global Warming

Promoting Worldwide TechnicalCooperation

Kansai Electric hopes to simultaneously
pursue profitability/efficiency and contribute toprevention of global warming by actively
working to develop ecological forestry as anoverseas business.

the experience gained through this project, andapplying it to environmental tree planting
projects in arid region such as China and the
Middle East emerged where salinity problem
has emerged.

Investing in the dexia-fondelec energy efficiency
and emissions reduction fund, L.P.

*In Australia, many areas of farmlands have become deteriorated by soil
salinity which is caused by rising of ground water level that contains salt.

Since January 2000, Kansai Electric has been
participating in the Dexia-FondElec Energy
Efficiency and Emissions Reduction Fund, L.P.
promoted by the European Bank for
Reconstruction and Development. Twenty
projects have currently been started. The
projects are mainly promoted to create
revenue through improved energy efficiency(ESCO) and the installation of high efficiency
gas turbines, but they also aim to reducegreenhouse gases.
■Outline of the Eastern Europe investment
fund project
Project name

Dexia-FondElec Energy Efficiency
and Emissions Reduction Fund, L.P.

Investors

European Bank for Reconstruction and Development,
Kansai Electric, Dexint, Marubeni Corporation, ElectricPower Development Co., Ltd., Mitsui & Co., Ltd.

Investment
manager

FondElec (Connecticut, USA)

Description

Invest in the energy businesses of 26
Eastern European countries, thereby
reducing the emission of greenhousegases. Projects are currently progressing
in Poland (4 projects), Hungary (13projects), Croatia, Slovakia and Bosnia(1 project each). The projects eventually
aim for the acquisition of emission
reduction credits for greenhouse gases.

Fund size

71 million euros

Duration

2000 - 2009 (extended a maximum of two years)■Outline of environmental tree planting
projects in Australia
Project name

Environmental Planting to Prevent
Soil Salinity Problem

Participatingcompanies

Kansai Electric, Kansai Environmental
Engineering Center, Oil Mallee Company

Description

To achieve expansion of natural CO2
sinks and prevention of salinity problem
simultaneously by planting 25 million
mallee eucalyptus trees in 1,000 ha as
left-shape with using tree planting
technologies that Kansai Electric has
accumulated such as utilization of fungiand charcoal.

Duration

Fiscal 2002 to fiscal 2022 (planed)

Expected effect

CO2 absorption: Approx. 860,000 tCO2 over a 20-year period■e7 (a group of leading electric utilities
in the G7 countries)
Established1992

Outline ofactivities

Taking the initiative to organize
international cooperation for actions to curb
and reduce greenhouse gas emissions inorder to play the role of promoting
conservation of the global environment andsustainable development of energy.

Membership

American Electric Power (USA),EDF (France), ENEL (Italy), Hydro
Quebec (Canada), Ontario Power
Generation(Canada),
RWE(Germany), Tokyo Electric (Japan),Kansai Electric (Japan), Scottish
Power (UK)▲Image of soil salinity■WBCSD(World Business Council for Sustainable
Development)

Developing environmental tree planting project
As the result of clear-cutting of native
vegetation, soil salinity has expanded anddamaged the crops in Australia.
To remedy the situation, Kansai Electric started
an environmental tree planting project in thesuburbs of Perth in southwest Australia infiscal 2002. The project aims to expand CO2
sinks and at the same time prevent salinity
problem.
We are now considering taking advantage of

The role that must be played by electric powercompanies in the field of technology transfer
related to environmental conservation, energy
conservation, nuclear power generation, andactivities to prevent global warming on a
global scale is increasing.
As a member of the group of leading electricutilities in the G7 countries (e7), World
Business Council for Sustainable Development(WBCSD), World Energy Council (WEC) andInternational Council on Large Electric systems(CIGRE), Kansai Electric actively participates ininternational conferences and supplying
assistance for developing countries.
Kansai Electric is also cooperating internallyfor the global safety of nuclear power by
providing technical support to China and othernations. We believe our support andcooperation can contribute to the developmentof nuclear power.

▲One year after planting trees (as of August 2004)

Established1995

Outline ofactivities

Conducting seminars and producing papers
that support the WBCSD’s commitment tosustainable development, such as “Climate
and Energy”, “Eco-Efficiency”, “Social
Trust”, and “Standardization of greenhousegas emission calculation method”.

MembershipThis coalition represents about 160
companies from 30 countries.

38

II

Addressing Global Environmental Problems

Addressing Local Environmental Problems
Kansai Electric takes environmental protection into consideration with all plants and systems and is working to create abetter environment in order to live and prosper with the local communities that host us.

Efforts for Local Protection
Kansai Electric long ago started taking
action against air and water pollution, andis now also carefully addressing newissues such as chemical pollution. Basedon environmental protection agreements
our thermal power stations take measures
to prevent air pollution, water pollution,
noise and vibration. We also monitor the
local environment to confirm theeffectiveness of the measures.
Kansai Electric is also searching for
greater harmony between our operations
and local environments by planting
greenery and adapting infrastructure to
maintain scenery.

■Main environmental protection system in a thermal power station

Removal of sulfur oxides

Removal of sootReduction of noise
Afforestation
Flue gas
desulfurization
facility
Electrostatic
precipitator
Flue gas
denitrification
facility

BoilerSteamturbineGenerator
Heavy oil/crude oil tank

Loading arm
Oil fence

Green
zone

Main transformer

Condenser

Switch gear

Integrated water
treatment facility←

Intake of seawaterfrom low depths←

Discharge
into water

Reducing the impact ofthermal discharge

Environmental protection measures

Prevention of oil spills

Removal of nitrogen oxides

Purification of
effluent water

Reducing the impact ofthermal discharge

Measures to prevent air pollution
Sulfur oxides

Measures to Prevent Air Pollution

Nitrogen oxides
Dust
Monitoring and measuring of environmental impact
Emergency measure
Measures to prevent water pollution
On-site wastewater
Hot water discharge
Prevention of oil spills
Measures to prevent noise and vibration
Measures to prevent offensive odors
Measures against chemical substances
PRTR
DioxinSoil contamination
PCB

Kansai Electric uses low sulfur heavy andcrude oil and liquid natural gas (LNG) and
low nitrogen fuels (LNG, high quality oil,etc.) that contain no sulfur at all as fuelfor thermal power generation. We also
minimize emission of nitrogen oxide(NOx) and sulfur oxide (SOx) by using
flue gas desulfurization and denitrificationequipment. As a result, the amount of SOx
and NOx per certain volume of electricity
produced by thermal power generation
emitted by Kansai Electric is markedly
low, and is of the highest standards evenin global terms. Soot emission is also
minimized by high performance electric
dust filters.

■SOx and NOx emissions per unit ofthermal power generated■SOx emissions and thermal power generation■NOx emissions and thermal power generation(t)

300,000

SOx
emissions

Thermal power
generation(1,000 kWh)(g/kWh)SOx emissions

7.1

NOx emissions

4.8
4.0
3.0 3.2

2.7
2.1

2.0

1.4

1.2
0.7

0.9
0 France
98

UK
99

USA
99

Italy
99

0.3 0.12
0.2 0.02

Canada Germany Japan Kansai Electric
97
99
02
03

Sources for foreign countries: OECD Environmental Data compendium/2002
Energy Balances of OECD Countries 1996, 1997-98
1998-99, 1999-2000 (1996 values given for Canada)
Sources for Japan: Survey by Federation of Electric Power Companies(g/kWh)Thermal power
generationNOxemissions(g/kWh)80,00040,00080,00060,00030,00060,00040,00020,00040,00020,00010,000Harmonizing with the local environments
Planting activities
Environmental harmonizing of electric power facilities

200,000

Protecting the natural environment
Effective use of hot water discharge

100,000

0

39

21,947415
065 70 75 80 85 90 95 00 03(Fiscal year)

21,94720,000

2,731
0

7475

80

85

90

95

0
00 03
(Fiscal year)

Measures to Prevent Water Pollution

Measures Against Chemical Substances

Kansai Electric uses various equipment tothoroughly purify wastewater released
form thermal power stations. At some ofour power stations, ultimately treatedwater is effectively used by recycling as
water for desulfurization equipment. We
also take measures to prevent waterpollution such as providing an oil
barricade or oil fences when pumping oil
ashore from a tanker.

PRTR

Soil contamination

Kansai Electric has always properly
managed chemical substances and has
voluntarily managed chemical substances
since 1997, before the PRTR Law went
into effect. Those results have been
disclosed since 2000.
We have also prepared a PRTR Chemical
Handbook that is used to accurately know
and manage the chemicals used by us andgroup companies.

Kansai Electric is working to prevent soil
pollution by strictly observing laws andregulation concerning soil pollution (Water
Pollution Control Law, Waste Management
and Public Cleansing Law, PRTR Law,etc.).
Also, prior to converting land over to otheruses, we do soil test and take the proper
measures against contamination asprescribed by the Soil Contamination Law
that was enacted in February 2003.
As for the planned site of our new power
station in Wakayama, we tested the site
ourselves because it has been used for
waste landfill. We detected a comparatively
high concentration of dioxins (max. 25,000
pg-TEQ/g) in some of the buried
incinerated waste and sludge. We havesought the advice of experts and havetaken measures to prevent the waste frombeing dispersed in the air or run off bywater. Findings have been reported togovernmental authorities and disclosed to
the general public.

Polychlorinated biphenyl (PCB)▲Oil fence

Hot water discharge
Seawater used for cooling at power
stations is cooled to about 7Cß warmer
than the surrounding sea before release.
The water intake port is also located sothat water intake and discharge water do
not disturb marine wildlife.

Measures to prevent noise, vibration and offensive odors■Storage of low concentration PCB(utility pole transformers (March 31, 2004)
Insulating oil
Transformer case
(Unit: 10,000 kR) (Unit: 10,000 cases)
Applicable equipment

1024

Amount stored

5.6

16.5

Amount treated

0.2

0.3

4.2

7.2

Amount scheduled to be stored■Storage of high concentration PCB(high voltage transformers, condensers (March 31, 2004)
Amount stored

5,449

Dioxins
Concerning dioxins, Kansai Electric hastaken various approaches including
recycling to reduce the mount of waste we
generate and subsequently the amount ofwaste that is treated by incineration. We
are also gradually shutting down our
incinerators. In fact, of the 430 that wererunning in 1997, only 14 remained in 2002.
As a result of voluntary measures, it has
been confirmed that almost no dioxin isdischarged from out thermal power
stations.
■Dioxin measurement results (Fiscal 2003)
Combustion Standard values No. offor discharge facilities
capacity(Unit: ng-TEQ/m3N) (Unit: Facilities)
Waste product incinerator

Kansai Electric locates equipment for power
stations and substations on site and as far
away from perimeters as possible. The
foundations underneath this equipment arealso strong. Additional efforts are made toprevent noise and vibration from going beyond
property lines such as by installing silencers
and soundproof walls, and designingequipment for quieter running.
At power stations, Kansai Electric injects
ammonia into flue gas denitrification systems
and electric dust catchers. An automated unit
controls ammonia injection to the proper levelso as to keep ammonia concentration of theflue gas low all the time. And, ammonia
concentration is measured periodically.

PCB, an insulating material used withelectric equipment like transformers, wasdiscovered to be harmful after anoutbreak of Kanemi oil disease in 1968.
Since that time, it has been regulated andcareful handling is mandatory by law.
Kansai Electric keeps it in a special
storage facility. We began treating a low
concentration of PCB in utility poletransformers in full earnest in April 2004.
As for high voltage transformers andcondensers that have a high concentrationof PCB, we are studying plans toadequately treat the PCB by the deadline
specified by law (2016).
The problem of traces of PCB being foundin heavy electrical machinery, etc., is now
being studied by a committee establishedby the government to come up withmeasures to deal with the problem.
Kansai Electric is however properly
managing equipment in which traces of
PCBs were detected.

Result of measurementsof concentrationsof dioxins(Unit: ng-TEQ/m3N)

510.000621020.00075〜0.017

Less than
200 kg/h

540.0000014〜0.082Over
50 kg/h1070.037〜7.5

Over
200 kg/h40IIAddressing Global Environmental Problems

Harmonizing with the Local Environment
Ecological greening method
Kansai Electric is contributing to creating a “green
network” in local areas, working to produce“biotopes” by creating an environment where insects
such as dragon flies and fireflies can live, and build
green areas by the “ecological greening method*”that aims to create environments around thermal
and nuclear power stations that have the effect of anatural forest.
We also contribute to improving the scenery through“rooftop greenery” for relaxation such as the one on
the roof of the Kansai Electric Hospital.

Environmental harmony withelectric power facilities
In the construction and maintenance of electric
power facilities, Kansai Electric takes due
consideration for urban plans and regional
development plans, and strives to design structures
to blend in with the surrounding cityscape as ameans of protecting the scenery and harmonizing
with the environment.

Effective use of hot wastewater
Kansai Electric strives to prove the safety andeffectiveness of hot wastewater by effectively
utilizing the thermal energy in water used to coolequipment at power stations.

■Using for newly hatched fishKansai Electric cultivates important regional shellfish
such as abalone. The cultivated shellfish are released
into the waters near power stations to support the
local fishing industry.

*Ecological Greening Method
In order to grow a near-natural forest in as little time a possible, a mix of saplingsof species suitable for the area are carefully selected and densely planted.

▲Designed as a monument, the smokestack at the Nanko
Power Station lights up different each season.

▲Abalone are attached to oyster
shells and released(Takahama Power Station).

▲*Ecologically planted area around the Gobo Power Station■Using for cultivation of Orchids

Orchids are cultivated and exhibited in a greenhouseequipped with a heat pump heat recovery systemthat uses thermal energy from hot wastewater.

▲High voltage towers use minimal lighting in order to blend into the surroundings.

▲Greening at Nara branch office▲Orchids growing at the Takahama Power Station▲Power lines buried underground▲Visitors calmly watching fireflies at the Himeji No. 1 Power Station

41

TOPICS

Environmental Protection Measures at Maizuru Power Station

While building the Maizuru Power Station that uses coal for
fuel, Kansai Electric is taking various measures to coexist
with the abundant nature, not to mention environmental
protection measures.

▲Power station under construction(Designed to blend harmoniously with the surroundingislands and mountains, the station will resemble a majestic crane.)

TOPICS

Floating PR center that blends in with the scenery

Protection of rare plants

This is the first time we have used boat to house Kansai
Electric PR presentation. The boat fits the image ofMaizuru, which has several important harbors. In addition
to information on the way the Maizuru Power Station will
generate electricity and environmental technologies, thecenter contains an exhibition of energy and environmental
problems.

On the site of the Maizuru Power Station that is currently
under construction was discovered epimedium
sempervirens, an extremely rare species of plant. Kansai
Electric decided to transplant it into a natural forest on thepremises of the power station and monitor growth fromthere.

▲PR center El Marl Maizuru▲Epimedium sempervirens

Reducing land modification in natural areas

Effective use of coal ash and gypsum

The site where the Maizuru Power Station is currently underconstruction is partially located inside the Wakasa-wan
Quasi National Park, therefore it was decided to make gooduse of the different elevations of the terrain to create a2-level site. We were thereby able to greatly minimize theamount of reclamation from the sea and land modificationon the shore. Additionally, only the bare minimum offorested area was felled, which made it possible to preserve
part of the existing forest and nearby tangerine groves.

The coal ash recovered from the electric dust catcher andgypsum recovered from the flue gas desulfurizer are
effectively used as raw materials for making cement.

Effective Use of Dredged Sand for a Tidal Flat

Kansai Electric has made effective use of sand dredged tobuild a pier for the Sakai LNG Center to build an artificial
tidal flat. This is the result of trying to improve the local
environment by creating a habitat for marine life and birds
and to enhance water cleaning function by dredging incooperation with the Port of Hannan project of the Osaka
Prefecture Bay and Harbor Bureau.
A completion ceremony was held in March 2003 under thejoint auspices of Osaka Prefecture and Kansai Electric. The
local mayor and representative of the local fishingcooperative were invited to attend.

International research project“Research of experimental creation of tidal flat in Hannan
district 2”, which is a joint research project involving four
publicly recruited private companies, is currently being
conducted at the artificial tidal flat as part of the “project torestore tidal flats for coastal cities” being promoted by the
National Institute for Land and Infrastructure Managementof the Ministry of Land, Infrastructure and Transport.
The research involves the collaboration of industry,
government and academia, including Osaka Prefecture,
Osaka City University, Independent Administrative
Institution Port and Airport Research Institute, as well as
the National Institute for Land and InfrastructureManagement and private businesses. The results of thephragmites reed community development experiment andmonitoring the tidal flats to see how wildlife has taken to it
are scheduled to be put together for presentation in one or
two years.

▲Artificial tidal flats

42

II

Addressing Global Environmental Problems

Promoting Business Activities Suitable for a Recycle-Oriented Society
Based on the “Kansai Electric Recycling Business Activities Promotion Plan”, along with promoting the “3 R’s” (Reduce, Ruse and Recycle)
and green procurement, the company is promoting activities to achieve zero emission of waste intermediately disposed of as landfill.

Promoting “3 R’s” Activities
Kansai Electric has set an intermediate targetof reducing waste disposed of as landfill to
4,500 tons or less in fiscal 2005 (50%reduction compared with fiscal 2000) and has
promoted reduction and recycling of waste inall business activities.
Results of efforts to deal with industrial waste
Results for fiscal 2003
Disposed of as landfill: 6,476 t
Recycle rate: 86%

The amount of industrial waste disposed of as
landfill in fiscal 2003 was reduced by about
4% in comparison with the previous year. The
recycling rate was also improved by about 1%
in comparison with the previous year. This isdue to the fact that discharge of waste that isdifficult to recycle has been reduced and theeffect of promoting recycling.

Recycling of construction waste

ReduceSuppress production of waste cloth
Results of fiscal 2003
Amount suppressed: About 20 t

We have suppressed production of waste
cloth by renting the waste cloth used forinspection and cleaning from a contract
supplier.

Amount disposed of as landfill

88
10.1

84

87

99

85

(%)

00

■Results of recycling waste materials
from demolition of power stations
Concrete

169,000 t

Asphalt

1,000 tWood

3,000 tMetal

164,000 t

Demolished power stations are Himeji power station (No. 1 - 4), Amagasaki
No. 3 power station, Amagasaki Higashi power station, Kasugade power
station, Tanagawa power station
Overall duration: September 2002 to March 2004

▲Rental waste cloth

86

9.4

Reuse
6.7

0

Recycling rate

Kansai Electric has strived to recycle
construction waste when demolishing small
capacity thermal power stations that began in
September 2002.
The company has strived to effectively use
massive quantities of waste concrete
produced when tearing down buildings on its
own grounds as land grading.

Amount recycled■Amount of industrial waste disposed of as
landfill and recycling rate of industrial waste(1,000 t)

RecycleExample initiatives

01

6.8

02

6.5

0
03
(Fiscal year)

Repair/reuse of materials used intransmission/distribution of electricity
Kansai Electric checks equipment and parts
removed before its life is spent and reuses it
as is or repairs salvageable equipment andparts.

BeforeTanagawa Power Station■Recycling examples
Recycled volume Recycling rate
Desulfurized gypsum
5,600 t96%

Coal ash
6,600 t100%

Heavy/crude oil ash
860 t

100%

Waste oil
2,200 t73%

Metal scraps
16,200 t

Construction materials

Raw materials for cement

Precious metal recovery
Fuel, etc.

95%
Metal recovery

Waste concrete utility poles 100%
15,000 t

Insulator scraps
790 t

43

60%

Roadbed materials■Results of reusing main materials used intransmission/distribution of electricity (Fiscal 2003)
Name

Recycle rate (%)

Concrete utility poles

50

Transformers

90

High pressure glass

51

Steel crossarm

62

After

Tanagawa Power Station after being gradedwith recycled materials

Recycle

RecycleRecycling PCB waste

Recycling gas turbine intake filters

The Waste Disposal Law of 1976 approved ofhigh temperature incineration as treatment for
PCB, but years went by without treatment
advancing.
Together with group company Kansai Tech,
Kansai Electric developed original chemicaltreatment technology that generates nocombustion gases and the concerned
governmental agencies evaluated as practical.
Then, in 1998 when Waste Disposal andPublic Cleansing Law was amended, it wasapproved as one technique for treating PCB.
Today, we are building a treatment facility thatwill apply this technology to the low
concentration PCB of utility pole transformers.
It is also planned to effectively use theinsulation oil - once rendered harmless bytreatment - for fuel, etc.

Fiscal 2003 results
Amount of resources recycled: Approx. 70 t

■Recycle center for utility pole transformers

Kansai Electric completed construction of it
utility pole transformer recycling center for
rendering transformer insulation oil etc, that
contains minute quantities of PCB harmlessand recycling the transformer materials. The
center passed inspection prior to being used
as a facility for disposal of industrial waste by
the city of Osaka in January 2004. After
having all parties involved in the project
confirm that the facility is capable of stable,
uninterrupted operation while providing theoriginally planned performance, safety andenvironmental protection properties. The
facility began operating in April 2004.

After periodically replacing intake filters
installed where gas turbine generators (aircompressors) take in air, the filters arerecycled as metal material and roadbed
material.

Results with efforts to reduce office waste
Offices discharge lots of resource waste
such as copy paper, newspapers,
magazines, cardboard and drink
containers. Kansai Electric actively strives
to reduce and recycle office waste.

Example initiatives

Activities to reduceand recycle office waste
for the entire group▲Intake filter (Himeji No. 1 Power Station)

Sharing of waste 3R information
within the group
In order to share information concerning
waste 3R within the group, Kansai Electric has
prepared a database and makes use ofcompany LAN and the Internet.
The database contains a “bulletin board” thatprovides information about pertinent laws andregulations and “interpretation of laws andregulations” that gives questionableinterpretations of laws and regulations, and“3R examples” that gives an introduction to
3R activities. The database provides thenecessary information in a timely and speedy
manner, and helps promote waste 3R
activities for the entire group.

Kansai Electric has worked to reduce andrecycle office waste at our main officebuilding, Osaka Kita branch office building,
Osaka Minami branch office building, with thecooperation of the owner of the buildings,
Kansai Electric Industrial, Ltd. We received thefiscal 2003 “Superior Waste Reduction
Building” seal* from the director of the Osaka
City Environment Bureau.
*Kansai has received the “Superior Waste Reduction Building” presented forbuildings achieving superior results with reducing and recycling waste five
years consecutively.

■Results of discharging andrecycling office waste (fiscal 2003)(t)

Main office Osaka Kita branch Osaka Minami branchbuilding
office building
office building
Copy paper

189

79

85

Newspaper

105

34

4

Drink containers

28

9

4

Other

14

0

0

Amount recycles

336

122

93

Total amount discharged

544

150

94

62

81

99

Recycle rate (%)▲Recycle center for utility pole transformers▲Database screen▲Superior Waste Reduction Seal (right),
Superior Waste Reduction Building Seal (left)

44

II

Addressing Global Environmental Problems

Treatment of Radioactive Waste
Low level radioactive waste
Depending on their nature, radioactivity ofradioactive gases and liquids produced atnuclear power stations is attenuated byfiltering and storage in tanks. Those
whose concentration of radioactive
substances is low enough are released
into the air or sea while monitoring
radioactivity.
The volume of solid radioactive waste is
reduced by incineration, etc., and theremains are loaded into drums. Afterbeing safely stored, they are disposed ofby burying in accordance withgovernment technical standards so they
don’t affect our living environment in the
future.

■Processing and disposal of low level radioactive waste
Drops well
below discharge
regulations

Gas
Stored in tank until radioactivity
is sufficiently attenuatedLiquidConcentrated
by evaporation

Filter withgas filter.

Release into atmosphere.
Safety check

Effluent isconcentrated

Concentrated effluent
is solidified bymixing with asphalt.

Reduce volume
by thickening

Incineration

Discharge at sea.

Solid
Pack in drum can(solidify)

Safety store
in facility

Safety check

Waste is safely disposedof by burying while making
sure it complies with national
technical standards.

Periodically sample and analyze.
Continuous monitoring ofenvironmental radiation levels(monitoring post)

Seaweed,
grass

Fish

Seabed,soil

Airborne
dustStore underground in
Rokkasho-mura, Aomori.

High level radioactive waste■Processing and disposal of high level radioactive waste
Generation of waste

Processing

Waste

After separating uranium andother useful substances fromthe spent fuel throughreprocessing, high-level
radioactive waste remains.

Storage

DisposalCanisterSolidified glass body

Products

Reprocessing

Spent fuelHigh level radioactive waste produced in
the reprocessing of spent fuel is stored
for 30 to 50 years to allow it to cool. The
policy after that is to ultimately bury it atleast 300 meters below ground. Kansai
Electric the safety of buried radioactive
waste, by scientific prediction using
various scenarios involving theuncertainties of what may happen over on
extended period of time.
At present, the Nuclear Waste
Management Organization of Japan*(approved by the Minister of Economy,
Trade and Industry is making preparations
to select a final disposal site.

Canister

Enriched, condensed waste
fluids and glass are mixed
creating a stable solid
substance inside the canister.

The resulting substances aresafely stored to cool for about
30 to 50 years.

Eventually, the waste isdisposed of in deep stratums
300 meters underground.

Disposal site selection
STEP 1

STEP 2

STEP 3

Select candidate sites forpreliminary studies.
(2005 - 2009)

Select candidate sites fordetailed studies.
(2010 - 2014)

Select sites for
final disposal site.
(2025 - 2029)

Open final disposal site.
(2035 - 2039)*http://numo.or.jp/■Daily life and radiation
Natural dose per person (annual, global avg.)*0.4 from space*0.5 from earth*0.3 from food
1.2 from radon and other such airborne substances

Natural radiation

Monitoring and measurement ofradioactivity and radioactive materials
In order to make sure that the amounts ofradiation produced in the running of ournuclear power stations do not reach alevel where they may become a problem,
radiation and radioactive materials aremonitored.

10

Artificial radiation

6.9

Chest X-ray computer
Sectional examination (CT scan, 1 time)

2.4

0.6

Stomach X-ray(once per year)

Unit: Effective dose (milisieverts)

0.1

0.01

Below
0.001

Dose equivalentfrom nuclear plant

Radiation dose received by the public living near nuclear power stations that is emitted by radioactive waste is less than 0.001 milisieverts per year. This isextremely low compared to the amount of natural radiation received (2.4 milisieverts per year).

45

Establishment of Atomic Fuel Cycle
Having limited natural resources, Japan’s
basic energy policy is to recycle used fuelto effectively recover useful materials
such as plutonium and uranium. The
Energy Basic Plan decided at a ministerial
cabinet meeting in October 2003 clearlystates “promotion of nuclear power
generation as a mainstay power source ofthe premise that safety is ensured” and“promotion of the Pluthermal* Plan as themainstay for the time being” as the energy
policy.
In line with this policy, Kansai Electric isstriving to proceed to aid in establishmentof Japan’s atomic fuel cycle. The company
intends to proceed with its Pluthermal
Plan while obtaining the understanding of
all the people, particularly those living
near nuclear power stations.

■Atomic fuel cycle*Plutonium which has been collected by reprocessing used fuelis mixed with uranium to form MOX fuel (mixed oxide fuels)
and then reused in nuclear reactors (light-water reactor:
thermal reactor).

Geologic stratum disposal
facility (ultimate disposal)

Uranium ore
Refining/changeover

Uranium mine
Uranium/
plutonium

Depleteduranium

Uranium enrichment
Changeover
Recovered uranium

Uranium/
plutonium
High speed breeder
reactor fuel reprocessing

Enriched
uranium

Light water fuel recycling

Plutonium fuelprocessing
Recycle fuelHigh speed breeder reactor
fuel cycle
Spent
fuel

MOX
fuel
High speed breeder reactor

Reprocessing

MOX fuel(pluthermal)

Recycle fuel storage
center (intermediatestorage facility)

Uranium fuel processing
Recycle fuelRecyclefuel

Nuclear power station (light water reactor)

High level radioactive waste

Low level radioactive waste
Low level radioactive waste
underground storage facility

Recycle fuel storage center
The recycle fuel storage center is a facility
for properly storing recycle fuel that canbe reused as an energy resource for acertain period of time until it isreprocessed. About 900 to 1000 tons ofuranium per year is currently produced inJapan. If you take into account thecapacity of the reprocessing plant (Japan
Fuel) being constructed at Rokkashomura in Aomori Prefecture (800 tons ofuranium per year), it shows that additional
facilities for storing recycle fuel awayfrom power stations will be required.

■Recycle fuelUranium 235
4%

Uranium fuelprior togeneration

Uranium 238
96%

Uranium fuelafter generation

Uranium 235
1%
Plutonium
1%

Uranium 238
93%
RecycleProcessing/disposal

High level
radioactive waste
5%

Plutonium
10%
MOX fuel

Naturaluraniumordepleteduranium
90%

Uranium and plutonium can be recovered from fuel used at nuclear power stations (recycle fuel) by reprocessing and used again as fuel.
Radioactive waste that cannot be reprocessed and reused accounts for less than 5% of recycle fuel. The rest of the more that 95% is uranium and plutoniumthat can be reused. Because it is poor in natural resources, Japan must effectively reuse this fuel.

46

II

Addressing Global Environmental Problems

Energy Conservation and Resource-Saving
Activities with Office Supplies

Promotion of Green Purchasing
As part of its green purchasing promotion policy(settled upon in 1999), Kansai Electric has madecompany-wide effort to give preference inpurchasing to products and services that place a low
load on the environment. Green purchasing will be
spread to the entire group beginning with 2004.
Office supplies, etc.
In April 2001, green purchasing was started with officesupplies and targeted the purchase of copy paper, OA
equipment, stationary and documents across the entire
company. The green purchasing target was
subsequently expanded to all office supplies andactivities are being promoted even more aggressively.
■Office supplies green purchase targets and results (fiscal 2003)
Green purchase rate*

Item
TargetOffice supplies(43 items)

Power generation equipment purchases
In June 2002, Kansai Electric adopted Green
Purchasing Guidelines for power generationequipment, hence starting green purchasingfor 84 items in fiscal 2003. The company
has set in fiscal 2004 a target of increasing
the number of items applicable for green
purchasing to 92 or more.

Electricity and water are indispensable toeveryday operations, so at all businesses,
Kansai Electric is using resources
carefully and consolidating efforts to
reduce use. As a part of this effort,
company-wide targets have been set forelectricity, water, copy paper and vehicle
fuel.

■Green purchasing results for major equipment (fiscal 2003)■Electricity consumption of offices

Item

Purchased quantity(1 million kWh)

Consumption

119

117km

Recycled vinyl insulated cable

117

113

17,661 units

Recycled polyethylene insulation conduit (PE conduit)

106

1,829 units

Resin drum spools

22,400 units

Recycled branch guards
Recycled plastic protective plate for buried conduit

6,096 units

Pet bottle recycled grassproof sheet

10,305m2
357m2

Water-permeable pavement (made from used insulators)

Result

100%

（

99%
Breakdown
Copy paper100%
OA equipment (5 items) 100%
Stationary (26 items)
92%
Fixtures and furniture (11 items) 90%

Coordination with outside organizations）*Purchase rate is calculated from price of purchase.

■Work clothes

Kansai Electric has fully adopted work
clothes made from recycled plastic bottles
for all sales offices and power stations.
26,000 sets of work clothes werepurchases in a 3-year period beginning infiscal 2001.

Kansai Electric is also promoting activities
in cooperation with outside organizations
like the Kansai Economic Federation and
the Green Purchase Network (GPN).
Also, as local networks, the Shiga Branch
Office is constructively working with the
Shiga Green Purchase Network, while the
Wakasa Branch Office is participating in
the Green Purchase Network of Fukui.

000Base year 01

02

03(Fiscal year)■Water consumption
3(1000 m )Consumption

1,046

978

901
804

0

00Base year 01

02

03(Fiscal year)■Copy paper consumption(t)Amount purchased

1,001

935

919

904

00Base year 01

02

03■Vehicles

In addition to electric vehicles, Kansai
Electric is aggressively introducing low
emission vehicles (LEV) and hybrid
vehicles to its fleet. In fiscal 2003, of 306
vehicles whose leases were renewed, 280
were replaced by LEV or hybrid vehicles.

▲Representatives of the Shiga Branch Office presenting activities ofKansai Electric at the General Meeting of Shiga GPN (May 2003)

0(Fiscal year)■Vehicle fuel consumption and mileage(kR)

Kansai Electric received the 6th Green
Purchasing Award in November 2003
presented by the Green Purchase Networkfor outstanding green purchasing in theelectric power business.

47

Consumption

Vehicle fuel(km/R)

4,995

4,948

4,775

9.14

9.16

9.41

4,438
9.29

0 00Base year 01

02

03 (Fiscal year) 0▲

TOPICS

Green Purchasing Award

6th Green
Purchasing Award

TOPICS

Kobe Kansai Electric Building receives Environmental/Energy Conservation Building Award

In February 2004, the Kobe Kansai Electric
Building received the Environmental/Energy
Conservation Building Award from the Institutefor Building Environment and Energy
Conservation, which is an outside organization of
the Ministry of Land, Infrastructure and Transport.
This award is presented for buildings with superior
environmental performance and energy efficiency.
The Kobe Kansai Electric Building was rebuilt forsuperior energy conservation and to be able towithstand natural disasters. The environment
friendly building takes advantage of natural energy
such as solar lights and roof water. For air
conditioning, the building uses an Eco Ice ice
storage thermal air conditioning system thatconserves energy, has a CO2 reducing effect and is
economical. The building is designed to makeefficient use of energy and resources.

TOPICSLightThe building is equipped with a solar battery
capable of generating 18kW of electric power.

Heat

The windows are made of double panes ofglass to prevent heat from getting in or out.

Wind

The entire building is naturally ventilatedusing draft power of a radiotelegraph tower.

EnergyThe building employs eco ice to shift 100% of
air-conditioning demand to nighttime. The
building is also designed for effective use ofnatural light. Output of equipment is adjusted
by optical sensors to reduce lighting energy.

Energy source Old glass tiles and glass waste are reused as
filler for the panels of the OA floor.
Water

Well water is used as a source of water for airconditioning and general service water.

▲Kobe Kansai Electric Building

Environment-friendly design of main office building that aims to be amodel building for environmental coexistence

The New Kansai Electric Building (tentativename) which is designed to be a modelbuilding for environmental coexistence
incorporates technologies to conserve
energy and use natural energy.

Effective use of energy(Promotion of energy conservation)

Positive use ofnatural energy

Promotion ofload leveling

Effective use of resources(thorough recycling)

Eco frame

Lighting window

Solar power generation

Waste conveyor

Lighting window

Solar power generation

Building heat storage

Reuse of wastewater and rainwater

Low-e laminated glass

Natural ventilation

Solid heat storage hot water supply system

Eco material

Climber blindIntelligent lighting

Local air conditioning and heating (using large scale ice storage)

Natural ventilation

Reuse of wastewater and rainwater

Intelligent lighting

Local air conditioning and heating (using river water)

Task & ambient air conditioning
Waste conveyor
Reuse of wastewater and rainwater
Local air conditioning and heating

Energy conserving effect▲New Kansai Electric Building

Compared with ordinary officebuildings,
primaryenergyconsumption on work floors is
reduced by 30%.

■Primary energy consumption
2(MJ/m /year)

Air conditioning

569
586

The New Kansai Electric Building (tentativename) has been selected as the Osaka
Prefecture Heat Island Model Project.

Lighting

Other

about30%

569
351

733
0

339

Ordinary office building New Kansai Electric Building

48

II

Addressing Global Environmental Problems

Environmental Communication
Along with promoting various ecological activities together with local people, Kansai Electric actively promotes face-to-facecommunication activities to enhance work and take advantage of mutual understanding.

Grass-roots Exchange Activites
Everyone s Eco-Friendly Campaign

100,000 People s Eco-Family Campaign

During environment month

Since 1993, Kansai Electric has taken partin the Everyone s 1-2-3 Campaign, whichcalls for participants to plant trees, reduce
paper waste and collect empty cans forrecycling. This success led to the start of
the New Everyone s 1-2-3 Campaign,
which comprises the three activities oftree planting, resource and energy
conservation in the office, and community
beautification. Based on the positive
experiences of these predecessor drives,
we started the Everyone s Eco-Friendly
Campaign in 2000 to promote a variety ofenvironmental contribution activities incooperation with local communities.

In the 100,000 People s Eco-Family
Campaign that has been running since1998, employees of Kansai Electric andtheir families have been doing what they
can at home to conserve energy such as
setting air conditioners to 28Cß andheaters to 20Cß. In 2003, the company
started introducing to the general public
examples of energy reduction activities
and the resulting effect from informationin the company s database, as well asactivities aimed at getting people to think
about energy conservation in thehousehold budget.

In response to the call from theEnvironment Agency (now the Ministry of
the Environment), Kansai Electric madeJune Environment Month in 1975.
Throughout the month, the company
imparts various activities in various
locations where we interact with thegeneral public such as staging
symposiums on the theme ofenvironmental problems with the supportof Osaka Prefecture and Osaka City. In
2003, we expanded the sphere of activities
to group companies, calling it the Kansai
Electric Group Environment Month .

▲Environment Month Symposium▲Plating trees together with elementary school children. In
2003, Kansai Electric planted 20,000 trees in public places
such as school grounds and parks. The company has planted
a total of 337,000 trees since 1993.

▲Leaflets (let and middle) and stickers (right) for the 100,000
People s Eco-Family Campaign▲Clean-up nearby a business site. In 2003, Kansai Electric
staged 308 clean-ups.

▲Guide window to the company s database49

Support for energy andenvironmental education
Kansai Electric creates children s
pamphlets, videos and CD-ROMs that
explain about energy and environmental
problems in an easy-to-understandmanner. Moreover, employees from
Kansai Electric visit schools to talk about
energy and environmental problems as
part of the visiting classroom (staged
about 920 times for 40,000 students in2003). We also give tours of our facilities(about 480 tours for 23,000 persons in2003) and stage seminars for educators.
We also have a corner on the company
website where children can learn about
energy and the environment on their own.

Cooperation with Environmental
Protection Groups

Activities in Local Communities
Clams released at the Mihama Power Station

Tokai Office releases fry

Employees from the Mihama Power Station
released clams into the sea at the nearby
Nyu Beach with the help of elementary
school and daycare kids from the local area.
That day, about 40 persons showed and,after cleaning up the beachfront, released
about 6,400 baby clams into the sea.

With the cooperation of local residents,
the Tokai Office released ayu fry andother fish into the Kiso River as part ofa river environment protection effort.

Kansai Electric believes that partnerships
amongst governments, businesses,
residents and organizations are important
towards developing environmental
protection activities. For this reason, welike working with NPOs as both sides
bring to the table abilities and resourcesthat compliment one another.

▲Environment and energy class for elementary
schools organized in cohort with an NPO

Tree planting by the Hanshin Office

Shiga Office stages Kanden Lake Biwa AID 2004

Staff from the Hanshin Office planted
trees with the help of the Amagasaki
School for the Physically Challenged.
Together with students, they planted
about 560 (13 classes) dogwoods andother types of trees in the city.

With the support of the local
government, the Shiga Office played anenvironment video and staged a piano
concert for about 1,600 students andteachers from local elementary schools
in Minakuchi, Shiga Prefecture.

Jintsukawa Power System Center
gives away flower bulbs

Flower giveaway by the Hokusetsu Office

Employees from Jintsukawa Power System
Center visited daycare centers and welfare centers
for the elderly in Osawano, Toyama Prefecture, togive away sets of tulip and crocus bulbs.

Environmental Cooperation
with Outside Groups
Kansai Electric makes proposals toenvironmental
authorities
andconstructively participates in a wide rangeof research activities through tie-ups withdiverse organizations to note the Osaka
Chamber of Commerce and Industry,
Global Environmental Forum, Kansai, andKansai Economic Federation. The Kansai
Economic Federation is involved withgreen purchasing and appropriate coolingand heating initiatives, to which Kansai
Electric adds its constructive participation.

When it came time to replace theflowers in front of the Hokusetsu
Office, employees gave away flowers,
seedlings and eco goods to people
from the local community.

▲Poster on appropriate cooling and heating

50

II

Addressing Global Environmental Problems

TOPICS Stakeholders' Meeting with Housewives and Students
Kansai Electric places a high value on face-to-face communications with stakeholders in our existence and operations. By listening
to what they have to say, we can find ways to improve our activities and understand one another on a better plane.
From March to July 2004, we held stakeholders' meetings with housewives and students from the Kansai. Like last year, NPO
e-Being agreed to serve as coordinator of cooperation between industry, government and academics. Participants toured ourfacilities and shared their opinions with us at the ATC Green Eco Plaza.

Talking with Housewives

Talking with Students

In March 2004, three encounters were staged with housewives from the Kansai. They
visited a thermal power station and observed a visiting classroom so that they could share
their opinions on what energy and environmental problems there were in their worlds andwhat each family could do about them.

As we did last year, students from theKansai were invited over a period fromMarch to December 2004 to help us
prepare the Kanden Environmental Report,
which reports on our environmental
activities. Since reports tend to be overly
technical, they provided their opinions onwhat ordinary people want to know andhow that information can be conveyed in aneasy to understand manner, from theposition of the reader.

▲First encounter: Housewives visit Kanden El Heart (left) where physically challenged persons
are given opportunities to work, and the Nanko Power Station (right), a key thermal power
station in the Kansai Electric grid.

▲Second encounter: Housewives observe a visitingclassroom at Shukugawa Elementary School.

▲Third encounter: Housewives share their opinions of
the activities with Kansai Electric staff.

Participating housewives (Honorifics omitted)
Setsuko Amano, Michiko Iwamoto, Natsue Kuwajima, Kazuko Takamura, Yoshiko Takenaka, Yuriko Nakagawa, Masako Fuji,
Ikuko Mitsuyama■Some of the major comments●I was impressed how persons with physical disabilities worked in proportion to theirabilities and with complete respect for one another.
●The visit to the power station gave me the opportunity to think about energy again.
Energy is absolutely necessary for a convenient lifestyle, but we must all think ofways to provide it and use it without burdening the planet.
●I was hoping to hear more about nuclear power and new energy sources rather thanjust thermal power generation.
●I was left thinking that it would be a good idea to make it a habit with children toconserve energy in daily routines and activities.
●There is a substation and many utility towers near my home, so I was naturally
worried about electromagnetic radiation, but after hearing the talks by Kansai Electric,
I feel a lot safer now.
●I had wanted to see more what people are doing to save energy in their daily
lifestyles.

51

Participating students (Honorifics omitted)(Above photo, from left)
Koki Ohashi and Koichiro Ogata, Doshisha University Faculty of Economics
Kodai Shirayama and Naoko Kajimoto, Osaka University Graduate School
Daisuke Hirasawa, Ritsumeikan University College of Letters
Akiko Matsumura, Doshisha University Faculty of Economics(Not pictured)
Natsuki Tanaka, Kwansei Gakuin University School of Economics
Masashi Toyama and Hirokazu Yamaoka, Ritsumeikan University College ofInternational Relations
Nanako Tenjin, Doshisha University Faculty of Economics
An Hui Gyeong, Kyoto University Graduate School of Global Studies■Some of the major comments●It would be better if, in the beginning,people could see how wasting
electricity
affects
theglobalenvironment.
●I would like an introduction to things
that ordinary people are doing about
the environment and energy.
●Whatever content is included, we needa format and composition that keeps
the reader interested.

I want to express my appreciation to everyone who
participated in this project: to the students for sharing theirpains and wisdom, the housewives for seriously conveying
their concerns and the people from Kansai Electric for humbly
subjecting themselves to this attack. It was a great pleasure to
be a part of this activity.

Momoko Sugahara, NOP E-Being

Comment from Kansai Electric
We continued this style of environmental communication from last year. It was our hope
this year to have the participating housewives talk to others far and wide about energy andenvironmental problems. Though we extensively publicize our environmental activities
through our branches and offices, we strongly sense the importance of talking directlywith customers. Kansai Electric will continue this style of environmental communication inorder to gain an understanding of all of our business activities.

From the Perspective of an Environmental NPO- Opinion-Sharing Meetings with Kansai Electric
The environmental communication activities of Kansai Electric expanded this year bytalking not only with students but also housewives and adding the Kanden L-Heart
workplace for physically challenged persons to the power station tour.
Seeing is believing. Taking the time to talk face-to-face brings out the truth. Because it's
real and not virtual, it has meaning and impact. It was a great opportunity to experience
what students and housewives are aware of, and understand and relate to Kansai Electric
as if up-close when it can seem so distant.
It is important to take dialog with the whole span of stakeholders to a deeper level as itprovides a portal for environmental communication. Moreover, I hope Kansai Electric
openly accepts what society expects of it as learned from this type of communication andthat it serves them not only in dealing with environmental problems but also in fulfilling
their social responsibilities more broadly as a company.

■Our application of comments●We added an illustration that gives afull picture of the flow from energy
production to consumption and how it
relates to global warming at each stage.
●We introduced activities done in thehome such as energy-saving and theeffect they have.
●We gave our questionnaire a format
that made it seem like we wereconversing with the customer.

NPO E-Being
Director: Takeo Inoue(Environment counselor, alternate EMS inspector, etc.)

Takeo Inoue
Director, NPO E-Being

Tel: (06) 6614-1731
URL: www.e-being.jp

52

II

Addressing Global Environmental Problems

Developing the Eco-Business
The Kansai Electric Group has strived to carry out environmental protection activities such as forestation and environmental assessment. Kansai Electric has created a
new “eco-business” by taking advantage of its expertise and management resources, and is aggressively promoting environmental recycling projects and so on.

Kanden-el-farm, Inc.
Recycling of driftwood collected from dam reservoirs■Kanden EL-Farm concept
Unused natural resources

Kanden-el-farm, Inc. was the first venturecompany to come from Kansai Electric’s
Entrepreneurial Opportunity System. Theirbusiness is to recycle driftwood and leaves
collected from dam reservoirs, lumbered
wood from the local area and tree
trimmings. Their main products are a soil
improving agent known as EL-Compo anda cultured soil called El-Farm 2. They also
have developed and are selling a gardening
pot set called EL-Pianta.

Waste treatment

Dam driftwood, grass and leaves,thinning waste, pruning waste

EL-Farm

Farm

Soil

(Bioregion)
RecycleKanden EL-Farmconcept was awarded
the Good DesignAward for the businessmodel section.

Local area

Soil improving agent,cultured soil

Livestock litter(EL-compo, EL-Farm 2)(EL-Wood)

Planting base (EL-Farm 1)

Fertilizer material (EL-Chip)

KANDEN GEO-RE Co., Ltd.
Purification of contaminated soil
KANDEN GEO-RE, Co., Ltd., was establishedin October 2003 in cooperation with Kobe
Steel, Ltd. Using the first-of-its-kind lowcost, efficient purification systemdeveloped in cooperation with KOBESTEEL, LTD., KANDEN GEO-RE has begun
participating in the soil purification
business. The company will someday
provide various services ranging fromtesting/analyzing soil and consulting topurification and sales of purified soil.
The purification plant built in Amagasaki
City in Hyogo Prefecture has been in
operation since the end of September
2004.

■Uninterrupted treatment system that combines “cleaning” with “heat treatment”
Contaminated soil
Heat treatment system

Concentration of contaminationHigh

MediumHeat treatment

Low

Detoxified at high temperature(approx. 1,100˚C)
Cleaning system

3%

Fine particulate

Cleaning
Friction with soil particles andthe various stages of cleaning
provides reliable purification.

Ashes are transported
to place ofultimate disposal

Reuse
27%

(Sold as groundconditioner)

Purified soil
(Rough to medium
particulate)70%

Recycle rate
97%

Kanden-Ecomelts Co., Ltd.
Recycle polystyrene
Kanden-Ecomelts Co., Ltd., was establishedin December 2002 as a venture company
to recycle polystyrene contained in waste
such as Styrofoam. Kanden-Ecomelts
dissolves and makes pellets ofpolystyrene from Styrofoam products,
etc., that used to be incinerated or
disposed of as landfill and sells them as araw material for plastics.

■How waste polystyrene is made into raw material for plastics
Kanden-Ecomelts

Solvent supplier

Manufacturers

Polystyrene is separated fromsolvent.

Sales and recovery
via dealers

Use solvent todissolve styrofoam

Recovered as gel
Recycle plant
Polystyrene issold as raw
material forplastics.

ゲル

Pellets

53

Solvent

Processed into Eco Melts solvent

MOSS WORKS KANDEN CO., LTD

KINDEN CORPORATION

Kanden Gas And Cogeneration Co., Inc.

Production and sale of rooftop garden products

Development of new energy business

Developing the “energy services company” businessIn recent years, the heat island phenomenon has
gotten worse in large urban areas, yet one
solution that is grabbing attention is the rooftop
garden. MOSS WORKS KANDEN sells rooftop
garden products that utilize a lightweight andconveniently portable “growth mat” for growing
sedum and lichens that are strong against heatand require little maintenance. Their nursery is
located on the grounds of the Tanagawa No. 2
Thermal Power Station.

KINDEN CORPORATION is actively involved in
new sources of energy that are friendly to theenvironment. The company is working on a wind
power electricity generation system that includes
everything from site surveys to design,
procurement of materials, construction andmaintenance, and has continued to show results.
In fiscal 2003, construction of a 2,000 kW wind
power electricity generation facility, the largest inJapan, was completed. A wind arm capable ofproducing total output of 9,000 kW (Mushigamine
Wind Power Station, Ishikawa Prefecture) iscurrently under construction and is scheduled forcompletion in the fall of 2004.

Kanden Gas And Cogeneration (Kanden GASCO)
sells gas for Kansai Electric and proposes the bestenergy system to customers. As a part of theirbusiness activities, they are involved in ESCO
(Energy Services Company) business. They are
helping customers to save energy by proposing thebest energy system for their needs and by providingthem with total energy support. In a public bidding
for work at the Osaka Emergency and General
Treatment Center, Kanden GASCO was selected as
the best proposal.
※http://www.k-gasco.co.jp/■Business image
ESCO businessAll contracting byKanden GASCOEnergy-saving
effect confirmed
Operation management and maintenance

Verification of reduction

Renovation work

Energy services contract

Design draft proposal

Detailed energy evaluation

KANSAI ENVIRONMENTAL ENGINEERING CENTER CO., LTD.

Memorandum

Preliminary evaluation▲Rooftop garden at Itami Airport

Energy-saving
effect guaranteed▲Wind power electricity generation equipment at Hotel New Awaji (2,000 kW)

Developing soil and ground water pollution testing andrecovery business Developing recycling business
As the Nature Recycling Promotion Law has gone
into effect, the KANSAI ENVIRONMENTAL
ENGINEERING CENTER CO., LTD., has come toplay an important role in preserving wildlife
diversity. The company has collected basic dataand conducted surveys of the current situation
create and maintain/manage, restore andpreserve the natural environment and ecosystems
that have been lost including rivers, forests,
wetlands and mountains. Assessments andstudies of characteristics of the naturalenvironment, the ability of nature to recover fromdamage and the delicate balance of ecosystems
are conducted based on the data obtained.

The Kanden Kogyo, Inc
Developing the air conditioning filter business
Kanden Kogyo cleans medium performance air
conditioner filters for buildings and factories byultrasonic wave and reuses them. With Kanden
Kogyo technology, filters can be washed 3 to 5
times. This reduces waste to 1/3 - 1/5 and helps
to cut costs that normally would be spent on newpurchases.
This initiative has received high acclaim, and thecompany was awarded the “Osaka Environmental
Award, Incentive Prize” for fiscal 2004 by the
Osaka Citizen’s Council (headed by the Governorof Osaka Prefecture).
The Kansai Electric Group consisting of 29 companies
that support the electric business was reformed as 12companies on October 1, 2004 (see page 81).
KANSAI ENVIRONMENTAL ENGINEERING CENTER
CO., LTD., mentioned on the left was reformed as“THE GENERAL ENVIRONMENT TECHNOS CO.,LTD.”, and The Kanden Kogyo, Inc. was reformed as“Kanden Plant Corp.”▲Wetlands measuring equipment. Seed traps, etc.

▲Automatic ultrasonic filter cleaning machine

54

III

Constructive Activities for the
Advancement of Supporting Communities

Contributing to Society as a Corporate Citizen
With our business deeply rooted in local communities and lifestyles,Kansai Electric is more than happy to work with local
communities andcontribute in whatever way we can.

Welfare for the Physically Challenged
Our wish is for a society where everyone,
whether physically or mentally challenged
or not, can feel the joy of life. In thisregards, Kansai Electric has activities
targeted at a "world where people can live
without emotional barriers". At "Kanden
Collabo Art 21", Kansai Electric works incooperation with the "Tanpopo no Ie" andsocial welfare councils from various areas
to support the artistic activities ofphysically challenged persons in the
Kansai area. Kanden Collabo Art 21 gives
people afflicted with physical disabilities achance to exhibit their artwork and receive
awards.

Various Modes of Interaction
Rooted in Local Communities
All of Kansai Electric’s business locations
interact with the communities that
support them as a way of making thecompany more familiar to customers.
This includes having employees volunteer
to help manage local festivals andsporting events, as well as providing
electric vehicles that generate no gas
emissions for marathons, and more. The
company also cooperates with local
residents and citizens groups across a
broad range of clean-up activities aimed
at environmental beautification. Not only
do we help clean up around our businesssites but also in scenic areas, along
beaches and rivers, and around social
welfare facilities in the local area.

▲Mihama Itsuki Marathon■Main Activities for Local Communities▲Clean-up activity

Cooperation in marathons and other events▲Kanden Collabo Art 21

Support for the Arts and Culture
Every year, Kansai Electric sponsors
concerts in various communities so that
local residents can enjoy classical music
and opera performed by orchestras andtroupes from the local area. This is one
more way that the company shows its
appreciation to customers and, at thesame time, allows us to support culturalactivities in the Kansai.

Kansai Electric employees volunteer
their time to help organize the Mihama
Itsuki Marathon and a number of otherevents. In addition to this, the company
lends electric vehicles from our fleet for
use in the Ujigawa Marathon, Kakogawa
Marathon and Biwako Jogging Concert.
Cooperation in local and traditional events
Kansai Electric is intricately involved
with a broad spectrum of the local
community, which includes ourparticipation in summertime andtraditional festivals such as Kobe
Luminarie, Kyoto Aoi Matsuri andTsumago-shuku Bunka Bunsei Epoch
Procession.
Clean-up activities▲Kanden Classic Special

55

P-ORITO

Kansai Electric helps to clean up scenic
areas such as along the Kino River inWakayama Prefecture and Suma Beachin Hyogo Prefecture, as well as taking
part in the clean-up crew for special
events like the Tenjin Festival of Osaka.

▲Volunteering for outdoor eventSupport for Volunteer Activities ofCompany Employees

Environmental Activities in
Cooperation with Local Communities

In order to support employees thatspontaneously give to society throughvolunteer activities, Kansai Electric has asystem whereby employees can take time
off to participate in volunteer work. The
company also has a gift matching
program and awards employees for theircontributions to society. And, thecompany provides information aimed at
encouraging such activities.

Kansai Electric cooperates with local
communities and groups via a broad
range of activities that enable both thecompany and participants to think about
the importance of environmental problems
and what each individual can do to help.

Holidays taken for volunteer activities (fiscal 2003)
130 activities for a total of 198 days
Kansai Electric recognizes as special leave half
or all of the working days within an annual limitthat employees take off to participate in social
contribution activities that meet specificrequirements.

Matching gifts (fiscal 2003)
11 instances for a total of ·1.04 million

Spreading awareness about energy conservation
On our website, Kansai Electric has added
a corner entitled "Energy-saving Solutions:Housewife Challenger" that offers anentertaining way to learn about energy
conservation. The company also directs a
lot of effort into publishing pamphlets andproducing PR items. And, there is still abroad range of activities where we are
spreading the word about energy-savingsuch as by advertising in the mass-media
andin-house
publications,andcosponsoring exhibits on efficient energy
utilization in cooperation with The Energy
Conservation Center, Japan, and others.

Support for test research andinternational exchange
Kansai Electric provides grants for test
research and international exchange
activities to researchers from universities
and institutes in the Kansai through theoffices of the Kansai Research Foundation
for Technology Promotion (KRF). In the
twelve years since their founding to 2003,
KRF dolled out 481 grants worth
approximately ·500 billion. Kansai Electric
helped to found the organization in 1992
and has since been a major supporter of
their work.

▲Grant presentation ceremony (Courtesy of
the Denki Shimbun Newspaper)

Kansai Electric matches the donations that
employees make individually or throughworkplace fund-raising activities to support
public organizations that meet specificrequirements.
▲Website and PR items about energy conservation
http://www.kepco.co.jp/sho-ene/

TOPICSTaking Part in Flood Recovery Efforts in Fukui

In July 2004, torrential rains broughtvery grateful to our employees for having

flooding to the Reihoku area of Fukui

come so far to help.

Prefecture. Employees from the Wakasa
Office and offices and affiliates under thejurisdiction of the Kyoto Office made their
way to the stricken area to help in therecovery effort. Work involved removing
debris and mud from roads and homes, andclearing away destroyed furniture, home
appliances and tatami mats so that residents
could get back to a normal way of life as
quickly as possible. The local residents were

▲Recovery work

56

IV

Building Respect for Human Rights
and a Happy Workplace Environment

Respect for Human Rights
The Kansai Electric Group wants to have a proper understanding of the human rights of each and every employee, and dowhat it can, as a business, to create a company and society free of discrimination and strongly against sexual harassment.

Basic Policy on Human Rights
In order to eliminate discrimination of all
kinds including Japan’s dowa issue andrecognize our social responsibilities as acompany, each and every employee musthave a correct and profoundunderstanding of human rights. Kansai
Electric is aggressively involved as abusiness in creating a happy rewarding
workplace, building attitudes that do nottolerate discrimination and ridding societyof discrimination. Kansai Electric
understands international standards forhuman rights and takes it seriously toeliminate forced labor and child labor, andprevent sexual harassment in theworkplace as well as discrimination
against HIV carriers. We will continue tostrengthen cooperation within the groupand enhance human rights awareness inall group companies through the supportof awareness activities and more.

Human Rights Awareness
Development for All Employees
Kansai Electric continues to impart
education on human rights as anawareness activity for the entire
workforce. In fiscal 2003, 23,145 persons
took part in the program. Moreover, otherefforts were made to raise awareness ofhuman rights such as announcing Human
Rights Week and staging a contest to
search out human rights slogans, which
received 9,430 entries. The winner was"Get a grip on discrimination by not
feeling or saying anything discriminatory."
Similarly, a variety of awareness activities
will be promoted in 2004.

▲Human rights awareness poster▲Jinken human rights awareness publications■Promotional System
Kansai Electric Dowa Education Promotional Council
Member from individual organization
Member from individual organization

Council head

Member from individual organization
Member from individual organization▲Human rights seminar■Human rights education (fiscal 2004 plans)
Activity

Description

Awareness and education
for all employees

Educational opportunities will be offered to all employees at least once a year. Programs
will be organized by division and level.

Development of internal humanrights promotional leaders

In order to develop leaders for promoting internal education, people will be sent tooutside seminars, etc.

Questionnaire on humanrights awareness

A questionnaire will be used to understand the level of employee understanding of
human rights issues. The data will be utilized in future activities and to create a happy
workplace environment where human rights are respected.

Activities during
Constitution Week andHuman Rights Week

As a part of awareness activities, seminars and a human rights slogan contest will bestaged. Human rights awareness will be promoted by making these learning
opportunities available to all employees.

Review internal practices

If daily practices require improvement from the perspective of human rights, they will bequickly corrected to raise awareness.

Information provision,
support and cooperation
for group companies

Information, support and cooperation will be constructively provided to group companies
in order to further enhance human rights awareness.

Council deputy
Member from individual organization
Member from individual organization
Director

Member from individual organization
Member from individual organization

Promotional councils of
branch offices, etc.

57

Promotional councils of
supporting companies

Safety and Sanitation Activities
The safety and health of our employees is one of the foundations for our existence as a company. That is why Kansai Electric
is endeavoring to build a workplace where employees can work safely and maintain good health.

Safety and Sanitation Management
Policy and Action Plans
In order to build a corporate environment where
employees can work safely and maintain their health,Kansai Electric is endeavoring to eliminate accidents
of all kinds and inject vitality into the workplace.
Specifically, the company fully complies with the
Law on Industrial Safety and Hygiene and all
associated regulations, but on top of this, we have
our own safety and sanitation management policy
and action plans, and develop activities on our own.
2001 - 2004
Main Points of Kansai Electric s Policy on Safety
and Sanitation Management
Safety Related
1. Preparation of a solid base for the management of safety
2. Encouragement of activities that boost safety incooperating companies
Sanitation Related
1. Promotion of mental healthcare for the age of competition
2. Promotion of supportive measures that assist personal
responsibility for one s health
3. Strengthening of foundations of our health support
systemSafety and Sanitation Council Meetings

Safety and Sanitation Activities
Accident prevention measures and education

Dealing with the human factor

To prevent occupational accidents, Kansai
Electric has built a corporate environment
with events and education for improving thesafety of equipment and raising safety
awareness. As a result, the company s
annual rate of on-the-job accidents is lower
than the national average. Moreover, we willcontinue to devise activities and dedicate anincreased effort to accident prevention.

If an accident occurs, it is analyzed, measures
are studied to prevent reoccurrence and thenthose measures are developed horizontally
across the company. Moreover, all businesssites impart human factor training at safety
and sanitation meetings.

■Accident frequency rate
Accidents

2.00

National average

1.80

0

94

0.19
99

1.77

0.22

0.16

01

02

1.78

0.09
00

0.37

03 (Fiscal year)*Accident frequency rate: Indicator of accident frequency widely usedaround the world. It is calculated as the number of total accidents
resulting in missed days of work per 1 million working hours.

Mental healthcare is extremely importantbecause of the growing stress in society. To
counter stress-related problems, Kansai
Electric provides education in mental
healthcare and counseling services.

■Accident severity rate
Accidents

National average

Kansai Electric

Support for personal health management

0.20
0.18

0.180

0.14
0.13

0.010 0.007

A wide range of safety activities have been andcontinue to be developed in order to build a safety
net around the Kansai Electric Group . This safety
net serves the purpose of guaranteeing the safety of
everyone involved with us including personnel fromgroup companies, contractors and customers. Morespecifically, a meeting is held every year to promote
the safety net. At this meeting, representatives fromacross the Kansai Electric Group share opinions on
how to eliminate accidents. Unfortunately, despite
these efforts, personnel of a cooperating company
were killed and injured when a secondary steam pipe
ruptured at the Mihama Power Station this year. To
prevent this and other kinds of accidents fromreoccurring, the cause and preventative measures
will be carefully examined.

Kansai Electric

1.79

Mental healthcare
0.32

Every month, labor and management meet as the
Safety and Sanitation Council to discuss mattersconcerning safety and sanitation. The meetings aim
to build a corporate environment where employees
can work safely and maintain their health.

Safety Activities of the Kansai Electric Group

1.82

Driver s licenses required
Before anyone can drive a company vehicle,
they must go through training and testing. The
company s system for ensuring safe driving
provides also for periodic follow-up, so thatabsolute safety is ensured when our vehicles
are on the road.

0

94

99

0.12

0.002 0.005
00
01
02

0.12

0.011
03 (Fiscal year)

Accident severity rate: Indicator of accident severity. It is calculated as
the number of total days of work missed because of accident per 1
million working hours.

TOPICS

From the viewpoint of preventing habitualdiseases such as hyperlipemia and high bloodpressure, Kansai Electric provides healthguidance that encourages regular exercise andgood eating habits, as well as support for
those who want to quit smoking. These efforts
are aimed at helping employees maintain andimprove their health.

Cross-Company Safety and Sanitation Conference

A Summer Safety and Sanitation Campaign
was staged during the scorching heat ofJuly and August as an activity for helping
employees maintain their health in this hot
period of the every year. The campaignbegan on July 1 with a Cross-Company
Safety and Sanitation Conference that
focused on raising awareness of safety andsanitation, and build feelings of solidarity.
▲Cross-Company Safety and Sanitation Conference

58

IV

Building Respect for Human Rights
and a Happy Workplace Environment

Equal Opportunities of Employment and a Friendly Workplace
In line with related laws, the entire Kansai Electric Group undertakes activities that ensure "fair and impartial employment
opportunities" based on individual abilities and suitability, and that "build a friendly workplace".

Thinking on Human Resource
Activation Initiatives

Promoting Equal Employment
Opportunities for Both Men and Women

Improving Desire and Enthusiasm

Throughout the work cycle from hiring toretirement, Kansai Electric uses people
indifferent of gender. Particularly since1986, following the enactment of the Equal
Employment Opportunity Law, the scope ofwork handled by women has expanded toinclude the constructive deployment of
women in equipment operation andmaintenance jobs. Moreover, after thatsame law was amended in 1999, we formed
a working group for women employees toshare opinions and started sexual
harassment counseling services, as part of agreater effort to create an employment
environment in which women can fully
exhibit their abilities.
Kansai Electric will continue to utilize ourhuman resources indiscriminate of gender,
award job opportunities based on desire andability, and determine promotions based on
performance.

Kansai Electric rebuilt the personnel systemon the concepts that "Things will change if
you try," "You can do it if you want it," and"Stability and security come from a hard
day's work." Our activities are directed atmaking all employees feel enthusiastic
about their work and their position as anindependent member of society.
Training an Independent-minded Workforce
Training is systematically imparted
according to employee ability with theobjective of improving disposition, attitude
and skill, and acquiring and enhancing thespecialized knowledge for assuredly
executing work. Our end target is a
workforce of strong- and independentminded people.

Workers’ opinions

Employing the Elderly
In April 2001, Kansai Electric launched thee-Staff Program that rehires persons who
are approaching retirement age. The
program replaced an earlier rehiring
program started in 1996. Broader in scope,
the new support program offers persons
aged 60 and over who still have a strong
desire to work a place where they can apply
the knowledge and experiences they haveaccumulated, hence helping them to lead amore fulfilling life. Since the program's
inception, we have rehired about 20 retirees
every year. Kansai Electric wants to continue
to use the program constructively.

Accepting opinions put forth from the workplace

Osaka Kita Branch Office, Osaka Kita Substation,
Kujo Control Center

I'm currently working in operations at a
Control Center. We have three shifts over a
24 hour period to monitor, operate andrestore trouble at substations. Recently, thejob environment for women has greatlychanged, but it is important to upgrade soft
measures so that women doing the night
shift do not feel afraid. I'd like to see acompany that accepts opinions put forth fromfrontline workplaces and that utilizes women
more.

I was picked up under the e-Staff programin May 2003 and am now engaged intransmission equipment tests, which is was
I was doing before retirement. Everyday, I
am happy with the job as a secondary
workplace and carefully, swiftly andaccurately try to handle the job from thecustomer's perspective. It is a great

opportunity to pass on the skill and know-how
I learned to successors. I hope this programis used more in the future.

Keiko Masuhara

Workers’ opinions

New desire

Kobe Branch Office, Hanshin Sales Office,Sanda Network Engineering Center

Toshiaki Yamashita

59

Employing the Physically
Challenged
For some time now, Kansai Electric hasconstructively sought to employ thephysically challenged. Two specific efforts
have been to create an OA operator position
and found Kanden L-Heart. As of June 2004,
1.92% of our workforce was physicallychallenged, which surpassed the mandatory
minimum of 1.8%. The company will makeevery effort to employ physically challenged
persons as a means for encouraging theirautonomy and participation in society.
■Percentage of physically challenged
in the workforce
%

2.0

1.88

1.97

1.94

1.92

02/6

03/6

04/6 Year/Month

1.5
1.0

0

01/6

Support for Lifestyle Choices of
Employees
Various Working Schedules
In order to support a comfortable lifestyle,Kansai Electric operates a flexible holiday
system. The company has introduced a longvacation system for employees to refreshand enjoy themselves, as well as a flexible
time system in which the employees

TOPICS

themselves choose when to report to work,
which is meant to increase work efficiency.
Moreover, to support a happy and securefamily life, Kansai Electric gives half-days off
and cumulative sick leave.
Retirement Options and Career Change Support
In 1996, Kansai Electric added a volunteer
retirement program from the perspective of
supporting the diverse lifestyle plans ofindividual employees. Currently, employees
age 45 and over can choose when they want
to retire.
Moreover, in order to enhance theautonomy of employees, activate theworkplace and change the atmosphere in
the company, Kansai Electric created acareer change support program in 2001 to
support employees age 30 and older who
want to change their careers.
Childcare and Nursing Support
In line with today's needs, Kansai Electricoffers a variety of choices to support
employees both at work and at home. This
includes leave of up to 3 years, more thanthat provided for in the Childcare andNursing Leave Law, so that employees may
take care of small children or ailing family
members and still have a job to return tolater.
The company is also studying a plan torehire employees who left the company to

Maintaining Stable Relations
between Labor and Management
Kansai Electric has a Union Shop Agreementwith the Kansai Electric Labor Union. For
more than fifty years, both labor andmanagement have worked for the common
goal of "increasing company productivity
and improving work conditions alongsidethat increase". Good labor relations havebeen built on strong feelings of trust. In
order to continue these good relations,
efforts are made to understand one anothersuch as holding management confabs on
company business plans, etc.
■Main management confabs
Management
confabHeld every year to promote a mutual
understanding of company businessplans between labor and management.

LaborManagement
confabHeld every year for labor andmanagement to openly share opinions
about daily operations, etc.

Business
discussion

Held whenever necessary for labor andmanagement to discuss important matterssuch as organizational restructuring, etc.

For a Barrier-free World

Kansai Electric founded Kanden L-Heart on

visited the head office (Suminoe-ku, Osaka),

December 9 (Handicap Day), 1993 as atoured the facilities and purchased plants.

diversified

take care of children. Efforts are being
directed at improving our childcare andnursing support in order to comply withdirectives in the Law on Promotion of Next
Generation Training and Support Measures
enacted in 2003 and to better understandemployee needs.

workplaceforphysicallychallenged persons who wanted to work.
Today, more than 80 persons are engaged in
growing flowers and wrapping products,
which has caught the eye of many both
inside and outside the company. Since its
founding, more than 40,000 people have

▲Flower planting▲Massage60

VTransparent, Open Business Activities

Corporate GovernanceBusiness at Kansai Electric is run properly and efficiently by building a strong company that can beat out the competition
while ensuring transparent and sound business operations.

Strategic Approach to Business Issues
The Board of Directors of Kansai Electricmeets once monthly as well as wheneverdemanded by circumstances. They
discuss and determine importantbusiness matters and oversee theexecution of executive duties. Moreover,in order to maintain a strategic forwardlooking approach to important businessissues, business meetings are held by thechairman, president and vice-president,
and a general affairs meeting is held oncea week for directors where they discuss
important operations and take swift
appropriate action.

■Organization (As of June 29, 2004)

Ensuring Transparent
Sound Operations

Improving Internal Checks

Kansai Electric has corporate auditors
who sit on important meetings of theboard of directors and general affairs
meetings. There, they provide expert
opinions, listen to explanations about
important business matters from thedirectors and examine the state ofoperations and finances of major businesssites, all of which is part of their duty toaudit the performance of directors fromlegal and appropriateness perspectives.
Kansai Electric also appoints 3 outside
directors and 4 outside auditors, whichmakes the majority of the 7 auditors fromoutside the company. (As of June 29,
2004)

For the purpose of ensuring quality andsafety, Kansai Electric formed a Quality
and Safety Council that consists also ofoutside experts. Their job is to improve
internal checks such as the internal audits
performed by the Quality and Safety
Auditing Department and the operations
self-checks performed by the various
departments.

Construction offices
Management offices
Kansai Electric Hospital
Power Systems Engineering Center
Performance Development Center
Quality and Safety Auditing Dept.
Civil Engineering & Construction Dept.

Civil Engineering &Construction Research Center
Energy Utilization Research Lab

Energy Center
Fossil Fuel Center
Thermal power stations

Research & Development Dept.
Power Engineering Research Lab
Fuel Dept.

Energy PR Center
Procurement Dept.

Procurement Center(Wakasa)Affiliated branch

Fukui Officeeneral Affairs Dept.
Environment Dept.

General Affairs Meeting
Chairman

Nuclear power stations

Recycle Center for
Utility Pole Transformers(Tokai, Hokuriku)

Sites and Locations Dept.

President

Affiliated branches
Secretariat

Vice-President &General Affairs Manager

Accounting Dept.
(Tokyo)Personnel Activation

Affiliated branch
Osaka Kita,
Osaka Minami, Kyoto,
Kobe, Nara, Shiga,
Wakayama, Himeji

Planning Dept.

Board of Auditors

Group Business Promotion Dept.
Business Improvement & IT

Information &Communications Center

Power Systems Business Dept.

61

Thermal Power Operations Dept.

Thermal Power Center

Nuclear Power Operations Dept.

Heat Supply Center

Customer Relations Dept.

Call Center︶

Local Community Coordination & PR︵

Auditors

Power stations

Branches
Sales offices

Plenty of Opportunities to Communicate with Customers
To ensure absolute fairness in business operations and faithfully fulfill our responsibility to explain ourselves to society, Kansai
Electric increasingly promotes communications with customers and practices business in a transparent and open manner.

Providing Information toNews Organizations

Interacting with Local Communities
at Our PR Center

The news carried by TV and newspapers cangreatly sway how customers understandand perceive us. Therefore, Kansai Electric
constructively provides information to news
organizations through regularly scheduledpress conferences with the president andother means, and quickly and appropriately
responds to news reports in order to releaseand convey accurate information.

In order to gain an understanding about
our business activities and the electricbusiness amongst local communities that
support our operations, and duly
communicate with a broader spectrum ofthese communities, Kansai Electric built
several PR facilities, which today arewidely used by people from the generalpublic.

To Promote Understanding of
Our Business Activities
Kansai Electric releases information throughthe media to promote understanding of all
business activities of the Kansai Electric Groupand to create in the minds of customers a new
business image of a company that supports
the foundations of all lifestyles and continues
to work for customers. The company also
publishes a periodical PR magazine entitle
Watto that introduces our business activities
and addresses topics that concern lifestyles
and local communities. Kansai Electric also
produces a downloadable magazine called
Insight - The Keyword to Unraveling the Timesfor opinion leaders.

* http://www.kepco.co.jp/pr/

Interaction on a wall
The El Park Ohi, the PR facility of the Ohi
Power Station, has every year since 1994
put on a Photo, Canvas and Print Contest
in which elementary school children enter
works that are free, imaginative, fun andenriching. The wining work is painted on
the front wall of the facility as a muralsome 6 m high and 8 m wide. People
from far and near come every year to see
the prize production.

Kansai Electric stages various events topropose eco-friendly, safe, stable,
convenient and comfortable lifestyles tocustomers.
■Events
Event

Description

Lifestyles with
Electricity Fair
(April - June)

Proposes levels of affluence that areeasily attainable with electricity, byshowing electric water heaters, etc.

Heat Storage
AC Fair(May or June)

Proposes ways to use
electric energy such asheat storage systems, etc.

All ElectricCampaign(Oct. - Dec.)

Promotes the all-electric
home centered on IH
cooking gear, etc.

▲Lifestyles with Electricity Fair

▲Winners of the Photo, Canvas and Print Contest

TOPICS▲PR magazine Watto

Customer Events▲Heat Storage AC Fair

Kanden e-Patio Campaign

Kansai Electric launched the Kanden ePatio Internet members’ club in July 2002.
Taking advantage of the instantaneousinteractive nature of the internet, the clubprovides all kinds of information on
events, lifestyles and the Kansai ElectricGroup via e-magazines and a website(Japanese only). The project also
strengthens the company’s ability to hearfromcustomers
usingInternetquestionnaires, etc.

▲Kanden e-Patio website
www.fururu.net/e-patio/index.html▲Downloadable magazine Insight
http://www.kepco.co.jp/insight/

62

V

Transparent, Open Business Activities

Development of IR Activities

Communication with Customers

Kansai Electric fairly and swiftly discloses
information to all investors. Information isprovided in a number of ways, including
over the internet, to meet the diverse
needs of a diverse investor makeup that
includes institutional investors both inJapan and overseas, private investors andpublic organizations. Moreover, thepresident holds explanatory meetings andthe president and directors periodicallytravel throughout Japan and overseas tomeet with investors. Corporate executives
make a constructive effort to talk andlisten to investors. And, in an attempt tobroaden the contacts with private
investors, explanatory meetings are being
held for brokers from securities
companies.

The Kansai Electric website posts thecontent of press conferences as well as
messages from the company tocustomers. It also enables inquiry by email as one of many means for initiating a
dialog with customers. Internally,
opinions and wishes regarding ourbusiness activities that employees hearfrom customers are accumulated in our
intranet under the title of "Dumbo no Koe"
(approx. 1.27 million in 2003), and sothey are made known to management.
Information is shared within the company
in order to improve operations. Moreover,branches and affiliated branches hold"energy confabs". While sales offices
stage "service confabs" to hear the viewsof experts and opinion leaders from thelocal area.

■Stockholder makeup (As of March 31, 2004)
Corporations, etc.
6%

Securities companies
1%* Corporate website
http://www.kepco.co.jp/

Communication via Our
Environmental Report
We use the opinions that readers provide
us through the questionnaire at the end of
this report as reference for environmental
activities and to improve the report itself.
Impressions of our 2003
Environmental Report■I think this (2003 Global Environmental Action)
report is:
Difficult to understand4%

Average29%
Easy to understand67%

n = 146 responses■How would you rate Kansai Electric’s
environmental activities?
Not very good 1%

Very bad 0%

Foreign institutional
investors
11%
Governments andpublic organizations
13%

Private investors, etc.
39%
Good
42%

Very highly
57%

Financial institutions30%

n = 144 responses■Standout Opinions and Our Response
I think this (2003 Global Environmental Action) report is: (Reason)●It would good to have articles where we can see someone’s face like an interview. ●I’d liketo see more said about new energy sources. ●A clear explanation is needed on the safety of
nuclear power and radioactive waste. ●The digest should be even simpler. ●I wish you
would make it easy enough for children to read so that it could be used as a teaching tool.

▲Explanatory meeting

How would you rate Kansai Electric’s environmental activities? (Reason)●I want you to ensure the absolute safety of nuclear power and disclose all information aboutit. ●You should promote new energy sources such as wind power more. ●You should domore PR for residents and the general public. ●I want to see more research into CO2
reduction technologies. ●I was impressed by the eco-business. ●I’d like to see a greater
effort made to protect ecosystems by planting. ●You should increase the greenery,▲Annual Report (left),Fact Book (right)▲Company Profile

63

The progress made with these opinions is reported herein and on our website. At Kansai Electric,
we want to use opinions like these as reference for continuously improving our activities.

Promoting Proper Understanding
about Nuclear Power
More than half the electricity provided by
Kansai Electric is generated by nuclear
power. Nuclear power is today anessential element of the modern lifestylein Japan. At Kansai Electric, we believe it
important to gain the public’s trust of
nuclear power and have a variety ofactivities aimed at deepening ourcustomers understanding of it.
Activity development■Direct communication

The electric utility industry has put downroots in many local communities. That’s
why we believe it important to send staff
to talk directly with residents in areas
where we have operations and explain tothem about nuclear power, and energy
and environmental problems. In 2003, ouremployees made 920 visits to schools
and 490 to neighborhood assemblies andbusinesses.
In the Wakasa area where Kansai Electric
operates several nuclear power stations,staff goes door-to-door in the community
to report the status of operations at thepower stations so as to put a face of thereporting we do.
Furthermore, since seeing is believing, we
give tours of our power stations topromote an understanding of electricity byletting customers actually see what we do.
In 2003, 74,000 people visited us. If you,
too, are interested in touring our facilities,
contact our nearest Kansai Electric sales
office.

■Cooperating in exchanges between
production and consumption areas

Employees from Kansai Electric
participate in the exchange activities of
the Fukui Women’s Energy Club, a groupof women opinion leaders who live in anelectricity production area, and the Ere
Club, a similar group from a consumption
area. These particular activities address
nuclear power and future energy
problems. Also, as of 2003, Kansai
Electric had sponsored the KandenChildren’s Summit twelve times. At thissummit, children from production andconsumption areas interact and learn
about electricity and each other’s homethrough hands-on learning experiences
and tours of power stations.

【Main activities】●Joint planning and publishing of
nuclear power PR (Exhibits at Kinki
University, etc.)●Providing information on nuclear power
via websites and pamphlets●Awareness activities for members
through lectures and seminars▲Top page of Kansai Nuclear Power Information Net Surfing website
http://www.kgj-net.com/

Information release over the web▲Exchange activity■Kansai Nuclear Power Information Net Surfing

To foment a correct understanding of
nuclear power, businesses involved with
nuclear power in the Kansai, such as
ourselves, plus universities andorganizations together created Kansai
Nuclear Power Information Net Surfing in
October 2000. The participating parties
have pooled infrastructure and humanresources into providing information on
nuclear power in a way that leads to better
understanding.

There are four distinct corners on the
Kansai Electric Japanese website that
explain nuclear power in an easy tounderstand manner, such as the "Kansai
Nuclear Information Center". The
company also releases information on
power station trouble in a timely fashion.
Kansai Electric is working constructively
to provide the proper information in otherways, too, such as periodically reportingon the operating state of nuclear power
stations through our "Maintenance andQuality Information" corner in addition totrouble reporting required by law.

▲Energy lesson taught by our"visiting classroom"▲Explanatory meeting for local residents▲Top page of the Kansai Nuclear Information Center website
http://www.kepco.co.jp/bestmix/

64

VI

Full Compliance

Establishing the system promoting compliance
Aiming at gaining further social trust, Kansai Electric Group is in a body exerting itself to promote compliance to mature thewell-ventilated corporate culture not allowing anything against rules, regulations, and laws.

Forming a Committee andCreating the ManualCompliance-Counseling Service
Desk Established

In order to plan and establish in-housecompliance-promoting activities, Kansai
Electric formed
Kansai Electric
Compliance Committee under thechairmanship of the President consistingof some members including two outside
ones (lawyers) in November, 2002, andcreated the Compliance Manual to
distribute to all the employees.
The Manual provides for express
behavioral principles, describing simply
Compliance Guidelines representing
what the employees need to recognize at
the minimum in performing their duties.

In February, 2003, in addition to theCompliance Manual , the Company
established the Compliance-CounselingService Desk both inside and outside theCompany (at a law office) respectively,
which employees who have questions
about compliance can consult with.
In order to avoid incompliance
beforehand, the Compliance-Counseling■Compliance guidelines
Ⅰ.Behavioral principles for corporate activities
1.
2.
3.
4.

Securing safety
Environment conservation
Observing the Antitrust Act
Secure management of personal and othercompanies information, and corporate secret
5. Management of the intellectual property rights
and prevention against infringement ofintellectual property rights of the others
6. Timely and appropriate disclosure of
the corporate information
7. Proper accounting procedures and payment oftaxes
8. Compliance with and management ofagreements and contracts
9. Business relationship conforming to the ruleswith suppliers and business connection
10. Confrontation with antisocial groups ororganizations
11. Compliance with relevant laws and ordinancesin performing business operation

Service Desk gives counsel about
extensive questions related to compliance,
for example, whether what you areplanning to do is regarded asincompliance.
The content of counsel shall be kept strictsecret, creating no consequence againstinterests of counselees.

■Compliance-counseling service desk
The Kansai Electric compliance committee
Discussing matters related to planning or
establishment of compliance-promoting activities

Compliance-counseling service board
Discussing response to those who asked for counsel and giving guidance or advice.

Counselees
Report/Counsel

Discussion/Advice

Report of result

Counsel by means of phone,e-mail, letter, or interview

Secretariat for the compliance-counseling service

Compliance-counseling service desk

Investigation and consideration of how to respondbased on what a person asked for counsel about.

Receiving counselees and reporting investigation results

General Affairs Office Legal Affairs Control Group

Outside the Company: a law office
Inside the Company: General Affairs Office Legal Affairs Control Group

Fact-finding

Compliance-Promoting activities at KANSAITOPICS ENVIRONMENTAL ENGINEERING CENTER CO., LTD.

Ⅱ.Behavioral principles at workplace
12. Creating comfortable workplace
13. Securing safety and sanitation
14. Devotion to job
15. Appropriate use of the corporate assets
16. Proper use of the information system

Ⅲ.Behavioral principles as a member of society
17. Prohibition against insider trading
18. Prudent behavior

65

In November, 2003, we establishedregulations of the Compliance Committee
and Compliance Manual that provides forbehavioral principles in the businessactivities and at workplace. In January 2004,
we held a study meeting on compliance for
the Team Managers of the Divisions andHeads of the offices and sales offices.
We will exert ourselves to establish the
behavioral principles set forth in the
Compliance Manual and incorporate
additional points which should be noted in
the Manual, aiming at customers

trustworthy and favored KANSO on theprinciple of customer service first .

Team Manager, General Affairs Team,
Planning and General Affairs Division Masaki Shiotani

Appointment of Responsible Persons and Staff
in Charge of Compliance-Promoting Activities

Compliance with Laws andRegulations

In April, 2003, in order to promoteautonomous
activities
promotingcompliance, the Heads of the Sales
Offices and Divisions were appointed as
responsible persons in charge ofpromoting compliance and the promoting
staff was appointed at respective
workplace.
Since May, 2003, training has beensuccessively given to these responsible
persons and promoting staff, whoconveyed what they learned to the other
employees at their workplace respectively.
In consequence, until the end of 2003,
almost all the officers and employees
were given training for compliance.

The laws and regulations that Kansai
Electric must comply with as a business
entity span from the Commercial Codeand labor laws that apply to all businesses
to the Electricity Enterprises Law that lays
out the foundation for the electric powerbusiness. We have prepared a list ofprocedures that must be followed by law
in specific operations and we make every
effort to prevent any incompleteness inthis regard. Just the same, we will
periodically review this list to enhanceaccuracy and manage our operations witheven greater rigor than before.
Additionally, we will increase our efforts
to observe public laws and regulations aswell as internal rules, in light of the seriesof problems that have affected thecompany to note the ruptured secondary
pipe accident at the Mihama Power
Station s Unit 3, improper handling of
periodic inspections by the KansaiInternational Airport Energy Center andthermal power station, overbilling ofcustomers because of our failure to
discount power outages and incorrect
billing of electricity rates because of thewrongly set mileage in some power
meters.

Group-wide
Compliance-promoting Activities
In 2003, training on compliance was given
to those of the rank of the Manager of theGeneral Affairs Division of 42 companies
in the Group. In 2004, we will promote thefollowing efforts:
・Offering support to the companies inestablishingcompliance-promoting
systems, such as the ComplianceCounseling Service Desk;・Holding training seminars for employeesof the companies; and・Offering guidance in the information
security (making preparation for andimprovement of promoting systems;
establishing by-laws; holding educationalor explanatory meetings, etc.)

Workers opinions

Compliance with the Antitrust Act
In order to survive the electricity sales
competition which is expected to beintensified increasingly, the Company isrequired to comply with the Antitrust Act
in making fair competition.
We prepared the explanatory of the
Guidelines for Proper Trade ofElectricity published by the Fair Trade
Commission and the Ministry of
Economy, Trade and Industry under joint
signature to distribute to Divisions of theCompany including the Sales Division sothat the employees can properly
understand the purposes and the detailsof the Antitrust Act to make the best useof it in their daily services. In addition, wehold the study meeting on the Antitrust
Act every year, making efforts to deepen
employees understanding.

Strict and Secure Management of
Customers Information
Despite the promotion of measures toprevent the disclosure of customer
information across the group, there havebeen incidents of customer information
leaking outside the company and group as
happened with a sales office in Shiga
Prefecture in May 2004. These eventsshould never occur, therefore Kansai
Electric will undertake measures toimprove information management
operations, which will include upgradedtraining for employees and stronger
information security.

We are taking greatest possible care of the management of information,

Namba Customer Center,
Namba Sales Office Takehiro Kondo

We have been reusing sheets of paper, of which
one side is used, for reduction in cost , with thegreatest possible care.
In the Section I belong to, to avoid reuse of theforms stating secret information such as
customers information or sales activities, we
discuss how to deal with such information witheach other. What I always keep in mind is, I
should remember leakage of information cancause the customers trouble.

66

VI

Full Compliance

Acturizing Fair and Impartial Procurement ofMaterials in Compliance with Laws and Ordinances
For the purposes of procuring timely highquality goods and construction work at
reasonable price, the Purchase Division
procures materials more effectively inaccordance with three behavioral bases,
working on further reduction in
procurement price and cost for
procurement operation.

to make estimation, not treating them in
the way, which is advantageous to only acertain supplier. Early in each business
year, we show on our Web site theinformation regarding orders including
major items and quantity, which are to bepurchased in the relevant year, disclosing
information extensively.
▲Various brochures

Three Behavioral Bases for
the Procurement Activities
Purchase Division set the following three
behavioral bases for procurement. Details
are inserted in the Introduction to thePurchase Activities (PR brochure) andWeb site of the Kansai Electric for
publicity. To the suppliers, we explain our
approach in the Guide to Contract
Procedures.
■Behavioral bases for procurement ofmaterials
Fair and
impartial
dealing

Behavioral basis 2: Compliance with laws and ordinances
In material procurement, we follow laws
and ordinances not only related tocommercial trade but also all the related
laws and regulations. Furthermore, wehave inserted Fundamentals for Trade in
the Guide to Contract Procedures ,asking the suppliers to comply with
relevant laws and ordinances.
In case of any disgraceful affair such asbreach of a law by a supplier, we takemeasures such as suspension of
appointment for a certain period of timeupon fact-finding.

Applying three behavioral bases
to the Companies Includedin the Kansai Electric GroupFor other companies in the Group,
Purchase Division of the Company takes
the initiative in taking measures inaccordance with three behavioral bases:
fair and impartial dealing ; compliancewith laws and ordinances ; andestablishment of fiduciary relationship ,so that the Kansai Electric Group as awhole can perform further fair andimpartial procurement.

Behavioral basis 3: Establishing fiduciary relationship
Compliancewithlaws andordinances

Establishingfiduciary
relationship

Behavioral basis 1: Fair and impartial dealing
In order to purchase timely safe and highquality equipment and materials, we set
up the Materials Trade Desk to meet
suppliers demand and respond to theirinquiries related to materials trade athome and aboard.
In registration of new suppliers, we deal
with them fairly and impartially based on
the certain registration criteria. In case of
separate order, we evaluate quality, price,technical strength, delivery, and operating
conditions synthetically to provide
opportunity for participation. Needless tosay, we provide related information
impartially to the suppliers, whom we ask

67

Material procurement of the Company isbased on the fiduciary relationship with
suppliers.
In order to provide high quality products
and services, we are aiming at
establishment of the fiduciary relationshipwith the suppliers by means ofcooperative work and further developmentof both suppliers and the Company.
Specifically, we perform supply chain
management activities, which allows us
and suppliers to achieve reduction in costand improve efficiency of business
operation, and requests and demands
received from suppliers are reflected in
the daily material procurement.
We will never disclose to third parties
information obtained and technologies
acquired through transactions without
consent of the suppliers who offeredthem.

▲Behavioral bases for purchase
http://www.kepco.co.jp/kepa/purchas/index1j.htm

Third Party s
Comment
The electricity industry including the Kansai Electric has
the unprecedented question confronting, that is, it isfacing the question how to synthetically solve suchproblems as stable and safe supply, environment-friendly
supply, and economical supply. This is the criticalquestion not only to the electricity utilities but also to theenergy industry and even to the nationals. In this respect,
this is not a question only the electric utilities can solve. In
other words, this is the question how to make the generalpublic understand the problem, what the energy
tomorrow should be , as a common question (two-way
communication). Therefore, in penetrating theconsciousness that it is a common question, transparency
and disclosure (publication) of information are essential tosharing information on the present circumstances andproblems (progress of effort).
In the light of these problems, in this Report, social andeconomic aspects are substantially dealt with based on the
Kansai Electric Group s CSR Action Charter rather thanconventional Environmental Report . In addition, fromthis Report, you can find that the Company is extending its
principles to other companies in the Group, making effort
to work in association with them. Considering the previous
approach of Kansai Electric, it is natural for a report todevelop in this manner. Explanations on six behavioral
principles of the CSR Action Charter are easy tounderstand. Recent disgraceful affairs are
disadvantageous to the Company, however, follow-up with
explanations of the outline, cause, and preventive
measures against recurrence make a favorable impression
on us. However, in order to make it function, the system
not allowing recurrence of such affair needs to beestablished in the Company as a whole. Considering thatthe disgraceful cases vary in wide range, I wonder the
improvement is limited to the level of Division. This may
be the trouble with being a big organization.

Professor Department of
Economics,
Doshisha University

Takashi Gunjima
What is important in working on environmental measures
includes prevention, continued improvement, company s
approach in a body (not only at the Environmental Division
but also at all the Divisions and by all the employees
through environmental education), support andestablishment of responsibilities of the top management.
As far as the environment is concerned, such mission is
on its way to achievement. Then, what about safety?
Safety is also based on prevention, continued
improvement with inspection, and efforts made by theCompany as a whole. Securing safety requires cost.
However, when considering that it may imperil human
lives; prevention is after all less expensive than dealing
with what has happened, or it is important to gain social
trust, you should give it the first priority. This has been
demonstrated by the petrochemical industry in building up
E (Environment) H (Health in the working environment) S(Safety in the working environment) System in the
Responsive Care Program.
The reason why the electricity industry draws publicattention is its public nature of the business andmagnitude of contribution to the development of thesociety. All the employees consciousness of suchimportant mission is the basis of communication with thegeneral public. The same is true with workers relationshipat workplace beyond scope of job. Such close
communication can lead to trust and mutual
understanding deepened. For such purpose, daily efforts
are required.

68

Interview: On Gaining Back Public Trust
Toshihiko Goto, Steering Committee Member of the Global Reporting Initiative (GRI) and Representative
Secretary of the Environmental Auditing Research Group (EARG), talked with President Yohsaku Fuji about
Kansai Electric’s CSR activities.

The interview was done before the accident at the Mihama Power Station’s Unit 3, but because of Mr. Goto’s NPO
perspective, he provided Kansai Electric with some good advice on how to gain back the trust of the general public.
A second interview by Mr. Goto was staged after the accident as well, an excerpt of which has been included on thefollowing page.
Kansai Electric takes this advice to heart and wants to do everything possible to regain the trust of the people.

Goto: Kansai Electric has adopted a Businessstates you want to “solidify the trust of the general

Vision and CSR Activity Charter, but how do you as

public by contributing to the sustainable

President view the recent series of company

development of society” and “base all businessbloopers?

activity

development

on

the

CSR

ActionPrinciples”, I get the impression that you haveFuji: The problems that caused us to loose theunderstood the true concepts of CSR. I myself dotrust of consumers and local communities, such as

not spell out the CSR acronym as corporate social

the personal information that was leaked from a

responsibility but as the degree of social trust.

sales office and the failure to report periodic
checks by the Kansai International Airport Energy

Fuji: Since our founding more than half a century

Center, are absolutely deplorable. We are reflecting

ago, the group has made it our prime duty to serve

deeply over the fact that the importance ofthe customer in our business operations andemployees observing the rules has still yet todevelopment. We have always thought of thepenetrate the workforce sufficiently.

“trust” of people all across society, let alone ourcustomers, as the foundation for all business

Goto: People make mistakes, therefore theactivities of the group. In fact, with the expansion

possibility of problems like these always exists. Iof business domains because of progressing

think it is important to discover the problem at anliberalization in the power market, deregulation andearly stage and, at the same time that the problem

technological innovation, we strongly believe thatis reported outside the company, schemes should

customer trust is growing in importance.

be built based on the lessons learned. This is a big

69

point in CSR.

Goto: Trust comes from the other person and is

At present, CSR is not thought of as a

built by two-way relations with them. The Kansai

philanthropic activity but as a way to enhance trust

Electric Group obviously knows this as can be seen

through daily business. Looking at the Kansai

by how you make it policy. I’d like to see this basic

Electric Group CSR Action Charter, in which it

concept firmly rooted in all operations.

I also think your vision of the entire group ispointed in the right direction.
I’ll give you the final word. Would you tell me what

After the interview, a truly regrettable

your thoughts and goals are?

accident occurred at the Mihama
Power Station’s Unit 3. Usually,

Fuji: The problem of the Kansai International

accidents have multiple causes, so

Airport Energy Center occurred just after wethis accident must be thoroughly

adopted the CSR Action Charter. It was totallyinvestigated. To regain the lost trust

embarrassing and we need to reflect deeply aboutof the public, the first step is towhat happened. In order to prevent this incident

announce the results of investigations

from reoccurring, we obviously need to observe
laws and regulations and internal rules, but wemust also make our business operations moretransparent

andconstructively

fulfillourin a way that the general public canaccept. This is more important thananything else.
(Talk, Toshihiko Goto)

responsibility to explain our actions to all ofsociety. This is expected of the entire workforce
and all directors of Kansai Electric Group.
For CSR to assuredly penetrate the workforce, we
issued cards that summarize the essence of the
CSR Action Charter to all group employees so thatthey can check the six CSR Action Principles andtheir own compliance, and we created a CSR
Promotion Council which I head. The entire groupwill be making a concerted effort to promote andimplement CSR so that we can gain back the trust
we lost because of this series of incidents.

70Environmental Data

Global environmental protection
1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)Unit

CO2 emission

3,926

3,954

3,688

3,684

3,656

10,000 t-CO 2

CO2 emission per unit of power consumed *1

0.280

0.277

0.264

0.260

0.261

Nighttime (22:00 - 08:00) *2

0.220

0.245

0.227

0.244

0.253

Daytime (08:00 - 22:00) *3

0.309

0.292

0.282

0.268

0.265

CO2 emission per unit of power generated *4

Fiscal Year

kg-CO 2/kWh
kg-CO 2/kWh

0.248

0.235

0.230

0.229

229

235

236

−

−

100 million t- CO 2

Japan CO2 emission *6

12.28

12.39

12.14

12.48

−

100 million t- CO 2

Electric power industry CO2 emission *7

3.07

3.17

3.12

3.42

−

100 million t- CO 2

Electric power industry CO2 emission per unit of power consumed *7

0.375

0.378

0.379

0.407

−

kg-CO 2/kWh

Nuclear power station capacity factor *8

82.0

81.8

84.5

90.5

89.1

%

Thermal efficiency of transmission end of the total thermal power generation *9

41.9

42.0

42.2

42.4

42.3

%

−

−

−

−

123

1,000 t[Reference]

0.251

World CO2 emission *5

Coal
Heavy oil

656

515

202

224

98

1,000 kR

Crude oil

2,053

1,370

767

715

215

1,000 kR

LNG

5,485

5,463

5,286

3,799

3,366

1,000 t27,05229,75230,452

34,75238,752

kW

Transmission and distribution loss rate *10

5.3

5.1

5.2

5.5

5.5

%

SF6 gas emission

10.9

6.1

0.9

0.7

0.7

t

SF6 gas recovery

83.0

92.1

96.4

97.1

97.2

%
Locations

Fossil fuel consumption

Refurbished power at hydropower station (cumulative increment of output since 1989)

Use of untapped energy sources (Heat supply locations)

10

10

11

11

11

Progress of new energy source development and use (Accumulative total at year end)

899

914

919

919

919

Solar power generation

740

760

765

765

765

Wind power generation

159

154

154

154

154

Purchased amount

400,298

442,520569,254

588,445678,3131,000kWh

Number of purchases

4,659

8,058

11,823

17,926

26,550Purchases

Purchased amount

5,804

10,987

18,522

26,88039,0471,000kWh

Number of purchases

4,636

8,031

11,793

17,88826,511

Purchases

Purchased amount

−

405

2,227

6,250

11,9441,000kWh

Number of purchases

−

1

3

7

8

Purchases

394,485

431,123

548,505555,315627,3221,000kWh

22

25

26

30

31

Purchases

Participants in Kansai Green Power Fund (At fiscal year end)

−

3,010

13,881

13,151

11,973

Participants

Subsidiary from Kansai Green Power Fund (in terms of equipment output)

−

−

4,600

70

2,241

Solar power generation

−

−

100

70

241

Wind power generation

−

−

4,500

−

2,000

Purchased power generated by
new energy sources
Solar power generation
Wind power generation
Waste-fired power generation

Energy and resource conservation(Offices)

Designated CFC consumption

Purchased amount
Number of purchases

kW

kW

Office electricity consumption

−

118.5

116.6

113.2

105.8

1 million kWh

Domestic water consumption−

1,045.6

978.4

900.7

803.6

1,000 m 3

Vehicle fuel

−

9.14

9.16

9.41

9.29

km/R

Copy paper consumption−

1,000.5

934.9

919.4

903.9

t

0.2

0.3

0.3

0.1

0.6

t

*1 CO2 emission per unit of power consumed = CO2 emission power consumed*2 Nighttime (22:00 - 08:00) = nighttime CO2 emission nighttime power consumption*3 Daytime (08:00 - 22:00) = daytime CO2 emission daytime power consumption*4 CO2 emission per unit of power generation = CO2 emission power generated*5 World CO2 emission: Source: Energy and Economic Statistics , Institute of Energy Economics, Japan*6 Japan CO2 emission: Source: Greenhouse Gas Inventory Office (Center for Global Environmental Research, National Institute for Environmental Studies)*7 Electric power industry CO2 emission and Electric power industry CO2 emission per unit of power consumed: Environmental Plan of Action for the Electric Power Industry, Federation of Electric Power Companies of Japan*8 Nuclear power station capacity factor = Power generated (Permitted output x Running hours) x 100*9 Thermal efficiency of transmission end of the total thermal power generation = (Transmitted and distributed power x Heat load per kWh) Total heat load input*10 Transmission and distribution loss rate = 1 - (Power consumed + Substation power) (Total power - Kansai Electric power station power)

71

Local environmental protection
1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

Unit

SOx emission(Kansai Electric power station)

3,807

2,833

1,438

1,332

415

t

SOx emission per unitof power generated

Per Kansai Electric unit power generated *1

0.029

0.023

0.012

0.011

0.004

Per Kansai Electric unit thermal power generated *2

0.084

0.069

0.040

0.049

0.019

NOx emission(Kansai Electric power station)

6,626

6,123

4,801

3,740

2,731

NOx emission per unitof power generated

Per Kansai Electric unit of power generated *3

0.051

0.049

0.039

0.031

0.023

Per Kansai Electric unit of thermal power generated *4

0.146

0.149

0.133

0.138

0.124

Thermal power station

34

34

34

34

34

Nuclear power station

77

79

79

78

78

Electric power office (substation)

33

33

32

28

28

Buried rate of transmission cable *6 (at fiscal year end)

13.5

13.8

13.9

14.1

14.2

%

Buried rate of distribution cable *7 (at fiscal year end)

9.1

9.3

9.3

9.4

9.4

%

Unit

Fiscal Year

Greenery rate *5(at fiscal year end)

g/kWh
t
g/kWh

%

*1 SOx emission per Kansai Electric unit power generated = SOx emission Power generated*2 SOx emission per Kansai Electric unit thermal power generation = SOx emission Thermal power generated*3 NOx emission per Kansai Electric unit power generated = NOx emission Power generated*4 NOx emission per Kansai Electric unit of thermal power generated = NOx emission Thermal power generated*5 Greenery rate = Business site greenery area business site total area x 100*6 Buried rate of transmission cable = Extended length of buried cable (Extended length of overhead cable + Extended length of buried cable) x 100*7 Buried rate of distribution cable = Extended length of buried cable (Total length of overhead cable + Extended length of buried cable) x 100

Waste and resource recycling
1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

101.0

70.7

63.7

49.7

56.8

Desulfurizing gypsum

44.3

20.2

15.7

5.5

5.9

Scrap metal

17.8

17.0

16.5

15.9

17.1

Waste concrete poles

16.0

14.5

15.3

16.1

15.0

Heavy/clued oil ashes

6.5

3.9

2.3

1.7

0.9

Coal ash

0.0

0.0

0.0

0.0

6.6

Spent oil

4.8

3.9

4.5

2.1

3.0

Scrap glass

1.6

1.5

1.7

1.2

1.3

Wastewater treatment sludge

1.5

1.5

1.2

0.7

1.1

Others

8.5

8.2

6.5

6.5

5.9

Landfill of industrial waste

10.1

9.4

6.7

6.8

6.5

Scrap metal

1.1

0.7

0.5

0.7

0.9

Spent oil

0.0

0.0

0.0

0.0

0.1

Scrap glass

1.1

1.0

0.8

0.7

0.5

Wastewater treatment sludge

0.2

0.4

0.3

0.2

0.6

Others

7.7

7.3

5.1

5.2

4.4

88

84

87

85

86

%

Insulating oil

−

−

−

−

0.2(2.0%)

10,000 kR

Transformer case*3

−

−

−

−

0.3(1.3%)

10,000 units

Fiscal Year
Industrial waste discharge

Industrial waste recycle rate *1
Volume of low-level PCB waste treated(pole transformer)*2

1,000 t1,000 t*1 Industrial waste recycle rate = (Reused amount + Amount sold) (Industrial waste discharge + Amount sold) x 100*2 The amount represents the cumulative value of the previous years. Value indicated in the brackets represents the ratio to the total amount to be treated.
*3 Member inside the pole transformer is restored.

72

Radioactive material and waste

Evaluated dosage in public area around power station

Radioactive gas waste release (Noble gas)Radioactive gas waste release (Iodine)

Radioactive gas waste release (excluding tritium)

Fiscal Year

1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

Mihama Power Station>0.001>0.001>0.001>0.001>0.001

Takahama Power Station>0.001>0.001>0.001>0.001>0.001

Ohi Power Station>0.001>0.001>0.001>0.001>0.001

Mihama Power Station

2.3E+11

1.6E+10

1.4E+10

1.1E+10

6.1E+09

Takahama Power Station

4.0E+11

1.6E+10

1.8E+10

1.2E+10

1.1E+10

Ohi Power Station

1.2E+11

5.7E+10

1.5E+102.8E+10

1.8E+10

Mihama Power Station

3.2E+05

N.D.

9.9E+04

3.8E+05

2.3E+08

Takahama Power Station

2.7E+05

N.D.

1.8E+05

3.4E+05

N.D.

Ohi Power Station

1.6E+05

1.1E+06

2.7E+05

N.D.

N.D.

Mihama Power Station

N.D.

N.D.

N.D.

N.D.

N.D.

Takahama Power Station

N.D.

N.D.

N.D.

N.D.

N.D.

N.D.

N.D.

N.D.

N.D.

N.D.

5,831

7,045

9,112

7,301

9,438

Mihama Power Station

1,843

1,651

3,504

3,135

4,337

Takahama Power Station

1,315

1,593

1,375

1,440

1,724

Ohi Power Station

2,673

3,801

4,233

2,726

3,377

2,559

4,741

7,423

8,439

10,067

Ohi Power Station
Solid radioactive waste generation (200 l drum can)Solid radioactive waste reduction (200 l drum can)Mihama Power Station

689

526

2,540

3,423

5,527

Takahama Power Station

1,102

1,160

797

743

606

768

3,055

4,086

4,273

3,934

82,40484,70986,39885,26084,631

Mihama Power Station Drum cans

26,646

27,772

28,73628,44827,258

Takahama Power Station

30,29030,72331,301

31,99833,116

Ohi Power Station

25,46826,21426,361

24,81424,257

Ohi Power Station
Solid radioactive waste accumulative storage (200 l drum can)Unit

Millisievert/year * 2

Becquerel * 3* 1 Becquerel *3

Becquerel * 3

Drum cans

Drum cans

Drum cans*1 N.D. (Not Detectable): less than critical detectable concentration/OE + ˘: O x 10
*2 Millisievert/year (Effective dose equivalent): Unit for expressing effect of radiation on human body
*3 Becquerel: Unit for expressing radioactive substance destroyed by 1 atomic nucleus per sec

Environmental management
Fiscal Year
ISO14001 certified locations (At fiscal year end)

1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

18

19

20

19

17

2

5

11

12

10

18

17

14

13

12

2

4

7

7

6

0

1

2

2

2

0

0

0

1

1

0

1

4

4

2

0

1

4

4

2

0

0

0

0

1

Relisted for external certification acquisition

0

0

0

0

1

ISO14001 Staff Training
Participants in environmental
Internal Environmental Auditor Training
education program
Environmental Staff Training

−

−

30

26

26

23

23

21

21

22

39

47

41

37

38

Environmental protection cost (investment)

498

324

380

354

313

905

444

428

401 ※2

354

37

167

159

130

97

Relisted for external certification acquisition
Thermal power works
Relisted for external certification acquisition
Nuclear power works
Relisted for external certification acquisition
Engineering works
Relisted for external certification acquisition
Distribution works

Environmental accounting *1 Environmental protection expenditure
Economic effect of environmental protection measures

Unit

Locations

Persons

100 million yen*1 The method for computing environmental accounting was slightly changed after 2000.
*2 The value was revised in accordance with guidelines for calculation created.

Others1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

Planting activities (At public facilities)

3.3

3.0

2.9

2.4

2.0

10,000 trees

Beautification activities (Area cleanups, etc.)

801

1,521

1,027

841

308

Instances

Fiscal Year

73

Unit

Reference Data

Equipment and power supply-demand
Fiscal YearPower generation equipment output (Kansai Electric at fiscal year end)

1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

3,780

3,746

3,559

3,543

3,482

Hydropower

811

813

813

813

815

Thermal

1,992

1,956

1,769

1,753

1,691

Coal
Oil, etc.
LNG and other gas
Nuclear
Total power

−

−

−

−

−

1,152

1,152

970

954

908

840

804

799

799

783

977

977

977

977

977

1,537

1,558

1,525

1,549

1,531

1,296

1,256

1,222

1,199

1,170

Hydropower

139

144

137

154

185

Thermal

453

411

362

271

220

Nuclear

704

700

723

774

765

Received from other company

113

172

203

243

274

Circulating

153

159

134

155

144

Power for pumping

▲25

▲29

▲34

▲48

▲57

Power consumption

1,404

1,429

1,398

1,418

1,402

Lighting

436

444

443

456

447

Electricity

968

984

954

962

956

Self-generated

Unit

10,000 kW

100 million kWh

100 million kWh

Finances1999(H11)

2000(H12)

2001(H13)

2002(H14)

2003(H15)

25,17225,81425,17824,82723,752

Lighting rate

9,880

10,109

9,937

9,954

9,442

Electricity rate

14,77515,152

14,77814,263

13,564

Fiscal Year
Operating revenue

515

552

462

609

745

Operating expenses

22,01922,45322,061

21,671

20,457

Operating profit

3,152

3,360

3,117

3,155

3,294

Recurring profit

1,694

1,807

1,635

1,865

1,888
1,184

OthersNon-consolidated base

436

954

1,370

972

Plant & equipment investment

6,122

4,790

4,105

3,265

2,551

Total assets

71,66872,12570,43467,72365,408

Outstanding interest-bearing debts,
Shareholders equity ratio

46,75245,653

43,27140,75435,892

16.67

18.62

18.99

19.56

21.92

Operating revenue

25,883

26,47926,515

26,151

25,401

Operating expenses

22,77823,072

23,322

22,895

21,906

Operating profit

3,105

3,406

3,193

3,255

3,494

Recurring profit

1,673

1,693

1,595

1,747

1,873

523

1,227

1,284

804

901

Net profit for current term

Consolidated base

Net profit for current term

Unit·100 million%·100 million

Plant & equipment investment

6,289

4,895

4,678

3,868

3,215

Total assets

75,00975,50875,07574,02371,508

Outstanding interest-bearing debts

47,536

46,16544,48343,541

38,836

Shareholder s equity ratio

18.66

20.79

21.06

20.91

22.90

%

Unit

Employees and safety
1999（ H11）

2000（ H12）

2001（ H13）

2002（ H14）

2003（ H15）

Kansai Electric

24,90324,53923,971

21,92021,031

Kansai Electric Group

33,01832,58937,91135,55433,935

0.19

0.09

0.22

0.16

0.37

Fiscal Year
Number of employees
Accident rate *1

Persons%*1 Accident rate: Number of accidents per 1 million hours of operation

74

Data by Thermal Power Station■Thermal Power Station Environmental Protection Performance (Fiscal 2003)
Item

Sox

Miyazu Energy
Research Center

H/C

L/H/C

L/H/B

H/C

L

390

77

587

98

306 *5

Agreed

−

−

−

−

112

Air related

19

0

148

0

30

Emission per day(t/day)

10.1

3.8

9.3

−

−

Result

0.5

0.004

5.2

−

−

Emission per year(t/year)Agreed

940

615

3,020

−

492×10 3m 3N

Result

15.2

0.018

154

−

3×10 3m 3N

A. P. P. Law(Regulation on overall emission)

613

115

398 *2

255

Areas other thanthose designatedAgreed

−

−

−

−

58

Result

112

0.005

153

30

18

Emission per day(t/day)Agreed

7.7

2.2

7.2

1.8

−

Result

3.2

0.2

4.4

1.0

−

Emission per year(t/year)Agreed

1,420

320

2,100

400

244×10 3m 3N

Result

366.2

3.3

161.4

143.4

2×10 3m 3N

0.050 *40.050 *4

0.070

0.030

0.050

Agreed

0.020

0.020

0.020

0

0.014

Result

0.004

0

0.006

0

0.002

5.8〜8.6

5.0〜9.0 *3

5.0〜9.0

A.P.P. Law and Ordinances(Regulation on overall emission)

C oil content
treatment

OutletW.P.P. Law andordinances

Hydrogen ion
concentration index

Water related

Pollutant load
(kg/day)

Max. concentration(mg/R)

Sewer discharge

NO2 oil content
treatment

5.0〜9.0 *3

5.8〜8.6 *4−−

5.8〜8.6−

5.8〜8.6

6.5〜8.2

7.3〜7.7

6.5〜8.1

6.4〜8.4

6.2〜8.0

200 *314 *4

50

200 *3

160

−

−

15

200

15

4

1

7

63

3

388.4

−

−

55

−

−

Agreed

−

−

−

14

−

20.8

Result

17.1

−

−

7.8

−

1.1

W.P.P. Law andordinances

50

200 *390 *4

100

200 *3

200

−

−

20

200

20

9

<1

5

43

1.6
5

7.6〜8.1

W.P.P. Law andordinances

12

6.8〜7.6

6.5〜8.1

6.5〜7.730−

Agreed2

6

W.P.P. Law andordinances

2

1

−

Agreed9

Resultn-hexane Max. concentration
extracts(mg/R)

E oil content
treatment−

ResultResultCOD

D oil content
treatment

5.8〜8.6

AgreedMax. concentration(mg/R)SS

Nanko

ResultDischarged
concentration(g/m3N)

Dust

Tamagawa
No. 2

AgreedEmission per hour
(m3N/hr)NOx

Osaka Power Station

A. P. P. Law(Regulation on overall emission)

Main fuelEmission per hour
(m3N/hr)

Sakaikio

8

6

12

W.P.P. Law andordinances

2

4 *3

3 *4

4

4 *3

Agreed

−

−

−

1

4

1

1

1

<1

<1

<0.5

<1

Result<1<1<1

A.P.P. Law: Air Pollution Prevention Law/W.P.P. Law: Water Pollution Prevention Law/L: LNG/H: Heavy oil/B: Bituminous mix/C: Crude oil*1 Regulatory values given k *2 Value reported under NOx Reduction Guidelines for Fixed Sources, Osaka Prefecture *3 Regulations of Osaka City Ordinance on Sewerage*4 Osaka Prefecture Ordinance on Living environment Protection *5 Kyoto Prefecture Ordinance on Environmental Protection■Flue gas desulfurization■Flue gas denitrification unit
3,330 3,330 3,330

3,000
2,500
27

3,150
3,018
40
3,018
35
30 31 35
28
30

2,000

25

1,500
1,000

11

500

680.5

13

1,380

20

13

15

930

10
5

0 6365

70

75

80

85

90

95

00 01 02 03 0
(Fiscal Year)

Development of flue gas desulfurization technology

Establishment of test plant and implementation of research
Establishment of research plant and implementation of researchInstallation of wet type flue gas desulfurization unit

75%

1,000kW

18,00076
71

16,00014,714.5

62

14,000. Installed capacity

Installed capacity

27

45

79

79

78

80

15,384.5

70
13,893.5
60
13,893.5
13,269.550

12,804.5

12,00010,00079

9,154.5

40

8,000

30

6,000

21

4,000

20

2,516.52,000
0 68 70

75

80

10
85

90

95

00

01

02

Development of flue gas denitrificatin technology
Established pilot plant and started research
Established large-scale test plant and started researchInstallation of flue gas denitrification unit

03 0
(Fiscal Year)

Installed capacity ratio to the approved output of thermal power plant

3,500

Installed capacity ratio to the approved output of oil fired power plant%

1,000kWItem

相生
Power Station

Ako
Power Station

H/C

L

L/H/C

H/C

H/C

H/C

7,800 *1

112

780

344

3,054 *1

2,146 *1

Agreed

310

184

−

58

155

165

180

Result

135

120

0

1

No past recordof operation

80

67

Emission per day(t/day)Agreed

−

−

−

−

−

−

−

Result

−

−

−

−

−

−

−

Emission per year(t/year)Agreed

1,760×10 3m 3N

970×10 3m 3N−

400×10 3m 3N

2,492

885×10 3m 3N 650×10 3m 3N

Air related

record
0.4×10 3m 3N Noof past
3×10 3m 3N 3×10 3m 3N−
operation
Areas other than Areas other than Areas other than Areas other than Areas other thanthose designated those designated those designated those designated those designatedResult48×10 3m 3N

12×10 3m 3N

A. P. P. Law(Regulation on overall emission)

Areas other than those designated

Areas other thanthose designatedAgreed

450

110

104

463

320

85

94

Result

168

48

55

369

No past recordof operation

46

79

Emission per day(t/day)Agreed

−

−

−

−

−

−

−

Result

−

−

−

−

−

−

−

Emission per year(t/year)Agreed2,400×10 3m 3N

Discharged
concentration(g/m3N)

560×10 3m 3N 590×10 3m 3N 2,263×103m3N 1,620×103m3N 390×10 3m 3N 340×10 3m 3N
10×10 3m 3N 180×10 3m 3N 757×10 3m 3N

No past recordof operation

3×10 3m 3N

4×10 3m 3N

0.070

0.050

0.070

0.070

0.070

0.050

0.050

0.010

−

−

0.050

0.015

0.015

0.004

0.003

0

0.004

No past recordof operation

0.006

0.004

5.0〜9.0

5.0〜9.0

5.0〜9.0

5.0〜9.0

5.0〜9.0

5.0〜9.0

5.8〜8.6

5.8〜8.6

5.8〜8.6

5.8〜8.6

5.8〜8.6

5.8〜8.6

6.2〜8.2

6.8〜7.6

6.8〜8.2

No past recordof operation

6.7〜7.6

6.3〜7.7

Result21×10 3m 3N

A.P.P. Law and Ordinances(Regulation on overall emission)

0.070

AgreedResultWaste water treatment Oil content treatment Oil content treatment
W.P.P. Law and in the premises in the main building in the tank yard

Hydrogen ion
concentration index

ordinances

Max. concentration(mg/R)
Water related

Pollutant load
(kg/day)

Max. concentration(mg/R)

7.1〜7.7

6.0〜7.0

10

160

70

70

130

70

70

Agreed

10

10

15

15

20

15

15

3.2

2.6

5

No past recordof operation

2

2

187.7

−

40

105

102

66

84

Agreed

50

34.4

15.2

35

34

18

22.4

Result

5.1

3.3

2.28

11.7

No past recordof operation

0.98

2.2

W.P.P. Law andordinances

40

200

90

90

150

90

90

Agreed

20

20

20

20

20

20

20

1.8

2

8

No past recordof operation

1

3
5

6.6

W.P.P. Law andordinances

Resultn-hexane Max. concentration
extracts(mg/R)

5.8〜8.6
6.9〜7.6

W.P.P. Law andordinances

ResultCOD

5.8〜8.6

AgreedResultSS

Takasago

646

Emission per hour
(m3N/hr)

Dust

HimejiNo. 2

H/C

Emission per hour
(m3N/hr)NOx

HimejiNo. 1

A. P. P. Law(Regulation on overall emission)

Main fuel

Sox

Gobo

Kainan

5.4

4.2

1.8

2.0

2.4

W.P.P. Law andordinances

1

5

5

5

5

5

Agreed

2

1

1

1

1.5

1

1

0.2

0.2

0.2

No past recordof operation

0.1

0.1

Result

0.1

0.1

0.1

■Discharge and transfer of substances subject to PRTR Law (Fiscal 2003)
Substance

Use

Discharge (t/year)

Transfer (t/year)

Handled quantity(t/year)Air

Public water area

Soil

Sewerage

Waste

2-amino ethanol

Water supply treatment agent

100

<0.1

0

0

0

3.5

Asbestos

Piping insulation, etc.

7.4

0

0

0

0

7.4

Bisphenol A epoxy resin

Paint

1.1

<0.1

0

0

0

0

Ethylbenzene

Paint

1.6

1.6

0

0

0

0

XylenePaint, power generation fuel and equipment cleaning

66

30

0

0

0

0.2

Dichloropentafluoropropane (HCFC-225)

Cleaning

3.7

3.7

0

0

0

0

Styrene

Paint

3.3

3.3

0

0

0

0

Thiourea

Chemical cleaning agent for boiler

7.0

0

0

0

0

0

ToluenePaint, power generation fuel

38

6.9

0

0

0

0

Hydrazine

Water supply treatment agent

79

<0.1

0

0

<0.1

<0.1

BenzenePower generation fuel

1.6

<0.1

0

0

0

0

Trisdimethylphenol phosphate

Power generation turbine control oil

8.9

0

0

0

0

8.9

DioxinWaste incinerator

−

0

0

3.5 (mg-TEQ/year)

82 (mg-TEQ/year) 0.0081 (mg-TEQ/year)* This table rounds off handled quantity to t/year for Type 1 Specified Chemical Substances and to 0.5 t/year for Special Specified Chemical Substances (excluding dioxins). *「0」represents nothing was discharged.
*「<0.1」represents discharge was less than 0.1 t/year. * Dioxins are given only for discharge and transfer from Special Facilities (waste incinerators, etc.). Handled quantity, is therefore, not given76Chronology of Energy and Environmental Highlights■Chronology of Energy and Environmental Highlights
Kansai Electric’s Action
1950s

1951

● Kansai Electric Power co., Inc.
established.

1962
1963

Direct burning of crude oil begun.
● R&D on flue gas desulfurization
begun.

Japan’s Action

World Action

1962

1960s
●

● Law Concerning Flue Gas Control
enacted.
● Anti-Pollution Basic Measures Law
1967enacted.
● Air Pollution Control Law enacted.
1968

1970s
1970

● Water Pollution Control Law enacted.
Law Concerning Waste Treatment andCleanup enacted.
● Environment Agency established.
1971
●

1971

1980s

● Public Pollution Investigation
Department established.
● Exhaust gas recirculation and two1972
stage combustion methods introduced.
● Use of naphtha begun.
● Public Pollution Investigation Department
1973
reorganized as Environmental Affairs Department.
● Use of NGL and LNG begun.
● Practical use of flue gas desulfurization facility● Total pollutant load control for SOx
1974
1974
begun.
introduced.
● R&D on flue gas denitrification facility begun.
● Environmental Month introduced as an● Strengthening of Environmental Impact Reviews
1977
1975
annual event.
in Power Plant Siting determined by MITI’s Ministerial● Environmental Affairs Department
Council.
1977● Law Concerning Efficient Use ofreorganized as Site Environment HQ.
1979● Low-NOx burners introduced.
1979
Energy (Energy Conservation Law) enacted.

1980● Flue gas denitrification facility
installed.

1984● Deming Award for TQC activities
received.

1981● Total pollutant load control for NOx
introduced.
● Details on environmental impact
1984
assessment determined by the Cabinet.

1972● Limitation of Growth Report presented by the Clubof Rome.
● United Nations Conference on the Human
Environment held in Stockholm.
● First oil crisis.
1973

1979
●

● Second oil crisis.
Accident at Three Mile Island Nuclear Power Plant in USA.

1985

● Vienna Convention for Protection of
the Ozone Layer adopted.
● Accident at Chernobyl Nuclear Power
1986
Plant in former USSR.
● Montreal Protocol adopted.
1987● Intergovernmental Panel on Climate
1988
Change (IPCC) established.

1990s
New corporate management plan
Vision for the Year 2030 released.
● Management for the 21st Century
1989
adopted.
1988

1989

● Ministerial Committee on Global
Environmental Protection established.

1990● Action Program to Arrest Global
Warming adopted.
● Global Environmental Forum Kansai
established.

●

1990

● Global Environmental Project
Promotion Conference established.
● Five Basic Principles of Action Plan for Global
Environmental Consideration adopted.
● Environmental Technology Research Center opened.
● Research and development of flue gas
decarbonating technology begun.
● Kansai Electric Power co., Inc. Action
1991
Plan for Global Environmental Considerations
adopted.

● Global Environment Charter adopted by
Keidanren (the Federation of Economic
Organizations).
● Law Concerning Promotion of Reprocessed
Resource Use enacted.
● Law Concerning Waste Treatment and Cleanup revised.
● Act Charter adopted by Global Environment Forum Kansai.
● Law on Protection of Endangered
1992
Flora and Fauna enacted.
● Started joint research into rain forest● Temporary Law Concerning the Promotion of
1993
1992
recycling technology with Gadjah Mada University
Business Activities in Regard to Economizing the Use of(Indonesia).
Energy and the Utilization of Recycled Resources● Adopted Business Innovation Action
adopted.
1993● Basic Environmental Law adopted.
Plan.
● Adopted Kansai Electric’s Mid-Term Action● Action plans for each country presented,
1994
Plan for Global Environmental Considerations.
based on Framework Convention on Climate● Published Global Environment Action Report.
Change.
● Basic Environment Plan formulated.
● Law on the Classified Collection of Container and1995
Packaging Waste, and the Promotion of Recycling adopted.

77

1990

● IPCC 1st Assessment Reportpresented.

1991● Intergovernmental negotiation on the
Framework Convention on Climate Change
begun.

1992● United Nations Conference on
Environment and Development (UNCED) heldin Rio de Janeiro.

1994● Framework Convention on Climate
Change (FCCC) effected.

1991

1995

● The 1st Conference of Parties (COP1)
to the FCCC.
● IPCC Second Assessment Report presented.
● The 2nd Conference of Parties (COP2)
1996
to the FCCC.
● ISO Environment Management System andEnvironment Auditing established.

Kansai Electric’s Action

Japan’s Action
1997

1990s

1998

●

Adopted Environmental Management

Notice.

1999

Introduced environmental accounting.
● Adopted Green Purchase Promotional Policy.
●

2000s
Adopted Mid-term Business Policy.
● Kansai Electric’s Action Plan for Global
Environmental Considerations revised.
● Eco Action 2000 adopted.
● Nuclear Power and Environmental Committee
established. (Power Plant Sites/Global
Environmental Promotion Conference
abolished.)● Restructured as Environment Considerations
Department.
● Started Kansai Green Power Fund.
● Acquired ISO14001 certification at Miyazu
Energy Research Center and 2 other sites.
● Started technical development project for
mangrove restoration in Thailand.
● Acquired ISO14001 Certification at
2001
HimejiNo. 2 Power Station and Kishiwada Substation● Formed Committee for Recycle Activities
Promotion.
● Adopted Green Purchasing Guidelines foroffice supplies.
● Acquired ISO14001 certification at
2002
Sakaiko Power Station and 6 other sites.
● Started CFC project in Indonesia.
● Started forestation project in Australia.
● Adopted Green Purchasing Guidelines for
power facilities’ equipment.
2000

World Action
1997● Environmental Impact Assessment Law
enacted. (Amended Electric Utilities Industry Law.)● Federation of Economic Organization’s
Environmental Autonomy Action Plan
formulated.
● Amended Law on Energy
1998
Rationalization (Energy Conservation).
● Adopted Prospectus on the Promotion ofCountermeasures to Global Warming.
● Enforced Law Concerning Measures to Copewith Global Warming.
● Basic Policies Relating to Global
1999
Warming determined by Cabinet.
● Law Concerning Special Measures Against
Dioxins enacted.
● Japan’s PRTR Law enacted.
● Accident at JCO uranium processing plant.

● UN General Assembly Special Session
on Environment.
● The 3rd Conference of the Parties for Framework
Convention on Climate Change (Global Warming
Prevention Conference in Kyoto: COP3).
● The 4th Conference of the Parties for
1998
Framework Convention on Climate Change in
Benos Aires (COP4).

1999● The 5th Conference of the Parties for
Framework Convention on Climate Change inBonn (COP5).

2000● Metabolic Society Creation Promotion
Law enacted.
● Cabinet decision on Basic Environment Plan
● Long-term plan regarding research into
nuclear power and development and its use(New Long-Term Plan) enacted.

2000● The 6th Conference of the Parties for
Framework Convention on Climate Change in
Hague (COP6).

● Ministry of Environment launched.
Special Measures Law on the Promotion of
Proper Treatment of PCB enacted.

2001● IPCC 3rd assessment reportpresented.
● The 6th Conference of the Parties for FCCC in
Bonn (COP6 continued).
● The 7th Conference of the Parties for FCCC in
Marrakech (COP7).

2002● World Summit on Sustainable
Development in Johannesburg.
● The 8th Convention on Climate Change in
New Delhi, India.

●

2001
●

● Prospectus on the Promotion ofefforts to prevent Global Warming revised.
● Soil Contamination Law enacted.
● Law Concerning Promotion of Measures to
Cope with Global Warming (Global Warming
Action Law) enacted.
● Kyoto Protocol signed.
● Special Measures for Use of New Energy Sourcesin the Electric Power Industry (RPS Law) enacted.
● Law Concerning the Rational Use of Energy(Energy Conservation Law) revised.
● Law for the Recovery and Destruction of CFC fromSpecial Products (CFC Recovery Law) enacted.
● Formed Kyoto Mechanism Use Federation.
● Started accepting JI/CDM applications.
● Cabinet determined Basic Plan for the2003
Establishment of a Recycle-based Society.
● Acquired certification for Eco-leaf● Law concerning Promotion of Drive for2003
Environmental Label.
Environmental Conservation and● Started the CDM Project for the Small-scale
Environmental Education enacted.
● Law concerning Promotion of2004
Hydroelectric Power Generation in theKingdom of Bhutan.
Environment-friendly Business Activities by● Acquired ISO14001 Certification at the2004
Specified Utilities by means of Promoting
Provision of Environmental Information
Technical Test Center, Customers HQ.
● Adopted Management Vision of the Kansai
enacted.
Electric Group and CSR Action Charter of the
Kansai Electric Group.
● Adopted Kansai Electric Recycle Activities
Promotion Plan.

2002

2003

● The 9th Conference of the Parties for
Framework Convention on Climate Change in
Milan.

78

Comparison between Guidelines■Comparison with GRI Sustainability Reporting Guidelines 2002
Item

Page

Item

1.Vision and strategies

1.1
1.2

3.Governance structure and management system
Structure and governance

11,12
3,4

3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8

2.Outline of organization for reporting
Outline of organization

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9

1
1
61
53,54,81
1
1
1
1
2

3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
3.17
3.18
3.19
3.20

2
2
2
81
Not applicableNot applicable
79
23
22,24
2,51,52
2
2,63,64

2,51,52
15,51,52,62〜64
15,51,52,63
15,51,52,63

Controlling policy and management system

Back cover

Outline of report

2.17
2.18
2.19
2.20
2.21
2.22

61
61
−
21,61
−
21,61
11,12,1763

Participation of stake holders

Scope of report

2.10
2.11
2.12
2.13
2.14
2.15
2.16

Page

12,17,39,40,58−
38,50
14,43,44,47,67
21,45
Not applicable
19,20,57〜61
21,22,73

4.Comparison Table for GRI Guidelines

4.1

79

5.Performance index

Whole system
Cross sectional

26
24

Item

Page

Item

5.Performance index
Economic performance

EC1
EC2
EC3
EC4
EC5
EC6
EC7
EC8
EC9
EC10
EC13

5.Performance index
Social performance

1,74
*85
*98,99,100−*98*94,101*94,101*94,99,100
*105
30,56
37

Environmental performance

EN1
EN2
EN3
EN4
EN5
EN6
EN7
EN8
EN9
EN10
EN11
EN12
EN13
EN14
EN15
EN16
EN17
EN19
EN22
EN30
EN33
EN34
EN35

Page

18,71
43,44,46,53
18
18,32
18
−
−
18,26,32
71
18,39,40,72
18,43,45,72,73
40
Not applicable26
Not applicable
21,66
26〜32
28
41
32
43,44,47
18,47
23,24

LA1
LA2
LA3
LA4
LA5
LA6
LA7
LA8
LA9
LA10
LA11
LA12
LA13
LA15
LA16
LA17
HR1
HR2
HR3
HR4
HR5
HR6
HR7
HR8
HR9
HR10
SO1
SO2
SO3
SO4
SO7
PR1
PR2
PR3
PR6
PR8

1,59,74
−
60
60
58
58
58,74
57
−
59
−
60
60
58
59
59,60
57
67
−
57
60
57
57
57
57,59,65
57,59,6512
65
65
22,25,44,47,48,55,56
65,66
12〜16
12〜16,28
66
28
15,16

* Page containing Statements of Negotiable Securities for Kansai Electric (http://www.kepco.co.jp/ir/securities/80).

■Comparison with Guidelines for Environmental Report 2003
Item

Page

1.Basic items

1）
2）
3）

12,17
2,19,20,24,71〜73,75,76
18
23,24

3.Circumstances regarding environmental management

8）
9）
10）
11）
12）
13）

79

Page

4.Environmental load caused by business activities and circumstances of the efforts to reduce such load.

3,42,63,81,Back cover
1,11,12,74,77,78,81,84

2.Summary of environment-friendly policy, targets, and results in business activities

4）
5）
6）
7）

Item

21,22,39,40,45,73
67
27,28,33,34
28,49〜52,56,63
21,39,40
35〜38,49,50,56

14）
15）
16）
17）
18）
19）
20）
21）
22）
23）
24）

13,18〜20,29,31,32,46,47,71
13,18〜20,29〜32,43,44,46
18〜20,32
18〜20,31〜39,71,72,75,76
39,40,75,76
1,18,28,74
18〜20,31,43,44,72
18,40,41,75,76
18〜20,32,47,74
19,20,47
18〜20,23,24,26,28,31

5.Circumstances of the social efforts

25）

12〜16,49,50,55〜60,62〜67,74

IndexA

Air Pollution Preventive efforts
Afforestation project
Afforestation project model for
CO2 fixation
Amount of land reclamation
Award of Excellence in Environmental
Action Promotion

39
38
36

22

41

33
39
39
58

G

50
17

Global Environment Forum, Kansai
Global Environmental Action Plan
Global Environmental Project
Promotion Staff
Green purchase
Greenhouse effect gas

21
47
32

C

CFC
Combined cycle
Compliance
CO2 carbon fixation technology
CO2 emission
CO2 emission avoidance effectCO2 emission per electric energy used(purchased) (CO2 emission unit requirement)
CO2 reduction target
CO2 separation and recovery technology
CSR Promotion Council
Customer service
Customer satisfaction

36
31
65
37
25
26
26
26
33
21
15
15

D

Di-methyl-ether (DME)
Dioxins
Dust

33
40
39

E

e pack27
e7
38
Eastern Europe Energy Conservation Fund38
Eco Action
19, 20
Eco business53
Eco Cute
28
Eco-leaf environment label
28
Ecological greening
41
Economic effect of environmental
24
protection efforts
Effects of environment conservation
23
Environmental accounting
23, 24
Environmental Action Plan by
25
the electric utilities
Environmental conservation cost
23
Environmental education
22, 49Environmental efficiency
24
Environmental greening
41
Environmental household budgeting
49
Environmental management system
21
Environment Month49
Environmental policy
17
ESCO
54
Everyone s Eco-Friendly Campaign
49
F

Five Principles of the Global
Environmental Action Plan

H

28
28
28
27
27
40

HAP-e Package
HAP-e Plan
HAP-e Time
Heat pump
Heat storage adjustment contract
Hot water dischargeI6321, 22

IR Activities
ISO 14001
K

Kansai Atomic Power Information
Net-surfing
Kansai Economic Federation
Kansai Green Power Fund
Kansai Institute of Information
Systems and Industrial Renovation
Kansai Research Foundation forTechnology Promotion
Kyoto Mechanism

64
50
30

56
25

L

Life cycle CO2 emission requirement unit
Lighting service contract for
specific time zones
Load leveling

PCB (Polychlorinated biphenyl)
PDCA cycle
Personnel management system
Pluthermal Plan
Post-closure restoration project of
the underground coal mine site
PR facilities
Protection of rare plants
PRTR (Law)

18
22
50

31
28
28

36
62
42
40

R

45
45
35
43,44
46
43
43
30
32
44
43
41
29

S

Safety and sanitation activities
SFe gasSmall-scale hydroelectric
power generation CDM Project
Soil contamination
Solar power generation
Solid oxide fuel cells (SOFC)
Sulfur oxide (Sox) emission
Symposiums

M

Mangrove planting technology
Measures to cope withchemical substances
Monitoring

40, 4421
59
46

Radiation
Radioactive waste
Rainforest restoration technology
RecycleRecycle Fuel Storage Center
Recycling ratio of resources
ReduceRegional heat supply
Renovation of hydropower station
Resource Recycle Center for Pole
Transformer
Reuse
Roof garden
RPS Law (system)

30

58
32
37
40
29
34
39
49

T

35
40
45

Thermal efficiency of thermal
power generation
3R s activities
Transmission and distribution loss rate
TQM

31
43
32
21

N

New ERA Strategies
New energy sources
New Kanden Bldg.
Next-generation semiconductor elements
Nitrogen oxides (NOx) emission
Noise- and vibration-preventive efforts
Nuclear fuel cycle
Nuclear accident prevention efforts (system)

26
29
48
34
39
40
46
14

O

17

Outlook of the environmental load
Osaka Environment Award
Osaka Chamber of Commerce and Industry
P

43

B

Biotopes

Flue gas decarbonation technology (system)
Flue gas denitrification system
Flue gas desulfurization system
Frequency ratio of accidents

Offensive Odor Prevention Measures
100,000 People s Eco-family Campaign

40
49

U

Untapped energy sources

30

V

56

Volunteer activities
W

Waste power generation
Water pollution control measures
WBCSD
Welfare for the disabledWind power generation

29
40
38
55
29

80

Group Companies■Details of the companies (Consolidated subsidiaries and companies to which the equity method is applied)
Energy-relatedInformation technology

As of March 31, 2004

Lifecycle-related

SAKAI LNG Corp.

K-Opticom Corp.

The Kanden Industries, Inc.

Kanden Gas And Cogeneration Co., Inc.

K Cable Television Corp., Inc.

Clearpass Co., Ltd.

Kanden Energy Development Co., Inc.

KANSAI MULTIMEDIA SERVICE Co.

KANDEN Security of Society, Inc.

and two additions

Kansai. com, Inc.

KANDEN E HOUSE CORP.

5 companies in total

Akinai Biz Square Corp.

KANSAI Medical Net Co., Inc.

K-SQUARE, Inc.

KANDEN REAL ESTATE CO., LTD.

Kansai Telecommunication Technology

UJIDEN BUILDING CO., LTD.

Kanden Information System Co., Inc.

Kansai Jyutaku Hinshitsu Hosho Co., Ltd.

LINECOM Co., Inc.

Kanden Joy Life Co., Ltd.

and five additions 14 companies in total

Kanden Facility Management Corp.
URBAN SERVICE Co., Ltd.
Kanden CS Forum, Inc.
EL SUEHIRO FOOD SERVICE Co.

Electricity

and three additions 16 companies in total

TOKO SEIKI CO., LTD.

Nuclear Engineering, Ltd.

DAITO CO., LTD.

KANDEN WELBE Co., Inc.

NIHON ARM CO., LTD.

TOKAI DENGYO Co., Inc.

KINKI CONCRETE INDUSTRIES CO., LTD.

The Kanden Services Co., Inc.

Kansai Instrument Transformer Co., Ltd.

The Kanden Seisakusho Co., Ltd.

Kansai Power International Corp.

KINDEN CORP.

KANDEN KAKOH Co., Inc.

Kansai Power Venture Management Corp.

Kansai Tech Corp.

KANDEN AMENIX CO., LTD.

KANDEN GEO-RE Co., Ltd.

The Kanden Kogyo, Inc.

Kurobe Gorge Railway Co., Ltd.

Kanden-Ecomelts Co., Ltd.

NEWJEC INC.

Institute of Nuclear Safety System, Inc.

Kanden-el-farm, Inc.

KANSAI ENVIRONMENTAL ENGINEERING CENTER CO., LTD.

Kanden L-Heart Co., Inc.

CCL Co., Ltd.

Kansai Electrical Instruments Co., Ltd.

Kansai Power Business Support Corp.

MOSS WORKS KANDEN CO., LTD.,

SONODA INSTRUMENTS INC.

EL-Quest Co.

and 12 additions 19 companies inand eight additions 32 companies in total

total

Others■Restructure of the Group Companies
12 new companies (final composition)

29 companies at presentElectricity

Lifecycle-relatedInformation
technology

The Kanden Kogyo, Inc.
KANDEN KAKOH Co., Inc.
Nuclear Engineering, Ltd.
Kansai Tech Corp.
KANSAI ENVIRONMENTAL ENGINEERING CENTER CO., LTD.
NIHON ARM CO., LTD.
KINKI CONCRETE INDUSTRIES CO., LTD.
DAITO CO., LTD.
TOKO SEIKI CO., LTD.
Kansai Instrument Transformer Co., Ltd.

The Kanden Industries, Inc.
Mukonodai development Co., Ltd.
KANDEN REAL ESTATE CO., LTD.
THE AMAGASAKI TECHNOLAND CO., INC.

Kansai Electrical Instruments Co., Ltd.
SONODA INSTRUMENTS INC.
KANDEN WELBE Co., Inc.
TOKAI DENGYO Co., Inc.
The Kanden Services Co., Inc.
The Kanden Seisakusho Co., Ltd.
KANDEN AMENIX CO., LTD.
and two additions

UJIDEN BUILDING CO., LTD.
and three additions

Kanden Information System Co., Inc.
Kansai Telecommunication Technology

Kanden Plant Corp.

(conservation of power generation)

KANDEN POWER-TECH CORP.

(operation of power generation)

Nuclear Engineering, Ltd.

(power generation engineering)Kanden Engineering Corp.

(electric power transportation)

THE GENERAL ENVIRONMENT TECHNOS CO., LTD.

(environmental engineering)

NIHON NETWORK SUPPORT CO., LTD.

(distribution material and equipment)

ENEGATE Co., Ltd.

(Instruments)

The Kanden Services Co., Inc.

(outsourcing of services)

The Kanden L & A Co., Ltd.

(lease and insurance)

KANDEN REAL ESTATE CO., LTD.

(Real estate development)

KANDEN AMENIX CO., LTD.

(amenity)

Kanden System Solutions Co., Inc.

(information system)*Restructuring of the Group companies was implemented on October 1, 2004, except nuclear equipment test and inspection services of NIHON ARM CO., LTD. and so on.
*NIHON NETWORK SUPPORT CO., LTD. has not yet been incorporated as of October 1, 2004 and its name is provisional.

81

Let us know your thoughts and impressions.
This

reportcontains

some

specifics

ofenvironmental activities at Kansai Electric andintended to again an understanding of these efforts
from us many people as possible. Nevertheless,we image some of readers will find certain points
hard to understand, information to be insufficientand other disappointments. Therefore we would
like to use your frank thought and impressions as
reference for future activities. To do this, we ask
that you respond to the questionnaire on the backcover. Thank you in advance .

Environmental Planning Group,
Environmental Considerations Department
The Kansai Electric Power Co., Inc.

Tel 81-6-6441-8821

82

Please give us your thoughts and impressions

FAX:81-6-6441-3549

To: Environmental Planning Group, Environmental Considerations Department, Kansai Electric Power Co., Inc

Please check the items most closely match your opinions or impressions

1

I think this report is:□Easy to understandReason:2

3□Average□Difficult to understandHow would you rate Kansai Electric’s environmental activities? (Check all applicable boxes)
I. Providing Safe and Reliable Products and Services□very highly □good □not very good □not good
Reason:II. Addressing Global Environmental Problems□very highly □good □not very good □not good
Reason:III. Positive Contributions to Development ofLocal Communities□very highly □good □not very good □not good
Reason:IV. Respect for Human Rights and Buildinga Pleasant Working Environment□very highly □good □not very good □not good
Reason:V. Transparent, Open Business Activities□very highly □good □not very good □not good
Reason:VI. Thorough Compliance□very highly □good □not very good □not good
Reason:Was there anything in this report that you want to know more about or are interested in?
Comment on anything that impressed you in particular or anything that seemed
to be lacking in information. (Circle the number box that all applies)□ Message□ Features□ Managerial Vision□ Mission of and responsibility for the secure supply□ Safe and secure operation of the nuclear power plants Conceptual View of Our Environmental Load Environmental Management□ Efforts to improve customer service□ Environmental policy, Outlook of environmental load, Targets, and Result□ Environmental Management□ Efforts to cope with global environmental problems (New Era Strategy)□ Efforts to cope with global environmental problems (Efficiency)□ Efforts to cope with global environmental problems (Reduction)□ Efforts to cope with global environmental problems (Activities Abroad)□ Efforts to cope with global environmental problems□ Promotion of business activities suiting to the recycle-based society□ Environmental Communication□ Eco-business□ Contribution to the society as an enterprise□ Respecting human rights□ Measures for safety and sanitation□ Equal opportunity for employment and employee-friendly workplace□ Corporate governance□ Communication with customers on various occasions□ Establishment of compliance-promoting system□ Third party’s comment□ Face-to-face talk
□ Data□ Comparison between guidelines

4

Please give us your thoughts and impressions in this report

5

From what perspective did you read this report? (Circle the number box that best applies)□ As a customer of the company□ As an investor□ As a party who does business with the company□ As a government employee□ As someone affiliated with an environment-related NPO□ As someone in the mass media□ As someone involved in corporate environment activities□ As a student□ Other [Explain:

6]

How did you learn about this report?
□ Newspaper/magazine□ Other [Explain:□ The company’s website□ From a company employee□ From a friend]

Thanks you very much your cooperation. If your do not mind, please also fill in the following information.
Name
Address
Occupation (company name or organization)

Gender □Male □FemaleAge■ Main Places of Business

Head Quarters & Branch Office
Head Quarters

3-3-22Nakanoshima, Kita-ku, Osaka 530-8270 (until Dec., 2004)
TEL: 06-6441-8821
3-6-16Nakanoshima, Kita-ku, Osaka 530-8270 (as of Jan., 2005)

Osaka Kita Branch

3-9-3 Honjohigashi, Kita-ku, Osaka 531-8588

TEL: 06-6373-1541

Osaka Minami Branch

3-9-5 Hamaguchinishi, Suminoe-ku, Osaka 559-0006

TEL: 06-6672-1301

Kyoto Branch

579 Higashi-shiokojicho, Karasuma Nishi-iru, Shionokoji-dori, Shimogyo-ku, Kyoto 600-8216 TEL: 075-361-7171

Kobe Branch

6-2-1 Kanou-cho Chuo-ku, Kobe 650-0001

TEL: 078-391-7211

Himeji Branch

117 Junishomae-cho, Himeji, 670-8577

TEL: 0792-25-3221

Nara Branch48 Omoricho, Nara 630-8548

TEL: 0742-27-1237

Shiga Branch

4-1-51 Nionohama, Otsu, 520-8570

TEL: 077-522-2626

Wakayama Branch

40 Okayama-cho, Wakayama 640-8145

TEL: 073-422-4150

Wakasa Affiliated Branch

8 Yokota, 13 Goichi, Mihama-cho, Mikata-gun Fukui 919-1141

TEL: 0770-32-3500

Tokai Affiliated Branch

2-27-14 Izumi, Higashi-ku, Nagoya 461-8540

TEL: 052-931-1521

Hokuriku Affiliated Branch 1-2-13 Higashi-denjigatamachi, Toyama 930-8513

TEL: 076-432-6111

Tokyo Affiliated Branch

c/o Fukoku Seimei Building 2-2-2 Uchisaiwai-cho, Chioda-ku, Tokyo 100-0011

TEL: 03-3591-9261

Thermal Power Centerc/o Dai Building 3-6-32 Nakanoshima, Kita-ku, Osaka 530-6591

TEL: 06-6459-0433

Kansai Electric Hospital

2-1-7 Fukushima, Fukushima-ku, Osaka 553-0003

TEL: 06-6458-5821

Main Offices
Kujo Office

TEL: 06-6582-2881

Fukuchiyama Office

TEL: 0773-22-3101

Nara Office

TEL: 0742-36-1201

Ogimachi Office

TEL: 06-6373-3131

Maizuru Office

TEL: 0773-62-2540

Takada Office

TEL: 0745-53-1131

Ikeda Office

TEL: 072-752-5070

Miyazu Office

TEL: 0772-22-2112

Shiga Office

TEL: 077-522-2611

Mikuni Office

TEL: 06-6391-1061

Mineyama Office

TEL: 0772-62-0051

Hikone Office

TEL: 0749-22-0080

Hokusetsu Office

TEL: 06-6384-1131

Obama Office

TEL: 0770-52-0890

Yokaichi Office

TEL: 0748-22-2111

Moriguchi Office

TEL: 06-6908-4731

Takahama Office

TEL: 0770-72-1212

Wakayama Office

TEL: 073-422-8111

Takatsuki Office

TEL: 0726-76-3131

Mihama Office

TEL: 0770-32-0025

Shingu Office

TEL: 0735-22-5211

Moriguchi Office

TEL: 06-6908-4731

Kobe Office

TEL: 078-392-6200

Tanabe Office

Hirakata Office

TEL: 072-841-1131

Akashi Office

TEL: 078-912-2651

Gobo OfficeNanba Office

TEL: 06-6631-4101

Awaji Office

TEL: 0799-22-0605

Hashimoto Office

TEL: 0739-22-1212

TEL: 06-6481-3961

Higashi Sumiyoshi Office TEL: 06-6700-3131
Higashi Osaka Office

TEL: 06-6787-5011

Habikino Office

TEL: 0729-56-3381

Hanshin Office

TEL: 0798-67-3131
TEL: 0797-85-0201

Minami Osaka Office TEL: 072-238-8681

Sanda Office

TEL: 0795-63-2484

Kishiwada Office

TEL: 0724-22-4701

Himeji Office

TEL: 0792-92-3131

TEL: 075-491-1141

Kakogawa Office

TEL: 0794-21-3201

TEL: 075-611-2131

Aioi Office

TEL: 0791-22-0730

TEL: 0771-22-0149

Toyooka Office

TEL: 0796-22-3131

TEL: 0774-72-0029

Yashiro Office

TEL: 0795-42-0260

Kyoto Office
Sonobe Office
Fushimi Office

TEL: 0736-32-1245