Kansai Electric Power GroupCSR Report 2007

Editorial policies
Overview of Kansai Electric Power
Company name:(as of March 31, 2007)• This report on the Kansai Electric Power Group’s work related tothe economy, society, and the environment is for our customers
and stakeholders that support our businesses.

The Kansai Electric Power Company, Incorporated

Headquarters:

3-6-16 Nakanoshima, Kita-ku, Osaka 530-8270

Date of establishment:

May 1, 1951

Paid-in capital:¥489,300 million•

We referred to the Global Reporting Initiative (GRI) Sustainability
Reporting Guidelines (3rd edition) and the Ministry of theEnvironment’s Environmental Guidelines (fiscal 2007 edition).

• This report comprises six chapters that correspond to the six

Shares of stock outstanding:962,690,000

Main business:

Electric power industry

Number of group companies:

59 consolidated subsidiaries, 2 affiliates accounted for by the equity method

Number of employees:

29,805 (consolidated), 20,292 (non-consolidated)

Electricity sales:

147,257 million kWh

Operating revenues:¥259,630 million (consolidated), ¥239,680 million (non-consolidated)

Total assets:¥682,720 million (consolidated), ¥618,890 million (non-consolidated)

Power generation facility capacity:(Total 34.86M kW)

action principles in the Kansai Electric Power Group CSR Action
Charter that we adopted in March 2004. Each chapter describes
how the corresponding action principle is applied in our businessactivities.

• We have undergone inspections by a third-party organization toprovide assurance of the objective reliability of the environmental
information provided in this report. As a result of these inspections
and fulfilling the Environmental Report Inspection Registration
Mark Allowance Standards of The
Japanese Association of Assurance
Organizations for Environmental Information(http://www.j-aoei.org/), we are allowed touse the mark on the right.

Contents
1
2
3
5
6
7
8

1
2

Gross system input:(Total 159.982B kWh)
From other companies
and other sources 26%

Hydropower 23%

40.345B kWh Nuclear 41%
65.911B kWh
% kWh
9
er 3B
ow .97
op 14 Thermal 24%
dr

8.19M kW
Thermal 49%
Nuclear 28% 16.91M kW

9.77M kWHy

38.753B kWh

Note: Due to rounding, the total may not equal 100%.

System map

Otozawa

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

Kurobegawa No. 4
JohanaShimokotori
MiboroMihamaTakahama Reinan
Ohi

MaizuruSeki
Shin-Ayabe
OkawachiHydropower plant

Ina
ga
wa
Kit
aO
Yo sa
do ka
ga
wa

Hi
me
Hi ji Nme o.
ji N 1
o.
2

Ho
ku
se
tsu

SeibanAioi

Legends:

Substation
Switching station
Converter station
500 kV transmission line(500 kV)
187-275 kV transmission line
(187–275 kV)
Tie point with other power companies
Kansai Electric Powers’ supply area

1

Kansai Electric Power Group CSR Report 2007

Higashiomi

Minami Kyoto

Shiki

Sakaiko

SeidanHigashi Yamato

Tanagawa No. 2
Kinokawa

Kainan䡵 Report publication datePublished October 2007.
2006 edition published November 2006.
2008 edition to be published in the autumn of 2008.

41

Editorial policies, Contents
Message from our President
CSR policies
Efforts to promote CSR
Corporate governanceOur pledge to stakeholders

Safe, Stable Delivery of Products and Services

9 Our mission and responsibility to provide a safe and stable supply of electric power
11 Working to provide the best service
12 Creating value for customers as a unified group
Progressive Approach to Environmental Problems

13 Doing our part in the fight against global warming, Highlights from fiscal 2006
14 Environmental policy
15 Status overview of our business activities and environmental load (fiscal 2006)
16 Independent review
17 Eco action (targets and results)
19 Environmental management system
21 Environmental accounting
23 Global warming prevention efforts
24 Efficiency – achieving more efficient energy use throughout society
25 Reduction – decreasing greenhouse gas emissions through the supply of electric power
26 Activities Abroad – efforts to prevent global warming overseas
27 Responding to community environmental issues
29 Promotion of business activities suitable for a sound material-cycle society
31 Efforts to protect the natural environment
32 Efforts by group companies
Proactive Contributions to Development of Local Communities

33 Contributions to society as a corporate citizen
Respect for Human Rights, Development of Favorable Work Environments

35 Promotion of diversity and creation of comfortable workplaces
Highly Transparent and Open Business Activities

37 Diverse opportunities for communication with stakeholders
Strict Enforcement of Compliance

39 Consciousness raising and autonomous efforts in individual workplaces
40 Implementation of policies for ensuring compliance with applicable laws and regulations

About the Kansai Electric Power Group

Okuyoshino
Kihoku

t
Gobo
ren
Gobo

ur
ct c
dire inekV sion l
0±25 nsmis
traComplete map of Japan䡵 Scope of report
Period covered: April 1, 2006, to March 31, 2007.
(Important items from outside this period have also been
included in the report.)
Companies covered: The Kansai Electric Power Co., Inc., andKansai Electric Power Group companies
Areas covered: economic, social, environmental

Shin-ikoma

Nanko

Thermal power plant
Nuclear power plant

Keihoku
Nose Nishi Kyoto
Kisenyama

Yamazaki

Ako

Maruyama

Okutataragi
Okutataragi

3
4
5
6

Overview of Kansai Electric Power⽧The following symbol and the relevant URL appear in this reportwhen related information is available on our Web site.
Kansai Electric Power Group CSR Action Standards
http://www.kepco.co.jp/corporate/csr/standards.html

Please see our Web site for detailed information about the Kansai Electric PowerGroup’s work related to corporate social responsibility and the environment:

http://www.kepco.co.jp/corporate/csr/

Kansai Electric Power Group CSR Report 20072

Message from our President

Our mission:

Continue to serve customers
and communities
Since its establishment, for over half a century, Kansai
Electric Power has continued to fulfill its greatest
mission to its customers and society through the safe,
reliable provision of its product—electricity—whileconsidering the environment and valuing its relationshipwith local communities.
The Company staked its future on the constructionof the Kurobegawa No. 4 power station (Kuroyon) to
resolve the acute post-war power shortage, in what may
truly be described as the crystallization of its sense of
mission for the stable provision of electric power. This
spirit, the Kuroyon Spirit, has been passed down to us
and still lives on today. For example, after the Great
Hanshin-Awaji Earthquake (the Kobe earthquake) in
1995, the entire Company, including staff who werethemselves victims of the quake, joined hands in therestoration of power facilities to bring our customers
electricity as swiftly as possible. I regard this powerfulsense of mission as something of which the Company
may be proud.
In recent years, alongside progressive power
supply liberalization, the Kansai Electric Power Grouphas greatly expanded its business areas to encompass
fields such as information technology and lifestyleamenities in addition to energy. However greatly ourbusiness environment may change, it is my hope thateach and every employee will do their best to make ourcustomers happy, and that the Group will continue tosupport the diverse lifestyles of consumers and provide
the foundation for their economic activities.

Our corporate social responsibility:

The Kansai Electric Power GroupCSR Action Charter

Shosuke Mori
President and Director

3

Kansai Electric Power Group CSR Report 2007

For us, the meaning of corporate social responsibility(CSR) is to “reliably execute all our business efforts andsteadily fulfill our responsibilities as a business to ourcustomers, the local communities where we operate,
our business partners, our clients, shareholders,
employees, and our numerous other stakeholders.” For
this purpose, in March 2004 we established the Kansai
Electric Power Group CSR Action Charter, and in orderto realize its goals and fulfill the spirit that we have hadsince our establishment, we have reorganized ourefforts according to six action principles, showing
society our commitment to fulfilling our corporate social
responsibilities proactively on the basis of theseprinciples.

To restore trust:Comply with all regulations and fulfill all
responsibilities that we must fulfill
Just at the point when we had reconfirmed ourcommitment to proactive engagement in CSR, in August
2004, inadequacies in our quality assurance andmaintenance management systems led to theoccurrence of a serious accident at Mihama Power
Station Unit 3. We have reflected deeply on thisincident, and based on the firm determination that such
accidents should never occur again, not only made“first priority to safety” our most important management
issue, but also engaged in the further promotion of CSR.
In this context, with confirmation since around theend of 2006 of successive incidents of inappropriate
management, such as the falsification of data onhydroelectric, thermal, and nuclear power plants, failure
to apply for permits, and double billing for electricity
use, which have once again impaired the trust placed in
us by society, I offer my profound apologies once again.
Restoring trust that has been lost in this way is noeasy matter, but we regard these incidents andscandals as extremely serious, and the entire Group will
join together in working even harder to rebuild a cultureof safety, be rigorous in compliance, and engage in theimplementation of CSR.
From a systematic perspective, every division is
implementing a review of business, and is engaged indeveloping the necessary systems and optimizing its
allocation of management resources such as budgets
and staffing.
Alongside these activities, we consider it vital forevery employee to develop his or her perception. They
must learn to be aware of problems, make appropriate
decisions, and naturally take the correct action under
everyday circumstances, not only when they are underpressure. Even if things have been done in a particularmanner in the past, each employee must have thecourage to change them. I believe that promoting thisorganizational climate in which staff “comply with all
regulations and fulfill all responsibilities that we must
fulfill” throughout the Company will result in customer

satisfaction and to our being trusted by society, which inturn will lead to motivation and growth of individual
employees.
To promote my philosophy of “Management thatvalues people” on the basis of this perception, I personally am proactively visiting workplaces on the frontline and deepening communications throughout theCompany. Through these activities I have gained asense of how CSR has come to be implemented indifferent workplaces.
We will continue such step-by-step initiatives,
responding sincerely to the opinions of our customers
and all our stakeholders, continuing to provide products
and services that have genuine value to our customers
while fulfilling the Group’s overall potential. We will work
toward the goal of being a corporate group that is both
trusted and preferred by society.

Our communication goal
for this CSR Report:

We want to keep moving forward
together with you
Our aim is to deepen communication with you by meansof this report. It follows our six action principles
developed for the implementation of CSR, anddescribes the initiatives undertaken by the Kansai
Electric Power Group in as practical a way as possible. I
hope you will come to understand our various efforts,
and would be grateful to receive your unrestrained
feedback about points you have noticed, future issues,
your expectations, and any other suggestions.

Kansai Electric Power Group CSR Report 2007

4

CSR policies

Efforts to promote CSR

We here set out the Kansai Electric Power Group CSR Action Charter, made up of our six action principles, and the Kansai
Electric Power Group CSR Action Standards, which enable all Group employees to implement these actions forthemselves.

Every employee should deepen their understanding of CSR, and constantly carry out their business with this awareness.
We regard this system as vital for the promotion of CSR, and the Kansai Electric Power Group is undertaking CSR
promotion efforts led by our CSR Promotion Council.

The Kansai Electric Power Group CSR
Action Charter

CSR promotion system centered on our
CSR Promotion Council

The power behind our business efforts is provided by our
individual employees. We respect that each of ouremployees is irreplaceable, and we are endeavoring to taketheir ideas seriously and maximize their strengths by building
a corporate culture and creating structures based on thethemes of “active staff,” “interesting work,” “strong frontline
workplaces” and “harmonious workplaces.”
Furthermore, we set specific standards at the individuallevel in the Kansai Electric Power Group CSR Action
Standards in May 2005 to help individual employees, as
members of society, fulfill their own responsibilities reliably
and be able to respond to the expectations of society. As aresult, individual employees are also carrying out their workduties in accordance with our CSR Action Standards now.

2

3

Interesting work

Harmonious
workplaces

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

5Kansai Electric Power Group CSR Report 2007

Proactive Contributions to Development ofLocal Communities
As a business operator closely linked with its local
communities and the lives of their inhabitants, theKansai Electric Power Group fully recognizes that its
own development is inconceivable without thedevelopment of its local communities. Accordingly, we
will proactively contribute to the development of our
local communities through initiatives that target thevitalization of those communities and the local economy.

4

Respect for Human Rights, Development ofFavorable Work Environments
The Kansai Electric Power Group fully recognizes that
respect for human rights is a vital corporate obligation
based on international agreements. Accordingly, we will
strive to secure safe and comfortable work
environments free of all discrimination for all persons
who are in any way involved in our business activities.

Highly Transparent and Open Business
Activities
In order to properly reflect social opinions in its businessactivities, to ensure fairness in the management of its
business operations, and to faithfully carry out its
accountability to society, the Kansai Electric PowerGroup will promote increased communication with all
members of society and conduct business activities thatare highly transparent and open.

Strong frontline
workplaces

Corporate
culture and structuresthat help employees dotheir best forcustomers

Progressive Approach to Environmental
Problems
As a provider of energy services that are closely
connected with the environment, the Kansai ElectricPower Group fully recognizes the scale of the impact its
business activities have on the global environment.
Accordingly, we will strive to alleviate the environmental
burden accompanying our business activities, and seek
to be a world-class corporation in terms of safeguarding
the environment. Furthermore, we will proactively
contribute to the development of a sustainable society
through progressive initiatives that target the creation ofan ever better environment.

5
Active staff

As a business operator responsible for lifelines that are
indispensable to society, the Kansai Electric PowerGroup fully recognizes that its operations support thefoundation underpinning the daily lives of its customers.
Accordingly, we will take every conceivable measure,day by day, to deliver our products and services safely
and stably.

6

Strict Enforcement of Compliance
The Kansai Electric Power Group fully recognizes thatas members of society business corporations are
obligated to establish a strong corporate ethic and tocomply with all laws, regulations and other rules bothwithin and outside the company. Accordingly, we will
carry out those obligations as the underlying basis of all
our activities. We will also develop the mechanisms toensure that these obligations are carried out, andpursue their continuity and further improvement.

The Kansai Electric Power Group has established a CSR
Promotion Council with the President as the Chair. This Council
is undertaking the planning of comprehensive policies related
to promoting CSR throughout the whole Group, including thecoordination and adjustment of specific policies, the promotionof implementation, and other measures.
Kansai Electric Power is developing a range of different
initiatives based on the policies planned by the CSR Promotion
Council. We have established CSR Oversight Managers andCSR Oversight Desks in every Group company, and areproactive in providing them with information and exchanging
opinions by means of Group Communication Meetings.
As well as making good use of this system in the future topromote CSR throughout the Group, we are investigating
comprehensive policies and promotion measures whileconsidering the opinions of each of our Group business sites.
CSR promotion system
Kansai Electric PowerGroup Communication Meetings, various
group company committees, etc.

The Kansai Electric Power Group CSR
Action Standards

1

Safe, Stable Delivery of Products and Services

Each Kansai Electric Power Group company

The business activities of the Kansai Electric Power Groupare supported by our customers, shareholders, business
partners, investors and employees, as well as the residentsof the region and many other people throughout society. This
trust that the Kansai Electric Power Group has received fromour stakeholders is the foundation for fulfilling our businessmission and achieving continuous growth.
At Kansai Electric Power, we see our Group-wide
corporate social responsibility – CSR – in two ways. First, our
CSR is to fulfill, with absolute assurance, our responsibilities
as a member of society through rigorous compliance,transparency, etc. Second, our CSR is to contribute toongoing social development by responding, in good faith, tothe expectations that society embraces toward ourGroup-wide business activities.
Based on the foregoing understanding, in March 2004
we drew up the “Kansai Electric Power Group CSR Action
Charter.” It includes the following six principles to serve as
guidelines in the performance of business activities.

Kansai Electric Power GroupCSR Action Charter

President
CSR Promotion Council
Compliance Committee

Environmental Board

Each headquarters division

Branches and district offices

Sales offices, operation and maintenanceoffices, power generation facilities, etc.
In addition, other types of specialized issues are investigatedby the following committees.
□ Information Security Committee□ Promotion Committee for Education about Discrimination□ Community Harmony Committee□ Safety and Health Committee

Concrete CSR Promotion Efforts
䡵 Communication between management and frontline

workplaces
Our managers, including our
President, proactively visit our
frontline workplaces where they
convey the Kansai ElectricPower approach to CSR
directly and endeavor topromote understanding. In theprocess, we are striving, by Our president visits frontline workplaces.
means such as exchanging
opinions, to identify issues and problems early for rapid
reflection in business operations.
䡵 Efforts to raise awareness by appointing and training

CSR promotion leaders
We are undertaking awareness-raising efforts for all employees
at every Kansai Electric Power workplace by appointing andtraining CSR promotion leaders. In addition to instructions fromthe President, these training sessions include lectures fromexperts outside the company on compliance and CSR, as wellas case-study training in small groups, with the aim of
improving the ability to discover problems and resolve issues.
Then, based on what they have learned in training, theseleaders individually conduct awareness-raising efforts in theirown workplaces. We are also including CSR-related content inother training sessions at
every level of the organizationas part of our effort to make
CSR an integral part of ourcorporate culture.
* As of April 2007, about 110 section
managers and department managers
had been appointed as CSR promotion
leaders.

CSR promotion leader training

CSR Procurement Policy
Basic Philosophy of Procurement Activities
Aiming at the optimal formation, maintenance, and operation ofequipment and facilities, the Purchasing Department of Kansai
Electric Power will procure, at the appropriate time, equipment,materials, and services that excel in terms of safety, quality and pricewhile keeping the environment in consideration. We would like topromote our CSR activities through such procurement.
As these procurement activities are supported by our business
partners, we will work to fortify relationships based on trust whilebuilding even more solid partnerships.
For this purpose, the department has set out and is implementing
standards for the procurement activities listed below.

Behavioral Standards for the Procurement Activities

4. Highly transparent, open transactions
In order to procure, at the appropriate time, equipment, materials, andservices that excel in terms of safety, quality and price, we open our doors
wide, both within Japan and overseas. Therefore, we are constantly
examining the possibility of introducing new products and technologies, aswell as that of starting business with new companies. Suppliers are
selected in an equitable, fair manner in pursuit of economic rationality, withsocial rationality also taken into consideration. Decisions are made basedon such factors as safety, quality, technological strength, environmental
consideration, levels of trust with our Company, price, confirmed delivery
date, implementation of maintenance and management, after-sales service
and response to accidents and malfunctions.
5. Thorough compliance
We comply with all applicable laws and regulations and with the spirit that
underlies them, paying particular attention to compliance with safetyrelated legislation, respect for human rights (prohibition of child labor,
forced labor, etc.) and strict management of personal and confidential
information.

1. Making safety the highest priority, while maintaining andimproving quality and technological strengthWith safety as the top priority, we are implementing the required measures
to ensure public safety/sanitation and to prevent industrial accidents. We
are also implementing measures that contribute to the maintenance andimprovement of quality and technological strength to enable the optimal
formation, maintenance, and operation of equipment and facilities.
2. Consideration for the environment
We promote the procurement of equipment, materials, and office supplies
with a low environmental impact (green procurement), and contribute to
the creation of a sound material-cycle society in partnership with ourbusiness partners.
3. Establishment of solid partnerships
By collaborating with our trading partners in efforts to improve the supply
chain, we are building strong, trusting relationships with the aim of mutual
growth and development.

Kansai Electric Power Group CSR Report 20076

Corporate governanceOur pledge to stakeholders

To enhance its corporate value on a sustained basis while maintaining the transparency and soundness of its business
operations, Kansai Electric Power and its Group companies view improvement of corporate governance as a vital element
integral to operational management. Unstinting efforts focus on that goal.

At the Kansai Electric Power Group, we interact with diverse stakeholders in our various business activities. We resolutely
discharge our responsibilities as a full member of society and respond in good faith to the expectations of all stakeholders. By
earning the trust of stakeholders, the Kansai Electric Power Group makes a vital contribution to sustainable social development.

Strategic responses to management issues
Kansai Electric Power takes proactive steps to enhance its
corporate governance capability on an ongoing basis. Board of
Directors meetings are convened regularly once each month,complemented by extraordinary meetings held when deemednecessary, and it is here that matters of essential importance toGroup management are deliberated and decided. In addition, all
Directors are continuously audited through regularly issued
reports on the execution status of the duties incumbent uponthem.
In executing important business matters, the Company
pursues swift and proper decision-making by convening
executive meetings regularly, in principle once every week.
Here, the executives decide on strategic responses tomanagement issues, as a way of enhancing corporate value on
a continuing basis.
The system of executive officers was introduced in order toseparate the executive and auditing functions of management
and to boost the speed and efficiency of business execution.

Assurance of Transparency and Soundness
Kansai Electric Power adopts a system of Corporate Auditors.
The Corporate Auditors attend important meetings, including
Board of Directors meetings and executive meetings, where theystate their opinions, listen to explanations by the Directors
pertaining to matters of importance to Company management,
and look into the business and assets status of the Company’s
main bases of operation and Group companies. By auditing the
Directors’ execution of their duties from the perspectives of legal
conformity and propriety, all the while maintaining a wholly
independent stance, the Corporate Auditors ensure thetransparency and soundness of the Company’s business
operations. In addition, meetings are regularly convened
between the Corporate Auditors and Managing Directors, et al.,as a way of promoting exchanges of opinion.
To support the duties of the Corporate Auditors and Board
of Auditors, an Auditing Office (13 members) has been
established. This is a specially appointed organization in chargeof actual auditing duties, operation of Board of Auditors
meetings, etc. To ensure the Office’s independence, it functions
directly under the Board of Auditors and does not perform anyother duties relating to the executive functions of the Group.

Outside officers have also been appointed: three Directors
and four Corporate Auditors, the latter representing a majority
among the seven Corporate Auditors in total. Outside Directors
and outside Corporate Auditors have no special rights orinterests in the Company.

Management of risk accompanying
business activities
In line with the “Kansai Electric Power Group Risk Management
Rules,” risk accompanying business activities is managed
autonomously by the executive section of each respective
business division. As to risk deemed of importance acrossmultiple organizational levels, risk management is strengthened
by determining, when necessary, points in risk management thatare special in nature, in which case experts provide advice andguidance to the various business execution divisions.
In addition, a Risk Management Committee has been
formed to manage risk comprehensively. The Committee strives
to manage risk accompanying Group business activities down toa level deemed appropriate.

Customers

Employees

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

Enhancement of internal audit functions
The Kansai Electric Power Group has established an Internal
Auditing Committee whose functions are to share and deliberatea broad range of management issues relating to quality orsafety, secure views and information from outside the Company
and, from an impartial and specialized standpoint, maintainproper internal auditing of the Group as a whole.
An Office of Internal Auditing, consisting of 41 members,
has also been established as an organization specially assigned
to perform internal auditing. The office conducts regular auditingof risk management systems, risk management status, etc., andsubmits proposals or reports to the executive meetings
concerning internal auditing plans and their results. At thevarious work areas, activities needed for making improvements
in light of the auditing results are carried out in an ongoing quest
to ensure proper business management.
As the vital overseers of corporate governance, theCorporate Auditors, internal auditing division (Office of Internal
Auditing) and Accounting Auditors coordinate, at their discretion,in the performance of auditing duties. They also maintain close
ties for exchanging views toward auditing results, etc.

At Kansai Electric Power, our employees are ourdriving force. We work hard to create anorganizational climate and system that motivate
and inspire our employees, giving them
opportunities to develop their abilities to theutmost.

Local
communities

As an enterprise with strong connections tocommunities and individual lifestyles, Kansai
Electric Power joins hands with local
communities to make an active contribution tosolving the issues that confront them, building atrusting relationship with local communities.

Shareholders
and Investors

Business
Partners

By disclosing necessary information in a fair
and timely manner, and working constantly tobuild enterprise value, Kansai Electric Power isbuilding a stable relationship with ourshareholders and investors.

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

Overview of corporate governance
General Shareholders’ Meeting
Appointment

Appointment

Board of Directors Meeting (Directors)

Audit

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

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

ReportAuditing Office

Inquiry

Approval

Submission

ReportCommittee organization

Accounting
auditing

Fine-tuning of plans, inspections and deliberations

Various committees(CSR Promotion Council, etc.)

Risk Management
Committee

Internal Auditing
Committee
Etc.

ReportDetermination and instructionof management measures

Business execution divisions(business segments and subsidiaries)

7

Kansai Electric Power Group CSR Report 2007

Appointment

Corporate
Auditors

Internal audit

Audit
reportApproval ofinternal auditing
plans, etc.

Investigation

Accounting Auditors(account auditing)

Audit report

Office ofInternal Auditing

Internal auditing
Reports

Kansai Electric Power Group CSR Report 20078

Safe, Stable Delivery of Products and Services

1

Our mission and responsibility to provide a safe and stablesupply of electric power
Providing electric power safely and stably to our customers—that in itself is our most important mission. To fulfill
this mission, Kansai Electric Power takes responsibility for the entire process from power generation to sales, andis working to ensure a stable power supply and prevent accidents and disasters.

Promoting the “best mix” of power sources
As Japan is poor in natural resources, it has a fragile energy
structure that is dependent on imported or specific energy
sources.
Kansai Electric Power has already made numerous
efforts to create a suitable combination of multiple energy
sources that is not too dependent on any specific one,
including moving from oil to nuclear power, natural gas andcoal.
Kansai Electric Power seeks an optimal combination of
power sources that puts safety assurance first and takes
comprehensive consideration of economic, energy security
and environmental impact characteristics.
We pursue the optimum generation mix with a strong
focus on nuclear power including Nuclear Fuel cycle,
implemented by thermal and hydro operations.

쎲 Power source composition comparison
Composition ratio of power generation facilities at the endof the fiscal year
2006
(results)

25

2016(planned)

28

11

21

12

19

(Unit: %)

21

13

9

20

12

9
1

Power source composition ratio
2006(results)

45

2016(planned)[FY]

48

Nuclear

Coal

LNG

18
18
Oil/other

Pumpedstorage
Hydro

18
18
Conventional
Hydro

7

Providing higher-quality electric power
To provide electric power safely and stably, Kansai ElectricPower operates power grids that link power stations with
consumers reliably, and is striving for the optimal configurationof facilities. We are also engaged in rigorous efforts to prevent
accident reoccurrence. As a result, in 2006, Kansai ElectricPower’s electricity achieved one of the world’s highest levels in
power supply reliability.
Kansai Electric Power will continue to use new technology
for grid operation, and implement the effective, planned
replacementofexisting
facilities with new technology
and construction methods.
Through such appropriate
operation, maintenance, andconstruction work, we willcontinue to provide electric
power safely and stably.

8
1

Renewable
Energies

Note: Fiscal year-end facility numbers and electric power generation
amounts include electric power received from other companies.

쎲 International comparison of annual accidental
power outages per customer household
Min/household
80

73

Procurement of fuel for thermal power generation has stability
as its basic premise, and Kansai Electric Power is distributing
its procurement sources and contract periods for the oil, LNG,
and coal that form its different types of fuel in the pursuit offlexibility and economy, while considering the environment.
For oil, we have already secured petroleum terminals
outside the company and our own company tankers, and areengaged in maintaining and strengthening our oil procurement
mechanisms.
In November 2006, a basic agreement was reached on
extending the Western Australia contract for LNG, and we are
currently also in discussion on extending the Indonesian
contract. As well as these existing contracts, we are also
engaged in efforts to acquire gas prospecting rights in theAustralian Pluto Project, which Kansai Electric Power isscheduled to purchase,with the aim of combining
a range of procurement
strategies to enhance thestability of procurement.
With the start ofoperations in 2010 of Unit
2 of the Maizuru Power
Station in sight, we areworking to secure coaland cargo vessels for theWorking to ensure stable procurement of all fuels

9

Kansai Electric Power Group CSR Report 2007

Maintaining and improving technologicalprowess and nurturing successors

At Kansai Electric Power, reflecting on the FY 2004 accident
at Mihama Nuclear Power Station Unit 3 and the unfortunate
incidents that have taken place, we are moving ahead with
provisions to realize work execution that makes safety thehighest priority. In practice, we are aiming to make proactive
investments of resources, review rules and manuals basedon actual workplace situations, and develop environments
where frontline workers can lead in expressing needs andtaking actions. We are also engaged in clarifying the divisionof roles between Kansai Electric Power Group companies,
contractors, and others.
In particular, for work duties related to facility safety
maintenance, we have set our goals as “appropriate andcertain execution” and “fulfillment of the responsibility to
explain to the outside.” To this end, we are advancing thecreation of a quality management system (QMS) based on
the approaches of ISO 9001. To improve the practicability ofthis QMS in the future we will carry out continuous
improvement, expand it in wider fields, and press ahead withsystems for fixing it in place.

Kansai Electric Power is promoting a range of efforts tomaintain, improve, and pass on the expertise and skills
particular to the electricity business. Examples include using
personnel training support tools to clarify expertise and skills,
the use of skills presentation meetings to maintain andimprove the capacity for early restoration after accidents, andconstruction of a knowledge database to share techniques
and know-how.
In addition to these efforts, since fiscal 2007 we have
implemented an Expert Technician Recognition System. Thissystem certifies employees who possess high-level expertiseand skills fostered through a wealth of experience and daily
study as Expert Technicians, who will be assigned the role of
instructing and training junior employees through everyday
work duties as well as dealing with technical issues in theworkplace, with the aim of the system being to pass on such
expertise and skills.

Continuous improvement of the quality management system

Customers

69

70

Communication Responsibilities ofCommunication

Resource application Evaluation andmanagement
improvement

45

40

Input

Requests

30
19

20
10
0

Customers

management staff

60
50

Stable procurement of fuels

Reform of fundamental work processes
and launch of quality management system

쎲 QMS model built on processes

1
10

5

future. In October 2010, we will began operating Kansai ElectricPower’s first dedicated coal vessel, the Mizunagi Maru, and areenhancing our procurement capacity.

Satisfaction

OutputProduct realization Public safety assurance(Planning and executionof work duties)

Stable supply ofelectric power

Skills must be passed on to junior employees.

Efforts to add value

4

Information flow

KEPCO
(FY 2006)

Japan(FY 2005)

UK(FY 2001)

USA(FY 2002)

France(FY 2001)

Source: Research by the Federation of Electrical Power Companies of Japan“I am passionate about passing on my expertise and skills.”
On being appointed an Expert Technician

쎲 Annual power interruption time per household(including stoppages due to work)
Min/household
200(Power interruption includes stoppages due to accidents and work.)
Due to the Great
Hanshin-Awaji earthquake100
Due to typhoon
Due to typhoon

Shigeru Okubo

0
83

85

87

89

91

93

95

97

99

01

03 04 05 06

Expert Technician
Abiko Power System Center
Osaka-Minami Operation and
Maintenance Office

At the Abiko Power System Center, which
maintains facilities in the southern part of Osaka
Prefecture, I am responsible for maintaining
protection relay equipment. This equipment
instantaneously detects and eliminates
accidents that occur in transmission cables andelsewhere in order to prevent power outages.
Should a lightning strike occur, for example, I
am relieved when this equipment eliminates thecause of the accident, prevents a power
outage, and returns power transmission tonormal, as that means there has been no
negligence in my maintenance and inspections.

Now that I have been appointed an Expert
Technician, I feel the weight of this responsibility
even more heavily. I am passionate about
instructing my juniors to ensure that myexpertise and skills are securely passed on,
and would also like this know-how to berecorded in a manual.
To respond to advances in technology, I not
only continue to increase my own expertise andskills, but also hope to contribute to improving
the company’s overall expertise and skills bystudying together with other Expert Technicians.

(FY)

Kansai Electric Power Group CSR Report 200710

Safe, Stable Delivery of Products and Services

Safe, Stable Delivery of Products and Services

Working to provide the best service

Creating value for customers as a unified group

Offering our customers services that will always ensure their satisfaction. The Kansai Electric Power Group reflects thewishes of customers as far as possible in terms of service content and electricity rates, and is implementing a range ofinitiatives to improve the quality of individual employees’ responses.

The Kansai Electric Power Group is not limited to energy, but safely and reliably provides customers with a variety of
attractive products and services to support their lifestyles and businesses to ensure customer satisfaction, in the quest
for the sustainable growth of the entire Group.

Improvement of customer service

Supporting customers’ lifestyles andbusinesses as an all-round life-support
providerIn order to promote business activities that are responsive to
our customers, Kansai Electric Power is developing a range
of initiatives focused on our call centers and Electric Life
Consultation Office. One example is the collation andanalysis of customer opinions gathered through businessactivities with direct customer contact. The customer needs
identified in this way are reflected in improvements to
products and service value.

• Customer service improvement philosophy
Collection of opinions/comments

Value-added services

Autonomous activities at individual
centers
Since 2004, individual sales offices and other centers have
gradually been implementing activities to improve their
responses to customers as part of their autonomous
operation with the aim of making us a “customer satisfaction
no. 1 enterprise.” In these activities, individual staff debate
how to act from the perspective of customer response,
resolutely adopt customer orientation in their businessenvironment, hold awareness surveys, workplace meetings,
and leaders’ meetings as necessary, while obtaining advice
from lecturers outside the company, with the aim ofpromoting behavioral changes, continuing until theireffectiveness is confirmed.

Improvement of base operation technologies• Effective use of customer opinions
Collection andaccumulation

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

e-Patio(See p. 38)(See p. 37)

Electric life

Sharing Analysis andandutilization examination

Customer opinions

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

Product and service Information anddevelopment
PR enhancement

Service
improvement

䡵 Implementation of customer satisfaction surveys

Kansai Electric Power employs specialist companies to
conduct customer satisfaction surveys by telephone. We
have implemented surveys of customers who have madevarious applications to our company continuously since1993. In these surveys, customers are asked to give theirimpressions of our staff and evaluate the handling of theircases. In this way, we are able to objectively determine theservice levels of our sales offices, verify the results of efforts
to improve our work, and identify areas for further
improvement. We are also working to raise the levels of ourservices by setting targets and improvement actions for
subsequent business periods.

Leaders’
meetings

Workplacemeetings

Assistance from corporate officers,
branches, and headquarters

After the activity period finishes,
continue autonomous operation
at each sales officeBase operation

Guidance from external lecturers
Declaration of implementation

Satisfaction survey

Surveys of employee awareness, behavior, etc.

Kansai Electric
Power

Customer

As an all-round life-support provider, the Kansai ElectricPower Group is concentrating on three strategic areas:
energy-related business, lifecycle-related business, andinformation technology (IT).

complexes
In the Momosaka Comfo-Garden apartment complex, forexample, which opened for residence in September 2007,
Kansai Electric Power is also offering new services related to
medical and long-term care in addition to the three services
described above, based on the concept of creating an urban
community that supports city lifestyles by means of a networkof medical and lifestyle services.

• Outline of new services

Information Technology

Condominium residents(members)
Health management data

Provide IP services
focused on locallyrooted IPs.

Utilizing the technological prowess it has developed to thefull, Kansai Electric Power has been proactively pressing
forward with the streamlining of our entire business while
maintaining the reliability of supply. Reflecting the fruits ofthis business streamlining, reductions in the price ofelectricity mean that the electricity bill for a standard
household in April 2006, when the rates were revised, has
dropped by approximately 900 yen a month (or over 10,000
yen a year) compared with 1989.
To continue to respond to customer needs in the future,
the most important aim for us is to provide customers withelectricity reliably and at a low price. By promoting theinvestigation of an attractive menu of services and othermeans, Kansai Electric Power hopes to fulfill its role as agood partner for our customers.

• Changes in monthly electricity rates
Payment increase due torise in consumption tax

Yen
7,500
7,231

7,151 7,151 7,142
6,956

7,000

6,500

6,371 6,355

Nov
1993

Nov
1994

Jul
1995

Jan
1996

Customers

Energy-related business

Lifecycle-related business

Provide customers
with optimum energy
by combining electricity
and gas cogeneration.

In addition to all-electric houses,
provide comprehensive
services that are
useful in daily life.

The Kansai Electric Power Group is providing products andservices with higher value by combining a variety of Group
services into “total solutions” that accord with customers’
requirements and lifestyles in their homes and places ofbusiness.
In the area of housing in particular, we are focusing ourefforts on combining totally electric homes with optical fiberInternet connections and home security, offering total support
to enable customers to live in safety and comfort.

Feb
1998

Oct
2000

Oct
Apr
Apr
2002 2005 2006
(Dates of rate revisions)

Health management services
In-home long-term care and nursing
services (24-hour response)
Provision ofunified services
based onmembers’ data

Kanden Joy Life
Healthmanagement
database

Solid managementof members’ healthmanagement data

Residential
stationCarer Nurse
Physical therapist
Collaboration

Doctors andnurses checkdata regularly

Collaboration withmedical services

Hospital/clinic• Provision of Group services focused on totallyelectric homes

Kansai ElectricPower Co., Inc.

Totally electric
homes

Customer’s home life

KANDEN Securityof Society, Inc.
Home
security

Optical fiber
services

6,599

Apr
1989

Telephoneconsultation

7,028
6,766

6,000

Data

Development of Total Solution services

Electricity rate reduction throughimproved business efficiency

1䡵 Further initiatives for large-scale apartment• Customer response improvement activities

Service improvement

Surveys of employee awareness, behavior, etc.

1

K-Opticom Corp.

Artist’s image of completed
Momosaka Comfo-Garden

䡵 Further initiatives for detached residences

Kansai Electric Power is participating in the development oflarge-scale residential areas from the urban planning
concept creation stage, not only aiming for all-electric
housing, optical fiber services (Internet, telephone, TV), andhome security to be standard features of every house, butalso working to ensure the realization of the “secure town
concept” by establishing a security guard station within thearea under development.

Notes: Standard household model (meter-rate electric lighting A 300 kWh model)
Amounts include bank transfer charges and consumption tax.

11

Kansai Electric Power Group CSR Report 2007

Kansai Electric Power Group CSR Report 2007

12

Progressive Approach to Environmental Problems

Doing our part in the fight against global warming

2

Environmental policy

Highlights from fiscal 2006
The Kansai Electric Power Group CSR Action Charter (extract)
Findings from research on mangroveafforestation technologies
Since the 2000 fiscal year, Kansai Electric Power has beenworking with the Coastal Resources Bureau of the Ministry of
Natural Resources and the Environment of the Kingdomof Thailand, as well as Group company The General
Environmental Technos Co., Ltd., to develop technologies for
mangrove afforestation. To date the project has planted some
250,000 mangrove trees, at 10 locations in six regions acrossThailand, from former shrimp farms to lakes and beaches at
low tide. The result has been the afforestation of some 100
ha. The research project ended in fiscal 2006, at which point
the partners published their findings.

• Main research findings
Project

Findings

Establishment of amangrove growthforecasting system

Thirteen factors affecting the growth of mangroves
were identified. By forecasting mangrove growth onthat basis, the team developed the world’s first
technology for diagnosing whether a plot of land issuitable for mangrove afforestation.

Examination of theeffectiveness ofmangrove forests in
attenuating theimpact of tsunami

In regions stricken by the Asian tsunami of 2005,
mangrove forests were compared with other tree
types in terms of the extent of damage. The teamconfirmed that mangrove forests are more effective
than other species of tree in attenuating the impactof tsunami.

Development of amethod to measurelevels of CO2 fixation

A technology was developed that uses images
taken from a radio-controlled helicopter to measure
the volume of CO2 fixed by planted mangrove
forests. The technology has an accuracy of 90%.

These findings throughout the project will be utilized inmangrove forest maintenance activities by the government ofThailand in the future. Furthermore, it is expected that they will
also be useful in many other countries and contribute to theprevention of global warming.
Afforestation regionsin Thailand

Samut Sakhon
Tong Sak mangrove afforestation project

Samut Songkhram

Tong Sak

uses the same water volume and effective head as before,
improvements in the equipment enable increased output.
Beginning in 1988, Kansai Electric Power gradually extended
this technology to generators in every region until, with therefitting of Komaki Power Station in Toyama Prefecture in May
2006, the entire series of renovation projects was completed.
Thanks to this 18-year campaign, output was increased by acumulative 40,000 kW, reducing CO2 output by 100,000 tons
per year.
Kansai Electric Power’s efforts are now winningwidespread admiration. In fiscal 2006, the Group’s
Hydroelectric Power Plant Renovation Project earned theEnvironment Minister’s Award for Projects to Prevent Global
Warming. This was the Group’s second consecutive year of
winning this award; in fiscal
2005, Kansai Electric Power
won the award for its
Kanden Building project, a“modelbuilding
forenvironmental coexistence.”
The 18-year HydroelectricPower Plant Renovation
Project concluded with thecompletion of work at
Komaki Power Station.

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

Philosophy: Five Basic Principles of the Global Environmental Action Plan (Adopted in 1990)
Kansai Electric Power is conscious of our great responsibilities as an energy provider. As we strive to deliver an affluent
way of life to people, we are actively taking on the challenge of making the conservation of the global environment a
part of our corporate agenda. In all aspects of our operations, we are investigating advanced means of global
environmental protection and taking action immediately in areas where we can be effective:! Reduction of environmental impact @ Promotion of effective and efficient use of energy and resources# Development of advanced technology $ Coordination of efforts throughout the Kansai Electric Power Group% Creation of a new corporate culture to support harmonious coexistence with the global environment

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

Kanden e-Kids Club Established
Preventing global warming will require raising the awareness ofevery citizen about environmental issues. In fiscal 2005, some
600 children of Kansai Electric Power Group employees began
taking part in the “Kids’ ISO 14000 Program,” a series of fun
activities to improve understanding of the environment.
The Group is keen to widen the circle from its employees’
children to kids in the broader community, giving children as
many opportunities as possible to participate in environmental
activities throughout the year. In June 2006, the Kanden e-Kids’
Club was established for5th- and 6th-grade children
in the Kansai area. Some
176 kids quickly signed up,
taking part in a wide rangeof programs aimed at“noticing,” “knowing” and“doing what you can” fornature, the environment andenergy.
Kids who took part told us they “know more about
the environment now” and are “glad they joined.”

Khanong

Action 1
Consideration for theenvironment in all areas ofour business! Addressing 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: Overseas activities carried out to prevent global warmingb. Protecting the ozone layer@ Addressing local environmental problems

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

Action 2
Activities aimed at building
a sound material-cycle society! Promoting business activities suitable for a sound material-cycle society@ Earnest exchange and cooperation with external groups# Raising employees’ awareness of their responsibility as global citizens andencouraging them to develop good daily practices• Kanden e-Kids Club Program
Period
Nakhon Si Thammarat

Description of events

July 2006

Inaugural meeting

August 2006

Kids’ ISO 14000 Program

Songkhla

September 2006

Kansai Electric Power earns the Environment
Minister’s Award for Projects to Counteract
Global Warming for the second consecutive year

November 2006
March 2007

Facility tours(Nanko Power Station, Osaka Waste Treatment Plant)
Nature Experience Meetings(tree climbing, craft workshops, etc.)
Completion ceremonyConcrete Action Plans: Eco Action (Adopted every year. See pages 17–18.)

Long before global warming became the hot topic it is today,

Kansai Electric Power was working on renovating hydroelectric
power plants to release less CO2. Although the power plant

13

Kansai Electric Power Group CSR Report 2007

Kanden e-Kids Club

http://www.kepco.co.jp/kankyou/ekids/

Kansai Electric Power Group CSR Report 200714

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

Status overview of our business activities
and environmental load (fiscal 2006)

Business activities

INPUT

2

Independent review
The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

Kansai Electric Power has received independent review of environmental performance information in our CSR Report 2006
from Tohmatsu Environmental Research Institute Ltd. to assure confidence in our accuracy. In addition, we have expanded
the extent of this review compared to the previous fiscal year.
(Items that have received independent review are indicated by the mark to the right.)

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

OUTPUT(TRANSLATION)

Independent Review Report
July 13, 2007

Fuels for thermal power
generation

Fuels for power generation

Power generation

1,602 thousand t

Coal(on a dry coal basis)

Heavy oil

326 thousand kL

Crude oil

1,516 thousand kL

CO2 (carbon dioxide)* 49.81 million t-CO2

Amount of
nuclear electric
power generation
65.9 TWh

LNG(Liquid Natural Gas)

4,126 thousand t

Amount ofthermal electric
power generation(converted to heavy oil)

Fuel for nuclear
power generation

195 tU(weight of pre-irradiation uranium)

5.02 million m3

Clean water

0.92 million m3

Riverwater,
groundwater, etc
Seawater(desalinated)

1,727 tNOx (nitrogen oxides)

4,692 t* Includes electricity purchased from other electric companies.

COD emission

30 t

Total effluents

6.29 million m3

Amount ofhydroelectric
power generation

Radioactive waste
Volume of low-level
radioactive waste
generated** Net generation (generated amount - reduced amount)

Limestone

47 thousand t

Ammonia

6 thousand t

Electric power
consumed
within power
stations(4.7) TWhPurchase fromother companies(including new energy)
43.5 TWh

1. Scope of the Review
We have reviewed the “Kansai Electric Power Group CSR Report 2007” (“Report”) prepared by The
Kansai Electric Power Co., Inc (“Company”). The purpose of our review was to provide limited
assurance from an independent practitioner about whether material environmental information
indicated with the verification logo for the period from April 1, 2006 to March 31, 2007 included in theReport was accurately measured and calculated, referring to the Environmental Reporting Guidelines-2007 version (issued by the Japanese Ministry of the Environment) and GRI Sustainability Reporting
Guidelines (Version3.0), in accordance with calculation methods adopted by the Company.

3. Summary of Review

5,462 drums(200 L drums)

15.0 TWh

Resources

Tohmatsu Environmental Research Institute Ltd.
Hiroshi Enoki, Representative Director

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

0.57 million m3
2.78 million m3

Mr. Shosuke Mori
President and Director
The Kansai Electric Power Co., Inc.

2. Responsibility of the Management

38.8 TWh

Water for power generation
Industrial waterSOx (sulfur oxides)

Released into water areas

2 thousand kL

Other

Released into atmosphere

To obtain an adequate and valid standard of basis for providing limited assurance with respect to ourconclusions, we performed our review with reference to the International Standard on Assurance
Engagements (ISAE) 3000 (issued by the International Federation of Accountants in December 2003),
the Proposed Environmental Report Review Standard (issued by the Japanese Ministry of theEnvironment in March 2004) and Practical Guideline for Assurance Engagement of Environmental
Information (issued by the Japanese Association of Assurance Organizations for Environmental
Information in January 2006).
The review procedures performed for the material environmental information indicated with theverification logo for the period from April 1, 2006 to March 31, 2007 included in the Report consistedof; 1) agreeing information to summary tables and supporting documents on a sample basis; 2)interviewing the responsible personnel and the persons in charge; 3) reviewing and agreeing
information to the relevant minutes, the Company’s regulations, and ISO related documents and so on;4) site visits; and 5) comparing information with other available supporting internal and externalmaterials.

4. Conclusions
On the basis of the review procedures described in the preceding paragraph, nothing has come to ourattention that caused us to believe the material environmental information indicated with theverification logo for the period from April 1, 2006 to March 31, 2007 included in the Report wasomitted or not accurately measured or calculated, referring to the Environmental Reporting Guidelines-2007 version (issued by the Japanese Ministry of the Environment) and GRI Sustainability Reporting
Guidelines (Version3.0), in accordance with calculation methods adopted by the Company, in allmaterial respects.

Pump-up power(3.1) TWh
Industrial waste, etc.
Total amount of emissions 331 thousand t
Processingclassification

SF6 gas recovery rate
(at time of inspection)
98.2%
Electric power
consumed withintransformer
substations

2 thousand t

Land fill disposal

7 thousand t

Recycled rate

Acquisition of EcoLeaf environmental
label certification(0.2) TWh

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

(7.9) TWh

Customers
Amount of electric
power sold147.3 TWh

Office electricity

110 GWh

Office water

684 thousand m3

Copy paper

1,033 tOfficeGasoline

4 thousand kL

Diesel oil

1 thousand kL

Green purchaserate foroffice supplies
96.3%

Vehicle fuels

Rate of adoptionof low-pollution
vehicles
59.0%

Emissions from vehicle use
CO2 emissions

erations arranged for each business site to reporttheir tabulated and calculated environmental
performance data results through the Environmental Information Management System. In
addition, responsible persons at the Office ofEnvironmental Considerations strengthened thesystem by obtaining supporting documentation forcertain significant items and verifying details. Thisapproach also contributed to improving theaccuracy of such data.
2 There has been steady progress in standardizing
the detailed rules related to calculation ofenvironmental performance data. However, there
are still areas where additional standardization isnecessary. In addition to considering ongoingstandardization of calculation methods, we hope to
see a build-up in the thorough implementation ofthese rules at the operating level.
3 The Environmental Information Management
System has improved in certain areas, but
consideration of improving the functions forcontinuing increases in data accuracy is desired.
We understand expansion of disclosed environmental performance data has been considered on
an as needed basis. Going forward, with consideration given to the importance of such metrics,
we hope to see the expansion of such data on a
step-by-step basis.

In the environmental performance data that we
disclose to the public, we will continue to unify thedetails of the calculation rules we use. We will also
consider making some additions to the data wepublish. Kansai Electric Power also aims to improve
the accuracy of its data aggregation processes,
including enhancing the functions of theEnvironmental Management Information System.

97.9%

Transmission anddistribution losses

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

Recycled or reused 323 thousand t
Reduction inintermediate treatment

1 The centralized Office of Environmental Consid-

Future Kansai Electric Power efforts

4. Special Interests

Power transmission and power distribution

Independent expert comments

11 thousand t-CO2

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

FY 2005 results
Product name:
System electric power
Specification:
60 Hz
Fiscal year:
2005
Global-warming load during life cycle (CO2 equivalent):
0.413 kg-CO2/kWh (FY 2005)
CO2 emissions in power generation (all-day average):
0.358 kg-CO2/kWh (FY 2005)
0.301 kg-CO2/kWh (5-year average for FY 2001–FY 2005)* Updates to the FY 2006 results are based on the Law to Promote Measures Against Global Warming, in consideration of the Company’s
CO2 emission factor as published by the government of Japan.
** For details on the certification data, please visit our website at (http://www.kepco.co.jp/kankyou/) or the website for the Japan
Environmental Management Association for Industry (http://www.jemai.or.jp/ecoleaf).

Note: Totals may not tally due to rounding

15

Kansai Electric Power Group CSR Report 2007

Kansai Electric Power Group CSR Report 2007

16

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

2

Eco action (targets and results)
The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

We set targets for our environmental efforts annually and undertake various activities to realize them in accordance withthe environmental policies of the Kansai Electric Power Group. Our 2006 fiscal-year targets and results, and our targets for2007 and later are as shown below.

FY 2006 targets and results

Page

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

We reduced CO2 emissions per unit of electric power used (sold) by increasing our nuclear
power equipment utilization rate. In FY 2007, we raised our target for the 5-year average forthe period from FY 2008 to FY 2012 to approximately 0.282 kg-CO2/kWh.

P. 23

77.0% (facility utilization rate)

Continuous improvement and effective implementation of safety assurance
measures to prevent a recurrence of an incident like the Mihama Power
Station Unit 3 accident, to continue safe and secure operations

We carefully implemented safety assurance measures to prevent a recurrence of an incident like the Mihama
Power Station Unit 3 accident. We continue to strive for the safe operation of nuclear power plants, withplans that ensure safety improvement construction and other measures based on a “safety first” perspective.

P. 25

42.0% or more

42.6%

42% or more

We met our targets by optimizing the operation of thermal power plants, largely through the use ofhigh-efficiency combined plants. We are taking measures focused on equipment and operations,
including the smooth implementation of plans to update equipment at Sakaiko Power Station.

P. 25

97.1%
(at time of inspection)

97% (at time of inspection)

98.2% (at time of inspection)

Using auxiliary equipment to recover SF6 gas, we steadily recovered gas to achieve ourtarget. From FY 2007, we pursued our target for gas recovery when removing equipment, inline with targets for the power generation industry as a whole.

P. 25――――――――――――

95 thousand t-CO2

Target achieved

Achieve amount required by
the RPS Law (790 million kWh)

Target achieved

Achieve amount required by the RPS Law

Power output fromsubsidized facilities:
38 MW

Promote the Kansai Green
Electricity FundPower output fromsubsidized facilities: 30 MW

Promote the Kansai Green Power Fund

FY 2005 results

CO2 emission reduction per unit of electric power
used (sold)Targets

Results

0.358 kg-CO2/kWhApprox. 0.34 kg-CO2/kWh(FY 2010 target value)

0.338 kg-CO2/kWh

Promoting “safety first” operations at nuclear power
plants75.4%(facility utilization rate)

Operate nuclear power plants with safetyassurance measures to prevent a
recurrence of an incident like the Mihama
Power Station Unit 3 accident

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

42.0%

Limiting SF6 emissions (calendar-year basis) (gasrecovery rate at inspection/removal of equipment)
Reducing customer CO2 emissions through the
diffusion and expansion of EcoCute (cumulative total)

Development and diffusion of renewable energies(fuel efficiency: 9.36 km/L)

1% or more improvementcompared to the prior fiscal year

48.3%

52%

59.0%

(amount used: 113 GWh)

Improving fuel efficiency of company vehicles
Adoption of low-pollution vehicles(ratio of low-pollution vehicles to all vehicles)

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

3.5% improvement comparedto the prior fiscal year

SOx

0.021 g/kWh (overall)
0.066 g/kWh (thermal)

NOx

0.041 g/kWh (overall)
0.126 g/kWh (thermal)

Improving the recycling rate of industrial wastes

Proper processing of PCB wastes

Improving the green purchasing rate for office supplies(45 target items)
Reducing office water consumption
Reducing copy paper consumption

to the prior fiscal year

Maintain current status
5-year averages for the(Reference) FY 2001–FY 2005
0.01 g/kWh (overall)
0.05 g/kWh (thermal)
Maintain current status
5-year averages for the(Reference) FY 2001–FY 2005
0.04 g/kWh (overall)
0.13 g/kWh (thermal)

0.014 g/kWh (overall)
0.045 g/kWh (thermal)

0.039 g/kWh (overall)
0.121 g/kWh (thermal)――――――――――――

97.9%

Procesed volume
Low-concentration PCB:
18,000 kL (cumulative total)

Process all PCBs by thelegal deadline (by 2016)Low-concentration PCB: 28
thousand kL (cumulative total)
High-concentration PCB: 174
units (cumulative total)

FY 200897% (at time of inspection)

FY 200999% (when scrapping)Starting in FY 2007, we changed the criterion to give customers a palpable sense of

138 thousand t-CO2 192 thousand t-CO2 246 thousand t-CO2 reducing greenhouse-gas emissions through EcoCute. We plan to promote the diffusion

96.7% (43 items)

Approx. 100%

96.3% (43 items)

6.3% reduction compared
0.8% reduction compared
1% or more reduction comparedto the prior fiscal year
to the prior fiscal year
to the prior fiscal year
(Amount used: 689 thousand m3)(Amount used: 684 thousand m3)
1.6% increase compared
0.50% reduction compared
Promote maximum
to the prior fiscal year
to the prior fiscal year
possible reduction(Amount used: 1,033 t)(Amount used: 1,016 t)

We achieved our FY 2006 targets. Moving forward, we intend to introduce biomass fuel at
Maizuru Power Station and autonomously develop and promote renewable energy,
including the construction of the Port of Hidaka New Energy Park. We also intend tosupport the diffusion and promotion of the Green Power Fund by widening the range of
eligible parties.

P. 24

P. 24

1% or more reduction compared to the prior fiscal year

We met our target by checking that lights are switched off, setting heating and airconditioning thermostats appropriately, etc. We are pursuing patient efforts at eachlocation.

P. 30

1% or more improvement compared to the prior fiscal year

Results have slipped slightly from the previous fiscal year. We plan steady efforts at eachlocation, including the promotion of refraining from engine idling.

P. 30

We achieved our targets by implementing a phased transition to low-pollution vehicles
when replacing vehicles. We will continue the replacement according to the plan.

P. 29

By using low-sulfur fuels and installing sulfur scrubbers, we achieved the world’s lowest
emission levels. We will continue to use fuels with superior environmental capabilities andsupport the performance of sulfur-scrubbing equipment to maintain the world’s highest
levels of cleanliness.

P. 27

By using low-nitrogen fuels and installing nitrogen scrubbers, we achieved the world’s
lowest emission levels. We will continue to use fuels with superior environmental
capabilities and support the performance of nitrogen-scrubbing equipment to maintain theworld’s highest levels of cleanliness.

P. 27

99% or more (by FY 2009)

In place of the previous targets for “improving recycling rate” and “reducing landfill
disposal,” we will work to improve the recycling rate to achieve zero emissions.

P. 29

Process all PCBs by the legal deadline (by 2016)

A cumulative total of 28,000 kL were processed out of the 100,000 kL targeted for treatment
at the Recycling Center for Utility Pole Transformers. Starting from October 2006, highly
concentrated PCB waste is treated at the Japan Environmental Safety Corporation(JESCO). Aiming to treat all waste as required by the legally stipulated deadline, we
continue to treat waste appropriately.

P. 28

Maintain current status (approx. 100%)(45 items)

Results declined slightly from the previous fiscal year. We will continue raising awarenessamong employees to promote green purchasing. The number of target items was raised in2007 from 43 to 45.

P. 30

1% or more reduction compared to the prior fiscal year

Results declined slightly from the target. We will continue patient efforts such as using
rainwater to wash vehicles.

P. 30

Promote maximum possible reduction

The volume of copy paper used increased from the previous fiscal year. We will continue
patient efforts at each location, including strict enforcement of the use of both sides of copy
paper.

P. 30

61%

64%

66%

Maintain current status
5-year averages for the(Reference) FY 2002–FY 2006
0.01 g/kWh (overall)
0.05 g/kWh (thermal)
Maintain current status
5-year averages for the(Reference) FY 2002–FY 2006
0.04 g/kWh (overall)
0.13 g/kWh (thermal)

Processed volume

Further introduction of systems in compliance with ISO
or other certifications (compliant locations at fiscal year-end)

15 locations

Support of and expansion toappropriate numbers of locations

15 locations

Support of and expansion toappropriate numbers of locations

The number of locations installed with ISO-compliant systems remained the same. In the future, weplan to overhaul our company-wide environmental management system, continuously improving
the system, and maintaining and expanding the number of locations meeting requirements.

P. 20

Measured dosages of radioactive gaseous waste inpublic areas around nuclear power plants

Less than
0.001 millisieverts/year

Less than
0.001 millisieverts/year

Less than
0.001 millisieverts/year

Less than
0.001 millisieverts/year

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

—

Changes from the previous report
We added the category “Measured dosages in areas around nuclear power plants from radiation of radioactive materials” to implement tougher radiation controls.
New additions:
Changed items: We changed the item “Increasing nighttime electric power subscription through the promotion of EcoCute and other high-efficiency hot water heating equipment” to “Reducing
customer CO2 emissions through the diffusion and expansion of EcoCute,” to give customers a palpable sense of reducing greenhouse-gas emissions. “Improving recycling rate”
and “Reducing landfill disposal” were changed to “Improving recycling rate of industrial wastes,” to aim for the achievement of zero emissions.
In “Improving green purchasing rate for office supplies,” the number of target items was expanded from 43 to 45.
Changed targets: In “CO2 emissions reduction per unit of electric power used (sold),” a more ambitious target was selected, to make a greater contribution to combating global warming.
In “Limiting SF6 emissions,” the recovery rate at the time of scrapping was added to the target to conform to the targets of the Federation of Electric Power Companies of Japan.

17

FY 2007and expansion of totally electric homes.

2.6% reduction comparedto the prior fiscal year
(amount used: 110 GWh)
1.1% decrease comparedto the prior fiscal year
(fuel efficiency: 9.26 km/L)

0.6% reduction compared 1% or more reduction comparedto the prior fiscal year

Reducing office electricity consumption

Targets

Evaluation of FY 2006 results and future actions

Item

Kansai Electric Power Group CSR Report 2007

Eliminated items: “Increasing power output throughhydroelectric power plant upgrades”
was eliminated because renewal work
was completed in FY 2006. Goingforward, equipment will be renovatedat each power station taking into
account the level of obsolescence andeconomic efficiency.

* FY 2006 results in items eliminated or changed.
Item
Increasing power output through hydroelectric power plant upgrades(cumulative total since FY 1989)
Increasing nighttime electric power subscription through the promotionof EcoCute and other high-efficiency hot water heating equipment
Improving recycling rate of industrial wastes
Reduction of landfill disposal of industrial wastes(not including special management industrial waste)

FY 2006 target

FY 2006 result

49,652 kW

49,652 kW

Further expand subscription

770 thousand units

Maintain current status
50% reduction from FY 2000 levels(4,500 t or less)

5,744 t97.4%

Kansai Electric Power Group CSR Report 200718

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

2

Environmental management system
The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

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

Establishment of a company-wide
promotion system

Maintenance of the group-wide promotion
systemEco Action: Group company concrete
action plans

In order to further strengthen and promote across departments our leading efforts to resolve environmental problems,
we established the Environmental Board as an organization
below the CSR Promotion Council in February 2006. The
Environmental Board prepares, checks and reviews Eco
Actions, which are concrete action plans for company-wide
environmental management.

The Group Environmental Management Committee wasestablished in August 2005, with the goal of expanding
environmental management efforts at Group companies. This
Committee establishes, checks and reviews the Group’s EcoAction, working with the CSR Promotion Council’s
Environmental Board.
We will make an effort to expand the number of companies participating in the Group Environmental Management
Committee.

Starting in the 2005 fiscal year, we began implementing
concrete plans for the environment, called Eco Actions, in all
Group Companies.
In fiscal 2006 results, we achieved our targets in two
FY 2005 results
Item* 38 target companies in FY 2006( ) cumulative total for 41 companies

Reducing officeelectricity
consumption

46.8 million kWh(47.1 million kWh)

Reducing utility
water consumption

297,000m3(320,000m3)

Improving fuelefficiency ofcompany vehicles

8.9 km/L(8.9 km/L)

Reducing copy
paper consumption

699.0 t(728.0 t)

Purchasing recycled
copy paper

82.0%(78.9%)

Targets and results in FY 2006
Results
Targets

items: reducing utility water consumption and improving fuelefficiency of company vehicles. In other areas, however, wewere unable to reach our targets.
In and after fiscal 2007, the single-year targets for fiscal
2006 have been recast as targets for the three-year period tofiscal 2009. We will continue to promote activities to reachour targets for each area.
Targets

Evaluation(Reasons for increase/reduction)(*38 target companies) FY 2007 FY 2008 FY 2009

1% or more reduction 0.002% increase compared 1% or more reduction compared
compared to theto the previous fiscal year
to the previous fiscal year
previous fiscal year
46.8 million kWh
1% or more reduction 14.7% reduction compared 1% or more reduction compared
compared to theto the previous fiscal year
to the previous fiscal year
previous fiscal year
253,000 m3
1% or more
1.5% improvement
1% or more improvement compared
improvementcomparedcompared to the to the previous fiscal year
to the previous fiscal year
previous fiscal year
9.0 km/L
1.1% increase compared
Reduce as much
Reduce as much as possible
to the previous fiscal year
as possible
706.5 t
100%

83.6%

Green purchase rate of 100%

• As operations expanded, this figure rose slightly, so we fell short of our target.
• We will continue to deploy energy-saving activities.
• As equipment was eliminated, volume of use fell dramatically, enabling
us to reach our target.
• We will continue to deploy water-saving activities.
• Fuel efficiency was improved through actions such as strict elimination of idlingstops and switching to fuel-efficient vehicles. As a result, we reached our target.
• We will continue to promote Eco-Drive.
• We were not able to reach our target.
• We will continue making efforts to use less paper.
• Green purchase rate improved; however, we were not able to reach our target.
• We will continue promoting environmental awareness and the green purchase rate.

* In FY 2006, the number of companies under review was reduced from 41 to 38. As of the end of FY 2006, this report evaluated the results at those 38 companies.

Maintaining an environmental risk
management system

Second CSR Promotion Council (Environmental Board) (August 18, 2006)

Third Group Environmental Management Committee (November 28, 2006)(38 companies, as of March 31, 2007)

Group business support

CSR Promotion Council

Environmental Board
Group Environmental Management
Committee
Chairperson: Excutive Vice President andDirector (responsible for the Office ofCommittee chairperson:
Director of the Kansai Electric
Environmental Considerations)
Cooperation Power Office ofVice Chair: Director of the Office ofEnvironmental Considerations
Environmental Considerations
Committee members:
Committee members: Chairperson appoints
Staff responsible for the implefrom among headquarters and enterprisementation of environmental
division and office heads
management at each groupcompany
Office of Environmental Considerations(Environmental Management
Oversight Department)

Managers of headquarters,
divisions and offices(Persons responsible forenvironmental management)

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

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

Managers of sales offices(Persons responsible forenvironmental management)

19

Managers of operationand maintenance offices(Persons responsible forenvironmental management)

Kansai Electric Power Group CSR Report 2007

Managers of power plants(Persons responsible forenvironmental management)

KINDEN CORPORATION
Kanden Engineering Corp.
Kanden Plant Corp.
The Kanden Services Co., Inc.
Kanden Power-Tech Corp.
NEWJEC INC.
THE GENERAL ENVIRONMENTAL TECHNOSCO., LTD.
KANDEN AMENIX Corp.
The Kurobe Gorge Railway Co., Ltd.

• Business locations that have acquired ISO 14001 external

Sustainable development• Environmental management promotion system of Kansai Electric Power and the Group companies
President

At Kansai Electric Power, we divide environmental risk into
three categories—legal risk, social risk and cost risk—andcarry out necessary risk management. We intend to extend thisrisk-management approach to all applicable Group companies,
to deploy environmental risk management Group-wide.

NIHON NETWORK SUPPORT CO., LTD.
The Kanden L & A Co., Ltd.
Kanden Office Work Corp.
Institute of Nuclear Safety System, Inc.
Akinai Biz Square Corp.
Kansai.com, Inc.
Kanden-el-farm, Inc.
CCL Co., Ltd.
Nuclear Engineering, Ltd.

Organizationaltargets

Important risks

certification (as of the end of FY 2006)

Kansai Electric Power

Stable supply andsocial responsibilities

Profitable operation

Loss-of-confidence risk
Legal risk

Risk category(violation of environmental laws)

Samplemeasuresagainst risk

• Dissemination of
information on latest
revisions ofenvironmental laws
• Implementation ofself-check practices

Social risk

(insufficient response to major
environmental problems)• Deployment of Eco
Actions

KANDEN FUDOSAN CO., LTD.
Clearpass Co., Ltd.
KANDEN Security of Society, Inc.
Kanden E House Corp.
KANSAI Medical Net Co., Inc.
Kansai Jyutaku Hinshitsu Hosho Co., Inc.
Kanden Joy Life Co., Ltd.
Kanden Facility Management Corp.
Kanden Building Management Co., Ltd.
Kanden CS Forum, Inc.

Energy-related business
SAKAI LNG Co., Inc.
Kanden Gas and Cogeneration Co., Inc.
Kanden Energy Development Co., Inc.

Information Technology (IT)Other business areas

K-Opticom Corp.
Kanden System Solutions Co., Inc.
K Cable Television Corporation
K-Square Co., Ltd.

KANDEN GEO-RE Co., Ltd.
Meteorological Engineering Center, Inc.
Kanden L-Heart Co., Inc.

Business
type

Himeji No. 2 Power Station (thermal)

Cost risk(introduction of measures todeal with rising costs)• General strategy
against global
warmingKansai Electric Power strictly abides by all laws and regulations
related to the environment. We also ensure compliance withenvironmental protection agreements concluded with local
governments in the areas of our power plants. Verification of
our compliance status indicates that none of our facilities haveviolated the terms of these agreements. We did not receive any
guidance, notices or orders from any national or local
government entities in fiscal 2006 regarding these environmental
laws, regulations and agreements.

Implementation of systems compliant with
ISO standards
Since the 1997 fiscal year, we have been implementing
environmental management systems that conform to the ISO
14001 standard, an international body of environmental
management, especially at our thermal power stations.

Name of business location
Himeji No. 1 Power Station (thermal)

Cost-increase risk

Observance of laws, regulations
and other rules
Lifecycle-related businessIn model operations for each business type, the Company
has received ISO 14001 external certification, and in February
2005, our Hokusetsu Sales Office acquired Eco Action 21
certification from the Ministry of the Environment.
We plan to deploy and introduce these environmental
management systems throughout the Group, in considerationof the activities of these model business locations.

Power Sakaiko Power Station (thermal)
generation
Kainan Power Station (thermal)

Distribution

Date ofregistration

Certification
agencyOrganization ofMarch 24, 2000
International
Standards
March 23, 2001
Certification
February 22, 2002 Co., Ltd.
October 27, 2000

Nanko Power Station (thermal)

March 29, 2002

Ohi Power Station (nuclear)

October 25, 2002

Himeji Operation and Maintenance Office March 29, 2002
Power Distribution and Sales Division, January 26, 2004
Technical Test Center

Japan Audit
andCertification
Organization

Group

Business type

Name of Group company
KINDEN CORPORATION
Kanden Engineering Corp.

Power support

Kanden Plant Corp.
ENEGATE Co., Ltd.
NEWJEC INC.
THE GENERAL ENVIRONMENTAL TECHNOS CO., LTD.

Information technology K-Opticom Corp.

Business locations that have acquired Eco Action 21• certification(as of the end of FY 2006)
Business type Name of location Date of registration
Sales

Hokusetsu
Sales Office

Certification agency

Institute for Global
February 16, 2005 Environmental Strategies
Sustainability Center

Kansai Electric Power Group CSR Report 200720

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

2

Environmental accounting
Since the 1999 fiscal year, we have conducted environmental accounting of the annual results for Kansai Electric Power as
an individual company and made these results public. Beginning with fiscal 2003, we now publish environmental accounts
for the entire Kansai Electric Power Group. We plan to continue to improve and extend this process.

• Effect of environmental protection activities• Environmental protection costs (Millions of yen)
Investment
FY 2006 FY 2005

Category

１. Cost of measures against global

６９０

５８０

ExpenseFY 2006 FY 2005
２,２３０

１,９７０

environmental problems

２. Cost of conservation of regional environments

２２,４６０

１１,１００２７,５６０２,７５８

1. Monitoring and measuring of environmental impact

０.０

１６０

２,５７０

２,２３０

2. Pollution prevention

１４,４１０４,８９０

２０,９９０3. Natural environment protection and harmonization

８,０５０

６,０５０

４,０００

Main items
Purchase of new energy and surplus power, construction of mixedbiomass fuel facilities

Item (unit)
CO2 emissions(millions of t-CO2)

４９.８

(２.９)

CO2 emissions factor(kg-CO2/kWh)０.３３８(０.０２０)SOx emissions

(t)

１,７２７

(７４７)

Measurement and management of radioactivity levels, measurement of
atmospheric concentrations, survey of ocean regions

SOx emissions factor(g/kWh)０.０１４(０.００７)

２１,２００Measures for preventing air and water pollution

NOx emissions

(t)

４,６９２

(６０)

４,１４０

Burying of transmission cables, planting projects

NOx emissions factor(g/kWh)０.０３９(０.００２)

１６７

１７

Extended length of buried cable (km)３. Cost of building a sound material-cycle society

２０

７００

９,７００

９,１００

1. Treatment and recycling of industrial waste

２０

９０

４,８９０

４,７７０

2. Treatment and recycling of general waste

−

−

２０

２０

3. Treatment of radioactive waste

−

６１０

４,７９０

４,３１０

4. Green purchasing

４. Cost of environmental management
５. Cost of research and development
６. Other costs

Use of low-pollution vehicles(no. of vehicles)

２,８０９

５１０

Acquisition of external certification such as ISO (no. of facilities)

８(１)

Personnel costs

−

１,６８０

１,８４０

Measures against CO2 to preserve the environment and make effective use of energy

１,１００

１,０８０

２５０

２３０

2. International activities

１０

３３０

１０

１０

3. Environmental subsidies and donations

−

−

８４０

８５０

Total

２３,２４０

１３,０００

４５,４９０４５,１４０Total investment for the period concerned

２２,３７０ １８０,６００−−

Total running costs for electric utilities business during
the period concerned

Low-level radioactive waste treatment

４０

−

−

Membership in environmental organizations, donations for events

Revenue
Expenditure

FY 2005

Main items

主な項目
１,０８０ Sales of desulfogypsum etc.

Cost reduction by energy saving

１７,３８０

１０,６１０ Reduction in fuel consumption by improving heat efficiency of thermal power plants*

４,４６０
６０

Total

２４,５３０１.４(０.２)(no. of cases)

２７９

(１２７)

Eco-efficiency

２,６３０

Other

(10,000 trees)

Beautification activities

Director
Institute for Environmental Management Accounting

Business income from recycling, etc.
Cost reduction by material reuse and recycling

Forestation

Levies on pollution levels− ２,１６８,７００ ２,０６９,２００

FY 2006

５,６１０ Cost reduction by reusing utility pole transformers, etc.
２０ Reduction in pollution load levies by reducing SOx emissions

Kansai Electric Power conducts trial calculations of therelationship between the environmental loads of our businessactivities and the economic value that those activities produce
to express eco-efficiency. In fiscal 2006, while the volume ofpower we sold was roughly equivalent to the previous fiscal
year, nuclear and thermal power comprised a greater share,
while the use of coal-fired power plants declined. As a result,both the integrated index of environmental load and CO2
emissions volumes fell by about 5%, while the eco-efficiency
rate increased by about 7%.

１７,３２０■ Environmental protection costs

In investments, Kansai Electric Power launched theconstruction of Maizuru Power Station Unit 2 and upgraded
equipment at Sakaiko Power Station, raising investment by¥10.2 billion over the previous fiscal year to ¥23.2 billion.
Costs were roughly equal to last year’s at ¥45.5 billion.

• SOx emissions declined 30% from the previous fiscal year
to 1,727 tons, due to a decline in the availability factor ofcoal-fired power and the use of low-sulfur fuels. NOxemissions fell slightly from the previous fiscal year to 4,692
tons.
• Industrial waste emissions were reduced 15% from theprevious fiscal year to 331,000 tons, thanks to a decline in
the availability factor of coal-fired power that reduced thegeneration of coal ash.

■ Effect of environmental protection activities

Although demand for power remained stable compared withthe previous fiscal year, the availability factor of lowenvironmental-impact equipment was increased, reducing
environmental impact on the atmosphere.
• CO2 emissions declined 5.5% from the previous fiscal year
to 49,810,000 tons. This was due to increased use of
nuclear and thermal power generation, an increase in theavailability factor of LNG thermal power, and a decline in
the availability factor of coal-fired power.

21

Kansai Electric Power Group CSR Report 2007

■ Economic effect of environmental protection efforts

Improvements in the fuel efficiency of thermal power plants
engendered dramatic savings in fuel costs, raising the
economic effect to Kansai Electric Power by ¥7.2 billion fromthe previous fiscal year, to ¥24.5 billion.

• Eco-efficiency graph (FY 1990 level = 100)Volume of power soldintegrated index*

200

Volume of power soldCO2 emissions

166
155
150

153

174

181

188

160

133

125
120
136 139
134 136
129 110126 128
117
115
113
108
107

136 130

117

100

100

136

129
99 99 104

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 (FY)* Integrated index =Emission environmental load
Consumed resources
CO2, SOx, NOx, final industrial waste ＋ Oil, coal, fuel for nuclear power
disposal amount
generation
Each is multiplied by the LIME integration coefficient* Beginning this fiscal year, the indices of eco-efficiency switched from operating income
to power volume sold.

* The reduced fuel consumption for this year was calculated from the thermal efficiency improvement compared to FY 1990 levels.

Evaluation of the 2006 fiscal year

Changes in the placement of tables and other changes
lead me to judge that the Company has made strong
efforts to link environmental protection costs withenvironmental protection effects. In
the future, I expect the items listing
environmental protection effects tobe more clearly linked to specificrelated environmental protection
costs, to provide environmental
accounting of more practical use indecision-making.
Eriko Nashioka

Leasing of low-pollution vehicles• Economic effect of environmental protection efforts (Millions of yen)
Category

3. Our expectations(drums)

１０

３３０

±０
１,０８１

(%)

Low-level radioactive waste

３,５７０

−

９８
５,４６２

Industrial waste recycle rate

Recycling of old paper

０.０

１０

(４)

Industrial waste and PCB treatment

３,２２０

2. Eco-efficiency(６８)(1,000 t)

０.０These data show that the cost of pollution prevention rose
dramatically during the period under review, due to theupgrading of existing power plants and construction of
new ones. It is clear that the Company has put great effort
into preventing air pollution.

３３１

Industrial waste discharge

３００

1. Environmental accounting

３,６８０(1,000 m2 total area)

３０

Environmental accounting at Kansai Electric
Power

The Company used LIME to calculate the environmental
impact, due to its value in measuring efficiency. Because
the Company switched its indices of eco-efficiency fromoperating income to power volume sold, the figure does
not include external factors such as the steep rise in fuelprices.

Forested area

０.０

1. for environmental education

Coexistence with local communities and support

FY 2006

Compared to theprevious fiscal year

Group environmental accounting efforts
Group environmental accounting efforts focused on the 38 companies
participating in the Group Environmental Management Committee.
The Kansai Electric Power Group will continue to improve theprecision of its environmental accounting, so that interested parties canquickly and accurately understand the cost of environmental
preservation in its operating activities and the quantities and economic
effects involved.

• Environmental protection costs
Category

Main items(Millions of yen)

FY 2006
FY 2005(38 companies) (38 companies)• Effect of environmental protection activities
Category

Environmental
management

Item (unit)

FY 2006

FY 2005

Acquisition of external certification suchas ISO (no. of facilities)

２３

２０

６
３
８
３９
７３
６７２
７,０７８
６６

８
４
３
４０
６５
５６５
１,２５２
９０

CO2 emissions (millions of t-CO2)
Global and regional SOx emissions (t)environmental
NOx emissions (t)protection
Forested area (1.000 m2 total area)
Building of a sound Industrial waste discharge (1,000 t)
material-cycle
Use of low-pollution vehicles (no. of vehicles)
society
Forestation (trees)
Other

Beautification activities (no. of cases)

Investment Expense Investment Expense
Management activity costs ISO implementation and operation
Air pollution, water quality degradation

Pollution prevention costs prevention, equipment maintenance
Recycling costs

Ordinary/industrial waste processing/recycling
Tree and vegetation planting activities,

Social activity costs participation in non-company projects
Other costs
Total

Levies on pollution levels

３ ６８５
１３
２９
０ ５７２
ー
５
２２
１７
３８ １,３０７

７ １,４６４
５１
２３
１ ６３２
ー
５
０
１２
５９ ２,１３６• Economic effect of environmental protection efforts (Millions of yen)
Category

Revenue
Expenditure
Total

Business income from recycling, etc.
Sales proceeds from eco-products, etc.
Cost reduction by energy saving, etc.

FY 2006
７６５
１３
２０
７９８

FY 2005
４９３
８
１３
５１４

Kansai Electric Power Group CSR Report 200722

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

Global warming prevention efforts

E fficiency – achieving more efficient energy use throughout society
The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

Promoting our New ERA Strategy of comprehensive measures to prevent global warming anddeveloping the initiatives for the reduction of greenhouse gases and appropriate energy use
worldwide.

New ERA Strategy• Renovating hydropower
plants• Improving andmaintaining thermal
efficiency of thermal• Developing fuel gas
power plants
decarbonization
Reductiontechnology• Promotion of nuclear
power generation

We are actively promoting our New ERA
Strategy of comprehensive measures
Reducing greenhouse gas emissions frompower supply
to reduce greenhouse gas emissions.
• Promoting more
efficient use of energy
We are conducting our busifor customers by• Afforestation projects
ness by pursuing balanced policies
developing/spreading
Efficiency
Activities Abroadin order to expand
the
use
of
highCO2 absorption
to promote the three ERA themes ofEfforts to increase energy
efficiency electric
Activities carried out abroad
efficiency by society
efficiency (E), reduction (R) andequipment/systems
to prevent global warming
as a whole
activities abroad (A) in order to• Use of untapped
contribute even more to confronting theenergy sources• Undertaking projects abroad in order• Development andglobal warming problem.
to utilize the Kyoto Mechanism
spread of renewable

ERA

energy sources

Kansai Electric Power’s CO2 reduction
target and performance from
implementation of the New ERA strategy
Kansai Electric Power considers environmental issues to beamong its top management priorities, and has vigorously andindependently tackled them. As a result, the Group stands inthe top ranks of the industry in reducing the CO2 emissions
factor of electrical power consumed (sold) [end-use CO2
emissions factor]. With the first commitment period of the Kyoto
Protocol (FY 2008 – FY 2012) close at hand, the Group has set
more challenging targets.

Thanks to the increased utilization of our nuclear power
plants and the improved thermal efficiency of thermal power
plants compared to the previous fiscal year, the CO2
emissions factor for our fiscal 2006 improved by 0.02 kgCO2/kWh over fiscal 2005, to 0.338 kg-CO2/kWh.*Our core focus continues to be increasing the utilizationof nuclear power generation facilities where our top priority issafety, as well as improving the thermal efficiency of ourthermal power plants and our application of the Kyoto
mechanism related to the reduction of CO2 emissions on a
global scale. Through these efforts, we intend to makesignificant progress in reducing CO2 emissions.
* This is a provisional value. The government will officially announce actual
values, based on the Law concerning the Promotion of Measures to
Cope with Global Warming, etc.

TargetWe have set a reduced numerical CO2 emissions target of an
average of approximately 0.282 kg of CO2 per kWh of electric
power consumed for the five years from FY 2008 to FY 2012.

1,206
0.353

Amount of CO2 emissions(Million of t-CO2)

Amount of power consumed (sold)End-use CO2 emissions factor

1,319
1,227

1,338

1,364

0.331

0.327

40.7

1,429

1,449
1,398

1,418

0.301

37.6

33.9

43.2

41.9

0.260

0.253

35.7

35.2

41.0

0.280

0.277

0.264

0.260 0.261

39.3

39.5

36.9

36.8

52.7
05

2

2

CO2 emission volume＝(kg-CO2)

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

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

Amount of electricity
the customer consumes(kWh)

CO2 emission volume from thermal power stations
Volume of end-use electricity supplied fromall power stations,
including thermal, nuclear and hydroelectric

The CO2 emissions factor for end use of electricity is published by the government of Japan annually.

Kansai Electric Power Group CSR Report 2007

0.338
Approx.
0.282
0.282

51.6

emissions factor for electricity use with the amount of electricity the customer uses.

36.6

0.358

(FY)
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
Note: The values for FY 2005 onward are calculated based on the calculation, reporting and publication system for greenhouse-gas emission volumes,
as mandated in the Law concerning the Promotion of Measures to Cope with Global Warming.

How to calculate CO2 emission volumes in electricity use• Thevolume of CO emitted as a result of customers’ use of electricity is obtained by multiplying the CO

23

1,473

1,402

0.356
0.313

0.275
42.6

1,388 1,404

1,471

1,226 1,233

0.306

0

1,374

Spreading and expanding use of EcoCuteand other high-efficiency devices
Kansai Electric Power is working hard to popularize the use of
EcoCute, a high-efficiency water heater. EcoCute uses an environmentally friendly heat-pump system, which can realize three times theheat energy per unit of electric power consumed. This system enables
us to save energy and dramatically cut CO2 emissions.

• Comparison of household CO2 emissions(Kansai Electric Power estimation)
EcoCute47% reduction

61
115
0

50

100（kg-CO２）• Potential for private-sector CO2 reduction using
heat-pump technology
Approx.
146 million t-CO2

98.5 million t-CO2(approx. 67% reduction)

Potential for CO2 reduction:
Approx. 100 million t-CO2

Approx. 47.5 million t-CO2
CO2 emissions if all heat
CO2 emissions fromcurrent systems
source equipment were(heaters, water heaters,
converted toair conditioners)
the new heat pumps(FY 2002 results)
What would happen if all privately used heating equipment in Japan (in both businesses andhomes) that currently uses fossil-fuel combustion were replaced with high-efficiency heatpumps? Trial calculations suggest that the nation could reduce CO2 emissions by some 100
million tons per year. This one innovation has the potential to surpass Japan’s obligations forprivate-sector CO2 emissions (about 60 million t-CO2) under the Kyoto Protocol.
(Source: Trial calculations by the Heat Pump & Thermal Storage Technology Center of Japanand the Institute of Energy Economics, Japan)

Informing the public about energy-saving
practices• Trend of end-use CO2 emissions factor(100M kWh)
(kg-CO2/kWh)

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

Conventional
gas heater■ CO2 emissions factor result■ Setting CO2 reduction targets

2

49.8

0
06 08〜12 (Average)
TargetKansai Electric Power isconducting a wide range ofefforts to reduce still further
the CO2 emissions factor forend use of the electricity (tosupply low-CO2 electricity).
The Company also offers
customers energy-saving
measures and makes
efforts to reduce customers’
CO2 emission volumes.

Kansai Electric Power is dedicated to assisting its customers inpracticing efficient energy use. For our corporate customers,
we provide a full suite of services for this purpose, throughout
the entire equipment cycle from equipment planning anddesign to installation, operation and maintenance. To serve
individual customers, we provide a wealth of information about
energy-saving techniques, including the household
environmental account book described below.
■ Household environmental account book
The first commitment period of the Kyoto Protocol (FY 2008 –FY 2012) begins next year. As this period approaches, every
family and individual will need to gain greater awareness ofenvironmental issues and change their habits accordingly.
Kansai Electric Power publishes a new “household
environmental account book” on its website, explaining at a
glance how CO2 is generated by electricity, gas and water
use every month. Though it iscurrently aimed at the familiesof Company employees, Kansai
Electric Power is encouraging
broader use of the accountbook and promoting it in the
Kansai region.

■ Providing information about saving energy throughwebsites and pamphlets
Kansai Electric Power distributes pamphlets explaining how
customers can use energy wisely, without undue effort orwaste. On the Group’s website, a simulation called Sho-ene
Kaiketsu Mama Fighter offers tips on reducing energy use.
Sho-ene Kaiketsu Mama Fighter

http://www.kepco.co.jp/sho-ene/index.html■ Service to find out how much energy you use

The energy use notice we deliver every time a customer’s
electricity meter is read contains a comparison with the amountof electricity used in the same month of the previous year. On
our website, customers can view their accounts to see howmuch electricity they have used in the past 15 months.
Information services such as these provide a handy index for
reducing lighting and heating expenses and saving energy.

Promoting the use of renewable energy
As of the end of fiscal 2006, solar-power and wind-power generators installed by Kansai Electric Power generate 959 kW and
150 kW, respectively. The Company is also conducting a wide
range of related support activities, such as purchasing
electricity from solar and wind generators and participating in
the Kansai Green Electricity Fund, actively encouraging theuse of renewable energy.
Other initiatives include research to select ideal locations
for wind-power generation and to develop highly precise
technologies to measure wind conditions.

Participation in the Kansai Green Electricity
Fund
The Kansai Green Electricity Fund is a citizen-participation
project operated by the Kansai Institute of Information
Systems and Industrial Renovation (KIIS). The Fund solicits
contributions from customers in the Kansai region to assist
in the construction of solar panels, wind farms and othernew types of energy generating equipment that do not emit
CO2. Kansai Electric Power is proud to match its customers’
contributions, taking an active part in the quest to promote
the increased use of new energy sources.
Since its launch in fiscal 2000, the Kansai Green
Electricity Fund has assisted in the installation of some75 “new energy” equipment
installations (as of the end of fiscal
2006), playing a key role in the
diffusion and promotion of newenergy sources in the Kansai
region. We at the fund intend tocontinue to collaborate with Kansai
Electric Power to undertake
aggressive activities to promote theMasato Itohfund system.

Kansai Institute of Information Systems
and Industrial Renovation

The Kansai Green Electricity Fund by KIISHousehold environment account book

http://www.kiis.or.jp/greenpow/gre00.htm

http://www.kepco.co.jp/kankyou/kakeibo/index.html

Kansai Electric Power Group CSR Report 200724

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems
greenhouse gas emissions
R eduction – decreasing
through the supply of electric power

A ctivities Abroad – efforts to prevent global warming overseas

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

Promoting nuclear power generation
Nuclear power generation does not produce CO2 emissions
that cause global warming, and so is a valuable tool inmeasures to prevent global warming. Moreover, the uranium
used in nuclear power plants as fuel is available in a numberof politically stable countries, assuring stability of supply andeconomic efficiency.
For these reasons, based on safe and stable operations,Kansai Electric Power considers the promotion of nuclear
power generation a high priority, and is actively pressing
ahead with its development.

• Lifecycle CO2 emissions factor by source(g-CO2/kWh at transmitter)

Kansai Electric Power is developing technologies to separate
and recover CO2 from emission gases at thermal power plants.
The Group is also taking part in a project called carbon dioxide
coal bed sequestration technology development, promoted by
the Ministry of Economy, Trade and Industry (METI).

Description

Equipment and operation use
Power generation fuel combustion

Coal thermal

975
88

Oil thermal
LNG conventional742
38

LNG combined cycle

608
130

887

Solar power

Development of technologies toseparate and recover CO2 (flue-gas
carbon-extraction technology)
Since 1990, Kansai Electric Power has
been working in partnership with
Mitsubishi Heavy Industries, Ltd. todevelop chemical absorption technologies. A pilot plant was established at
Nanko Power Station, where KS-1, theworld’s most efficient solution, wasdeveloped. This innovation has
established the world’s leading CO2
separation and recovery technology.

Kansai Electric Power is using the technological capabilities, knowledge and expertise that it has gained through years ofoperation as an electricity supplier to undertake efforts overseas that make use of the Kyoto mechanisms valuable forcost-effective greenhouse gas reduction on a global scale.

Solar power generation project in Tuvalu

Environmental afforestation project in Australia

As part of its environmental preservation activities with e8, agroup of the world’s leading electric power companies, Kansai
Electric Power is implementing a solar power generation projectin the small South Pacific island nation of Tuvalu. In this project,
the Company plans to install a 40-kW solar generator andprovide its construction and operation know-how to the Tuvalu
Power Corporation, the body that will operate the power station.
Construction will begin in October 2007.
Global warming is an issue of special concern in Tuvalu. Asan archipelago with average elevation of just 2 m above sea
level, if present warming trends continue, Tuvalu may become
the first country to sink into the sea and disappear due to rising
sea levels. The government of Tuvalu feels strongly that it must
not only petition the developed world to generate less CO2, butalso do its own part to introduce renewable energy, participating
directly in environmental preservation. Kansai Electric Powerplanned this project to play a valuable role in this effort.

Past logging of native vegetation in Australia has led to serious
environmental problems, as soil salinization has made previously
arable land unfit for farming. Responding to this crisis, in fiscal
2002, the Kansai Electric Power Group launched a project tohelp prevent global warming and soil salinization at the sametime. In an agricultural area in the suburbs of Perth in Western
Australia, we have planted 2.5 million malee eucalyptus trees ina belt on 1,000 ha ofagricultural land. This
project is expected to fix
approximately 860,000
tons of CO2 over a 20year period.

Kansai Electric Power has decided to procure CO2 credits,through Sumitomo Corporation, that are to be generated through2012 by the Chifeng Dongshan 49,300 kW Wind Power Project,which is currently in operation in the Inner Mongolia Autonomous
region in China.
In this project, 58 wind turbine generators have been
installed in hilly areas in Chifeng City and the power generated issold to a local power company. In addition, the project was
registered as a CDM project by the United Nations in December
2006. CO2-free electricity, generated by the wind farm, is
expected to reduce 750,000 tons of CO2 emissions by 2012.

Wind power
Nuclear power

478
Geothermal power

Project

408

Carbon dioxide coal bed sequestration
technology development(METI project)

Hydropower

53
0

29

22

15

Description
11(Taken from the Report of the Central Research Institute of Electric Power Industry)* Calculations take into account all energy consumed, not just the fuel burnt in producing
the electricity but also the energy consumed in obtaining the basic fuel for theconstruction of facilities, transportation of fuel, refining, use and maintenance.

Maintaining and improving the thermal
efficiency of thermal power plants
Improving the thermal efficiency of thermal power plants
contributes directly to the saving of fossil fuels, resulting insuppressing CO2 emissions.
At the Sakaiko Power Station, we are presently pursuing afacility renewal plan that will incorporate a state-of-the-art
combined cycle power generation method (approx. 58%
thermal efficiency) with a temperature in the entrance of thegas turbine of around 1,500°C. Phased launch of the newfacility will begin in April 2009. In other power plants, theCompany is continuously maintaining and raising thermal
efficiency through improvements in both equipment andoperation.

• Total thermal distribution efficiency(lower calorific value base)
(%)
43

42.6
42
Adoption of
combined cycle

41

Kansai Electric Power is developing atechnology to recover the methane
discharged when CO2 is fed into a
coal bed, adsorbing and fixing theCO2 in the coal in Yubari, Hokkaido.
Our group company, The General
Environmental Technos Co., Ltd, hasbeen participating in the project since
2002.

25

Bird’s-eye view of Hunahuti, capital of Tuvalu
Artist’s conception of the completed
solar power generation equipment• Main overseas projects by Kansai Electric Power
Eastern European countries

CO2 charging test (Yubari, Hokkaido)(Eastern Europe energy
conservation fund)China

SF6 gas emission reduction
SF6 is a greenhouse gas that is used in gas circuit breakers
and gas-insulated switchgears. The Company is working hardto increase SF6 recovery rate when these devices areinspected or scrapped; in fiscal 2006, the recovery rate at
inspection was 98.2%.

BhutanPhilippines

Malaysia

Admixture of biomass fuel at Maizuru
Power Station

Chile
ThailandAt Maizuru Power Station, a coal-fired thermal plant, theCompany plans to generate power using a mixture of coal andwood pellets, a biomass fuel, starting from fiscal 2008. Thismeasure will reduce consumption of coal, reducing
in turn CO2 generation byapproximately 92,000 tons
per year.

40
0Planted malee eucalyptus

Wind Power Generation Project in China’s
Inner Mongolia

Flue-gas carbon-extraction pilot plant(Nanko Power Station)

519
111

704

The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

Developing technologies to separate,recover and fix CO2

Project2

TuvaluWorldwide
Australia(Japan Greenhouse
Gas Reduction Fund)

Legend:

89

91

93

95

97

99

Kansai Electric Power Group CSR Report 200701

03 04 05 06 (FY)

Fund
Wood pellets

Hydropower

Wind power
generation

Afforestation

Waste
processing

Solar power
generation

Kansai Electric Power Group CSR Report 200726

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

2

Responding to community environmental issues
The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

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

Community environmental protection
measuresAt our power stations, we undertake measures based on laws,
regulations, environmental protection agreements and otherrules to reduce atmospheric pollution, water quality
contamination, noise, vibrations and other problems. In
addition, we monitor and measure the air and seas around our
power stations and carefully evaluate the environmental effectsof our operations on the regional environment to ensure that noproblems occur.

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

• SOx emissions and thermal power generation
SOx emissions

Thermal power plant
generated electricity(t)• SOx and NOx emissions per unit of thermal power
generated(g/kWh)3.7

SOx emissions

3.9
2.6

1.7

0

NOx emissions

1.9

2.0
2.0

1.5

1.7
0.12
0.04

0.7 0.6

Germany Japan KEPCO
02
05
06 (FY)USA Canada

UK

France

Italy

02

02

02

02

02

0.3

0.7

0.2

Sources Emission amounts: OECD Environmental Data Compendium 2004
Amount of electric power generation: Energy Balances of OECD Countries 2002-2003
Japan: Research of The Federation of Electric Power Companies of Japan

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

(GWh)

80,000300,000

70,00060,000200,000

50,00038,573100,000

40,000

1,727

65

70

75

80

85

90

95

00

20,00006 (FY)• NOx emissions and thermal power generation
NOx emissions(t)

Thermal power plant
generated electricity(GWh)80,00040,00060,00030,00038,57320,00040,00020,00010,000
4,692

0

0
75

80

85

90

95

00

06 (FY)

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

Kansai Electric Power Group CSR Report 2007

■ PCB waste processing
Since April 2004, Kansai Electric Power has been smoothly
processing pole transformers at our Recycling Center for
Utility Pole Transformers to handle low-concentration PCB
wastes in insulation oil and transformer cases.
In addition, for high-concentration PCB wastes, such as
high-voltage transformers and condensers, we contracted
the Japan Environmental Safety Corporation to process these
items, starting in October 2006. Moreover, we are managing
heavy electrical machinery and other equipment
appropriately in response to the identification of PCB traces
in some items.
■ Efforts to handle asbestos problems
Kansai Electric Power has been periodically monitoring andappropriately managing the condition of facilities identified as
containing asbestos and taking appropriate action. In July
2005, we established the in-house Asbestos Countermeasure
Investigation Committee, to further enhance our efforts todeal with asbestos problems.
We continue to undertake appropriate management andexecute carefully planned measures to handle asbestos.

In anticipation of the enactment of the PRTR law, theCompany prepared the Handbook on PRTR Chemical
Management, as part of ongoing efforts to ensure theprudent and appropriate handling of chemicals. Using thishandbook, and in accordance with the PRTR law, we
disclose to the national government our volumes of chemical
emissions and the amounts transported, and regularly makethe same information public.

Implementing environmental assessments
An environmental assessment is a consultative process withrespect to the environmental impact of a company’s businessactivities. The company’s operations are measured andevaluated to determine the degree of their environmental
impact. The results are disclosed to the regional community andopinions are canvassed. These findings inform the company’senvironmental efforts and are reflected in its operating plans.
In environmental assessments of power generating
stations, not only the procedures stipulated in the Environmental
Impact Assessment Law, but also the specific steps outlined in
the Electricity Enterprises Law, must be followed.
Kansai Electric Power is upgrading its generating
equipment at Sakaiko Power Station to a combined cycle power
generation system. This upgrade was the subject of anenvironmental assessment lasting from January 2004 to July2006.
The station’s combined cycle uses a dedicated natural-gas
turbine (1,500°C-class) to deliver high-efficiency power
generation. This upgrade will dramatically reduce CO2 and NOx
emissions from present levels.
Similarly, we are evaluating the commercial viability of
upgrading the Himeji No. 2 Power Station to combined cycle
power generation. The environmental-assessment process forthis move began in May 2007.

• Overview of equipment upgrade at Sakai Power Station
Item

Current

After upgrade

Method of generation

Steam
2 million kW

Combined cycle
2 million kW

Capacity(250,000 kW × 8 turbines)(400,000 kW × 5 turbines)

Fuel used

Heavy oil, crude oil, natural gas

Natural gas

Approx. 41%

Approx. 58%

Thermal efficiency(power generation end )(lower calorific value base)Note: Start of operations: From April 2009 for No. 1 unit to October 2010
for No. 5 unit (tentative)• Artist’s conceptionof completed plantResearch on the use of bamboo charcoal for
CO2 fixation and effective applications in the
Maizuru region
Kansai Electric Power is conducting empirical research on
making charcoal from bamboo grown in the Maizuru regionof Kyoto to fix CO2 from the atmosphere and on effective
applications for bamboo charcoal, including water
purification and soil improvement,
Since October 2006, the Group has been conducting aproving test in which bamboo charcoal is used as a purifying
agent in water purifiers used to clean rivers and streams.
This purifying action is enabled by the ability of microbes
lodged in bamboo charcoal to break down organic
substances in water.
In addition, the Groupis drawing on a range of
research findings to
examine possible commercial applications making
effective use of bamboo
charcoal.
Equipment used in proving tests of water
purification

27

We conduct strict management of chemical substances toprevent harm to human health and impact on ecosystems inaccordance with applicable laws.

■ Volumes of chemical emissions and amounts transported

30,0000Strict management of chemical
substances

The color scheme includes motifs
recalling the pine forests within
the power plant’s grounds and in
Hamadera Park.

• Discharge and transferred substances subject to PRTR Law (FY 2006)
Substances

Application

Consumed
Discharge (t/year)
quantity
Atmospheric Public waters(t/year)

Soil

Transferred (t/year)
SewageWaste

2-aminoethanol

Water-supply treatment agents

５８

０

０

０

０

４.７

Asbestos (designated)

Insulation materials

８０

０

０

０

０

８０

Bisphenol A epoxy

Paints

７.５

０.１１

０

０

０

０

Ethylbenzene

Paints

１４

１４

０

０

０

０

XyleneFuel (kerosene), paints, cleaning oil

３９

３６

０

０

０

０.１１

HCFC-225

Cleaning agents (for clothing)

４.６

４.６

０

０

０

０

StyrenePaints

１.２

１.２

０

０

０

０

Dioxins (designated)

Waste incinerators (driftwood, etc.)

−

０

０

１４ (mg-TEQ/year)

ToluenePaints, cleaning oil

６.９

６.９

０

０

０

＜０.１

Hydrazine

Water-supply treatment agents, chemical cleaning agents for boilers

１３０

＜０.１

０

０

＜０.１

０.８９

８.７

０

０

０

０

７.３

Tris phosphate (dimethylphenyl) Control oil for power generation turbines

０.３９ (mg-TEQ/year) ０.０５７ (mg-TEQ/year)* The consumed quantity indicates data for one ton or more of Class I Designated Chemical Substances and 0.5 tons or more of Specific Class I Designated Chemical Substances per year (except for dioxin).
* A “0” indicates no discharge. * “<0.1” indicates discharge was less than 0.1 t/year.
* Dioxin quantities indicate discharges and transfers from facilities with special requirements (waste incinerators, etc.) only. No consumed quantities are reported.
* Displayed to two significant digits

Kansai Electric Power Group CSR Report 2007

28

2

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

Promotion of business activities suitable for a sound material-cycle society
At Kansai Electric Power, we are promoting efforts related to the three Rs (reduce, reuse and recycle), including green
purchasing, energy and resource conservation in offices and other business places and other efforts to further develop
our Group as a sound material-cycle enterprise.

* Excluding special management industrial waste• Changes in emission amounts and
98

400
350
300
250

89

98

398.9

331.2

331.2

89

87

98

95

90

86

200

85

150
100
50
0

70.7

63.7

80

56.8

49.7

9.4

6.7

6.8

6.5

8.1

6.5

2000

2001

2002

2003

2004

2005

6.9

and other waste

Industrial and other waste
Sludge (desulfogypsum, wastewater
processing sludge, etc.)
Soot (coal ash, heavy oil ash, etc.)
Cinders (coal ash, heavy oil ash, etc.)
Waste oil
Metal scraps
Demolition debris(waste concrete utility poles etc.)

Main recycling applications
98%
100%
98%
99%
99%
99%

Glass and ceramics scraps (insulation 37%
scraps, window pane scraps, etc.)
Waste plastic scraps(ion exchange resin etc.)

67%

Special management industrial waste 13%(waste oil, waste asbestos, etc.)

29

Kansai Electric Power Group CSR Report 2007

EffortIn-house systemfor promoting
recycling is insufficient.

Enhance efforts for promoting recyclingoriented activities (setting up policies toincrease the recycling rate and monitor
progress by division).

Disposal of
difficult-to-recycle waste

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

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

Construction materials
Cement raw materials
Rare metal recovery
Fuel, etc.

Joint research aimed at popularization ofelectric cars
Electric cars are clean energy vehicles that use batteries
to power a motor and produce no exhaust emissions.
Kansai Electric Power has been involved in research onelectric cars for some time. In fiscal 2006 we launched a
new joint research initiative in collaboration with The
Tokyo Electric Power Company, The Chugoku ElectricPower Company, The Kyushu Electric Power Company,
and Mitsubishi Motors aimed at the popularization ofthese vehicles.
The participating electric power companies are
responsible for carrying out trial runs, collecting data,and evaluation of actual market viability, while Mitsubishi
Motors supplies the test vehicles and analyzes data fromtrial runs.

117

113

106

113

113

40
20
0

2000

2001

2002

2003

2004

2005

2006 (FY)

736

689

684

2004

2005

2006 (FY)

1,021

1,016

1,033

2004

2005

2006 (FY)• Office water consumption(1,000 m3)

1,200
1,000
800
600
400
200
0

1,046

2000

1,200
1,000
800
600
400
200
0

Metal recovery
iMiEV electric carused in joint research

Reduction
volumeAction item
Reduction in office electricity usage

CO2 emissions
index

Reduction in
CO2 emissions(２,９７２ MWh) ０.３５８kg-CO２/kWh (１,０６４ t)

Reduction in water usage
for personal purposes
Increase
Gasoline usage
in vehicle
fuelconsumption Diesel usage(４９,０００ m3)

０.３６kg-CO２/m3(１８ t)＋２５２ kL２.３２kg-CO２/L ＋５８４ t(４２ kL)２.６２kg-CO２/L (１１０ t)(６０８ t)Increasing the number of green
purchasing items

110

Consumption

978

2001

901

804

2002

2003

Amount purchased

1,001

935

919

904

2000

2001

2002

2003

At Kansai Electric Power, in accordance with Japan’s green
purchasing promotion policy, which was established in 1999,
we are pursuing green purchasing efforts by giving priority to
products and services with low environmental impact whenbuying supplies. Specifically, we have established a green
purchasing manual and are promoting efforts to realize thecompany-wide purchasing targets that we have set.
We maintained a high rate of 96.3% for green purchasingof 43 office supply items in fiscal 2006. In addition, we havereevaluated our green purchasing manual in response tochanges in the green purchasing guidelines. Furthermore, we
are working to make our performance management more
efficient by using an environmental management system andother measures.
By increasing the range of office supply items to 45, we
will work to maintain a high green purchasing rate at Kansai
Electric Power.
In fiscal 2006, we actively advanced the procurement ofenvironmentally friendly materials for electric lines, transformers, and other materials and parts for electric power
facilities, raising the number of green purchasing items to 108.
The number of covered items will rise to 111 in fiscal 2007 as
we continue to expand the scope of our green purchasing
program.

• Green purchasing results for electric power facility
materials and parts• Vehicle fuel consumption and efficiency
(kL)

6,000

4,995

Consumption

4,948

4,775
9.41

3,000

0

9.14

2000

9.16

2001

Number of items

Fuel efficiency (km/L)

5,020
4,438

10
4,615
9.36

9.29

4,714
9.26

9.04

2002

2003

2004

2005

9

8

At the Kansai Electric Power Group we have established Eco
Action items to help conserve energy and resources in our
day-to-day work. An estimation based on our performance
figures for fiscal 2006 shows that the efforts of the Group as awhole produced the equivalent of a reduction of 608 tons of
CO2 emissions during the 12-month period. We believe that

Purchase value

120

80

2,700

8,000
3,600

3,600

4,100

6,000
4,000

2,100

20
0

12,00010,000

84

73

60
40

108

106

99

100

2006 (FY)

Estimation of CO2 emissions reduction
through our efforts to conserve energy
and resources

Roadbed materials

Fuel, etc.

119

(t)

Metal recovery

Raw plastic materials

120such efforts can be expanded throughout the private sector,
where carbon dioxide emissions are currently increasing
substantially.

Consumption• Copy paper consumption

75• Applications for resources recovered from industrial

(GWh)

60

Issue

2006 (FY)* Industrial waste recycling rate (%) = (industrial waste emissions – landfill
disposal volume) / industrial waste emissions × 100• Office electricity consumption
80• Concrete efforts to meet targets(%) 100

Recycling rate (%)

Recovery rate for industrial wastes

Industrial waste emissions and landfill disposal

450

Landfill disposal
Emission amount

We continue efforts at each of our facilities to use resources
carefully. In particular, we have set company-wide targets forelectricity, water, copy paper, and vehicle fuel conservation,
and are pursuing a variety of efforts to reduce their use at our
individual facilities.

100

Recycling methods
are unclear.

recycling rates for industrial wastes(1,000 t)

At Kansai Electric Power we have adopted a new industrial
waste recycling rate target of 99.5% or above in line with ourcommitment to achieving zero emissions in our business
operations in the medium and long term. We hope to achieve
this target over the next five years or so through incremental,
step-by-step efforts.
In fiscal 2007 we will strengthen our in-house system forpromoting recycling and move forward with efforts to collectinformation on recycling contractors and to establish
mechanisms for information sharing within the company.

Conservation of energy and resources inour offices

2,000
0
2002

2003

2004

2005

2006 (FY)Green purchasing value (millions of yen)

Kansai Electric Power promotes efforts related to the three Rs
for waste and other materials throughout all its operations, toencourage business activities appropriate to a sound materialcycle society. For example, waste concrete utility poles arerecycled as roadbed materials, and all of the coal ash andgypsum produced by the Maizuru Power Station is recycled as
raw materials for cement and the like.
We strived for a target of limiting total landfill disposal ofindustrial waste* to 4,500 tons or less (a 50% reduction fromfiscal 2000 level), to strengthen our sound material-cycle
business activities. In fiscal 2006, however, landfill disposal
totaled 5,744 tons due to an increase in the volume of difficultto-recycle waste such as insulation scraps from our thermal
power stations and other sources. This was the second fiscal
year in a row that we were unable to meet this target.

Efforts to achieve zero emissions

Number of items covered

Industrial waste recycling rate and landfill
disposal volume performance

The verification markabove identifies items
that have received an
independent review fromTohmatsu Environmental
Research Institute Ltd.

• Green purchasing results for office supplies
and related items

Green purchasing rate
Item

Targets

approx.
Office supplies(43 items)

100%

Performance (FY 2006)

96%
Copy paper99%

OA devices (5 items)

99%

Stationery (26 items)

89%

Appliances and furniture (11 items) 94%

Kansai Electric Power Group CSR Report 200730

2

Progressive Approach to Environmental Problems

Progressive Approach to Environmental Problems

Efforts to protect the natural environment

Efforts by group companies

Kansai Electric Power is involved in a variety of efforts to protect the natural environment. These are motivated by ourdesire to provide a good environment for local residents and to preserve the natural ecosystem.

The companies of the Kansai Electric Power Group are actively engaged in efforts to contribute to society throughenvironmental preservation. They make use of their expertise and advanced technology in the field of environmental
preservation, backed by the management resources of the Group as a whole.

Afforestation and creation of green
spaces under our environmental
revegetation policy

Yamazaki Traditional Horticulture Laboratory

Environmental
Development of the FDEM probe The General
Technos

Since ancient times the Japanese have prized harmony withnature and have actively incorporated horticulture into their lives.
The art of breeding garden flowers and plants to achieve novel
combinations of colors and shapes has been particularly highly
prized from the Edo period (1603–1868) onward, and a large
number of new varieties have been produced.
“Traditional horticulture” can be considered a crystallizationof the traditional culture handed down by skilled gardeners fromgeneration to generation. However, such gardens are notprotected by the Japanese government, and in recent years thedanger has arisen that most of them will disappear.
At Yamazaki Traditional Horticulture Laboratory in Shiso,
Hyogo Prefecture, Kansai Electric Power is working to preserve
precious examples of traditional horticulture and to assist in theestablishment and preservation of horticultural techniques.
Yamazaki Traditional Horticulture Laboratory is the only
facility of its kind in Japan where living examples of traditionalhorticulture are collected and preserved. The collection of thelaboratory presently includes more than 2,000 varieties of
traditional Japanese garden plants.

The spate of natural disasters in recent years has increased thenecessity of confirming the safety of existing infrastructure
equipment and facilities. Against this background, The General
Environmental Technos has developed an FDEM (Frequency
Domain ElectroMagnetic induction) probe that generates
electromagnetic fields at multiple frequencies to measurespecific resistance quickly (multiple-frequency probe technology
NETIS registration No. KK-050083-V). This probe technology
can be used to identify weak points underground, for example,
under road surfaces, in mountain fissure faces, in embankments
along rivers, and behind revetments. The FDEM probe makes it
possible to search for landslide locations, cavities, and foreign
matter quickly and cheaply. The General Environmental Technos
also evaluates facilities based on the survey results.

In the large-scale green spaces surrounding our thermal andnuclear power plants, we have introduced an Ecological
Revegetation Method designed to create natural woodlands asa highly effective way to preserve the environment. The method
involves dense planting of mixed varieties of saplings suitable
for the geographical region in order to create a forest similar to
the natural state quickly. Many of our facilities are alreadysurrounded by lush greenery that forms a habitat for wild birds,
insects, and small animals.
In addition, we landscape the public areas surrounding
our substations and other facilities in urban settings to provide
relaxing spaces for local residents to enjoy.

Recycling by the Kansai Electric PowerGroup
As recycling becomes a familiar activity in our daily lives, theKansai Electric Power Group is working to promote recycling ofa wide variety of items.
■ Recycling utility poles

Transmitter coil

The Kanden L&A

Kanden L&A recycles old utility poles. The company’s
machine for pulverizing concrete utility poles is one of only
three of its type in Japan.
1 Removal:

Concrete utility poles are removed during
roadwork, etc.

2 Sorting:Utility poles that are still serviceable arereused, and the remainder are transported
to the Kanden L&A for processing.

Receiver coilTransmitter2

3 Separation: At the Kanden L&A plant, the concrete

utility poles are crushed and the reinforcing
steel and concrete are separated.
4 Recycling:

ReceiverThe pulverized concrete is used as roadbed
materials, etc., while the reinforcing steel ismelted down and recycled.

FDEM probe

Top:
Matsubaran
tsukumo kinpu

Environmental revegetation at our Nanko Power Station

Creating biotopes and holding viewing
parties
We are working to create environments (biotopes) around ourthermal and nuclear power plants where insects such as
dragonflies and fireflies can thrive. We also organize viewing
parties and other events to encourage local residents tobecome more familiar with them.
At the Okutataragi Power Station we are involved in thecreation and management of a biotope that we hope will
become a breeding ground for the forest green tree frog, which
has been designated “B rank” in Hyogo Prefecture’s Red Data
Book of endangered species.

Left:
Kinshi nanten
orizuru ikada
kinshiYamazaki Traditional Horticulture Laboratory

What I think as I watch
the forest grow.

Opening of Good Health University

Kanden Amenix

In September 2006, Kanden Amenix opened the Good Health
University Northern Alps Campus at Kuroyon Royal Hotel inOmachi, Nagano Prefecture. “Good Health University” is apractical educational program on healthy living organized by
Minkatsu Corporation operated by the Ministry of Economy,
Trade and Industry. It is grounded in “hot spring treatment
studies” in natural settings with fresh air and features a
combination of local “hot spring resources,” “food resources,”“exercise resources,” and “environmental resources.” Good
Health University Northern Alps Campus provides participants
with an opportunity to enjoy the
hot spring facilities for recreation
alongside services that focus onpromoting good health.

Seiji Ueno
Office of Environmental Considerations,
Environmental Technology GroupWe began using the Ecological Revegetation Method tocreate green spaces around our thermal power stations
and other facilities about 30 years ago. Since then someplants have withered from salt damage due to typhoons
and the like, but I have also seen seedlings that were
only about 50 cm tall at first grow into mighty trees some
15 meters in height. These trees have also spawned
many new seedlings, and the woodlands have expanded
to become broad green spaces.
It may be true that the trees have thinner trunks thanthose in a natural forest, but as a group they are able towithstand punishing conditions and to grow and flourish.
When I look at the trees I think that we at Kansai ElectricPower are also like a forest: we must work together as ateam in order to advance toward our goals.

Forest green tree frog

Biotope at our Okutataragi Power Station

31

Kansai Electric Power Group CSR Report 2007

• Example programs

Food made using local ingredients

Water exercises in a heated pool

Hot yoga

Good Health University Northern Alps Campus

Pulverizing old concrete
utility poles■ Recycling driftwood from dams
Kanden-el-farmKanden-el-farm Inc. recycles driftwood that collects in thedams of our hydropower plants into environmentally friendly
products such as coasters, business card cases, and potted
plant kits sold under the name “El Pianta.” In addition, theirfertilizer and planting soil made from driftwood from dams issold at home centers throughout Japan and is very popularamong both ordinary families and farming households.

El Pianta consists of abiodegradable pot, soil,
and a bulb.

http://www.onsenkyo.com/kita_alps/

Kansai Electric Power Group CSR Report 200732

Proactive Contributions to Development of Local Communities

3

Contributions to society as a corporate citizen
As an enterprise with deep connections to communities and individual lifestyles, we are actively contributing toregional society at each of our business facilities.

Safe havens for children program(110-ban movement for children)

Assisting people with disabilities through art

Support for employee volunteer activities■ Kanden Collabo Art 21 exhibitions for disabled artists

In recent years many crimes have occurred in which children
were victimized on their way to or from school. This has led tothe creation of the safe havens for children program (110-ban
movement for children) nationwide.
Kansai Electric Power is participating in this effort incollaboration with our Group companies and labor unions.
We are utilizing our deep roots in local communities, together
with a network of companies and labor unions covering theentire Kansai region, to help ensure the safety of local
communities.

Kanden Collabo Art 21, a series of exhibitions featuringsubmissions of art created by disabled people, is acollaborative project that connects businesses and society
through art. It is organized in collaboration with the Tanpopono-ye Foundation, a group that has extensive experience withdisabled artists. We accept works of art from throughout
Kansai, and every year we receive over 600 submissions.
The most outstanding are selected for awards and displayedin public exhibitions. In fiscal 2006, the 6th year we held thisevent, we held exhibitions at seven locations throughout
Kansai and Wakasa to allow as many people as possible todirectly experience art created by disabled people.

We support the desires of our individual employees tocontribute to society through volunteer activities. In addition
to offering volunteer time-off, a matching gift program andother support policies, we provide information to ouremployees through in-house publications to raise their desire
to participate in volunteer activities.

• Support system for volunteer activities
Matching gift program
Results (FY 2006): 9 instances totaling ¥500,000
Under this system, the company makes contributions up to a set
limit to match support provided, either by individual employees
or collected through workplace fund-raising activities, to publicorganizations that meet fixed requirements.

Volunteer time-off program
Results (FY 2006): 121 instances totaling 244 days

Safe haven vehicle with 110-ban movement
sticker (Ogimachi Sales Office)110-ban movement safe haven marker
cone (Shiga Sales Office)Sponsoring community events
Each of our business facilities sponsors local events as a way
to express our thanks to the members of the communities inwhich we operate.
■ Ako Cherry Blossom Festival (Ako Power Station)
Ako Power Station is known locally as “the cherry blossom
power station” due to the 200 cherry trees planted on its
grounds. Each year the power station sponsors a public
Cherry Blossom Festival on the second Sunday in April, when
the cherry blossoms are in full bloom.
April 2007 marked the 15th time the festival was heldand corresponded with the 20th anniversary of the station’s
opening. Accordingly, the plant employees planned extra
events, stage performances, and the like. Approximately
4,000 people attended. The stage performances included
Japanese-style taiko drummers from a local nursery school
and a show by dance school students. This popular event
provided an excellent opportunity to get to know members of
the local community better.

“Chimpanzee” by
Masato Kawabata
Winner of FY 2006
Grand Prize

This system allows employees that participate in activities that
contribute to society and meet fixed conditions to take 50% to100% of the time devoted to such activities as speciallyrecognized time off, up to an annual limit.

Fostering increased interest in student
sports■ Supporting student American football in Kansai
Kansai Electric Power has been supporting student American
football in Kansai since 1988.
The KANDEN FLASHBOWL SERIES is a league
tournament held each spring and autumn. It aims to generateinterest in student American football in Kansai and raise thelevel of skill.

overseas
Since fiscal 2000, Kansai Electric Power has been
cooperating with local governments and business
communities in an effort to promote economic growth in theareas where we operate by attracting new businesses. For
example, we provide information on the incentive system by
local governments and industrial parks in Kansai toenterprises that are investigating Kansai as a new location.
We also conduct public relations efforts and other activities
to promote the convenient transport access and numerous
merits of the Kansai region in order to attract the attention ofbusinesses that are considering investment in domestic
facilities.

• PR tools

We produce The KANSAI Guide to Investment, a concise
pamphlet with information on industrial parks in Kansai and the
incentive systems offered by local governments. Japanese andEnglish versions of The KANSAI Guide to Investment may beaccessed on the Kansai Electric Power Web site.

The KANSAI Guide to Investment
makes it easy to search for information
on industrial parks in Kansai. It is alsoavailable in English in order to attract
business investment from overseas.

Volunteer sabbatical program
Utilized by 14 employees from FY 1992 to FY 2006
This program enables employees who have worked for thecompany for five years or more to take up to a year off in order toparticipate in long-term volunteer work for a public social welfareorganization. In the case of the Japan Overseas Cooperation
Volunteers, however, the maximum sabbatical period is two
years and six months.

industry

KANDEN FLASHBOWL SERIES

Keisuke Kotaki
Engineering Group,
Distribution and Sales Division
Posted to Nakhon Si Thammarat Industrial
and Ship Building College, Nakhon Si
Thammarat Province, Thailand (March 30,
2006 to March 29, 2008)

I am currently teaching electrical engineering in theElectrical Engineering Division of the college. We recently
started an internship program in collaboration with
KINDENKO (Thailand), the local subsidiary of Kinden
Corporation, in order to increase the motivation of thestudents. Each day is hard work, but I am doing my best in
the hope of making my own small contribution to the social
development of Thailand.

Cherry Blossom Festival at Ako Power Station
Kanden classical special in FY 2006: An Invitation to the Opera

We also publish the magazine Community Information on abimonthly basis. It contains information on industry-university
collaboration projects, industrial promotion policies and thelatest incentive systems offered by local governments, andavailable industrial sites.
■ An accelerating concentration of high-tech

Participation in the Japan Overseas
Cooperation Volunteers through the volunteer
sabbatical program■ Classical concerts
Since 1998 we have been holding classical concerts, with anemphasis on local Kansai musicians, at our headquarters,
branches and other locations.

Kansai Electric Power Group CSR Report 2007

■ Attracting businesses to Kansai from Japan andPublic exhibition (Umeda Sky Building)

Helping art and culture to bloom

33

Efforts for regional vitalization

Matsushita Plasma Display Panel Co. has built a new factoryfor plasma display panels on the site of Kansai ElectricPower’s decommissioned Amagasaki No. 3 Power Station,and production started in September 2005. They have alsoannounced plans to build another factory, which will be thelargest of its kind, on an adjacent site. Construction ispresently underway with the goal of starting operation in2009. These large state-of-the-art factories harmonize
beautifully with the Amagasaki coastal zone, an area that isbeing redeveloped according to concepts outlined in the
Amagasaki Forest Plan for the 21st Century.
In a related development, Asahi Glass Co., Ltd., has built
a plant to produce glass
panels for plasma displayson the site of Kansai
Electric Power’s decommissioned Osaka Power
Station in Suminoe Ward,
Osaka. The Kansai regionis rapidly becoming home
to a concentration of hightech industry in the flatscreen TV and other fields. The new Matsushita Plasma Display Panelfactory built on the site of a decommissioned
Kansai Electric Power station in Amagasaki

The KANSAI Guide to Investment

http://www.kepco.co.jp/english/i-park/

Kansai Electric Power Group CSR Report 200734

Respect for Human Rights, Development of Favorable Work Environments

4

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

■ Support for childcare and nursing
To support both work and households, we provide a diverse
variety of options to meet employee needs. For example, we
introduced a temporary leave system for child-raising in
1991, before such provisions were mandated by law. At
present, employees can utilize this system until the end of the
fiscal year in which their child turns three. The system is easy
to use and well-established, with several male employees
presently making use of it, even though it is primarily utilized
by women.

• Main child-raising support systems
Under
1 year

1 year old 2 years old 3 years old 4 years old 5 years old 6 years old 7 years old

Maternity leave
Maternitylea
6 months before
childbirth
8 months following
childbirthTemporTemporaryemporararyy childraisingchildraising leave
lea
Through the end of the fiscal year in which
the child reaches three years of age

f-Staff system
Approximately 20 employees are presently participatingin our f-Staff system, which reemploys women who
resigned their jobs with Kansai Electric Power to givebirth or to raise their children. Based on work
performance, f-Staff may eventually be hired as full-time
employees if they so desire.
I continued to work full-time at Kansai Electric Power after
I got married, but I had to resign when I had my firstchild because my husband had his own work
responsibilities and neither of our parents lived nearby.
Later, when my second child entered kindergarten, I
started to think about reentering the workforce. Then I
found out about the f-Staff system, and since April 2006 I
have worked as an f-Staff employee.
The system allows me to choose my work hours sothat I can take my children to and from kindergarten. It
makes it possible to combine childrearing with working
outside the home. The f-Staff system provides anotheralternative for employees who want to do both, alongside
existing childcare leave systems
and shortened work-hour systems. I
really think it’s wonderful.

Hiroko Yoshioka
Renewal

Fukuchiyama Sales Office

We are actively implementing educational and support policies
to promote the growth as individuals of each of our employees.
In fiscal 2006 we put particular effort into improving training fordifferent specialized fields and stages of capability, andensuring that expert knowledge and skills are passed on to new
employees, with the key policy of “implementation of training tosupport reliable execution of work tasks, with safety as the top
priority.” In addition, we have increased the subjects andcoverage of our Challenge Training courses, which employees
can attend on their days off. The response has beenenthusiastic, with 4,311 participating in the 151 courses offered.

• Diagram of the training system for FY 2006

Workplaceeducation

Frontier challenge
training

Managers and supervisors
Frontline section
manager training

Advanced
stage

Career challenge
follow-up training

Appliedstage

TQM practicalstaff training

Basic stage

New manager
training

General employees

S3 basic training

Stage ofcapability
Capability
development
category

Elective courses• Skills training
Division-specific education • Work task knowledge training• Specialized theoretical training
On-the-job training
Overseas posting training system (career advancement training)

Support for
selfimprovement• Day-off training system (Challenge Training)• Kanden e-learning• External distance learning system• System of monetary rewards for attaining national certification licensing, etc.

President, Kanden L-Heart Co., Inc.

Maintenance of stable labor andmanagement relations
Kansai Electric Power has concluded union shop agreementswith the Kansai Electric Power Labor Union, and we havebuilt over 50 years of history of working toward the sharedgoal of improving company productivity accompanied by
improving labor conditions. We have built good labor andmanagement relations based on a strong relationship of trust.
In order to maintain this good relationship, we will holdoperation confabulations about company management plansand other topics among other efforts to promote mutual
understanding and agreement between labor andmanagement.
and management

f-Staff system

Kansai Electric Power Group CSR Report 2007

There has been growing demand in recent years for
employment opportunities for the mentally disabled. We hired
two such persons in fiscal 2005 and two more in fiscal 2006.
We also have trained four in-house job coaches (No. 2
workplace adaptation assistants) who provide assistance todisabled people having difficulty adapting to the work
environment. In the years ahead we plan to expand ourefforts to employ people of various mental and physicalconditions, with the emphasis on theseverely disabled, who continue to beunderemployed, and including people
with mental or developmental
disorders. We hope to develop newmodel businesses tailored to thecharacteristics of different disabilities.
Shiro Nakai■ Main opportunities for communication between labor

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

35

number of severely disabled people )At present, 97 disabled employees work at Kanden L-Heart. In
fiscal 2006 the company established Friendly Community
Garden: Udono-no-Sato in order to expand its employment of
disabled people. Kanden L-Heart is considered a model
employer of the disabled, and has received many visitors fromall over Japan. The total number thus far is just short of 50,000.
In August 2006, HIH Crown Prince Naruhito visited the facility.

■ Words of an f-Staff employee

Shorter
Shor ter workw
wor
orkk hours

Reemployment before the child enters elementary school,with renewal thereafter■ Kanden L-Heart (business facility employing a large■ Cultivation of personnel

S2 basic training

Efforts to employ the elderly at Kansai Electric Power predate
the implementation of the Law for the Stabilization of
Employment of Older Persons in 2006, which mandates suchmeasures. Our reemployment system for employees retiring
at the age of 60 was introduced in 1996. In 2001 weestablished the e-Staff system, which increased the
mandatory retirement age to 65 in stages and greatly
expanded the types of work covered. Today, more than halfof our employees choose to continue to work after age 60
under the e-Staff system. It enables older employees tocontinue to use their knowledge and experience in theirfamiliar workplaces.

Our employees are the driving force behind the future growth of
the Kansai Electric Power Group. With this in mind, we are
actively introducing a variety of systems for the cultivation andmanagement of personnel.

S1 basic training■ Expansion of “cafeteria” plan
We have introduced a “cafeteria” plan that allows employees
to choose the services they require and receive support by
selecting from a varied “menu” of options. In fiscal 2006 wereviewed the system, based on the views of employees, tomake it even more convenient and effective.

Promotion of employment of older people

Our efforts to employ the disabled
Change in the rate of employment
are ongoing. For example, in 1993 • of disabled people
we established Kanden L-Heart, a
2.03(Unit: %)special affiliate company where we
2.0
1.97
have actively employed disabled
1.98
1.95
people for many years.
1.94
Our employment rate for 1.9
1.92
disabled people was 2.03% in June
0 02/6 03/6 04/6 05/6 06/6
2006, exceeding the legally(Year/Month)required employment rate of 1.8%
again. In the future, with the goal of increasing their
independence and participation in society, we will do everything
we can to promote the employment of people with disabilities.

New employee
training■ Diverse working time systems
In order to support flexible lifestyles, we are operating
existing working hour and time-off systems adaptably while
implementing new ones, including the Refresh Time-off andFlexible Time-off long-term time-off systems and the Selective
Working Hour and Flextime Working Hour systems to promote
efficient work.
Furthermore, to help support family lifestyles with greater
flexibility and peace of mind, we have established systems
for half-day time-off, sick-leave time-off accumulation andtime-off to take care of sick children.

Enhancement of personnel vitalization
systems

General education

Support for lifestyle choices

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

Promotion of the employment of people
with disabilities

Specialized
education

Through the entire work cycle from hiring to retirement, we
conduct personnel deployment with no distinction of gender.
In accordance with the 1986 enactment of the Equal
Employment Opportunity Law and the revisions of the samelaw in 1999 and 2007, we have consistently worked to create
employment environments where all employees can fully use
their abilities.

Appropriate management of work hours

Group education

Promotion of hiring in compliance with
the Equal Employment Opportunity Law

Operation
confabulation

Promote mutual understanding between labor and management
about the company management plan etc. (held annually)

Operation
discussion

Consultation between labor and management about organizational
reform and other important issues (held as necessary)■ Promotion of human resources management
We endeavor to create an environment in which each andevery employee can track their own growth and maximize
their innate abilities while constantly striving for improvement.
In fiscal 2006 we reviewed the existing evaluation system,
adding a new “contribution evaluation” and enhancing
communication with frontline employees in order to ensure
the system takes firm root. In the future we plan to study ways
to restructure our personnel vitalization policies, starting withthe employee wage system, with “growth” as the keyword.

• Introduction of an Expert Technician Recognition System
We introduced a system of selecting and certifying Expert
Technicians in fiscal 2007 (see page 10 for details). Thissystem will ensure that key technology and skills specific tothe electric power industry are reliably handed down to
new generations of employees. In addition, we expect it toinspire our employees to improve their own technicalknowledge and skills.

Kansai Electric Power Group CSR Report 200736

Highly Transparent and Open Business Activities

5

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

Communication at every businesslocation

Providing information through print
publications and email magazines

We are actively promoting communication with local
customers at all our business sites in order to deepen theirunderstanding of our business activities and to hear theiropinions so that we can reflect them in our efforts to improve
our enterprise.
Branch offices, district offices
and sales offices hold customer
meetings. We invite local experts
and opinion leaders to thesemeetings in order to deepen theirunderstanding of Kansai ElectricPower business activities and tolisten to their opinions and requests
related to every aspect of these
Creating opportunities for
activities.

We are making use of media, including print publications, tobroadly provide information to deepen understanding of thebusiness activities of the Kansai Electric Power Group.
Examples include the regularly issued public relations
magazine Watt, which features our business activities in
addition to lifestyle information and regional topics, andInsight: Keywords for Understanding the Times, an e-mailmagazine aimed at opinion leaders. In addition, through thepresent report we are introducing our business activities andefforts to promote corporate social responsibility (CSR)
concisely and clearly, and seek to deepen our readers’
understanding.
Furthermore, we administer questionnaires to gather
readers’ opinions, which we use in our efforts to improve ourbusiness activities and corporate social responsibility efforts.

communication with local residents

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

Promoting communication within the company

Kansai Electric PowerGroup CSR Report(published annually)

Kansai Electric PowerGroup Environmental
Initiatives

Tour of substation operations (customer meeting)

Creation of public relations facilities

Communication via the Internet

For people in our region to understand Kansai ElectricPower’s business activities and electricity generation efforts
while increasing communication with local communities, wehave built public relations facilities at power plants andelsewhere that are being used extensively by ordinary
people.
Currently we are working with Wakayama Prefecture andthe city of Gobo to build new public relations facilities in the
Port of Hidaka New Energy Park (EE Park) with the aim ofresearching and popularizing new sources of energy (thepark is scheduled to open in October 2007).

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

Kansai Electric Power discloses information to our investors
impartially and swiftly. We provide information to our institutional
investors, individual investors,
public groups and a wide
range of other investors inJapan and overseas inresponse to various needs
through the Kansai ElectricPower web site and othermeans.
Company explanatory meeting about FY 2005
financial statement (May 10, 2006)

Press conference

Watt (published quarterly)

Providing information to shareholders
and investors

We promote active communication within the company toencourage sharing and understanding of business information, andto enable employees and management to work together as a team.
We provide time-sensitive information via our in-house portalsite and publish a monthly in-house newspaper, Kansai ElectricPower News. In keeping with the goal of reliably conveying
business information to each of our employees, especially
important information, we sometimes publish special issues andinclude explanatory matter assummaries in the monthly issues.
We also administer questionnaires
after issues appear and use thisfeedback to implement changes
as needed in order to make thenewspaper more useful to ouremployees.
In the case of particularly
important or urgent information,
announcements,
includingmessages from the President, arerun on our in-house televisionsystem.

■ Company explanatory meetings and visits to investors
We periodically hold company explanatory meetings headedby the President, and visits to investors in Japan and abroadby the President and corporate officers. Through thesemeetings, corporate managers promote active two-way
communication with investors.
■ Investor relations tools for providing information
We create pamphlets that we also make available as
downloads from our web site to provide our shareholders andinvestors with an overview of Kansai Electric Power businessactivities, our management targets, financial data and otherinformation.

Company Profile (profile of Kansai
Electric Power, published annually)

Kansai Electric Power News
(published monthly)

Sharing insights from customers
throughout the Group

Kanden e-Patio (updated regularly)

Port of Hidaka New Energy Park

Kanden e-Patio

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

37

Kansai Electric Power Group CSR Report 2007

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

Factbook (objective overview of
the company and analysis ofmarket trends, published annually)

Annual Report (published annually)

Kanden Dayori(newsletter for shareholders,published half-yearly)

Kansai Electric Power Web site
(corporate information and investor
relations, updated regularly)
For shareholders and investors (IR information)

http://www.kepco.co.jp/ir/

Kansai Electric Power Group CSR Report 200738

Strict Enforcement of Compliance

Consciousness raising and autonomous efforts in individual
workplaces

Implementation of policies for ensuring compliance withapplicable laws and regulations

In fiscal 2006 we continued to promote autonomous efforts in every workplace, mainly through discussions, led bycompliance promotion staff (section manager level) appointed at each location, of themes closely related to thespecific tasks being carried out.

In addition to raising awareness, we strive for practical implementation. In fiscal 2006 we launched an enlightenment effort
at Kansai Electric Power to instill awareness regarding compliance with applicable laws and regulations. We also
implemented a variety of measures to deal with specific legal risks.

Consciousness raising in individual
workplaces

Promotion of dialogue with frontline
workplaces

Spurring attention to legal issues in atimely manner

Efforts to prevent omissions in legal
procedures

In order to conduct well-grounded compliance promotion efforts
and deepen the awareness of our individual employees, membersof our compliance promotion staff have promoted grassroots
compliance activities at every workplace since fiscal 2004.
In fiscal 2006, our efforts to train CSR promotion leaders
included compliance training sessions (a set of two sessions) led
by outside instructors and targeted at top executives (CSR
promotion leaders) in each division and business location. This
provided an opportunity in individual workplaces forconsciousness raising regarding compliance, as described
below.
In fiscal 2007, we will increase our emphasis on discussions
in individual workplaces in order to foster in employees a concreteawareness of compliance risks and problem points in their own
day-to-day work and a shared risk consciousness throughout theentire workplace.

Staff from our Compliance Committee Secretariat (Legal
Department) visit our frontline workplaces to conduct dialogue
and training. This effort is designed to ensure that complianceawareness becomes firmly rooted throughout Kansai ElectricPower and to further promote autonomous efforts at each
workplace.
In fiscal 2005 such visits covered all 82 of our frontline
workplaces, including our sales offices and power stations,and involved dialogue-centered training for compliancepromotion staff. The training emphasized the importance of risk
management and preventative measures at each workplace.
In fiscal 2006, staff from the Compliance Committee
Secretariat visited 31 business locations, mainly technicalfacilities such as operation and maintenance offices and power
stations, for “frontline workplace dialogues.” These sessions
with the compliance promotion staff at each location included
the following: (1) listening to descriptions of awareness of theissues at the site, areas of concern, and opinions and requests;(2) dissemination of thoughts on compliance as part of the risk
management process; (3) providing knowledge about legal
issues of rising public concern, such as falsified work contracts(giso ukeoi: bringing in workers from independent contractors
to have them work like temporary workers (haken) as if
dispatched from staffing agencies but without haken benefits);and (4) efforts to promote the utilization of traveling legal
consultations and the legal consultation system.
In fiscal 2007, the Compliance Committee Secretariat
plans to further broaden its program of direct visits to frontline
workplaces for dialogue and training activities.

The Compliance Committee Secretariat within the Legal Department
works to deal quickly and appropriately with specific legal risks as
they arise, holding explanatory meetings and disseminating
information on legal issues of increasing concern to society as awhole on a Group-wide basis and in a timely manner.
For example, falsified work contracts (giso ukeoi) became anational issue in 2006. In September of that year the Compliance
Committee Secretariat (Legal Department) held explanatory meetingsfor every division of Kansai Electric Power and instructed that
inspections be carried out. They also advised consultation with theLegal Department in any case where there was a possibility of giso
ukeoi.
Subsequently, they made use of various opportunities that
presented themselves to explain the situation at individual Group
companies and frontline worksites such as operation andmaintenance offices and power stations, and they provided guidanceon corrective measures in response to specific matters brought totheir attention in discussions.
We will continue to work to raise awareness throughout theKansai Electric Power Group of legal issues such as giso ukeoi.
Should any questionable practices come to light, we will take
immediate action to eliminate them.

In the past, Kansai Electric Power has relied on a list of procedures
required by law in relation to our business operations (Legal
Procedure Checklist) to prevent omissions. However, inadequacies inour performance of legal procedures, including failure to submit therequired reports and applications, came to light at some of our power
stations in fiscal 2006.
In response, we are reviewing the Legal Procedure Checklist
based on the facts of the cases. In future we will work to make betteruse of the checklist and to accurately track the execution of required
legal procedures in our business activities.

Compliance training sessions for training CSR promotion leaders
Session 1: Practical implementation of compliance and CSR:
Making compliance a matter of course
Instructor: Tadashi Kunihiro, Attorney at Law(June 1, 2006)
Session 2: CSR and compliance through high-quality decisionmaking and work
Instructor: Tomoyuki Tanabe, Head Researcher,
Socio-Economic Research Center,
Central Research Institute of Electric Power
Industry (November 30, 2006)

Consciousness raising regarding compliance at individual worksites
1 Training of workplace employees by CSR promotion leaders
2 Discussions, led by compliance promotion staff, of themes

closely related to day-to-day work
Employees at the workplace discuss the possibility that
hidden rule violations may exist within their own daily workand effective measures to prevent such violations. In thisway, an effort is made to manage and reduce the risk oflegal violations.

Compliance with the Anti-Monopoly Law
The economic environment in which Kansai Electric Power operates isundergoing major changes, such as further liberalization of retail salesof electrical power. This means we must be more careful than ever to
conduct our business with an awareness of the Anti-Monopoly Law
and to ensure fair competition. In the past, Kansai Electric Powerproduced and distributed in-house manuals and explanatory
materials on the Anti-Monopoly Law. Then, in June 2006, we began
updating our Anti-Monopoly Law Observance Manual (first issued in
1996) to reflect revisions to the Electricity Enterprises Law and the“Guidelines for Proper Electric Power Trade” issued by METI.
In July and August 2006, we held Anti-Monopoly Law training
sessions, as we do every year, at our headquarters and branches inorder to deepen understanding of this topic among our employees.
As part of our efforts to ensure thorough compliance, in theyears ahead we will continue these training sessions with the aim of
instilling in our employees a correct understanding of the intent andcontent of the Anti-Monopoly Law that will be reflected in their work.

6■ Introduction of Legal FOCUS

It is essential to obtain copies of the latest laws and ordinances inorder to keep abreast of the legal procedures that must be followed inour business activities. In the past, each division independently
collected information on applicable laws from sources such as thegovernment gazette and made sure that frontline personnel weremade aware of this information. In January 2007, we supplemented
the existing system by introducing Legal FOCUS, a system forcollecting and managing information on the latest revisions to laws
and ordinances, throughout the Kansai Electric Power Group.
In the years ahead, we plan to use this system to prevent theomission of mandated procedures due to lack of awareness ofrevisions to legal requirements.

• Outline of Legal FOCUS
Dai-Ichi Hoki
Lawselection
list byenterprise

Selection of laws requiredby Kansai Electric Power

Kansai Electric Power

1
2
Information on revisions
to selected laws

E-mail alert

BrowserBrowse full text of law(optional)

D1-Law
Data of informationon laws andprecedents(customized page forindividual enterprises)
List of revisions
applicable to individual
enterprises

Table listingLegal
old andcommentary
new versions

3
Link to URL

Support for direct browsing

Legal FOCUS is a Web-based product (provided by Dai-Ichi Hoki Co., Ltd.) thatallows individual enterprises to register laws relevant to them, on a division-bydivision basis, and view complete information on any revisions to those laws.

3 Training by compliance promotion staff based on actual

examples of compliance
Discussion and training at Sakaiko Power Station

Compliance activities at Kanden Plant Corp.

A word from one of our compliance promotion staff
In order to maintain hydropower plants, dams
and transmission facilities, and to supply
stable electric power, it is most important toensure that our basic business activities havebeen carried out correctly, giving top priority to
CSR and safety.
As a member of the compliancepromotion staff, I make an effort to conduct
basic business activities while ensuring
Toshiyuki Hayashi
compliance with all applicable laws andHeadregulations. I always advise our employees to
Jintsugawa Power System Center
confirm and implement laws and in-house
Hokuriku District Office

39

Kansai Electric Power Group CSR Report 2007

rules, and to ensure zero accidents and workrelated incidents.
The causes of risk on the frontline of theworkplace can be both great and small. I
believe in raising consciousness by sharing
information and recognizing risks throughdaily communication. We are working tocreate good teamwork and a workplace that
promotes mutual communication, and in which
we point out each others’ weaknesses, give
advice and consider others.

Teisaku Nakahara
Chief Manager, General
Administration Group
General Administration
and Personnel Division
Kanden Plant Corp.

Kanden Plant Corp. has put a system in place
to promote compliance. In addition to amessage from top management issued in July
2005, we have adopted a Kansai ElectricPower Group CSR Action Charter, establishedcompliance regulations and policies, createda Compliance Committee, and set up acompliance consultation desk. In addition, we
have taken steps to ensure our employees
carry out their day-to-day duties responsibly,
based on a thorough understanding of theimportance of compliance. These include
implementation of an e-learning program andgroup education sessions, as well as having
all employees carry conduct cards listing thegist of the Kansai Electric Power Group CSR

Action Charter and compliance action
checkpoints. In 2007, we started using the
newly introduced Legal FOCUS system at theKansai Electric Power Group. We are using it
to keep track of revisions to laws relevant to
our work and prevent inadvertent omission oflegally mandated procedures.
In fiscal 2007 we will continue theseactions and, as a company engaged in themaintenance and repair of thermal andnuclear power plants, continue to strictly
comply with applicable laws and regulations,the foundation of our day-to-day businessactivities. We are committed to redoubling
efforts to promote and firmly establish
compliance in all our operations.

Kansai Electric Power Group CSR Report 200740

About the Kansai Electric Power Group
With energy at its core, the Kansai Electric Power Group is aiming to be a “customer satisfaction no. 1 enterprise” in areas
fundamental to people’s lifestyles. To achieve this, we are deepening Group communications and pressing ahead withbusiness activities while making full use of our overall potential.

Energy-related
business

Lifecycle-related
business

Information
Technology
KansaiElectric Power

Group
business
supportOther
businessareas

Company details(Consolidated subsidiaries and companies to which the equity method is applied)
Energy-related businessGroup business support

SAKAI LNG Corp.
Kanden Gas and Cogeneration Co., Inc.
Kanden Energy Development Co., Inc.
Osaka Bioenergy Co., Ltd.
ECHIZEN ENELINE CO., INC.
Two other companies

Kanden Plant Corp.
Kanden Power-Tech Corp.
Nuclear Engineering, Ltd.
Kanden Engineering Corp.
THE GENERAL ENVIRONMENTAL TECHNOS CO., LTD.
NEWJEC INC.
NIHON NETWORK SUPPORT CO., LTD.
ENEGATE Co., Ltd.
The Kanden Services Co., Inc.
The Kanden L & A Co., Ltd.
Institute of Nuclear Safety System, Inc.
The Kurobe Gorge Railway Co., Ltd.
Kanden Business Support Corporation
Akinai Biz Square Corp.
Kanden Office Work Corp.
KINDEN COPRORATION
Nine other companies

Information Technology (IT)K-Opticom Corp.
K Cable Television Corporation
Kansai.com, Inc.
Kanden Systems Solutions Co., Inc.
Five other companies

Lifecycle-related business
KANDEN FUDOSAN CO., LTD.
Clearpass Co., Ltd.
KANDEN Security of Society, Inc.
Kanden E House Corp.
KANSAI Medical Net Co., Inc.
Kansai Jyutaku Hinshitsu Hosho Co., Inc.
Kanden Joy Life Co., Ltd.
Kanden Facility Management Corp.
Kanden CS Forum, Inc.
KANDEN AMENIX Corp.
Three other companies

41(as of March 31, 2007)

Kansai Electric Power Group CSR Report 2007

Other business areas
Kansai Power International Corp.
KANDEN GEO-RE Co., Ltd.
Kansai Power Venture Management Corp.
Kanden L-Heart Co., Inc.
Linecom Co., Inc.
Two other companies

Kansai Electric Power GroupCSR Report 2007
This report is also available on the Internet (http://www.kepco.co.jp/english).
Please direct your opinions and questions about this report to the CSR Promotion Group.
Tel: (06) 7501-0270 (direct)
The Kansai Electric Power Co., Inc.
3-6-16 Nakanoshima, Kita-ku, Osaka 530-8270, Japan
We have undergone inspections by a third-party organizationin order to provide assurance of the objective reliability of theenvironmental information in this report. As a result of these
inspections and fulfilling the Environmental Report Inspection
Registration Mark Allowance Standards of The Japanese
Association of Assurance Organizations for Environmental
Information (http://www.j-aoei.org/), we are allowed to use themark on the left.

This document was printed using
environmentally friendly soy ink.