Tokyo Electric Power Company facts for kids

Quick facts for kids
Tokyo Electric Power Company Holdings, Incorporated

Headquarters in Chiyoda, Tokyo
Native name	東京電力ホールディングス株式会社
Romanized name	Tōkyō Denryoku Hōrudingusu kabushiki gaisha
Type	Public KK
Traded as	TYO: 9501
Industry	Electric utility
Predecessor	The Tokyo Electric Light Company, Inc. (founded in 1883)
Founded	Tokyo, Japan (May 1, 1951; 73 years ago (1951-05-01))
Headquarters	Chiyoda, Tokyo , Japan
Area served	Tokyo, Kanagawa, Saitama, Chiba, Tochigi, Gunma, Ibaraki, Yamanashi, and east Shizuoka
Key people	Yoshimitsu Kobayashi (Chairman) Tomoaki Kobayakawa (President)
Services	Electric generation, transmission, and distribution
Revenue	¥6,802.5 billion (2015)
Operating income	¥316.5 billion (2015)
Net income	¥451.6 billion (2015)
Total assets	¥14,212.7 billion (2015)
Total equity	¥2,073 billion (2015)
Owner	Government of Japan, through the Nuclear Damage Compensation and Decommissioning Facilitation Corporation (54.74%) TMTBJ investment trusts (6.28%) CBJ investment trusts (1.77%) ESOP (1.50%) Tokyo Metropolitan Government (1.20%) SMBC (1.01%)
Number of employees	37,939 (2022)
Subsidiaries	TEPCO Power Grid TEPCO Fuel & Power TEPCO Energy Partner Tokyo Electric Generation Company

Tokyo Electric Power Company Holdings, Incorporated (Japanese: 東京電力ホールディングス株式会社, Tōkyō Denryoku Hōrudingusu kabushiki gaisha, TEPCO, also known as Tōden (東電) in Japan) is a Japanese electric utility holding company servicing Japan's Kantō region, Yamanashi Prefecture, and the eastern portion of Shizuoka Prefecture. This area includes Tokyo. Its headquarters are located in Uchisaiwaicho, Chiyoda, Tokyo, and international branch offices exist in Washington, D.C., and London. It is a founding member of strategic consortiums related to energy innovation and research; such as JINED, INCJ and MAI.

In 2007, TEPCO was forced to shut the Kashiwazaki-Kariwa Nuclear Power Plant after the Niigata-Chuetsu-Oki earthquake. That year, it posted its first loss in 28 years. Corporate losses continued until the plant reopened in 2009. Following the 2011 Tōhoku earthquake and tsunami, one of its power plants was the site of one of the world's most serious ongoing nuclear disasters, the Fukushima Daiichi nuclear disaster. TEPCO could face ¥2 trillion (US$23.6 billion) in special losses in the current business year to March 2012, and the Japanese government plans to put TEPCO under effective state control to guarantee compensation payments to the people affected by the accident. The Fukushima disaster displaced 50,000 households in the evacuation zone because of leaks of radioactive materials into the air, soil and sea.

In July 2012, TEPCO received ¥1 trillion (US$12 billion) from the Japanese government in order to prevent collapse of the company to ensure electricity is still being supplied to Tokyo and its surrounding municipalities, and decommission the Fukushima Daiichi Nuclear Power Plant. TEPCO's management subsequently made a proposal to its shareholders for the company to be part-nationalized. The Nuclear Damage Compensation and Decommissioning Facilitation Corporation later became the majority stockholder to oversee the damages and decommissioning of the power plant. The total cost of the disaster was estimated at $100 billion in May 2012.

History

TEPCO logo, in use from 1987 to March 2016

Japan's electricity sector, nationalized in 1939 in preparation of total war (the Pacific War), were privatized in 1951 on behest of the U.S./Allied occupation forces, creating nine privately owned government-granted monopolies, one in a certain region; this included TEPCO. Tokyo Electric Power Co., Inc. was established by reorganizing Kanto Haiden and Nippon Shuden, which were established through wartime integration.

In the 1950s, the company's primary goal was to facilitate a rapid recovery from the infrastructure devastation of World War II. After the recovery period, the company had to expand its supply capacity to catch up with the country's rapid economic growth by developing fossil fuel power plants and a more efficient transmission network.

In the 1960s and 1970s, the company faced the challenges of increased environmental pollution and oil shocks. TEPCO began addressing environmental concerns through expansion of its LNG fueled power plant network as well as greater reliance on nuclear power generation. The first nuclear unit at the Fukushima Dai-ichi (Fukushima I) nuclear power plant began operational generation on March 26, 1971.

During the 1980s and 1990s, the widespread use of air-conditioners and IT/OA appliances resulted a gap between day and night electricity demand. In order to reduce surplus generation capacity and increase capacity utilization, TEPCO developed pumped storage hydroelectric power plants and promoted thermal storage units.

Recently, TEPCO is expected to play a key role in achieving Japan's targets for reduced carbon dioxide emissions under the Kyoto Protocol. It also faces difficulties related to the trend towards deregulation in Japan's electric industry as well as low power demand growth. In light of these circumstances, TEPCO launched an extensive sales promotion campaign called 'Switch!', promoting all-electric housing in order to both achieve the more efficient use of its generation capacity as well as erode the market share of gas companies.

Major subsidiaries

As Tokyo Electric Power Company Holdings, Inc. is a holding company, there are several major wholly owned subsidiaries.

• TEPCO Power Grid – Responsible for managing power grid around Kantō region and transmits and distributes electricity between electricity wholesaler and retailer.
• TEPCO Energy Partner – Electricity retailer operating under "TEPCO" brand throughout Japan, except Okinawa.
• TEPCO Fuel & Power – Operates fossil fuel power stations mainly for TEPCO Energy Partner.
• Tokyo Electric Generation Company – Generates wholesale electricity for electricity market.
• Tokyo Electric Power Services Co. Ltd (TEPSCO) – Provides consulting services for electric power industry.

Corporate overview

• Capital stock: ¥676,424,197,050
• Total outstanding shares: 1,352,876,531
• Number of shareholders: 821,841
• Electricity sales (FY 2004): 92,592 million kWh (lighting), 194,148 million kWh (power), 286,741 million kWh (total)
• Peak demand: 64.3 million kW (July 24, 2001)
• Number of customers (ending March 31, 2005): 25,120,000 / 83.89 million kW (lighting), 2,630,000 thousand / 39.75 million kWh (power), 27,740,000 / 123.64 million kW (total)
• Revenue from electricity sales: ¥4,637.2 billion yen (FY 2004)

Community compensation

Tokyo Electric Power could face 2 trillion yen ($23.6 bln) in special losses in the current business year to March 2012 to compensate communities near its crippled Fukushima nuclear plant, according to JP Morgan.

Japan plans to put TEPCO under effective state control so it can meet its compensation payments to people affected by radiation from its Fukushima I plant. Tokyo will set aside several trillion yen in public funds that TEPCO can "dip into if it runs short for payouts to people affected".

Salary pay cuts

The company workers agreed to a management proposal to cut their pay as a sense of responsibility for the world's worst nuclear disaster. Annual remuneration for board members would be reduced by 50 percent since April 2011, while payment for managers would be cut by 25 percent and workers by 20 percent both since July 2011 and bonuses since June 2011. The company expects to save about 54 billion yen ($659 million) a year from the pay cuts.

In July 2012 it was announced that annual salaries of managers would be reduced by at least 30%, with workers pay cut remaining at 20%. On average employees pay would be cut by 23.68%. In addition, the portion of the employee health insurance program that the company covers would be reduced from 60% to 50%, the standard in Japan.

Power stations and generation capacity

• Hydro: 160 / 8,521.0 MW
• Thermal (oil, coal, LN(P)G, geothermal): 26 / 36,995.0 MW
• Nuclear: 3 / 17,308.0 MW
• Wind: 1 / 1.0 MW
• Total: 190 / 62,825.0 MW

Position in the industry

TEPCO is the largest electric utility in Japan and the 4th largest electric utility in the world after German RWE, French Électricité de France and Germany's E.ON. As TEPCO stands in a leading position in this industry, they have relatively a strong effect for Japanese economics, environment, and energy industry.

Management and finance

For the fiscal years ending in 2011, 2012 the company had a pretax loss, in 2013 the deficit was 377.6 billion yen. In the following year 2014 red figures were expected too.

Generation

The company's power generation consists of two main networks. Fossil fuel power plants around Tokyo Bay are used for peak load supply and nuclear reactors in Fukushima and Niigata Prefecture provide base load supply. Additionally, hydroelectric plants in the mountainous areas outside the Kanto Plain, despite their relatively small capacity compared to fossil fuel and nuclear generation, remain important in providing peak load supply. The company also purchases electricity from other regional or wholesale electric power companies like Tohoku Electric Power, J-POWER, and Japan Atomic Power Company.

Transmission and distribution

The company has built a radiated and circular grid between power plants and urban/industrial demand areas. Each transmission line is designed to transmit electricity at high-voltage (66-500kV) between power plants and substations. Normally transmission lines are strung between towers, but within the Tokyo metropolitan area high-voltage lines are located underground.

From substations, electricity is transmitted via the distribution grid at low-voltage (22-66kV). For high-voltage supply to large buildings and factories, distribution lines are directly connected to customers' electricity systems. In this case, customers must purchase and set up transformers and other equipment to run electric appliances. For low voltage supply to houses and small shops, distribution lines are first connected to the company's transformers (seen on utility poles and utility boxes), converted to 100/200V, and finally connected to end users.

Under normal conditions, TEPCO's transmission and distribution infrastructure is notable as one of the most reliable electricity networks in the world. Blackout frequency and average recovery time compares favorably with other electric companies in Japan as well as within other developed countries. The company instituted its first-ever rolling blackouts following the shutdown of the Fukushima I and II plants which were close to the epicenter of the March 2011 earthquake. For example, on the morning of Tuesday, March 15, 2011, 700,000 households had no power for three hours. The company had to deal with a 10 million kW gap between demand and production on March 14, 2011.

Offices

Power plants

Nuclear

In March 2008, Tokyo Electric announced that the start of operation of four new nuclear power reactors would be postponed by one year due to the incorporation of new earthquake resistance assessments. Units 7 and 8 of the Fukushima Daiichi plant would now enter commercial operation in October 2014 and October 2015, respectively. However, following the nuclear crisis of 2011, these plans have been cancelled. According to TEPCO's official regulatory paper, starting operation of Higashidori is expressed as 'Not yet determined'.

Fossil fuel

Hydro

TEPCO has a total of 160 hydroelectric stations with a total capacity of 8,520 MW. The largest pumped-storage plants are:

• Nagawado Dam (623 MW)
• Shin-Takasegawa Pumped Storage Station (1,280 MW)
• Tamahara Pumped Storage Power Station (1,200 MW)
• Shiobara Pumped Storage Plant (900 MW)
• Imaichi Pumped Storage Plant (1,050 MW)
• Kazunogawa Pumped Storage Power Station (800 MW)
• Kannagawa Hydropower Plant (2,820 MW)

Electric vehicle batteries and recharging

Under the lead of an organization affiliated with the Ministry of Economy, Trade and Industry, the Tokyo Electric Power Company is working out next-gen car battery norms. It has developed a specification for high-voltage DC automotive fast charging using a JARI Level 3 DC connector, and formed the CHΛdeMO (stands for Charge and Move) association with Japanese automakers Mitsubishi, Nissan and Subaru to promote it.

The city of Tokyo: second largest shareholder

On 11 April 2012 TEPCO announced that Tokyo had temporarily become the largest shareholder of the firm with 9.37 percent voting rights, after former largest share holders Dai-ichi Life Nippon Life Insurance Co. and Nippon Life Insurance Co. had sold their 3.42 and 3.29 percent stakes in the company. The two life insurance companies had lost their interest in TEPCO after the shares had lost almost all their value at the stock market. At the next shareholders meeting of TEPCO in June 2012, Tokyo hoped to put a halt to TEPCO's plans raising the price of electricity. This position was changed by later ownership changes.

TEPCO to cancel nuclear promotion abroad

Early June 2012 TEPCO announced that it would cancel all export of nuclear expertise abroad, because it needed to focus on the stabilisation of the damaged reactors in Fukushima. All participation in a program to supply and run two nuclear reactors at a plant in Vietnam would be cancelled. This project undertaken by International Nuclear Energy Development, a public company set up in 2010 by heavy machinery producers and power companies, including TEPCO, aims to promote Japanese nuclear expertise and exports. According to Naomi Hirose, director of TEPCO, "Our atomic power engineers still need to do a lot more to stabilise and decommission the reactors" at the crippled Fukushima Daiichi plant, and: "It is impossible" to abandon the domestic task and promote exports.

See also

In Spanish: Tokyo Electric Power Company para niños

• Denko-chan (でんこちゃん), recently discontinued mascot character, designed by manga artist Shungicu Uchida
• Masataka Shimizu, TEPCO president during the March 11th 2011 disaster
• CHAdeMO, electric vehicle standard
• EcoCute
• Nuclear power in Japan
• International Nuclear Energy Development of Japan Co., Ltd (JINED)
• Innovation Network Corporation of Japan (INCJ)
• Radiation effects from Fukushima Daiichi nuclear disaster
• Subaru R1e
• Masao Yoshida (nuclear engineer)
• Shunichi Yamashita, physician in radiation sickness field
• Murder of Yasuko Watanabe (familiarly known as "TEPCO OL murder case" in Japan)
• Fukushima 50, name for workers remaining on site of the Fukushima Daiichi nuclear disaster