TEPCO Considers Providing ¥100 Bil. to Niigata Pref. to Benefit Local Community

Yomiuri Shimbun file photo
Kashiwazaki-Kariwa Nuclear Power Station in Kashiwazaki, Niigata Prefecture in April

Tokyo Electric Power Company Holdings, Inc. is considering contributing about ¥100 billion to benefit Niigata Prefecture, home of its Kashiwazaki-Kariwa Nuclear Power Station, according to sources.

The fund is intended to foster local understanding for restarting the plant by supporting the prefecture with new initiatives like decarbonization and digitalization, as well as promoting employment.

Tomoaki Kobayakawa, TEPCO president, is expected to attend the Niigata Prefectural Assembly as early as Thursday to explain the idea. While restarting the plant requires local consent, Niigata Gov. Hideyo Hanazumi has not yet made his stance clear. TEPCO estimates that restarting Unit 6 at the Kashiwazaki-Kariwa station could lead to an improvement in ¥100 billion annual profits.

The cheap electricity generated at the Kashiwazaki-Kariwa station is supplied to the Tokyo metropolitan area and is not used in Niigata Prefecture. Thus, local communities demand economic benefits from the restarting of the plant. An interim report on a public opinion survey regarding the restart showed that opinions in the prefecture were evenly divided. Through the fund, TEPCO aims to demonstrate its contribution to the local community. The details, including the period and method, of the fund are still under consideration.

Meanwhile, Kansai Electric Power Co. announced in August its plan to contribute ¥5 billion annually to municipalities in Fukui Prefecture as a support measure for a nuclear host community. Within TEPCO, proposals below Kansai Electric’s level are seen as difficult to accept, leading to the mulling of another proposal of contributing ¥10 billion annually for 10 years.