Kyushu Electric Power is planning to slash its outlays by ¥120 billion

Kyodo

Kyushu Electric Power Co. says it will cut about ¥120 billion in investments and expenses in fiscal 2012 in the face of expected cost increases for fuel purchases, nuclear safety measures and borrowing.

The utility said Wednesday that capital investment will be cut or deferred by ¥65 billion, while outlays for renovation, executive pay and other expenses will be trimmed by ¥55 billion.

Executive Vice President Michiaki Uriu, who will be promoted to president on Sunday when the new business year begins, said the utility isn’t planning to raise electricity rates for now but added, “We may have to consider hiking the rate if nuclear power will never be used again.”

Uriu said he can’t foresee when Kyushu Electric’s two nuclear power plants will be able to restart operations, adding that the utility will decide by the end of May whether it needs to make official requests to its customers to conserve electricity this summer.

The four reactors at its Genkai power plant and two reactors at its Sendai facility are currently undergoing regular maintenance and inspections.