Chubu Electric to suffer operating loss in 2011

Fallout from Hamaoka shutdown, fossil fuel purchases

Kyodo

Chubu Electric Power Co. is expected to incur a roughly ¥100 billion consolidated operating loss for the current business year as the shutdown of its Hamaoka nuclear plant has led to heavier fuel costs for thermal power generation, sources said Tuesday.

It would be the utility’s first operating loss since it was founded in 1951.

The firm, based in Nagoe_SDHpya, will announce its earnings outlook Thursday.

Chubu Electric shut down the Hamaoka nuclear plant in Omaezaki, Shizuoka Prefecture, in May as ordered by Prime Minister Naoto Kan amid the crisis at the Fukushima No. 1 nuclear plant.

The Hamaoka plant sits in an area that is at great risk of being hit by a major temblor.

In April, the utility had projected ¥130 billion in consolidated operating profit for fiscal 2011 ending next March, but on May 9 when the utility ordered the plant’s shutdown, it withdrew the projection and said its earnings projection was still undecided.

Chubu Electric expects its costs to rise by about ¥250 billion a year due to the additional need to procure fuel for thermal power generation.