Kansai Electric Power Co. will scrap the No. 1 and No. 2 reactors at its Oi plant in Fukui Prefecture, citing cost concerns about extending the 40-year-old reactors for another two decades, according to media reports.

Kepco said in a statement Wednesday that the utility has yet to make any formal announcement.

But the decision is expected to be officially endorsed by Kepco's board of directors Friday, as the utility will face massive refurbishing costs if it seeks the extension, according to reports by several media outlets including Kyodo News.