Energy in
balance
Kyushu Electric Power Company Annual Report 2010
Seeking sustainable solutions for our region, industry and world
Our company----Financial Highlights
Operating Revenues Revenue Share by Segment
Segment Information (before eliminating internal transactions)
*1 Shareholders’ Equity = Equity - Minority Interests
*2 ROA = After-tax Operating Income/Average Total Assets at beginning and ending of the Fiscal Year
*3 ROE = Net Income/Average Equity at beginning and ending of the Fiscal Year*4 The figures under one billion are rounded down.
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.04=U.S.1,ドル the approximate rate of exchange at March 31, 2010.)
Electric Power82%Energy-related Business10%Other2%IT and Telecommunications6%Operating
Revenues
(2010)
1,601円.6
billion
billion
(Millions of U.S. Dollars)
For the year (Billions of Yen) 2010 2009 2008 2007 2006 2010
Operating Revenues \ 1,444.9 \ 1,524.1 \ 1,482.3 \ 1,408.3 \ 1,401.7 $ 15,530
Operating Income 99.7 84.7 105.5 155.1 171.2 1,071
Net Income 41.8 33.9 41.7 65.9 76.8 449
Electricity Sales Volume (Millions of kWh) 83,392 85,883 88,082 84,399 82,956
General Demand (Millions of kWh) 60,985 61,859 62,873 60,706 60,765
Large Industrial (Millions of kWh) 22,407 24,024 25,209 23,693 22,191
At year-end (Billions of Yen)
Total Assets 4,054.1 4,110.8 4,059.7 4,038.8 4,102.3 43,574
Shareholders’ Equity*1
1,071.7 1,054.7 1,067.0 1,081.6 1,052.7 11,519
Interest-bearing Debt 2,004.7 2,110.6 2,040.0 2,031.7 2,104.9 21,547
Per share of common stock
Net Income (yen and U.S. dollars) 88.38 71.84 88.19 139.37 161.67 0.95
Cash Dividends (yen and U.S. dollars) 60.00 60.00 60.00 60.00 60.00 0.64
Financial ratios (%)
ROA*2
1.6 1.3 1.7 2.4 2.7
ROE*3
3.9 3.2 3.9 6.2 7.6
Equity Ratio 26.4 25.7 26.3 26.8 25.7
Consolidated Financial Summary
Years Ended March 3120062010
1,601円.6billion
1,675円.1billion
1,625円.9billion
1,532円.1billion
1,540円.8billion200920082007Other 26円.5 billion
IT and Telecommunications 99円.1 billion
Energy-related Business 163円.8 billion
Electric Power 1,312円.1 billion1Operating Revenues Operating Income Net Income
Earnings per Share (EPS) Return on Assets (ROA)
Interest-bearing Debt Shareholders’ Equity/Equity Ratio Debt/Equity Ratio
Return on Equity (ROE)
’06 ’07 ’08 ’09
171.2
155.1
105.584.7250
(Billions of Yen)50100150200
’1099.7’06 ’07 ’08 ’0976.865.941.733.9100(Billions of Yen)20406080
’1041.8’06 ’07 ’08 ’09
1,401.7
1,408.3
1,482.3
1,524.1
’10
1,444.9
2,000
(Billions of Yen)5001,000
1,500
’06 ’07 ’08 ’097.66.23.93.2
’103.910(%)2468’06 ’07 ’08 ’092.72.41.71.35(%)1234
’101.6’06 ’07 ’08 ’09
161.67
139.37
88.19
71.84
’10
88.38200(Yen)50100150’06 ’07 ’08 ’09
1,052.7
1,081.6
1,067.0
1,054.725.726.826.325.7
1,200
1,000
(Billions of Yen)200400600800(%)’10
1,071.726.4201030405060’06 ’07 ’08 ’09
199.94
187.84
191.19
200.11300(%)50150100200250’10
187.05
’06 ’07 ’08 ’09
2,104.9
2,031.7
2,040.0
2,110.6
2,500
(Billions of Yen)5001,000
1,500
2,000
’10
2,004.7
CONTENTS
ANNUAL
REPORT 2010
Cover picture: Construction work scenery of our investing project, Inner Mongolia Wind Power Project in China
Disclaimer Regarding
Forward-looking Statements:
Statements made in this annual report
regarding Kyushu Electric Power Group’s
strategies and forecasts and other state-
ments that are not historical facts are
forward-looking statements based on
management’s assumptions and beliefs
in light of information currently avail-
able, and should not be interpreted as
promises or guarantees. Owing to vari-
ous uncertainties, actual results may
differ materially from these statements.
Investors are hereby cautioned against
making investment decisions solely on
the basis of forward-looking statements
contained herein.
01 06 Our company --- Market Optimized
Kyushu Electric Power’s Mission Enlighten Our Future
01 Financial Highlights
03 Kyushu Electric Power Group’s Principal Activities
05 Development around the Kyushu Region
07 19 Our strategy --- Power for the Long Run
Challenges That Lie Ahead
07 Long-term Management Vision and Medium-term Management Policy
09 To Our Shareholders and Investors
11 An Interview with the President
18 Response to Key Management Issues
20 31 Our operations --- Customer Connected
Creating Sustainable Corporate Value
Special Feature: Leveraging Our Strengths in Strategic Actions for the Future
21 Developing Nuclear Power and Maintaining a High Nuclear Power Utilization Rate
23 Promoting Renewable Energy to Address Global Environmental Problems
25 Overseas Operations Focused on the Continuously Growing Asia Region
27 Environment-friendly Energy Business: Energy Business in Kyushu
30 Environment-friendly Energy Business: Energy Business Overseas
31 Social/Lifestyle-oriented Service
32 37 Our structure --- Management Connected
Building Management Infrastructure
33 Corporate Governance
34 Board of Directors and Auditors
35 Corporate Social Responsibility
36 Compliance Management
37 Environmental Management
38 70 FINANCIAL INFORMATION
71 Outline of Kyushu Electric Power’s History
72 Corporate DataOurCOMPANY
The Kyushu Electric Power Group provides steady and reliable
environment-friendly electricity and energy for our customers and
businesses that contribute to the creation of a sustainable society.
Towards a comfortable and environment-
friendly lifestyle today and for generations to come.
Since its establishment in 1951, the mission of the Kyushu Electric Power
Company has been to assure quality and comfort in life for customers and
their local communities by providing a stable supply of electricity. We have
weathered many changes, including post-war reconstruction and subsequent
high economic growth, the oil shocks of the 1970s, the development of high-
speed information systems and the recent deregulation of the electric power
industry. In the decades to come, we will continue to fulfill our social
responsibility through the discharge of our mission.
Enlighten Our Future
Market Optimized2OUR COMPANY----Kyushu Electric Power Group’s Principal Activities3Electric power business
In addition to providing a stable supply of electricity, Kyushu Electric
Power Company offers corporate customers comprehensive energy
proposals that combine environment friendliness with comfort to meet
diverse needs. For our residential customers, we promote all-electric
housing, focusing on the highly energy efficient EcoCute system, and
provide a mobile phone messaging service that delivers power outage
notifications and emergency information at the time of disaster.
Close to customers in a
variety of life activities
The core business of the Kyushu Electric Power Group is the Environment-
friendly Energy Business, which provides a stable supply of renewable and low-
carbon electric power and energy while addressing global environmental
problems. In the Social/Lifestyle-oriented Service, we assist customers in their
daily tasks, with an IT and telecommunication business that utilizes our
corporate resources, an environment and recycling business that supports the
creation of a recycling-based society and a lifestyle-oriented services business
adapted to the needs of the customers and communities we serve. In this
business we are committed to providing services that further increase the quality
of society and the quality of life.
Fluorescent tube and battery
recycling business
J-Re-Lights Co., Ltd. manufactures (OEM basis) and sells Japan’s
first fluorescent tubes produced using recycled materials such as
glass and metals.
Erasure of information on confidential
documents and paper recycling
Kyushu Environmental Management Corporation provides an
end-to-end document management service by operating a
secure closed-loop recycling system for turning confidential
documents back into new photocopier paper.
Condominiums for senior citizens
Kyuden Good Life Company, Inc. operates condominiums for senior
citizens that offer full-featured medical support for highly fulfilling,
convenient post-retirement living.
Temporary staffing and
job placement services
Kyuden Business Front Inc. elicits the
maximum potential from workers and
supports the HR strategies of companies
through its temporary staffing and job
placement business.
Energy-related
Business
Electricity
Business
IT and Telecommunication
Business
Environment/Recycling
Business
Lifestyle-oriented Services
Business
Environment-friendly Energy Business P.21-30
Social/Lifestyle-oriented Service P.313We at all times provide steady and reliable
electricity and energy to our customers and contribute to the
creation of a comfortable, environment friendly and
sustainable society through the provision of services that
increase the quality of society and the quality of life.4EcoCUTE
IH cooking heater
Kyuhen Co., Ltd. manufactures
and sells all-electric products,
including a high-efficiency heat
pump water heater "EcoCute" that
effectively uses heat from the air,
and an induction cooker "IH
cooking heater" that can cook
quickly and efficiently without
using fire.
Optical broadband service
The BBIQ optical broadband service operated
by Kyushu Telecommunication Network Co.,
Inc. (QTNet) includes reliable Internet and
optical fiber telephone services as well as
optical fiber television service in urban areas of
Fukuoka and Kagoshima.
Reliable network solutions
The Megakiku information
network solution
At Nishimu Electronics Industries
Co., Ltd. IT specialists provide the
Megakiku solution for optimizing
corporate networks, including LAN
services and image monitoring
services.
Fast-charging system for electric vehicles
Kyuki Corporation promotes the use of eco-friendly electric vehicles by manufacturing and
selling a fast-charging system for electric cars that it developed jointly with the Company.
Kyushu Electric Power Group Management Basic Policy
Fundamental principle
Solar power generation
Kyudenko Corporation and Kyuki Corporation supply individual customers with residential
solar power generation systems. Kyuden Ecosol Co., Ltd. and Nishinippon Plant
Engineering and Construction Co., Ltd. supply corporate customers with solar power
generation systems for office buildings, plants and other structures.4Hanoi
Ulan Bato
VientianeRTHAILAND
CHINA
MONGOLIALAOSUntil the 1980s, manufacturing in the
Kyushu Region consisted mainly of heavy
industries such as iron and steel,
chemicals, cement and shipbuilding. Today,
however, Kyushu is increasingly the
location of choice for semiconductor and
automobile plants. Kyushu accounts for
approximately 20% of Japan’s
semiconductor output and 10% of
automobile output. The concentration of
production sites in these industries has
reached the point where Kyushu is often
called "Silicon Island" or "Car Island."
Furthermore, thanks to the concentration of
semiconductor-related industries, a number
of manufacturing plants for next-generation
solar cells, such as thin film solar cells, are
being located in Kyushu. Increased
production of these solar cells is planned in
response to worldwide market expansion,
and annual production capacity is expected
to increase approximately sevenfold from
the current level of 210,000 kilowatts to
1,430,000 kilowatts by around 2012.
Demand for electric power is forecast to
steadily increase bolstered by additional
industrial concentration in the region.
Number of Automobile
Production in Kyushu
Gross Domestic Product of the
Kyushu Region
(Worldwide comparison)
■しかく Vehicle production ■しかく Nationwide share02005 2006 2007 2008 200990101106113860510152020406080100120(%)(Billions of U.S. Dollars)
8.4 8.8 9.1 9.810.8427
Switzerland
Poland
Kyushu
Norway
Taiwan
Austria425394388385371(10 thousands)
Still growing with the
region and society
The Kyushu Region, our primary business area, is closer than any other region
to the Asian continent and has long been a gateway to the countries of Asia.
The people of Kyushu have leveraged this advantageous geography in
developing their industry and economy. The Kyushu Electric Power Group has
continued to support the growth of the region and its communities by constantly
providing a stable supply of electricity and energy.
OUR COMPANY----Development around the Kyushu Region02005 2006 2007 2008 200990101106113860510152020406080100120(%)8.4 8.8 9.1 9.810.8(10 thousands)
The Kyushu Region is home to many industries, including
semiconductor and automobile production, and the region’s gross
domestic product is equivalent to that of a medium-size European
country. The Company is achieving stable growth with the Kyushu
Region as its base of operations.
Earnings Stability:
Principal Advantages of the Kyushu
Region, the Group’s Principal
Business Territory5Tokyo
Nakhodka
Vladivostok
Nagoya
Osaka
Kyushu
Seoul
Pusan
Incheon
Hong Kong
Beijing Dalian
Tsingtao
Nanjing
Taipei
Shanghai
GuangzhouorRUSSIA
JAPAN
KOREA
750km
500km
1000km
1250km
The Yellow Sea connects Kyushu with the
coastal regions of rapidly growing China
and South Korea in what is known as the
Yellow Sea Rim Economic Zone. This area
has a population comparable to that of the
European Union and enjoys flourishing
trade, and further growth is expected in the
coming years. At the same time, Kyushu is
located within 1,000 kilometers of Osaka,
Tokyo and other major cities in Japan. The
Group takes advantage of Kyushu’s
fortuitous location at the center of a highly
attractive market to do business overseas,
with a focus on Asia.
The Group takes advantage of the Kyushu Region’s brisk economic exchange
with Asian countries to actively engage in businesses overseas.
For Future Growth:
Exchanges with Asia and Other
Overseas Regions
Diversity of Power Supply:
An Optimal Mix of Environment-
friendly Power Sources
Today, assuring energy security amid global energy
supply instabilities and reducing emissions of CO2
and other greenhouse gases to combat global
warming have become pressing and permanent
tasks. To secure a long-term stable supply of energy
and promote the government’s aim of making Japan
a low-carbon society, the Company promotes
nuclear power and actively introduces solar, wind
and other forms of renewable energy.
The Company has positioned nuclear power as a core power source for securing a
long-term stable supply of energy and realizing the government’s goal of a low-
carbon society and is pursuing balanced power source development involving the
promotion of renewable energy sources and improvement in thermal power
efficiency.
Composition of power output at
Kyushu Electric Power(%)All of Japan
■しかく Oil, etc. ■しかく LNG ■しかく Coal
■しかく New energy/Geothermal ■しかく Hydro ■しかく Nuclear
Kyushu
0 20 40 60 80 100
5 18 27 3 5 42
8 29 25 1 8 29
Chugoku Electric Power Co., Inc.
Shin Kokura
Sasuna
Toyotama
Izuhara
Matsuura
Goto Archipelago
Explanatory notes
Hydroelectric power station
(more than 50 thousands kw)
Pumped storage power station
Thermal power station
Nuclear power station
Geothermal power station
Inner thermal power station
Wind power stations
Main substation, switchyard
500 kV power line
220 kV power line
Other company’s equipment
The figure of facilities show output (kW)
Fukue Daini
Genkai NPS
AinouraUkuShin Arikawa
Reihoku Ohira
Sendai
Sendai NPS
Noma-misaki
Yamagawa
Takeshima
Yakushima
Tanegashima
Takeshima Daiichi
Shin Tanegashima
Ioujima
Kuchierabujima
Kuroshima
Koshikijima
Koshikijima
Koshikijima Daiichi
Karatsu
Tenzan
Tsushima
Asibe
Iki shinIki
Oronoshima
Karita
Buzen
Yanagimata Takigami
Otake
Matsubara
Hatchoubaru
Hatchoubaru binary
Iwayado
Kamishiiba
Ogiri
Tsukabaru
Morotsuka
Omarugawa
Hitotsuse
Oyodogawa Daini
Oyodogawa DaiichiOitaShinOita
Kuchinoshima
Tairajima
Akusekijima
Kodakarajima
Takarajima
TatsugoNazeAmamioshima
Nakanoshima
Tokara Islands
Kikaijima
Kikai
Koniya
Shin Tokunoshima
Hetono
Kametsu
Amami Islands
Okierabujima
Shin China
Tokunoshima
Yorontou
Shin Yoronrontou
Yoron
Shin Kikai
Suwanosejima
(as of March 31, 2010)(%)All of Japan
■しかく Oil, etc. ■しかく LNG ■しかく Coal
■しかく New energy/Geothermal ■しかく Hydro ■しかく Nuclear
Kyushu
0 20 40 60 80 100
5 18 27 3 5 42
8 29 25 1 8 29
Import and Export
Value in Kyushu
■しかく Export value ■しかく Import value
■しかく Nationwide share (Export)
■しかく Nationwide share (Import)20052004 2006 2007 20084.57.37.47.48.08.5 8.89.47.4 7.7 8.03.64.55.76.47.54.85.66.5 6.5
(Trillion of yen) (%)02468100510156Many issues, such as rising uncertainty
in the economic outlook, growing
worldwide energy demand, dwindling
energy resources and the increased
urgency of global environmental
problems, are each likely to bring
dramatic and rapid change in the
business environment. Yet, in the electric
power business, extremely long periods
of time are required for the development
and maintenance of facilities. For
example, the construction of major
power sources and trunk transmission
system infrastructure take from 20 to 30
years. In addition, the development of
personnel and organizational systems,
the establishment of business operation
systems and technical succession all
unfold over decades. In view of the
extremely long business cycle that is
characteristic of the electric power
business, in March 2009 the Company
established the Long-term Management
Vision, our first in a quarter century. In
the Long-term Management Vision, we
define three management directions
grounded in a long-term perspective. By
implementing measures in line with those
directions, we will achieve Kyushu
Electric Power’s Mission as expressed in
the brand message "Enlighten Our
Future."
Grounded in a Long-term PerspectiveOURSTRATEGY
Even in times of sweeping change, Kyushu Electric Power seeks to realize its mission and contribute each day to
comfortable, environment-friendly living for our customers through the stable provision of electric power and
energy. To consistently overcome the difficult challenges this mission entails, the Company has defined an overall
management direction in the Long-term Management Vision. The Medium-term Management Policy directly
addresses key issues and assures coordinated implementation by establishing the direction for the specific
measures required to achieve the management vision.
Management from a Long-term Perspective to
Realize Kyushu Electric Power’s Mission
Management Vision
01 02 03
Even amid sweeping change
in the energy situation, we
will provide a stable supply of
environment-friendly energy.
We will create an organization
in which each employee can
obtain job satisfaction and
grow through work.
We will think and act together
with customers and local
communities to create a
sustainable society.
Power for the long run7Medium-term Management Policy
Items for Immediate Implementation
1. Measures to ensure the stable supply of electric power for the future and a
response to global environmental problems
2. The provision of high-value-added services that combine comfort with
environmental friendliness
3. Contribution to the creation of sustainable societies in Kyushu, in Asia,
and around the world
4. Measures to develop an income and expenditure structure adaptable to
changes in circumstances
5. Work style reform and organizational development in response to
next-generation needs8The Company has established the new
Medium-term Management Policy,
covering the three-year period from
fiscal 2009 to 2011, which sets forth the
direction for specific policies and
measures in accordance with the Long-
term Management Vision. There are
three key objectives in the policy. The
first is to engage in activities from a
long-term perspective. For example, we
are responding appropriately to severe
income and expenditure conditions, such
as unstable fuel prices and the slow
recovery of business conditions. We are
also addressing essential tasks involving
nuclear power, sustainable energy and
energy conservation, and we are
addressing long-term trends in the social
environment. These are "tasks that must
be undertaken now, before it’s too late."
The second key objective is to make
environment-friendly energy a core
business. The increased importance of
energy security and global environmental
problems signal a potential for a shift to
electric power from other energy
sources for greater environmental
friendliness and economics. Therefore,
we are aggressively repositioning the
environment-friendly energy business as
a core business on the basis of
technologies and expertise developed
heretofore.
Finally, the third key objective is to
prepare ourselves to tackle the long-term
issues identified under the "five pillars."
During the three years of the plan, we
are organizing the management issues to
be addressed from a long-term
perspective, positioning initiatives to
address these issues as management
objectives to be shared with
stakeholders within and beyond the
Group and implementing those
initiatives.
Synergy Effect with
Domestic Business
Business
development
based on social
meanings,
synergy effect
with domestic
business and risk/
profitability evaluation
Social/Lifestyle-oriented Service
Environment-friendly Energy Business
(Core Business)IT/Telecommunication
Business development based on social
meanings, synergy effect with core
business and risk/profitability evaluation
Synergy Effect with Core Business
Environment/
Recycling
Lifestyle oriented
Service
Energy Business
Overseas
・Renewable energy power generation
・Energy-saving/
environmental consulting
・IPP business
・Interests on fuel and CO2
credits acquisition
Energy Business in
Kyushu
・New energy power generation
・Solution marketing to fulfill customers' needs
・Gas business
Electricity Business
・Promotion of nuclear power
・Development / introduction of
renewable energy
・Energy efficiency improvement
・both on demand/supply sides
Business Domain
The Five Pillars of
Key Initiatives88
To satisfy everyone whose life is touched by the business activities of the Kyushu Electric
Power Group, we aim for a sustained increase in corporate value by appropriately
responding to major change and managing our business as a responsible global citizen.
Our strategy----To Our Shareholders and Investors
The Basic Corporate Stance
The unchanging goal of our business
activities is to achieve Kyushu Electric
Power’s Mission as expressed in the brand
message "Enlighten Our Future."
Despite encouraging signs of an
economic upturn, the business
environment surrounding the Group
remains fraught with uncertainties,
including concerns about the impact of
deflation and worsening of the
employment situation. Also, the long-term
business environment is likely to undergo
further sweeping changes, such as
difficulty in securing resources due to
expansion of energy demand attendant on
worldwide population increase and
economic growth in developing countries
and the increased importance of global
environmental problems. While
appropriately coping with this sweeping
change in the times, we will engage in
management grounded in CSR and create
sustained value for everyone involved in
the Company’s business activities.9Providing Value to Stakeholders
In the Long-term Management Vision,
we consider societal needs that will arise
from changes in the economy and society
over a long-term span of 30 years. Our aim
is to provide continuous and socially
significant value.
Specifically, we will position nuclear
power as a core power source for ensuring
a long-term, stable supply of energy and
realizing the government’s goal of a low-
carbon society. We will also provide
customers with a stable supply of
environment-friendly energy through
supply-side and demand-side energy
efficiency improvements through nuclear
power generation and renewable energy
sources, improvement in the thermal
efficiency of thermal power generation and
promotion of energy conservation by
customers.
We believe that by providing the desired
value to society, we create value for all
stakeholders on a sustained basis.
Achieving a Sustained Increase in
Corporate Value Group-wide
To realize the business objectives set forth
in the Long-term Management Vision,
which defines the long-term management
direction, the Company implements
activities based on the Medium-term
Management Policy. We have also
established the Kyushu Electric Power
Group Management Basic Policy and
engage in united group-wide management.
Our basic management principle is "We at
all times provide steady and reliable
electricity and energy to our customers
and contribute to the creation of a
comfortable, environment-friendly and
sustainable society through the provision
of services that increase the quality of
society and the quality of life."
The Kyushu Electric Power Group is
committed to achieving a sustained
increase in corporate value by steadily
implementing the activities set forth in the
management vision and management
policy, including the stabilization of
businesses to provide a long-term reliable
supply of electricity and energy, the
Group’s mission and earning the trust of
local communities through CSR activities
grounded in the public good. We request
the continuing understanding and support
of our shareholders and investors in the
years ahead.OURVISION
Chairperson: Shingo Matsuo President: Toshio Manabe
THE CREATION OF SUSTAINED CORPORATE VALUE
Customer
Satisfaction
• The stable supply of environment-friendly energy
• 
Realization of competitive energy prices through means including rigorous
management efficiency
• 
Lifestyle proposals and service provision that combine comfort with
environmental friendliness
Contribution to a
Sustainable Society
• CO2 emissions reduction
• Contribution to the creation of sustainable communities
• 
Contribution to the creation of sustainable societies in Asia and around
the world through the utilization of energy and environmental technologies
and expertise
Co-creation with
Business Partners
• Building relationships of mutual trust, cooperation and joint creation of value
Employee Job
Satisfaction and
Growth
• Job satisfaction and growth
• Improvement of work-life balance
Financial
Results
• 
Achieved through the provision of value to customers, local communities and
society at large10Our strategy---- An Interview with the PresidentOURMANAGEMENT
We are addressing key issues to ensure that every day
we provide reliable electric power and energy for the comfortable,
environment-friendly living for our customers.
The Medium-term Management Policy covers the period from fiscal 2009 to fiscal 2011.
It describes key initiatives of immediate focus, including the promotion of nuclear power,
expanded introduction of renewable energy and promotion of energy conservation. We aim to
create sustained value for everyone affected by the Company’s business activities by engaging in
management grounded in CSR to address issues identified under the five pillars of key initiatives,
which we have set forth as our management objectives.11A. In fiscal 2009, economic conditions in Japan remained
adverse, due to continued stagnation in capital investment and
employment. However, due to economic stimulus measures and
economic improvement abroad, business conditions improved,
centered on exports and production. As a result, the Group’s
profits increased, despite a decline in electricity demand,
because of the decline in fuel costs. Although consolidated
operating revenues decreased 5.2% year on year to 1,444円.9
billion, operating income rose 17.7% to 99円.7 billion, and net
income increased 23.0% to 41円.8 billion.
In addition, although the amount of electric power sold
declined on a year-on-year basis for the second consecutive
year, it has picked up steadily in 2010. Since this trend is
expected to continue, we forecast a year-on-year increase in
fiscal 2010.
With regard to business activities in fiscal 2009, I feel we
moved our nuclear power program forward with ongoing
preparations for expansion of the Unit 3 of the Sendai Nuclear
Power Station and the December 2009 start-up of Japan’s first
pluthermal process at the Unit 3 of the Genkai Nuclear Power
Station. We also moved ahead with activities to expand
renewable energy use, notably the start of construction of the
large-scale Omuta mega solar power plant. We were able to
steadily implement these and other measures in line with the
Medium-term Management Policy, and I feel we achieved
considerable success in the first year of the policy.
Electricity Sales Volume(Million kWh)
How would you summarize fiscal 2009, the first year of the
Medium-term Management Policy?
FY2009 FY2008 Difference Change
Lighting 29,172 29,254 -82 99.7%
Power 54,220 56,629 -2,409 95.7%
Electricity sales total 83,392 85,883 -2,491 97.1%
Customers other than large-scale industrial 60,985 61,859 -874 98.6%
Large-scale industrial customers 22,407 24,024 -1,617 93.3%
In fiscal 2009, the first year of the Medium-term Management Policy, I believe we
were successful in reinforcing our infrastructure to ensure a stable supply of
electric power now and into the future. We started up Japan’s first pluthermal
plant, at the Unit 3 of the Genkai Nuclear Power Station and continued with the
planned expansion of the Unit 3 of the Sendai Nuclear Power Station.Q.112
Kyushu Electric Power has positioned the Environment-friendly Energy Business
as a core business. We are moving forward with nuclear power generation. We are
also actively introducing renewable energy sources and conducting research and
verification tests to ensure a stable supply of renewable energy.
A. Japan currently imports the majority of the energy it needs.
Since the supply of energy is frequently affected by the state of
world affairs, we regard the assurance of energy security to be an
extremely important priority. In addition, to alleviate global
warming, we must implement immediate and permanent
measures to help achieve a low-carbon society—based primarily
on nuclear power and augmented by renewable energy sources
such as solar and wind power.
With nuclear power in particular, we are maintaining safe and
stable operation and engaging in proactive information
disclosure. This includes outreach to obtain the understanding of
local residents for the development of the Unit 3 of the Sendai
Nuclear Power Station, which is scheduled for startup in fiscal
2019. Also, we are placing the highest priority on safe operation
in the implementation of pluthermal power generation at the Unit
3 of the Genkai Nuclear Power Station.
We develop power distribution facilities for long-term needs
by considering demand trends, reliability of supply from the
customer’s point of view, facility safety and operation, and cost.
At the same time, we are reducing power outages, whether from
accidents or foreseeable problems. We are constructing a trunk
transmission system that will curtail widespread long-term power
outages even in the event of facility damage by a large-scale
natural disaster. We are currently proceeding with the 500,000-
volt Kitakyushu Trunk Line and the 500,000-volt Hyuga Trunk
Line with the understanding and cooperation of local residents.
We have set a target of reducing CO2 emissions per unit of
electric power sold by about 20% from the fiscal 1990 level on
average from fiscal 2008 to 2012 through supply-side and use-
side reductions combined with utilization of the Kyoto
Mechanisms. In addition, to curb CO2 emissions over the medium
term to long term, we plan to develop the Unit 3 of the Sendai
Nuclear Power Station and a fourth unit for the No. 3 System of
the Shin Oita Power Station while also actively introducing wind
power and solar power. As a result, in fiscal 2020 we expect our
per-unit CO2 emissions to be 30% below the fiscal 1990 level.
To prepare for widespread use of renewable energy, we are
developing environment-friendly energy supply systems,
including smart grids, next-generation transmission and
distribution networks, and pilot testing a micro grid system for
outlying islands that combines conventional internal combustion
power generation with renewable energy from solar power and
wind power and storage batteries.
How is the Company tackling its key policy issues of assuring long-term
stable supply of electricity and addressing environmental problems?2005830
3,030
2008 ‐‐‐2012
Average
CO2 emission intensity (kg-CO2/kWh)
[ ]=emissions before CO2 credits CO2 emissions (10 thousand t-CO2)
Electricity sales volume (Billions kWh)2008859
[3,210]1990558
2,4301997699
2,0602007881
3,410
Unit 3 of
Genkai Nuclear
Power Station
becomes
operational
(March, 1994)
Unit 4 of
Genkai Nuclear
Power Station
becomes
operational
(July, 1997)2009834
[3,080]
Note: Using national "Method of calculating the exhaust
coefficient according to the entrepreneur."
If the Unit 3
Sendai NPS
start operation
in FY20192020[2,600‐‐‐
2,800](FY)CO2 Reduction
Effect of the Unit 3
Sendai NPS
Development
▲さんかく700‐‐‐▲さんかく900
Target
▲さんかく20%
0.025
▲さんかく30%
▲さんかく30%
2,910
2,990
0.436
0.295
0.365
0.387
[0.374]
0.348
(Target)
[0.373]
(Forecast)
[0.3]
(Forecast)
0.348 0.348
[0.369]
Trends in CO2 Emissions, and CO2 Emission IntensityQ.2Our strategy---- An Interview with the President13Kyushu Electric Power will contribute to the development of environment-friendly lifestyles and
communities not only by implementing supply-side initiatives, but also by reducing customers’
CO2 emissions through comprehensive energy proposals that promote an energy-saving,
comfortable lifestyle that meets customers’ needs. Also, we will continue to promote all-electric
residences and the EcoCute system to further increase efficiency in energy use.
A. In view of customers’ increased dependence on electricity,
the Company is implementing measures to maintain a high
level of reliability, including the development of transmission
and distribution systems, the introduction of construction
methods that do not interrupt the power supply and
distribution automation. We are also striving to deliver high-
quality electric power by developing highly efficient, rational
facilities aligned with demand and customer needs.
To directly address global resource and environmental
problems, as well as issues of customer comfort, we believe
that it is important to not only implement supply-side
measures such as the promotion of nuclear power and the
development and introduction of renewable energy, but also
to actively support demand-side energy conservation on the
part of customers. Accordingly, the Company offers corporate
customers comprehensive proposals for energy solutions to
meet diverse needs and solve issues related to environmental
friendliness and comfort. These proposals include the
introduction of efficient energy conservation methods and the
promotion of efficient, comfortable electric kitchens and high-
efficiency heat pump air conditioning and hot water supply
systems. For our individual customers, we promote an
energy-saving, comfortable lifestyle that enables people to
lead comfortable, environment-friendly lives through the
waste-free, skillful use of electricity. These efforts focus on
the promotion and dissemination of all-electric housing based
on the highly energy-efficient EcoCute system.
The total number of all-electric residences has nearly
doubled during the past four years, exceeding 600,000 at the
end of April 2010. Cumulative installations of high-efficiency
EcoCute residential electric hot water supply systems surpassed
230,000 systems by the end of fiscal 2009, and our target is
500,000 systems by the end of fiscal 2013.
By providing services to increase the efficiency of energy use
in the form of high-value-added services that better customers’
lives, we are working to reduce CO2 emissions not just within the
Group, but also together with customers.
The Company is focusing on high-value-added services that combine comfort
with environmental friendliness. What specific activities are you undertaking?
Spread of All-electric Housing
1,0008006004002000121086422001922002 2003 2004 2005 2006 2007 2008 20090Total number of all-electric houses Total number of EcoCute systems
Penetration rate of all-electric households013231732.9104.2212195.4392806.7713514421148.552517310.059823411.2
(Thousands) (%)Q.314
The Company is increasing the efficiency of facility investments, repair costs and overhead, while also
developing flexible, diverse revenue and profit sources—to create an income and expenditure structure that
is freely adaptable to change. Moreover, we will seek to distribute resources appropriately across our
businesses based on risk assessment, and to achieve further improvements in efficiency. In addition, we
aim to decrease fuel costs through the establishment of a flexible fuel procurement portfolio.
A. To further reinforce the revenue and profit structure, we are
working to boost the efficiency of facilities investment, repairs
and overhead. We are reviewing the timing and the scope of
construction, and we are maximizing the efficiency of repairs
and overhead across all operations by adjusting repair
schedules on the basis of risk assessment informed by
inspection results and other inputs and by narrowing down the
scope of repairs and overhead in accordance with cost
effectiveness.
In addition, fuel procurement is expected to become
increasingly difficult over the medium to long term. Accordingly,
we are working to reduce fuel costs and ensure stability by
moving forward with diversification of fuel suppliers, contract
periods and pricing methods. At the same time, we are ensuring
stable procurement by acquiring upstream rights to secure a
long-term, stable supply of fuel and ensure economical
procurement. In fiscal 2009, we entered into a basic agreement
concerning participation in a new LNG exploration and
production project in Australia.
These and other initiatives will place us among the leaders
in the industry in cost competitiveness. That becomes the
foundation for stable dividends when combined with other cost
efficiencies and the higher profits that come from a strong
financial structure. Further stabilities are to be gained by the
diversification of revenue and profit sources, including the
overseas energy business.
Electric power industry expenses, such as facility development costs,
are squeezing earnings. What are your plans for reinforcing revenue and profits?250200150100500
2005 2006 2007 2008 2009
Power source Distribution Others56.3184.4 181.4
214.6
232.8
221.02010(Plan)
240.671.856.354.766.959.869.180.565.071.693.767.579.098.663.058.898.463.8(Billions of Yen)40030020010002005 2006 2007 2008 2009
Maintenance costs Miscellaneous costs
157.3
320.9
331.9
350.8
163.6
170.7
161.2
184.9
165.9
197.8
370.6 370.4
332.5
172.8
195.1
175.3
173.5
159.02010(Plan)
(Billions of Yen)
Trends of Capital Expenditure Trends of Maintenance and Miscellaneous Costs
Note: Miscellaneous costs, including waste disposal cost, supplies expense, remedial expenses, rent,
outsourcing cost, development-related cost, training cost, research expense and overhead cost.Q.4Our strategy---- An Interview with the President15Kyushu Electric Power has positioned the Environment-friendly Energy Business
as a core business. We are moving forward with nuclear power generation. We
are also actively introducing renewable energy sources and conducting research
and verification tests to ensure a stable supply of renewable energy.
The Company actively engages in overseas business operations,
with a focus on Asia. What results do you expect from overseas operations?
A. Anticipating deregulation of our industry, in July 2000 the
Company introduced a divisional structure, organizing the
power generation, power transmission, marketing and new
business development operations into business divisions. We
believe this move has promoted rapid and effective business
execution under the leadership of executive management.
Nevertheless, our business environment has changed
dramatically in the past decade, bringing many new and
complex issues. Accordingly, in July 2010, we extended the
divisional structure to more clearly define responsibility and
increase the speed of management decision making. Under
executive leadership, organizations can better demonstrate the
collective power of a corporation—through organic
collaboration, working in unison to effectively utilize enterprise
resources and developing individual potential. Specifically, we have changed from eight divisions (with 19
affiliated and 12 unaffiliated departments) to 14 divisions
(containing 34 affiliated departments) and one office. To
reinforce our structural grasp of important management issues,
we established new divisions such as the International Business
Division, which handles the overseas IPP business, the
acquisition of upstream rights and fuel procurement, and the
District Symbiosis Division which handles communications with
stakeholders. New departments include the Generation
Technology Development Department, which develops and
manages renewable energy sources.
We will also review reorganizing our branch and site offices
to better define responsibilities concerning power supply and
community relations, to reinforce on-site capabilities and
improve community service.
July 2010, the Company reviewed the corporate organization and extended
the divisional structure. What was the aim behind this change?Q.5Q.6
A. Although we expect the amount of electric power sold in the
Kyushu Region to steadily increase in the medium to long term,
business growth here will be gradual. We forecast annual
increases of 0.7% over ten years. Accordingly, the Company’s
overseas energy business will drive corporate value growth. We
participate in electric power generation, consulting and
environment-related businesses overseas. These activities
enable us to apply the expertise and leading-edge technologies
developed in Kyushu as creative solutions in overseas markets,
which offer greater potential for environmental improvement
gains and supply stability than our home market. We currently
have an ownership interest in overseas power generation
facilities with total capacity of 1.3 million kilowatts, for a total
investment amount of approximately 30円.0 billion. Over the next
decade, we plan to expand our total investment to about 100円.0
billion and our interest to about 3.0 million kilowatts.
We expect our overseas operations to benefit the Company
with stable revenue and profits, improve energy supply and
efficiency for host countries and help reduce the world’s CO2
emissions.16The Company is increasing the efficiency of facility investments, repair costs and overhead, while also
developing flexible, diverse revenue and profit sources—to create an income and expenditure structure that is
freely adaptable to change. Moreover, we will seek to distribute resources appropriately across our
businesses based on risk assessment, and to achieve further improvements in efficiency. In addition, we aim
to decrease fuel costs through the establishment of a flexible fuel procurement portfolio.
A. To ensure that the entire Kyushu Electric Power Group shares
a basic concept of management and engages in activities in
unison, in March 2009 the Company established the Long-term
Management Vision, while also instituting the Kyushu Electric
Power Group Management Basic Policy. The concept underlying
the policy is the fundamental principle "We at all times provide
steady and reliable electricity and energy to our customers, and
we contribute to the creation of a comfortable, environment-
friendly and sustainable society by providing services that
increase the quality of society and the quality of life." We will
seek to increase management efficiency and profitability group-
wide by broadly sharing this vision and basic policy. All Group
employees will work to increase the Group’s corporate value
with a sense of common purpose. The Group CSR Promotion
Committee meets twice yearly to guide the implementation of
CSR measures throughout the Group, taking care to ensure
widespread awareness of the CSR Action Plan and the steady
implementation of a PDCA cycle based on the plan. The Group
will continue to conduct management grounded in CSR in order
to contribute to the creation of a comfortable, environment-
friendly, sustainable society.
A. The Company believes that the key to sustained corporate
value creation is to appropriately address issues from a long-
term perspective so as to supply all the forms of value that
society requires of the Company. We believe that this promotes
the long-term interests of shareholders and investors.
With regard to dividends, we decide the dividend amount
taking into account the medium-term and long-term outlook for
group-wide income and expenditure, including overseas
businesses. We intend to make every effort to maintain the
annual dividend at 60円 per share.
The Kyushu Electric Power Group will continue to work as
one to meet the expectations of our shareholders and
investors, and I personally ask for your continued support in
the years ahead.
How do you aim to realize the collective power of the
Kyushu Electric Power Group?
Finally, please discuss the policy on
future shareholder returns.Q.7Q.8
Our strategy---- An Interview with the President17Rigorous Adherence to a
Safety-first Policy
Safety is our priority in all business activities. The number of industrial accidents has unfortunately
fluctuated in recent years, and tragically, in the year under review one of our workers was killed
during an inspection at one of our power stations.
Several accidents attributable to human error interrupted the supply of power during the year,
although these events, thankfully, did not result in injury or death.
Many of these accidents resulted from complacency, as successes over the years reduced risk
awareness. We consider it necessary to prevent recurrences by bolstering safety awareness in the
corporate culture while providing more fail-safes in recognition that people do make mistakes. We
therefore intend to boost risk prediction by drawing on experiences to strengthen safety
awareness, sharing accident information and providing more exposure in training to potentially
dangerous situations. At the same time, we will improve facilities to maintain and enhance public
safety and supply reliability.
In FY2010, we will establish the Safety Promoters Department to gather relevant information
from all business units and help them improve safety management, thus deepening safety
awareness in the corporate culture.
Safety will remain our top priority as we improve awareness of this issue in our corporate
culture and build safer facilities.
Response to Key Management Issues
Simulator room in Genkai Nuclear Power Station training center1802
On December 2, 2009, the Unit 3 of the Genkai Nuclear Power Station passed the final government
inspection and began the first-ever pluthermal power generation in Japan. The unit is now steadily
operating under constant rated thermal power operation. During operation of a nuclear power
station, the operator periodically measures the concentration of radioactive iodine in the reactor’s
primary coolant (water) and confirms that minute openings have not occurred in the fuel rods
(cladding tubes) leading to leakage of radioactive substances into the primary coolant. To confirm
fuel safety during operation at the Unit 3 of the Genkai Nuclear Power Station, which is loaded with
mixed-oxide (MOX) fuel, we have stepped up the frequency of primary coolant monitoring from three
to four times a week. We publish on the corporate website the results of those measurements
together with data indicating that the fuel is burning according to plan. Since the start-up of the
reactor, we have conducted inspections to confirm that the control rods have the capability of
shutting down the nuclear reactor with ample margin (reactor shutdown margin) by actually
confirming the effectiveness of the control rods in the reactor and we publish those inspection
results on the corporate website, too. Japan aims to establish a nuclear fuel cycle in order to secure
a stable supply of energy into the future.
Electric power companies in Japan plan to implement pluthermal power generation at a total of
sixteen to eighteen reactor units by fiscal 2015 at the latest. Two companies, including Kyushu
Electric Power, had begun pluthermal power generation by the end of fiscal 2009.
Overall Progress of Pluthermal
Power Generation Safety in Japan
Kyushu Electric Power
Unit 3 Genkai
(Genkai-cho, Saga prefecture) Shikoku Electric Power
Unit 3 Ikata
(Ikata-cho, Ehime prefecture)
※(注記) Finished production of MOX fuel in France
Kansai Electric Power
Ohi NPS (1 or 2 unit) (Ohi-cho, Fukui prefecture)
The Japan Atomic Power Company
Unit 2 Tsuruga (Tsuruga city, Fukui prefecture)
Chubu Electric Power
Unit 4 Hamaoka (Omaezaki city, Shizuoka prefecture)
※(注記) Brought in MOX fuel in the power station
The Japan Atomic Power Company
Tokai Daini (Tokai-mura, Ibaraki prefecture)
Hokuriku Electric Power
Shika (1 unit) (Shika-machi, Ishikawa prefecture)
J-Power
Ohma (Ooma-machi, Aomori prefecture)
(under construction)
Approval by citizens
Approval not yet received
※(注記) The local community agreed in March 18, 2010.
※(注記) Concluded agreement production of MOX fuel
※(注記) Pluthermal operations have indispensable conditions,
that to meet three technical conditions
(earthquake-proof safety, countermeasures for increasing
aging and soundness of MOX fuel).
Tokyo Electric Power
Unit 3 Fukushima Daiichi
(Okuma-machi, Hutaba-machi, Fukushima prefecture)
Pluthermal operation
Tohoku Electric Power
Unit 3 Onagawa
(Onagawa-cho, Ishimaki city, Miyagi prefecture)
※(注記) Concluded agreement on production of MOX fuel。※(注記) Finished production of MOX fuel in France
Kansai Electric Power
Unit 3, 4 Takahama (Takahama-cho, Fukui prefecture)
※(注記) Concluded agreement on production of MOX fuel
Chugoku Electric Power
Unit 2 Shimane (Matsue city, Shimane prefecture)
Hokkaido Electric Power
Unit 3 Tomari (Tomari-mura, Hokkaido)
Progress Situation of Pluthermal Project in Domestic Electrical Power Utilities (As of March 31, 2010)
* Tokyo Electric Power Company intends to carry out pluthermal operation at 3–4
reactors in its nuclear power plants, in line with a basic policy of earning public
trust in the hosting areas.
Source: Data calculated from homepage of the Resources and Energy Agency.19Our
operations
The Kyushu Electric Power Group is diversifying into the Social/Lifestyle-oriented Service
Business from its core Environment-friendly Energy Business. We are prioritizing businesses that
offer synergy with the core business on the basis of social importance, risk and profitability.
Customer Connected
Towards the Creation of Sustainable Corporate Value20Nuclear Power
Generation Policy
Due to the long-term stability of fuel
procurement, nuclear power generation
offers comprehensive superiority with
respect to energy security and economic
efficiency. The absence of CO2 emissions
during operation, also gives it
advantages with respect to global
warming prevention. For these reasons,
the Company seeks to attain a
contribution to total power generation
from nuclear power of approximately
50%. To support this objective, we
engage in activities to establish the
nuclear fuel cycle, including pluthermal
power generation, making safety
assurance our highest priority. We also
work to further increase safety and
reliability through preventative
maintenance, rigorous implementation
of measures to counter the aging of
facilities and enhancement of quality
assurance activities.
Activities from a Medium-
to Long-term Perspective
In December 2009 the Company began
pluthermal power generation at the Unit
3 of the Genkai Nuclear Power Station.
This involves the reuse of plutonium
recovered through the reprocessing of
spent fuel and mixed with uranium fuel
to make mixed-oxide (MOX) fuel. The
first-ever commercial operation of
pluthermal power generation in Japan
has contributed greatly to the
establishment of a nuclear fuel cycle.
We plan to develop the Unit 3 of the
Sendai Nuclear Power Station and aim to
start operation in fiscal 2019. The
procurement of fossil fuels is expected
to grow increasingly difficult as
economic development in China, India
and other countries raises the demand
for resources. Early facility development
to achieve a low-carbon society is
necessary in light of the government’s
policy to combat global warming (a 25%
reduction in CO2 emissions from the
fiscal 1990 level in 2020).
Nuclear
Power
OUR OPERATIONS ---- Creating Sustainable Corporate value10080709060500200388.92004 2005 2006 2007 2008 2009 2010
(Plan)
Kyushu Electric Power Ten company average59.786.268.971.9 69.9
60.7 60.086.882.1
85.8 84.6 84.879.665.7(%)※(注記)The utilization rate can vary according to the number of days on which regular inspections are implemented in that year.01The Company’s average nuclear power utilization rate
exceeds 80%, higher than the average for ten electric
power companies in Japan. Although we expect the
figure to fall below 80% in fiscal 2010, this is temporary,
for scheduled replacement of major equipment and
comparatively more days of shutdown for periodic
inspections. In nuclear power generation, an increase in
the nuclear power utilization rate of one percentage point
has a CO2 reduction effect of 300,000 tons per year.
Leveraging Our Strengths in
Strategic Actions for the Future
Change in Nuclear Power Utilization Rate21Developing Nuclear Power and Maintaining
a High Nuclear Power Utilization Rate
Approximately 30% of all electric power generated in Japan comes from nuclear
power generation, and Kyushu Electric Power accounts for about 40% of that
nuclear power. The Company promotes nuclear power generation as a core power
source because of the economic, social and environmental advantages that are
increasing its importance as a mainstream power source.
S e n d a i N u c l e a r P o w e r S t a t i o n 22250150100200500
2005 2006 2007 2008 2009 20172319
42 48 56 63762002721312533304135
Wind power Solar power
(10 thousand kW)
Regional
Advantages
The Company is actively proceeding
with the development and introduction
of renewable energy sources, including
wind, solar, biomass, hydroelectric and
geothermal power. We are putting
particular emphasis on wind and solar
power, installing facilities that will bring
combined capacity to two million
kilowatts by fiscal 2017. Specifically,
we are working to increase installation
of wind power generation facilities by
accepting wind power generation
system utility interconnection and using
in-house technology to install solar
power generation facilities at power
station sites and all business sites to
generate power.
Wind power and Solar power
Facilities Installation Capacity
The Nagashima Wind Power Station,
operated by Kyushu Electric Power
Group member, Nagashima Windhill
Co., Ltd., is Japan’s largest-scale wind
power station. It operates 21 windmills,
each with capacity of 2,400 kilowatts,
for a total capacity of 50,400 kilowatts.
The power station, which began
operation in 2008, has an annual CO2
emissions reduction effect of 40,000
tons. Also, the Company is proceeding
with development of the Omuta mega
solar (large-scale solar power
generation) power plant, our first large-
scale solar power generation station.
This facility will be the largest-scale
solar power generation station in
Kyushu, with capacity of 3,000
kilowatts. We began construction in
fiscal 2009, plan to start operation in
fiscal 2010, and expect to achieve an
annual CO2 emissions reduction effect
of 1,200 tons.
Renewable
Energy02The Company is actively proceeding with the development and
introduction of renewable energy sources, including wind, solar,
biomass, hydroelectric and geothermal power. We are putting
particular emphasis on wind and solar power, installing facilities
that will bring combined capacity to two million kilowatts by
fiscal 2017. Specifically, we are working to increase installation
of wind power generation facilities by accepting wind power
generation system utility interconnection and install solar power
generation facilities at power station sites and all business sites
to generate power.
Solar Power and Wind Power Facilities Installation Capacity
OUR OPERATIONS ---- Creating Sustainable Corporate value
Leveraging Our Strengths in
Strategic Actions for the Future23As the international community tackles measures to reduce emissions of CO2 and other
greenhouse gases, the Company is effectively utilizing the Kyushu Region’s abundant
natural energy to develop and introduce renewable energy sources.
N a g a s h i m a W i n d P o w e r S t a t i o n
Promoting Renewable Energy to Address
Global Environmental Problems24Overseas
Activities03(10 thousand kW)140120100806040200
2004 2005 2006 2007 2008 2009
Output441295378 78128Important from a
Management Perspective
The Company’s overseas energy
businesses are the drivers of corporate
value creation. Through our overseas
operations, we secure revenues and
profits by leveraging technologies and
expertise to contribute to the stable
supply of energy and improve energy
efficiency in overseas countries. These
efforts also contribute to global CO2
emissions reduction. With regard to the
scale of the overseas power generation
business, at the end of fiscal 2009, we
had an ownership interest in overseas
power generation facilities with total
capacity of 1.3 million kilowatts, for a
total investment amount of
approximately 30円.0 billion. This
includes our fiscal 2008 equity
investment in Senoko Energy Pte Ltd.
Over the next decade, we plan to
markedly expand our total investment
to about 100円.0 billion and our
ownership interest to about 3.0 million
kilowatts.
Principal Results in
Fiscal 2009
In fiscal 2009, Datang Sino-Japan
(Chifeng) Renewable Power Co Ltd., a
joint venture, began commercial
operation of a wind power station. This
is the first wind power generation
project involving the participation of a
Japanese company in China. On the
basis of the results of wind condition
field surveys a Group company
conducted since 2004, we invited
companies to participate in the project
and established a joint venture
company in November 2007. The
power station has 25 2,000-kilowatt
wind generators, for total capacity of
50,000 kilowatts, and a planned annual
electric power sales volume of
approximately 120 million kilowatt-
hours. In addition to helping to
alleviate China’s electric power
shortage, the power station is expected
to contribute to the environment with
an annual CO2 emissions reduction
effect of 140,000 tons.
Ownership Interest in the Overseas Power Generation Business
Overseas markets offer greater room for improvement
with respect to environmental response and supply
stability than Japan, and the overseas energy business
has high social significance. Accordingly, we have
positioned it as a core business. We will expand the
overseas power generation business by promoting the
highly efficient thermal IPP projects as well as
geothermal power, wind power, and other renewable
energy power generation businesses.
OUR OPERATIONS ---- Creating Sustainable Corporate value
Leveraging Our Strengths in
Strategic Actions for the Future25S e n o k o E n e r g y P t e L t d .
Through the overseas energy business, one of the Group’s top priorities, we aim to
promote a stable supply of energy, increase energy efficiency and contribute to CO2
emissions reduction on a global scale. Our business activities are focused on Asia,
a region of rapid economic growth. We will engage in overseas businesses that take
advantage of our developed technologies and expertise as core elements of the
Environment-friendly Energy Business.
Overseas Operations Focused on the
Continuously Growing Asia Region26OUR OPERATIONS ---- Environment-friendly Energy Business
■しかくNuclear ■しかくOther renewable energy ■しかくHydroelectric ■しかくGeothermal ■しかくCoal ■しかくLNG ■しかくOil, etc.
Power Sources Diversification Plans (including power sourced from other companies)1008060402002009(Result)1815231202317162812018(%)2019
(Plan)
(Supply capacity)100806040200275142218525733811972009(Result))2019(Plan))2020(Reference)(%)2273491135
(Power output)
* In fiscal 2020, after starting operation of Unit 3 Sendai Nuclear Power Station in fiscal 2019, we
assume our zero-emission power supply rate will be 60%, for carbon dioxide, and including
nuclear power, new energy, hydroelectric (excluding pumped storage) and geothermal energy.
Ensuring Competitiveness in the
Electricity Business
By achieving efficiency increases across
all operations, the Company has
repeatedly lowered its electricity charges.
As a result, in fiscal 2009 our electricity
charges ranked among the lowest in the
industry. We will continue to strive to
maintain inexpensive charges and offer a
wide range of charge plans adapted to
customer needs.
Acquisition of Upstream
Energy Rights
As the worldwide balance of energy supply
and demand continues to tighten, the
Company is proceeding with the
acquisition of upstream interests to secure
To secure a long-term stable supply of energy and realize a low-carbon society, the Kyushu
Electric Power Group is helping to build a sustainable society through an environment-
friendly energy business. We promote nuclear power, develop renewable energy sources
suited to the Kyushu Region and conduct research to ensure a stable supply of energy.
Contribution to the Sustained
Growth of the Kyushu Region
Balancing Power Sources for a
Low-carbon Society
To help realize the Japanese government’s
goal of a low-carbon society while also
securing a long-term stable supply of
energy, the Company is promoting nuclear
power, actively introducing renewable
energy sources such as solar and wind
power and promoting energy conservation
by customers. The Company promotes
nuclear power generation as a core power
source because it is clearly superior in both
energy security and global warming
prevention. Because nuclear power has
strong social and economic benefits,
including long-term stability of fuel
procurement, as well as emitting zero CO2
emissions during operation, the Company is
developing nuclear power facilities with the
objective of obtaining approximately 50% of
total power generated from nuclear power.
Since renewable energy is an excellent
source of power from the perspectives of
effective utilization of domestic energy
resources and global warming mitigation,
we are actively developing and introducing
renewable energy sources aiming to supply
approximately 10% of total power
generated from renewable energy.
With regard to thermal power as well,
we will strive to boost thermal efficiency to
mitigate global warming and ensure the
effective use of energy resources and will
steadily implement measures to counter
the aging of facilities to ensure stable,
long-term facility upkeep.
Energy business
in kyushu27Solar Power Promotion Surcharge
November 2009 marked the start of the Purchase System for Solar Power-Generated Electricity,
established under a national law that obligates electric power companies to purchase excess solar electric
power. Attendant on the introduction of the system, beginning in April 2010 the cost of purchased surplus
solar power is equitably passed along to all electricity customers in the form of a Solar Power Promotion
Surcharge on their electricity bills in the current fiscal year (April to March) based on the amount of
electricity used in the previous calendar year (January to December).
Note: The Solar Power Promotion Surcharge unit
charge for fiscal 2010 was 0円.0. This is
because the system began in November
2009, the purchase cost was low, and
amounts less than 0円.1 are rounded down
The cost required for 2009 purchases will
be combined with costs for 2010 for billing
in April 2011 and beyond.
How the Solar Power Promotion Surcharge Works
(In the Case of Metered Service)
Solar Power Promotion Surcharge Unit Rate (yen/kWh) ×ばつ Used Volume (kWh)
ElectricityRateBasic
Charge
Electricity Charge
(incl. Fuel Cost Adjustment)
Solar Power
Promotion
Surcharge
a long-term stable supply of necessary
fuels. We have participated in a new
uranium mine development and
production project in the Republic of
Kazakhstan since September 2007. In
addition, we entered into a basic
agreement to participate in a new LNG
exploration and production project in
Australia in January 2010.
Woody Biomass
At the Reihoku Power Station, from fiscal
2010 to 2014 we will conduct
demonstration testing of woody biomass
mixed combustion using untapped forest
resources such as scraps from forest
operations in Japan*. In woody biomass
combustion, wood chips are crushed
together with coal in a coal pulverizer and
burnt in a boiler. We plan a maximum
woody biomass combustion volume of
15,000 tons per year (co-firing ratio of
approximately 1%), which will result in
CO2 emissions reduction of approximately
10,000 tons per year.* Fiscal 2009 Forest Scrap Biomass/Coal Mixed Combustion
Electric Power Generation Proving Project, a government
subsidized project
Establishment of Kyuden Ecosol
In December 2009, the Company
established Kyuden Ecosol Co., Ltd., a
provider of on-site solar power generation
services to customers in the industrial and
public sectors. The new company installs
solar power generation equipment within
customer facilities, such as plants and
office buildings, and supplies the generated
electricity to the customers. It also
operates a solar power system integration
business, acting as a one-stop supplier for
services for the design, construction,
operation and maintenance of solar power
generation facilities. The company’s
strengths include technological capabilities
developed in the electricity business, as
well as comprehensive proposal
capabilities in the energy sector and
procurement capabilities made possible by
scale benefits. Marketing and sales are
enhanced by the collective power of the
Kyushu Electric Power Group, which
provides customers with high-quality,
low-cost services and contributes to the
promotion and dissemination of solar
power generation in Kyushu.28<Transmission> <Distribution> <Customers>
Power
Storage
Battery
Power
Storage Battery
Tele-
communication
CablePLCWireless
Optical FiberWindWindEcoCute
Photovoltaic generation
Power
StoragePHVInformation Services
MeterHEMS
Mega-solar
Mega-solar
太陽光マンション
Factories Factories
Power Network
Information Network
Flow of Electricity
Drastic Introduction of Solar Power
Commercial Buildings
Nuclear
Thermal
Hydro
Operation organization Offices
Substation Substation
Electricity
Electricity
Information
Telecommunication
Cable
Power Cable
Optical、Metal、
PLC、Wireless
Electricity
Electricity
Electricity Electricity
Electricity
Electricity
[Improved Operations] [New Services]
Meter operations
・Visual meter reading
・Remote meter reading
Contract operations
・Remotely executed
・contract revisions
・Sales Offices
(Harnessing our
telecommunications network)
Remote Control
Sales Offices
Customer Service
Relay equipment
(power line carrier)
Wireless
relay
equipment
●くろまるProposing diverse energy-saving and
comfortable lifestyle services
・Providing power consumption information
to customers
・Customer consultations
・Energy-saving support
・Identifying low-voltage outage
・Quicker service restoration
Outage monitoring
New Low-voltage Electronic Meter
Following the November 2009 introduction of a new low-voltage electronic meter
(unit meter) equipped with a communication function to improve customer
service and increase operational efficiency, we plan to continue systematic
installation of the meter. Once the new meter is in widespread use, we expect to
utilize it in proposals for energy-saving comfortable lifestyles, enhanced by
information on electricity use and for energy conservation consulting. We will also
use the meter as a means of increasing operating efficiency. It will facilitate rapid
restoration of power by quickly revealing low-voltage blackout areas and enable
us to perform remote meter-reading operations.
OUR OPERATIONS ---- Environment-friendly Energy Business
Low-voltage electric meters coming into common use
Smart grids are highly efficient, high-quality, highly reliable electric power
supply systems that integrate and utilize solar power generation, other
distributed power sources and demand-side information. This is enabled by
using information and communication technology to integrate alternative
power sources with the operation of conventional concentrated power
sources and transmission systems. Possible constituent technological
elements of a smart grid are automation of transmission and distribution
using IT, solutions for the introduction of distributed renewable energy and
diverse forms of demand-side management (DSM). Although IT-driven
automation of transmission and distribution in Japan are advanced, the
issues of distributed power sources and DSM are yet to be settled. The
Company has developed and introduced a new low-voltage electronic meter
with a two-way communication function and is conducting demonstration
testing of a micro grid that combines solar and wind power. We formed
within the Corporate Planning Division a specialist team to evaluate smart
grids and have launched the Smart Grid Working Group, made up of the
managers of involved departments. We are now proceeding with internal
cross-organizational consideration of smart grids from the perspective of
supply and demand.
Smart Grid Research
Image of Smart Grids
Micro Grid System for Outlying Islands
On outlying islands that have no linkage with the main island, the Company
principally supplies electric power by means of internal combustion power
generation using heavy oil as fuel. However, we are considering an optimal
electric power supply system adapted to the characteristics of each island from
the standpoints of energy security, environmental protection and economic
efficiency. As part of this initiative, in fiscal 2009 we constructed a micro grid
system that combines conventional internal combustion power generation with
renewable energy involving solar power, wind power and storage batteries on
six islands in Kagoshima Prefecture: Kuroshima, Takeshima, Nakanoshima,
Suwanosejima, Kodakarajima and Takarajima. We will conduct demonstration
tests from fiscal 2010 to 2012 to verify and assess power system operation,
system control issues and economic efficiency.
PLC :Power line communication, a technology in which power lines also serve as communication lines
HEMS :Home energy management system, a system that optimizes electric energy use in the home based on appliance monitoring and usage status and season of the year
PHV :Plug-in hybrid vehicle, a hybrid car whose battery can be directly charged by plugging into a household outlet2929
●くろまる IPP business (under way)
●くろまる IPP business (planned)
●くろまるConsulting and
environmental business
Thailand: Provincial Electricity
Authority of Thailand (PEA): consulting
for high-voltage training center
India: Survey for improvement of
thermal power plant operations
Sarulla geothermal power project
(Output 300,000 kW)
Indonesia: North Sumatra
Ilijan project
(Output of 1.2 million kW)
Philippines: Batangas City
Taiwan: Consulting for construction of thermal
power stations and technological consulting for
construction of electric power substations
Tuxpan II and V projects
(Output of 495,000 k×ばつ2)
Mexico: State of Veracruz
China: Energy-saving
consulting
Inner Mongolia wind power project
(Output of 50,000 kW)
China: Chifeng
Senoko Energy Pte Ltd.
(Output of 3.3 million kW)
Singapore
Phu My III project (Output of 744,000 kW)
Vietnam: Ba Ria-Vung Tau Province
OUR OPERATIONS ----
The Challenge of Increasing Growth
Potential and Reducing CO2 Emissions
on a Global Scale
ENERGY BUSINESS
OVERSEAS
To powerfully promote the overseas
energy business, the Company has
opened its first overseas business
office. The new office supports the
operation of existing projects and
engages in new project development.
IPP Projects
At the end of fiscal 2009, the Company was
involved in six overseas IPP projects in five
countries, notably the Tuxpan II IPP
project, which began operation in fiscal
2001. We are continuing to steadily operate
our existing IPP projects: the Tuxpan II and
V projects in Mexico, the Ilijan project in
the Philippines, and the Phu My III project
in Vietnam. We are receiving dividends and
other returns on our investments in these
projects and have repaid loans on schedule
from electric power sales revenue based on
long-term sales contracts.
Senoko Energy
The Company participated in a consortium
with Marubeni Corporation, The Kansai
Electric Power Co., Inc., Japan Bank for
International Cooperation and GDF Suez
S.A. The consortium bid successfully in an
international auction conducted by
Temasek Holdings Pte Ltd., owned by the
Ministry of Finance of Singapore,
concerning the divestiture of all shares of
Senoko Energy Pte Ltd. (now Senoko
Energy). As a result, we have acquired a
15% equity stake in Senoko Energy.
Senoko Energy is Singapore’s largest
electric power generation company and
owns power generation assets that account
for approximately 30% of the country’s
total electric power generation capacity.
The company sells the electricity it
generates to customers in Singapore,
mainly through its retail electric power
sales subsidiary. Continued growth in
demand for electricity is forecast in
Singapore, and we aim to secure stable
revenues and profits in a country that is an
important base of operations for business
activities in the Asia region.
Consulting Business
The Company utilizes specialists for
overseas consulting who possess
experience, expertise, and advanced
technological capabilities gained through
the electricity business in Japan. They
consult in fields such as power generation,
transmission and distribution technology,
the environment, energy conservation, and
personnel development. Through the
consulting business, conducted primarily
in Asia, we contribute to the stable supply
of electricity in various countries and the
development of engineers in electricity-
related fields. At the end of fiscal 2009, we
were engaged in six consulting projects in
five countries.
Establishment of a
Business Office in Singapore
In light of the geographical location and
characteristics of Kyushu, in July 2009 the
Company opened its first overseas
business office in Singapore to serve as a
support base for information gathering and
overseas projects in Indonesia, Vietnam,
the Philippines, India and other Asian
countries. We will make use of the
Singapore office to gather information on
new projects and manage and operate
existing projects.
Environment-friendly
Energy Business30301020
(10 thousands)02008 2009200720062005200420032.5
Total number4.89.515.521.526.028.4
BBIQ Broadband Contracts
Grand Garden Fukuoka Josui urban senior-citizen condominium
Social/Lifestyle
ORIENTED Service
The Provision of
Services Grounded in
Customer Needs
The Company makes use of its enterprise resources to support the
infrastructure needs of an information-driven society and contribute
to local communities. In addition, we engage in businesses that
contribute to fulfilling, comfortable lives for our customers.
IT and Telecommunication
Business
The Group engages in an IT and
telecommunications business focused on
information and communications fields with
high growth potential, such as the
dissemination and expansion of the Internet
and the computerization of companies.
Specifically, we engage in four businesses:
The IT solutions business, BBIQ ultra-high-
speed Internet connection service, as well
as design, construction and operation of
telecommunications infrastructure and
application provision. The data center
business houses customers’ server
equipment. And through the optical fiber
core leasing business, we provide service to
local governments, telecommunications
companies and cable TV operators. The
number of BBIQ subscribers has increased
steadily to approximately 280,000 at the end
of fiscal 2009.
Environment/Recycling Business
In the environment and recycling business,
we contribute to the creation of a
recycling-based society and offer solutions
for the prevention of environmental
pollution by collecting used fluorescent
bulbs from companies, schools and local
governments. We separate them into their
original materials, and manufacture and
sell recycled fluorescent bulbs. We also
engage in a document recycling business
with the aim of meeting societal needs for
information security and mitigating
environmental impact. We collect
confidential documents generated by
companies and local governments, erase
confidential information then recycle the
paper to manufacture and sell paper
products.
Lifestyle-oriented Services Business
To provide fulfilling, highly convenient
living environments to aged customers, we
operate a new style of urban senior citizen
condominiums that harmoniously coexist
with local communities, called Grand
Garden. They have full-featured medical
support systems that provide care services
that enable senior citizens to lead secure
and comfortable lives. Grand Garden
Fukuoka Josui began operation in May
2010, bringing the number of facilities in
operation to four.
OUR OPERATIONS ----SOCIAL/LIFESTYLE
ORIENTED SERVICE31Our
structure
Kyushu Electric Power is reinforcing its sustainable management practices by
strengthening corporate governance, compliance, CSR and environmental
management for fulfillment of our mission.
MANAGEMENT CONNECTED
Establishing a Solid Management Foundation32OUR structure ---- Corporate Governance
The Company has made the Board of Directors and the Board of Auditors the foundation stones of
corporate governance, with a highly independent outside director further strengthening the management
supervision function. In addition, the corporate auditors and internal auditing organizations collaborate
to increase auditing effectiveness.
Board of Directors
In principle, this body meets monthly and whenever otherwise
necessary to decide on important corporate management matters and
monitor implementation. The Board of Directors met fifteen times in
fiscal 2009. The Corporate Management Committee considers
matters requiring further discussion before the Board of Directors
makes decisions and decides on important executive issues.
Each division and branch office has an executive officer to
accelerate decision making and streamline operations.
Board of Auditors
Auditors attend important gatherings, including those of the Board of
Directors. They conduct hearings for all divisions, consolidated
subsidiaries and other business units, and otherwise conduct overall
audits of the work of the Board of Directors and executive officers. In
principle, the Board of Auditors meets monthly to debate on and
make resolutions about the reporting on important matters relating to
laws and ordinances and the articles of incorporation. The Board of
Auditors met fifteen times in fiscal 2009. The Corporate Audit Office
assists this body.
Internal Auditing
We set up an internal auditing body that functions objectively,
ensuring that operations are proper and helping to improve
management efficiency. The office audits compliance and business
operations at all divisions and branch offices.
Staff from this office audit quality assurance systems for safety
initiatives at nuclear and thermal power stations and other important
facilities.
Internal Controls (Financial Reporting)
Kyushu Electric Power strictly enforces proper internal controls for
financial reporting and shows its commitment to highly reliable
reporting by maintaining a system that can take necessary corrective
actions.
(Note) Pursuant to the Financial Instruments and Exchange Act, the Company has
evaluated the effectiveness of the operation of its internal controls for financial
reporting and received a clean opinion from an audit by independent auditors.
Risk Management
Our risk management policy is to periodically identify, classify and
evaluate risks that pose a serious threat to our business operations.
We then identify the most important risks for the Company as a
whole and for each department. Each department and business site
incorporates into its business plan countermeasures against the
identified risks as well as against other risks relating to specific
projects. Then, they carry out those plans in appropriate risk
management. We have also established a response system and
procedures for rapidly and appropriately responding to natural
disasters and other events that have a material affect on the
management of the Company and on society. We prepare by
periodically conducting response training.
The Company is reinforcing corporate governance to ensure that
business activities are executed appropriately.33Chairperson
Shingo Matsuo
President
Toshio Manabe
Executive Vice President
Yasumichi Hinago
Executive Vice President
Mamoru Dangami
Executive Vice President
Masayoshi Nuki
Executive Vice President
Yoshinori Fukahori
Chairperson
Shingo Matsuo
President
Toshio Manabe
Executive Vice Presidents
Yasumichi Hinago
Mamoru Dangami
Masayoshi Nuki
Yoshinori Fukahori
Directors
Toshihiko Hirano
Haruyoshi Yamamoto
Kenichi Fujinaga
Satoshi Mizobe
Masatoshi Morooka
Masahiro Kajiwara
Michiaki Uriu
Kenji Tsugami
Kazuumi Nashida
Masanao Chinzei
Akiyoshi Watanabe
(Outside Director)
Audit
Interal Auditing
Report
Implementation monitoring
Delegate
Assess appropriateness of
accounts auditing
Report
Choose, dismiss and audit
Appoint/dismiss Appoint/dismiss
Appoint/dismiss
Agree to appointments and dismissals
Accounting Auditors
Headquarters, departments,
and branches, etc.
Compliance Committee
Board of Auditors Corporate Audit Office
G e n e r a l m e e t i n g o f s h a r e h o l d e r s
B o a r d o f D i r e c t o r s
Coordinate and instruct Additionally debate and
report on important matters
Report
Instruct
Corporate Management Committee
Internal auditing body
President
Corporate Governance Structure
Board of Directors and Auditors
Senior Corporate Auditor
Tokihisa Ichinose
Corporate Auditors
Tsutomu Zempuku
Shinji Yasumoto
Kyousuke Takaishi
(Outside Corporate Auditor)
Hirokazu Murayama
(Outside Corporate Auditor)
Keiko Hieda
(Outside Corporate Auditor)
Alternate Auditor
Kazuyuki Yamade34OUR structure ---- Corporate Social Responsibility
As a responsible energy provider,
the Kyushu Electric Power Group practices management grounded in
corporate social responsibility.
Board of
Directors
Environment
Committee
PresidentCSRPromotion
Committee
Compliance
Committee
Kyushu Electric
Power Group Presidents
Committee
Corporate
Management
Committee
Group
Management
Conference
Group Business Promotion Committee
Group business promotion, etc.
Group Human Resources Committee
Group joint training programs, etc.
Group Environmental Management Promotion Committee
Planning of group environmental activities, etc.
Group Overseas Business Promotion Committee
Examination of overseas business projects, etc.
Group Technology Development Promotion Committee
Technology development activities, etc.
Group General Affairs/Planning Department Meeting
Matters relating to group management, etc.
Group CSR Promotion Committee
Compliance, etc.
Through management action that fundamentally incorporates corporate social responsibility (CSR) group-
wide, we aspire to create sustained value for everyone involved in the Company’s business activities.
CSR Promotion Structure
CSR Management
We appointed one director to oversee our CSR management
structure. The president chairs the CSR Promotion Committee,
which formulates our CSR action plans and deliberates on our CSR
Report as part of efforts to bolster our initiatives. The CSR
Promotion Committee, as a rule, meets twice a year.
We established this body to foster group-wide CSR efforts,
ensure understanding of our action plans and implement plan-do-
check-act (PDCA) initiatives. The Group CSR Promotion Committee
is composed of 46 companies as of the end of May 2010, and as a
rule meets twice a year.
Information Disclosure
We formulated the Kyushu Electric Power Disclosure Commitment
in April 1999 to demonstrate our basic stance on disclosure and
maintain transparency and increase public confidence in our
business. We accordingly disclose simple, timely, and accurate
information at press conferences and on our website, informing the
public about operations or about problems with nuclear or thermal
power stations or outages attributable to human error.
We quickly identify and assess the information of blackout and
emergencies, such as typhoons and earthquakes. We use this data
to handle customer inquiries and disseminate an array of
information through the media and on our website.
We started a service in 2008 to e-mail information on outages
stemming from disasters to customers’ pre-registered cell phone
addresses. In June 2009, we enhanced the service by additionally
reporting on the operational conditions of nuclear power stations
following large earthquakes.
We produce an annual plan for proactive communications
through press conferences, our website and brochures. We updated
our disclosure rules in February 2009 to ensure speedy and
accurate disclosure, especially for accidents, violations of corporate
ethics, and other disadvantageous information to customers and
society if not disclosed.35Report
Delegate
Consultation Consultation Consultation
Chairperson: President
Members: Directors, head of labor union committee and three external experts
Corporate auditor
Board of Directors (Kyushu Electric Power)
Compliance Committee (suggestions and monitoring)
Report
Compliance officers: Senior executive level
Chairperson: Head of General Affairs Department
Members: Compliance officers of group companies
Group CSR Subcommittee
Group Companies
• Implement activities
Compliance officers: Heads of head-office
departments and branches
• Implement activities
In-house members
Compliance Subcommittee
(Assesses specific initiatives)
Implementation bodies
(Head-office departments, branch offices,
and business sites)
Liaison
Consultation
Consultation desks
Consultation desks
Compliance consulting desks
(Internal and external)
President
・Directors
・Employees
・Business
partners
Group companies
Group companies
Compliance consulting desks
Compliance officers
President
・Directors
・Employees
The Company strives to raise the compliance awareness of each individual employee and engages in fair
and transparent business activities in compliance with the law and corporate ethical standards.
Kyushu Electric Power Group will strive to raise compliance
awareness and further increase customer trust.
Compliance Management Structure
We established the Compliance Committee in October 2002 under
the oversight of the Board of Directors. The committee appoints the
heads of head-office departments, branch offices and business sites
as Compliance officers to ensure companywide compliance
management, thus raising awareness of issues.
We set up internal and external compliance consulting desks
that work as an internal reporting system.
The Group CSR Subcommittee disseminates action plans and
provides information to group companies.
Compliance Committee
The president chairs this body, whose members include directors,
the chairperson of the Company’s labor union committee and three
external experts, with auditors attending, to ensure objectivity and
transparency.
This committee meets semiannually to deliberate on and
propose compliance management policies and responses, and to
monitor progress. Specifically, the committee contributes to the
promotion of compliance management by discussing revisions to
the Compliance Action Guidelines. They make recommendations
concerning compliance implementation plans, the state of
implementation and measures to prevent the recurrence of
compliance violations, and they conduct a compliance awareness
survey of Kyushu Electric Power Group employees.
Compliance Action Guidelines
The Company distributes to all corporate officers and employees the
Compliance Action Guidelines, which provides guidance on the
Code of Conduct for proper judgment, and state specifically how to
conduct relationships with customers, shareholders, investors and
other stakeholders.
OUR structure ---Compliance Management
Compliance Management Structure36Kyushu Electric Power Group Environmental Charter
—Pursuing Environment-friendly Corporate Activities—
The Kyushu Electric Power Group protects the global environment
and harmoniously coexists with the regional environment in order to
contribute to the development of a sustainable society from a global
standpoint.
1. 
We strive to properly address environmental issues and use resources effectively
while pursuing business that contributes to the future.2. We work with society to enhance the environment.3. We foster interest in conservation in keeping with our desire to
earn customer trust for the entire Group.4. We proactively disclose environmental information when
communicating with society.
Environmental Activities Plan
Based on the Environmental Activities Policy, this plan contains
specific activities for each business site and employee that are
necessary to achieve our environmental objectives.
FY2010 Environmental Activities Plan
Measures to Address Global Environmental Problems
Steadily implement measures to realize a low-carbon society: promoting
nuclear power, development and introduction of renewable energy,
promoting CO2 emission reduction by customers and utilization of the
Kyoto Mechanisms.
Measures to Create a Recycling Society
We will steadily practice the environmental 3Rs—Reduction, Reuse, and
Recycling—in all business activities and engage in green procurement in
cooperation with suppliers.
Protection of the Regional Environment
R&D that contributes to environmental load reduction, such as safe and
appropriate disposal of PCBs and other harmful substances and pilot
research on a micro grid system for outlying islands.
Partnership with Society
Environmental communication with customers through the Kyushu
Homeland Forestation Program to plant one million trees over a ten-year
period and the Kyushu Mirai School, providing energy and environmental
education to children.
Environmental Management
We will appropriately execute an environmental management system
(EMS) at all Company business sites and group companies and endeavor
to ensure that environmental protection activities take firm root
throughout the Group.
OUR structure ---- Environmental Management
The Kyushu Electric Power Group works in unison to practice environmental management that
achieves a proper balance between business activities and environmental protection.
Environmental initiatives to develop a society capable of
sustainable development.
Five pillars Environmental Conduct Policies1Measures to
Address Global
Environmental
Problems
• Control of Greenhouse Gases Emissions on both Sides of Electricity Supply and Use
• Appropriate Correspondence to Kyoto Protocol and Post Kyoto Protocol, etc.
• Contribution to International Global Warming Measures
• Thorough Collection of Restricted Chlorofluorocarbon (protect the ozone layer.)2Measures to Create a
Recycling Society
• Working Towards Zero Waste Emission Activities (Thoroughness 3R)
• Promotion of Green Procurement3Protection of the
Regional
Environment
• Environmental Preservation Related to Power Plants and Transformation Stations
• Appropriate Management of PCB and Asbestos
• Harmonizing with the Surrounding Environment
• Research and Development to Reduce Environmental Impact
• Conservation of Biodiversity4Partnership with
Society
• Promotion of Communications
• Development and Support of Environmental Practices in Our Region
• Development of Energy and Environmental Education for the Next Generation5Environmental
Management
• Appropriate Operation of Environmental Management System (EMS)
• Enhancing Environmental Efficiencies
• Heightening of Employees’ Awareness for Environment
• Environmental Management on a Kyushu Electric Power Group Basis
Kyushu Electric Power Group Environmental Charter
As a corporate group whose business activities impact on the
environment, the Kyushu Electric Power Group is keenly aware of its
responsibility to protect the natural environment. For this reason,
environmental protection as an important management priority.
Management actions are designed to achieve a proper balance
between business activities and environmental protection across all
business activities. The Kyushu Electric Power Group Environmental
Charter contains guidelines that clearly define our environmental
posture and the direction of our environmental protection activities.
The Kyushu Electric Power Group Environmental Action Plan
Annually we prepare the Kyushu Electric Power Group Environmental
Action Plan, for environmental management, and undertake steady,
precise implementation. Each year, we publish the Environmental
Action Report on the status of our environmental initiatives.
The Kyushu Electric Power Group Environmental Action Plan
(Activities in Kyushu Electric Power Co., Inc.)
Environmental Activities Policy
This is the basic long-term policy regarding environmental activities.37financial
information
39 Consolidated Eleven-Year Financial Summar y
39 Management Discussion and Analysis
43 Business Risk Factors
45 Consolidated Balance Sheets
47 Consolidated Statements of Income
48 Consolidated Statements of Changes in Equity
49 Consolidated Statements of Cash Flows
50 Notes to Consolidated Financial Statements
63 Independent Auditors’ Report
64 Non-consolidated Five-Year Financial Summar y
65 Non-consolidated Balance Sheets
67 Non-consolidated Statements of Income
68 Over view of Power Generation Facilities
69 Subsidiaries and Affiliated Companies
CONTENTS38Consolidated Eleven-Year Financial Summary
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31,03009001,5006001,200020601004080
’06 ’07 ’08 ’09
1,401.7
1,408.3
1,482.376.865.941.71,524.133.9’10
1,444.941.8(Billions of Yen)
Operating Revenues (Left) Net Income (Right)
For the Year: 2000 2001 2002 2003 2004
Operating revenues \ 1,428,559 \ 1,448,376 \ 1,458,066 \ 1,421,310 \ 1,391,684
Electric 1,392,148 1,410,010 1,381,440 1,350,675 1,308,843
Other 36,411 38,366 76,626 70,635 82,841
Operating expenses 1,246,791 1,236,344 1,260,308 1,241,296 1,192,718
Electric 1,211,227 1,199,237 1,184,382 1,170,655 1,108,104
Other 35,564 37,107 75,926 70,641 84,614
Interest charges 107,190 89,952 85,653 77,897 77,121
Income before income taxes and minority interests 39,490 97,447 99,464 102,363 112,451
Income taxes 16,058 37,595 39,808 38,417 39,086
Net income 22,934 59,191 61,120 64,319 72,792
Per share of common stock (yen and U.S. dollars):
Net income:
Basic \ 48.37 \ 124.83 \ 128.90 \ 135.13 \ 153.05
Diluted 48.21 123.65 — — —
Cash dividends applicable to the year 50.00 60.00 60.00 50.00 50.00
At year-end:
Total assets \ 4,141,718 \ 4,166,489 \ 4,290,132 \ 4,204,566 \ 4,114,378
Net property 3,528,297 3,459,859 3,595,794 3,523,273 3,394,855
Long-term debt, less current portion 2,137,509 2,071,192 2,130,149 1,984,702 1,858,512
Equity 725,516 810,018 824,928 840,245 910,838
Operating Results
In the year ended March 31, 2010 (fiscal 2009), Kyushu Electric Power had a 5.2% year-on-year
decline in consolidated operating revenues to 1,444円.9 billion, as a result of lower electricity demand
and a decrease in electric power charge unit prices prompted by drop in fuel prices.
With regard to expenditures, operating expenses decreased by 6.5% to 1,345円.2 billion. The
decrease is also attributable to reduced fuel expenses, as a result of a fall in fuel prices, and lower
electricity demand. As a result, operating income for the segment rose by 17.7% to 99円.7 billion.
Other revenues grew by 8.9% from the previous year to 11円.3 billion. One primary factor was
an increase in investment returns from equity method affiliates, which offset lower proceeds from
dividends and other decreases. In addition, other expenses fell by 2.7% year on year to 43円.4 billion
Summary
• Rising profits for the first time in six years, despite a decline in sales
In the electricity business:
— 
Electricity sales declined due to lower electricity sales volume, a decrease in charge unit prices prompted by falling fuel prices,
and other factors.
— 
Fuel costs and purchased power expenses declined due to a drop in fuel prices, a decrease in electricity demand, and other factors.
Financial Information
Management Discussion and Analysis39050150200100
’06 ’07 ’08 ’09
171.2
155.1
105.5
125.2
118.572.384.750.4’1099.767.6
(Billions of Yen)
Operating Income Ordinary Income
(Millions of kWh) (Thousands of kW)
Peak Load (Right) General Demand (Left) Large-scale Industrial (Left)030,000
20,000
10,000
50,000
70,000
40,000
60,000013,000
12,000
11,000
15,000
17,000
14,000
16,000
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
54,632
53,310
55,334
56,318
20,318
15,365
14,417
16,362
15,346
15,560
16,094 15,890
16,807 16,934 16,978
20,619
19,754
19,993
56,684
58,982
60,765
60,706
62,873
25,209
61,859
20,584
21,217
22,191
23,693
’10
16,013
60,985
22,407
24,024
Electricity Sales Volume (Millions of kWh) and Peak Load (Thousands of kW)
Millions of Yen
(except for per share data)
Thousands of U.S.Dollars
(except for per share data)
2005 2006 2007 2008 2009 2010 2010
\ 1,408,728 \ 1,401,752 \ 1,408,328 \ 1,482,352 \ 1,524,193 \ 1,444,941 15,530,321ドル
1,320,581 1,311,996 1,307,737 1,363,424 1,398,577 1,310,085 14,080,880
88,147 89,756 100,591 118,928 125,616 134,856 1,449,441
1,194,993 1,230,467 1,253,155 1,376,811 1,439,470 1,345,214 14,458,448
1,107,744 1,140,797 1,155,414 1,260,616 1,317,216 1,220,537 13,118,411
87,249 89,670 97,741 116,195 122,254 124,677 1,340,037
49,522 41,130 38,354 36,938 35,771 35,292 379,321
146,797 120,790 112,887 72,463 55,859 67,610 726,677
57,858 43,038 46,075 29,853 21,481 25,405 273,055
89,288 76,850 65,968 41,727 33,992 41,813 449,409
\ 187.91 \ 161.67 \ 139.37 \ 88.19 \ 71.84 \ 88.38 $ 0.95
— — — — — — —
60.00 60.00 60.00 60.00 60.00 60.00 0.64
\ 4,049,713 \ 4,102,319 \ 4,038,839 \ 4,059,775 \ 4,110,878 \ 4,054,192 43,574,721ドル
3,300,740 3,217,982 3,140,200 3,109,293 3,080,447 3,037,055 32,642,466
1,739,660 1,724,179 1,689,107 1,712,949 1,811,744 1,724,973 18,540,122
979,252 1,052,785 1,092,601 1,084,213 1,072,375 1,089,066 11,705,353
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.04 = U.S. 1,ドル the approximate rate of exchange at March 31, 2010.)
due to such factors as lower valuation losses on investment securities.
As a result, ordinary revenues fell by 5.1% from the previous year to 1,456円.2 billion, but ordinary
expenses decreased by 6.4% to 1,388円.6 billion, resulting in a 34.0% year-on-year increase in ordinary
income to 67円.6 billion, the first increase in ordinary income in five years.
Net income rose by 23.0% from the previous year to 41円.8 billion for the first rise in five years,
causing net earnings per share to rise 16円.54 to 88円.38.4040
Segment Information (Before Elimination of Internal Transactions)
(1) Electric Power
Sales volume in the electric power segment slipped by 1.4% from the previous year. General demand,
including domestic lighting and commercial demand, was affected by reduced cooling demand due
to lower temperatures in July compared to the previous year and a decline in demand from small
factories and retail business. Large industrial demand fell by 6.7%, as production cuts in the electrical
equipment, transport equipment and steel industries in the first half offset the revived production in
transport equipment, chemicals and non-ferrous metals in the second half. As a result, total sales
volume fell by 2.9% year on year to 83.39 billion kWh.
On the supply side, our nuclear facilities (power generation) and other facilities continued to
operate steadily, allowing us to maintain reliable sources of electric power. Analysis of the energy mix,
including power generated by Kyushu Electric Power and power purchased from other companies,
shows nuclear power to account for 42%, thermal power for 50%, hydroelectric for 5% and new energy
sources for 3%.
For the electric power segment, operating revenues fell by 6.3% from the previous year to 1,312円.1
billion, owing to lower electricity sales volumes due to lower electricity demand and charge unit prices
prompted by falling fuel prices, while operating income grew by 11.9% year on year to 82円.9 billion,
due to lower fuel expenses and other factors.
(2) Energy-related Business
Operating revenues in the energy-related segment were up 4.2% year on year to 163円.8 billion, owing
to completed construction projects, such as wind power generation projects, and increases in revenues
from ship leasing in conjunction with putting an LNG carrier into service, while revenues were down
from declines in gas sales prices. Operating income fell by 2.6% from the previous year to 7円.4 billion
due to increased depreciation expenses and other factors.
(3) IT and Telecommunications
Operating revenues increased 6.9% year on year to 99円.1 billion. This increase is attributable to
increases in the number of broadband service lines in operation and telecommunications equipment
sales. Operating income jumped by 712.5% over the previous year to 6円.3 billion as a result of
increased operating revenues and decreased depreciation expenses.03009001,5006001,20004012020080160
’09
’07 ’08
’06
1,310.194.31,365.774.11,400.7
144.2
1,314.3
162.9
’1082.91,312.1
Sales (Left) Operating Income (Right)
Electric Power (Billions of Yen)08016040120036129
’09
’07
’06 ’08
128.38.5147.07.5157.26.8123.84.6’107.4163.8
Sales (Left) Operating Income (Right)
Energy-related Business (Billions of Yen)-20200601004080-20261048
’09
’07 ’08
’0676.4-1.60.788.492.7-1.373.7-0.6
’106.399.1
Sales (Left) Operating Income (Right)
IT and Telecommunications (Billions of Yen)
Electric Power (Left) Other (Right)03009001,5006001,2000309015060120
’01
’00 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
1,410.0
1,392.1
1,381.4
1,350.670.638.336.476.6
1,308.8
1,320.5
1,311.9
1,307.7
1,363.4
118.9
1,398.5
125.682.888.189.7105.0
’10
1,310.0
134.8
Trends of Operating Revenues by Segments (after eliminating internal transactions) (Billions of Yen)41(4) Other Activities
Other business showed an 8.7% year-on-year increase in operating revenues to 26円.5 billion from
increased revenues from real estate sales, while operating income jumped by 94.8% to 3円.2 billion as
a result of reduced expenses related to real estate leasing and other factors.
Financial Position
(1) Cash Flows
Cash flows from operating activities increased by 42.2% from the previous year to an inflow of 351円.4
billion. The primary causes were lower cash outflows for fuel expenses and purchased power costs
combined with lower cash inflows from electric lighting and power in the electric power business.
Cash flows for investment activities decreased by 9.4% year on year to a 235円.3 billion outflow.
This increase is attributable to reduced capital investments and other factors.
Cash flows for financing activities amounted to a 135円.9 billion outflow (42円.0 billion inflow in the
previous year).
Based on the figures above, cash and cash equivalents on March 31, 2010, stood at 68円.1 billion,
a 19円.9 billion decrease from the end of the previous year.
(2) Assets, Liabilities and Net Assets
Total assets at the end of the year in review were 4,054円.1 billion, a 1.4% decrease since the end of
the previous year. Major factors behind this fall include additional accumulated depreciation for fixed
assets and reduced cash and cash equivalents for current assets.
Total liabilities at the end of the year under review decreased by 2.4% compared to the previous
year to 2,965円.1 billion, owing to such factors as a decrease in interest-bearing debt. Outstanding
interest-bearing debt decreased 105円.8 billion to 2,004円.7 billion.
In spite of a reduction in net assets from the payment of cash dividends, net assets rose by 1.6%
from the end of the previous year to 1,089円.0 billion due to the recording of a net profit for the term.
The equity ratio was 26.4%.01030200264
’09
’07 ’08
’0625.93.424.81.624.44.220.13.0
’103.226.5
Sales (Left) Operating Income (Right)
Other Activities (Billions of Yen)02684’06 ’07 ’08 ’097.66.23.9’103.23.9
ROE (%)0123
’06 ’07 ’08 ’092.72.41.7’101.31.6
ROA (%)
Total Assets (Left) Interest-bearing Debt (Left) Shareholders’ Equity (Left) Equity Ratio (Right)01,000
3,000
5,000
2,000
4,0000618301224
’01
’00 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
4,166.4
4,141.7
4,290.1
4,204.5
2,503.7
2,603.9
2,692.5
2,699.6
4,114.3
4,049.7
4,102.3
4,038.8
4,059.7
2,040.0
2,336.2
2,139.4
2,104.9
2,031.7
840.2
810.0
725.5
824.9
1,067.0
4,110.8
2,110.6
1,054.7
910.8
979.2
1,052.7
1,081.619.417.519.220.022.124.225.726.8 26.3 25.7
’10
4,054.1
2,004.7
1,071.726.4Consolidated Interest-bearing Debt and Equity Ratio (Billions of Yen, %)4242
Business Risk Factors
The following is a list of some significant risk factors that may have an effect on the operating results, financial position and other
aspects of the Group (consolidated). The statements made in this report regarding our future operations are forward-looking statements
made in light of information available as of June 29, 2010.
The Kyushu Electric Power Group is undertaking numerous measures to combat global warming. One key measure is to maintain a high utilization rate as a
result of nuclear power safety and stable operations. Other initiatives include maintenance and enhancement of thermal power efficiency, reduced losses in the
transmission network and the active development and introduction of renewable power. However, Group performance may be affected by the increased cost
burden from policy trends related to global warming.
Costs of Measures to Fight Global Warming4The sales volume in the electric power business reflects economic conditions and seasonal changes in temperatures. These factors may have a material impact
on the results and financial condition of the Kyushu Electric Power Group.
Risks Related to Economic Conditions and Weather Conditions1Fuel expenses in electricity business fluctuate as a result of trends in CIF prices and in the foreign exchange markets because we procure sources of fuel for
thermal power generation including liquefied natural gas (LNG) and coal from overseas.
However, fluctuations in fuel prices are reflected in electric rates through the fuel cost adjustment system, which in our opinion helps to limit the impact of
fuel price volatility on the Kyushu Electric Power Group.
Risks Related to the Fluctuation of Fuel Prices2The uncertainties in the long-term prospects of nuclear fuel cycle operations pose a risk, but operator risk is being reduced through measures proposed by the
Japanese government. However, Group performance could be affected by the burden of increased costs based on revised cost estimates for future expenses.
Risks Related to Costs of Nuclear Fuel Cycle Operations343
The Kyushu Electric Power Group is enhancing its revenue basis by utilizing the group’s management resources and proactively developing new business area
beyond electricity business. In the business operation, we put emphasis on the profitability and work to improve efficiency while pursuing the growth. In case
securing the planned profits cannot be achieved due to the worsening business conditions, the Kyushu Electric Power Group’s performance may be affected.
Risks Related to Businesses Other than Electricity5The Kyushu Electric Power Group’s balance of interest-bearing debt as of the end of March 2010 is 2,004円.7 billion, which accounts for 49% of total assets of
the group. Future changes in interest rates have potential to affect the Kyushu Electric Power Group’s financial condition.
However, 94% of outstanding interest-bearing debt comprises long-term debt, and most of these bear interest at fixed rates. The impact of fluctuating
interest rates on Kyushu Electric Power Group is therefore viewed as limited.
Risks Related to Interest Rates6The Kyushu Electric Power Group has established strict internal frameworks to manage in-house information and personal information, which Group companies
hold, to ensure information security. Additionally, we have implemented thorough information management by establishing internal policies and guidelines on
handling information as well as familiarizing employees with the handling procedures. However, in case of the leaking of in-house information and personal
information, the Kyushu Electric Power Group’s operation may be affected.
Related to the Leaking of Information7To ensure a stable supply of electricity to our customers, the Kyushu Electric Power Group implements inspection and maintenance of the facilities systematically
to prevent any trouble from occurring. However, large-scaled natural disasters such as typhoons, torrential rains and earthquakes as well as unexpected
accidents and illicit acts have the potential to affect the Kyushu Electric Power Group’s operations.
We are also developing a risk management system and are preparing for numerous risks that may have a material impact on business operations. Improper
actions taken in response to an emergency situation may adversely affect the Kyushu Electric Power Group’s business performance.
Risks Related to Natural Disasters84444Consolidated Balance Sheets
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
March 31, 2010 and 2009
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2010 2009 2010
ASSETS
PROPERTY (Note 3):
Plant and equipment \ 9,213,586 \ 9,123,680 $ 99,028,224
Construction in progress 247,078 212,169 2,655,611
Total 9,460,664 9,335,849 101,683,835
Less-
Contributions in aid of construction 150,818 148,728 1,621,001
Accumulated depreciation 6,272,791 6,106,674 67,420,368
Total 6,423,609 6,255,402 69,041,369
Net property 3,037,055 3,080,447 32,642,466
NUCLEAR FUEL 269,663 264,205 2,898,356
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 4 and 14) 87,237 82,988 937,629 Investments in and advances to non-consolidated subsidiaries and
affiliated companies (Note 14)
75,946 69,618 816,272
Reserve funds for reprocessing of irradiated nuclear fuel (Notes 8 and 14) 167,770 136,012 1,803,203
Deferred tax assets (Note 10) 119,709 117,744 1,286,640
Other assets 18,851 34,405 202,612
Total investments and other assets 469,513 440,767 5,046,356
CURRENT ASSETS:
Cash and cash equivalents (Note 14) 68,178 88,124 732,782
Receivables (Note 14) 110,592 126,857 1,188,650
Allowance for doubtful accounts (1,080) (1,286) (11,608)
Inventories, principally fuel 63,846 76,481 686,221
Deferred tax assets (Note 10) 16,567 16,285 178,063
Prepaid expenses and other 19,858 18,998 213,435
Total current assets 277,961 325,459 2,987,543
TOTAL \ 4,054,192 \ 4,110,878 $ 43,574,721
See notes to consolidated financial statements.45Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2010 2009 2010
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion (Notes 6 and 14) \ 1,724,973 \ 1,811,744 $ 18,540,122
Liability for employees’ retirement benefits (Note 7) 141,699 137,684 1,522,990
Reserve for reprocessing of irradiated nuclear fuel (Note 8) 369,220 366,437 3,968,401
Reserve for decommissioning of nuclear power units 164,931 155,838 1,772,689
Other 32,081 34,666 344,809
Total long-term liabilities 2,432,904 2,506,369 26,149,011
CURRENT LIABILITIES:
Current portion of long-term debt (Notes 6 and 14) 174,799 169,264 1,878,751
Short-term borrowings (Notes 9 and 14) 111,887 133,645 1,202,569
Notes and accounts payable (Notes 13 and 14) 99,838 92,157 1,073,065
Accrued income taxes (Note 14) 21,344 3,220 229,407
Accrued expenses 80,398 86,632 864,123
Other 43,956 47,216 472,442
Total current liabilities 532,222 532,134 5,720,357
COMMITMENTS AND CONTINGENCIES (Note 16)
EQUITY (Note 11): Common stock, authorized, 1,000,000,000 shares;
issued, 474,183,951 shares in 2010 and 2009
237,305 237,305 2,550,570
Capital surplus 31,141 31,147 334,706
Retained earnings 788,538 775,130 8,475,258
Unrealized gain on available-for-sale securities 16,383 13,099 176,086
Deferred gain on derivatives under hedge accounting 1,880 1,393 20,206
Foreign currency translation adjustments (1,290) (1,341) (13,865)
Treasury stock-at cost 1,110,624 shares in 2010 and 1,024,166 shares in 2009 (2,165) (2,000) (23,270)
Total 1,071,792 1,054,733 11,519,691
Minority interests 17,274 17,642 185,662
Total equity 1,089,066 1,072,375 11,705,353
TOTAL \ 4,054,192 \ 4,110,878 $ 43,574,7214646
Consolidated Statements of Income
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2010 and 2009
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2010 2009 2010
OPERATING REVENUES:
Electric \ 1,310,085 \ 1,398,577 $ 14,080,880
Other 134,856 125,616 1,449,441
Total operating revenues 1,444,941 1,524,193 15,530,321
OPERATING EXPENSES (Note 12):
Electric 1,220,537 1,317,216 13,118,411
Other 124,677 122,254 1,340,037
Total operating expenses 1,345,214 1,439,470 14,458,448
OPERATING INCOME 99,727 84,723 1,071,873
OTHER EXPENSES (INCOME):
Interest charges 35,292 35,771 379,321
Gain on sales of investment securities (5,400)
Other-net (3,175) (1,507) (34,125)
Total other expenses-net 32,117 28,864 345,196
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 67,610 55,859 726,677
INCOME TAXES (Note 10):
Current 29,646 14,587 318,637
Deferred (4,241) 6,894 (45,582)
Total income taxes 25,405 21,481 273,055
INCOME BEFORE MINORITY INTERESTS IN NET INCOME OF
CONSOLIDATED SUBSIDIARIES
42,205 34,378 453,622
MINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIES (392) (386) (4,213)
NET INCOME \ 41,813 \ 33,992 $ 449,409
Yen U.S. Dollars
PER SHARE OF COMMON STOCK (Note 2.q.):
Basic net income \ 88.38 \ 71.84 $ 0.95
Cash dividends applicable to the year 60.00 60.00 0.64
See notes to consolidated financial statements.47Consolidated Statements of Changes in Equity
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2010 and 2009
Thousands of Shares / Millions of Yen
Common Stock
Capital
Surplus
Retained
Earnings
Unrealized
Gain on
Available-for-
sale Securities
Deferred Gain
on Derivatives
under Hedge
Accounting
Foreign
Currency
Translation
Adjustments
Treasury Stock
Total Minority
Interests Total Equity
Shares Amount Shares Amount
BALANCE AT MARCH 31, 2008 474,184 \ 237,305 \ 31,141 \ 769,542 \ 28,004 \ 3,332 \ (282) 1,028 \ (1,995) \ 1,067,047 \ 17,166 \ 1,084,213
Net income 33,992 33,992 33,992
Cash dividends, 60円 per share (28,404) (28,404) (28,404)
Purchase of treasury stock 111 (276) (276) (276)
Disposal of treasury stock 6 (115) 271 277 277
Net change in the year (14,905) (1,939) (1,059) (17,903) 476 (17,427)
BALANCE AT MARCH 31, 2009 474,184 237,305 31,147 775,130 13,099 1,393 (1,341) 1,024 (2,000) 1,054,733 17,642 1,072,375
Net income 41,813 41,813 41,813
Cash dividends, 60円 per share (28,405) (28,405) (28,405)
Purchase of treasury stock 101 (200) (200) (200)
Disposal of treasury stock (6) (14) 35 29 29
Net change in the year 3,284 487 51 3,822 (368) 3,454
BALANCE AT MARCH 31, 2010 474,184 \ 237,305 \ 31,141 \ 788,538 \ 16,383 \ 1,880 \ (1,290) 1,111 \ (2,165) \ 1,071,792 \ 17,274 \ 1,089,066
Thousands of U.S. Dollars (Note 1)
Common
Stock
Capital
Surplus
Retained
Earnings
Unrealized
Gain on
Available-for-
sale Securities
Deferred Gain
on Derivatives
under Hedge
Accounting
Foreign
Currency
Translation
Adjustments
Treasury
Stock Total Minority
Interests Total Equity
BALANCE AT MARCH 31, 2009 $ 2,550,570 $ 334,770 $ 8,331,148 $ 140,789 $ 14,972 $ (14,413) $ (21,496) $ 11,336,340 $ 189,617 $ 11,525,957
Net income 449,409 449,409 449,409
Cash dividends, 0ドル.64 per share (305,299) (305,299) (305,299)
Purchase of treasury stock (2,150) (2,150) (2,150)
Disposal of treasury stock (64) 376 312 312
Net change in the year 35,297 5,234 548 41,079 (3,955) 37,124
BALANCE AT MARCH 31, 2010 $ 2,550,570 $ 334,706 $ 8,475,258 $ 176,086 $ 20,206 $ (13,865) $ (23,270) $ 11,519,691 $ 185,662 $ 11,705,353
See notes to consolidated financial statements.4848
Consolidated Statements of Cash Flows
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2010 and 2009
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2010 2009 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes and minority interests \ 67,610 \ 55,859 $ 726,677
Adjustments for:
Income taxes-paid (11,188) (15,946) (120,249)
Depreciation and amortization 256,700 252,431 2,759,028
Provision for (reversal of) liability for employees’ retirement benefits 4,015 (12,829) 43,153
Provision for reserve for reprocessing of irradiated nuclear fuel 2,783 3,611 29,912
Provision for reserve for decommissioning of nuclear power units 9,093 8,309 97,732
Loss on disposal of plant and equipment 8,953 9,537 96,228
Gain on sales of investment securities (5,400) Changes in assets and liabilities, net of effects from
merger of a non-consolidated subsidiary with a consolidated subsidiary:
Increase in reserve funds for reprocessing of irradiated nuclear fuel (31,758) (31,272) (341,337)
Decrease in trade receivables 16,249 4,315 174,645
Decrease (increase) in inventories 12,635 (11,366) 135,802
Increase (decrease) in trade payables 2,173 (23,117) 23,356
Other-net 14,173 12,963 152,332
Total adjustments 283,828 191,236 3,050,602
Net cash provided by operating activities 351,438 247,095 3,777,279
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel (235,613) (258,530) (2,532,384)
Payments for investments and advances (13,296) (20,064) (142,906)
Proceeds from sales of investment securities and collections of advances 9,451 10,246 101,580
Other-net 4,107 8,514 44,142
Net cash used in investing activities (235,351) (259,834) (2,529,568)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bonds 59,803 204,380 642,766
Repayments of bonds (50,000) (100,000) (537,403)
Proceeds from long-term bank loans 25,230 61,778 271,174
Repayments of long-term bank loans (119,324) (74,322) (1,282,502)
Net decrease in short-term borrowings (21,758) (9,812) (233,856)
Net decrease in commercial paper (12,000)
Cash dividends paid (28,398) (28,413) (305,224)
Other-net (1,526) 479 (16,402)
Net cash provided by (used in) financing activities (135,973) 42,090 (1,461,447)
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS (60) (40) (645)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (19,946) 29,311 (214,381)
CASH AND CASH EQUIVALENTS OF A NON-CONSOLIDATED SUBSIDIARY
MERGED WITH A CONSOLIDATED SUBSIDIARY 46
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 88,124 58,767 947,163
CASH AND CASH EQUIVALENTS AT END OF YEAR \ 68,178 \ 88,124 $ 732,782
See notes to consolidated financial statements.49Notes to Consolidated Financial Statements
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2010 and 2009
Kyushu Electric Power Company, Incorporated (the "Company") has prepared the
accompanying consolidated financial statements in accordance with the provisions
set forth in the Japanese Financial Instruments and Exchange Act, the Electricity
Business Act and their related accounting regulations and in conformity with
accounting principles generally accepted in Japan ("Japanese GAAP"), which
are different in certain respects as to application and disclosure requirements of
International Financial Reporting Standards. Especially accounting related to the
nuclear power generation is regulated by the above accounting regulations which
are dependent on a governmental long term nuclear energy policy.
In preparing these consolidated financial statements, certain reclassifications
and rearrangements have been made to the consolidated financial statements
issued domestically in order to present them in a form which is more familiar to
readers outside Japan. In addition, certain reclassifications have been made to the
consolidated financial statements for the year ended March 31, 2009 to conform to
the classifications used in the consolidated financial statements for the year ended
March 31, 2010.
The United States dollar amounts included herein are provided solely for
the convenience of readers and are stated at the rate of 93円.04 = U.S. 1,ドル the
approximate exchange rate prevailing on March 31, 2010. The translations should
not be construed as representations that the Japanese yen amounts could be
converted into United States dollars at that or any other rate.
1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
a. Consolidation and Application of the Equity Method — The consolidated
financial statements as of March 31, 2010 include the accounts of the Company
and its thirty-four (thirty-three for 2009) subsidiaries (together, the "Companies").
All significant intercompany transactions and balances have been eliminated in
consolidation. Investments in eighteen (nineteen for 2009) non-consolidated
subsidiaries and thirteen affiliated companies are accounted for by the equity method.
The Company adopts the control or influence concept. Under the concept,
those companies in which the Company, directly or indirectly, is able to exercise
control over operations are treated as subsidiaries and those companies over
which the Companies have the ability to exercise significant influence are treated
as affiliated companies.
The difference between the cost of an acquisition and the fair value of the net
assets of the acquired subsidiary at the date of acquisition is being amortized over
a period of five years.
Consolidation of the remaining subsidiaries and the application of the equity
method to the remaining affiliated companies would not have a material effect on
the accompanying consolidated financial statements.
b. Property and Depreciation — Property is stated at cost. Contributions in
aid of construction including those made by customers are deducted from the cost
of the related assets.
Depreciation is principally computed using the declining-balance method
based on the estimated useful lives of the assets. Depreciation of easements is
computed using the straight-line method based on the estimated useful lives of the
transmission lines.
c. Impairment of Fixed Assets — The Companies review their fixed assets for
impairment whenever events or changes in circumstance indicate the carrying amount
of an asset or asset group may not be recoverable. An impairment loss would be
recognized if the carrying amount of an asset or asset group exceeds the sum of the
undiscounted future cash flows expected to result from the continued use and eventual
disposition of the asset or asset group. The impairment loss would be measured as
the amount by which the carrying amount of the asset exceeds its recoverable amount,
which is the higher of the discounted cash flows from the continued use and eventual
disposition of the asset or the net selling price at disposition.
d. Amortization of Nuclear Fuel — Amortization of nuclear fuel is computed
based on the proportion of current heat produced to the estimated total potential
heat production over the estimated useful life of the nuclear fuel.
e. Investment Securities — Investment securities are classified and accounted
for, depending on management’s intent, as follows:
i) held-to-maturity debt securities are stated at cost with discounts or premiums
amortized throughout the holding periods; ii) available-for-sale securities, which
are not classified as the aforementioned securities and investment securities in
non-consolidated subsidiaries and affiliated companies, are stated at market value;
and securities without market value are stated at cost.
The Companies record unrealized gains or losses on available-for-sale
securities, net of deferred taxes, in equity presented as "Unrealized gain on
available-for-sale securities."
For other than temporary declines in fair value, investment securities are written
down to net realizable value by a charge to income.
f. Cash Equivalents — Cash equivalents are short-term investments that are
readily convertible into cash and that are exposed to insignificant risk of changes in
value. Cash equivalents include time deposits and mutual funds investing in bonds
that represent short-term investments, all of which mature or become due within
three months of the date of acquisition.
g. Inventories — Inventories are stated at the lower of cost, principally
determined by the average method, or net selling value.
h. Foreign Currency Transactions — Receivables and payables denominated
in foreign currencies are translated into Japanese yen at the rates in effect as of the
each balance sheet date.
i. Foreign Currency Financial Statements — The balance sheet accounts of
foreign subsidiaries and foreign affiliated companies, which are not consolidated
but accounted for by the equity method, are translated into Japanese yen at the
current exchange rate as of the balance sheet date except for equity, which is
translated at the historical rate.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES5050
 Differences arising from such translation were shown as "Foreign currency
translation adjustments" in a separate component of equity.
j. Derivatives and Hedging Activities — Derivative financial instruments
and foreign currency transactions are classified and accounted for as follows: a)
all derivatives are recognized as either assets or liabilities and measured at fair
value, and gains or losses on derivative transactions are recognized in the income
statement and b) for derivatives used for hedging purposes, if derivatives qualify
for hedge accounting because of high correlation and effectiveness between the
hedging instruments and the hedged items, gains or losses on derivatives are
deferred until maturity of the hedged transactions.
Liabilities denominated in foreign currencies for which foreign exchange
forward contracts and currency swaps are used to hedge the foreign currency
fluctuations are translated at the contracted rate if the forward contracts
and currency swaps qualify for hedge accounting. Forward contracts and
currency swaps applied for committed transactions are measured at the fair
value and the unrealized gains / losses are deferred until the underlying
transactions are completed.
The interest rate swaps which qualify for hedge accounting and meet
specific matching criteria are not remeasured at market value but the
differential paid or received under the swap agreements are recognized and
included in interest charges.
k. Severance Payments and Pension Plans — The Companies have
unfunded retirement plans for most of their employees and the Company and most
of the consolidated subsidiaries also have contributory funded defined benefit
pension plans covering substantially all of their employees.
The Companies account for the liability for employees’ retirement benefits
based on the projected benefit obligations and plan assets of the pension fund at
the end of the fiscal year.
l. Reserve for Reprocessing of Irradiated Nuclear Fuel — This reserve is
provided for reprocessing costs of irradiated nuclear fuel. The annual provision
is calculated in accordance with the accounting regulations set by the Japanese
Government applicable to electric utility providers in Japan.
m. Reserve for Decommissioning of Nuclear Power Units — Provision is
made for future disposition costs of nuclear power units based on a proportion of
the current generation of electric power to the estimated total life-time generation of
electric power of each unit.
n. Income Taxes — The provision for income taxes is computed based on the
pretax income included in the consolidated statements of income. The asset and
liability approach is used to recognize deferred tax assets and liabilities for the
expected future tax consequences of temporary differences between the carrying
amounts and the tax bases of assets and liabilities. Deferred taxes are measured by
applying currently enacted tax laws to the temporary differences.
o. Reserve for Fluctuations in Water Level — This reserve is provided to
stabilize the Company’s income level based on the Electricity Business Act and
related accounting regulations. This reserve is recorded when the volume of water
for generating hydroelectric power is abundant and available for future power
generation, and reversed in years when there is an insufficient volume of water.
Also this reserve must be shown as a liability under the act and regulations. Neither
provision nor reversal of the reserve was made for the years ended March 31, 2010
and 2009.
p. Treasury Stock — The accounting standard for treasury stock requires that
where an affiliated company holds a parent company’s stock, a portion which is
equivalent to the parent company’s interest in such stock should be presented as
treasury stock as a separate component of equity and the carrying value of the
investment in the affiliated company should be reduced by the same amount.
q. Net Income and Cash Dividends per Share — Basic earnings per share
("EPS") is computed by dividing net income available to common shareholders
by the weighted-average number of common shares outstanding during the year
and diluted EPS reflects the potential dilution that could occur if securities were
exercised or converted into common stock.
Diluted EPS is not disclosed for the years ended March 31, 2010 and 2009,
because potentially dilutive securities were not outstanding.
Cash dividends per share represent actual amounts applicable to earnings of
the respective years.
r. Construction Contracts — In December 2007, the Accounting Standards
Board of Japan (the "ASBJ") issued ASBJ Statement No.15 "Accounting
Standard for Construction Contracts" and ASBJ Guidance No.18 "Guidance on
Accounting Standard for Construction Contracts". Under the previous Japanese
GAAP, either the completed-contract method or the percentage-of-completion
method was permitted to account for construction contracts. Under this new
accounting standard, the construction revenue and construction costs should
be recognized by the percentage-of-completion method, if the outcome of a
construction contract can be estimated reliably. When total construction revenue,
total construction costs and the stage of completion of the contract at the balance
sheet date can be reliably measured, the outcome of a construction contract
can be estimated reliably. If the outcome of a construction contract cannot be
reliably estimated, the completed-contract method should be applied. When it is
probable that the total construction costs will exceed total construction revenue,
an estimated loss on the contract should be immediately recognized by providing
for a loss on construction contracts. This standard is applicable to construction
contracts and software development contracts and effective for fiscal years
beginning on or after April 1, 2009.
The Companies applied the new accounting standard effective April 1, 2009.
The effect of this change was immaterial.
s. Research and Development Costs — Research and development costs are
charged to income as incurred.
t. New Accounting Pronouncements
Asset Retirement Obligations — In March 2008, the ASBJ published a new
accounting standard for asset retirement obligations, ASBJ Statement No.18
"Accounting Standard for Asset Retirement Obligations" and ASBJ Guidance No.21
"Guidance on Accounting Standard for Asset Retirement Obligations". Under this
accounting standard, an asset retirement obligation is defined as a legal obligation
imposed either by law or contract that results from the acquisition, construction,51development and the normal operation of a tangible fixed asset and is associated
with the retirement of such tangible fixed asset. The asset retirement obligation is
recognized as the sum of the discounted cash flows required for the future asset
retirement and is recorded in the period in which the obligation is incurred if a
reasonable estimate can be made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement obligation is incurred,
the liability should be recognized when a reasonable estimate of asset retirement
obligation can be made. Upon initial recognition of a liability for an asset retirement
obligation, an asset retirement cost is capitalized by increasing the carrying amount
of the related fixed asset by the amount of the liability. The asset retirement cost is
subsequently allocated to expense through depreciation over the remaining useful
life of the asset. Over time, the liability is accreted to its present value each period.
Any subsequent revisions to the timing or the amount of the original estimate of
undiscounted cash flows are reflected as an increase or a decrease in the carrying
amount of the liability and the capitalized amount of the related asset retirement
cost. This standard is effective for fiscal years beginning on or after April 1, 2010.
The Japanese government revised the accounting regulations applicable to electric utility providers in Japan. The revisions were effective on or after April 1, 2009. The
revised accounting regulations require presentation of wind power, solar power, geothermal power, biomass power, and waste power production facilities as "renewable
power production facilities". The breakdown of property as of March 31, 2010 and 2009 was as follows:
3. PROPERTY
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Costs:
Electric power production facilities:
Hydroelectric power \ 734,019 \ 730,137 $ 7,889,284
Thermal power 1,459,043 1,459,189 15,681,890
Nuclear power 1,564,071 1,552,174 16,810,737
Internal-combustion engine power 126,269 125,791 1,357,147
Renewable power 99,217 98,581 1,066,391
3,982,619 3,965,872 42,805,449
Transmission facilities 1,628,237 1,604,431 17,500,398
Transformation facilities 960,966 948,069 10,328,525
Distribution facilities 1,329,468 1,314,803 14,289,209
General facilities 379,864 373,580 4,082,803
Other electricity-related facilities 41,456 64,561 445,572
Other plant and equipment 890,976 852,364 9,576,268
Construction in progress 247,078 212,169 2,655,611
Total 9,460,664 9,335,849 101,683,835
Less contributions in aid of construction 150,818 148,728 1,621,001
Less accumulated depreciation 6,272,791 6,106,674 67,420,368
Carrying amount \ 3,037,055 \ 3,080,447 $ 32,642,4665252
The costs and aggregate fair values of investment securities at March 31, 2010 and 2009 were as follows:
4. INVESTMENT SECURITIES
Millions of Yen
March 31, 2010 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities \ 14,530 \ 27,041 \ 801 \ 40,770
Debt securities 2,119 32 829 1,322
Other securities 431 10 27 414
Held-to-maturity 7,074 52 733 6,393
March 31, 2009
Securities classified as:
Available-for-sale:
Equity securities \ 14,460 \ 22,666 \ 1,183 \ 35,943
Debt securities 2,319 957 1,362
Other securities 557 2 64 495
Held-to-maturity 5,835 14 1,047 4,802
Thousands of U.S. Dollars
March 31, 2010 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities $ 156,169 $ 290,638 $ 8,609 $ 438,198
Debt securities 22,775 344 8,910 14,209
Other securities 4,632 108 290 4,450
Held-to-maturity 76,032 559 7,879 68,712
Millions of Yen
2009
Available-for-sale:
Equity securities \ 35,924
Other securities 2,091
Held-to-maturity 1,338
Total \ 39,353
Available-for-sale securities and held-to-maturity debt securities whose fair value is not readily determinable as of March 31, 2009 were as follows. The similar information
for 2010 is disclosed in Note 14.
All of the Company’s assets amounting to 3,776,569円 million (40,590,810ドル
thousand) are subject to certain statutory preferential rights established to secure
bonds and loans borrowed from The Development Bank of Japan Inc. and bonds
transferred to banks under debt assumption agreements (see Note 16).
Certain assets of the consolidated subsidiaries, amounting to 69,855円 million
(750,806ドル thousand), are pledged as collateral for a portion of their long-term debt
at March 31, 2010.
Investments in affiliated companies held by a consolidated subsidiary,
amounting to 24,832円 million (266,896ドル thousand), are pledged as collateral for
bank loans of the affiliated companies and the subsidiary of the affiliated company
at March 31, 2010.
5. PLEDGED ASSETS53Year ending March 31 Millions of Yen Thousands of U.S. Dollars
2011 \ 174,799 $ 1,878,751
2012 228,169 2,452,375
2013 178,570 1,919,282
2014 219,522 2,359,437
2015 167,153 1,796,571
Thereafter 931,559 10,012,457
Total \ 1,899,772 $ 20,418,873
The annual maturities of long-term debt outstanding at March 31, 2010 were as follows:
Long-term debt consisted of the following at March 31, 2010 and 2009:
6. LONG-TERM DEBT
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Yen bonds, 0.73% to 3.65%, due serially to 2024 \ 1,262,514 \ 1,252,486 $ 13,569,583
Swiss franc bonds, 2.625%, due 2014 18,939 18,965 203,558
Loans from The Development Bank of Japan Inc., 0.69% to 6.1%, due serially to 2028 175,391 202,521 1,885,114
Loans, principally from banks and insurance companies, 0.25% to 3.51%, due serially to 2025
Collateralized 31,224 34,392 335,597
Unsecured 404,771 468,603 4,350,505
Obligations under finance leases 6,933 4,041 74,516
Total 1,899,772 1,981,008 20,418,873
Less current portion 174,799 169,264 1,878,751
Long-term debt, less current portion \ 1,724,973 \ 1,811,744 $ 18,540,122
Employees terminating their employment with the Companies, either voluntarily or
upon reaching mandatory retirement age, are entitled, under most circumstances,
to severance payments based on credits earned in each year of service, length of
service and certain other factors. As for the Company, if the termination is made
voluntarily at one of a number of specified ages, the employee is entitled to certain
additional payments.
Additionally, the Company and most of the consolidated subsidiaries have
contributory funded defined benefit pension plans covering substantially all
of their employees. In general, eligible employees retiring at the mandatory
retirement age receive pension payments for the several fixed terms selected by
them. As for the Company, eligible employees retiring after at least 20 years of
service but before the mandatory retirement age, receive a lump-sum payment
upon retirement and annuities.
7. SEVERANCE PAYMENTS AND PENSION PLANS
The liability for employees’ retirement benefits at March 31, 2010 and 2009 consisted of the followings:
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Projected benefit obligation \ 492,766 \ 489,060 $ 5,296,281
Fair value of plan assets (327,610) (286,661) (3,521,174)
Unrecognized actuarial loss (23,763) (75,519) (255,406)
Unrecognized prior service cost (deduction of liability) 306 911 3,289
Prepaid pension cost 9,893
Net liability \ 141,699 \ 137,684 $ 1,522,9905454
The reserve is provided for reprocessing costs of irradiated nuclear fuel resulting
from operation of nuclear power production facilities. The annual provision is
calculated in accordance with the accounting regulations set by the Japanese
Government applicable to electric utility providers in Japan.
The reserve is consisted of three portions and each of them is calculated in
different ways.
(a) The costs reprocessed in Japan Nuclear Fuel Limited ("JNFL") are calculated
based on the expected future cash flows discounted at 1.3% and 1.5% at March
31, 2010 and 2009, respectively,
(b) the costs reprocessed in the other reprocessing companies are calculated based
on the quantities to be reprocessed as of each balance sheet date and contracted
reprocessing rate,
(c) the costs of irradiated nuclear fuels which have no authorized definite
reprocessing plan are calculated based on the expected future cash flows
discounted at 4.0%.
As of April 1, 2005, unrecognized prior costs of 130,495円 million, which had
not been recognized in the past as liability, were incurred because new accounting
regulations to estimate the reprocessing costs for irradiated nuclear fuel were
applicable on or after April 1, 2005. These costs were amortized on a straight-line
basis over 15 years. The Company recalculated an estimate in accordance with
a specific law. As a result, the unrecognized prior costs as of April 1, 2008 were
changed from 104,397円 million to 90,977円 million, and these costs are amortized
over 12 years, beginning on April 1, 2008. The balance of unrecognized past costs
as of March 31, 2010 was 75,815円 million (814,865ドル thousand). The Company is
permitted to recover these reprocessing costs by including them in the admitted
cost elements for electric rate.
In addition, if any changes are made in the assumptions for the calculations of the
reserve, such as expected future cash flows and the discount rate, unrecognized
difference might be incurred. The balance of unrecognized difference as of March
31, 2010 is a gain of 8,890円 million (95,550ドル thousand). In accordance with the
accounting regulations, the difference will be amortized on a straight-line basis
beginning the following year the change was made, over the period in which
the irradiated nuclear fuel was produced. The annual amortization is treated as
operating expenses.
An independent fund managing body was set up based on a specific law and
the Company is obliged to contribute the same amounts as the balance of reserve
for reprocessing of irradiated nuclear fuel to reserve funds in 15 years. The reserve
funds is provided to ensure the appropriate reprocessing of irradiated nuclear fuel
and presented as "Reserve funds for reprocessing of irradiated nuclear fuel."
8. RESERVE FOR REPROCESSING OF IRRADIATED NUCLEAR FUEL
The components of net periodic benefit costs for the years ended March 31, 2010 and 2009 are as follows:
Assumptions for actuarial computations for the years ended March 31, 2010 and 2009 are as follows:
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Service Cost \ 14,689 \ 15,273 $ 157,878
Interest Cost 9,606 9,624 103,246
Expected return on plan assets (678) (10,453) (7,287)
Recognized actuarial loss (gain) 10,328 (9,437) 111,006
Amortization of prior service cost (196) (7,859) (2,107)
Net periodic benefit costs \ 33,749 \ (2,852) $ 362,736
2010 2009
Discount rate 2.0% 2.0%
Expected rate of return on plan assets mainly 0.0% mainly 3.0%
Recognition period of actuarial gain / loss mainly 5 years mainly 5 years
Amortization period of prior service cost mainly 5 years mainly 5 years
Short-term borrowings are generally represented by bank loans, bearing interest at rates ranging from 0.43% to 1.88% and from 0.57% to 1.88% at March 31, 2010 and
2009, respectively.
9. SHORT-TERM BORROWINGS55The Companies are subject to national and local income taxes. The aggregate normal statutory tax rates for the Company approximated 36.1% for the years ended March 31, 2010 and 2009.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2010 and 2009 are as follows:
10. INCOME TAXES
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Deferred Tax Assets:
Pension and severance costs \ 51,858 \ 46,735 $ 557,373
Depreciation 33,816 33,245 363,457
Reserve for reprocessing of irradiated nuclear fuel 21,280 19,247 228,719
Reserve for decommissioning of nuclear power units 15,025 15,025 161,490 Unrealized profits arising from the elimination of
intercompany transactions in consolidation
9,644 9,381 103,654
Accrued bonus to employees 7,645 7,472 82,169
Tax loss carryforwards 5,429 7,508 58,351
Other 31,848 33,904 342,304
Less valuation allowance (28,089) (28,405) (301,902)
Deferred tax assets \ 148,456 \ 144,112 $ 1,595,615
Deferred Tax Liabilities:
Unrealized gain on available-for-sale securities \ 9,342 \ 7,611 $ 100,409
Deferred gain on derivatives under hedge accounting 1,402 1,049 15,069
Other 1,452 1,431 15,606
Deferred tax liabilities \ 12,196 \ 10,091 $ 131,084
Net deferred tax assets \ 136,260 \ 134,021 $ 1,464,531
A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statements of income for the year
ended March 31, 2009 was as follows:
Such reconciliation for the year ended March 31, 2010 is not disclosed because the difference between the normal effective statutory tax rate and the actual effective tax rate is immaterial.2009Normal effective statutory tax rate 36.1%
Expenses not deductible for income tax purposes 2.9
Increase in valuation allowance 2.6
Income not taxable for income tax purposes (1.8)
Tax credit for R&D (1.5)
Other-net 0.2
Actual effective tax rate 38.5%
Japanese companies are subject to the Companies Act of Japan (the "Companies
Act"). The significant provisions in the Companies Act that affect financial and
accounting matters are summarized below:
(a) Dividends Under the Companies Act, companies can pay dividends at any time during
the fiscal year in addition to the year-end dividend upon resolution at the
shareholders meeting. For companies that meet certain criteria such as; (1)
having the Board of Directors, (2) having independent auditors, (3) having
the Board of Corporate Auditors, and (4) the term of service of the directors
is prescribed as one year rather than two years of normal term by its articles
of incorporation, the Board of Directors may declare dividends (except for
11. EQUITY5656
On March 10, 2008, the ASBJ revised ASBJ Statement No.10 "Accounting Standard
for Financial Instruments" and issued ASBJ Guidance No.19 "Guidance on Accounting
Standard for Financial Instruments and Related Disclosures". This accounting standard
and the guidance are applicable to financial instruments and related disclosures at the
end of the fiscal years ending on or after March 31, 2010. The Companies applied the
revised accounting standard and the new guidance effective March 31, 2010.
Items Pertaining to Financial Instruments
(a) The Companies’ policy for financial instruments The Companies use financial instruments, mainly long-term debt including
bonds and loans, to raise funds required for investments in electric utility
plant and equipment, and repayments of bonds and loans. Cash surpluses,
if any, are invested in low risk financial assets. Derivatives are used, not for
speculative purposes, but to avoid financial risks as described in (b) below.
(b) 
Nature and extent of risks arising from financial instruments, and risk
control system Investment securities, mainly held-to-maturity debt securities and equity
securities issued by companies related through business, and investments
in and advances to non-consolidated subsidiaries and affiliated companies
which have a quoted market price in an active market, are exposed to the
risk of market price fluctuations. Such market risk is managed by monitoring
market values and financial position of issuers on a regular basis. Investment
securities and investments in and advances to non-consolidated subsidiaries
and affiliated companies which do not have a quoted market price in an active
market are managed by monitoring financial position of issuers on a regular
14. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Significant transactions of the Company with an affiliated company for the years ended March 31, 2010 and 2009 were as follows:
13. RELATED PARTY DISCLOSURES
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
KYUDENKO CORPORATION
Transactions:
Purchase of construction works on distribution facilities and other
\ 42,014 \ 44,584 $ 451,569
Balances at year end:
Payables for construction works
5,213 4,845 56,030
Research and development costs charged to income were 10,442円 million (112,231ドル thousand) and 10,292円 million for the years ended March 31, 2010 and 2009, respectively.
12. RESEARCH AND DEVELOPMENT COSTS
dividends in kind) at any time during the fiscal year if the Company has
prescribed so in its articles of incorporation. However, the Company cannot do
so because it does not meet all the above criteria. The Companies Act permits companies to distribute dividends-in-kind (non-cash
assets) to shareholders subject to a certain limitation and additional requirements. Semiannual interim dividends may also be paid once a year upon
resolution by the Board of Directors if the articles of incorporation of the
Company so stipulate. The Companies Act provides certain limitations
on the amounts available for dividends or the purchase of treasury stock.
The limitation is defined as the amount available for distribution to
the shareholders, but the amount of net assets after dividends must be
maintained at no less than 3円 million.
(b) 
Increases / decreases and transfer of common stock, reserve and surplus The Companies Act requires that an amount equal to 10% of dividends
must be appropriated as a legal reserve (a component of retained earnings)
or as additional paid-in capital (a component of capital surplus) depending
on the equity account charged upon the payment of such dividends until
the total of aggregate amount of legal reserve and additional paid-in capital
equals 25% of the common stock. Under the Companies Act, the total
amount of additional paid-in capital and legal reserve may be reversed
without limitation. The Companies Act also provides that common stock,
legal reserve, additional paid-in capital, other capital surplus and retained
earnings can be transferred among the accounts under certain conditions
upon resolution of the shareholders.
(c) Treasury stock and treasury stock acquisition rights The Companies Act also provides for companies to purchase treasury stock
and dispose of such treasury stock by resolution of the Board of Directors.
The amount of treasury stock purchased cannot exceed the amount available
for distribution to the shareholders which is determined by specific formula.
Under the Companies Act, stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides that companies can
purchase both treasury stock acquisition rights and treasury stock. Such
treasury stock acquisition rights are presented as a separate component of
equity or deducted directly from stock acquisition rights.57Millions of Yen
March 31, 2010 Carrying amount Fair value Unrecognized loss
Investment securities:
Held-to-maturity debt securities \ 7,074 \ 6,393 \ 681
Available-for-sale securities 42,506 42,506
Investments in and advances to non-consolidated subsidiaries and affiliated companies 17,890 12,574 5,316
Reserve funds for reprocessing of irradiated nuclear fuel 167,770 167,770
Cash and cash equivalents 68,178 68,178
Receivables 110,592 110,592
Total \ 414,010 \ 408,013 \ 5,997
Long-term debt:
Bonds \ 1,281,453 \ 1,328,114 \ 46,661
Loans 611,386 634,544 23,158
Short-term borrowings 111,887 111,887
Notes and accounts payable 99,838 99,838
Accrued income taxes 21,344 21,344
Total \ 2,125,908 \ 2,195,727 \ 69,819
Derivatives \ 3,126 \ 3,126
Thousands of U.S. Dollars
March 31, 2010 Carrying amount Fair value Unrecognized loss
Investment securities:
Held-to-maturity debt securities $ 76,032 $ 68,712 $ 7,320
Available-for-sale securities 456,857 456,857
Investments in and advances to non-consolidated subsidiaries and affiliated companies 192,283 135,146 57,137
Reserve funds for reprocessing of irradiated nuclear fuel 1,803,203 1,803,203
Cash and cash equivalents 732,782 732,782
Receivables 1,188,650 1,188,650
Total $ 4,449,807 $ 4,385,350 $ 64,457
Long-term debt:
Bonds $ 13,773,141 $ 14,274,656 $ 501,515
Loans 6,571,216 6,820,120 248,904
Short-term borrowings 1,202,569 1,202,569
Notes and accounts payable 1,073,065 1,073,065
Accrued income taxes 229,407 229,407
Total $ 22,849,398 $ 23,599,817 $ 750,419
Derivatives $ 33,599 $ 33,599
basis. In addition, the Company requires its non-consolidated subsidiaries and
affiliated companies to submit business plans and performance reports, and
to consult in advance on any items that could have a significant impact on the
Companies’ business activities. Reserve funds for reprocessing of irradiated nuclear fuel is provided in accordance
with a specific law to ensure the appropriate reprocessing of irradiated nuclear fuel
resulting from operation of nuclear power production facilities. Receivables are exposed to customer credit risk. Payment term is set forth in electric
power supply agreements and so on. The Companies manage their credit risk from
receivables by monitoring of payment term and balances of each customer and
identifying and reduction of the default risk of customers in early stage. Bonds and loans are mainly used to raise funds for investments in electric utility
plant and equipment. Bonds in a foreign currency are exposed to the market
risk of fluctuation in foreign currency exchange rates, which is mitigated by
using currency swaps. Although a part of loans are exposed to market risk from
changes in variable interest rates, a consolidated subsidiary of the Company
mitigates such risk from long-term loans by using interest rate swaps. Payments terms of notes and accounts payable are less than one year.
Although a part of accounts payable to purchase fuel in foreign currencies are
exposed to the market risk of fluctuations in foreign exchange and fuel price,
such risk is mitigated by using foreign exchange forward contracts, currency
swaps and energy swap agreements. The Companies use foreign exchange forward contracts, currency swaps,
interest rate swaps and energy swap agreements to manage their exposures to
fluctuations in foreign exchange, interest rates and fuel price, respectively. Please see Note 15 for more detail about derivatives. Liquidity risk comprises the risk that the Companies cannot meet their
contractual obligations in full on maturity dates. The Companies manage their
liquidity risk by holding adequate volumes of liquid assets based on monthly
financial planning and diversifying sources of their financing.
Fair values of financial instruments
The carrying amounts and aggregate fair values of financial instruments at March
31, 2010 were as follows:5858
The securities whose fair value cannot be reliably determined are excluded from
investment securities and investments in and advances to non-consolidated
subsidiaries and affiliated companies (see (b) below).
Advances are excluded from investments in and advances to non-consolidated
subsidiaries and affiliated companies because they are immaterial.
Long-term debt contains current portion of them, and obligations under finance
leases are excluded because they are immaterial.
Derivatives are stated at the net amount.
(a) Methods used to calculate fair values of financial instruments Investment securities, and investments in and advances to non-
consolidated subsidiaries and affiliated companies The fair values of investment securities and investments in and advances to
non-consolidated subsidiaries and affiliated companies are measured at the
quoted market price of the exchanges for the equity securities and some of
debt securities, and principally at the quoted price obtained from the financial
institution for other debt securities. The information of the fair values for the
investment securities by classification is included in Note 4. Reserve funds for reprocessing of irradiated nuclear fuel Reserve funds for reprocessing of irradiated nuclear fuel is provided in
accordance with a specific law to ensure the appropriate reprocessing of irradiated
nuclear fuel resulting from operation of nuclear power production facilities. The funds must be used in accordance with a plan approved by the Japanese
Government. The fair value is based on the carrying amount determined by
discounting the cash flows related to the using plan. Cash and cash equivalents, and receivables The carrying amounts of cash and cash equivalents, and receivables
approximate fair values because of their short maturities. Bonds The fair values of bonds are based on market price. Bonds denominated in
a foreign currency for which currency swaps are used to hedge the foreign
currency fluctuations (see Note 15) are treated as yen-denominated bonds. The
fair values are determined by discounting the cash flows related to the bonds at
the Company’s assumed corporate borrowing rate. Long-term loans The fair values of long-term loans at fixed interest rates are determined by
discounting the cash flows related to the loans at the Company’s assumed
corporate borrowing rate. Because loans at variable interest rates reflect short-
term movements in market interest rates and there has been no substantial
change in the Company’s credit position since the loans were implemented,
the carrying amounts approximate fair values. A part of loans are subjected
to interest rate swaps which qualify for hedge accounting and meet specific
matching criteria (see Note 15), the fair values are determined by discounting
the cash flows related to the loans with the interest rate swaps at the Company’s
assumed corporate borrowing rate. Short-term borrowings, notes and accounts payable, and accrued income taxes The carrying amounts of short-term borrowings, notes and accounts payable and
accrued income taxes approximate fair values because of their short maturities. Derivatives The information of the fair value for derivatives is included in Note 15.
Maturity analysis for financial assets and securities with contractual maturities
Millions of Yen
March 31, 2010
Due in one year or less
Due after one year
through five years
Due after five years
through ten years
Due after ten years
Investment securities:
Held-to-maturity debt securities \ 601 \ 2,179 \ 938 \ 3,356
Available-for-sale securities with contractual maturities 13 247 25 1,065
Reserve funds for reprocessing of irradiated nuclear fuel 29,396
Cash and cash equivalents 68,178
Receivables 110,592
Total \ 208,780 \ 2,426 \ 963 \ 4,421
(b) Financial instruments whose fair value cannot be reliably determined Millions of Yen
Thousands of
U.S. Dollars
2010 2010
Investment securities:
Available-for-sale:
Equity securities \ 35,696 $ 383,663
Other securities 1,961 21,077
Investments in and advances to non-consolidated subsidiaries and affiliated companies:
Equity securities 48,068 516,638
Other securities 7,400 79,536
Total \ 93,125 $
1,000,91459The Company enters into foreign exchange forward contracts, currency swaps,
interest rate swaps and energy swap agreements to manage its exposures to
fluctuations in foreign exchanges, interest rates and fuel price, respectively.
A consolidated subsidiary of the Company enters into interest rate swaps to
manage exposure to fluctuations in interest rates.
The Companies do not enter into derivatives for trading or speculative purposes.
Foreign exchange forward contracts, currency swaps, interest rate swaps and
energy swap agreements are not subject to any market risk except for abandoning
potential income by market fluctuations in hedged items.
The Companies do not anticipate any losses arising from credit risk which
is the possibility that a loss may result from counterparties’ failure to perform
according to the terms and conditions of the contract, because the counterparties
to those derivatives have high credit ratings.
The derivative transactions are executed by the specific sections and
administrative section monitors them based on internal policies.
As noted in Note 14, the Companies applied ASBJ Statement No.10 "Accounting
Standard for Financial Instruments" and ASBJ Guidance No.19 "Guidance on
Accounting Standard for Financial Instruments and Related Disclosures". The
accounting standard and the guidance are applicable to financial instruments and
related disclosures at the end of the fiscal years ending on or after March 31, 2010;
therefore, the required information is disclosed only for 2010.
15. DERIVATIVES
Reserve funds for reprocessing of irradiated nuclear fuel is provided for
reprocessing costs of irradiated nuclear fuel charged by JNFL. Using plan of the
reserve funds is disclosed only about due in one year or less, to comply with
agreements with JNFL and to avoid disadvantage, possibly caused by disclosure,
to the interested parties.
Please see Note 6 for annual maturities of long-term debt.
Thousands of U.S. Dollars
March 31, 2010
Due in one year or less
Due after one year
through five years
Due after five years
through ten years
Due after ten years
Investment securities:
Held-to-maturity debt securities $ 6,460 $ 23,420 $ 10,082 $ 36,070
Available-for-sale securities with contractual maturities 139 2,655 268 11,447
Reserve funds for reprocessing of irradiated nuclear fuel 315,950
Cash and cash equivalents 732,782
Receivables 1,188,650
Total $ 2,243,981 $ 26,075 $ 10,350 $ 47,517
Derivative transactions to which hedge accounting is applied at March 31, 2010
Millions of Yen
March 31, 2010
Hedged item Contract Amount
Contract Amount
due after One Year
Fair Value
Currency swaps:
Buying CHF (Note b) Bonds \ 20,203 \ 19,863
Buying U.S.$ (Note a) Accounts payable \ 40,882 \ 29,550 \ (46)
Energy swap agreements: (fixed price payment, floating price receipt) (Note a) Accounts payable \ 4,549 \ 3,599 \ 3,172
Interest rate swaps: (fixed rate payment, floating rate receipt) (Note b) Long-term loans \ 4,667 \ 3,991
Total \ 3,126
Thousands of U.S. Dollars
March 31, 2010
Hedged item Contract Amount
Contract Amount
due after One Year
Fair Value
Currency swaps:
Buying CHF (Note b) Bonds $ 217,143 $ 213,489
Buying U.S.$ (Note a) Accounts payable $ 439,402 $ 317,605 $ (494)
Energy swap agreements: (fixed price payment, floating price receipt) (Note a) Accounts payable $ 48,893 $ 38,682 $ 34,093
Interest rate swaps: (fixed rate payment, floating rate receipt) (Note b) Long-term loans $ 50,161 $ 42,896
Total $ 33,599
Notes: a) 
The fair value of derivative transactions is measured at the quoted price obtained from the financial institution.
b) 
Bonds denominated in foreign currencies for which currency swaps are used to hedge the foreign currency fluctuations are translated at the contracted rate if the currency swaps qualify for hedge accounting. The interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured at market value but the differential paid or received under the swap agreements are recognized
and included in interest charges.
As a result, the fair values of such currency swaps and interest rate swaps are included in those of hedged items (i.e. bonds and long-term loans, respectively) in Note 14.
c) 
The contract or notional amounts of derivatives which are shown in the above table do not represent the amounts exchanged by the parties and do not measure the Companies’ exposure to market risk.6060
Information by business segments for the years ended March 31, 2010 and 2009 is as follows:
Business Segments
17. SEGMENT INFORMATION
Millions of Yen2010Electric Power
Energy-related
Business
IT and
telecommunications
Other
Eliminations/
Corporate
Consolidated
Sales to customers \ 1,310,085 \ 65,503 \ 58,143 \ 11,210 \ 1,444,941
Intersegment sales 2,019 98,297 41,042 15,350 \ (156,708)
Total sales 1,312,104 163,800 99,185 26,560 (156,708) 1,444,941
Operating expenses 1,229,155 156,398 92,824 23,344 (156,507) 1,345,214
Operating income \ 82,949 \ 7,402 \ 6,361 \ 3,216 \ (201) \ 99,727
Total assets \ 3,645,116 \ 281,893 \ 142,979 \ 146,973 \ (162,769) \ 4,054,192
Depreciation 219,834 14,628 19,903 5,229 (2,894) 256,700
Impairment loss 1,786 200 1,986
Capital expenditures 215,507 4,901 18,994 9,372 (4,593) 244,181
Millions of Yen2009Electric Power
Energy-related
Business
IT and
telecommunications
Other
Eliminations/
Corporate
Consolidated
Sales to customers \ 1,398,577 \ 60,462 \ 55,751 \ 9,403 \ 1,524,193
Intersegment sales 2,215 96,738 36,994 15,025 \ (150,972)
Total sales 1,400,792 157,200 92,745 24,428 (150,972) 1,524,193
Operating expenses 1,326,654 149,602 91,962 22,777 (151,525) 1,439,470
Operating income \ 74,138 \ 7,598 \ 783 \ 1,651 \ 553 \ 84,723
Total assets \ 3,705,355 \ 284,830 \ 141,956 \ 136,576 \ (157,839) \ 4,110,878
Depreciation 216,706 12,028 21,238 5,400 (2,941) 252,431
Impairment loss 501 68 569
Capital expenditures 223,954 20,202 22,209 3,716 (4,558) 265,523
Under the debt assumption agreements, the Company was contingently liable for the redemption of the domestic bonds transferred to banks.
At March 31, 2010, the Companies had a number of fuel purchase commitments, most of which specify quantities and dates for fuel deliveries. However, most of purchase
prices are contingent upon fluctuations in market prices.
Contingent liabilities as of March 31, 2010 were as follows:
16. COMMITMENTS AND CONTINGENCIES
Millions of Yen Thousands of U.S. Dollars
Co-guarantees of loans, mainly in connection with procurement of fuel \ 97,539 $ 1,048,356
Guarantees of employees’ loans 80,879 869,293
Guarantees under debt assumption agreements 70,000 752,365
Other 15,739 169,16461Thousands of U.S. Dollars2010Electric Power
Energy-related
Business
IT and
telecommunications
Other
Eliminations/
Corporate
Consolidated
Sales to customers $ 14,080,879 $ 704,031 $ 624,925 $ 120,486 $ 15,530,321
Intersegment sales 21,700 1,056,503 441,122 164,983 $ (1,684,308)
Total sales 14,102,579 1,760,534 1,066,047 285,469 (1,684,308) 15,530,321
Operating expenses 13,211,038 1,680,976 997,678 250,903 (1,682,147) 14,458,448
Operating income $ 891,541 $ 79,558 $ 68,369 $ 34,566 $ (2,161) $ 1,071,873
Total assets $ 39,177,945 $ 3,029,804 $ 1,536,748 $ 1,579,676 $ (1,749,452) $ 43,574,721
Depreciation 2,362,790 157,223 213,919 56,201 (31,105) 2,759,028
Impairment loss 19,196 2,150 21,346
Capital expenditures 2,316,283 52,676 204,149 100,731 (49,366) 2,624,473
Energy related business consisted of obtaining, storing, gasifying and supplying
LNG, heat supply business, distributed generation business, energy consulting and
other businesses related to energy.
IT and telecommunications consisted of providing telephone lines and wirelines.
Other consisted of environment and recycling, lifestyle-oriented services and others.
Geographic segment information is not disclosed because the Companies’
overseas operations are immaterial.
Information for overseas sales is not disclosed due to overseas sales being
immaterial compared with consolidated net sales.
At the general shareholders meeting held on June 29, 2010, the Company’s shareholders approved the following appropriation of retained earnings as of March 31, 2010:
18. SUBSEQUENT EVENT
Millions of Yen Thousands of U.S. Dollars
Year-end cash dividends, 30円.00 (0ドル.32) per share \ 14,200 $ 152,623626263Non-consolidated Five-Year Financial Summary
Kyushu Electric Power Company, Incorporated
Years Ended March 31, 2010 and 2009 (Unaudited)
Millions of Yen
(except for per share data)
Thousands of U.S. Dollars
(except for per share data)
For the Year: 2010 2009 2008 2007 2006 2010
Operating revenues \ 1,339,808 \ 1,430,162 \ 1,392,060 \ 1,333,038 \ 1,329,435 $ 14,400,344
Electric 1,312,104 1,400,792 1,365,701 1,310,170 1,314,394 14,102,579
Other 27,704 29,370 26,359 22,868 15,041 297,765
Operating expenses 1,229,155 1,326,654 1,271,380 1,165,874 1,151,486 13,211,038
Personnel 172,720 136,794 138,313 144,806 178,455 1,856,406
Fuel 213,008 305,600 279,930 211,318 179,745 2,289,424
Purchased power 113,668 149,940 123,276 112,603 113,252 1,221,711
Depreciation 196,742 195,232 197,343 189,004 199,587 2,114,596
Maintenance 195,118 197,807 184,938 170,789 157,370 2,097,141
Reprocessing costs of
irradiated nuclear fuel 33,787 34,167 41,579 49,859 31,080 363,145
Decommissioning costs of
nuclear power units 9,093 8,309 21,357 6,546 9,121 97,732
Disposal cost of high-level
radioactive waste 10,373 8,669 9,125 8,822 8,041 111,490
Disposition of property 16,478 22,877 16,329 17,866 16,407 177,107
Taxes other than income taxes 87,474 88,453 87,107 87,216 89,259 940,176
Subcontract fee 79,226 74,835 70,721 65,657 64,896 851,526
Rent 34,334 35,760 36,547 36,515 36,316 369,024
Other 67,134 68,211 64,815 64,873 67,957 721,560
Interest charges 33,145 33,444 34,426 35,800 38,445 356,245
Income before income taxes 50,356 44,165 60,162 100,085 108,815 541,229
Net income 28,308 26,917 35,683 59,237 69,137 304,256 Per share of common stock
(yen and U.S. dollars):

Basic net income \ 59.80 \ 56.85 \ 75.37 \ 125.07 \ 145.64 $ 0.64
Cash dividends
applicable to the year 60.00 60.00 60.00 60.00 60.00 0.64
At year-end:
Total assets \ 3,776,569 \ 3,834,125 \ 3,784,701 \ 3,790,112 \ 3,857,317 $ 40,590,810
Net property 2,811,064 2,847,639 2,878,537 2,926,322 3,000,958 30,213,499
Long-term debt, less current portion 1,641,073 1,715,780 1,620,563 1,595,429 1,638,092 17,638,360
Total equity 984,109 981,540 999,679 1,018,804 995,662 10,577,268
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.04 = U.S. 1,ドル the approximate rate of exchange at March 31, 2010.)6464
Non-consolidated Balance Sheets
Kyushu Electric Power Company, Incorporated
March 31, 2010 and 2009 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
ASSETS
PROPERTY:
Plant and equipment \ 8,592,420 \ 8,516,921 $ 92,351,891
Construction in progress 246,824 211,662 2,652,880
Total 8,839,244 8,728,583 95,004,771
Less-
Contributions in aid of construction 143,024 140,908 1,537,231
Accumulated depreciation 5,885,156 5,740,036 63,254,041
Total 6,028,180 5,880,944 64,791,272
Net property 2,811,064 2,847,639 30,213,499
NUCLEAR FUEL 269,663 264,205 2,898,356 INVESTMENTS AND OTHER ASSETS:
Investment securities 76,414 73,029 821,303
Investments in and advances to subsidiaries and affiliated companies 134,056 130,327 1,440,842
Reserve funds for reprocessing of irradiated nuclear fuel 167,770 136,012 1,803,203
Deferred tax assets 101,793 100,101 1,094,078
Other assets 15,771 31,185 169,508
Total investments and other assets 495,804 470,654 5,328,934
CURRENT ASSETS:
Cash and cash equivalents 41,681 70,074 447,990
Receivables 87,637 105,426 941,928
Allowance for doubtful accounts (711) (782) (7,642)
Fuel and supplies 47,135 51,800 506,610
Deferred tax assets 11,440 12,163 122,958
Prepaid expenses and other 12,856 12,946 138,177
Total current assets 200,038 251,627 2,150,021
TOTAL \ 3,776,569 \ 3,834,125 $ 40,590,810
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.04 = U.S. 1,ドル the approximate rate of exchange at March 31, 2010.)65Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion \ 1,641,073 \ 1,715,780 $ 17,638,360
Liability for employees’ retirement benefits 124,225 120,665 1,335,178
Reserve for reprocessing of irradiated nuclear fuel 369,220 366,437 3,968,401
Reserve for decommissioning of nuclear power units 164,931 155,838 1,772,689
Other 15,758 17,409 169,368
Total long-term liabilities 2,315,207 2,376,129 24,883,996 CURRENT LIABILITIES:
Current portion of long-term debt 153,929 148,460 1,654,439
Short-term borrowings 104,600 129,000 1,124,248
Accounts payable 77,447 69,939 832,405
Accrued income taxes 17,908 1,066 192,476
Accrued expenses 91,520 97,467 983,663
Other 31,849 30,524 342,315
Total current liabilities 477,253 476,456 5,129,546
EQUITY: Common stock, authorized, 1,000,000,000 shares;
issued, 474,183,951 shares in 2010 and 2009
237,305 237,305 2,550,570
Capital surplus:
Additional paid-in capital 31,087 31,087 334,125
Other capital surplus 30 36 322
Retained earnings:
Legal reserve 59,326 59,326 637,640
Retained earnings - carryforward 640,850 640,948 6,887,898
Unrealized gain on available-for-sale securities 15,481 13,122 166,391
Deferred gain on derivatives under hedge accounting 1,998 1,520 21,474 Treasury stock-at cost
835,566 shares in 2010 and 749,232 shares in 2009
(1,968) (1,804) (21,152)
Total equity 984,109 981,540 10,577,268
TOTAL \ 3,776,569 \ 3,834,125 $ 40,590,8106666
Non-consolidated Statements of Income
Kyushu Electric Power Company, Incorporated
Years Ended March 31, 2010 and 2009 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
OPERATING REVENUES:
Electric \ 1,312,104 \ 1,400,792 $ 14,102,579
Other 27,704 29,370 297,765
Total operating revenues 1,339,808 1,430,162 14,400,344 OPERATING EXPENSES:
Electric:
Personnel 172,720 136,794 1,856,406
Fuel 213,008 305,600 2,289,424
Purchased power 113,668 149,940 1,221,711
Depreciation 196,742 195,232 2,114,596
Maintenance 195,118 197,807 2,097,141
Reprocessing costs of irradiated nuclear fuel 33,787 34,167 363,145
Decommissioning costs of nuclear power units 9,093 8,309 97,732
Disposal cost of high-level radioactive waste 10,373 8,669 111,490
Disposition of property 16,478 22,877 177,107
Taxes other than income taxes 87,474 88,453 940,176
Subcontract fee 79,226 74,835 851,526
Rent 34,334 35,760 369,024
Other 67,134 68,211 721,560
Total 1,229,155 1,326,654 13,211,038
Other 25,743 28,691 276,688
Total operating expenses 1,254,898 1,355,345 13,487,726
OPERATING INCOME 84,910 74,817 912,618
OTHER EXPENSES (INCOME):
Interest charges 33,145 33,444 356,245
Gain on sales of investment securities (5,400)
Other-net 1,409 2,608 15,144
Total other expenses-net 34,554 30,652 371,389
INCOME BEFORE INCOME TAXES 50,356 44,165 541,229
INCOME TAXES:
Current 24,619 10,406 264,606
Deferred (2,571) 6,842 (27,633)
Total income taxes 22,048 17,248 236,973
NET INCOME \ 28,308 \ 26,917 $ 304,256
Yen U.S. Dollars
PER SHARE OF COMMON STOCK:
Basic net income \ 59.80 \ 56.85 $ 0.64
Cash dividends applicable to the year 60.00 60.00 0.64
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.04 = U.S. 1,ドル the approximate rate of exchange at March 31, 2010.)67Overview of Power Generation Facilities
(As of March 31, 2010)
Nuclear Power Stations (two facilities/maximum output 5,258,000 kW)
Station name Maximum output (kW)
Operation commencementdateSystem Location
Genkai 3,478,000 (×ばつ2 ×ばつ2) Oct. 1975 Pressurized water reactor Genkai-cho, Higashi Matsuura-gun, Saga Prefecture
Sendai 1,780,000 (×ばつ2) Jul. 1984 Pressurized water reactor Satsumasendai-shi, Kagoshima Prefecture
Thermal Power Stations (10 facilities/maximum output 11,180,000 kW)
Station name Maximum output (kW)
Operation commencementdateMain fuel Location
Shin Kokura 1,800,000 (×ばつ3) Sep. 1978 LNG Kokura Kita-ku, Kitakyushu-shi, Fukuoka Prefecture
Karita 735,000 (×ばつ1 ×ばつ1) Apr. 1972 Coal/heavy oil/crude oil Kanda-machi, Miyako-gun, Fukuoka Prefecture
Buzen 1,000,000 (×ばつ2) Dec. 1977 Heavy oil/crude oil Buzen-shi, Fukuoka Prefecture
Karatsu 875,000 (×ばつ1 ×ばつ1) Jul. 1971 Heavy oil/crude oil Karatsu-shi, Saga Prefecture
Matsuura 700,000 Jun. 1989 Coal Matsuura-shi, Nagasaki Prefecture
Ainoura 875,000 (×ばつ1 ×ばつ1) Apr. 1973 Heavy oil/crude oil Sasebo-shi, Nagasaki Prefecture
Oita 500,000 (×ばつ2) Jul. 1969 Heavy oil Oita-shi, Oita Prefecture
Shin Oita 2,295,000 (×ばつ6 ×ばつ4 ×ばつ3) Jun. 1991 LNG Oita-shi, Oita Prefecture
Reihoku 1,400,000 (×ばつ2) Dec. 1995 Coal Reihoku-machi, Amakusa-gun, Kumamoto Prefecture
Sendai 1,000,000 (×ばつ2) Jul. 1974 Heavy oil/crude oil Satsumasendai-shi, Kagoshima Prefecture
Hydroelectric Power Stations (139 facilities/maximum output 2,978,696 kW)
Station name Maximum output (kW)
Operation commencementdateSystem Location
Tenzan 600,000 Dec. 1986 Dam and conduit system
(pure pumped-storage) Karatsu-shi, Saga Prefecture
Yanagimata 63,800 Jun. 1973 Dam and conduit system Hita-shi, Oita Prefecture
Matsubara 50,600 Aug. 1971 Dam system Hita-shi, Oita Prefecture
Ohira 500,000 Dec. 1975 Dam and conduit system
(pure pumped-storage) Yatsushiro-shi, Kumamoto Prefecture
Iwayado 51,100 Jan. 1942 Dam and conduit system Shiiba-son, Higashi Usuki-gun, Miyazaki Prefecture
Kamishiiba 93,200 May 1955 Dam and conduit system Shiiba-son, Higashi Usuki-gun, Miyazaki Prefecture
Tsukabaru 63,090 Oct. 1938 Dam and conduit system Morotsuka-son, Higashi Usuki-gun, Miyazaki Prefecture
Morotsuka 50,000 Feb. 1961 Dam and conduit system Morotsuka-son, Higashi Usuki-gun, Miyazaki Prefecture
Omarugawa 600,000 Jul. 2007 Dam and conduit system
(pure pumped-storage) Kijo-cho, Koyu-gun, Miyazaki Prefecture
Hitotsuse 180,000 Jun. 1963 Dam and conduit system Saito-shi, Miyazaki Prefecture
Oyodogawa Daiichi 55,500 Jan. 1926 Dam system Miyakonojo-shi, Miyazaki Prefecture
Oyodogawa Daini 71,300 Mar. 1932 Dam and conduit system Miyazaki-shi, Miyazaki Prefecture
*with outputs of 50,000 kW or higher
Geothermal Power Stations (6 facilities/maximum output 209,500 kW)
Station name Maximum output (kW)
Operation commencementdateLocation
Takigami 25,000 Nov. 1996 Kokonoe-machi, Kusu-gun, Oita Prefecture
Otake 12,500 Aug. 1967 Kokonoe-machi, Kusu-gun, Oita Prefecture
Hatchoubaru 110,000 (×ばつ2) Jun. 1977 Kokonoe-machi, Kusu-gun, Oita Prefecture
Hatchoubaru Binary 2,000 Apr. 2006 Kokonoe-machi, Kusu-gun, Oita Prefecture
Ogiri 30,000 Mar. 1996 Kirishima-shi, Kagoshima Prefecture
Yamagawa 30,000 Mar. 1995 Ibusuki-shi, Kagoshima Prefecture
Wind Power Stations (two facilities/maximum output total 3,250 kW)
Station name Maximum output (kW)
Operation commencementdateLocation
Koshikijima wind power 250 Mar. 2003 Satomura, Satsuma-gun, Kagoshima Prefecture
Noma-misaki wind park 3,000 Mar. 2003 Minami satsuma-shi, Kagoshima Prefecture
Internal Combustion Power Stations (34 facilities/maximum output 395,270 kW) *including gas turbines
Station name Maximum output (kW)
Operation commencementdateLocation
Shinarikawa 60,000 (×ばつ6) Jun. 1982 Shinkamigotou-chou, Minami matsuura-gun, Nagasaki Prefecture
Tatsugo 60,000 (×ばつ6) Jun. 1980 Tatsugo-chou, Ooshima-gun, Kagoshima Prefecture
*with outputs of 50,000 kW or higher6868
Subsidiaries and Affiliated Companies
(As of March 31, 2010)
Consolidated Subsidiaries
Company Name
Capital
(Millions of yen)
Equity
Ownership(%)Business
Energy Business in Kyushu
Oita Liquefied Natural Gas Co., Inc. 7,500 98.0 Receipt, storage, vaporization and delivery of LNG
Kitakyushu Liquefied Natural Gas Co., Inc. 4,000 75.0 Receipt, storage, vaporization and delivery of LNG
Pacific Hope Shipping Limited 4,071 60.0 Purchasing, operating, chartering and renting of LNG carriers
Nishinippon Environmental Energy Co., Inc. 1,010 100.0 Distributed power system business and consultation about energy efficiency
Kyuden Ecosol Co., Ltd. 495 100.0 On-site solar power generation business
Kyushu Rinsan Co. 490 100.0 Greening construction at power stations and other facilities
Nagashima Windhill Co., Ltd. 490 86.0 Sales of electricity generated by wind power
Fukuoka Energy Service Co., Inc. 490 80.0 Heat supply business
KYUKI CORPORATION 305 67.0 Manufacture and sales of electric machinery
NISHI NIPPON AIRLINES CO., LTD. 360 54.7 Air cargo transportation
Nishinippon Plant Engineering and Construction Co., Ltd. 150 85.0 Construction, maintenance and repair of power generation facilities
Kyushu Kouatsu Concrete Industries Co., Ltd. 240 51.3 Manufacture and sales of concrete poles
Kyuden Sangyo Co., Inc. 117 100.0 Environmental preservation work at power stations
Miyazaki Biomass Recycle Co., Inc. 100 42.0 Power-generation activities using poultry dung fuel
West Japan Engineering Consultants, Inc. 40 100.0 Consultation and planning of civil engineering and construction
Kyushu Meter & Relay Engineering Corporation 22 98.6 Repair and maintenance of electronic instruments
Koyo Denki Kogyo Co., Ltd. 20 95.9 Manufacture and sales of HV and LV insulators and other items
Nishigi Kogyo, Co., Inc. 20 69.0 Conduit maintenance for hydroelectric power stations
Energy Business Overseas
Kyuden International Corporation 19,650 100.0 Acquisition and holding of securities of overseas electric companies
IT and Telecommunications
Kyushu Telecommunication Network Co., Inc. 22,020 96.8 Fiber-optic cable and broadband services
Kyuden Infocom Company, Inc. 480 100.0 IT-related planning and consultation, and data center business
Nishimu Electronics Industries, Co., Ltd. 300 100.0 Manufacture, sales, installation and maintenance of telecomunication devices
Kyuden Business Solutions Co., Inc. 100 100.0 Development, operation and maintenance of information systems
RKK Computer Service Co., Inc. 100 61.3 Development and sales of computer softwares
Lifestyle-oriented Services
Capital Kyuden Corporation 600 100.0 Acquiring and owning of securities, loans to group companies
DENKI BLDG. CO., Ltd. 495 89.9 Leasing and management of real estate
Kyuden Good Life Company, Inc. 300 100.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Kumamoto Company, Inc. 200 100.0 Paid elderly nursing home management and nursing services
Kyuden Business Front Inc. 100 100.0 Temporary staffing and job-placement services
Kyuden Good Life Fukuoka Josui Company, Inc. 100 100.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Kagoshima Company, Inc. 100 90.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Higashifukuoka Company, Inc. 100 70.0 Paid elderly nursing home management and nursing services
Kyuden Fudousan Co., Ltd. 32 98.1 Leasing of real estate and site management
Kyuden Office Partner Co., Inc. 30 100.0 Clerical work acceptance on trust and consulting business69Company Name
Capital
(Millions of yen)
Equity
Ownership(%)Business
Energy Business in Kyushu
Tobata Co-operative Thermal Power Co., Inc. 9,000 50.0 Wholesale electricity supply
Fukuoka Clean Energy Co., Ltd. 5,000 49.0 Waste incineration and power generation business
Kyudenko Corporation 7,901 30.5 Electric work
Oita Co-operative Thermal Power Co., Inc. 4,000 50.0 Wholesale electricity supply
KYUSYU CRYOGENICS CO., LTD. 450 50.0 Manufacture and sales of liquid oxygen, liquid nitrogen and liquid argon
Kyuhen Co., Ltd. 225 35.9 Manufacture and sales of electrical equipment
Seishin Corporation 200 26.5 Sale of electrical equipment
Kyuken Corporation 100 14.7 Construction and repair of transmission lines
Plazwire Co., Ltd. 50 100.0 Flame spray coating (painting) business
Nishikyushu Kyodo Kowan Co., Ltd. 50 50.0 Operation and maintenance of coal handling equipment
Nihon FRP Co., Inc. 30 65.0 Design fabrication, repair and installation of reinforced plastic
Nishi Nihon Denki Tekkou Co., Ltd. 30 33.5 Design, production and sales of steel towers and steel conduits
NISHIDA TECHNO SERVICE Co., Inc. 20 65.0 Inspection, maintenance, design, production and construction of sluice and weir equipment
Washiodake Wind Power Co., Ltd. 10 100.0 Development of wind power generation facilities and sales of generated electric power
NISHIGI SURVEYING AND DESIGN CO., LTD. 10 100.0 Investigation, measurement, design, drafting and care of civil engineering/construction projects
Amami Oshima Wind Power Co., Ltd. 10 75.0 Development of wind power generation facilities and sales of generated electric power
CONTEX 10 100.0 Manufacture and sales of cement products
Energy Business Overseas
KYUDEN ILIJAN HOLDING CORPORATION 3,050
(ThousandsofU.S.dollars)
100.0 Investment in Ilijan IPP business company
KYUDEN SARULLA PTE. LTD. 5,345
(ThousandsofSingaporedollars)
100.0 Geothermal power generation
Electricidad Aguila de Tuxpan, S.deR.L.deC.V. 641,743
(ThousandsofMexicoPesos)
50.0 Power-generation activities using natural gas fuel
Electricidad Sol de Tuxpan, S.deR.L.deC.V. 493,407
(ThousandsofMexicoPesos)
50.0 Power-generation activities using natural gas fuel
IT and Telecommunications
Kagoshima Hikari Television Co., Inc. 75 90.0 Telecommunication broadcasting business
RKKCS Software 10 100.0 Developments and sales of computer software
Environment and Recycling Business
J-Re-Lights Co., Ltd. 275 100.0 Recycling of used fluorescent bulbs
Kyushu Environmental Management Corporation 80 98.1 Recycling of confidential documents
Lifestyle-oriented Services
Kyushu Housing Guarantee Corporation 272 33.3 Housing and building assessments, security services affairs
Kyushu Highlands Development Co., Ltd. 300 100.0 Management of golf courses
Kyuden Home Security Co., Inc. 100 97.5 Home security and monitoring business
Kyuden Shared Business Co., Ltd. 80 100.0 Accounting and personnel services
Kyushu Captioning Co-Production Center Inc. 60 76.7 Subtitle production for broadcasting
Oak Co., Ltd. 3 100.0 Real estate management
Non-consolidated Subsidiaries and Affiliated Companies Accounted for under Equity Method7070
Outline of Kyushu Electric Power’s History
(As of March 31, 2010)
(Fiscal Year) Noteworthy Events
1951 Kyushu Electric Power is established.1953Kyushu Electric Power receives its first postwar loan (approximately 3円.8 billion) in Japan from the International Bank for Reconstruction
and Development (the World Bank).1955The Kamishiiba Power Station, the first in Japan with an arch dam, becomes operational.
Unit 1 at the Karita Thermal Power Station, an advanced, high-capacity system (75,000 kW) becomes operational.1957Kyushu Electric Power completes its Central Line (220,000 V), its first super-high-voltage transmission line.
Thermal generation capacity exceeds hydroelectric capacity.
1960 Frequency unification is completed.1967The Otake Power Station, Japan’s first commercial geothermal generation facility, becomes operational with a capacity of 11,000 kW.
Unit 1 at the Karatsu Power Station (156,000 kW) becomes operational as Kyushu Electric Power’s first generation facility with a control computer.
1969 Unit 1 at the Oita Power Station (250,000 kW), Kyushu Electric Power’s first facility designed to run exclusively on heavy fuel oil, becomes operational.
1970 The provision of electric lighting to all homes is completed.1975Unit 1 at the Genkai Power Station (559,000 kW), Kyushu Electric Power’s first nuclear facility, becomes operational.
The Ohira Power Station, then Japan’s biggest pumped-storage facility (500,000 kW) becomes operational.
1977 Unit 1 at the Hatchoubaru Geothermal Power Station, one of the biggest in Japan, becomes operational, initially with a capacity of 23,000 kW.1980Kyushu Electric Power builds the Central and West Kyushu Substations (500,000 V) and raises the voltage on its Saga Line to 500,000 V.
The 500,000 V Trans-Kanmon Line becomes operational.
1982 The Kyushu Energy Center is opened.
1984 Unit 1 at the Sendai Nuclear Power Station (890,000 kW) becomes operational.1986Unit 1 at the Tenzan Power Station (300,000 kW), a large-capacity pumped-storage facility, becomes operational.
Kyushu Electric Power begins to use automatic control systems on its distribution lines.
1989 Kyushu Electric Power achieves a zero outage record for work on high-and low-voltage facilities for the first time in Japan.1990The No. 1 System at the Shin Oita Power Station (690,000 kW) becomes operational. Designed to use LNG,
this combined-cycle unit provides excellent thermal efficiency.
1992 Kyushu Electric Power begins to purchase surplus electric power from distributed generation facilities, including solar and wind power systems.1998Kyushu Electric Power begins to operate a superconducting storage system as an electric power facility. It is the first of its type in Japan and
one of the largest in the world.2000The Genkai Energy Park is opened.
Revision of the Electricity Enterprises Law (deregulation of electric utilities).2001A loan agreement is signed for the Tuxpan II IPP project in Mexico.
The Kyushu Homeland Forestation Program is launched.
2002 Dedicated sales representatives are assigned to corporate customers.2004The Call Center is extended to the entire corporate organization.
Kyushu Electric Power achieves the best CO2 emission level per unit of electric power (0.331 kg-CO2/kWh) in the Japanese electric power industry.
2005 The Goto Archipelago Link, Japan’s longest sea-bed cable, becomes operational.
2006 Kyushu Electric Power becomes the first electric power company to win top prize in the 9th Green Reporting Awards.
2007 "Kyushu Electric Power’s Mission" is adopted.
2008 Formulation of Long-term Management Vision.
2009 Implementation of Japan’s first pluthermal operation.71Corporate Data
(As of March 31, 2010)
Company Overview
Stock Information
Stock Price Movement
Major ShareholdersNameNumber of Shares Held
(Thousands of Shares)
Shareholding Ratio(%)Meiji Yasuda Life Insurance 23,710 5.00
The Master Trust Bank of Japan, Ltd. (trust unit) 21,847 4.61
Japan Trustee Services Bank, Ltd. (trust unit) 20,076 4.23
Nippon Life Insurance Company 18,454 3.89
Mizuho Corporate Bank, Ltd. 10,419 2.20
Mizuho Trust and Banking, Retirement Benefit Trust Fukuoka Bank unit 8,637 1.82
Sumitomo Mitsui Banking Corporation 8,474 1.79
Kyushu Electric Power Co., Inc. Employees’ Shareholding Association 7,213 1.52
Kochi Shinkin Bank 5,184 1.09
The Dai-ichi Mutual Life Insurance Company 5,007 1.06
* Along with reorganization, The Dai-ichi Mutual Life Insurance Company has changed the trade name to "The Dai-ichi Life Insurance Company,Ltd" from April 1, 2010.
Trade Name Kyushu Electric Power Company, Incorporated
Head Office 1-82, Watanabe-dori 2-chome, Chuo-ku, Fukuoka 810-8720, Japan
Phone +81-92-761-3031
Tokyo Branch Office 7-1, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-0006, Japan
Phone +81-3-3281-4931
Date of Establishment May 1, 1951
Paid-in Capital 237,304,863,699円
Number of Employees 12,553
Total Number of Shares Authorized 1,000,000,000
Number of Shares Issued and Outstanding 474,183,951
Number of Shareholders 184,217
Shareholders’ Meeting June
Fiscal Year-end March 31
Stock Listings Tokyo Stock Exchange, Osaka Securities Exchange,
Fukuoka Stock Exchange
(Code: 9508)
Transfer Agent and Registrar The Chuo Mitsui Trust and Banking Co., Ltd.
33-1, Shiba 3-chome, Minato-ku, Tokyo, Japan
Accounting Auditor Deloitte Touche Tohmatsu
By Number of Shares Held
Financial
Institutions
45.6%
Foreign Investors
11.8%
Other Domestic
Companies 5.9%
Securities Firms0.9%Governmental
Organization0.9%Individuals
and Other
34.9%
By Type of Shareholder
Composition of Shareholders01,000
20,000
30,000
40,000
50,000
60,000
70,000
80,0000500
1,000
1,500
2,000
2,500
3,000
3,500
4,000200542006420074200842009420103
(Thousands of Shares)
(Yen)
Less than 100
21.7%
100 to 499
34.8%
500 to 999
13.7%
1,000 to 4,999
26.8%
5,000 or more3.0%272Printed in Japan
この冊子はアメ
リカ大豆協会認定の
大豆油インキを使用し
ています。
古紙パルプ配合率100%再生紙を使用
この冊子はアメ
リカ大豆協会認定の
大豆油インキを使用し
ています。
古紙パルプ配合率100%再生紙を使用