Tohoku EPCO has reviewed environmental protection measures and disclosed them in its Environmental Action Report. In order to promote environmental protection activities more effectively and enhance communication with the public, Tohoku EPCO realizes the importance of estimating and disclosing numerical values in environmental accounting. Tohoku EPCO calculated internal environmental costs and their effectiveness in FY 1999 based on the guideline published in May 2000 by the Environment Agency, Japan. The estimate showed that the costs for equipment investment required for environmental conservation measures came to ¥11.5 billion and expenses amounted to ¥47.3 billion, accounting for 3.8% and 3.7% of the total amount for investment and expenditure (expenses for electric utility operations), respectively.

Environmental Costs

(billions of yen)

Category Principal measures Investment Expenses Costs in service area* 7.9 38.1 Pollution prevention cost Preservation of air quality (reduction in SOx, NOx, and dust emissions), water quality, noise control, and offensive odor control. 2.1 28.9 Global environmental conservation cost Improvement of thermal efficiency of LNG-fired TPSs, introduction of low-loss equipment (e.g., transformers, wires), utilization of renewable energy, protection of the ozone layer, etc. 3.0 1.1 Resource circulation cost Treatment and recycling of wastes 2.8 8.1 Upstream and downstream cost Green purchase - 1 Management activity cost Environmental education, environmental management activities,environmental load monitoring, etc. 0.3 3.5 R&D cost Environment-related R&D - 1.4 Social activity cost Afforestation, beautification, landscaping, disclosure of environmental information, local environmental activities, etc. 3.3 3.4 Environmental damage cost Pollution load levy - 1.0 * : The cost does not cover the main facilities for nuclear power, hydro power or LNG-fired thermal power stations because of difficulties in calculating their environmental costs.

Composition of environmental costs

The environmental costs required for these measures (the depreciation cost and management cost for environmental conservation facilities) amounted to ¥22.6 billion. The total reduction in environmental impacts attained by facilities for environmental conservation (compared with the case without these facilities) was comprised of 62,000 t of SOx, 26,000 t of NOx and 779,000 t of dust.

Environmental Accounting 1/1

	[Summary of Global Environmental Action Report 2000 INDEX]
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