There are two topics that I would like to cover today.

The first is the 2003 Technology Development Plan. The second is the electric power industry's participation in the annual Japan Atomic Industrial Forum Inc. meeting.

I would like to begin by commenting on the 2003 Technology Development Plan. Details are shown in Reference Document 1.

As has already been announced, new guidelines for market liberalization have been developed, and FEPC member companies are working harder than ever to achieve cost reductions and develop new technologies that will benefit their customers.

In addition to these individual efforts there are two areas in which, from the standpoint of efficiency, we believe we must continue to conduct research on an industry-wide basis:

• Research that addresses shared issues of broad public significance such as energy security and global warming.
• Technology development that addresses electricity quality and other shared issues, and which requires significant capital investment and long-range planning.

It is with these areas in mind that we have developed the 2003 Technology Development Plan. The plan's key points are as shown in the reference materials. The first point, "Technology Development to Achieve Energy Security and Protect the Global Environment," focuses on technologies related to reprocessing, medium-term storage, and other technologies that we believe must be continued to support the nuclear fuel cycle.

And, as is shown on the following page of the reference materials, we believe we must also continue joint development of Integrated Gasification Combined Cycle (IGCC) technologies, which offer higher power-generating efficiency and lower environmental impact than conventional coal-based technologies. Likewise, we also believe that we must continue to research Molten Carbonate Fuel Cell (MCFC) and Solid Oxide Fuel Cell (SOFC) technologies that hold great promise as high-efficiency alternatives to conventional thermal generation.

The plan's second point, "Technology Development to Achieve Electricity Quality," focuses on the technologies we need to develop to ensure the quality of electricity obtained from renewable energy sources and distributed power supply systems. In addition, it includes technologies to increase the speed, capacity, and compactness of distribution grid equipment, as well as the development of applied superconducting technologies.

Expenditures for research in these areas are expected to total 16.6 billion yen in 2003. However, we will strive to improve efficiency and to reduce costs by working closely with the Central Research Institute of Electric Power Industry, and by participating in government projects. As development progresses, we will continually review achievements in the light of new technological trends, and narrow the focus of research as necessary to ensure efficient use of development funds.

As was noted in the Electricity Industry Committee's recent report, even stiffer competition and a more difficult business environment are forecast for our industry in the days ahead.

In view of this situation, we of the FEPC believe that for the future of our nation, it is essential that we fulfill our public duty and continue the development of technologies that will help diversify our energy sources and protect the global environment.

I would now like to turn to the subject of FEPC participation in the 36th annual Japan Atomic Industrial Forum meeting. Details are shown in Reference Document 2.

At last month's press conference, I reported on the public hearings that were held in Fukui City as part of the Trust Restoration Committee's activities to regain the public trust. In fact, those hearings were held as an adjunct to the Japan Nuclear Power Industry's annual meeting, which I would like to report on in greater depth today.

The purpose of the annual meeting is to give experts and other concerned parties at home and abroad an opportunity to gather and discuss important energy-related issues, particularly with respect to the peaceful use of nuclear power. It also gives the participants an opportunity to express their opinions about the future of nuclear power development, and to seek the understanding of the nation's citizens.

This year's meeting attracted 1,336 participants from Japan and abroad, who took part in lively discussions and an exchange of opinions on the subject of "Seeking Public Understanding for Further Development of Nuclear Power."

As electricity producers, we of the FEPC are also involved with nuclear power, and have actively participated in the annual meetings each year. In the first session of this year's meeting, I was given an opportunity to speak on the subject of "The Mission of Electricity Providers in the Continued Development of Society."

In my talk, I made the following points:

• For civilization to continue to advance, we need to make every effort to ensure that the energy resources that support our lives and industries are not exhausted.
• As electric power companies, we must continue to provide a stable and affordable supply of electricity amid ever-tightening restrictions on resources and the environment, and remember that our primary duties are to support the lives of the nation's citizens, and to ensure continued growth of the nation's economy.
• Our ability to execute these duties is dependant on nuclear power generation, which is friendly to the environment and offers the advantages of fuel availability and pricing stability, and that the development of a nuclear fuel cycle to ensure efficient use of uranium resources is therefore vitally necessary.
• To achieve success, we must mount an industry-wide effort to restore trust in nuclear power, and balance the industry's needs with the demands of market liberalization.

For those of us at Kansai Electric Power Co., Ltd., it was particularly significant that this year's meeting was held in Fukui Prefecture, the mecca of Japan's nuclear power industry.

It was especially instructive to learn about the efforts that industry personnel are making in many nations to gain broader understanding for nuclear power.

Recently, there have been reports that the U.S. Department of Energy is working to develop nuclear fuel cycle technologies, and that in the UK, the government has admitted there is a need to consider nuclear power as one option in the fight against global warming. I only hope that such developments will help bring about changes in our own country that result in a fair evaluation of nuclear power. And to this end, I believe that it is essential that we succeed in restoring public trust in the nuclear power industry.

Although there was fortunately little disruption of oil pricing or availability in Japan during the recent war in Iraq, I believe that this was due in large part to our ability to learn from the previous two "oil shocks," and to pursue "best mix" power-generating policies.

Recently, in a year that marks the 30th anniversary of the oil crisis, the war in Iraq and problems relating to electricity supply and demand have been much in the news. It is my sincere hope that these events will cause the public to reflect on how important a stable energy supply is to the entire nation.