The 1st Nuclear Reform Monitoring Committee Meeting

(Mr. Suzuki)

Good morning, everyone.
We would like to begin the First Nuclear Reform Monitoring Committee meeting. I am Kazuhiro Suzuki, Secretary General of this committee.
TEPCO organized this Nuclear Reform Monitoring Committee as an advisory body of the Board of Directors with the objective of promoting reform of the corporate culture toward a safety-oriented atmosphere. In this committee, experts and intellectuals from Japan and overseas will bring external viewpoints to monitor and supervise TEPCO’s efforts in nuclear reform and lead us to solid implementation of the reform.
This is our first meeting, and I would like to introduce the meeting agenda. Once we appoint a Chairman, the Chairman will moderate the meeting.
First, I would like to introduce the members of the committee and the participants from TEPCO. Then, the members of the committee will appoint a Chairman. After that, TEPCO will explain the contents of deliberation to the committee and ask the committee members to come up with a committee charter, or basic rules. Then, TEPCO will explain the status of our nuclear reform efforts. The committee members will then have time to discuss specific activities for the committee without the TEPCO delegates.
The meeting will end around 12:00 today, and after the meeting, a press conference will be held from 13:00.

(Mr. Suzuki)

First, I will introduce the members of the committee. I will read their names in alphabetical order. Please introduce yourselves briefly. The first member is Dr. Dale Klein. Dr. Klein, please.

(Dr. Klein)

Thank you. It’s a pleasure to be here. My background is in nuclear engineering. And so I have served many years in the academic world and still a member of the University of Texas System, on the faculty in a few years at Austin. I, prior to returning to the University of Texas System, was a chairman of the Nuclear Regulatory Commission. So, I’m very familiar with nuclear safety requirements and nuclear regulatory aspects.

(Mr. Suzuki)

Thank you, Dr. Klein. Next, Lady Barbara Judge, please.

(Lady Judge)

Thank you. I am Barbara Judge, I was chairman of the UK Atomic Energy Authority for many years. And we were involved in both decommissioning nuclear power plants as well as advising the Prime Minister on nuclear developments. I have also been a regulator for both the US and the UK developing a really strong regulatory system in order to engender itself within the culture. It is great honor for me to be able to help TEPCO in its efforts to establish a new safety culture and a good regulatory system, because I believe that nuclear energy is important as part of the mix of energy and can be done safely and effectively.

(Mr. Suzuki)

Thank you, Lady Judge. Next, Dr. Kenichi Ohmae, please.

(Dr. Ohmae)

I studied nuclear reactors when I was a student and I have worked as a designer of nuclear reactors for HITACHI. But after that, I left the nuclear industry, and over the past 40 years, I have worked as a business consultant.
I studied the investigations of the Fukushima Daiichi accident conducted by the Japanese government and TEPCO and noticed that they did not show the truth. I told Minister Hosono that if I was given access to the accident investigation committee staff, I would analyze the accident myself. Then, I voluntarily analyzed the accident and submitted all reports in Japanese and English in December 2011, telling him that my analyses should be used as a second opinion if the actions of the government did not work well.
That is how I returned to the nuclear industry after a 40-year absence. With regard to the TEPCO reform, I have ideas about how the results and processes of my analyses can be used in the explanations to the residents of the municipalities where nuclear power plants are located. I joined this committee to share these ideas.

(Mr. Suzuki)

Thank you, Dr. Ohmae. Now, Mr. Masafumi Sakurai, please.

(Mr. Sakurai)

Hello, I am Sakurai. Unlike the three members introduced so far, I do not have any special knowledge about nuclear power.
However, in the Public Prosecutors Office and then as a defense inspector general of the Ministry of Defense, I gained experience in determining which actions to take in emergencies and when facing risks. In that sense, I believe that concrete measures are necessary in terms of how we should prepare for nuclear accidents like the one at Fukushima Daiichi and how we should respond to these accidents once they occur.
Also, as you may know, I examined the relationships among TEPCO, the government, and other parties for nearly seven months from last December to this July in the Fukushima Nuclear Accident Independent Investigation Commission (NAIIC) of the National Diet of Japan. You can read the findings of the examinations as submitted in a report, but we believe that our examinations were the beginning rather than the end. In that sense, we will be closely watching how our ideas are reflected in TEPCO’s voluntary nuclear reform and we will provide advice as necessary.
Specifically, I believe that measuring safety objectively is not enough for us to work through nuclear problems in the future, and that trust and a sense of safety on behalf of local residents and the people of Japan are an essential part of the effort. I am committed to working on the examination of how TEPCO will change in the future, including these aspects. Thank you.

(Mr. Suzuki)

Thank you, Mr. Sakurai. The members of the committee also include TEPCO Chairman Mr. Kazuhiko Shimokobe, and he will explain the contents of the deliberation to the committee members. The committee consists of these five members.
Now, I would like to introduce TEPCO’s presenters for today’s meeting. The first presenter is Mr. Naomi Hirose. Mr. Hirose is president of TEPCO and the Head of the Nuclear Reform Special Task Force. The next presenter is Mr. Zengo Aizawa. Mr. Aizawa is Executive Vice President of TEPCO, Director-General of Nuclear Power & Plant Siting Division, and the Vice Head of the Nuclear Reform Special Task Force. Finally, Mr. Takafumi Anegawa is General Manager of the Nuclear Asset Management Department and the Secretary-General of the Nuclear Reform Special Task Force.
These are the participants of today’s meeting.

(Mr. Suzuki)

First, before we start the committee discussion, I would like the committee members to discuss how we should appoint the Chairman of this committee.
Members can cast votes to select a Chairman, but if the number of members is too small, the secretary general may act as a meeting moderator without a Chairman being appointed.

(Mr. Sakurai)

Does anyone have any opinions? If not, based on past experience and other circumstances, I would like to ask Dr. Dale to act as the Chairman or Head of this committee to moderate this meeting. How is this idea, everyone?

(Lady Judge)

I would be very happy to second that nomination.

(Mr. Suzuki)

Any opinions or comments?
Dr. Ohmae, what do you think?
I guess that there are no opinions, so now I would like to appoint Dr. Klein as the Chairman of this committee.

(Dr. Klein)

I would like to thank my many members for having confidence in my abilities. I would like to operate this committee independently and in a fashion where we will be direct in expressing our concerns. We will be frank in our assessments. We may tell TEPCO things they would like not to hear. But we will be very blunt in our recommendations. I think it’s very important for the country of Japan to realize that nuclear energy is going to continue to be part of our world energy supply. And I think it’s very important for TEPCO to understand that they need to undergo massive reform. The accident at Fukushima demonstrated weaknesses, it’s very important that TEPCO can reform itself. I think if you look at Japan’s quality to manufacture components, you have a world class recognition in your high quality. There is no reason that TEPCO cannot become a world class nuclear safety organization. You’re not there now, but our hope is that an independent committee will ensure that you get there. It’s also important for TEPCO in the country of Japan, and worldwide, what is happening in other countries. There are two organizations that you should definitely watch and get information from, first is the International Atomic Agency. They will be looking at global issues and it’s very important for you to be aware of what the world is doing to make their nuclear reactors safer. The other from a more technical basis is the Institute for Nuclear Power Operations, they will also be giving some good advice. So our committee will be looking broadly and we intend to be independent, frank to help both TEPCO and the nation of Japan to succeed in their energy. Thank you very much.

(Mr. Suzuki)

Now, to start the meeting, TEPCO Chairman Mr. Shimokobe will explain about the contents of deliberation in the Nuclear Reform Monitoring Committee as a representative of the TEPCO Board of Directors.

(Mr. Shimokobe)

Hello, I am Shimokobe, the Chairman of TEPCO.
I would like to briefly explain the perspectives of the TEPCO Board of Directors concerning the contents of the deliberation in this Nuclear Reform Monitoring Committee.
As a result of the decision of the Board of Directors meeting held on September 11, 2012, TEPCO announced the following to TEPCO employees and to the public. First, TEPCO would establish a Nuclear Reform Monitoring Committee and Investigation and Verification Project Team.
Second, TEPCO would establish a Nuclear Reform Special Task Force headed by the president of TEPCO to quickly and strongly implement nuclear reform based on deep reflection upon the nuclear accident in Fukushima.
Under such circumstances, we are requesting the deliberation of this committee as follows.
First, in order to build a nuclear power plant management organization with world-class safety awareness, engineering capabilities, and ability to communicate with society, this committee will bring external perspectives to monitor and supervise the efforts of the Nuclear Reform Special Task Force which was established for the quick and strong implementation of the necessary reforms.
Second, based on the major points mentioned in various investigatory reports on the nuclear accident, this committee will organize issues and the direction of reinforcing measures including the method of running the Investigation and Verification Project Team.
Then, this committee will report the outcomes of the deliberations to the TEPCO Board of Directors. That is all.
I would like all members of the committee to work based on these contents of the deliberations.

<Please refer to the memorandum later>