Hokuriku Electric Power Company (9505.T) Bundle
Founded in 1951, Hokuriku Electric Power Company (9505.T) has for decades powered the Hokuriku region-serving Toyama, Ishikawa and parts of Fukui and Gifu Prefectures-and built a diversified generation mix of hydroelectric, thermal and nuclear assets to maintain reliable, affordable supply; today HEPCO faces pressing realities such as rising fuel costs and a corporate pledge to achieve carbon neutrality by 2050, driving a mission that stresses financial stability, customer trust, regional development and responsiveness to community feedback while its vision pushes expansion of comprehensive energy businesses and new growth domains, and its core values-"Let's create tomorrow," "Work with sincerity," responsibility, cooperation and producing quality-underscore safety, ethics, workplace reform and the pursuit of social contribution and employee well‑being.
Hokuriku Electric Power Company (9505.T) - Intro
Established in 1951, Hokuriku Electric Power Company (9505.T) has served as the primary electricity utility for Toyama, Ishikawa and parts of Fukui and Gifu Prefectures. Over seven decades the company has balanced reliability, affordability and regional development while adapting its generation mix and corporate strategy to market and regulatory changes.- Service area population: ~3.7 million residents (Hokuriku region)
- Number of customers: ~2.3 million (general + industrial)
- Corporate foundation: 1951
- Primary generation assets: hydroelectric, thermal (coal, LNG, oil-fired), and nuclear (Shika)
- Installed generation capacity (approx.): 5,400 MW total
- Typical generation mix (regionally representative): thermal ~60%, nuclear ~30%, hydro ~10%
- Key nuclear asset: Shika Nuclear Power Plant (Ishikawa Prefecture)
| Fiscal year | Revenue (¥bn) | Operating income (¥bn) | Net income (¥bn) | CapEx (¥bn) |
|---|---|---|---|---|
| FY2021 | ≈540 | ≈22 | ≈6 | ≈50 |
| FY2022 | ≈560 | ≈15 | ≈3 | ≈55 |
| FY2023 (est.) | ≈580 | ≈18 | ≈5 | ≈60 |
- Carbon neutrality target: align with Japan's 2050 net-zero goal; roadmap includes increased renewables, thermal efficiency improvements, and optimized nuclear utilization.
- Financial resilience: margin improvement plans to offset fuel cost volatility and commodity price pressures through efficiency, flexible procurement and selective rate adjustments.
- Operational efficiency: grid modernization, digitalization, demand response and distributed energy integration to reduce losses and enhance reliability.
- Regional development: promoting local electrification, industrial support and community energy projects to drive economic vitality in Hokuriku.
- Human capital & governance: work style reform, diversity initiatives, human-rights alignment and stronger risk governance frameworks.
| Metric | Recent value / status |
|---|---|
| Customer base | ~2.3 million |
| Peak demand (regional) | ~8,500 MW (seasonal peak variability) |
| Debt / total assets | Moderate leverage; active debt management and refinancing |
| Fuel cost exposure | High sensitivity to LNG/coal prices; hedging and procurement strategies in place |
| Capital expenditure horizon | ¥50-60bn annually (generation, grid, digital & safety) |
- Renewables expansion: deployment of utility-scale and distributed solar, small hydro and feasibility studies for offshore wind.
- Grid & storage: pilot projects for battery energy storage systems (BESS) and smart-grid demonstrations to improve flexibility.
- New business domains: energy-as-a-service, regional decarbonization partnerships, hydrogen feasibility and electrification solutions for industry.
- Social contributions: community resilience programs, disaster preparedness, affordability measures for vulnerable customers.
- Corporate governance: board-level oversight of sustainability, risk and compliance; continued alignment with Tokyo Stock Exchange governance principles.
- Work style reforms: flexible work arrangements, promotion of women and diverse talent, measures to improve work-life balance and productivity.
- Human rights & safety: strengthened safety protocols across thermal, hydro and nuclear operations; ongoing training and local stakeholder engagement.
Hokuriku Electric Power Company (9505.T) - Overview
Hokuriku Electric Power Company (9505.T) anchors its corporate identity around a clear mission: to provide a stable supply of electricity for the well-being of customers and the development of the Hokuriku region, while pursuing carbon neutrality by 2050, financial stability, responsiveness to stakeholders, trustworthiness, and continuous value creation.- Core mission: stable, reliable energy supply supporting social life, industry, and regional growth across Ishikawa, Toyama, and parts of Fukui.
- Environmental commitment: carbon neutrality target by 2050 with interim measures to decarbonize generation and improve grid efficiency.
- Financial focus: maintain a strong balance sheet and steady cash flows to fund grid investments, renewable rollout, and regional resilience projects.
- Stakeholder engagement: formal mechanisms for customer feedback, community dialogues, and crisis communication to maintain social license to operate.
- Innovation and growth: expand energy services beyond commodity supply (distributed energy, smart grid, electrification services) to create new regional value.
| Metric | Reference Period / Target | Value (approx.) |
|---|---|---|
| Consolidated Revenue | FY2023 (fiscal year) | ¥600-750 billion |
| Operating Income | FY2023 | ¥20-60 billion |
| Total Assets | Latest consolidated | ¥1.2-1.6 trillion |
| Electricity Sales | Annual (TWh) | ~20-25 TWh |
| Generation Mix | Approx. share | Thermal ~40-55%, Hydropower ~20-30%, Nuclear (capacity & dispatch variable), Renewables (wind/solar) growing |
| CO2 Emissions | Scope 1 (annual) | Several million tonnes CO2; reduction pathway to net-zero by 2050 |
| Net-Zero Target | Company policy | Carbon neutrality by 2050 |
- Grid resilience investments: ongoing reinforcement of transmission and distribution to reduce outage rates and improve disaster response-capital expenditures concentrated on aging infrastructure and seismic reinforcement.
- Decarbonization roadmap: phased reduction of fossil-fuel generation, expansion of utility-scale and distributed renewables, energy storage trials, and greater utilization of hydropower.
- Financial stewardship: conserve liquidity and manage leverage to sustain creditworthiness and fund CAPEX; dividend policy aligned with stable returns while preserving reinvestment capacity.
- Customer-centric initiatives: smart-meter rollout, demand-response programs, energy-efficiency consultation for households and industry, and tariff measures designed to balance affordability and investment needs.
- Reliability: SAIDI/SAIFI targets and outage frequency reduction year-over-year.
- Emissions: annual CO2 intensity (kg-CO2/kWh) and cumulative reduction vs. baseline years.
- Financial health: debt-to-equity ratio, interest coverage, free cash flow available for CAPEX.
- Customer satisfaction: survey NPS/CSAT and formal complaint resolution timelines.
Hokuriku Electric Power Company (9505.T) - Mission Statement
Hokuriku Electric Power Company (9505.T) positions its mission around regional co-development, energy transition, and innovation-led manufacturing to foster a spiritually rich society. The mission aligns operational focus, capital allocation, and stakeholder engagement toward long-term sustainability and regional prosperity.- Co-development with the Hokuriku region: reinforce local infrastructure, industrial partnerships, and community resilience across Toyama, Ishikawa, and Fukui prefectures.
- Comprehensive energy business: expand beyond power generation and retail into storage, distributed energy, and energy services tailored to regional industry and households.
- New growth cultivation: invest in renewables, hydrogen, digital energy platforms, and manufacturing innovation to diversify revenue and reduce carbon intensity.
- Carbon neutrality by 2050: set interim targets, decarbonize generation mix, and scale low-carbon technologies to achieve net-zero emissions.
- Safety and sustainability leadership: maintain top-tier safety performance and embed ESG across capital projects and operations.
- Regional anchor: be the primary electricity supplier in Hokuriku while serving as a growth engine for local economies and industries.
- Comprehensive energy services: integrate generation, retail, distributed resources, storage, and demand-side solutions into one offering.
- Portfolio diversification: grow renewable capacity and new business lines (e.g., hydrogen, grid services, EPC for manufacturing) to reduce exposure to thermal generation.
- Carbon-neutral transition: roadmap to 2050 with interim milestones for emissions, renewable share, and efficiency improvements.
- Manufacturing-led innovation: apply manufacturing discipline and R&D to energy technologies to create social value and "spiritually rich" communities.
| Metric | Most recent disclosed (FY basis) | Company target / vision |
|---|---|---|
| Carbon neutrality target | Net-zero by 2050 | Achieve 2050 net-zero; set interim decarbonization milestones |
| Electricity sales volume | ~28 TWh (approx., consolidated annual) | Stabilize domestic sales while growing new-energy service volumes |
| Renewable generation capacity | Several hundred MW operational (expansion ongoing) | Significant scale-up of renewables through FY2030 and beyond |
| Customers served | ~2.9 million (regional residential + commercial) | Maintain regional market share; expand energy service penetration |
| Employees (consolidated) | ~9,000 | Develop human capital for digital & low-carbon transition |
| Revenue (consolidated) | ~500-600 billion JPY (annual range, FY recent) | Grow total shareholder return via diversified business units |
| Safety & reliability | System average interruption duration index (SAIDI) and incident rates reported annually | Continuous improvement to industry-leading safety and reliability metrics |
- Renewable rollout: priority development of onshore wind, solar PV, and hydro upgrades leveraging local siting advantages and grid access.
- Grid modernization: invest in digital grid, smart meters, and storage to enable higher renewable penetration and two-way energy flows.
- Hydrogen and low-carbon fuels: pilot projects and partnerships to create supply chains for industrial and power-sector decarbonization.
- Energy services expansion: commercial offerings for distributed energy, EV charging infrastructure, and demand-response solutions.
- Regional manufacturing collaboration: joint ventures and technology transfer to apply manufacturing excellence to energy equipment and systems.
| Item | Indicative FY baseline | Implication for mission |
|---|---|---|
| CapEx (annualized) | Hundreds of billions JPY over multi-year plans | Prioritize transmission/grid upgrades and renewables |
| R&D & innovation spend | Targeted budgets for pilots and tech partnerships | Drive manufacturing and energy-technology breakthroughs |
| ESG reporting cadence | Annual sustainability & integrated reports | Transparency on emissions trajectories and progress |
| Debt & leverage | Managed to preserve credit profile while funding transition | Balance stability with strategic investment |
- Local communities: stable, affordable energy and economic opportunities from regional projects.
- Customers: expanded services, decarbonized supply options, and improved energy resilience.
- Investors: Clear mid- and long-term pathway to sustainable earnings and risk mitigation through diversification.
- Employees: reskilling and new roles aligned with electrification, digitalization, and low-carbon technologies.
Hokuriku Electric Power Company (9505.T) - Vision Statement
Hokuriku Electric Power Company (9505.T) frames its corporate vision around creating a secure, prosperous tomorrow for its customers, communities, and employees. The vision emphasizes safety and security, empathetic service, and continuous creation of value that supports regional development across Toyama, Ishikawa, and Fukui prefectures.- Let's create tomorrow - pursue innovation and sustainable energy solutions that enable regional resilience and long-term prosperity.
- Work with sincerity - transparent customer engagement, rigorous safety protocols, and accountable operations.
- Be responsible and cooperative - strengthen partnerships with local governments, businesses, and residents to solve regional social challenges.
- Produce good products and contribute to the development of society - deliver reliable electricity while advancing environmental and social goals.
- Safety & Security: Zero-tolerance approach to major safety incidents, routine investment in grid reliability and disaster preparedness.
- Quality & Service: Maintain high customer-satisfaction levels through stable supply, prompt outage response, and digital customer services.
- Ethics & Compliance: Firm adherence to the company Code of Conduct, promoting sincere and ethical corporate activities across all business units.
- Social Contribution: Active participation in regional economic development, renewable deployment, and community welfare initiatives.
| Metric | Value (approx.) | Context |
|---|---|---|
| Founded | 1951 | Established to serve Hokuriku region after national reorganization of utilities |
| Service area population | ~3.0 million | Toyama, Ishikawa, Fukui prefectures combined (approx.) |
| Workforce (consolidated) | ~5,000-6,000 employees | Operations, maintenance, customer service, and corporate staff |
| Annual electricity sales | Millions of MWh (regional-scale) | Serves industrial, commercial, and residential customers in Hokuriku |
| Capital allocation priorities | Grid resilience, renewables, safety systems | Ongoing investments to balance decarbonization with supply stability |
- Safety investments - continual upgrades to substation protection, seismic reinforcement, and emergency response drills.
- Customer focus - metrics-based targets for outage duration (SAIDI/SAIFI improvement programs) and customer satisfaction surveys.
- Ethical governance - mandatory compliance training and adherence to the Code of Conduct for all employees and executives.
- Community engagement - collaborative projects with municipal authorities, vocational training partnerships, and local energy initiatives.
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