Tohoku Electric Power Company, Incorporated (9506.T) Bundle
From its founding on May 1, 1955, through the merger that created a unified utility for Japan's northeast, Tohoku Electric Power Company has evolved into a regional powerhouse serving six prefectures-Aomori, Iwate, Akita, Miyagi, Yamagata and Fukushima-beginning operations in 1956 and navigating crises such as the 2011 Great East Japan Earthquake and Fukushima disaster that prompted a strategic shift toward thermal and renewables and the eventual restarts of Onagawa Unit 2 in 2014 and again in 2024; today the company-publicly traded as 9506 on the Tokyo Stock Exchange-reports a customer base of about 7.6 million, total assets of ¥5.39 trillion with equity of ¥911.08 billion (as of 2024), an operating revenue of ¥2.64 trillion for FY ending March 31, 2025 (down 6.1% year‑on‑year), a market capitalization near ¥552.60 billion (Dec 12, 2025), and an ownership structure led by Japan Trustee Services Bank at 13.92%-financial strength the company leverages via generation (thermal, nuclear, hydro, renewables), transmission and distribution, construction and R&D to monetize electricity sales, grid services and ancillary businesses while targeting renewable expansion, operational efficiency and stable shareholder returns (interim and year‑end dividends forecast at ¥20 each for FY ending March 31, 2026) to sustain its position as Japan's fourth‑largest utility by revenue.
Tohoku Electric Power Company, Incorporated (9506.T): Intro
Tohoku Electric Power Company, Incorporated (9506.T) is a regional utility serving Japan's Tōhoku region (Aomori, Iwate, Akita, Miyagi, Yamagata, Fukushima). Its business spans power generation (thermal, hydro, nuclear, and renewables), transmission and distribution, retail electricity sales, and related energy services. The company has navigated major structural and operational shifts since its mid-20th century founding, including post-2011 energy reconfigurations and recent nuclear restarts.- Established: May 1, 1955 (post-merger of national and regional power entities).
- Commercial operations began: 1956, serving six Tōhoku prefectures.
- 2011 impact: Great East Japan Earthquake and Fukushima disaster-shutdown of nuclear facilities; pivot to thermal generation and accelerated renewables deployment.
- 2014 milestone: Onagawa Nuclear Power Station Unit 2 restarted - the first reactor restart in Japan post-Fukushima.
- 2019 corporate restructuring: Tohoku Electric Power Network Co., Inc. created to focus on transmission & distribution management.
- 2024 milestone: Resumption of operations at Onagawa Unit 2 reaffirmed as a key step in Japan's nuclear restarts.
- Generation mix: thermal (fuel oil, LNG, coal), hydroelectric, nuclear, onshore wind and solar - with an increasing share of renewables after 2011.
- Grid & distribution: regional T&D network managed via Tohoku Electric Power Network Co., Inc.; investments focused on resilience, smart-grid upgrades, and seismic hardening.
- Revenue streams: (1) electricity retail sales to households, businesses and industry; (2) wholesale and ancillary services; (3) construction, maintenance and energy solutions; (4) capacity and grid services.
- Cost drivers: fuel procurement (LNG, coal), carbon pricing and environmental compliance, O&M of aging assets, and capital expenditure for grid modernization and safety upgrades.
| Metric | Value (approx.) | Period / Notes |
|---|---|---|
| Revenue | ¥1.26 trillion | FY recent consolidated (approx.) |
| Operating income | ¥120 billion | FY recent consolidated (approx.) |
| Net income attributable to owners | ¥60 billion | FY recent consolidated (approx.) |
| Total assets | ¥3.2 trillion | Consolidated balance sheet (approx.) |
| Equity | ¥700 billion | Consolidated shareholders' equity (approx.) |
| Employees | ~11,000 | Consolidated headcount (approx.) |
| Ticker (Tokyo) | 9506.T | Tokyo Stock Exchange |
- Funding: mix of operating cash flow, corporate bonds, bank loans and retained earnings; periodic bond issuances to finance capital expenditures and safety upgrades.
- CapEx focus: nuclear safety retrofits and restarts, thermal efficiency improvements, renewable generation additions, grid reinforcement and smart-meter rollouts.
- Balance-sheet sensitivities: fuel-price volatility, interest rates (debt servicing), regulatory changes in electricity tariffs, and potential carbon/tax policy shifts.
- Electricity sales - core revenue from retail tariffs to households and commercial/industrial customers within the service territory.
- Wholesale & grid services - selling capacity, frequency/ancillary services and trading excess generation when available.
- Engineering & construction and O&M services - revenue from infrastructure projects, interconnection works and maintenance contracts.
- Renewables & ancillary businesses - feed-in tariff (FIT) and merchant sales from solar/wind, plus energy management services and demand response offerings.
- Seismic and natural disaster exposure - Tōhoku is earthquake-prone, necessitating high capital expenditure for resilience and safety.
- Regulatory risk - electricity tariff frameworks, nuclear policy, and decarbonization mandates affect margins and investment returns.
- Fuel price and supply chain risk - thermal generation economics depend on LNG/coal markets and procurement strategies.
- Public trust and nuclear operations - community consent, regulatory approvals, and safety compliance remain critical after 2011.
Tohoku Electric Power Company, Incorporated (9506.T): History
Founded in 1951 to consolidate regional electricity services in Japan's Tohoku region, Tohoku Electric Power Company, Incorporated (9506.T) grew through postwar reconstruction, rapid industrialization, and successive investments in thermal, hydroelectric and nuclear generation. The company expanded its grid, developed large-scale hydro projects, and later pursued diversification into renewables and grid stabilization following the 2011 Great East Japan Earthquake.- Established: 1951
- Primary service area: Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima, and parts of surrounding prefectures
- Key strategic shift post-2011: accelerated investment in grid resilience, non-nuclear generation and renewables
- Largest shareholder (as of March 31, 2024): Japan Trustee Services Bank, Ltd. - approx. 13.92% of shares
- Share listing: Tokyo Stock Exchange, ticker 9506
- Market capitalization: approx. ¥552.60 billion (as of December 12, 2025)
- Shareholder mix: institutional investors, individual shareholders, and government-related entities
- Dividend policy: stable dividends; interim ¥20/share and forecast year-end ¥20/share for fiscal year ending March 31, 2026
| Metric | Value | As of / Period |
|---|---|---|
| Total assets | ¥5.39 trillion | Fiscal year 2024 |
| Equity | ¥911.08 billion | Fiscal year 2024 |
| Market capitalization | ¥552.60 billion | Dec 12, 2025 |
| Largest shareholder stake | 13.92% | Mar 31, 2024 |
| Dividend (interim) | ¥20 / share | FY ending Mar 31, 2026 (forecast) |
| Dividend (year‑end, forecast) | ¥20 / share | FY ending Mar 31, 2026 (forecast) |
- Generation: mix of thermal, hydroelectric, and renewables (solar, wind), with phased nuclear capacity considerations post-2011.
- Transmission & distribution: owns and operates regional grid infrastructure serving households, industry and municipal customers across Tohoku.
- Retail & services: electricity retailing, demand-response programs, energy solutions for commercial customers, and investment in smart grid technologies.
- Investment focus: infrastructure maintenance, grid resilience, renewable capacity additions, and digitalization to reduce losses and enable new revenue streams.
- Electricity sales to residential, commercial and industrial customers constitute the core revenue stream.
- Regulated rate structures and fuel cost pass-through mechanisms influence margin stability.
- Capital investment and asset base (¥5.39 trillion total assets) support long-term depreciation-backed earnings and financing leverage.
- Dividend continuity and institutional ownership (largest holder ~13.92%) support access to capital markets for project financing.
Tohoku Electric Power Company, Incorporated (9506.T): Ownership Structure
Tohoku Electric Power Company, Incorporated (9506.T) is the regional utility serving Japan's Tōhoku area with a focus on stable supply, safety, environmental stewardship and community engagement. The company's mission centers on reliable energy delivery, continuous safety improvements, expansion of renewables, customer-focused services and R&D-driven innovation.- Mission and Values: Provide stable, reliable electricity across Aomori, Iwate, Miyagi, Akita, Yamagata and Fukushima prefectures while minimizing environmental impact.
- Safety: Adheres to strict operational safety standards, invests in disaster-resilient grid infrastructure and continuous staff training to protect employees, customers and the environment.
- Environmental sustainability: Accelerating deployment of hydroelectric, onshore wind and solar projects to reduce CO2 emissions and support Japan's carbon-neutral goals.
- Customer satisfaction: Offers energy efficiency programs, demand response, time-of-use tariffs and services for residential and commercial customers to optimize consumption and lower bills.
- Innovation and R&D: Invests in smart grid, battery storage and next-generation generation technology to improve operational efficiency and resilience.
- Community engagement: Implements regional revitalization projects, disaster recovery support and local employment initiatives across the Tōhoku region.
- Generation: Owns and operates a diversified mix-thermal (coal/gas/oil), hydroelectric plants, a portion of renewable capacity (wind/solar) and stakeholdings in nuclear-related assets-selling electricity to retail and wholesale markets.
- Transmission & distribution: Collects regulated transmission and distribution fees for maintaining regional grid assets and ensuring reliable delivery to end users.
- Retail services: Earns retail revenue from residential, commercial and industrial customers via electricity sales, value-added services (energy management systems, EV charging) and efficiency programs.
- Other revenue streams: Construction & maintenance contracts, power trading, asset leasing and government-backed subsidies for renewables and grid upgrades.
| Metric | Most Recent Fiscal Year (FY2023, consolidated) |
|---|---|
| Operating revenue | ¥1.15 trillion |
| Net income (profit attributable to owners) | ¥42 billion |
| Total assets | ¥4.7 trillion |
| Installed generation capacity | ~15 GW (thermal, hydro, wind, solar combined) |
| Employee count (consolidated) | ~16,000 |
| CO2 emissions intensity | Improving trend; ongoing shift toward renewables and lower-emission thermal plants |
- Shareholder base: Mix of domestic institutional investors, banks and individual shareholders; cross-shareholdings common among regional utilities and commercial partners.
- Major shareholders: Typically includes regional banks, Mitsubishi UFJ Trust & Banking (custody), and domestic asset managers (positions vary by reporting period).
- Credit profile: Rated by Japanese and international agencies with emphasis on regulated earnings from distribution, but exposed to fuel price and wholesale market volatility.
- Capital allocation: Prioritizes maintenance of grid reliability, safety investments, renewable capacity additions and debt management to support long-term regional service obligations.
Tohoku Electric Power Company, Incorporated (9506.T): Mission and Values
Tohoku Electric Power Company, Incorporated (9506.T) is a regional utility serving Japan's Tōhoku area. Its core mission combines stable power supply, regional revitalization, safety and environmental stewardship, and innovation to decarbonize electricity while maintaining reliability for residential, commercial and industrial customers. Mission Statement, Vision, & Core Values (2026) of Tohoku Electric Power Company, Incorporated. How It Works Tohoku Electric operates across two principal business segments - power generation & sales, and power transmission & distribution - supplemented by construction, engineering services, R&D, and customer-facing operations. The company's structure and operations center on producing electricity with a diversified fuel mix, managing the grid infrastructure in the Tōhoku region, and delivering end-to-end customer services.- Power generation mix: thermal (fossil fuels), nuclear (when reactors are operational), hydroelectric, and an expanding share of renewables (wind, solar, biomass).
- Transmission & distribution: regional grid assets that transmit bulk power from plants and interconnections, and distribution networks delivering low-voltage power to end users.
- Construction & engineering: in-house and subcontracted works for electrical, telecoms, civil engineering, and building projects that support plant and grid upgrades.
- R&D & innovation: investments in grid stability, hydrogen/ammonia co-firing trials, energy storage (batteries, pumped hydro), digital grid controls and safety technologies.
- Customer operations: metering, billing, demand-side management, energy services, and outage/restoration coordination.
| Item | Representative Metric / 2023-2024 Context (approx.) |
|---|---|
| Total installed generation capacity | ~15-18 GW (combined thermal, hydro, nuclear, renewables) |
| Annual electricity sales | ~40-60 TWh (regional retail & wholesale) |
| Segment split - generation & sales vs. transmission & distribution | Generation & sales: majority of operating revenue; Transmission & distribution: stable regulated earnings and OPEX recovery |
| Annual consolidated revenue (approx.) | ¥1.5-1.8 trillion |
| Operating income (approx.) | ¥80-140 billion (fluctuates with fuel costs and thermal utilization) |
| Total assets (approx.) | ¥3.5-4.5 trillion |
- Typical regulated items: allowed revenue, connection fees, grid reinforcements, emergency restoration cost recovery.
- Operational priorities: reliability (SAIDI/SAIFI targets), disaster resilience (earthquake/tsunami measures), and electrification readiness.
- Electrical works: plant upgrades, substation construction, cable laying.
- Telecommunications: private fiber/networks supporting grid telemetry and commercial telecom services.
- Civil engineering & building works: foundations, access roads, and facilities for generation and transmission assets.
- Decarbonization: testing hydrogen/ammonia co-firing, scaling renewables, and integrating battery storage and pumped-hydro.
- Grid modernization: digital SCADA/EMS upgrades, condition-based maintenance, and demand-side management platforms.
- Safety & disaster readiness: seismic reinforcement, rapid outage detection, and remote monitoring systems.
- Billing and metering: advanced metering infrastructure (AMI) rollouts for timely billing and demand-side insights.
- Customer support: call centers, online portals, outage notifications and restoration coordination.
- Energy solutions: tailored contracts for large industrials, energy efficiency consulting, and distributed generation interconnection services.
| Metric | Why it matters |
|---|---|
| Electricity sales (TWh) | Top-line driver; reflects demand and revenue volume |
| Fuel cost per MWh | Determines generation margin volatility |
| SAIDI / SAIFI | Reliability impact on customer satisfaction and regulatory review |
| CapEx (¥ bn / year) | Indicates investment in generation, grid, and resilience |
| Net debt / EBITDA | Balance-sheet strength and financing capacity |
- Scaling regional wind and solar projects and pursuing corporate PPA opportunities.
- Pilot projects for hydrogen/ammonia co-firing at thermal plants to reduce CO2 intensity.
- Investments in battery energy storage systems and digital grid controls to integrate variable renewables and provide ancillary services.
- Grid reinforcement and seismic hardening to shorten outage restoration times after natural disasters.
Tohoku Electric Power Company, Incorporated (9506.T): How It Works
Tohoku Electric Power Company, Incorporated (9506.T) operates as an integrated electric utility serving the Tōhoku region of Japan. Its core activities span generation, transmission, distribution, construction and engineering services, R&D and consulting, and occasional non-operating gains (e.g., sale of surplus nuclear fuel). The company balances conventional thermal and hydroelectric baseloads with growing renewables while managing grid reliability and regulatory obligations.- Primary business: retail electricity sales to residential, commercial and industrial customers in the Tōhoku region.
- Generation mix: combination of thermal (coal/gas), hydroelectric, nuclear (reactor restarts and fuel management), and renewables (wind, solar, biomass).
- Network operations: high-voltage transmission and local distribution networks, meter and billing services, outage management and grid upgrades.
- Engineering & construction: civil and electrical works for plants, substations and public/private infrastructure projects.
- R&D & consulting: technology licensing, grid optimization, and advisory services domestically and for overseas projects.
- Special items: proceeds from asset sales or surplus nuclear fuel have produced occasional special profits.
- Electricity sales: the largest revenue source - residential tariffs, time-of-use and contract pricing for commercial/industrial customers.
- Generation earnings: power produced at company-owned plants (thermal, hydro, nuclear, renewables) sold to the retail book and wholesale markets.
- Transmission & distribution charges: regulated network fees for delivery and grid maintenance passed through to customers under tariff frameworks.
- Construction & EPC contracts: income from plant construction, substation installation and civil works for third parties and internal projects.
- R&D licensing and consulting: fees and royalties from technology deployments, smart-grid solutions and external consultancy engagements.
- Non-recurring gains: proceeds from sales of fuel inventory, property or decommissioning-related recoveries that can create special profits impacting reported net income.
| Metric | Value / Notes |
|---|---|
| Service area population | Approx. 8-10 million people across Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima, parts of Niigata |
| Installed generation capacity | ~9-11 GW total (thermal dominant; hydro ~1.5-2.5 GW; renewables growing) |
| Annual electricity sales | ~60-70 TWh to retail customers (varies with demand and reactor restarts) |
| Consolidated revenue (most recent fiscal year) | Approximately ¥1.2-1.6 trillion (varies by fuel costs and commodity markets) |
| Operating profit / Net income | Operating profit typically in the tens of billions JPY; net income volatile due to fuel costs, special profits and asset items |
| Total assets | Approximately ¥3.5-4.5 trillion |
| Capital expenditures (annual) | ¥100-200 billion (grid upgrades, generation maintenance and renewables investment) |
| Debt & leverage | Significant long-term debt common for utilities; interest-bearing debt typically >¥1 trillion |
- Tariff structure: regulated base charges plus usage-based energy charges; seasonal and time-of-use pricing affect volumes and revenue.
- Fuel cost pass-through: thermal generation margins depend on coal/liquefied natural gas (LNG) prices and purchased power; pass-through mechanisms partially mitigate volatility.
- Capacity utilization: dispatch order (nuclear/hydro/thermal) and plant availability directly affect generation cost and margin.
- Network investment and returns: regulated returns on transmission/distribution assets provide stable cash flows but require ongoing capex.
- Renewables and subsidies: feed-in tariffs (historically) and procurement schemes support early-stage renewable earnings; merchant sales expose earnings to market prices.
- Residential supply: recurring monthly bills across ~3-4 million supply points (meters) - predictable, sticky revenue base.
- Industrial contracts: large-volume, negotiated tariffs for heavy industry and manufacturing customers - higher margin but demand-sensitive.
- Wholesale market sales: surplus generation sold into Japan's wholesale markets or bilateral contracts.
- Construction/EPC: multi-year contracts for plant upgrades and regional infrastructure augmenting operating income.
- R&D/licensing: smart-grid, storage and grid-optimization solutions licensed to municipal utilities or private clients.
- Fuel price volatility (LNG/coal) and carbon pricing influence generation costs and customer tariffs.
- Nuclear policy and reactor restarts: regulatory approvals, safety upgrades and local consent determine nuclear generation availability and profitability.
- Investment in grid resilience and renewable integration increases capex needs but supports long-term revenue stability.
- Demand trends: population decline in parts of Tōhoku and energy-efficiency improvements can reduce load growth, pressuring revenue unless offset by new services.
Tohoku Electric Power Company, Incorporated (9506.T): How It Makes Money
Tohoku Electric Power Company, Incorporated (9506.T) generates revenue primarily by selling electricity to residential, commercial and industrial customers across its six-prefecture service area and by diversifying into generation assets, wholesale power markets and renewables. The company leverages a mix of thermal, nuclear and renewable generation, grid operations, and energy services to monetize capacity, energy sales and ancillary services.- Customer base: ~7.6 million customers across six prefectures (retail electricity sales).
- Generation mix: thermal (fuel-based), nuclear (including restarted units), and growing renewable portfolio (onshore and offshore wind, solar).
- Wholesale & capacity markets: sales to other utilities, balancing markets and congestion/ancillary service fees.
- Grid services & transmission: regulated transmission and distribution revenue streams and grid stability services.
- New business lines: renewable project development, IPP-style power sales, and energy management services for businesses.
| Metric | Value |
|---|---|
| Service area | Six prefectures (Tohoku region) |
| Customers | ~7.6 million |
| Market position | 4th-largest electric utility in Japan by revenue |
| Operating revenue (FY ended Mar 31, 2025) | ¥2.64 trillion |
| Revenue change YoY (FY2025) | -6.1% |
| Nuclear milestone | Onagawa Unit 2 restarted in 2024 |
| Renewable investments | Offshore wind projects, onshore wind, solar development and storage pilots |
| Key strategic priorities | Operational efficiency, renewable transition, regulatory adaptation |
- 2024 Onagawa restart: Onagawa Nuclear Power Station Unit 2 brought back online in 2024, restoring baseload nuclear capacity and improving fuel-cost economics versus thermal-only generation.
- Renewable pivot: Capital allocation increasingly targets offshore wind and grid upgrades to integrate variable renewable output and meet national decarbonization targets.
- Financial pressure: FY2025 revenue decline (-6.1% to ¥2.64 trillion) reflects competitive retail markets, wholesale price volatility and regulatory shifts.
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