Kansai Electric Power today submitted to the Kansai Bureau of Economy, Trade and Industry a report on the results of investigation into irregularities in the regular self-inspections of the Kansai International Airport Energy Center ("Kanku Energy Center")and other thermal power stations at ten locations (including the Himeji LNG center).

On April 28, Kansai Electric was instructed by the Bureau to investigate irregularities at the Kanku Energy Center and submit a report on the causes and countermeasures, and also to report on similar irregularities at other thermal power stations. Upon receiving this request, we set up a committee to investigate irregularities in regular self-inspections at thermal power stations, which includes outside parties, and began investigations. On May 31, we filed a report with the Bureau on irregularities at the Kanku Energy Center. The Bureau further requested us to conduct a more detailed investigation into these irregularities at the Center. We therefore prepared to conduct an in-depth study of the problems.

The results of the in-depth investigation were as follows.

1. Irregularities concerning compliance

The following facts were learned regarding data alteration and other irregularities concerning compliance.

(1) Regular self-inspections of the Kanku Energy Center
There were nine more irregularities from the previous report (total 58) for the following
reasons:

	-	One irregularity which was included in "other irregularities" in the previous report was now changed to "alteration of quality records."
	-	A new case, alteration of control criteria, was discovered.
	-	There were seven more arising from a change in counting the number of irregularities. When there are several spaces to be filled in for the same value, each space is now counted as one irregularity.

(2) Most recent regular self-inspections of other thermal power stations at ten locations Ten irregularities were found as follows:

	-	Alteration of measurement data (6)
	-	Alteration of control criteria (4)

(3) Voluntarily reported by power stations
In addition to the above investigation requested by the Bureau, we asked these thermal power stations to voluntarily submit reports on their own conduct regarding irregularities with compliance. We received the following 19 responses.

	-	Alteration of quality records (1)
	-	Production of analysis data and other records although no such actions were taken (8)
	-	Production of minutes although no meetings were held (10)

2. Delays in producing forms, data input errors, data transfer errors and other irregularities

As for delays in creating forms, data input errors, data transfer errors and other irregularities found during this investigation, there were 249 more irregularities (total 375) in the regular self-inspections of the Kanku Energy Center because of the discovery of new data transfer errors and the change in the way of counting these irregularities. At the other ten thermal power stations, a total of 3,197 irregularities were found during the most recent regular self-inspections.

3. Causes of irregularities

Our investigation found the following causes of the above-mentioned irregularities.

(1) Problems with the quality assurance systems

	-	Inadequate maintenance of the inspection mechanisms for quality assurance systems
	-	Inadequate guidance from the top management of division where the quality assurance systems are used
	-	Lack of systems for deterring data alteration
	-	Lack of internal checking functions

(2) Problems with attitude and corporate climate behind the irregularities

	-	Inadequate awareness of the importance of compliance
	-	Lack of awareness of accountability on quality requirements
	-	Poor communication in the workplace and between work areas and head/branch offices

(3) Problems with the method of legal compliance

	-	Improper specifications and other documents
	-	Lack of understanding of laws and in-house rules

4. Preventive measures

After carefully studying the above problems, we have devised the following preventive measures. In determining these measures, outside parties not only in the investigation committee, but also in the Kansai Electric’s Compliance Committee and the Quality/Safety Committee were invited to offer their opinions.

(1) Reconstruction of quality assurance systems

	-	Reconstruct systems for inspection
	-	Reconstruct quality assurance systems by top management of division, and enforce staff training and familiarization
	-	Construct document and record management systems by electronic means to prevent future wrongdoings
	-	Enhance the internal checking functions

(2) Improvement of attitude and corporate climate

	-	Enforce strict compliance
	-	Clarify the importance of accountability on quality requirements
	-	Improve communication in the workplace

(3) Improvement of the method of legal compliance

	-	Check the matching between specifications and regulations at thermal power plants
	-	Implement staff training on inspections in accordance with laws
	-	Set up a center for giving advice on laws and in-house rules

Further, we will review the security procedures, conduct employee training on compliance, and clarify the responsibility of officials in regular self-inspections.
Implementation of the above preventive measures and checks on the progress of implementation will be examined by the Quality/Safety Committee to make sure that these measures are effective and produce results.

We greatly regret that the above-stated irregularities were found. These irregularities should never have happened, and we sincerely apologize to all those concerned.

By seriously reflecting on the investigation results and thoroughly implementing these preventive measures, Kansai Electric is resolved to ensure these mistakes are never repeated. Our top priority now is to restore the trust of all those concerned.

·Investigation Results

·Causes of irregularities

·Preventive measures

·Implementation of immediate measures

·Outline of investigation regarding regular self-inspections at Kanku Energy Center and other thermal power plants