Reply #30: Quake may lead TEPCO to use thermal power-analysts [View All]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070717:MTFH52680_2007-07-17_08-06-01_T293373&type=comktNews&rpc=44

TOKYO, July 17 (Reuters) - The unplanned closure of Tokyo Electric Power Co.'s quake-hit nuclear plant during the peak season could force Asia's lagest utility to restart fossil fuel power plants, leading to increased demand for non-nuclear fuel, analysts said on Tuesday.

TEPCO (9501.T: Quote, NEWS , Research) does not anticipate an electricity shortage in the short term, but the indefinite shutdown of the 8,212 megawatt-power plant, the world's largest, could mean it facing a power crunch this summer, which is forecast to be hot, they said.

Asia's largest utility was told by the government to delay restarting its Kashiwazaki-Kariwa plant, located near the focus of Monday's quake, until its safety can be ensured.

"If the Kashiwazaki plant is going to be closed for a long time, TEPCO will have to make a decision about when to restart its thermal power plants fairly quickly," said an official at Japan's Institute of Energy Economics.

"If it decides to run thermal plants, the company will have to buy fuel oil from the spot market," he said.

Toshinori Ito, a senior analyst at UBS Securities Japan, said TEPCO could overcome a possible shortage by seeking help from other utilities or asking big users to limit usage of electricity during the summer season.

The IEEJ official agreed TEPCO could turn to other utility companies for extra electricity supplies, although he said there was a possibility this would be insufficient if consumption at other utilities rises during the peak season.

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