New Trouble at Fukushima Daiichi, Tokyo Electric to Receive Government Help

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--Early on the morning of Thursday, May 12, Tokyo Electric Power Company Incorporated (TYO:9501) (TEPCO) (Tokyo) noted that the water level in the reactor pressure vessel of Fukushima Daiichi nuclear power station Unit 1 had fallen more than a meter below the fuel rods, exposing the fuel. The utility company has determined that this situation is probably due to a major leak in the pressure vessel caused by fragments of molten fuel that have settled at the bottom of the chamber. TEPCO has been able to maintain temperatures of the reactor by pumping approximately 150 tons of water per day into the pressure vessel, but has been unable to determine why water levels in the pressure vessel have been difficult to maintain until now.

Unit 1 has been the center of activity over the past week since air filters and gauges were installed in the housing. TEPCO is attempting to lower radiation levels in the building to allow workers to spend longer periods of time inside. The first team was admitted to Unit 1 earlier this week to conduct radiation checks. This and the removal of contaminated water from the basement of the housing were the first steps in the process of cold shutdown, which the utility was hoping to continue this week. Cold shutdown processes for units 2 and 3 were to follow the same steps, but plans could see delay following the new trouble at Unit 1. Unit 3 has been of major concern as well, as temperatures have been on the rise this month. TEPCO is hoping to start construction on a new water delivery system sometime tonight.

The news of new trouble at Fukushima Daiichi was made public just hours after it was announced that the utility company had accepted government conditions for monetary assistance in compensating those affected by the nuclear crisis. TEPCO is expected to comply with six conditions including an unlimited compensation ceiling and a third-party financial investigation, which will effectively place the utility company under public management.

Japan's government also plans to acquire some of the company's shares in order to improve public involvement, and will also establish a separate organization in June that will deal directly with compensation efforts. TEPCO and other utility companies that own and operate nuclear energy facilities are to contribute money to the new organization, and government funds, rumored to be approximately $62 billion, will serve bankruptcy protection should compensation efforts exceed the payment capacity of TEPCO. The government has postponed a final decision on the amount of funds that it will provide to the compensation organization, and plans to convene again on Friday, May 13.

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