Chubu Electric pulls Hamaoka restart bid

Chubu Electric Power plans to withdraw its applications for regulatory screening to restart the Nos. 3 and 4 reactors at the Hamaoka nuclear power plant in Shizuoka Prefecture. The applications were part of the company’s efforts to bring the reactors back online under post-Fukushima safety standards. The withdrawal effectively suspends the restart process for these units and introduces new uncertainty over their future use.

The decision comes at a sensitive time for nuclear power operations in Japan, where regulatory approvals and public confidence are critical for restart plans. By pulling the applications, Chubu Electric removes the Hamaoka units from the near-term restart pipeline and will need to reassess its approach before any future filing.

An independent investigative panel delivered a report of about 250 pages examining misconduct in seismic data handling during the restart review for Hamaoka Nos. 3 and 4. The inquiry focused on how seismic data, a key component in nuclear safety assessments, was collected and processed for regulatory screening. The panel concluded that there had been improper handling of this data.

The report found that management’s reprimands over delays were among the factors that contributed to the misconduct. Pressure related to schedule adherence was identified as influencing how staff managed the seismic information used in the screening process. These findings raised serious questions about the reliability of the data and the robustness of internal controls.

In response to the investigative findings, President Kingo Hayashi and Chairman Satoru Katsuno have decided to resign or otherwise step down from their positions. The leadership changes signal an attempt to take responsibility at the top management level for the misconduct uncovered in the review. They also reflect the gravity of the governance and compliance issues identified by the panel.

The company outlined these leadership decisions after receiving the report and considering its conclusions. The resignations are positioned as part of a broader response to restore trust in the company’s oversight of nuclear safety-related processes and its handling of critical technical data.

Chubu Electric’s shares fell as much as about 4.2% after initial reports that the company would withdraw the restart applications and after revelations about the data misconduct. The share price move indicates investor concern over both the loss of a potential future power source and the governance issues highlighted by the report. Markets reacted quickly to the combination of operational setback and leadership upheaval.

The developments represent a significant setback for Chubu Electric’s efforts to return the Hamaoka reactors to service. The company now faces the dual challenge of addressing the panel’s findings on data handling and rebuilding confidence among regulators, investors, and other stakeholders. Any future restart efforts will likely depend on demonstrating stronger internal controls and a more resilient compliance framework.