Hokuriku Electric Power Company

Business Details

The company operates power generation using hydroelectric, thermal, and renewable energy sources, along with electricity retail business, primarily in the three Hokuriku prefectures (Toyama, Ishikawa, Fukui) and part of Gifu Prefecture. Lighting and electricity charge revenue is the mainstay, with wholesale sales to other companies via the wholesale electricity exchange and other channels also conducted. Units 1 and 2 of the Shika Nuclear Power Station remain shut down. In FY2026 (ending March 2026), total electricity sales volume increased 3.8% year on year to 33,140 million kWh, but revenue declined due to lower fuel cost adjustment revenue and a decrease in capacity procurement contract amounts.

Recent Overview

Revenue declined year on year due to lower fuel cost adjustment revenue, but ordinary income increased on higher hydroelectric generation and sales volume

In the Power Generation & Sales Business for FY2026 (ending March 2026), total electricity sales volume increased 3.8% year on year (retail up 2.2%, wholesale up 9.0%), but revenue declined to ¥656,298 million (94.2% of the prior period) due to lower fuel cost adjustment revenue and a decrease in capacity procurement contract amounts. On the other hand, an increase in hydroelectric power generation and receipt volume and higher total electricity sales contributed to an increase in ordinary income to ¥66,363 million (108.0% of the prior period). The unplanned shutdown of Unit 2 at the Nanao-Ota Thermal Power Station affected supply. Following the decision to decommission Unit 1 (Mikuni) at the Fukui Thermal Power Station, an extraordinary loss of ¥8,738 million on thermal power station decommissioning was recorded. Electricity and gas rate support subsidies of ¥17,860 million are included in revenue.

Key Products

Growth Drivers

• Expansion of the sales base through an increase in total electricity sales volume (FY2026 (ending March 2026): up 3.8% year on year, with wholesale sales up 9.0% year on year)
• Contribution to ordinary income through utilization of low-cost power sources via increased hydroelectric power generation and receipt volume
• Diversification of revenue through expanded sales to other companies via the wholesale electricity exchange and other channels
• Strengthening of the corporate retail sales base through an increase in contracted electricity
• Future enhancement of supply capacity and decarbonization response through construction of the Toyama Shinko Thermal Power Station LNG Unit 2 and other projects

Risks

• Supply capacity constraints and fixed cost burden due to the continued shutdown of Units 1 and 2 at the Shika Nuclear Power Station
• Impact of the shutdown of Unit 2 at the Nanao-Ota Thermal Power Station (a continuing impact is factored into the forecast for FY2027 (ending March 2027))
• Risk of fluctuation in fuel cost balance due to fuel cost adjustment time lag (a decrease in fuel cost adjustment revenue pressures revenue)
• Impact on earnings from a decrease in capacity procurement contract amounts
• Occurrence of facility outages and restoration costs due to natural disasters such as the 2024 Noto Peninsula Earthquake and the Oku-Noto heavy rainfall
• Risk of fluctuation in fuel prices for coal, LNG, and other fuels, and in exchange rates (FY2027 (ending March 2027) assumptions: crude oil $100/barrel, LNG $700/ton, exchange rate ¥155/dollar)
• Risk of erosion of the retail sales base due to intensifying competition in the electricity market