UPDATE: Incoming Tepco Pres Warns Against Sidelining Of Nuclear Power

TOKYO (Dow Jones)--The incoming president of Tokyo Electric Power Co. (9501.TO) insisted Tuesday that the sidelining of nuclear power in Japan would be a waste, indicating his determination to restart idled reactors to turn around the huge power company's loss-making operations.
Naomi Hirose, a managing director at the utility who was tapped earlier in the day to become president, said "it would be a waste if Japan looks at nuclear power only from the point of view of all or nothing," though he also acknowledged that Japan's energy policy should ultimately be decided by the government.
Hirose, 59, also insisted that as Tepco had built up decades of expertise in running a utility it should be forthright in expressing its opinions over how its business and the industry should be run.
The remarks suggest the appointment of the Tepco insider to take over President Toshio Nishizawa's post marks the start of a delicate relationship between the government, which is pushing for aggressive restructuring and utility sector reform, and Tepco, a utility that still bristles with pride at its six-decade track record of ensuring a stable power supply.
Hirose said he aims to restart idled reactors at the utility's plant in Niigata, northern Japan.
"We hope to restart the Kashiwazaki Kariwa nuclear plant by conducting a thorough review of the Fukushima Daiichi nuclear disaster, while respecting the opinions of the host communities," he said in a comment that suggests the utility under his direction may be more prepared to push for the restarting of reactors.
Amid safety concerns following the Fukushima accident, Japan's last operating reactor was taken offline on Saturday, raising the prospect of energy shortages heading into the peak summer demand months.
Regarding reform of the energy industry as a whole, Hirose insisted Tepco's voice should be heard.
"We have know-how and expertise from experience of running this business for 60 years. We have to make our own views clear and participate in discussions" on utility sector reform, he said.
At the same time, he indicated that the company would benefit from the appointment of outside directors.
"Many of the tasks we are facing cannot be resolved on our own," he said. "By utilizing the expertise of new external directors and the government, we would like to make Tepco a better company."
Tepco's incoming Chairman Kazuhiko Shimokobe, the head of a government-backed bailout body who was tapped for the job last month, said he is working with Tepco to unveil a new management team on Monday as part of a fiscal 2011 earnings release. The new board is expected to draw the majority of members from outside the company. He added that he only decided on Monday to choose Hirose as Nishizawa's replacement.
"I chose a person who will be able to work with me toward the vision of creating a new Tepco," Shimokobe said.
On the government side, the minister Hirose will have to deal with in discussions over nuclear restarts and the future of the power industry welcomed his selection.
"He is someone who understands the points of view of customers and disaster victims and I am pinning strong hopes on the new team of Shimokobe and Hirose," said industry minister Yukio Edano, citing Hirose's experience of dealing with the nuclear compensation issue and also with sales.
At the press conference Hirose also said he wanted Tepco "to work hard to regain access to the capital market and become able to raise funds on our own."

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