Kansai Electric to Restart Mihama 3 Reactor, Announces Bond Issuance

Kansai Electric Power (KEP) announced plans to restart the Mihama 3 nuclear reactor on October 10th, following repairs related to a water leak discovered during routine checks in September. The company identified a through-hole in a pipe connected to a high-pressure feedwater heater, attributing the issue to improper installation of exterior plating during 2010 maintenance, leading to corrosion. The damaged pipe has been replaced with a stainless steel alternative, and procedures have been updated to prevent recurrence.

Alongside the reactor restart, Kansai Electric completed a bond issuance totaling 45.2 billion yen. The offering comprises two tranches: a 21.7 billion yen five-year bond with a 2.831% interest rate and a 23.5 billion yen four-year bond with a 2.694% interest rate. Proceeds from the bond sale will be allocated to investments in nuclear power (safety and maintenance), decarbonization initiatives including hydrogen and carbon capture technologies, and modernization of the electricity grid. The company intends to deploy these funds by the end of March 2027.

The bond issuance comes as Kansai Electric, like other utilities, navigates a rising interest rate environment driven by increased government spending and demand from sectors like AI. The company obtained credit ratings of AA- from Rating and Investment Information, Inc. (R&I), A3 from Moody’s Japan, and AA+ from Japan Credit Rating Agency (JCR) for the bonds, indicating strong creditworthiness. The company has designated the bonds as “Transition Bonds”, linked to projects that support the shift towards a decarbonized economy.

Following the reactor restart on October 10th, KEP expects to begin adjustment operations on the same day, with a full resumption of operations scheduled for November 4th pending completion of comprehensive performance tests. This restart is a key operational step for KEP as it seeks to balance energy security with decarbonization goals.