TEPCO to Set Up "Decommission Company" as a Separate Division Within TEPCO, National Government to Support TEPCO with 10 Trillion Yen

Details are to be announced By TEPCO's president Naomi Hirose at a press conference starting at 5PM, December 20, 2013, according to TEPCO's tweet.

"Decommission Company" is not going to be a separate company with separate capital but a company within TEPCO, more like a division. The idea was first floated in October this year at an LDP work group on recovery and reconstruction.

Now, why would they do that, instead of setting up a separate company? I have some ideas but they are not firm yet. I'll wait till I hear Mr. Hirose.

This "Decommission Company" will be in charge of decommissioning Fukushima I Nuclear Power Plant and dealing with contaminated water at the plant. Two disparate objectives it seems to me, but clearly not to LDP or TEPCO.

Reuters Japan reports (12/20/2013) that the national government will increase the amount of loan to TEPCO for decontamination and compensation from 5 trillion yen to 9 trillion yen. In addition, the government will pay 1.1 trillion yen to cover the cost to build the intermediate storage facilities for the contaminated soil removed as the result of decontamination. The cost of building the intermediate storage facilities was to be paid by TEPCO.

Total support of over 10 trillion yen, with the national government paying, not just TEPCO. Now it's getting halfway to the amount that some people say will cost to decommission and decontaminate.

If Japan had been to print money in great quantity and spend it, it would have been after March 2011. It didn't. The government of Democratic Party of Japan, whether under Naoto Kan or Yoshihiko Noda, was too busy putting the blame of the accident on TEPCO and looking for cheap solutions. They sure found the cheapest solution: talk.

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