TEPCO President Steps Down Over Fukushima Nuclear Crises

May 20, 2011 — -- Masataka Shimizu, the president of Tokyo Electric Power Co., stepped down Friday amid spiraling financial losses related to the ongoing nuclear crisis at the crippled Fukushima Dai-ichi power plant.

Shimizu's resignation was widely expected, and it came on the same day the utility, commonly known as TEPCO, reported the biggest losses in the history of the company.

"[The Fukushima crises] has caused a caused a considerable amount of anxiety and burdened the public tremendously," Shimizu told reporters. "Considering those factors, I must take responsibility. It's important to draw a line, right now."

A magnitude 9.0 earthquake and tsunami on March 11th crippled the Fukushima reactors, and sparked the world's worst nuclear disaster since Chernobyl. Three reactors went into meltdown, after the cooling systems failed. More than two months after the crises began the reactors continue to spew radiation, as workers have faced one setback after another, in their efforts to stabilize the reactors. Some 80,000 residents living near the nuclear plant remain displaced, and will not be allowed to return home for at least a year.

TEPCO reported its losses for the fiscal year that ended in March totaled $15 billion, the largest in the company's 60-year history. The amount reflects the cost to scrap damaged nuclear reactors, but overall losses from the Fukushima disaster are expected to be much larger. The company still needs to compensate thousands of evacuees and businesses forced out because of unsafe radiation levels.

Last week, the government agreed to set up a fund financed by taxpayers and other utilities to help TEPCO pay for the ballooning costs. The company still has not given an estimate on the likely cost of compensating victims.

The utility and the Japanese government have come under increasing criticism over their handling of the nuclear disaster. In the weeks following the tsunami -- Shimizu was criticized for not appearing in public amid a company crisis. He was later hospitalized for exhaustion. Shimizu has spent the last month visiting evacuation centers and apologizing to victims.

Fukushima governor Yuhei Sato, a vocal critic of TEPCO, called Shimizu's resignation "an obvious move."

Current managing director Toshio Nishizawa will take over as TEPCO president. The board is expected to make it official next month.

Managing Director Toshio Nishizawa will replace Shimizu as TEPCO president.