Reports: Japan to Take Control of TEPCO

Posted May 9th, 2012 at 6:40 am (UTC-5)
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Media reports say the Japanese government is taking control of the operator of Japan's crippled Fukushima nuclear plant.

Kyodo news agency said Wednesday that Japan will inject more than $12 billion in public funds into the Tokyo Electric Power Co., effectively nationalizing one of the world's largest private utilities.

The report said the financially troubled TEPCO will be placed “under temporary state control” as part of a 10-year restructuring plan to help keep it afloat.

The utility faces tens of billions of dollars in compensation and recovery costs following last year's earthquake and subsequent tsunami.

The tsunami knocked out the plant's cooling systems, causing three of its reactors to melt down and leading to widespread radiation leaks.

The government announced late last year that the plant's reactors had been stabilized, but that it will take up to 40 years to safely decommission the facility.