TEPCO to raise $262 mln for nuclear payouts

Tokyo Electric Power Co., operator of Japan's crippled Fukushima nuclear plant, plans to sell part of its stake in a wind power utility to raise funds for compensation payouts, a report said Sunday. The embattled company will sell a 20 percent interest in Eurus Energy Holdings to trading firm Toyota Tsusho for an estimated 20 billion yen ($262 million), the Nikkei business daily reported. Eurus Energy, Japan's largest wind power utility, is a joint venture owned 60 percent by TEPCO and 40 percent by Toyota Tsusho. Of the 20 billion yen TEPCO will receive from the sale, about half will be used to finance payouts for victims of the nuclear accident triggered by the March 11 quake and tsunami, the Nikkei said, without citing sources. TEPCO declined to confirm the report because "no decision has been made on the issue", it said in a statement. TEPCO is required to raise funds to meet compensation costs -- estimated by a government panel at 4.5 trillion yen by 2013 -- through cost cuts, asset sales and other restructuring, in addition to securing further state help. Eurus Energy operates wind farms in the United States, Europe and South Korea, as well as Japan. With renewable energy attracting greater attention worldwide, TEPCO will maintain a remaining 40 percent stake in the firm with an eye toward reaping gains on a future initial public offering, the Nikkei said.