Aug 2 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Kyodo News International, Tokyo

Chubu Electric Power Co. will consider filing a damages suit against Hitachi Ltd. regarding an accident that led a nuclear reactor in Shizuoka Prefecture to shut down in June, Chubu Electric sources said Wednesday.

Chubu Electric is expected to seek more than 100 billion yen in compensation if the No. 5 reactor at the Hamaoka nuclear power plant in Omaezaki remains out of action until the end of March next year, they said.

The reactor automatically shut down on June 15 following excessive vibration in the Hitachi-made turbines. Turbine blades have been found cracked or broken in the turbines.

Chubu Electric has lowered its pretax profit projection by 100 billion yen to 95 billion yen for the current fiscal year through the end of March as it estimates operating costs to increase by up to 128 billion yen if the rector remains shut down. The company has to cover a fall in electricity generation from the shutdown by more costly thermal power generation.

"We are currently looking into the cause (of the accident), and we will deliberate seeking damages based on the results of the investigations," Chubu Electric said in a statement.

A Hitachi official said, "We are making all-out efforts to investigate the cause at this stage and there have been no damages claim at this current moment." Hokuriku Electric Power Co. may also file a damages suit as it has also shut down a reactor at its Shika nuclear plant in Ishikawa Prefecture which uses the same type of turbine, sources familiar with the case said.