[Cost Reductions]Power purchase and fuel expenses (FY2012)

• Procurement expenses of materials and services
• Power purchase and fuel expenses
• Personnel expenses
• Other expenses
• Facility Investments

Specific measures
Items	Contents
Reduction of Fuel Prices (Unit Prices)	Fuel conversions of emergency power sources from light oil to cheap city gas. Reduction of agency commissions for LNG imports Reduction of fuel prices for newly installed power supply sources
Application of Efficient Power Sources	Cost reduction via streamlining of daily operations based on discussions with relevant parties In order to increase the availability factor of LNG fired thermal power plants whose costs are relatively low Increase in amount of power received from cheaper power sources available from other companies'
Reduction of Power Purchase Expenses	Negotiate to reduce unit prices at the time of re-signing Negotiate to have jointly owned thermal power companies and in-house power generation producers etc. reduce their fixed costs etc.
Utilizing the Japan Electric Power Exchange (JEPX)	Reduce fuel costs by purchasing cheaper power from JEPX Increase power sales to other companies by selling power through JPEX
Reduction of Fuel Costs from a Mid-to-Long Term Perspective	In order to stabilize fuel procurement and minimize purchase costs, we will implement measures such as constructing and operating fuel facilities with outside parties, procuring fuels with outside parties, and diversifying procurement sources.

*The revise of electricity rate applied on May 11, 2012 was approved on July 25 in the same year after reflecting the instruction based on the assessment policy of the Ministry of Economy, Trade and Industry.
TEPCO considers further cost reduction based on the above instruction as well.

Asset Sales