May 14, 2004

Tokyo Electric Power Co. has decided to contribute a total of US$2.5
million (about Y300 million) by 2020 to the BioCarbon Fund (BioCF)
launched by the World Bank. By means of this contribution, TEPCO can
expect to acquire some 500,000 t-CO2 equivalent of carbon credits
over the course of the next 16 years until 2020.

The recently-launched BioCarbon Fund is a fund aimed exclusively at
facilitating investment in long-term and continuous projects, such as
forestry management, afforestation, use of biofuels, and fostering
sustainable agroforestry. The decision to contribute to this fund was
prompted by TEPCO's recognition of the fund's importance not only in
terms of obtaining carbon credits, but also in terms of providing
valuable services to the environment and society, by, for example,
conserving the natural environment and creating jobs in local
communities.

Moreover, forestry management activities in developing countries, such
as the thinning of forests, are not currently recognized as part of
the Clean Development Mechanism (CDM), one of the Kyoto Mechanisms.*
Therefore, in support of the World Bank, TEPCO hopes to make a
contribution that might enable forestry management activities to be
recognized as part of the CDM in the future, through verification of
the carbon sequestration effect of forests using specific examples
from projects supported by the fund.

TEPCO, regarding environmental conservation as one of the company's
most important concerns, has long been actively involved in addressing
climate change within Japan through the promotion of such measures as
the so-called "best mix" approach to power generation where nuclear
power plays the central role, improvement of thermal efficiency at
thermal power plants, and promotion of energy saving activities.

Furthermore, TEPCO was one of the first parties to join international
efforts utilizing the Kyoto Mechanisms. It has already contributed
US$8 million (about Y900 million) to the Prototype Carbon Fund (PCF)**
launched by the World Bank in 2000, and TEPCO's contribution to the
BioCarbon Fund is its second to the World Bank's carbon funds. 

TEPCO is determined to continue to make an environmental and social
contribution through the promotion of effective greenhouse gas
sequestrations and conservation of the environment at the global level,
in addition to promoting climate changfe countermeasures and
environmental protection within Japan.

*Note 1: Kyoto Mechanisms
 The Kyoto Mechanisms provided in the Article 6, 12 and 17 of the
 Kyoto Protocol are flexible mechanisms for a country to offset its
 greenhouse gas emissions with other countries' carbon credits and
 emission reductions or sequestrations  abroad. The three
 Kyoto Mechanisms are:
  1)Clean Development Mechanism (CDM)
    Annex I countries (Developed and Economies in Transition countries)
    of the Kyoto Protocol assist projects to reduce emissions or
    increase sequestrations of greenhouse gases in non-Annex I
    countries (developing countries) and obtain Certified Emissions
    Reductions  generated by the projects.
  2)Joint Implementation (JI)
    Annex I countries of the Kyoto Protocol jointly implement projects
    to reduce emissions or increase sequestrations of greenhouse gases
    in other Annex I countries and obtain carbon credits generated by
    the projects.
  3)Emissions Trading (ET)
    Annex I countries of the Kyoto Protocol trade (obtain/transfer) 
    carbon credits with other Annex I countries.

**Note 2: Prototype Carbon Fund (PCF)
 The Prototype Carbon Fund is a fund launched by the World Bank in
 2000, with the aim of facilitating investment in projects to reduce
 greenhouse gas emissions on a global scale, utilizing the Kyoto
 Mechanisms. Participants of the fund receive carbon credits created
 by the projects in return.
 TEPCO expects to obtain some 1.5 million t-CO2 equivalent of carbon
 credits and also hopes to increase its knowledge of the operation of
 the Kyoto Mechanisms and methods of evaluating projects.