The Tokyo Electric Power Company (TEPCO) has today notified the Minister
of Economy, Trade and Industry, effective April 1, 2006, to revise its
electricity supply contracts, including an average reduction of 4.01% in
electricity rates.

1.Reduction in Electricity Rates

To ensure customer satisfaction, TEPCO has worked incessantly to improve
product quality, ensure a stable supply of low-cost electricity, improve
management efficiency as far as possible and take its business to a
higher level of efficiency and effectiveness.
The further liberalization of the electricity market implemented in April
2005 has led to greater competition between electricity companies and
greater competition between different types of energy. In addition, the
necessary legislation has been enacted to enable greater facilitation of
back-end business, such as the "Law on the Creation and Management of
Reserve Fund for the Reprocessing of Spent Fuel at Nuclear Power
Stations."
As previously reported, despite the current steep rises in crude oil
prices, thanks to the improvement of effectiveness, we have decided to
implement the sixth price reduction in ten years from April 1, 2006.
TEPCO, as a company which continues to be preferred by customers, is
continuing improving its efficiency in order to maintain a stable supply
of low-cost electricity, and through top quality service is making a
considerable contribution towards the delivery of an enriching lifestyle
and comfortable environment.

2.Outline of Reductions in Electricity Rates





3.Outline of Fuel Cost Adjustment System



4.Optional Tariffs
--Denka Jozu with discount for all-electric homes is now even more
convenient--

TEPCO has an impressive line-up of options to enable customers to
reduce their costs even further through wise use of electricity (please
see the list of options on the next page)

Of these, "Denka Jozu" (season- and time-specific lighting) has attracted
a large number of customers since it was introduced in July 2000, and has
been very well received.  However, due to the recent growth in the number
of users of electric water heaters, we have now adjusted this option to
make it available to users of high-efficiency off-peak heat storage water
heaters.


.This plan is suitable for users of Ecocute (note), other night-time heat
 storage devices and off-peak heat storage water heaters which use little
 electricity during the night or in the mornings and evenings.
.Customers living in all-electric homes can avail of an extra 5% discount
 in electricity rates (excluding summer peak times)

(Note)Ecocute
      Ecocute is a heat-pump hot-water supply unit using CO2 as a coolant.
      It absorbs heat from the air and uses it to heat the water. It is
      thus energy efficient and environmentally friendly.
      Under the provisions of the Kyoto Protocol, we aim to have this
      system installed in 5.2 million homes by 2010, making it a major
      player in CO2 emissions reduction in the domestic sector.

"Options Menu"



5.Final Guarantee Clause Rate Adjustment

In exceptional cases, should customers living in the TEPCO supply region
not be able to reach an agreement on a contract with any retailer, price
reductions will apply when TEPCO guarantees supply to that customer, in
accordance with standard menu reductions (as in the past, this is
calculated as standard menu charges plus 20%).

6.Activities for the improvement of Management Efficiency

Together with the notification of these price revises, we have compiled
a "Activities for the improvement of Management Efficiency" booklet
which describes the activities carried out since the previous price
reductions were announced (September 2004) to enhance the efficiency of
our business.
The price reductions have been made possible thanks to our past
management streamlining activities and the anticipated benefits of the
streamlining measures we intend to implement from now on.  Our main
activities in this area are as follows:

.Reducing Capital Expenditures and Repairing Costs
 We aim to reduce capital expenditures while at the same time formulating
 and operating an efficient and flexible equipment infrastructure and
 maintaining a reliable supply of electricity.  In our 2005 Management
 Plan, we set annual investment in equipment for 2005-2007 at an annual
 average of ¥620 billion, which is approximately one third of the annual
 amount spent in 1993 when investment was at its peak.
 In conjunction with this, we are aiming to reduce repairing costs while
 maintaining safety and a stable power supply.

.Reduction in numbers of personnel
 We have reduced the number of our employees as part of our extensive
 streamlining program which includes a thorough restructuring of our
 organization and business processes, and equipment automation etc. As a
 result, the net system energy sales per employee continues to rise.

.Reduction in Interest Bearing Debt
 In order to achieve the targets stipulated in "Management Vision 2010"
 for improvements in financial standing (at least 25% shareholders'
 equity to total assets) we have been reducing our interest bearing debts
 and interest costs.  As a result, in the end of FY2004 debt levels had
 been reduced by 25% compared to the peak levels reached in 1996.

From now on into the future we intended to continue reducing costs
throughout the organization.

Appendix
Main Electricity Rates