As part of the carbon credits (Note 1) Tokyo Electric Power Company (TEPCO)
is committed to purchase from the Chilean Methane Recovery Projects 
(formally announced on August 24, 2004), approximately 48,000 tons of
carbon credits were issued by the UN for 2004 on March 31.

Under this project, Chilean food processing giant Agrosuper (Note 2) has
built state-of-the-art closed manure treatment system in five of its pig
farms. Methane gas (Note 3) is recovered from the treatment system and
burned off, reducing emissions of greenhouse gas by about 400,000 metric
ton carbon dioxide equivalent (t-CO2e) a year.
In September 2005, the Chilean Methane Recovery Project was officially
registered by the UN as a Clean Development Mechanism (CDM) (Note 4)
project (formally announced on September 5, 2005).  The UN accredited
Designated Operational Entity (Note 5) has since verified the emission
reductions concerning carbon credits generated between 2001 and 2004 at
one of its pig farms.

TEPCO will purchase approximately 2 million t-CO2e of carbon credits
generated by the projects in a nine-year period from 2004 to 2012.
The credits issued this time will be purchased as part of the 2004 credits.
It is expected that carbon credits will be issued for the remaining four
pig farms following subsequent verification.

TEPCO will continue to work for the achievement of its global environmental
contribution targets (reduction of CO2 emission intensity by 20% below 1990
levels by fiscal 2010) set forth in the Management Vision 2010.  Towards
this goal, TEPCO will launch committed efforts to combat global warming at
home and abroad by implementing various measures to improve the efficiency
in supplying and using electricity in Japan and acquiring carbon credits
through active cooperation in overseas projects.

Reference 1:Outline of Chilean Methane Recovery Project
Reference 2:Flow of Clean Mechanism (CDM) Project

(1) Carbon Credit
A system under which developed nations and economies in transition have 
the right to use emission reductions and absorbed volumes to offset
emissions of greenhouse gases.

(2) Agrosuper
.Company Name: Agricola Super Limitada
.Company Location: Rancagua, Chile
.President: Mr. Gonzalo Vial
.Established: 1982
.Main Business:
  .Food manufacturing, processing and sales.  Chile's largest meat
   processing group.
  .Chicken and pig farming (approximately 2,000 chicken houses and pig
   stables). Processing is the core business, and the company produces
   approximately 200,000 tonnes of meat a year.
  .The company is targeting meat, fruit juice and wine markets in Asia,
   and in 2004 opened an office in Tokyo.

(3) Methane Gas
Because methane gas is twenty-one times more potent a greenhouse gas than
carbon dioxide, greenhouse gases can be reduced by burning the gas, which
turns it into CO2 and water.

(4) Clean Development Mechanism (CDM)
A system under which developed nations and economies in transition take
part in projects in developing countries to reduce greenhouse gas emissions
(or increase sinks), and then get credits for emission reduction amounts.
Along with JI (Joint Implementation) and ET (Emission Trading), this is
one of the initiatives of the Kyoto Mechanism. The Kyoto Mechanism is an
economic mechanism which allows for more flexibility in greenhouse gas
reductions. It is part of the "Kyoto Protocol" adopted at the The 3rd
Session of the Conference of the Parties to the United Nations Framework
Convention on Climate Change (COP3), which was held in Kyoto in 1997.

(5) Designated Operational Entity
A third-party body accredited by the UN CDM Executive Board, which assesses
whether projects are eligible for CDM status and verifies greenhouse gas
emission reductions.