Tokyo Electric Power Co. (TEPCO) today signed a purchase agreement with 
Beijing Guotou Energy Conservation Co. (BGECC)[Note 1], a Chinese state-run
renewable energy investment company, to purchase all of the carbon credits
that will be generated in the seven-year period between 2006 and 2012 under
the wind power generation CDM[Note 3] project to be implemented by Xinjiang
Guotou Wind Power Plant[Note 2], a subsidiary of BGECC, in Xinjiang Uygur 
Autonomous Region.

Under this project, Xinjiang Guotou Wind Power Plant will construct a wind
power plant with a total output of 30,000 kW (1,500 kW x 20 units) in Tuoli
on the outskirts of Urumqi, the capital city of Xinjiang Uygur Autonomous
Region, and sell the electricity generated by the wind power plant to the
local electric power company. With this, part of the electricity generated
by thermal power plants of the local electric power company will be replaced
by wind power generation, and the consumption of fossil fuels will be reduced.
Consequently, CO2 emissions are expected to be reduced by about 650,000 tons
during the seven-year period. TEPCO plans to purchase all of the CO2 emissions
reductions as carbon credits.

The details are as shown in the Appendix.

The project has already been approved as a CDM project by the governments
of China and Japan.

TEPCO´s management has addressed measures to control global warming as one
of its top priority tasks. TEPCO will continue to launch committed efforts
to cope with 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.

[Note 1] Beijing Guotou Energy Conservation Company
         Company Name:     Beijing Guotou Energy Conservation Company
         Company Location: Beijing, People´s Republic of China
         President:        Mr. Zhu Min
         Established:      1993
         Capital:          170 million yuan
         Business Lines:   Investment in new energy business, etc.

[Note 2] Xinjiang Guotou Wind Power Plant
         Company Name:     Xinjiang Guotou Wind Power Plant
         Company Location: Urumqi, Xinjiang, People´s Republic of China
         President:        Mr. Li ShuSheng
         Established:      2004
         Capital:          52 million yuan
         Business Lines:   Wind power generation business

[Note 3] 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 carbon sequestration), and acquire
         credits for emissions reduction amounts. Along with JI (Joint
         Implementation) and ET (Emissions 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 as set forth in the Kyoto
         Protocol in 1997.


Appendix
Outline of Wind Power Generation CDM Project in China