The United Nations CDM Executive Board on October 21, 2006 officially 
registered the wind power generation CDM [Note 1] project in Xinjiang
Uygur Autonomous Region, China, in which TEPCO plans to purchase about
650,000 tons of carbon credits (CERs). (Details of the project were 
announced in TEPCO´s press release dated June 22, 2006.)

Under this project, Xinjiang Guotou Wind Power Plant [Note 2], a subsidiary
of Beijing Guotou Energy Conservation Co. (BGECC) [Note 3], a Chinese 
state-run renewable energy investment company, constructs a wind power
plant with a total capacity 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 sells 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 is replaced by the wind power generation, and the consumption of
fossil fuels is reduced. Consequently, CO2 emissions are expected to be
reduced about 650,000 tons during the seven-year period between 2006 and
2012.
TEPCO plans to purchase all of the CO2 emission reductions as CERs. BGECC
applied for U.N. registration of the undertaking as a U.N. CDM project
in July 2006 in order to acquire CERs.
The wind power generation project is expected to be verified by the U.N.
Designated Operational Entities [Note 4] for issuance of CERs in the near
future. 
TEPCO´s management has addressed measures to cope with global warming as
one of its top priority tasks. TEPCO continues to launchcommitted 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] 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 emission 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.

[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 RMB
         Business Lines:   Wind power generation 

[Note 3] 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 RMB
         Business Lines:   Investment in new energy , etc.

[Note 4] The U.N. Designated Operational Entities
         A third-party body appointed by the U.N. CDM Executive Board, 
         which assesses and decides whether projects are eligible for 
         CDM status in its validation inspection, as well as verifying 
         and certifying greenhouse gas emission reductions. 

Appendix 
 Overview of Wind Power Generation CDM Project in China