Aiming at further growth and development of the Group and sustainable 
improvement of the Group´s corporate value, Tokyo Electric Power Company 
(TEPCO) established its "Fiscal 2007 Business Management Plan" which 
organized the challenges to be intensively addressed over the next three 
years and major management targets.

This plan is compiled from specific action plans to achieve the targets 
declared under the TEPCO Group´s medium-term management policy "Management 
Vision 2010"  (established in October, 2004) in which fiscal 2010 is set 
as the target year, in accordance with the three Group Management Guidelines, 
i.e., "Win the Trust of Society," "Compete and Succeed" and "Foster People 
and Technologies."

Main points of the Fiscal 2007 Business Management Plan are as follows:

[Reinforcement of Efforts to Restore Public Confidence]
Based on the hard lessons learned from the cases of inappropriate handling 
such as falsification of data on power generation facilities and inadequacy 
in procedures of laws and regulations, we regard the restoration of public 
confidence in siting areas and society at large as the most important and 
urgent challenge, and the TEPCO Group will make group-wide efforts.

  Expansion of measures for recurrence prevention
   (1)Measures for awareness (culture of not doing anything wrong)
      1. To improve the contents of provisions of "Behavioral Standards on 
         Corporate Ethics"
      2. To improve the study and training of corporate ethics in line with 
         characteristics of each department
      3. To sign a written oath to comply with corporate ethics
      4. To further promote people-to-people exchanges between departments 
         and between establishments
   (2)Measures for mechanism (mechanism of not allowing anyone to do 
      anything wrong)
      1. To review corporate rules and manuals to make them appropriate to 
         the facilities and operations at front-line workplaces
      2. To reinforce and improve internal audit functions
   (3)Measures for mechanism (mechanism to encourage employees to confess)
      1. To reinforce the mechanism to reflect the opinions of siting areas 
         and local community in the management of operations
      2. To review operations intensively through the creation of Operations 
         Inspection Month, etc.
      3. To improve the mechanism to manage trouble and malfunctions of 
         facilities
      4. To reinforce the support to ease the worry caused at front-line 
         workplaces due to the pressure of operations
      5. To reinforce the functions of legal affairs and compliance to 
         support front-line workplaces
      6. To review the management of operations of the nuclear power division
 
I. Win the Trust of Society
While aiming at restoring confidence by making thorough efforts to 
comply with corporate ethics and laws and regulations, we will try 
to ensure stable supply and energy security.

 1) Outlook for Electric Power Demand
  a) Electricity sales
      • The average growth rate from fiscal 2005 through fiscal 2016 
        is 1.1% (after air temperature and intercalary adjustment)
      • Up 2.0% from the previous fiscal year in fiscal 2007
  b) Peak demand
      • The average growth rate from fiscal 2005 through fiscal 2016 
        is 0.9% (after air temperature adjustment)
      • 61.1 GW (one-day peak at generation end) in fiscal 2007

  2)Power Generation Facility Plan
    TEPCO will continue to steadily promote the best mix of power sources 
    centered on nuclear power based on its fundamental duty to ensure 
    stable supply and energy security, with overall consideration of 
    factors such as economics, operability and environmental compatibility.

 3) On-Target Measures Against Global Warming Issues
    With an aim to achieve the target* of "reducing the five-year 
    (fiscal 2008-2012) average of CO2 emission intensity by 20% from 
    the fiscal 1990 level, "we will promote the following efforts:
    • Safe and stable operation of nuclear power stations that contribute 
      to reduction in CO2 emissions
    • Improvement of thermal efficiency of thermal power generation
    • Expansion of utilization of renewable energy through fulfillment 
      of obligations prescribed by RPS Law
    • Acquisition of carbon credits from overseas greenhouse gas 
      reduction projects

     * To keep pace with the first commitment period (2008-2012) of 
       the Kyoto Protocol, the evaluation basis has been changed to 
       a five-year average under this plan.

II. Compete and Succeed
Amid intensifying competition, our group as a whole will provide 
services to meet diversified and sophisticated needs of customers 
in order for us to be continuously selected by customers.  Moreover, 
we will also promote cost reduction in every field and make efforts 
to further reinforce our price competitiveness.

 1) Promotion of Sales Expansion Strategy
    During the three-year period from fiscal 2007 through fiscal 2009, 
    we plan to find new markets for a total of about 6 billion kWh of 
    electricity sales, and aim to achieve the target ("expanding sales 
    volume by 10 billion kWh or larger" on a cumulative total basis 
    from fiscal 2004 through fiscal 2010) of "Management Vision 2010" 
    earlier than originally planned.

  <Corporate and Large-Scale Customers>
    • For business use
      To promote further electrification in the fields of air-conditioning, 
      hot water supply and kitchen by utilizing heat storage systems, 
      high-efficiency heat source equipment, heat pump water heaters, 
      electrified kitchens, etc.

    • For industrial use
      While promoting the electrification of production processes by 
      means of electric heating, heat pumps, etc., we will cooperate 
      with our group companies* to provide customers with total energy 
      solution services for optimum energy use by utilizing our gas, NAS 
      batteries, boilers, etc.

      * Tokyo Toshi Service Company, Toden Kogyo Co., Ltd., Japan Facility 
        Solutions, Inc., etc.

    • To help local governments promote activities to entice businesses, 
      including plants, and companies to consider siting.

  <Residential Customers>
    • TEPCO aims to promote the diffusion of all-electric houses that 
      utilize highly efficient and convenient equipments such as Eco 
      Cute, IH cooking heaters, etc., and increase more than 200,000 
      all-electric houses (annual increase) in fiscal 2009.

 2) Efforts for Cost Reduction 
    To achieve the operation efficiency improvement target (20% or higher 
    improvement by fiscal 2010 from the fiscal 2003 level) under the 
    "Management Vision 2010," we will make group-wide efforts to reduce 
    costs in all fields in ways such as streamlining facility configuration, 
    operation and maintenance and reviewing business processes, with 
    facility safety and securing quality as major premises.

  <Capital Expenditure Levels>
     The three-year average amount of capital expenditures in fiscal 2007-2009 
     is set at about 640 billion yen.

 3) Promotion of Profitable New Businesses to Ensure Growth Potential
    We will promote new businesses toward sustainable growth and development 
    by utilizing our management resources and group-wide power in four 
    fields, i.e., "information and communication business," "energy and 
    environmental business," "living environment and lifestyle-related 
    business," and "overseas business."
    We will promote the businesses derived from the electricity industry 
    and particularly reinforce our efforts in "energy and environmental 
    business" (such as fuel business) and "overseas business" (such as 
    power generation business), which could be the core of expansion of 
    our sales and profits.

  <Targets of Sales and Operating Revenues of Businesses Other Than Electric 
  Power Industry>
   We aim to achieve the targets of Management Vision 2010 (to earn 300 
   billion yen in sales from businesses other than the electricity industry 
   and 50 billion yen in operating income from businesses other than the 
   electricity industry by fiscal 2010) one year earlier and achieve the 
   following targets in fiscal 2009:

  <Fuel Business>
    Amid rapidly changing environment surrounding the energy market, 
    TEPCO group will actively address the expansion of the fuel upstream 
    business, LNG carrier business and LNG sales business by utilizing 
    the know-how that we have accumulated through the fuel-related businesses.

  <Gas Business>
    We will continue to promote gas sales to realize "total solution of 
    energy" that meet a wide range of needs of customers.

  <Overseas Business>
    While properly operating and managing existing projects overseas, 
    we will capitalize on our group´s technology prowess and human resources, 
    and further promote the investment and consulting businesses mainly in 
    the power generation field.

III. Foster People and Technologies
While creating an open corporate culture through activation of communications, 
TEPCO Group as a whole will promote the technology strategy that supports 
the reinforcement and improvement of technology and skills as well as growth 
in the future.

  1)Promotion of Technology Strategy That Supports Growth in Future

 
IV. Management Targets
 1) Targets of Profit and Free Cash Flow
    While thoroughly promoting improvement of efficiency of all operations 
    of the Group, TEPCO will increase its sales, maintain and improve 
    profit levels by actively promoting marketing activities to win customer 
    satisfaction.  Moreover, TEPCO will try to ensure free cash flows by 
    reducing cash outlays such as capital expenditures. TEPCO will also 
    address the improvement of asset efficiency by streamlining operation 
    of equipment and assets.
    Through such efforts, TEPCO aims to achieve the following targets on 
    a three-year average basis over the period from fiscal 2007 through 
    fiscal 2009.

  <Specific Targets>
    • Ordinary income
      [Consolidated]      400 billion yen or more
      [Non-consolidated]  350 billion yen or more
    • ROA (return on assets)
      [Consolidated/Non-consolidated]  4% or higher
    • FCF (free cash flow)
      [Consolidated/Non-consolidated]  350 billion yen or more

 2) Targets of Balance Sheet
    To steadily achieve the targets of the "Management Vision 2010"(to 
    increase the equity ratio to 25% or higher by fiscal 2010), TEPCO 
    aims to achieve the following targets by the end of fiscal 2009.

  <Specific Targets>
    • Shareholders´ equity ratio (at the end of fiscal 2009, 
      non-consolidated):  24% or higher
      (To reduce interest-bearing debts by about 500 billion yen in 
      three years from fiscal 2007 through fiscal 2009)

[Reference]

[Reference]

  Management Vision 2010 (Mid-Term Management Policy of TEPCO Group)
  Based on the TEPCO Group´s management philosophy of "contributing to 
  better lifestyle and environment by offering optimum energy services," 
  TEPCO established three Group Management Guidelines under Management 
  Vision 2010, i.e., "to win the trust of society," "to survive struggle 
  in competition" and "to foster people and technologies," and set five 
  numerical targets in line with these guidelines.