The Tokyo Electric Power Company, Incorporated (TEPCO) decided to review 
the term of office and the remuneration system for directors, in order to 
clarify the responsibilities of directors over management and to ensure 
objectivity and transparency of remuneration. In conjunction with such 
reform, the term of office and the remuneration system of executive 
officers are also to be reviewed.
TEPCO has implemented several measures to reform corporate management 
system to enhance corporate governance, including the reform of the Board 
of Directors exemplified by the reduction in the number of directors, 
introduction of the system of executive officers, as well as strengthening 
of audit function. The Company intends to further strengthen corporate 
governance through the proposed reform, thereby achieving the sustainable 
growth and development of the Company and enhancing corporate value in 
the long run. 
An outline of the proposed reform is provided below.

1. Shortening of the term of office of directors and executive officers
  1) Shortening of the term of office of directors
     In order to clarify the responsibilities of directors over corporate 
     management, the Company proposes at the General Meeting of Shareholders 
     to be convened in June this year, the amendment to the Articles of 
     Incorporation, to shorten the term of office of directors from two 
     years to one year. 
  2) Shortening of the term of office of executive officers
     In conjunction with the shortening of the term of office of directors, 
     the term of office of executive officers is also to be shortened from 
     two years to one year.

2. Reform of remuneration system
  1) Introduction of performance-linked remuneration system
     A performance-linked remuneration system is to be introduced to reflect 
     the annual business performance in remuneration (effective in FY2008). 
  2) Formulation of share purchase guideline
     A share purchase guideline will be formulated, based on which executives 
     are to purchase Company´s own shares over a certain amount every month 
     through the executive shareholding association and hold the shares while 
     in office, in order to promote the management to take into account 
     corporate value in the long run and reflect the perspectives of 
     shareholders (effective in July this year). 
  3) Establishment of Remuneration Committee
     Remuneration Committee composed mainly of outside persons has been 
     established for the purpose of ensuring objectivity and transparency 
     of remuneration. The performance-linked remuneration system and the 
     share purchase guideline will be launched in consideration of the 
     deliberations at the committee.

[Reference]
• Members of Remuneration Committee
    Hideki Nakagome (Attorney)
    Kunio Ito       (Professor of Hitotsubashi University) 
    Tomijiro Morita (Outside director, Chairman of the Board of Directors 
                     of The Dai-ichi Mutual Life Insurance Company)
    Yasushi Aoyama  (Outside director, Professor of Meiji University 
                     Graduate School)
    Shigemi Tamura  (Chairman of the Board of Directors)
• Date of establishment
    April 27, 2007