We sincerely apologize to the people living in the surrounding areas of
the power station and broader society for the concern and anxiety that has
arisen on account of the accident at Fukushima Daiichi and Daini Nuclear
Power Station.

Currently, we are addressing the following three major issues: "Maintain
stable conditions at Fukushima Daiichi & Daini and decommission Units 1-4
at Fukushima Daiichi", "Care for the afflicted", and "Stabilize power
supply". At the same time, in order to achieve the goals stated in the
emergency special business plan and action plan, we shall thoroughly
implement business streamlining measures with all group companies. 

However, due to a severe management environment, in order to
simultaneously address the above three issues in a stable fashion
hereafter, it is essential to reinforce the business foundation as well
as improve the financial structure.

Concretely, we were dealing with the accident at Fukushima Daiichi & Daini
Nuclear Power Stations caused by the March 11th Tohoku-Chihou-Taiheiyou-
Oki Earthquake, other nuclear power station accidents from whom we
purchase electricity, and the prolonged outage at Kashiwazaki Kariwa
Nuclear Power Plant.  At the same time, in order to stabilize the power
supply, we had to strive to maintain and secure capacity via measures
such as increasing thermal power generation and operating thermal power
facilities that were shut down due to planned long-term outages resulting
in a heavy fuel cost burden.

If the current status continues, this will impede fuel procurement in the
near future resulting in the possibility that our present stable power
supply could be severely interrupted.   

Based on this severe situation, we are seeking to raise the electricity
rates connected to incremental fuel cost increases of our customers in the
deregulated section from next April predicated on our thorough business
streamlining measures.  Further details regarding the increase will be
provided next January.

Furthermore, as for the regulated section, we humbly request that we soon
be allowed to apply for the aforementioned rate increase based on the
development of the special business plan and the current progress of key
discussions being held concerning the revision of the electricity rate
system and operations.

Your continued understanding of our severe business conditions is greatly
appreciated.