Press Releases 2015

Tokyo Electric Power Company, Incorporated ("TEPCO"; President: Naomi Hirose) and Chubu Electric Power Co., Inc. ("Chubu Electric"; President: Akihisa Mizuno) have been moving forward with the preparation of a comprehensive alliance covering the entire energy supply chain, from upstream investments and fuel procurement through power generation (the "Alliance") in accordance with a Joint Venture Agreement signed on February 9, 2015, and have today agreed to jointly establish JERA Co., Inc. ("JERA") on April 30, 2015.

It is the mission of TEPCO and Chubu Electric to ensure the stable supply of energy on an internationally competitive basis. It is indispensable for TEPCO and Chubu Electric to have the ability to compete worldwide in order to fulfill this mission amid increasing global pressure on natural resources. TEPCO and Chubu Electric have therefore agreed to establish JERA in order to secure the stable supply of energy on an internationally competitive basis and also aim to increase the respective enterprise values of the TEPCO and Chubu Electric corporate groups through the business activities of JERA.

Step-by-step development of JERA

JERA will be established in a step-by-step manner, starting with areas that will have a high impact and are easier to undertake. From its establishment and commencement of operations, JERA will focus on the development of new energy upstream investments, the integration of the process for new fuel procurement, and the creation of processes for the development of new thermal power plants and for the scrap and build of obsolete thermal power plants both domestically in Japan and internationally.

As the next step, targeted for the summer of 2016, TEPCO and Chubu Electric will integrate a broader range of businesses within the scope of the Alliance, including existing upstream assets, fuel sale and purchase agreements, and overseas power generation businesses into JERA, taking into account the progress of consultation with relevant stakeholders and the planned introduction of a holding company structure within TEPCO.

In addition, TEPCO and Chubu Electric will continue to discuss the integration of their existing domestic thermal power stations and related assets into JERA, giving due consideration to the achievements of JERA and TEPCO's progress in implementing management reforms, with the target of reaching management decision in the spring of 2017.