Corporate Information

Press Release (Mar 27,2003)
FY2003 Management Plan
March 27, 2003

Tokyo --- Tokyo Electric Power Co. (TEPCO) has compiled its management
plan for FY2003, incorporating measures to regain public trust, electric power
demand projections,
capital investment in plants and equipment, and targets for profits and financial

TEPCO would like to take this opportunity to offer its sincere apologies for the
trouble and concern caused to residents in the vicinity of nuclear power stations,
to its customers, shareholders and investors, as well as the general public as a
result of dishonest practices in relation to the inspections and maintenance work
at its nuclear power plants since announced last summer.

In the FY2003 management plan, TEPCO will tackle the issue of regaining the trust
of residents in those areas where its nuclear plants are located, and that of the
general public, as a top priority.TEPCO is determined to do all it can to achieve
this goal, as well as to ensure a stable supply of electricity to customers.

1.Measures to regain public trust

TEPCO will continue with the measures that are already being implemented, to
prevent a recurrence of inappropriate conducts, and will make every effort to
regain any public trust that has been lost.

TEPCO will strive to reform its corporate culture and practices by steadily and
surely implementing the "four commitments" and creating "a system that will never
allow workers to engage in dishonest practices" and "a climate in which workers
will never engage in dishonest practices" announced in September 2002. TEPCO will
also ensure that all company executives and employees share the belief that it is
impossible to regain public trust unless TEPCO makes safety the top priority when
carrying out its business, and that a "sense of security" can be gained only when
two vital factors are both satisfied: namely "assuring safety" and "building mutual

Furthermore, in order to make the need for compliance with the law fully understood
and to clarify the responsibility of the top management, TEPCO has revised its "
corporate behavior charter" and established a new "code of conduct concerning corporate
ethics." Every executive and employee is determined to show through specific actions
his or her commitment to this "charter" and "code of conduct."

TEPCO has made efforts towards ensuring a stable supply of electricity by resuming the
operation of thermal power plants currently suspended, deferring regular checks and
repairs of hydro and thermal power plants, purchasing electricity from other utility
companies, and utilizing electricity obtained in test runs, as well as asking customers
to cooperate through saving electricity. These various measures have so far secured a
stable supply of electricity. However, if the current suspension of nuclear power plants
is prolonged, the power supply situation is likely to become even more severe towards
the summer when power demand will increase. TEPCO will continue to make every effort to
ensure sufficient power supply capacity, but in order to do so, the confidence of people
in areas where nuclear power plants are located, and the general public in the wider
society, must be won back, by carrying out checks at nuclear power facilities carefully
and thoroughly, giving the public a full explanation of the company's policies for repair
work, and making safety the top priority.

2.Downward revision of long-term projection of electricity sales and peak demand for the
fifth consecutive year

Growth in electricity sales and peak demand is expected to slow down over the long term,
due to stagnant economic growth, intensifying competition between energy sources, advances
in energy conservation and other factors. From FY2001 to FY2012, TEPCO estimates that the
average annual growth of electricity sales, even with maximum sales efforts, will be 1.5
per cent after temperature adjustments, and that peak demand will be 1.3 per cent after
temperature adjustments - marking the fifth consecutive annual downward revision. These
figures fall further below the lowest level ever, indicated in the previous projection.
Estimated electricity sales for FY2003 will be almost flat at 279.7 billion kilowatt hours,
up 0.1 per cent from the preceding fiscal year, and peak demand (daily peak at the generation
end) will be 64,500MW (at the time of high demand during peak summer days), or 1,300MW more
than FY2002.

On the basis of these projections, TEPCO will build up its power generation capacity by
14,730MW over the next 10 years in order to ensure a stable power supply and energy security
by promoting the construction of efficient new facilities, while taking into account their
economical and operational efficiency and environmental compatibility.

3.Accelerating cost reductions and holding down average annual capital investment to
approximately Y640 billion for three years

TEPCO will try to cut costs in all areas from management procedures and contracts to the
construction, operation and maintenance of facilities in order to strengthen the
competitiveness of its electric utility business and to enhance the profitability of the
TEPCO group.

TEPCO will restrict capital investment in plants and equipment, by promoting the
construction of new facilities that allow flexibility, while taking into consideration
changes in future demand trends and the progress of further deregulation of the electricity

TEPCO will also seek to reduce further capital investment through attempts to cut procurement
prices by placing orders as efficiently as possible, as well as making a more effective use of
existing facilities and developing technologies that would contribute to cost reductions.

In this way, plant and equipment investment will be held to an average Y640 billion a year
for a three-year period from FY2003 to 2005, roughly Y100 billion less than projected in the
previous plan for FY2002-2004.

Repair costs will also be cut to some Y470 billion annually over three years, beginning in
FY2003, by conducting maintenance most suitable to individual facilities, selecting the
facilities most needed for repair work, and improving the efficiency of patrols and inspections,
while maintaining the reliability of electricity supply.

4.Setting targets for improved profit and financial structure to further enhance profitability

TEPCO has set targets for an improved profit and financial structure, in order to realize the
goals laid down in its management vision, as in the previous fiscal year. Details of the goals
under the FY2003-2005 plan are as follows (figures are averaged over the three years):

*Ordinary income: Y300 billion or more
*ROA (return on assets): 4 percent or more
*ROE (return on equity): 9 percent or more
* Free cash flow: Y550 billion or more
*Interest-bearing debt: reduction of Y400 billion or more
*Ratio of owned capital: 18 percent or more (by end of FY2005)

5.Developing better sales and services for customer satisfaction

With intensifying competition following the expanding deregulation of electricity retail
markets, sales and service activities which provide customer satisfaction will be
strengthened, so that the continuing support and patronage of existing and new customers can
be fully realised.

TEPCO has been offering its comprehensive services and proposal-based marketing using salespeople
exclusively appointed to customers of extra high voltage electricity. Similar services will
also be provided to high voltage power customers, with an area expected to be deregulated in the
near future, so as to meet the different needs of customers in different areas.

TEPCO will also provide domestic electricity customers with a wide variety of services,
proposals and advice for a better and more efficient use of electricity that will meet
customers' changing lifestyles and needs. Such services and products include a domestic CO2
catalyzed heat-pumped water heater called the Eco Cute, IH cooking heaters, and other products
that provide customer safety, usefulness, cleanliness and efficiency.

Furthermore, TEPCO will offer a wide variety of optional rates for electricity charges and
services in order to play its role as an "energy adviser."  In this way, it will be able to
realise customer satisfaction and be successful in all areas of competition with other energy

6.Making full use of the TEPCO Group's total capabilities and management resources

Various measures, such as the "TEPCO Group business management cycle" will be implemented to
make the most effective use of the Group's resources and strengthen its management.

TEPCO will promote measures to make the Group's business management more efficient and
harmonized, and encourage the member companies to enter general markets to expand sales beyond
the Group.

The concrete business goals for the TEPCO Group for the three years from FY2003 to FY2005 are
as follows: (figures are averaged over the three years)

*Consolidated ROA: 4 per cent or more
*Consolidated free cash flow: Y550 billion or more

Regarding the deregulation of the electricity industry as a major business
opportunity to bring in new sources of profits, TEPCO will develop new business activities and
overseas businesses, which are expected to lead to further growth and expansion, by making full
use of its management resources and the overall capabilities that have been built up by the
whole TEPCO Group.

Appendix:Current outlook for demand and supply and measures taken (as of March 27, 2003)

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