Tokyo Electric Power Company (TEPCO) today signed a purchase agreement with 
Guizhou Mengjiang River Basin Development Co., Ltd.[Note 1], a hydroelectric
power generation company in China, to purchase all of the carbon credits to be
generated in the six-year period between 2007 and 2012 by the hydroelectric 
power generation CDM[Note 2] project, which will be implemented by the above 
company in Tuanpo,Huisui County, Guizhou Province.

Under this project, Guizhou Mengjiang River Basin Development will construct 
in Tuanpo, Huisui County in southern Guizhou Province a runoff-river type power
station with a total output of 80,000 kW (32,000 kW x 2 units, 16,000 kW x 1 unit).
The generated electricity will be supplied to a wide-area power grid of the China
Southern Power Grid[Note 4] through a local power grid operating company, Guizhou
Power Grid Corporation[Note 3].  With the new facility, hydroelectric power will
replace some of the electricity now supplied to the power grid, thus leading to
a less consumption of fossil fuels.  The new project is expected to result in
CO2 emissions reductions of approx. 840,000 tons over six years, of which TEPCO 
plans to purchase in its entirety as carbon credits.
The details are as shown in the Reference.

This project has already been approved as a CDM project by the Chinese government.
In the future, TEPCO will complete the necessary procedures for carbon credit
creation including the Japanese government´s approval for the CDM project.

TEPCO´s management has addressed measures to control global warming as one of
its top priority tasks.  TEPCO will continue to launch committed efforts to cope
with global warming at home and abroad by implementing various measures to improve
the efficiency in supplying and using electricity in Japan and acquiring carbon
credits through active cooperation in overseas projects.

[Note 1] Guizhou Mengjiang River Basin Development Co., Ltd.
         Company Name:     Guizhou Mengjiang River Basin Development Co., Ltd.
         Company Location: Duyun, Guizhou Province, People´s Republic of China
         President:        Mr. Li Qinan
         Established:      2003
         Capital:          200 million yuan
         Business Lines:   Hydroelectric power generation business and others

[Note 2] Clean Development Mechanism (CDM)
         A system under which developed nations and economies in transition take
         part in projects in developing countries to reduce greenhouse gas 
         emissions (or increase carbon sequestration), and acquire credits for 
         emissions reduction amounts.  Along with JI (Joint Implementation) and
         ET (Emissions Trading), this is one of the initiatives of the Kyoto 
         Mechanism.
         The Kyoto Mechanism is an economic mechanism which allows for more 
         flexibility in greenhouse gas reductions as set forth in the Kyoto 
         Protocol in 1997.

[Note 3] Guizhou Power Grid Corporation
         A power grid operator and a subsidiary of the China Southern Power Grid
         that manages power transmission and distribution in Guizhou Province.

[Note 4] China Southern Power Grid
         A wide-area power system covering Yunnan, Guizhou, Guangdong and Hainan
         Provinces and Guangxi Zhuang Autonomous Region, operated and managed by
         the China Southern Power Grid Co., Ltd.  Some of the electricity 
         generated in western China including Guizhou Province is transmitted 
         via China Southern Power Grid primarily to Guandong Province and other
         parts of eastern China with large power demand centers such as Hong Kong
         and Macao.


Appendix
Outline of Hydroelectric Power Generation CDM Project in China