Corporate Information

Press Release (May 20,2011)
Present Policy for Business Efficiency Improvements and Streamlining
We would like to express our heartfelt sympathy to those presently
suffering due to the Tohoku-Chihou-Taiheiyou-Oki Earthquake.
In addition, we deeply apologize to the residents living in the
surrounding area of the nuclear power station, our customers, and all
citizens for the distress and inconvenience caused by the accident at
Fukushima Daiichi Nuclear Power Station and the rolling blackouts due to
the power shortage.
Furthermore, in the face of this unprecedented crisis, we are continuing
efforts to stabilize Fukushima Daiichi Nuclear Power Station, and care for
the people suffering from the nuclear accident. This includes paying
compensation for the damage caused by the nuclear accident, securing a
stable power supply, and implementing business efficiency improvements and

I. Present Business Policy

1. Controlling the accident at Fukushima Daiichi Nuclear Power Station
   We continue to make every effort to stabilize Fukushima Daiichi Nuclear
   Power Station based on the "Roadmap towards Restoration from the
   Accident at Fukushima Daiichi Nuclear Power Station" so that the
   evacuees may return to their homes and all citizens may return to a
   secure and sound life.
   To ensure smooth implementation, we will establish the "Fukushima
   Daiichi Stabilization Center" in June.

  (1) Target and Present Measures
      We have set two steps to be achieved: "The Steady Decline of
      Radiation Dosage" as "Step 1" and the "The Significant Containment
      of Released Radioactive an Radiation Dosage" as "Step 2." The dates
      for these steps have been set as follows: "Step 1" is set to be
      achieved in the middle of July and "Step 2" is set for around 3 to 6
      months after the successful implementation of Step 1.
      Additionally, we have divided each step into the following five
      groups:Cooling of Reactors and Spent Fuel Pool, Mitigation of
      Radioactive Materials, Monitoring and Decontamination, Aftershock
      Countermeasures and Environmental Improvements. We will set goals
      for each group in parallel with the implementation of several
      We will carefully consider the safety and environment of the workers
      at Fukushima Daiichi Nuclear Power Station.

  (2) Verification of Safety and Risk Controls at the Power Station
      We will implement safety control measures immediately such as
      securing an emergency power supply and constructing coastal levees,
      verify risk controls, and ease the anxiety among the people living
      in the surrounding area as well as all citizens.

2. Measures for those afflicted by the nuclear accident
   We will apologize to the people who have suffered greatly from the
   nuclear accident, explain the countermeasures being taken to control
   the accident,and do everything in our power to support those people in
   the evacuation centers.
   Regarding compensation for those who suffered from the nuclear accident,
   we will swiftly execute fair and prompt measures based on the Law on
   Compensation for Nuclear Damage with backing from the government.
   Through the Fukushima Nuclear Compensation Office (established on April
   28), and the Compensation Center (Call center), and Regional Consulting
   Center (12 centers in 9 prefectures), we will pay compensation and take
   measures based on the guideline formulated by the Dispute
   Reconciliation Committee for Damage Compensation.

3. Ensuring Stable Electricity Supply
   We predict that our ongoing efforts to secure electricity supply will
   enable us to reach peak demand levels of approximately 55.2 GW at the
   end of July and 56.2 GW at the end of August.
   However, we will take measures on the supply-side and demand-side to
   secure stable electricity supply in preparation for sudden demand
   increases due to unexpected high temperatures in the summer, and the
   occurrence of unplanned shutdowns of the older thermal power stations.
   * Estimated peak demand in this summer (Daily peak at the end of
   generation): 55 GW

  (1) Supply-Side Countermeasures
      We will steadily implement measures to secure enough supply capacity
      via the restoration of thermal power plants which were shut down due
      to damage from the earthquake and are now under periodical
      inspection, the restart of thermal power plants which are under
      planned long-term shutdowns, the installation of new gas turbines,
      the purchase of surplus power from non-utility generation facilities,
      and increased power purchases from other utilities.
      We will pay special attention to stable operation and maintenance of
      generation and transmission facilities and accurate power system
      operations, as well as the procurement of a sufficient amount of
      fuel necessary to sustain the increased utilization of thermal power
      We will also consider and implement measures to secure power supply
      capacity for this winter and next summer.

  (2) Demand-Side Countermeasures
      We will continue to ask our customers to conserve energy based on
      the "Outline of Countermeasures for Power Supply and Demand During
      Summertime" presented by the Electricity Supply-Demand Emergency
      Response Headquarters from the Japanese government on May 13 in
      preparation for this summer's electricity demand.
      Specifically for high-voltage customers, we will propose energy
      conservation measures and introduce demand and supply adjustment
      contracts. For our low-voltage customers, we will introduce
      measures to introduce energy conservation through our website etc.

II. Streamlining Policy

To ensure the steady implementation of the aforementioned measures,
thorough streamlining measures will be applied to our asset structure and
organizational structure within the TEPCO group companies focusing only on
those entities essential to electric power supply. 

1. Sale of Property
   We will sell off real estate properties owned by TEPCO and its related
   companies, excluding those properties needed for electric power supply.
   Additionally, we will close all recreation facilities (gymnasiums,
   accommodation facilities, etc.) and will consider selling off office
   buildings and PR facilities, etc.
   Furthermore, in principle, we are planning to sell off some of our
   marketable securities and domestic/international projects, excluding
   those securities and projects required for electric power supply.
   We are seeking to secure more than 600 billion yen through the
   liquidation of these properties in a rapid manner.

2. Investment and Cost Reductions
   Investments will not be made unless required for electric power supply.
   Moreover, we will curtail repair costs to the extent that we can secure
   stable electricity supply, public safety, and compliance with law and
   regulations. In addition, tight controls will be applied to all costs, 
   for instance, system reduction, R&D, and personnel expenses. Through
   these efforts, we will achieve more than 500 billion in cost reductions
   in FY2011.
   Regarding personnel expenses, we will the reduce the directors'
   remuneration (zero remuneration for representative executives, 60%
   reduction of total remuneration for managing directors, 40% reduction
   of total remuneration for executive officers) and employees' salary and
   bonus (25% reduction of annual salary for managers, 20% reduction of
   annual salary for general employees). The total reduction amount will
   be approximately 54 billion yen. Further measures will also be

3. Streamlining of Organization, Group structure and Human Resources.
   We will reorganize the whole TEPCO Group by simplifying and implementing
   efficiency improvements to every operation as well as streamlining
   administrative and indirect functions of head offices, etc.
   On June 1, the internal restructuring of the sales/marketing and group
   business divisions, specifically the changing of the "Marketing & Sales
   Division" into the "Customer Relations Division" along with the closing
   of the Center for Home Energy Promotion and New Business Development
   Department. Further, reorganization based on a review of the operation
   will be considered.
   Moreover, we will review our group structure in consideration of
   reducing businesses other than those needed for the electric power
   During the implementation of these measures, we will maintain a staff
   of approximately 5,000 people to assist with restoration efforts and
   respond to those who have been affected by the accident. The status of
   these operations will be continually monitored with further downsizing
   to be implemented if deemed necessary.
   We are planning to provide details concerning the streamlining of the
   organization, group structure and human resources by the end of this
   As a result of these new measures and policies, the medium term
   management plan "2020 Vision: Medium to Long-term Growth Declaration"
   is considered null and void.
Appendix: Streamlining Policy (PDF 320KB)
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