Establishing C Energy Co., Ltd. as a Wholly Owned Subsidiary, Transferring Chubu Electric Power's Air-Conditioning Facility Subcontracting Business to C Energy and Reinforcing C Energy's Capital Base through Increases in Capital

This is to announce that Chubu Electric Power Co, Inc. has decided to establish our Group company, C Energy Co., Ltd. (hereinafter referred to as C Energy) as a wholly owned subsidiary and then transfer our air-conditioning facility subcontracting business*1 to it, as well as reinforcing its capital base by increasing capital.

C Energy is in charge of the field of energy services for the Chubu Electric Power Group, and so far has been responding to a wide range of customer requirements, including saving energy, reducing costs and reducing CO2 emissions, etc. through its LNG sales business, on-site energy services,*2 and ESCO business,*3 etc.

Competition is expected to become even more severe in the field of energy services in the future, and it is necessary for the Chubu Electric Power Group to strengthen its competitiveness and sales capabilities in order to provide customers with services they will be satisfied with.

In order to achieve this, we will establish C Energy as a wholly owned subsidiary so that we can create a system in which the company's business affairs can be swiftly and agilely administered.

Having completed this, we will transfer our air-conditioning facility subcontracting business to C Energy, which has already developed a similar business, and strengthen C Energy's capital base through increased capital to enable more efficient management of the company and to provide investment for future large-scale businesses.

1 Overview of Establishing the Company as a Wholly Owned Subsidiary

Chubu Electric Power intends to purchase C Energy stock owned by other stockholders in order to establish C Energy as a wholly owned subsidiary under the agreement of other stockholders. We will hold meetings with the other shareholders from now on and move ahead swiftly with all necessary procedures once agreements have been reached.

(1)Purchase Completion Date	Late in August, 2013(scheduled)
(2)Amount of Purchased Stock	Toho Gas Co., Ltd. : 11,180 shares Iwatani Corporation : 8,568 shares Chubu Gas Co., Ltd. : 1,900 shares Chubu Plant Service Co., Ltd. : 1,720 shares C-Tech Corporation : 1,720 shares Total : 25,088 shares
(3)Remarks	Amount of stock issued by C Energy as of July 31: 93,200 shares Amount of stock owned by Chubu Electric Power : 68,112 shares (73%)

2 Overview of the Transfer of the Air-Conditioning Facility Subcontracting Business

Chubu Electric Power's air-conditioning facility subcontracting business will be transferred to C Energy using a company split method (absorption-type split; Chubu Electric Power is the split company and C Energy is the succeeding company).

(1)Date of Conclusion of absorption-type split agreement	July 31, 2013
(2)Effective Date of absorption-type split	October 01, 2013(scheduled)
(3)Value of split business	26,000 C Energy common stock shares
(4)Outline of the Split Business	Net sales of split business (results for FY2012) : 570 million yen Expected value of split assets (predicted for the end of September 2013) : 1,300 million yen

3 Overview of Increased Capital

C Energy will increase its capital, and Chubu Electric Power will underwrite all of the newly issued stock. Details of the capital increase will be officially decided at the C Energy General Stockholders' Meeting.

(1)Sum of Capital Increase	8,000 million yen
(2)Date of C Energy's General Stockholders Meeting	Mid-September, 2013(scheduled)
(3)Date of Payment	October 01, 2013(scheduled)

Remarks

• Overview of the Companies Concerned