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Plans for Kaore hydroelectric power plant and Taketoyo thermoelectric power plant no. 5 canceled

February 2, 2006
Chubu Electric Power Co., Inc.

Chubu Electric Power Co., Inc. today notified municipal governments and other concerned parties of its decision to cancel plans for the Kaore hydroelectric power plant and Taketoyo thermoelectric power plant no. 5.

The plans for both power plants had been previously underway to ensure a stable power supply in response to electrical demand in the coming decades.

But demand for electricity - particularly contract maximum demand - has been notably sluggish in recent years. Trends including the growing efficiency of production facilities and progress in energy conservation are projected to continue to suppress growth in industrial demand for electricity.
With factors such as competition for demand across industries and the recent hikes in crude oil prices projected to sharpen competition in the market in which Chubu Electric Power operates, the Company must improve its efficiency and reinforce its business structures.

In light of these circumstances, Chubu Electric Power has decided to cancel plans for the Kaore hydroelectric power plant and for Taketoyo thermoelectric power plant no. 5.

Chubu Electric Power wishes to express its sincere gratitude to all parties who have participated in its plans to date, including the residents of the Kaore and Taketoyo areas, who have worked with Chubu Electric Power since the plans were announced. Chubu Electric asks for their understanding with regard to the decision to cancel these plans.

For the fiscal year ended March 2006, the Company projects losses of approximately 33.5 billion yen for the Kaore hydroelectric power plant and approximately 3.5 billion yen for Taketoyo thermoelectric power plant no. 5.