Establishment of "Okazaki Sakura Electric Power Co., Inc." for Carbon Reduction and Local Consumption of Locally-Produced Energy: Aichi Prefecture's First Local Government-Funded Community Electricity Retail Company

Chubu Electric Power Co., Inc. is pleased to announce that today, together with Okazaki City (Mayor: Yasuhiro Uchida), NTT Facilities, Inc. (President & CEO: Atsushi Ichihoshi; "NTT Facilities"), Toho Gas Co., Ltd. (Representative Director & President Yoshiro Tominari; "Toho Gas"), and Okazaki Shinkin Bank (President: Hideaki Tanaka), we have jointly invested in and established Okazaki Sakura Electric Power Co., Inc. (Representative Director: Kazuyuki Nagata ; "Okazaki Sakura Electric Power") to provide for local consumption of locally-produced energy as well as carbon reduction in Okazaki City. Okazaki Sakura Electric Power will proceed with preparations to commence operations in July of this year.

Okazaki Sakura Electric Power will supply public facilities and other entities in Okazaki City with electricity produced through biomass power generation at Central Clean Center, Okazaki City's waste treatment facility, thereby reducing carbon dioxide emissions and allowing locally-produced energy to be consumed locally, revitalizing the local economy. Moreover, the returns generated by Okazaki Sakura Electric Power will be used in efforts to further expand renewables and contribute to Okazaki City's aim of being self-sustainable.

[Overview of New Company]

These five stakeholders will utilize the know-how and knowledge that they have each developed in their respective businesses and sectors as they participate in this Project, through which they will develop and provide activities and new services which contribute to reducing carbon and finding solutions to other environmental challenges.