Establishment of Power Generation Company as part of Joint Project conducted with Tokyo Electric Power Company, Incorporated

Chubu Electric Power has today concluded a shareholders' agreement with Tokyo Electric Power Company, Incorporated (hereafter "TEPCO") (President: Naomi Hirose), which specifies the establishment of a power generation company (hereafter "the new company"). The new company will operate and maintain a coal-fired thermal facility within TEPCO's Hitachinaka Thermal Power Station (located in Tokai-mura, Naka District, Ibaraki Prefecture) and will sell the power generated by the facility (hereafter "the business").

Chubu Electric Power formed an alliance with TEPCO (Fuel and Power Company) in May this year. Under the terms of this alliance, Chubu Electric Power participated in bidding for a wholesale power supply contract offered by TEPCO (Customer Service Company), on the condition that TEPCO and Chubu Electric Power will jointly develop coal-fired facilities within the grounds of TEPCO's Hitachinaka Thermal Power Station.

In July this year, having been notified of the success of our bid, we proceeded with discussions with TEPCO (Fuel and Power Company) toward the establishment of the new company to conduct the business. We have now formally agreed to establish the new company.

At present, we are holding detailed discussions with TEPCO (Customer Service Company) towards the conclusion of a power interchange contract, and the contract is scheduled to be concluded between the new company and TEPCO  (Customer Service Company) in the near future.

The development of power resources in the Kanto region has been plagued by instability since the Great East Japan Earthquake, and we believe that as an electric utility, it is our mission to participate in the development process. We have confirmed the viability of the business, and we are sure that over the long term, it will benefit not just customers in the Kanto region, but also customers within our own area of operation.

We will continue to focus our full efforts on being an electric utility that responds to the expectations of its customers to the greatest possible extent.

Reference1 Profile of the new company at a glance

Reference2  Schedule (planned)