Reference 2

1. The Beginning

Because electricity is a resource that cannot be stored, electric power generation is controlled on a real-time basis in response to current demand. As such, calendar information is not used in electric power control systems. Nevertheless, to ensure that no unforeseen problems exist, power control system microchips have been subjected to extensive Y2K tests. These tests have revealed that there is no danger of blackouts occurring as a result of Y2K problems in control systems. For systems such as electrical equipment status monitoring and recording systems, which do use calendar information, repairs have systematically been implemented. At any rate, these systems are separate from control systems, and have no effect on their operation.

2. Purpose of the "Risk Management Plan"

Electric power companies are responsible for the stable supply of electricity that is indispensable to modern society. In recognition of this fact, comprehensive "Disaster Prevention Plans" are already in place to allow us to respond to accidents, blackouts and other major emergencies. In addition, inter-company cooperation makes it possible for FEPC members to assist one another in a crisis. To ensure timely response even if Y2K problems do occur, a "Risk Management Plan" is currently being drawn up to ensure safe, stable power delivery to businesses and individual consumers.

3. Sectors and Systems Subject to Risk Management

	Sectors	Systems
Control system	Nuclear power	Nuclear power facility monitoring systems
	Thermal	Thermal power facility monitoring systems
	Engineering and facilities	Control systems; dam monitoring and control systems; power supply systems
	Power distribution	Automatic power distribution systems
	Communication	Communications network and telephone exchange systems
Business management system	Data processing management	Sales, accounting and materials procurement systems

4. Crisis Management Procedures and Emergency Countermeasures

The crisis management procedures and emergency countermeasures described below will allow us to respond quickly in the event that computer problems occur.

Control Systems

(1) If power plant computer system problems occur, we will address them by switching to manual operation, or shutting down equipment as necessary.

(2) If computer system problems occur at power supply sites, we will address them by providing operating instructions by telephone, or by switching to alternate power supply sites. In addition, we are strengthening contact procedures to handle such incidents.

(3) If computer system problems occur in control systems, we will address them by operating with back-up systems, or by switching to direct, on-site control systems. In addition, we are strengthening contact procedures to handle such incidents.

(4) If computer system problems occur at power distribution sites, we will address them through special measures to allow manual operation of circuit breakers on-site. In addition, we are strengthening contact procedures to handle such incidents.

(5) If computer system problems occur in communication systems, we will address them by securing alternate communication links. In addition, we are strengthening contact procedures to handle such incidents.

Business Management Systems

Business management computer systems will be intensively operated during the New Year holidays to ensure that they are fully operational before the start of business on January 4. If problems are encountered, the following countermeasures will be taken.

(1) If computer system problems that affect business operations occur, we will implement alternative measures that allow items to be handled and processed by hand.

(2) If computer system problems that affect accounting operations occur, we will implement alternative measures that allow disbursements and bank transfers to be processed by hand.

(3) If computer system problems that affect materials procurement occur, we will implement alternative measures that allow transactions to be processed via handwritten documents and telephone communications.

Others

(1) If large industrial-user demand drops sharply, we will promptly regulate output to ensure that a proper balance is maintained in electric power supply and demand.

(2) If fuel suppliers are unable to supply fuel for any reason, we will draw on existing inventory, and use alternative fuels and fuel suppliers as needed.

5. Procedures and Roles

Y2K Preparedness Committees at each electric power company have been established to take prompt, appropriate action if any potential Y2K computer-related problems do arise.

(Example)

	Organization	Person in Charge	Roles
Head office	Y2K Preparedness head office	Vice president	understanding overall company status organizing and implementing remedial action when problems occur
Branch office	Y2K Preparedness branch office	Branch office manager	understanding overall branch office status organizing remedial action when problems occur exercising leadership and reporting to head office
On site	Y2K Preparedness section office	On-site manager	understanding overall site status implementing remedial action when problems occur reporting to branch office

6. January 1, 2000 Preparedness

(1) System Preparedness: Electricity demand at year-end and the beginning of the year traditionally declines to less than 50% of annual peak demand. Power supply capacity for January 1, 2000, on the other hand, will be maintained at more than twice the level of expected demand (except at power generating facilities that cannot be operated because of regular inspection and maintenance). In addition, if unforeseen fluctuations in supply and demand occur, we are prepared to take immediate action.

(2) Clerical Preparedness: To reduce risk and assure business management preparedness, clerical tasks scheduled for January 4 will be carried out early, and necessary data will be printed out to ensure its availability in the event that computer systems do malfunction.

(3) Supplier and Business Partner Preparedness: To ensure that prompt and appropriate action can be taken if problems arise with suppliers and business partners, contact procedures will be strengthened and alternate liaison routes established

7. Action Plans for January 1, 2000

(1) Action Plans for January 1: Y2K Preparedness Committee chairpersons at each electric power company will implement measures to ensure that contact procedures and liaison channels are in place to cope with Y2K issues that may arise between December 31, 1999 and January 1, 2000.

(2) Action Plans for Other Key Dates : The situation will also be closely monitored on other key dates. We will announce such dates in advance to concerned sections, and confirm liaison procedures to allow a prompt and appropriate response to any issues that arise.