Summary of Comments Made at a Press Conference by Hiroji Ota, Outgoing FEPC Chairman, and Nobuya Minami, Incoming FEPC Chairman, on June 15, 2001

Today's press conference will be my last as chairman of the Federation of Electric Power Companies, and I would like to take this opportunity to thank you for your attention and cooperation over the past two years. Regarding today's agenda, I would first like to report on some recent FEPC developments, and then introduce you to the new incoming chairman.

First of all, a few comments on FEPC management personnel and the establishment of the MOX Energy Promotion Council.

Recent changes in FEPC management personnel are shown in Reference Document 1-1. At today's General Policy Committee meeting, Mr. Nobuya Minami, president of Tokyo Electric Power Co., Ltd., was unanimously elected chairman of the FEPC. In addition, Mr. Michisada Kamata, president of Kyushu Electric Power Co., Ltd., and Mr. Atsushi Onishi, president of Shikoku Electric Power Co., Ltd., were unanimously elected to serve as co-vice-chairmen. They will succeed retiring Tohoku Electric Power Co., Ltd. President Toshiaki Yashima and Chugoku Electric Power Co., Ltd. President Shitomi Takasu.

Details of the new MOX Energy Promotion Council are shown in Reference Document 2. As you know, at the Kariwa Town Council referendum held on the 27th of last month, a majority of the citizens voted against MOX fuel use. Despite this unfortunate outcome, we of the FEPC continue to affirm that, for a energy resource-poor nation such as our own, the effective use of uranium resources that MOX utilization energy offers is needed to assure a stable energy supply in the future.

In light of the referendum results, we need to analyze the factors responsible for our failure to gain sufficient public understanding for MOX utilization, and reflect on the ways in which our efforts to promote that understanding can be improved in the future. To this end, we today established and held the first meeting of a new MOX Energy Promotion Council. The 12-member Council is comprised of the presidents of the nine major electric power companies, as well as the presidents of the Japan Atomic Power Company, the Electric Power Development Co., Ltd., and Japan Nuclear Fuel Limited. At today's meeting, we exchanged opinions on the role of each company, and confirmed how best to pursue the Council's goals in the future. With regard to our MOX utilization plans, we plan to strive to obtain the understanding of all, liaise with the government as we actively exchange information on the role that each electric power company will play, and consider and respond to issues that are common to all of the companies.

In addition, the FEPC will effect a partial reorganization as of June 27 to strengthen its ability to promote the establishment of a nuclear fuel cycle. More specifically, we will transfer supervisory responsibility for Nuclear Fuel Cycle Promotion Headquarters activities from the office of Deputy Secretary General to the Senior Managing Director, and appoint a new director to handle their supervision.

With these changes, all of the FEPC member companies will work as one to strengthen their efforts to implement plans for the establishment of 16 to 18 reactors using MOX fuel by the year 2010. We ask for your understanding in this matter.

This concludes my final report as chairman of the FEPC. As I stated in my inaugural press conference, I very strongly feel the need for citizens of this country to widely debate national energy policy from a comprehensive and long-term perspective. I understand that a bill based on these precepts is currently being prepared in the National Diet, and I believe that in considering the best course of action to take in the future, I hope that it will serve as a powerful stimulus to public interest in the question of energy use.

Before I turn the proceedings over to Tokyo Electric Power Co., Ltd. President Nobuya Minami, who will assume the FEPC chairmanship on June 27, I would like to add a few final comments.

Looking back on my term as chairman, I can say that it has been a very difficult and eventful two years - one that has tested our strength to the fullest. We have experienced one of the greatest changes our industry has ever faced in the form of Japanese-style power market liberalization, and have had to streamline management and cut costs. Further, in October, we implemented a rate reduction, and have aggressively taken on the challenge of acquiring new customers.

In the area of nuclear power, the JCO accident and the manipulation of MOX fuel data caused a distrust of nuclear power to spread among the general public, and I believe that those incidents played a major role in creating the current severe response to our MOX utilization plans. On the other hand, we are actively working on an industry-wide basis to restore public confidence. We have established the NSnet, which aims to boost safety awareness throughout the nuclear power industry, as well as the MOX Promotion Council, which seeks to promote public understanding of MOX utilization.

I feel most privileged to have had a hand in steering the electric power industry through the period of dramatic change that has marked the start of the 21st century. And I would like to take this opportunity to thank the presidents of the various power companies, and the many other people who have extended me their support and cooperation, not least of whom are you, the members of the press corps. I am deeply grateful to you all. As a member of the electric power industry, I hope that in some small way I can continue to be of help to you in the future.

As you all know, Mr. Nobuya Minami, the incoming chairman, has guided the management of Tokyo Electric Power Co., Ltd. for many years, and is thoroughly familiar with the issues the power industry faces. Since the outset, he has led the debate on the introduction and implementation of Japanese-style market liberalization, and is ideally qualified to serve as our new chairman.

[Incoming Chairman Nobuya Minami's remarks]
As Chairman Ota has stated, I was elected at this morning's General Policy Committee Meeting to serve as the next chairman of the FEPC. As I will henceforth be speaking as the representative of the entire industry, instead of as the president of a single company, I feel a different and deeper sense of responsibility than ever. I also feel that we must keep in mind that in their respective regions, our member companies are more than simply electricity providers, and that we must carefully study what their real role in society should be.

During the past two years, Chairman Ota has exhibited outstanding leadership in dealing with retail electric power market deregulation, the JCO accident, the establishment of a nuclear fuel cycle back-end, and a host of other issues. As FEPC chairman, he has had to make countless trips between Nagoya and Tokyo, and amidst the difficult business environment created by retail market deregulation, has faced the onerous task of serving as both company president and FEPC chairman.

I myself am somewhat daunted by the weighty responsibility of the chairmanship, but with the sound counsel of Mr. Ota to guide me, I will do everything in my power to continue the development of our nation's electric power industry.

The tasks that lie ahead are not insignificant. Of most immediate concern are electric power deregulation, early MOX fuel plan implementation, and other nuclear power-related issues.

In addition, the role of the FEPC is changing with the advent of deregulation. However, our commitment to "public" issues such as power supply stability, energy security, and global environmental protection will, if anything, grow stronger than ever. With the help of our member companies and other concerned parties, we will do our utmost to address each and every one of these issues.

In the coming months, I will no doubt come to depend greatly on those of you here today. I look forward to working with you and will be most grateful for your support and guidance.