©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

Takashi HAYASHITokyo Electric Power Company

Oct.24， 2005

TEPCO; Overview and ChallengesTEPCO; Overview and Challenges

2©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

ContentsContents

Overview and latest topics in TEPCO Current status and experiences of

Japan’s Liberalization

©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

1.1. Overview and Latest TopicsOverview and Latest Topics

4©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

Company Highlight 2004FYCompany Highlight 2004FY

Customers 27,740,000(Based on electric service contracts cl

osed as of March 31,2005 )

Electricity Sales 286,741 GWh

Maximum Demand

64,300 MW(July 24,2001)

Power Generation Capacity

Total:62,825MW

Hydro: 8,521MW

Thermal: 36,995MW

Nuclear: 17,308MW

Wind: 1MW

Number of Employees

38,510(as of March 31,2005)

5©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

Pacific OceanPacific Ocean

The Sea of JapanThe Sea of Japan

Center of TokyoCenter of Tokyo0 50 100km

Overall Transmission Network in TEPCOOverall Transmission Network in TEPCO

Large Power FlowLarge Power Flow

9GW

11GW

5GW

3GW

9GW

UHV - designed

6GW

6©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

UHV Transmission TechnologyUHV Transmission Technology

Same design technique as conventional 500kV facilities

10001000kV designed kV designed transmission linetransmission line

Existing 500kV transmission line

Same design technique as conventional 500kV facilities

10001000kV designed kV designed transmission linetransmission line

Existing 500kV transmission line

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UHV Substation Equipment Test SiteUHV Substation Equipment Test Site

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Latest Latest TopicsTopics

• Construction of the Bulk Power System Operation Center in Tokyo suburb area, which has substitutive function for the Central Load Dispatching Center as a risk management for disaster

Central Tokyo

Central Load

Dispatching Center

Bulk power System Operation Center

Tachikawa City

Approx. 40km

©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

2.2. 　　 Current Status and Current Status and Experiences of Japan’s Experiences of Japan’s LiberalizationLiberalization

10©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

Power SystemsPower Systems in Japanin Japan

AC interconnection(500kV)

AC interconnection(154kV ～ 275kV)

DC interconnection

Back-to-Back Frequency Converter

AC-DC Converter

Minami-Fukumitsu BTB

500kV Echizen-Reinan line

Sakuma F.C. 300MW

500kV Seiban-HigashiOkayama line

500kV Honshi tie line

Hokuriku

5GW

Shin-Shinano F.C. 600MW

Hokkaido 5 GW

187kV Donan line

275kV Hokubu Line

Tohoku

15GW

Hokkaido-HonshuHVDC 600MW

500kV Kanmon tie line

Shikoku 6GW

Kyushu

ChugokuTokyo

Kansai Chubu

25GW

64GW

16GW

3333

30GW11GW

60 Hz

-Distance between Kyushu- Hokkaido is about 2000 km-Utilities are located sequentially - Available capacity (ATC) is relatively scarce

50 Hz

500kV Soma-Futaba Line

Kii-suido HVDC 1400MW

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Characteristic of Load Curve in Characteristic of Load Curve in TEPCO TEPCO

0

20

40

60

80

100

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

(時)

東京電力PJM

英国ドイツ

各国・各地域における負荷曲線の形状Load Curves in Countries and Regions

Ｇｅｒｍａｎｙ

UK

TEPCOPJM

(Hour)

Load increases quite steeply

in the morning

12©2005 The Tokyo Electric Power Company, INC. All Rights Reserved.

Present Electricity Market System Present Electricity Market System 　　 Partial liberalization of the electricity retail market

• Target:Eligible Customers

(Contract Demand 50kW Voltage 6,000V)≧ ≧• New Entrants use Wheeling Service provided by electric

utility companies.(TPA system)

Generation

Transmission&

Retail

Other Customers

New Entrants

Accounting Separation(to avoid internal subsidies)

ElectricUtility

Company

Other Electric Utilities

Wholesale Suppliers

Eligible Customers

Regulated Liberalized

Wheeling ServiceDistribution

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Functions of Functions of Electric Power System Council of Japan (ESCJ) Electric Power System Council of Japan (ESCJ)

TEPCOTohoku Electric

Power Co.

ESCJ

Inter-tie

Power Exchange

• OASIS

• Congestion Management of Inter-ties

• Enhancement Procedure Management

• Planning, Construction and Operation of regional grid for reliable and economic power system operation

• Grid Code (regional)

9 Vertically Integrated Utilities

• Grid Code (basic)

• Dispute resolution

Board of Directors

Utility, Wholesaler, Alternative Supplier, Independent member

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Start of Japan Electric Power Exchange (JEPX)Start of Japan Electric Power Exchange (JEPX)

Start with two types of products– Spot markets : Trade of day-ahead electricity– Forward markets

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Total kWh Price (Daily Average) Price (Peak Time)

kWhYen/kWh

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Comments on Regulatory Reform Steps Comments on Regulatory Reform Steps from Japan’s Experiencefrom Japan’s Experience

• We should take care of …– Consideration of the characteristics of the

power systems – ‘Well-ordered’ play for participants– Step-by-step liberalization – Opinions from grid operator’s/planner’s point

of view

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Thank you for your attentionThank you for your attention