Chubu Electric Power Incorporate : Conclusion of Joint-Venture agreement on Integration of Existing Thermal Power Generation Businesses

TEPCO Fuel & Power, Inc. (a 100% subsidiary of Tokyo Electric Power Company Holdings, Inc.), and Chubu Electric Power Co., Inc. (hereinafter 'the two companies') today concluded a joint-venture agreement on the integration into JERA Co., Inc. (hereinafter 'JERA') of their fuel receipt/storage and gas transportation businesses, as well as existing thermal power generation business.

The two companies concluded a basic agreement on the integration of existing thermal power generation businesses on March 28, 2017, and have been engaging in detailed studies and discussions aimed at the business integration.

As a result, the two companies concluded a joint-venture agreement after having agreed on the basic business model framework that is to follow the integration and benefits the integration will bring, as well as detailed rules on steps that would enable JERA to engage in unconstrained business activities.

Following the integration, JERA will promote such plans as strengthening the competitiveness of domestic power generation businesses, expanding earnings in new business areas and achieving synergetic effects with JERA's existing operations, thereby aiming to generate integration benefits amounting to at least 100 billion yen a year within five years from the merger.

Harnessing such benefits, JERA will both compete fairly in the electricity transaction market that is to be newly established in Japan and grow into a global energy company that can compete on an equal footing with rivals in the international energy market. Through these efforts, the two companies aim to improve the corporate value of both TEPCO and Chubu Electric Power groups in addition to delivering a stable supply of globally competitive energy.

Aiming to integrate their businesses in the first half of FY 2019, the two companies will engage in detailed studies and carry forward required procedures based on an equal and complementary spirit. The TEPCO Group is also fully committed to the revitalization of Fukushima through the integration.