FY 2010

Presentation on Management Plan

Tohoku Electric Power Co., Inc.April 2, 2010

Vision 2020 for the Tohoku Electric Power Group - together with local communities -

I. Medium-term business planTohoku EPCO Group Medium-term Business Plan (FY 2010 to 2014)Steadily boost nuclear power generation by stronger, unified operations of the whole GroupCreate electrification market by encouraging customers to be more energy efficient

II. Supply planProactively work toward a low-carbon societyDemand outlookCapital investment plan

III. Numeric targets

(Ref.)Auto industry cluster Transmission and transformation planElectric power salesTrends in large industrial demandAccumulated number and ratio of all-electric housing, and accumulated number of

semi-electric housingPower generated by energy sourcesPlant and equipment expendituresCapital raised for plant and equipment

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Contents

Vision 2020 for the Tohoku Electric Power Group - together with local communities - 1

Management principles:“Prospering together with the community” and “Promotion of creative business management”

To grow together with the Tohoku region and local communities long into the futureTo proactively adapt to the changing business environment, simultaneously achieve energy security, environmental protection, and economic growth, and improve overall management of the businessTo become an indispensable part of the local community by creating unique values in partnership with it

To grow together with the Tohoku region and local communities long into the futureTo proactively adapt to the changing business environment, simultaneously achieve energy security, environmental protection, and economic growth, and improve overall management of the businessTo become an indispensable part of the local community by creating unique values in partnership with it

Changes in power demand caused by the modal shift of supply and use of energy

Higher costs incurred by addressing global warmingBusiness operation based on societal changes in the

Tohoku region; Need to work together with the community

Declining population Creating a low-carbon societyIncreasingly difficult to procure resources A new direction for the global economy

<Economic trends> <Impact on our business>

Prospects for the business environment

2Tohoku EPCO Group Medium-term Business Plan (FY 2010 to 2014)

1. Steadily boost nuclear power generation by stronger, unified operations of the whole Group1. Steadily boost nuclear power generation by 1. Steadily boost nuclear power generation by stronger, unified operations of the whole Groupstronger, unified operations of the whole Group

5. Increase profitability by streamlining and combining resources of the entire Group5. Increase profitability by streamlining and 5. Increase profitability by streamlining and combining resources of the entire Groupcombining resources of the entire Group

2. Operate facilities by simultaneously achieving energy security, environmental protection and economic growth

2. 2. Operate facilities by simultaneously achieving Operate facilities by simultaneously achieving energy security, environmental protection and energy security, environmental protection and economic growtheconomic growth

6. Establish a corporate climate of greater safety and quality of operations6. Establish a corporate climate of greater safety 6. Establish a corporate climate of greater safety and quality of operationsand quality of operations

Key measures

3. Create electrification market by encouraging customers to be more energy efficient 3. Create electrification market by encouraging 3. Create electrification market by encouraging customers to be more energy efficient customers to be more energy efficient

7. Secure and develop human resources as a growth engine and build a work environment that encourages creativity

7. Secure and develop human resources as a 7. Secure and develop human resources as a growth engine and build a work environment growth engine and build a work environment that encourages creativitythat encourages creativity

4. Proactively work toward a low-carbon society4. Proactively work toward a low4. Proactively work toward a low--carbon societycarbon society 8. Strengthen ties with the community through discussions and events8. Strengthen ties with the community through 8. Strengthen ties with the community through discussions and eventsdiscussions and events

Evolve business operationsWe must strengthen, or “evolve”, our core operations by adapting previous measures and operations to the

changing environment, strengthening those which are to be continued, and reviewing those which need improvement.

Open the futureWe must “open” the future through new actions to proactively adapt to the changing business environment,

including the trend toward a low-carbon society and possible demand fluctuations.

Evolve business operationsWe must strengthen, or “evolve”, our core operations by adapting previous measures and operations to the

changing environment, strengthening those which are to be continued, and reviewing those which need improvement.

Open the futureWe must “open” the future through new actions to proactively adapt to the changing business environment,

including the trend toward a low-carbon society and possible demand fluctuations.

Actions on key measures

I. Medium-term business plan

3Steadily boost nuclear power generation by stronger,

unified operations of the whole Group

The safety and reliability of nuclear power are ensured by putting top priority on safety and improving operational quality, through reviewing and strengthening the business system.To secure the future of nuclear power, nuclear power management is strengthened, human resources developed, engineering capabilities secured, and the trust of the local community is gained.

Earthquake safetyEarthquake safety

PluthermalPluthermal

Outline of the pluthermal project・MOX fuel is being used at Onagawa Unit 3.・The MOX fuel is identical in appearance and shape to

conventional uranium fuel.・Out of all 560 fuel assemblies, less than 228 MOX fuels are

to be used.

In conjunction with regular inspections, construction work to raise the seismic margin of supporting structures of piping and circuits, which are important for safety, was implemented at plants. The work was completed at all four units (by September 2009).Exhaust stacks continue to be built.The reliability of nuclear power plants will continue to be improved.

Onagawa 1 3,600

Onagawa 2 900

Onagawa 3 2,100

Higashidori 1 1,900

Total 8,500

Schedule・January 8, 2010 Approval by national government for

changes of nuclear reactor installations

･March 18, 2010 Acceptance by local authorities through prior discussions based on the safety agreement

・Pluthermal operations to start by FY 2015

Approx. number of construction points of piping and circuits

I. Medium-term business plan

14,890

32,463

58,669

95,892

129,882

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY2005 FY2006 FY2007 FY2008 Feb. 2010

Waterheatingsystems27.5%

Lights andelectrical

appliances32.9%

Airconditioners

0.2%Heaters39.4%

4

Accumulated number of ecocute

Over 120,000

The future key to energy

saving

Promotion of energy saving by spreading the use of

highly-efficient equipment such as heat pumps

Breakdown of energy used in households (Tohoku region)

Source: “Residential Eenergy Statistics Yearbook 2008”, the Jyukankyo Research Institute Inc.

Create electrification market by encouraging customersto be more energy efficient

Creating an electrification market to match the characteristics of the Tohoku regionResidential:

Promote heat-pump electrification with excellent environment and energy-saving performance⇒ Intensive campaign for “ecocute” for hot water supply and “heat-pump heating” for room-heating

Commercial:Offer solution services to resolve customers’ problems

⇒Offer services that meet customers’ needs such as discussions on energy-saving and ESCO businessesIntroduce industrial electrification systems based on heat-pump

⇒Propose highly-efficient multi-air conditioners for buildings in cold regions and heat-pump hot-water supply for commercial use (ecocute), and electric kitchen systems

I. Medium-term business plan

5

Facilities Location/name Output(MW) Start of operation

Moriyoshi 11 May 2011Tsugaru 8.5 May 2016

H1 0.23 Dec. 2013

Sendai Solar 2 Jan. 2012

Namie Odaka 825 FY 2021

Nuclear Higashidori Unit 2 1,385 FY 2021 or later

H2 4.5 Jul. 2015Sendai Unit 4 446 Jul. 2010

Niigata Unit 5 Series 109 Jul. 2011Aikawa Unit 3 7.5 Jul. 2011

Shin-SendaiUnit 3 Series 980 Jul. 2016 (half capacity)

Jul. 2017 (remaining half)

Joetsu Unit 1 Series 1,440 FY 2023Noshiro Unit 3 600 FY 2025 or later

Hachinohe Solar 1.5 Jan. 2012

Haramachi Solar Approx. 1 By around FY 2013

New

Energy(Solar)

Thermal

Hydro

3728

4

4

22

20

60

4

13

14

21

40

3

30

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ＦＹ２００９ ＦＹ２０１９

Nuclear

Hydro

Geothermal and

New Energy

Gas

Oil

Coal

target

Power generated by energy sources and plan for development of power sources

※Including purchased power Key: Red text indicate changes from the previous plan.

II. Supply plan

Proactively work toward a low-carbon society

Boosting nuclear powerBoosting nuclear power・To achieve the long-term goal of nuclear power accounting for 40% of generated electric power, the power source development plan (Namie Odaka

and Higashidori Unit 2) is being promoted.・Improve the capacity factors of existing nuclear power plants by improving seismic margin, promptly preparing for long-term cycle operations, and

overhauling the plant operation system. LowLow--carbon thermal power generationcarbon thermal power generation

・Increase the thermal efficiency of thermal power generation plants by upgrading the advanced combined cycle.・Increase the efficiency of coal-fired power generation with high economic performance and take measures to reduce CO2 emissions (R&D on

IGCC and CCS).Renewable energiesRenewable energies

・Tohoku EPCO owns the most hydropower generation facilities in Japan (210 sites), has the largest capacity output of geothermal power generation in Japan (about 250 MW for the entire Group) and the largest interconnected wind power in Japan (about 510 MW), and is also developing mega solar power generation and woody biomass fuel systems. *Figures in parentheses are actual data for FY 2008.

6Demand outlook

52.3 49.6 50.5 51.0 51.357.6 55.0 55.7

28.828.9 28.9 29.0 29.3

32.031.1 31.4

300

400

500

600

700

800

900

1000

平成20年度 平成21年度 平成22年度 平成23年度 平成24年度 平成30年度 平成30年度 平成31年度

(billion kWh)

40.0

50.0

60.0

70.0

80.0

90.0

FY2008 FY2009(Est.)

FY2010 FY2011 FY2012 FY2018(Previous plan)

FY2018(Current plan)

FY2019

81.178.5 79.4 80.0 80.6

89.6 86.1 87.1

Specified scale demand (Deregulated segment) Annual growth rate 0.6%

Non-specified scale demand (Excluding deregulated segment) Annual growth rate 0.8%

Annual growth rate 0.7%Annual growth rate 0.7%100.0

Compared with FY 2009 (Est.)・Specified scale demandCompared with FY 2009 (Est.)・Specified scale demand

+ 0.9 billion kWh+ 0.9 billion kWh

Decrease of 3.5 billion kWh from the previous plan

Decrease of 3.5 billion kWh from the previous plan

NonNon--specified scale demandspecified scale demand: Thanks to increase of all-electric housing, demand is expected to grow, although it will be negatively affected by population decrease and energy conservation.

Specified scale demandSpecified scale demand: Demand is expected to grow in the medium to long term due to the development of industrial clusters, but to be negatively affected by global recession in the short term.

II. Supply plan

0.0

55.977.4 87.8

154.2131.2 119.3

47.6 46.5 46.5

68.4(Power

Sources)

157.2(Supply

Facilities)

57.7(Other)

0.0

50.0

100.0

150.0

200.0

250.0

300.0

平成2 1年度 平成2 1年度 平成2 2年度 平成2 3年度

(billion yen)

7Capital investment plan

257.7 255.1 253.6

283.3

FY2009(Previous plan)

FY2009(Est.)

FY2010(Plan)

FY2011(Plan)

To simultaneously achieve energy security, environmental protection and economic growth, necessary facility measures are incorporated in the plan. Capital investment for FY 2009 to 2011 is around 250 billion yen.

II. Supply plan

: Causes of increase/decrease from the previous plan or fiscal year are described in the box.

・Niigata Unit 5 retention

・Software

・Decreased northern trunk line constructions

・Construction of new main building of Onagawa (plant)・Renovation of Toyomi (plant)

・Decreased northern trunk line constructions

・To secure 40% share by nuclear power generation in total generated power in the long term.

・To reduce five-year average end-use CO2 emissions from FY 2008 to 2012 by 20% from FY 1990 level.

・To develop about 10 MW of mega solar power generation facilities by FY 2020.

・To create demand of about 2.2 billion kWh (from FY 2010 to 2014).Shift to electric hot-water supply and heating from gas or oil-basedMajor actions:

Introduce all-electric housing: Expansion by about 140 thousand houses (from FY 2010 to 2014)Introduce semi-electric housing: Expansion by about 140 thousand houses (from FY 2010 to 2014)Introduce air-conditioning systems: Expansion by about 420 MW (from FY 2010 to 2014)Introduce commercial electric kitchens: Expansion by about 170 MW (from FY 2010 to 2014)

III. Numeric targets 8

This medium-term business plan does not include numeric targets as it is difficult to set quantitative goals amid the current business uncertainties with sudden large fluctuations in fuel prices, large-scale decline of power demand caused by global recession, and environmental policies.Emphasis is placed on achieving goals for reducing CO2 emissions and winning new accounts.

Ratio of nuclear power generationRatio of nuclear power generation

CO2 emission reduction goalCO2 emission reduction goal

Creation of electrification marketCreation of electrification market

Mega solar power generation facilitiesMega solar power generation facilities

*Data based on news releases

SendaiHarbor

AkitaHarbor

NiigataHarbor

SakataHarbor

Tohoku Expressway

※ Sea and Rail Vision

* Sea and Rail VisionThis concept envisions connecting Japan and

Russia by sea and rail with Akita port as its hub.

KamaishiHarbor

To Russia

To North America

-Toyota Motor Corporation has a vision for creating “three domestic manufacturing hubs.” As one of these manufacturing hubs, the Tohoku region has the potential for developing as: 1) a large production base for small cars and environment-friendly vehicles; and 2) an export hub to Russia and northeastern China. - Panasonic EV Energy commenced operations in January 2010, and Toyota’s vision of transferring the Tohoku region into its production base has already started. -Nissan Motor Company is expected to produce its first engine for hybrid cars in the Tohoku region.

(Ref.) Auto industry cluster

①

②

③④

⑤

⑥

⑦

Toyota Boshoku Corp. （Ohira Village）<Car Interiors>Jan. 2011 expected to commence operations

Kanto Auto Works, Ltd. （Kanegasaki Town）<Compact Vehicles>1993 commenced operations

Central Motor Co., Ltd. （Ohira Village）<Compact Vehicles> Jan. 2011 expected to commence operations

Aisin Takaoka Co., Ltd. （Ohira Village）<Iron casting for automotive products>New construction (in planning stage)

①Toyota Boshoku Corp. （Kitakami City）<Car Interiorｓ> 1993 commenced operations

【Iwate Pref.】

②

【Miyagi Pref.】

③

Toyota Motor Tohoku, Inc. （Taiwa Town）<Engine Parts> 1998 commenced operationsFactory Expansion (in planning stage)

Panasonic EV Energy Co., Ltd. （Taiwa Town）<Nickel-hydrogen battery for hybrid cars>Jan. 2010 commenced operations

Denso Higashinihon Corp. （Tamura City）<Car Air Conditioners>May 2011 expected to commence operations

【Miyagi Pref.】

④

⑤

Keihin Corp. （Kakuda City）<Electronic Control Parts>1969 commenced operations

【Fukushima Pref.】

Nissan Motor Co., Ltd. （Iwaki City）<Engine Parts> 1994 commenced operations

⑥

⑦

：Toyota affiliate

：Honda affiliate

：Nissan affiliate

9

10(Ref.) Transmission and transformation plan

Work periodFacilities

Name of construction

Commencement Start of operation

Installation of Towada Trunk Line Aug. 2006 Sep. 2013 500 kV 114 km double circuit line

Installation of Kitakami Trunk Line Aug. 2006 Oct. 2013 500 kV 184 km double circuit line

Upgrade of Aoba Trunk Line Apr. 2009 Jun. 2010500 kV (←275 kV) 57 km

double circuit line

Transm

ission

Upgrade/capacity expansion of Iwate Substation Aug. 2007 Oct. 2013 500/275 kV 1,000,000 kVA 1 unit

Transform

ation

Upgrade of Miyagi Chuo Branch Line Apr. 2009 Jun. 2010

500 kV (←275 kV) 0.5 kmdouble circuit line

Upgrade/capacity expansion of Kamikita Substation Aug. 2005 Sep. 2013 500/275 kV 1,300,000 kVA 2 units

Installation of Miyagi Chuo Substation Feb. 2007 Jun. 2010 500/275 kV 1,500,000 kVA 1 unit

Upgrade/capacity expansion of Miyagi Substation Feb. 2007 Oct. 2013 500/275 kV 1,000,000 kVA 1 unit

Capacity expansion of ShinchiSubstation Aug. 2010 Jun. 2012 500/154 kV 300,000 kVA 1 unit

Outline of facilities

Key: Red text indicate changes from the previous plan.

Construction of the northern trunk lines

To develop nuclear power sources in northern Tohoku and secure a stable supply of electric power in the Company’s service area, new constructions and step-up works for transmission lines and new constructions and step-up/expansion of substations are being implemented as part of the development of 500kV trunk lines.

Kitakami trunk lines: Nylon ropes are stretched by helicopter

Installing 500kV equipment at Iwate Substation

・Various new technologies and construction methods are being introduced and design specifications are being streamlined.

* For step-up/expansion construction of Kamikita Substation, the addition of transformers and step-up of the Mutsu trunk line were completed and operation started in November 2009, and pullout construction in conjunction with the addition of the Towada trunk line is scheduled to be completed and operation will start in September 2013.

22,229 22,914 22,793 23,612 24,355 24,291 25,073 24,679 24,845 24,940

34,098 34,552 34,510

24,250

4,724 4,302 4,346 4,078 4,051 3,985

16,17316,789 17,244

29,467

50,585 52,35754,653

52,344 49,603 50,507

-2.7

2.4

0.4

3.73.0

1.6

3.9

-3.5 -3.2

1.2

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009(Est.)

FY2010(Plan)

-40.0

-35.0

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

(million kWh) （％）

(Ref.) Electric power sales 11

Growth Rate(Right Scale)

Commercialand

Industrial

Residential

72,500 74,255 74,54777,329

79,66480,950

84,07281,101

78,499 79,432

*Deregulated segment is constituted by customers who use a supply system with a contracted demand of 2,000kW or above from FY2001 to FY2003, 500kW or above in FY2004, and 50kW or above after FY2005.

Specified scaledemand (*)

(Ref.) Trends in large industrial demand 12

1,500

1,750

2,000

2,250

2,500

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

(million kWh)

FY1998 FY2004 FY2005 FY2006FY2007 FY2008 FY2009

(Ref.) Accumulated number and ratio of all-electric housing, and accumulated number of semi-electric housing 13

91,744

130,217

206,419

1,840 6,02914,558

28,377

49,088

66,481

155,713

108,205

182,916

25.4

36.3

17.1

19.9

41.5

48.7

0

50,000

100,000

150,000

200,000

250,000

2004 2005 2006 2007 2008 Feb. 2010 (FY)

(houses)

0

5

10

15

20

25

30

35

40

45

50(%)

Accumulated Number of all-electric housing (left acale)

Accumulated Number of semi-electric housing (left scale)

Ratio of installation compared with new housing (right scale)

（※）

*The introduction rate of all-electric housing of FY 2009 is the figure as of January 31, 2010.

29% 27%30% 31%

36%

29%35% 35% 37%

26% 28%

7% 9%

11% 8%

12%

7%

7% 6% 4%

4%4%

25% 25%

25%

19%

19%

25%

22% 23% 22%

21%20%

3%

3%

3%

3%3% 2% 3%

4% 4%

16% 15%

17%

16%

15%

16% 12% 13% 13%

14% 14%

14%

23%

15%20% 21% 21% 21%

31% 30%

2%2%

22%21%

0%

20%

40%

60%

80%

100%

平成13 平成14 平成15 平成16 平成17 平成18 平成19 平成20 平成21

（推実）

平成26

（計画）

平成31

（計画）

(Ref.) Power generated by energy sources 14

※Including purchased power

Geothermal and

New Energy

Nuclear

Oil

Gas

Coal

Hydro

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009(Est.)

FY2014(Plan)

FY2019(Plan)

(Ref.) Plant and equipment expenditures 15

FY2001 FY2002 FY2004 FY2006 FY2008 FY2009(Est.)

68.5 55.9

62.5

46.0

44.7

0.9

154.2

27.7

19.9

47.6

257.7

70.3

20.0

42.7

0.9

134.0

35.6

14.0

49.6

252.1

FY2010(Plan)

37.9 77.4

47.3

33.2

49.1

1.7

131.2

20.6

25.9

46.5

255.1

52.7

20.9

39.5

3.4

116.7

13.1

11.9

Other and nuclear fuel 30.8 41.4 28.6 28.7 33.4 25.0 40.2

179.6

104.9

29.2

25.5

35.8

0.6

91.2

13.2

15.4

224.8

77.9

33.8

22.5

38.8

5.1

100.2

16.6

24.6

219.5

121.3

35.5

23.9

42.7

1.6

103.8

14.0

16.6

255.9

FY2003 FY2005 FY2007

Power sources subtotal 67.9 56.1 43.4

Transmission 27.6 41.0 66.1

Transformation

Distribution

Dispatch

20.8 17.4 18.4

43.2 38.9 43.8

0.3 0.5 2.2

Supply facilities subtotal 92.0 97.7 130.5

Other 12.3 16.8 27.3

Nuclear fuel 16.2 16.5 12.9

Electric business total 188.5 187.2 214.1

(billion yen)

(Ref.) Capital raised for plant and equipment 16

FY2009(Est.)

FY2010(Plan)

Plant and equipment expenditures 257.7 255.1

Internal funds 322.5 225.7

Internal reserve 283.1 273.1

Depreciation 216.1 215.7

Other 67.0 57.3

Customer construction etc.

( Bonds [amount of issue] )

Net proceeds from bonds

Borrowings

39.3 -47.4

External -64.8 29.4

(120.0) (140.0)

29.6 21.6

-94.4 7.8

(billion yen)

(Note)

This presentation solely constitutes reference material for the purpose of providing the readers with relevant information to evaluate our company.

The information contains forward-looking statements based on assumptions and projections about the future with regard to our company. As such, the readers are kindly asked to refrain from making judgment by depending solely on this information.

The forward-looking statements inherently involve a degree of risks and uncertainties. Consequently, these risks and uncertainties could cause the actual results and performance to differ from the assumed or projected status of the company.

Tohoku Electric Power Co., Inc. hereby disclaim any responsibility or liability in relation to consequences resulting from decisions made by investors.