We have decided to carry out feasibility studies for the renovation of the Sakaiko Power Station by replacing existing systems with combined cycle generating systems. The environmental impact assessment is necessary for the renovation of these facilities. We submitted today, under the Environmental Impact Assessment Law, a Statement on the Method of Environmental Impact Assessment to the Minister of Economy and Industry, the Governor of Osaka Prefecture and Sakai City.

We are working to improve managerial efficiency in response to the rapidly changing business circumstances around us, such as liberalization of the electricity market. We are constructively addressing environmental conservation issues including the reduction of CO2 emissions, in light of global environmental problems, which are critical and urgent issues for society.

The Sakaiko Power Station is supplying electricity to urban areas in the Kansai area as the primary power source. At the plant, we have converted the main fuel from heavy oil and crude oil to natural gas, in an effort to reduce the environmental load of our operations and supply inexpensive electricity. In the meantime, in view of the changing operational environment around us, for the purpose of further reducing our environmental load and supplying electricity at more competitive prices, we have decided to examine the possibility of renovation that would involve replacing the existing facilities with exclusively natural gas-fired combined cycle generating systems of high efficiency. As part of these feasibility studies, we intend to conduct an environmental impact assessment.

We will work on the assessment with guidance offered by concerned parties.