Basic Procurement Guidelines

I . Review of the “Basic Procurement Guidelines”

As a public utility responsible for electric power supply, Tohoku EPCO has established “co-prosperity with local communities” and “creation of new corporate value” as its management principles, and pursued a wide range of activities – from coordinated efforts with local communities to activities addressing global environmental issues – premised on compliance with corporate ethical standards and laws/regulations. At the same time, interest in Corporate Social Responsibility (CSR) has risen against a backdrop of accelerating internationalization and a rash of corporate scandals, and CSR in the context of corporate activities has grown in importance. As the electric power industry becomes increasingly liberalized and competition grows more fierce, Tohoku EPCO will continue cost-cutting approaches while endeavoring to expand profits and secure market competitiveness, further strengthening CSR efforts in the conviction that fulfilling its social responsibilities as a company will engender greater public trust and regard. Tohoku EPCO’s Basic CSR Philosophy Tohoku EPCO has continued to follow a balanced approach to economic, environmental and social issues, recognizing that CSR activities are linked to all its corporate activities. Tohoku EPCO is engaged in thoroughgoing efforts to ensure compliance with corporate ethical standards and laws/regulations and, to contribute to sustained development in the Tohoku region, is working in collaboration with local communities and supporting projects to invigorate these communities. In pursuing its activities, therefore, Tohoku EPCO is continually aware of all parties having a connection with the Company – local communities, customers, shareholders/investors, business partners, etc. – and is improving corporate value and seeking sustained growth to fulfill its CSR.