Today I would like to comment on two subjects. The first is the International Electricity Chief Executives Summit, and the second is the NSNet (Nuclear Safety Network) and its activities.

First of all, concerning the International Electricity Chief Executives Summit, I refer you to Reference Document 1-1.

Last week, on the 8th and the 9th of the month, the 7th International Electricity Chief Executives Summit was held in Los Angeles. At the meeting, executives of the Federation of Electric Power Companies of Japan, the Edison Electric Institute (EEI) of the United States, and the Union of the Electricity Industry (EURELECTRIC) met to discuss the business environment and other topics of mutual interest to electricity providers.

As is described in the Reference Document, there was a lively exchange of opinions, with presentations by representatives of the three organizations on subjects of mutual interest such as market forces and regulations, energy policy, and environmental policy.

This year, there were 13 participants from Japan, including five presidents and seven vice presidents representing the nation's electric power companies. At the opening of the meeting, I spoke on behalf of Japan's power providers, and presented an overview of the issues that we face.

With respect to electricity market deregulation, I explained the proposed "Japanese deregulation model" - which assures a stable power supply through a unified distribution system that also promotes fair, honest, and transparent competition - and was able to receive the understanding of the participants from Europe and the United States. I specifically pointed out that the purpose of electricity market deregulation is to increase benefits to the customer, and that provisions to assure the reliability and stability of power supply are absolutely essential. I also reported on the economic measures that are being considered to ensure the smooth, stable development of nuclear power - particularly back-end operations - under deregulation.

In addition, with regard to the Long-Term Energy Supply & Demand Forecast that is currently under review, I explained that in keeping with the Energy Basic Plan, Japan needs to realize a balanced supply and demand picture and an optimum energy mix in which nuclear power plays a central role.

In the individual sessions addressing specific topics, President Katsumata of Tokyo Electric Power explained that for a resource-poor nation such as our own, energy security and the maintenance of a stable power supply are top priorities, and that we therefore need to maintain a unified distribution system. He also pointed out the need to provide incentives for distribution grid construction in a deregulated environment.

President Shirakura of Chugoku Electric Power also spoke and explained that the supply stability and environmental advantages of nuclear power made its continued development a top management priority.

President Matsuo of Kyushu Electric Power also explained how we are working to reduce CO2 emissions on both the supply and demand side by redoubling our efforts to promote nuclear power generation, and by implementing measures to reduce energy use and assure more even load distribution.

The meeting gave us an opportunity to discuss issues and exchange information with electricity company executives from various countries, and we learned much that will enable us to move our business forward more effectively in the future.

Of particular note were the points outlined in Reference Document 1-2, which were raised by many of the attending executives. It was noted that even as deregulation proceeds, new investment in generating and distribution facilities, and timely construction and diversification of electricity sources are essential. With respect to the long-term problem of global warming, it was felt that proactive measures and individual initiative are central to the process of addressing this issue. There was general consensus on all of these points, which was significantly reflected in the joint statement issued at the meeting's conclusion.

The next Summit meeting is scheduled for the autumn of 2005 in Sapporo.

I would now like to report on NSNet (Nuclear Safety Network) activities. Details are shown in Reference Document 2.

In an effort to restore public trust in nuclear power, NSNet members have been exchanging information and are working to strengthen their cooperative efforts in this regard.

As you know, the NSNet was created in December 1999 in the wake of the JCO accident that occurred in September of that year. Its mission is to share and strengthen safety awareness throughout the nuclear power industry in a mutual effort that unites electric power companies, manufacturers, research institutes, and others involved in nuclear power generation.

A major focus of NSNet activities has been the peer review program, an overview of which is shown on the left-hand side of the reference document. This program is unique to the NSNet, and involves teams of experts drawn from the NSNet membership who visit one another's facilities to evaluate operations from a peer perspective.

In the wake of various nuclear power related problems, peer reviews conducted since October 2002 have focused primarily on ethics and data tampering prevention programs. To date, immediate remedial action has not been required at any of the facilities reviewed, and we have been able to confirm that safety is being taken very seriously. As of last October, all 36 member facilities had been reviewed, and we have currently begun a second round of reviews that will continue to focus on compliance in these areas.

FEPC member companies will continue to participate in the review of other facilities, and when our own facilities are reviewed we will actively explain our safety protocols and share information with others.

Other NSNet activities aimed at promoting safety awareness, which are shown on the right side of the reference document, include seminars featuring member organization management and administrative personnel, and a Safety Caravan that makes the rounds of member facilities to promote an exchange of opinions and conduct lectures on safety promotion. The Caravan introduces examples of good procedure that have emerged during the peer review process, and in 2003 placed particular emphasis on ethical issues.

2004 marks the NSNet's fifth year of full-scale activities. While continuing to carry out its activities, it will seek to improve the content of its programs by incorporating the opinions of a third-party review committee and others from outside the industry, and will do its utmost to promote understanding and the restoration of public trust in nuclear power.

In the future, proper safety administration will remain a central issue for all of those involved with nuclear power. While remaining dedicated to safety and a continuing to extend our track record of safe operation, we will all - regardless of corporate or institutional affiliation - seek to promote safety awareness and safety consciousness throughout the nuclear power industry.