Foreword

Given the rapid globalization of economic activities, extended business networks capitalizing on IT (information technology) and the adoption of international accounting standards, the corporate business climate is undergoing drastic changes that are intensifying competition in Japan. In domestic electric utility services, extensive competition has set in with the partial liberalization of electric power retailing, resulting from the amendment of the Electric Utility Law, which occurred on March 21, 2000.

With the 21st century - considered the "Century of the Environment" - looming before us, the Sixth Conference of Parties to the UN Framework Convention on Climate Change will be held in The Hague, Netherlands, in November this year. Intensive talks in an international context are expected to take place to determine a specific framework for what was initially set forth in the Kyoto Protocol to prevent global warming. Domestically, the year 2000 has been designated as the initial year to meet the challenge to create a new type of society specified by the Basic Law for Establishing the Recycling-based Society which was established in May.

Faced with this large-scale shift in the socioeconomic system, Kyushu Electric is aggressively carrying out business activities which integrate schemes for environmental conservation so that the company may enjoy customer satisfaction, by fostering customers' reliance on Kyushu Electric and making us their power company of choice.

This report on corporate environmental conservation efforts was first published in 1996, and this is the fourth publication. It focuses on environmental conservation activities that took place during fiscal 1999(Apr.1,1999-Mar.31,2000). Our company wishes to make its activities more substantial by communicating with a larger number of customers. Your comments and opinions are most appreciated.

October,2000
Kyushu Electric Co., Inc.