The purpose of this paper is to clarify the history and the characteristics of electric utility companies in Tokyo. In 1887, the first electricity supply company in Japan was established in Tokyo. In 1933, there were 818 electric utility companies. Before World War II, two or more electricity supply companies supplied one region, and there was tough competition to supply electricity to the Tokyo area. In 1938, the principle of free competition was replaced by nationwide management by the pre-war military government.
Tokyo Electric Power Company was established in Tokyo by the Potsdam government ordinance in 1951, and the right to supply electricity to a region was limited to one company. Disproportionate electricity demand and amount of power generated is a historical characteristic of electric utility companies operating in Tokyo. The rate of self-sufficiency of electricity in Tokyo was 15 percent in 1931, and it was three percent in January 2012.
The power generation and electric supply system began to be discussed after the nuclear plant disaster caused by a major earthquake on March 11, 2011 at Fukushima. In August 2011, the Tokyo Metropolitan Government Office began to examine constructing a large-scale power plant fueled by natural gas．As the population of Japan decreases, revenues will decline. Before World War II, Tokyo City's managed electric utility obtained high earnings constantly. These high earnings were a very important and stable source of income for the local government. The system of the electric utility companies in Japan before World War II could provide a model for a reorganized electricity supply system in the future.
