For Taipower, 2005 was a very tough year. The damages from numerous typhoons and the drastic increase of fuel costs in the international market caused the disparity in the cost of generating electricity and the rate charged to its customers. Thankfully, with flexible, clear management strategies and the employees' dedication in the efforts of saving cost, reducing line loss, cutting down interest charges, saving operating expense, etc., the company made for an outstanding performance. The income before income tax (pre-taxincome) was reversed from the original set to be a loss of NT$6.11 billion to NT$928 million in earnings.
 　

　　The major management achievements in 2005 were: energy sales were 175.3 billion KWH, a 4.7% increase over the previous year; the number of customers was 11.5 million, a 1.9% increase over the previous year; in power supply reliability, SAIDI (System Average Interruption Duration Index) was cut down from the previous year's 32.88 to 30.19 min/customer.year and SAIFI (System Average Interruption Frequency Index) was cut down from the previous year's 0.45 to 0.37 times/customer.year, which demonstrated a 60% improvement rate within the recent 5 years; peak load reached 30,940 MW, a 6.6% increase over the previous year, the highest increase in recent years. In the meantime, employees' productivity increased by 7.33%; the average revenue per employee increased from the previous year's NT$15.8 million to NT$16.9 million. The line loss was below 5% in the recent two years. In 2005, it was 4.76%, lower than the previous year's 4.93%.
 　

　　Each year, the company invests an enormous amount of its capital in fixed assets (property, plants and equipment), which are the important items that are closely monitored by the Executive Yuan. The property, plants and equipment investment projects include generation, transmission, and distribution systems. Of which, the Sixth Transmission and Distribution Project was constructed to improve the power grid. As its construction sites covered the whole island, the land acquisition was quite difficult. Specifically, because the issue of electromagnetic field has aroused the concern of environmental groups, the company should deal with it in a scientific, rational and pragmatic way. A communication task force for the Sixth Transmission and Distribution Project was established to engage in the work of communication and promotion in an effort to win public support for the construction of this project. Hydro power projects were impeded by the protests of local residents and environmentalists. Taipower also did its utmost to communicate with them. For the Fourth Nuclear Power Project, the company has established a special team to be responsible for the following tasks: formulating concrete measures for the organization structure of the Project, construction site management, progress control and follow-up, etc. It is in the hope that the project will start commercial operation as soon as possible.

Meanwhile, we are proud of the remarkable achievements in two construction projects. A subproject of the Fourth Nuclear Power Project and Luhsi Primary Substation Project were recognized with gold medals, the highest honor awarded in the public construction sector, by the Executive Yuan. This not only proved the high quality of the company's project construction and design but also demonstrated the company's sustained belief and commitment to quality. We would never reduce a bit of our convictions merely because of a temporary setback.
　 

　　Nowadays, the power industry is marching in the direction of liberalization and privatization. Taipower has not been a monopoly in power generation for years. In addition, because of the strict regulations on CO2 reduction stipulated in the Kyoto Protocol and the change of management environment, we should strengthen crisis consciousness, emphasize risk management, and draw up appropriate countermeasures to cope with the challenges. Firstly, for the R&D and application of renewable energy, we are promoting in full force the "10-Year Wind Power Development Project." This will not only reduce the company's demand on fuels and reduce cost, but also cut down on emissions. It will therefore substantiate environmental protection and energy diversification policies. In addition, photovoltaic energy has a potential for development. The company should step up to map out short-, mid- and long-term blueprints for its implementation. For energy conservation, the company set up the "Energy Conservation Promotion Plan" and designated every Monday as a company energy conservation day in an attempt to instill conservation consciousness to the employees and cultivate an energy conservation culture within the company. It was in the hope that the employees would care about every detail of energy conservation, carry this out themselves and furthermore, become a role model in their families and among their friends, then expand this culture to the society. For customer service, the company required that the employees take initiative to understand customer requests and respond rapidly to satisfy their needs. These are major directions we need to take to enhance the company's strength. In addition to reinforcing the facilities of generation, transmission and distribution systems to provide a stable and reliable power supply, efforts were also made to provide customers with various service measures through information technologies and to show our considerate management and thoughtful service through each interaction opportunity with customers. What we intend to do is not only to solve technical problems but to let the people actually feel our sincerity and caring in our service. Taipower will then gain the understanding and trust from the public, win their recognition and then remove the resistance against power construction.
　　

　　The greatest difficulty faced by this company is the issue of energy sources. 97% of the energy sources for power generation are imported. As energy sources have continually decreased and become more and more precious, and international energy prices have been on a trend of increase, the challenges confronted by Taipower are definitely much more severe as compared with other enterprises. As a state-owned public utility, we must have the sense of mission to fulfill the government energy policies. We should comprehend that times are hard and we won't reflect rising fuel costs in electricity rates immediately so we won't worsen the impact on people's livelihood. To deal with this issue, we should work on ourselves on the fronts of energy conservation, enhancement of efficiency of energy and power units, and reduction of costs. We have to double our efforts to effectively enforce the government policies, to strengthen economic development and the well-being of the people.
　　

　　Electricity is a sustainable development business and a life-line of the country. Its abundant supply and continuous quality enhancement is the foundation of national economic development. Since we are shouldered with this great responsibility, we should manage our business with heart and determination. 2006 marks the 60th anniversary of Taipower. We cherish the memories of Taipower pioneers who　underwent the hard times without complaints. Their sacrifices and contributions created Taipower of today. The company will continue to maintain its sense of mission and the spirit of customer service and set up clear-cut management directions in the following 4 areas: saving operation cost, enhancing power supply quality, fulfilling social responsibility and upgrading corporate image. Let's join hand-in-hand striving toward a new year, united in creating a beautiful future for Taipower.