Moscow. 18 January 2006. The Chairman of the Management Board of RAO "UES of Russia" held another meeting of the Emergency Management Center in the Company's principal offices. The meeting is intender to further coordinate actions undertaken by the Moscow Energy System in response to the abnormally low temperatures in the region.

The meeting was attended by the top managers of the Moscow Generation Company, Moscow City Grid Company and Moscow Region Grid Company, heads of the Moscow Region's energy dispatching units, as well as key officers of the RAO UESR administrative staff, Head of the Moscow Municipal Services Directorate and First Deputy Mayor of Moscow Pyotr Aksyonov, and Minister of Utilities, Fuel and Energy of the Moscow Region Government Viktor Beshkarev.

The meeting participants noted that Russia experienced a period of all-time-low temperatures. As at 17:00 hours Moscow time on 17 January 2006, a peak load of 146,000 MW, the highest over the past 15 years, was recorded in the Unified Energy System.

Yesterday evening, the Moscow energy system also experienced the highest ever load, 15,319 MW. However, the Moscow energy system worked stable throughout the evening (17 January) and morning (18 January) peaks of energy consumption, without power outages. Owing to the well-coordinated advance measures, all power plants, grid and dispatching facilities in the Moscow energy system maintained stable operation. The temperature of the heat carrier in the district heating networks corresponds to the weather conditions.

During the evening peak load of 18 January, an even higher level of electricity consumption is expected. According to dispatchers' forecasts, the load may reach 15,800 MW. In this connection, an energy saving mode will be introduced in Moscow and the Moscow Region at 15:00 hours Moscow time. According to preliminary dispatching schedules, the total reductions in electricity supply to industrial enterprises in the area may exceed yesterday's level by 50-60 MW. The supply reduction schedules have been agreed in advance with consumers, and the Governments of Moscow and the Moscow Region.

Supply of power to such consumers will be reduced to the lowest possible level of consumption required for the consumer to safely complete a technological process, with advance notice given to each such consumer. These coercive measures, taken pursuant to Resolution of the Russian Government* No. 664 of 1999, are designed to prevent power outages. The temporary restrictions of power supply to industrial facilities during energy consumption peaks are necessary to ensure stable power supply to households, medical institutions, the city's vital infrastructure, and buildings of state authorities and security agencies.

It was noted at the Emergency Management Center that the energy companies will take all measures required to ensure reliable operation of the power plants in the Moscow Region and the European part of Russia as gas supplies are reduced. Subsidiaries of OAO "Gazprom" have already notified most power plants of RAO "UES of Russia" that gas supplies would be reduced by up to 50% due to technological problems of gas transportation because low temperatures. In particular, the share of natural gas in Mosenergo's fuel mix declined to 50% from 90%. Because of that, gas-fired power plants are switching to reserve fuels, primarily fuel oil. Owing to the prompt and well-coordinated actions taken by the energy companies, the switch to reserve fuels at the Moscow Region's power plants was effected without failures. The stocks of reserve fuel in the Moscow energy system make 400,000 tonnes of fuel oil and 500,000 tonnes of coal, which meets the requirements.

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* Pursuant to Resolution of the Russian Government No. 664 of 22 June 1999, the energy companies submitted for approval of the Fuel and Energy Department of the Moscow City and Moscow Region a list of consumers to which electricity supply would be reduced in a period of peak load in the energy system caused by prolonged abnormally low temperatures. Such consumers primarily include auxiliary facilities of industrial enterprises. The following consumers were not included in such list: social infrastructure, buildings and facilities of state authorities, medical institutions, military units, facilities of the Ministry of the Interior, Federal Security Service, nuclear centers, underground railways, etc.