On Monday, January 29, OAO Mosenergo’s Board of Directors noted a value of 5 rubles 28 kopecks for the Company’s share placement according to the formula approved by the General Meeting of Shareholders on December 20, 2006. The share placement price on exercising preemptive rights is also 5 rubles 28 kopecks.

As part of the Company’s investment program for 2007, OAO Mosenergo’s Board of Directors approved a technical reequipment project for TETs-9 involving the installation of a GTE-65 gas turbine and a waste-heat boiler with annual financing of 465 million rubles, and a technical reequipment project for TETs-12 involving the installation of a 170-MW steam-gas power-generating unit. An international tender will be held to select a gas-turbine unit with waste-heat boiler and one steam cogeneration turbine with generator incorporated in the steam-gas power-generating unit for the TETs-12 technical reequipment project. Holding the tender and selecting equipment will allow completion of a preliminary feasibility study.

In 2005, OAO Mosenergo began implementing a large-scale Program of development and technical reequipment of Moscow’s power network based on the latest technologies. By 2010, OAO Mosenergo will have commissioned more than 2400 MW of capacity by constructing new steam-gas power-generating units at TETs-21, TETs-26, and TETs-27 in the first phase of the Program, as well as by converting TETs-9, TETs-12, and TETs-20 to the steam-gas cycle – power plants supplying power to the center of the capital and located in areas of future urban development – in the second phase.

The Board of Directors approved a Cost Management Program (CMP) for 2007-2008. The key measures of the program are planned along three main lines: increasing marketable output, cutting costs, and optimizing the results of operating and nonmarketing activities. Projected savings from implementing the CMP are 792 million rubles in 2007 and 911 million rubles in 2008.

The Program specifically takes into account an increase in OAO Mosenergo’s marketable output as a result of commissioning new facilities. Reconstruction and modernization of the steam turbines at TETs-9 and TETs-22, increasing the capacity at each plant by 20 MW, will increase marketable output to 55 million rubles.

Complete reconstruction of the coal storage yard at TETs-22 with the transfer of coal storage on-site will save 70 million rubles in 2007 and up to 100 million rubles in 2006.

The introduction of Automated Power Monitoring and Control System (APMCS) will make it possible to increase productive supply by 340 million kW in 2007 and 368 million kW in 2008, resulting in additional earnings of 129 million and 156 million rubles, respectively.

Optimizing the payroll system will save 200 million rubles in 2007 and 2008.

The Board of Directors approved a Private Pension Program for OAO Mosenergo employees. The basic principles of the Program are a unified approach to setting up private pensions at the Company’s subsidiaries, a differential approach to the established amount of private pension for employees, and promoting employees on merit and length of service.