At its meeting the board discussed a number of organizational issues and made the following decisions:

• Based on broad recommendations from RAO UES, AO MOSENERGO prepared, discussed and approved a plan of activities for the board of directors up to 2002. In addition to reviewing current financial and economic issues, the plan provides for discussion of strategic objectives of AO MOSENERGO’s activities including adoption of the program for technical re-equipment up to 2005, approval of the plan for preparing the company to operate in conditions of the competitive electricity market and restructuring, etc.).

• The board of directors approved the list of AO MOSENERGO’s board members submitted by Aleksandr Remezov, general director and the chairman of the board. The list consists of fifteen members:

• A. N. Remezov, general director, chairman of the board;
• V. P. Cherny, first deputy general director for corporate policy and property management;
• I. T. Goryunov, first deputy general director, chief engineer;
• A. V. Yevstafiev, deputy general director for information technology;
• V. V. Kuzmin, deputy general director for sales and customer relations;
• V. L. Nazin, deputy general director for economic issues;
• S. P. Romanovskii, deputy general director for capital construction;
• A. G. Uzilevskii, deputy general director for fuel and parts supply;
• A. A. Mityaev, deputy general director for distribution grids and perspective development;
• A. V. Pasko, chief accountant of AO MOSENERGO;
• V. S. Mozgalev, deputy chief engineer for dispatch services;
• Y. L. Guskov, director of power station no. 21 (TEZ-21), a branch of AO MOSENERGO;
• R. A. Balikoev, director of the branch “Teplovye Syeti;”
• L. M. Boyar, director of Mozhaisk electric grids, a branch of AO MOSENERGO;
• N. I. Serebryannikov, counselor to the general director.

• Based on the proposal of the general director, the board of directors approved the amount of remuneration for members of the board.

• The board of directors approved A. A. Vagner as deputy chairman of the board of directors of AO MOSENERGO and Y. A. Goncharov as executive secretary of the board.

• The board discussed a proposal from the board and made the decision regarding the amount of payment for services of Top-Audit, the external auditor of AO MOSENERGO.

• The board of directors supported the decision of the board to cancel the Regulation on Age Limits for Executives at AO MOSENERGO dated 1995, as the document which contradicts the existing labor code of the Russian Federation.

At the same meeting the board of directors discussed current economic activities of the company.

In the 2001, the key economic indicators business plan were calculated by taking into account the need to increase heat and electricity rates by 40 percent as compared to 2000, while the actual increase, by decision of the Regional Energy Commissions of Moscow and Moscow region, was 23 percent. Due to this fact, the key indicators from the 2001 business plan and expenditure budget had to be adjusted.

The board of directors discussed and approved the report from the board on the fulfillment of the business plan of AO MOSENERGO in the first quarter of 2001, delivered by V. L. Nazin, deputy general director for economy, and the information on cost reduction in AO MOSENERGO in the first quarter of 2001. During that period the company cut the costs by 381.25 million rubles as a result of reducing fuel expenditures.

The board took this information into consideration and recommended the board not to slow activities aimed at cost reduction.

The board of directors approved the decision “On sponsorship for an ‘All-Russia National Military Foundation.’”

The board of directors also approved the report on the fulfillment of the budget of AO MOSENERGO in the first quarter of 2001.

Y. A. Goncharov
Executive Secretary
Board of Directors