December 26th, 2010. JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that Company's Kashhatau HPP was connected to the grid to conduct operational tests. Three hydro units at the HPP will work in test regime for 72 hours and following that the brand new HPP will be put into operation.

The Kashhatau HPP is one of JSC RusHydro's priority objects in the North Caucasus region. The Company financed construction out of its own funds. From 2006 to 2010, the Company directed RUR 8.5 billion (incl. VAT) of targeted investment to this project. With the launch of the new station, the output from HPPs of the Kabardino-Balkarian branch of JSC RusHydro will approach 50% of the Republic's total energy consumption.

The installed capacity of the Kashhatau HPP is 65.1 MW with an average annual output of 241 million kWh. During the building of the HPP, three radiaxial hydro turbines were installed, which operate under an estimated pressure of 102 m, and three hydro-generators with a capacity of 21.7 MW each were put into operation. The Kashhatau HPP was built upon a derivational scheme with a fixed earth-fill dam with a height of 35 meters, a canal basin with a length of 2.25 kilometers and a derivational tunnel with a length of 4.15 kilometers.

The HPP is equipped with the most modern hydro-power and electro-technical equipment produced by Russian energy construction companies. "Tyazhmash" of Syzran produced the power turbines and the generators were produced by "ELSIB" of Novosibirsk. The Kashhatau HPP is equipped with a modern automated control system, a system for the commercial metering of electric energy and a series of telecommunication devices.