May 25, 2006, Mosenergo’s Board of Directors has approved the programme for implementation of the Company’s environmental policy for the period of 2006-2008.

Under the programme, the Mosenergo environmental management will be required to undergo certification of conformity with ISO 14000 international quality standard by 2008. During the period of 2006-2008, Mosenergo will be introducing continuous-monitoring measuring equipment to control discharge water quality and quantity, together with discharge water cleaning measures, including construction and reconstruction of water-cleaning plants at the following stations: HEPS-1, TPP-9, TPP-12, TPP-22 and TPP-26. Mosenergo also plans to install systems for optimising the combustion process at its power stations, including the continuous-monitoring and auditing of harmful emissions to the atmosphere, low-toxicity combustion apparatus, flue-gas recycling and staged fuel-combustion technology. Measures to reduce noise output from technological equipment are to be introduced in accordance with projects of power stations sanitary-protection zones. The total cost of the environmental programme will amount to some 785 million rubles. The programme is to be jointly financed by the Company itself and with funds obtained from the EBRD.

Over the last 10 years, the volume of harmful emissions from Mosenergo power stations has been reduced by more than 4-fold. All power boilers have been reconstructed, the largest of these (those of the 250 MW units located at the TPP-21 and TPP-23 stations) undergoing major reconstruction. State-of-the-art gas scrubbing equipment has been installed on the coal-fired boilers at the TPP-22 power station. In order to guarantee comfortable climatic conditions at the Losiny Ostrov nature park, a nitric oxide neutralisation unit has been installed at Mosenergo’s TPP-27 station and the volume of harmful emissions from the station has consequently fallen to levels 4-times lower than the standard requirements. Emission control systems are operating at all the Company’s power stations.

Special attention has been given to preparation of the back-up fuel – black strap. Addition of moisture into the black strap at quantities of 10% when mixing at micron level, results in a 30% reduction in the formation of nitric oxide when the fuel is burnt.

A significant amount of work is being undertaken to reduce water discharge and noise levels at power stations. Technical water is currently used in a number of power station technological cycles, significantly reducing both water dischargse and make-up rates. The volumes of water required are currently reduced from 1.5 billion cubic meters a year to 1 billion cubic meters a year. The quality of the water discharged into the Moskva River is automatically controlled. Gas conduits and gas distribution points at power stations are fitted with noise suppressors. The TPP-23 station is the first Russian station fitted with cooling tower noise screen.