JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that the Federal Tariff Service of Russia (FST) has issued a decree that sets new parameters of tariff component (investment mark-up) to be included in capacity payments for RusHydro in 2011. Their total amount is RUR 12,905,559 thousand.

The document was issued in compliance with the decree of the Government of the Russian Federation No. 1172 (from December 27, 2010) on the rules of the wholesale electricity and capacity market in Russia and is effective as of June 1, 2011.

According to the current wholesale market rules the investment mark-up for 2011 should be added to capacity payments, established following the results of competitive capacity auction, and only for power generating facilities located in the first price zone of Russia (Europe and Urals). The amount of the component is RUR 89,538.13/MW per month.

The proceeds from this mark-up to tariffs are necessary to ensure the safe operation of hydropower plants and pumped storage plants as well as financing their investments needs.

FST will issue a separate decision on the amount of the investment component for 2012.