JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces the results of the Board of Directors Meeting held in absentee voting on May 23, 2011.

Key highlights:

       - reports on execution of the Company's business plan and investment program for 2010 approved;

       - the report on execution of  RusHydro development priorities in 2010 approved;

       - the report on insurance coverage management of RusHydro in 2010 approved;

       - The Board of Directors approved a new edition of the Provision on insurance coverage management of JSC RusHydro;

       - the report on charity and sponsorship in 2010 reviewed;

       - the program on charity and sponsorship in 2011 approved;

       - commercial property lease agreement concluded between JSC RusHydro and JSC SO UES;

       - the contract for the gratuitous cession of the optional target contribution in favor of municipal formation "Town of Krasnozavodsk" of Sergiev-Posad municipal district of Moscow Region

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The Board of Directors approved the reports on execution of the Company's business plan and investment program for 2010.

The total generation and useful output of electricity accounted for 98.2% and 98.5% of the plan in 2010. Lower generation and output were due to abnormally hot weather in the European part of Russia and decrease in water inflow into reservoirs of Volga-Kama Cascade in the third quarter. The hydropower plants operated under given hydrological situation in the modes established by the Federal Agency for Water Resources.

All annual and quarterly KPIs, approved by the Board of Directors November 16, 2010, were considered to be achieved.

During 2010, in accordance with the Investment Program of RusHydro 108 MW were commissioned, including technical upgrade and renovation (15.5 MW - at Volzhskaya hydropower plant (HPP), 10.5 MW - at Zhigulevskaya HPP, 3 MW - at Kamskaya HPP) and new capacity (65MW - at Kaskhatau HPP, 14 MW - at Egorlykskaya HPP).

Capacity commissioning plan was accomplished 100% in 2010.

Financing of the investment program was RUR 99.2 bln including own funds of RUR 81.2 bln and debt of RUR 18.0 bln.

Implementation of the investment program was 107%.

Additional financing of the technical upgrade and renovation projects with regard to creation of integrated security systems of Company's facilities and payment of manufacturing and delivery of the Zhigulevskaya HPP equipment was carried out in 2010 in accordance with the resolutions of Board of Directors. 

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The Board of Directors approved the report on execution of RusHydro development priorities in 2010.

RusHydro development priorities were approved by the Board of Directors on June 16, 2010. This document is the main tool in implementation of the RusHydro Strategic Plan during a year and determines the list of key tasks in each sphere of the Company's activity.

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The Board of Directors approved the Report on insurance coverage management of JSC RusHydro in 2010.

According to the insurance coverage program implementation the insurance expenditure was RUR 682.950 mn, which is 99.5% of the planned amount for 2010.

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The Board of Directors approved a new edition of the Provision on insurance coverage management of JSC RusHydro.

The new edition is developed to update the Provision approved by the Board of Directors in 2009. In particular, unified criteria for subsidiaries' insurance management were introduced, a compulsory list of insurance types was worked out in details, changeover to insured sums equivalent to the property reinstatement costs was considered. The new Provision implies attraction of independent expert organizations for assessment of risks to be insured. Besides, the new version of Provision stipulates the minimum sums of insurance indemnity limits for an accident insured against and the minimum amount of unconditional franchise that were approved earlier by decisions of the Board of Directors. To bring the Provision in compliance with the Town Planning Code of the Russian Federation, a new insurance type is provided: insurance of civil liability for damage resulting from deficiencies in construction works, design documentation preparation and engineering researches.

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The Board of Directors considered the report on charity and sponsorship in 2010.

In 2010, RusHydro continued implementing the Long-term integrated charitable program "Ship of Hope" including the support of  orphan asylums and educational institutions, contest of student projects "Development energy", "Oberegay!" environmental charitable action, and other charitable projects. In addition, as a part of celebrating the jubilee of Great Patriotic War victory, RusHydro rendered financial assistance to veterans of the Great Patriotic War, workers on the home front and victim of Leningrad siege, and continued implementing the projects intended for management of social consequences resulted from the accident on Sayano-Shushenskaya HPP.

The total amount of funds allocated by RusHydro Group for execution of charitable and sponsorship activities in 2010 equaled to more than RUR 400 mln.

In addition, the Board of Directors approved the program of charitable and sponsorship activity in 2011.

As a part of its implementation, such essential directions as "Ship of Hope" program and projects intended for management of social consequences resulted from the accident on Sayano Shushenskaya HPP, and others will see further development. About RUR 500 mln in total are planned to be spent for charitable and sponsorship activities by the holding.

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The Board of Directors approved the commercial property lease agreement concluded between RusHydro and JSC SO UES.

The Agreement is concluded to arrange workplaces on Zhigulevskaya HPP (branch of  RusHydro), which are meant for JSC SO UES employees supervising the plant equipment involved into the production process.

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The Board of Directors approved the contract for the gratuitous cession of the optional target contribution in favor of municipal formation "Town of Krasnozavodsk" of Sergiev-Posad municipal district of Moscow Region by RusHydro. The contribution will be spent for construction of a daeferrization station, three water supply wells, modular boiler house in Vozrozhdeniye village, heating main and improvement of the recreation zone in the town pond in Krasnozavodsk. Construction of these facilities is prescribed in the Agreement on Cooperation between the government of Moscow Region and RusHydro as part of implementation of investment project for Zagorskaya PSHPP-2 construction.

Besides, the Board of Directors approved the Financing Procedure for construction of social, cultural and household facilities in the territory of Bogorodskoye town and their charitable cession to the municipal formation.