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ANNUAL REPORT 2007 JSC OGK-6

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					 ANNUAL REPORT                2007      JSC “OGK-6”




THE ANNUAL REPORT OF JSC “OGK-6” FOR 2007
Preliminarily approved
by the Board of Directors of JSC “OGK-6”
on April 14th , 2008 (Protocol #66)




General Director V.M. Sanko




Chief Accountant B.Z. Dolgoarshinnykh
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




                                                   ADDRESS                                                                      p. 04–05
                                                   Address of Dmitry Alexandrovich Melnikov, Chairman of the Board
                                                   of Directors of JSC “OGK-6”, and Valentin Mikhailovich Sanko, General
                                                   Director of JSC “OGK-6”, to shareholders

                                                 1 | INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY                p. 06–23
                                                     Brief history of the Company. Priority areas of the Company’s activity
                                                     Organizational structure of the Company
                                                     Brief information on the Company
                                                     Primary events of 2007 that influenced the Company’s development
                                                     and achievements
                                                     Information on risks and risk management system

                                                 2 | PRODUCTION ACTIVITIES                                                      p. 24–33
                                                     Electric power generation
                                                     Heat generation
                                                     Specific consumption of fuel equivalent for supply of electric power
                                                     and heat
                                                     Structure of fuel mix

                                                 3 | INVESTMENT ACTIVITIES                                                      p. 34–45
                                                     Priority objects of technical upgrading and investment program
                                                     reconstruction of JSC “OGK-6” for 2007
                                                     Major investment projects

                                                 4 | ECONOMY                                                                    p. 46–59
                                                     Analysis of consolidated financial indicators
                                                     Analysis of financial indicators for JSC “OGK-6” (without consolidation)

                                                 5 | SALES OF ELECTRIC POWER AND HEAT                                           p. 60–73
                                                     Information on the structure of the market in which the Company
                                                     conducts its activities
                                                     System of agreements of the Company in the wholesale electricity
                                                     and electricity capacity market
                                                     Supply of electric power to the wholesale and regional market
                                                     Supply of heat

                                                 6 | SECURITIES AND SHARE CAPITAL                                               p. 74–83
                                                     Company share capital structure
                                                     Information on the issue of securities by the Company
                                                     JSC “OGK-6” shares trading results

                                                 7 | CORPORATE GOVERNANCE STRUCTURE AND PRINCIPLES                              p. 84–105
                                                     Principles and documents
                                                     Information on management and controlling bodies
                                                     Information on major transactions and interested party transactions
                                                     concluded by the Company in 2007
             |   CONTENTS
                                                                                            02 | 03




p. 106–113       8 | OUR STAFF
                     Personnel structure
                     Salaries
                     Program of retirement benefits

p. 114–119       9 | ENVIRONMENTAL PROTECTION
                     Environmental management
                     Atmosphere pollution

p. 120–129   10 | FINANCIAL ACCOUNTING
                  Audit report
                  Company financial statements for 2007

p. 130–153   11 | APPENDICES
                  Appendix 1. Report of the JSC “OGK-6” Audit Committee on the
                  adequacy of data contained in the Annual Report of JSC “OGK-6” for 2007
                  Appendix 2. Information on observance by JSC “OGK-6” of the Code of
                  Corporate Conduct
                  Appendix 3. Information on major transactions and interested party
                  transactions concluded by JSC “OGK-6” in 2007
                  Appendix 4. Characteristics of primary equipment of JSC “OGK-6”

p. 154–155   12 | CONTACT INFORMATION
                  Company contact information
                  Contacts for shareholders and investors
                  Contacts for the media
                  Auditor
                  Registrar
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




D. Melnikov,                                     V. Sanko,
Chairman of the Board of Directors               General Director
|   ADDRESS
                                                                                                                                                                04 | 05


DEAR SHAREHOLDERS,




For JSC“OGK-6” the past year has
                 ,                        the Company to commence direct         41.5%). Likewise, a 4.5% increase in   implementation of the investment
become a decisive stage in the            implementation of the planned          operating capacity was attained in     program. Particular attention will
development of the Company. For           measures aimed at increasing the       2007 in comparison with 2006. It is    be given to quality repairs and
us this was the first full-fledged year   installed capacity of Company’s        important to note that despite the     professional operation of
of operation as an integrated             plants. Contracts have been            growth of primary performance          equipment in order to provide
operating company. Summarizing            concluded for practically all          indicators, not a single significant   reliable and uninterrupted power
the results of the work in 2007, we       projects for supply of primary         procedural violation was               generation.
can speak of the effectiveness of the     equipment, and the suppliers           committed.
uniform corporate standards and           have begun manufacturing it. The                                              By July 1, 2008, JSC “OGK-6” plans
business process optimization             implementation of the investment       Electricity sales increased by 19%     to complete reorganization in the
systems we have adopted.                  program will result in the installed   in 2007 in comparison with 2006,       form of incorporation of a
                                          capacity of JSC “OGK-6” reaching       reaching 38,989 million kWhr. At       company separated from JSC RAO
Approval of the JSC “OGK-6”               10,322 MW by 2011.                     the same time, sales growth in         UES of Russia. As a result, the stock
Development Strategy for 2007-                                                   unregulated sectors of the             of JSC “OGK-6” belonging to JSC
2011 by the Company’s Board of            The development strategy of JSC        wholesale market amounted              RAO UES of Russia will be
Directors became an important             “OGK-6” also stipulates a large-       to 58.4%.                              distributed among shareholders of
event for the Company in 2007.            scale program of equipment                                                    JSC RAO UES of Russia, leading to
This is one of the fundamental            modernization and extension of         Last year, the Company achieved        increased stock liquidity.
documents that guides the entire          its service life. The document sets    significant financial results. In
Company staff. The objective of           the task of supplying the market       accordance with the annual             The accomplishment of the set
the strategy is to increase the           additionally up to 400 MW of           accounts of JSC “OGK-6”, gross         tasks will permit the management
capitalization of JSC “OGK-6” by          operating capacity (not including      Company profits increased by           team to resolve the main issue —
prevailing growth of coal-fired           new input capacity), selling 100%      50.9% in 2007 in comparison with       increasing Company capitalization.
generation and the leading                of capacity in the new structure of    the previous period, and
position among Russian coal-fired         sales markets, as well as increasing   amounted to 1,873,621 thousand
generating companies. In order to         electric power generation by 35%.      rubles. This performance was           D. Melnikov,
achieve this goal, it is proposed to      By implementing new efficient          achieved to a large extent due to a    Chairman of the Board
increase the share of coal in the         technologies, JSC “OGK-6” also         flexible strategy of the Company’s     of Directors
fuel mix to 60%.                          plans to reduce the level of           participation in the free sector of
                                          atmosphere emissions.                  the wholesale market.
In accordance with the Strategy,
the Company proceeded to solve            In recent years we can note that       Overall, the past year was a
the problem of increasing the             the growth rate of electric power      successful one for the Company in      V. Sanko,
installed capacity to 1270 MW by          generation by JSC “OGK-                many areas, but we do not intend       General Director
2011. This is to take place due to        6”exceeded the growth rate of          to rest on our laurels. We can say
the introduction of new power             electric power generation in           with confidence that in future JSC
generating units and profound             Russia as a whole. The share of JSC    “OGK-6” will preserve the
modernization of the existing             “OGK-6” on the Russian electric        progressive trend of development.
ones on the basis of modern high-         power market has been increasing       The implementation of the flexible
efficiency technologies, including        year by year. Electric power           strategy of Company’s
gas-steam cycle power generating          generation at Company power            participation in the free sector of
units and high-performance                plants rose by 3.53% in 2007 in        the wholesale electric power
power generating units. For               comparison with 2006 and               market will be continued, which
purposes of financing the                 amounted to 34.065 billion kWhr.       will make it possible to increase
investment program the Company            Moreover, the load factor              the efficiency of the operating and
placed an additional issue of             increased. In the aggregate, it        financial activity of JSC “OGK-6”.
shares at the end of 2007. Funds          amounted to 42.96% for JSC “OGK-       The team will concentrate its
raised by this placement allowed          6” (in 2006, the load factor was       efforts on the efficient
Ostankino Tower
OSTANKINO TOWER IS THE HIGHEST STRUCTURE IN RUSSIA WITH A
HEIGHT OF 540 METERS. THE HEIGHT OF KIRISHI GRES POWER PLANT
CHIMNEY IS 320.00 METERS. THIS IS THE HIGHEST POINT IN LENINGRAD
REGION. SEE THIS SECTION FOR THESE AND OTHER INTERESTING DETAILS
ABOUT THE COMPANY.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                                             06 | 07




                                            1    INFORMATION ON THE COMPANY
                                                 AND ITS POSITION IN THE INDUSTRY
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



1. INFORMATION ON THE
COMPANY AND ITS POSITION
IN THE INDUSTRY
I. BRIEF HISTORY OF THE COMPANY.
PRIORITY AREAS OF THE COMPANY’S ACTIVITY




JSC Sixth Wholesale Power Market                 Novocherkasskaya GRES, JSC              The total electric installed       COMPANY STRUCTURE
Generating Company (JSC “OGK-                    KiGRES, JSC Ryazanskaya GRES, and       capacity of JSC “OGK-6” plants
6”) was established by the order of              JSC KGRES-2, reserving as its own       amounts to 9,052 MW. This
JSC RAO UES of Russia of March 16,               property one share of each GRES.        renders JSC “OGK-6” the fourth
2005 as part of reforming of the                 In May of 2006, controlling stocks      largest company by installed
electric power industry. On March                in JSC GRES-24 and JSC                  capacity size among all WGCs
                                                                                                                                      RGRES                GRES-24
17, 2005, JSC “OGK-6” was                        Cherepovetskaya GRES were               and TGCs created as a result of          45.1
registered with the Inspectorate of              deposited in payment for                the reform of electric power
the Russian Federal Taxation                     additional shares of JSC “OGK-6”.       industry in Russia. The total
Service for the Leninsky Region of                                                       installed heat of JSC “OGK-6”                         Executive
                                                                                                                                    1.7
                                                                                                                              NchGRES          body           ChGRES
the city of Rostov-on-Don.                       On September 29, 2006, the              plants amounts to 2,704 Gcal/hr.                   JSC “OGK-6”
                                                 reorganization of the Company                                                      1.2                         35.0
Wholesale generating companies                   was completed in the form of                                                4.2
were created on a basis of major                 incorporation of AO plants, and JSC
power plants belonging to JSC                    “OGK-6” became a sole operating                                                     KiGRES           KGRES-2
RAO UES of Russia. Assets included               company. On the basis of former
                                                                                                                                 10
in JSC “OGK-6” were selected in                  JSC Novocherkasskaya GRES, JSC                                                           12.3
accordance with the principles that              KiGRES, JSC Ryazanskaya GRES, and
are common for all wholesale                     JSC KGRES-2, JSC Cherepovetskaya
generating companies. All WGCs                   GRES, and JSC GRES-24, subsidiaries
have been created on the basis of                of JSC “OGK-6” were established.
exterritoriality: they unite plants                                                                                                  НчГРЭС
located in various parts of the                  The primary types of activity of JSC
country, the purpose being to                    “OGK-6” are electric power and heat
                                                                                                                                     КГРЭС-2
exclude the possibility of a                     generation and supply/sales of
monopoly of any individual                       electric power and heatt to
company in a specific region. JSC                consumers. In the context of this                                                   КиГРЭС
                                                                                                                                         BRANCHES OF OGK-6
“OGK-6” is the second largest                    activity, JSC “OGK-6” provides for
company in the size of installed                 operation of power equipment in
                                                                                                                                     РГРЭС
capacity among the created                       accordance with the current
thermal wholesale generating                     regulatory requirements, conducts
companies.                                       timely and quality repairs, technical                                               РЭС-24
                                                 reequipment and reconstruction of
In payment of the authorized                     power facilities, organizes energy-                                                 ЧГРЭС
capital of JSC “OGK-6”, JSC RAO UES              conserving operating regimes for
of Russia, as the sole founder,                  power plant equipment, and
deposited nearly 100% of the                     maintains power supply schedules                                                    УК
shareholdings of four plants: JSC                in accordance with contracts.
                                               |   INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY
                                                                                                                                                                               08 | 09


                                               MISSION OF THE COMPANY
                                               “RELIABLE AND EFFICIENT GENERATION AND SUPPLY OF ELECTRIC POWER
                                               AND HEAT WITH A VIEW TO MEET THE NEEDS OF THE POPULATION, ENTERPRISES,
                                               AND ORGANIZATIONS IN THE TERRITORY OF RUSSIA.”




                                               STRATEGIC OBJECTIVE
                                               “TO INCREASE COMPANY CAPITALIZATION BY MEANS
                                               OF PREDOMINANT GROWTH OF COAL GENERATION.”




II. BRIEF INFORMATION ON THE COMPANY

PLANT                                    INSTALLED                                    INSTALLED                                 GEOGRAPHIC                     PRIMARY/RESERVE
                                  ELECTRIC CAPACITY                             THERMAL CAPACITY                                  LOCATION                   FUEL/STARTING FUEL
                                                   MW                       (including water boilers), Gcal/hr


Ryazanskaya GRES                              2,650                                                    180                        Central UPG           Gas, coal / fuel oil / gas, coal
Novocherkasskaya GRES                         2,112                                                     75                         South UPG                 Coal / gas / gas, fuel oil
Kirishskaya GRES                              2,100                                                  1,234                     Northwest UPG              Gas / fuel oil / gas, fuel oil
Krasnoyarskaya GRES-2                         1,250                                                  1,176                        Siberia UPG                   Coal / none / fuel oil
Cherepovetskaya GRES                            630                                                     39                        Central UPG                Coal / gas / gas, fuel oil
GRES-24                                         310                                                      –                        Central UPG                       Gas / none / none

TOTAL:                                        9,052                                                  2,704




INSTALLED ELECTRICAL AND THERMAL CAPACITIES OF OGK-6 SUBSIDIARIES
FOR THE END OF 2007 (MWt, Gcal/hr)

2600




                                               2,650     180             2,112        75                         2,100 1,234            1,250 1,176   630    39                     310

   0
                                                   RGRES                   NchGRES                                KiGRES                    KGRES-2    ChGRES                    GRES-24




                                                        — Electrical capacity                                          — Thermal capacity
    ANNUAL REPORT       2007          JSC “OGK-6”
|                   |             |


RYAZANSKAYA GRES                                                In addition, 500 kW networks also
(RGRES)                                                         receive power from
                                                                Novovoronezhskaya, Kalininskaya,
The plant is located in                                         and Smolenskaya NPPs and
Novomichurinsk, Ryazan                                          Volzhskaya HPP, as well as flow
Region, 80 kilometers south of                                  from the UPG of mid-Volga region
Ryazan and 285 km southeast                                     and Ural. The 800 MW units of the
of Moscow. Ryazanskaya GRES                                     Ryazanskaya GRES are the most
is one of the five largest Russian                              efficient condensation sources
power plants by installed                                       among both mobile and
capacity. Installed plant                                       stationary installations, with the
capacity in 2,650 MW.                                           exception of the 1200 MW units of
                                                                Kostromskaya GRES. Ryazanskaya
The first order primary fuel is:                                GRES is one of the primary
approximately 70% — brown coal                                  suppliers on the regional
from Kansko-Achinsky coal basin,                                balancing market of electric
and approximately 30% brown                                     power.
coal from Podmoskovny coal basin
(grade 2BR). The second order
primary fuel is natural gas
(supplier — JSC Ryazanregiongaz).
Reserve fuel is fuel oil, and starting
fuel — gas and coal.
Chief competitors are TGK-3
(Mosenergo), TGK-4, GRES-4
(Kashirskaya) OGK-1, Kostromskaya
and Cherepetskaya GRES OGK-3,
GRES-5 (Shaturskaya) and
Smolenskaya GRES OGK-4, and
Konakovskaya GRES OGK-5.




                                                                    NIZHNI NOVGOROD

                                          VLADIMIR

                                           VLADIMIR            NIZHNI NOVGOROD
                                           REGION              REGION


                MOSCOW
                                                                                  SARANSK
                    MOSCOW                                            MORDOVIA
                    REGION                        RYAZAN

                                                   RYAZAN GRES
                                                   POWER PLANT
                                                                      PENZA
                                                                                   PENZA
                                                                      REGION
                        TULA
                                                           TAMBOV
                         TULA                              REGION
                         REGION
                                        LIPETSK
                                        REGION
                                                              TAMBOV

                                      LIPETSK




                                                                    TURBINE TYPE (MODEL)**     YEAR OF COMMISSIONING                   INSTALLED ELECTRIC CAPACITY                     INSTALLED THERMAL CAPACITY*
                                                                                                                                                                       MW                                     Gcal/hr


                                                                    К-300-240                                      1973                                               260                                        15
                                                                    К-300-240                                      1973                                               270                                        15
                                                                    К-300-240                                      1974                                               260                                        15
                                                                    К-300-240                                      1974                                               260                                        15
                                                                    К-800-240-3                                    1980                                               800                                        30
                                                                    К-800-240-3                                    1981                                               800                                        30

                                                                    TOTAL:                                                                                         2,650                                        120

                                                                * — excluding water boilers;          ** — сomplete details on primary equipment of JSC “OGK-6” are presented in Appendix 4.
|   INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY
                                                                                                                                                                                                            10 | 11


                                                                                                                      NOVOCHERKASSKAYA                                         The plant is located in Northern
                                                                                                                      GRES (NCHGRES)                                           Caucasus UPG, chief competitors
                                                                                                                                                                               are Stavropolskaya and
                                                                                                                      Novocherkasskaya GRES is                                 Nevinnomysskaya gas GRES. Peak
                                                                                                                      located in Novocherkassk,                                regulation is conducted by an HPP.
                                                                                                                      Rostov Region, 53 km southeast                           The primary load on the power
                                                                                                                      of Rostov-on-Don. Installed                              plant is expected in the base
                                                                                                                      plant capacity is 2112 MW.                               mode, as well as partial
                                                                                                                                                                               participation in the balancing
                                                                                                                      By way of primary fuel types the                         market. Production by the plant
                                                                                                                      power plant utilizes ASh-grade                           constitutes over 15% of
                                                                                                                      coal from the Rostov coal basin                          consumption of Northern
                                                                                                                      (Chikh Almaznaya mine,                                   Caucasus UPG.
                                                                                                                      Gukovugol Sadinskaya mine,
                                                                                                                      Sherlovskaya-Naklonnaya mine),
                                                                                                                      Kuznetsk coal (Kaltansky and
                                                                                                                      Krasnobrodsky coal strip mines),
                                                                                                                      and natural gas (supplier — JSC
                                                                                                                      Rostovregiongaz). Reserve fuel is
                                                                                                                      gas, and starting fuel — gas and
                                                                                                                      fuel oil.




                                                                                                                                                     VORONEZH
                                                                                                                                                     REGION




                                                                                                                                                                                                VOLGOGRAD

                                                                                                                                                                              VOLGOGRAD
                                                                                                                                                                              REGION




                                                                                                                                                                                          KALMYKIA
                                                                                                                                                   ROSTOV-ON-DON

                                                                                                                                                          NOVOCHERKASSK GRES
                                                                                                                                                          POWER PLANT

                                                                                                                                       KRASNODAR
                                                                                                                                       TERRITORY
                                                                                                                                                                                             ELISTA


                                                                                                                                                                STAVROPOLIE

                                                                                                                                       KRASNODAR

                                                                                                                                                                        STAVROPOL




 TURBINE TYPE (MODEL)*                   YEAR OF COMMISSIONING                          INSTALLED ELECTRIC CAPACITY          INSTALLED THERMAL CAPACITY
                                                                                                                MW                                              Gcal/hr


 К-264 (300)-240-1                                              1965                                           264                                                  15
 К-264 (300)-240-2                                              1966                                           264                                                  15
 К-264 (300)-240-2                                              1967                                           264                                                  15
 К-264 (300)-240-2                                              1968                                           264                                                  15
 К-264 (300)-240-2                                              1969                                           264                                                   0
 К-310-23,5-3                                                   2005                                           264                                                   0
 К-264 (300)-240-2                                              1971                                           264                                                   0
 К-264 (300)-240-2                                              1972                                           264                                                  15

 TOTAL:                                                                                                      2,112                                                  75

* — сomplete details on primary equipment of JSC “OGK-6” are presented in Appendix 4.
             ANNUAL REPORT              2007       JSC “OGK-6”
         |                          |          |


         KIRISHSKAYA GRES                                             The plant is a part of Northwest
         (KiGRES)                                                     UPG, the generating capacity of
                                                                      which is also comprised by
         Kirishskaya GRES is located in                               Leningrad NPP, Pskov GRES (OGK-
         Kirishi, 150 km southeast of St.                             2), HPP and TPP TGK-1, and
         Petersburg. Installed plant                                  Northwestern TPP.
         capacity is 2,100 MW.
                                                                      Besides Kirishskaya GRES, only
         Fuel oil was the planned fuel type                           approximately 400 MW of HPP
         when the plant was being                                     TGK-1, condensate production of
         constructed. Subsequently,                                   CHP 22 (South) and CHP 21
         generation units No. 1–6 of the                              (North), as well as reversible flow
         condensation section of the plant                            from Karelenergo (at 330 kW
         and boilers K1T-6T of the heat-                              voltage) and Central UPG, may be
         extraction section were converted                            attributed to the regulating
         to natural gas firing. Currently,                            sources of the central part of the
         natural gas is used as the primary                           UPG. The combined regulation
         fuel for the plant (supplier – JSC                           capacity of the given sources in
         Peterburgregiongaz). Reserve fuel                            the winter season is less than the
         is M-100-grade fuel oil, supplied                            capacity of Kirishskaya GRES and
         by Kirishi refinery (JSC KINEF).                             does not meet the needs of the
         Starting fuel is gas and fuel oil.                           central part of the UPG regulation,
                                                                      due to which the plant is the main
                                                                      frequency and capacity regulator
                                                                      for the system. The Kirishskaya
                                                                      GRES units operating at partial
                                                                      load are the primary source of
                                                                      power for the balancing market in
                                                                      the region. The system operator
                                                                      assigns a fairly high load to the
                                                                      plant, using it as a regulator and to
                                                                      ensure system reliability.

                        KARELIA
                                   PETROZAVODSK



            LENINGRAD
            REGION

              ST. PETERSBURG               VOLOGDA
                                           REGION
                        KIRISHI
                        GRES                          VOLOGDA

                    VELIKY
                    NOVGOROD                              YAROSLAVL
                                                          REGION
             NIZHNI NOVGOROD
             REGION                                     YAROSLAVL
    PSKOV
                                    TVER                               TURBINE TYPE (GRADE)**        YEAR COMMISSIONED                       INSTALLED ELECTRICAL CAPACITY                      INSTALLED THERMAL CAPACITY*
PSKOV
REGION                    TVER
                          REGION                                                                                                                                                MW                                     Gcal/hr


                                                                       К-300-24 0-1                                1969                                                        300                                        0
                                                                       К-300-24 0-1                                1970                                                        300                                        0
                                                                       К-300-24 0-1                                1970                                                        300                                        0
                                                                       К-300-24 0-1                                1971                                                        300                                        0
                                                                       К-300-24 0-1                                1973                                                        300                                        0
                                                                       К-300-24 0-1                                1975                                                        300                                        0
                                                                       PT-50-130/7                                 1965                                                         50                                      110
                                                                       PT-60-130/13                                1966                                                         60                                      139
                                                                       PT-50-130/7                                 1967                                                         50                                      110
                                                                       PT-60-130/13                                1975                                                         60                                      139
                                                                       R-40-130/13                                 1976                                                         40                                      164
                                                                       R-40-130/19                                 1979                                                         40                                      164

                                                                       TOTAL:                                                                                                2,100                                      826

                                                                      * — excluding water boilers;             ** — complete details on primary equipment of JSC “OGK-6” are presented in Appendix 4.
|   INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY
                                                                                                                                                                                                               12 | 13


                                                                                                                     KRASNOYARSKAYA                                                In the competitive environment
                                                                                                                     GRES-2 (KGRES-2)                                              there are HPPs of the Angaro-
                                                                                                                                                                                   Eniseisky Cascade (regulation and
                                                                                                                     Krasnoyarskaya GRES is located                                base capacity), efficient thermal
                                                                                                                     in Zelenogorsk, 167 km east of                                generation by the Nazarovskaya
                                                                                                                     Krasnoyarsk. Installed plant                                  GRES (500 MW unit), the
                                                                                                                     capacity is 1,250 MW.                                         Berezovskaya GRES, and a plant of
                                                                                                                                                                                   the former Kuzbassenergo. At
                                                                                                                     Primary fuel is brown coal from                               present, the power plant produces
                                                                                                                     the Irsha-Borodinsky coal strip                               combined heat and power, as well
                                                                                                                     mine of the Kansko-Achinsky coal                              as being essential from the point
                                                                                                                     basin, grade 2BR. Reserve fuel is                             of view of the installed capacity of
                                                                                                                     not provided for, and the starting                            Siberian UPG. The plant load
                                                                                                                     fuel is fuel oil.                                             depends largely on seasonal
                                                                                                                                                                                   factors, such as the presence of
                                                                                                                                                                                   water in reservoirs and air
                                                                                                                                                                                   temperature.




                                                                                                                                TOMSK REGION
                                                                                                                                                                      KRASNOYARSK REGION

                                                                                                                                          TOMSK
                                                                                                                                                                      KRASNOYARSK GRES-2
                                                                                                                                                                      POWER PLANT
                                                                                                                                               KEMEROVO
                                                                                                                                               REGION
                                                                                                                                                                                                IRKUTSK
                                                                                                                                       KEMEROVO                  KRASNOYARSK                    REGION

                                                                                                                                                          KHAKASSIA


                                                                                                                                                     ABAKAN
                                                                                                                                                                                                IRKUTSK
                                                                                                                                                                              KYZYL

                                                                                                                                                                         REPUBLIC OF TUVA




    TURBINE TYPE (GRADE)**      YEAR COMMISSIONED                          INSTALLED ELECTRICAL CAPACITY                      INSTALLED THERMAL CAPACITY*
                                                                                                              MW                                                  Gcal/hr


    К-150-130                                    1961                                                        150                                                       45
    К-150-130                                    1962                                                        150                                                       45
    К-150-130                                    1963                                                        150                                                       45
    PТ-60-90/13                                  1964                                                         50                                                      145
    К-160-130                                    1974                                                        160                                                       42
    К-160-130                                    1975                                                        160                                                       42
    К-160-130                                    1976                                                        160                                                       42
    PТ-135/165-130-15                            1981                                                        135                                                      285
    PТ-135/165-130-15                            1983                                                        135                                                      285

    TOTAL:                                                                                                1,250                                                       976

* — excluding water boilers;                 ** — complete details on primary equipment of JSC “OGK-6” are presented in Appendix 4.
       ANNUAL REPORT       2007       JSC “OGK-6”
   |                   |          |


   CHEREPOVETSKAYA                                       Competition is expected from the
   GRES (ChGRES)                                         Kostromskaya and Konakovskaya
                                                         GRES connected with the region
   Cherepovetskaya GRES is                               via 500 kW power lines (flexible
   located in Kadui settlement of                        generation), as well as from
   Vologda Region, 50 km west of                         Kalininskaya NPP (750 kW power
   Cherepovets. Installed plant                          lines, base schedule).
   capacity is 630 MW.                                   Simultaneously, due to load of
                                                         these power plants towards the
   By way of primary fuel types the                      Moscow Generation Center and
   power plant uses NSSh- and                            high consumption by consumers
   DMShS- grade coal, from Khakas                        connected via 220 kW power lines,
   (Stepnoy coal strip mine,                             no load reduction is planned. The
   Chernogorskaya Coal Company,                          competitive advantage of
   Khakassrazrezugol, Vostochno-                         Cherepovetskaya GRES is the
   Beisky), Intinsk (Intaugol), and                      ability to use both coal and gas for
   Kuznetsk (Evtinsky and                                electric power production.
   Zadubrovsky coal strip mines), and
   natural gas (supplied by JSC
   Vologdaregiongaz). Reserve fuel is
   gas, and starting fuel is gas and
   fuel oil.




                           KARELIA                  ARCHANGELSK

                 PETROZAVODSK

                                                    ARCHANGELSK REGION
             LENDINGRAD
             REGION

ST. PETERSBURG
                                     CHEREPOVETSK VOLOGDA
                                     GRES         REGION
                                            VOLOGDA
           VELIKY
           NOVGOROD
NOVGOROD                                                     KOSTROMA
REGION                                YAROSLAVL              REGION
                                      REGION
                                                     KOSTROMA
                 TVER
        TVER                              YAROSLAVL
        REGION




                                                          TURBINE TYPE (GRADE)*              YEAR COMMISSIONED                             INSTALLED ELECTRICAL CAPACITY   INSTALLED THERMAL CAPACITY
                                                                                                                                                                     MW                          Gcal/hr


                                                          К-210-130-3                                           1976                                                210                             13
                                                          К-210-130-3                                           1977                                                210                             13
                                                          К-210-130-3                                           1978                                                210                             13

                                                          TOTAL:                                                                                                    630                             39

                                                         * — complete details on primary equipment of JSC “OGK-6” are presented in Appendix 4.
|   INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY
                                                                                                                                                                                 14 | 15


                                                                                                  GRES-24
                                                                                                  Installed plant capacity is 310 MW.
                                                                                                  Primary fuel is gas; no types of
                                                                                                  reserve fuel are provided for. The
                                                                                                  plant is located adjacent to
                                                                                                  Ryazanskaya GRES, due to which
                                                                                                  the competitive environment of
                                                                                                  Ryazanskaya GRES and GRES-24 is
                                                                                                  one and the same. In construction
                                                                                                  of the power plant, several
                                                                                                  building solutions and materials
                                                                                                  were employed that are no longer
                                                                                                  used anywhere in the power
                                                                                                  industry. This has made the
                                                                                                  achievement of low specific fuel
                                                                                                  expenditure possible. GRES-24 has
                                                                                                  the highest capacity factor of all
                                                                                                  company power plants.




                                                                                                                                                                      NIZHNI NOVGOROD
                                                                                                                                                  VLADIMIR


                                                                                                                                           VLADIMIR            NIZHNI NOVGOROD
                                                                                                                                           REGION              REGION


                                                                                                                          MOSCOW
                                                                                                                                                                                 SARANSK
                                                                                                                           MOSCOW                                     MORDOVIA
                                                                                                                           REGION                 RYAZAN
                                                                                                                                                      GRES-24
                                                                                                                                                      POWER PLANT

                                                                                                                                                                      PENZA      PENZA
                                                                                                                                                                      REGION
                                                                                                                              TULA
                                                                                                                              REGION                         TAMBOV
                                                                                                                                                             REGION
                                                                                                                            TULA
                                                                                                                                        LIPETSK
                                                                                                                                        REGION               TAMBOV


                                                                                                                                       LIPETSK




TURBINE TYPE (GRADE)            YEAR COMMISSIONED                 INSTALLED ELECTRICAL CAPACITY       INSTALLED THERMAL CAPACITY
                                                                                            MW                              Gcal/hr


К-300-24 0-4                                    1988                                       310                                  0
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




III. MAIN EVENTS OF 2007




    DATE                                          EVENT


    22.03.2007                                   FFMS of Russia registers issues and a Prospectus of nonconvertible interest-bearing bonds of JSC “OGK-6” to the bearer of series 01 (state registration number: 4-01-
                                                 65106-D) and series 02 (state registration number: 4-02-65106-D), placed via public offering.

    10.04.2007                                   An extraordinary General Shareholders’ Meeting decides to decrease fixed Company assets by decreasing par value of shares.

    26.04.2007                                   The Company places nonconvertible interest-bearing bonds via public offering to the bearers of series 01 (state registration number: 4-01-65106-D). The amount of
                                                 the issue was 5 billion rub.

    04.05.2007                                   An extraordinary General Shareholders’ Meeting decides on the early termination of the authority of members of the Board of Directors and election of new members
                                                 to the Company’s Board of Directors.

    15.05.2007                                   FFMS of Russia registers the issue of JSC “OGK-6” shares with lower par value and a prospectus of bonds (state registration number 1-02-65106-D) for conversion of the
                                                 latter to JSC “OGK-6” shares.

    22.05.2007                                   Placement of shares (state registration number 1-02-65106-D) with lower par value via conversion of the latter to JSC “OGK-6” shares of the same category/type. As a
                                                 result, trading of JSC “OGK-6” shares (state registration number 1-01-65106-D) is suspended on Russian exchanges.

    24.05.2007                                   Construction of generation unit №9 is begun at Novocherkasskaya GRES. Vladimir Chub, Rostov Region Governor, Anatoly Chubais, Chairman of RAO UES of Russia,
                                                 Alexander Chikunov, managing director of RAO UES of Russia, and Valentin Sanko, OGK-6 CEO participate in a formal cornerstone-laying ceremony.

    07.06.2007                                   FFSM of Russia registers a report of the results of an issue of shares (state registration number 1-02-65106-D) with lower par value placed via conversion of the latter
                                                 to JSC “OGK-6” shares of the same category/type.

    29.06.2007                                   The annual General Shareholders’ Meeting decides to pay dividends on the results of 2006 in the amount of 0.00845417 rub. per share and to increase share capital by
                                                 placement via public offering of additional ordinary registered uncertified Company shares in the amount of 11,850,000,000 items.
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                                                                                                                                                                                                              16 | 17




DATE                                          EVENT


18.07.2007                                   JSC “OGK-6” second-issue shares (state registration number 1-02-65106-D) are admitted to trade in quoted list “I” of ZAO FB MMVB and in the list of securities
                                             admitted to trade without undergoing listing procedures of JSC RTS.

14.09.2007                                   JSC “OGK-6” subsidiary Kirishkaya GRES commences implementation of the “Reconstruction of unit №6 on a gas-vapor technology basis” project (construction of PGU-800).

18.09.2007                                   FFMS of Russia registers a decision for the release and prospectus of an additional share issue (state registration number 1-02-65106-D-001D), distributed via public
                                             offering.

27.09.2007                                   An extraordinary General Shareholders’ Meeting decides to pay/declare dividends on the results of the first half of 2007 in the amount of 0.00978311 rub. per ordinary
                                             share.

25.09.2007                                   JSC “OGK-6” CEO Valentin Sanko and Vologda Region Governor Vyacheslav Pozgalev sign an agreement of cooperation between JSC “OGK-6” and the Vologda Region
                                             administration. The agreement is intended to improve the quality of life of the regional population, create conditions for its steady socioeconomic development,
                                             develop the fuel and energy complex, and attract investments to the regional economy.

30.10.2007                                   An extraordinary General Shareholders’ Meeting decides to approve a major transaction (interrelated transactions related to offering ordinary Company shares to
                                             investors, including using a stabilization mechanism.

09.11.2007                                   An extraordinary General Shareholders’ Meeting decides to reorganize JSC “OGK-6” by incorporating therein JSC “OGK-6” Holding, created through reorganization of
                                             UES of Russia, to increase share capital of the Company, and to amend the Articles of Association with regard to increasing Company share capital.

19.12.2007                                   The Board of Directors defines the price of placing additionally issued shares (state registration number 1-02-65106-D-001D), which amounted to 3.8 rub. per share.

29.12.2007                                   JSC “OGK-6” places by public offering an additional issue of ordinary registered uncertified Company shares (1-02-65106-D-001D) in the amount of 5,531,497,444
                                             items. ZAO Gazenergoprom-Invest (affiliated company of JSC Gazprom) acquires 17.13% of the increased share capital.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


IV. INFORMATION ON RISKS
AND RISK MANAGEMENT




Risk management is considered one of the most important elements of               The primary objectives of the given measures are:
strategic management and internal control, ensuring increased quality of          » ensuring optimal protection and stability of the Company in the face of
corporate management.                                                                the external and internal risks accompanying the realization of major
                                                                                     investment projects by achieving an optimal balance of risk
The Company plans to create an integrated risk management system (of                 management expenditures and acceptable damages;
both financial and non-financial risks), which will be brought to the attention   » minimization of the Company’s financial resources directed towards
of all employees. Within the context of this system, development of an               eliminating the results of risks occuring in the process of realizing major
approach to risk management inherent in all of the Company’s lines of                investment projects;
business is planned, which would ensure effective sharing of information          » increasing the Company’s investment attractiveness and providing
essential for efficient and strategic risk management among the Board of             reliable guarantees to investors through optimization of risk situations in
Directors, administrative bodies, and all functional subdivisions.                   the process of realization of major investment projects.

The creation of a comprehensive risk management system (CRMS) for all             In the context of the given business focus on risk management for major
Company business processes is being conducted on a step-by-step basis.            investment projects, the following results were achieved in 2007:
                                                                                  » a set of measures intended to minimize risks related to realization of
1. The beginning (base) stage of construction of the CRMS was marked by               major investment projects was developed. The Provision “Concerning
creation of a corporate mechanism of risk management via outsourcing                  the order for organizing measures for risk monitoring and management
(transmission of specific risks to insurance companies for a specific fee).           in the context of realization of investment projects of JSC “OGK-6”,
This made it possible to ensure optimal protection and stability of the               approved by the JSC “OGK-6” Board of Directors (protocol №55 dated
Company in the face of the external and internal risks accompanying the               12.04.2007), constitutes the document regulating the order of
Company’s primary activity. Company insurance protection throughout                   cooperation between the Company’s functional departments in the
2007 was provided in accordance with the “JSC “OGK-6” Insurance Protection            process of carrying out measures to minimize risks related to realization
Program”, approved by the JSC “OGK-6” Board of Directors (protocol № 29               of major investment projects;
dated 12.25.2006) for the following lines:                                        » a list of primary risk groups related to realization of major investment
» voluntary medical insurance                                                         projects has been developed;
» accident and illness insurance                                                  » practical recommendations for subdivisions for risk analysis in the
» Company property insurance;                                                         process of realization of major investment projects have been
» voluntary vehicle insurance;                                                        developed.
» state liability insurance for companies operating dangerous production
    facilities;                                                                   4. In the context of the Company’s nonfinancial (reputational, strategic,
» civil liability insurance for owners of hydrotechnical installations;           political) risks, an annual Company report process has been launched in the
» obligatory vehicle liability insurance;                                         field of social liability and corporate stability:
» liability insurance for Company directors and officials.                        » managers of the Company’s structural subdivisions have been polled;
                                                                                  » the stakeholder environment has been mapped out;
2. In the context of social risk management, a Nongovernmental Company            » a “Report on social liability and corporate stability of JSC “OGK-6” for 2006”
Staff Pension Program was implemented in the Company in 2007 and approved              has been prepared and verified (through public hearings) in accordance
by the JSC “OGK-6” Board of Directors (protocol №38 dated 04.25.2007). The             with international standards;
nongovernmental pension system makes it possible to increase the level of         » a series of normative and guidance documents regulating the order for
social protection and motivation of JSC “OGK-6” workers, as well as improve the        organizing and holding public hearings has been developed.
mechanism for attracting and retaining highly qualified personnel.
                                                                                  Subsequently, JSC “OGK-6” plans to continue preparing regular reports in the
3. In developing the formulation of the comprehensive risk management             area of social liability and corporate stability, introducing better models of
system, it was decided to develop a system that would provide a single            international practice in the area of social liability and corporate stability, and
comprehensive approach to Company risk management in the process of               improving the reporting structure and making it more meaningful and
implementing major investment projects.                                           constructive for the Company’s stakeholder environment.
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                                                                                                                                                                  18 | 19


At present, the Company believes the following risks to be important                   Prices formed on the free electric power market may prove insufficient
for it:                                                                                to cover the Company’s production expenses.

RISKS RELATED TO COMPANY ACTIVITIES AND INDUSTRY RISKS                                 Current normative documents provide for the gradual liberalization of the
                                                                                       wholesale electric power market and the semiannual reduction of volumes
Reform of the Russian wholesale electrical power market is associated with a           of electric power produced, realized at the regulated rates. In the event of
series of risks that may have a significant unfavorable impact on the                  continuing liberalization of the electric power market, the price level on the
Company’s earnings and activities and the results thereof.                             free electric power market will have a direct impact on the Company’s
                                                                                       earnings and profitability. The future level of electric power prices is difficult
Since the official beginning of reforms in July of 2001, the timelines for             to predict, and there is no guarantee that further liberalization of the market
completing the reform stages and the context of these stages have changed              will lead to an increase in the specified price level and ensure sufficient
several times, and there is no guarantee that the existing plan of the Russian         coverage of the Company’s production costs. It is likewise difficult to predict
government for the complete liberalization of the electrical power market by           whether or not the Company will be able to compete successfully on the
2011 will be realized. Moreover, there are no reliable indications of when the         free electric power market.
reforms will be completed, or whether or not they will be completed at all.
                                                                                       Demand for electric power and heat in Russia may not grow as rapidly
Liberalization of prices for electricity and electrical output on the                  as was assumed in the forecasts on which the Company currently
electrical power market may be suspended or reversed.                                  relies. This may result in a lower utilization factor of the Company’s
                                                                                       existing and recently commissioned capacities.
One of the primary objectives of reforming the Russian electrical power
market is the gradual liberalization of prices for electric power. The                 The Company’s investment program as a while is compiled on the basis of
Government of the Russian Federation has stated that liberalization of prices          specific forecasts of the growth of electric power and heat consumption in
for electric power will be completed by 2011. The principles of gradual                Russia, including forecasts of JSC RAO UES of Russia and Minpromenergo. If
liberalization of the market were originally established in Order №529 of the          the actual increase in electric power and heat consumption proves lower
RF Government, “Concerning improvement of the order of functioning of                  than predicted, electric power surpluses may form on the Russian market. If
the wholesale electric power/output market”, dated August 31, 2006, which              this occurs, it is entirely possible that the less effective generation units with
introduced new rules for the functioning of the wholesale electric power               the greatest service life will have to be operated with a lesser load.
market, and which were further refined in Order №205 of the Government of
the Russian Federation dated April 07, 2007.                                           The Company’s activities depend largely on JSC Gazprom, its primary
                                                                                       gas supplier, and the Company will face a significant price increase for
If liberalization of prices is not implemented in the form presently provided          the gas it purchases.
for, this may have a significant unfavorable influence on the Company’s
financial situation and activities and results thereof.                                Natural gas is the primary form of fuel for Company subsidiaries Kirishkaya
                                                                                       GRES and GRES-24, as well as for two (1,600 MW installed capacity)
Under rate regulation of the thermoelectric power industry, the                        generation units at Ryazanskaya GRES. In 2007, gas comprised 55.16% of the
change in rates could be such that their amount would prove                            Company’s fuel balance.
insufficient to cover the Company’s production costs.
                                                                                       The gas supply market in Russia is significantly monopolized, since the
Sales of electric power and heat in Russia continue to remain a subject of             overwhelming majority of gas supplies, reserves, production, and
state regulation. The company assumes that at present and over the next                transportation is controlled by JSC Gazprom.
few years, it will be obliged to sell a large part of the electric power it plans to
generate in the context of regulated contracts at established rates. Rates are         Gazprom supplies gas to the Company in the context of pre-agreed “limit”
reviewed annually either by the Federal Tariff Service (FTS), in the case of           quotas established for JSC RAO UES of Russia and its subsidiaries, including
electric power rates, or by the regional tariff committee in the case of heat          the Company, at the regulated prices/rates established by the FTS.
rates, on the basis of the estimated production costs of the producing                 Under gas supply contracts of independent producers at market prices, and
company for the following year. Most of the heat plants in Russia use gas as           starting in the 2nd half of 2007, if there was a shortage of “limit” quota
the primary fuel, and since gas purchases are the primary component of                 volumes, additional volumes of gas were delivered under limited gas
operational costs of such power plants, rates in Russia are at a low level due         contracts at prices in accordance with Order No. 333 of the RF government
to regulation of domestic gas prices, which at present are significantly lower         dated May 28, 2007.
than export prices. The FTS does not always approve a rate increase in
accordance with an increase in the Company’s expenses, and as a result, the            In addition, the rates established by the FTS for gas supplied by JSC Gazprom
amount of some rates is insufficient to cover all costs of electric power              in Russia for pre-agreed “limit” quotas are likewise expected to be liberalized
generation. In practice, decisions regarding rates are significantly influenced        to ensure the same level of profitability for JSC Gazprom from gas sales on
by social and political factors, which leads to significant delays in their            the domestic market as for export gas sales by 2011. In accordance with the
establishment and to rates being increased by an amount lower than that                schedule for liberalization of gas prices, a price increase of 15% is expected in
necessary to compensate for the Company’s increasing expenses.                         January 2007, 25% in January 2008, 13% in January and July 2009 and 2010,
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


after which in January 2011, the price of gas should finally reach the level of   New Wholesale Market Rules. Consumers under such Regulated contracts
export gas prices (minus customs and export duties). There is no guarantee        are distributed among specific producers by the Trade System Administrator
that liberalization of the electric power market provided for by Order №205       based on a range of factors, including the forecast of electric power
of the RF government will occur concurrently with liberalization of gas           production and consumption established by the FTS. If the consumer is
prices, which may have a significant unfavorable impact on the Company’s          unable to pay for the supplied electric power or delays payment, the
earnings and activities and results thereof.                                      Company may find itself unable to unilaterally dissolve the Regulated
                                                                                  contract or suspend electric power supply for political, legal, or social
Due to restructuring of JSC RAO UES of Russia, JSC Gazprom and its                reasons. Delays in payment and nonpayment of electric power and heat
affiliated companies may become the the Company’s principal                       supply may have a significant unfavorable impact on the Company’s
shareholder. The interests of JSC Gazprom, which is likewise a                    financial situation and the results of its activities.
shareholder of competitive generating companies, may conflict with
the interests of holders of Ordinary shares and the GDR.                          The Company may find itself unable to fulfill its obligations under the
                                                                                  Regulated contracts.
At present, it is expected that in June–July of 2008, JSC RAO UES of Russia
will cease to exist as a holding company, and its stake in its subsidiaries,      The quantity of electric power that the Company must supply under its
including the Company, will be distributed among the existing shareholders        Regulated contracts is calculated based on its anticipated annual earnings. If
of JSC RAO UES of Russia. In the context of reorganization, JSC RAO UES of        for any reason (with the exception of acts of God) the Company is unable to
Russia agreed to exchange the shares that affiliated companies JSC                generate the amount of electric power required under Regulated contract, it
Gazprom, JSC Norilsk Nickel, JSC SUEK, and the Russian Federation, as major       will be obliged to purchase an additional quantity of electric power at the
current shareholders of JSC RAO UES of Russia will receive upon the               free “day-ahead” market price or on the balanced market. If the costs of the
liquidation of JSC RAO UES of Russia. This plan likewise provides, upon           purchase prove higher than the electric power generation cost for the
liquidation of JSC RAO UES of Russia, for receipt by affiliated companies of      Company or if it is unable to purchase the necessary volumes of electric
JSC Gazprom of a block of more than 60% of the Companys’ shares. As a             power on the wholesale market, this may have a significant unfavorable
result, JSC Gazprom will obtain considerable ability to influence the             impact on the Company’s financial situation and activities and results
Company’s activities, and its interests as a Company shareholder may              thereof.
conflict with its interests as a supplier of gas to five Company subsidiaries.
Under such circumstances, the ability of the Company to realize its               The Company may encounter stiff competition from other WGCs, TGCs,
commercial strategy and objectives may be limited, which as a result may          and other electric power producers permitted on the wholesale market.
have a significant unfavorable impact on the Company’s financial situation
and results of its activities.                                                    One objective of electric power reform in Russia is the creation of
                                                                                  competition in the electric power generation and supply sector. The
Several Company power plants depend on coal suppliers, and the                    Company competes with other OGCs, TGCs, and other electric power
Company may encounter a price increase on coal purchased by the                   producers permitted on the wholesale market, including the more
Company.                                                                          economically efficient JSC HydroOGK and the Federal State Unitary
                                                                                  Enterprise Russian State Concern for Electric Power and Heat Generation at
Krasnoyarskaya GRES-2, Novocherkasskaya GRES, and Cherepovetskaya                 Atomic Plants (Rosenergoatom). Intensification of competition is anticipated
GRES, as well as four generation units at Ryazanskaya GRES (installed capacity    with the subsequent liberalization of the wholesale power market. If the
1,050 MW), use coal as the primary fuel.                                          Company finds itself unable to effectively cope with the growing level of
                                                                                  competition in future, this may have a significant unfavorable impact on the
There is no guarantee that coal prices will not increase significantly due to     Company’s financial situation and activities and results thereof.
increased demand for coal as a result of liberalization of gas prices. In the
end, the Company may incur additional expenses related to purchasing coal         The Company’s facilities and equipment are becoming physically
at a higher price or purchasing other types of fuel.                              obsolete, resulting in increased probability of mechanical accidents
                                                                                  and emergencies, and it may become necessary to modernize them.
Any interruptions, suspension, or cessation of coal supply to Company
power plants operating on coal, and an increase in coal prices as a whole,        Many of the Company’s active generation units were commissioned in the
may have a significant unfavorable impact on the Company’s financial              1960s and 1970s and require maintenance to extend their service life. The
situation and activities and results therof.                                      given generating capacities are particularly prone to mechanical accidents
                                                                                  and unforeseen situations, which may lead to a disruption of the Company’s
Consumers may delay or fail to make payments to the Company for                   activities, as well as additional expenses for planned and unplanned repairs
electric power and heat supplied.                                                 of generating equipment. If the Company is unable to modernize its plants,
                                                                                  it may find itself unable to maintain its productivity, which may have a
The Company sells or can sell a large part of the electric power on the           significant unfavorable impact on the Company’s financial situation and
wholesale market according to regulated contracts in accordance with the          activities and results thereof.
|   INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY
                                                                                                                                                              20 | 21


The Company may find itself unable to obtain the necessary additional                Developing markets such as Russia are subject to greater risks than
funds.                                                                               more developed markets, including significant legal, economic, and
                                                                                     political risks.
The Company will require additional capital investments to update and
modernize existing capacities, as well as for construction of new ones. The          Investors in developing markets such as Russia should take into account the
Company’s current investment program provides for allocation of                      fact that these are subject to greater risks than more developed markets,
approximately 57,191 million rubles for construction of new generation units         including in some instances significant legal, economic, and political risks.
in 2008–2011.                                                                        Additionally, financial disturbances in one country with a developing market
                                                                                     have a tendency to unfavorably impact the stock market quotations of all
If there is no access to capital in the future, the Company may decide to            countries with a developing market, since investors transfer their funds to
reject construction of new plants. Although this decision will not affect the        more stable, developed markets.
results of the Company’s activities from operating capacities either current or
under construction, such a decision will impact growth in the future and will        In the Russian Federation, administrative and economic reforms are currently
have a significant unfavorable impact on the Company’s financial situation           being carried out with a view to improving the national economic situation,
and activities and results thereof.                                                  which in turn will lead to improvement of the social environment and
                                                                                     political stability.
The Company may find itself unable to commission new generating
capacities provided for by its investment program, or it may not                     No negative changes in the situation in Russia that could negatively
receive the expected return from funds invested in the creation of new               influence the economic situation and activity of the Company are foreseen
generating capacities.                                                               in the near future. However, the possibility of destabilization of the national
                                                                                     economic situation due to a crisis in the world financial markets or a sharp
By the end of 2011, the Company plans to commission four new generation              drop in oil prices should not be ruled out.
units with an aggregate electrical capacity of 1,270 MW. In view of the
relatively limited number of companies able to carry out this type of                FINANCIAL RISKS
construction, there is no guarantee that the Company will be able to employ
contractors for the given projects in the planned time periods and within the        Risk of change in the currency exchange rate
planned budget. Thus, the Company may find itself unable to carry out its            The Company’s financial condition, its liquidity, sources of financing, and
investment program on time or within budget, or to complete it at all.               performance, do not depend significantly on fluctuations in the currency
Delays in realizing the Company’s investment program, errors in analyzing            exchange rate, since the Company plans its activities such that its assets and
the expediency and costs of the investment program, increased expenses               liabilities are expressed in the national currency. At the same time, certain
related to the investment program, and errors at the construction stage may          transactions related to obtaining equipment may be expressed in foreign
have a significant unfavorable impact on the Company’s financial situation           currency. In the event of the negative influence of a change in the currency
and activities and results thereof.                                                  exchange rate, the Company plans to conduct a risk analysis and make
                                                                                     corresponding decisions in each specific case.
The Company’s activities, earnings, and expenses may be affected by factors
beyond the Company’s control, such as accidents and natural disasters.               Risk of change in interest rates
The Company’s activities depend on the operation of its generating                   The electric power industry belongs to the capital-intensive fields of
capacities, at which accidents may occur, including through the fault of             industrial production. Strengthening of the Company’s market position will
service personnel, and emergency situations may arise. They may happen to            require significant additional investment expenditures. In the context of the
be in a natural disaster zone, i.e., under the influence of factors beyond the       planned financial and economic policy, the Company plans to raise
Company’s control. Accidents and emergencies may lead to breaks in the               borrowed funds and liquidate its obligations in a timely fashion. In this
Company’s activities and, as a result, significant losses for the Company.           regard the Company is subject to the risk of a change in interest rates on
Additionally, the Company may incur significant expenses for restoring               interest-bearing debts. An increase in market interest rates may result in the
generating capacities damaged by accident, emergency situation, or natural           Company being obliged to obtain more expensive funds to finance its
disaster, which in turn may have a significant unfavorable impact on the             investment program and current activities. Additionally, as interest rates rise,
Company’s earnings and activities and results thereof.                               interest payments on loans from commercial banks increase and,
                                                                                     correspondingly, the Company’s net profit decreases.
COUNTRY AND REGIONAL RISKS                                                           In order to prevent the negative influence of changes in interest rates, the
                                                                                     Company proposes to obtain long-term credits and loans to avoid the
Country risks of the Company include political, economical, and social risks         negative influence of short-term interest rate fluctuations, and to lower the
intrinsic to the Russian Federation. These risks are beyond the Company’s control.   share of credits and loans in the total amount of liabilities.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


Risk of inflation                                                                  2. Plaintiff/appellant: JSC “OGK-6”
Inflation may have a significant unfavorable influence on the Company’s
productivity. The Company’s production is concentrated in Russia, and the          Defendant: FTS RF Interdistrict Inspectorate for major taxpayers of Rostov
majority of direct expenses occur in Russia and in rubles. Since the               Region
beginning of 1990, a high rate of inflation has been observed in Russia.           Subject of dispute: Invalidation of the 01.23.2007 decision of the IIFTS with
Inflation increased sharply after the 1998 financial crisis, reaching a level of   regard to additional taxation of income for 2006 in the amount of 76,858,375 rub.
84.4% that year (according to measurements of the consumer price index).
Despite the recent reduction of inflation rates, which were 11.7% in 2004,         The risk of a verdict unfavorable for the issuer is average
10.9% in 2005, 9.0% in 2006, and 11.9% in 2007, an increase in expenses
caused by inflation may be observed in Russian companies as a whole,               3. Plaintiff/appellant: JSC “OGK-6”
which is related to the general level of prices in Russia, such as expenses for
feedstock and materials, as well as for labor costs. If these trends continue      Defendant: FTS RF Interdistrict Inspectorate for major taxpayers of Rostov
and electric power rates remain regulated, the Company may find itself             Region
unable to preserve or maintain the profit norm from its primary form of
activity at the optimal level.                                                     Subject of dispute: Invalidation of the 12.11.2006 decision № 07/44 of the
                                                                                   IIFTS with regard to additional taxation of income for 2004-2005 in the
Legislative risks                                                                  amount of 113,209,959 rub.
Due to possible changes in current tax legislation, such as amendments to
legislative tax and fee acts related to increased tax rates and introduction of    The risk of a verdict unfavorable for the issuer is average
new taxes, there is a probability that the Company’s expenses for payment of
taxes and obligatory payments will increase. These changes will certainly          4. Plaintiff/appellant: JSC “OGK-6”
influence the profit level.
                                                                                   Defendant: FTS Interdistrict Inspectorate of Russia № 7 for Ryazan Region
To reduce the possible influence of this risk, the Company proposes to carry
out tax and financial planning. In the event of amendments to the current          Subject of dispute: Unlawfulness of the inaction of the IIFTS, expressed in
order and conditions of taxation, the Company intends to plan its financial        non-return of income taxes for 2003-2006 in the amount of 134,081,697 rub.
and economic activity with these changes taken into account.                       and of VAT for 2006 in the amount of 20,116,937 rub.

A change in the tax legislation with regard to regulation of securities may        The risk of a verdict unfavorable for the issuer is average
likewise have a significant influence on the Company’s activities.
                                                                                   5. Plaintiff/appellant: JSC “OGK-6”
JUDICIAL RISKS
As of 12.31.2007, the Company had one claim laid against it exceeding 10           Defendant: FTS Interdistrict Inspectorate of Russia № 7 for Ryazan Region
million rubles, amounting to 36,016,734 rubles. The claim was laid in
accordance with allegation № 7 of the FTS of Russia Interdistrict Inspectorate     Subject of dispute: Unlawfulness of the inaction of the IIFTS, expressed in
for Ryazan Region against JSC “OGK-6” for collection of tax sanctions. The risk    non-return of 101,076,500 rub. from the budget.
of a verdict unfavorable for the issuer is average
                                                                                   The risk of a verdict unfavorable for the issuer is average.
Additionally, the Company is currently involved as a plaintiff/appellant in the
following legal proceedings:                                                       6. Plaintiff/appellant: JSC “OGK-6”

1. Plaintiff/appellant: JSC “OGK-6”                                                Defendant: FTS RF Interdistrict Inspectorate for major taxpayers of Rostov
                                                                                   Region
Defendant: FTS RF Interdistrict Inspectorate for major taxpayers of Rostov
Region                                                                             Subject of dispute: Invalidation of the 11.12.2006 decision of the IIFTS with
                                                                                   regard to additional taxation of income in the amount of 27,626,780 rub.,
Subject of dispute: Unlawfulness of the inaction of the IIFTS, expressed in        additional taxation of income from foreign legal entities in the amount of
non-return of income taxes for 2003 in the amount of 145,344,450 rub. and          969,486 rub., additional VAT taxation of 9,789,176 rub., requirement of
of VAT for 2006 in the amount of 26,604,952 rub.                                   additional payment for use of water bodies in the amount of 881,706 rub., a
                                                                                   water tax in the amount of 857,610 rub., additional taxation of income of
The risk of a verdict unfavorable for the issuer is average                        private individuals in the amount of 954,749 rub., charging JSC “OGK-6” with
                                                                                   tax liability in the amount of 9,369,957 rub., and imposition of fines on the
                                                                                   amounts of the additional and contested taxes

                                                                                   The risk of a verdict unfavorable for the issuer is average.
                                                                               |   INFORMATION ON THE COMPANY AND ITS POSITION IN THE INDUSTRY
                                                                                                                                                     22 | 23


7. Plaintiff/appellant: JSC “OGK-6”                                            10. Plaintiff/appellant: JSC “OGK-6”

Defendant: JSC Sibvolokno                                                      Defendant: Kirishky District IFTS, Leningrad Region

Subject of dispute: Ruling of insolvency/bankruptcy. Amount of claims:         Subject of dispute: Invalidation of the decision of IFTS to hold JSC “OGK-6”
481,330,322 rub.                                                               liable for a tax offence committed 02.14.2007 №02-09/590, in the amount of
                                                                               114,178,037 rub.
The risk of a verdict unfavorable for the issuer is low
                                                                               The risk of a verdict unfavorable for the issuer is low
8. Plaintiff/appellant: JSC “OGK-6”
                                                                               11. Plaintiff/appellant: JSC “OGK-6”
Defendant: Donskoi Moscow Criminal Intelligence
                                                                               Defendant: FTS Interregional Inspectorate of Russia № 7 for Ryazan Region
Subject of dispute: Ruling of insolvency/bankruptcy. Amount of claims:         Subject of dispute: Invalidation of the 02.15.2006 №12-43/9dsp decision to
65,572,848 rub.                                                                collect income tax in the amount of 231,480,156 rub., penalties of 26,674,212
                                                                               rub., and penal sanctions in the amount of 36,016,485 rub.
The risk of a verdict unfavorable for the issuer is low
                                                                               The risk of a verdict unfavorable for the issuer is low
9. Plaintiff/appellant: JSC “OGK-6”
                                                                               There may be other risks in the Company’s activities of which the Company
Defendant: Kirishky District IFTS, Leningrad Region                            is not aware or which are not currently significant for it, but which may
                                                                               potentially have a negative influence on the Company’s economic activities.
Subject of dispute: Invalidation of acts of the tax agency concerning
renunciation of holding JSC “OGK-6” liable for tax offences dated 14.12.2006
№ 13-158, № 13-159, № 13-160, № 13-161, № 13-162, № 13-163, № 13-164,
№ 13-165, № 13-166, № 13-167, and 18.01.2007 № 13-06, charging income
tax for 2003, 2004, 2005, and the first half-year of 2006 in the amount of
138,480,433 rub., reduced VAT for January, February, March, April, May, and
August of 2006 in the amount of 25,556,581 rub., and reduced income tax
losses for the first 9 months of 2006 in the amount of 120,996,385 rub.

The risk of a verdict unfavorable for the issuer is low
Power
AGGREGATE LAUNCHING CAPACITY OF CARRIER ROCKET ENERGIA
IS 2,000 MW. THIS FIGURE IS COMPARABLE TO THE INSTALLED CAPACITY OF
NOVOCHERKASSK GRES POWER PLANT OF 2112 MW.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                              24 | 25




                                        2        PRODUCTION
                                                 ACTIVITIES
    ANNUAL REPORT           2007       JSC “OGK-6”
|                       |          |



2. PRODUCTION




I. ELECTRIC POWER                                    generation in 2007. The greatest        According to the scenario of          SHARE OF OGK-6 IN RUSSIAN ELECTRIC
GENERATION                                           increase in electric power              development of the electric           POWER GENERATION FOR 2007
                                                     generation in 2007 was noted for        power industry and the JSC RAO
In recent years, the growth rate of                  Krasnoyarskaya GRES-2 (915.5            UES of Russia holding, in 2007–                                    3.35%
electric power generate by JSC                       kWh, 24.24%), due to increased          2011 the average yearly increase
“OGK-6” has exceeded the growth                      plant load by order of the system       in electric power consumption in
rate for electric power generation                   operator owing to a water               Russia will be 4.9% in the baseline
in Russia. The share of JSC “OGK-6”                  shortage for the HPP in the             case. The low load of OGK-6
on the Russian electric power                        region of the plant. The increase       plants in comparison with other
market is increasing year by year.                   in electric power generation in         WGCs make it possible to expect
In 2005 and 2006 it was 2.94%                        2007 in comparison with 2006            that growth rates of electric
and 3.30%, respectively. The share                   was: 5.62% for Ryazanskaya GRES,        power generation for OGK-6 will
of “OGK-6” on the Russian electric                   4.78% for Cherepovetskaya GRES,         overtake growth rates of electric
power market in 2007 was 3.35%.                      4.40% for GRES-24, and 2.89% for        power generation for Russia as a
                                                     Novocherkasskaya GRES.                  whole in the near future.
Electric power generation by
OGK-6 plants was 34,065 billion                      The 9.32% reduction in electric
kWh in 2007, which is 1,161                          power generation for Kirishkaya
billion kWh (3.53%) more than                        GRES in comparison with 2006
in 2006.                                             was due to a reduction in
                                                     economically inefficient electric
All OGK-6 power plants, with the                     power generation using fuel oil,                                                     — OGK-6
exception of Kirishkaya GRES, saw                    which took place under the cold
an increase in electric power                        winter conditions of 2005–2006.
                                                                                                                                          — Russia as a whole


    ELECTRIC POWER GENERATION                                          2005          2006           2007
                                                                                                 million kWh


    OGK-6                                                             28,006        32,904         34,065
    Russia as a whole                                                953,000       996,078      1,016,000

    Share of OGK-6 in Russian electric power generation               2.94%         3.30%          3.35%
                                             |   PRODUCTION ACTIVITIES
                                                                                                                    26 | 27


SHARE OF OGK-6 IN ELECTRIC POWER                                             3.4
GENERATION FOR RUSSIA AS A WHOLE, %




                                                                                   2.94          3.30        3.35

                                                                             2.0

                                                                                   2005          2006        2007




DYNAMICS OF ELECTRIC POWER GENERATION
IN 2005–2007, MILLION KWH


9500




   0

                            RGRES         NchGRES                        KiGRES     KGRES-2      ChGRES   GRES-24


                            — 2005      — 2006                 — 2007



ELECTRIC POWER GENERATION                         2005                                2006                          2007
                                             million kWh                           million kWh                 million kWh


TOTAL FOR OGK-6                              28,006.4                              32,904.4                   34,065.0

Ryazanskaya GRES                                 6,537.1                            7,695.9                     8,128.2
Novocherkasskaya GRES                            7,691.8                            9,116.4                     9,380.3
Kirishkaya GRES                                  6,028.0                            7,327.8                     6,644.8
Krasnoyarskaya GRES-2                            3,604.8                            3,776.0                     4,691.5
Cherepovetskaya GRES                             2,642.2                            3,241.4                     3,396.4
GRES-24                                          1,502.5                            1,746.9                     1,823.7
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


CAPACITY FACTOR                                  For reference: the capacity factor                     VЭ                          In 2007, the capacity factor for
                                                 (CF) is equal to the ratio of actual     CF =                    . 100%            OGK-6 as a whole was 42.96%,
                                                                                                      N ust . t
                                                 electric power generation for a                                                    which is 1.46% more than in 2006.
                                                 given period to the possible             where:
                                                 electric power generation for the        VЭ is the volume of electric power
                                                 same period under conditions of          generated for the period, in kWh;
                                                 operating at full capacity without
                                                 shutdowns. The CF indicates the          Nust is installed capacity, in kW;
                                                 level of capacity utilization for
                                                 electric power generation.               t is the number of calendar hours
                                                                                          in a period, in hours.



CF DYNAMICS FOR 2005–2007, %

                                                                      2005                    2006                         2007
                                                                         %                        %                             %


TOTAL FOR OGK-6                                                       35.32                  41.50                         42.96

Ryazanskaya GRES                                                      28.16                   33.15                        35.01
Novocherkasskaya GRES                                                 41.57                   49.28                        50.70
Kirishkaya GRES                                                       32.77                   39.83                        36.12
Krasnoyarskaya GRES-2                                                 32.92                   34.48                        42.84
Cherepovetskaya GRES                                                  47.88                   58.73                        61.54
GRES-24                                                               55.33                   64.33                        67.16




CF DYNAMICS
FOR 2005–2007, %



    70




     0

                                        RGRES               NchGRES                      KiGRES                       KGRES-2                 ChGRES                    GRES-24


                                       — 2005             — 2006                — 2007
                                                      |   PRODUCTION ACTIVITIES
                                                                                                                                                                   28 | 29


              AVERAGE OPERATING                           FACILITY                                      2005                           2006                            2007
              CAPACITY OF JSC “OGK-6”                                                                     MW                            MW                              MW
              PLANTS
              This table presents the average             RGRES                                       2,218.2                        2,100.8                       2,280.4
              plant operating capacity for 2005–          NchGRES                                     1,528.4                        1,772.4                       1,673.9
              2007 (in MW).                               KiGRES                                      1,564.7                        1,524.6                       1,709.0
              The term “operating capacity”               KGRES-2                                       969.6                          931.6                       1,020.1
              refers to installed power plant             ChGRES                                        443.9                          472.9                         437.0
              capacity, less limitations on its           GRES-24                                       292.8                          285.1                         286.7
              capacity and the capacity of
              equipment withdrawn for repairs.            OGK-6                                       7,017.6                        7,087.4                      7,407.1




              II. HEAT GENERATION                     Overall heat generation for “OGK-         A significant share in the heat        The remaining power plants
                                                      6” in 2007 was 4.32 million Gcal,         generation of OGK-6 is accounted       produce an insignificant amount
                                                      which is 191.2 thousand Gcal or           for by Kirishkaya GRES (61.6%) and     of heat, necessary only for the
                                                      4.2% lower than in 2006.                  Krasnoyarskaya GRES-2 (27.3%).         private needs of the GRESs and
                                                                                                                                       the nearby settlements.




DYNAMICS OF HEAT GENERATION
                                                                                                                                                                2800
BY OGK-6 PLANTS IN 2005–2007,
IN THOUSAND GCAL




                                 261   251      271            117     118     96     2,691 2,734 2,664         1,342 1,285 1,178          128   125      114



                                                                                                                                                                   0

                                       RGRES                         NchGRES                 KiGRES                  KGRES-2                     ChGRES


                                       — 2005                     — 2006            — 2007
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


                                                      2005                              2006                                      2007       DYNAMICS OF HEAT GENERATION
                                                 thousand Gcal                     thousand Gcal                             thousand Gcal   BY OGK-6 PLANTS IN 2005–2007,
                                                                                                                                             IN THOUSAND GCAL
TOTAL FOR OGK-6                                    4,538.4                           4,513.1                                   4,321.9

Ryazanskaya GRES                                     260.5                             250.8                                     270.8
Novocherkasskaya GRES                                117.3                             117.6                                      95.7
Kirishkaya GRES                                    2,690.7                           2,734.5                                   2,663.6
Krasnoyarskaya GRES-2                              1,341.9                           1,285.2                                   1 177.8
Cherepovetskaya GRES                                 127.9                             125.1                                     114.1



3. SPECIFIC OIL                                    Q P is the heating value, as per
                                                     H
                                                                                                   Overall, for OGK-6 the specific oil
EQUIVALENT                                         chemical laboratory data, of solid              equivalent consumption for
CONSUMPTION                                        and liquid or gaseous fuel, in kcal/            supplying electric power in 2007
(SRFC) FOR SUPPLY                                  kg (MJ/kg) and kcal/m3 (MJ/m3),                 decreased by 1.9 g/kWh in
OF ELECTRIC POWER                                  respectively;                                   comparison with 2006, and by 2.1
AND HEAT                                                               QP                          g/kWh in 2005, primarily due to
                                                                        H
                                                                 Э=                                increased electric power
                                                                      7000
For reference: The use of various                                                                  production.
fuel types (solid, liquid, and                     Э is the caloric equivalent.
gaseous) makes a generalized                                                                       The specific fuel consumption for
quantitative calculation of their                  Average caloric values are 7900                 heat supply in 2005–2007
consumption for power
                                                   kcal/m3 for gas and 9800 kcal/kg                decreased by 1.8 kg/Gcal in 2007
generation impossible without a
special procedure for converting                   for fuel oil. For coal, the caloric             in comparison with 2006, and by
various units of measurement                       value varies from (according to                 3.7 kg/Gcal in comparison with
(tons, m3) to an equatable form.                   concluded contracts) 2200 kcal/                 2005, due to plant heating takeoff
                                                   kg to 6300 kcal/kg depending on                 loads.
For this purpose, physical fuel is                 the type of coal.
converted into oil equivalent in
technical records.                                 Data on fuel consumption in
                                                   reference measurement are used
A oil equivalent unit is an
                                                   in planning and analysis of
accounting unit of organic fuel
used to compare the efficiency of                  specific fuel consumption per
various forms of fuel and their                    unit of energy, as well as for
total amounts. The accepted oil                    calculating production costs of
equivalent unit is 1 kg of fuel with               electric power and heat.
a heating value of 7,000 kcal/kg
(29.31 MJ/kg). The relationship                    Use of oil equivalent is
between units of reference and                     particularly convenient for
physical fuel is expressed by the                  comparing the efficiency of
formula:
                                                   various heat installations. The size
              QP
               H
                                                   of the SRFC is likewise influenced
      BY =              BH = Э . BY                by GRES operating modes.
             7000
                                                   Using oil equivalent, the fuel
where:
                                                   balance or the overall industry
BY is the amount of oil equivalent
                                                   power balance may be
in kg ;
                                                   constructed.
BH is the amount of physical solid
and liquid (kg) and gaseous (m3);
                                                |   PRODUCTION ACTIVITIES
                                                                                                                                                                30 | 31


SPECIFIC OIL EQUIVALENT CONSUMPTION                                                     2005                             2006                                     2007
FOR ELECTRIC POWER SUPPLY IN 2005–                                                     goe/kWh                          goe/kWh                                  goe/kWh

2007, GOE/KWH
                                                    TOTAL FOR “OGK-6”                   362.8                            362.5                                    360.6

                                                    Ryazanskaya GRES                    349.7                            349.8                                    347.1
                                                    Novocherkasskaya GRES               374.7                            373.2                                    370.8
                                                    Kirishskaya GRES                    348.5                            350.1                                    345.0
                                                    Krasnoyarskaya GRES-2               400.3                            393.5                                    389.3
                                                    Cherepovetskaya GRES                377.3                            379.1                                    378.7
                                                    GRES-24                             325.8                            322.8                                    323.3




SPECIFIC OIL EQUIVALENT CONSUMPTION                                                     2005                             2006                                     2007
FOR HEAT PRODUCTION IN 2005–2007,                                                      kgoe/Gcal                        kgoe/Gcal                                kgoe/Gcal
KGOE/GCAL
                                                    TOTAL FOR “OGK-6”                   154.7                            152.8                                    151.0

                                                    Ryazanskaya GRES                    180.1                            183.2                                    181.4
                                                    Novocherkasskaya GRES               198.9                            197.0                                    194.8
                                                    Kirishskaya GRES                    143.6                            144.5                                    142.0
                                                    Krasnoyarskaya GRES-2               164.9                            157.3                                    157.4
                                                    Cherepovetskaya GRES                183.9                            186.9                                    185.6




                                                4. FUEL MIX                           million tons more than in 2006 (a             absence of limitations on gas
                                                                                      2.8% increase) and 1.88 million               supply, fuel oil consumption
                                                The following fuel mix formed for     tons more than in 2005 (a 26.6%               decreased significantly in 2007.
                                                OGK-6 in 2007: coal — 44.0%;          increase). Gas consumption in                 Fuel oil consumption in 2007 was
                                                gas — 55.2%; fuel oil — 0.8%.         2007 increased by 0.63 billion m3             69.9 thousand tons, or nearly two
                                                                                      (an increase of 12%) to 5.89 billion          times less than in 2005 and nearly
                                                Overall, for OGK-6 in 2007 coal       m3. As a result of reduced electric           seven times less than in 2006.
                                                consumption was 8.97 million          power generation at Kirishskaya
                                                tons of physical fuel, or 0.25        GRES due to a mild winter and the



FUEL CONSUMPTION IN PHYSICAL UNITS

                                         GAS, million m3 |                                   COAL, thousand tons |                              FUEL OIL, thousand tons

                      2005            2006             2007                   2005        2006               2007                    2005           2006          2007

TOTAL FOR OGK-6     5,272.6      5,256.7            5,890.3                 7,083.9    8,723.2             8,968.7                  129.7           473.6          69.9

RGRES               1,368.8       1,394.8            1,628.6                1,528.9    1,904.3             1,893.5                     6.4           79.9           1.6
NchGRES             1,014.6         981.2            1,156.5                2,198.5    2,788.1             2,614.5                     3.2           13.8           0.0
KiGRES              1,895.9       2,002.5            2,141.4                     –          –                    –                   116.8          373.3          65.3
KGRES-2                  –             –                  –                 2,858.2    2,929.1             3,451.5                     3.1            2.5           1.9
ChGRES                581.4         405.8              470.3                  451.8    1,101.7             1, 009.1                    0.3            4.2           1.1
GRES-24               412.0         472.4              493.5                     –          –                    –                      –              –             –
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


GAS CONSUMPTION (BY TYPE OF FUEL GAS) IN 2006–2007, MILLION M3
                                                                                         2006 (million m3) |                                                                                       2007 ( million m3)
                                           LIMITED GAS       ABOVE-LIMIT GAS    COMMERCIAL GAS     GAS, TOTAL                LIMITED GAS   ABOVE-LIMIT GAS      COMMERCIAL GAS            ADDITIONAL GAS    GAS, TOTAL


    TOTAL FOR OGK-6                          3,625.1                  305.3           1,326.3       5,256.7                    3,650.3             414.3                1,065.1                  760.5       5,890.3

    RGRES                                     1,394.8                   0.0               0.0        1,394.8                    1,420.2              80.3                  21.7                   106.3       1,628.6
    NchGRES                                     898.6                  82.6               0.0          981.2                      925.4              63.0                 168.1                     0.0       1,156.5
    KiGRES                                      599.7                 183.4           1,219.4        2,002.5                      539.6             173.5                 792.8                   635.5       2,141.4
    ChGRES                                      405.8                   0.0               0.0          405.8                      436.4              33.9                   0.0                     0.0         470.3
    GRES-24                                     326.2                  39.3             106.9          472.4                      328.7              63.6                  82.5                    18.7         493.5




The volume of limited gas used by                        of coal in 2007 in comparison with          can operate on coal and up to
subsidiaries of JSC “OGK-6”                              2006 for OGK-6 as a whole was               62.9% (5,696 MW) of the installed
increased by 7% in 2007 in                               0.09%. The share of gas in 2007             capacity can operate on gas. This                       STRUCTURE OF GAS CONSUMPTION
comparison with 2006. For the                            increased by 4.62% in comparison            enables the Company to react to                         BY JSC “OGK-6” PLANTS
purpose of reducing the share of                         with 2006, primarily due to a               fuel price changes and shift from                       IN 2006–2007, %
highly priced fuel oil in the fuel                       reduction of the share of fuel oil          one type of fuel to another,
balance at JSC “OGK-6” subsidiaries                      from 5.51% in 2006 to 0.8% in 2007.         efficiently managing the fuel mix.
and due to agreements reached
with suppliers of natural gas, the                       Part of the Company’s strategy is                                                                            25.23%
volume (above-limit and                                  to optimize of the fuel balance of
commercial) of additional gas                            the plants and to minimize fuel
supplied in 2007 was increased by                        expenses. A total of 18.6% of the
37%.                                                     installed capacity of JSC “OGK-
                                                                                                                                                             5.81 %
                                                         6”can operate on both gas and
In 2007, the upward trend in the                         coal. Depending on the fuel price
share of coal in the fuel mix                            situation, up to 55.7% (5,042 MW)                                                                                             68.96 %
continued. The increase in the share                     of the installed capacity of OGK-6

                                                                                                                                                             2006

                                                                                                                                                                       12.91 %
FUEL MIX OF JSC “OGK-6” PLANTS                                                                                                                               18.08 %
IN 2005–2007, %


100                            1.76%                          5.51%                      0.8%                                                                 7.03 %
                                                                                                                — Fuel oil
                                                                                                                                                                                       61.97 %
                                                                                                                — Gas

                                                                                                                — Coal                                       2007
                               59.98%                        50.54%                   55.16%
                                                                                                                                                                    — Limited gas

                               39.26%                        43.95%                   44.04%                                                                        — Above-limit gas
                      2006                                                                                      2007
                                                                                                                                                                    — Commercial gas

                                                                                                                                                                    — Additional gas
    0
                      2005                        2006                         2007
|   PRODUCTION ACTIVITIES
                                                                                                                                                                                                                       32 | 33


FUEL MIX OF JSC “OGK-6” PLANTS                                                                                                                       — Coal                           — Gas                      — Fuel oil
IN 2005–2007, %

    70.1      60.7     67.5        42.8     35.0          40.4                93.0    81.4       96.4           0.3         0.2   0.1                  69.3           39.7      43.9             100           100           100




                                    0.2     0.6           0.0                                                                                          0.0             0.5       0.1


    0.3        4.0       0.1


                                                                              7.0     18.6        3.6


    29.6      35.3      32.4       57.0     64.4          59.6                                                  99.8       99.8   99.9                 30.3       59.9          56.0

2005         2006      2007        2005     2006          2007                2005    2006       2007           2005      2006  2007                   2005       2006          2007             2005          2006  2007
            RGRES                         NchGRES                                    KiGRES                             KGRES-2                                  ChGRES                                      GRES-24




FUEL MIX OF JSC “OGK-6”
AND JSC “OGK-6” PLANTS, %

                                                                   2005 |                                                               2006 |                                                                           2007
                      Coal         Gas        Fuel oil           Total fuel             Coal              Gas          Fuel oil       Total fuel               Coal                    Gas        Fuel oil            Total fuel

    OGK-6            39.26       58.98             1.76               100             43.95             50.54            5.51              100                44.04                  55.16          0.80                     100

    RGRES            29.59       70.07             0.34               100             35.27             60.71            4.01              100                32.38                  67.54          0.08                     100
    NchGRES          57.01       42.83             0.16               100             64.43             34.99            0.58              100                59.56                  40.44          0.00                     100
    KiGRES               –       92.96             7.04               100                 –             81.41           18.59              100                    –                  96.38          3.62                     100
    KGRES-2          99.75           –             0.25               100             99.78                 –            0.22              100                99.86                      –          0.14                     100
    ChGRES           30.34       69.29             0.04               100             59.85             39.66            0.49              100                55.99                  43.89          0.12                     100
    GRES-24              –         100                –               100                 –               100               –              100                    –                    100             –                     100

                                                                                                                                                                                                        4,010
                                                                                                                                         3,356                                                                       310
TECHNICAL GENERATING CAPACITY
OPERATING CAPABILITIES
USING VARIOUS FORMS OF FUEL, MW
                                                                                                                                                   1,250                                                             2,100

                                                                                                                                                                             1,686

                                                                                                                                                   1,056                               630

                                                                                                                                                   1,050                               1,050                         1,600



                                                                                                                                        Coal alone                       Coal or gas                   Gas alone


                               — RGRES                      — NchGRES                          — KiGRES                   — KGRES-2                          — ChGRES                          — GRES-24
34 | 35              |   ANNUAL REPORT
                                         |   2007
                                                    |   JSC “OGK-6”




          3   INVESTMENT
              ACTIVITIES
TGV
OGK-6 PLANS TO INCREASE THE CAPACITY OF ITS POWER PLANTS
BY 1270 MW BEFORE 2011. THIS CAPACITY IS ENOUGH TO PROVIDE
SIMULTANEOUS OPERATION OF 100 UP-TO-DATE TVG TRAINS WHICH
ACCELERATE TO 500 KM/H.
    ANNUAL REPORT        2007       JSC “OGK-6”
|                    |          |



3. INVESTMENT
ACTIVITIES

JSC “OGK-6” CONDUCTS INVESTMENT ACTIVITIES
IN THE FOLLOWING AREAS:
− IMPLEMENTATION OF MAJOR INVESTMENT PROJECTS;
− MODERNIZATION OF EXISTING INDUSTRIAL CAPACITIES.




MAJOR INVESTMENT PROJECTS

    PROJECT                                                                      PLANT               INVESTMENTS                  YEAR OF COMMISSIONING                          CAPACITY INCREASE
                                                                                                     in million rub., incl. VAT                                                                  MW


    Modernization of GRES-24 through addition of a 110 MW                       GRES-24                              3 688                   4th quarter 2009                                   110
    turbine (CCP-420) to a 310 MW generation unit
    Modernization of unit №6 of Kirishskaya GRES (CCP-800)              Kirishskaya GRES                         17,868*                     4th quarter 2010                                   500
    Construction of unit №9 of Novocherkasskaya GRES based        Novocherkasskaya GRES                           16,191                     4th quarter 2011                                   330
    on CCS technology
    Construction of generation unit №4 of Cherepovetskaya GRES,    Cherepovetskaya GRES                          19,444*                     4th quarter 2011                                   330
    330 MW capacity

    TOTAL MAIN PROGRAM                                                                                            57,191                                                                    1,270




SCHEDULE FOR COMMISSIONING
NEW CAPACITIES



                                                                  10,500
                                                                                                                                                                                          330


                                                                                                                                                                         500              500

                                                                                                                                                     110                 110              110



                                                                                           9,052                     9,052           9,052                 9,052               9052             9,052

                                                                      0
                                                                                           2006                      2007            2008                  2009                2010             2011


                                                                                                   — GRES-24                       —KiGRES                         — NchGRES               — ChGRES
                                                                |   INVESTMENT ACTIVITIES
                                                                                                                                                                                     36 | 37




                                                                I. MAJOR INVESTMENT                           Due to implementation of major
                                                                PROJECTS                                      investment projects, by 2011 the
                                                                                                              installed capacity of OGK-6 will
                                                                At present, OGK-6 is implementing             increase by 1,270 MW to 10,322 MW.
                                                                four major investment projects
                                                                approved by the Company’s Board
                                                                of Directors in March 2007.




AMOUNT OF FINANCING OF MAJOR INVESTMENT PROJECTS, IN MILLION RUB., INCL. VAT

PROJECT                                                                   2006 ACTUAL 2007 ACTUAL         2008 PLAN     2009 PLAN     2010 PLAN       2011 PLAN         TOTAL FOR 2007–2011


Modernization of GRES-24 through addition of a 110 MW turbine                     8.10        573.03        1,967.96       1,042.29       75.34           21.28                       3,688
(CCP-420) to a 310 MW generation unit
Modernization of block №6 of Kirishskaya GRES (CCP-800)                         25.31       2,488.33        4,780.52       6,221.86     4,106.77          245.21                     17,868
Construction of block №9 of Novocherkasskaya GRES based                         11.04         851.52        5,357.06       4,280.82     3,081.04        2,609.52                     16,191
on CCS technology
Construction of generation unit №4 of Cherepovetskaya GRES,                       0.00         26.15        2,341.98       6,321.16     5,601.14        5,153.57                     19,444
330 MW capacity

TOTAL FOR ALL PROJECTS                                                          44.45       3,939.03      14,447.52      17,866.13    12,864.29        8,029.58                      57,191
* — excluding payment for technical connection.




AMOUNT OF FINANCING OF MAJOR
INVESTMENT PROJECTS,
IN MILLION RUB. (WITH VAT)



      — Construction of start-up complex of Cherepovetsky
                                                                20000
        GRES (coal power unit #4, 330 MW) at stand-by
        configuration (3*330 MW)

      — Modernization of GRES-24 through addition to a 310
        MWt power unit of a 110 MWt gas turbine

      — Construction of unit #9 of Novocherkassky GRES on
        the basis of CCS technology
                                                                      0
      — Modernization of the condensate part of JSC “OGK-6”
        subsidiary Kirishkaya GRES on the basis of combined                                    2007 (f)                2008 (f)            2009 (p)                2010 (p)           2011 (p)
        cycle technology
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


MODERNIZATION OF GRES-24                                 The project adds a 110 MW                                treatment point with gas mains on
BY ADDING A 110 MW TURBINE                              turbine to the existing 310 MW                            the GRES-24 site, reconstruction of
(CCP-420) TO A 310 MW                                   unit on a rejection scheme. The                           the existing gas placement station
GENERATION UNIT                                         existing P-74 boiler, originally                          (GDS), and laying of a high-pressure
At present, GRES-24 consists of a                       designed for work with a MHD                              gas main from the gas placement
single 310 MW-capacity steam-                           (magnetohydrodynamic)                                     station (GDS) to the GRES-24 site.
generation unit. This generation                        generator, ideally suites for work in                     Output from the gas turbine unit
facility belongs to the Central                         a combined cycle installation on a                        (GTU-110) is provided for on the
integrated power system, which is                       rejection scheme.                                         500 kW buses of Ryazanskaya GRES
currently experiencing a power                                                                                    via the existing flexible connection
shortage.                                               Figure [1] shows the principle                            (HV-500 kV) of the GRES-24
                                                        operating scheme of CCP-420. The                          generation unit. New equipment
According to the conducted                              gas-air mixture is supplied to the                        will be installed during a major
marketing studies a significant                         combustion chamber (CC) of the                            overhaul and will take no more
increase in demand for electric                         gas-turbine installation and the                          than 6 months in 2009.
power and output is expected in                         combustion products perform the
the near future in the Central                          work in the gas turbine, upon                             Specific oil equivalent
integrated power system.                                completion of which they are                              consumption of the modernized
                                                        jettisoned into the boiler. In the                        generation unit is 279 g/kWh, with
Implementation of the project will                      boiler, the heat of departing GTU                         a performance factor (PF) of 44%.
make it possible to increase the                        gases is used to generate the steam                       At present, the specific fuel
competitiveness of GRES-24 on the                       supplied to the steam turbine.                            consumption of the generation
electric energy and power market,                                                                                 unit is 312 g/kWh, with PF 39.5%.
increase Company profits due to                         The project includes complex
improved productivity and                               installation of the gas turbine unit                      In 2007, an agreement was made
increased electric power supply,                        (GTU-110), reconstruction of the                          with the Teploelektroproekt
and meet the growing demand for                         bottom part of the existing P-74                          Institute, a subsidiary of JSC UES
electric power in the Central IPS.                      boiler, construction of a gas                             Engineering Center, to prepare a

                                                                                                                                                         PICTURE 1 PRINCIPAL WORK LAYOUT
                                                                                                                                                         OF 420 MW CCGT



                                                                                        Direct steam

                               Gas                  Exhaust gas

                 Air

                                                                           Existing
                                                                          boiler P-74
     Generator

                                                                                                                                    Generator

                                          Gas turbine                                                  Steam
                       Air compressor                                                                  turbine
                                                            Exhaust gas




                       GTU-110
                       SUPERSTRUCTURE

                                                                                                                  Condenser
                                                                                              Feeding water



                                                                                                  Steam chimney


                                                                                                   EXISTING STRUCTURE
                                  |   INVESTMENT ACTIVITIES
                                                                                                                                                                               38 | 39


                                  feasibility study and working                           MODERNIZATION OF UNIT #6                          capacity of 279 MW each, with two
                                  documentation. The approved part                        OF KIRISHSKAYA GRES                               drum-type waste heat boilers, to
                                  of the design has been received                         (CCP-800)                                         the existing steam turbine of the
                                  from JSC Engineering Center,                            According to marketing research                   sixth unit of Kirishsky GRES, 300
                                  Teploelektroproekt Institute, and                       the power system of the Northwest                 MW capacity.
                                  working documentation has been                          is experiencing a deficit; moreover,
                                  developed for the preparatory                           the growth of consumption is                      The existing steam turbine of the
                                  period and groundwork. The                              exceeding the planned                             sixth generation unit is subject to
                                  approved part of the design has                         commissioning of new capacities.                  reconstruction, taking into account
                                  been submitted to the                                                                                     its use in the combined cycle plant
                                  Glavgosekspertiza. Working                              The investment project to                         (CCP). As a result, its installed
                                  documentation is being processed                        modernize the plant’s generation                  capacity is being reduced from
                                  .                                                       unit has been developed with a                    300 MW to 260 MW.
                                  In April, a contract was concluded with                 view to enhancing the
                                  JSC NPO Saturn for supply of a gas                      competitiveness of Kirishskaya GRES,              Figure 2 shows the principle
                                  turbine unit (GTU-110). The equipment                   to raise efficiency of the process, and           operating scheme of CCP-800. The
                                  is currently being prepared.                            to cover the increased demand for                 gas-air mixture is supplied to the
                                                                                          and projected deficit of electric                 combustion chamber (CC) of the
                                  In December, a contract was                             power in the region,. The sixth unit is           gas-turbine installations and the
                                  concluded with JSC UES                                  the newest unit of the plant. Its                 combustion products perform the
                                  Engineering Center for owner/                           modernization will make it possible               work in the gas turbine, upon
                                  developer services.                                     to synchronize the service life of the            completion of which they are sent
                                                                                          existing steam turbine after                      into the waste heat boiler. In the
                                  Work on the project is on schedule.                     reconstruction with the service life of           waste heat boiler, the heat of
                                                                                          the newly acquired equipment.                     departing gases of the gas turbine
                                  The planned date for                                                                                      unit (GTU) is used to generate the
                                  commissioning the unit is the                           The design provides for the                       steam supplied to the steam
                                  fourth quarter of 2009.                                 addition of two gas turbines with a               turbine.

PICTURE 2 PRINCIPAL WORK LAYOUT
OF 800 MW CCGT

                                                                               Steam chimney


                                                                                                                    Steam
                                                                         Gas

                                                                                  Combustion
                                                                                  unit                                              Steam
                                                       Air                                            Exhaust                       turbine
                                                                                                      heat boiler                   with reduced
                                                                                     Gas                                            indicators
                                                               Air                   turbine                                                                       Generator
                                           Generator           compressor



                                                               GTU-270                  Exhaust gas

                                                                        Gas
                                                                               Combustion
                                                        Air                    unit
                                                                                                                                                       Condenser
                                                                                                      Exhaust
                                           Generator          Air                   Gas               heat boiler
                                                              compressor            turbine




                                                              GTU-270                   Exhaust gas                 Feeding water


                                                                 SUPERSTRUCTURE
                                                                                                                                          EXISTING STRUCTURE
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


The installation of the new                      erected addition to the main           with a capacity of 279 MW each).
equipment will coincide with a                   building, in which the gas turbine     These are currently in the
major overhaul and will take no                  and boiler equipment will be           production stage.
more than 6 months in 2009.                      installed, is highlighted.
                                                                                        In December, a contract was
Specific oil equivalent                          For the purposes of realizing the      concluded with ZAO SMU SZEM for
consumption of the modernized                    CCP-800 construction project, in       preparatory work on the project.
generation unit is 221 g/kWh, with               2007 a contract was concluded
a performance factor (PF) of 54%.                with JSC SevZap NTC for                In March 2008, following a two-
At present, the specific oil                     developing a feasibility study (FS)    stage competitive tender, JSC VIS
equivalent consumption of the                    and working documentation. To          Production Company became the
generation unit is 343 g/kWh,                    date, the FS and working               general contractor for the
with PF 37%.                                     documentation for the preparatory      construction of CCP-800.
                                                 period and ground work have
In realizing the project, the existing           been received from JSC SevZap          Work on the project is on schedule.
infrastructure of Kirishskaya GRES               NTC. The necessary documentation
will be used as far as possible,                 packet has been compiled for           The planned date for
namely: the project will be                      submission to Glavgosekspertiza.       commissioning the unit is the
implemented on existing plant                                                           fourth quarter of 2010.
sites, and existing auxiliary and                In 2007 contracts were concluded
common equipment, the existing                   for the supply of equipment
electrical output scheme with                    requiring an extended production       CONSTRUCTION OF BLOCK #9
expansion of outdoor switchgear                  time. In September 2007, a             OF NOVOCHERKASSKAYA GRES
(OS), and the existing water supply              contract was concluded with JSC        BASED ON CCS TECHNOLOGY
scheme will be used.                             EMAlliance for the supply of waste     According to marketing studies
                                                 heat boilers, as well as a contract    that have been conducted, an
Figure 3 depicts a schematic plan                for supply of gas turbine units (two   increase in power consumption
of Kirishskaya GRES. The newly                   Siemens SGT5-4000F installations       may be noted in the Southern

                                                                                                                              PICTURE 3 KIRISHI GRES POWER PLANT
                                                                                                                              LAYOUT
                                      |   INVESTMENT ACTIVITIES
                                                                                                                                                                 40 | 41

                                      integrated power system (IPS). The                   vacant lot of the plant. The main       occurs at a bed temperature of 850
                                      increase in power consumption is                     scheme of the generation unit is        °C – 900 °C. During low-ash fuel
                                      caused by the expansion of                           presented in Figure 4.                  combustion, sand is used for the
                                      metallurgical production, oil                                                                material of the bed. If the fuel
                                      refining, engineering, and the coal                  Operating principle of the fluidized    contains sulphur, in order for it to
                                      industry in the region, which                        bed boiler (Fig. []-[])                 bond, lime is added to the firing, in
                                      determines demand for an                                                                     which case the material of the bed
                                      increase in the total installed                      Figure 5 shows a schematic view         consists of a mixture of fuel ash and
                                      capacity of power plants of the                      of the CFB boiler. The material of      lime.
                                      integrated power system (IPS).                       the boiler is brought to a
                                                                                           suspended state (so-called              Specific oil equivalent consumption
                                       Realization of the project will make                “fluidized bed”) by blowing air         of the generation unit is 323.5 g/
                                      it possible to increase the                          through the material of the bed         kWh, with a performance factor (PF)
                                      competitiveness of                                   lying on the lattice/air distributor    of 39%.
                                      Novocherkasskaya GRES on the                         (fig. []). At high air speeds the bed
                                      electric energy and power market,                    expands, and several particles of       The primary and auxillary
                                      increase Company profits due to                      the bed along with the unburnt          equipment of the new unit, as well
                                      improved productivity and                            fuel particles are carried away from    as the electrical device unit, are
                                      increased electric power supply, and                 the bed along with the departing        housed in a separate building
                                      to withdraw existing equipment                       gases. The largest of the particles     adjoining the Main building.
                                      that has exhausted its resources for                 being carried away are separated in
                                      reconstruction.                                      a cyclone and return again to the       Part of the existing plant
                                                                                           fluidized bed, resulting in more        infrastructure will be used in
                                      The project for modernization of the                 complete fuel consumption. This         implementing the investment
                                      Novocherkasskaya GRES consists of                    comprises the operating principle       project, namely: the existing coal
                                      construction of a new generation                     of the circulating fluidized bed on     storehouse will be expanded to 400
                                      unit with a capacity of 330 MW,                      the basis of which CFB boilers          thousand tons, and will be used for
                                      with installation of a circulating                   operate. Air speed is approximately     both existing and newly
                                      fluidized bed (CFB) boiler, on a                     5 m/s. Combustion ordinarily            implemented equipment.


PICTURE 4 PRINCIPAL LAYOUT OF POWER
GENERATING UNIT OF NOVOCHERKASSK
GRES POWER PLANT OF TOTAL CAPACITY
330 MW WITH CENTRAL CONTROL BOILER

                                                                                                             Steam
                                                    Chimney

                                                                         Exhaust gas


                                                                                                                                                     Generator
                                                                                           Boiler                        Steam
                                                                                        with System                      turbine
                                                                                       Central Control



                                                                  Fuel+Air

                                                                                                                                   Condenser




                                                                                                         Feeding water
    ANNUAL REPORT                2007         JSC “OGK-6”
|                            |            |


Moreover, a new fuel feed conveyor                               supply of a CFB boiler. The boiler is     the electric power market, the
tunnel to the new unit is planned, as                            currently in production.                  investment project proposes
well as installation of an additional                                                                      construction of a generation unit of
car dumper. Power output of the                                  A tender for supply of a gas turbine      Cherepovetskaya GRES, as well as
new unit will take place via existing                            with a generator has ended with NP        modernization and creation of new
330 kW voltage lines with                                        Energoremfond being declared the          infrastructure for the plant, which
installation of an additional outdoor                            winner (production by JSC                 will ultimately make further
switchgear box (OS-330 kW). The                                  Turboatom, Kharkov). Contract             expansion of generating capacities
project provides for using the                                   negotiations are being conducted.         possible.
existing water supply scheme with
the installation of two three-                                   The project is planned for                The expansion of Cherepovetskaya
sectional dry coolers. Other                                     implementation according to the           GRES is planned through
common equipment will be                                         EPCM (Engineering Procurement             construction of a generation unit
employed as well.                                                Construction Management)                  with 330 MW capacity and using
                                                                 contract scheme.                          coal as fuel.
Using the existing infrastructure of
Novocherkasskaya GRES will make it                               The planned date for                      The expansion of Cherepovetskaya
possible to minimize investment                                  commissioning of the new unit is          GRES is planned on an area of the
costs for realization of the project.                            the fourth quarter of 2011.               electric power plant grounds free of
                                                                                                           major development, located in the
The newly erected building of the                                                                          community of Kadui in Vologda
main building of the new unit, as                                CONSTRUCTION OF                           Region 40 km from Cherepovets —
well as the fuel feed tunnel, are                                GENERATION UNIT #4 OF                     a major industrial hub and the
depicted in Figure 6 (highlighted                                CHEREPOVETSKAYA GRES,                     primary consumer of electric power
in red).                                                         330 MW CAPACITY                           produced by the GRES.
                                                                 Under conditions of the growing
In September 2007, a contract was                                power deficit of the Vologda Region       The primary and auxillary
concluded with JSC EMAlliance for                                and increased competitiveness on          equipment of generation unit #4 is

                                                                                                                                                  PICTURE 5 OPERATING PRINCIPLE
                                                                                                                                                  OF FLUIDIZED BED BOILER


                                                        Steam outlet
                 Limestone




                                                        Feeding water inlet
          Fuel




                                 Cyclone
                                                                                                                             Steam gas
                                 Burner
                                                            Electric filter



                                                               Fly ash
                        Bottom ash
                                                                            Exhauster
                                                              Secondary air ventilator
                             Pass to ash bunker         Primary air ventilator


                                                                                                   Fuel




                                                                                                          Circulating boiling air
                               |   INVESTMENT ACTIVITIES
                                                                                                                                                   42 | 43


                               housed in the newly erected main         A single-cooler reversible circulating   developed an investment feasibility
                               building.                                water supply system is planned. A        study and business plan for the
                                                                        membrane technology-based water          project.
                               Construction of a new fuel               treatment system is likewise
                               conveying system is planned, the         provided for.                            The project is planned for realization
                               buildings and installations of which                                              according to the EPC (Engineering
                               will include: a coal storehouse, an      A dry ash removal system is              Procurement Management)
                               unloading device with car dumper,        proposed in the expanded part of         scheme.
                               a conveyer belt gallery, filling         the GRES in order to eliminate light
                               stations, a crusher, a fuel separator,   and bottom ash formed during coal        The planned date for
                               and a defroster.                         combustion in the boilers.               commissioning of the new unit is
                                                                                                                 the fourth quarter of 2011.
                               A reinforced concrete smokestack         In 2007, Nizhegorodsky
                               with a mouth 8.4 m in diameter and       Teploelektroproekt, a subsidiary of
                               180 m in height is being installed.      JSC UES Engineering Center,




PICTURE 6 NOVOCHERKASSK GRES
POWER PLANT LAYOUT
    ANNUAL REPORT        2007       JSC “OGK-6”
|                    |          |




II. MODERNIZATION OF                              The most important operations             According to the results of 2007,
EXISTING INDUSTRIAL                               planned for implementation in 2007        there were no significant
CAPACITIES                                        were accomplished their entirety.         differences between actual use of
                                                                                            capital investments and planned
The investment program plan of                    The significant difference between        use among other TR and R
JSC “OGK-6” for 2007 provided for                 the actual use of capital                 projects.
the use of capital investments for                investments and the planned use
technical reequipment and                         of JSC “OGK-6” subsidiary                 Insignificant deviations in
reconstruction (TR and R) in the                  Novocherkasskaya GRES according           fulfillment of TR and R programs
amount of 1,707,139 thousand                      to 2007 results is due to                 by JSC “OGK-6”subsidiaries are due
rubles (without VAT). Actual use of               anticipatory fulfillment of the           to corrections to the work and
capital investments for TR and R                  supply schedule of primary                equipment procurement
was 1,813,856, or 106.3%.                         equipment for the investment              schedules made by contractors of
                                                  project “Reconstruction of unit №7        the subsidiaries, as well as transfer
The main results of the technical                 turbine” for the purposes of              of the use of capital investments
reequipment and reconstruction                    ensuring obligatory                       for a series of projects of the 2007
financing program of JSC “OGK-6”                  implementation of the project             investment program to 2008.
are presented in the table below.                 within the planned timelines.




    JSC “OGK-6” SUBSIDIARIES                                    USE OF CAPITAL INVESTMENTS FOR TR AND R OF JSC “OGK-6” IN 2007           IMPLEMENTATION OF THE TR AND R
                                                                               PLAN                 ACTUAL % ACCOMPLISHED                PROGRAM OF JSC “OGK-6” FOR 2007
                                                                          thousand rubles            thousand rubles   thousand rubles


    TOTAL FOR JSC “OGK-6”, incl.:                                         1,707,139                  1,813,856            106.3%

    Ryazanskaya GRES                                                         403,024                    379,748             94.2%
    GRES-24                                                                  116,391                    125,056            107.4%
    Krasnoyarskaya GRES-2                                                     78,054                     76,964             98.6%
    Kirishskaya GRES                                                         952,968                    948,490             99.5%
    NovocherkasskayaGRES                                                     104,091                    230,890            221.8%
    Cherepovetskaya GRES                                                      52,611                     52,708            100.2%
                                       |   INVESTMENT ACTIVITIES
                                                                                                                                                                                               44 | 45




                                       III. RESULTS OF                                        An insignificant deviation in
                                       INVESTMENT ACTIVITIES                                  fulfillment of the JSC “OGK-6”
                                       FOR 2007                                               investment project in 2007 was
                                                                                              due to alteration of work and
                                       The investment program plan of                         equipment procurement
                                       JSC “OGK-6” in 2007 provided for                       schedules, as well as to transfer of
                                       the use of capital investments of                      the use of capital investments for
                                       2,004,298.0 thousand rubles; actual                    several medium and small projects
                                       use was 1,988,812.6 thousand                           to 2008.
                                       rubles, or 99.2%.




AMOUNT OF INVESTMENTS AND               NAME OF SUBSIDIARY                                                    AMOUNT OF INVESTMENTS                          COMMISSIONING OF FIXED ASSETS
COMMISSIONING OF FIXED ASSETS                                                                                          thousand rubles (without VAT)                                    Investment amount
FOR JSC “OGK-6” SUBSIDIARIES IN 2007
                                        TOTAL:                                                                                    1,988,812.6                                              765,785.3

                                        Ryazanskaya GRES                                                                              389,669.5                                             132,838.1
                                        Novocherkasskaya GRES                                                                         314,197.0                                             164,148.9
                                        Kirishskaya GRES                                                                              948,490.4                                             295,965.9
                                        Krasnoyarskaya GRES-2                                                                          80,964.0                                              75,809.0
                                        Cherepovetskaya GRES                                                                           98,445.0                                              65,843.0
                                        GRES-24                                                                                       127,027.0                                              11,458.0
                                        Executive office                                                                               30,019.6                                              19,722.5

                                        INCLUDING FOR MAJOR PROJECTS:                                                                443,719.5                                                5,464.0
                                        – including for the project “Addition of a GT-110 gas turbine                                117,499.0                                                      0
                                          to 310 MW unit ” at GRES-24
                                        – including for project “Construction of 330 MW coal CFB                                       65,895.0                                                5,464.0
                                          generation unit №9” at Novocherkasskaya GRES
                                        – including for the project “Construction of CCP-800 MW on the base                           214,588.5                                                        0
                                          of existing 300 MW generation unit №6” at Kirishskata GRES
                                        – including for the project “Construction of 330 MW coal CFB                                   45,737.0                                                        0
                                          generation unit №4” at Cherepovetskaya GRES

                                        * Volumes presented are for work accepted as per acts of 2007.
                                       ** Data presented are for fixed assets commissioned in 2007, with consideration of facilities for which construction began in earlier periods.
The Creac’h Lighthouse
THE CREAC’H LIGHTHOUSE IS THE BRIGHTEST LIGHTHOUSE IN EUROPE.
FOR DECADES, IT HAS BEEN SHOWING THE RIGHT DIRECTION TO
SEAGOING VESSELS. IN 2007, RETURN ON SALES OF OGK-6 EXCEEDED 10%.
TODAY, THIS IS A GOOD LANDMARK FOR COMPANIES OF THE SECTOR.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                           46 | 47




                                        4        ECONOMY
    ANNUAL REPORT         2007       JSC “OGK-6”
|                     |          |



4. ECONOMY


OPERATING ACTIVITY FACTORS




I. EARNINGS                                          Total earnings from heat sales in         reducing representation of
                                                     2007 remained practically on the          earnings for other products for all
Earnings of JSC “OGK-6” in 2007                      level of 2006, amounting to               JSC “OGK-6” subsidiaries as of
were 35,333,820 thousand                             1,813,139.4 thousand rubles.              January 1, 2007, to a single
rubles or 21.2% more than                                                                      template in accordance with the
consolidated earnings for 2006 .                     Earnings from sales of other              accounting policy of JSC “OGK-6”;
                                                     products/services relating to             hence, part of the income from
Total earnings from sales of electric                primary activities in 2007, which         non-core activities was transferred
energy and power in 2007 were                        include earnings from sales of            to primary activities, in particular,
33,195,199 thousand rubles.                          chemically treated water, payment         for the “property rental” category.
                                                     for nonreturn of condensate,              Likewise, individual non-core
The 23.4% increase in earnings                       payment for heat delivery services,       forms of activity were eliminated
from electric energy and power                       earnings from property rental, etc.,      (withdrawal of cafeteria, hospitals,
sales in 2007 in comparison with                     were 314,044.4 thousand rubles            etc.). The main reduction in
2006 is due to both the increase in                                                            earnings was caused by rental of
generation of in-house electric                      Income from sales of products/            an ecological equipment
power and the increase in sales of                   services relating to non-core             workshop at subsidiary GRES-24
purchased electric power. The                        activities in 2007 was 11,437.2           during the fourth quarter of 2006,
share of electric power purchased                    thousand rubles. The 94.3%                resulting an earnings reduction for
for resale in the electric power                     decrease in earnings from sales of        the category “Production of
sales structure increased from 6%                    products/services relating to non-        nonstandardized equipment” of
in 2006 to 18% in 2007.                              core activities is a result of            77,858 thousand rubles.



EARNINGS STRUCTURE, THOUSAND RUBLES
    EARNINGS                                                                                         2006                              |          2007                         |   2007/2006
                                                                                              thousand rubles   share in earnings, %                      share in earnings%              %


    TOTAL EARNINGS:                                                                         29,150,427.9                   100%            35,333,820.0            100%              121.2%

    INCLUDING:
    Earnings from sales of electric energy and power, of which:                             26,898,738.8                     92%           33,195,199.0              94%             123.4%
    – from electric energy sales:                                                             18,626,941                    64%            23,373,656.4              66%             125.5%
    – from power sales:                                                                      8,271,797.8                    28%             9,821,542.6              28%             118.7%
    Earnings from heat sales                                                                 1,829,865.5                      6%            1,813,139.4               5%              99.1%
    Earnings from sales of other products/services related to primary activities                 219,968                    0.8%              314,044.4             0.9%             142.7%
    Earnings from sales of other products/services related to non-core activities              201,855.6                    0.7%               11,437.2            0.03%               5.7%
|   ECONOMY
                                                                                                                                                                                                                            48 | 49


II. PRODUCTION COST                                       2006, as well as increasing fuel                              comparison with 2006, or by                               Depreciation deductions are
                                                          prices.                                                       2,612,823 thousand rubles, due                            calculated with allowance for
Production cost in 2007 in                                                                                              to the increased share of electric                        commissioning of fixed assets.
comparison with 2006 increased                            Equipment repair costs calculated as                          power purchased for resale.
by 17.7%, amounting to                                    part of the feedstock and materials,
31,629,550 thousand rubles. The                           production labor and services, and                            Expenses for labor compensation
greater part in the production cost                       labor compensation expenses in                                and UST for 2006 increased by
structure (67.38%) is comprised of                        2007 exceeded those for 2006 by                               538,582 thousand rubles or
variable costs, primarily caused by                       101,328 thousand rubles, or 3.5%.                             27.5%, due to indexation of the
fuel costs. The share of fuel costs                       Repair expenses amounted to                                   base rate for first-category
in the overall production cost                            2,888,804 thousand rubles in                                  workers,as well as the transition
structure in 2007 was 56.59%.                             2006, and 2,990,132.4 thousand                                to an integrated labor
                                                          rubles in 2007. The share of repair                           compensation system beginning
The increase in fuel costs in                             expenses in the production cost                               on January 1, 2007.
absolute values by 3,963,364                              structure for 2006 was 9.45%, or
thousand rubles in 2007 is due to                         1.29% less than in 2006.                                      Depreciation costs in 2007 were
the 3.5% increase in in-house                                                                                           1,186,766.3 thousand rubles, or
electric power generation by JSC                          Purchased electric power costs in                             132,232.3 thousand rubles more
“OGK-6” plants in comparison with                         2007 increased 4.5 times in                                   than depreciation costs in 2006.



PRODUCTION COST STRUCTURE FOR 2006–2007
 PRODUCTION COST                                                                                                                2006 |                     2007 |                                                      2007/2006
                                                                            thousand rubles               share in total production cost, %           thousand rubles          share in total production cost, %                      %


TOTAL PRODUCTION COST                                                    26,876,690.2                                       100,00%               31,629,550.0                                        100%                 117,7%

Variable costs                                                            17,349,940.0                                         64.55%              21,313,304.1                                     67.38%                  122.8%
Fuel costs                                                                16,579,683.5                                         61.69%              17,899,159.5                                     56.59%                  108.0%
Purchased electric power                                                     747,224.4                                          2.78%               3,360 048.1                                     10.62%                  449.7%
Process water                                                                 23,032.2                                          0.09%                  54,096.5                                      0.17%                  234.9%
Conventional costs                                                         9,526,750.2                                         35.45%              10,316,245.9                                     32.62%                  108.3%
Feedstock and materials                                                    1,166,165.2                                          4.34%               1,283,332.9                                      4.06%                  110.0%
Production labor and services                                              1,932,465.6                                          7.19%               1,916,849.0                                      6.06%                   99.2%
Depreciation                                                               1,054,534.0                                          3.92%               1,186,766.3                                      3.75%                  112.5%
Labor compensation costs + UST                                             1,955,979.9                                          7.28%               2,494,561.6                                      7.89%                  127.5%
Non-governmental pension funding                                              75,470.6                                          0.28%                 128,958.9                                       0.4%                  170.9%
Other expenses                                                             3,342,134.9                                         12.44%               3,305,777.2                                     10.45%                   98.9%




 1 Due to the Company’s reorganization in the form of annexation of generating companies completed on                   For the purposes of deducting “non-liquid”assets of the AO-GRES prior to their annexation to OPEN JOINT-
   September 29, 2006, the following results of financial and economic activities were entered into the profit          STOCK COMPANY “OGK-6”, earnings received from electric power sales in 2006 were revised by the sum of the
   and loss report for 2006:                                                                                            standard imbalance for a total amount of 681,240 thousand rubles, deduction of the standard imbalance of
 – for OPEN JOINT-STOCK COMPANY OGK as the managing company, for 8 months and 28 days of 2006;                          previous years for a total amount of 1,839,182 thousand rubles, and deduction of assets and liablities and
 – for GRES that became OPEN JOINT-STOCK COMPANY OGK-6 subsidiaries, for 2 days of the third quarter and                restoration of VAT for a total amount of 531,958 thousand rubles. Detailed information regarding this may be
   for the fourth quarter of 2006;                                                                                      obtained from the Annual Report of OPEN JOINT-STOCK COMPANY “OGK-6”for 2006.
 – for the executive office of the reorganized OPEN JOINT-STOCK COMPANY “OGK-6”, for 2 days of the third
   quarter and for the fourth quarter of 2006.                                                                          For the purposes of analysis and comparison with 2007 indices, consolidated financial indices for 2006 were
                                                                                                                        calculated without accounting for deductions of non-liquid assets.
 In order to make it possible to compare the results of Company’s financial and economic activities for 2007 and
    2006, with consideration of the operation of all GRES, financial indices for 2006 were consolidated for the
    purposes of this section on the basis of the following principles:
  – for 2006, consolidated financial indices were formed by combining the indices of the GRES as separate legal
    entities for a period of 8 months and 28 days of 2006 and the indices of the GRES as subsidiaries of OPEN
    JOINT-STOCK COMPANY “OGK-6”for two days of the 3rd quarter and for the 4th quarter.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


FUEL COSTS                                                                        The principle consumer of fuel oil in 2007 was Kirishskaya GRES. The reduction
The primary changes in the fuel cost structure for 2007 were:                     in the share of fuel oil in the fuel mix in 2007 was due to its replacement with
                                                                                  gas at Kirishskaya GRES.
» an 11.26% increase in the share of gas expenses due to a 4.62% increase
  (to 55.16%) in the share of gas in the fuel mix, both due to the reduction in   The strategy in the area of fuel supply is aimed at optimizing the fuel balance
  electric power generation by subsidiary Kirishskaya GRES using more             and minimizing fuel costs. It provides for increasing the share of coal in the fuel
  expensive fuel — fuel oil — and due to the increase in generation using         balance, the maximum possible replacement of fuel oil with gas, fuel
  gas and, correspondingly, greater gas consumption. The increased share of       purchases through tendering, conclusion of long-term contracts for fuel
  gas costs is likewise due to the change in the gas consumption                  supply, etc. In 2007, the Company concluded long-term contracts for supply of
  structure — higher consumption of commercial and above-limit gas and            limited gas with JSC Gazprom to 2011. Contracts for coal supply for the needs
  an increase in gas prices.                                                      of JSC “OGK-6” subsidiaries, with the exception of supply of Podmoskovny coal
                                                                                  for the needs of Ryazanskaya GRES, Rostov coals for the needs of
» a 0.16% increase in the share of coal expenses, due to the increase in          Novocherkasskaya GRES, and Borodinsky coal for the needs of Krasnoyarskaya
  generation and the amount of coal burned. At the same time, the share of        GRES-2 (in 2007), are renewed annually on the basis of open tenders. In May
  coal in the fuel mix changed insignificantly, from 43.95% in 2006 to 44.04%     2007, JSC “OGK-6” concluded a contract with JSC Mosbassugol to supply
  in 2007.                                                                        Podmoskovny coal for the needs of Ryazanskaya GRES to 2011. The share of
                                                                                  Podmoskovny coal in the coal balance of the plant is 17–20%. Likewise, in
» reduction in the share of fuel oil costs from 13.86% in 2006 to 2.45% in        December 2007, JSC “OGK-6” concluded a long-term contract for supply of
  2007, caused by the reduction in the share of fuel oil in the fuel mix, from    Borodinsky coal to Krasnoyarskaya GRES-2 for a three-year period at fixed
  5.51% in 2006 to 0.8% in 2007.                                                  prices for 2008, 2009, and 2010. The share of Borodinsky coal in the coal
                                                                                  balance of Krasnoyarskaya GRES-2 is 100%.



FUEL COST STRUCTURE FOR 2006–2007

    COSTS                                                                                     2006 |                                            2007 |        2007/2006
                                                          thousand rubles         share in total costs, %        thousand rubles    share in total costs, %          %


    TOTAL COSTS                                          16,579,684                       100.00%               17,899,160                      100%            108.0%
    Coal                                                   6,060,340                       36.55%                 6,571,642                    36.71%           108.4%
    Gas                                                   8,220,938                        49.58%                10,890,570                    60.84%           132.5%
    Fuel oil                                               2,298,406                       13.86%                   436,948                     2.45%            19.0%

    RYAZANSKAYA GRES                                       3,805,536                        22.95%               4,492,161                    25.09%            118.0%
    Coal                                                    1,558,156                        9.40%                1,689,878                    9.44%            108.5%
    Gas                                                    2,020,792                        12.19%               2,795,792                    15.62%            138.4%
    Fuel oil                                                  226,588                        1.37%                    6,491                    0.03%              2.9%

    NOVOCHERKASSKAYA GRES                                  4,025,700                        24.28%               4,739,782                    26.48%            117.7%
    Coal                                                    2,481,015                       14.96%                2,615,955                   14.61%            105.4%
    Gas                                                    1,493,558                         9.01%               2,123,827                    11.87%            142.2%
    Fuel oil                                                   51,127                        0.31%                        0                        –                 –

    KIRISHSKAYA GRES                                       5,481,270                        33.06%               4,836,059                    27.02%              88.2%
    Coal                                                            –                            –                       –                         –                  –
    Gas                                                    3,482,746                        21.01%               4,418,671                    24.69%             126.9%
    Fuel oil                                                1,998,524                       12.05%                 417,388                     2.33%              20.9%

    KRASNOYARSKAYA GRES-2                                    979,072                          5.91%              1,206,690                      6.74%           123.2%
    Coal                                                     967,127                          5.83%               1,196,419                     6.68%           123.7%
    Gas                                                            –                              –                       –                         –
    Fuel oil                                                  11,945                          0.07%                  10,271                     0.06%             86.0%

    CHEREPOVETSKAYA GRES                                   1,569,547                          9.47%              1,744,382                      9.75%           111.1%
    Coal                                                    1,054,042                         6.36%               1,069,390                     5.97%           101.5%
    Gas                                                       505,283                         3.05%                 672,194                     3.76%           133.0%
    Fuel oil                                                   10,222                         0.06%                   2,797                     0.01%            27.4%

    GRES-24                                                  718,559                          4.33%                 880,085                     4.92%           122.5%
    Coal                                                           –                              –                       –                         –                –
    Gas                                                      718,559                          4.33%                 880,085                     4.92%           122.5%
    Fuel oil                                                       –                              –                       –                         –                –
                                         |   ECONOMY
                                                                                                                                                                                    50 | 51




FUEL COSTS (BY FUEL TYPE)                GAS COST STRUCTURE FOR 2007
FOR 2006–2007, BILLION RUBLES
                                                                                                                                 COST                         SHARE IN TOTAL GAS COSTS
                                                                                                                          thousand rubles                                                  %
16.58            17.90
                         2.45%               GAS, TOTAL                                                                 10,890,570                                                    100%
        13.86%                               Limited gas                                                                  5,913,079                                                    54%
                                             Above-limit gas                                                                846,110                                                     8%
        36.55%           36.71%              Commercial gas                                                               1,986,372                                                    18%
                                             Additional gas                                                               2,145,009                                                    20%

        49.58%           60.84%              RYAZANSKAYA GRES                                                             2,795,793                                                    26%
                                             Limited gas                                                                   2,334,062                                                   21%
                                             Above-limit gas                                                                 168,022                                                    2%
                                             Commercial gas                                                                   45,161                                                    0%
                                             Additional gas                                                                  248,548                                                    2%

2006             2007                        NOVOCHERKASSKAYA GRES                                                        2,123,827                                                    20%
                                             Limited gas                                                                   1,583,046                                                   15%
                                             Above-limit gas                                                                 131,292                                                    1%
        — Fuel oil                           Commercial gas                                                                        0                                                     –
                                             Additional gas                                                                  409,488                                                    4%
        — Coal
                                             KIRISHSKAYA GRES                                                             4,418,671                                                    41%
        — Gas                                Limited gas                                                                     840,567                                                    8%
                                             Above-limit gas                                                                 366,272                                                    3%
                                             Commercial gas                                                                1,767,830                                                   16%
                                             Additional gas                                                                1,444,002                                                   13%

                                             CHEREPOVETSKAYA GRES                                                           672,194                                                      6%
GAS COSTS (BY TYPE OF GAS USED)              Limited gas                                                                     615,282                                                     6%
FOR 2007                                     Above-limit gas                                                                  56,912                                                     1%
                                             Commercial gas                                                                        0                                                      –
                                             Additional gas                                                                        0                                                      –

          20 %                               GRES-24                                                                        880,085                                                      8%
                                             Limited gas                                                                     540,121                                                     5%
                                             Above-limit gas                                                                 123,612                                                     1%
18 %                                         Commercial gas                                                                  173,381                                                     2%
                                  54 %       Additional gas                                                                   42,971                                                     0%


                                         Limited gas — gas volumes allotted by JSC Gazprom (produced by JSC            Additional gas — gas volumes allotted by JSC Gazprom (produced by JSC
          8%
                                         Gazprom and its affiliated companies) at state-regulated (FTS RF) prices.     Gazprom and its affiliated companies) beyond the volumes of the limited
                                                                                                                       gas contract, at prices according to RF Government Order №333 dated
                                         Above-limit gas — actual overrun of gas in excess of volumes agreed on        05.28.2007.
        — Limited gas                    in the limited gas supply contract.

        — Above-limit gas                Commercial gas — gas produced by independent producers not affiliated
                                         with JSC Gazprom. The price of commercial gas is not regulated by the state
        — Commercial gas                 (FTS RF).

        — Additional gas
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


EARNINGS — PRODUCTION COST RATIO
The earnings — production cost ratio is an important parameter
reflecting the Company’s productivity. Earnings increases in 2007
outstripped the Company’s production cost.



                                                                           2006                        2007            2007/2006, %   EARNINGS — PRODUCTION
                                                                                                                                      COST RATIO FOR 2006–2007

Earnings, in thousand rubles                                        29,150,427.9                 35,333,820.0               121.2%
Production cost, in thousand rubles                                 26,876,690.2                 31,629,550.0               117.7%
Earnings/Production cost                                                   1.085                        1.117                    –




III. GROSS PROFIT

For the end of 2007, gross income                  In 2007 an increase in gross profit
for JSC “OGK-6” plants was                         was noted for all subsidiaries
3,704,270 thousand rubles, or                      (exclusive of executive office costs).
1,430,532.3 thousand rubles
more than in 2006.




GROSS GRES PROFIT
STRUCTURE
FOR 2006–2007

                                                                                            3%
               1%
                        7%

                                            34 %                                   12 %                   28 %
        13 %                                                                                                                               — RGRES

                                                                                                                                           — NchGRES

                                                                        45 %                                                               — KiGRES
     18 %
                                                                                                                                           — KGRES-2
                                                                                                                12 %
                                          27 %                                                                                             — ChGRES

                                                                                                                                           — GRES-24

2006                                                                 2007
                                  |   ECONOMY
                                                                                                                                                                                               52 | 53


GROSS GRES PROFIT                                                                 2006                     2007           2007/2006           GROSS PROFIT OF SUBSIDIARIES FOR 2007
STRUCTURE FOR 2006–2007                                                    thousand rubles          thousand rubles                 %                                   FOR REFERENCE (excluding EO costs)


                                  TOTAL:                                 2,273,737.7             3,704,270.2*                 162,9%                                                    4,488,190.8
                                  Ryazanskaya GRES                          790,209.1              1,052,944.8                133.2%                                                     1,205,896.2
                                  Novocherkasskaya GRES                    611,177.3                 452,956.0                  74.1%                                                      629,436.4
                                  Kirishskaya GRES                         418,831.7               1,666,861.6                398.0%                                                     1,802,791.6
                                  Krasnoyarskaya GRES-2                    285,482.3                 435,928.7                152.7%                                                       610,743.7
                                  Cherepovetskaya GRES                       18,806.2                -11,070.9                 -58.9%                                                       72,267.7
                                  GRES-24                                   149,231.1                106,650.1                  71.5%                                                      167,055.2

                                  * in accordance with the JSC “OGK-6” Accounting Policy, gross profit of JSC “OGK-6” subsidiaries is adjusted for executive office (EO) costs.


                                  IV. EBITDA                                                 accepted corporate system of                       than profitability of the
EBITDA, THOUSAND RUBLES                                                                      depreciation of fixed and                          consolidated EBITDA for 2006
                                  EBITDA is earnings before interest,                        intangible assets.                                 (11.84%).
                                  taxes, depreciation, and
4,500,000                         amortization. This indicator                               For the end of 2007, the EBITA
                                  accurately reflects the financial                          indicator was 4,396,807 thousand
                                  result of corporate operating                              rubles, or 27.44% more than in
                                  activity, and makes it possible to                         2006.
                                  compare companies with one
                                  another, as it is not dependant on                         Profitability of EBITDA on earnings
                                  the taxation system, loan cost, or                         for 2007 was 12.44%, or 0.6% more


 500,000                          INDEX                                                                                   2006                                2007                   2007/2006, %

                    2006   2007
                                  EBITDA (thousand rubles)                                                            3,449,990                          4,396,807                           127.44%




                                  V. NET PROFIT                                              Net profitability for the end of 2007              improved as a result of the
                                                                                             was 5.3% Return on equity (ROE) of                 replacement of short-term
                                  Gross profit of JSC “OGK-6” for the                        JSC “OGK-6” for the end of 2007 was                Company obligations with long-
                                  end of 2007 was 1,873,621                                  5.37%, compared to 9.77% in 2006.                  term obligations.
                                  thousand rubles, or 50.89% more                            At the same time, it should be
                                                                                             noted that equity increased                          2   Profit for a single share is calculated in
                                  than in 2006, taking into account
                                  that in 2006, JSC “OGK-6” as a sole                        significantly — from 12,711,250                          accordance with the Practical Recommendations
                                  operating company existed only in                          thousand rubles in 2006 to                               for disclosure of information on profit per share,
                                  the fourth quarter of 2006 and for                         34,886,883 thousand rubles in                            approved by Order #29n of the RF Ministry of
                                  two days of the third quarter. Net                         2007. The acid test ratio (Rat) for                      Finance dated 03.21.2000.
                                  profit for a single share of JSC “OGK-                     2007 was equal to 3.51 compared
                                  6” in 2007 was equal to 0.07 rubles2.                      to 0.27 in 2006. Liquidity


                                  For reference:
                                         Netprofit p. 190 form2
                                  ROE =           =
                                           Equity   p. 490 form1

                                           Monetaryfunds + ShorttermFI + ShorttermAR + OtherCA
                                  Ксл =
                                               Shorttermmobl. – na – futureperiodincome

                                           p. 250 form1 + p. 260 form1 + p. 240 form1 + p. 270 form1
                                       =
                                                          p. 690 form1 – p. 640 form1
    ANNUAL REPORT         2007       JSC “OGK-6”
|                     |          |


BALANCE STRUCTURE                                     COMPOSITION OF FIXED                             CONSTRUCTION IN PROGRESS
ANALYSIS                                              ASSETS                                           Construction in progress amounts
                                                      No significant changes occurred in               to 2,153,184 thousand rubles
ASSETS                                                the composition of the fixed                     (4.92% of asset value). The main
According to JSC “OGK-6”                              assets of JSC “OGK-6” in 2007.                   reason for growth of assets under
accounting records for 2007,                          According to the balance, fixed                  “Construction in Progress” for 2007
assets are valued at 43,776,391                       assets amounted 15,719,673                       (by 1,211,068 thousand rubles) is
thousand rubles. The share of                         thousand rubles.                                 the beginning of the long-term
non-circulating assets is 61.61%,                                                                      investment program.
and that of circulating assets is                     As of year end 2007, buildings and
38.39%.                                               installations at 10,732,532
                                                      thousand rubles (68.27%) and
                                                      vehicles, equipment, and
                                                      transportation at 4,939,487
                                                      thousand rubles (31.42%)
                                                      predominate in the composition
                                                      of fixed assets.




                                                                          31.12.06 |                               31.12.07 |          2007/2006    ASSETS
                                                   thousand rubles        % of total assets   thousand rubles      % of total assets           %


    NONCURRENT ASSETS:                                                        75.77%                                   61.61%
    – fixed assets                                 16,130,343                                 15,719,673                                   97.5%
    – construction in progress                        942,816                                  2,153,884                                  228.5%
    – long-term financial investments                  53,242                                  8,575,166                               16,106.0%
    – other                                           565,424                                    522,493                                   92.4%


    CURRENT ASSETS:                                                           24.23%                                   38.39%
    – reserves                                      3,176,790                                  3,323,191                                  104.6%
    – long-term accounts receivable                   501,768                                  2,626,988                                  523.5%
    – short-term accounts receivable                1,729,448                                  3,754,579                                    217.1
    – short-term financial investments                 19,686                                  6,407,827                               32,550.2%
    – monetary funds                                  143,259                                    648,427                                  452.6%
    – Other                                            86,937                                     44,163                                   50.8%




                                                                                              31.12.06 |                                31.12.07    COMPOSITION OF FIXED
                                                                     thousand rubles                      %        thousand rubles             %    ASSETS

    Buildings, installations, and relay devices                      10,986,452                     68.11          10,732,532              68.27
    Vehicles and equipment, transportation                            5,101,106                     31.62           4,939,487              31.42
    Other fixed assets                                                   42,785                      0.27              47,654               0.30

    TOTAL:                                                           16,130,343                        100        15,719,673                 100
                                                     |   ECONOMY
                                                                                                                                                                                           54 | 55


                                                      LONG-TERM AND SHORT-TERM                   obtained from placement of an
                                                      FINANCIAL INVESTMENTS                      additional issue of Company
                                                      Long-term and short-term                   shares. Of the funds obtained from
                                                      financial investments for 2007             placement of the additional share
                                                      increased by 8,521,924 thousand            issue, 8,518,420 thousand rubles
                                                      rubles and 6,388,141 thousand              were allocated to long-term
                                                      rubles, respectively, in                   deposit, and 6,401,170 thousand
                                                      comparison with 2006, due to               rubles to short-term deposit.
                                                      allocation to long-term and short-
                                                      term deposit of temporarily                As of 12.31.2006, the Company
                                                      available monetary funds                   held shares of other companies.



LONG-TERM FINANCIAL INVESTMENTS OF JSC “OGK-6” IN SHARES OF OTHER COMPANIES AS OF 12.31.2006
 NAME OF JOINT-STOCK COMPANY   NUMBER OF ORDINARY SHARES                   PAR VALUE OF SHARE PACKAGE                       BOOK VALUE OF SHARE PACKAGE              SHARE OF JSC “OGK-6”
                                                                                                  thousand rubles                                  thousand rubles      in authorized share capital, %


JSC SKV                                      29,894,981.00                                              29,895                                          30,659                                  100
JSC SP                                        1,820,901.00                                               1,821                                           1,436                                  100
JSC Novomichurinskoe ATP                     22,112,522.00                                              22,113                                          18,053                                  100
JSC Energoremstroy                            4,868,001.00                                               4,868                                           3,094                                  100

TOTAL:                                      58,696,405.00                                               58,697                                          53,242



                                                     SHARES IN THE FOLLOWING COMPANIES WERE SOLD IN 2007:
                                                      NAMES                            HARE OF JSC “OGK-6”                          BOOK VALUE                                 SELLING PRICE
                                                                                           in authorized share capital, %             thousand rubles                                 thousand rubles


                                                      JSC Energoremstroy                                            100                      3,094                                            3,656
                                                      JSC SP                                                        100                      1,436                                              910

                                                      TOTAL:                                                                                4,530                                             4,566


                                                     Sales of non-core assets and maintenance and repair companies were conducted via public offering.



LONG-TERM FINANCIAL INVESTMENTS OF JSC “OGK-6” IN SHARES OF OTHER COMPANIES AS OF 12.31.2007

 NAME OF JOINT-STOCK COMPANY   NUMBER OF ORDINARY SHARE                    SPAR VALUE OF SHARE PACKAGE                      BOOK VALUE OF SHARE PACKAGE              SHARE OF JSC “OGK-6”
                                                                                                  thousand rubles                                  thousand rubles      in authorized share capital, %


 JSC SKV                                       29,894,981                                               29,895                                          30,659                                  100
 JSC Novomichurinskoe ATP                      22,112,522                                               22,113                                          18,053                                  100

 TOTAL:                                        52,007,503                                               52,008                                          48,712
    ANNUAL REPORT        2007       JSC “OGK-6”
|                    |          |


CURRENT CAPITAL STRUCTURE                            rubles The increase in fuel                     Deferred expenses were reduced
In the structure of current assets,                  reserves was caused by the                      due to transfer of deferred
short-term financial investments                     overall increase in prices of                   expenses to other non-current
predominate at 38.13%, with                          delivered fuel, as well as a                    assets in accordance with
accounts receivable at 37.97%                        significant increase in fuel oil                accounting rules.
and reserves at 19.77%. Reserves                     reserves at Kirishskaya GRES..
as of the end of 2007 increased                      The reduction in reserves of the
by 146,401 thousand rubles;                          remaining materials became
moreover, fuel increased by                          possible due to implementation
243,114 thousand rubles, and                         of an optimization program of
other material reserves                              warehoused materials and
decreased by 96,713 thousand                         equipment (excluding fuel).


    INDICATOR                                                       31.12.2006 |                              31.12.2007 |   2007/2006           CURRENT CAPITAL STRUCTURE
                                                  thousand rubles               %           thousand rubles             %           %


    RESERVES, of which:                           3,176,790               56.15             3,323,191               19.77      104.6%
                                                                              –
    – Feedstock and materials, of which:          2,955,530               52.24             3,243,593               19.30      109.7%
        Fuel oil                                     887,472              15.69              1,439,975               8.57      162.3%
        Coal                                       1,162,604              20.55                853,370               5.08       73.4%
        Other fuel                                     3,858               0.07                  3,703               0.02       96.0%
    – Deferred expenses                             208,029                3.68                 50,668               0.30       24.4%

    Accounts receivable                            2,231,216               39.44             6,381,567               37.97      286.0%
    Short-term financial investments                  19,686                0.35             6,407,827               38.13    32550.2%
    Monetary funds                                   143,259                2.53               648,427                3.86      452.6%
    Other (VAT and other current assets)              86,937                1.54                44,163                0.26       50.8%

    TOTAL CURRENT ASSETS                          5,657,888                 100            16,805,175                 100      297.0%




CURRENT CAPITAL STRUCTURE                                                           0.4%
                                                                           2%
                                                                     3%


                                                                                           56 %                                                  38%                  20%




                                                           39%
                                                                                                                                                                38%
                                                                                                                                         0.3%
                                                                                                                                                4%

                                                     2006                                                                                2007
                                         |   ECONOMY
                                                                                                                                                            56 | 57


                                         ACCOUNTS                                     6”. As of 01.01.2008, the amount of       in the amount of advance fuel
                                         RECEIVABLE                                   advances for investment purposes          payments. Changes in the
                                         In 2007, accounts receivable                 was 3,429,120 thousand rubles, of         legislation with regard to
                                         increased by 4,150,351 thousand              which 2,228,161 thousand rubles           calculation and payment of the
                                         rubles, including advances issued,           are long-term and 1,200,959               water tax and advance tax
                                         by 3,610,669 thousand rubles, and            thousand rubles are short-term.           payments resulted in an increase
                                         other debtors, by 474,907                    Likewise, due to the change in            in budget arrears to JSC “OGK-6”,
                                         thousand rubles The increase in              payment conditions for gas                which in turn led to an increase in
                                         advances issued is due to                    supply contracts, the amount of           the other debtors item. The
                                         advance payments made under                  advance payments increased                increase in arrears for purchasers
                                         contracts for realization of major           from 30% to 50%, resulting in a           of electric power is due to a
                                         investment projects of JSC “OGK-             136,978 thousand-ruble increase           change in the payment schedule.

                                                                                                     31.12.2006 |                        31.12.2007 |   2007/2006
                                                                                   thousand rubles             %       thousand rubles             %             %


                                             BY PERIOD OF OCCURRENCE:
                                                  Long-term accounts receivable       501,768               22.49       2,626,988               41.17       523.5%
                                                  Short-term accounts receivable    1,729,448               77.51       3,754,579               58.83       217.1%

                                             TOTAL:                                 2,231,216             100.00       6,381,567              100.00       286.0%

                                             BY LINE:
                                                  Purchasers and customers          1,008,963               45.22       1,073,738               16.83       106.4%
                                                  Advances issued                     367,559               16.47       3,978,228               62.34      1082.3%
                                                  Other debtors                       854,694               38.31       1,329,601               20.84       155.6%

                                             ИТОГО:                                 2,231,216                100       6,381,567                 100       286.0%


                                         LIABILITIES                                  or 79.69% are capital and                 liabilities), and 3,095,938
                                         Total liabilities for JSC “OGK-6”            reserves, 5,793,570 thousand              thousand rubles or 7.07% are
                                         amount to 43,776,391                         rubles or 13.23% are short-               short-term liabilities (loans and
                                         thousand rubles, of which                    term liabilities (loans and credits       credits comprise 2.2% of short-
                                         34,886,883 thousand rubles                   comprise 86.3% of long-term               term liabilities).

                                                                                                     31.12.2006 |                        31.12.2007 |   2007/2006
                                                                                   thousand rubles             %       thousand rubles             %             %


                                             CAPITAL AND RESERVES                  12,711,250            54.44%       34,886,883             79.69%        274.5%

                                             LONG-TERM OBLIGATIONS
— Reserves
                                                 Loans and credits                  2,503,596             15.67%        5,000,000             13.23%        199.7%
                                                 Other                              1,155,568                             793,570                            68.7%
— Short-term financial investments
                                             SHORT-TERM OBLIGATIONS
— Other (VAT and other current assets)
                                                 Loans and credits                  4,011,745             29.89%           69,301              7.07%          1.7%
                                                 Accounts payable                   2,767,258                           2,750,280                            99.4%
— Accounts receivable
                                                 Other                                200,296                             276,357                           138.0%
— Montetary funds
                                             BALANCE CURRENCY                      23,349,713              100%       43,776,391               100%        187.5%
    ANNUAL REPORT        2007       JSC “OGK-6”
|                    |          |


In 2006, the liability structure contained a significant share (29.89%) of short-        On 12.29.200,7 the Company completed placement by open subscription of
term obligations. The greater part of the short-term obligations consisted of            an additional ordinary share issue with a nominal value of 0.48 rubles (48
loans and credits. In 2007, the company restructured its credit portfolio                kopeks) each. The total number of actually placed shares was 5,531,497,444
through replacement of short-term credits with long-term credits, resulting in           items, with an placement price of 3.80 rubles per share. As a result of the
a reduction of the share of short-term obligations in the liability structure to         additional issue, the Company’s authorized share capital increased from
7.07% as of the end of the year.                                                         12,830,909.52 thousand rubles to 15,486,028.29 thousand rubles. Added
                                                                                         capital increased from 3,807,820 thousand rubles to 22,170,905 thousand
Long-term liabilities consist of a bonded loan of JSC “OGK-6” issued in April            rubles. The share of capital and reserves in the liability structure increased from
2007 in the amount of 5,000,000 thousand rubles with a 2012 maturity date                54.44% in 2006 to 79.69% in 2007.
and an interest rate of 7.55%, and of other long-term liabilities in the amount of
793570 thousand rubles – tax and fee arrears under court examination
(533,313 thousand rubles) and deferred tax liabilities (240,254 thousand rubles).        ACCOUNTS PAYABLE
Due to reorganization through annexation of JSC power plants, a previous loss             (excluding credit and loan accounts)
in the amount of 18,568,534 thousand rubles was received in the                          Total accounts payable for JSC “OGK-6” as of the end of 2007 are 3,561,714
Company’s accounting balance for 2006, due to which the value of net assets              thousand rubles, of which long-term accounts amount to 553,313
as of the end of 2006 was 12,718,134 thousand rubles. At the same time, the              thousand rubles (15.54%) and short-term accounts to 3,008,401 thousand
amount of authorized share capital was 26,731,061 thousand rubles.                       rubles (84.46%). The bulk of accounts payable consists of liabilities to
                                                                                         suppliers and contractors of 2,026,295 thousand rubles (56.89%), tax and
The reduction in the value of the Company’s net assets was due to                        fee liabilities of 950,998 thousand rubles (26.7%), and liabilities to other
replacement of the value of shares of annexed companies appraised at market              creditors of 584,421 thousand rubles (16.41%), of which 258,089 thousand
value with the value of the property of the annexed companies, appraised at              rubles (7.25%) comprise liabilities to shareholders for payment of revenue.
book (below market) value in the Company’s accounting balance.
                                                                                         Total accounts payable of JSC “OGK-6” for 2007 decreased by 325,779
Due to the fact that at the end of 2006 the value of the Company’s net assets            thousand rubles. Accounts payable increased only for the suppliers and
became less than the amount of authorized share capital, in 2007, the                    contractors item: this growth was due to the supply of equipment in
Company reduced authorized share capital to an amount not exceeding the                  December of 2007 with payment due in 2008 as per contract.
value of net assets: 12,830,910 thousand rubles (the value of net assets as of
06.30.2007 was 13,780,117 thousand rubles).



ACCOUNTS PAYABLE

                                                                              31.12.2006 |                                           31.12.2007 |               2007/2006
                                                            thousand rubles                  %                   thousand rubles                %                             %


    BY PERIOD OF OCCURRENCE
        Long-term accounts payable                             925,592                  23.81                       553,313                  15.54                    59.8%
        Short-term accounts payable                          2,961,901                  76.19                     3,008,401                  84.46                   101.6%

    TOTAL:                                                  3,887,493                     100                     3,561,714                   100                      91.6%

    BY LINE
         Suppliers and contractors                           1,946,270                  50.06                     2,026,295                 56.89                    104.1%
         Tax and fee liabilities                             1,398,595                  35.98                       950,998                 26.70                     68.0%
         Other creditors                                       542,628                  13.96                       584,421                 16.41                    107.7%

    TOTAL:                                                  3,887,493                     100                     3,561,714                   100                      91.6%


LOANS AND CREDITS
The credit portfolio of JSC “OGK-6” as of 12.31.2007 consisted of a bond loan of 5,000,000 thousand rubles. Short-term credit liability is settled by
funds received from placement of an additional share issue.

    INDEX                                                                           31.12.06                                                                      31.12.07
                                                                                thousand rubles                                                                  thousand rubles


    Long-term credits and loans without interest arrears                            2,500,000                                                                     5,000,000
    Short-term credits and loans without interest arrears                           3,991,100                                                                             –

    TOTAL:                                                                      6,491,100                                                                        5,000,000
                         |   ECONOMY
                                                                                                                                       58 | 59


                         BALANCE STRUCTURE                      reserves increased from 54.44% to      of the long-term investment
                         As of 12.31.2007, noncurrent           79.69% and the share of short-         program, and investment of funds
                         assets, as at the beginning of the     term obligations decreased from        received from placement of an
                         year, occupied the largest share in    29.89% to 7.07% as a result of         additional share issue in short-
                         the assets balance, although their     placement of an additional share       term deposits, the share of current
                         share decreased from 75.77% to         issue. Due to payment of               assets increased from 24.23% to
                         61.61%. The share of capital and       advances on investment projects        38.39%.

                                                                                                    2006 |                             2007
                                                                           thousand rubles              %           thousand rubles       %


                         ASSETS
                             Noncurrent assets                              17,691,825              75.77           26,971,216         61.61
                             Current assets                                  5,657,888              24.23           16,805,175         38.39
                         TOTAL                                             23,349,713                100           43,776,391           100

                         LIABILITIES
                             Capital and reserves                           12,711,250              54.44           34,886,883         79.69
                             Long-term obligations                           3,659,164              15.67            5,793,570         13.23
                             Short-term obligations                          6,979,299              29.89            3,095,938          7.07
                         TOTAL                                             23,349,713                100           43,776,391           100




ASSETS 2006, 2007        100
                                                                                                             — Noncurrent assets

                                                               24.23%                   38.39%               — Current assets




                                                               75.77%                   61.61%




                             0
                                                        2006                 2007

LIABILITIES 2006, 2007   100                                   29.89%                    38.39%              — Capital and reserves

                                                                                         61.61%              — Long-term obligations

                                                                                                             — Short-term obligation
                                                               15.67%


                                                               54.44%                    79.69%




                             0
                                                        2006                 2007
Taipei 101
IN 2007, THE VOLUME OF ELECTRIC ENERGY SOLD REACHED 39 BLN KWH.
THIS ENERGY IS ENOUGH TO OPERATE TAIPEI 101, THE WORLD’S LARGEST
BUSINESS CENTER, FOR 450 YEARS.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                                           60 | 61




                                       5         SALES OF ELECTRIC POWER
                                                 AND HEAT
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



5. ELECTRIC POWER
AND HEAT SALES

I. INFORMATION ON THE ELECTRIC                                              1.1 ELECTRIC POWER (OUTPUT) TRADE AT REGULATED PRICES
POWER MARKET STRUCTURE                                                      (RATES) on the basis of regulated electric power and output purchase
                                                                            and sale contracts — the regulated contract (RC) market.
The primary market for sales of the products of the Company’s
subsidiaries is the wholesale electric power (output) market.               The regulated contract (RC) market functions based on the following
                                                                            principles:
The wholesale electric power and output market (hereinafter called the
market or WPM) is the placement chain for a particular product: electric    » Two products are sold (purchased) as per regulated contracts
power in the context of the Unified Energy System of Russia. Wholesale        concluded: electric power and output.
market participants are major producers and purchasers of electric          » The supplier is obligated to supply the contracted volume of electric
power that have obtained the status of wholesale market entities and          power (output) or (for electric power only) to purchase the same on
act on the basis of the wholesale market rules.                               the market at competitive prices on the day-ahead market or
                                                                              through free bilateral contracts. The purchaser is obligated to pay for
The wholesale electric power and output market consists of a system of        the contracted volume independent of the amount of their own
contract relations among the totality of its participants/entities, which     consumption.
are interconnected by a unified process of the generation, transmission,    » The price for electric power and output according to each regulated
placement, and consumption of electric power in the Unified Energy            contract is established as being equal to the supplier’s rates for
System of Russia (UES of Russia). Wholesale market entities are               electric power and output.
companies conducting purchase and sale of electric power (output)           » All RC payments are made through the Non-banking Credit
and/or providing infrastructure services on the wholesale market (system      Company RTS Settlement Chamber.
operator JSC SO-CDU UES and the federal network company JSC FSK
UES). Responsibility for purchase and sale of electric power on the         Subsequently, this market segment will diminish annually due to
wholesale market is borne by the Noncommercial Partnership Trade            increased volumes of electric power supplied as per free long-term
System Administrator of the Wholesale Electric Power Market, NP ATS,        contracts, and of the competitive market (liberalization of the electric
established in accordance with the Federal Law “On the Electric Power       power market).
Industry”. The settlement system between WES participants is supported
by a clearing company established by NP ATS – ZAO Financial Accounts
Center. In 2007, in accordance with the new wholesale electric power
and output market rules effective as of September 1, 2006 (NWEPM)
(Order №529 of the Government of the Russian Federation dated August
31, 2006), trade in electric power and output on the wholesale market
was conducted using the following mechanisms:
|   SALES OF ELECTRIC POWER AND HEAT
                                                                                                                                                 62 | 63




1.2. TRADE OF ELECTRIC POWER (OUTPUT) AT FREE (NON-                           1. 3. TRADE OF ELECTRIC POWER AT FREE (NON-REGULATED)
REGULATED) PRICES, determined through competitive selection of bids           PRICES DETERMINED BY COMPETITIVE SELECTION of bids of
by purchasers and suppliers, is conducted twenty-four hours before            suppliers and participants with regulated consumption, conducted not
commencement of supply — the day-ahead market (DAM).                          later than one hour prior to supply of the electric power for the purposes
                                                                              of forming a balanced electric power generation and consumption
The primary day-ahead market is the competitive bid selection                 schedule — the balancing market (BM).
conducted by NP ATS twenty-four hours before, with determination of
hourly fixed-ratio nodal prices and supply (purchase) volumes.                This is the market on which bids for current generation or consumption
                                                                              are traded one hour before actual generation (consumption). The
On the DAM and in free bilateral contracts (FBC), the sale (purchase) of      differences in actual generation/consumption volumes from those
electric power is conducted on the following principles:                      planned as per the results of DAM trading are tendered.

» “Surplus volumes of electric power as per RCs are sold, and missing
  volumes needed to fulfill RC obligations are bought ;

» In order to participate in the DAM and ensure ulfillment of
  obligations under RCs and FBCs concluded, participants tender all
  the volumes of electric power that they plan to generate (purchase)
  at each hour of the following day. On the basis of the results of the
  competitive bidding for the day ahead, the System Operator plans
  the electric power schedules and operating schedules of suppliers
  and purchasers of electric power.




GROWTH RATES OF ELECTRIC POWER SALES AT NON-REGULATED STATE PRICES
IN ACCORDANCE WITH THE RESOLUTION OF THE RF GOVERNMENT DATED 11.30.2006

100




                        5%             10%          15%          25%          30%          50%            60%           80%            100%

    0
                           01.01.07      01.07.07     01.01.08     01.07.08     01.01.09       01.07.09      01.01.10       01.07.10      01.01.11
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


II. SYSTEM OF AGREEMENTS OF THE COMPANY IN                                 III. ELECTRIC POWER SUPPLY
THE WHOLESALE ELECTRICITY AND ELECTRICITY                                  TO THE WHOLESALE AND REGIONAL MARKET
CAPACITY MARKET
                                                                           3.1. PHYSICAL INDICATORS
Between January 1, 2007, and December 31, 2007, the Company
concluded 397 regulated electricity and electricity capacity purchase      The total volume of electric power sales for 2007 was 38,989 million kWh,
and sale agreements with 103 contracting parties.                          including 38,011 million kWh (of which 31 058 million kWh was in-
                                                                           house electric power) sold on the wholesale market and 978 million kWh
Sale of electric power on competitive market sectors (DAM and BM) is       on the regional market. Total sales volumes of in-house electric power on
conducted as per two commission contracts, and purchase — as per           the wholesale market in 2007 increased by 1 138 million kWh (or 3.8%)
two purchase and sale contracts. These contracts are concluded with a      compared to 2006. Sales volumes on the retail market remained at
unified party — ZAO CFR.                                                   practically the same level.

Payment for services to infrastructure companies of the wholesale          On the wholesale electric power (output) market sales of both in-house
market — NP ATS and JSC SO-CDU UES — are confirmed by Orders of            (generated) electric power and purchased electric power are conducted
the FTS of Russia; payment for the comprehensive services of ZAO CFR is    on the day-ahead market and the balancing market.
confirmed by the NP ATS Supervisory Board.

The procedure for calculating the amount of payment for services of NP
ATS and ZAO CFR, as well as the procedure for paying for these services,
is established by provisions of the current contract of accession of JSC
“OGK-6” to the wholesale market trade system.

The procedure for calculating the amount of payment for services and
the procedure for paying for services of JSC SO-CDU UES are established
by provisions of the current contract for paid rendering of operational-
dispatching services in the electric power industry concluded by JSC SO-
CDU UES with JSC “OGK-6”.




    NAME OF CONTRACTING PARTY                                              SHARE IN TOTAL RC VOLUME JSC “OGK-6”     LARGEST
                                                                                                                    CONTRACTING PARTIES
    JSC Mosenergosbyt                                                                                    16.0%
    JSC Krasnoyarskenergosbyt                                                                             8.9%
    JSC Petersburg Sales Company                                                                          7.5%
    JSC Kolskaya Energy Sales Company                                                                     7.4%
    JSC Vologodskaya Sales Company                                                                        6.2%
    JSC Kuzbasskaya Energy Sales Company                                                                  6.0%
    JSC Belgorodskaya Sales Company                                                                       5.6%
    Limited Liability Company Donenergosbyt                                                               3.4%
    JSC Voronezhskaya Energy Sales Company                                                                3.4%
    JSC Karelskaya Energy Sales Company                                                                   3.2%
|   SALES OF ELECTRIC POWER AND HEAT
                                                                                                                                                                                                      64 | 65


ELECTRIC POWER SALES ON THE WHOLESALE AND RETAIL MARKETS FOR 2006–2007, MILLION KWH
    PLANT NAME |                                                                  ELECTRIC POWER SALES, 2006 |                                                                ELECTRIC POWER SALES, 2007

                                            TOTAL     ON THE WHOLESALE MARKET              ON THE RETAIL MARKET                            TOTAL      ON THE WHOLESALE MARKET            ON THE RETAIL MARKET

    Ryazanskaya GRES                        7,758                         7,755                               3                            8,915                          8,913                                2
    Novocherkasskaya GRES                   8,773                         8,773                               –                            9,888                          9,888                                –
    Kirishskaya GRES                        7,660                         6,731                             929                            8,779                          7,805                              974
    Krasnoyarskaya GRES-2                   3,736                         3,736                               –                            5,868                          5,868                                –
    Cherepovetskaya GRES                    3,120                         3,120                               –                            3,564                          3,564                                –
    GRES-24                                 1,725                         1,724                               1                            1,975                          1,973                                2

    TOTAL FOR OGK-6                       32,771                        31,838                             933                           38,989                          38,011                          978




ACTUAL STRUCTURE OF ELECTRIC POWER SALES BY JSC “OGK-6” PLANTS ON THE WHOLESALE MARKET FOR 2006–2007, MILLION KWH

PLANT NAME |                                                                      ELECTRIC POWER SALES, 2006 |                                                                ELECTRIC POWER SALES, 2007

                                           TOTAL                  IN-HOUSE EP                 PURCHASED EP*                     TOTAL EP SALES                    IN-HOUSE EP                PURCHASED EP

Ryazanskaya GRES                           7,755                          7,374                            381                            8,913                           7,839                        1,074
Novocherkasskaya GRES                      8,773                          8,559                            214                            9,888                           8,834                        1,054
Kirishskaya GRES                           6,731                          5,954                            776                            7,805                           5,251                        2,555
Krasnoyarskaya GRES-2                      3,736                          3,358                            378                            5,868                           4,242                        1,626
Cherepovetskaya GRES                       3,120                          3,012                            108                            3,564                           3,155                          409
GRES-24                                    1,724                          1,662                             62                            1,973                           1,738                          235

TOTAL FOR OGK-6                          31,838                         29,920                           1,919                          38,011                          31,058                         6,953

* Purchase of electric power as per purchase and sale agreements began September 1, 2006, with the entry into force of the new wholesale electric power and output market rules (NWEPM), approved by order
  #529 of the Government of the Russian Federation dated August 31, 2006. Prior to this, only electric power sales were conducted on the wholesale market.




STRUCTURE OF ELECTRIC POWER
SALES FOR 2006–2007
                                                                                        6%       94%                                                                         18%      82%


         — PURCHASED EL. POWER

         — OWNED EL. POWER




                                                                   2006                                                                                  2007
    ANNUAL REPORT          2007       JSC “OGK-6”
|                      |          |


                                                                                                                                                                          ELECTRIC POWER SALES STRUCTURE
                                                                                                                                                                          ON THE WHOLESALE MARKET BY SECTOR
                            5%         85%                                                                                 5%       80%                                   FOR 2006–2007
                10%                                                                                           15%
                                                                                                                                                                                  — RC

                                                                                                                                                                                  — DAM

                                                                                                                                                                                  — BM




2006                                                                                               2007




VOLUMES OF ELECTRIC POWER SALES ON THE WHOLESALE MARKET BY SECTOR FOR 2006–2007, MILLION KWH
    PLANT NAME |                                                                                                               2006 |                                                                                                2007

                                             TOTAL EP SALES                 RS/RC               FTS/DAM                     DS/BM         TOTAL EP SALES                            RC                      DAM                        BM

    Ryazanskaya GRES                                     7,755               6,485                     854                      416                    8,913                     7,036                     1,361                       516
    Novocherkasskaya GRES                                8,773               7,569                   1,012                      192                    9,888                     8,645                     1,090                       153
    Kirishskaya GRES                                     6,731               5,931                     209                      590                    7,805                     6,272                       812                       721
    Krasnoyarskaya GRES-2                                3,736               3,423                     211                      101                    5,868                     4,762                       958                       148
    Cherepovetskaya GRES                                 3,120               2,352                     528                      240                    3,564                     2,382                       921                       261
    GRES-24                                              1,724               1,350                     276                       98                    1,973                     1,423                       486                        64

    TOTAL FOR OGK-6                                    31,838               27,110                   3,091                   1,637                   38,011                    30,521                      5,628                    1,862

    Before the new wholesale electric power (output) market began to function (NWEPM, on September 1, 2006), trade in electric power and output was conducted in the regulated sector (RS), the free trade sector (FTS), and the
    divergences sector (DS). After the NWEPM was launched, the regulated sector was transformed into a market of bilateral regulated contracts (RC), the free trade sector into a day-ahead market (DAM), and the divergences sector into the
    balancing market (BM).


The basic strategy for formulating                      » price indicators formed on the                       The specified strategy minimizes
bids for participation in the day-                        day-ahead market and the                             forced sale of electric power on
ahead market under NWEPM                                  balanced electric power                              the DAM at prices below
conditions in 2007 considers both                         market;                                              conventional costs and takes into
the technical and technological                         » plant operating schedule;                            account the economic efficiency
specifics of each plant,                                » forecast of regional electric                        of sales of in-house or purchased
competitiveness of the plants,                            power consumption;                                   electric power (whether or not it is
volumes of electric power                               » planned fuel costs;                                  more profitable to generate in-
supplied as per regulated                               » system limitations influencing                       house EP or replace in-house
contracts, and the following                              plant operation;                                     generation with purchased
factors:                                                » repair schedule and forecast of                      electric power).
                                                          operation of competing plants;
                                                        » seasonal conditions.
                                                                    |   SALES OF ELECTRIC POWER AND HEAT
                                                                                                                                                                                                          66 | 67


ELECTRIC POWER SALES STRUCTURE
BY SECTOR FOR 2006-2007                                                                                                                                                         19%      81%
                                                                                         25%      75%


      — DAM

      — BM




                                                                    2006                                                                                   2007




VOLUMES OF ELECTRIC POWER SALES ON THE WHOLESALE MARKET BY SECTOR FOR 2006–2007, MILLION KWH
PLANT NAME |                                                                                                   2006 |                                                                                       2007

                                    TOTAL EP SALES                          FTS/DAM                          DS/BM                 TOTAL EP SALES                             DAM                            BM

Ryazanskaya GRES                                 381                              241                            140                           1,074                            637                          438
Novocherkasskaya GRES                            214                              167                             47                           1,054                            897                          157
Kirishskaya GRES                                 776                              574                            203                           2,555                          2,230                          324
Krasnoyarskaya GRES-2                            378                              367                             11                           1,626                          1,501                          126
Cherepovetskaya GRES                             108                               65                             42                             409                            231                          178
GRES-24                                           62                               34                             28                             235                            131                          103

TOTAL FOR OGK-6                                1,919                            1,448                           470                           6,953                          5,626                         1,326

Purchasing of electric power as per purchase and sale agreements began September 1, 2006 with the entry into force of the new wholesale electricity and electricity capacity market rules (NWEPM), approved by
order №529 of the Government of the Russian Federation dated August 31, 2006. Prior to this, only electric power sales were conducted on the wholesale market.
    ANNUAL REPORT          2007       JSC “OGK-6”
|                      |          |


3.2. PRICE INDEXES                                         Rates for production of electric
                                                           power are established annually by
                                                           order of the FTS on the basis of
                                                           Order №109 of the RF
                                                           Government “Concerning price
                                                           setting in relation to electrical and
                                                           heat in the RF”.


DYNAMICS OF RATE CHANGES FOR ELECTRICITY AND ELECTRICITY CAPACITY

    NAME OF POWER PLANT |                                                       2006 |                                           2007 |                                                                                                            2008*

                                                       BASE RATE            BASE RATE              BASE RATE                 BASE RATE                   BASE RATE                                           BASE RATE FOR OUTPUT, THERMAL OUTPUT,
                                                      FOR EP, TEP         FOR OUTPUT,              FOR EP, TEP             FOR OUTPUT,                   FOR EP, TEP
                                                                      THERMAL OUTPUT                                  THERMAL OUTPUT                                                AVERAGE                 JANUARY – JUNE                JULY – DECEMBER


                                                        rub./MWhr      rub./MWhr per mo.             rub./MWhr          rub./MWhr per mo.                    rub./MWhr      rub./MWhr per mo.               rub./MWhr per mo.              rub./MWhr per mo.


    Ryazanskaya GRES                                     585.52           72,889.66                  606.69                78,972.44                         679.97            83,088.41                       78,136.44                      88,040.38
    Novocherkasskaya GRES                                524.94          100,470.68                  556.38                99,959.15                         621.56           108,559.17                      102,089.17                     115,029.17
    Kirishskaya GRES                                     619.63           65,210.70                  781.19                74,568.28                         822.31            81,235.10                       76,393.58                      86,076.62
    Krasnoyarskaya GRES-2                                324.38           91,832.36                  304.17               108,381.93                         313.06           116,681.09                      109,727.03                     123,635.15
    Cherepovetskaya GRES                                 538.90           97,607.26                  547.83               120,776.64                         635.51           129,681.72                      121,952.84                     137,410.60
    GRES-24                                              484.20          129,908.53                  484.25               144,676.70                         621.30           156,930.34                      147,577.47                     166,283.20


    * Rates for 2008 are established by order № 535-e/2 of FTS of Russia dated December 25, 2007, “On rates for electric power (output) sold on the wholesale market by contract in the context of extreme (minimum and maximum) sales
      volumes of electric power (output) at regulated prices (rates)”.

The table below presents the average delivery prices for electric power inclusive of output, average delivery
prices for electric power exclusive of output, and prices for sale and purchase of electric power (output)
individually by wholesale market sector.

ACTUAL AVERAGE DELIVERY PRICES* BY WHOLESALE MARKET SECTOR FOR 2007, RUB./MWH

    PLANT NAME |                                                                2006 |                                    REGULATED CONTRACTS |                                DAY-AHEAD MARKET |                               BALANCING MARKET

                                              PRICE OF EP INCLUSIVE     ACTUAL AVERAGE                                                             OUTPUT                                 WITH ALLOWANCE                                     WITH ALLOWANCE
                                                OF OUTPUT FOR THE        TRANSFER PRICE                                                     WITH ALLOWANCE                          FOR VALUE ADJUSTMENTS                               FOR VALUE ADJUSTMENTS
                                                       WHOLESALE           OF EP FOR THE                                            FOR VALUE ADJUSTMENTS
                                                           MARKET           WHOLESALE
                                                          OVERALL               MARKET                     EP                SALE              PURCHASE**                    SALE               PURCHASE                         SALE             PURCHASE


    Ryazanskaya GRES                                         955                   641                   607            78,650                         1                    718                     517                         623                    494
    Novocherkasskaya GRES                                    852                   571                   556            99,550                    55,704                    619                     514                         558                    433
    Kirishskaya GRES                                       1,194                   876                   781            74,265                    75,784                    689                     554                         799                    618
    Krasnoyarskaya GRES-2                                    732                   358                   304           108,144                    94,595                    388                     169                         251                    681
    Cherepovetskaya GRES                                     865                   584                   548           120,279                    80,672                    655                     524                         582                    544
    GRES-24                                                  844                   539                   484           144,086                    12,433                    633                     468                         547                    325


    * Prices are the average weighted prices for sale (purchase) of electric power (output) calculated as the cost of the sale (purchase) of EP (output) divided by the respective volumes. Moreover, the actual cost is indicated, i.e., includes
      both the direct cost of the sale (purchase) of EP (output) as per bidding results and cost adjustment. Cost adjustment on the DAM is made in accordance with par. 80 of Order №529 of the RF Government “On improving the procedure
      for the functioning of the wholesale electric power (output) market”. Cost adjustment on the BM is in accordance with par. 9.1 of the Regulation for determining volumes, initiatives, and cost divergence.

 ** Purchase of output occurs in the event of actual maximum consumption exceeding the normative maximum consumption in accordance with par. 2.2 of the Regulation for determining the values of differences in actual obligations
    from planned obligations for purchase of output.
|   SALES OF ELECTRIC POWER AND HEAT
                                                                                                                                                                                                                                  68 | 69


3.3. VALUE
INDICATORS




ACTUAL VALUE OF ELECTRICITY AND ELECTRICITY CAPACITY SALES ON THE WHOLESALE MARKET FOR 2006, MILLION RUB. (EXCLUDING VAT)

PLANT NAME                                                                                    RS/RC*                              FTS/DAM*                                  DS/BM*                                                 TOTAL

                                                              EP                              OUTPUT                                       EP                                      EP                   VALUE OF EP AND OUTPUT SALES

Ryazanskaya GRES                                           3,797                                 2,082                                    481                                    338                                                6,699
Novocherkasskaya GRES                                      3,973                                 2,292                                    549                                    143                                                6,956
Kirishskaya GRES                                           3,675                                 1,478                                    120                                    577                                                5,849
Krasnoyarskaya GRES-2                                      1,110                                 1,332                                     68                                     28                                                2,538
Cherepovetskaya GRES                                       1,267                                   664                                    285                                    159                                                2,376
GRES-24                                                      654                                   430                                    157                                     78                                                1,318

TOTAL FOR OGK-6                                          14,477                                 8,277                                  1,659                                   1,322                                              25,736

    * Before the new wholesale electric power (output) market began to function (NWEPM, on September 1, 2006), trade in electric power and output was conducted in the regulated sector (RC), the free trade sector (FTS), and the
      divergences sector (DS). After the NWEPM was launched, the regulated sector was transformed into a market of bilateral regulated contracts (RC), the free trade sector into a day-ahead market (DAM), and the divergences sector into
      the balancing market (BM).




ACTUAL VALUE OF ELECTRICITY AND ELECTRICITY CAPACITY SALES ON THE WHOLESALE MARKET FOR 2007, MILLION RUB. (EXCLUDING VAT)

PLANT NAME                                                                                    RS/RC*                              FTS/DAM*                                  DS/BM*                                                 TOTAL

                                                              EP                              OUTPUT                                       EP                                      EP                   VALUE OF EP AND OUTPUT SALES

Ryazanskaya GRES                                           4,269                                 2,467                                    977                                    321                                                8,035
Novocherkasskaya GRES                                      4,810                                 2,486                                    675                                     85                                                8,056
Kirishskaya GRES                                           4,899                                 1,837                                    560                                    576                                                7,872
Krasnoyarskaya GRES-2                                      1,449                                 1,603                                    371                                     37                                                3,461
Cherepovetskaya GRES                                       1,305                                   898                                    603                                    152                                                2,958
GRES-24                                                      689                                   530                                    308                                     35                                                1,562

TOTAL FOR OGK-6                                          17,422                                 9,822                                  3,494                                   1,206                                              31,944

                                                                                                                                                        4%                                                             31%
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




STRUCTURE OF EARNINGS FROM ELECTRICITY
AND ELECTRICITY CAPACITY SALES ON THE
WHOLESALE MARKET FOR 2006–2007


                                                              5%   32%                                                          4%
                                                         6%                                                               11%           31%
                                                   57%
         — RC (output)
                                                                                                               54%
         — RC (el. power)

         — DAM (el. power)

         — BM (el. power)




                                                 2006                                                         2007




3.4. OPERATING EFFICIENCY ON THE WHOLESALE MARKET                              As a result, in the first quarter of 2006 under low DAM pricing conditions
                                                                               the strategy was primarily directed towards replacement of in-house
Since the approval of the new wholesale electric power and output              generation with electric power purchased on the wholesale market to
market rules, new opportunities for earning additional income                  ensure RC volumes. For subsidiaries GRES-24 and Cherepovetskaya GRES,
depending on the chosen wholesale market operating strategy have               where the System Operator increased generation beyond planned
appeared.                                                                      indicators, the strategy was based on obtaining maximum profit from
                                                                               the sale of electric power at free prices.
Several base models were developed in the Company for behavior on
the competitive market, depending on various external conditions and           In the second half of 2007, under conditions of significant price increases
the composition of equipment selected by the System Operator to                on the wholesale market, the strategy for wholesale market participation
operate at the plants.                                                         was changed for JSC “OGK-6” plants with consideration of the economic
                                                                               expediency of increasing electric power sales on the DAM.
In addition, the effectiveness of the selected strategy is analyzed daily in
JSC “OGK-6” and promptly adjusted for the results of an appraisal of the       Thus, in 2007, as a result of the effectiveness of the applied strategy, the
following information:                                                         Company obtained additional income from selling electric power on the
» results of plant participation on the wholesale market for previous          wholesale market at prices higher than the electric power rates
    periods;                                                                   confirmed by FTS of Russia, in the amount of 1,327, million rubles
» values of the planned fuel factor in the production cost of electric         exclusive of VAT.
    power, calculated using a software system;
» allowance for the requirements of the antimonopoly system;
» elasticity of supply and demand on the wholesale market.
                                                          |   SALES OF ELECTRIC POWER AND HEAT
                                                                                                                                                                                                          70 | 71




                                                                                5%                                                                                             5%
                                                                         9%                                                                                        9%
      — RGRES
                                                              10%                                           26%                                         11%                                                25%
      — NchGRES

      — KiGRES

      — KGRES-2
                                                                                                      27%                                                        25%                            25%
      — ChGRES                                                           23%

      — GRES-24

                                                          2006                                                                                        2007




ADDITIONAL INCOME FROM THE SALE OF ELECTRIC POWER ON THE WHOLESALE MARKET
IN COMPARISON WITH ELECTRIC POWER RATES CONFIRMED BY FTS OF RUSSIA FOR 2007

PLANT NAME |

                                                  ACTUAL ELECTRIC POWER SALES ON THE WHOLESALE MARKET
                        VOLUME OF IN-HOUSE EP       AVERAGE WEIGHTED PRICE                      VALUE                 EP RATE                COST             ADDITIONAL INCOME               ADDITIONAL INCOME
                                                                                                                  CONF. BY FTS   OF SUPPLY FOR TEP              FROM REALIZATION                FROM REALIZATION
                                                                                                                                                        OF EP ON THE WPM (EXC. VAT)     OF EP ON THE WPM (EXC. VAT)
                                    million kWh                     rub./MWh                 million rub.            rub./MWh             млн. руб.                      million rub.                    million rub.
1                                            2                   3=4/2                                4                     5          6=2*5                           7=4–6                        8 = 7 * VAT

Ryazanskaya GRES                       7,839                        640.74                      5,022                 606.69               4,756                               267                             315
Novocherkasskaya GRES                  8,834                        570.61                      5,041                 556.38               4,915                               126                             148
Kirishskaya GRES                       5,251                        875.93                      4,599                 781.19               4,102                               497                             587
Krasnoyarskaya GRES-2                  4,242                        357.91                      1,518                 304.17               1,290                               228                             269
Cherepovetskaya GRES                   3,155                        583.91                      1,842                 547.83               1,728                               114                             134
GRES-24                                1,738                        538.94                        937                 484.25                 842                                95                             112

TOTAL FOR OGK-6                      31,058                                                  18,960                                       17,633                           1,327                           1,566
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


IV. HEAT SUPPLY




The primary line of activity of                    In the course of 2007, as per heat
subsidiaries on the heat market is                 supply agreements, JSC “OGK-6”
the supply of heat to businesses                   subsidiaries supplied 4,165.5                                                 VOLUME OF PRODUCTIVE SUPPLY OF
and the housing and utilities                      thousand Gcal of heat. All                                                    THERMAL POWER BY OPEN JOINT-STOCK
sector (HUS). In addition, it should               contract obligations were met in                                              COMPANY OGK-6 ELECTRIC POWER PLANTS
be noted that Novocherkasskaya                     accordance with the contract                                                  FOR 2006, GCAL
GRES, Cherepovetskaya GRES, and                    conditions, without disruptions in
Ryazanskaya GRES direct over 85%                   the supply schedule or the heat
of heat to HUS consumers.                          transfer medium.

Subsidiaries sell heat through
three types of agreements:
» supply of hot water for
    heating;
» supply of hot water for
    domestic needs;
» supply of heat in the form of
    steam for process needs of
    businesses.




USABLE SUPPLY AND STRUCTURE OF HEAT CONSUMERS IN 2006–2007, IN THOUSAND GCAL

    PLANT NAME |                                                                                        2006 |                                                                2007

                                                     HEAT     SHARE OF HUS   SHARE OF INDUSTRIAL   SHARE OF OTHER       HEAT      SHARE OF HUS   SHARE OF INDUSTRIAL   SHARE OF OTHER
                                                  SUPPLIED      BUSINESSES          ENTERPRISES       CONSUMERS      SUPPLIED       BUSINESSES          ENTERPRISES       CONSUMERS
                                                    Gcal/yr             %                     %                %       Gcal/yr              %                     %                %


    Ryazanskaya GRES                               231.7           92.48                     –            47.52       186.0             3.06                     –            16.94
    Novocherkasskaya GRES                          115.2            2.72                   5.1             2.18        93.6             1.88                  6.83             1.29
    Kirishskaya GRES                             2,705.5           20.43                 76.15             3.42     2,632.5            20.02                 76.99            -2.99
    Krasnoyarskaya GRES-2                        1,262.8            8.85                  0.26             0.89     1,156.3             9.43                  0.43             0.14
    Cherepovetskaya GRES                           107.1           80.41                  7.64            11.95        97.1            78.69                  3.09            18.22

    TOTAL                                        4,422.4          52.08                 46.29              1.63     4,165.5           47.84                   49.0             3.16
            |   SALES OF ELECTRIC POWER AND HEAT
                                                                                                                                          72 | 73




                                  115.2                                                                                  93.6
— RGRES                   231.7                                                                                  186.0
                  107.1                                                                                      97.1
— NchGRES

— KiGRES
            1,262.8                                                                                 1,156.3
— KGRES-2

— ChGRES



                                                 2,705.5                                                                        2,632.5




            2006                                                                                   2007




            DYNAMICS OF RATE CHANGE FOR HEAT, IN RUB./GCAL

            PLANT NAME |                                      2006*                                 2007*                             2008**

            Ryazanskaya GRES                                  208.67                                306.54                                424.24
            Novocherkasskaya GRES                             451.60                                480.01                                571.06
            Kirishskaya GRES                                  497.49                                505.55                                550.82
            Krasnoyarskaya GRES-2                             268.00                                292.68                                315.31
            Cherepovetskaya GRES                              420.43                                450.74                                519.80

            TOTAL FOR OGK-6                                  415.42                                431.75                                 476.55

             * Actual average rates.
            ** Rates for 2008 are confirmed by orders of the REC and averaged by consumer group.
Formula 1
THE COMBINATION OF SEVERAL KEY FACTORS IS NEEDED TO WIN
FORMULA-1: EXCEPTIONAL PERFORMANCE OF A BOLIDE, PROFESSIONAL
PILOTS, EFFICIENT TEAMWORK OF PERSONNEL, AND THE RIGHT RACE
STRATEGY. THESE FACTORS ARE CHARACTERISTIC OF OUR COMPANY
AND WILL FACILITATE ITS CAPITALIZATION.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                                     74 | 75




                                       6         SECURITIES
                                                 AND SHARE CAPITAL
    ANNUAL REPORT        2007        JSC “OGK-6”
|                    |           |



6. SECURITIES
AND SHARE CAPITAL

I. STRUCTURE OF COMPANY
SHARE CAPITAL



                                                                                                                                                1.08%
As of 12.31.2007, the Company’s                    The Russian Federation owns no         CHANGES IN THE STRUCTURE                   5.44%
authorized share capital amounted                  shares in JSC “OGK-6”. Subjects of     OF SHARE CAPITAL FOR 2007
to 15,486,028,289.2 rubles and                     the Russian Federation own 662         On 12.29.2007, the placement of
was divided into 32,262,558,936                    shares (0.00000205%). Vologda          an additional share issue of JSC
ordinary registered shares with a                  Region, represented by the             “OGK-6” by open subscription was
par value of 0.48 rubles (48                       Vologda Region Department of           completed (state registration
kopeks) each. The Company did                      Property Relations, owns 221           number 1-02-65106-D-001D dated
not issue any preferred shares.                    shares (0.000000685%). Moscow          09.18.2007). The total number of
                                                   Region, represented by the             actually placed shares was
As of 12.31.2007, 19,995 entities                  Moscow Region Ministry of              5,531,497,444, including                                        93.48%
were registered in the JSC “OGK-6”                 Property Relations, owns 441           5,526,000,000 shares acquired by
register, of which 19,883 were private             shares (0.000001366%).                 ZAO Gazenergoprom-Invest.
individuals, 89 were legal entities, and           With the exception of JSC RAO UES      Changes in the Company Articles
23 were nominee holders. The                       of Russia and ZAO                      of Association on increasing         31.12.2006
Company’ s principal shareholders are              Gazenergoprom-Invest, no               authorized capital stock were
JSC RAO UES of Russia, which owns                  shareholders own five or more          registered by the FTS Inspectorate
77.45% of the authorized share                     percent of the authorized share        for Leninsky District, Rostov-on-                    0.73%
capital (24,988,320,973 shares) and                capital.                               Don on February 21, 2008.                   4.69%
ZAO Gazenergoprom-Invest, which
owns 17.13% of the authorized share
capital (5,526,000,000 shares).                                                                                                  17.13%
Minority shareholders own 5.42% of
the Company’s authorized share
capital.


                                                                                                                                                          77.45%
    SHAREHOLDERS                                                                                          NUMBER OF SHARES
                                                                                  items                                   %


    Private individual                                                     234,310,553                              0.726%
    Legal entities                                                           4,638,901                              0.014%     31.12.2007
    Nominee holders                                                     32,023,525,418                             99.259%
    Personal account of issuer                                                  84,064                             <0.001%

    TOTAL SHARES                                                      32,262,558,936                               100.000%         — JSC RAO UES of Russia

                                                                                                                                    — Other physical entities and nominee holders

                                                                                                                                    — Physical entities

                                                                                                                                    — ZAO Gazenergoprom-Invest
                                                                                                 |   SECURITIES AND SHARE CAPITAL
                                                                                                                                                                           76 | 77


                                                                                                     II. INFORMATION ON THE COMPANY’S ISSUE OF
                                                                                                     SECURITIES AND RESULTS OF TRADING SECURITIES




STRUCTURE OF JSC “OGK-6”                                   REORGANIZATION                            SHARES                                    Additional share issue
SHARE EQUITY UPON CONCLUSION                               OF JSC “OGK-6” IN 2008                    Two share issues were registered          placed by open subscription
OF REORGANIZATION IN JULY OF 2008                          09.11.2007 Внеочередное общее             with the Company in 2007.                 On September 28, 2007, FFMS of
                                                           On 9.11.2007 an Extraordinary                                                       Russia registered an additional
                                                           General Shareholders’ Meeting             Share issue placed through                share issue, state registration
                                                           decided to reorganize JSC “OGK-6”         share conversion                          number 1-02-65106-D-001D
                                                           by annexing JSC “OGK-6” Holding,          In May 2007, the Federal Financial        (decision to issue and prospectus),
                                                           which was created by separating it        Market Service registered an issue of     placed by open subscription.
                                                           from JSC RAO UES of Russia. The           JSC “OGK-6” shares and a prospectus
         17.13%                                            proposed date for conclusion of           of securities having a lesser par value   On December 12, 2007 the
                           42.91%
                                                           the reorganization is July 1, 2008.       for the purposes of converting JSC        Company published an invitation
                                                           JSC “OGK-6” shares belonging to           “OGK-6” shares to the latter (state       for proposals/offers to acquire the
         5.42%                                             JSC RAO UES of Russia will be             registration number 1-02-65106-D)         additional share issue. Offers were
9.60%                                                      distributed among shareholders of         of the same category/type. Share          received by the broker from
                                                           JSC RAO UES of Russia.                    placement by conversion occurred          December 12 to 17, 2007 (four
                                                                                                     on 05.22.2007. On June 7, 2007,           business days).
                                                           In accordance with the separation         FFMS of Russia registered a report on
          24.94%                                           balance of JSC RAO UES of Russia,         the results of the issue, and on June     At the end of the bidding the
                                                           JSC Centrenergoholding, which is          21, 2007, a change was registered in      Board of Directors established the
                                                           affiliated with JSC Gazprom, will         the Articles of Association of JSC        price for placement of the
                                                           receive 13,845 million shares of          “OGK-6” related to decreasing the         additional share issue, including
        — JSC Centrenergoholding (JSC Gazprom)             JSC “OGK-6” (or 42.91% of the             Company’s authorized share capital.       shares placed in the process of
                                                           authorized share capital) in the          As a result of the conversion of JSC      exercising preemptive rights, as
        — Minority shareholders of JSC RAO UES of Russia   context of reorganization, which          “OGK-6” shares into shares of the         being equal to 3.80 rubles per
                                                           with consideration of shares              same category/type having a lesser        share (protocol #57 dated
        — JSC FSK                                          already belonging to affiliated           par value, the authorized share           12.19.2007), which corresponded
                                                           companies of JSC Gazprom will             capital of JSC “OGK-6” decreased          to the Company’s capitalization of
        — Minority shareholders of JSC OGK-6               enable JSC Gazprom to obtain              from 26,731,061,492 rubles to             $548 per kW of installed capacity
                                                           control of JSC “OGK-6” (more than         12,830,909,516 rubles, an amount          (or EV — $590/kW) at the time of
        — ZAO Gazenergoprom-Invest (JSC Gazprom)           60% of share capital).                    not exceeding the value of net            placement.
                                                                                                     assets (the value of net assets as of
                                                                                                     06.30.2007 was 13,780,117                 After determining the placement
                                                                                                     thousand rubles).                         price in accordance with the
                                                                                                                                               securities prospectus, the shares
                                                                                                                                               were placed from December 20 to
                                                                                                                                               29, 2007.

                                                                                                                                               The number of actually placed
                                                                                                                                               additionally issued shares was
                                                                                                                                               5,531,497,444 (46.7% of the total
                                                                                                                                               number of registered shares),
                                                                                                                                               including 5,497,444 placed in the
                                                                                                                                               process of exercising preemptive
                                                                                                                                               rights in acquiring shares.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


III. JSC “OGK-6” SHARES
TRADING RESULTS




Due to conversion of the shares to               Between 12.31.2006 and                circulation of trades of OGK-6
shares of the same category/type                 12.31.2007, 16,162 market             shares on MICEX was in the range
having a lesser par value, beginning             transactions were completed at        of 140-227 million rubles. From
on 05.22.2007, trading in JSC “OGK-6”            MICEX involving JSC “OGK-6”           July to December 2007, the
converted shares ceased at the                   shares. Trade volumes amounted        monthly trading volume was 15-
MICEX exchange. In JSC RTS, trading              to approximately 396 million          115 million rubles. The RTS —
in JSC “OGK-6” shares on the                     shares, or 1,504 million rubles.      Electrical Utilities index, the
exchange market ceased on                                                              account of which includes
05.22.2007, and on the classical                 Between 12.31.2006 and                quotations of 16 of the largest
market — on 05.17.2007. In June                  12.31.2007, JSC RTS concluded         companies in the Russian electric
2007, no JSC “OGK-6” shares were                 194 transactions on the classical     power industry, increased at year
circulated on the exchange floors.               market. Trade volume amounted         end by 35.28% from 345.05 points
                                                 to 99.2 million shares, or 14.6       on January 9, 2007, to 466.78
Beginning on 07.18.2007, JSC                     million US dollars. JSC RTS           points on December 28, 2007.
“OGK-6” second-issue shares were                 concluded 53 transactions on the
admitted to trade in quotation list              exchange market in 2007. Trade        In the same period, the Company’s
“I” of ZAO FB MICEX and in the list              volume amounted to 1.03 million       capitalization, calculated as the
of securities admitted to trade                  shares, or 3.85 million rub.          total value of all shares issued
without undergoing listing                                                             times their market value
procedures of JSC RTS.                           In 2007, JSC “OGK-6” shares on the    (calculated in accordance with
                                                 MICEX decreased by 2.78% from         Resolution № 03-52/ps of the RF
In accordance with the Provision on              3.349 rubles per share on January     Federal Commission for the
organizing trading on the securities             9, 2007 to 3.56 rubles per share on   Securities Market dated December
market, on inclusion in quotation list           December 28, 2007. On the RTS         24, 2008), increased by 16.6%,
“I” of ZAO MICEX, the Company                    the price of shares increased by      from 89 billion rubles ($372 per
concluded a contract with                        10.78% from $0.116 per share on       kW of installed capacity) to 103.8
authorized financial consultant JSC              January 9, 2007, to $0.1285 per       billion rubles $466 per kW of
OTKRITIE Brokerage House, which                  share on December 25, 2007. The       installed capacity). The increase in
was entrusted with supervision of                7.2% drop in the exchange rate of     capitalization against the
information disclosure by the                    the dollar should likewise be borne   background of decreasing market
Company and confirmation of the                  in mind. During the year, the         value of shares occurred due to an
reliability and completeness of all              MICEX index rose by 20.19%, from      increase in the total number of
information contained in quarterly               1571.59 points on January 9, 2007,    shares resulting from the
Company reports, with the                        to 1888.86 points on December 28,     additional issue.
exception of the portion approved                2007. The RTS index increased by
by the auditor or appraiser, for the             27.35%, from 1798.63 points on
duration of the entire period during             January 9, 2007, to 2290.51 points
which Company shares are in                      on December 28, 2007.
quoted list “I”.
                                                 One of the primary causes of the
In accordance with this same                     drop in price of JSC “OGK-6” stock
Provision, a contract was                        against the background of an
concluded with Joint-Stock                       increase in the share index is the
Commercial Bank Moskovsky                        reduction of their liquidity upon
Delovoy Mir (an JSC), fulfilling the             inclusion in quotation list “I” of
obligations of market maker with                 ZAO FB MICEX. From January to
regard to JSC “OGK-6” stock                      May 2007, prior to inclusion in
circulated in quotation list “I”.                quotation list “I”, the monthly
|   SECURITIES AND SHARE CAPITAL
                                                                                                                                                                                                                            78 | 79




RESULTS OF TRADING IN JSC “OGK-6” SHARES ON ZAO FB MICEX IN 2007 (PRIMARY TRADING SCHEDULE)

                                                   JANUARY         FEBRUARY            MARCH            APRIL            MAY           JUNE          JULY         AUGUST SEPTEMBER                   OCTOBER NOVEMBER DECEMBER


    Number of market transactions, units               1,703              5,004          4,039           1,867            860               0          107               374            353              342          652      861
    Trade volume, in million shares                    38.89               96. 9          58.5           29.37          57.81               0         4.08             14.25          25.31             8.91        24.45    35.86
    Trade volume, in million rubles                   139.71             395.77         238.28          121.19         226.66               0        16.44             61.36          84.12            29.04        76.33   114.76



RESULTS OF TRADING JSC “OGK-6” SHARES ON JSC RTS IN 2007 (CLASSICAL MARKET)

                                                   JANUARY         FEBRUARY            MARCH            APRIL            MAY           JUNE          JULY         AUGUST SEPTEMBER                   OCTOBER NOVEMBER DECEMBER


    Number of market transactions, units                   21                36              30             16              9               0            5                 6              8                9           32       22
    Trade volume, in million shares                      8.82             13.02           11.65           6.13           4.04               0        25.61              2.03           3.58             3.29         12.9     8.11
    Trade volume, in million USD.                        1.15              1.96            1.82           0.98           0.61               0         4.23              0.29           0.47             0.43         1.66     1.06



OGK-6 CAPITALIZATION AND VALUE IN 2007

    DATE         |            QTY. OF SHARES ISSUED |              MARKET PRICE AT MICEX*|                CAPITALIZATION |                       CAPITALIZATION /INSTALLED CAPACITY |                       NET DEBT |       EV**
                                                        units                                  rub.*                        rub.                             rub./kW                          $/kW                  rub.      $/kW


    09.01.2007                            26,731,061,492                                     3.331       89,041,165,829.80                                  9,837                             372         6,352,396,000       398
    28.12.2007                            32,262,558,936                                     3.218      103,820,914,656.00                                 11,469                             466      – 10,505,373,000       418

    * Market price calculated in accordance with the Procedure for calculation of the market price of equity securities and investment common shares of mutual funds admitted to circulation by trade institutors
     (conf. by resolution #03-52/ps of the RF Federal Commission for the Securities Market dated December 24, 2003).

** EV (Enterprise Value) = Capitalization + Net debt;
   Net debt = Long-term borrowed loans and credits + Short-term loans and credits – Monetary funds – Short-term financial investments – Long-term deposits accounted in the composition of Long-term financial investments.
    ANNUAL REPORT        2007       JSC “OGK-6”
|                    |          |




PRICE OF JSC OGK-6 SHARES, IN RUB.                                                                                                              MICEX INDEX   PRICE TRENDS OF JSC “OGK-6” SHARES
4,5                                                                                                                                                    2025   ON MICEX AND THE MICEX INDEX FOR 2007
4,3                                                                                                                                                    1925
4,1
                                                                                                                                                       1825
3,9

3,7                                                                                                                                                    1725

3,5                                                                                                                                                    1625
3,3
                                                                                                                                                       1525
3,1
                                                                                                                                                       1425
2,9

2,7                                                                                                                                                    1325
       20 february          5 april            21 may                 3 july         14 august         25 september    7 november        19 december

               Closing price, in rub.                                MICEX index




                                                                                                                                                       1,5
                                                                                                                                                              COMPARATIVE PRICE DYNAMICS
                                                                                                                                                              FOR JSC “OGK-6” SHARES AND JSC RTS
                                                                                                                                                       1,4    EXCHANGE INDEXES FOR 2007

                                                                                                                                                       1,3


                                                                                                                                                       1,2


                                                                                                                                                       1,1


                                                                                                                                                       1,0


                                                                                                                                                       0,9
10 march                        9 may                       8 july                   6 september                5 november                5 december



               RTS share price                                       RTS — Electrical Utilities index *                      RTS index

* Electrical Utilities index includes quotations of 16 major Russian electrical industry enterprises
|   SECURITIES AND SHARE CAPITAL
                                                                                                            80 | 81




DIVIDENDS
In 2007, the decision was made to pay dividends for year end 2006, as well as interim dividends for the end of
the first quarter of 2007 and the end of the first half of 2007 for a total of 717.5 million rubles. Dividends of
224.2 million rubles out of 226 million rubles accrued at the end of 2006 were paid; the remaining unpaid
dividends as of 12.31.2007 amount to 1.8 million rubles. Interim dividends of 228.2 million rubles out of 230
million rubles for the end of the first quarter of 2007 were paid; the remaining unpaid dividends as of
12.31.2007 are 1.8 million rubles. Dividends of 15 million rubles out of 261.5 million rubles accrued for the
end of the first half of 2007 were paid to minority shareholders; the remaining unpaid dividends as of
12.31.2007 due to minority shareholders amount to 2 million rubles, and due to JSC RAO UES of Russia —
244.5 million rubles. Payment arrears of dividends of plants annexed in the process of reorganization of
subsidiaries GRES-24 and Cherepovetskaya GRES by JSC “OGK-6” due to minority shareholders as of 12.31.2007
amount to 7.9 million rubles.




DIVIDENDS ACCRUED FOR 2007:                              |                                     DISCHARGE STATEMENT
.
                                                             AMOUNT               PAYMENT                     SUM
                                                               PAID*              DUE DATE              OF ARREARS

TOTAL:                                               717.5     467.4                      –                  250.1

including interim dividends:
– for the end of 2006                                226.0      224.2             28.08.2007                   1.8
– for the end of the first quarter of 2007           230.0      228.2             28.08.2007                   1.8
– for the end of the first halfof 2007               261.5       15.0             26.11.2007                 246.5

* including tax on income in the form of dividends
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




BONDS
On March 22, 2007, the Federal Financial Market Service registered issues and a Prospectus of nonconvertible
interest-bearing bonds of JSC “OGK-6” to the bearer of series 01 (state registration number 4-01-65106-D) and
series 02 (state registration number 4-02-65106-D), placed by open subscription.

Series 01 bonds were placed on MICEX on April 26, 2007.

The coupon rate for JSC “OGK-6” series 01 bonds was determined at auction in the placement process and was
7.55% per annum.

On 04.27.2007, bonds were accepted for trade at MICEX in the list of non-listed stock. The MICEX trading system
code of the bonds is RU000A0JP6X0.

On May 31, 2007, the Federal Financial Market Service registered a Report on the result of the securities issue
(series 01 bonds).

On November 15, 2007, JSC “OGK-6” series 01 bonds were included in quotation list “B” of ZAO FB MICEX.

During 2007, 530 transactions involving JSC “OGK-6” series 01 bonds were concluded at MICEX in the primary
trade mode. Bond transaction volume was 2.43 million securities, or 2.40 billion rubles.




PARAMETERS FOR ISSUE OF JSC “OGK-6” SERIES 01 BONDS IN ACCORDANCE WITH THE DECISION TO ISSUE

    DATE OF REGISTRATION |                                                                    |                      AMORTIZATION |                                  EARLY REDEMPTION

                               EMISSION VOLUME              MATURITY               FREQUENCY                 DATE           PRICE                          DATE                  PRICE
                                                                           OF COUPON PAYMENT      OF AMORTIZATION OF AMORTIZATION           OF EARLY REDEMPTION    OF EARLY REDEMPTION
                                           million rubles       in years                                                   % of par value                                     % of par value


    22.03.2007                                   5 000                5            Twice yearly         19.04.2012                 100                29.04.2010                      100
                                  |   SECURITIES AND SHARE CAPITAL
                                                                                                                                                                             82 | 83




PAYMENT SCHEDULE                      COUPON #           DATE OF PAYMENT                         COUPON RATE           AMOUNT OF COUPON              AMORTIZATION OF PAR VALUE
OF SERIES 01 BOND REVENUES                                                                             % per annum                     in rubles                              in rubles


                                      1                          25.10.2007                               7.55                         37.65                                      –
                                      2                          24.04.2008                               7.55                         37.65                                      –
                                      3                          23.10.2008                               7.55                         37.65                                      –
                                      4                          23.04.2009                               7.55                         37.65                                      –
                                      5                          22.10.2009                               7.55                         37.65                                      –
                                      6                          22.04.2010                               7.55                         37.65                                      –
                                      7                          21.10.2010           Determined by the Issuer       Determined by the Issuer                                     –
                                      8                          21.04.2011           Determined by the Issuer       Determined by the Issuer                                     –
                                      9                          20.10.2011           Determined by the Issuer       Determined by the Issuer                                     –
                                      10                         19.04.2012           Determined by the Issuer       Determined by the Issuer                                  1000




JSC “OGK-6” BOND YIELD DYNAMICS   9,8
FOR 2007
                                  9,3


                                  8,8


                                  8,3


                                  7,8


                                  7,3


                                  6,8
                                            28 june               3 august                  8 september              14 oktober                    19 november            25 december



                                                         Yield to put at av. weighted price, % per annum                             RUX-Cbonds av. weighted yield/eff.
Queen Mary 2
THE CREW OF QUEEN MARY 2, ONE OF THE WORLD’S LARGEST OCEAN LINERS,
SERVES 2,500 PASSENGERS ON BOARD. THE OKG-6 MANAGEMENT TEAM
OPERATES THE COMPANY IN THE INTERESTS OF 25,000 SHAREHOLDERS BASED
ON THE PRINCIPLES OF REPORTING, TRANSPARENCY, AND RESPONSIBILITY.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                                             84 | 85




                                        7        CORPORATE GOVERNANCE
                                                 STRUCTURES AND PRINCIPLES
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



7. CORPORATE GOVERNANCE
STRUCTURES AND PRINCIPLES

I. PRINCIPLES
AND DOCUMENTS




The Company’s corporate governance is understood to be the aggregate               1. COMPANY ARTICLES OF ASSOCIATION
of processes providing for management and control of its activities and            The Articles of Association are the constituent document of the Company.
including relations among shareholders, the Board of Directors, and the            The Articles of Association contain information regarding the Company’s
Company’s executive bodies in the interests of the shareholders. The               legal status, objectives and forms of activity, authorized share capital, and
Company views corporate governance as a means of increasing the                    shareholder rights. They likewise contain a description of the Company’s
Company’s productivity, strengthening its reputation, and increasing               executive bodies, their competency, and the procedures for their activities.
capitalization.
                                                                                   The current edition of the Articles of Association was approved on 10.28.2006
The Company’s corporate governance is conducted in accordance with                 by decision of the Board of Directors of JSC RAO UES of Russia, which at the
the Code of Corporate Governance adopted in the company and is based               time of approval was performing the functions of the General Shareholders’
on the following principles:                                                       Meeting of JSC “OGK-6” and was registered with the Inspectorate of FTS of
                                                                                   Russia for Leninsky District, Rostov-on-Don on 11.17.2005.
» Accountability. The Code stipulates accountability of the Company’s
Board of Directors to all shareholders in accordance with current legislation      Changes to this edition of the Articles of Association:
and serves as the guidelines for the Board of Directors in drawing up              1) Amendments to the Articles of Association, registered 06.27.2006
resolutions and overseeing the activity of the Company’s executive bodies.         2) Appendix № 1 to the Articles of Association, registered 07.12.2006
                                                                                   3) Amendments to the Articles of Association, registered 09.29.2006
» Fairness. The Company binds itself to defend the rights of shareholders          4) Amendments to the Articles of Association, registered 06.21.2007
and ensure fair treatment of all shareholders. The Board of Directors              5) Amendments to the Articles of Association, registered 07.25.2007
provides all shareholders with the opportunity to obtain effective defense         6) Amendments to the Articles of Association, registered 12.24.2007
in the event of violation of their rights.                                         7) Amendments to the Articles of Association, registered 02.21.2007

» Clarity. The Company ensures the timely disclosure of reliable                   2. JSC “OGK-6” CODE OF CORPORATE GOVERNANCE
information regarding all significant facts related to its activities, including   The Code of Corporate Governance was confirmed by the Board of
its financial situation, social and ecological indexes, performance, and the       Directors on 12.21.2006 (protocol №29 dated 12.25.2006). The objectives of
Company’s management and property structure, as well as open access to             the Code of Corporate Governance are the improvement and
such information for all interested parties.                                       systematization of corporate governance of JSC “OGK-6”, facilitation of
                                                                                   greater clarity in Company management, and confirmation of unfailing
» Responsibility. The Company recognizes the rights of all interested              readiness on the part of the Company to adhere to the standard of
parties provided for by current legislation, and strives towards cooperation       appropriate corporate governance.
with such persons for the purposes of its development and assurance of
financial stability.                                                               3. PROVISION CONCERNING INFORMATION POLICY
                                                                                   The Provision Concerning Information Policy in its new edition was
In its corporate governance practices, JSC “OGK-6” strives to adhere to the        confirmed by the 12.21.2006 decision of the Board of Directors (protocol
primary principles presented in the Code of Corporate Conduct                      № 29 dated 12.25.2006). The Provision defines the composition of
recommended for application by the Federal Financial Markets Service.              information disclosed by the Company and the frequency, dates, and
Information on satisfaction of the primary requirements of the Code of             procedure for disclosure.
Corporate Conduct is presented in an appendix to this Annual Report.

The Company has adopted the following documents regulating mutual
relations in the sphere of corporate governance.
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                                 86 | 87




4. PROVISION CONCERNING INSIDER INFORMATION                                     8. PROVISION CONCERNING PAYMENT OF BONUSES AND
The Provision Concerning Insider Information in its new edition was             COMPENSATION TO MEMBERS OF THE JSC “OGK-6” BOARD OF
confirmed by the 12.25.2007 decision of the Board of Directors (protocol        DIRECTORS
№ 40 dated 05.25.2007). The action of the Provision is directed towards         The Provision Concerning Payment of Bonuses and Compensation to the
preventing use of non-public information, in the interests of individuals.      JSC “OGK-6” Board of Directors was approved by decision of the annual
The use of insider information is supervised by a separate structural unit of   General Shareholders’ Meeting of JSC “OGK-6” on 06.29.2007 (protocol №5).
the Company.                                                                    The Provision defines the procedure and amount of bonuses and
                                                                                compensation paid to members of the Board of Directors. The action of the
5. PROVISION CONCERNING THE PROCEDURE FOR PREPARATION                           Provision does not extend to members of the Board of Directors who are
AND HOLDING OF THE GENERAL SHAREHOLDERS’ MEETING                                the Company CEO or members of the Company’s collegial executive body.
The Provision Concerning the Procedure for Preparation and Holding of
the General Shareholders’ Meeting was approved by decision of the Board         9. PROVISION CONCERNING THE AUDIT COMMITTEE
of Directors of JSC RAO UES of Russia, which fulfilled the function of an       The Provision Concerning the Audit Committee was approved by decision
extraordinary General Shareholders’ Meeting of JSC “OGK-6” on 07.29.2005        of the Board of Directors of JSC RAO UES of Russia, which fulfilled the
(protocol № 200). The Provision defines the procedure for preparation and       function of an extraordinary General Shareholders’ Meeting of JSC “OGK-6”
holding of the General Shareholders’ Meeting and forms of conducting the        on 07.29.2005 (protocol № 200). The Provision defines the tasks of the
meeting, and elaborates on the functions of the labor bodies of the             Audit Committee and their rights and obligations, and establishes the
General Meeting.                                                                procedure for conducting audits.

6. PROVISION CONCERNING THE PROCEDURE FOR CONVENING                             10. PROVISION CONCERNING PAYMENT OF BONUSES AND
AND HOLDING A MEETING OF THE BOARD OF DIRECTORS                                 COMPENSATION TO MEMBERS OF THE AUDIT COMMITTEE
The Provision Concerning the Procedure for Convening and Holding a              The Provision Concerning Payment of Bonuses and Compensation to
Meeting of the Board of Directors was approved by decision of the Board         Members of the Audit Committee was approved by decision of the Board
of Directors of JSC RAO UES of Russia, which fulfilled the function of an       of Directors of JSC RAO UES of Russia, which fulfilled the function of an
extraordinary General Shareholders’ Meeting of JSC “OGK-6” on 07.29.2005        extraordinary General Shareholders’ Meeting of JSC “OGK-6” on 07.29.2005
(protocol № 200). The Provision defines the procedure for convening and         (protocol № 200). The Provision establishes the amount, form, and
holding a meeting of the Board of Directors, and elaborates on the              timelines for payment of bonuses and compensation to members of the
functions of the Chairman of the Board of Directors, the rights and             Audit Committee, as well as to specialists/experts employed by the Audit
obligations of the members of the Board of Directors, and the status of the     Committee.
secretary of the Board of Directors.

7. PROVISION CONCERNING ADMINISTRATION                                          The texts of the documents are published on the Company’s website:
The Provision Concerning Administration was approved by decision of the         www.ogk6.ru
Board of Directors of JSC RAO UES of Russia, which fulfilled the function of
an extraordinary General Shareholders’ Meeting of JSC “OGK-6” on
07.29.2005 (protocol № 200). The Provision contains the primary tasks of
the Administration, elaborates of the procedure for forming the
Administration, defines the rights, obligations, and responsibilities of the
members of the Administration, and establishes the procedure for holding
meetings of the Administration in praesentia and in absentia
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


II. INFORMATION ON ADMINISTRATIVE                                            A change in the composition of the Board of Directors occurred in the
AND CONTROL BODIES                                                           Company in 2007.

GENERAL COMPANY SHAREHOLDERS’ MEETING                                        Composition of the Board of Directors for 05.11.2006 – 04.05.2007:
The General Shareholders’ Meeting is the supreme administrative authority.   » Chikunov, Alexander Vasilyevich
The General Shareholders’ Meeting provides shareholders with the               (Chairman of the Board of Directors from 11.18.2006);
opportunity to exercise their right to participate in management of the      » Vainzikher, Boris Felixovich
Company by making decisions on the most important questions of the             (Chairman of the Board of Directors from 06.06.2006 to 11.17.2006);
Company’s activities within the competence of the General Shareholders’      » Arinin, Sergei Vladimirovich;
Meeting. The Board of Directors, executive bodies, and the Audit             » Kazakov, Alexander Ivanovich;
Committee are accountable to the General Shareholders’ Meeting. The          » Kaigorodov, Dmitry Alexandrovich;
competence of the General Shareholders’ Meeting and the timelines and        » Nepsha, Valery Vasilievich;
procedure for preparation and holding and forms of holding thereof are       » Remes, Seppo Yukha;
defined in the Federal Law “On Joint-Stock Companies”, in the Articles of    » Sanko, Valentin Mikhailovich;
Association, and in the Provision Concerning the Procedure for Preparation   » Fil, Sergei Sergeevich
and Holding of the General Shareholders’ Meeting of JSC “OGK-6”.             » Shtykov, Dmitry Viktorovich;
                                                                             » Shumilov, Alexander Alexandrovich.
BOARD OF DIRECTORS. CHANGES IN THE COMPOSITION
OF THE BOARD OF DIRECTORS. PORTION OF COMPANY SHARES                         On May 4, 2007, a Company’s Board of Directors consisting of the
BELONGING TO MEMBERS OF THE BOARD OF DIRECTORS                               following was elected at an Extraordinary JSC “OGK-6” General
General management of the Company’s activities is exercised by the Board     Shareholders’ Meeting (Protocol №4 dated 05.07.2007) :
of Directors, which makes decisions on significant issues of the Company’s
activity within the competence defined in the Articles of Association. The   Composition of the Board of Directors for 05.04.2007 – 06.29.2007:
procedure for the activities of the Company’s Board of Directors is          » Chikunov, Alexander Vasilyevich
regulated by the Articles of Association and the Provision Concerning the        (Chairman of the Board of Directors from 05.25.2007);
Procedure for Convening and Holding Meetings of the Board of Directors       »   Burnashev, Dmitry Alexandrovich;
of JSC “OGK-6”. The Board of Directors is a collegiate body made up of 11    »   Yukhnevich, Yury Bronislavovich;
persons. The members of the Board of Directors are selected by the           »   Evkharitsky, Alexander Valerievich;
General Shareholders’ Meeting for a term extending to the following          »   Melnikov, Dmitry Alexandrovich;
annual General Shareholders’ Meeting. By decision of the General             »   Sokolovsky, Mikhail Zinovievich;
Shareholders’ Meeting, the authority of all members of the Board of          »   Tsuranov, Igor Grigorievich;
Directors may be terminated ahead of schedule. Persons elected to the        »   Sanko, Valentin Mikhailovich;
Board of Directors may be reelected an unlimited number of times.            »   Remes, Seppo Yukha;
Candidates for election to the Board of Directors may be nominated by        »   Nepsha, Valery Vasilievich;
shareholders owning not less than 2% of the Company’s voting shares, as      »   Repin, Igor Nikolaevich.
well as on the initiative of the Board of Directors.




ORGANIZATION OF CORPORATE GOVERNANCE                AUDIT                             GENERAL                           AUDIT
OF JSC “OGK-6”                                                                        SHAREHOLDERS’                     COMMITTEE
                                                                                      MEETING

                                                                                      BOARD                             RELIABILITY COMMITTEE
                                                                                      OF DIRECTORS                      FOR THE BOARD OF DIRECTORS

                                                                                      ADMINISTRATION                    STRATEGY AND BUSINESS PLANNING
                                                                                                                        COMMITTEE FOR THE BOARD OF DIRECTORS

                                                                                      CEO                               AUDIT COMMITTEE FOR THE BOARD
                                                                                                                        OF DIRECTORS

                                                                                      EXECUTIVE
                                                                                      OFFICE

                                                                                                                        INTERNAL
                                                                                                                        REVIEW BOARD
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                              88 | 89


On June 29, 2007, a Company’s Board of Directors consisting of the           » Reliability Committee of the Board of Directors
following was elected at an JSC “OGK-6” General Shareholders’ Meeting        » Audit Committee of the Board of Directors
(Protocol #5 dated ):                                                        » Strategy and Business Planning Committee of the Board of Directors.

Composition of the Board of Directors since 06.29.2007:                      The amount and procedure for payment of bonuses and compensation
» Melnikov, Dmitry Alexandrovich                                             to members of the Company’s Board of Directors is determined in
  (Chairman of the Board of Directors since 07.12.2007)                      accordance with the “Provision Concerning Payment of Bonuses and
» Burnashev, Dmitry Alexandrovich;                                           Compensations to Members of the JSC “OGK-6” Board of Directors”.
» Evkharitsky, Alexander Valerievich;                                        Payment of bonuses and compensation is made by the Company in
» Nepsha, Valery Vasilievich;                                                monetary form.
» Remes, Seppo Yukha;
» Sanko, Valentin Mikhailovich;                                              For participating in a meeting of the Board of Directors conducted in
» Sokolovsky, Mikhail Zinovievich;                                           absentia (by questionnaire), a member of the Company’s Board of
» Fil, Sergei Sergeevich                                                     Directors is paid bonuses in the amount of a sum equal to seven
» Tsuranov, Igor Grigorievich;                                               minimum monthly base rates for first-category workers, established by
» Shatsky, Pavel Olegovich;                                                  industrial rate agreement in the RF electrical power complex (hereinafter
» Yukhnevich, Yury Bronislavovich.                                           called Rate Agreement) as of the day of the meeting of the Company’s
                                                                             Board of Directors, with allowance for indexation established by the
The independent directors in accordance with the Code of Corporate           Agreement, within seven calendar days of the meeting of the Company’s
Conduct of FFMS of Russsa, recommended by order #421/r for                   Board of Directors.
observance by joint-stock companies, are recognized to be:
» Melnikov, Dmitry Alexandrovich;                                            For participation in a meeting of the Board of Directors conducted in the
» Burnashev, Dmitry Alexandrovich;                                           presence of the shareholders, a member of the Company’s Board of
» Evkharitsky, Alexander Valerievich;                                        Directors is paid bonuses in the amount of a sum equal to ten minimum
» Nepsha, Valery Vasilievich;                                                monthly base rates for first-category workers, established by industrial
» Sokolovsky, Mikhail Zinovievich;                                           rate agreement in the RF electrical power complex (hereinafter called
» Fil, Sergei Sergeevich                                                     Rate Agreement) as of the day of the meeting of the Company’s Board of
» Tsuranov, Igor Grigorievich;                                               Directors, with allowance for indexation established by the Agreement,
» Shatsky, Pavel Olegovich;                                                  within seven calendar days of the meeting of the Company’s Board of
» Yukhnevich, Yury Bronislavovich.                                           Directors.

In 2007 the Board of Directors held 29 meetings, of which 5 were in the      The amount of the bonuses paid to the Chairman/Deputy Chairman for
presence of the shareholders. A total of 276 issues were examined.           each meeting at which the latter performed the function of Chairman of
                                                                             the Board of Directors, is increased by 50%.
The following are among the most important of the resolutions adopted
in 2007 by the JSC “OGK-6” Board of Directors:                               The minimum monthly base rate for a first-category worker established
                                                                             by industrial rate agreement in the RF electrical power complex was
1. Ratification of the strategy of JSC “OGK-6” for 2007-2011 and to 2015     2,700 rubles as of 01.01.2007, 2,792 rubles as of 04.01.2007, 2,854
(Protocol № 35 dated 03.27.2007);                                            rubles as of 07.01.2007, 2,903 rubles as of 10.01.2007, and 3,021 rubles
                                                                             as of 01.01.2008.
2. Ratification of the JSC “OGK-6” Options Program (Protocol № 49 dated
21.09.2007);                                                                 Members of the Board of Directors are paid an additional bonus based
                                                                             on the Company’s net profit according to the annual financial statement
3. Ratification of the Resolutions regarding the issue and Prospectus of     approved by the General Company Shareholders’ Meeting in accordance
interest-bearing documentary nonconvertible bonds of JSC “OGK-6” to          with the procedure established by the Provision.
the bearer of series 01 and 02 (Protocol №31 dated 15.02.2007);
                                                                             Members of the Board of Directors are paid an additional bonus in the
4. Ratification of the Resolution regarding the issue and Prospectus of an   event of an increase in the Company’s market capitalization during the
additional share issue placed by open subscription, in accordance with a     work of the Board of Directors (the time from the election of the
resolution to increase authorized share capital adopted by the JSC “OGK-     member of the Board of Directors to the time of the election of a new
6” General Shareholders’ Meeting (Protocol №45 dated 08.15.2007);            membership of the Board of Directors) in accordance with the procedure
                                                                             established in the Provision.
5. Determination of the placement price of additional Company shares
(Protocol № 57 dated 12.19.2007);                                            In 2007, for participation in the work of the Board of Directors, members
                                                                             of the JSC “OGK-6” Board of Directors received bonuses of: 4,828,233
6. Ratification of the composition of the Committees of the Board of         rubles.
Directors (Protocol № 54 dated 11.29.2007):
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


In July 2007, members of the Board of Directors were paid bonuses                 The Audit Committee of the Board of Directors is obliged to present
totaling 1,772,911.41 rubles for 2006 profit.                                     economically efficient and legally substantiated recommendations/
                                                                                  opinions to the Board of Directors on issues related to the competence
For an increase in the amount of the Company’s market capitalization,             of the Committee, and to inform the Company’s Board of Directors in a
between 02.02.2007 and 05.04.2007, additional bonuses totaling                    timely fashion of risks to the Company.
32,216,402.90 rubles were paid to members of the JSC “OGK-6” Board of
Directors in accordance with the “Provision Concerning Payment of                 The number of Committee members is determined by decision of the
Bonuses and Compensation to Members of the JSC “OGK-6” Board of                   Company’s Board of Directors, to be no less than 3 (three) and no more
Directors”.                                                                       than 5 (five) persons. The members of the Committee are elected by the
                                                                                  Company’s Board of Directors solely from among the members of the
COMMITTEES OF THE BOARD OF DIRECTORS                                              Board of Directors by majority vote of members of the Board of Directors
In the interest of efficiency of the work of the Company’s Board of               participating in the meeting of the Board of Directors.
Directors on issues of productivity analysis, appraisal of technical status,
exploitation level and repair of power facilities, and appraisal of technical     The composition of the Audit Committee of the Board of Directors
services, as per the December 21, 2005, decision of the JSC “OGK-6” Board         was determined by the 11.29.2007 resolution of the Board of
of Directors, a reliability committee of the Board of Directors was created.      Directors (protocol #54):
The number of Committee members is determined by decision of the                  » Sokolovsky, Mikhail Zinovievich;
Company’s Board of Directors, to be no less than 3 (three) and no more            » Remes, Seppo Yukha;
than 7 (seven) persons. The members of the Committee are elected by               » Shatsky, Pavel Olegovich.
the Company’s Board of Directors from among candidates nominated by
the Company’s Board of Directors.                                                 By the decision of the JSC “OGK-6” Board of Directors dated 02.14.2007
                                                                                  (protocol № 31 dated 15.02.2007), the Strategy and Business Planning
The composition of the Reliability Committee of the Board of                      Committee of the Board of Directors was created. The Committee is a
Directors was determined by the resolution of 11.29.2007 of the                   consulting and advisory organ, ensuring efficient performance of the
Board of Directors (protocol #54):                                                Company’s Board of Directors in their functions of general management
» Zagretdinov, Ilyas Shamilevich — deputy managing director of                    of the Company’s activities. The task of the Committee is the
   Business Unit №1 of JSC RAO UES of Russia;                                     development and presentation of recommendations/opinions to the
» Zorko, Yu.S. – head of the Territorial Center of DP                             Board of Directors and executive bodies of the Company on issues
   Tsentrenergotekhnadzor for Ryazan Region;                                      related to determining of priority lines of activity, strategic objectives.
» Petelin, Sergei Alexandrovich — head of the technical and                       The number of members of the Committee is defined by decision of the
   industrial administration of the energy complex of JSC SUEK;                   Company’s Board of Directors, to be no less than 3 (three) and no more
» Radchenko, Sergei Valerievich — chief expert of the exploitation                than 5 (five) persons. The members of the Committee are elected by the
   and fuel supply administration and of Business Unit № 1 of JSC RAO             Company’s Board of Directors by a majority of three-quarters of the votes
   UES of Russia;                                                                 of the total number of members of the Board of Directors, from among
» Selyakov, Aleksei Nikolaevich — deputy CEO of Economy and                       candidates nominated by members of the Company’s Board of Directors.
   Finance of JSC “OGK-6”;
» Tatarinov, Nikolai Alexandrovich — deputy CEO of Production and                 The composition of the Strategy and Business Planning Committee
   Head Engineer of JSC “OGK-6”;                                                  of the Board of Directors was determined by the 11.29.2007
» Sychev, Vladimir Borisovich — head of the Department of                         resolution of the Board of Directors (protocol #54):
   Development of the Electric Power Sector, the Office of Development            » Sutkovoi, Igor Yurievich — deputy head of the business planning
   of the Electric Power Sector and marketing in the electric power                   department of the corporate center of JSC RAO UES of Russia;
   industry of JSC Gazprom.                                                       » Melnikov, Dmitry Alexandrovich — chairman of the JSC “OGK-6”
                                                                                      Board of Directors, executive director of Business Unit № 1 of JSC RAO
By resolution of the JSC “OGK-6” Board of Directors dated 02.14.2007                  UES of Russia;
(protocol № 31 dated 02.15.2007), in the interest of efficiency of the            » Selyakov, Aleksei Nikolaevich — deputy CEO of Economy and
Company’s Board of Directors in resolving issues in its jurisdiction, the Audit       Finance of JSC “OGK-6”;
Committee of the Board of Directors was created. The task of the Committee        » Shatsky, Pavel Olegovich — member of the JSC “OGK-6” Board of
is the development and presentation of recommendations/opinions of the                Directors, JSC SUEK deputy director of power, mergers, and
Company’s Board of Directors in the area of auditing and internal review. In          acquisitions;
accordance with the Provision Concerning the Audit Committee of the               » Fedorov, Denis Vladimirovich — head of JSC Gazprom’s
Board of Directors, the appraisal of candidates for Company auditor, appraisal        department of development of the electric power sector and electric
of the opinion of the Company’s auditor, and appraisal of the efficiency of           power marketing;
the internal review procedures and preparation of proposals for improving
them are within the competence of the Committee.
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                         90 | 91


INFORMATION CONCERNING MEMBERS
OF THE BOARD OF DIRECTORS




1. MELNIKOV, DMITRY ALEXANDROVICH — CHAIRMAN OF THE BOARD OF DIRECTORS

                                        Year of birth:                     1975
                                        Education:                         graduated Omsk State University in 2001

                                        Employment for the past 5 years:   2002 – present
                                                                           JSC RAO UES of Russia, project manager for the Center for
                                                                           Implementation of the AO-energo Reform Project, Executive Director
                                                                           of Business Unit №1

                                                                           2007 – present
                                                                           JSC YGK TGK-8, JSC Energosbyt Rostovenergo, JSC Kamchatskenergo,
                                                                           JSC Sakhalinenergo, JSC Far East Energy Asset Management Company,
                                                                           JSC TGK-2, Chairman of the Board of Directors

                                                                           2007 – present
                                                                           JSC TGK-9, JSC Volgogradenergosbyt, ZAO Regional Power Service,
                                                                           member of the Board of Directors.

                                        Owns no shares in JSC “OGK-6”




2. BURNASHEV, DMITRY ALEXANDROVICH

                                        Year of birth:                     1964
                                        Education:                         graduated the S. Ordzhonikidze Moscow Institute of Management
                                                                           in 1989

                                        Employment for the past 5 years:   2002 – present
                                                                           JSC RAO UES of Russia, Head of the department of economics of the
                                                                           holding company and subsidiaries

                                                                           2004 – present
                                                                           Head of the department
                                                                           of business planning of the Corporate Center

                                                                           2007 – present
                                                                           NP INVEL, JSC IDGS of Centre and North Caucasus, JSC TGK-9,
                                                                           Noncommercial environmental investment organization Energy Carbon
                                                                           Fund, JSC Kaluzhskaya Sales Company, JSC OGK-4, JSC Orelenergo,
                                                                           member of the Board of Directors

                                        Owns no shares in JSC “OGK-6”
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


3. EVKHARITSKY, ALEXANDER VALERIEVICH

Year of birth:                                   1963
Education:                                       graduated Ivanov Energy Institute in 1985.

Employment for the past 5 years:                 1997–2004
                                                 JSC Kostromskaya GRES, deputy head of boiler
                                                 and turbine workshop №1

                                                 2004 – present
                                                 JSC RAO UES of Russia, manager of exploitation and prospective
                                                 development of Business Unit №1, chief expert of exploitation and fuel
                                                 supply of Business Unit №1

                                                 2007 – present
                                                 JSC TGK-4, JSC Komi Energy Sales Company, member of the Board
                                                 of Directors

Owns no shares in JSC “OGK-6”




4. NEPSHA, VALERY VASILIEVICH

Year of birth:                                   1976
Education:                                       graduated the International Academy of Marketing and Management
                                                 in 1997, Higher School of Economics State University in 1999.

Employment for the past 5 years:                 2000–2003
                                                 JSC RAO UES of Russia, spokesman, chief specialist of the Department of
                                                 Corporate Policy

                                                 2003 – present
                                                 Institute of Professional Directors fund, deputy CEO

                                                 2007 – present
                                                 JSC Kursenergo, JSC Astrakhanenergo, JSC Chelyabenergo,
                                                 JSC Vologdaenergo, JSC Chitaenergo, JSC Dagenergo, JSC KEUK,
                                                 member of the Board of Directors

Owns no shares in JSC “OGK-6”
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                          92 | 93


5. REMES, SEPPO YUKHA

                                     Year of birth:                     1955
                                     Education:                         graduated the University of Oulu, 1984; Candidate of economics (School
                                                                        of Economics and Business Administration, 1994)

                                     Employment for the past 5 years:   2001–2003
                                                                        Vostok Energo Investment Ltd, President

                                                                        2002 – present
                                                                        JSC OMZ, member of the Board of Directors, chairman of the Audit
                                                                        Committee of the Board of Directors

                                                                        2003–2004
                                                                        Vostok Nafta Investment ltd, director

                                                                        2003 – present
                                                                        JSC RAO UES of Russia, member of the Board of Directors, chairman of
                                                                        the Audit Committee of the Board of Directors, member of the Appraisal
                                                                        Committee of the Board of Directors, member of the Strategy and
                                                                        Reformation Committee of the Board of Directors

                                                                        2004–2007
                                                                        Finnish Sitra fund (the National Fund for Strategic Research and
                                                                        Development o fthe Parliament of the Republic of Finland), senior
                                                                        advisor

                                                                        2004 – present
                                                                        ZAO FIM Investment Bank (Russia), Corporate Finance (the largest
                                                                        Investment Bank in Finland), senior advisor

                                                                        2004 – present
                                                                        JSC Severstal-Auto, member of the Board of Directors, chairman of the
                                                                        Audit Committee of the Board of Directors

                                                                        2007 – present
                                                                        JSC RAO UES of Russia, JSC IDGC of the Central and Volga regions, JSC
                                                                        IDGC of the Volga, JSC HydroOGK, JSC SO-CDU-UES, JSC Kirovsky Zavod,
                                                                        JSC Severstal-Auto, JSC OMZ, JSC Sibur Holding, Ponsse Oyj EOS Russia
                                                                        (a Finnish JSC / logging equipment), member of the Board of Directors

                                     Owns no shares in JSC “OGK-6”
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


6. SANKO, VALENTIN MIKHAILOVICH

Year of birth:                                   1963
Education:                                       graduated Leningrad Voznesensky Institute of Finance and Economics in
                                                 1990, candidate of economics.

Employment for the past 5 years:                 2001–2005
                                                 ОJSC SUEK, CEO
                                                 JSC KGRES-2, JSC KiGRES, JSC Novocherkasskaya GRES, JSC Ryazanskaya
                                                 GRES, JSC Cherepovetskaya GRES; CEO (part-time)

                                                 2005 – present
                                                 JSC “OGK-6”, CEO, Chairman of the Administration, member of the Board
                                                 of Directors

Portion of shares owned
in JSC “OGK-6”:                                  0.02929%




7. SOKOLOVSKY, MIKHAIL ZINOVIEVICH

Year of birth:                                   1973
Education:                                       graduated Omsk State University in 1995

Employment for the past 5 years:                 1999–2005
                                                 JSC JSCB International Trade Bank, head of the legal department,
                                                 member of the Administration

                                                 2005 – present
                                                 JSC RAO UES of Russia, head of the legal department of Business Unit #1

                                                 2007 – present
                                                 JSC TGK-5, JSC Lipetsk Energy Sales Company, JSC Kamchatskenergo,
                                                 SC TGK-14, JSC Neryungrienergoremont, member of the Board of
                                                 Directors

Owns no shares in JSC “OGK-6”
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                            94 | 95


8. FIL, SERGEI SERGEEVICH

                                     Year of birth:                     1980
                                     Education:                         graduated Moscow Humanitarian Social Academy in 2002

                                     Employment for the past 5 years:   2002 – present
                                                                        JSC RAO UES of Russia, first-category specialist, leading specialist, chief
                                                                        specialist, acting head of the department of corporate events of the
                                                                        Department of Corporate Policy, head of the Department of Corporate
                                                                        Events of Business Unit #1

                                                                        2007 – present
                                                                        JSC Mosenergo, JSC Astrakhan Energy Sales Company, JSC Komi Energy
                                                                        Sales Company, JSC Mosenergosbyt, JSC Permenergosbyt, JSC TGK-4,
                                                                        JSC TGK-8, JSC DEK, JSC Sakhenergo, JSC DGK, JSC DESP, JSC COPEnergo,
                                                                        member of the Board of Directors

                                     Owns no shares in JSC “OGK-6”




9. TSURANOV, IGOR GRIGORIEVICH

                                     Year of birth:                     1964
                                     Education:                         graduated the Moscow State Institute of Electronics in 1987

                                     Employment for the past 5 years:   2002–2004
                                                                        JSC ROSNO, deputy CEO

                                                                        2004–2006
                                                                        Azovstal plant, Director of Strategy and Investments

                                                                        2006–2007
                                                                        JSC RAO UES of Russia, Executive Director, Director of Investments of
                                                                        Business Unit #1

                                     Owns no shares in JSC “OGK-6”
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


10. SHATSKY, PAVEL OLEGOVICH

Year of birth:                                   1972
Education:                                       graduated RosNOU (bachelor’s in jurisprudence) in 1996, RGAZU
                                                 (manager) in 1997, GUU / GAU (lawyer — specialist) in 2002

Employment for the past 5 years:                 2000–2005
                                                 JSC RUSAL, JSC RUSAL-UK, head of the legal department, head of the
                                                 department of rate policy, director of the energy department

                                                 2001–2003
                                                 JSC Nizhnovenergo, deputy CEO of reform and property

                                                 2005 – present
                                                 JSC SUEK, Director of the Strategy Department of the energy complex,
                                                 deputy director of strategy, mergers, and acquisitions

                                                 2007 – present
                                                 JSC Far East Generating Company, JSC Kuzbass Energy Sales Company,
                                                 JSC Prokopievskenergo, JSC Dalenergosetproekt, JSC Primorskoi Supergrid
                                                 Company, JSC Far East Energy Company, JSC Yenisei TGK (TGK-13),
                                                 JSC Kuzbassenergo, JSC Kuzbassenergo Electric Supergrid,
                                                 JSC Buryatenergosbyt, JSC Chita Energy Sales Company,
                                                 JSC Kuzbassgidroenergostroi, JSC Khabarovsk Power Technology
                                                 Company, JSC Khakassia SRK, JSC Sakhenergo, JSC TGK-11, member
                                                 of the Board of Directors

Owns no shares in JSC “OGK-6”




11. YUKHNEVICH, YURY BRONISLAVOVICH

Year of birth:                                   1976
Education:                                       graduated the Modern University for the Humanities in 1997, Candidate
                                                 of Economics, Moscow Academy of Finance and Law in 2004

Employment for the past 5 years:                 2000–2007
                                                 JSC RAO UES of Russia, chief specialist of the department of capital
                                                 management, chief expert of the department of capital management,
                                                 chief expert of the department of strategy of the Center for Reform
                                                 Management, head of the department of strategy of the Center for
                                                 Reform Management

                                                 2007 – present
                                                 Federal Energy Agency, Advisor to the director of the Federal Energy,
                                                 Reform, and Property Agency

                                                 2007 – present
                                                 JSC Volgogradenergo, JSC Astrakhanenergo, JSC Sverdlovenergo,
                                                 JSC Moscow Heating Network Company, JSC Moscow Municipal
                                                 Electrical Network Company, JSC Vologdaenergo, member of the Board
                                                 of Directors

Owns no shares in JSC “OGK-6”
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                                    96 | 97


EXECUTIVE
BODIES




CHIEF EXECUTIVE OFFICER                                                        Quarterly and yearly KPI, their values, methods of calculating indicators,
The CEO is the sole executive body of the Company, and has the right to        and the procedure for calculating the amount of the bonus are approved
act on behalf of the Company without power of attorney. The CEO heads          by order of the CEO.
the Administration, acting as Chairman of the Administration. The CEO is
accountable to the General Shareholders’ Meeting and the Company’s             The amount of quarterly bonuses on condition of meeting established
Board of Directors. The CEO is appointed to the post by the Board of           KPI values comprises up to 1.5 (one and one half ) times official salaries.
Directors. The CEO bears responsibility for realization of the objectives,     The amount of annual bonuses on condition of meeting established KPI
strategies, and policy of the Company.                                         values is up to 12 (twelve) official salaries.

Issues of material incentives for the CEO are regulated by the Provision       If KPI and additional bonus requirements specified by the order are met,
Concerning Material Incentives for the Chief Executive Officer, approved       the Company CEO has the right to award additional bonuses to senior
on October 7, 2005, by the Board of Directors. Bonuses for the CEO are         managers on the results of Company’s work for the accounting year in
awarded for meeting key performance indicators (quarterly and yearly)          an amount of up to 6 (six) official salaries.
established annually by the Company’s Board of Directors, as well as for
performance of particularly important tasks, receipt of state and industry     A special bonus is established for senior managers attaining a high
awards, and performance of tasks related to reforming the Company.             indicator for Ownership Capital Profitability KPI on the results of the
                                                                               Company’s operations for the accounting year (total for all senior
ADMINISTRATION                                                                 managers) in an amount of up to 1% of net Company profit. The decision
The administration is the collegiate executive body of the Company, and        to pay a special bonus and in what amount is made by the Company
manages day-to-day activity. The Administration is accountable to the          CEO depending on the contribution of the senior manager to the results
General Shareholders’ Meeting and the Company’s Board of Directors.            of the Company’s operations. Additionally, the Provision Concerning
Members of the Administration are appointed to their posts by the Board        Material Incentives for Senior Managers provides for a one-time bonus
of Directors. The Administration bears responsibility for realization of the   for particularly important tasks, not to exceed 6 (six) official salaries for a
objectives, strategies, and policy of the Company. The Chairman of the         single task; a bonus in the event of receiving state and industry awards;
Company’s Administration is the Chief Executive Officer. The activity of       and a bonus for performance of reform-related tasks.
the Administration is regulated by the Articles of Association and the
Provision Concerning the Administration. The Administration develops           On September 21, 2007, the JSC “OGK-6” Board of Directors approved the
long-term plans for realization of the main lines of activity and presents     JSC “OGK-6” Options Program (Protocol № 49 dated 09.21.2007), which
them for consideration to the Board of Directors, preliminarily considers,     determines the procedure for receipt by Options Program participants of
develops, and presents to the Board of Directors recommendations               the right to acquire shares in JSC “OGK-6”, as well as the procedure for
regarding specific issues within the competence of the Board of Directors,     Options Program participants to exercise their right to acquire Company
examines reports of deputy CEOs, and makes decisions regarding the             shares at a previously determined price. Within the context of the Options
conclusion of transactions with a value comprising 1% – 10% of the book        Program, a purchase and sale agreement of Company shares is concluded
value of Company’s assets. Members of the Administration are elected by        between the Options Program operating company and the participant,
the Board of Directors in a number determined by the Board of Directors.       with a delayed transfer of property rights to shares and payment within 3
In accordance with the October 7, 2005, decision of the Board of               years of the date of conclusion of the agreement. The Options Program is
Directors, the Administration consists of eight persons.                       unlimited and intended for the entire period of the Company’s activities.
                                                                               The current number of ordinary shares distributed in the context of the
The labor compensation system for members of the Administration is             Options Program is approved annually by the Company’s Board of
defined by labor contracts, as well as by the Provision Concerning             Directors by proposal of the CEO. The total number of ordinary Company
Material Incentives for Senior Managers of JSC “OGK-6”. In accordance          shares allotted to the Options Program shall not be greater than 2% of the
with the Provision, members of the Administration, such as deputy CEOs,        total number of ordinary Company shares placed. The purchase and sale
are considered senior managers, and the action of this Provision extends       price of shares is defined as the average weighted price of ordinary
to them. The Company’s Administration has no members of the                    Company shares calculated as of the date of conclusion of the contract
Administration that are not deputy Company CEOs.                               for a period of 365 days prior to the date of conclusion of the contract
                                                                               according to ZAO FB MICEX data. Participants in the Options Program
A system of bonuses is established for senior managers for meeting key         may be the CEO, Senior Managers (members of the Administration, the
performance indicators (KPI) for accounting periods (quarter and year).        chief accountant, a branch manager) and Company workers specified by
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




the CEO. Company workers having the right to participate in the Options Program and the number of shares
that each such worker may acquire are determined independently by the CEO. For each participant in the
Options Program the following maximum number of ordinary shares is established within 2% of the total
number of ordinary Company shares placed: CEO — 0.3%; senior manager — 0.15%; worker — 0.05%.

No purchase and sale contracts of shares were concluded in the context of the Options Program in 2007.

The table below presents the total amount of bonuses paid to all persons that were members of the Company
Administration, including the Chairman of the Administration, for 2007.

The membership of the Administration did not change in 2007.

    BONUSES
                                                                                                   thousand rubles


    Salaries                                                                                             20,653
    Increases and supplements                                                                             8,323
    Bonuses                                                                                              35,527

    TOTAL:                                                                                               64,503
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                          98 | 99


MEMBERSHIP
OF THE ADMINISTRATION




1. SANKO, VALENTIN MIKHAILOVICH —
CHAIRMAN OF THE ADMINISTRATION, JSC “OGK-6” CEO

                                         Year of birth:                     1963
                                         Place of birth:                    Zarechka, Lyubansky District, Minsk Region, Belorussia
                                         Education:                         graduated Leningrad Voznesensky Institute of Finance and Economics
                                                                            in 1990, candidate of economics
                                         Nationality:                       Russian Federation

                                         Employment for the past 5 years:   2005 – present
                                                                            JSC “OGK-6”, CEO, Chairman of the Administration, member of the Board
                                                                            of Directors

                                                                            2005–2005
                                                                            JSC KGRES-2, JSC KiGRES, JSC Novocherkasskaya GRES,
                                                                            JSC Ryazanskaya GRES, JSC Cherepovetskaya GRES;
                                                                            CEO (part-time)

                                                                            2001–2005
                                                                            JSC SEUK, CEO

                                         Portion of shares owned
                                         in JSC “OGK-6”:                    0.02929%




2. BINKO, GENNADY FELIXOVICH

                                         Year of birth:                     1958
                                         Place of birth:                    Moscow
                                         Education:                         graduated the Moscow Institute of Engineering and Physics in 1982 and
                                                                            the All-Russian Extramural Institute of Finance and Economics in 2004,
                                                                            candidate of physics mathematics
                                         Nationality:                       Russian Federation

                                         Employment for the past 5 years:   2005 – present
                                                                            JSC “OGK-6”, deputy CEO of sales and marketing, member of the
                                                                            Administration

                                                                            2001–2005
                                                                            JSC SEUK, deputy CEO of management of JSC Arkhenergo

                                         Owns no shares in JSC “OGK-6”
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




3. GULYAEV, VALERY ALEXEEVICH

Year of birth:                                   1957
Place of birth:                                  Vologda
Education:                                       graduated Vologodsky Technical Institute in 1980 and Rostov State
                                                 University of Construction in 1999
Nationality:                                     Russian Federation

Employment for the past 5 years:                 2005 – present
                                                 JSC “OGK-6”, deputy CEO of purchasing and logistics,
                                                 member of the Administration

                                                 2001–2005
                                                 JSC SEUK, director of resources

Portion of shares owned
in JSC “OGK-6”:                                  0.0055%




4. DUBENETSKY, VIKTOR PETROVICH

Year of birth:                                   1961
Place of birth:                                  Pinsk, Brestsk Region, Belorussia
Education:                                       graduated Belorussian State University in 1986
Nationality:                                     Russian Federation

Employment for the past 5 years:                 2005 – present
                                                 JSC “OGK-6”, deputy CEO,
                                                 member of the Administration

                                                 2002–2005
                                                 MID RF, First Secretary of Department 2 of the CIS

                                                 2000–2002
                                                 MID RF, Second Secretary of the Department of North Asian Countries

Owns no shares in JSC “OGK-6”
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                                                     100 | 101




5. KOLESNIKOV, ALEXANDER STEPANOVICH

                                       Year of birth:                     1957
                                       Place of birth:                    Sochi
                                       Education:                         graduated the S. Ordzhonikidze Moscow Institute
                                                                          of Aviation in 1983
                                       Nationality:                       Russian Federation

                                       Employment for the past 5 years:   2005 – present
                                                                          JSC “OGK-6”, deputy CEO of corporate governance and personnel
                                                                          management, member of the Administration

                                                                          2000–2005
                                                                          JSC RAO UES of Russia, head of the Department of Shareholder Relations
                                                                          of the Corporate Center

                                       Owns no shares in JSC “OGK-6”




6. SELYAKOV, ALEXEI NIKOLAEVICH

                                       Year of birth:                     1959
                                       Place of birth:                    Alekseevo, Vologda District, Vologda Region
                                       Education:                         graduated Vologodsky Dairy Institute in 1981 and the St. Petersburg
                                                                          Voznesensky University of Finance and Economics in 1994, candidate
                                                                          of economics
                                       Nationality:                       Russian Federation

                                       Employment for the past 5 years:   2005 – present
                                                                          JSC “OGK-6”, deputy CEO of economics and finance,
                                                                          member of the Administration

                                                                          2001–2005
                                                                          JSC SEUK, director of finance

                                       Owns no shares in JSC “OGK-6”
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


7. TATARINOV, NIKOLAI ALEXANDROVICH

Year of birth:                                   1959
Place of birth:                                  Zaozerny, Krasnoyarskaya Territory
Education:                                       graduated Krasnoyarskaya Technical Institute in 1981
Nationality:                                     Russian Federation

Employment for the past 5 years:                 2005 – present
                                                 JSC “OGK-6”, deputy CEO of production —
                                                 chief engineer, member of the Administration

                                                 2004–2005
                                                 ZAO PRP Energoremont, technical director —
                                                 first deputy CEO

                                                 2003–2004
                                                 JSC KiGRES, chief engineer

                                                 2000–2003
                                                 JSC KGRES-2, first deputy — chief engineer

Owns no shares in JSC “OGK-6”




8. CHEKHOEV, ASLAN INALOVICH

Year of birth:                                   1965
Place of birth:                                  Tkhinvali, South Ossetian Autonomous Area
Education:                                       graduated First Leningrad Pavlov
                                                 Medical Institute in 1989
Nationality:                                     Russian Federation

Employment for the past 5 years:                 2005 – december 2007
                                                 JSC “OGK-6”, deputy CEO of investment implementation
                                                 and capital development

                                                 2005 – january 2008
                                                 JSC “OGK-6”, member of the Administration

                                                 2004–2005
                                                 Central Company of Financial and Industrial Group JSC RusInkor,
                                                 first vice president of industrial assets and sales management

                                                 2003–2004
                                                 JSC Kiselevskugol Coal Company, first deputy CEO

                                                 1997–2003
                                                 JSC TMK-OK, director

Owns no shares in JSC “OGK-6”
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                     102 | 103


AUDIT COMMITTEE




The Company’s Audit Committee is elected by the General Shareholders’ Meeting to supervise the Company’s
financial and economic activities. The Audit Committee is a collegial body consisting of five persons. The order
of the Audit Committee’s activities is regulated by the Articles of Association and the Provision Concerning the
Audit Committee.

For participation in checking (auditing) financial and economic activities, a member of the Audit Committee is
paid a one-time bonus amounting to three times the minimum monthly base rate for first-category workers
adjusted for indexation established by the industry rate agreement. For each check (audit) of financial and
economic activities conducted, members of the Audit Committee may be paid additional bonuses of up to
twenty times the minimum monthly base rate for first-category workers adjusted for indexation established by
the industry rate agreement. The procedure and dates for payment of additional bonuses are determined by
the Company’s Board of Directors. The amount of bonuses paid to the Chairman of the Audit Committee is
increased by 50%. A member of the Audit Committee is compensated for expenses related to participation in
the meeting of the Audit Committee and audits conducted, as per the norms of business expense
compensation current at the time of the meeting or audit.

In 2007 members of the Audit Committee were paid bonuses of 565,375 rubles.

From 05.11.2006 to 06.29.2007 an Audit Committee selected by decision of the Board of Directors of JSC RAO
UES of Russia, acting as an annual JSC “OGK-6” General Shareholders’ Meeting on 05.11.2006 (protocol #221),
operated in the Company with the following membership:

»    Zavartsev, Alexei Vladimirovich
»    Ivanov, Alexei Evgenievich
»    Minifaeva, Yulia Evgenievna
»    Sidorov, Sergei Borisovich
»    Uzgorov, Igor Ivanovich

On 06.29.2007 the Annual General Shareholders’ Meeting of JSC “OGK-6” (protocol #5 dated 06.29.2007) elected
a Company Audit Committee with the following membership:

1. SIDOROV, SERGEI BORISOVICH — CHAIRMAN OF THE AUDIT COMMITTEE

Year of birth:                         1952
Education:                             higher

Employment for the past 5 years:       1999–2004
                                       JSC RAO UES of Russia, head of the Department of Financial Auditing

                                       2004 – present
                                       JSC RAO UES of Russia, head of the Department of Internal Auditing of
                                       the Corporate Center

Owns no shares in JSC “OGK-6”
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


2. ZAVARTSEV, ALEXEI VLADIMIROVICH

Year of birth:                                   1966
Education:                                       higher

Employment for the past 5 years:                 2001–2003
                                                 JSC Sveza-Les, deputy CEO of economics and finance, commercial director

                                                 2003–2005
                                                 JSC SEUK, deputy CEO of internal auditing

                                                 2005 – present
                                                 JSC “OGK-6”, Manager of the Board of Internal Auditing, member of the Audit Committee

Owns no shares in JSC “OGK-6”



3. IVANOVA, KSENIA VALARIEVNA

Year of birth:                                   1970
Education:                                       higher

Employment for the past 5 years:                 2000 – present
                                                 JSC RAO UES of Russia, first-category specialist, leading specialist, chief specialist of the Department of Capital Records;
                                                 chief specialist, leading expert, head expert of the Department of Corporate Governance of the Corporate Center; chief expert,
                                                 head of the office of the Department of Corporate Governance and Shareholder Relations of the Corporate Center

Owns no shares in JSC “OGK-6”



4. KLESHNINA, NATALIA VIKTOROVNA

Year of birth:                                   1960
Education:                                       higher

Employment for the past 5 years:                 2000–2007
                                                 JSC RAO UES of Russia, leading expert of the Department of Internal Auditing
                                                 of the Corporate Center

Owns no shares in JSC “OGK-6”



5. PROSTOKISHINA, TATIANA ALEXANDROVNA

Year of birth:                                   1957
Education:                                       higher

Employment for the past 5 years:                 2000–2007
                                                 JSC RAO UES of Russia, chief specialist and leading expert of the Department
                                                 of Internal Auditing of the Corporate Center

Owns no shares in JSC “OGK-6”
|   CORPORATE GOVERNANCE STRUCTURE
    AND PRINCIPLES                                                                                   104 | 105


AUDITOR




The Company Auditor is approved annually by the General Shareholders’ Meeting for the purposes of auditing
the Company’s financial and economic activities in accordance with legislative acts of the Russian Federation
on the basis of a contract concluded with the former. The amount of payment for the services of the Auditor is
determined by the Company’s Board of Directors. The Company Auditor audits the Company’s financial and
economic activity in accordance with the requirements of the legislation of the Russian Federation and on the
basis of a contract concluded with the former.

By decision of the Annual General Shareholders’ Meeting of JSC “OGK-6” (protocol № 5 dated 06.29.2007) the
Company Auditor approved ZAO Pricewaterhouse Coopers Audit.

The amount of payment for the services of the auditor for 2007 was 43,286,313.22 rubles, including:
» for conducting audits of accounting reports compiled in accordance with the 2005 international financial
   reporting standard — 507,400 rubles;
» for conducting audits of accounting reports compiled in accordance with the 2006 international financial
   reporting standard — 4,708,200 rubles;
» for conducting audits of accounting reports compiled in accordance with the requirements of Russian
   legislation for 2006 — 5,015,000 rubles;
» for information and consulting services — 14,026,407.82 rubles;
» for audit services related to a prospectus — 1,971,225.40 rubles;
» for audit services — 17,058,080 rubles.
Maracana
THE MARACANA STADIUM, ONE OF THE WORLD’S LARGEST SOCCER FIELDS,
SEATS 200,000 FANS. THE WHOLE OGK-6 TEAM OF 6,406 EMPLOYEES
MAY BE SEATED IN ONE SECTOR OF THE STADIUM.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                         106 | 107




                                        8        OUR
                                                 STAFF
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



8. OUR
STAFF

The main lines of JSC “OGK-6” staff              compensation, a quarterly analysis        I. PERSONNEL                        STAFF STRUCTURE BY SUBSIDIARIES
policy for 2007 were formulated                  of the implementation was                 STRUCTURE                           AND THE COMPANY EXECUTIVE OFFICE
with allowance for the formation of              conducted, with a subsequent                                                  AS OF 12.31.2007, %
an integrated Company structure                  discussion of the results with the        The total number of personnel of
upon completion of reorganization                directors of personnel services           JSC “OGK-6” as of December 31,
on 09.29.2006 (from the time of the              and chairmen of subsidiary labor          2007, was 6406 persons, including
creation of Company subsidiaries).               union committees.                         913 managers, 1377 specialists,
In regard to this:                                                                         56 executives, and 4060 workers.
                                                 4. For the purposes of forming a
                                                                                                                                               3.8%
1. Measures have been carried                    corporate culture, the first summer
out in the context of social                     Olympics of JSC “OGK-6” workers
partnership with the Board of                    were held.                                                                              6.7%
                                                                                                                                                      24.2%
Representatives of Primary Trade
Union Organizations of JSC “OGK-                 5. In 2007, the RSLR Committee,                                                11.7%
6” for implementation of a unified               formed under parity conditions of
system of labor compensation,                    the administration and subsidiary
and on April 1, 2007, the                        labor union committees,
subsidiaries transitioned to a                   conducted four meetings on                                                    14.9%                          21.1%
unified provision concerning labor               compromise resolution of issues
compensation of workers of JSC                   of labor and social mutual
“OGK-6” subsidiaries.                            relations within the staff.
                                                                                                                                            17.6%
2. On January 1, 2007, a collective              6. In order to evaluate the
agreement for 2007–2008 came                     dynamics of changes in personnel,
into affect in all subsidiaries, under           an internal audit of staff and staff
unified conditions agreed by the                 processes (IASSP) was instituted and
Committee for Regulation of                      is currently in effect in Company                                                  — RGRES
Social Labor Relations (RSLR                     subsidiaries, according to the results
Committee) of JSC “OGK-6”.                       of which recommendations are                                                       — NchGRES
                                                 made to the directors of subsidiaries
3. In relation to the transition to a            for personnel selection, rotation,                                                 — KiGRES
unified system of labor                          and training.
                                                                                                                                    — KGRES-2

                                                                                                                                    — ChGRES
    NAME OF SUBSIDIARY                                     TOTAL NUMBER OF PERSONS
                                                                                 persons                                            — GRES-24

    Ryazanskaya GRES                                                             1,354                                              — ExOffice
    Novocherkasskaya GRES                                                        1,549
    Kirishskaya GRES                                                               956
    Krasnoyarskayay GRES-2                                                       1,128
    Cherepovetskaya GRES                                                           747
    GRES-24                                                                        430
    Executive branch                                                               242

    TOTAL FOR JSC “OGK-6”:                                                       6 406
                                                                                     |   OUR STAFF
                                                                                                                                                               108 | 109




CHANGE IN THE TOTAL NUMBER                                                           In the period of 2005-2007, total           Optimization of personnel led to a
OF COMPANY PERSONNEL FOR 2004–2007                                                   number of Company employees                 reduction of the share of worker
                                                                                     decreased by 515 persons.                   positions and an increase in the
                                                                                                                                 share of specialists in the
                                                                                     The primary causes of reduction in          personnel structure. The increase
7000                                                                                 the number of personnel are:                in the share of specialists likewise
                                                                                     » withdrawal of non-core                    occurred due to an increase in the
                                                                                        (service) subdivisions, which in         number of employees in the
                                                                                        particular lead to a significant         company’s executive office. The
                                                                                        reduction in the number of               share of executive office
                                                                                        personnel of GRES-24 and                 employees in the number of
                6921                 6558                         6406                  Ryazanskaya GRES.                        Company employees increased
                                                                                     » optimization of numbers and               from 3.3% in 2006 to 3.8% in 2007.
                                                                                        structural subdivisions with
6000                                                                                    duplicated functions (195 full-
                                                                                        time personnel in 2007 alone).
             31.12.2005           31.12. 2006                31.12. 2007




CHANGE IN THE TOTAL NUMBER OF PERSONNEL
OF COMPANY SUBSIDIARIES FOR 2005–2007


1600




                 1467 1379 1354      1537 1570 1549           974        979   954         1162 1139 1128         783      803      747          874     472     430

   0

                          RGRES           NchGRES                   KiGRES                       KGRES-2                 ChGRES                        GRES-24



                                                    —31.12.2005                                — 31.12.2006                               — 31.12.2007
    ANNUAL REPORT         2007       JSC “OGK-6”
|                     |          |




                                                                                                                                                    COMPOSITION OF WORKERS BY PERSONNEL
           14.3%                                                                            — Workers                                               CATEGORY AS OF 12.31.2007, %
                    0.9%
                                                                                            — Specialists
21.5%
                                                                                            — Managers

                                                                                            — Executives
                                 63.4%




                                                                                                                                                    AGE PROFILE OF WORKERS
                                                                                            — 30 and over
                                                                                                                                                    AS OF 12.31.2007, %
              17.2%

                                                                                            — Under 30
     6%
                                                                                            — Working retirees


                                     76.8%




One of the Company’s important                        who are capable of efficiently                  for 2006 (17.2%); the share of
tasks in the area of personnel                        accomplishing the tasks facing the              working retirees likewise remained
management is the formation of a                      Company. In 2007, the share of                  at a level of 6%.
motivated staff and attraction of                     employees under 30 years of age
young specialists to the company                      was successfully kept at the level



    CATEGORY                                       AS OF 12.31.2005                          AS OF 12.31.2006                  AS OF 12.31.2007     COMPOSITION OF WORKERS

    Managers *                                                1 044                                         1 005                             913
    Specialists                                               1 196                                         1 303                           1 377
    Executives                                                   93                                            65                              56
    Workers                                                   4 607                                         4 185                           4 060

    * Managers include: skilled workers, supervisors, deputy heads of structural subdivisions (workshops, departments, services, laboratories,
      offices, boards), directors and deputy subsidiary directors, and managers of JSC “OGK-6“



    AGE PROFILE                                    AS OF 12.31.2005                          AS OF 12.31.2006                  AS OF 12.31.2007     AGE PROFILE OF WORKERS

    Under 30 years                                            1,070                                         1,129                           1,100
    30 years to retirement age                                5,351                                         5,082                           4,921
    Working retirees                                            500                                           347                             385
|   OUR STAFF
                                                                                                                                                                      110 | 111




DYNAMICS OF CHANGE IN THE SHARE
OF EMPLOYEES WITH HIGHER EDUCATION
IN COMPANY SUBSIDIARIES IN 2005–2007,
%


40




                  32   33.3    34.8     28.2     30.5    31.6       29.7     31.7   34.5       33.4     34      33.7    21.8    26.2    28.5          24.7     35.2    38.3

    0

                       RGRES                   NchGRES                     KiGRES                     KGRES-2                  ChGRES                        GRES-24


                                                         — 31.12.2005                             — 31.12.2006                                 — 31.12.2007




                                                  EDUCATION LEVEL                          14.7 million rubles . The share of      attention will be given to the
                                                  In 2007 the education level of           personnel that underwent                training of reserve staff and
                                                  company personnel continued to           professional training out of the        anticipatory training of employees.
                                                  grow: the share of employees with        total number of Company
                                                  higher education increased by            personnel was 39.1% in 2007,
                                                  1.7%, from 33.8% in 2006 to 35.5%        including 53.9% for the executive
                                                  in 2007.                                 office. For the period 2005–2007,
                                                                                           the share of workers that
                                                  25.7% of company employees               underwent professional training
                                                  have post-secondary education.           out of the total number of workers
                                                  The share of the latter decreased        increased by 12.2%.
                                                  by 0.5% in 2007 in comparison
                                                  with 2006.                               Training and staff development of
                                                                                           workers in Company subsidiaries
                                                  The company’s management                 is conducted in accordance with
                                                  recognizes the importance of on-         the JSC RAO UES of Russia
                                                  going staff development and              Standard for training, retraining,
                                                  professional training of employees.      and staff development of
                                                  In 2007, expenses for education          personnel, implemented in the
                                                  and retraining of personnel were         Company. In 2008–2009, primary
    ANNUAL REPORT           2007       JSC “OGK-6”
|                       |          |




II. SALARIES                                              The average salary of workers of       The growth of the average salary in
                                                          company subsidiaries (GRES) in         company subsidiaries in 2007 was
                                                          2007 was 24,098 rubles, or 14%         achieved primarily due to the
                                                          more than in 2006. The growth rate     growth of the average salary
                                                          of the average salary of subsidiary    among specialists and workers.
                                                          workers is equal to the growth rate
                                                          of the consumer price index, which
                                                          in 2007 was 11.9%.




    JSC “OGK-6” SUBSIDIARIES                                                          AVERAGE MONTHLY SALARY OF WORKERS, IN RUBLES     AVERAGE MONTHLY EMPLOYEE SALARIES
                                                            2005                                2006                          2007     BY OKG-6 BRANCH

    Ryazanskaya GRES                                      16,861                                20,970                       22,062
    Novocherkasskaya GRES                                 19,207                                21,298                       21,897
    Kirishskaya GRES                                      22,016                                23,307                       26,830
    Krasnoyarskayay GRES-2                                20,836                                26,782                       28,831
    Cherepovetskaya GRES                                  15,237                                16,489                       21,000
    GRES-24                                               20,858                                21,507                       25,320

    TOTAL FOR ALL GRES                                   19,143                                 21,136*                      24,098

    * Results for 2006, adjusted on the basis of reports provided by subsidiaries.




    PERSONNEL CATEGORY                                                                AVERAGE MONTHLY SALARY OF WORKERS, IN RUBLES     AVERAGE MONTHLY EMPLOYEE SALARIES
                                                            2006                                2007                     % growth      BY PERSONNEL CATEGORY

    Managers                                              36,930                                40,172                        108.8
    Specialists and engineers                             20,374                                23,996                        117.8
    Workers                                               15,971                                18,896                        118.3

    TOTAL FOR ALL GRES                                   21,136                                 24,098                          114
                  |   OUR STAFF
                                                                                   112 | 113




III. RETIREMENT   For the purposes of ensuring            The parity plan is based on the
PROGRAM           social security of Company              principle that worker and
                  employees and veterans in               employer jointly and in equal
                  accordance with the principles          proportions have the ability to
                  contained in the strategy of the        finance the NPP for the worker.
                  nongovernmental pension
                  program for workers of companies         In 2007, the total amount of
                  included in the power holding           financing of all joint Company
                  company JSC RAO UES of Russia,          accounts opened in the NPFP and
                  Nongovernmental Pension                 its subsidiaries was 127,472,359
                  Programs (NPP) for Company              rubles Financing in the amount of
                  workers are developed annually.         120,918,448 rubles is provided
                                                          for in 2008.
                  The nongovernmental pension
                  program of JSC “OGK-6” workers is
                  called upon to ensure a fitting
                  quality of life for Company workers
                  of retirement age and efficient
                  resolution of staff issues related to
                  attraction, retention, and
                  motivation of personnel. The base
                  nongovernmental pension fund
                  for realization of the NPP of JSC
                  “OGK-6” workers is the
                  Nongovernmental Pension Fund
                  of the Power Industry (NPFP).

                  The structure of the NPP of JSC
                  “OGK-6” workers includes programs
                  of corporate and parity plans.

                  The corporate plan unites pension
                  programs in the context of which
                  the company arranges additional
                  NPPs for its workers using internal
                  funds on the basis of the respective
                  Provision concerning NPPs and the
                  NPP contract concluded with the
                  nongovernmental pension fund.
Zeppelin NT
THE XXI CENTURY IS REVIVING AIRSHIPS, THE MOST ENVIRONMENTALLY
SAFE TRANSPORT. WE CARE ABOUT THE ENVIRONMENTAL SAFETY OF OUR
PRODUCTION. IN 2007, THE COMPANY REDUCED HAZARDOUS EMISSIONS
BY OVER 12%.
|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                                 114 | 115




                                        9        ENVIRONMENTAL
                                                 PROTECTION
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



9. ENVIRONMENTAL
PROTECTION

Environmental protection is one of                 43.6 thousand tons less than in           I. ENVIRONMENTAL
the primary tasks of all industries,               2006 (3.3%).                              PROTECTION MEASURES
including the electrical power
industry. It is widely known that                  For each OGK-6 plant, over 80% of         In 2007, the Greenhouse Gas
the process of electric power and                  pollutants formed are neutralized.        corporate information analysis
heat generation produces a                         Due to the fact that at Kirishskaya       system (GGCIAS) was
negative effect on the                             GRES and GRES-24 the primary              implemented at OGK-6 power
environment protection, in other                   form of fuel used is gas, pollutants      plants. At Novocherkasskaya GRES
words the greater the volume of                    formed as a result of the operation       and Cherepovetskaya GRES, plans
power generated, the more                          of these plants primarily contain         for standards of maximum
pollutants will be formed.                         sulfur dioxide (SO2), carbon              permissible atmospheric
                                                   monoxide (CO), and nitrous oxide,         emissions (MPE) were developed.
In 2007, 1,536.2 thousand tons of                  which are impossible to neutralize,       Additionally, repairs of aspiration
pollutants were formed due to the                  since at present there are no             and dust extraction plants were
activity of JSC “OGK-6” power                      processes for neutralizing them.          carried out at Cherepovetskaya
plants, which is 70.2 thousand                                                               GRES. At Kirishskaya GRES, an
tons less than in 2006 (or a                                                                 entire series of tasks for the
decrease of 4.6%).                                                                           reconstruction of the chemical
                                                                                             water treatment system was
Understanding the importance                                                                 performed in 2007.
of environmental protection, the
company constantly monitors
the environmental situation and
implements measures for
neutralizing and recycling
pollutants formed due to plant
operation. In 2007, 1,325.8
thousand tons of pollutants
were trapped and neutralized, or




    INDEX                              |                         TOTAL POLLUTANTS FORMED |           POLLUTANTS CAPTURED AND NEUTRALIZED |      PORTION OF NEUTRALIZED POLLUTANTS, %
                                                       2005            2006               2007           2005            2006            2007        2005           2006         2007


    Ryazanskaya GRES                               413,879         262,453          323,860          363,046         223,027         280,818          88             85           87
    Novocherkasskaya GRES                          671,275         788,173          713,306          595,797         691,427         628,388          89             88           88
    Kirishskaya GRES                                 6,987          18,862            7,030                0               0               0           0              0            0
    Krasnoyarskayay GRES-2                         269,580         263,776          291,009          223,094         214,303         241,246          83             81           83
    Cherepovetskaya GRES                           101,353         272,471          200,298           86,621         240,643         175,482          85             88           88
    GRES-24                                            607             629              663                0               2               0           0              0            0

    TOTAL FOR OGK-6                              1,463,682       1,606,363        1,536,206        1,268,558       1,369,402       1,325,936          87            85            86
                                    |   ENVIRONMENTAL PROTECTION
                                                                                                                                                   116 | 117


                                    II. ATMOSPHERE
                                    POLLUTION




                                    The total volume of pollutant          Convention on Climate Change               enterprises for further inclusion of
                                    emissions into the atmosphere for      (FCCC) in Kyoto (Japan, December           greenhouse gas emissions in the
                                    2007 was 210 thousand tons, or 27      of 1997). In accordance with the           Russian register of carbon units and
                                    thousand tons (13%) less than for      protocol, Russia is obliged to limit       for meeting FCCC requirements.
                                    2006. The reduction in pollutant       annual emissions of greenhouse             In accordance with this decision, a
                                    emissions occurred primarily due to    gases in 2008-2012 to a level not          contract has been concluded
                                    a change in the fuel composition at    exceeding the level of greenhouse          between JSC “OGK-6” and the non-
                                    the plants.                            gas emissions in 1990.                     profit environmental investment
                                                                                                                      organization Energy Carbon Fund
                                    Climate change is one of the most      In ratifying the Kyoto Protocol, each      for inventory of greenhouse gases
                                    widely discussed problems in the       country assumes specific                   for 1990-2005 and for creation and
                                    modern world. The greenhouse           obligations on a national level. The       implementation of the Greenhouse
                                    effect is caused by water vapor,       most significant of these is a tally of    Gases information analysis system of
                                    carbon dioxide, methane, nitrous       greenhouse gas emissions and               JSC “OGK-6”.
                                    oxide, and a range of other gases of   reporting in accordance with the
                                    which the atmosphere contains an       FCCC rules. As per the Kyoto               The objective of the work is to
                                    insignificant concentration. The       Protocol, all developed countries          create the conditions for attracting
                                    greenhouse effect has always           (including the RF) are obliged to          investments intended for
                                    existed; however, today it is being    create a national system of appraisal      implementing measures for
                                    increased anthropogenically.           of anthropogenic emissions no later        increasing energy efficiency and
                                                                           than 2007. Reports of greenhouse           energy conservation, which help
                                    To regulate emissions of               gas emissions are planned for              reduce greenhouse gas emissions,
                                    greenhouse gases, the Kyoto            inclusion in the new generation of         and for using the Kyoto Protocol
                                    Protocol, which establishes the        ISO standards.                             mechanisms of Anticipated Project
                                    obligations of developed countries                                                Credit Periods: 2009-2012 and 2011-
                                    to regulate greenhouse gas             In JSC RAO UES of Russia, the              2012, respectively. At this stage, the
                                    emissions in 2008-2012, was            decision has been made to create a         preliminary project information has
                                    adopted at the Third Conference of     corporate cadastre and organize a          been developed in its entirety. In
                                    the Parties of the UN Frames           monitoring system at holding               accordance with the provisions of




DYNAMICS OF ATMOSPHERE POLLUTION,       POWER PLANT                |                                                              TOTAL ATMOSPHERE POLLUTION
IN TONS                                                                              for 2005                          for 2006                        for 2007


                                        Ryazanskaya GRES                            50,833                            39,426                          43,042
                                        Novocherkasskaya GRES                       75,478                            96,746                          84,916
                                        Kirishskaya GRES                             6,987                            18,862                           7,030
                                        Krasnoyarskaya GRES-2                       46,486                            49,473                          49,762
                                        Cherepovetskaya GRES                        14,732                            31,827                          24,815
                                        GRES-24                                        604                               626                             664

                                        TOTAL FOR “OGK-6”                          195,124                           236,960                         210,231
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




the Kyoto Protocol, attraction of                   The reduction in greenhouse gas          the ecological audit, the
“land investments” is possible after                emissions is due to the change in        environmental work conducted by
preparation of technical                            fuel.                                    the enterprise was highly rated.
documentation, project                                                                       Despite a significant increase in the
determination, and conclusion of                    In the context of the program of         volumes of electric power
purchase and sale contracts of Units                implementation of the company’s          generation, a more than two-fold
of Reduced Emissions with                           environment protection policy, an        decrease has been noted in the
subsequent registration of projects                 ecological audit of JSC “OGK-6”          volumes of emissions in comparison
in the RF JIP of the Ministry of                    subsidiaries GRES-24, Kirishskaya        with 1995, due to the
Economic Development and Trade.                     GRES, and Novocherkasskaya GRES          implementation of a set of
Performance and organization of                     has been conducted. The                  environmental protection measures.
these tasks is taken into account in                conclusion has been reached that
the contracts concluded between                     the plants are ready for
JSC “OGK-6” and NIEO Energy                         implementation of the ecological
Carbon Fund.                                        management system of the ISO
                                                    14001:2004 international standard
Emissions of greenhouse gases by                    in the area of environmental
“OGK-6” power plants in 2007                        protection, which provides for
decreased by 11,427 thousand tons                   evaluation of enviromental activity
(or 33%) in comparison with 2006.                   by European standards. Following




    40,000                                                                                                                           DYNAMICS OF GREENHOUSE
                                                                                     5,341                                           GAS EMISSIONS FOR 2005–2007,
                                                                                                                                     IN THOUSAND TONS
                                                                                    13,930
                                                   1,606
                                                  13,808                                                                 221
                                                                                                                      11,677

                                                                                    15,551
                                                  12,205                                                              11,497


        0
                                           2005                              2006                              2007




              — from coal burning                              — from gas burning                    — from fuel oil burning
|   ENVIRONMENTAL PROTECTION
                                                                                                                      118 | 119




DYNAMICS OF GREENHOUSE GASES EMISSIONS IN ACCORDANCE WITH THE TYPE OF FUEL USED, IN THOUSAND TONS

    TYPE OF FUEL                                   2005                       2006                   2007    2007/2006 CHANGES

    Gas
    Ryazanskaya GRES                               2,916                      2,885                  3,444                  559
    Novocherkasskaya GRES                          2,006                      1,940                  2,285                  345
    Kirishskaya GRES                               6,831                      7,221                  3,939              - 3,282
    Cherepovetskaya GRES                           1,173                        821                    951                  130
    GRES-24                                          883                      1,063                  1,055                   -8

    Total for OGK-6                               13,808                    13,930                  11,677              - 2,253

    Oil and thermal
    Ryazanskaya GRES                                  19                        264                      5                - 259
    Novocherkasskaya GRES                             14                         55                      -                  - 55
    Kirishskaya GRES                               1,567                      5,000                    207              - 4,793
    Krasnoyarskaya GRES-2                              4                          8                      6                    -2
    Cherepovetskaya GRES                               1                         15                      3                  - 12

    Oil and thermal, total for OGK-6               1,606                     5,341                    221               - 5,120

    Solid fuel
    Ryazanskaya GRES                               2,129                      2,953                  2,820                - 133
    Novocherkasskaya GRES                          4,942                      6,264                  1,614              - 4,650
    Krasnoyarskaya GRES-2                          4,461                        102                  5,315                5,213
    Cherepovetskaya GRES                           1,873                      1,098                  1,746                  648

    Solid fuel, total for OGK-6                   12,205                    15,551                  11,497              - 4,054

    TOTAL GREENHOUSE GAS EMISSIONS FOR OGK-6      27,619                    34,822                  23,395             - 11,427
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|   ANNUAL REPORT
                    |   2007
                               |   JSC “OGK-6”
                                                              120 | 121




                10                               FINANCIAL
                                                 ACCOUNTING
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



10. FINANCIAL
ACCOUNTING

I. AUDIT REPORT
The text of the audit report of ZAO
Pricewaterhouse Coopers Audit                            AUDITOR’S REPORT
on the financial (accounting)                            ON FINANCIAL (ACCOUNTING) STATEMENTS*
report of JSC “OGK-6” for 2007 is
presented below. The said                                To: Shareholders of Open Joint-Stock Company The Sixth Wholesale Power Market Generating
accounting report is not included                        Company
in this annual report. Hence, all
references to the appended                               Auditor
accounting report contained in
the audit report pertain to                              Closed Joint-Stock Company PricewaterhouseCoopers (ZAO PwC Audit)
documents not presented in this                          Certificate of State Registration of ZAO PwC Audit No. 008.890 issued by the Moscow State
Annual Report. This audit report is                      Registration Chamber on February 28, 1992.
applicable only to the 2007
accounting report of JSC “OGK-6”.                        Certificate of the Unified State Register of Legal Entities of a register entry made before July 1,
A copy of the audit report and the                       2002, No. 1027700148431 of August 22, 2002, issued by Interdistrict Tax Inspectorate of the
accounting report of JSC “OGK-6”                         Russian Ministry of Taxes and Levies No. 39 of Moscow.
for 2007 is posted in electronic
form on the JSC “OGK-6” website                          Audit License No E000376 issued by the Ministry of Finance of the Russian Federation on May 20
(www.ogk6.ru) in the Shareholders                        2002. The license is valid until May 20, 2012.
and Investors section.
                                                         Member of the Russian Institute of Professional Accountants and Auditors and the Russian Audit
                                                         Chamber.

                                                         Auditee

                                                         Open Joint-Stock Company The Sixth Wholesale Power Market Generating Company
                                                         49 Bolshaya Sadovaya Street, Rostov-on-Don, 344007, Russian Federation.

                                                         Certificate of state registration of the joint-stock company under state registration number
                                                         1056164020769, issued by the Leninsky District Tax Inspectorate of the Russian Ministry of Taxes
                                                         and Levies of Rostov-on-Don on March 17, 2005.




                                                         The company is the authorized user of the company name and trademark “PricewaterhouseCoopers”         (2)


                                                 * Original document is prepared in Russian.
|   FINANCIAL ACCOUNTING
                                                                                                           122 | 123




            AUDITOR’S REPORT
            on financial (accounting) statements of Open Joint-Stock Company
            The Sixth Wholesale Power Market Generating Company*

            To: Shareholder of Open Joint-Stock Company The Sixth Wholesale Power Market Generating
            Company:

            1. We have audited the accompanying financial (accounting) statements of Open Joint-Stock
               Company The Sixth Wholesale Power Market Generating Company (the “Company”) for the
               period from January 1, 2007, through December 31, 2007. Financial (accounting) statements of
               the Company include Accounting Balance Sheet, Profit and Loss Statement, Statement of
               Changes in Equity, Cash Flow Statement, Balance Sheet Supplement, and Explanatory Note
               (hereinafter, all reports are collectively referred to as “Financial (Accounting) Statements”) in
               accordance with the law of the Russian Federation applicable to preparing financial
               (accounting) statements. The Statements prepared under the above laws are materially
               different from the statements prepared under the International Financial Reporting Standards.

            2. The Company’s executive body is responsible for preparing and submitting financial
               (accounting) statements. Our responsibility is to express an opinion as to whether the financial
               statements give a true and fair view and are properly prepared in accordance with the laws of
               the Russian Federation based on our audit.

            3. We conducted our audit in accordance with the Federal Law on Audit Activity, the Federal
               laws/standards of auditing, International Standards on Auditing, and our own internal
               standards.

              The audit was planned and conducted so as to obtain reasonable assurance about whether the
              financial (accounting) statements are free of material misstatements. This audit included
              examining, on a test basis, evidence supporting the amounts and disclosures in the financial
              (accounting) statements. The audit also included an assessment of adherence to the
              accounting principles and standards used in preparing the financial (accounting) statements
              and an examination of key estimates made by management of the Company, as well as an
              evaluation of the overall presentation of the financial (accounting) statements. We believe that
              our audit provides a sufficient basis for our opinion on true presentation of the financial
              (accounting) statements and the compliance of accounting statements to the laws of the
              Russian Federation.




                                                                                                              (3)


* Original document is prepared in Russian.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




           AUDITOR’S REPORT*

           4. As of December 31, 2007, items 230 and 240 of the Company’s Balance Sheet report
              unredeemed and uncovered buyer’s accounts receivable for shipped goods in the amount of
              391,239 rubles. No allowance for this debt is credited. The company failed to report this
              doubtful debt in its annual balance sheet for 2007, as well as its plans for collecting it. Possible
              overstatement of accounts receivable and profit is evaluated at 391,239 rubles.

           5. In our opinion, except for the effect of the circumstances indicated in the above paragraph on
              the financial (accounting) statements, the Company’s financial (accounting) statements
              attached to this Report present fairly, in all material respects, the financial position of the
              Company for the period from January 1 through December 31, 2007, in accordance with the
              laws of the Russian Federation applicable to the preparation of financial (accounting)
              statements.




           April 4, 2008

           Director of JSC Franz J. Kaiser

           Auditor S.A. Blokhin
           Qualification Certificate No. K008770
           General Audit
           Unlimited

           Conclusion
           Of the Audit Committee of JSC OGK-6 on the
           Reliability of Data Contained




                                                                                                                 (4)


* Original document is prepared in Russian.
|   FINANCIAL ACCOUNTING
                                                                                                                   124 | 125


II. COMPANY FINANCIAL
STATEMENTS FOR 2007




BALANCE SHEET AS OF 31.12.2007, , THOUSAND RUBLES

    ASSET                                                  CODE   AS OF REPORTING YEAR BEGINNING    AS OF REPORTING YEAR END
    1                                                         2                                3                           4

    I. FIXED ASSETS
    Intangible assets                                       110                                 7                           –
    Fixed assets                                            120                        16,130,343                  15,719,673
    Construction-in-progress                                130                           942,816                   2,153,884
    Interest-bearing investments in tangible assets         135                                 –                           –
    Long-term financial investments                         140                             53242                   8,575,166
    Deferred tax assets                                     145                            545225                     390,340
    Other fixed assets                                      150                             20192                     132,153
    –                                                       151                                 –                           –

    TOTAL ON SECTION I                                      190                       17,691,825                   26,971,216

    II. CURRENT ASSETS
    Inventories                                             210                        3,176,790                    3,323,191
    Including:
       raw materials, materials and other similar assets    211                         2,955,530                   3,243,593
       rearers and fatteners                                212                             4,480                         532
       WIP costs                                            213                               555                           –
       end products and goods for resale                    214                             5,468                      28,383
       shipped goods                                        215                             2,728                          15
       prepaid expenses                                     216                           208,029                      50,668
       other inventories and costs                          217                                 –                           –
       –                                                    218                                 –                           –
    VAT on acquired assets                                  220                            86,860                      43,534
    Accounts receivable (payment expected                   230                           501,768                   2,626,988
    over 12 months after the reporting date)
       including buyers and customers                       231                           382,377                     345,399
    Accounts receivable (payment expected                   240                         1,729,448                   3,754,579
    within 12 months after the reporting date)
       including buyers and customers                       241                          626,586                      728,339
    Short-term financial investments                        250                           19,686                    6,407,827
    Cash                                                    260                          143,259                      648,427
    Other current assets                                    270                               77                          629
    –                                                       271                                –                            –

    TOTAL ON SECTION II                                     290                        5,657,888                   16,805,175

    BALANCE                                                 300                       23,349,713                   43,776,391
    ANNUAL REPORT        2007       JSC “OGK-6”
|                    |          |




PROFIT AND LOSS STATEMENTS

    LIABILITIES                                   CODE   AS OF REPORTING YEAR BEGINNING    AS OF REPORTING YEAR END
    1                                                2                                3                           4

    III. CAPITAL AND RESERVES
    Share capital                                  410                        26,731,061                  15,486,028

    Own shares, acquired from shareholders         411                                 –                         177
    Earned capital                                 420                         3,807,820                  22,170,905
    Reserve capital                                430                           135,260                     197,345
    including:
      Reserves under the applicable law            431                                 –                           –
      Reserves under incorporation documents       432                           135,260                     197,345
    –                                              433                                 –                           –
    Retained profit (uncovered loss)               470                      (17,962,891)                 (2,967,218)

    TOTAL ON SECTION III                           490                       12,711,250                  34,886,883

    IV. LONG-TERM LIABILITIES
    Borrowings                                     510                         2,503,596                   5,000,000
    Deferred tax liabilities                       515                           229,976                     240,257
    Other long-term liabilities                    520                           925,592                     553,313
    –                                              521                                 –                           –

    TOTAL ON SECTION IV                            590                        3,659,164                   5,793,570

    V. SHORT-TERM LIABILITIES
    Borrowings                                     610                         4,011,745                      69,301
    Accounts payable                               620                         2,767,258                   2,750,280
    including:
       suppliers and contractors                   621                         1,946,270                   2,026,295
       debts to Company’s employees                622                            92,342                     139,488
       state non-budgetary funds                   623                            22,640                      23,442
       tax and levies debts                        624                           450,363                     374,243
       other creditors                             625                           255,643                     186,812
    Distributions payable to members/founders      630                           194,643                     258,089
    Deferred income                                640                             5,653                      18,236
    Provisions for liabilities and charges         650                                 –                           –
    Other short-term liabilities                   660                                 –                          32
    –                                              661                                 –                           –

    TOTAL ON SECTION V                             690                        6,979,299                   3,095,938

    BALANCE                                        700                       23,349,713                  43,776,391
|   FINANCIAL ACCOUNTING
                                                                                                                                                                                                                                  126 | 127




    LIABILITIES                                                                                  CODE                         AS OF REPORTING YEAR BEGINNING                                                AS OF REPORTING YEAR END
    1                                                                                               2                                                      3                                                                       4

    CERTIFICATE on values recorded
    to off-balance sheet accounts
    Leased fixed assets                                                                             910                                                         547,603                                                            5,996,792
    including leasing                                                                               911                                                          85,839                                                              109,420
    Inventory items under custody                                                                   920                                                          74,990                                                               76,842
    Goods taken on commission                                                                       930                                                               –                                                                    –
    Written-off receivables of insolvent debtors                                                    940                                                       3,461,296                                                            3,461,567
    Security received                                                                               950                                                         103,118                                                            1,049,254
    Security issued                                                                                 960                                                         487,869                                                               85,913
    Depreciation of housing stock                                                                   970                                                               –                                                                3,132
    Depreciation of improvements and other similar facilities                                       980                                                           6,286                                                                6,286
    Intangible assets obtained for usage                                                            990                                                               –                                                                2,960
    Leased out fixed assets                                                                         995                                                          43,771                                                               42,031
    Federally owned property                                                                        996                                                               –                                                                7,582
    Strict security forms                                                                           997                                                              62                                                                  123

    JSC OGK-6 management obtained the above information from the full set of the Company’s accounting statements for 2007. The annual report does not include the above accounting statements in full. A full copy of the Company’s accounting
    statements in accordance with the Russian Accounting Standards is posted on the JSC OGK-6 website (www.ogk6.ru) in the Shareholders and Investors Information section.
    ANNUAL REPORT         2007       JSC “OGK-6”
|                     |          |




PROFIT AND LOSS STATEMENT FOR 2007

    PROFIT AND LOSS STATEMENT                                    CODE   AS OF REPORTING YEAR BEGINNING     AS OF REPORTING YEAR END
    1                                                               2                                3                            4

    INCOME AND EXPENSES FOR ORDINARY ACTIVITIES
    Net revenue on sales of goods, products, work, services       010                       35,333,820)                   9,222,277)
    (excluding VAT, excise tax and similar mandatory payments)
    electricity and capacities                                    011                       33,195,199)                   7,476,091)
    thermal energy                                                012                        1,884,964)                     534,501)
    income from participating in other organizations              013                                –)                     687,328)
    other goods, work, and services                               014                          253,657)                     524,357)
    Cost of sold goods, products, work, services                  020                      (31,629,550)                  (7,304,141)
    electricity and capacities                                    021                      (29,871,431)                  (6,405,469)
    thermal energy                                                022                       (1,528,360)                    (470,872)
    other goods, work, and services                               023                         (229,759)                    (427,800)
    Gross profit                                                  029                         3,704,270                   1,918,136)
    Commercial expenses                                           030                          (24,479)                     (14,674)
    Managerial expenses                                           040                                ()                           ()
    Sales profit/loss                                             050                        3,679,791)                   1,903,462)

    OTHER INCOME AND EXPENSES
    Interest receivable                                           060                           25,637)                        1852)
    Interest payable                                              070                        (591,670))                    (177,840)
    Income from participation in other organizations              080                                –)                           –)
    Other incomes                                                 090                          652,838)                     630,244)
                                                                  091                                –)                           –)
    Other expenses                                                100                       (1,151,063)                    (217,663)
                                                                  110                               (–)                          (–)

    Profit/loss before tax                                        140                        2,615,533)                  2,140,055)
    Deferred tax assets                                           141                            (2,224)                    (20,167)
    Deferred tax obligations                                      142                           (10,870)                    (13,142)
    Current profit tax                                            150                          (874,739)                   (247,147)
    Other similar payments                                        180                           145,921)                   (617,897)

    Net profit/loss of reporting period                           190                        1,873,621)                  1,241,702)

    REFERENCE
    Permanent tax liabilities (assets)                            200                          259,907)                     (68,199)
    Basic earnings/losses per share                               201                            0.070)                       0.049)
    Diluted earnings/losses per share                             202                                0)                           0)
|   FINANCIAL ACCOUNTING
                                                                                                                                128 | 129




    BREAKDOWN OF SPECIFIC PROFITS AND LOSSES             CODE             FOR REPORTING PERIOD   FOR THE SAME PERIOD OF THE PREVIOUS YEAR

                                                                PROFIT                    LOSS             PROFIT                    LOSS
    1                                                       2        3                       4                  5                       6

    Penalties, fines and forfeits, accepted or imposed    210     3,502                 22,248                251                   1,779
    by court decisions (arbitrage)
    Profits/losses of previous years                      220   136,549                113,471                 99                   2,408
    Arising from failure to perform or improper           230         –                  2,056                  –                       5
    performance of obligations
    Exchange rate differences on operations               240    39,263                 17,459              1,292                     58
    in foreign currencies
    Payments to valuation reserve                         250         х                     –                   х                      –

    Write-offs of bad debts                               260    14,379                 56,904              6,833                      5
                                                          270         –                      –                  –                      –
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



11. APPENDIXES


I. REPORT OF THE
JSC “OGK-6” AUDIT
COMMITTE                                                 Report
                                                         of the JSC “OGK-6” Audit Committee on the accuracy of the data
                                                         contained in the 2007 Annual Report of JSC “OGK-6”*


                                                         Moscow                                                                                 April 01, 2007

                                                         The Audit Committee of JSC “OGK-6” acting on the basis of the Company Articles of Association
                                                         and the Provision Concerning the Audit Committee has conducted an audit of the financial and
                                                         economic activities of JSC “OGK-6” on the Company’s results for 2007.

                                                         The purpose of the audit was to establish the authenticity of the accounting, statistical, and other
                                                         Company documents and the conformance thereof to legislation of the Russian Federation.

                                                         The object of the audit was the Company’s financial and economic activities for 2007. Financial
                                                         and economic documentation, including financial and statistical reporting, as well as other
                                                         documents, were used in conducting the audit.

                                                         In accordance with the results of the audit of accounting and financial reporting and other
                                                         documentation of the Company’s financial and economic activities, the Audit Committee has
                                                         established that:

                                                         1. The 2007 Annual Report reliably reflects the Company’s property status and financial results, as
                                                            well as the Company’s cash flows.

                                                         2. No breaches or distortions in observing the requirements of legislation of the Russian
                                                            Federation in making essential financial and economic transactions were established.

                                                         3. The financial reporting of JSC “OGK-6” with balance currency in the amount of 43 776 391
                                                            thousand rubles reliably reflects the assets and liabilities as of 31.21.2007 and the financial
                                                            results of activities for 2007.

                                                         4. Net profit of JSC “OGK-6” in the reporting period was 1 873 621 thousand rubles.




                                                         Chairman of the Audit Committee S. B. Sidorov

                                                         Secretary of the Audit Committee A. V. Zavartsev



                                                 * Original document is prepared in Russian.
|   APPENDIXES
                                                                                                                                                                                                                               130 | 131


II. INFORMATION ON OBSERVANCE BY JSC “OGK-6”
OF THE CODE OF CORPORATE CONDUCT




GENERAL SHAREHOLDERS’ MEETING

    #   CODE OF CORPORATE CONDUCT PROVISION                                                                             OBSERVED OR     NOTES
                                                                                                                        NOT OBSERVED
1       Notification of shareholders of the holding of a general shareholders’ meeting not less than 30 days            Observed.       Item 11.5 of the Articles of Association: “The announcement of the holding of a General
        prior to the date of its holding regardless of the issues on the agenda, unless more time is provided                           Shareholders’ Meeting shall be sent (or delivered) to each person specified in the list of persons
        for by legislation.                                                                                                             having the right to participate in the General Shareholders’ Meeting, shall be published by the
                                                                                                                                        Company in Izvestiya newspaper, and shall be posted on the Company’s website on the Internet no
                                                                                                                                        later than 30 (thirty) days prior to the date of the Meeting.”

2       Opportunity of shareholders to become acquainted with the list of persons having the right to participate in    Observed.       In accordance with Item 4, Art. 51 of FL “On joint-stock companies”, the list of persons having
        the general shareholders’meeting, starting from the day of the announcement of the holding of a general                         the right to participate in the General Shareholders’ Meeting shall be presented by the Company for
        shareholders’meeting until the close of the shareholders’meeting in praesentia, or, in the event of a general                   examination at the request of the persons included in the list and possessing not less than 1% of the
        shareholders’meeting in absentia, until the cut-off date for acceptance of voting ballots.                                      votes.

3       Opportunity of shareholders to examine information (materials) subject to provision in preparation              Observed.       In accordance with Item 11.7 of the Articles of Association: “... Information (materials) on
        for a general shareholders’ meeting by means of electronic communications, including via the                                    issues of the agenda of a General Shareholders’ Meeting shall be posted on the Company’s Internet
        Internet.                                                                                                                       website not later than 10 (Ten) days prior to the date of the General Shareholders’ Meeting…”

4       Opportunity of shareholders to introduce an issue to the agenda of a general shareholders’ meeting              Observed.       In accepting proposals for the agenda of the General Shareholders’ Meeting, including for candidates
        or to request a general shareholders’ meeting without provision of an extract from the shareholder                              for members of the Board of Directors, the Company independently requests confirmation in the
        registry, if the record of the shareholder’s share rights is made in the shareholder registry                                   shareholder registry.
        management system, or, in the event that the shareholder’s share rights are based on a DEPO
        account, the sufficiency of an extract from the DEPO account to exercise the above-mentioned rights.

5       The presence in the Articles of Association or internal documents of the joint-stock company of a               Not observed.   According to the second paragraph of item 5.2.2 of the Code of Corporate Governance:
        requirement for obligatory presence at the general shareholders’ meeting of the CEO, members of the                             “The Company as far as possible ensures the presence at the General Shareholders’ Meeting of
        administration, members of the board of directors, members of the audit committee, and the joint-                               members of the Board of Directors, executive bodies, and the audit committee and Company auditor,
        stock company auditor.                                                                                                          and authorizes them to answer shareholders’ questions.”

6       Obligatory presence of candidates for consideration at the general shareholders’ meeting of issues              Not observed    The Company Articles of Association and internal documents contain no provisions stipulating the
        regarding election of members of the board of directors, the CEO, members of the administration,                                obligation of their presence at the General Shareholders’ Meeting.
        and members of the audit committee, as well as the issue of confirmation of the joint-stock
        company auditor.

7       Presence in the joint-stock company’s internal documents of a procedure for registering participants            Observed        In accordance with Item 3.1 of the Provision on the Procedure for Preparation and
        in the general shareholders’ meeting.                                                                                           Holding of the General Shareholders’ Meeting:
                                                                                                                                        Item 3.1.1. Registration of persons having the right to participate in the General Shareholders’
                                                                                                                                        Meeting is conducted by the Counting Board or other entity acting as the counting board, for the
                                                                                                                                        location of the General Shareholders’ Meeting specified in the meeting announcement. Registration
                                                                                                                                        of persons having the right to participate in the General Shareholders’ Meeting begins at the time
                                                                                                                                        specified in the meeting announcement.
                                                                                                                                        Items 3.1.2 – 3.1.6 of the Provision establish in detail the procedure for registering participants
                                                                                                                                        in the general shareholders’ meeting.
    ANNUAL REPORT          2007       JSC “OGK-6”
|                      |          |




BOARD OF DIRECTORS

    #   CODE OF CORPORATE CONDUCT PROVISION                                                                        OBSERVED OR           NOTES
                                                                                                                   NOT OBSERVED
8       Presence in the joint-stock company’s articles of association of the authority of the board of directors   Observed.             In accordance with Subsection 19 of Item 15.1 of the Articles of Association, matters
        for annual approval of the financial and economic plan of the joint-stock company.                                               within the competence of the Board of Directors are “the confirmation of the business plan
                                                                                                                                         (adjusted business plan) and report on the results of execution thereof, approval (correction) of the
                                                                                                                                         list and values of Company cash flow benchmarks, as well as an examination of adjustments to the
                                                                                                                                         Company’s cash flow adopted by the Company Administration.”

9       Presence of a procedure approved by the board of directors for risk management in the joint-stock          Observed.             The Company has the Provision Concerning Non-financial Risk Management, approved by
        company .                                                                                                                        the Board of Directors on 04.19.2006 (protocol № 17 dated 04.20.2006) and the Provision
                                                                                                                                         Concerning Credit Policy, approved by the Board of Directors on 07.14.2005 (Protocol № 5).

10      Presence in the joint-stock company’s articles of association of the right of the board of directors to    Not applicable.       In accordance with Subsection 12 of Item 15.1 of the Articles of Association, a matter
        decide to suspend the authority of the CEO appointed by the general shareholders’ meeting.                                       within the competence of the Board of Directors (and not the General Shareholders’ Meeting) is the
                                                                                                                                         “election of the Company CEO and early termination of his authority, including the early termination
                                                                                                                                         of the labor contract with the latter”.

11      Presence in the joint-stock company’s articles of association of the right of the board of directors to    Partially observed.   In accordance with Subsection 13 of Item 15.1 of the Articles of Association, a matter within
        establish requirements for the qualifications and amount of bonuses of the CEO, members of the                                   the competence of the Board of Directors is“the determination of the quantitative membership of the
        administration, and managers of main structural subdivisions of the joint-stock company                                          Company Administration and establishment of bonuses and compensation paid to them…”.
                                                                                                                                         In accordance with Item 20.5 of the Articles of Association: the rights and obligations of the CEO
                                                                                                                                         and the members of the Company Administration are defined including by the labor contract
                                                                                                                                         concluded by each with the Company.
                                                                                                                                         The conditions of the labor contract are defined by the Company’s Board of Directors.
                                                                                                                                         The Articles of Association do not provide for the right of the Board of Directors to establish
                                                                                                                                         requirements for the qualifications and amount of bonuses of the managers of main structural
                                                                                                                                         subdivisions of the joint-stock Company.

12      Presence in the joint-stock company’s articles of association of the right of the board of directors to    Observed.             In accordance with Item 20.5 of the Articles of Association, the conditions of the labor contract,
        approve the conditions of contracts with the CEO and members of the administration .                                             including in the area of the term of office, are determined by the Company’s Board of Directors. The
                                                                                                                                         rights and obligations of the employer on behalf of the Company in relation to the CEO and the
                                                                                                                                         members of the Company Administration are exercised by the Chairman of the Board of Directors or
                                                                                                                                         the person authorized by the Company’s Board of Directors.

13      Presence in the articles or internal documents of the joint-stock company of a requirement that            Not observed.         No such requirements are made in the Articles of Association and internal Company documents.
        when approving conditions of contracts with the CEO/managing company/manager and members
        of the administration, the votes of members of the board of directors who are the CEO or members of
        the administration shall not be considered when counting the votes.

14      Presence in the membership of the joint-stock company’s board of directors of not less than three          Observed.             The independent directors are:
        independent directors meeting the requirements of the Code of Corporate Conduct.                                                 - Melnikov, Dmitry Alexandrovich;
                                                                                                                                         - Burnashev, Dmitry Alexandrovich;
                                                                                                                                         - Evkharitsky, Alexander Valerievich;
                                                                                                                                         - Nepsha, Valery Vasilievich;
                                                                                                                                         - Sokolovsky, Mikhail Zinovievich;
                                                                                                                                         - Fil, Sergei Sergeevich
                                                                                                                                         - Tsuranov, Igor Grigorievich;
                                                                                                                                         - Shatsky, Pavel Olegovich;
                                                                                                                                         - Yukhnevich, Yury Bronislavovich.
|   APPENDIXES
                                                                                                                                                                                                                           132 | 133




    #   CODE OF CORPORATE CONDUCT PROVISION                                                                         OBSERVED OR     NOTES
                                                                                                                    NOT OBSERVED
15      Absence in the membership of the joint-stock company’s board of directors of persons who were               Observed.
        found guilty of crimes in the sphere of economic activity or crimes against the state, interests of state
        service, and service in local government bodies, or to whom administrative penalties were applied
        for infractions in the field of finances, taxes and fees, and the securities market.

16      Absence in the membership of the joint-stock company’s board of directors of persons who are                Not observed.   As of 12.31.2007,
        participants, the CEO (manager), a member of a management body, or a worker of a legal entity in                            D.A. Burnashev is simultaneously a member of the Board of Directors of JSC OGK-4.
        competition with the joint-stock company.

17      Presence in the joint-stock company’s articles of association of a requirement for election of the          Observed.       Item 10.8 of the Articles of Association: Voting at the General Shareholders’ Meeting shall be
        board of directors by a cumulative vote                                                                                     conducted on the principle of “one voting share, one vote”, with the exception of cumulative voting
                                                                                                                                    on the issue of electing members of the Company’s Board of Directors”.

18      Presence in the joint-stock company internal documents of the obligation of the members of the              Not observed.   This standard is not present in the Company’s internal documents; however, in accordance with the
        board of directors to refrain from actions that will lead or are potentially capable of leading to a                        law “On joint-stock companies” (Article 82) members of the Board of Directors are obligated to notify
        conflict between their interests and the interests of the joint-stock company, and, in the event of                         the Company’s Board of Directors, the audit committee, and the auditor of information concerning
        such a conflict, to disclose information concerning this conflict to the board of directors.                                the conflict of interests and concerning transactions being conducted or planned in which they
                                                                                                                                    might be found to be interested.

19      Presence in the joint-stock company’s internal documents of the obligation of the members of the            Observed.       In accordance with Item 4.1 of the Provision Concerning Company Insider Information,
        board of directors to notify the board of directors in writing of an intention to conduct transactions                      members of the Company’s Board of Directors are obligated to disclose information of possession of
        with securities of the joint-stock company of which they are members of the board of directors, or of                       Company securities to the Audit Committee under the Company’s Board of Directors.
        its subsidiary (dependent) companies, as well as to disclose information regarding transactions with                        In accordance with Item 4.2 of the Provision Concerning Company Insider Information, “no
        such securities conducted by them.                                                                                          later than the third day of the month following the accounting month, insiders are obligated to
                                                                                                                                    provide the Subdivision responsible for control of the use of insider information with a written
                                                                                                                                    declaration of transactions concluded with securities of the Company and/or its subsidiaries and
                                                                                                                                    affiliates in the accounting month”.

20      Presence in the joint-stock company’s internal documents of a requirement for holding a meeting of          Not observed.   In accordance with Item 5.1 of the Provision on the Procedure for Convening and Holding
        the board of directors not less than once every six weeks.                                                                  Meetings of the Board of Directors, “Meetings of the Board of Directors are conducted in
                                                                                                                                    accordance with the approved Plan of Operation of the Board of Directors, as well as when necessary,
                                                                                                                                    but not less frequently than once per quarter, unless otherwise established by this Provision”.

21      Meetings of the joint-stock company’s board of directors held throughout the the year, at which the         Observed.       Between 01.01.2007 and 12.31.2007, 29 meetings of the Company’s Board of Directors were held.
        annual report of the joint-stock company is compiled, not less than once every six weeks.

22      Presence in the joint-stock company’s internal documents of a procedure for holding meetings of the         Observed.       The procedure for holding meetings of the Company’s Board of Directors is specified by Article 18 of
        board of directors.                                                                                                         the Articles of Association, as well as by the Provision Concerning the Convening and Holding
                                                                                                                                    of Meetings of the Board of Directors.
    ANNUAL REPORT         2007       JSC “OGK-6”
|                     |          |




    #   CODE OF CORPORATE CONDUCT PROVISION                                                                        OBSERVED OR           NOTES
                                                                                                                   NOT OBSERVED
23      Presence in the joint-stock company’s internal documents of a provision concerning the necessity of        Observed.             In accordance with Subsection 37 of Item 15.1 of the Articles of Association, a matter within the
        approval by the board of directors of transactions of the joint-stock company involving a sum of 10                              competence of the Company’s Board of Directors is “the preliminary approval of decisions regarding
        percent or more of the value of the company’s fixed assets, with the exception of transactions                                   conductance by the Company of b) transactions (including several interrelated transactions), the
        concluded in the process of ordinary economic activity.                                                                          subject of which is property having a value of 10 to 25 percent of the book value of the Company’s
                                                                                                                                         assets as of the date of the decision to conduct such a transaction”.

24      Presence in the joint-stock company’s internal documents of the right of members of the board of           Partially observed.   Item 3.1 of the Provision on the Procedure for Convening and Holding Meetings of the Board
        directors to obtain information necessary for performing their functions from executive bodies and                               of Directors: “Members of the Board of Directors, within the competence of the Board of Directors,
        managers of main structural subdivisions of the joint-stock company, as well as of liability for failure                         shall have the right:
        to provide such information.                                                                                                     1) to receive information concerning the Company’s activities, including information constituting a
                                                                                                                                         Company trade secret…”
                                                                                                                                         In accordance with Item 3.2 of the Provision on the Procedure for Convening and Holding
                                                                                                                                         Meetings of the Board of Directors: “a member of the Board of Directors may request in writing
                                                                                                                                         documents and information necessary for making decisions on issues within the competence of the
                                                                                                                                         Board of Directors…”.

25      Presence of a committee of the board of directors for strategic planning or delegation of the functions    Observed .            On 02.14.2007 (Protocol № 31 dated 02.15.2007), the Board of Directors made a decision to create a
        of such a committee to a different committee (other than the audit committee and the personnel                                   Committee of the Board of Directors for Strategy and Business Planning.
        and remuneration committee).

26      Presence of a committee of the board of directors (the audit committee) that recommends the joint-         Observed.             On 02.14.2007 (Protocol № 31 dated 02.15.2007), the Board of Directors resolved to create an Audit
        stock company auditor to the board of directors and cooperates with the latter and the joint-stock                               Committee of the Board of Directors.
        company’s audit committee.                                                                                                       The membership of the Audit Committee of the Board of Directors was determined by a resolution of
                                                                                                                                         the Board of Directors (Protocol № 54 dated 11.29.2007):
                                                                                                                                         - Remes, S. Y. – Chairman of the Audit Committee of the Board of Directors
                                                                                                                                         - Sokolovsky, M.Z.
                                                                                                                                         - Shatsky, P.O.

27      Presence in the membership of the audit committee of exclusively independent and non-executive             Not observed.         S.Y. Remes is not an independent director according to the Code of Corporate Conduct of FFMS of
        directors.                                                                                                                       Russia

28      Management of the audit committee by an independent director.                                              Not observed.         S.Y. Remes is not an independent director according to the Code of Corporate Conduct of FFMS of
                                                                                                                                         Russia.

29      Presence in the joint-stock company’s internal documents of the right of access for all members of         Observed.             Provision on the audit committee of the Board of Directors, approved 02.14.2007 (Protocol
        the audit committee to any documents and information of the joint-stock company on condition of                                  № 31 dated 02.15.2007)
        nondisclosure by them of confidential information .                                                                              In accordance with subsection 2, Item 4.1 of the Provision, the Committee is vested with the rights
                                                                                                                                         “to request and receive information and documents necessary for conducting its activity from the
                                                                                                                                         CEO and officials of the Company in accordance with the list approved by decision of the
                                                                                                                                         Committee…”
                                                                                                                                         In accordance with Item 4, Subsection 5.1. of the Provision on the audit committee of the Board of
                                                                                                                                         Directors, the Committee is obligated to observe confidentiality requirements.

30      The creation of a committee of the board of directors (the personnel and remuneration committee)           Not observed.         No Personnel and Remuneration Committee of the Board of Directors exists in the Company.
        the function of which is to determine criteria for the selection of candidates for members of the
        board of directors and development of the joint-stock company’s policy in the area of remuneration.
|   APPENDIXES
                                                                                                                                                                                                                           134 | 135




    #   CODE OF CORPORATE CONDUCT PROVISION                                                                          OBSERVED OR     NOTES
                                                                                                                     NOT OBSERVED
31      Management of the personnel and remuneration committee by an independent director.                           Not observed.   No Personnel and Remuneration Committee of the Board of Directors exists in the Company.

32      Absence in the membership of the personnel and remuneration committee of joint-stock company                 Not observed.   No Personnel and Remuneration Committee of the Board of Directors exists in the Company.
        officials.

33      Creation of a risks committee of the board of directors or delegation of the functions of such a             Not observed.   No risks committee of the Board of Directors exists in the Company.
        committee to a different committee (other than the audit committee and the personnel and
        remuneration committee).

34      Creation of a corporate conflict settlement committee of the board of directors or delegation of the         Not observed.   No corporate conflict settlement committee of the Board of Directors exists in the Company.
        functions of such a committee to a different committee (other than the audit committee and the
        personnel and remuneration committee).

35      Absence in the membership of the corporate conflict settlement committee of joint-stock company              Not observed.   No corporate conflict settlement committee of the Board of Directors exists in the Company.
        officials

36      Management of the corporate conflict settlement committee by an independent director.                        Not observed.   No corporate conflict settlement committee of the Board of Directors exists in the Company.


37      Presence of joint-stock company internal documents approved by the board of directors stipulating            Observed.       The 12.21.2005 decision of the Board of Directors (Protocol № 12) approved the Provision
        the procedure for the formation and operation of committees of the board of directors.                                       Concerning the Reliability Committee.
                                                                                                                                     The 02.14.2007 decision of the Board of Directors (Protocol № 31 dated 02.14.2007) approved:
                                                                                                                                     - the Provision Concerning the Audit Committee
                                                                                                                                     - the Provision Concerning the Strategy and Business Planning Committee

38      Presence in the joint-stock company’s articles of association of a procedure for definition of a quorum      Not observed.
        of the board of directors ensuring obligatory participation of independent directors in meetings of
        the board of directors.




EXECUTIVE BODIES

    #   CODE OF CORPORATE CONDUCT PROVISION                                                                          OBSERVED OR     NOTES
                                                                                                                     NOT OBSERVED
39      Presence of a collegial executive body (administration) of the joint-stock company.                          Observed.       The JSC“OGK-6” Administration is formed in accordance with the Company’s Articles of Association.

40      Presence in the articles of association or internal documents of the joint stock company of a provision      Not observed.
        concerning the necessity of approval by the administration of transactions involving real estate and
        obtaining of credits by the joint-stock company, if such transactions do not pertain to major transactions
        and their conduct does not pertain to the ordinary economic activities of the joint-stock company.
    ANNUAL REPORT          2007       JSC “OGK-6”
|                      |          |




    #   CODE OF CORPORATE CONDUCT PROVISION                                                                         OBSERVED OR           NOTES
                                                                                                                    NOT OBSERVED
41      Presence in the joint-stock company’s internal documents of a procedure for agreement of operations         Not observed.
        that are outside the bounds of the financial and economic plan of the joint-stock company.

42       The absence in the membership of the joint-stock company’s executive bodies of persons who are             Observed.
        participants, the CEO (manager), a member of a management body, or a worker of a legal entity in
        competition with the joint-stock company.

43      Absence in the membership of the joint-stock company’s executive bodies of persons who were                 Observed.
        found guilty of crimes in the sphere of economic activity or crimes against the state, interests of state
        service, and service in local government bodies or to whom administrative penalties were applied for
        infractions in the field of finances, taxes and fees, and the securities market. If the functions of sole
        executive body are performed by a management organization or manager – conformance of the CEO
        and members of the administration of the managment organization or manager to demands made
        on the CEO and members of the administration of the joint-stock company.

44      Presence in the joint-stock company’s articles of association or internal documents of a prohibition        Not observed.
        on the management organization (manager) from performing similar functions in a competing
        company, as well as from having any other property relations with a joint-stock company, other than
        rendering services of a management organization (manager).

45      Presence in the joint-stock company’s internal documents of the obligation of executive bodies to           Not observed.         This standard is not present in the Company’s internal documents; however, in accordance with the
        refrain from actions that will lead or could potentially lead to a conflict between their interests and                           law “On joint-stock companies” (article 82), members of the Board of Directors are obligated to
        the interests of the joint-stock company, and, in the event of such a conflict, to inform the board of                            notify the Company’s Board of Directors, the audit committee, and the auditor of information
        directors of the same.                                                                                                            concerning a conflict of interests and concerning transactions being conducted or planned in which
                                                                                                                                          they might be found to be interested

46      Presence in the joint-stock company’s articles of association or internal documents of criteria for         Not observed.
        selecting a management organization (manager).

47      Submission by the joint-stock company’s executive bodies of monthly reports on their work to the            Partially observed.   Reports of the CEO on the Company’s activities are submitted to the Board of Directors on a quarterly
        board of directors.                                                                                                               basis.

48      Establishment in contracts concluded by the joint-stock company with the CEO/managing                       Observed.             In accordance with Item 3.1.4 of the Provision Concerning the Administration,
        organization/manager and members of the administration of responsibility for violation of provisions                              “members of the Administration shall bear responsibility to the Company for losses inflicted on the
        concerning the use of confidential and proprietary information                                                                    Company through their delinquent actions (inaction)…”.
                                                                                                                                          In accordance with Item 5.1 of the Provision Concerning Insider Information, “for illegal
                                                                                                                                          placement and/or use of insider information, Company insiders may be subjected to disciplinary
                                                                                                                                          and/or civil liability in accordance with the terms of contracts with the Company and current
                                                                                                                                          legislation, and to administrative and criminal liability in accordance with current legislation”.
|   APPENDIXES
                                                                                                                                                                                                                          136 | 137




COMPANY SECRETARY

#      CODE OF CORPORATE CONDUCT PROVISION                                                                        OBSERVED OR     NOTES
                                                                                                                  NOT OBSERVED
49    Presence in the joint-stock company of a specific official (the company secretary) whose task is to         Observed.       A corporate secretary works in the Company.
      ensure the observation by joint-stock company bodies and officials of procedural requirements that
      ensure that the rights and legal interests of the joint-stock company are fulfilled.

50    Presence in the joint-stock company’s articles of association or internal documents of a procedure for      Observed.       The Company’s internal documents (section 4, Provision Concerning the Administration; Section
      appointment (election) of the company secretary and the duties of the company secretary.                                    4, Provision Concerning the Procedure for Convening and Holding Meetings of the Board of Directors,
                                                                                                                                  Items 5.6. and 5.7. of the Provision Concerning the Procedure for Preparation and Holding of the
                                                                                                                                  General Shareholders’ Meeting) contain the procedure for appointment and the obligations of the
                                                                                                                                  secretaries of the respective executive bodies.
                                                                                                                                  In accordance with the staff structure, the office of corporate secretary exists within the Company.

51    Presence in the joint-stock company’s articles of association of requirements for candidates for            Not observed.   Such requirements are not specified by the Articles of Association
      company secretary.




SIGNIFICANT CORPORATE ACTIONS

#      CODE OF CORPORATE CONDUCT PROVISION                                                                        OBSERVED OR     NOTES
                                                                                                                  NOT OBSERVED
52    Presence in the joint-stock company’s articles of association or internal documents of a requirement        Not observed.   The Articles of Association and internal documents of the Company contain no requirement for
      for approval of a major transaction prior to conclusion thereof.                                                            approval of a major transaction prior to conclusion thereof.

53    Obligatory employment of an independent appraiser to appraise the market value of property                  Not observed.
      constituting the subject of a major transaction.

54    Presence in the joint-stock company’s articles of association of a prohibition against undertaking, upon    Not observed.
      purchasing major share packages of the joint-stock company (acquisition), any actions aimed at
      protecting the interests of executive bodies (members of such bodies) and members of the joint-stock
      company’s board of directors, as well as actions that would worsen the situation of shareholders in
      comparison with the existing situation (in particular, a prohibition against a decision by the board of
      directors before the end of the proposed time for purchase of shares to issue additional shares,
      securities converted to shares, or securities providing the right to purchase company shares, even if the
      right to make such a decision is provided to the same by the articles of association).

55    Presence in the joint-stock company’s articles of association of a requirement for the obligatory           Not observed.   Company shares have been traded on the leading stock exchanges in Russia since 2006: NP RTS, JSC
      employment of an independent appraiser to appraise the current market value of shares and possible                          RTS, and ZAO FB MICEX, where their current market value is determined.
      changes in their market value due to the acquisition.

56    Absence in the joint-stock company’s articles of association of release of the purchaser from the           Observed.
      obligation to offer shareholders the option to sell ordinary company shares (issue securities
      converted to ordinary shares) belonging to them upon acquisition.

57    Presence in the joint-stock company’s articles of association or internal documents of a requirement        Not observed.   This requirement is not specified in the articles of association or internal documents of the Company.
      for obligatory employment of an independent appraiser to determine the share conversion ratio                               However, in practice, an independent appraiser has been employed to determine conversion ratios.
      upon reorganization
    ANNUAL REPORT          2007       JSC “OGK-6”
|                      |          |




INFORMATION DISCLOSURE

    #   CODE OF CORPORATE CONDUCT PROVISION                                                                        OBSERVED OR     NOTES
                                                                                                                   NOT OBSERVED
58      Presence of an internal document approved by the board of directors specifying the rules and               Observed.       The Provision Concerning Information Policy of JSC Sixth Wholesale Power Market Generating
        approaches of the joint-stock company to information disclosure (Provision Concerning Information                          Company (approved by the 12.21.2006 Resolution of the Company’s Board of Directors, Protocol №
        Policy).                                                                                                                   29).

59      The presence in the joint-stock company’s internal documents of a requirement for information              Not observed.
        disclosure for the purposes of share placement, including major share packages, as well as whether
        or not high joint-stock company officials will participate in purchasing company stock placed.


60      Presence in the joint-stock company’s internal documents of a list of information, documents, and          Not observed.   The complete list of information, documents, and materials provided to shareholders for resolution of
        materials that must be provided to shareholders for resolution of issues presented to the general                          issues presented to the general shareholders’ meeting is not fixed in any of the Company’s internal
        shareholders’ meeting.                                                                                                     documents.
                                                                                                                                   In accordance with Item 2.2 of the Provision Concerning Preparation and Holding of the
                                                                                                                                   General Shareholders’ Meeting, in preparation for holding the General Shareholders’ Meeting, the
                                                                                                                                   Board of Directors or, in the cases provided for by Paragraph 2 Item 2.1 of this Provision, other persons
                                                                                                                                   shall make decisions regarding determination of the list of information provided to shareholders.

61      Presence of a joint-stock company Internet website and regular disclosure of information concerning        Observed.       Currently operating is the corporate website www.ogk6.ru
        the joint-stock company on said website.                                                                                   In accordance with item 6.4 of the Provision Concerning Informational Policy the
                                                                                                                                   Company shall publish information on its activities on the corporate website

62      Presence in the joint-stock company’s internal documents of a requirement for disclosure of                Observed.       In accordance with the Provision Concerning Information Policy the Company shall disclose
        information concerning transactions of the joint-stock company with persons who are higher joint-                          Information on the corporate Internet site concerning ownership by higher officials and their
        stock company officials in accordance with the articles of association, as well as concerning the joint-                   affiliates of shares in the Company and its subsidiaries and affiliates, with specification of the number
        stock company’s transactions with organizations in which the joint-stock company’s higher officials                        and category/type of shares (item 5.2.8.2); Information concerning transactions between said
        directly or indirectly own 20 percent or more of the authorized share capital of the joint-stock                           persons and the Company (Item 5.2.3.8).
        company or which such persons may otherwise influence significantly.

63      Presence in the joint-stock company’s internal documents of a requirement for disclosure of                Observed.       Item 5.1 of the Provision Concerning Informational Policy (disclosure of information in a
        information concerning all transactions that may have an influence on the market value of the joint-                       securities prospectus, quarterly report, and in the form of notices of significant facts).
        stock company’s shares.

64      Presence of an internal document approved by the board of directors on the use of important                Observed.       The Provision Concerning Insider Information of JSC Sixth Wholesale Power Market Generating Company
        information on the joint-stock company’s activities, the company’s shares and other securities, and                        (approved by the 05.25.2007 Resolution of the Company’s Board of Directors, Protocol № 40).
        transactions with the same, which is not publicly available and the disclosure of which could have a
        significant influence on the market value of the joint-stock company’s shares and other securities.
|   APPENDIXES
                                                                                                                                                                                                                        138 | 139




CONTROL OF FINANCIAL AND ECONOMIC ACTIVITY

    #   CODE OF CORPORATE CONDUCT PROVISION                                                                      OBSERVED OR     NOTES
                                                                                                                 NOT OBSERVED
65      Presence of internal control procedures for the financial and economic activities of the joint-stock     Observed.       Control of observance of internal supervisory procedures of JSC “OGK-6” is exercised by the Internal
        company, approved by the board of directors.                                                                             Audit Board.
                                                                                                                                 The Internal Audit Board was created in accordance with the Organizational Structure of the JSC
                                                                                                                                 “OGK-6” executive office, approved by resolution of the Company’s Board of Directors (Protocol № 14
                                                                                                                                 dated 02.15.2006)
                                                                                                                                 The Provision Concerning the Internal Audit Board was approved by resolution of the Company’s
                                                                                                                                 Board of Directors (Protocol № 44 dated 03.10.2007).
                                                                                                                                 The internal supervision procedures are defined by the Provision (Article 3).

66      Presence of a special subdivision of the joint-stock company that ensures observance of internal         Observed.       An Internal Audit Board answerable to the Company CEO exists in the Company.
        control (control and auditing service).

67      Presence in the joint-stock company’s internal documents of a requirement for determining the            Not observed.
        structure and membership of the joint-stock company’s control and auditing service by the board of
        directors.

68      Absence in the membership of the joint-stock company’s control and auditing service of persons           Observed.
        who were found guilty of crimes in the sphere of economic activity or crimes against the state,
        interests of state service, and service in local government bodies or to whom administrative penalties
        were applied for infractions in the field of finances, taxes and fees, and the securities market.

69      Absence in the membership of the control and auditing service of persons who are members of              Observed.
        executive bodies of the joint-stock company, as well as of persons who are participants, the CEO
        (manager), or members of administrative bodies or workers of a legal entity in competition with the
        joint-stock company.

70      Presence in the joint-stock company’s internal documents of a date for submission to the control and     Not observed.
        auditing service of documents and materials for appraisal of the financial and economic operations
        conducted, as well as of liability of joint-stock company officials and workers for their failure to
        submit said documents and materials by the specified date.

71      Presence in the joint-stock company’s internal documents of the obligation of the control and            Not observed.
        auditing service to notify the audit committee or, in its absence, the joint-stock company’s board of
        directors of discovered violations.

72      Presence in the joint-stock company’s articles of association of a requirement for preliminary           Not observed
        appraisal by the control and auditing service of the expediency of conducting operations not
        provided for by the financial and economic plan of the joint-stock company (non-standard
        operations).
    ANNUAL REPORT         2007       JSC “OGK-6”
|                     |          |




    #   CODE OF CORPORATE CONDUCT PROVISION                                                                     OBSERVED OR           NOTES
                                                                                                                NOT OBSERVED
73      Presence in the joint-stock company’s internal documents of a procedure of agreement of                 Observed.             Approval of the following transactions is within the competence of the Board of Directors:
        nonstandard operations with the board of directors.                                                                            - in accordance with Sub-item 29 of Item 15.1 of the Articles of Association:
                                                                                                                                      a) transactions related to uncompensated transfer of Company property or property rights
                                                                                                                                      (requirements) to itself or a third party;
                                                                                                                                      b) transactions related to release from property liability to itself or a third party;
                                                                                                                                      c) transactions related to uncompensated provision of services (performance of tasks) by the
                                                                                                                                      Company for third parties;
                                                                                                                                       - in accordance with Sub-item 37 of Item 15.1 of the Articles of Association:
                                                                                                                                      a) transactions the subjects of which are noncurrent Company assets in an amount greater than 10
                                                                                                                                      percent of the book value of noncurrent Company assets as of the date of the decision to conduct
                                                                                                                                      such a transaction;
                                                                                                                                      c) transactions (including several interrelated transactions) the subject of which is property having a
                                                                                                                                      value from 10 to 25 percent of the book value of the Company’s assets as of the date of the decision
                                                                                                                                      to conclude such a transaction;
                                                                                                                                      d) transactions (including several interrelated transactions) involving property constituting fixed
                                                                                                                                      assets, intangible assets, and projects under construction purpose of which the is the generation,
                                                                                                                                      transmission, dispatch, and placement of electric power and heat in the cases (amounts) specified
                                                                                                                                      by individual decisions of the Company’s Board of Directors.

74      Presence of an internal document approved by the board of directors specifying the procedure for        Observed.             The Provision Concerning the Audit Committee, approved by the Board of Directors is in
        conducting an audit of the joint-stock company’s financial and economic activities by the audit                               effecting the Company.
        committee.

75      Performance of an appraisal of the audit report by the audit committee prior to submission thereof to   Not observed.         The audit committee of the JSC “OGK-6” Board of Directors was formed after the General
        shareholders at the general shareholders’ meeting.                                                                            Shareholders’ Meeting held on 06.29.2007.




DIVIDENDS
    #   CODE OF CORPORATE CONDUCT PROVISION                                                                     OBSERVED OR           NOTES
                                                                                                                NOT OBSERVED
76      Presence of an internal document approved by the board of directors to which the board of directors     Not observed.         No provision concerning dividend policy is present.
        conforms in adopting recommendations on the amount of dividends (Provision Concerning Dividend
        Policy).

77      Presence in the Provision Concerning Dividend Policy of a procedure for determining the minimum         Not observed
        share of net profit of the joint-stock company to be directed towards payment of dividends and the
        conditions under which dividends are not paid or not completely paid on preferred shares, the
        amount dividends for which is specified in the joint-stock company’s articles of association.

78      Publishing of information on the joint-stock company’s dividend policy and amendments thereto in        Partially observed.   In accordance with the Provision Concerning Information Policy, information concerning the
        a periodical publication provided for by the joint-stock company’s articles of association for                                Company’s dividend policy and amendments thereto is disclosed in a securities prospectus (item
        publishing notices of general shareholders’ meetings, as well as posting of said information on the                           5.1), on the company website, and within the annual report (items 5.2.6.6., 5.2.6.7.)
        joint-stock company’s Internet website.
|   APPENDIXES
                                                                                                                                                                                                                     140 | 141


III. INFORMATION ON MAJOR TRANSACTIONS AND RELATED PARTY TRANSACTIONS
CONCLUDED BY JSC “OGK-6” IN 2007




1. MAJOR TRANSACTIONS

    #     TRANSACTION                                     NAME OF PARTY                                             BENEFICIARIES                             VALUE                                           APPROVED BY

1         Underwriting agreement, deposit                 Underwriting agreement:                                   other persons to whom the provision       based on the amounts of public offering of      Annual General
          agreement, and other agreements,                JSC “OGK-6”; underwriting banks: Goldman Sachs            concerning remuneration or                ordinary shares in the Company and/or           Shareholders’
          transactions, and documents directly related    International, Merrill Lynch International, and/or        compensation of possible expenses,        GDR, in an amount of not more than 1.95%        Meeting (Protocol #5
          to them or signed by JSC “OGK-6” in relation    affiliated companies and other entities that could be     costs, and losses extends under the       of the sum of funds obtained, including         dated 06.29.2007).
          to the offer to Russian and foreign investors   specified as underwriters in the Underwriting             terms of the Agreement.                   additional bonuses and remuneration to the
          of ordinary shares in JSC “OGK-6” and/or        Agreement or in an appendix to the Underwriting                                                     Underwriters of expenses and costs, as well
          global deposit notes verifying rights in        Agreement.                                                                                          as VAT.
          relation to ordinary shares in JSC “OGK-6”.
                                                          Deposit agreement:                                        other persons to whom the provision       Formed from all Company obligations as per
                                                          JSC “OGK-6”; underwriting banks: The Bank of New          concerning remuneration or                the Deposit Agreement, including those not
                                                          York, or Deutsche Bank Trust Company Americas, or         compensation of possible expenses,        limited by the value of the Company’s
                                                          JPMorgan Chase Bank, N.A., or other depositary bank       costs, and losses extends under Deposit   liabilities in relation to remuneration or
                                                          appointed by the Company.                                 Agreement terms.                          compensation of possible expenses, costs,
                                                                                                                                                              and losses of the Depositary and other
                                                                                                                                                              persons to whom the provision concerning
                                                                                                                                                              remuneration or compensation of possible
                                                                                                                                                              expenses, costs, and losses extends under
                                                                                                                                                              Deposit Agreement terms

2         Contract of supply of a circulating fluidized   JSC “OGK-6” (Purchaser) and JSC EMAlliance (Supplier).                                              the value of supplied equipment and             Board of Directors
          bed boiler for a generation unit of JSC “OGK-                                                                                                       fulfillment of accompanying labor (services)    (Protocol #51 dated
          6” subsidiary Novocherkasskaya GRES,                                                                                                                as per the supply contract shall not be more    09.28.2007).
          installed capacity 330 MW, and fulfillment of                                                                                                       than 8,169,140 rubles 00 kopecks, including
          accompanying work (services).                                                                                                                       18% VAT – 1,246,140,000 rubles, 00
                                                                                                                                                              kopecks.

3         Underwriting agreement, deposit                 Underwriting agreement:                                   other persons to whom the provision       based on the amounts of public offering of      Extraordinary General
          agreement, and other agreements,                JSC “OGK-6”; underwriting banks: Goldman Sachs            concerning remuneration or                ordinary shares in the Company and/or           Shareholders’
          transactions, and documents directly related    International, Merrill Lynch International, and/or        compensation of possible expenses,        GDR, in an amount of not more than 1.95%        Meeting (Protocol #7
          to them or signed by JSC “OGK-6” in relation    affiliated companies and other entities that could be     costs, and losses extends under           of the sum of funds obtained, including         dated 11.07.2007).
          to the offer to Russian and foreign investors   specified as underwriters in the Underwriting             Agreement terms.                          additional bonuses and remuneration to the
          of ordinary shares in JSC “OGK-6” and/or        Agreement or in an appendix to the Underwriting                                                     Underwriters of expenses and costs, as well
          global deposit notes verifying rights in        Agreement.                                                                                          as VAT.
          relation to ordinary shares in JSC “OGK-6”,
          including using a stabilization mechanism.      Regulation S Deposit Agreement dated August               other persons to whom the provision       Formed from all Company obligations as per
                                                          14, 2007: JSC “OGK-6”, depositary bank Deutsche Bank      concerning remuneration or                the Regulation S Deposit Agreement,
                                                          Trust Company Americas (hereinafter the Depositary),      compensation of possible expenses,        including those not limited by the value of
                                                          and entities who at the respective time are the holders   costs, and losses extends under           the Company’s liabilities in relation to
                                                          and beneficial owners of global depositary notes as per   Regulation S Deposit Agreement terms.     remuneration or compensation of possible
                                                          Regulation S, verified by certificates of global                                                    expenses, costs, and losses of the Depositary
                                                          depositary notes issued in accordance with the                                                      and other persons to whom the provision
                                                          agreement terms.                                                                                    concerning remuneration or compensation
                                                                                                                                                              of possible expenses, costs, and losses
                                                                                                                                                              extends under Regulation S Deposit
                                                                                                                                                              Agreement terms.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


    #     TRANSACTION                            NAME OF PARTY                                           BENEFICIARIES                          VALUE                                           APPROVED BY

                                                 Rule 144A Deposit Agreement dated August 14,            other persons to whom the provision    Formed from all Company obligations as per
                                                 2007                                                    concerning remuneration or             the Rule 144A Deposit Agreement,
                                                 JSC “OGK-6”, the Depositary, and entities that are      compensation of possible expenses,     including those not limited by the value of
                                                 currently the holders and beneficial owners of global   costs, and losses extends under Rule   the Company’s liabilities in relation to
                                                 depositary notes as per Rule 144A, verified by          144A Deposit Agreement terms.          remuneration or compensation of possible
                                                 certificates of global depositary notes issued in                                              expenses, costs, and losses of the Depositary
                                                 accordance with the agreement terms.                                                           and other persons to whom the provision
                                                                                                                                                concerning remuneration or compensation
                                                                                                                                                of possible expenses, costs, and losses
                                                                                                                                                extends under Rule 144A Deposit
                                                                                                                                                Agreement terms.

                                                 Loan agreement: JSC “OGK-6” (lender); Carbon                                                   The value (monetary valuation) of property
                                                 International Energy Limited (borrower).                                                       (services) that may be directly or indirectly
                                                                                                                                                alienated (acquired) by the Company
                                                                                                                                                (including the amount of the Company’s
                                                                                                                                                obligations) as per the Loan Agreement is
                                                                                                                                                formed from all of the Company’s
                                                                                                                                                obligations as per the Loan Agreement,
                                                                                                                                                including the obligation to provide a loan in
                                                                                                                                                an amount of not more than 10% of the
                                                                                                                                                value of GDR placed by investors, calculated
                                                                                                                                                as per the placement price inclusive, and
                                                                                                                                                loan interest at the rate of 0 to 10% per
                                                                                                                                                annum (inclusive).

                                                 Option agreement: JSC “OGK-6”; Torman Limited.                                                 Formed from bonuses in an amount of not
                                                                                                                                                more than 10,000 US dollars, payable by
                                                                                                                                                the Company in favor of Torman Limited for
                                                                                                                                                procurement of the right/option to purchase
                                                                                                                                                up to 100% of placed shares in Carbon
                                                                                                                                                International Energy Limited inclusive, up to
                                                                                                                                                10,000 US dollars inclusive, which must be
                                                                                                                                                paid by the Company to Torman Limited in
                                                                                                                                                the event of exercise of the option by the
                                                                                                                                                Company.

4         Agreement of output supply to the      Generator: JSC “OGK-6”;                                                                        The trade system administrator determines       Extraordinary General
          wholesale market.                      Unified Party: ZAO CFR, Administrator of the NP ATS                                            the price (value) of the output according to    Shareholders’
                                                 trade system.                                                                                  the procedure provided for by the Wholesale     Meeting (Protocol # 8
                                                                                                                                                Market Rules and the Contract of Accession      dated 11.13.2007).
                                                                                                                                                to the Wholesale Market System.
|   APPENDIXES
                                                                                                                                                                                                                   142 | 143


2. RELATED-PARTY TRANSACTIONS




    #     TRANSACTION                                                                                 NAME OF                             RELATED                         VALUE                            # OF BOARD
                                                                                                      PARTY                               PARTIES                                                          OF DIRECTORS
                                                                                                                                                                          СДЕ                              PROTOCOL


1         Additional agreement to agency contract                                                     JSC “OGK-6”(Principal),             JSC RAO UES of Russia.                                            #31 dated
          Definition of fair value and definition of replacement value of assets belonging to the     JSC RAO UES of Russia (Agent).                                                                        02.15.2007.
          Principal.

2         Agreement of services for the development of an Insurance Coverage Program for              JSC “OGK-6” (Customer);             JSC RAO UES of Russia           150,000 rubles 00 kopecks,        #36 dated
          members of the Administration and members of the Board of Directors.                        JSC IB Elektra (Contractor).                                        including VAT.                    04.09.2007.


3         Purchase and sale agreement for electricpower according to which no confirmation of the     JSC “OGK-6”;                        JSC RAO UES of Russia, member   Determined by calculation.        #39 dated
          absence of significant system limitations is required.                                      JSC Mosenergosbyt (sale).           of the JSC “OGK-6” Board of                                       05.07.2007.
                                                                                                                                          Directors S.S. Fil.

4         Agreement on performance of installation and debugging work in JSC “OGK-6” subsidiary       JSC “OGK-6” (Customer);             JSC RAO UES of Russia.          177,000 rubles 00 kopecks,        #39 dated
          Krasnoyarskaya GRES-2 of the SQL version of the BING-3 information and diagnostic           JSC NIIES (Contractor).                                             including 18% VAT.                05.07.2007.
          system.


5         Agreement for attestation of subdivisions of JSC “OGK-6” subsidiary Krasnoyarskaya          JSC “OGK-6” (Customer);             JSC RAO UES of Russia.          198,240 rubles 00 kopecks,        #39 dated
          GRES-2 that conduct quantitative chemical analyses.                                         JSC UES Engineering Center                                          including 18% VAT.                05.07.2007.
                                                                                                      (Contractor).

6         Agreement on development of an FS for reconstruction of generation unit № 6 of JSC          JSC “OGK-6” (Customer);             JSC RAO UES of Russia.          370,100,000 rubles 00 kopecks,   #41 dated
          “OGK-6” subsidiary Kirishskaya GRES on the basis of a combined cycle plant         .        JSC SevZap NTC (Contractor).                                        including 18% VAT in the amount 06.21.2007.
                                                                                                                                                                          of 56,455,932 rubles 20 kopecks.

7         Agreement on development of design estimates for reconstruction of generation unit №        JSC “OGK-6”(Customer);              JSC RAO UES of Russia.          450,000,000 rubles 00 kopecks,   #41 dated
          6 of JSC “OGK-6” subsidiary Kirishskaya GRES on the basis of a combined cycle plant.        JSC SevZap NTC (Contractor).                                        including 18% VAT in the amount 06.21.2007.
                                                                                                                                                                          of 68,644,067 rubles 80 kopecks.

8         Agreement on development of design estimates for the project “Addition of a gas turbine     JSC “OGK-6”(Customer);              JSC RAO UES of Russia.          267,559,100 rubles 00 kopecks,   #41 dated
          to the 310 MW steam generation unit of JSC “OGK-6” subsidiary GRES-24.                      JSC UES Engineering Center                                          including 18% VAT in the amount 06.21.2007.
                                                                                                      (Contractor).                                                       of 40,814,100 rubles 00 kopecks.

9         Additional agreement to the agent agreement for conclusion of work agreements for the       JSC “OGK-6” (Principal),            JSC RAO UES of Russia           The bonus of Non-profit           #41 dated
          creation of a normative base of technical regulations in the electric power industry with   Non-profit Partnership                                              Partnership Innovations in the    06.21.2007.
          contractor companies; holding of tenders                                                    Innovations in the Electric Power                                   Electric Power Industry as per
                                                                                                      Industry (Agent).                                                   agent agreement comprises
                                                                                                                                                                          10% of the sum of the
                                                                                                                                                                          agreements concluded by the
                                                                                                                                                                          Agent, specifically 2,764,184
                                                                                                                                                                          rubles 60 kop., including VAT.

10        Additional agreement to the agent agreement for conclusion of work agreements for the       JSC “OGK-6” (Principal), Non-       JSC RAO UES of Russia.                                            #41 dated
          development of legal, normative and technical, and practical documents on financial and     profit Partnership Innovations in                                                                     06.21.2007.
          economical aspects of environmental protection with contracting companies.                  the Electric Power Industry
                                                                                                      (Agent).
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


    #     TRANSACTION                                                                                     NAME OF                            RELATED                  VALUE                           # OF BOARD
                                                                                                          PARTY                              PARTIES                                                  OF DIRECTORS
                                                                                                                                                                      СДЕ                             PROTOCOL


11        Agreement for performance by JSC Ural Electric Power Industry Engineering Center of             JSC “OGK-6” (Customer); JSC        JSC RAO UES of Russia.   232,287 rubles 00 kopecks,       #42 dated
          thermal tests of generators at generation units Nos. 5, 6, 7 of JSC “OGK-6” subsidiary          Ural Electric Power Industry                                including 18% VAT.               06.28.2007.
          Krasnoyarskaya GRES-2.                                                                          Engineering Center (Contractor).

12        Agreement on development by JSC Siberian ENTC of a plan for liquidation of accidents at         JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   1,156,400 rubles 00 kopecks,     #42 dated
          hydrotechnical installations of JSC“OGK-6”subsidiary Krasnoyarskaya GRES-2 and calculation of   JSC Siberian ENTC (Contractor).                             including 18% VAT.               06.28.2007.
          the harm which may be inflicted due to accidents at hydrotechnical installations.

13        Agreement on performance by JSC VTI of work on steam-oxygen cleansing, passivization,           JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   330,400 rubles 00 kopecks,       #42 dated
          and conservation of generation unit № 7 with PK-31 boilers and a K-150-130 turbine of           JSC VTI (Contractor).                                       including 18% VAT.               06.28.2007.
          JSC “OGK-6” subsidiary Krasnoyarskaya GRES-2.

14        Agreement of paid services of analyses conducted by JSC UES Engineering Center of               JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   59,000 rubles 00 kopecks,        #42 dated
          calculations and agreement of capacity limitations and measures for reduction thereof of        JSC UES Engineering Center                                  including 18% VAT.               06.28.2007.
          JSC “OGK-6” subsidiary Kirishskaya GRES planned for 2008.                                       (Contractor).

15        Agreement on development by JSC South ECE of design estimates for construction of               JSC “OGK-6”; JSC South ECE.        JSC RAO UES of Russia.                                    #43 dated
          generation unit № 9 of JSC “OGK-6” subsidiary Novocherkasskaya GRES using CCS                                                                                                                07.12.2007.
          technology.

16        Agreement on fulfillment by JSC CKB Energoremont of work to determine the cost of repairing     JSC “OGK-6”(Customer);             JSC RAO UES of Russia.   2,950,000 rubles 00 kopecks,     #44 dated
          fixed assets of JSC “OGK-6” subsidiaries Ryazanskaya GRES, Novocherkasskaya GRES,               JSC CKB Energoremont                                        including 18% VAT.               08.10.2007.
          Kirishskaya GRES, Krasnoyarskaya GRES-2, Cherepovetskaya GRES, and GRES-2 for 2008.             (Contractor).

17        Agreement on performance by JSC Power Machines of technical management of capital               JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   351,252 rubles 40 kopecks,       #44 dated
          repairs of PT-60-130/13 steam turbines of plant №2T and K-300-240 of plant №2 of JSC            JSC Power Machines                                          including 18% VAT.               08.10.2007.
          “OGK-6” subsidiary Kirishskaya GRES.                                                            (Contractor).

18        Agreement on performance by JSC VTI of thermal reconstruction of high-pressure fitting          JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   584,100 rubles 00 kopecks,       #44 dated
          housings of JSC “OGK-6” subsidiary Krasnoyarskaya GRES-2                                        JSC VTI (Contractor).                                       including 18% VAT.               08.10.2007.

19        Agreement on development by JSC Siberia ENTC of a Declaration of Safety of the                  JSC “OGK-6” (Customer);            JSC RAO UES of Russia    814,200 rubles 00 kopecks,       #44 dated
          hydrotechnical installations of JSC “OGK-6” subsidiary Krasnoyarskaya GRES-2.                   JSC Siberian ENTC (Contractor).                             including 18% VAT.               08.10.2007.

20        Agreement on development by JSC UES Engineering Center of a substantiation of                   JSC“OGK-6” (Customer);             JSC RAO UES of Russia.   49,090,841 rubles 00 kopecks,    #44 dated
          investments in the project “Second-phase construction of Cherepovetskaya GRES with              JSC UES Engineering Center                                  including 18% VAT in the         08.10.2007.
          allocation of generation unit № 4 as primary startup complex”.                                  (Contractor).                                               amount of 7,488,433 rubles
                                                                                                                                                                      37 kopecks.

21        Agreement on performance by JSC Ural Engineering Center of the Electric Power Industry          JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   1,203,607 rubles 65 kopecks,    #44 dated
          of an audit of the design estimates for construction of generation unit № 9 of JSC “OGK-6”      JSC Ural Electric Power Industry                            including 18% VAT in the amount 08.10.2007.
          subsidiary Novocherkasskaya GRES using CCS technology.                                          Engineering Center (Contractor).                            of 183,601 rubles 43 kopecks.

22        Agreement for conducting by JSC VTI of an audit of substantiation of investments for the        JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   1,020,000 rubles 00 kopecks,    #44 dated
          project “Modernization of GRES-24 through addition to a 310 MWt unit of a GT-110 gas            JSC VTI (Contractor).                                       including 18% VAT in the amount 08.10.2007.
          turbine”.                                                                                                                                                   of 155,593 rubles 22 kopecks.

23        Agreement on performance of project tasks (development of projects for “Administrative          JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   15,667,526 rubles 70 kopecks,    #47 dated
          and municipal building”, “Reconstruction of the lime industry building”) executed by JSC        JSC South ECE (Contractor).                                 including 18% VAT.               09.14.2007.
          South ECE.

24        Agreement on performance of work by JSC ENIN to calculate standard numbers of JSC               JSC “OGK-6” (Customer);            JSC RAO UES of Russia.   755,200 rubles 00 kopecks,       #49 dated
          “OGK-6” personnel.                                                                              JSC ENIN (Contractor).                                      including 18% VAT.               09.24.2007.
|   APPENDIXES
                                                                                                                                                                                                     144 | 145



25        Contract agreement for performance by JSC FSK UES of a technical survey of the contour       JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   613,483 rubles 71 kopecks,       #49 dated
          of the grounding of OS 110, 330 kW, of JSC “OGK-6” subsidiary Kirishskaya GRES.              JSC FSK UES (Contractor).                             including 18% VAT.               09.24.2007.

26        Contract agreement for performance by JSC UES Engineering Center of work on technical        JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   613,600 rubles 00 kopecks,       #49 dated
          diagnostics and survey of reinforced concrete and metal structures of crane tracks and       JSC UES Engineering Center                            including 18% VAT.               09.24.2007.
          columns of crane trestles, rows G1 and D of the main building of the CPP of JSC “OGK-6”      (Contractor).
          subsidiary Kirishskaya GRES.

27        Contract agreement for performance by JSC UES Engineering Center of work on technical        JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   472,000 rubles 00 kopecks,       №49 dated
          diagnostics and survey of reinforced concrete and metal structures of crane tracks and       JSC UES Engineering Center                            including 18% VAT.               09.24.2007.
          columns of crane trestles, rows G1 and D of the main building of the TPP of JSC “OGK-6”      (Contractor).
          subsidiary Kirishskaya GRES.

28        Agreement for performance by JSC VTI of work on a survey of high-pressure hoses on PK-       JSC “OGK-6”(Customer);       JSC RAO UES of Russia.   424,800 rubles 00 kopecks,       #49 dated
          38 boilers of generation units Nos. 1, 2, and 4 of JSC “OGK-6” subsidiary Krasnoyarskaya     JSC VTI (Contractor).                                 including 18% VAT.               09.24.2007.
          GRES-2 to determine the possibility, time, and conditions for further operation.

29        Agreement for performance by JSC VTI of work on the survey of first-category mains of        JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   413,000 rubles 00 kopecks,       #49 dated
          generation units of plants № 9 and № 10 of JSC “OGK-6” subsidiary Krasnoyarskaya             JSC VTI (Contractor).                                 including 18% VAT.               09.24.2007.
          GRES-2 to determine the possibility, time, and conditions for further operation.

30        Agreement for performance by JSC VTI of calculations of the economic life of trunk main      JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   145,140 rubles 00 kopecks,       #49 dated
          pipeline elements operating in creep flow conditions, of JSC “OGK-6” subsidiary              JSC VTI (Contractor).                                 including 18% VAT.               09.24.2007.
          Krasnoyarskaya GRES-2.

31        Contract agreement for performance by JSC UES Engineering Center of work to determine        JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   354,000 rubles 00 kopecks,       #49 dated
          the technical status of gas outlet trunk № 1 of reinforced concrete smokestack № 5           JSC UES Engineering Center                            including 18% VAT.               09.24.2007.
          (H=320 m) of JSC “OGK-6” subsidiary Kirishskaya GRES.                                        (Contractor).

32        Agreement for performance by JSC SibENTC of adjustment of detail design “Buildup of          JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   6,136,000 rubles 00 kopecks,     #49 dated
          tier 4 of the existing ash dump” of JSC “OGK-6” subsidiary Krasnoyarskaya GRES-2.            JSC SibENTC (Contractor).                             including 18% VAT.               09.24.2007.

33        Agreement for performance by JSC SibENTC of work on certification of masonry and             JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   289,000 rubles 00 kopecks,       #49 dated
          thermal insulation of trunk mains, boilers, and turbines of the generation units of the      JSC SibENTC (Contractor).                             including 18% VAT.               09.24.2007.
          plant #2 of JSC “OGK-6” subsidiary Krasnoyarskaya GRES-2.

34        Agreement for performance of work to adjust automatic optimum voltage differential           JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   1,770,000 rubles 00 kopecks,     №49 dated
          control systems at the OR of generation unit № 4 of JSC “OGK-6” subsidiary                   JSC UES Engineering Center                            including 18% VAT.               09.24.2007.
          Novocherkasskaya GRES.                                                                       (Contractor).

35        Agreement for performance of thermal tests of turbines with development of normative         JSC “OGK-6”(Customer);       JSC RAO UES of Russia.   8,839,801 rubles 89 kopecks,     #49 dated
          characteristics of units Nos. 1, 2, 3, 4, 5, 7, and 8 of JSC “OGK-6” subsidiary              South ECE (Contractor).                               including 18% VAT.               09.24.2007.
          Novocherkasskaya GRES.

36        Additional agreement to agreement № 0500856/060263-0622/456-06 dated                         JSC “OGK-6”;                 JSC RAO UES of Russia.   18,314,401 rubles 22 kopecks,    #49 dated
          07.05.2006 for performance of an audit of rotor TVV-320-2UZ (fac. №16280) with               JSC Power Machines.                                   including 18% VAT.               09.24.2007.
          simultaneous replacement of the radial fan concluded between JSC KiGRES, the full
          cessionary of the property, rights, and obligations of which is JSC “OGK-6”, and JSC Power
          Machines.

37        Agreement on paid services to provide scientific and technical industrial documents.         JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   not more than 198,000 rubles     #49 dated
                                                                                                       JSC VTI (Contractor).                                 00 kopecks, including 18% VAT.   09.24.2007.

38        Agreements for development and furnishing processes (product sheets) by type of repair       JSC “OGK-6” (Customer);      JSC RAO UES of Russia.   1,797,700 rubles 00 kopecks,     #49 dated
          of primary and ancillary equipment of JSC “OGK-6”.                                           JSC CKB Energoremont                                  including 18% VAT.               09.24.2007.
                                                                                                       (Contractor).
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


    #     TRANSACTION                                                                                    NAME OF                            RELATED                         VALUE                              # OF BOARD
                                                                                                         PARTY                              PARTIES                                                            OF DIRECTORS
                                                                                                                                                                            СДЕ                                PROTOCOL

39        Agreement on supply of graphic products (industrial normative and information                  JSC “OGK-6”(Purchaser);            JSC RAO UES of Russia.          not more than 188,800 rubles        #49 dated
          documentation)                                                                                 JSC UES Engineering Center                                         00 kopecks, including 18% VAT.      09.24.2007.
                                                                                                         (Supplier).

40        Agreement with captive insurance agency JSC IB Elektra.                                        JSC “OGK-6”; JSC IB Elektra.       JSC RAO UES of Russia.          50,000 rubles 00 kopecks,           #53 dated
                                                                                                                                                                            including 18% VAT.                  11.06.2007.

41        Guarantee agreement                                                                            JSC “OGK-6”(Creditor)              JSC RAO UES of Russia, member                                       #53 dated
          The extent of claims of JSC “OGK-6” (the Creditor) against JSC Kostromsky Sales Company        and JSC TGK-2 (Guarantor).         of the JSC “OGK-6” Board of                                         11.06.2007.
          (the Debtor), which may be put to JSC TGK-2 (the Guarantor) as per the guarantee                                                  Directors D.A. Melnikov.
          agreement concluded between the Creditor and the Debtor, in an amount of not more than
          95% of obligations of the Debtor as per regulated purchase and sale contracts of electric
          power and output Nos.RDM-PKOSTREN-SKRASGR1-01-KP-07-L and RDM-PKOSTREN-
          SKRASGR2-01-KP-07-L dated 02.16.07, concluded between the Creditor and the Debtor, for
          the accounting period (without account of fines and penalties accrued against the sum of
          the arrears of the Debtor) and not more than 2% of the book value of assets of the Guarantor
          as of the last accounting date for the entire life of the guarantee agreement.

42        Guarantee agreement                                                                            JSC “OGK-6” (Creditor)             JSC RAO UES of Russia, member                                       #53 dated
          The extent of claims of JSC “OGK-6” (the Creditor) against JSC Arkhenergosbyt (the Debtor),    and JSC TGK-2 (Guarantor).         of the JSC “OGK-6” Board of                                         11.06.2007.
          which may be put to JSC TGK-2 (the Guarantor) as per the guarantee agreement concluded                                            Directors D.A. Melnikov.
          between the Creditor and the Debtor, in an amount of not more than 95% of obligations of
          the Debtor as per regulated purchase and sale contracts of electric power and output Nos.
          RDM-PARHENER-SVOLOGE1-02-KP-07-E and RDM-PARHENER-SMOLEN21-01-KP-07-E
          dated 02.16.07, concluded between the Creditor and the Debtor, for the accounting period
          (without consideration of fines and penalties accrued against the sum of the arrears of the
          Debtor) and not more than 2% of the book value of assets of the Guarantor as of the last
          accounting date for the entire life of the guarantee agreement.

43        Guarantee agreement                                                                            JSC “OGK-6” (the Creditor)         JSC RAO UES of Russia, member   Accrued on the sub of arrears of    #53 dated
          The extent of claims of JSC “OGK-6” (the Creditor) against JSC Omsk Energy Sales               and JSC Omsk Energy Sales          of the JSC “OGK-6” Board of     the Debtor and not more than        11.06.2007.
          Company (the Debtor), which may be put to JSC Omsk Energy Sales Company (the                   Company (the Guarantor).           Directors P.O. Shatsky.         2% of the book value of assets
          Guarantor) as per the guarantee agreement concluded between the Creditor and the                                                                                  of the Guarantor.
          Guarantor in an amount of not more than 95% of obligations of the Debtor as per the
          purchase and sale contract of electric power and output № 34346 (03.212.288.07) dated
          02.16.2007, concluded between the Creditor and the Debtor, for the accounting period
          (without account for fines and penalties).

44        Additional agreement № 05030856/050097-0447/335-05 dated 02.24.2005 to perform                 JSC “OGK-6”;                       JSC RAO UES of Russia.          12,676,791 rubles 78 kopecks,       #53 dated
          flaw detection (technical examination) and repair of the rotor of low-voltage steam turbine    JSC Power Machines.                                                including 18% VAT.                  11.06.2007.
          K-300-240-1 fac. №1186, concluded previously between JSC KiGRES, the full cessionary of
          the property, rights, and obligations of which is JSC “OGK-6”, and JSC Power Machines.

45        Agreement on performance by JSC UES Engineering Center of work on the accreditation            JSC “OGK-6” (the Customer);        JSC RAO UES of Russia.          127,440 rubles 00 kopecks,          #53 dated
          of the meteorological service of JSC “OGK-6”subsidiary Kirishskaya GRES to the right to        JSC UES Engineering Center (the                                    including 18% VAT.                  11.06.2007.
          conduct calibration work on six types of measurements.                                         Contractor).

46        Agreement of paid services of JSC Ural Engineering Center of the Electric Power Industry       JSC “OGK-6”(Customer);             JSC RAO UES of Russia.          310,000 rubles 00 kopecks,          #53 dated
          for compilation of a thermal masonry passport and thermal insulation of 310 MW unit of         JSC Ural Electric Power Industry                                   including 18% VAT.                  11.06.2007.
          JSC “OGK-6” subsidiary GRES-24.                                                                Engineering Center (Contractor).
|   APPENDIXES
                                                                                                                                                                                                                 146 | 147



47        Agreement on provision to JSC “OGK-6” subsidiary Kirishskaya GRES of graphic products        JSC “OGK-6” (the Purchaser);      JSC RAO UES of Russia.          not more than 100,000 rubles     #53 dated
          — the industrial normative and informational documents published by JSC UES                  JSC UES Engineering Center (the                                   00 kopecks, including 18% VAT.   11.06.2007.
          Engineering Center.                                                                          Supplier).

48        Contractor’s agreement for performance by JSC VTI of an investigation of the condition of    JSC “OGK-6” (Customer);           JSC RAO UES of Russia.          230,832 rubles 84 kopecks,       #53 dated
          metal and determination of the possibility and times for subsequent operation of isolation   SC VTI (Contractor).                                              including 18% VAT.               11.06.2007.
          valves of turbine K-300-240 of a unit of plant №2 of JSC “OGK-6” Kirishskaya GRES.

49        Agreement on supply of services from NP INVEL to provide JSC “OGK-6” with the right of       JSC “OGK-6” the (Customer);       JSC RAO UES of Russia.          307,400 rubles 00 kopecks,       #53 dated
          access to the set of legal, normative and technical, and guidance documents for the          JSC INVEL (the Contractor).                                       including 18% VAT.               11.069.2007.
          technical and financial and economic aspects of environmental protection.

50        Agreement on performance by JSC UES Engineering Center of work to draw up a report           JSC “OGK-6” (Customer);           JSC RAO UES of Russia                                            #53 dated
          on the results of check tests of availability for participation in total primary frequency   JSC UES Engineering Center        29,500 rubles 00 kopecks,                                        11.06.2007.
          control in the UES of generation units of plants Nos. 9 and 10 of JSC “OGK-6” subsidiary     (Contractor).                     including 18% VAT.
          Krasnoyarskaya GRES-2.

51        Agreement on performance by JSC “OGK-6” of steam-oxygen passivation of boiler BKZ-           JSC Enesei TGK (TGK-13) (the      JSC RAO UES of Russia, member   127,741 rubles 47 kopecks,       #53 dated
          420-140-PT2 of plant № 1 of JSC Enesei TGK (TGK-13) subsidiary Minusinsky TPP, as well       Customer) and JSC “OGK-6” (the    of the JSC “OGK-6” Board of     including 18% VAT.               11.06.2007.
          as servicing the installation of a transportation reservoir of liquid oxygen during steam-   Contractor).                      Directors P.O. Shatsky.
          oxygen passivation of boiler BKZ-420-140 PT-2 plant № 1 of Enesei TGK (TGK-13)
          subsidiary Minusinsky TPP.

52        Work agreement for the remarking the equipment of JSC “OGK-6” subsidiary                     JSC “OGK-6” (Customer); JSC       JSC RAO UES of Russia                                            #53 dated
          Krasnoyarskaya GRES-2.                                                                       UES Engineering Center            23,600 rubles 00 kopecks,                                        11.06.2007.
                                                                                                       (Contractor).                     including 18% VAT.

53        Agreement on performance by JSC RAO UES of Russia of information servicing of JSC            JSC “OGK-6” (Customer);           JSC RAO UES of Russia, member   42,000 rubles 00 kopecks,        #55 dated
          “OGK-6” by supporting access to an individual program of pre-examination preparation         JSC RAO UES of Russia             of the JSC “OGK-6” Board of     including 18% VAT.               12.04.2007.
          of specialists and the related electronic copies of documents located on WWW servers of      (Contractor).                     Directors S. Remes
          JSC RAO UES of Russia subsidiaries DP Tsentrenergotekhnadzor via the Internet

54        Agreement .                                                                                  JSC “OGK-6”; Non-profit           JSC RAO UES of Russia, member                                    #55 dated
                                                                                                       Partnership Energy Carbon         of the JSC “OGK-6” Board of                                      12.04.2007
                                                                                                       Fund; JSC Energy carbon           Directors D.A. Burnashev.
                                                                                                       products.

55        Agreement on performance by JSC VTI of repair of OP-2-110 (CEN) impellers by means           JSC “OGK-6”(Customer);            JSC RAO UES of Russia.          236,000 rubles 00 kopecks,       #55 dated
          of electrospark covering of the work surface subjected to wear of axle pump assemblies       JSC VTI (Contractor).                                             including 18% VAT.               12.04.2007.
          of unit № 7 of inv. №16208 of JSC “OGK-6” subsidiary Krasnoyarskaya GRES-2.

56        Agreement on performance by JSC UES Engineering Center of work to draw up a report           JSC “OGK-6” (Customer);           JSC RAO UES of Russia.          29,500 rubles 00 kopecks,        #55 dated
          on the results of check tests of availability for participation in total primary frequency   JSC UES Engineering Center                                        including 18% VAT.               12.04.2007.
          control in the UES of generation units of plant №5 of JSC “OGK-6” subsidiary                 (Contractor).
          Krasnoyarskaya GRES-2.

57        Agreement on participation of an JSC “OGK-6” representative in the fourth international      JSC “OGK-6” (Customer);           JSC RAO UES of Russia.          15,000 rubles 00 kopecks,        #55 dated
          science and technology conference, “The Issue of Vibration, Vibration Adjustment,            JSC VTI (Contractor).                                             including 18% VAT.               12.04.2007.
          Vibration Monitoring, and PP Equipment Diagnostics”, held by JSC VTI.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |


    #     TRANSACTION                                                                                   NAME OF                       RELATED                               VALUE                               # OF BOARD
                                                                                                        PARTY                         PARTIES                                                                   OF DIRECTORS
                                                                                                                                                                            СДЕ                                 PROTOCOL


58        Transaction related to the Company’s participation in NP VTI.                                                               JSC RAO UES of Russia,                Amount of introductory deposit       #56 dated
          (Performance of the necessary actions related to establishment of NP VTI along with JSC                                     members of the Board of               related to the Company’s             12.17.2007.
          RAO UES of Russia, JSC VTI, JSC TGK-1, JSC TGK-2, JSC Mosenergo, JSC TGK-4, JSC TGK-5,                                      Directors of JSC “OGK-6” D.A.         participation in NP VTI –
          JSC TGK-6, JSC TGK-7, JSC South Generating Company – TGK-8, JSC TGK-9, JSC TRGK, JSC                                        Burnashev, A.V. Evkharitsky, D.A.     52,365.6 thousand rubles.
          TGK-11, JSC TGK-12, JSC OGK-1, JSC OGK-2, JSC OGK-3, JSC OGK-4, JSC OGK-5, JSC UES                                          Melnikov, S. Remes, M.Z.
          Engineering Center, JSC Ural Engineering Center of the Power Industry, JSC Siberian                                         Sokolovsky, S.S. Fil, I.G. Tsurnov,
          ENTC, JSC South Engineering Center of the Power Industry, JSC Povolzhia Engineering                                         P.O. Shatsky.
          Center for the Power Industry, JSC VNIPI Energoprom, JSC SKB VTI, JSC SPKBRR, JSC CKB
          Energoremont, JSC Sibtekhenergo, JSC SevZap NTC).

59        Owner/developer service agreement for project “Modernization of GRES-24 through               JSC “OGK-6”(Customer);        JSC RAO UES of Russia.                Payment for service: 119,605,000     #56 dated
          addition of a gas turbine to the 310 MW unit ”.                                               JSC UES Engineering Center                                          rubles, incl. 18% VAT –              12.17.2007.
                                                                                                        (Contractor).                                                       18,244,830.51 rubles. The
                                                                                                                                                                            premium from savings on project
                                                                                                                                                                            implementation is paid by the
                                                                                                                                                                            Customer within 1 (one) month
                                                                                                                                                                            following the date of putting the
                                                                                                                                                                            facility in guarantee commission
                                                                                                                                                                            in the amount of 50% of the
                                                                                                                                                                            difference between the indicative
                                                                                                                                                                            price and all expenses actually
                                                                                                                                                                            incurred by the Customer related
                                                                                                                                                                            to implementation of the project,
                                                                                                                                                                            but not more than 430,000,000
                                                                                                                                                                            rubles, incl. 18% VAT —
                                                                                                                                                                            65,593,220.34 rubles.

60        Agreement on paid services to adjust the recharger following replacement of VAZP at UZP       JSC “OGK-6” (Customer);       JSC RAO UES of Russia.                235,498 rubles 50 kopecks,           #56 dated
          (inv. № 43777) and accession to the BSPT scheme of JSC “OGK-6” subsidiary                     JSC South ECE (Contractor).                                         including 18% VAT.                   12.17.2007.
          Novocherkasskaya GRES.

61        Agreement of services of conducting analyses and agreement of time schedules of cold          JSC “OGK-6”(Customer);        JSC RAO UES of Russia.                323,662 rubles 20 kopecks,           #59 dated
          startup of generation units Nos. 1-4 of JSC “OGK-6” subsidiary Ryazanskaya GRES.              JSC UES Engineering Center                                          including 18% VAT.                   12.27.2007.
                                                                                                        (Contractor).

62        Service agreement for technical certification of buildings and installations of JSC “OGK-6”   JSC “OGK-6” (Customer);       JSC RAO UES of Russia.                1,852,600 rubles 00 kopecks,         #59 dated
          subsidiary Ryazanskaya GRES.                                                                  JSC UES Engineering Center                                          including 18% VAT.                   12.27.2007.
                                                                                                        (Contractor).

63        Service agreement for comprehensive inspection of galleries and trestles of JSC “OGK-6”       JSC “OGK-6” (Customer);       JSC RAO UES of Russia.                885,000 rubles 00 kopecks,           #59 dated
          subsidiary Ryazanskaya GRES                     .                                             JSC UES Engineering Center                                          including 18% VAT.                   12.27.2007.
                                                                                                        (Contractor).

64        Work agreement for analysis and submission of proposals for organizing labor and rating       JSC “OGK-6” (Customer);       JSC RAO UES of Russia.                224,200 rubles 00 kopecks,           #59 dated
          of the work of personnel of the boiler-and-turbine workshop of JSC “OGK-6” subsidiary         JSC ENIN (Contractor).                                              including 18% VAT.                   12.27.2007.
          Krasnoyarskaya GRES-2.

65        Work agreement of JSC FSK UES for repair of overhead VVD-330B breakers VLB-4, VT-5,           JSC “OGK-6” (Customer);       JSC RAO UES of Russia.                3,555,753 rubles 85 kopecks,         #59 dated
          and VLB-6 of JSC “OGK-6” subsidiary Kirishskaya GRES.                                         JSC FSK UES (Contractor).                                           including 18% VAT.                   12.27.2007.

66        Work agreement of JSC FSK UES for capital repair of overhead VVU-110 breakers VlKrsh-         JSC “OGK-6” (Customer);       JSC RAO UES of Russia.                2,005,130 rubles 91 kopecks,         #59 dated
          2, SV-1, SV-2 (MSB-2), BlKNPZ-1) of JSC “OGK-6” subsidiary Kirishskaya GRES.                  JSC FSK UES (Contractor).                                           including 18% VAT.                   12.27.2007.
|   APPENDIXES
                                                                                                                                                                                 148 | 149


IV. JSC “OGK-6” PRIMARY EQUIPMENT CHARACTERISTICS



TABLE #1. TURBINES
    PLANT #                     TURBINE TYPE (GRADE)                     MANUFACTURERYEAR COMMISSIONED                                    INSTALLED ELECTRICAL CAPACITY   THERMAL CAPACITY
                                                                                                                                                                    MW                Gcal/hr
    Ryazanskaya GRES                                                                                                                                              2,650                120
    TPB 01                                      К-300-240                              LMZ                 1973                                                     260                 15
    TPB 02                                      К-300-240                              LMZ                 1973                                                     270                 15
    TPB 03                                      К-300-240                              LMZ                 1974                                                     260                 15
    TPB 04                                      К-300-240                              LMZ                 1974                                                     260                 15
    TPB 05                                    К-800-240-3                              LMZ                 1980                                                     800                 30
    TPB 06                                    К-800-240-3                              LMZ                 1981                                                     800                 30

    Novocherkasskaya GRES                                                                                                                                         2,112                  75
    TPB 01                              К-264(300)-240-1                               KTGZ                1965                                                     264                  15
    TPB 02                              К-264(300)-240-2                               KTGZ                1966                                                     264                  15
    TPB 03                              К-264(300)-240-2                               KTGZ                1967                                                     264                  15
    TPB 04                              К-264(300)-240-2                               KTGZ                1968                                                     264                  15
    TPB 05                              К-264(300)-240-2                               KTGZ                1969                                                     264                   0
    TPB 06                                  К-310-23,5-3                               KTGZ                2005                                                     264                   0
    TPB 07                              К-264(300)-240-2                               KTGZ                1971                                                     264                   0
    TPB 08                              К-264(300)-240-2                               KTGZ                1972                                                     264                  15

    Kirishskaya GRES                                                                                                                                              2,100                826
    TPB 01                                    К-300-240-1                              LMZ                 1969                                                     300                  0
    TPB 02                                    К-300-240-1                              LMZ                 1970                                                     300                  0
    TPB 03                                    К-300-240-1                              LMZ                 1970                                                     300                  0
    TPB 04                                    К-300-240-1                              LMZ                 1971                                                     300                  0
    TPB 05                                    К-300-240-1                              LMZ                 1973                                                     300                  0
    TPB 06                                    К-300-240-1                              LMZ                 1975                                                     300                  0
    TP 01Т                                    PT-50-130/7                              ТМЗ                 1965                                                      50                110
    TP 02Т                                   PT-60-130/13                              LMZ                 1966                                                      60                139
    TP 03Т                                    PT-50-130/7                              ТМЗ                 1967                                                      50                110
    TP 04Т                                   PT-60-130/13                              LMZ                 1975                                                      60                139
    TP 05Т                                    Р-40-130/13                              LMZ                 1976                                                      40                164
    TP 06Т                                    Р-40-130/19                              LMZ                 1979                                                      40                164

    Krasnoyarskaya GRES-2                                                                                                                                         1,250                976
    TG-1                                       К-150-130                               KTGZ                1961                                                     150                 45
    TG-2                                       К-150-130                               KTGZ                1962                                                     150                 45
    TG-4                                       К-150-130                               KTGZ                1963                                                     150                 45
    TG-5                                     PT-60-90/13                               LMZ                 1964                                                      50                145
    TG-6                                       К-160-130                               KTGZ                1974                                                     160                 42
    TG-7                                       К-160-130                               KTGZ                1975                                                     160                 42
    TG-8                                       К-160-130                               KTGZ                1976                                                     160                 42
    TG-9                               PT-135/165-130-15                              UTMZ                 1981                                                     135                285
    TG-10                              PT-135/165-130-15                              UTMZ                 1983                                                     135                285

    Cherepovetskaya GRES                                                                                                                                           630                   39
    TPB 01                                    К-210-130-3                              LMZ                 1976                                                    210                   13
    TPB 02                                    К-210-130-3                              LMZ                 1977                                                    210                   13
    TPB 03                                    К-210-130-3                              LMZ                 1978                                                    210                   13

    GRES-24                                                                                                                                                        310                     0
    TBP 01                                    K-300-240-4                              LMZ                 1988                                                    310                     0

    LMZ — Leningrad Metal Factory, Power Machines, KTGZ — Kharkov Turboelectric Factory, NPO Turboatom, UTMZ — Ural Turbomotor Factory.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




TABLE #2. POWER BOILERS

    BOILER |   BOILER TYPE (GRADE) |             MFR. |   YEAR COMM. |   LIVE STEAM PARAMETERS |   OUTPUT |                                                 FUEL

                                                                                                                                       FOR KINDLING/
                                                                         PRESSURE          TEMP                PRIMARY    RESERVE           LIGHTING      DESIGN
                                                                            kgf/cm2           °С        T/hr


Ryazanskaya GRES
KPB 01                    PP-860-255-545            ZIO           1973        255           545         860        Coal           –       Gas, Fuel Oil     Coal
KPB 02                    PP-890-255-545            ZIO           1973        255           545         890        Coal           –       Gas, Fuel Oil     Coal
KPB 03                    PP-860-255-545            ZIO           1974        255           545         860        Coal           –       Gas, Fuel Oil     Coal
KPB 04                    PP-860-255-545            ZIO           1974        255           545         860        Coal           –       Gas, Fuel Oil     Coal
KPB 05                        TGMP-204P             TKZ           1980        255           545       2,650         Gas     Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 06                        TGMP-204P             TKZ           1981        255           545       2,650         Gas     Fuel oil      Gas, Fuel Oil   Fuel oil

Novocherkasskaya GRES
KPB 01                               TRP-110        TKZ           1965        255           545        830          Gas        Coal       Gas, Fuel Oil      Coal
KPB 02                               TRP-110        TKZ           1966        255           545        830         Coal         Gas       Gas, Fuel Oil      Coal
KPB 03A                              TRP-210        TKZ           1967        255           545        415          Gas        Coal       Gas, Fuel Oil      Coal
KPB 03B                              TRP-210        TKZ           1967        255           545        415          Gas        Coal       Gas, Fuel Oil      Coal
KPB 04A                              TRP-210        TKZ           1968        255           545        415          Gas        Coal       Gas, Fuel Oil      Coal
KPB 04B                              TRP-210        TKZ           1968        255           545        415          Gas        Coal       Gas, Fuel Oil      Coal
KPB 05A                             TRU-210A        TKZ           1969        255           545        415         Coal         Gas       Gas, Fuel Oil      Coal
KPB 05B                             TRU-210A        TKZ           1969        255           545        415         Coal         Gas       Gas, Fuel Oil      Coal
KPB 01                              TRU-210A        TKZ           1970        255           545        415          Gas        Coal       Gas, Fuel Oil      Coal
KPB 06B                             TRU-210A        TKZ           1970        255           545        415          Gas        Coal       Gas, Fuel Oil      Coal
KPB 07A                             TRU-210A        TKZ           1971        255           545        415         Coal         Gas       Gas, Fuel Oil      Coal
KPB 07B                             TRU-210A        TKZ           1971        255           545        415         Coal         Gas       Gas, Fuel Oil      Coal
KPB 08A                             TRU-210A        TKZ           1972        255           545        415         Coal         Gas       Gas, Fuel Oil      Coal
KPB 08B                             TRU-210A        TKZ           1972        255           545        415         Coal         Gas       Gas, Fuel Oil      Coal

Kirishskaya GRES
KPB 01A                             TGMP-114        TKZ           1969        255           545         500        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 01B                             TGMP-114        TKZ           1969        255           545         500        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 02A                             TGMP-114        TKZ           1970        255           545         500        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 02B                             TGMP-114        TKZ           1970        255           545         500        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 03A                             TGMP-114        TKZ           1970        255           545         500        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 03B                             TGMP-114        TKZ           1970        255           545         500        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 04                              TGMP-324        TKZ           1971        255           535       1,000        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 05                             TGMP-324A        TKZ           1973        255           535       1,000        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KPB 06                             TGMP-324A        TKZ           1975        255           535       1,000        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KP 1T                                 TGM-84        TKZ           1965        140           550         420        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KP 2T                                 TGM-84        TKZ           1966        140           550         420        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KP 3T                                TGM-84A        TKZ           1966        140           550         420        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KP 4T                                TGM-84B        TKZ           1974        140           550         420        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KP 5T                                TGM-84B        TKZ           1976        140           550         420        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
KP 6T                                TGM-84B        TKZ           1983        140           550         420        Gas      Fuel oil      Gas, Fuel Oil   Fuel oil
|   APPENDIXES
                                                                                                                                                 150 | 151




    BOILER |     BOILER TYPE (GRADE) |     MFR. |   YEAR COMM. |   LIVE STEAM PARAMETERS |   OUTPUT |                                               FUEL

                                                                                                                              FOR KINDLING/
                                                                   PRESSURE          TEMP                PRIMARY    RESERVE        LIGHTING       DESIGN
                                                                      kgf/cm2           °С        T/hr


    Krasnoyarskaya GRES-2
    1A                            PK-38      ZIO            1961        140           545        270         Coal        –            Fuel oil       Coal
    1B                            PK-38      ZIO            1961        140           545        270         Coal        –            Fuel oil       Coal
    2A                            PK-38      ZIO            1962        140           545        270         Coal        –            Fuel oil       Coal
    2B                            PK-38      ZIO            1962        140           545        270         Coal        –            Fuel oil       Coal
    4A                            PK-38      ZIO            1963        140           545        270         Coal        –            Fuel oil       Coal
    4B                            PK-38      ZIO            1963        140           545        270         Coal        –            Fuel oil       Coal
    5A                            PK-14      ZIO            1964        140           520        170         Coal        –            Fuel oil       Coal
    5B                            PK-14      ZIO            1964        140           520        170         Coal        –            Fuel oil       Coal
    6A                            PK-38      ZIO            1974        140           545        270         Coal        –            Fuel oil       Coal
    6B                            PK-38      ZIO            1975        140           545        270         Coal        –            Fuel oil       Coal
    7A                            PK-38      ZIO            1975        140           545        270         Coal        –            Fuel oil       Coal
    7B                            PK-38      ZIO            1975        140           545        270         Coal        –            Fuel oil       Coal
    8A                            PK-38      ZIO            1976        140           545        270         Coal        –            Fuel oil       Coal
    8B                            PK-38      ZIO            1976        140           545        270         Coal        –            Fuel oil       Coal
    9A                    BKZ-420-140RT      BKZ            1981        140           560        420         Coal        –            Fuel oil       Coal
    9B                    BKZ-420-140RT      BKZ            1982        140           560        420         Coal        –            Fuel oil       Coal
    10 A                  BKZ-420-140RT      BKZ            1983        140           560        420         Coal        –            Fuel oil       Coal
    10 B                  BKZ-420-140RT      BKZ            1987        140           560        420         Coal        –            Fuel oil       Coal

    Cherepovetskaya GRES
    KPB 01A                TR(E)-208-335      TKZ           1976        140           545        335         Coal       Gas      Gas, Fuel Oil      Peat
    KPB 01B                TR(E)-208-335      TKZ           1976        140           545        335         Coal       Gas      Gas, Fuel Oil      Peat
    KPB 02A                TR(E)-208-335      TKZ           1977        140           545        335         Coal       Gas      Gas, Fuel Oil      Peat
    KPB 02B                TR(E)-208-335      TKZ           1977        140           545        335         Coal       Gas      Gas, Fuel Oil      Peat
    KPB 03A                TR(E)-208-335      TKZ           1978        140           545        335         Coal       Gas      Gas, Fuel Oil      Peat
    KPB 03B                TR(E)-208-335      TKZ           1978        140           545        335         Coal       Gas      Gas, Fuel Oil      Peat

    GRES-24
    KBP 01         Pp-1000-25-545 (P-74)      ZIO           1988        255           545       1,000        Gas         –                  –        Gas
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |




TABLE #3. WATER BOILERS

    BOILER |      BOILER TYPE (GRADE) |               MFR. | YEAR COMM. | HEAT TRANSFER MEDIUM PARAMETERS |   OUTPUT |                                 FUEL

                                                                                 PRESSURE             TEMP                 PRIMARY      RESERVE      DESIGN
                                                                                     kgf/cm2             °С      Gcal/hr


    Krasnoyarskaya GRES-2

    KV 2                            RTVM-100      Belgorodsky         1973               25             150        100       Fuel oil     Fuel oil   Fuel oil
    KV 3                            RTVM-100      Belgorodsky         1976               25             150        100       Fuel oil     Fuel oil   Fuel oil

    Kirishskaya GRES

    KV 1                            KVGM-100                DKZ       1982               16             150        100       Fuel oil     Fuel oil   Fuel oil
    KV 2                            KVGM-100                DKZ       1987               16             150        100       Fuel oil     Fuel oil   Fuel oil

    Ryazanskaya GRES

    KV 01                      RTVM-30M-4                   DKZ       1972               20             150         30       Fuel oil     Fuel oil   Fuel oil
    KV 02                      RTVM-30M-4                   DKZ       1972               20             150         30       Fuel oil     Fuel oil   Fuel oil


    ZIO — Podolsk engineering plant ZIO Podolsk,
    TKZ — Taganrog boiler factory Krasny Kotelshchik,
    BKL — Barnaul boiler factory Sibenergomash,
    DKZ — Dorogobuzh boiler factory Dorogobuzhenergomash.
|   APPENDIXES
                                                                                                                                     152 | 153


TABLE #4. GENERATORS

    PLANT # |           TURBINE TYPE (GRADE) |         MANUFACTURER |       YEAR COMM. |   VOLTAGE |   CAPACITY |       EXCITATION SYSTEM TYPE

                                                                                                                     PRIMARY          RESERVE
                                                                                                  kV          MW


    Ryazanskaya GRES
    TGB 01                                TVV-320-2            El. force            1973          20         320    HF with DC         ELMASH
    TGB 02                                TVV-320-2            El. force            1973          20         320    HF with DC         ELMASH
    TGB 03                                TVV-320-2            El. force            1974          20         320    HF with DC         ELMASH
    TGB 04                                TVV-320-2            El. force            1974          20         320    HF with TV         ELMASH
    TGB 05                              TZV-800-2UZ            El. force            1980          24         800           TIR         ELMASH
    TGB 06                              TZV-800-2UZ            El. force            1981          24         800           TIR         ELMASH

    Novocherkasskaya GRES
    TGB 01                                   TGV-300             KETM               1968          20         300            TIR        ELMASH
    TGB 02                                   TGV-300             KETM               1966          20         300            TIR        ELMASH
    TGB 03                                   TGV-300             KETM               1967          20         300            TIR        ELMASH
    TGB 04                                   TGV-300             KETM               1968          20         300            TIR        ELMASH
    TGB 05                                   TGV-300             KETM               1969          20         300            TIR        ELMASH
    TGB 06                                   TGV-300             KETM               1970          20         300            TIR        ELMASH
    TGB 07                                   TGV-300             KETM               1971          20         300            TIR        ELMASH
    TGB 08                                   TGV-300             KETM               1985          20         300            TIR        ELMASH

    Kirishskaya GRES
    TGB 01                              TVV-320-2UZ              El. sila           1969         20          300            HF         ELMASH
    TGB 02                              TVV-320-2UZ             El. fsila           1970         20          300            HF         ELMASH
    TGB 03                              TVV-320-2UZ              El. sila           1970         20          300      TIR-PS S         ELMASH
    TGB 04                              TVV-320-2UZ              El. sila           1971         20          300    HF with DC         ELMASH
    TGB 05                              TVV-320-2UZ              El. sila           1973         20          300            HF         ELMASH
    TGB 06                              TVV-320-2UZ              El. sila           1975         20          300      TIR-PS S         ELMASH
    TG 1T                                  TVF-60-2            El. force            1965         6.3          60      ELMASH           ELMASH
    TG 2T                                  TVF-60-2              El. sila           1966         6.3          60      ELMASH           ELMASH
    TG 3T                                  TVF-60-2              El. sila           1967         6.3          60      ELMASH           ELMASH
    TG 4T                                  TVF-63-2              El. sila           1975         6.3          63      ELMASH           ELMASH
    TGB 5T                               TVV-63-2UZ              El. sila           1976         6.3          63      ELMASH           ELMASH
    TGB 6T                               TVF-63-2UZ              El. sila           1979         6.3          63      ELMASH           ELMASH

    Krasnoyarskaya GRES-2
    1G                                  TV-2-150-2              El. sila            1961         18          150       ELMASH          ELMASH
    2G                                  TV-2-150-2              El. sila            1962         18          150       ELMASH          ELMASH
    4G                                  TV-2-150-2              El. sila            1963         18          150       ELMASH          ELMASH
    5G                                    TVF-60-2              El. sila            1964         6.3          50       ELMASH          ELMASH
    6G                                 TVV-165-2UZ              El. sila            1974         18          165           HF          ELMASH
    7G                                 TVV-165-2UZ              El. sila            1975         18          165           HF          ELMASH
    8G                                TVV-160-2EUZ              El. sila            2002         18          160           HF          ELMASH
    9G                                TVV-160-2EUZ              El. sila            1981         18          160           TIR         ELMASH
    10 G                              TVV-160-2EUZ              El. sila            1983         18          160           TIR         ELMASH

    Cherepovetskaya GRES
    TGB 01                                   TGV-200             KETM               1976        15.8         200    BSS with PV        ELMASH
    TGB 02                                   TGV-200             KETM               1977        15.8         200    BSS with PV        ELMASH
    TGB 03                                   TGV-200             KETM               1978        15.8         200    BSS with PV        ELMASH

    GRES-24
    TGB 01                            TVV-320-2EUZ              El. sila            1988          20         320            TIR        ELMASH

    El. sila — Power Machines, Elektrosila factory,
    KETM — Kharkov Elektrotyazhmash factory.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |



12. CONTACT INFORMATION


1. COMPANY DETAILS
Full company name:
JSC Sixth Wholesale Power Market Generating Company
Abbreviated company name: JSC “OGK-6”

TIN 6164232756
IEC 616401001
OKOGU industry code 41002
OKPO organization code 76928058
OKVED 40.10.11

Bank details:
Bank name: JSC AKB ROSBANK
Current account 40702810000000017913
Correspondent account 30101810000000000256
RCBIC 044525256

Chief executive officer: Sanko, Valentin Mikhailovich

Head accountant: Dolgoarshinnykh, Bary Zakievich

Location: 344007, Rostov-on-Don, Bolshaya Sadovaya St. 49
Mailing address: 115162, Moscow, Mytnaya St. 21

Website: www.ogk6.ru



2. CONTACTS FOR SHAREHOLDERS AND INVESTORS
Troinikov, Ivan Vladimirovich (Head of the department of shareholder and investor relations)
Tel./Fax: (495) 644-23-65, e-mail: ir@ogk6.ru

For questions related to General Shareholders’ Meetings:
Gusev, Alexei Mikhailovich (Corporate Secretary)
Tel./Fax: (495) 644-23-68, e-mail: agusev@ogk6.ru



3. MEDIA CONTACTS
Filatov, Dmitry Evgenievich (Manager of the Board of Public Relations and Media Affairs)
Tel.: (495) 380-04-40, fax: (495) 380-41-65, e-mail: dfilatov@ogk6.ru

Shcheglov, Ivan Konstantinovich (press secretary)
Tel./Fax: (495) 380-41-65, e-mail: isheglov@ogk6.ru
|   CONTACT INFORMATION
                                                                                                          154 | 155




4. AUDITOR
Full company name: Closed Joint-Stock Company PwC Audit
Abbreviated company name: ZAO PwC Audit
Location: Moscow, Kosmodamianskaya Naberezhnaya, 52, bldg. 5
Tel.: (495) 967-60-00, fax: (495) 967-60-01
e-mail: irina.turchina@ru.pwc.com
www. pwc.ru

Certificate of state registration #008.890 of joint-stock company issued by the Moscow Registration Chamber
February 28, 1992. Certificate of entry in the Unified State Registry of Legal Entities of a legal entity registered
before July 1, 2002, under #1027700148431 dated August 22, 2002, issued by the Interregional Inspectorate of
the Russian Ministry of Taxation, #39 for Moscow.

Audit license: License № E000376
Issued 05.20.2002 by the RF Ministry of Finance
Validity: 5 years



5. REGISTRAR
Information concerning organizations recording the rights of the issuer to equity securities:

Full company name: JSC Central Moscow Depositary
Abbreviated company name: JSC CMD

Location: 107078, Moscow, Orlikov Per., 3, corp. V
Mailing address: 105082, Moscow, B. Pochtovaya St. 34, bldg. 8
Tel.: (495) 221-13-34, 221-13-30, 221-13-33, fax: (495) 221-13-83
e-mail: dr@mcd.ru
www.mcd.ru

License to maintain a registry:
License #10-000-1-00255. Issued 09.13.2002 by the Federal Committee for the Securities Market
Validity: no limitation on validity

Date from which the registry of registered securities of the issuer is maintained by the specified registrar:
07.20.2005.
    ANNUAL REPORT       2007       JSC “OGK-6”
|                   |          |

				
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