OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" received and noted the information regarding the financial model for OAO "Far East Energy Company" ("FEEC"), OAO "Far East Generation Company" ("FEGC"), and OAO "Far East Distribution Company" ("FEDC").

These companies will be established as a result of restructuring of the non-islanded energy systems in the Russian Far East (i.e. OAO "Amurenergo", OAO "Khabarovskenergo", OAO "Dalenergo", and OAO "Yuzhnoe Yakutskenergo" (on the basis of its Southern energy area), which was approved by the Board of Director of RAO "UES of Russia" on 2 September 2005. The restructuring plan for the Russian Far East energy systems provides for a number of concurrent corporate actions.

To date, OAO "Yuzhnoe Yakutskenergo", FEGC, and FEDC have been set up and registered with the authorities. In January 2007, it is planned to consolidate of OAO "Khabarovskenergo", ZAO "LuTEK", OAO "Amurenergo", OAO "Yuzhnoe Yakutskenergo", and OAO "Dalenergo" into a single entity, OAO "FEEC".

The assets of FEEC are to be formed through balance sheet consolidation of the regional energos under reorganization. As a result, their respective liabilities and the undistributed property will be transferred to the newly established company, FEEC. The regional energos will retain the construction in progress and inventories; their accounts payable will be in excess of the accounts receivable.