OREANDA-NEWS. January 19, 2010. A regular meeting of of JSC RusHydro's Board of Directors (ticker symbol: HYDR; MICEX, RTS and LSE) was held in absentia on 30 December 2009.

The Board of Directors of JSC RusHydro terminated ahead-of-schedule the authority of the members of the Strategy Committee under the Company's Board of Directors previously elected on 23 July 2009 (Minutes of 24 July 2009 No. 81) and elected the following members of the Strategy Committee:

1.Stanislav Svetlitskiy

Deputy Minister of Energy of the Russian Federation

2.Maria TikhonovaDeputy Director of the Department for Regulation and Property Relations in the Fuel and Energy Complex, the Ministry of Energy of Russia

3.Alexander Yugov

Head of department for organisation of the oil and gas industry and mineral raw materials of the Administration for Infrastructure Branches and Organisations of the Military Industrial Complex under Rosimushchestvo

4.Valentin Mezhevich

Member of the Federation Council of the Federal Assembly of the Russian Federation, Senior Vice-Chairman of the Commission of the Federation Council for Natural Monopolies

5.Vsevolod Gavrilov

Head of Directorate for project management in the sphere of energy saving and environmental management, Sberbank of Russia

6.Sergey Beloborodov

Member of the Board of Directors of JSC RusHydro

7.Eduard Volkov

Member of the Board of Directors of JSC RusHydro

8.Viktor Danilov-Danilyan

Member of the Board of Directors of JSC RusHydro

9.George Rizhinashvili

Deputy Chairman of the Management Board of JSC RusHydro

10.Evgeniy Gorev

Member of the Management Board of JSC RusHydro

Stanislav Svetlitskiy was elected Chairman of the Strategy committee under the Board of Directors of the Company.

The Board of Directors of JSC RusHydro elected the following members of the Reliability Committee under the Board of Directors of the Company:

1.Eduard Volkov

Member of the Board of Directors of JSC RusHydro, Academician of the Russian Academy of Sciences

2.Yuri Sharov

Deputy Chairman of the Management Board of JSC RusHydro

3.Rustem Khamitov

Member of the Board of Directors, Deputy Chairman of the Management Board of JSC RusHydro

4.Sergei Mikhailov

Director of the Department for State Energy Policy and Energy Efficiency under the Ministry of Energy of Russia

5.Boris Bogush

Head of the Business Unit "Production"of JSC RusHydro

6.Semyon Lashchenov

Deputy Chairman of the STC of JSC RusHydro, Cand. Sc. (Tech.)

7.Evgeniy Bellendir

General Director of JSC. B.E.Vedeneyev VNIIG, D.Sc. (Tech.)

8.Vladimir Shcherbina

Director of the Sectoral Information and Diagnostics Centre (OIDTs) of JSC NIIES, Cand. Sc. (Tech.)

9.Yuri Fokin

Professor of Moscow Power Institute (Technical University), D.Sc. (Tech.)

Eduard Volkov was elected Chairman of the Reliability Committee under the Board of Directors of the Company.

The Board of Directors of JSC RusHydro approved the Regulations on organisation of insurance protection of JSC RusHydro (hereinafter referred to as the "Regulations") and adopted a resolution to introduce them into effect from 01 January 2010.

The Regulations determine the key principles and the procedure for organising the insurance protection of JSC RusHydro, as well as the insurance coverage requirements.

The previous Regulations approved by resolution of the Board of Directors of the Company dated 05 June 2007 (Minutes No. 33) expired on 01 January 2010. The accident at the Neporozhny Sayano-Shushenskaya HPP on 17 August 2009, as well as a number of other circumstances, engendered the necessity to review and update a number of the terms and conditions of these Regulations. In this connection, the Management Board of JSC RusHydro prepared, as instructed by the Board of Directors of the Company (Minutes No. 83 dated 09 September 2009), a new standard for insurance of employees and facilities of the Company.

The new version of the Regulations retains such conditions for organising insurance protection of JSC RusHydro as choice of insurer by tender and planning of insurance protection on the basis of the annual Insurance Protection Programme approved by the Board of Directors of the Company.

The amendments to the substantive insurance conditions adopted within the Regulations approved by the Board of Directors of JSC RusHydro take account of retrospective insurance experience and are designed to improve the insurance coverage in all insurance spheres. In particular, the new Regulations establish the requirement for 100% insurance of each type of risk. The document also envisages a 2-5-fold increase in the health and accident insurance sums for all categories of employees. This innovation will make it possible to increase the insurance part of compensation paid to an employee or relatives of a deceased employee to 500,000 roubles.

The substantive conditions for insurance of the liability of hydro-engineering structures owners have changed. The new Regulations determine the amount of the minimum sums of indemnity through introduction of a new algorithm for calculating annual insurance sums. In accordance with this algorithm, the insurance sum shall be established in the amount of the probable damage indicated in the Declaration of Safety for the hydro-engineering structures of JSC RusHydro in the event that the damage indicated in the Declaration does not exceed 300 million roubles. If the scale of the probable damage exceeds 300 million roubles, the insurance sum shall be set at a minimum of 300 million roubles.

The JSC RusHydro's Board of Directors approved the Insurance Protection Programme of JSC RusHydro for 2010.

In accordance with the Regulations on provision of insurance protection for JSC RusHydro, planning and implementation of the insurance protection for the Company shall be based on the Insurance Protection Programme (hereinafter referred to as the "Programme").

The Programme establishes the planned expenditures of JSC RusHydro on insurance in 2010 and determines the conditions for the insurance coverage with respect to the following types of insurance:

property insurance;

 voluntary medical insurance and accident and health insurance;

 mandatory civil liability insurance for motor-vehicles owners and voluntary comprehensive vehicle insurance; voluntary insurance of water transport;

 civil liability insurance of management bodies members;

 civil liability insurance of organisations operating hazardous production facilities and owners of hydro-engineering facilities.

In accordance with the approved Programme, JSC RusHydro plans to spend 583 million roubles on all forms of insurance in 2010, which is 53.7 million roubles less than in 2009.

At the same time, the parameters of the insurance coverage have been improved. For instance, the maximum indemnity under the property insurance for each insurance event, apart from the risk of terrorism, is set at 300,000,000 (three hundred million) US dollars (in the rouble equivalent), but no less than 9,200,000,000 (nine billion, two hundred million) roubles. For the risk of terrorism, the respective sums are 50,000,000 (fifty million) US dollars (in the rouble equivalent), but no less than 1,500,000,000 (one billion, five hundred million) roubles.

The JSC RusHydro's Board of Directors approved engagement of Federal State Unitary Enterprise VO Bezopasnost (FGUP VO Bezopasnost) to carry out comprehensive diagnostics and expert examination of the hydro-electric power plants equipment belonging to the Company.

On 09 September 2009 (Minutes No. 83), the Board of Directors authorised the Management Board of the Company to carry out, in conjunction with Rostekhnadzor and FGUP VO Bezopasnost, an inspection of the technical safety of the Company's current hydro-electric power plants in operation and those under construction, as well as analysis of the technical documentation on operation of existing hydro-electric power plants on the basis of the methods adopted in the nuclear power industry.

According to the results of the joint work carried out by JSC RusHydro, Rostekhnadzor and FGUP VO Bezopasnost, corporate standards (methodological instructions) will be drawn up:

on forming, for each HPP, a list of equipment (including buildings and structures) or groups of equipment of importance for ensuring the technical safety of the facilities;

on criterion scoring of compliance (expert examination) of equipment of importance for ensuring the technical safety of the facilities.

Within the scope of preparation of the standards, a survey of the normative and technical documentation of JSC RusHydro is planned, including by comparing the criteria used in the Company with those adopted for assessing the state of the equipment in the regulatory documents in the nuclear power industry, which is the most advanced in the sphere of ensuring comprehensive safety of technical facilities, as well as analysis of the draft regulatory documents on industrial, fire and environmental safety, and a study of the requirements on criterion scoring of equipment of importance for ensuring the technical safety of the facilities.

In the course of the work, a programme will be developed and implemented for carrying out a technical audit of facilities on the basis of the effective industry and local normative documents, a pilot technical audit of facilities will be carried out, as well as subsequent expert examination and testing of the corporate standard developed within the scope of the pilot project. This will help raise the effectiveness of the existing system for ensuring production safety.

The Board of Directors of JSC RusHydro approved member of the Management Board of the Company David Kuznetsov taking on the additional positions of member of the Board of Directors and head of the Strategic Planning Committee of JSC Pervobank.