OREANDA-NEWS. November 2, 2010. For 9 months of 2010, the total output by the hydropower plants of JSC RusHydro (ticker symbols: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) and its subsidiaries and dependent companies amounted to 55,568.8 million kWh, a 16% decrease against the corresponding period of the previous year.

The following factors are responsible for decreased output by RusHydro's HPPs for 9 months of 2010:

reduced generation by Sayano-Shushenskaya HPP caused by the 2009 technological accident;

operations of Volga-Kama Cascade HPPs in low water conditions in the 2nd and 3rd quarters.

Without regard to Sayano-Shushenskaya HPP, the total output by the hydropower plants of JSC RusHydro and its subsidiaries and dependent companies for 9 months of 2010 amounted to 48,025.6 million kWh, which is 2% lower than the output in the same period of 2009.

RusHydro's facilities are located in areas with different hydrological regimes, affecting water flow into reservoirs.

The annual flow of the rivers in the Far East and Siberia is formed both by spring floods depending on the accumulated snow cover and the melting pattern, and by long-duration summer rain floods comparable in volume with snowmelt floods.

Favorable hydrological situation in the territory has formed in Siberia during 2010. During 9 months of 2010, the afflux into Sayano-Shushenskaya HPP and Novosibirskaya HPP reservoirs was far in excess of the average multi-year values, which enabled increased power generation by Novosibirskaya HPP.

In the Far East a favorable hydrological situation has concurred with high water reserves in HPP reservoirs accumulated by the end of 2009.

In order to provide a free capacity of Zeiskaya and Bureiskaya HPPs reservoirs, required for passage of high discharges in spring and summer, the Company jointly with the Federal Agency for Water Resources (Rosvodoresursy) and the System Operator provided high loads for the above said hydropower plants. Over-the-balance ouptut was provided through additional sales to China and reduced output by thermal generators to ensure safety of hydropower installations.

As a result, output in Siberia and Far East by RusHydro and its subsidiaries and dependent companies for 9 months of 2010, exclusive of Sayano-Shushenskaya HPP, increased by 14%.  Total output in these regions amounted to 19,779 million kWh.

The rivers in Central European Russia are known for abundant spring floods and a long low-water season when the water reserves built up in the high-water period are utilized; short-term rain floods are possible in favorable weather conditions.

There was an unfavorable hydrological situation across European Russia during the first 9 months. The abnormally hot weather in the 3rd quarter resulted in a water influx reduced by 33%, compared to the average annual value. Despite the measures taken to save water resources, the water reserves in the reservoirs of the region are 23% lower than the average multi-year level, which is equal to a loss of 2 to 2.5 billion kWh.

For 9 months of 2010, RusHydro facilities located in central regions of European Russia produced a total of 28,806.3 million kWh, an 11% decrease against the corresponding period of the previous year.

The rivers in Northern Caucasus are mainly fed through melting of glaciers and torrential rains. This diversity helps to make up for adverse hydrological conditions that may occur in different areas.

The hydrological situation in Northern Caucasus and Southern Russia in the first half year was characterized by a high, relatively to average multi-year level, afflux that brought about an 17% increase - up to 6,983.2 million kWh - in output by the facilities located in this region, for 9 months of 2010.