ANNUAL REPORT 2009OAO IRKUTSKENERGO 11

ANNUAL REPORT 2009 OAO IRKUTSKENERGO

Irkutsk г. Иркутск 2 Abbreviations

ARIS Business process modelling methodology and software MIRBIS Moscow International Higher Business School ASKIB Automated Treasury Based Budget Management and Control System LV Low Voltage BHPP Bratskaya Hydroelectric Power Plant UDCC of Siberia United Dispatch Control Centre BM Balancing Market OREM Wholesale Electric power Market GDP Gross Domestic Product IPSS Incorporated Power System of Siberia HV High Voltage MPE Maximum Permissible Emission GS Guaranteeing Supplier MPD Maximum Permissible Discharge GPB OAO Gazprombank D&E Design and Exploration F&L Fuel and lubricants EIP Efficiency improvement programs HPP hydroelectric power plant RC Regulated long-term contracts for electric power BCPC Bilateral contract for power and capacity UDCC United Dispatch Control Centre AR Accounts Receivable DAM Day-ahead market SAC Subsidiaries and affiliated companies NRBC Non-regulated bilateral contract VMI Voluntary medical insurance NRECC Non-regulated electric power and capacity contracts EBWD Eniseysk Basin Water Directorate ANNUAL REPORT 2009OAO IRKUTSKENERGO 33

MV Medium voltage HUC Housing and utility companies SO UES System Operator of the Unified Energy System ASW ash and slag waste PIS Performance Indicator System EB Executive Board ES Enterprise Standard CSS Commodity stocks and supplies IESK OOO Irkutsk Grid Company CPOP Comprehensive production optimization program CCN Corporate computer network TPP Thermal Power Plant CPS Competitive power supply EF Efficiency Factor MICEX Moscow Interbank Currency Exchange KPI Key Performance Indicators FCSM Federal Commission for Securities Market NPNBP Northern Power Networks Boiler Plant FST Federal Tariff Service IRMS Integrated Risk Management System FEC ZAO Financial Estimation Centre MBA Master of Business Administration EBP Electric Boiler Plant CIP Construction in progress 4 Table of Contents

Abbreviations 2 Table of Contents 4 Address to Shareholders by the Chairman of the Board of Directors, OAO Irkutskenergo 6 Address to Shareholders by the Acting Director General, OAO Irkutskenergo 8 OAO Irkutskenergo general profile 10 Geographic distribution of assets 12 IRKUTSKENERGO today 13 Performance highlights 14 OAO Irkutskenergo profile 18 HPP - GENERATION 18 TPP - GENERATION 20 OAO Irkutskenergo – one of the major energy systems in Russia 19 The Board of Directors decisions and shareholders meetings252 26 Principal Operational Results 32 Energy Industry Progress in Irkutsk Oblast 33 Company Management 34 Corporate Management 35 Property Management 39 Shareholders’ Equity 42 Equity and shareholding structure 43 Markets and sales management 46 The core marketable product issuing structure 47 Heat power sales 48 Electric power sales 51 ТTariff policy up to date of AO O Irkutskenergo 2009 Report 54 Production 58 Generating Capacity Information 59 Production plan 60 Cost Control 63 Efficiency improvement programs 64 Procurement 66 ANNUAL REPORT 2009OAO IRKUTSKENERGO 55

Spares and consumables 67 Fuel 68 Services 70 Investments 72 Effective investment fund allocations under programs 73 Investments under programs 74 allocated investments 77 Human resources and social policy 78 Personnel management 79 Investments into personnel 81 Social policy 82 Subsidiaries and affiliated companies activities 84 Environmental relations 86 Standardization and Streamlining of Business Processes 90 Legal Issues 92 Risk Management 94 Information Technology 96 Financial and economic activities 98 Credit portfolio analysis 104 Net Profit Allocation 107 Appendices 108 Appendix 1. OAO Irkutskenergo balance sheet as of 31 December 2009 109 Appendix 2. Profit and loss statement of AO O Irkutskenergo, 2009 112 Appendix 3. audit Report 113 Appendix 4. Compliance with the Corporate Conduct Code 114 Appendix 5. Meetings of OAO Irkutskenergo Management Board 124 Appendix 6. Related party transactions approved by the Management of OAO Irkutskenergo, 2009 138 6 Address to Shareholders by the Acting Director General, OAO Irkutskenergo

Dear Shareholders,

The year of 2009 was a time for the country to make tough economic decisions and undertake structural reforms in key industries, including the energy industry. On the one hand, there has been a decrease in production levels of heating and electric power due to a general decline in industrial production in Russia and the forced freeze of key investment projects; on the other hand, there is growing attention towards the reliable and accident-free work of the energy networks. The Company pays close attention to the condition of facilities and equipment; to date, both our health check and our safety controls have been significantly reinforced. However, the reporting year became an ordeal of endurance throughout the energy industry. At the same time, this was a year of gradual economic ‘thawing’ and system-wide resolutions in the security of national energy supply: as soon as the post-crisis economy started to recover, the power system load increased, the financial position of energy companies stabilized, and we found ourselves again talking about growth prospects. For instance, the earnings of Irkutskenergo in 2009 increased by 20% year-on-year to make RUB 38.8 billion. The growth of actual earnings against the forecast amounted to 10.4%, thanks to

an efficient supply of capacities at the exchange. Electric energy generation had reached about 56.8 billion kWh by the end of rkutskenergo the year. It is expected to reach about 59 billion kWh in 2010, which will be more than in 2009 but less than in 2008. The sales

of heat power in 2009 made RUB 9.7 million, which is a 16.9% increase year-on-year. The heat power supply by the end of the , OAO I year amounted to 22.7 million Gcal; it is planned to bring it up to 22.9 million Gcal in 2010. In addition, after thoroughly revising

its methods of cost minimization and improvements to energy network reliability in 2009, Irkutskenergo currently has great eneral potential for the further progress of previously undertaken projects and for the diversification of its business and operations. G The reporting year was accompanied by the creation of a new and ambitious brand in a national economy, energy and coal

company Irkutskenergo. A strategy for OJSC Irkutskenergo to acquire the 100% equity share of CJSC Resourceserviceholding, irector which owns some key coal assets in Irkutsk Oblast, was adopted by the Board of Directors on 6th February 2009; the Board also D prepared a plan to form a consolidated institutional and management structure, and identified objectives to achieve synergy cting

in the financing and operating activities of energy producers and coal mining companies. We believe that the creation of a A

vertically integrated energy and coal company is a timely and necessary step on the path towards reinforcing the positions of the y b

the infrastructure industry in terms of energy security for the entire region. This means both an optimal logistical solution and efficient coordination of investment programs for Irkutskenergo, and translates into a reasonable tariff policy for consumers. Today, the Company is capable of enduring any falls or increases in coal prices, as in 2007 and 2008, with minimum losses, and the coal mining operations can be scheduled in an optimal manner, which will additionally minimize primary costs. A prime example of harmonious cooperation between energy companies and coal miners is the situation in Baykalsk city, where difficult hareholders

economic circumstances were encountered. Over the reporting year, Irkutskenergo fulfilled all commitments in preparing S to the single-company city for the timely beginning of the heating season; administrative and technical measures have been implemented pursuant to the Instruction by the Government of the Russian Federation

and the order by the Board of Directors of OJSC Irkutskenergo. ddress A ANNUAL REPORT 2009OAO IRKUTSKENERGO 77

The Company managed to get a head start: by the time Power Engineer’s Day had come around and, symbolically, in the year of its 55th anniversary, OJSC Irkutskenergo commissioned a modular-assembly gas-powered boiler plant in Bratsk. The implementation of this local project will allow the Company to save electric power and reduce heat power generation costs. This project has a continuation, a construction of a mini-CCHP, which will totally replace an inefficient electric boiler house in the Gidrostroitel Township (Bratsk city). Through the control of hydraulic resources and the ownership of coal and gas facilities, the Company will easily overcome any twists and turns and clearly formulate its economic policy, which will further increase its efficiency. The overall volume of the investment program in 2009 amounted to RUB 2.1 billion. Historically, the Company has been implementing and improving social programs under its collective agreement, ensuring safe working conditions at its premises, organizing recreational activities and improving the health of employees. In 2009, 464 people stayed in health resorts for a total amount of RUB 5.4 million under the VMI Program. According to the current Provision for Providing Recreation Benefits to Employees, Their Families, and Retirees, 2,929 people (including 741 children) were provided with pre-paid vouchers for Russian health resorts. The Company spent RUB 23.6 million of its earnings to pay rkutskenergo for this program. Also, in accordance with the current Housing for New Employees program, 30 apartments were purchased in the secondary housing market in 2009 for the total amount of RUB 27 million, and 88 young specialists were provided with

, OAO I rented apartments. The Company pays particular attention to employee training and development. The entire scope of training amounted to 4,248 training units delivered to 2,785 employees; the cost of training amounted to RUB 43.558 million.

eneral In conclusion I would like to remark that, although Irkutskenergo celebrated its 55th anniversary in the reporting year and G reached an age of maturity and wisdom, enhanced by experience accumulated over the years, its great potential is only just beginning to fully develop. Fast, dynamic development of the Company lies ahead, to the benefit of the residents of Eastern

irector Siberia, along with the reinforcement of its position as the acknowledged leader of the Russian energy industry. D Stanislav Svetlitsky cting

A Chairman of the Board of Directors

the OAO Irkutskenergo y b hareholders S to ddress A 8 Address to Shareholders by the Acting Chairman of the Board of Directors, OJSC Irkutskenergo

Dear Shareholders, The year 2009 was anything but easy and straightforward for any of us: working under the conditions of the financial and economic crisis; the gradual change from the crisis mentality; the necessary abandonment of some investment projects; and, at the same time, the establishment of the largest power-generating and coal-producing company in Russia on the basis of Irkutskenergo and Vostsibugol companies. There was also a serious lesson to be learned by the entire industry from the Sayano- Shushenskaya power station tragedy in August. This major accident once again bore witness to the simple truth that ”a small leak can sink a great ship” in the energy industry. That is why the stations belonging to our Company have been subject to a

wide range of inspections by Rostekhnadzor and other regulatory authorities. No major concerns were raised, but in view of the rkutskenergo inspection results, we have put together an additional investment plan towards reliability of the hydroelectric power stations. It would be fair to say that our operational, financial and economical performance indicators for 2009 were positive, despite the crisis developments in the country’s economy. Net profit increased to Rub 3.59 billion (+17%), including savings of about Rub , OJSC I 1.5 billion resulting from the implementation of a program to reduce management costs and expenses. The positive dynamics of the financial indicators are due, in particular, to the Company’s successful operations on the deregulated electrical energy

market. Irkutskenergo’s current financial situation remains stable. The Company is restructuring its credit portfolio with a view irectors to reduce interest rates and increase credit longevity; it is listing issues of commercial papers to account for any market situation. D of In addition, in 2009 Irkutskenergo signed mutually beneficial long-term contracts with two major UC Rusal plants – Bratsk and Irkutsk – for a term of 8-10 yrs (the longest contract term between the power producers and plants has never before been longer than one year). This will give the Company added financial and economic stability. oard Under the crisis conditions we aimed to enhance the reliability of supplies to our users, at the same time increasing our own B the efficiency. The 2009 maintenance program cost more than Rub 4.1 billion. Overall, repair work was carried out this year on of 6 hydraulic units, 27 turbine generators, 58 boiler units and 2 water-heating boiler units, in addition to repairs to heating networks, and other operations. The Company’s first facility validation under the Kyoto Protocol was also completed. The Bratskaya HPP project to increase the efficiency of water resources is the first and so far the only successful Kyoto project in Russia to upgrade a major hydroelectric power station. A project began at the Bratskaya HPP in 2006 to replace six hydraulic hairman

units’ runners with more efficient ones; to date, five of them have already been installed, and the work is scheduled to be C completed by July 2010. Furthermore, the regional gas supply system was revised and updated under the General Scheme for

Gas Supply to and Gasification of the Irkutsk Oblast, comprising Irkutskenergo’s projects to create gas-fueled power generation cting

facilities. Having completed HP gas pipeline connecting the Bratsk gas condensate field with the gas distribution station in the A

Pravoberezhny district of Bratsk, on 21 December 2009 OJSC Irkutskenergo launched a modular gas boiler plant (BMK-5), which the y

effectively became a pilot project for future development by the Company in the gas sector. b This last year was also marked by serious structural changes. Thus, on 15 October 2009 a deal was concluded on the purchase of CJSC Resourceserviceholding, comprising LLC Vostsibugol, LLC Kasianovskaya Obogatitelnaya Fabrika, LLC Rudoremontny Zavod, OJSC Razrez Tulunsky and LLC Svirsky Rudoremontny Zavod within the framework of the Company’s strategy, which had been announced earlier, on the establishment of the Company's own coal station. This date marked the start of asset consolidation and the establishment of the companies’ unified management structure. Irkutskenergo estimates that in the medium- hareholders

term the synergy effects of the energy and coal business merger will amount to around RUB 6 billion. This merger S to

will result in the provision of over 80% own fuel for the new energy and coal company. Our strategic goal is total fuel independence for Irkutskenergo, including transport independence, and for this purpose plans have been made to acquire a car fleet. The restructuring ddress A Address to Shareholders by the Acting Chairman of the Board of Directors, OJSC Irkutskenergo ANNUAL REPORT 2009OAO IRKUTSKENERGO 99

of Energosbyt was also completed, which involved passing the sales to consumers of heating and electric energy over to LLC Irkutskaya Energosbytovaya Kompaniya. Irkutskenergo is planning a considerable increase in investments for 2010. This is because project implementation is recommencing after having been frozen due to the crisis in 2008-2009. This involves continuing implementation of a major Maly Yug project which envisages optimization and development of the heating supply to the cities of Irkutsk and Angarsk; the design of a new gas-fuelled 1,200 MW TPP in the Ust-Kut district of Irkutsk Oblast, which will allow for the provision of efficient utilization of associated gas from the northern fields of the Oblast; an increase in investment in the HPP reliability following the accident at the Sayano-Shushenskaya power station; and construction of a gas-fuelled boiler plant in Bratsk and elsewhere.

rkutskenergo The Company traditionally envisages considerable investment in its personnel development, training and motivation, in view of the fact that the first and utmost reliability of any energy system lies with its people. For 55 years we have been the guardians of energy safety for the major region of the country, and for 55 years we have been enjoying the trust and respect of our clients. , OJSC I Their trust is our Company’s major resource, which we treasure and strive to enhance. Evgeniy Novikov

irectors Acting Chairman of the Board of Directors D OAO Irkutskenergo of

oard B the

of

hairman C cting A the y b

hareholders S to

ddress A 10

OAO IRKUTSKENERGO GENERAL PROFILE ANNUAL REPORT 2009OAO IRKUTSKENERGO 1111

ОбщиеOAO Irkutskenergo сведения is a joint-stock company established under RF Presidential Edict No. 721 «On Organizational Measures to Transform State Enterprises and Voluntary Associations Thereof Into Joint Stock Companies,» dated 1 July 1992.

Full Name Irkutsk Open Joint-Stock Company of Energy and Electrification Abbreviated Name OAO Irkutskenergo Registration Number with the Consolidated State 1023801003313 Register of Legal Entities Registration Date 12 July 2002 General Director S. V. Emdin Chief Accountant G. Tolstykh Registered Office/Postal Address 3 Sukhe-Batora st., Irkutsk 664025, Irkutsk Region, Russian Federation Regional Committee for Public Statistics 39 Chkalova st., Irkutsk 664025, Irkutsk Region, Russian Federation

ОсновныеThe Company’s core виды operations деятельности as set out in its Charter are as follows:

— generation of electric and heating power for sales to consumers; — operation, installation supervision, installation, adjustment, technical upgrading and modernization of electric power and heating facilities and equipment; — research, design and development, construction and use of new equipment and technologies; — energy delivery services; — operation of heating networks; — foreign trade; — operation and maintenance of facilities under the authority of Rostekhnadzor. OAO IRKUTSKENERGO GENERAL PROFILE 12 GEOGRAPHIC DISTRIBUTION OF ASSETS OF OAO IRKUTSKENERGO

OAO Irkutskenergo incorporates the following: Y 3 HPP HPP Installed electric capacity - 9,000.2 MW annual electric power generation – over 45,000 million kWh TPP Heating networks 9 TPP Installed electric capacity - 3,877.5 MW Power grids Heating capacity – approximately 13.4 thousand Gcal/hr Heating output - over 25.4 million Gcal Coal mines Total range of heating networks – over 1,700 km. Divested to OOO IESK in 2007: IRKUTSKENERGO TODA IRKUTSKENERGO 5 electric network subsidiaries Total range of network – over 35,000 km. COAL MINING ASSETS Total operating capacity – 14 million tonnes per annum

Subsidiaries and affiliated companies: Including coal mining, sales, maintenance etc. Principal indicators, 2009* Electric power generation – 56,797 million kWh Heating power sales – 25,807 thousand Gcal Network sales revenue – RUB 38,839 million Gross profit – RUB 7,126 million ANNUAL REPORT 2009 OAO IRKUTSKENERGO 1313

IRKUTSKENERGO TODAY The installed capacity of Irkutskenergo today amounts to around 13 thousand MW, and heating capacity – over 13 Gcal/hr. Irkutskenergo's operational capacity and production volume allows for the annual production of more than 70 billion kWh electric power and over 40 million Gcal heat power. Electric power generation at the end of the year reached about 56.8 billion kWh. The Company is expected to produce about 59 billion kWh in 2010, which will be more than in 2009 but less than in 2008. The sales of heat power in 2009 made RUB 9.7 million, which is a 16.9% increase year-on-year. The heat power supply by the end of the year amounted to 22.7 million Gcal; it is planned to bring it up to 22.9 million Gcal in 2010. In addition, after thoroughly revising its methods of cost minimization and improvements to energy network reliability in 2009, Irkutskenergo currently has great potential for the further progress of previously undertaken projects and for the diversification of its business and operations. The Company’s operating, economic, and financial performance promotes it to the leading position in the changing energy sector and the growing electric power market. The business of the Company is based on HPP generation. The Angara HPP Cascade, incorporating the Bratskaya, Irkutskaya and Ust-Ilimskaya Hydro Power Plants – some of the largest in Russia – accounts for about 80% of power production. A significantA ngara grade features uniqueness of the Angara HPP Cascade, creating around 250m water head, a steady flow and high water volume, ensuring stable and efficient electric power generation. The hydro energy generation potential of Angara is estimated at an average of around 90 billion kWh per year. Irkutskenergo owns 12 combined heat and power plants in Irkutsk, Angarsk, Bratsk, Ust-Ilimsk, Usolie-Sibirskoye, Sayansk, Cheremkhovo, Shelekhov and Zheleznogorsk-Ilimsky. These combined heat and power plants account for about 4,000 MW, or approximately 30%, of the Company’s electric power generation capacity. The principal target is combined electric and heat power generation and transmitting heat energy by steam and hot water. CHPP are fuelled by cheap coal procured from open-cut mines in Eastern Siberia. The year 2009 witnessed the actual transformation of Irkutskenergo from a power-generating company into a power- generating and coal-producing company with the merger of OOO Vostsibugol and OAO Irkutskenergo. This merger was caused by the need to create an own coal resource for CHPP in view of the growing coal consumption; this is a considerable step towards safeguarding against volatile coal prices. The Novo-Irkutskaya, Novo-Ziminskaya and Ust-Ilimskaya CHPP incorporate a heat network with a total range of 1,700 km. Irkutskenergo is the country’s leader in the field of technical progress: • it was the first company to initiate the emergency shutdown system at the Bratskaya HPP in order to provide reliable operations of the Incorporated Power System of Siberia; • it was amongst the first companies to commission an Integrated Control System; • it was the first company in Russia to implement new communication systems such as the trunked network, ATM network, and digital exchange stations for the dispatch and operational control of the power system; • it was the second company in Russia to implement fiber optic communication cables.

The Irkutskenergo structure incorporates 13 subsidiaries, including 3 HPP and 9 CHPP. Non-core operations were divested into subsidiaries and affiliated companies in order to cut costs. OAO IRKUTSKENERGO GENERAL PROFILE 14

PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009OAO IRKUTSKENERGO 1515

The following activities took place as part of the projected targets implementation: 1. Establishment of a power-generating and coal-producing company A purchase deal was concluded on ZAO Resourceserviceholding, comprising OOO Vostsibugol Company, the main coal supplier for OAO Irkutskenergo. The Board of Directors 3 July 2009 approved the funding scheme for the deal, providing for the sufficient liquidity rate thus allowing for further financing of AO O Irkutskenergo strategic planning on generating capacity development. The deal will enable Irkutskenergo to build an efficient vertically integrated company, resulting in considerable reductions of future fuel costs and will give OAO Irkutskenergo competitive advantages on the electric power market. An opportunity to control and coordinate further coal mining development together with building new generating facilities in Irkutsk Oblast is another important result of a merge with a coal-producing company. This allows for coordinated development of the coal mining and power generating industries of the region. In Q4 2009 a new organizational scheme was developed within the framework of cooperation optimization between OAO Irkutskenergo and OOO Vostsibugol, involving combining of executive directorates and establishment of a unified management vertical scheme; also coal producing facilities’ development projects were prepared and evaluated. 2. Regional program for gas generation The General Scheme for gas supply to and gasification of the Irkutsk Oblast was revised and amended in 2009. AO O Irkutskenergo was an active participant in the scheme, having put forward a number of suggestions on volumes and facilities of gas supply to its perspective generating facilities in Ust-Kut area and in Irkutsk. These suggestions have been agreed with OAO Gazprom, the developer of the General Scheme for Gas Industry. These suggestions were incorporated into the revised scheme. The updated General Scheme was approved in Q4, 2009. Additionally, a decision to build a distribution Gidrostroitel pipeline in the Bratsk district was adopted by OAO Gazprom following a strong negotiation position by Irkutskenergo. This work is to become part of the Pravoberezhny district heat distribution system transfer to gas-powered heat generation facilities aiming at changing over some of the heating load of the Gidrostroitel electric boiler plant in Bratsk to a gas-powered modular boiler plant that was built by OAO Irkutskenergo in Q4, 2009. Installation Testing and Commissioning was carried out in December and all the approvals for BMK commissioning have been received. The gas pipeline commissioning and BMK launch is anticipated for February 2010. PERFORMANCE HIGHLIGHTS 16

3. Heating supply of Baykalsk city. Due to freezing of the core production of OAO BCBK (bleached pulp manufacturing) in 2009, a scheme was developed to provide heat supply to Baykalsk city from OAO Irkutskenergo heat generation facilities. An electric boiler plant projected for construction by Irkutskenergo in 2010 was anticipated for heat supply commencement in September 2010. All the actions necessary for continuous operation of CHPP BCBK in the 2009-2010 heating season were delegated to Irkutskenergo by the Irkutsk Oblast Administration. The preparatory work for the heating season and CHPP OAO BCBK operational launching were directly coordinated by Irkutskenergo. The required volumes of coal delivery by OOO Vostsibugol Company were also arranged. The involvement of maintenance companies incorporated into OAO Irkutskenergo holding, allowed to carry out maintenance works, and to purchase both raw materials and consumables. All the above ensured timely preparation of CHPP OAO BCBK for the autumn and winter season. Following the request of the Irkutsk Oblast Administration, heat energy tariff calculation scheme was developed, preventing from four-fold increase of tariff rates for Baykalsk population due to considerable reduction of heat energy generation at CHPP OAO BCBK due to freezing of its core operations. The current heat energy tariff for Baykalsk population does not exceed the rate set by the tariff authorities for AO O Irkutskenergo. However, the Irkutsk Oblast Administration in Q4 2009 adopted a decision on recommencement of the core OAO BCBK operations; in January 2010 by the RF Governmental decree the legislative changes were made, allowing OAO BCBK’s open-cycle operations on bleached pulp production. The expected heat energy generation at CHPP OAO BCBK will once again become profitable. Thus, the electric boiler plant construction for Baykalsk heat supply is currently suspended till further decision on financing and the schedule of works at OAO BCBK. 4. Commissioning of upgraded facility at Novo-Ziminskaya CHPP The upgrade was carried out on turbine unit in Station 2 Novo-Ziminskaya TPP aiming at generating capacity increase by 20 MW. At present the turbine unit testing and documentation processing for its re-certification are being carried out. Upon completion of the above as well as lifting of restrictions on the station’s steam cooling cycle, it is expected to supply the added capacity to the energy market. 5. Consolidation of energy distributing companies The restructuring of Irkutskenergo’s subsidiary Energosbyt was also completed, involving passing the sale to consumers of heating energy as well as water supply and discharge over to OOO Irkutskenergosbyt. This will allow for unification of the staff consumer service policy, thus optimizing the number of staff and cutting administrative costs. These measures are targeted at the Company’s efficiency and stability increase under the crisis conditions. PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009OAO IRKUTSKENERGO 1717

6. Consolidation of the maintenance subsidiaries and affiliated companies Two-staged modernization of the maintenance companies incorporated into OAO Irkutskenergo - ZAO SER and OOO Tsentralizovannaya Energoremontnaya Firma, was carried out in 2009. The first stage involved allocation of personnel for the equipment maintenance and its transfer to OAO Irkutskenergo’s stations. The second stage consolidated the maintenance subsidiaries and affiliated companies into one company by transferring the personnel from one company into another. The combined subsidiary was established on the basis of ZAO SER. 7. Cutting greenhouse gas emissions into atmosphere and subsequent sales of the unused carbon credits under the Kyoto Protocol. The external expert approval has been obtained for OAO Irkutskenergo project on replacement of Bratskaya HPPs runners. The buyer for the emission reduction units (ERU) resulted from the project has been selected; a contract negotiation on ERU is currently in progress. Preparation for the project participation in Sberbank RF bid is also being carried out. PERFORMANCE HIGHLIGHTS 18 OAO IRKUTSKENERGO PROFILE

HPP - GENERATION Power generated by the Angara HPP Cascade became the cornerstone of the industrial development in the region. Irkutsk HPP was the first stage of the cascade. Construction of the Irkutsk Hydro Power Station, the first-born of the Industrial Angara, was commenced in 1950. For the first time in the Soviet history a sand-and-gravel dam, giant by the standards of the day, was erected under the harsh climatic and seismic conditions. The first two hydroelectric power units were load-started in December 1956. The station gained its design capacity of 662.4 MW in September 1958; all the 8 82.8 MW hydro power units were put into operation. On 24 October 1959 the station was commissioned for commercial operation. The average annual design electric power generation – 4.1 billion kWh. Bratskaya HPP is the second stage of the Angara cascade. The Government Decree on construction of the second hydroelectric power station at Angara was issued in September 1954. Bratskaya HPP was erected under extremely complicated natural and geographic conditions and in its design, efficiency, its parameters, capacity and quality of work is a unique facility, unparalleled in the international hydro power station construction practice. For the first time ever a high slotted-gravity concrete dam was built under such conditions. All the works were carried out around the clock, despite harsh Siberian winter temperatures. PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009 OAO IRKUTSKENERGO 1919 OAO IRKUTSKENERGO - ONE OF THE MAJOR ENERGY SYSTEMS IN RUSSIA PERFORMANCE HIGHLIGHTS

Comparative profiles of OES Sibiri and OAO Irkutskenergo: OES Sibiri OAO Irkutskenergo

Installed capacity of electric power generating stations 45 GW 13 GW (28%) Electric power generation 200 billion kW/hr 60 billion kW/hr (30%) Per Capita Generation 9 thousand kW/hr 23 thousand kW/hr HPP’s part in the capacity structure 50% 80% FEGC - (Far East Generating Company) average electric power tariff (2007) RUB 0.6614 per kW/hr RUB 0.3247 per kW/hr TGC - (Territorial Generating Company) 20

On 28 November 1961, the first unit of Bratskaya HPP was connected to the power generating system and was put under operational load. On 19 December 1966 the last, 18th unit was put into operation; the Bratskaya HPP’s capacity reached 4,100 MW. The modernization of 16 units that included rewinding of generators, carried out by the HPP personnel from July 1972 to September 1978 to September 1978, each generator’s capacity was increased from 225 to 250 MW (two hydro generators were retagged by the manufacturer). The installed capacity of Bratskaya HPP has reached 4,500 MW. The average annual design electric power generation – 22.5 billion kWh. Ust-Ilimskaya HPP is the third stage of the cascade. The Council of Ministers of the USSR has approved a project specification for HPP construction in 1966. The principal operations on HPP construction started in 1968; the first concrete was put into the dam. On 28 December 1974 the first unit was load-started, on 31 December - the second and the third units with the capacity of 240 MW each. On 31 March 1979 16th hydro generator unit was put into operation, the Bratskaya HPP’s capacity reached 3840 MW. Such rate of energetic facilities commissioning is unheard of in the international hydro power station construction practice Ust-Ilimskaya HPP’s technical and economical indicators allow it to take one of the leading positions amongst the most efficient hydro power stations in the country. The present- day third operating stage of the Angara HPP Cascade is a unique set of facilities, representing the best technical achievements of local and international hydro power engineering. The construction of Ust-Ilimskaya HPP in addition to increasing the Bratsko-Ilimsky regional industrial complex electrical capacity twofold, but also allowed to create a new industrial unit in the area, specializing in the forestry and timber processing industry. The average annual design electric power generation is 21.7 billion kWh.

TPP - GENERATION Facility No1 CHPP-9 (CHPP-1) This is the first major thermal electro generating station of the Irkutsk power generating system. The installed electric capacity – 185 MW, heat - 1286 Gcal/hr. This heat and power plant started the major power generating industry in Priangarie. The first turbine was put into operation on 5 November 1951; the project load was reached by CHPP in 1955, which made it the largest and the most modern station in the area from the Urals to the Far East. CHPP-1 powered the construction of the Irkutsk Hydro Power Station; it became a «talent foundry» for the whole of the energy generating system. The main users of the heat energy are the Angarsk oil-chemical company and Angarsk city heating load. The station was the first to offer associated produce such as ash for the construction panel manufacturing. In 2005 it became part of CHPP-9. ANNUAL REPORT 2009 OAO IRKUTSKENERGO 2121

Shelekhov N_I CHPP (CHPP-5) It was designed as a subordinate combined heat and power plant for the Irkutsk Aluminum Smelter. CHPP was also to supply heat and electric power to the adjacent workmen’s settlement Shelekhov which grew into a large modern city. In March 1960 it became part of Regional Electric power Board Irkutskenergo. The station was commissioned in November 1960 and became fully operational in 1962. The installed electric capacity – 18 MW, heat - 347 Gcal/hr. It became part of N-I CHPP in 2005. CHPP-6 It provides het supply for Bratsk timber processing complex and the central sector of Bratsk. The installed electric capacity – 270 MW, heat - 1529 Gcal/hr. The first boiler was put into operation in December 1964. In 1965 it became part Irkutskenergo. The unique coal storage facility with the capacity of 350 thousand tones installed at the fenced-off area with a concrete retaining wall has no parallels amongst Russian heating generation facilities. The core technological process is being continuously modernized. A new system of feeding coal dust to boilers has been installed. Turbine 4, earlier deemed for mothballing, was rebuilt aiming at increasing the range of steam parameters offered to clients. Heat sources and heat networks Facility CHPP-6 (CHPP-7) The principal heat supplier to settlements Padun, Gidrostroitel, Energetic of Bratsk city. It was commissioned in October 1961. The installed electric capacity – 12 MW, heat - 460 Gcal/hr. This is one of the most environmentally friendly heating suppliers in the region. Electrical filters have been rebuilt at the station, having increased its efficiency to 99.8%. This is the best indicator within the power generating industry. It is part of CHPP-6 since 2006. CHPP-9 Supplies heat to about half of Angarsk city users and the industrial site of the Angarsk oil-chemical company. The installed electric capacity – 475 MW, heat - 2457 Gcal/hr. This is the largest heat capacity in the energy generating system. Its construction started in July 1958 as part of Angarsk Oil Processing Plant; it joined Irkutskenergo in 1959. The station was amongst the first twenty Russian heat and power plants to carry out low-temperature stress-relieving of boiler drums, which increased the economic life of metal parts by 50,000 hrs. CHPP-10 It was created for power supply to the Irkutsk-Cheremkhovsk industrial area, first of all the giant of the industrial power generation – Angarsk Chemical Electrolysis Plant. The project of the station was the first to incorporate the modular construction method with direct-flow boilers that was a significant step forward for domestic power generation industry. The speed of construction was unprecedented. Only 5 years from the issue date of the Governmental Decree on the station construction, 22

it took its place amongst the fully operational stations. 19 September 1959 the first turbine unit was put into operation. In April 1962 the largest CHPP in the Eastern Siberia reached its full project load. The installed electric capacity – 1,110 MW, heat - 563 Gcal/hr. CHPP-11 It generates heat and electric energy for the industrial facilities and private sector of Usolie-Sibirskoye town. The installed electric capacity – 350 MW, heat - 1285 Gcal/hr. The CHPP’s construction was commenced in 1954; it was designed as a power supply unit of the Usolsk Chemical Works. It was incorporated into Irkutskenergo in January 1959; the first turbine unit was put into operation 30 December of the same year. The present-day CHPP-11 is one of the major electric power stations of the Irkutsk energy generating system; it carries out scheduled modernization of the main equipment in order to maintain its good technical condition. The wheel channels of turbines 4 and 6 are undergoing modernization aiming at increasing their heat and electric capacity. For the first time in Russia the station turbine Generator 4 has been replaced by a new unique one with natural air cooling. Development of informational technologies is ongoing together with implementation of modern operational methods. CHPP-12 It is one of the oldest power stations in the region. It was built in 1932 for the needs of the Cheremkhovskaya Coal Mine aiming at coal production increase. After the Second World War the power station had mobile energy trains with the overall capacity up to 12 MW. In 1963 it was consolidated with Irkutskenergo. Before 2004 it had uniquely incorporated both heat network and power grid of the town. The installed electric capacity – 7.5 MW, heat - 223 Gcal/hr. CHPP-16 The only heating supplier for Zheleznogorsk-Ilimsky city and the Korshunovsky mining and processing complex. The first heat delivery started in October 1964. It was incorporated into Irkutskenergo in 1965. The installed electric capacity – about 18 MW, heat - 249 Gcal/hr. Novo-Irkutskaya CHPP It provides centralized heat supply for the regional centre. The installed electric capacity – 655 MW, heat - 1850 Gcal/ hr. This station was launched in December 1975; it has the most modern equipment, constantly modernizing its technological base, implementing new methods and modern-day management facilities. Pilot models of boiler unit with the steam generating capacity of 500 tonnes/hour and a 175 MW turbine were launched in 1984; a unique in the international boiler construction practice E-820 drum boiler unit with a ring-type T-furnace was commissioned in 2003. An automated fuel supply complex UZR 1000/1000, launched in December 2008, allows for automated stockpiling, balanced mixing and conveyer feed of coal from the stockpile to boiler hoppers. ANNUAL REPORT 2009 OAO IRKUTSKENERGO 2323

CHPP incorporates former Irkutsk heat network and Shelekhovsky facility, former CHPP-5, into its heating network district. Ust-Ilimskaya CHPP It is one of the largest heat power stations of Irkutskenergo. Ust-Ilimsk Timber Production Complex and Ust-Ilimsk town are the principal energy consumers. The installed electric capacity – 525 MW, heat - 1340 Gcal/hr. The station was launched in December 1978 as the Ust-Ilimsk Pulp Production Plant’s facility and was incorporated into Irkutskenergo straight away. One of the boiler units – Unit 6 with a swirling-type furnace, burning coal without grinding, is the most efficient boiler; first of this type installed in Russia. CHPP has heat network with the total extension of 176 km, which supplies Ust-Ilimsk with heating. Novo-Ziminskaya CHPP It supports operations of the chemical industry facilities of Sayanskhimprom, together with housing and utility facilities of Sayansk and Zima cities. The installed electric capacity – 240 MW, heat - 833 Gcal/hr. Its construction was commenced in 1972; it was designed as a unit of Sayanskhimprom. The first boiler was commissioned in November 1980; the first turbine unit – in March 1981. Two more turbine 80 MW turbine units were commissioned from 1981 to 1983 together with three boilers with steam generating capacity of 420 tonnes/hour. It was incorporated into Irkutskenergo in 1985. Modernization is being carried out on Turbine Unit 2 aiming at its generating capacity increase by 20 MW CHPP-6, 9, 11, 12, 16, Novo-Irkutskaya, Novo-Ziminskaya and Ust-Ilimskaya CHPPs incorporate a heat network with the total extension of 1.7 thousand km. 24 ANNUAL REPORT 2009 OAO IRKUTSKENERGO 2525 26 THE BOARD OF DIRECTORS DECISIONS AND SHAREHOLDERS MEETINGS

Meeting of OAO Irkutskenergo Board of Directors on 6 February 2009 (minutes No 29(182)), resulted in a decision on formulation and approval of 2009 credit policy of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo). Meeting of OAO Irkutskenergo Board of Directors on 3 March 2009 (minutes No 30(183)), resulted in the following decisions: 1. Amendments to 2009 credit policy of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) 2. Amendments to the agenda of the General Annual Meeting of OAO Irkutskenergo Shareholders with the following issues raised by OAO Irkutskenergo shareholders: approval of the Annual Report of OAO Irkutskenergo; approval of annual financial statements, including the Profit and Loss Statement (profit and loss accounts) of OAO Irkutskenergo; distribution of profit based on OAO Irkutskenergo’s performance in FY2008; approval of the amount, time periods and forms of payment of annual dividends on OAO Irkutskenergo shares based on performance figures in FY2008; Election of members to the Board of Directors of OAO Irkutskenergo; approval of the auditors of OAO Irkutskenergo. Meeting of OAO Irkutskenergo Board of Directors on 8 April 2009 (minutes No 31(184)), resulted in a decision on approval of a credit line with Gazprombank (OAO). Meeting of OAO Irkutskenergo Board of Directors on 29 April 2009 г. (minutes No 32(185)), resulted in the following decisions: approval of the General Director and the Board of Directors’ Report of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2008. Preliminary approval of the following documents, submitted for approval by the Annual General Meeting of Shareholders of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo): Annual Report of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2008, annual financial statements and the Profit and Loss Statement (profit and loss accounts) of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) based on performance figures in 2008. Approval and delivery for approval by the Annual General Meeting of the Shareholders of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) of new draft PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009OAO IRKUTSKENERGO 2727

charter of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo), of the Regulations on the General Meeting of Shareholders of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo), of the Regulations on the Board of Directors of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo), and of the Regulations on the Management Board of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo). approval of the agenda of the Annual General Meeting and the list of information (materials) to be submitted to the shareholders in the course of preparatory work for the Annual General Meeting of the Shareholders of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) Meeting of OAO Irkutskenergo Board of Directors on 14 May - 15 June 2009 (minutes No 33(186)), resolved the following: Terminate as of 15 May 2009 the authority of General Director of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) Andrey Konovalov due to voluntary termination of employment agreement as of 17 May 2009 under Clause 3 Article 77 of the Labor Code of the RF. appoint Emdin Sergey Vladimirovich to the position of General Director of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) and to conclude an employment contract with him on his functioning as a sole executive body of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for the term of 15 June 2009 – 15 June 2011. determine the number of the Management Committee of OAO Irkutskenergo of five persons. To appoint the Management Committee of OAO Irkutskenergo as of 15 June 2009 as follows: Sergey Vladimirovich Emdin - General Director OAO Irkutskenergo; Vyacheslav Yurievich Stoyanov - Director of Relations with State Authorities and Public Relations OAO Irkutskenergo; Evgeny Anatolievich Novikov - Director of Power Generation and Chief Engineer; Boris Matveyevich Rozenraukh – Strategy Advisor to General Director; Evgeny Gennadievich Filsh - Finance and Economics Director. Meeting of OAO Irkutskenergo Board of Directors on 19 June 2009 г. (minutes No 23), resulted in the following decisions: approval of the Annual Report of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2008; approval of the Annual Report of Irkutsk Joint Stock Company of PERFORMANCE HIGHLIGHTS 28

Energy and Electrification (OAO Irkutskenergo) for 2008; approval of annual financial statements, including the Profit and Loss Statement (profit and loss accounts) of OAO Irkutskenergo for 2008. distribution of the profit of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) based on 2010 performance, for the following purposes: Investment activities, RUB 543,916 thousand Including operational targets, RUB 516,916 thousand; non-operational, RUB 27,000 thousand Regional community events, RUB 125,000 thousand; Working capital financing, RUB 2,388,970 thousand No payment of the annual dividends of the Company for 2008; appointment of the Board of Directors of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo): Igor Sergeyevich Ageichev, Boris Petrovich Varnavsky, Evgeny Vyacheslavovich Dod, Yana Vsevolodovna Donskaya, Vladimir Alexeevich Kiriukhin, Vyacheslav Mikhailovich Kravchenko, Jivko Savov, Stanislav Yurievich Svetlitsky, Vyacheslav Andreyevich Solomin, Rashid Ravelevich Sharipov, Sergey Vladimirovich Emdin, Endorsement of the Audit Commission of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo): Igor Vladimirovich Gankov, David Deshenovich Pogosbekov, Konstantin Yurievich Sukhobaevsky, Maria Gennadievna Tikhonova, Irina Vladimirovna Travkova. PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009OAO IRKUTSKENERGO 2929

appointment of OOO FinExpertiza as the Auditor for Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2009. approval the new version of Charter of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo). approval of the new version of Regulations of the General Meeting of Shareholders Charter of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) approval of the new version of the Regulations on the Board of Directors of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo). approval the new version of Regulations on the Management Board of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo).

Meeting of OAO Irkutskenergo Board of Directors on 3 July 2009 (minutes No 34(187)), resulted in the following decisions: appointment of Svetlitsky Stanislav Jurievich as Chairman of OAO Irkutskenergo; appointment of Kiryukhin Vladimir Alexeevich as Deputy Chairman of the Board of Directors of OAO Irkutskenergo; appointment of Shmagelsky Alexander Evgenievich as Secretary of the Board of Directors of OAO Irkutskenergo; approval of the conclusion of OAO Irkutskenergo’s inter-related transactions for purchase of shares of Closed Joint- Stock Company «Resursservisholding»; Tikhonova Maria Gennadievna; Sharipov Rashid Ravelevich appointment of members of the Audit Committee under the Board of Directors of OAO Irkutskenergo: Igor Sergeyevich Ageichev; Jivko Savov; Vladimir Alexeyevich Kiryukhin. appointment of members of the HR and Remuneration Committee under the Board of Directors of OAO Irkutskenergo: Yana VsevolodovnaDonskaya, Vladimir Alexeevich Kiriukhin; Jivko Savov. PERFORMANCE HIGHLIGHTS 30

Specification of the number of members and appointment of members of the Budget Committee under the Board of Directors of OAO Irkutskenergo. Boris Petrovich Varnavsky, Evgeniya Alexandrovna Zarenkova; Vladimir Alexeyevich Kiriukhin, Vyacheslav Alexeyevich Solomin; Vyacheslav Yurievich Stoyanov; Maria Gennadievna Tikhonova; Rashid Ravelevich Sharipov, Evgeny Gennadievich Filsh; Sergey Vladimirovich Emdin. Meeting of OAO Irkutskenergo Board of Directors on 3 September 2009 (minutes No 36 (189)), resulted in the following decisions: approval of maintaining by the General Director of OAO Irkutskenergo Emdin Sergey Vladimirovich, his positions in the Boards of Directors of OAO EvroSibErgo, OOO EvroSibErgo, OAO Krasnoyarskaya GES, OAO OGK-3. Consideration of information regarding preparation and maintaining the heating season of winter 2009-2010 by OAO Irkutskenergo. agreement on the list of issues to be discussed at the meetings of OAO Irkutskenergo Board of Directors in 2009- 2010. (prior to the General Annual Meeting of the Shareholders of OAO Irkutskenergo in 2010). Meeting of OAO Irkutskenergo Board of Directors on 21 September 2009 (minutes No 37 (190)), resulted in the decisions on amendments and additions to the resolution of the Board of Directors of OAO Irkutskenergo on Items 4 and 5 of the agenda of the Board of Directors on 3 July 2009. Meeting of OAO Irkutskenergo Board of Directors on 28 October 2009 г. (minutes No 38 (191)), resulted in the following decisions: Consideration of information regarding preparation and maintaining of the plan on establishment of the unified organisational and managerial structure of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) and Limited LiabilityCompany Vostsibugol (OOO Vostsibugol Company). PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009OAO IRKUTSKENERGO 3131

Consideration of information regarding preparation and implementation of actions aimed at synergy effects from the cooperation of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) and Limited LiabilityCompany Vostsibugol (OOO Vostsibugol Company) in their financial and industrial activities. Consideration of information regarding cutting costs and managerial expenses in 2009. Consideration of information regarding preparation and maintaining of the heating season of winter 2009-2010 by Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo). Meeting of OAO Irkutskenergo Board of Directors on 3 December 2009 (minutes No 39 (192)), resulted in the following decisions: approval of the conclusion of trading contracts by Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) with subsidiaries and affiliated companies of OAO Irkutskenergo, as deals, beneficial for OAO Irkutskenergo; Consideration of information regarding disbursement of part of retained net profit from 2009; Consideration of information on investment programs implementation in 2009 Meeting of OAO Irkutskenergo Board of Directors on 25 December 2009 г. (minutes No 40(193)), resulted in the following decisions: approval of the business plan of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2010; Formulation and approval of the credit policy of Irkutsk Joint Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2010; approval of the conclusion of a trading contract on OAO Irkustkenerego securities (bonds) with OOO Baikalinvestenergo, as a deal, beneficial for OAO Irkutskenergo; approval of the cost reduction program of OAO Irkutskenergo; Consideration of information regarding preparation and maintaining the heating season of winter 2009-2010 by OAO Irkutskenergo PERFORMANCE HIGHLIGHTS 32 Principal Operational Results

2008 2009 Difference, Indicator Actual Actual y-o-y Power generated, mln kWh 60,209.9 56,797.8 -3,412.2 Including HPP, mln kWh 44,149.4 45,767.6 1,618.2 Hydropower Plants (HPPs) mln kWh 16,060.5 11,030.2 -5,030.4 Installed TPP capacity, mln kW 3,877.5 3,877.5 - Installed HPP capacity, mln kW 9,002.4 9,002.4 - Extension of heating networks, km 1,697.7 1,714 16.3 Average number of workforce 8,243 7,723 -520 Average monthly wages, RUB 30,000 34,387 4,387 Revenue, RUB mln 32,267 38,838 6,571 Gross Profit, RUB mln 4,327 7,126 2,799 Revenue, RUB mln 6,384 8,411 2,027 Net (retained) earnings, RUB mln 3,058 3,590 532 Market capitalization as of December 31 (according to Russian Trading System), RUB mln. 35 799 65 258 PERFORMANCE HIGHLIGHTS ANNUAL REPORT 2009OAO IRKUTSKENERGO 3333

PROGRAM OF ENERGY SECTOR DEVELOPMENT IN THE IRKUTSK OBLAST

The project includes construction: 220 kW Power Grids – 695 km 500 kW Power Grids – 1,441 km 220 kW substations - 4 500 kW substations - 4 Total number of network infrastructure facilities: 16 006 CU* ORMANCE HIGHLIGHTS F *CU (Conventional Units) - account for maintenance and repairs manhours PER 34

COMPANY MANAGEMENT ANNUAL REPORT 2009OAO IRKUTSKENERGO 3535

Corporate Management № Full Name YOB Position

BOARD OF DIRECTORS 1 Stanislav Yurievich Svetlitsky 1967 Deputy Energy Minister of the Russian Federation

2 Vladimir Alexeyevich Kiriukhin 1956 Director General Engineering and Development 3 Igor Sergeyevich Ageichev 1978 Director General

4 Boris Petrovich Varnavsky 1940 Director for Energy Generation and Capital Building of OAO EuroSibEnergo 5 Evgeny Vyacheslavovich Dod 1973 President, OAO RusGidro 6 Yana Vsevolodovna Donskaya 1975 HR Director, EuroSibEnergo 7 Vyacheslav Mikhailovich Kravchenko 1967 Director General, Rosneft-Energo 8 Jivko Savov 1966 Managing Director, Energy OOO EN+ Management

9 Vyacheslav Alexeyevich Solomin 1975 Chief Financial Officer,A O O EuroSibEnergo, Interim Director General, OAO EuroSibEnergo, Director General OAO EuroSibEnergo (collateral)

10 Rashid Ravelevich Sharipov 1968 Deputy General Director, OAO KFK-Consult

11 Sergey Vladimirovich Emdin 1971 Director General, OAO Irkutskenergo Up to 31 March 2010 MANAGEMENT Y COMPAN 36

№ Full Name YOB Position

Management Board 1. Sergey Vladimirovich Emdin 1971 Director General, OAO Irkutskenergo 2. Vyacheslav Yurievich Stoyanov 1967 Deputy General Director for Corporate Management, OOO Irkutskenergo; Director, OOO Irkutsky (EuroSibEnergo subsidiary), (collateral) 3 Evgeniy Anatolievich Novikov 1959 Deputy General Director of Power Generation and Chief Engineer, OAO Irkutskenergo 4 Boris Matveyevich Rozenraukh 1948 Strategy Advisor to General Director

5 Evgeny Gennadievich Filsh 1959 Deputy General Director, Finance and Economics

Audit Board 1 Igor Vladimirovich Gankov 1968 Chief of the Innovation Technologies Department, OOO Evrosibenergo

2 David Deshenovich Pogosbekov 1981 Taxation Manager, OAO EuroSibEnergo, Chief Financial Officer,A O O EuroSibEnergo, (collateral) 3 Konstantin Yurievich Sukhobaevsky 1981 Head of Consolidated Reporting, ООО EuroSibEnergo

4 Maria Gennadievna Tikhonova 1980 Deputy Department Head of the Ministry of Energy of Russian Federation 5 Irina Vladimirovna Travkova 1963 Head of Accounting Department, OOO EuroSibEnergo MANAGEMENT Y COMPAN ANNUAL REPORT 2009OAO IRKUTSKENERGO 3737

Management Board The Management Board is a collective executive body of the Company. Members of the Management Board can be the Heads approved by the Company’s Board of Directors. The Management Board is chaired by the General Director. The Management Board’s procedures, rights, obligations, and responsibilities are determined by the legislation of the Russian Federation, the Company’s Charter, Regulations of the Company’s Management Board and agreements between the Company and the Management Board members. Issues falling under the Management Board’s authority, according to the Charter, may not be delegated to the Company’s General Director. The following issues are within the exclusive competence of the Management Board: 1) preliminary discussion of issues proposed for consideration by the Board of Directors, either at the initiative of the Management Board or at the request of the Board of Directors of the Company; drafting recommendations regarding such issues; 2) decisions on entering into a transaction or a series of related transactions (except transactions for which the Company Charter specifies other rules) for the acquisition, alienation or possible alienation of property, directly or indirectly, by the Company for the amount equal to, or exceeding 25,000,000 (twenty-five million) Rubles or more; 3) approval of monthly budgets and financial plans of the Company and status reports thereon; 4) approval of terms and programs for debt restructuring (including, but not limited to, disposal of accounts receivable), which do not fall under the competence of the Board of Directors, and control over their implementation; 5) approval of programs and plans of the Company’s insurance coverage with regard to mandatory and voluntary insurance types and control over their implementation; 6) approval of social security benefits and guarantees for the Company employees; 7) approval of capital raising programs and plans to finance the Company’s development, and ensuring implementation thereof; 8) decisions on the Company’s participation in, or withdrawal from, other entities, including the purchase or sale of shares (equity interests); decisions on the alienation by the Company of shares or equity interests in other business entities by sale of shares (equity interests), decisions on transfer of shares to asset management trusts, pledging or any other assignation or charging over shares (equity interests) in other entities of the Company unless such a

MANAGEMENT decision is referred by the Company Charter to the exclusive competence of the Board of Directors; Y 9) Decisions on the nomination of candidates to management, appointment of Company representatives for general meetings of COMPAN 38

shareholders, on approval of voting instructions for Company representatives at meetings of collective management, general meetings and meetings of the Board of Directors on the approval of one-year business-plans and reports on execution thereof, on organizational issues; and on exercising other rights of the Company as a participant and/or shareholder of business entities in which the Company holds equity interests; 10) Approval of the Company’s internal by-laws on issues falling under the Management Board authority; 11) decisions on alienation or possible alienation, directly or indirectly, of immovable property of the Company, unless such transactions fall under the authority of the Board of Directors; 12) Approval of foundation documents of commercial and non-profit entities in which the Company is a founder, participant or shareholder; 13) Resolving of any other ongoing Company’s issues, submitted for consideration of the Management Board’s by the General Director of the Company. Management Remuneration By a decision of the Board of Directors, members of the Management Board can be granted remuneration and/or compensation for the expenses incurred due to the performance of their respective duties. The amount of remuneration and compensation thereof are determined by the Company’s Board of Directors. Based on the decision of the General Meeting of Shareholders, members of the Board of Directors can be granted remuneration and/or compensation for the expenses incurred due to the performance of their respective duties for the term of office. The amounts of remuneration and compensation thereof are determined by the decision of the Company’s General Meeting of Shareholders. MANAGEMENT Y COMPAN ANNUAL REPORT 2009OAO IRKUTSKENERGO 3939

Property Management

Property Management structure as of 31 December 2009

Joint-stock companies with blocks of shares (interest) OAO Irkutskenergo share OAO Irkutskenergo № owned by OAO Irkutskenergo in charter capital, % share of votes, % 1 ZAO Irmet 100.00 100.00 2 OOO IrkutskEnergoSvyaz 100.00 100.00 3 OOO Angarsk Teplosbytovaya Company 100.00 100.00 4 ООО Centralizovannaya Energoremontnaya Firma 100.00 100.00 5 ZAO Resursservisholding 100.00 100.00 6 ZAO Sibirenergotrend 100.00 100.00 7 ZAO Irkutskenergotrans 100.00 100.00 8 ZAO Gidroenergoservisremont 100.00 100.00 9 ZAO Spetsenergoremont 100.00 100.00 10 ZAO Bratskenrgoremont 100.00 100.00 11 ZAO Baikalenergo 100.00 100.00 12 ZAO Irkutskzolprodukt 100.00 100.00 13 OOO Irkutskenergo Fire Service 100.00 100.00 MANAGEMENT Y COMPAN 40

Property Management structure as of 31 December 2009 (Continued from previous)

Joint-stock companies with blocks of shares (interest) OAO Irkutskenergo share OAO Irkutskenergo № owned by OAO Irkutskenergo in charter capital, % share of votes, % 14 OOO Irkutskaya Gorodskaya Teplosbytovaya Kompaniya 100.00 100.00 15 OOO Elektrosbyt 100.00 100.00 16 OOO Irkutskenergo Engineering Center 100.00 100.00 17 OOO Irkutskenergofinans 100.00 100.00 18 OOO Irkutsk Energosbytovaya Kompaniya 100.00 100.00 19 OOO Vostsibugolsbyt 100.00 100.00 20 OOO Baikalinvestenego 99.7 99.7 21 ZAO Energoparitet (currently under liquidation) 50.36 50.36 22 ZAO SIbtranspress 19.98 19.98 23 OOO Leasing Center 19.80 19.80 24 OAO Siberian Investment Company 0.16 0.16 MANAGEMENT Y COMPAN ANNUAL REPORT 2009OAO IRKUTSKENERGO 4141

Property Management Unit of № Item 2008 год 2009 год Measurement 1 Long-term investments at the beginning of period RUB ‘000 23,478,025.77 2,339,531.60 2 Number of organizations from which Irkutskenergo withdrew 1 1 3 Number of companies established 0 0 4 Long-term investments at the end of the period RUB ‘000 2,339,531.60 16,377,058.48

In 2006, the Company’s long-term investments grew y-o-y. This increase was attributable to the Company restructuring. In 2006, the Management Board and the Board of Directors of Irkutskenergo approved the spin-off of the following subsidiaries: Irkutskenergo Engineering Center and Irkutsk Electric Power Network Company. Another factor contributing to the growth in long term investments was the increase in the nominal value of the Company’s interest in Irkutsk Electric Power Network Company and Baikalinvestenergo as a result of additional contribution of assets into the charter capitals of the two companies. In 2005, Irkutskenergo generated more income from equity participations. In addition, in 2006 Irkutskenergo sold its equity interests in the following subsidiaries: Baikal Business Center, Irkutskenergoremont, and Shelekhov Substation. Proceeds from the sale totaled RUR 30,282,499. In 2009, the Company’s long-term investments considerably grew y-o-y. This increase was attributable to an acquisition of 100% shares of ZAO Resourceserviceholding at market value Following the legislative requirements, OAO stopped its interest in OOO Security Firm Irkutskenergo, having sold 100% of its shares in the charter capital of this company in 2009. The book value of the Company’s interest in OOO Security Firm Irkutskenergo was RUB 4,510 thousand at the time of the deal. The sales value of 100% shares of OOO Security Firm Irkutskenergo was RUB 9,350 thousand in accordance with the purchase agreement on interest in charter capital of OOO Security Firm Irkutskenergo. In accordance with the decision of the sole participant OOO Security Firm Irkutskenergo the retained net profit from the previous years as well as OOO Security Firm Irkutskenergo’s net profit of the first six months of 2009, were allocated to dividend payout to OAO Irkutskenergo. The amount paid was RUB 7,994 thousand. The term of payment was no later than 30 June 2010. In 2009 RUB 1,820 thousand of total accrued dividends was paid out. MANAGEMENT Y COMPAN COMPANY MANAGEMENT 42

SHAREHOLDERS’ EQUITY ANNUAL REPORT 2009OAO IRKUTSKENERGO 4343

Shareholders’ capital and distribution of shares As of December 31, 2009, the Company’s shareholders’ capital amounted to RUB 4,766,807.7 thousand divided into 4,766,807,700 outstanding registered ordinary shares. The par value per share is RUB 1. No preferred stock was issued. The Russian Federation, represented by the Federal Agency for Federal Property Management, owns 40% of OAO Irkutskenergo’s ordinary shares with the block’s nominal value of RUB 1,906,723.08 thousand. OAO Irkutskenergo Charter grants the Russian Government no special rights to participate in the management of the Company (“golden share”). Issue of shares Issue prospectus Emission amount Issue of shares Number of issued shares Type of shares registration date (RUB m) First issue 23.11.1992 1.97 1,978,677 Ordinary, registered Second issue 27.01.1994 45.7 45,689,400 Ordinary, registered Third issue 29.02.1996 4,719.14 4,719,139,623 Ordinary, registered

Note: On 17June 2003, the RF Federal Commission for the Securities Market ruled to consolidate the three issues into one of 4,766,807,700 shares.

№ Name of the Registered Entity Share in the Charter Capital, % The Russian Federation represented by the Federal Agency for Federal 1 Property Management 40.00 2 ОАО EuroSibEnergo 50.19

3 ОАО «Irkutskenergo» (shares repurchased during reorganization) 1.35

Y 4 ADR Owners 0.97 5 Other shareholders 7.49 TOTAL 100 SHAREHOLDERS’ EQUIT 44

Shareholders’ capital and distribution of shares OAO Irkutskenergo shares are traded at the MICEX and Russian Trading System (RTS) stock exchanges. The MICEX quote of the Company’s shares was RUB 7.71 at the beginning of 2009.

Term RTS trading volume, RUB 000’ MICEX trading volume, RUB 000’ First quarter 27,110.0 96 485.7 Second quarter 10,087.9 670,000.0 Third quarter 19,209.1 728,455.7 Fourth quarter 0,862.0 370,502.9

MICEX trading Term Number of Shares Issued RTS trading volume, EA Shares Turnover volume, EA First quarter 4,766,807,700 4,772,350 15,239,600 0.42% Second quarter 4,766,807,700 1,658 500 670,000,000 14.09% Third quarter 4,766,807,700 1,628 914 728,455,700 15.32% Fourth quarter 4,766 807,700 781,808 370,502,900 7.79% Y SHAREHOLDERS’ EQUIT ANNUAL REPORT 2009OAO IRKUTSKENERGO 4545

Dividends per share

Year of Payment Dividends per share, RUB 2005 0.05057 2006 0.07517 2007 0.07522 2008 * - 2009 **

*- At the annual general meeting of shareholders held on June 19, 2009, it was decided not to pay dividends on the Company’s shares for 2008. **- the dividend amount payable for 2008 has not yet been determined. Dividends were paid within the timeframes set by the General Meetings of Shareholders. OAO Irkutskenergo dividend policy is defined by the Annual General Meeting of Shareholders based on recommendations of the Board of Directors of OAO Irkutskenergo. Y SHAREHOLDERS’ EQUIT SHAREHOLDERS’ EQUITY 46

MARKETS AND SALES MANAGEMENT ANNUAL REPORT 2009OAO IRKUTSKENERGO 4747

Key Product Sales Breakdown OAO Irkutskenergo legally operates in the wholesale market as a seller of electric power and in the regional market as a seller of heating power. The heat market for Irkutskenergo includes the cities of Irkutsk, Angarsk, Usolie-Sibirskoye, Cheremkhovo, Sayansk, Zima, Bratsk, Ust-Ilim, Zheleznogorsk, and settlements adjacent to these cities. Since September 2009, Irkutskenergo has been selling heating power in Baykalsk. Heating power for consumers in these cities is generated at the CHPP and boiler plants of OAO Irkutskenergo’s branches. Minor amounts of heating power are supplied by other producers, namely ZAO Baykalenergo in Irkutsk and OAO BCBK in Baykalsk. The main heating consumers include town-forming industrial enterprises and public utilities. Heating production is currently a regulated monopoly.

Key Product Sales Breakdown 2008 Actual 2009 Actual Product type Change vs. 2008 Actual. RUB’000 (net of VAT) % Electric power 14,404,366 17,749,111 23.2% Electric capacity 7,806 469 9,964,614 27.6% Heating 8,298,292 9,701,762 16.9% Treated cold water, make- 778,679 886,806 13.9% up water Total 31,287,806 38,302,295 22.42%

Accruals for heat energy in 2009 were by 16.9% higher compared to 2008, with heat carrier (make-up water)/treated water

anagement accruals rising 13.9%. Despite a drop in the supply of heat energy in 2009 vs. 2008, the overall increase of accruals for heat

M was 16.7%, or RUB 1,511,597,000 y-o-y. The contributing factors were higher tariffs by RUB 1,701 738,000 (18.7%); and the lower power consumption by RUB 189,541,000 (-2.1%). ales S The increased revenue from electricity and power sales in 2009 year-on-year was due to increased volumes of sales and at non-regulated (higher) prices, increased contribution of market liberalization, and the benefit of the mechanism introduced in 2009 that allows selling some capacity through commodity

arkets exchange sales at market prices. M 48

Heating sales

Share in total City 2008 Actual 2009 Actual Change y-o-y volume № (Heating Facility) 000’. Gcal % 1 Shelekhov 764.439 755.729 -1.10% 3.3% 2 Irkutsk 4,628.423 4,556.564 -1.6% 20.0% 3 Angarsk 6,525.555 6,402.638 -1.9% 28.2% 4 Usolie 2,444.179 2,010.834 -17.7% 8.8% 5 Bratsk 4,846.597 4,855.868 0.2% 21.4% 6 Zheleznogorsk 486.859 484.513 -0.5% 2.1% 7 Sayansk, Zima 1,567.663 1,598.214 1.9% 7.0% 8 Cheremkhovo 303.935 318.313 4.7% 1.4% 9 Ust-Ilimsk 1,654.712 1,676.845 1.3% 7.4% 10 Baykalsk 0.000 78.237 0.3% Total 23,222.7 22,737.755 -2.1% 100.0%

The commercial heat supply in 2009 was by 2.1% less than the heat consumption in 2008 and by 2.2% lower than planned. anagement M ales S and

arkets M ANNUAL REPORT 2009OAO IRKUTSKENERGO 4949

OAO Irkutskenergo product in kind consumption breakdown by consumer groups

2008 Actual 2009 Actual Change y-o-y, Item Description Commercial supply Share % Commercial supply Share % % Gcal, tonnes Gcal, tonnes TOTAL, including: 23,222,681 22,737,755 -2.1% Industrial enterprises, total: 8,834,063 38.0% 8,160,049 35.9% -7.6 SUAL 186,208 0.8% 184,999 0.8% -0.6% Ilim Group, Bratsk 2,482,830 10.7% 2,348,845 10.3% -5.4% Korshunovsky Mine 206,514 0.9% 184,778 0.8% -10.5% ANHK 2,294,514 9.9% 2,228,342 9.8% -2.9% Polymers Plant, Angarsk 717,233 3.1% 590,877 2.6% -17.6% HIMPROMUSOLYE 1,258,289 5.4% 895 577 3.9% -28.8% AEHK 381,005 1.6% 380,906 1.7% 0.0% Ilim Group. Ust-Ilimsk 520,262 2.2% 531,784 2.3% 2.2% SAYANSKHIMPLAST 787,207 3.4% 813,941 3.6% 3.4% OPP TEPLOENERGII 1,005,287 4.3% 1,016,302 4.5% 1.1% Utility Companies 8,857,546 38.1% 9,084,257 40.0% 2.6% Medium consumers 634 009 2.7% 578,537 2.5% -8.7%

anagement Others 3 891 776 16.8% 3,898,610 17.1% 0.2% M ales S Increased heat consumption by wholesalers, public utility companies, and others was due to low ambient air temperature in 2009, and

which was by 3°C lower than the historic average winter temperature. arkets M 50

Financial plan for accrual and collection of heat payments Units of measurement 2008 Actual 2009 Actual Accrued receivables, at the beginning of RUB 000’ (VAT included) 1,219,300 1,585,320 period, Accrued receivables RUB 000’ (VAT included) 10,710,826 12,494,559 Settled receivables RUB 000’ (VAT included) 10,333,168 12,149,013 Share of settled % 96.5% 97.2% Written off RUB 000’ (VAT included) 11,638 415,234 Settlement share, write-offs included % 96.6% 100.6% AR, end of period, RUB 000’ (VAT included) 1,585,320 1,515,631 Change in AR, RUB 000’ (VAT included) 366,021 -69,689 Actual settlement percentage in 2009 without write-offs was 97.2%. The reasons for actual settlement percentage in 2009 were as follows: considerable outstanding advance payments from large industrial companies as at January 01, 2009 (RUB 112.9 million); no payment made for December by OOO Usoliekhimprom (RUB 64.5 million); decreased share of large industrial consumers paying promptly and in full for the heating power received; partial payments for heat from public utilities of Angarsk, Usolie-Sibirskoye, Usolie District, Bratsk, Zheleznogorsk- Ilimsky; anagement M ales S and

arkets M ANNUAL REPORT 2009OAO IRKUTSKENERGO 5151

Power Sales

In 2009 OAO Irkutskenergo sold its electric power through the following mechanisms: Sales at administered tariffs under regulated contracts (RC). In accordance with the legislation, the share of RC accounted for 70% (in the first half-year) and 50% (in the second half-year) of the total sales volumes. Sales at non-regulated prices defined upon agreement of the parties in free Bilateral Contract for Power and Capacity (BCPC). Sales at non-regulated prices based on competitive tender selection of price quotes of buyers and customers, performed one day prior to supply - Day Ahead Market (DAM). Sales at non-regulated prices based on competitive tender selection of price quotes, performed no later than one hour prior to supply – Balancing Market (BM). The sales of electric capacity were using the following mechanisms: Sales of capacity under competitive capacity provision (CCP). Sales of capacity under free non-exchange bilateral contracts for power and capacity (BCPC). Sales of capacity under commodity exchange BCPC. This type of contracts was introduced in 2009 within the framework of capacity sales through stock exchange. HPP capacity sales under bilateral capacity contracts (BCC). The main direct contract buyers included OK RUSAL, ООО Irkutskenergosbyt, ZAO MAREM+, and ОАО Krasnoyarskenergosbyt. As a result of the work completed in 2009 mutually beneficial prices, supply and payment terms have been agreed with RUSAL Company. These terms have been executed as long-term electricity and capacity supply contracts, which will allow to stabilize financial proceeds from major consumers for several years, and to improve the stability and attractiveness of the Company for investors and partners. anagement M ales S and arkets M 52

Supply of commodity to the wholesale electric power market

2008 2009 Actual Accrued Accrued Actual Volume Share in the total Volume Share in the total vo- Tariff, Rub/MWh Receivables Tariff, Rub/MWh Receivables (million kWh, volume of commo- (million kWh, lume of commodity (RUB 000’/MW) Net VAT (RUB 000’/МВт) Net VAT MW) dity supply MW) supply (RUB, 000’) (RUB, 000’) Total sales to wholesale electricity 22,210,835 100% 27,713,725 100% market Revenue from sales of generated electric power 57,229 146.8 8,400,578 38% 54,222 169.3 9,178,077 33% RUSAL 0 0.0 0 0% 21,797 165 3,590,092 13% IESBK 41,362 121.6 5,030,159 23% 14,301 112 1,597,293 6% Day-ahead market. Negotiated 7,044 448.9 3,161,550 14% 9,668 385 3,722,867 13% bilateral contracts, Negotiated contracts Regulated contracts 8,824 23.7 208,869 1% 8,456 32 267,825 1% Revenue from external electric power 12,772 470.1 6,003,787 27% 22,769 376.4 8,571,035 31% Day-ahead market 10,957 468.2 5,129,676 23% 21,208 376.0 7,974,105 29% BM 1,815 481.5 874,111 4% 1,560 382.5 596,929 2% anagement M ales S and

arkets M ANNUAL REPORT 2009OAO IRKUTSKENERGO 5353

Supply of commodity to the wholesale electric power market 2008 2009 Actual Actual Accrued Accrued Volume Share in the total Volume Share in the total Tariff, Rub/MWh Receivables Tariff, Rub/MWh Receivables (million volume of com- (million volume of commodity (RUB 000’/MW) Net VAT (RUB 000’/МВт) Net VAT kWh, modity supply kWh, MW) supply (RUB, 000’) (RUB, 000’) MW) Revenue from electric power sales 149,869 52,088.6 7,806,469 35% 148,389 67,152.1 9,964,614 36% RUSAL 0 0.0 0 0% 47,826 64,262.1 3,073,384 11% ESBK 98,347 52 131.0 5 126 919 23% 43,985 71,290.8 3,135,759 11% Negotiated contracts, comissions 5,583 301 990.7 1 685 988 8% 18,173 101,695.7 1,848,115 7% Regulated contracts. 45,939 21 627.7 993 562 4% 38,404 49,665.0 1,907,357 7% External electric power; wholesale power market 12,497 348.7 4,357,837 22,712 333.8 7,582,039 Service payment ОАО SO EES 847,254 0.0 1,038,890 Service payment ZAO TSFR 8,755 0.0 8,951 Service payment ОАО АТS 50,263 0.0 33,45 Service payment. Stockmarket 0 0.0 1,606 Comission paid to ZAO TSFR for electric power sales at wholesale power market 192 0.0 171

The year 2009 witnessed a 25% growth of electric energy and power sales y-o-y, mainly due to electric energy and anagement power market prices growth following market deregulation. M ales S and arkets M 54

Financial plan for accrual and collection of power payments Units 2008 Actual 2009 Actual AR, beginning of period (net of advance RUB 000’ (VAT included) 331,426 2,166,986 payments) Accrued Receivables RUB 000’ (VAT included) 26,208,785 32,702,196 Settled receivables RUB 000’ (VAT included) 24,332,996 33,030,372 Share of settled % 93% 101% Written off RUB 000’ (VAT included) 40,229 0 Settlement share, write-offs included % 93% 101% AR, end of period (NET advance) RUB 000’ (VAT included) 2,166,986 1,838,810 Change in AR RUB 000’ (VAT included) 1,898,758 -328,176

Actual payments for electric power resources in 2009 were 101%. This growth was due to settlement of accounts receivable with contracting parties from 2008. 2009 OAO Irkutskenergo Tariff Policy

Power and heat tariffs are subject to state regulation according to FederalL aw No. 41-ФЗ (FZ) “On state regulation of power and heat tariffs in Russia” datedA pril 14, 1995, “Power and heat pricing principles in the RF” approved by Government Order No. 109 dated February 26, 2004, and “Guidelines on calculating Regulated Tariffs and Electric (Heat) Power Prices in the Retail (Consumer) Market” approved by Order No. 20-э(e)/2 of RF Federal Tariff Service on August 06, 2004. In compliance with the tariff approval procedure for 2010, the FTS established tariff limits for heat and electricity in the Irkutsk Region. Order of the RF Federal Tariff Service (FST) No. 217-e/3 dated 22 September, 2009 established tariff limits in the Region for anagement

heat energy cogenerated by CHPP for 2010. M ales S and

arkets M ANNUAL REPORT 2009OAO IRKUTSKENERGO 5555

2010 Tariff Limits, Heat

Units of Indicator Minimum Maximum measurement Tariff limits for heating power co-generated by CHPP RUB/Gcal 277.4 308.21 Growth before 2009 % 2.8% 14.2%

RF Federal Tariff Service has established maximum tariff limits for electricity and heating in the Irkutsk Region for 2010. FST Order No. 229-e/3 dated by 29 September 2009 adopted the tariff limits in the region at 111.1% of the previous period. Pursuant to the RF Governmental Decree No 205 dated 07 April 2007, 35% to 40% of generated (consumed) energy, traded at the wholesale market in 2010, will be sold at regulated prices from 1 January 2010 to 30 June 2010; 15% to 20% - from 1 July to 31 December 2010. Thus, 60% to 85% of the electric energy will be sold at the wholesale market at unregulated prices. The remaining volume will continue to be sold at tariffs, established by the Federal Tariff Service. In view of the above, a tariff calculation by indexing method for 2010 wholesale electric power sales was prepared and submitted to FST for approval. The calculation was carried out using the Price Calculation Formulae approved by FST RF Order No 348-e/12dated by 12 May 2006. The FST Order No. 326-e/3 dated 24 November 2009, established the tariff limits for electricity supplied to the wholesale market under the regulated contracts. The average one-part electric power tariff at 220.28 RUB/thousand kWh has increased by 2.5% and amounted 87.91 anagement RUB/thousand kWh; the growth by 2009 was 13.2%; power rate – 51,560 RUB/MW per month(?), reduction -3.5 %. M The power rate reduction was due to the 2010 tariff forecast by the Ministry for Economic Development that ales

S considerably limits growth of regulated tariffs for energy. It is worth mentioning that the aforesaid forecast

and does not account for profit-funded investment component. Despite this fact, OAO Irkutskenergo have

submitted substantiation of some necessary investment projects implementation, resulting in the investment component of the tariff in the amount of RUB 356 million, arkets

M derived from the profit. These funds will be allocated to the following items: 56

An overhaul of the hydraulic unit and comprehensive emergency shutdown system installation at BHPP; Unit 4 reconstruction at UI HPS; facilities construction for coal feed flowchart from TPP 9 Station 1 coal stockpile and others; Under the section 64 of the Wholesale Market Regulations, the tariffs for power have been adopted inclusive of the ratio, calculated accounting for correlation of maximum volume of generating capacities available in 2007-2008 and maximum volume of generating capacities for 2010, approved by the consolidated forecast balance. FTS RF Order No. 344-e/3 dated 12 December 2009, set indicative wholesale power purchase price for the Irkutsk Region in 2010 as follows: power rate – RUB 115.32 per MWh (4.8% growth), capacity rate – RUB 70,046.79 per MW per month (2.1% growth). Average purchase price for GP IESbK is RUB 227.76 per MWh in 2010. A Heat tariff calculation for the Irkutsk Region’ consumer in 2009 was based on estimates and supporting documents provided in compliance with the Guidelines adopted by FTS RF Order No. 20-e/2 dated August 06, 2004. Substantiated tariff proposals were submitted to the Tariffs Service of the Irkutsk Region. Order No. 133-П (P) of the Irkutsk Region Tariffs Service dated 28 December 2009 established tariffs for heat supplied to local consumers. The average OAO Irkutskenergo heat tariff was approved at RUB 496 RUB/Gcal, a 13.6% increase y-o-y. anagement M ales S and

arkets M ANNUAL REPORT 2009OAO IRKUTSKENERGO 5757

Heat Tariffs Units of Growth 2009 Growth 2010 vs. No Consumers 2008 2009 2010 measurement vs. 2008 2009 1 Public Sector RUB/Gcal 350.87 421.00 472.51 119.99% 112.24% 2 Urban Sector RUB/Gcal 350.87 421.00 472.51 119.99% 112.24% 3 Other Consumers: Hot Water RUB/Gcal 372.65 421.00 472.51 112.97% 112.24% Steam (one-part tariff) RUB/Gcal 373.64 462.95 540.26 123.90% 116.70% - from 2.5 to 7.0 kg/sq.m RUB/Gcal 381.32 472.45 551.35 123.90% 116.70% - from 7.0 to 13.0 kg/sq.m RUB/Gcal 394.77 489.15 570.84 123.91% 116.70% - over 13.0 kg/sq.m RUB/Gcal 365.76 436.56 496.01 119.36% 113.62% 4 average tariff 365.76 436.56 496.01 119.36% 113.62%

TS of the Irkutsk Region in agreement with the Irkutsk Administration have approved financing of the investment program by the revenue, in the amount of RUB 160 million. These funds will be allocated to Irkutsk heating network reconstruction. In order to reduce cross-subsidizing, unified tariff for hot water heat energy was established for public, urban and other consumers at 472.51 RUB/Gcal, the growth by 2009 was 12.24%. anagement M ales S and

anagement arkets M M ales S and

arkets M 58

PRODUCTION ANNUAL REPORT 2009OAO IRKUTSKENERGO 5959

Generating capacity data

Installed capacity, MW Available capacity, MW Operating capacity, MW 2009 actual 2009 actual 2008 actual 2009 actual 2008 actual 2009 actual MW Gcal/h MW MW MW MW OAO Irkutskenergo 12,879.9 13,357.5 11,811.4 12,130.22 9,875.2 10,136.18 Including HPP 9,002.4 8,629.1 8,682.65 7,338.1 7,453.94 9,002.4 CHPP+DB 3,877.5 13,357.5 3,182.3 3,447.57 2,537.1 2,682.24

The installed capacity of Company’s power plants has not changed in the reporting period. The available capacity of cascade HPP increased by 53.55 MW as compared to the actual available capacity y-o-y due to changed head pressure of BHPP. The available capacity of CHPP increased by 265.27 MW owing to smaller limitations on installed capacity. The overall operating capacity target by power plants and power systems has been achieved. In 2009, the actual operating capacity of OAO Irkutskenergo increased by 60.98 MW as compared the corresponding period of the previous year, of which 145.14 MW contributed by increased available capacity of CHPP and 115.84 MW due to that of HPP for the above reasons, as well as due to lower maintenance capacity of HPP. PRODUCTION 60

Number of boiler units and turbine generators as of 31 December 2009

2009 г. Boiler units (power generating/water Turbine generators Item heating) Generating capacity Quantity (units) Quantity (units) Capacity (MW) (tph, Gcal/h) CHPP 116/0 28,780/0 61 3,877.5 DBs (DB-district boiler) 10/9 280/560 - - CHPPs+ DBs 126/9 29,060/560 61 3,877.5 HPP - - 42 9,002.4 Total installed capacity 126/9 29,060/560 103 12,879.9 Production plan Power generated 2008 2009 Difference vs. Indicator Actual Actual 2008 actual. Million kW-hour % Power generated, total 60,209.9 56,797.8 -5.7 Internal power consumption 2,203.1 1,850.5 -16.0 Bus line power generation 58,006.9 54,947.2 -5.3 Power consumption forproduction needs 49.0 37.3 -23.8 Power consumption for utility needs 38.8 37.1 -4.5 Power plant grid losses 578.3 533.4 -7.8 Net power output, total 57,340.8 54,339.4 -5.2 PRODUCTION ANNUAL REPORT 2009OAO IRKUTSKENERGO 6161

Power generation decreased by 3,412.2 million kW/h (-5.7%) y-o-y. The main reason behind production level reduction is the drop in electric power consumption. The 6.6% reduction in cogeneration power from CHPP against last year’s actual was due to reduced heat energy consumption by industry (of water and heat water). Power generation from HPP was subject to the Siberian UDCC requirements to balance the Siberia UES and the availability of water resources based on admissible reservoir storage levels set by EBWD. Normal navigation flow rates were maintained through IHPP (1,350h÷2300 m3/sec), UIHPP (2,642h÷3499 m3/sec), and BHPP (1,331h÷3,585 m3/sec) in the reporting period. The hydropower reserves as at 01.10.09 were by 3.896 billion kWh higher than last year thus allowing to increase the generation from HPP by 1,618.2 billion kWh y-o-y. Due to reduced supply of heat from EBPs, the power consumption for production needs has substantially decreased compared to the same period of the last year. The power plant grid losses for the reporting period have reduced compared to the same period of the previous year due to decrease in power generation at CHPP and HPP. Heat production 2008 Actual 2009 Actual Difference y-o-y Indicators Gcal’000 % Heat supply to the network (own) 26,202. 9 25,807. 4 -1.5 Purchased heat 179. 3 179. 3 Network losses 2,807.2 381.1 2,807. 2 Heat consumption for utility needs 173.1 2,892.2 3.0 Net heat supply 23,222.7 22,737.8 -2.1 PRODUCTION 62

The net heat supply has reduced by 484.9 thousand Gcal y-o-y, including 597.3 thousand Gcal reduction in heat supply from collector coils (generated by own plants) which is mainly due to reduction of heat consumption in such major industrial enterprises as: OAO Limited Group, Bratsk, OOO Usoliekhimprom, Usolie-Sibirskoye, Polymer Plant and ANXK, Angarsk. Heat supply from EBPs reduced by 492.3 thousand Gcal y-o-y. The actual network heat losses were by 85.0 thousand Gcal higher than in the same period of the previous year. The change vs. 2008 actual is due to increased of the heat network length and lower water and ground temperature during heating season.

Specific fuel consumption Indicators Units Actual 2008 Actual 2009 Difference y-o-y Conventional fuel consumption for power TCE’000 4,625,283 2,974,239 -1,651,044 generation Conventional fuel unit consumption g/kWh 332.81 322.84 -9.97 Conventional fuel consumption for heat TCE’000 3,555,293 3,506,361 -48,932 production Conventional fuel unit consumption kg/Gcal 142.08 140.72 -1.36 Conventional fuel consumption, total TCE’000 8,180,576 6,480,600 -1,699,976

Compared to 2008, the electric power generation by CHPP decreased by 31 %, while heat supply from CHPP and DBs has not changed Conventional fuel consumption for power supply was lower by 10 g/kWh, which is due to the following factors: increase of heating cycle power generation share by 19%; increase of high-pressure CHPP power generation share by 7%. A set of equipment at high-pressure CHPP has contributed to improvement of conventional fuel consumption for supplied heat by 1.4 kg/Gcal. Power supply from HP CHPP increased by 1% and и and 41 % drop in reduced-steam power supply from them resulted in a 2.5 kg/Gcal reduction in specific fuel consumption in those branches. PRODUCTION ANNUAL REPORT 2009OAO IRKUTSKENERGO 6363

Cost Management In 2009, the cost of sales of OAO Irkutskenergo’s commercial output amounted to RUB 22.766 billion, including generation Cost savings against planned cost achieved within costs of RUB 21.993 billion. the scope of anti-crisis program are presented in the The unit cost per 1 kWh of electric power was 20.11 kop/kWh; the unit cost per 1 Gcal of heat – 487.66 RUB/Gcal. table below The fuel cost share in the total power generation costs amounted to RUB 7,113.5 bn. The proportion of fuel in power Cost savings were achieved for the following generation cost was 32.3%. items: The price for the core fuel – coal – in 2009 was RUB 638.28/TNF, which is by 15.3 higher than in the same period of the Repairs and maintenance – deferment of some previous year. maintenance work scope to 2010, lowering contract work cost through competitive tendering; The price per ton of heating oil was RUB 7,613.8, which is by 11.1% lower than in the same period of the previous year. Other services – cutting down service prices, The average price per tonne of conventional fuel was RUB 1,097.65, which is by 13.47 % higher than the last year’s level. extension of work completion timing to 2010, The maintenance cost in 2009 amounted to RUB 4.073 billion or 18.5% of power generation costs, including RUB 0.602 billion reduced use of services; or 2.7% spent for salaries and social benefits of maintenance personnel. Coal – cutting down railway transportation Total labor costs and social benefits amounted to RUB 3,586 bn. or 16.3% of total power generation costs. indexation factor for coal, measures; OAO Irkutskenergo takes pains to optimize costs in order to boost its revenues. These steps are taken within the scope of the Cost of materials – lower purchase prices, EIP Cost Management Program. measures, reduction of HTPP load within the scope In 2009, the Company actively pursued cost-cutting measures under its anti-crisis program and maintained the actual unit of generation structure optimization (replacement in cost at the planned level and increased the profits wholesale market); Water – EIP measures; Cost-cutting within the scope of anti-crisis measures Administrative cost – reduction of business trip expenses (RUB 13 million), labor cost reduction (RUB Savings, RUB ‘000 № Area 6.2 million), reduction of communication cost (RUB 2009 plan 2009 actual 17.4 million), reduction of transport cost (RUB 13.7 1 Repairs and maintenance 721 721 million), other (RUB 15.5 million). 2 Other services 289 299 3 Coal 43 254 4 Cost of materials 79 80 5 Water 63 63 6 Administrative costs 79 66 7 Other 17 34 Total 1,291 1,517 PRODUCTION 64 thermal power generation

Production Efficiency Improvement Programs

The overall actual savings of production costs and additional income from implementation of Production Efficiency Improvement Program in 2009 amounted to RUB 303 billion as against the planned figure of RUB 181.8 billion (197%).

2009 № Areas Cost saving, RUB ‘000 Cost RUB ‘000 Plan Actual Plan* Actual 1 Reduction of operating costs 513.6 914.8 0.0 0.0 2 Efficient fuel use 104,064.4 134,080.3 0.0 28,889.7 Reduction of cost, additional income 3 from HPP 18,150.0 138,019.9 0.0 2,235.0 Optimization of centralized heating 4 system 30,539.7 24,382.8 0.0 83.8 Measures within the scope of CPOP 5 program 19,287.2 48,004.3 0.0 424.0 6 Reduction of pollution fees 9,293.1 12,875.5 0.0 0.0 Total 181,848.0 358,277.6 0.0 31,632.6 * No costs were planned for CPOP in 2009 due to anti-crisis measures. The actual cost figures reflect the completion of Program items, which were not completed in 2008. PRODUCTION ANNUAL REPORT 2009OAO IRKUTSKENERGO 6565

Reduction of operating cost – plan – RUB‘000 513.6, actual – RUB‘000 914.8 (178% completion). This was achieved by optimization of operating equipment production processes and process flows, thus reducing the operational maintenance cost (materials, spare parts, reagents, etc.). Effective fuel use: plan - RUB‘000 104,064.4, actual – RUB ‘000 134,080.3 (129 % completion). Reduction of fuel consumption was achieved by implementing process enhancement measures aimed on performance enhancement (higher efficiency factor of power generation units, optimization of equipment operation processes and process flows, maximizing the use of equipment and processes with better energy performance). Incremental revenue at HPP: plan - RUB‘000 18,150.0, actual - RUB‘000 138,019.9 (760 % completion). Reduction of specific water consumption for power generation was achieved by maintaining optimum equipment loads and generation of higher amounts of power at the same water flow rates. Surplus power was sold at DAM and BM. Optimization of centralized heat supply systems: plan - RUB‘000 30,539.7, actual - RUB‘000 24,382.8 (80% completion). This was achieved by reduction of heat losses in heat networks. Underperformance was associated with reduced commercial supply of heat against target due cutback of production by major industrial enterprises. Measures implemented within the scope of TPO program: plan - RUB‘000 19,287.2, actual - RUB‘000 48,004.3 (249 % completion). This was achieved through joint of work low and medium level personnel under TOP (community initiative), aimed on cost-cutting in all activity areas. Reduction of pollution fees: plan - RUB‘000 9,293.1, actual - RUB‘000 12,875.5 (139 % completion). This is achieved by implementing the following measures: Adjustment of the maximum admissible pollutant emission rates; Organization of extraction and sales of dry ash; Development of permissible pollutant emission rates standards. PRODUCTION PRODUCTION 66

PROCUREMENT ANNUAL REPORT 2009OAO IRKUTSKENERGO 6767

Materials and spare parts Materials and spare parts RUB’000 net of VAT Warehouse Write-off of materials Warehouse Change in Stock at the Receipt of ProcurementIndicators Stock at the end warehouse beginning of materials Total to Other Total Sold outside of period stock period production Retirement Total 768,087 1,146,036 1,202,912 1,131,412 53,177 18,323 711,211 -56,876 Materials for maintenance 195,931 780,239 776,777 747,167 24,881 4,729 199,394 3,463 Materials for operations 39,122 308,816 313, 288 293,879 13,668 5,741 34,650 -4,472 Including fuel and lubricants (operation) 0 69,576 69, 576 69,576 0 0 0 0 Materials for investment activity 533,035 56,980 112,847 90,366 14,628 7,853 477,168 -55,867 Including heating main No.4 25,701 0 25, 701 9,041 0 16,660 0 25, 701 Including Maly Yug 471,807 16,660 24,276 9,256 12,998 2,022 464,191 -7,616

Purchase of materials in 2009 amounted to RUB 1,146.04 million, including under “Operation” item, the branch warehouses received goods with total cost of RUB 308.82 million, including fuel and lubricants for RUB 69.6 million, receipts under “Maintenance” item amounted to RUB 780.24 million, under “Materials for investment projects” – RUB 56.98 million, there was no actual receipts of goods for Maly Yug Project, but materials were transferred from “Heating main #4” (these are reflected as retirement from HM-4 project). Materials write-off in 2009 amounted to RUB 1,202.91 million including outside sales for the amount of RUB 53.2 million, including RUB 313.29 million under “Operation” item, RUB 776.77 million under “Maintenance” item and RUB 112.847 million under “Materials for investment projects” item. The stock as of 31 December 2009 was RUB 711.21 million. The stock reduction amounted to RUB 56.87 million, including RUB 33.32 million against write-off of materials for Maly Yug and HM-4 projects and RUB 14.63 million against sales of redundant stock. PROCUREMENT 68 Fuel

Fuel stocks and consumption

Stock as of 01.01.2009 Stock as of 31.12.2009 Fuel consumption in 2009 Plan Actual Plan Actual Plan Actual +- to % TNF'000 TNF'000 TCE'000 plan completed Fuel, total 8,176.5 6,480.6 -1,695.9 79.3 Including coal: 2,657.6 2,950.1 2,253.2 2,252.7 8,163.2 6,462.7 -1,700.5 79.2 Cheremkhovsky 109.0 127.1 290.2 306.1 807.0 639.6 -167.4 79.3 Azeysky 0.6 146.0 497.7 254.4 824.4 547.4 -277.1 Mugunsky 711.2 1,024.4 486.2 712.6 3,293.2 2,599.4 -693.8 78.9 Borodinsky 493.8 547.1 582.6 392.1 1,106.7 921.2 -185.5 83.2 Pereyaslavsky 33.5 245.9 22.5 79.9 147.3 67.4 184.3 Irbeysky 225.5 263.5 46.1 235.8 693.1 810.7 117.7 117.0 Zheronsky 230.8 390.8 238.5 276.8 537.3 416.6 -120.7 77.5 Golovinsky 486.1 157.2 111.9 52.5 794.7 354.1 -440.5 44.6 Kansky 167.1 48.2 0.0 26.9 26.3 -0.6 Fuel oil, total 5.7 6.0 5.1 5.3 13.4 17.9 4.6 134.3

Due to revised production plan and production and technical indicators for power generation, the power consumption volume reduced by 1,695.9 thousand tons of conventional fuel (plan – 8,176.5, actual – 6480.6 thousand tons of conventional fuel). It was planned that coal suppliers would deliver TNF’000 13,544 of coal, while the actual coal shipped to OAO Irkutskenergo HTPP was TNF’000 10,290.6. Coal undersupply to OAO Irkutskenergo HTPP by TNF’000 3,253.4 was due to reduced demand in coal (power and heat generation). The coal shipment volumes requested for 2009 were adjusted based on production program changes, hence the total stock of coal as of 31.12.2009 slightly differed from planned volume (plan – 2,253.1 thousand tonnes, actual – 2,252.7 thousand tonnes). PROCUREMENT ANNUAL REPORT 2009OAO IRKUTSKENERGO 6969

Coal suppliers The main coal suppliers in 2009 were: ОАО SUEK – supplier of Borodinsky coal; ООО Vostsibugol Company – supplier of Azeysky, Mugunsky, Cheremkhovsky, Golovinsky and Irbeysky coals; ООО Krasnoyarskkrai-Ugol Trade– supplier of Pereyaslavsky coal; ООО Irbeisky Razrez – supplier of Irbeysky coal; ООО Trailing– supplier of Zheronsky coal. In 2009 work commenced to assign the functions and the responsibilities for coal transportation to ООО Vostsibugol Company. It was also planned to purchase a car fleet to ensure uninterrupted coal supply to OAO Irkutskenergo HTPP. In 2009, OAO Irkutskenergo continued the optimization of fuel balance and fuel procurement aimed at: 1. Building sufficient fuel stock at HTPP warehouses, allowing for adequate participation in wholesale electricity market. 2. Reducing the cost of coal delivery to HTPP (work with shipping companies (rolling stock owners) on reducing tariff rates). 3. Ensuring regular supply of coal to HTPP from company’s own mines. Rolling stock owners In 2009, the coal delivery to Irkutskenergo CHPP was mainly performed by the following railway operators – owners of rolling stock: OOO Transgarant-Vostok, OOO Metiztrans and OOO Kuzbassenergotrans under contracts with OAO Irkutskenergo. The budget for the year provided for transportation of 7,959 thousand tons of coal in 2009 (59% of the total amount of coal planned for shipment in 2009). Actual tonnage transported was 4,103 thousand (40% of actually shipped coal volume). The reduction of volume of coal transported under the agreement with OAO Irkutskenergo by own or rented cars was due to changed agreement arrangement scheme, conditioning for coal supplier liaising with rolling stock owners. PROCUREMENT 70 Services

2008 2009 Difference y-o-y Indicators Actual RUB000’ % Water 516,361 502,772 -3 Outside power 21,399 25,118 17 Purchased heat power 150,173 366,399 144 Purchased electricity from IESK 542,045 625,641 15 Power transmission services to IESK 0 189,299 Other services 1,964,729 2,031,765 3

In 2009, amid the financial crisis and economic recession, the Company stood before the challenge of reducing and optimizing the cost of production while maintaining a reliable and stable power supply to consumers. Amongst important areas of anti-crisis response was the reduction of the cost of production services. Work has been done to reduce the contract prices and the priorities for operations and volume of provided services have been reviewed. The implemented set of anti- crisis measures, taking into account the specific nature of Company’s operations allowed for significantly reducing the costs. In addition, actions were taken to implement actions of the efficiency improvement program and to reduce the cost of non-core activities of the Company. The cost increase under «Power transmission services to IESK item amounted to RUB 189 299 associated with costs incurred under the contract for power transmission with IESK (electric boiler plants Baikal, Releinaya, Tsymlyanskaya and Bitovaya) and the conclusion of a new contract for the provision of transmission services through medium-head electric power stations 23.September 2009 # DM-09. The increase of the heat purchase volume in 2009 was due to the purchase of heat from JSC BPPM for subsequent sales. The change in the volume of purchased power from IESBK was RUB 83,596 thousand, including (-263,770) due to reduction of volumes and RUB 347,366 thousand due to higher price. PROCUREMENT ANNUAL REPORT 2009OAO IRKUTSKENERGO 7171

Purchase of goods manufactured in Russia

In 2009 OAO Irkutskenergo has taken import substitution measures targeting at increase of procurement of Russian produce, as well implementation of the investment and maintenance programs to ensure operational needs in terms of optimal pricing for products of high quality and stable supply. Thus, the share of goods produced by Russian manufacturers (including equipment, vehicles, etc.) in 2009 purchases rose to 94.80% or RUB 2.304 billion. 01.04.09-31.12.09 01.01.09 - (Following a letter from 2009 31.03.09 Rosimushestvo RUB ‘000 03.04.2009 #GN-13/7796) Goods manufactured in Russia 367,429 1,936,793 2,304,222 Imported goods 25,233 101,078 126 311 Total: 392,662 2,037 871 2,430,533 Share of import 6.43% 4.96% 5.20% Share of Russian manufacturers 93.57% 95.04% 94.80%

OAO Irkutskenergo purchased the following goods of the Russian producers: Main and auxiliary electro technical and thermal equipment and spare parts to them; Fuel and lubricants, fuel oil; Vehicles; Chemicals; Pipes and steel products; Construction and domestic materials; Working clothes and tools. In 2009 OAO Irkutskenergo continued concluding long term and framework contracts with Russian manufacturing plants Direct contracts have been signed with: ОАО CHETRA – industrial vehicles, ОАО Siloviye mashiny, ОАО Uralelektrotyazhmash, ОАО Ashinsky metallurgichesky combinat, ZАО Energomash (Belgorod) – BZEM, ZАО Ural Turbine Plant, ОАО Uralturbo, ОАО Krasny Kotelshik, ОАО Sybenergomash, ОАО Tyazhmash, ZАО Hydroshamservice, ZАО Energy Electronics Institute, OАО Troitsky Mechanical Plant, ООО Krasnoyarsk Boiler Plant, ООО PKP Teploobmennik, ZАО Yuzhuralarmatura - santechnik, ООО Gusar, ООО ChTZ - Uraltruck. PROCUREMENT PROCUREMENT 72

INVESTMENT ACTIVITY ANNUAL REPORT 2009OAO IRKUTSKENERGO 7373

Effective Investment Funds Allocation by Programs RUB 3,254.5 million were earmarked for investment activity in 2009 in the capital construction plan approved by the Board of Directors. In the course of program implementation the plan was reduced by RUB 1,104.4 million for anti-crisis measures (ACM), including: ACM agreed with the EES - 372.8 million RUB, ACM – RUB 731.6 million. Due to the events at the Sayano- Shushenskaya Hydro Power Plant in the 3rd quarter of 2009 additional RUB 167.1 million were included in the plan. The amended plan amounted to RUB 2,317.3 million. Actual investments amounted to RUB 2,132.3 million. Effective investment funds allocation by programs, RUB ‘000 NET OF VAT Capital investments by programs Actual distribution for the period CIP at the № Program start of the Capital Including Volume of CIP at the end period Investments, Constriction Equipment Other works financing of the period total & assembly 1 Development Program 112,506 190,726 21,724 125,550 43,452 83,611 220,018 2 Efficient and profitable projects 2,689,255 593,124 195,813 298,465 98,846 2,058,864 1,213,596 3 Reliability Assurance program 831,749 1,088,082 391,938 562,979 133,165 1,192,263 724,663 4 Regional Administration Program 50,524 17,718 14,531 18,276 50,524 5 Other 66,135 172,723 44,434 69,261 59,028 159,589 77,965 6 Sales 8,265 4,089 1,389 1,164 1,536 11,086 7 Non-industrial 144,956 33,006 2,571 1,022 29.412 29,743 139,986 Total factual for 2009 3,852,866 2,132,274 675,588 1,072,974 383,715 3,535,156 2,426,752 Total factual for 2008 2,088,292 4,492,373 2,204,806 1,549,038 738,529 2,715,589 3,85,866 Changes from 2008 factual 184% 47% 31% 69% 52% 130% 63% Y INVESTMENT ACTIVIT 74

Total investment in 2009 fell by comparison to 2008 by a factor of 2.1 due to anti-crisis activities aimed at reducing the company's credit burden during the financial crisis. The volume of construction in progress at year-end amounted to RUB 2,426 million, 37% less than last year. The main part of the capital investments structure was formed by investment into the reliability assurance program (51% of total investments) and into profitable projects (28%). In addition, implementation of the program aimed at covering the growing electricity consumption deficit (capacity generation program) launched in 2008 continued in 2009. Investments in this area accounted for 9% of the total investment plan.

Investments by Programs RUB ‘000 net of VAT Capital Investments, total Volume of financing № Investment Area Change from Change from 2008 Actual 2009 Actual 2008 Actual 2009 Actual 2008 Actual 2008 Actual 1 Development program 296,188 190,726 -105,462 193,052 83,611 -109,441 2 Profitable projects 2,136,849 593,124 -1,543,725 736,226 2,058,864 1,322,638 3 Reliability Program 1,514,878 1,088,082 -426,796 1,238,719 1,192,263 -46,456 4 Regional Administration Program 0 50,524 50,524 0 0 5 Consumer technical connection program 326,847 -326,847 326,847 -326,847 6 Other 99,614 172,723 73,109 76,280 159,589 83,309 7 Sales 61,438 4,089 -57,349 89,474 11,086 -78,388 8 Non-production 56,559 33,005 -23,554 54,991 29,743 -25,249 TOTAL 4,492,373 2,132,274 -2,360,099 2,715,589 3,535,156 819,567 Y INVESTMENT ACTIVIT ANNUAL REPORT 2009OAO IRKUTSKENERGO 7575

Reliability Assurance program – RUB 1, 088, 1 million (51% of the Capital Investment Plan) The program comprises projects aimed at maintaining reliability of active fixed assets by means of technical re- equipment, modernization and reconstruction. In 2009, as part of the ACM plan the program was streamlined in order to mitigate the Company's risks based on an assessment of the physical condition of the equipment and damage in case of possible risk events. Structure of reliability assurance investments: CHPP equipment reconstruction – RUB 681.1 million; Reconstruction and modernization of HPP equipment – RUB 166.5 million; Heating network reconstruction – RUB 100.5 million 2009 projects deferred due to anti-crisis measures are included in the reliability assurance program for 2010.

Efficient and Profitable Projects Program – RUB 593.1 million (28% of the Capital Investment plan) The program consists of projects aimed at increasing profitability and cost savings for the Company by means of modernization of production facilities, growing heat and electricity markets, production optimization activities. Project profitability evaluation criteria for inclusion into the program are a positive NPV and a discounted payback period of no longer than 7.2 years. Then efficiency and profitability program was reduced by a factor of 3.6 due to suspended implementation of a large profitable Maly Yug project as part of anti-crisis measures. About 70% of investment under this program is aimed at implementation of major projects worth over RUB 100 million, including: runners replacement at Hydraulic Unit 15.18 BHPP (RUB 123.8 million) and replacement runner purchase for Hydraulic Unit 13 (RUB 111.3 million); local railway lines from the Sukhovskaya station to TPH-10 construction project (RUB 182.5 million), 5.51 km of railway tracks have been laid. The CPOP and Efficiency Improvement Program have been completed at RUB 45.3 million Y INVESTMENT ACTIVIT 76

Capacity expansion due to an increase in power consumption coverage program (development program) – RUB 190.7 million (9% of the capital investment plan) A targeted strategic program aimed at increasing the available and installed system capacity to cover the forecast energy deficit linked to the development of industry in the Irkutsk region. The drive to reduce own consumption and to remove CHPP capacity restrictions launched in 2008 was planned to continue in 2009, including: The 2009 plan for the installation of blowers at the PE 580-18 feed pump at CHPP-11 was implemented (RUB 45.3 million); The PT-80 N-ZCHP turbine was reconstructed (RUB 20.4 million); The plan to install a F-6-3,4/0,5-1 blower (R-6-3,4/0,5-1 instead of OK-35 Station 3 at CHPP-12 was implemented (RUB 65.2 million); a modular boiler plant was built in Bratsk. Autonomous gas boiler plant with heat capacity of 5 MW (RUB 22.9 million).

Heat supply to Baykalsk – RUB 50.5 million (2% of the capital investment plan) In the Q4 of 2009 the construction of an electrical boiler and infrastructure facilities for the city of Baykalsk was started following the decree of the Government of Russia and the Irkutsk regional administration due to the planned closure of the BCBK.

Other investments – RUB 172.7 million (8%) The largest share (43%) in this sector was taken by investments in the development of information technologies, including those aimed at the development of specialized software, purchase of licensed software, CNVJ reconstruction, computer and office equipment modernisation (74.6 million RUB). In addition, some asset (heating networks)

acquisition was made in Usolie-Sibirskoe as repayment for accounts receivable for URDZ - RUB 40.4 million (23% of Y the program).

Non-industrial construction Investments of RUB 33 million (2%), including implementation of the housing provision program for young professionals – RUB 26.8 million INVESTMENT ACTIVIT ANNUAL REPORT 2009OAO IRKUTSKENERGO 7777

Investments by Area

Investments by area in RUB ‘000 net VAT

2008 2009 № Sites Difference y-o-y Actual Actual 1 Thermal Power Stations 2,067,219 1,265,579 -39% 2 HPP 559,799 467,060 -17% 3 Heating networks 1,614,276 272,657 -83% 4 Other 194,520 93,973 -52% 5 Non- industrial 56,559 32,905 -42% TOTAL 4,492,373 2,132,174 -53% The bulk of capital investment was traditionally allocated to thermal power stations - 59%. An increase in the share of HPP to 22% was due to the implementation of additional measures to ensure the reliability and safety of HPP incorporated into the plan after the accident at the Sayano-Shushenskaya HPP. The share of heat networks decreased y-o-y and amounted to 13% due to the temporary hold on the Maly Yug project and a deferment of part of heating systems reconstruction to 2010. A total investment reduction in the capital investment plan by 53% compared to 2008 was due to the implementation of the anti-crisis actions plan in 2009.s ITY V ESTMENT ACTI V IN 78

HUMAN RESOURCES AND SOCIAL POLICY ANNUAL REPORT 2009OAO IRKUTSKENERGO 7979

Human Resources Management Human Resources Management in the Company is defined as building an efficient system of managing human resources and developing the team to ensure reliable and efficient operations. To achieve the objectives of the Company’s Human Resources Policy for 2009, the Human Resources Office performed the following tasks: Concluded the OAO Irkutskenergo Collective Agreement for 2009–2011 ; Within the framework of creating the Consolidated Energy and Coal Company, OAO Irkutskenergo transferred the executive management personnel of OOO Vostsibugol to the executive office ofA O O Irkutskenergo; the consolidation of function units resulted in some staff reduction due to the elimination of duplicated functions; Developed and implemented the Action Plan to increase employee satisfaction based on the corresponding survey; In order to implement the project of occupational psycho-physiological support for operating employees, introduced psychological relief rooms at CHPP 10 and N-I CHPP, and allocated funds to purchase required equipment for CHPP 6, CHPP 9, CHPP 11, U-I CHPP and U-I HPP; Within the framework of the project “Talent Pool - National Professionals Team”, implemented jointly with the Edinaya Rossiya political party, conducted the Technical Leadership forum in Siberia; Organized practical on-the-job training in Company branches for students attending the additional training programs at the CTRC Irkutskenergo-IrSTU; and Jointly with the Irkutskenergo Training Center conducted the Efficient Energy Industry conference dedicated to improving the operating efficiency of the energy industry with the participation of Professor Stephen Spear of Harvard

Y Business School and the Massachusetts Institute of Technology. In 2009, the personnel motivation system of the Company focused on personnel performance in the key areas of Company activities. In order to improve the personnel motivation system, the bonus programs are based on key performance indicators, and bonuses are paid on a quarterly basis. For the purposes of seeking additional reserves to increase Company efficiency in the wholesale electric power market by encouraging direct involvement of personnel in team efforts, the Company introduced additional incentives for personnel working in the wholesale electric power market. Starting from 2009, within the framework of the Operations Development project, the Company provided incentives for workgroup participants at its key

HUMAN RESOURCES AND SOCIAL POLIC operating units. 80

Average numbers of staff and monthly wages Parameters 2008 Actual 2009 Actual Difference Average number of staff 8,243 7,723 -520 Average wages (actual, based on COGS report), RUB 30,000 34,387 4387 (+14.6%)

An overall decrease of 520 members of staff in 2009 year-on-year breaks down as follows: On 1 April 2008, СПЛ personnel outsourced to OOO Engineering Center (-17); On 1 October 2008 and 1 August 2009, personnel from Energosbyt outsourced to OOO Irkutskenergosbyt (-443); Reduced staff pursuant to anti-crisis actions (5% of АУП) and under the Staffing Level Optimization Program (-60). A 14.6% increase in the average wages in 2009 year-on-year resulted from the following: (+16.8%) indexation of base salary for job class 1 in accordance with the Industry Salary Agreement, and the quarterly indexation of base salary for the employees of OAO Irkutskenergo to reflect the consumer price index increase in the RF; (+0.3%) increase in staff reduction compensation payments under the Staffing Level Optimization Program; (-2.5%) decrease in the amount of annual performance bonuses. Y HUMAN RESOURCES AND SOCIAL POLIC ANNUAL REPORT 2009OAO IRKUTSKENERGO 8181

Personnel Investments Personnel training and development is necessary in order to achieve consistently high performance and career growth. The Company provides training opportunities to all employees throughout their careers. Over 2009, 4,248 training courses were administered, and 2,785 employees went through the training programs. The actual training costs in 2009 amounted to RUB 43,557,000 against the budget of RUB 54,980,000. Cost savings of twenty per cent were made by cancelling nine intra-corporate workshops and additional training programs administered by educational institutions. There was an 8.2% difference in the actual costs against the same period in 2008. 1. Evaluation training and performance appraisal of the management and experts in hydraulic structures were carried out (85 employees), as well as environmental safety training (61 employees), and occupational health training (172 employees). 2. For the purposes of implementing the Irkutskenergo Production System Development project, 671 employees followed a training course on the Irkutskenergo Production System. 3. The OAO Irkutskenergo Succession Plan was prepared and adopted. Training sessions by leading business trainers started under the Leadership Generation program of succession planning. 4. a corporate program was developed to train managers in the Technical Leadership School, including off-site practical training (5 employees) and management training (12 employees). 5. a planning contest, My Career 2009, was organized for 37 high-potential and high-performance employees in a brand new format. At the final stage of the contest, three prizewinners presented their individual business projects. Y 6. an Efficient Manager program was organized in the Irkutskenergo Training Center for 15 employees. HUMAN RESOURCES AND SOCIAL POLIC 82

Social Policy

Projected social programs are being implemented in accordance with the Collective Agreement settled between the Company management and the Trade Union. Considering the extremely high level of occupational hazards in the energy industry and the unfavorable location of its branches in a zone of emissions of environmentally harmful products, the Company considers safe working conditions, recreational activities for employees and promoting employees’ health to be the highest priorities. As a result, the daily ratio of temporary loss of labor capacity against the total staff in 2009 decreased by 0.17% year-on-year and amounted to 3.19%. By making capital investments in health promotion for employees and their families, the Company ultimately achieves the critical objectives of improving the operating stability of the facilities, reducing the overall sickness rate, decreasing the loss of working time, and saving on overhead expenses related to temporary disability. As a result of capital investments in health promotion, the Company has reduced the rate of lost working time, which amounted to 7.51 days per employee over the year of 2009, a 0.43 day decrease year-on-year. The Company has a system of Voluntary Medical Insurance for employees, which allows the Company to significantly improve social security for its employees. All those who required medical attention went through medical treatment based on agreements with specialized medical treatment facilities. In addition, under the framework of the VMI system, 464 people improved their health at the resorts in 2009 for the total amount of RUB 5.4 million. According to the Company Policy of issuing benefits to purchase resort vouchers for the employees, their families, and retirees, 2,929 people, including 741 children, were provided with partially paid vouchers to the health resorts Electra, Bratskoe Vzmorye, Usolie, Ust-Kut, the resorts Russ, Angara, Belokurikha, Nilova Pustyn, the recreation facilities Zvyozdny, Druzhba, Zama, Zori Kitoya, Energetic (Murino vl.), Baikal (Utulik vl.), and children’s health resorts

Zvyozdny, Druzhba, Orlyonok, and Serebryany Klyuch; RUB 23.6 million were used for these purposes out of the 2009 earnings. Y In accordance with the current Program to provide new employees with housing, 30 apartments were purchased on the secondary housing market for the total amount of RUB 27 million. In order to retain new specialists on the job and in accordance with the current Policy for Providing Housing Premises Rented by OAO Irkutskenergo to New Employees, 88 new employees received rented apartments. OAO Irkutskenergo practices the system of social security for employees and retirees of the Company; targeted material assistance is provided to the disadvantaged families of employees. The Company successfully organizes cultural entertainment programs for employees and their families and takes actions to develop physical education and sports. HUMAN RESOURCES AND SOCIAL POLIC ANNUAL REPORT 2009OAO IRKUTSKENERGO 8383 HUMAN RESOURCES AND SOCIAL POLICY 84

SUBSIDIARIES AND AFFILIATE COMPANIES ANNUAL REPORT 2009OAO IRKUTSKENERGO 8585

As of 31 December 2009, the OAO Irkutskenergo group comprised 28 organizations. OAO Irkutskenergo is the founder of effect of consolidating maintenance affiliates. 22 affiliates and is also associated with four operations: OOO Trade House Irkutskenergotrade, OOO Olkhon, OOO Irbeyskiy Implemented actions to increase equity of OOO Razrez and OOO Trailing through its affiliate, OOO Baikalinvestenergo.A O O Irkutskenergo is also the founder of two non- Irkutskenergo Fire Brigade in order to relieve OAO commercial organizations, Baikal-Energiya Hockey Club and NGNCEI Irkutskenergo Training Center. Irkutskenergo of non-core assets, and to provide affiliates Activities implemented in 2009 to improve the management of affiliated organizations are described below. with an additional source of investments, thus improving Improvement of affiliated companies’ management system cash flow. Organized monthly and quarterly meetings of the Affiliated Companies Balance Committee. The meeting outcomes Worked with a leasing company to minimize leasing were used to set objectives and to give recommendations for the affiliated companies to improve their operations. payments pertaining to the financial leasing agreement for equipment under the investment project DWDM Implemented key performance indicators (KPIs) based on the balanced scorecard approach. by OOO Irkutskenergosvyaz. Minimized the growth of KPI performance of affiliated companies leasing payments. The earnings KPI was 4.5% short (target RUB 11.966 billion, actual earnings RUB 11.427 billion). This was the result of a reduction in the cost of services provided by Irkutskenergo affiliates, other affiliates and third-party customers. The KPI for earnings from third-party customers was exceeded by 4.2% (target RUB 775.449 million, actual earnings RUB 808.384 million). The net profit KPI was exceeded by 15% (target RUB 156 million, actual net profit RUB 179 million), due to the implementation of anti-crisis measures taken by the affiliates in the first and second half-years; costs were reduced by 5% (target RUB 11,624 million, actual costs RUB 11,045 million). The productivity KPI (per employee) was 1% short (target RUB 467.7 thousand per employee, actual productivity RUB 463.7 thousand per employee), due to an overall decline in the amount of services rendered by the affiliates. Critical tasks performed by the Company through working with affiliated companies in 2009 Jointly with affiliates prepared a plan to reduce the overhead costs of affiliates to ensure additional cash inflowA toO O Irkutskenergo. The funds are allocated through the acquisition of OAO Irkutskenergo bills by the affiliates. Implemented an action plan for the project of consolidating maintenance affiliates. Prepared draft estimate for the ILIATE COMPANIES SUBSIDIARIES AND AFFILIATE COMPANIES FF SIDIARIES AND A B SU 86

ENVIRONMENTAL ISSUES ANNUAL REPORT 2009OAO IRKUTSKENERGO 8787

Environmental protection measures have been implemented in accordance with the requirements of environmental legislation. Control over water supply, water disposal, emissions, the release of pollutants into the atmosphere, and waste disposal was performed in accordance with state permits, licenses, and the limits for the disposal of industrial and domestic waste. Emissions into the Atmosphere The permitted limit for the emission of pollutants into the atmosphere in 2009 was established by the state as 390,594.387 tonnes. The actual emissions into the atmosphere came to 249,098.327 tonnes (64% of the permitted limit), which constituted a 16.3% decrease compared to the figures for 2008. This resulted from a 21.8% decrease in the overall consumption of fuel, combined with the weaker quality of the fuel (the weighted average ash content in the fuel as-received increased from 14.0% to 14.2%, and the sulphur[American spelling sulphur] content rose from 0.71% to 0.77%). The volume of pollutant emissions into the atmosphere within the established norms of permissible emissions amounted to 99.98%, and the extra emissions were 0.02%. Water Supply The annual water supply limit (820,093,192 cubic meters) was not exceeded. The total water supply of OAO Irkutskenergo in 2009 amounted to 438,930,200 cubic meters; year-on-year it decreased by 218,143,500 cubic meters (33.2%), resulting from a 33.7% decrease in the CHPP electric power supply and the implementation of water management measures. Water disposal The disposal of waste water in 2009 amounted to 234,619,900 cubic meters, which is 166,091,100 cubic meters (41.5%) less than the actual volume for the previous year. A decrease of 606.701 tones against 2008 was observed in the disposal of waste water, which was a result of the 33.7% reduction in the CHPP electric power supply and the implementation of environmental measures. Domestic and Industrial Waste The total amount of waste in 2009 was 1,532,432.039 tones, including 1,516,300.396 tones of ash waste. A total of 82,341,878.745 tones of ash had been disposed at the ash dumps as at 31 December 2009. Over the year of 2009, 632,947.52 tones of ash waste were utilized (sold to consumers and used for the Company’s own needs), which accounted for 41.7% of the total amount of ash waste. Implementation of Environmental Measures OAO Irkutskenergo carries out its work with a view to minimizing harm to the environment. The overall cost of environmental measures in 2009 equalled RUB 621.392 million, including the following: Current costs: RUB 442.763 million; Capital repair costs: RUB 127.382 million; Investments: RUB 56.067 million. ENVIRONMENTAL ISSUES 88

Investments in Environmental Activities Capital Investments Branch Description of Activity (net of VAT), RUB thousand 2009 Budget 2009 Actual Reconstruction of ash dump with recycling of hydraulic ash disposal 17,230 16,859 Reconstruction of ash pipeline route and primary water 3,476 2,856 Shelekhov Unit, pipelines Novo-Irkutskaya Reconstruction of cable line for the primary water pump 420 420 CHPP station of the ash dump Tank for disposal of ash waste at the ash dump 1,742 1,742 Rehabilitation of the ash dump, map 1 3,350 3,350 Completion of handling unit for issuing fly ash 4,627 4,570 Novo-Irkutskaya CHPP to third-party consumers Expansion of ash dump (ash pattern maps 1–2) 20,100 20,100 Novo-Ziminskaya CHPP Reconstruction of ash dump for disposal of ash and cinders 5,838 5,522

CHPP-6, CHPP-10, N-I CHPP, Improvement of facilities for operating 761 648 U-I CHPP, N-Z HPP environmental monitoring

TOTAL 57,544 56,067

The implementation of measures to improve the reliability and environmental efficiency of environmental equipment ensured compliance of Company operations with the requirements and standards of environmental legislation and avoidance of any accidents which could damage the environment. ENVIRONMENTAL ISSUES ANNUAL REPORT 2009OAO IRKUTSKENERGO 8989 IRONMENTAL ISSUES V EN 90

STANDARDIZATION & STREAMLINING OF BUSINESS PROCESSES ANNUAL REPORT 2009OAO IRKUTSKENERGO 9191

The Company achieved the following main objectives in the sphere of management standardization and To implement a system to control business optimization as set out in the 2009 Business Plan: process efficiency within the Company. Described and standardized the business processes of the Company using the ARIS platform. Developed To analyze and improve key business processes and implemented the operating standard Process-Oriented Management: Management of Business in priority areas. Processes. To develop a unified mechanism for improving Implemented the tool for updating business processes, Process Office, which is based on the software efficiency of business processes and engaging suite ARIS Process Governance, which makes it possible to manage changes in the business processes at all the employee community in the improvements stages, from the initiation of revisions to their implementation. process. Within the framework of improving operating procedures, the Company is implementing the To bring standards into line with the ISO 9000 Irkutskenergo Operating System Development project, aimed at optimizing operations, logistics, requirements; to prepare for the certification of maintenance and equipment repairs from the perspectives of loss prevention, cost reduction, performance electric power supply activity. improvement, quality of work, and equipment reliability, based on the principles of lean production. To expand the Operating System Development Implemented the Engineering Policy and over 20 Operating Standards. project to the entire chain of added value activities, Cost savings resulting from the implementation of fast-payback low-cost activities (TOP Project) from coal mining to supplying electric power and amounted to RUB 48 million. heating power to the consumers.

In order to further optimize and standardize key business and operating processes and to organize the continuous improvement system, the following priority tasks have been set: To develop and integrate business processes at OAO Irkutskenergo and OOO KVSU within the consolidated

energy and coal-mining company. F To develop unified standards for the energy and coal-mining company. To delegate responsibility for the implementation of business processes within the subdivision statutes and job descriptions. STANDARDIZATION & STREAMLINING OF BUSINESS PROCESSES USINESS PROCESSES B STANDARDIZATION & STREAMLINING O 92

LEGAL RELATIONS ANNUAL REPORT 2009OAO IRKUTSKENERGO 9393

In 2009, the Company initiated proceedings for 810 claims for the total amount of RUB 723,367,336.03. This included 748 claims pertaining to the core business (heating power supply) for the recovery of outstanding electric power supply agreement payments in the amount of RUB 586,890,953.60. The court adjudged 768 claims for the amount of RUB 551,725,425.30, and the Company’s claims have been sustained for the amount of RUB 551,571,993.79. All of the adjudged 719 claims pertaining to the core business for the amount of RUB 507,675,993.60 have been sustained. Currently, there are 42 sub judice claims for the total amount of RUB 171,641,910.73. The Company faced legal action regarding 56 claims for the total amount of RUB 364,413,653.35. Out of those claims 27 were adjudged for the total amount of RUB 335,646,123.95. The court sustained claims for the amount of RUB 754,111. Currently, there are 29 sub judice claims for the total amount of RUB 28,767,529.40. LEGAL RELATIONS LEGAL RELATIONS 94

RISK MANAGEMENT ANNUAL REPORT 2009OAO IRKUTSKENERGO 9595

The following measures have been taken in the area of risk management: construction program to increase availability. These The organizational structure of the risk management system has been fully established, to include a collegiate Risk risks are characterized by low probability and significant Committee, the Risk Management Department, and the risk management contacts in all subdivisions and branches. social and politic damage. A merger with the major fuel supplier, OOO Vostsibugol, meant that the risks The stage of identifying and categorizing the Company risks has been completed. More than 800 risks were associated with fuel supply were significantly reduced. identified, with associated damages of RUB 3 million each. The accident at the Sayano-Shushenskaya HPP had a a chart of the most significant Company risks for 2010 was prepared and adopted by the Risk Committee. considerable impact on the general risk exposure of the Charts drawn up of the most significant risks by functional area. Company. The decommissioning of an available capacity Risk charts drawn up for Company branches. of 4.4 GW had a significant effect on the situation Procedure put in place for ranking risk minimization measures in terms of operating services costs for OAO with the energy networks in Siberia, and changed the Irkutskenergo and the investment program of KVSU. balance of electric power production and consumption. The Company’s Risk Management Committee and the Audit Committee under the Board of Directors adopted a plan Key risks for the Company in 2009 are described for revising the budgeting procedure to reflect and approve the use of risk appetite as a business plan parameter. in a table below. Work continued to assess the most significant risks of the Company by functional area. OAO Irkutskenergo is carrying out all the necessary organizational measures to prevent the attachment of It is worth noting that there was a risk growth dynamics identified in 2009. risks. Risk exposure and the probability of adverse consequences for the Company grew due to the deterioration of the general economic situation and, as a result, a decrease in electric power consumption and implementation of the anti-crisis program aimed at cost reduction. There was an insignificant increase in the risks of equipment breakdown as a consequence of the anti-crisis program to reduce equipment availability (maintenance reserves and major Key Risks for the Company Suspended growth of deregulation of the electrical power and capacity market medium RUB 5,600 million Decrease in average annual price of electric power sales by Irkuskenergo at DAM by more than 15% high RUB 900 million Prohibition of the sale of HPP capacities at market prices medium RUB 2,000 million Increase in loan agreement rates over and above the business plan low RUB 288 million RISK MANAGEMENT RISK MANAGEMENT 96

INFORMATION TECHNOLOGY ANNUAL REPORT 2009OAO IRKUTSKENERGO 9797

In the IT sphere, OAO Irkutskenergo proceeded with work in the following areas using the newest information The current level of IT development at OAO Irkutskenergo technologies: based on the ‘patchwork automation’ principle has reached its limit; it is reasonable to implement any The Corporate Computer Network (CCN) was extended, to connect new workplaces to the corporate automated further integration based on the industrial-type, high- systems and to increase the data-handling capacity of its central unit. performance ERP-System within the framework of In order to optimize and unify document management processes and execution control, an electronic document development and implementation of the Corporate management system based on the Documentum platform was prepared for pilot production at OAO Irkutskenergo Management System based on the 1C: Enterprise starting from January 2010. 8.2 platform, which will facilitate the elimination of redundant operations, ensure the completeness and To optimize the centralized planning and use of the Company’s cash resources and the control of financial flows, an reliability of information in order to make timely and Automated System of Treasury-Based Budget Execution (AS TBBE) was implemented at the executive office and in twenty justified management decisions, reduce labor costs affiliated companies. required for double-entry and data verification, utilize Within the framework of developing an Automated System of Equipment Management (the 3rd launch area) an modern work methods and technologies, and promote information system was implemented which enables assessment of the status of equipment and its impact on the the quality and reliability of the Company’s work as a operations, estimation of the probability of commercial availability losses due to potential damages resulting from whole. restricted electric power production in the event of equipment breakdown, prioritization of scheduled maintenance works by using the results of the equipment status assessment, and adjustment of maintenance programs as per the set financing constraints. Within the framework of the Operating System Development project, a 5S Audit System was implemented to introduce and control workplace standards in accordance with the 5S methodology in the branches of OAO Irkutskenergo. Within the framework of developing an Automated System of Procurement Management, an information system was implemented, which enables the execution of purchasing requisitions by the branches and affiliates of Irkutskenergo for OOO Irkutskenergotrade can be tracked, and the progress of requisitions can be monitored. Within the framework of developing an Automated System of Electric power Sales and Consumer Billing pursuant to the RF Government Resolution No. 476, dated 28.06.2008, revisions were made to billing procedures, invoice billing, and accounting for power capacity supplied to the consumers at both regulated and non-regulated prices. In order to automate initial data collection, to consolidate material, heating and electric power balances, to calculate actual, nominal and standard parameters and fuel saving reserves, an Automated System of Cost Performance Y Monitoring (AS CPM) was launched in pilot mode at CHPP-6 and in operation testing mode at Ust-Ilimskaya CHPP and CHPP-10. INFORMATIONTECHNOLOG ORMATIONTECHNOLOGY F IN 98

FINANCIAL AND ECONOMIC ACTIVITIES ANNUAL REPORT 2009OAO IRKUTSKENERGO 9999

The revenue for 2009 increased by 20% year-on-year. The major factor contributing to the increased revenue was the sale of electric power and capacity to RUSAL (in 2008, sales to RUSAL were made through OOO Irkutskaya Retail Supplier). Section 7 contains the profit analysis over the reporting year by consumer structure. The cost of sales in 2009 increased by 13% year-on-year, mostly due to an increase in electric power purchases on the external markets. The slower growth of costs against revenues to some extent resulted from the implementation of anti- crisis activities in reducing semi-fixed costs. 2009 income before tax was RUB 4,807 million. Based on the year-end results, an income tax expense of RUB 1,349 million was accrued at an effective rate of 25%. Net income amounted to RUB 3,590 million with the net income margin of 9.2%. FINANCIAL AND ECONOMIC ACTIVITIES 100

Profitability Ratios Ratio Units 2008 2009 Difference y-o-y Sales margin % 13.4% 18.3% 4.9% Net income margin % 9.5% 9.2% -0.2% Return on assets % 5.7% 5.5% -0.2% Return on equity % 8.9% 8.1% -0.8% Net earnings per share RUB 0.64 0.75 17.4%

In 2009, the sales margin (ratio of gross profit to revenue) increased by 4.9 percentage points y-o-y. An insignificant decrease in other profitability ratios y-o-y stems from the slower growth of gross profit as a result of increasing other costs by the amount of losses from the sales of bought back stock.

Cash Flow Analysis (Indirect Method), RUB mln Item 2008 2009 Difference y-o-y Cash at beginning of year 27.7 671.7 644.0 Cash flow from operations 1,918.4 5,699.3 3,780.9 Retained earnings 2,629.7 3,464.9 835.2 Adjustment for depreciation 1,927.9 2,225.9 297.9 Turnover capital -1,228.4 8.6 2,647.8 Cash flow from investment activities -10,469.0 7,142.1 3,326.9 Fixed assets and construction-in-progress -4,311.3 -1,953.0 2,358.4 FINANCIAL AND ECONOMIC ACTIVITIES ANNUAL REPORT 2009OAO IRKUTSKENERGO 101101

Cash Flow Analysis (Indirect Method), RUB mln Item 2008 2009 Difference y-o-y Long-term financial investments -6,157.7 -5,189.1 968.6 Cash flow from financing activities 9,194.6 1,004.9 -8,189.7 Long-term loans 58.5 10,763.7 10,705.2 Short-term loans 10,313.2 -9,578.5 -19,891.6 Treasury shares -1,359.5 0.0 1,359.5 Accounts payable to the founders 182.4 -180.3 -362.7 Net cash flow 644.0 -437.8 -1,081.8 Cash at end of year 671.7 233.9 -437.8

In 2009, cash flow from Company operations was RUB 5,699 million, including: Net profit totaled to RUB 3,590 million. Pursuant to the resolution of the Annual General Meeting of Shareholders, part of the retained earnings for the previous periods was allocated to pay for sports and recreation activities (RUB 125 million). Cash inflow from the reimbursement of depreciation amounted to RUB 2,226 million. Changes in current assets in 2009 were RUB 9 million.

Cash outflow for investment activities made RUB 7,142 million, including: The Company allocated RUB 1,953 million to the upgrade, reconstruction and capital renewal of fixed assets. Payment in installments (as per agreement) for the acquisition of shares in ZAO Resource service holding amounted to RUB 9,672 million. Repayment of a loan issued to OOO Irkutskenergosvyaz positively impacted the change of cash flows (RUB 5,001 million). FINANCIAL AND ECONOMIC ACTIVITIES 102

Investment activities were financed from cash inflow from operating activities and from raising debt. Changes in debt capital in 2009 totalled RUB 1,005 million. Over 2009, the short-term loans have been re-financed from the long-term loans. A decline in the short-term loans resulted from the repayment of a bonded loan (RUB 5,000 million). A credit portfolio increase (both short-term and long-term) amounted to RUB 6,125 million. The total Company cash outflow for 2009 was RUB 438 million, and the cash balance of the Company’s accounts as at 1 January 2010 was RUB 234 million.

Turnover Indicators Indicator 2008 2009 Difference y-o-y, days Inventory turnover (days) 36 29 -7 Accounts receivable (less than 12 45 44 -1 months) turnover (days) Accounts payable turnover (days) 55 57 +2 Inventory turnover had decreased by the end of 2009 due to a decline in inventories. The turnover indicators for accounts receivable and accounts payable did not change significantly y-o-y and remained within their optimal range. The turnover capital of the Company at the end of 2009 amounted to RUB 8,992 million; it is maintained by the debt financing, including: Short-term loans (RUB 2,956 million). current accounts payable (RUB 6,036 million).

The following changes in turnover capital took place against the beginning of the year: the share of short-term accounts receivable in the current assets increased from 33% to 64%; the share of current liabilities in total Company liabilities decreased from 97% to 43% as a result of the re- financing of short-term loans. FINANCIAL AND ECONOMIC ACTIVITIES ANNUAL REPORT 2009OAO IRKUTSKENERGO 103103

Liquidity Indicators Indicator as at 31.12.2008 as at 31.12.2009 Current ratio 0.71 0.97 Quick ratio 0.56 0.69 Debt to equity ratio 0.57 0.49 Accounts payable to accounts receivable ratio 82% 106% Liquidity indicators increased against the beginning of the year as a result of a decrease in current liabilities due to the smaller share of short-term debt in the total lending portfolio. The debt to equity ratio decreased as a result of an increase in equity for the amount of net profit in 2009 and proceeds from the sale of treasury stock. The accounts payable to accounts receivable ratio increased by 24 percentage points due to the growth of accounts payable. Accounts receivable are fully offset by accounts payable. Generally, the Company’s indicators of profitability, turnover, and liquidity improved against 2008, which is evidence of the financial stability of the Company, both in the short and the long term. FINANCIAL AND ECONOMIC ACTIVITIES 104

Credit Portfolio Analysis Brief lending history of OAO Irkutskenergo, RUB thousands Credit portfolio as Credit portfolio at Creditor bank at 01.01.2009 Receipts Repayments 31.12.2009 ZAO BSZhV 1,652,000 1,375,000 3,027,000 0 ING BANK (EURASIA) ZAO 1,500,000 1,730,000 3,230,000 0 OAO AKB Rosbank 400,000 3,900,000 3,800,000 500,000 GPB Branch (OAO) 3,900,000 11,471,000 10,707,000 4,664,000 AK Sberegatelny Bank RF 0 4,620,000 1,100,000 3,520,000 ZAO GLOBEXBANK 0 2,500,000 0 2,500,000 OAO AKB Sviaz-Bank 0 792,000 0 792,000 OAO TransCreditBank 0 831,000 0 831,000 OAO MFK 0 250,000 0 250,000 FOAO Dalnevostochny Bank 0 350,000 100,000 250,000 OAO ATB 0 250,000 250,000 0 OAO Promsviazbank 0 1,000,000 1,000,000 0 Total: 7,452,000 29,069,000 23,214,000 13,307,000

As at 1 January 2009, the lending portfolio of OAO Irkutskenergo was RUB 7,452 million. The attraction of loans in 2009 was in accordance with the Lending Policy of OAO Irkutskenergo adopted by the Company Board of Directors (Board Meeting Minutes No. 29 (182), dated 06.02.2009). The lending portfolio was increased in 2009 by RUB 5,855 million. The growth of the lending portfolio resulted from the current deficiency of funds to offset the operating expenses of the Company, considering that the electric power sales revenue in the amount of RUB 9,320 million was used to purchase shares in ZAO Resourceserviceholding (ZAO RSH) pursuant to the contracts FINANCIAL AND ECONOMIC ACTIVITIES ANNUAL REPORT 2009OAO IRKUTSKENERGO 105105

No. 097/01, dated 21 September 2009, and No. 097/02, dated 6 October 2009. The purchase of shares in ZAO RSH proceeded according to the resolution of the Board of Directors of OAO Irkutskenergo (Minutes No. 37 (190) of the Board Meeting of OAO Irkutskenergo, dated 21 September 2009). The following lending limits for the total amount of RUB 14,650 million were established over 2009: GPB Branch (OAO) – RUB 300 million allocated to pay for coal and its transportation; period of validity is 1 year. GPB Branch (OAO) – RUB 2,500 million allocated to finance current activities, including capital investments; period of validity is 2 years. Sberbank – RUB 4,000 million allocated to finance current activities and to service debt of other banks; period of validity is 3 years. ZAO GLOBEXBANK – RUB 2,500 million allocated to finance current activities; period of validity is 2 years. OAO AKB Sviaz-Bank – RUB 1,000 million allocated to finance current activities, including capital investments; period of validity is 2 years. OAO Rosbank – RUB 1,000 million allocated to finance current activities, including capital investments; period of validity is 2 years. OAO TransCreditBank – RUB 1,500 million allocated to finance current activities, including capital investments; period of validity is 2 years. OAO Internationa Finance Club (OAO MFK) – RUB 250 million allocated to finance current activities; period of validity is 1 year. OAO Aziatsko-Tikhookeansky Bank (OAO ATB) – RUB 250 million allocated to finance current activities; period of validity is 3 years. FOAO Dalnevostochny Bank – RUB 350 million allocated to finance current activities; period of validity is 1 years. OAO Promsviazbank – RUB 1,000 million allocated to finance current activities; period of validity is 8 months.

Some existing loans have been prolonged: GPB Branch (OAO) – RUB 2,400 million. 4,85% в 2009 году: с 17,60 (01.01.2009) до 12,75% (31.12.2009). The average interest rate for the Lending Portfolio of OAO Irkutskenergo in 2009 was 17.16% per annum, which does not exceed the rate specified in the Company’s Business Plan for

FINANCIAL AND ECONOMIC ACTIVITIES 2009. The average credit rate decreased by 4.85% over 2009, 106

from 17.60% (01.01.2009) to 12.75% (31.12.2009). In 2009, in order to improve financial stability, AO O Irkutskenergo took measures to increase the share of long-term loans in the overall lending portfolio, which by the end of 2009 accounted for 80%. Over the past year, the Company has repaid its obligations for facilities that expired in 2009: RUB 1,800 million in ZAO BSZhV; RUB 1,500 million in ING-Bank; RUB 1,900 million in OAO AKB Rosbank; this was used to partially re-finance a RUB 1,000 million facility; RUB 3,900 million in GPB (OAO); the facilities were re-financed, and the credit limit was raised by RUB 1,300 million. As at 1 January 2009, OAO Irkutskenergo carried a bonded loan issued on 4 December 2008 with maturity until 28 November 2013 and irrevocable offer with maturity until 8 December 2009. In June 2009, the Company bonds were included in Quotation List A, level 2 of the MMVB stock exchange. The Company fulfilled all obligations for the payment of coupon yield (in the amount of RUB 772.9 million) in a timely manner, and for the redemption of bonds in accordance with the terms of the offer. Considering the unstable situation in the Russian finance market, the major tasks for OAO Irkutskenergo in 2010 will be as follows: To reduce the cost of debt; To ensure the uninterrupted financing of the current activities of the Company; To maintain financial stability and lower the risk of insolvency. Within the framework of managing the debt of OAO Irkutskenergo associated with credits and loans, and also with the purpose of achieving the set objectives, the Company Management complemented the Lending Policy of OAO Irkutskenergo for 2010 with the financial tools allowing the diversification of the lending portfolio. The total (consolidated) amount of debt based on the financial performance of the Company (including performance under the debt/EBITDA ratio) and specified in the Lending Policy for 2010 will be restricted to RUB 20,000 million in the first, second, and third quarters, and to RUB 18,000 million at the end of 2010. FINANCIAL AND ECONOMIC ACTIVITIES ANNUAL REPORT 2009OAO IRKUTSKENERGO 107107

Net Profit Allocation The actual allocation profit use in 2009 totalled to RUB 3,057,683 thousand. Irkutskenergo retained net profit allocation in 2009 Table 16.3.1. RUB, k RUB 2,388,970 thousand was allocated in 2009 to working capital financing. The working capital was invested into Item Allocations approved by the Shareholders 2009 Report the operational activity of the Company. General Meeting Runners replacement projects implementation at BHPP, Retained profit from 2008 3,057,886 3,057,683 Maly Yug etc. is in progress. Operational investment Retained profit allocation: allocation in 2009 was RUB 516,916 thousand (Appendix 2). Housing provision program for young professionals Investment 543,916 543,713 aimed at encouraging young professionals relocation to operational 516,916 516,916 remote affiliations envisages acquiring accommodation for young professionals on repurchase terms. The young non-operational 27,000 26,797 professionals support Program in 2009 was funded with Young professionals support program 27,000 26,797 RUB 26,797 thousand. Regional community events 125,000 125,000 Regional community events funding in the amount of RUB 25,000 thousand was made by Working Capital financing 2,388,970 2,388,970 OAO Irkutskenergo within the framework of Agreement on Social and Economic Cooperation in Irkutskenergo retained net profit investment allocation in 2009 Table 16.3.2. RUB, k 2009 between the Irkutsk Oblast Administration and Investment Projects funded from profit 2009 Report OAO Irkutskenergo. Thus, the net profit of 2008 was allocated by the General Investment 543,713 Meeting of Shareholders (Minutes No 23 dated by June 19, operational 516,916 2009) for the use in 2009 as follows: BHPP runners replacement 235,135 investment allocation – RUB 543,713, split into operational investment - RUB 516,916 thousand; Local railway line from the Sukchovskaya Station to CHPP-10 169,377 non-operational investment – RUB 26,797 thousand; Maly Yug N-I CHPP 55,766 regional community events – RUB 125,000 thousand; Pravoberazhny district of Bratsk heating supply transfer to gas-powered heat generating 22,065 working capital financing – RUB facilities Autonomous gas boiler plant with 5MW heat capacity 2,388,970 thousand;

Steam turbine 2 Reconstruction of PT-80 /100-130 St. 2 with replacement of the wheel ITIES 20,436 channels N-Z CHPP V N4 RK Sverdlovskaya heating main - Pravoberezhny N I CHPP 14,137 non-operational 26,797 llocation

A Young professionals support progtram 26,797 rofit P et N INANCIAL AND ECONOMIC ACTI F 108

APPENDICES Appendix 1ANNUAL REPORT 2009OAO IRKUTSKENERGO 109109

OAO Irkutskenergo Balance Sheet as of 31.12.2009

Opening ASSETS Line Code Closing Balance balance 1 2 3 4 1. Non-Current assets Intangible assets 110 Fixed assets 120 32,646,648 33,799,843 Construction in progress 130 3,852,866 2,426,753 Income investments 135 Long-term investments 140 7,411,965 19,811,185 Deferred tax assets 145 421,673 651,329 Other non-current assets 150 Total Section 1 190 44,333,152 5,668,9110 2. Current assets Inventory 210 2,757,351 2,549,190 including: Raw materials, consumables and other similar valuables 211 2,582,014 2,291,255 Animals for breeding and feeding 212 Cost in work-in-progress (distribution costs) 213 Finished goods and goods for re-sale 214 4,132 4,029 Goods in transit 215 Expenses of future periods 216 17,1205 253,906

31.12.2009 including: of Other inventory and Cost 217 as

Value-added tax on purchased assets 220 36,744 30,146 heet S Accounts receivable (due over 12 months after the balance sheet date) 230 552,892 93,383 alance B rkutskenergo 1 OAO I ppendix A 110 Appendix 1

1 2 3 4 Including: Buyers and customers 231 476,103 38,780 Notes receivable 232 Other debtors 235 76,789 54,603 Accounts receivable (due within 12 months of the balance sheet date) 240 4,601,545 5,794,728 Including: Buyers and customers 241 4,018,236 4,721,163 Notes receivable 242 2,064 Advances made 245 320,301 764,144 Other debtors 246 260,944 309,421 Short term investments 250 5,123,783 383,893 Advances made 260 671,746 233,942 Internal settlements 280 Total Section 2 290 13,744,061 9,085,282 BALANCE (sum of lines 190*290) 300 58,077,213 65774392 Opening LIABILITIES Line Code Closing Balance balance 3. Equity and reserves Authorized capital 410 4,766,808 4,766,808 Owned shares purchased from shareholders 411 (3,083,691) (1,229,643) Additional paid-in-capital 420 27,104,562 27,079,099 31.12.2009 of

Capital stock 430 1,191,702 1,191,702 as Including: heet

Reserve funds formed in accordance with legislative requirement 431 596,113 596,113 S Reserve funds formed in accordance with constituent documents 432 595,589 595,589

Retained earnings (loss) of previous years 460 8,809,754 8,710,220 alance B Including: Invested profit 462 4,683,227 5,226,939 Retained earnings (loss) of reporting year 470 3,589,860 Total Section 3 490 38,789,135 44,108,046 rkutskenergo 1 OAO I ppendix A Appendix 1ANNUAL REPORT 2009OAO IRKUTSKENERGO 111111

1 2 3 4 4. Long term liabilities Loans and borrowings 510 10,666,432 Deferred income tax liabilities 515 358,477 455,770 Other non-current liabilities 520 241,976 1,312,887 Total Section 4 590 600,453 12,435,089 5. Short term liabilities Loans and borrowings 610 12,534,804 2,956,323 Accounts payable 620 4,243,078 6,269,776 including: Suppliers and customers 621 2,689,465 1,953,337 Payable to organization’s personnel 622 131,391 137,492 Payable to governmental and non-budgetary funds 623 28,064 26,804 Taxes and duties payable 624 958,876 1,820,545 Other debtors 625 98,436 1,380,701 Notes payable 626 139,482 688,133 Advances received 627 197,364 262,764 Payable to founders 630 184,773 4,447 Deferred income 640 764 711 Reserves for future expenses 650 65,774,392 Other short term liabilities 660 1,724,206

31.12.2009 Internal settlements 680 of

as Total Section 5 690 18,687,625 9,231,257

BALANCE (sum of lines 490 + 590 + 690) 700 58,077,213 65,774,392 heet S alance B rkutskenergo 1 OAO I ppendix A 112 Appendix 2

OAO Irkutskenergo Profit and Loss Statement for 2009

Item Line code For the reporting period y-o-y Operating income and expenditure Sales revenue (gross) from goods, products, work, services (net of VAT, excise tax and similar 010 38,838,475 32,267,285 compulsory charges) including sales of: power 27,713,725 22,295,488 heat 9,701,761 8,298,292 system charge 642,766 573,055 treated water and condensate 244,041 205,624 other services 536,182 894,826 Prime cost of goods, products, works, and services sold 020 (29,587,193) (25,926,735) including : power (17,946,653) (15,982,143) heat (10,365,697) (8,601,909) system charge (527,601) (472,400) treated water and condensate (194,911) (161,557) other services (552,336) (708,726) Gross profit 029 9,251,277 6,340,550 2009 for

Selling expenses 030 (244,163) (176,291) Administrative expenses 040 (1,058,387) (1,122,065) Sales profit (loss) 050 7,948,727 5,042,194 tatement Other income and expenses S oss

Interest income 060 1,196,689 449,531 L and Interest expense 070 (2,574,764) (607,335)

Income from equity in other organizations 080 1,820 rofit P Other income 090 2,196,305 886,575 Other expenses 100 (3,961,683) (1,472,966) Profit (loss) before tax (lines.050+060.070+080+090.100+120.130) 140 4,807,094 4,297,999

Deferred tax assets 141 229,655 101,359 rkutskenergo Profit and other similar compulsory Net profit (loss) of the reporting period (lines 140-150) 150 (1,349,597) (1,282,975)

Net profit (loss) of the reporting period (lines 140-150) 190 3,589,860 3,057,886 2 OAO I ppendix A Appendix 3ANNUAL REPORT 2009OAO IRKUTSKENERGO 113113

Audit Report We have performed an audit of OAO Irkutskenergo (accounting) financial statements for the period from 01.01.2009 ending 31.12.2009.

The (accounting) financial statements of OAO Irkutskenergo consist of: Balance Sheet; Profit and Loss Statement; Appendices to Balance Sheet and Profit and Loss Statement; Notes to Financial Statements. The preparation and presentation of the accounting (financial statements) is the sole responsibility of the executive body of AO O Irkutskenergo. Our responsibility is to express an opinion regarding the accuracy of such statements in all material respects based on the audit performed by us. The work was not aimed to express an opinion regarding the effectiveness of conduct of business by the management. Our opinion may not be considered by any user of the (accounting) financial statements as the expression of going concern opinion on the future activity of OAO Irkutskenergo will remain as going concern in the future.

We have conducted the audit pursuant to: Federal Law “On audit”; Federal Audit Rules (standards); Internal Audit Standards of OOO Finexpertiza. The audit was planned and conducted in such a way as to obtain reasonable confidence in that the (accounting) financial statements do not contain any material misstatements. The audit was conducted on a sample basis and included a test-based review of evidence to confirm figures in financial statements and its disclosure of data on financial and economic activities, an assessment of compliance with accounting principles and rules applied in the preparation of financial statements, a review of the key evaluation indicators obtained by the management of OAO Irkutskenergo, as well as an assessment of the presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient to provide a basis for our audit opinion regarding the reliability of the annual (accounting) financial statements. In our opinion, the financial statements contain a fair presentation, in all material aspects, of the financial position as of 31.01.2009, as well as the financial and business performance for the period from January 01.2009 toD ecember 31.2009, inclusively, in compliance with the requirements of RF legislation to the preparation of financial statements.

03 March 2010 Project manager l. Yu. Makhova Acting on a basis of a Power of Attorney #262-12\09 of 09.12.09 valid until 30.06.2010 eport R Head of audit udit Auditor's qualification on certificate # K 011063 issued on 19.04.1994

3 A for conduction of audit activity in general audit field for unlimited term. ppendix A 114 Appendix 4

Compliance with the Corporate Code of Conduct and Ethics

№ Corporate Code of Conduct and Ethics Status Notes 1 2 3 4 General Meeting of Shareholders Shareholders shall be notified of the General Meeting of Shareholders at 1 least 30 days prior to the date of the Meeting, irrespective of the agenda Comply Charter, Para 9.26 issues, unless the term is longer by law. Shareholders have access to the list of individuals eligible for participa- tion in the General Meeting of Shareholders, starting from the date of 2 notification of the General Meeting of Shareholders to the closure of an Comply Charter, Para 5.1 ordinary General Meeting of Shareholders and to the closing date for ac- ceptance of postal ballots from absentee shareholders Shareholders have access to information (materials) to be submitted in The materials are published on the corpo- 3 preparation for the General Meeting of Shareholders through electronic Comply rate website at www.irkutskenergo.ru, and communications, including the Internet sent to shareholders upon request. Shareholders may propose an agenda issue for a General Meeting of Shareholders or require the convocation of a General Meeting of Share- holders without submitting an abstract from the Shareholders Register 4 if the rights of such shareholders are recorded in the register of share- Comply Charter, Para 5.1 holders. And if the rights of such shareholders are recorded on the depot account, it will be sufficient to submit an abstract from the depot account to exercise the above right The Company’s Charter or internal documents require that the General Director, members of the Board of Directors and Management Board, the Regulations on the Board of Directors, 5 Audit Board, and Auditor of the Company be present at the General Mee- Comply Article 7, Article 27, Para 1; thics

ting of Shareholders E and Candidates shall be present at the General Meeting of Shareholders elec- ting members of the Board of Directors, General Director, members of the Regulations on the Board of Direc- Regulations on General Meeting of Share- 6 Management Board, Audit Board and considering the issue of approval of tors are complied with holders, Article 27, Para 1

the Company’s Auditor onduct C of 7 Internal documents of the Company provide for the registration procedu- Comply Regulations on the General Meeting of re of participants in the General Meeting Shareholders, Section 12 ode C orporate C the

with

ompliance 4 C ppendix A Appendix 4ANNUAL REPORT 2009OAO IRKUTSKENERGO 115115

1 2 3 4 Board of Directors The Company’s Charter establishes the authority of the Board of Directors 8 to approve annual business plans of the Company Comply Charter, Para 10.2 Regulations on the Board of Directors, The Company shall have the Company’s risk management policy approved Article 7; 9 by the Board of Directors Comply Provision on internal control over financial operations The Company’s Charter establishes the authority of the Board of Directors 10 to make a decision on early termination of the powers of the General Di- According to the Charter, the Board of Charter, Para 10.2 rector Directors appoints the General Director The Company’s Charter establishes the authority of the Board of Directors to set qualification requirements and amount of remuneration of the Ge- 11 neral Director, members of the Management Board, and managers of the Comply Comply Charter, Para 10.2 key departments of the Company The Company’s Charter establishes the authority of the Board of Directors 12 to approve the terms and conditions of contracts with the General Director Comply Charter, Para 10.2 and members of the Management Board The Company’s Charter or internal documents require that in approving the terms and conditions of contracts with the General Director (Managing Company, Manager), managers and members of the Management Board, Established practice of corporate 13 the votes of the members of the Board of Directors who are the General Comply behavior Director and members of the Management Board shall not be taken into account thics

E The Company’s Board of Directors includes at least three independent Established practice of corporate 14 directors who meet the requirements of the Corporate Code of Conduct Comply behavior and

15 The Company’s Board of Directors shall not include individuals who have Comply According to established practice, facts been found guilty of economic crimes or crimes against government aut- are revealed during consideration of

onduct hority, hold interests in government service or service in local self-govern- candidates C ments or who have been subjected to administrative sanctions for illegal of actions in business or finance, taxes, collections, or securities markets ode C orporate C the with ompliance 4 C ppendix A 116 Appendix 4

1 2 3 4 Board of Directors The Company’s Board of Directors shall not include individuals who are According to established practice, facts 16 participants, the General Director (Manager), members of a management Comply are revealed during consideration of body or employees of a legal entity competing with the Company candidates The Company’s Charter requires that the Board of Directors be elected by 17 cumulative voting Comply Charter, Para 10.7 The Company’s internal documents require that members of the Board of Directors avoid actions that lead to or potentially may lead to a conflict of Regulations on the Board of Directors, 18 interest between them and the Company and, should such conflict arise, Comply Article 7 disclose this information to the Board of Directors Company internal documents require that members of the Board of Di- rectors notify the Board of Directors in writing about intentions to engage in any transaction involving securities of a company whereof they are Para 4.3. Regulations on Information 19 members of the board of directors or its subsidiary (dependent) compa- Comply Policy nies, as well as provide information about actual transactions involving such securities The Company’s internal documents require that the meeting of the Board Regulations on the Board of Direc- 20 of Directors be held at least once every six weeks tors are complied with Meetings of the Board of Directors during the reporting year be held at In 2009, 12 meetings of the Board of Direc- 21 least once every six weeks Comply tors were held The Company’s internal documents establish procedures for meetings of Regulations on the Board of Directors, 22 the Board of Directors Comply Section 7

23 The Company’s internal documents require that the Board of Directors Comply Charter, Para 10.2 thics approve transactions of the Company involving an amount equal to 10 E and

or more percent of the Company’s asset value, to the exception of routine business transactions onduct C of

ode C orporate C the

with

ompliance 4 C ppendix A Appendix 4ANNUAL REPORT 2009OAO IRKUTSKENERGO 117117

1 2 3 4 The Board of Directors The Company’s internal documents enable the Board of Directors to obtain information from the executive bodies and managers of the departments Regulations on the Board of Directors, 24 required to perform their functions, as well as establish responsibility for Comply Articles 6, 8, 9 failure to provide such information Availability of the strategic planning committee of the Board of Directors or delegating functions of such committee to another committee (with Regulations on the Strategy and Restructu- 25 the exception of the Audit Committee and HR and Remuneration Com- Comply ring Committee mittee) Availability of a committee of the Board of Directors (Audit Committee) 26 that recommends a Company Auditor to the Board of Directors and inter- Comply Regulations on the Audit Committee acts with him/her/it and the Audit The Audit Committee includes only independent and non-executive di- Para 2.4 Regulations on the Audit 27 rectors Comply Comply Committee Para 2.4 Regulations on the Audit 28 An independent director shall manage the Audit Committee Comply Comply Committee The internal documentation of the Company establishes the right of 29 access to any Audit Committee member to any Company document and Comply Regulations on Audit Committee, Para 3.3 information considering the non-disclosure agreement is observed Availability of a committee of the Board of Directors (HR and Remunera- tion Committee) with the functions of determining criteria for selection Regulations on the HR and Remuneration 30 of candidates to the Board of Directors and developing Company remun- Comply Committee eration policy thics E 31 An independent director shall manage the HR and Remuneration Com- Comply Regulations on HR and Remuneration and mittee Committee, Para 5.4 32 The HR and Remuneration Committee shall not include officials of the Comply Regulations on HR and Remuneration Company Committee, Para 5.4 onduct C of ode C orporate C the with ompliance 4 C ppendix A 118 Appendix 4

1 2 3 4 The Board of Directors Availability of the Risk Committee of the Board of Directors or delegating 33 functions of such committee to another committee (with the exception of Committee not established the Audit Committee and HR and Remuneration Committee) Establishment of the Conflict Committee of the Board of Directors or de- 34 legating functions of such committee to another committee (with the Committee not established exception of the Audit Committee and HR and Remuneration Committee) The Corporate Conflict Committee shall not include officials of the Com- The requirement will be taken into account 35 pany in establishing the Audit Committee. The requirement will be taken into account 36 An independent director shall manage the Corporate Conflict Committee in establishing the Audit Committee. The Board of Directors approved Regula- tions on the Budget Committee and Regula- Availability of Company internal documents approved by the Board of Di- tions on the Strategy and Restructuring 37 rectors establishing procedures for formation and operation of committees Comply Committee, Regulations on the Audit of the Board of Directors Committee and Regulations on the HR and Remuneration Committee The Company’s Charter defines the procedure for counting the quorum of 38 the Board of Directors that requires mandatory participation of indepen- Comply Charter, Para 10.11 dent directors in meetings of the Board of Directors 1 2 3 4 Executive board Availability of a collegial executive body (Management Board) of the Com- 39 pany Comply Charter, Para 9.11 thics E and The Company’s Charter or internal documents require approval by the Ma- 40 nagement Board of transactions with real estate, obtaining loans, unless Comply Charter, Para 11.10 such transactions are related to large and routine business transactions onduct C of

The Company’s internal documents establish a procedure for obtaining ag-

41 Comply Charter, Para 10.2 and Para 11.10 ode

reement on operations that go beyond the business plan of the Company C 42 The Company’s executive board shall not include individuals who are par- Comply Charter, Para 11.3 ticipants, General Director (Manager), members of a management body or

employees of a legal entity competing with the Company orporate C the

with

ompliance 4 C ppendix A AppendixANNUAL 4 REPORT 2009OAO IRKUTSKENERGO 119119

1 2 3 4 The Company’s executive board shall not include individuals who have been found guilty of economic crimes or crimes against government aut- hority, hold interests in government or local administration service, or who have been subjected to administrative sanctions for illegal actions in busi- 43 ness or finance, taxes, collections, or securities markets. Should the Mana- Comply According to established practice, facts are ging Company or the Manager perform the functions of the sole executive revealed during consideration of candidates body, the General Director and members of the Management Board of the Managing Company shall comply with the requirements for the General Director and Management Board The Company’s Charter or internal documents prohibit the Managing Com- pany (Manager) from performing similar functions in a competing com- The power of a sole executive body is per- 44 pany or being in any other legal relationship with a company apart from Comply formed by the General Director according to Managing Company (Manager) services the Regulations on the General Director The Company’s internal documents require that executive board avoid ac- Regulations on the Board of Directors, tions that lead to or potentially may lead to a conflict of interest between 45 Comply Section 3; Regulations on the Management them and the Company, and should such conflict arise, disclose this infor- Board, Section 4 mation to the Board of Directors The power of a sole executive body is per- The Company’s Charter or internal documents define criteria for selection 46 The criteria not defined formed by the General Director according of a Managing Company (Manager) to the Regulations on the General Director The Company’s executive board shall report on their work to the Board of Requirement of the Regulations on Regulations on General Director, Para 3.3, 47 Directors monthly the Board of Directors is met Charter, Para 11.11 48 Contracts executed between the Company and the General Director (Ma- Comply Regulations on Insider Information,

thics naging Company, Manager) and members of the Management Board Section 2 E shall establish responsibility for violation of information disclosure clauses and onduct C of ode C orporate C the with ompliance 4 C ppendix A 120 Appendix 4

1 2 3 4 Company Secretary The Company has a special official (Company Secretary) whose function is to ensure that meetings of the Company’s bodies and officials obser- Secretariat of the Board of Directors 49 ve procedural requirements that guarantee the rights of the Company’s was established to meet this shareholders granted by the law requirement Responsibilities of the Secretariat of The Company’s Charter or internal documents establish the procedure for the Board of Directors are regulated; 50 appointment (election) of the Company Secretary and his/her/its respon- Regulations on Secretariat of the sibilities Board of Directors The Company’s Charter establishes requirements for a candidate for the 51 post of Company Secretary No requirements defined Corporate Actions The Company’s Charter or internal documents require that a large transac- 52 tion be approved before execution Comply Charter, Para 10.2

Mandatory involvement of an independent appraiser to estimate the 53 market value of property subject to a large transaction Comply Comply with the existing legislation

The Company’s Charter prohibits any actions to purchase large sharehol- dings of a company that would be aimed at the protection of interests of the executive board (members of these bodies) and members of the Board of Directors, or that would impair the situation of shareholders

54 as compared with the current status (in particular, a prohibition on the No prohibition thics Board of Directors to make a decision before the end of expected period of E

shares purchase to issue additional shares, securities convertible to shares and or securities granting a right to purchase shares of the Company, even if the right to make such a decision is established by the Charter onduct C of 55 The Company’s Charter requires that an independent appraiser be invol- No such requirement

ved in the analysis of the current market value of shares and possible vari- ode ations of their value as a result of takeover C orporate C the

with

ompliance 4 C ppendix A Appendix ANNUAL4 REPORT 2009OAO IRKUTSKENERGO 121121

1 2 3 4 The Company’s Charter does not require that a purchaser offer the share- 56 holders to sell Company ordinary shares in their possession (emission No such requirement securities convertible into ordinary shares) in case of acquisition The Company’s Charter or internal documents require that an indepen- 57 dent appraiser be involved to determine the share conversion rate in case No such requirement Established by current legislation of reorganization as defined by current legislation Information disclosure The Board of Directors approves an internal document defining the rules 58 and approaches of the Company to information disclosure (Regulations on Comply Regulations on the Information Policy the Information Policy) The Company’s internal documents require that information about the purpose of sales of shares, about individuals that intend to purchase shares 59 offered for sale (including large share holdings), as well as information No such requirement about whether top Company officials will participate in purchase of Com- pany shares offered for sale be provided The Company’s internal documents define the list of information, docu- 60 ments and materials to be provided to shareholders to be informed on Comply Charter, Para 13.6-13.8 Regulations on the issues raised at the General Meeting of Shareholders General Meeting of Shareholders, Section 8 The Company shall have a website on the Internet where it provides infor- 61 mation about the Company on a regular basis Comply www.irkutskenergo.ru

The Company’s internal documents require disclosure of information about

thics transactions of the Company with individuals that, according to the Char-

E ter, are a related party to the top officials of the Company, as well as about Regulations on the Information Policy, 62 transactions of the Company with organizations whereof officials directly Comply Para. 4.3 and or indirectly own 20 or more percent of the Authorized Capital of the Com- pany or whereon such individuals may have substantial influence onduct C of

Company internal documents require disclosure of information about Regulations on Insider Information Para 2.2, ode 63 all transactions that may have an impact on the market value of the Comply C Company’s shares Para 4.1, Para 4.2 64 The Board of Directors approves an internal document on use of material Comply Regulations on Insider Information information about the Company’s operations, shares and other securities orporate

C of the Company, and transactions with them that is not to be provided to the wider public and that may have an impact on the market value of the the Company’s shares and other securities of the Company with ompliance 4 C ppendix A 122 Appendix 4

1 2 3 4 Internal audit of processes

The Board of Directors approves procedures of internal audit of processes Regulations on the Audit Board; Regulati- 65 of the Company Comply ons on the Internal Audit Department

Availability of a special unit of the Company ensuring procedures of inter- 66 nal audit (Internal Audit Department) Comply Audit Board; Internal Audit Department

The Company’s internal documents require the Board of Directors to defi- Charter, Article 12 Regulations on the Audit 67 ne the structure and composition of the Internal Audit Department of the Comply Board; Regulations on the Internal Audit Company Department

The Company’s Internal Audit Department shall not include individuals who have been found guilty of economic crimes or crimes against go- 68 vernment authority hold interests in government or local administration Comply According to established practice, facts are service, or who have been subjected to administrative sanctions for illegal revealed during consideration of candidates actions in business or finance, taxes, collections, or securities markets

The Company’s Internal Audit Department shall not include individuals who are members of executive board of the Company or participants, Ge- 69 neral Director (Manager), members of management body or workers of a Comply Charter, Para 12.4

legal entity competing with the Company thics The Company’s internal documents establish time periods for submission E and

to the Internal Audit Department of documents and materials for assess- 70 ment of financial and economic activities, as well as responsibility of of- The time frame is not defined ficials and workers of the Company for failure to submit such documents

on time onduct C

Company internal documents require that the Internal Audit Department of 71 inform the Audit Committee about discovered violations and – in case such Comply Regulations on the Audit Board, Section 6 committee does not exist – the Board of Directors of the Company ode C 72 The Company’s Charter requires that the Internal Audit Department makes The requirement is not defined a preliminary assessment whether an operation not included in the busi- ness plan of the Company is advisable (non-standard operations) orporate C the

with

ompliance 4 C ppendix A Appendix ANNUAL4 REPORT 2009OAO IRKUTSKENERGO 123123

1 2 3 4 Company internal documents establish a procedure for obtaining agree- Regulations on the Board of Directors, 73 ment on a nonstandard operation with the Board of Directors Comply Article 11 The Board of Directors approves an internal document that defines a pro- 74 cedure for auditing business processes of the Company by the Audit Board Comply Regulations on the Audit Board The Audit Committee reviews the Auditor’s report before it is submitted to Regulations on the Audit Committee, Para 75 the shareholders and the General Meeting of Shareholders Comply 3.1 Dividends

The Board of Directors approves an internal document to govern the Board 76 of Directors in accepting recommendations on the size of dividends (Regu- No such provisions lations on Dividend Policy)

Regulations on Dividend Policy establish a procedure for defining the mi- nimum proportion of net profit of the Company to be allocated for paying The requirement will be taken into account 77 dividends and conditions when dividends on preference shares (the size No such provisions when Regulations on Dividend Policy are of which is defined in the Company’s Charter) are not paid or are paid in- adopted completely Publishing data on the dividend policy of the Company and changes the- reof in a periodical defined by the Charter of the Company for publication The requirement will be taken into account 78 of General Meeting of Shareholders notices, as well as on the Company’s when Regulations on Dividend Policy are website on the Internet adopted thics E and onduct C of ode C orporate C the with ompliance 4 C ppendix A 124 Appendix 5

Meetings of OAO Irkutskenergo Management Board I. General Annual Meeting of OAO Irkutskenergo shareholders in 2009 Date: 19.06.2009 Minutes No. 23 AGENDA:

1. approval of the Annual Report of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2008; 2. approval of annual financial statements, including the Income Statement (Profit and Loss Statement) of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2008; 3. distribution of profit of the Irkutsk Open Joint-Stock Company of Energy and Electrification A(O O Irkutskenergo) and approval of the amount, terms, and forms of payment of annual dividends of OAO Irkutskenergo based on its performance in 2008; 4. Election of members of the Board of Directors of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); 5. Election of members of the Audit Commission of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); 6. approval of the auditor of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); 7. approval of the Charter of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo), as amended; 8. approval of the Regulations for the General Meeting of Shareholders of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo), as amended; 9. approval of the Regulations for the Management Board of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo,) as amended.

II. Meetings of the OAO Irkutskenergo Board of Directors in 2009

Date: 06.02.2009 oard

Minutes No. 29 (182) B AGENDA:

1. Concept of the acquisition by the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) of a 100% equity share of the Closed Joint-Stock Company Resourceserviceholding (ZAO Resourceserviceholding). anagement M 2. Statement of Lending Policy of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2009. 3. Payment of accounts receivable with ordinary bills of the Limited Liability Company Usoliekhimprom (OOO Usoliekhimprom).

4. Status of payments of cash to redeem stock from shareholders who demanded redemption of their shares in OAO rkutskenergo Irkutskenergo. OAO I of

eetings 5 M ppendix A Appendix 5ANNUAL REPORT 2009OAO IRKUTSKENERGO 125125

5. Information about the performance of OAO Irkutskenergo in the winter period of 2008–2009. 6. Report by the Director-General of OAO Irkutskenergo on the current financial and economic position (for the fourth quarter of 2008 and for the year of 2008); business operations plan of OAO Irkutskenergo for 2009 in crisis conditions. 7. Guidelines for the preparation of the Energy Saving Program for commercial entities with Government participation.

Date: 03.03.2009 Minutes No. 30 (183) AGENDA:

1. Review of shareholders’ proposals for the agenda of the Annual General Meeting of Shareholders and recommendations for the Board of Directors and Audit Committee of OAO Irkutskenergo; schedule for preparation and organization of the General Meeting of Shareholders in 2009. 2. Status of payments of cash to redeem stock from shareholders who demanded redemption of their shares in OAO Irkutskenergo. 3. Information about the performance of OAO Irkutskenergo in the winter period of 2008–2009. 4. Revisions and amendments to the Lending Policy of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2009.

Date: 08.04.2009 Minutes No. 31 (184) AGENDA:

1. approval of agreement for opening credit facility with Gazprombank (OAO).

Date: 29.04.2009 Minutes No. 32 (185) oard

B AGENDA:

1. approval of Report by the Director-General and Management Board on the Company’s business plan implementation in 2008. anagement 2. Preliminary approval of the Annual Report of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO M Irkutskenergo) for 2008. 3. Preliminary approval of the documents submitted for approval to the Annual General Meeting of OAO Irkutskenergo Shareholders: Balance Sheet, Income Statement (Profit and Loss Statement) of OAO Irkutskenergo. 4. Recommendations for profit distribution, including the amount of dividends for shares in the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) and the terms of their payment based on the performance during rkutskenergo the financial year. OAO I of eetings 5 M ppendix A 126 Appendix 5

5. Candidate for the auditor of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); decision on the remuneration of the auditor’s services. 6. Consideration of draft Charters of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) and internal documents regulating the activities of the management, as amended. 7. approval of agenda for the Annual General Meeting of Shareholders of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 8. approval of draft decisions on the agenda for the Annual General Meeting of Shareholders of Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 9. Calling of the Annual General Meeting of OAO Irkutskenergo Shareholders. 10. Information about payment of accounts receivable with ordinary bills of the Limited Liability Company Usoliekhimprom (OOO Usoliekhimprom) at maturity date of bills (instruction by the Board of Directors of OAO Irkutskenergo pursuant to Minutes No. 29 (182), dated 06.02.2009). 11. Information about negotiations with the management of OAO RUSAL regarding terms of collection of receivables (instruction by Board of Directors of OAO Irkutskenergo pursuant to Minutes No. 29 (182), dated 06.02.2009).

Date: 14.05 – 15.06.2009 Minutes No. 33 (186) AGENDA:

1. Early termination of the powers of the Director-General of OAO Irkutskenergo and early termination of employment agreement. 2. appointment of the Director-General of OAO Irkutskenergo and approval of the terms of the employment agreement. 3. Specification of quantitative composition of the Management Board, early termination of powers, and election of Management Board members of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo).

Date: 03.07.2009 oard

Minutes No. 34 (187) B AGENDA:

1. Election of Chairman of the Board of Directors of OAO Irkutskenergo. anagement 2. Election of Deputy Chairman of the Board of Directors of OAO Irkutskenergo. M 3. Election of Secretary of the Board of Directors of OAO Irkutskenergo. 4. approval of several interrelated transactions for the acquisition of shares in Closed Joint-Stock Company Resourceserviceholding for the amount of over seventy-five million (75,000,000) rubles.

5. approval of transaction for disposal of receivables of OAO Irkutskenergo for the amount of over twenty-five million rkutskenergo (25,000,000) rubles; entering into assignment agreement with EN+POWER HOLDINGS LIMITED.

6. acquisition of securities (bonds) of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO OAO I of Irkutskenergo) and approval of irrevocable offer for the acquisition of bonds of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) based on agreement with their owners. eetings 5 M ppendix A Appendix 5ANNUAL REPORT 2009OAO IRKUTSKENERGO 127127

Date: 14.08.2009 Minutes No. 35 (188) AGENDA:

1. Entering into mortgage agreement with Joint-Stock Commercial Savings Bank of RF (Open Joint-Stock Company) in accordance with sub-clause 27 of clause 10.2 of the OAO Irkutskenergo Charter. 2. approval of transaction for sales and purchase agreement for portable property with the Open Joint-Stock Company System Operator of Unified Energy System (OAO SO EES), with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); estimate of the price of the sold property pursuant to the said agreement. 3. approval of transaction for cooperation agreement with the Open Joint-Stock Company INTER RAO EES (OAO INTER RAO EES) with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 4. Consideration of notes by the auditor of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 5. Revisions and amendments to the Regulations of OAO Irkutskenergo Branch CHPP-6, approved by the Board of Directors of OAO Irkutskenergo (Minutes No. 74, dated 14.10.2000). 6. Revisions and amendments to the Regulations of OAO Irkutskenergo Branch CHPP-9, approved by the Board of Directors of OAO Irkutskenergo (Minutes No. 74, dated 14.10.2000) and the updated version (Minutes No. 13 (139), dated 25.11.2005). 7. approval of the Regulations for Internal Control Procedures for Financial and Economic Activities of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 8. Specification of quantitative and staff composition for the Strategy and Reform Committee of the Board of Directors of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). Appointment of the Chairperson of the Strategy and Reform Committee of the Board of Directors. 9. Election of members of the Audit Committee of the Board of Directors of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). Election of the Chairperson of the Audit Committee of the Board of Directors. 10. Election of members of the Staff and Remuneration Committee of the Board of Directors of the Irkutsk Open Joint- Stock Company of Energy and Electrification (OAO Irkutskenergo). Election of the Chairperson of the Staff and Remuneration

oard Committee of the Board of Directors. B 11. Specification of quantitative and staff composition for the Budget Committee of the Board of Directors of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). Election of the Chairperson of the Budget Committee of the Board of Directors. 12. Performance of the Director-General of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO anagement Irkutskenergo), pursuant to the instructions of the Board of Directors of the Irkutsk Open Joint-Stock Company of Energy and M Electrification (OAO Irkutskenergo); approval of the Energy Saving Program of OAO Irkutskenergo for 2008–2020 (Minutes of the Board Meeting No. 25 (178), dated 24.10.2008). 13. Proposals for implementing potential investment projects in the Sliudiansky District of Irkutsk Oblast. 14. Consideration of information about measures and associated costs required to ensure uninterrupted operation of CHPP OAO Baykalsky TsBK through the upcoming winter season. rkutskenergo OAO I of eetings 5 M ppendix A 128 Appendix 5

Date: 03.09.2009 Minutes No. 36 (189) AGENDA:

1. Consideration of Report by the Director-General and Management Board of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) on the business plan execution by OAO Irkutskenergo in the first six months of 2009. 2. approval of pledge of property of the Electricity and Heat Generation Operating Facility CHPP-9 located in the city of Angarsk, Irkutsk Oblast, to the credit organization on the auction terms in accordance with sub-clause 27, clause 10.2 of the OAO Irkutskenergo Charter. 3. approval of concurrent positions occupied by the Director-General, of OAO Irkutskenergo Sergey Vladimirovich Emdin, at the Boards of Directors of OAO EvroSibEnergo, OOO EvroSibEnergo, OAO Krasnoyarskaya HPP, and OAO OGK-3. 4. Preparation and implementation of heating operations by the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) during the winter period in 2009–2010. 5. Information about listing bonds of OAO Irkutskenergo in the Lombard List of the Central Bank of the Russian Federation (instruction by the Board of Directors of OAO Irkutskenergo, minutes No. 34 (187), dated 07.07.2009). 6. Compliance with priorities of distributing net profit remaining at the disposal of AO O Irkutskenergo. 7. Information about negotiations with the management of OAO RUSAL regarding terms of collection of receivables (instruction by Board of Directors of OAO Irkutskenergo pursuant to Minutes No. 29 (182), dated 06.02.2009). 8. Information about payment of accounts receivable with ordinary bills of the Limited Liability Company Usoliekhimprom (OOO Usoliekhimprom) at maturity date of bills (instruction by the Board of Directors of OAO Irkutskenergo pursuant to Minutes No. 29 (182), dated 06.02.2009). 9. list of items subject to consideration in the Board Meetings of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) in 2009 and 2010 (before the Annual General Meeting of OAO Irkutskenergo Shareholders to be held in 2010). 10. Information about measures required to ensure the uninterrupted operation of CHPP OAO Baykalsky TsBK through the

upcoming winter period (instruction by the Board of Directors of OAO Irkutskenergo, Minutes No. 35 (188), dated 14.08.2009). oard B

Date: 21.09.2009 Minutes No. 37 (190)

AGENDA: anagement M

1. amendments to the decision of the Board of Directors of OAO Irkutskenergo regarding Agenda item 4 of the Board Meeting on 3 July 2009 (Minutes No. 34 (187), dated 07.07.2009), “Approval of several interrelated transactions for the acquisition of shares in Closed Joint-Stock Company Resourceserviceholding for the amount of over seventy-five million (75,000,000) rubles”. 2. Termination of the decision of the Board of Directors of OAO Irkutskenergo regarding Agenda item 5 of the Board rkutskenergo Meeting on 3 July 2009 (Minutes No. 34 (187), dated 07.07.2009), “Approval of transaction for disposal of receivables of OAO Irkutskenergo for the amount of over twenty-five million (25,000,000) rubles; entering into assignment agreement with OAO I of EN+POWER HOLDINGS LIMITED”. eetings 5 M ppendix A Appendix 5ANNUAL REPORT 2009OAO IRKUTSKENERGO 129129

Date: 28.10.2009 Minutes No. 38 (191) AGENDA:

1. Preparation and implementation of plan to create a unified institutional and management structure in the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) and Limited Liability Company Vostsibugol (OOO Vostsibugol). 2. Preparation and implementation of measures aimed at achieving synergy in the financial and economic activities of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) and Limited Liability Company Vostsibugol (OOO Vostsibugol). 3. Financial position of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) considering current encumbrances (including those in the role of a group of companies) at present. 4. Personal liability insurance of members of the management and officials of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 5. Reduction in costs and executive expenses in 2009. 6. approval of transaction for securities sales and purchase agreement with the Limited Liability Company Irkutsk Retail Supplier (OOO Irkutskenergosbyt) associated with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); estimate of the sold property price pursuant to the said agreement. 7. amendments to the decision of the Board of Directors of OAO Irkutskenergo regarding Agenda item six, “Amendments to the decision of the Board of Directors of OAO Irkutskenergo regarding Agenda item seven, “Specification of priority for the Company in entering into the contract for the sale of electricity (purchase and sales of electricity) with Open Joint Stock Company Sibirsko-Uralskaya Aluminum Company (OAO SUAL)” (Minutes No. 25 (178), dated 24.10.2008)” (Minutes No. 28 (181), dated 29.12.2008). 8. amendments to the decision of the Board of Directors of OAO Irkutskenergo regarding Agenda item seven, “Amendments to the decision of the Board of Directors of OAO Irkutskenergo regarding Agenda item eight, “Specification of priority for the Company in entering into the contract for the sale of electricity (purchase and sales of electricity) with Open Joint Stock Company RUSAL Bratsky Aluminum Plant (OAO RUSAL Bratsky Aluminum Plant) (Minutes No. 25 (178), dated 24.10.2008)” oard (Minutes No. 28 (181), dated 29.12.2008). B 9. Information about negotiations with the management of OAO RUSAL regarding terms of collection of receivables (instruction by Board of Directors of OAO Irkutskenergo pursuant to Minutes No. 29 (182), dated 06.02.2009). 10. Preparation and implementation of heating operations by the Irkutsk Open Joint-Stock Company of Energy and

anagement Electrification (OAO Irkutskenergo) during the winter period in 2009–2010.

M 11. Information on measures required to ensure the uninterrupted operation of CHPP OAO Baykalsky TsBK through the upcoming winter period (instruction by the Board of Directors of OAO Irkutskenergo, Minutes No. 35 (188,) dated 14.08.2009). rkutskenergo OAO I of eetings 5 M ppendix A 130 Appendix 5

Date: 03.12.2009 Minutes No. 39 (192) AGENDA:

1. approval of transaction for the surety agreement with the Joint-Stock Commercial Bank National Reserve Bank (Open Joint-Stock Company) (AKB NRBank) associated with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 2. approval of transaction for property sales and purchase agreement with the Closed Joint-Stock Company SibirEnergoTrade (ZAO SibirEnergoTrade) associated with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); estimate of the sold property price pursuant to the said agreement. 3. approval of transaction for agency agreement with the Limited Liability Company Trade House Irkutskenergotrade (OOO TD IETrade) associated with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 4. approval of transaction for addendum No. 4 to agreement No. 096/18, dated 01.01.2008, with the Limited Liability Company Irbeysky Coal Mine (OOO Irbeysky Coal Mine) associated with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 5. approval of transactions with the subsidiaries and affiliated companies of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) associated with purchase interest of OAO Irkutskenergo. 6. Use of partial net profit remaining at the Company’s disposal after 2008. 7. Implementation of investment programs in 2009. oard B anagement M rkutskenergo OAO I of

eetings 5 M ppendix A Appendix 5ANNUAL REPORT 2009OAO IRKUTSKENERGO 131131

Date: 25.12.2009 Minutes No. 40 (193) AGENDA:

1. approval of the Business Plan of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 2. Specification of the Lending Policy of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) for 2010. 3. approval of transaction for securities sales and purchase agreement with the Limited Liability company Baykalinvestenergo (OOO Baykalinvestenergo) associated with purchase interest of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo); estimate of the sold property price pursuant to the said agreement. 4. approval of Cost Reduction Program of the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo). 5. Preparation and implementation of heating operations by the Irkutsk Open Joint-Stock Company of Energy and Electrification (OAO Irkutskenergo) during the winter period in 2009–2010. 6. Information on measures required to ensure the uninterrupted operation of CHPP OAO Baykalsky TsBK through the upcoming winter period (instruction by the Board of Directors of OAO Irkutskenergo, Minutes No. 35 (188), dated 14.08.2009). oard B anagement M rkutskenergo OAO I of eetings 5 M ppendix A 132 Appendix 6

Interested-Party Transactions Approved by the Management of OAO Irkutskenergo in 2009

Pursuant to the decision by the Board of Directors of OAO Irkutskenergo (Minutes No. 35 (188) dated 14.08.2009), the following Company’s transactions were approved and had proprietary interest by E. V. Dod, Member of the Board of Directors of OAO Irkutskenergo:

№ Counterparty Subject Contract price 1 2 3 4 OAO Irkutskenergo shall transfer into ownership by OAO SO EES a Siemens HiPath Three million nine hundred and sixty- 1 OAO SO EES 4000 telephone station, and OAO SO EES shall accept it and pay for it according to seven thousand, one hundred and sixty the contract (3,967,160) rubles, VAT inclusive (18%) The Parties agreed to cooperate according to the terms and provisions of the

agreement in following areas: Forecasting market dynamics for the wholesale 2009 in

electricity (capacity) market of the Russian Federation. Preparation of long-term bilateral contracts for supply of electric power. Development of new trade tech- nologies and the joint operations in streamlining the regulatory framework of the wholesale electricity (capacity) market of the Russian Federation. Within the Agreement framework the Parties agreed to investigate feasible opportunities for 2 OAO INTER RAO EES cooperation in other areas and to take specific measures for such cooperation if - it is found feasible for both Parties. The Parties agreed to carry out work with a rkutskenergo purpose of identifying methodology and assessing economic efficiency of ente-

ring long-term contracts for the supply of electricity. The Parties agreed that the OAO I of cooperation of the Parties can take various forms that correspond to the subject of the Agreement. Specification of separate details of the cooperation forms will be fixed in addenda, separate agreements, contracts, and minutes concluded by the Parties in pursuance of the Agreement anagement M the y b Pursuant to the decision by the Board of Directors of OAO Irkutskenergo (Minutes No. 39 (192) dated 03.12.2009), the following transactions concluded by OAO Irkutskenergo with the companies included into the same group of entities have been approved as transactions associated with proprietary interest: pproved A

1) Register of transactions between OAO Irkutskenergo and the Limited Liability Company Centralized Energy Maintenance Firm (OOO TsERF) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 133133

Other essential conditions Other № Subject of transaction Transaction price (VAT incl.) /estima- п/п tion method Work schedule Method of contractor selection No. of contract 1 2 3 4 5 6 Standard repairs of turbine generators 1–8, repairs of HME, RUB 1,677,600.1, incl. VAT RUB From effective date of No contest, specialized works Addendum 1 to 1 maintenance of turbine department 255,905.1 / Calculation addendum through to ensure reliability of main Contract No. 35-09-0 (CHPP-11) 31.12.2009 equipment dated 26.02.2009 Standard repairs of boiler units 1–9, From effective date of No contest, specialized works Addendum 1 to 2 repairs of HME, maintenance of RUB 4,568,626.06 incl. VAT RUB addendum through to ensure reliability of main Contract No. 34-09-0 boiler department (CHPP-11) 696,891.06 / Calculation 31.12.2009 equipment dated 27.02.2009 From effective date No contest, specialized works 3 Mid-life repairs of boiler unit 6 (N-I RUB 3,292,200, incl. VAT RUB 502.200 of contract through to ensure reliability of main Contract No. 10-09 CHPP) / Calculation 24.11.2009 equipment 2009

in From effective date 4 Burner cleanup of boiler unit 2 (N-Z RUB 316,785.16, incl. VAT RUB of contract through RFQ Contract No. 84-09П CHPP) 48,323.16 / Bidding 31.12.2009 From effective date 5 Repairs of boiler unit 3 with acid RUB 453,977.86, incl. VAT RUB of contract through RFQ Contract No. 85-09П wash (N-Z CHPP) 69,250.86 / Bidding 31.12.2009 rkutskenergo Emergency work and repairs to eli- From effective date No contest, emergency works to OAO I 6 minate defects of heating network RUB 49,560,000 incl. VAT RUB of contract through provide reliable heating supply to Contract No. 26

of 7,560,000 / Calculation (N-I CHPP) 31.12.2009 consumers From effective date No contest, emergency works to 7 Emergency repair of heating RUB 24,780,000 incl. VAT RUB of contract through provide reliable heating supply to Contract No. 27 network (N-I CHPP) 3,780,000 / Calculation 31.12.2009 consumers anagement M Repairs to eliminate defects of RUB 2,360,000 incl. VAT RUB 360,000 From effective date No contest, specialized works

the 8 / Calculation using adjustments of contract through to ensure reliability of main Contract No. 28

y equipment (N-I CHPP)

b adopted by OAO Irkutskenergo 31.12.2009 equipment

RUB 47,200,000 incl. VAT RUB From effective date No contest, specialized works 9 Emergency repair of heating 7,200,000 / Calculation using adjust- of contract through to ensure reliability of main Contract No. 29 network (N-I CHPP) ments adopted by OAO Irkutskenergo 31.12.2009 equipment pproved A Repairs of pulverizing system with RUB 826,000 incl. VAT RUB 126,000 From signing date 10 hammer mill (N-I CHPP) / Bidding through 31.12.2009 Bidding contest, mark down -7% Contract No. 149-09 ransactions yT art -P nterested 6 I ppendix A 134 Appendix 6

1 2 3 4 5 6 Installation of scaffolding, cleanup and flaw inspection during repairs of the boiler unit БКЗ-420-140-6, RUB 330,993.54 incl. VAT RUB From 27.09.2009 No contest, specialized works Contract No. 98- 11 station 2; capital repairs of auxiliary 50,490.54 / Calculation using adjust- through 23.10.2009 to ensure reliability of main 09-П equipment in boiler department ments adopted by OAO Irkutskenergo equipment (N-Z CHPP) Flaw detection of high-pressure pre-heaters 5, 6, 7 of the turbine RUB 394,642.74 incl. VAT RUB From 01.10.2009 No contest, specialized works Contract No. 95- 12 generator ПТ-80-130/13 station 1 60,199.74 / Calculation using adjust- through 22.10.2009 to ensure reliability of main 09-П (N-Z CHPP) ments adopted by OAO Irkutskenergo equipment RUB 435,627.86 incl. VAT RUB No contest, specialized works 13 Equipment cleanup of the boiler unit 66,451.68 / Calculation using adjust- From 10.09.2009 to ensure reliability of main Contract No. 96- БКЗ-420-140-7 station 4 (N-Z CHPP) ments adopted by OAO Irkutskenergo through 25.09.2009 equipment 09-П Installation of scaffolding and flaw RUB 302,107.14 incl. VAT RUB No contest, specialized works 2009

inspection during repairs of the From 01.09.2009 Contract No. 97- in 14 boiler unit БКЗ-420-140-7 station 4 46,084.14 / Calculation using adjust- through 25.09.2009 to ensure reliability of main 09-П (N-Z CHPP) ments adopted by OAO Irkutskenergo equipment Installation of temperature control gauges in the bearing casings of RUB 172,280 incl. VAT RUB 26,280 / From effective date Bidding contest, mark down 15 vertical condensate pumps (ТОП Bidding of contract through -13.72% Contract No. 160-09-Д program) 31.12.2009 rkutskenergo

Maintenance service of the facility From effective date of OAO I

in the Novo-Irkutskaya CHPP branch RUB 1,003,000 incl. VAT RUB 153,000 Bidding contest, mark down of 16 of OAO Irkutskenergo: upgrade of / Bidding addendum through 46.4% Contract 152-09 Releynaya booster station 31.12.2009 Maintenance service of the facility in the Novo-Irkutskaya CHPP branch of RUB 472,000 incl. VAT RUB 72,000 / From effective date 17 of contract through Bidding contest, mark down 8% Contract 153-09 anagement

OAO Irkutskenergo: upgrade of Karl Bidding M Liebknecht booster station 31.12.2009 the y

Maintenance service of the facility b in the Novo-Irkutskaya CHPP branch RUB 354,000 incl. VAT RUB 54,000 / From effective date 18 of OAO Irkutskenergo: upgrade of Bidding of contract through Bidding contest, mark down 7.3% Contract 154-09 Topkinskaya pump station 31.12.2009 pproved

Maintenance service of the facility A in the Novo-Irkutskaya CHPP branch RUB 413,000 incl. VAT RUB 63,000 / From effective date 19 of OAO Irkutskenergo: upgrade of Bidding of contract through Bidding contest, mark down 5.7% Contract 155-09 Markovo turbine pump station 31.12.2009 Maintenance service of the facility in the Novo-Irkutskaya CHPP branch RUB 767,000 incl. VAT RUB 117,000 From effective date Bidding contest, mark down ransactions 20 of contract through Contract 156-09 yT of OAO Irkutskenergo: upgrade of / Bidding 31.12.2009 47.7% Botanichesky Sad pump station art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 135135

1 2 3 4 5 6 Repairs of ladders and platforms at From effective date 21 Shelekhov area of Novo-Irkutskaya RUB 448,400 incl. VAT RUB 68,400 / of contract through Bidding contest, mark down 5% Contract 163-09 CHPP Bidding 31.12.2009 RUB 41,373.70 incl. VAT RUB 6,311.14 From effective date No contest, specialized works 22 Repairs of wagon tipper vibrators at / Calculation using adjustments of contract through to ensure reliability of main Contract 164-09 Novo-Irkutskaya CHPP adopted by OAO Irkutskenergo 31.12.2009 equipment RUB 418,900 incl. VAT RUB 63,900 From effective date No contest, specialized works 23 Repairs of ММТ of boiler unit sta- / Calculation using adjustments of contract through to ensure reliability of main Contract 161-09 tions 1–4 at Novo-Irkutskaya CHPP adopted by OAO Irkutskenergo 31.12.2009 equipment RUB 424,800 incl. VAT RUB 64,800 From effective date No contest, specialized works 24 Repairs of steam and water blowers / Calculation using adjustments of contract through to ensure reliability of main Contract 166-09 at Novo-Irkutskaya CHPP adopted by OAO Irkutskenergo 31.12.2009 equipment Repairs of pumps in boiler depart- RUB 212,181.70 incl. VAT RUB From effective date No contest, specialized works 2009 25 ment of Novo-Irkutskaya CHPP 32,366.70 / Calculation using adjust- of contract through to ensure reliability of main Contract 165-09 in ments adopted by OAO Irkutskenergo 31.12.2009 equipment

2) Register of transactions between OAO Irkutskenergo and OOO TsERF subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo rkutskenergo № Subject of transaction Amount (limit) Other essential conditions Comments OAO I of

1 2 3 4 5 1 Sales and purchase of bills of 6,606,000 Due date of OAO Irkutskenergo bills is on demand. OOO TsERF will purchase OAO Irkutskenergo Schedule for transferring funds from OOO TsERF to OAO Irkuts- four bills kenergo:

anagement 1,000,000 – September 2009;

M 1,500,000 – October 2009; 2,000,000 – November 2009; the y 2,106,000 – December 2009. b OAO Irkutskenergo within two (2) working days after the transfer of funds shall write a bill for the transferred amount and hand it over to pproved OOO TsERF based on delivery-acceptance certificate. A ransactions yT art -P nterested 6 I ppendix A 136 Appendix 6

3) Register of transactions between OAO Irkutskenergo and the Limited Liability Company Engineering Center Irkutskenergo (OOO ITs Irkutskenergo) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo

Other essential conditions Other № Subject of transaction Transaction price (VAT incl.) /estima- tion method Work schedule Method of contractor selection No. of contract 1 2 3 4 5 6 Conduct appraisal of conceptual design for the facility Ash and Slag RUB 41,072.15 incl. VAT (18%) RUB From signing date Contract No. 87- 1 Waste Site of Novo-Ziminskaya CHPP 6,265.24 / Calculation using adjust- of contract through No contest, specialized works ИЦ/09 (N-Z CHPP) ments adopted by OAO Irkutskenergo 31.10.2009 2 Reconstruction of control system for RUB 10,502,000 incl. VAT (18%) RUB From signing date of Bidding contest, mark down – Contract No. 98-

boiler unit station 1 (CHPP-9) 1,602,000 / Bidding contra 21.83% ИЦ/09 2009 in

4) Register of transactions between OAO Irkutskenergo and OOO ITs Irkutskenergo subject to approval as

transactions associated with proprietary interest of OAO Irkutskenergo rkutskenergo

№ Subject of transaction Amount (limit) Other essential conditions Comments OAO I of 1 2 3 4 5 Development of design for the Total cost of services The works commence as of the signing date of contract. Staged Services contract No. 88-ИЦ/09 standards of forming and limits of rendered as per completion of rendered services is outlined in design schedu- with Irkutskaya CHPP branch disposal of wastes for the Irkutskaya the contract is RUB le (Appendix 2), which is an integral part of the contract. The of Irkutskenergo anagement

HPP branch of OAO Irkutskenergo. 406,868.50, including payment will be made on each stage, within 15 days after the M 1 Monitoring of design approval by the VAT 18% at RUB Contractor and the Customer signed the delivery and acceptance the

Irkutsk Interregional Department of 62,064.69 certificate for services rendered and the documents are handed y b Technological and Environmental over as per clause 5.1 of the Contract. Supervision pproved A ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 137137

1 2 3 4 5 The Custodian shall accept into cu- Remuneration shall be The asset will be handed over until claimed by the Depositor. Custody contract No. 38-ИЦ/р- stody, ensures safekeeping of the paid to the Custodian 09 with Novo-Ziminskaya property, return it in proper condi- after the custody term CHPP branch of OAO Irkuts- tion, and bear responsibility for its in the amount of RUB kenergo. loss, deficiency, or damage, and the 167 for each day of Depositor shall accept back its pro- custody. perty upon expiration of the custody term specified in the contract, reim- 2 burse to Custodian the safekeeping expenses, and pay remuneration. The custody shall cover materials and equipment supplied under the contract З/ОКС-09 dated 16.07.09, based on the material assets delivery and acceptance certificate A( ppendix 2009 1), which is an integral part of the in contract. The Contractor shall perform as Total cost of Works is The Custodian shall return the asset turned in for custody at the Contract No. 96-ИЦ/09 per the Customer’s assignment the RUB 1,098,270.95, first request of theD epositor and in condition it was accepted ba- with CHPP-6 branch of OAO works of test burning Pereyaslavsky including VAT (18%) sed on the return inventory, which is an integral part of the con- Irkutskenergo and Irbeysky coals in the boiler unit RUB 167,532.86 tract. The Depositor within thirty (30) working days after signing rkutskenergo БКЗ-320-140ПТ station 6 of CHPP-6 the return inventory for assets turned in for custody shall pay to 3 branch of OAO Irkutskenergo (her- Custodian remuneration as per article 5 of the contract.

OAO I einafter – “the Works”) and submit of their results to the Customer, and the Customer shall accept the results of the Works and pay for them. anagement M the y b pproved A ransactions yT art -P nterested 6 I ppendix A 138 Appendix 6

1 2 3 4 5 4 The Contractor shall perform as Total cost of Works is Payment for the Works will be based on the invoice and made Contract No. 89-ИЦ/09 per the Customer’s assignment the RUB 345,740 including within 45 calendar day after the parties sign the acceptance act with CHPP-6 branch of OAO works of test burning Zheronsky VAT (18%) RUB 52,740 for the performed Works, by transferring funds to the bank ac- Irkutskenergo and Irbeysky coals in the boiler unit БКЗ-320-140ПТ station 6 of CHPP-6 count of the Contractor specified in the Contract. The Works shall branch of OAO Irkutskenergo (her- be completed from the signing date of the Contract by 30 Novem- einafter – “the Works”) and submit ber 2009. their results to the Customer, and the Customer shall accept the results of the Works and pay for them. 5 The Contractor shall render services The total cost of Payment procedure as per the contract: - The Customer will Paid services contract with to ensure commissioning of the pa- services rendered by make advance payment in the amount of 20% of the total cost of OAO Irkutskenergo ckaged boiler plant in Bratsk city on the Contractor under services as per clause 3.1 of the Contract; the Customer will make the terms specified in the contract, the contract is RUB the final payment based on the invoice by transferring funds to 2009 in

and the Customer shall accept and 2,201,870 including the bank account of the Contractor within 30 days after signing pay for such services. The Services VAT 18%. the delivery and acceptance certificate for services rendered. The will be rendered in accordance with Contractor shall render services in accordance with the Scope of the specifications of SoW set forth in Works, the Schedule, and the terms of the contract. The Contract Appendix 1, which is an integral part shall enter into force since the signing date and expire on 15 Fe-

of the contract. bruary 2010. The contract covers relations between the parties rkutskenergo occurred after 17.08.2009. OAO I

6. The Contractor shall perform the The total cost of Works The Works will be paid based on the invoice within 45 calendar Contract No. 80-ИЦ/09 with of

work on the safety appraisal of the will be included in the days after the parties sign the acceptance certificate for the Works CHPP-10 branch of OAO pipelines at CHPP-10 of OAO Irkuts- Estimate (Appendix 2) performed, by transferring funds to the bank account of the Con- Irkutskenergo kenergo in accordance with the and amounts to RUB tractor specified in the Contract. The Works shall be performed

Scope of Works by the Customer (Ap- 1,026,600 including from the signing date by 31.10.2009. anagement pendix 1) and the estimate agreed VAT 18% RUB 156,600 M

upon by the parties (Appendix 2) the y b 7. The Contractor shall render services The estimated cost Terms of rendering services: Commencement: from the signing Contract No. 47-ИЦ/09 for conditioning thermal insulation of services is RUB date of the contract; Completion: 31 December 2009 of equipment at CHPP-12 branch of 390,000 including pproved

OAO Irkutskenergo. VAT 18% A ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 139139

5) Register of transactions between OAO Irkutskenergo and the Limited Liability Company Irkutskenergosviaz (OOO IESV) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo

№ Subject of transaction Amount (limit) Other essential conditions Comments 1 2 3 4 5 Addendum to the contract No. 1091 RUB 73,684,000 annu- Increase of subscription fee by 1 dated 01.01.2004 for the services of ally as per addendum - RUB 7,122,000. local telephone communications

6) Register of transactions between OAO Irkutskenergo and the Limited Liability Company Fire Brigade Irkutskenergo (OOO PO Irkutskenergo) subject to approval as transactions with proprietary interest of OAO Irkutskenergo 2009 in № Subject of transaction Amount (limit) Other essential conditions Comments 1 2 3 4 5 The subject of the contract is performance of works by OOO Fire Brigade Irkutskenergo for OAO Irkutskenergo in fireproofing of The Works will be perfor- 1 wooden roofing with the area of 2,593 sq.m to comply with RUB 86,511.70 including 18% VAT med within 7 working days Works contract No. 15- rkutskenergo Group 2 of fireproof strength at the site of the Customer, Buil- RUB 13,196.70 after the signing date of ПМ\09 dings 1 and 4 of the Executive Office ofA O O Irkutskenergo (3 the Contract.

OAO I Sukhe-Bator St., Irkutsk city). of The subject of the contract is the paid training in fire safety ba- sics administered to the employees of OAO Irkutskenergo (UTS Training site: Usolie- Training agreement for 2 CHPP-11) in categories “persons responsible for fire safety of the RUB 15,688.10 including 18% VAT Sibirskoye city, CHPP-11 fire safety basics No. operation” (15) and “managerial, support personnel, other spe- RUB 2,393.10 (fire brigade). 58-ПТМ/09 anagement cialists, clerks, and labor (other than labor engaged in welding

M and other hot works)” (1). the The subject of the contract is the paid services in protecting Contract for rendering y b available to the Customer information, which constitutes state RUB 7,913.52 including 18% VAT RUB services in protecting 3 secret, and its data carriers in accordance with current laws and 1,207.16 per quarter - data, which constitutes other regulations of the RF that define the secrecy. state secret

pproved 4 The subject of the contract is the performance of repair works The total cost of repair works is RUB Final deadline for the Contract No. 16-ПМ/09, A to eliminate defects of buildings and structures: repairs of auto- 271,400 including 18% VAT RUB works performance is 15 performance of works in matic fire alarm and security alarm at the checkpoint building of 41,300 October 2009 defects elimination CHPP-11 for CHPP-11 branch of OAO Irkutskenergo ransactions yT art -P nterested 6 I ppendix A 140 Appendix 6

7) Register of transactions between OAO Irkutskenergo and the Limited Liability Company Angarskaya Heating Sales Company (OOO ATSK) subject to approval as transactions with proprietary interest of OAO Irkutskenergo № Subject of transaction Amount (limit) Other essential conditions Comments 1 2 3 4 5 Due to exclusion and addition OAO Irkutskenergo and OOO ATSK agreed to amend Ap- of heating supply loads in resi- pendices No. 1, 2-1, 2-2, 2-4, 2-5, 2-15, 3, 3-1, 3-2, 3-10, Estimated cost of heating dential houses, an addendum 3-11, 3-15, 3-16, 3-17, 2-17 to the Contract for purchase power sold to the Buyer No. 12 needs to be concluded 1 and sales of heating power in hot water No. 2783 dated as per the contract is RUB - with the contract for purchase 01.01.2008 by setting them as per the corresponding 1,180,126,629.56 and sales of heating power Appendices No. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, in hot water No. 2783 dated and 15 to the Addendum. 01.01.2008

Due to transfer of personnel

Obligations of the parties as per the Con- from Energosbyt branch of 2009 in tract occurred before 00:00 on 01.08.2009 OAO Irkutskenergo to OOO shall be performed by the Previous Con- Irkutskenergosbyt it is required OAO Irkutskenergo and OOO ATSK agreed, effective 1A u- tractor and the Customer; obligations to conclude an agreement on 2 gust 2009, to replace the Party to the Contract from the RUB 312,432 occurred on or after 00:00 on 01.08.2009 party replacement with the Previous Contractor to the New Contractor shall be performed by the New Contrac- contract dated 01.11.2007 tor and the Customer. The New Contractor for paid services of accepting shall be referred to as the Contractor in the (collecting) payments for rkutskenergo text of the Contract. consumed heating power from legal entities. OAO I of

anagement

8) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company Baykalenergo M

(ZAO Baykalenergo) subject to approval as transactions associated with proprietary interest of OAO the y b Irkutskenergo № п/п Subject of transaction Amount (limit) Other essential conditions Comments pproved

1 2 3 4 5 A Addendum No. 3 to the contract of use and ownership Total amount of rental dated 24.12.2007. Transfer for use and ownership by payment for 11 months Increase of rental payment by 1 OAO Irkutskenergo of the turbine pump station at 20A is RUB 123,929,850 (RUB - RUB 3,218,955

Kasyanov Street 11,266,350 per month) ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 141141

9) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company Spetsenergoremont (ZAO Spetsenergoremont) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo

Other essential conditions Other № Subject of transaction Transaction price (VAT incl.) /estima- tion method Work schedule Method of contractor selection No. of contract 1 2 3 4 5 6 From 10.07.2009 1 Maintenance of low-pressure control RUB 1,080,827 incl. VAT RUB through No contest, specialized works to ensure Contract No. 68- of turbine sets 5, 6, 8 (CHPP-10) 164,826.18 / Calculation 16.11.2009 reliability of main equipment ОР-10 From 10.07.2009 2 Equipment maintenance of turbine RUB 649,374.06 incl. VAT RUB through No contest, specialized works to ensure Contract No. 71- set 8 (CHPP-10) 99,057.06 / Calculation 10.09.2009 reliability of main equipment ОР-10 From 10.07.2009 2009 3 Maintenance of brickwork of boiler RUB 573,652.28 incl. VAT RUB through No contest, specialized works to ensure Contract No. 72- in units 15, 16 87,506.28 / Calculation 10.09.2009 reliability of main equipment ОР-10 From 11.07.2009 4 Maintenance of accessories of boiler RUB 485,719.86 incl. VAT RUB through No contest, specialized works to ensure Contract No. 73- units 13, 14 (CHPP-10) 74,092.86 / Calculation 31.10.2009 reliability of main equipment ОР-10 From 10.08.2009 rkutskenergo 5 Maintenance of accessories of boiler RUB 486,477.42 incl. VAT RUB through No contest, specialized works to ensure Contract No. 74- units 15, 16 (CHPP-10) 74,208.42 / Calculation 10.09.2009 reliability of main equipment ОР-10 OAO I of

From 11.07.2009 6 Maintenance of brickwork of boiler RUB 283,371.10 incl. VAT RUB through No contest, specialized works to ensure Contract No. 75- units 13, 14 43,226.10 / Calculation 31.10.2009 reliability of main equipment ОР-10 7 Repairs of support gas duct of boiler RUB 58,905.6 incl. VAT RUB 8,985.60 From 11.09.09 RFQ Contract No. 65-

anagement unit 11 (CHPP-10) / Bidding through 10.10.09 ДР-10 M Technical diagnosis of pipeline, re- RUB 212,153.38 incl. VAT RUB From signing Contract No. 78- the 8 date through Bidding contest, mark down 18% y superheating 60 atm (CHPP-10) 32,362.38 / Bidding ДР-10 b 31.12.2009

Maintenance of pulverizing RUB 539,426.38 incl. VAT RUB From 10.08.2009 No contest, specialized works to ensure Contract No. 76- 9 equipment, mills and mill blowers of 82,285.38 / Calculation through reliability of main equipment ДР-10

pproved boiler units 15, 16 (CHPP-10) 16.09.2009 A From 11.09.2009 10 Maintenance of equipment of boiler RUB 1,243,946.56 incl. VAT RUB through No contest, specialized works to ensure Contract No. 77- units 5, 6 (CHPP-10) 189,754.56 / Calculation 16.09.2009 reliability of main equipment ДР-10 ransactions yT art -P nterested 6 I ppendix A 142 Appendix 6

1 2 3 4 5 6 Assembly and disassembly of knock- From 11.07.2009 11 down and steel scaffolding at boiler RUB 280,135.54 incl. VAT RUB through No contest, specialized works to ensure Contract No. 79- units 13, 14 (CHPP-10) 42,732.54 / Calculation 31.10.2009 reliability of main equipment ДР-10 Manufacture and installation From 10.09.2009 12 of maintenance stairways and RUB 99.226.20 incl. VAT RUB through Bidding contest, mark down 15% Contract No. 80- platforms (CHPP-10) 15,136.20 / Bidding 31.10.2009 ДР-10 From 01.09.2009 13 Operating repairs of slag removal RUB 2,950.000 incl. VAT RUB 450,000 through Bidding contest, mark down 13% Contract No. 82- plant of boiler units 3, 4 (CHPP-10) / Bidding 30.12.2009 ДР-10 From 01.09.2009 14 Maintenance of fittings of boiler unit RUB 239.174.20 incl. VAT RUB through No contest, specialized works to ensure Contract No. 83- station 1 (CHPP-10) 36,484.20 / Calculation 31.12.2009 reliability of main equipment ДР-10 High pressure unifold boiler unit From signing 15 (ПК24), inv. no. 140180. Brickwork RUB 637,200 incl. VAT RUB 97,200 / date of contract Bidding contest, mark down 19.48% Contract No. 1509С 2009 in of platen superheater station 2 Bidding through 16 (CHPP-10) November 2009 From signing RUB 944,000 incl. VAT RUB 144,000 date of contract Contract No. 16 Repairs of lighting (CHPP-9) / Bidding through Bidding contest, mark down 14.61% 9-ОСВ-09

30.11.2009 rkutskenergo Addendum 1 17 Equipment maintenance, turbine RUB 100,006.18 incl. VAT RUB Decrease of contract cost to Contract No OAO I of set 1 15,255.18 / Calculation 13-ОР-10 dated 25.02.2009 Assembly and disassembly of Addendum 1 18 scaffolding for repairs of boiler units RUB 472,000 incl. VAT RUB 72,000 / Decrease of contract cost to Contract No 9–16, turbine sets 5–8 Calculation 18-ОР-10 dated anagement 24.02.2009 M

Assembly and disassembly of Addendum 1 the y b scaffolding for repairs of boiler units RUB 854,841.56 incl. VAT RUB to Contract No 19 1–8, turbine sets 2–4, heating 130,399.56 / Calculation Decrease of contract cost 17-ОР-10 dated network, ПСН, barring gear (block 1) 25.02.2009

Addendum 1 pproved Equipment maintenance of СПП, М RUB 413,000 incl. VAT RUB 63,000 / to Contract No A 20 и МВ of boiler units 1, 2, 3, 4, 5, 6, 9, Calculation Decrease of contract cost 22-ОР-10 dated 10, 11, 12, 15, and 16 25.02.2009 Maintenance of fittings, brickwork, Addendum 1 21 ПН, СПП, ТДУ, ЗУУ of boiler units RUB 51,678.10 incl. VAT RUB 7,883.10 Decrease of contract cost to Contract No ransactions

/ Calculation 31-ОР-10 dated yT 5 and 6 17.04.2009 art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 143143

1 2 3 4 5 6 Maintenance of fittings, brickwork, 22 ПН, СПП, ТДУ, ЗУУ of boiler units 5 RUB 51,678.10 incl. VAT RUB Decrease of contract cost Addendum 1 to Contract No and 6 7,883.10 / Calculation 31-ОР-10 dated 17.04.2009 Maintenance of low pressure control RUB 90,045.80 incl. VAT Addendum 1 to Contract No 23 of turbine sets 2, 4 13,735.80 / Calculation Decrease of contract cost 53-ОР-10 dated 25.05.2009 Maintenance of fittings of boiler RUB 734.479.78 incl. VAT RUB Addendum 1 to Contract No 24 units 3, 4 11,208.78 / Calculation Decrease of contract cost 58-ОР-10 dated 22.06.2009 Brickwork of boiler unit station 14. Repairs of SWOC circuit of boiler units From signing date 25 station 13, 14. Repair of fittings of SC RUB 611,968 incl. VAT RUB of contract through Bidding contest, mark down 85-ДР-10 9, 10. Repair of fittings of SC station 93,351.06 / Bidding 31.12.2009 14.9% 11, 12

2009 Replacement of impellers of ДС-14Б. in Replacement of water distribution system for water feed to air cooler, boiler units 3–16, and installation From signing date 26 of solenoid valves. Replacement of RUB 469,904.32 incl. VAT RUB of contract through Bidding contest, mark down 84-ДР-10 НАПТ-3 pump. Heating plant of block 71,680.32 31.12.2009 14.67% 7. Repairs of distribution substation rkutskenergo 7ДБ-Т and replacement of check val- ve by NPO Flame. OAO I of 10) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company Bratskenergoremont (ZAO Bratskenergoremont) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo anagement

M Transaction price (VAT incl.) /estima- Other essential conditions Other № Subject of transaction tion method the Work schedule Method of contractor selection No. of contract y b 1 2 3 4 5 6 Pipeline cleanup of lime at the suc- From signing 1 tion 2 of primary water in Boiler and RUB 129,795.28 incl. VAT RUB date of contract Bidding contest, mark down 13.53% Contract No. pproved 19,799.28 / Bidding through 969-МО A Turbine Department (U-I CHPP) 31.12.2009 RUB 1,474,906.53 incl. VAT RUB From 01.09.2009 2 Operating repairs of slag removal 224,985.74 / Calculations using through No contest, specialized works to ensure Contract No. 26-09 plant for boiler unit 12 (CHPP-10) adjustments adopted by OAO 28.09.2009 reliability of main equipment ransactions Irkutskenergo yT art -P nterested 6 I ppendix A 144 Appendix 6

11) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company Gidroenergoserviceremont (ZAO GES-remont) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo

Other essential conditions Other № Subject of transaction Transaction price (VAT incl.) /estima- tion method Work schedule Method of contractor selection No. of contract 1 2 3 4 5 6 Overhaul of hydro turbine 18, inven- From signing tory no. 00040618 and of power end RUB 5,828,745.70 incl. VAT RUB date of contract No contest, specialized works to ensure Contract No. 1 of hydro generator Г18, inventory no. 889,130.70 / Calculation using adjust- through reliability of main equipment 173р/09 00040038 (BCHPP) ments adopted by OAO Irkutskenergo 31.12.2009 From signing 2 Replacement of impeller for hydro- RUB 8,081,261.10 incl. VAT RUB date of contract Bidding contest, mark down 23.83% Contract No.

power unit 13 (BCHPP) 1,232,820, 90 / Bidding through 130/02/09 2009 in 31.12.2009

12) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company IRMET (ZAO IRMET) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo rkutskenergo Other essential conditions Other № Subject of transaction Transaction price (VAT incl.) /estima- OAO I of tion method Work schedule Method of contractor selection No. of contract 1 2 3 4 5 6 Heating network from SPD boiler From signing house to ТК-4Б-5 in Leninsky District. RUB 472,000 incl. VAT RUB 72,000 / date of contract Contract No. 382- anagement 1 Area from УТ-0 to УТ-2 (heating po- Bidding contest, mark down 60.5% M Bidding through 008/И-11/09

wer fiscal metering system) (HSD N-I the

20.10.2009 y

CHPP) b

pproved A ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 145145

13) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company IRMET (ZAO IRMET) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo

Transaction price Other essential conditions Other № Subject of transaction (VAT incl.) /estima- Method of contractor tion method Work schedule selection No. of contract 1 2 3 4 5 6 Due date of OAO Irkutskenergo bill is on demand. ZAO IRMET will pay for the purchased bill within three (3) working days after the effective date of the contract by transferring funds to the bank account of OAO Irkutskenergo specified Purchase and sales of 1 2,000,000 in the Contract. 2009 OAO Irkutskenergo bill in

OAO Irkutskenergo within two (2) working days after receiving funds shall write the bill for the received amount and hand it over to ZAO IRMET based on the bills acceptance and delivery certificate. rkutskenergo OAO I of

14) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company Irkutskenergoremont (ZAO Irkutskenergoremont) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo anagement

M № Subject of transaction Amount (limit) Other essential conditions Comments the 1 2 3 4 5 y b

Due date of OAO Irkutskenergo bill is on demand. ZAO IRMET will pay for the purchased bill within three (3) working days after the Purchase and sales of OAO effective date of the contract by transferring funds to the bank account of AO O Ir- pproved 1 2,000,000 –

A Irkutskenergo bill kutskenergo specified in the Contract. AO O Irkutskenergo within two (2) working days after receiving funds shall write the bill for the received amount and hand it over to ZAO IRMET based on the bills acceptance and delivery certificate. ransactions yT art -P nterested 6 I ppendix A 146 Appendix 6

15) Register of transactions between OAO Irkutskenergo and the Closed Joint-Stock Company Irkutskenergoremont (ZAO Irkutskenergoremont) subject to approval as transactions associated with proprietary interest of OAO Irkutskenergo

Other essential conditions Other Transaction price (VAT incl.) / № Subject of transaction estimation method Method of contractor Work schedule selection No. of contract 1 2 3 4 5 6 Maintenance of turbines of steamers From effective date No contest, specialized 1 5, 6, 7, 8 with three-phase generator RUB 135,547.78 incl. VAT RUB of contract through works to ensure reliability Contract No. 341-Т-10-О (CHPP-10) 20,676.78 / Calculation 16.11.2009 of main equipment Bead welding and dressing boiler drum station 3. Lapping for welding RUB 1,425,535.83 incl. VAT RUB From effective date of No contest, specialized Addendum 1 to the Contract 2 pieces to the drum body, boiler unit 217,454.62 / Calculation addendum through works to ensure reliability No. 0167/2009-К-11-Д dated station 3 (CHPP-11) 31.12.2009 of main equipment 25.03.2009

Repairs of automatic regulation 2009 in system, steam distribution system, From effective date 3 oil-and-water gland system, and RUB 660,800, incl. VAT RUB of contract through Bidding contest, mark Contract No. 163-Т-11-Д bearing assemblies of turbine sets 6, 100,800 / Bidding 31.12.2009 down 1.7% 8 (CHPP-11) Defects elimination at mechanical RUB 501,500 incl. VAT RUB 76,500 From effective date Bidding contest, mark 4 equipment of turbine department, of contract through Contract No. 164-Т-11-Д rkutskenergo BTD CHPP-11 (CHPP-11) / Bidding 31.12.2009 down 15%

No contest, specialized OAO I of 5 Overhaul of boiler unit 5 (CHPP-9) RUB 7,048,140 incl. VAT RUB From 02.08.2009 works to ensure reliability Contract No. 0303/2009- 1,075,140 / Calculation through 27.12.2009 of main equipment К-9-0 Capital repairs of heating main 3 from ТК-3 to point A in Novy micro district, RUB 2,714,000 incl. VAT RUB From effective date Bidding contest, mark 6 and heating main 3 from ТК-12 to ТК- 414,000 / Bidding of contract through down 31% Contract No. 3/Р-УТС-9-09 anagement 19 in Novy micro district (CHPP-9) 15.09.2009 M the

7 Maintenance of boiler unit 4 (N-I RUB 5,427,998.82 incl. VAT RUB From effective date No contest, specialized Contract No. 125-Т-НИ-О y b CHPP) 827,999.82 / Calculation of contract through works to ensure reliability 30.09.2009 of main equipment pproved A ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 147147

1 2 3 4 5 6 Performance test of regulators From effective date 8 (РК-200 type), hydro turbine units 4, RUB 354,000 incl. VAT RUB 54,000 of contract through Bidding contest, mark Contract No. 7 (IHPP) / Bidding 31.12.2009 down 6.6% 25-008-09-Д-ИГЭС Repair of ball mill 4Б (Ш-12) with replacement of wear plates at RUB 405,221.88 incl. VAT RUB From 10.08.2009 Bidding contest, no mark Contract No. 9 boiler unit station 4 (БКЗ-210/140) 61,813.51 / Bidding through 10.11.2009 down 0418/2009-К-11-Д dated (CHPP-11) 26.05.2009 Capital repairs of pneumatic ash From effective date 10 handling system, boiler unit station 4 RUB 93,690.82 incl VAT RUB of contract through Bidding contest, mark Contract No. 66-09 (N-Z CHPP) 45,000/ Bidding 31.12.2009 down 2% Defects elimination on heating From effective date 11 surfaces, boiler unit station 5, boiler RUB 250,000 incl. VAT RUB 45,000 of contract through Bidding contest, mark Contract No. department, BTD (CHPP-11) / Bidding 14.08.2009 down 5.6% 0416/2009-К-11-Д

2009 Reconstruction of side screen and RUB 7,552,000 incl. VAT RUB From effective date Bidding contest, mark Contract No. in 12 replacement of top panels, boiler unit of contract through 4 (CHPP-11) 1,152,000 / Bidding 02.11.2009 down 15.7% 0419/2009-К-11-К Increase scope of works for From effective date of Addendum 4 to Contract 13 reconstruction of heating network RUB 200,600 incl. VAT RUB 30,600 addendum through Bidding contest, mark No. 2672-А-9-К dated in Meget vl. Mixing booster pump / Bidding 30.09.2009 down 6.25% 09.09.2008

rkutskenergo station-1 (CHPP-9) Decrease scope of work for capital RUB 1,163,425.72 incl. VAT RUB From effective date of Bidding contest, mark Addendum 1 to Contract No. OAO I 14 repairs of boiler units, auxiliary 177,471.72 / Bidding addendum through down 6.5% 24-09 dated 29.04.2009 of equipment (N-Z CHPP) 31.12.2009 Repairs of steam extraction line 6 to low-pressure reheater 3, turbine From effective date No contest, specialized 15 set 8, drainage line to high-pressure RUB 472,000 incl. VAT RUB 72,000 of contract through works to ensure reliability Contract No. anagement reheaters 7, 8, turbine set 8, discharge / Calculation 10.09.2009 of main equipment 0402/2009-К-10-О M of feeding electric pump, turbine set

the 8 (CHPP-10) y b Heating network from boiler house of From effective date Northern industrial area to ТК-4Б-5 RUB 14,750,000 incl. VAT RUB Bidding contest, mark 16 of contract through Contract No. 5 in Leninsky district, area from УТ-0 2,250,000 / Bidding down 9% 01.09.2009 pproved to Н-2 A 17 Replacement of slip rings of turbine RUB 119,275.53 incl. VAT RUB From 01.09.2009 Bidding contest, mark Contract No. generator station 1 (N-I CHPP) 18,194.57 / Bidding through 30.10.2009 down 13.5% 0463/2009-э-НИ-д ransactions yT art -P nterested 6 I ppendix A 148 Appendix 6

1 2 3 4 5 6 From effective date 18 Repairs of mechanical equipment RUB 2,017,748.22 incl. VAT of contract through Bidding contest, mark Contract No. 14-Р-09 (CHPP-16) RUB 307,792.1 / Bidding 31.12.2009 down 10.2% Repairs of bypass pipelines to oxygen From effective date 19 analyzers, boiler unit stations 1–5 RUB 324,465.96 incl. VAT RUB of contract through Bidding contest, mark Contract No. 15-Р-09 (CHPP-16) 49,494.81 / Bidding 31.12.2009 down 10.4% From effective date 20 Maintenance of boiler superheater and RUB 40,261.6 incl. VAT RUB of contract through Bidding contest, mark Contract No. 86-09 water economizer station 1 (N-Z CHPP) 6,141.6 / Bidding 31.12.2009 down 5.6% Repairs of acid wash pipeline, boiler unit From effective date 21 station 3, repair of heating surfaces, boiler RUB 362,925.52 incl. VAT RUB of contract through Bidding contest, mark Contract No. 87-09 unit station 3 (N-Z CHPP) 55,361.52 / Bidding 31.12.2009 down 6% Capital repairs of equipment, turbine set station 2, re-paddling 30th step of low RUB 1,297,897.24 incl. VAT From effective date 2009 in 22 pressure runner, turbine set station 1 in of contract through RFQ Contract No. 83-09 manufacture conditions, ZAO Irkutskener- RUB 195,238.56 / Bidding 31.12.2009 goremont, Angarsk city (N-Z CHPP) Handling works, preparation of trans- porting low pressure runner, turbine set RUB 257,317.88, incl. VAT RUB From effective date

23 station 1 to the plant of ZAO Irkutskener- of contract through RFQ Contract no. 92-09 rkutskenergo goremont, Angarsk city (replace pads of 39,251.88 / Bidding 31.12.2009

the 30th step) (N-Z CHPP) OAO I of Balancing adjustment of equipment, From effective date 24 turbine set station 1 (after repairs) (N-Z RUB 266,167.88 incl. VAT RUB of contract through Bidding contest, mark Contract No. 91-09 CHPP) 40.601.88 / Bidding 31.12.2009 down 7.4% Replacement of middle convection RUB 4,575,451.18 incl. VAT From effective date No contest, specialized 25 section of combustion chamber, boiler RUB 697,950.18 / Calculation of contract through works to ensure reliability Contract No. С-1007 anagement unit 13 (CHPP-10) 31.10.2009 of main equipment M

From effective date the Replacement of transition section, high- RUB 1,021,880 incl. VAT RUB Bidding contest, mark y b 26 of contract through Contract No. С-3007 pressure uniflow boiler unit 14 (CHPP-10) 155,880 / Bidding 31.10.2009 down 18% Maintenance of typical parts, boiler unit 2 RUB 353,939.82 incl. VAT RUB From effective date No contest, specialized Contract No. 27 of contract through works to ensure reliability pproved (ShU N-I CHPP) 53,990.82 / Calculation 15.09.2009 of main equipment 0420/2009-к-5-о A 28 Maintenance of typical parts, boiler unit 3 RUB 353,766.36 incl. VAT RUB From 03.08.2009 to No contest, specialized Contract No. (ShU N-I CHPP) 53,964.36 / Calculation 13.09.2009 works to ensure reliability 0421/2009-к-5-о of main equipment ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 149149

1 2 3 4 5 6 Repairs of high-pressure reheaters 1, 2, From effective date 29 3, boiler unit station 4 for diagnostics RUB 578,175.99 incl. VAT RUB of contract through Bidding contest, mark Contract No. (U-I CHPP) 88,196.34 / Bidding 31.12.2009 down 15.3% 045/2009-К-УТ-Д From effective date 30 Repairs of wagon tipper (ВРС-125А type) RUB 589,969.32 incl. VAT RUB of contract through Bidding contest, mark Contract No. (U-I CHPP) 89,995.32 / Bidding 31.10.2009 down 13.5% 046/2009-К-УТ-Д Defects elimination for mechanical equip- From effective date 31 ment of Boiler and Turbine Department, RUB 395,287.68 incl. VAT RUB of contract through Bidding contest, mark Contract No. Fuel Supply Department (U-I CHPP) 60,298.12 / Bidding 31.10.2009 down 20% 047/2009-К-УТ-Д Repairs and partial replacement of From effective date 32 primary winding for electric motor of 7Б RUB 235,892.62 incl. VAT RUB of contract through Bidding contest, mark Contract No. mill (U-I CHPP) 35,983.62 / Bidding 31.10.2009 down 20% 0468/2009-э-УТ-д Repairs of technical control instruments RUB 129,790.56 incl. VAT RUB From effective date Bidding contest, mark 2009 33 of vibration for turbine pedestals station 14,399.39 / Bidding of contract through down 15.3% Contract No. 2009-ИЭР-10 in 5,6 (U-I CHPP) 31.10.2009 Replacement of casing for water heater 1 From effective date 34 at electric boiler substation 3 РТС-1 (U-I RUB 94,395.98 incl. VAT RUB of contract through Bidding contest, mark Contract No. CHPP) 14,399.39 / Bidding 31.10.2009 down 11% 0475/2009-К-УТ-Д Repairs of gas coolers of turbine sets 1, 3, RUB 135,547.78 incl. VAT RUB From effective date Bidding contest, mark Contract No. rkutskenergo 35 of contract through 4, 6 (U-I CHPP) 20,676.78 / Bidding 31.10.2009 down 19% 0491/2009-э-УТ-д OAO I Repairs of turbine generator station 3 RUB 329,896.14 incl. VAT RUB From 21.08.2009 Bidding contest, mark Contract No. of 36 (N-I CHPP) 50,323.14 / Bidding through 31.08.2009 down 3.4% 0497/2009-э-УТ-д Repairs of transformer (ТМ-400 kV) on central 220 kV distribution unit for power RUB 134,663.06 incl. VAT RUB From 01.09.2009 No contest, specialized Contract No. 37 supply of ACDC converter ЩПТ-2 (N-I 20,541.82 / Calculation through 31.12.2009 works to ensure reliability 0498/2009-Э-НИ-О anagement CHPP) of main equipment M RUB 236,000 incl. VAT RUB From 20.09..2009 Bidding contest, mark the 38 Repairs of acid storage tanks (N-I CHPP) Contract No. 129-Т-НИ-Д y 36,000 / Bidding through 31.12.2009 down 2% b

39 Rehabilitation of plugged section of RUB 271,400 incl. VAT RUB From effective date Bidding contest, mark Contract No. 4/Р-1-11-09 district network (РС-13) (CHPP-11) 41,400 / Bidding of contract through down 18.3% 10.09.2009 pproved

A From effective date of Addendum 3 to Contract 40 Assembly of continuous blow-off collec- Prolongation / Contract cost addendum through Prolongation of terms due No. 2189-К-1-К-8 dated tors 12–18 (CHPP-9, area 1) unchanged 30.09.2009 to late delivery of parts 04.04.2008 41 Unscheduled works for vibration studies RUB 566,400 incl. VAT RUB From effective date Bidding contest, mark No. 22-041-Д-9/1 of equipment (CHPP-9) 86,400 / Bidding of contract through down 4% ransactions 31.12.2009 yT art -P nterested 6 I ppendix A 150 Appendix 6

1 2 3 4 5 6 From effective date of Addendum 3 to Contract 42 Assembly of inserts for continuous blow-off Prolongation / Contract cost addendum through Prolongation of terms due No. 2794-К-1-К-8 dated collectors 12–18 (CHPP-9, area 1) unchanged 30.09.2009 to late delivery of parts 07.11.2008 Installation of turbine set Р-6-3.4/0.5-1 to replace turbine set ОК-35 station 3: civil and erection works to install foundation, Prolongation / Contract cost From effective date of Bidding contest, mark Addendum 1 to Contract No. 43 underground utilities, construction of Main unchanged addendum through down 25.9% 3/ОКС-Т-12-К Distribution Board Department, installation 31.07.2009 of steel structures (CHPP-12) Installation of turbine set Р-6-3.4/0.5-1 to replace turbine set ОК-35 station 3: instal- From effective date of 44 lation, start-up and commission of heating Prolongation / Contract cost addendum through Bidding contest, mark Addendum 1 to Contract No. equipment, installation of pipelines, heat unchanged 01.11.2010 down 25.7% 4/ОКС-Т-12-К insulation works (CHPP-12) 2009

Installation of turbine set Р-6-3.4/0.5-1 to in replace turbine set ОК-35 station 3: installa- From effective date of 45 tion, start-up and commission of electrical Prolongation / Contract cost addendum through Bidding contest, mark Addendum 1 to Contract No. equipment, installation of cables and cable unchanged 01.09.2010 down 17.5% 0238/2009-а-12-окс support structures (CHPP-12) From effective date 46 Repairs of feed pump ПЭН-1 (U-I CHPP) RUB 106,129.31 incl. VAT of contract through Bidding contest, mark Contract No. 240-Т-УИ-Д rkutskenergo RUB 16,189.09 / Bidding 31.12.2009 down 12.6% OAO I

Unscheduled repair works for mechanical of 47 equipment in manufacture conditions RUB 572,300 incl. VAT RUB From date of signing Bidding contest, mark Contract No. (CHPP-9, area 1) 87,300 / Bidding through 31.12.2009 down 3% 0512/2009-З-1-Д Unscheduled repair work for turbine depart- RUB 572,200 incl. VAT RUB From date of signing Bidding contest, mark 48 ment equipment (CHPP-9, area 1) 82,200 / Bidding through 31.12.2009 down 2% Contract No. 657-Т-1-Д anagement Reconstruction of convection superheater RUB 4,189,000 incl. VAT From date of signing Bidding contest, mark Contract No. M

49 (18%) RUB 639,000 / contract through the

boiler station 1 (CHPP-9) down 18.9% 0535/2009-К-9-К y

Bidding 15.05.2010 b

50 Capital repairs of short panels of boiler unit RUB 423,339.16 incl. VAT 23.09.2009 – 23.10.2010 No contest, specialized Contract No. 94-09 БКЗ-420-140-6 station 2 (N-Z CHPP) RUB 64,577.16 / Calculation works to ensure reliability using adjustments adopted of main equipment pproved

by OAO Irkutskenergo A ransactions yT art -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 151151

1 2 3 4 5 6 RUB 408,487.68 incl. VAT Capital repairs of electric filter and cutting RUB 62,311.68 / Calculation No contest, specialized 51 samples for acid wash of boiler unit БКЗ- using adjustments adopted 01.09.2009 – 25.10.2009 works to ensure reliability Contract No. 99-09 420-140-7 station 4 (N-Z CHPP) by OAO Irkutskenergo of main equipment RUB 246,399.34 incl. VAT Capital repairs of hydraulic ash removal RUB 37,586.34 / Calculation No contest, specialized 52 pipelines (N-Z CHPP) using adjustments adopted 01.10.2009 – 31.10.2009 works to ensure reliability Contract No. 100-09 by OAO Irkutskenergo of main equipment RUB 202,929.88 incl. VAT Capital repairs of equipment of turbine set RUB 30,953.88 / Calculation No contest, specialized 53 ПТ-80-130 station 2 (N-Z CHPP) using adjustments adopted 01.09.2009 – 16.09.2009 works to ensure reliability Contract No. 102-09 by OAO Irkutskenergo of main equipment Capital repairs of equipment of turbine set ПТ-80-130 station 2 (in plant conditions), RUB 1,788,227.85 incl. VAT 2009 No contest, specialized

in repairs of low-pressure runner, turbine set RUB 272,780.52 / Calcula- 54 ПТ-80-130/13 station 1 with re-paddling of tion using adjustments ad- 10.08.2009 – 22.10.2009 works to ensure reliability Contract No. 83-09 30th step (in plant and station conditions) opted by OAO Irkutskenergo of main equipment (N-Z CHPP) RUB 909,659.89 incl. VAT Maintenance of boiler unit station 7 with RUB 138,761.68 / Calcula- From signing date No contest, specialized Contract No. rkutskenergo 55 enhanced throughput at Shelekhov area of tion using adjustments ad- of contract through works to ensure reliability 0538/2009-К-5-О N-I CHPP opted by OAO Irkutskenergo 14.11.2009 of main equipment OAO I

of RUB 354,000 incl. VAT RUB Shop repairs of mechanical equipment of 54,000 / Calculation using From signing date No contest, specialized Addendum 1 to Contract 56 Shelekhov area of N-I CHPP adjustments adopted by of contract through works to ensure reliability No. 0032/2009-з-5-о dated OAO Irkutskenergo 31.12.2009 of main equipment 11.01.2009 57 Construction of electric boiler house and RUB 205,799,080 incl. VAT From signing date Bidding contest, mark Contract No. 01-БЦБК- anagement

M infrastructure facilities in Baykalsk city. RUB 31,393,080, in addition, of contract through down 8% УВиМР-09 Civil and erection, start-up and commission some customer-owned raw 01.09.2010 the

y works (N-I CHPP) materials (tentatively) RUB b 15,632,640 incl. VAT RUB 2,384,640 / Bidding pproved A ransactions yT art -P nterested 6 I ppendix A 152 Appendix 6

1 2 3 4 5 6 High-pressure uniflow boiler unit 9 (ПК From signing date of 58 24), inventory no. 140180. Replacement of RUB 2,183,000 incl. VAT RUB contract through 16 Bidding contest, mark Contract No. 1109С platen superheater of 2nd step (CHPP-10) 333,000 / Bidding November 2009 down 10.04% RUB 5,600,000 net of VAT From signing date of Bidding contest, no mark Addendum 2 to contract No. 59 Replacement of wagon tipper 2 1,008,000 / Bidding contract over Q4 2009 down П-05/08 dated 24.06.2008 From signing date 60 Repairs of maintenance platforms (CHPP-9) RUB 224,200 incl. VAT RUB of contract through Bidding contest, mark Contract No. 462-Т-9-Д 34,200 / Bidding 31.12.2009 down 21.01% Replacement of piped system spirals, repairs From signing date 61 of condensate pipelines ПВД-1, 2, 3, boiler RUB 253,769.56 incl. VAT of contract through Bidding contest, mark Contract No. unit station 4 BTD (U-I CHPP) RUB 38,696.88 / Bidding 31.12.2009 down 15.36% 0536/2009-К-УТ-Д Repairs of heating and fire water pipelines, RUB 448,386.62 incl. VAT From signing date Bidding contest, mark Contract No. 62 disassembly of trash chute, boiler unit RUB 68,397.96 / Bidding of contract through down 14.99% 0537/2009-К-УТ-Д station 7 BTD (U-I CHPP) 31.12.2009 2009 in From signing date No contest, specialized 63 Vibration testing of turbine sets stations 3, Cost unchanged (scope of contract through works to ensure reliability Addendum 1 to Contract No. 4, 5 (N-I CHPP) adjustment) 31.12.2009 of main equipment 22-009-О-НИ Elimination of defects occurring with RUB 590.000 incl. VAT RUB From signing date No contest, specialized 64 mechanical equipment of Boiler and Turbine 90,000 / Calculation using of contract through works to ensure reliability Contract No adjustments adopted by 0513/2009-К-10-Д rkutskenergo Department (CHPP-10) OAO Irkutskenergo 31.12.2009 of main equipment RUB 5,740,700 incl. VAT RUB OAO I of 875,700 / Calculation using From 10.08.2009 No contest, specialized Contract No. 65 Mid-life maintenance of boiler 6 adjustments adopted by through 28.11.2009 works to ensure reliability 0441/2009-К-НИ-О OAO Irkutskenergo of main equipment RUB 885,000 incl. VAT RUB Repairs of mechanical equipment by CMP 135,000 / Calculation using From signing date No contest, specialized anagement 66 (N-I CHPP) adjustments adopted by of contract through works to ensure reliability 0521/2009-з-НИ-д M OAO Irkutskenergo 31.12.2009 of main equipment the y b 67 Flaw detection of front screen, boiler unit RUB 253,676.62 incl. VAT From signing date No contest, specialized Contract No. 025-М-11-О/09 station 8 at CHPP-11 (CHPP-11) RUB 38,696.43 / Calculation of contract through works to ensure reliability using adjustments adopted 10.12.2009 of main equipment

by OAO Irkutskenergo pproved A RUB 354,000 incl. VAT RUB Defects elimination for mechanical equip- 54,000 / Calculation using From signing date Bidding contest, mark Contract No. 165-Т-11-Д 68 ment, ТО BTD CHPP-11 (CHPP-11) adjustments adopted by of contract through down 14.28% dated 17.08.2009 OAO Irkutskenergo 31.12.2009

RUB 501,500 incl. VAT RUB ransactions

From signing date yT 69 Defects elimination for mechanical equip- 76,500 / Calculation using of contract through Bidding contest, mark Contract No. 166-Т-11-Д

ment, ТО BTD CHPP-11 (CHPP-11) art adjustments adopted by 31.12.2009 down 15% OAO Irkutskenergo -P nterested 6 I ppendix A Appendix 6ANNUAL REPORT 2009OAO IRKUTSKENERGO 153153

1 2 3 4 5 6 Replacement of front screen and RUB 6,148,799.93 incl. VAT RUB From signing date No contest, specialized works 70 headers of boiler unit ТП-81 station 937,952.53 / Calculation using adjust- of contract through to ensure reliability of main Contract No. 8 (CHPP-11) ments adopted by OAO Irkutskenergo 31.12.2009 equipment 0502/2009-К-11-Д Repairs of drum of boiler unit station 4 (БКЗ-210/140) and replacement RUB 4,863,878.08 incl. VAT RUB From signing date No contest, specialized works 71 of couplings. Lapping while welding 741,947.5 / Calculation using adjust- of contract through to ensure reliability of main No. 0446/2009-К-11-Д couplings to the drum body of boiler ments adopted by OAO Irkutskenergo 02.12.2009 equipment unit 4 (БКЗ-210/140) (CHPP-11) RUB 118,000 incl. VAT RUB 18,000 / From signing date No contest, specialized works Addendum 1 to Contract 73 Shop repairs of electrical equipment Calculation using adjustments adopted of contract through to ensure reliability of main 0007/2009-Э-5-О dated at Shelekhov area of N-I CHPP by OAO Irkutskenergo 31.12.2009 equipment 11.01.2009

RUB 1,840,800 incl. VAT RUB 280,800 / From signing date No contest, specialized works 74 Shop repairs of electrical equipment Calculation of contract through to ensure reliability of main 0507/2009-э-10-о 2009 31.12.2009 equipment in

From signing date 75 Elimination of turbine defects occur- RUB 500,000 incl. VAT RUB 90,000 / of contract through Bidding contest, mark down 342-Т-10-Д ring during operation Bidding 31.12.2009 15%

rkutskenergo Elimination of defects occurring at RUB 500,000 incl. VAT RUB 90,000 / From signing date Bidding contest, mark down 76 ТМО КТЦ Bidding of contract through 15% 0513/2009-К-10-Д

OAO I 31.12.2009 of Strength test ОПС of exhaust pipeline RUB 123,932.28 incl. VAT RUB 18,904.92 From signing date No contest, to ensure reliability Contract No. 77 shunt 3 РОУ-15 / Calculation through 30.09.2009 of operation 0448/2009-П-9-и 78 Development of technical documen- RUB 294,511.88 incl. VAT RUB 44,925.54 From signing date No contest, to ensure reliability Contract No. tation for estimating ОПС ГПП and / Calculation through 30.09.2009 of operation 0453/2009-П-9-и anagement РПП of boiler unit 10 M

the Pursuant to the decision by the Board of Directors of OAO Irkutskenergo (Minutes No. 40 (193) dated 25.12.2009), the following Company’s transaction y b with one of the other members of the same group of companies was pre-approved as a transaction associated with proprietary interest: No. Counterparty Subject Contract price

pproved 1 OOO Baykalinvestenergo The Seller (OAO Irkutskenergo) shall transfer to the ownership A price per share was estimated using the weighted average market A of the Buyer (OOO Baykalinvestenergo) ordinary shares of Ir- price of an ordinary registered share of OAO Irkutskenergo formed in kutsk Open Joint-Stock Company of Energy and Electrification security trading at MICEX Stock Exchange, which is a securities trade with the registration number of issue 1-01-00041 А in the organizer, over the period from 2 November to 1 December 2009; the amount of ninety-seven million, two hundred and seventy- estimated price equals RUB 13.152 per share. ransactions four thousand, three hundred and twenty (97,274,320) shares The total amount as per the Contract is RUB 1,279,351,856.64 yT with the par value of RUB 1.00 each; the Buyer shall accept the art securities and pay for them their total amount as specified in -P the Contract. nterested 6 I ppendix A 154