TGC-1 Tightens Control over the Operation and Condition of its Hydroelectric Generation Facilities

Employees of TGC-1 have tightened control over the operation of the Company’s hydroelectric power plants. In addition, a previously planned comprehensive technical audit, which is conducted annually as part of the measures to prepare hydroelectric facilities to the autumn flood and to make power plants’ equipment ready to autumn-winter peak loads, will be made soon.

In the following three weeks, the HEPPs of TGC-1 will be inspected for compliance with the requirements of accident prevention and equipment operation rules, for condition of their security and alarm systems, as well as for emergency prevention measures used.

It is worth reminding that, compared to the other TGCs existing in Russia, TGC-1 has a unique range of generating facilities, for 40 of the 55 power plants operated by the Company are hydroelectric power plants, with 6 plants located in Leningrad Oblast, 17 on the Kola Peninsula, and 17 scattered across the Republic of Karelia.

With an installed capacity of up to 205 MW each, the HEPPs of TGC-1 are totally different from the Sayano-Shushenskaya hydroelectric power plant not only in terms of capacity, but also in terms of water height head and facilities’ location relative to the dam.

In operating its HEPPs, TGC-1 puts strong emphasis both on control over the condition of hydraulic facilities and on equipment replacement and upgrade measures. In this year alone, the Company launched two new hydroelectric generators on Volkhovskaya and Svetogorskaya HEPPs, which replaced out-of-date, worn-out facilities. Another new generating unit is planned to be started at Lesogorskaya HEPP in the Q4. Furthermore, the concrete part of the dam at Ondskaya HEPP of TGC-1, located in Karelia, is currently being repaired. At Knyazhegubskaya HEPP in Kola the utility gallery, which goes through the body of the dam and which is used to monitor its condition, is being mended.

The Company plans to spend a total of RUR14 billion on retrofit and renovation of its facilities in 2009. An additional 2 billion will be allocated for equipment repair.