RAO UES BOARD TO CONSIDER HYDRO-OGK CREATION PROJECT

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MOSCOW, June 7 (RIA Novosti) - The project of creating one wholesale generating company (OGK) on the basis of hydroplants instead of four might be considered at the next session of the RAO UES Board on June 25, RIA Novosti was told by a source in the company's board.

"This issue is very important for the company. Taking into account the way important issues are resolved in RAO UES of Russia, it will be considered at the next session of the company's board, despite the fact that it's not on the agenda," he said.

At the session with Vice Premier Alexander Zhukov on June 2, the Ministry of Industry and Energy and the Ministry of Economic Development and Trade were charged with preparing a draft decision of the government on the expediency of making amendments to the composition of the OGK created on the basis of hydroelectric plants before mid-June.

Instead of four hydro-OGKs it is suggested that only one be created, to incorporate all the hydroelectric plants of the holding. Thus, the total number of OGKs that will separate themselves from RAO as a result of electric power reform will be reduced from 10 to seven.

"The two ministries have already started work on preparation of this decision, but the amendments themselves are only a small part of the work; the maximum to be done is to prepare the feasibility study of such a step," said the source.

In his words, the suggested unification of hydroplants into one hydro-OGK "is clearer for the government." "However, as earlier the state did not interfere with the internal processes of the holding, it will not interfere with them in future either," he noted.

RAO UES of Russia provided for its investors a new, accelerated means of creating territorial generating companies (TGKs). Before this year's end, the energy holding suggests passing to generating companies regional plants on terms of lease, and in a year, giving them these assets for ownership. During the electric energy reform, regional power systems will be divided by kinds of business. The largest plants will enter OGKs, and the remaining generating stations of neighboring regions will be unified into TGKs.

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