Reforming of regional energy companies (AO-energo)

OAO RAO “UES of Russia” Board of directors approval of 60 AO-energo reforming projects, preliminary consideration of projects by Inter-departmental commission for energy industry reforming (RF Government Commission for RF energy industry reforming)

May2002 – March2005

(done)

Resolving the issue on reorganization of 41 AO-energo at extraordinary general shareholders meetings of companies

II half of 2003 - March 2005

(done)

Official registration of companies established in the course of 26 AO-energo reorganization

I half of 2004 - March 2005

(done)

Consideration of other AO-energo reform projects (including projects of reforming isolated energy systems and Far East system) by Inter-departmental commission for energy industry reforming and their approval by OAO RAO “UES of Russia” Board of directors

I half of 2005 - 3 quarter of 2005

Termination of activities performed by management companies established in the process of AO-energo reorganization

2005

Completion of AO-energo reforming: by activity types:

Completion of separation by activity types in coordination with projects implemented in accordance with the basic variant

2005 – 2006

Far East energy systems reforming (in particular OAO “Amurenergo”, OAO “Khabarovskenergo”, OAO “Dalenergo”, OAO “LUTEC”, and southern generation center OAO AK “Yakutskenergo”) in accordance with resolutions made by Inter-departmental commission for RF energy industry reforming and OAO RAO “UES of Russia” Board of directors

II half of2005 – 2006(07)

Reforming of separate energy system in accordance with individual resolutions made by Inter-departmental commission for RF energy industry reforming and OAO RAO “UES of Russia” Board of directors

2005 – 2006 (07)

Reforming of main network complex

Official registration of 7 IMNC: OAO "Volga IMNC", OAO "North West IMNC", OAO "Ural IMNC", OAO "Siberia IMNC", OAO "Central IMNC", OAO "South IMNC", OAO "East IMNC"

February2004
(done)

OAO RAO “UES of Russia” Board of directors approval of updated scheme of main networks consolidation, providing:

·        Separation of main network company (MNC) in the course of AO-energo reorganization. MNC will receive UNES objects according to separation balance

·        Transfer of main network companies shares acquired by OAO RAO “UES of Russia” to OAO “FGC UES” authorized capital

·        Integration of main network companies with one of IMNC (with other IMNC joining it at the same time), if MNC shareholders resolve this

February 2005

(done)

Transfer of MNC shares as payment for OAO “FGC UES” additional shares

3 quarter of 2005

Integration of main network companies (MNC) with Interregional main network company (IMNC)

2006

Distribution network complex

OAO RAO “UES of Russia” Board of directors approval of Interregional distributive network companies configuration:

- IDC-1 consisting of DC related to Central ES and North Caucasus ES;

- IDC-2 consisting of DC related to North-West ES;

- IDC-3 consisting of DC related to Ural ES and Middle Volga ES;

- IDC-4 consisting of DC related to Siberia ES.

April 2004

(done)

Official registration of 2 IDC: OAO “Central and North Caucasus IDC” and OAO “North-West IDC”

December 2004
(done)

Official registration of Siberia IDC and Ural and Middle Volga IDC

I half of 2005

Formation of 4 IDC by transfer of shares of DC established in the course of AO-energo reorganization that belong to OAO RAO "UES of Russia" and DC minority shareholders as payment for additional IDC shares.

4 quarter of 2005 – I half of 2006

Reforming of dispatch administration system

Establishment of OAO “SO-CDA UES” from associated companies involved in dispatch administration that used to be implemented by energy and electrification shareholding companies from property that belonged to AO-energo (excluding independent and isolated AO-energo) is leased to OAO “SO-CDA UES"

2004
(done)

OAO “SO-CDA UES” buyout of RDA property leased from energy companies at the expense of payment for OAO “SO-CDA UES’ services

2005 – 2006

Formation of independent companies engaged in dispatch administration of technologically isolated systems

2005 – 2006

Establishment and formation of wholesale generative companies (WGC)

OAO RAO “UES of Russia” Board of directors resolution on establishment of wholesale market generative companies (WGC): OAO “WGC-1”, OAO “WGC-2”, OAO “WGC-3”, OAO “WGC-4”, OAO “WGC-5”, OAO “WGC-6”, “Hydro-WGC”

September-December2004

(done)

Official registration of seven WGC

October2004 – March2005

(done)

Inclusion of AO-plants separated in the course of AO-energo reorganization and subject to inclusion into WGC according to RF Government regulation N 1254-p of September 1, 2003 (in edition of October 25, 2004) together with WGC transition to single share via exchange of WGC shares for WGC associated AO-plants shares that belong to minority shareholders of these AO-plantsWGC according to RF Govern,meeria IMNC", OAO "Cnt tr energy

Completion of main procedures of WGC formation – inclusion of corresponding AO-plants and transition to single share:

WGC-3, WGC-5

II half of2005

WHC-1, WGC-2, WGC-4, WGC-6

II half of2006

Establishment and formation of TGC

OAO RAO “UES of Russia” Board of directors approval of TGC configuration

April2004

(done)

OAO RAO “UES of Russia” Board of directors approval of projects of establishment of 10 TGC: OAO “TGC-1”, OAO “TGC-2”, OAO “TGC-4”, OAO “TGC-5”, OAO “TGC-6”, OAO “TGC-7”, OAO “TGC-8”, OAO “TGC-9”, OAO “TGC-10”, OAO “TGC-13”, OAO “TGC-14”

September2004 – March2005

Official registration of TGC: OAO “TGC-1”, OAO “TGC-5”, OAO “TGC-8”, OAO “TGC-9”, OAO “TGC-10”, OAO “TGC-14”

December 2004 – March 2005

(done)

OAO RAO “UES of Russia” Board of director’s approval of projects of establishment of other TGC. Projects to be approved – TGC-11, TGC-12

2 quarter of 2005

Completion of TGC establishment and leasing of corresponding property

1 half of2006

Completion of TGC formation process

End of2006 – middle of2007

Separation of generative companies (except OAO “Hydro-WGC) from OAO RAO “UES of Russia” holding

Development of detailed mechanism and methods of separation of completely established generative companies (assets) (excluding OAO “Hydro-WGC") from OAO RAO “UES of Russia” or its SDC

2-3 quarter of 2005

Separation (including auction sales) of completely established generative companies after their transition to single share in WGC and TGC:

WGC-5

3 quarter of 2005 – 4 quarter of 2005

WGC-3

4 quarter of 2005 – 1 half of 2006

Other WGC and TGC established and single shared, other generative companies (including those that belong to SDC OAO RAO "UES of Russia")

2006 -2007

Management of assets (stocks) of supply companies established in the course of AO-energo reorganization

Establishment of energy sales companies in the course of AO-energo reforming

2004 – 2005

(done)

Repair and service companies

Reduction of affiliation of OAO RAO “UES of Russia” and its associated companies with repair and service companies

2005 – 2006

Reforming of scientific-design and engineering complex

Continuation of reforming of scientific-design and engineering organizations that belong to OAO RAO "UES of Russia"

OAO RAO “UES of Russia” reforming

OAO RAO “UES of Russia” reforming via separation of the following companies:

·        OAO “FGC UES”;

·        OAO “SO-CDA UES”;

·        OAO “Hydro-WGC”;

·        Companies that own WGC and TGC shares belonging to OAO RAO “UES of Russia” by reorganization moment (each company is separated individually);

·        Companies that own IDC shares;

·        Companies that own isolated energy systems shares;

·        Companies that own the Far East holding company shares (considering the resolution regarding the Far East energy systems reforming)

End of 2006

Increase of the Russian Federation participation in OAO “SO-CDA UES” and OAO “FGC UES” stock

State deposits

• Main network assets into OAO “FGC UES”;
• Operational management assets into OAO “SO-CDA UES”

After 2005

Increase of state participation in OAO RAO “UES of Russia” stock (indirect increase of participation in OAO “FGC UES” and OAO “SO-CDA UES”)

3-4 quarter of 2005 - II half of 2006 (together with separation of generative companies from OAO RAO “UES of Russia”)

State acquisition of OAO “SO-CDA UES” and OAO “FGC UES” shares from shareholders of these companies

After OAO RAO “UES of Russia” is reorganized and OAO RAO “UES of Russia” shareholders acquire shares of companies established in the result of reorganization