RAO UES Board of Directors Holds its Regular Meeting
Moscow, 29 February 2008. At its regular meeting held today, the Board of
Directors of RAO "UES of Russia" approved the date, venue, and time for the
Company's last AGM.
Like in the previous years, the AGM will be held on 28 May 2008 at 11:00 Moscow
time in the Zelenograd Palace of Culture, located in the Zelenograd Administrative Okrug
This resolution was taken pursuant to the Regulation on Additional Requirements to
the Procedure for Preparation, Convocation and Conduct of a General Meeting of
Shareholders approved by the FCSM of Russia of 31 May 2002, and owing to the optimum
combination of price and quality of the premises rented for the AGM.
Record date: The list of persons entitled under the laws of the Russian Federation to
take part in the AGM will be made as at 15 April 2008.
As provided by Article 5.6 of the Company's Charter, both holders of ordinary shares
and type A preferred shares are entitled to attend the AGM and vote on all items on the
This information was disclosed in the Interfax newswire at 14:01 hours on 29 February
2008 in accordance with the requirements of Russia's FSFM as a notice of material fact and
information which may materially affect the cost of the issuer's securities.
The Board of Directors of RAO "UES of Russia" considered the proposals
relating to the disposal of the Company's shares tendered for repurchase by its
Some shareholders of RAO "UES of Russia" who voted against, or did not take
part in the vote on, the Company's reorganization at the EGM held 26 October 2007 tendered
their shares to the Company for repurchase.
At its meeting of 14 December 2007, the Board approved the Report on the results of
repurchase of the shares tendered for repurchase by such shareholders.
On 9 January 2008, RAO "UES of Russia" completed the payment of RUB101.853
billion for the shares repurchased from the shareholders. On that date, the Company
started selling the shares on the OTC market pursuant to the Board's decision of 27
As provided by the decision, the shares are to be sold at an average weighted price of
RAO UES shares on the MICEX Stock Exchange over the previous three calendar weeks, but not
lower than the repurchase price, RUB32.15 per ordinary share and RUB29.44 per preferred
share. The minimum quantity of shares to be sold to one buyer will be 10 million shares.
To date, RAO "UES of Russia" has entered into two Share Purchase Agreements
for 1,371,680,000 ordinary shares worth a total of RUB44 billion. This makes approximately
43% of the total number of shares repurchased from the shareholders.
The number of Treasury shares intended for sale is 1,425,616,335 ordinary shares and
404,885,193 preferred shares.
Due to the ongoing liquidity pressures on the global financial markets and their
influence on the Russian securities market there is a chance that these shares will not be
sold in full at an acceptable price before the Company's reorganization is completed.
In order to hedge against these risks, the RAO UES Management Board presented its
proposals regarding the disposal of the Treasury shares at today's Board meeting.
Specifically, it was stated that cancellation of any remaining Treasury shares in the
course of RAO UES merger with FGC is not advisable due to some significant drawbacks of
this option. The key flaw is that if the shares are cancelled, FGC and HydroWGC would not
receive additional funds which might be used to finance their investment programmes.
The Board of Directors approved the option under which RAO "UES of Russia"
will sell the Treasury shares that remain unsold on 1 June 2008 will be sold to special
The Board also stated that the key goal set for the Company is to sell all of its
Treasury shares by 1 June 2008, so the proposed solution is intended as a backup.
As resolved by the Board, RAO "UES of Russia" will establish two wholly-owned
subsidiaries, OOO "Energy Industry Index – UES FGC" and "Energy Industry
Index – HydroWGC", each with an authorized capital of RUB10 million. These
companies will purchase from RAO "UES of Russia" all of the Treasury shares that
are not sold, in proportions of 74.9% and 25.1% , respectively. The terms of sale and
share price for these companies will be the same as are in effect today.
Before 1 June, RAO "UES of Russia" will hold a tender to select a management
company which will manage and coordinate the sale of the Company's shares transferred to
OOO "Energy Industry Index – UES FGC" and OOO "Energy Industry Index –
The Management Board of RAO "UES of Russia" will submit the terms of the
tender and the material terms and conditions of the agreement with the management company
for review to the Board of Directors in April 2008.
After the Company's reorganization is completed, the special purpose companies will be
transferred to the interim HoldCos, which will merge with and into FGC and HydroWGC. In
this way, the proceeds from the sale of the Company's Treasury shares, as well as the
funds previously received from the sale of the shares, will be used to finance the
investment programmes of FGC and HydroWGC.
In connection with the potential conflict of interest relating to the possibility of
FGC owning shares in thermal generation companies (TGCs), the Board of Directors of RAO
"UES of Russia" approved the modification of the Basic Terms for connection to
the power grids of generation facilities to be created as a result of the WGCs' and TGCs'
The Basic Terms were approved by the Board of Directors of RAO "UES of
Russia" at the meeting of 29 September 2007. They take into account the principles of
operation of the electricity industry which emerged in the course of the sector reform.
Specifically, the Basic Terms set standard timeframes for some phases of grid connection
and provide that FGC may be held liable if it fails to comply with these timeframes. The
Basic Terms were used as a basis for a standard connection agreement approved by the
Management Board of RAO "UES of Russia" on 6 November 2007.
Instead of the "preliminary connection charge", the Board of Directors
introduced the notion of "preliminary technical solution". Based on that
solution, FGC will propose the amount of connection charge, negotiate it with the
generation company and submit it to the regulatory authority for approval within 15
The modifications provide that the first annex to the connection agreement will include
the generation company's proposals on the voltage class, tie stations for each voltage
class, number of connection points and breakdown of capacity by voltage class.
The Board of Directors instructed the Management Board to ensure that FGC enters into
connection agreements with all WGCs and TGCs according to their applications.
The Board noted that the possibility of occurrence of the above conflict of interest
described has been practically eliminated. WGC-5 and TGC-5 were spun off during the first
phase of RAO UES reorganization and FGC does not own shares in these companies. The
state-owned stake in WGC-3 was purchased by the company's strategic shareholder, OAO
"Norilsk Nickel MMC". Shares of WGC-2 and WGC-6, as a result of redistribution
among the special purpose HoldCos, were transferred to OAO "Centrenergoholding".
The state-owned stake in Yeniseyskaya TGC-13 was transferred to OAO "HydroWGC
State Holding". This means that even if these shares are not sold after the RAO UES
reorganization is completed, they will be transferred to OAO "HydroWGC".
The state-owned stakes in WGC-4, TGC-1, South Generation Company TGC-8, and TGC-8 were
sold simultaneously with the additional offerings of the companies' shares to strategic
investors, and the state-owned shares in Mosenergo (TGC-3) were sold to the Moscow City
For all other thermal generation companies, the RAO UES Management Board has approved
an updated schedule for selling the state-owned stakes. According to the schedule, all
state-owned shares are planned to be sold before the completion of the second phase of RAO
Besides the sale of the shares in the thermal generation companies attributable to the
government, the key factor that will help avoid the conflict of interests is the provision
of the Federal Law On the Peculiarities of Functioning of the Electricity Industry
During the Transitional Period which prohibits any affiliation of FGC with the WGCs
and TGCs after 1 July 2008.
Among the initiatives intended to prevent the conflict of interests is the fact that
representatives of NP "Soviet Rynka" ("Market Council") on the FGC
Board of Directors. Charter amendments to that effect will be submitted for shareholder
approval at the EGM of FGC scheduled for 11 March 2008. The AGM of FGC, which will elect
new members of the Board of Directors, will be held on 30 June 2008.
Moreover, work is currently underway to create a Strategy Committee of the FGC Board,
which will include representatives of energy market participants. The Board of Directors
instructed the Management Board of RAO "UES of Russia to submit the reviewed draft of
the Regulations on the Strategy Committee to the FGC Board of Directors not later than in
March 2008, and to invite nominations for the Committee. It is expected that the FGC
Strategy Committee will be formed in April 2008.
The functions of the Committee will include preliminary review of the matters submitted
to the Board of Directors which relate to measures and programmes for the development of
the Unified National Energy Grid (UNEG) and grid connection, as well as processes relating
to ensuring efficient functioning of the wholesale electricity market and power grids
management. The Committee will also be responsible for controlling the implementation of
investment projects in the power grids and some other matters.
The Board of Directors approved the transaction for the acquisition by SO-CDA
UES of 1 629 574 099 of its’ own shares from RAO "UES of Russia"
with the aim of their redemption.
This is an interested-party transaction, as the energy holding company owns over 20% of
SO UES shares. A number of members of its Board of Directors, mostly government
representatives are also members of the Board of Directors of System Operator. Thus, the
decision on this transaction was made by independent members of the RAO "UES of
Russia" Board of Directors.
The value of the transaction determined by an independent appraiser - Russian Appraisal
and approved by the Appraisal Committee of the RAO "UES of Russia" Board of
Directors was set at 6 062 015 648.28 rubles for the entire 70%
shareholding. The selling price of one share shall amount to 3.72 rubles.
The repurchase of own shares by System Operator and their redemption shall provide for
an interest of the Russian Federation in the authorized capital of System Operator at a
legislatively set level of 100%.
Such a degree of state participation is accounted for by the fact that on one hand
System Operator is of high infrastructural importance for the current and future
functioning of the electric power market and ensuring reliability of operations of the UES
of Russia. On the other hand - by the fact that it the company’s activities are
regulated, that it is anon-profit organization and, thus, does not require a public status
and a large (as in the case of RAO "UES of Russia") shareholder structure.
At the moment, the State owns around 30% of shares in SO UES. It became their
proprietor last yeas when it acquired additional company shares through private
subscription to a total value of 2.52 billion rubles. The remaining shares are owned by
RAO "UES of Russia".
The RAO "UES of Russia" Board of Directors approved the formation of a
unified interregional distribution grid company on the territory of Moscow and the Moscow
Region. It shall be established on the basis of MRPGC* by means of a merger of MCPGC
The RAO "UES of Russia" Board of Director approved the volume of the
additional issue of shares in MRPGC that MCPGC shall be converted into. Thus, MRPGC shall
place 20 461 450 thousand additional common shares par value 0.5 rubles to a total
value of 10 230 725 thousand rubles.
1966/1424 common MCPGC shares par value 0.2 rubles are converted into one additional
MRPGC share. A fairness opinion on the share conversion ratio was prepared by independent
financial advisors and approved by the Appraisal Committee of the RAO "UES of Russia"
Board of Directors.
The interest of RAO "UES of Russia" (50.9%) and other large shareholders in
the authorized capital of the unified interregional distribution grid company shall not
significantly change as a result of the reorganization on account of the similarity in
shareholder capital structures of MRPGC and MCPGC.
The Board of Directors commissioned RAO "UES of Russia" representatives to
management bodies of MRPGC and MCPGC to vote in favor of all decisions necessary for the
merger of MRPGC and MCPGC/ it is expected that extraordinary general meetings of
shareholders of these companies shall be held in the second half of April 2008 and the
merger process shall be completed by July 1, 2008.
* Moscow Unified Power Grid Company was established on April 1, 2005 as a a result of
Mosenergo unbundling. The authorized capital of MRPGC is divided into
28 249 359 700 common shares par value 0.05 rubles each. 50.9% of shares
are owned by RAO "UES of Russia". There are 609 high-voltage substations
on the company’s balance. The total length of overhead transmission lines amounts to 15
321,8 km. The company owns 14 438 distribution and transformer sites of 6-10 kV, 2 393
feeder lines of 6-10 kV, the length of 0.4-10 kV transmission lines totals 58 933,5 km.
The company supplies power to Moscow and the Moscow Region.
** Moscow City Power Grid Company was established on April 1, 2005 as a result of
Mosenergo unbundling. The authorized capital of MCPGC amounts to
5 649 871 940 rubles and is divided into 28 249 359 700
common shares par value 0.2 rubles each. 50.9% of shares are owned by RAO "UES of
Russia". There are 1 943 distribution substations and 14 154 transformer
substations on its balance. The length of cable lines is 60 047,8 km and 409 km of
overhead transmission lines. The company supplies power to Moscow and Zelenograd.
The RAO "UES of Russia" Board of Directors approved the project for the
restructuring of Yantarenergo (Kaliningrad Region).
Pursuant to the agreement concluded between RAO "UES of Russia" and the
Kaliningrad Region Government and today’s decision of the Board of Directors,
restructuring of the Kaliningrad Energy System shall be conducted in two stages.
During the first stage Yantarenergo shall establish two companies – Yantarenergosbyt
and Kaliningrad generation Company. The latter shall include CHPP-1 in Kaliningrad,
Gusevskaya CHPP, SDPP-2 in Svetliy, as well as non-traditional electric power units.
Shares in these companies shall subsequently be auctioned, the proceeds being used for the
development of Yantarenergo electric power grids.
During the second stage it is planned to place additional shares in Yantarenergo in
favor of the Kaliningrad Region Government, which shall become the owner of the blocking
stake in the company (25% + 1 share). Payment shall be made in 100% shares of Regional
Energy Company, as well as other assets as agreed by RAO "UES of Russia" or the
Holding Company’s legal successor - IDGC Holding Company that shall own shares in
In order to determine the value of shares in Yantarenergo and Regional Energy Company
an independent appraisal shall be conducted. Results of the independent appraisal shall be
submitted for review of the Appraisal Committee of the RAO "UES of Russia" Board
of Directors or the profile body of the IDGC Holding Company.
The project for the restructuring of the Kaliningrad Energy System stipulates that
Yantarenergo shall keep the power grid system, which includes, among other things,
transmission lines, transformer substations, equipment and production and technical
The RAO "UES of Russia" Board of Directors also approved the formation of a
System Operator affiliate in Kaliningrad - the Baltic RDA, which was established pursuant
to the decision of the Board of Directors of System Operator of July 25, 2007. The
affiliate shall be delegated the functions of operation and dispatching management,
currently being exercised by Yantarenergo, with a part of operational functions being
reallocated between the Centre for Grid Management of Yantarenergo and System Operator
pertaining to UNPG facilities and other dispatching objects.
The Board of Directors commissioned RAO "UES of Russia" representatives to
Yantarenergo to adopt all decisions necessary for the implementation of measures
contemplated by the project for company restructuring.
The said scheme of Yantarenergo restructuring has been approved by the
Interdepartmental Commission for Electric Power Industry Restructuring.
The Board of Directors commissioned RAO "UES of Russia" representatives to
management bodies of Federal Grid Company, System Operator , HydroWGC as well as all heat
WGCs and TGCs, excluding Wgc-5 and TGC-5, to approve the participation of the companies in
not-for-profit partnerships "Energy Veterans Council" and "Science and
Technology Council of the Electric Power Industry" by means of their establishment.
At the moment an Energy Veterans Council operates within RAO "UES of Russia"
and consists of persons who work or have worked in the executive office of the company,
the Ministry for Energy of the USSR and the Ministry for Fuel and Energy (Mintopenergo).
In order to maintain social responsibility towards power sector veterans and apply the
experience that they have accumulated even after the cessation of activities of RAO "UES
of Russia" it is expedient to establish the corresponding not-for-profit partnership,
which shall be delegated the functions of the existing Council.
Within the same concept the not-for-profit partnership Science and Technology Council
of the Electric Power Industry (STC) shall be established. At the moment the Science and
Technology Council for Energy and Electrification exercises functions of coordination and
support of scientific and technological development of the electric power system of the
It is expected that after the reorganization of RAO "UES of Russia" the
not-for-profit partnership STC shall exercise functions of an expert advisory body to
Minpromenergo and Rosenergo, as well as to target structure energy companies when forming
their technological policy, determining the priority course of scientific and
technological development of the electric power industry and other strategic issues.
The Board of Directors approved the sale of a shareholding in North-West Energy
Management Company (NWEMC), owned by RAO "UES of Russia" and Lenenergo, as a
The said company was established as a result of Lenenergo restructuring and does not
appertain to target structure companies. The company’s main form of activity is the
lease of real estate assets, as well as instant printing services and lease of IT systems.
At the moment RAO "UES of Russia" owns 48.99% shares in NWEMC and Lenenergo
owns 12.5% of the company’s shares. Together, this amounts to 61.5% of the authorized
capital of NWEMC. In order to maximize the selling value, the Board of Directors
commissioned RAO "UES of Russia" representatives to the Board of Directors of
Lenenergo to vote in favour of selling the said shareholding integrally with RAO "UES
The shares shall be sold through open auction. The starting price of the lot shall be
no less than the market value calculated by an independent appraiser.
The RAO "UES of Russia" Board of Directors was satisfied with the procedure
for the selection of a buyer for RAO "UES of Russia"-owned 98.56% shares in OAO
"Neftianoy Dom" proposed by the Project Centre for Disposal of Assets of RAO
"UES of Russia".
The sole significant asset of OAO "Neftianoy Dom" is the RAO "UES of
Russia" office building in Moscow on the Prospect Vernadskogo and includes property
rights for the land plot.
In total during pre-sale preparations over 4000 potential buyers - both Russian and
international companies, including developers, investment funds and holding companies –
showed interest towards the building up for sale.
The buyer of OAO "Neftianoy Dom" shall be determined on the basis of a
tendering procedure. Conclusion of a sales-and-purchase agreement is set for April 2008.
An essential of the sales-and-purchase agreement with the new proprietor of OAO "Neftianoy
Dom" shall be the right of RAO "UES of Russia" to lease office space up to
January 1, 2009. After the reorganization of RAO "UES of Russia" on July 1, 2008
a part of the building’s premises shall be occupied by a department, which shall take
care of the completion of all procedures related to the cessation of the Company’s
The Board of Directors made the decision to cease participation of RAO "UES of
Russia" in its wholly-owned subsidiary - Agency for Electric Power Industry Balances
Pursuant to the adopted decision, a shareholding in AEPIBF amounting to 75% - 1 share
shall be transferred to the Not-for-profit Partnership "Administrator of the Trading
System" in terms of a voluntary material contribution.
The remaining shareholding of 25%+1 share shall be sold to AEPIBF management. The
market selling price of 22.66 million rubles was determined by an independent appraiser
and approved by the Appraisal Committee of the RAO "UES of Russia" Board of
One of the conditions, on which the AEPIBF shareholding is being transferred to NP ATS,
is an option that is to be given to AEPIBF management to acquire, in three years time, an
additional 25% shares at the aforementioned price in conversion to one share and with
account of inflation.
At the moment AEPIBF is a wholly-owned subsidiary of RAO "UES of Russia" .
the agency’s main forms of activity are maintaining and developing of system-wide
forecasting and analytical functions currently being exercised by RAO "UES of Russia"
in post-reform conditions. A key result of AEPIBF operation in 2006-2007 was the
preparation of the General Scheme of Placement of Electric Power Industry Objects up to
2020 on commission from the Ministry for Energy and Industry of Russia.
In order to ensure objectivity of AEPIBF forecasts, the Board of Directors of the
Agency comprises, apart from RAO "UES of Russia" representatives,
representatives of profile ministries and departments, as well as executives of
infrastructural organizations of the electric power industry: System Operator, Federal
Grid Company, NP ATS, etc.
In order to ensure the system-wide nature of AEPIBF activities and the need to provide
for objectivity of the Agency’s work, it is crucial to ensure participation of all the
organizations of the industry and the State in AEPIBF.
This may be conducted by means of transforming AEPIBF from a wholly-owned subsidiary of
RAO "UES of Russia" into a company, a stake in which shall be owned by the
Market Council (being established on the basis of NP ATS), as well as selling shares to
the Agency’s management in order to motivate it to maintain and develop the company’s
The Board of Directors approved the program for the preparation and placement of
additional shares in TGC-14 aimed at attracting investments for the company’s
At its previous meeting on January 18, 2008 the Board of Directors commissioned the RAO
"UES of Russia" Management Boars to conduct all necessary measures for the
placement of additional shares in TGC-14*, which shall take place simultaneously with the
sale of company shares appertaining to the government stake.
Initially the requirement of investments resulting from the placement of additional
shares in TGC-14 and needed to fund priority "heat-grid" investment projects in
the cities of Chita and Ulan-Ude was determined at 2.3 billion rubles. Based on this
estimation TGC-14 planned to place a maximum of 327 billion common shares par value 0.001
rubles (42.03% of the authorized capital before the placement and 29.59% after).
In order to ensure reliability of heat and electricity supply to consumers an
additional project for the restoration and reconstruction of Ulan-Ude CHPP-1 was included
in the investment program of TGC-14 in February.
Primarily equity capital and borrowed assets of TGC-14 shall be used when financing the
investment program, which amounts to 7.2 billion rubles. However, in order to ensure an
optimum financing structure it is necessary to conduct and additional issue of share so as
to attract financial assets to a value of 4.15 billion rubles.
For these reasons at today’s meeting the Board of Directors commissioned the RAO
"UES of Russia" Management Board to review the possibility of increasing the
maximum volume of the additional issue to 590 988 100 000 shares (75.97% of
the authorized capital before the placement and 43.17% after) from the previously
anticipated 327 billion shares and placing this additional issue within the set time frame
of the reorganization of RAO "UES of Russia". Herewith, the additional project
for the restoration and reconstruction of Ulan-Ude CHPP-1 shall be considered at the
Commission for Investments and Fuel Supply in the near future. Upon its consideration and
the final coordination of the financial model the RAO "UES of Russia" Board of
Directors shall be informed of the precise volume of the additional issue.
Additional shares shall be placed through public subscription. The placing price shall
be determined by the Board of Directors of TGC-14 taking into account the recommendations
of financial advisor banks and the results of reviewing bids of potential investors.
Simultaneously a 33.6% government stake shareholding consisting of
261 476 659 691 shares par value 0.001 rubles shall be put up for sale. The
selling price of one government stake share shall be no less than the placing price of one
additional share. The proceeds from this sale shall be used to fund the investment program
of the Federal Grid Company.
RAO "UES of Russia" and System Operator shall sign a shareholder agreement on
the implementation of the generation company’s investment program with the new owner of
TGC-14, this agreement having been coordinated with the Ministry for Economic Development.
TGC_14 shall also conclude a capacity contract of the wholesale market with NP ATS, ZAO
CFS and System Operator.
It is planned that the meeting of TGC-14 shareholders on the issue of additional share
placement shall take place in April of 2008, the actual placement and sale of shares –
in May 2008. All transactions shall be completed no later than June 2008.
* TGC-14 supplies heat and electricity to consumers located n the Chita region and the
Republic of Buryatia. The total installed capacity of TGC-14 amounts to 633 MW. The
authorized capital of TGC-14 currently amounts to 777 945 609 rubles and is
built up of 777 945 609 114 common shares par value 0.001 rubles each. As
of January 18, 2007 common shares in TGC-14 have been admitted to trading on RTS floors,
as of January 26, 2008 – on the MICEX without listing. On June 8, 2007 the MICEX began
trading in common TGC-14 shares as part of the listed securities category "B"
The Board of Directors made the decision that RAO "UES of Russia" should
acquire 728 017 additional shares in Irganaisk HEPP to a total value of 5.324 billion
The placing price was determined by the Board of Directors of Irganaisk HEPP on
September 6, 2007 on the basis of the report of the Independent Appraisers Syndicate at a
value of 7 313.27 rubles per share.
RAO "UES of Russia" shall use profile assets including 100% of its shares in
Lenhydroproject HydroWGC as payment for additional shares.
During the final stage of HydroWGC target structure formation Irganaisk HEPP together
with Nizhne-Chereksk Cascade of HEPPs shall be merged into HydroWGC. The corresponding
decision was made by the meeting of shareholders of HydroWGC on October 12, 2007. As a
result of the merger scheduled for July 2008 assets used by RAO "UES of Russia"
as payment for additional shares in Irganaisk HEPP shall be transferred to the balance of
HydroWGC. Correspondingly Lenhydroproject HydroWGC shall become a wholly-owned subsidiary
HydroWGC – is the largest Russian generation company and the second largest
hydrogeneration company in the world by installed capacity(25 GW). The share of HydroWGC
on the Russian power market amounts to around 15%.
The Board of Directors acknowledged the report on the evaluation of the market value of
the blocking stake in RCS* owned by RAO "UES of Russia".
The market value of these shares determined by an independent appraiser and approved by
the Appraisal Committee of the RAO "UES of Russia" Board of Directors amounts to
3.1 billion rubles.
Pursuant to the decision of the RAO "UES of Russia" Board of Directors of
September 28,2007 the said shareholding shall be sold through open auction on March 27,
2008 with the intermediary of an investment bank. The starting price shall equal the
market value determined by an independent appraiser.
* Russian Communal Systems was established on May 29, 2003 as a private operator on the
housing and public utilities market in order to supply consumers with utilities, apply
new methods of management and technologies, as well as to form a competitive environment
and stabilize the utilities sector. Currently the authorized capital of RCS amounts to 1
billion rubles. IES-Holding and RAO "UES of Russia" are the shareholders of the
company. The company currently operates in 11 regions of Russia.
The Board of Directors commissioned RAO "UES of Russia" representatives to
management bodies of HydroWGC to approve the company’s participation in the
Not-for-profit Partnership "Administrator of the Trading System" (NP ATS).
NP ATS was established in November of 2001 pursuant to Russian Federation Government
Resolution № 526 of 11.07.2001 "On the Restructuring of the Electric Power Industry
of the Russian Federation" and is based on wholesale electric power market
As a result of the merger of Zhigulyovsk HEPP and SSHEPP named after P.S. Neporozhny,
which are members of NP ATS, into HydroWGC in January of 2008, the membership in NP ATS is
transferred to HydroWGC.