General Information on the Company
Important Milestones in 2010
JANUARY 2010
Power engineering specialists celebrated the 66th anniversary of the date of the complete lift of the blockade of Leningrad on January 28, 2010.
Thousands carnations, candles of memory, words of gratitude and pride in the heroism of the favorite city were demonstrated. Employees of JSC "Lenenergo" and veterans of the Company laid wreaths and flowers at the "Motherland" monument and the memorial to power engineering specialists at the Piskarevsky cemetery. The memorable action of JSC "Lenenergo" is a tribute to all inhabitants of the blockade city. In 1942, the power blockade of Leningrad was broken, and Leningrad survived in many respects thanks to the feats of power engineering specialists. The besieged city was supplied with electricity via the "Cable of Life", which had been laid on the bottom of Lake Ladoga.
FEBRUARY 2010
JSC "Lenenergo" conducted a course on accident-free emergency driving in the Center of higher driver's skill. Safety was the main criterion to be met by the Company’s staff while driving vehicles.
Drivers of JSC "Lenenergo" received unique experience. A real ice rink was filled in the airport "Rzhevka". Drivers improved their skills in drifts and rotation. Drivers also improved their skills at braking on ice and use of automatic systems: anti-side slip, traction control systems and engine additional breaking systems. It was impossible to simulate such situations in usual conditions. This experience allowed the Company’s drivers to improve their skills of emergency control of vehicles in critical situations under winter conditions and also to systematize already available knowledge, and to rethink this knowledge taking into account the received information and to start development of a new car driving style – individual, safe and effective.
A modern supervisory console was opened in JSC "Lenenergo" branch "Tikhvin Power Distribution Networks".
The new supervisory console was opened at substation No. 143. All changes in the network are displayed on the electronic panel in real time mode. In the area of coverage of the branch – the Tikhvin and Boksitogorsk areas of the Leningrad region - there are 36 substations. Almost all of them are tele-mechanized. Operative communication with the personnel on duty and operative-exit crews is organized from a supervisory console.
The committee of the Board of Directors on strategy and development of the Company recommended to the Board of Directors to consider the possibility of placing Company’s securities through an additional issue.
The Committee meeting was held by Deputy Director General on Economy and Finance of JSC "IDGC Holding" Alexey Demidov. The Deputy Chairman of the Committee on Energy and Engineering of St. Petersburg, Andrey Sorochinskiy, and the member of the Board of Directors of the Company, Remes Seppo Juha, also took part in the Committee's work. Participants of the meeting discussed the parameters of the issue of the Company’s securities. The Committee recommended to the Board of Directors of the Company to consider placing the Company’s securities through an additional issue.
National Team of JSC "Lenenergo" took part in final competitions of the Second All-Russia winter sports festival of the power distribution grid complex of the country.
The sports festival was organized by JSC "IDGC Holding". This event rightly acquired the status of "all-Russian", as it brought together 13 teams and 200 athletes from the leading operating companies and the executive office of JSC "IDGC Holding". The venue of the event, as per tradition, was the "Zarya" pension in the Moscow region where, in February last year, the first National Winter Games were hosted. During the event competitions were held for cross country skiing (men - 10 km, women - 5 km), swimming (men - 100 m, women - 50 m), table tennis and chess. The Company was represented by a team of 15 people. The Company’s team won 11th place.
MARCH 2010
The Annual Day of the Donor took place on March 17, 2010 in JSC "Lenenergo". Nearly fifty employees of the Company joined the Blood Bank of St. Petersburg.
The exit station of blood transfusion worked at the building of the Executive Office of JSC "Lenenergo" in St. Petersburg at Constitution Square for 3 hours. Each employee of the Company had the possibility to become a donor. The principal condition was good health of participants. Out of 50 staff members of the Company, two had the rare IV blood type, and two others — a rare negative rhesus factor.
JSC "Lenenergo" took part in the X St. Petersburg International Energy Forum. This is one of the most respected federal industry events, which is organized annually on the eve of the St. Petersburg Economic Forum.
At the conference "Energy of the metropolis: the development of energy complex of large and medium-sized cities on the basis of energy-efficient technologies and advanced engineering decisions" Technical Director of JSC "IDGC Holding" Pavel Okley and Director for Technical Development of JSC "Lenenergo" Maxim Artemyev represented the Company and JSC "IDGC Holding" and reported as speakers. They observed that achieving the enormous tasks of complex interregional distribution network modernization and development could not have been done without considerable investments.
On March 25, 2010 the Board of Directors of JSC "Lenenergo" confirmed the Business plan of the Company for 2010. The meeting of the Board of Directors of JSC "Lenenergo" passed under the chairmanship of Nikolay Shvets - Director General of JSC "IDGC Holding".
APRIL 2010
JSC "Lenenergo" connected the European sulfuric terminal in the Kingisepp area of the Leningrad Region. The multifunctional complex of technical sulfur overload JSC "European sulfuric terminal", located in the commercial sea port "Ust'-Luga", was provided the necessary power of 7,370 kVa.
The power supply for the European sulfuric terminal is substation ¹ 549 "Port". During the construction of transformer substations necessary for joining the terminal, Lenenergo used the latest relay protection and automatic vacuum-and gas-insulated type that allows for maximum security of supply. To power the facility, cables with XLPE insulation were used. To provide the necessary power for the terminal the Company installed an additional 16 cells of 10 kV and reconstructed substation ¹ 549 "Port". Technological connection of the European sulfuric terminal opened up new opportunities for the development of the transport cluster in the region.
JSC "Lenenergo" top management answered questions of investment analysts. The heads of JSC "Lenenergo" held a meeting with representatives of the investment community where they discussed preliminary results and plans for the Company’s transition to RAB-regulation.
Among analysts who took part in the meeting were the leading experts of the largest investment funds: Troika Dialogue AM, IG "Energocapital", KIT Fortis Investments, Alpha Bank and others. Analysts highly appreciated management activity on an OPEX decrease. Technological losses were decreased as the result of the Company’s grid modernization; commercial losses were reduced as the result of implementation and development of the commercial metering system of electric power. The metering system development and grid modernization were the basic tools of the Company’s performance increase.
JSC "Lenenergo" connected 27 new houses to the power grid in which apartments for veterans of the Great Patriotic War were allocated. These objects are under special control of power engineering specialists. The company executed all obligations.
Apartments for veterans were acquired by the Property Fund of St. Petersburg according to the Decree of the President ¹ 714 "Providing housing to veterans of the Great Patriotic War of 1941-1945". Under JSC "Lenenergo" control, 2 blocks of buildings in Krasnoe Selo and 22 apartment houses (27 objects in total) were connected. Connection of the 20 buildings from the list the Company had been completely implemented back in 2009. On other objects, external power supply circuit was completed in 2010. The total volume of the associated power exceeds 19 MVA. Creation of external schemes of electricity supply included use of cables produced using the newest technologies with XLPE insulation which provide durability of networks and the maximum reliability of power supply.
JSC "Lenenergo" received the Certificate of compliance of its system of quality management to the International Standard ISO 9001:2008.
The Company introduced an integrated management system that optimizes business processes, reduces production costs, and discovers hidden resource development. An independent audit was done by the Certification Association "Russian Register". As a result, the quality management system of JSC"Lenenergo" was recognized to conform to the requirements of International Standard ISO 9001:2008 (ISO 9001-2008).
JSC "Lenenergo" developed standard requirements for electricity metering devices for various variants of the power connection point and voltage levels.
Adopted in late 2009, the Law on energy saving and energy efficiency (261-FL) requires energy consumers and producers to conduct the mandatory energy audits, installation of metering devices, introduction of a system of monitoring compliance with new requirements. The Company developed standard requirements for electricity metering devices for individuals, legal entities and individual entrepreneurs in accordance with paragraph 25 of the Rules of non-discriminatory access to electricity transmission and delivery of these services. Documents were posted on the official website of JSC "Lenenergo" in the subsection "Clients" - "Commercial metering of electricity".
MAY 2010
On May 20, 2010 St. Petersburg Governor Valentina Matvienko, Director General of JSC "IDC Holding" Nikolai Shvets and Director General of the Company Dmitry Ryabov signed an agreement on cooperation in the implementation of measures to ensure reliable electricity supply and creating the conditions for connection of consumers to electric networks.
On the official site of JSC "Lenenergo" (www.lenenergo.ru) the new service "Private office" – system of remote servicing, was created, which allows getting access to information on the status of technological connection agreement signing.
"Private office" is an effective tool for improving the transparency of the Company, which gives the chance to work with a power supply system at any time, in any place through a reliable, protected connection. Information on the computer screen is displayed in the mode of real time. For security purposes, data input into the system is possible only with a password - a secret set of characters. To obtain the necessary information about the stage of a technological connection agreement, a customer should enter the application number and personal password, which the customer can get in the Customer Service Centre of JSC "Lenenergo". After entering the registration data, the system shows what steps of the document signing have already been completed and when.
The Board of Directors of JSC "Lenenergo" decided to recommend to the Annual General Meeting of shareholders to pay dividends on preferred shares of the Company following 2009 results at a rate of RUR 3.4933366 per one preferred share.
The Board of Directors approved the agenda of the Annual General Meeting of Shareholders of JSC "Lenenergo":
- Approval of the annual report, annual financial statements, including the profit and loss account, as well as the distribution of income (including dividends) and losses on the results of the 2009 fiscal year.
- Election of members of the Board of Directors of the Company.
- Election of members of the Internal Audit Commission.
- Approval of the auditor of the Company.
- Approval of the Charter in the new edition.
Veterans of JSC "Lenenergo" noted the 65th anniversary of the Great Victory. Power engineering specialists honored the memory of colleagues who protected Leningrad during the Great Patriotic War and provided the blockaded city with energy.
On May 07, 2010, at the Piskarevsky cemetery in St. Petersburg, power engineering specialists laid flowers to the monument "Motherland" and honored victims with a minute's silence in memory of the fallen during the War. The solemn ceremony was held under the Banner of Victory. The exact copy of the flag 150th of the Order of Kutuzov of II degree Idritskoy Infantry Division erected by M.A. Egorov and M.V. Kantaria on the Reichstag building in Berlin was taken to St. Petersburg from Moscow. The relay of the Banner of the Victory was launched at the initiative of veterans of the electricity distribution complex of Russia. On May 13, 2010, a memorial monument in JSC "Lenenergo" with the names of power engineering specialists fallen in the siege of Leningrad and the Great Patriotic War of 1941 – 1945 was erected. More than 180 power engineering specialists were killed, who provided electricity to the besieged city, taking part in defensive battles.
JSC "Lenenergo" connected JSC "North-Western investment" to the power grids in the Gatchina District of the Leningrad Region.
The venture for the manufacture of plastic packaging for beverage and household products was given the necessary power of 2,500 KVA. The connection to power networks allowed taking a positive decision on the deployment of "North-Western Investments" in Gatchina to start six production lines. Because of this daily average production, units increased by several times and reached two million. The possibility of obtaining additional capacity resulted in higher tax payments and creation of an additional 100 new job places in the Gatchina District. To provide the necessary electricity capacity to the industrial complex, the Company installed two modern generators to lay new feeder cable lines with XLPE insulation - the most reliable modern material, which is produced only abroad. The source of power for the complex is a substation ¹ 224.
JSC "Lenenergo" summed up results of the autumn-winter period of 2009-2010. The Company provided a reliable electricity supply, despite the abnormal winter weather conditions.
The Company, despite adverse weather conditions, successfully passed the autumn and winter of 2009-2010. From November 15, 2009 to April 15, 2010, the Center for Hydrometeorology warned the Company of adverse weather conditions 54 times. The average air temperature in winter was two times higher than the average values over the past four years and amounted to -8.5 degrees C. In addition, the winter was abnormally snowy. Snow cover reached a peak of 54 centimeters. Records of daily consumption of electricity were registered four times only for the January 2010.
The Audit Committee of JSC Lenenergo, the largest distribution and networking company of the North-Western Federal District, approved the financial statements for 2009 prepared in accordance with International Financial Reporting Standards (IFRS), the consolidated financial statements and auditor's report were placed on the corporate website JSC "Lenenergo" (www.lenenergo.ru)
On the conclusion of the auditor: "Consolidated financial statements, in all material respects, the financial position dated December 31, 2009, as well as its financial performance and cash flows for the year ended were prepared in accordance with International Financial Reporting Standards". Key performance indicators of the Company for the period showed a positive trend. As of December 31, 2009 the Company's assets amounted to RUR 88,325,285 thousand, showing a 6% increase compared to the previous year. Long-term assets gained a dominant position in the assets’ structure - 89%. EBITDA for 2009 amounted to RUR 7,147,968, which is 32.8% higher than in 2008. This growth rate is associated with the growth of net profit of the Company. EBITDA margin also showed growth at the level of 31.4%.
JUNE 2010
JSC "Lenenergo" was recognized the as the best taxpayer in St. Petersburg. On June 04, 2010, at Smolny, the Governor of St. Petersburg Valentina Matvienko awarded diplomas to twenty heads of the companies – leaders on tax payments in the region budget.
The amount of the Company’s tax payments in the city budget in 2009 amounted to RUR 522,295 million. A certificate of the best taxpayer is a sign of quality of the Company that also express a special degree of trust to the enterprises which carried out their obligations to the state in a full degree" – Valentina Matvienko said.
JSC "Lenenergo" was a participant of the XIV St. Petersburg International Economic Forum. Power engineering specialists not only took part in the Forum, but also provided power safety in the regions of the Company’s operational activity.
During the XIV International Economic Forum in St. Petersburg, JSC "Lenenergo" worked in the emergency mode. The cities of Pushkin, Pavlovsk, and Petrodvorets were taken under intensive supervision. A central subject is FGU GC "Palace of Congresses" (Konstantinovsky Palace), the official residence of the President of the Russian Federation. Operative and repair crews of JSC "Lenenergo" were set on round-the-clock mode. Power engineering specialists worked without failures.
On June 21, 2010, the Annual General Meeting of Shareholders of JSC "Lenenergo" decided to pay dividends on preferred shares of the Company following the results of 2009, and elected the new composition of the Company Board of Directors.
The meeting confirmed the annual statement and the annual accounting reporting of the Company for 2009, including the profits and losses statement. Shareholders decided to pay dividends on preferred shares at a rate of RUR 3.4933366 per one preferred share as well. The Company Internal Audit Commission was elected, and the auditor of the Company JSC "HLB Vneshaudit" was approved. JSC "Lenenergo" Charter was also approved in new wording.
On June 25, 2010 JSC "IDGC Holding", JSC "Lenenergo" and the Government of the Leningrad Region signed the tripartite Cooperation agreement at implementation of measures to ensure reliable electrical supply and creation of conditions for connecting consumers to electric networks. This document determines development of electric grids of the region until 2015.
The Agreement is directed to ensure reliable and uninterrupted power supply, connection of new consumers and the efficient development of power grid facilities in the Leningrad Region. The estimated amount of investment in construction of power objects is over RUR 19 billion. Sources of funding are the tariff for electricity transmission based on long-term parameters using the method of return on invested capital (the RAB method of tariff regulation) and payment for technological connection. Program implementation of priority actions of Lenenergo in the Leningrad Region for the period 2010-2015 envisages the construction of six new substations 35 - 110 kV, upgrading more than 22 energy sources, as well as updating existing and installing new overhead and cable lines (110-35 kV).
JSC "Lenenergo" approved the environmental policy with the main principle of "Baltika – an environmental comfort zone".
The environmental policy of the Company was developed in line with the government strategy in the field of environmental security and regional environmental protection programs. Its purpose is to structure work to ensure environmental safety. The Company recognizes the priority of environmental security as an integral part of national security and takes responsibility for ensuring environmental protection during the operation and development of power generation facilities in St. Petersburg and the Leningrad Region.
JULY 2010
The Board of Directors of the Company elected the Director General of JSC "IDGC Holding" Nikolay SHVETS, the Chairman of the Board of Directors, and the Vice-governor of St. Petersburg, Alexey SERGEEV, the Deputy Chairman of the Board of Directors of the Company.
The structure of Committees and chairpersons as well as members of the Committees of the Board of Directors of the Company was approved. The Committee for Strategy and Development was headed by Deputy Director General for Economy and Finance of JSC "IDGC Holding" Alexey Demidov. Pavel Okley, Deputy General Director - Technical Director of JSC "IDGC Holding", was elected as chairman of the Reliability Committee.. The Committee on HR and Remuneration will be chaired by Deputy Director General - Executive personnel manager of JSC "IDGC Holding" Alexander Popov. Remes Seppo Juha, Director General of LLC "Kiuru", was approved as Chairman of the Audit Committee , while the Committee on technological connection to power grids was headed by the Director of the M&A Department of JSC "IES", Mikhail Azovtsev.
Andrey Sorochinskiy, earlier holding of the post of the Deputy Chairman of the Committee on power and engineering of St. Petersburg, was elected as the new Director General of JSC "Lenenergo".
Andrey Sorochinskiy was elected by decision of the Board of Directors of the Company. From July, 2004 until July, 2010, he held the post of Deputy Chairman of the Committee on power and engineering of the Government of St. Petersburg (PhD in Economics). In 2001, he defended a dissertation on the theme "Investment crisis in modern Russia and the role of fuel and energy complex in its overcoming", which was awarded by certificates of honor of the Ministry of Regional Development of the Russian Federation and letters of commendation by the Governor of St. Petersburg.
AUGUST 2010
Andrey Sorochinskiy, the general director of JSC "Lenenergo", presented vectors the Company’s development. A qualitative "reboot" of business processes was started in the Company.
JSC "Lenenergo" tightened its control over the work of contractors to maximize the fulfillment of obligations on technological connection to power grids. The company continued to set measures for quality improvement of operational maintenance and overhaul equipment maintenance to reduce technological incidents in the networks of 6 - 110 kV.
JSC "Lenenergo" proceeded with electric network assets consolidation. On August 16, 2010, the Company acquired 96.95% of the share capital of JSC "Tsarskoselskaya Power Company" and 98.13% of share capital of JSC "Kurortenergo".
The Board of Directors approved the decision (Minutes No.3 of 02.08.2010) to acquire shares of JSC "Tsarskoselskaya Power Company" through the acquisition of 8,501 (eight thousand five hundred and one) shares on July 30, 2010, representing 96.95% of the share capital of the Company (ordinary shares after the acquisition - 98.93%) and participation of JSC "Lenenergo" in JSC "Kurortenergo" through purchasing 1676 (one thousand six hundred and seventy-six) shares, representing 98.13% of the share capital of JSC "Kurortenergo" (share of common stock after the purchase - 99.75%).
JSC "Lenenergo" fully restored electricity in the Leningrad Region after a series of powerful hurricanes. Power engineering specialists carried out a tremendous amount of work that is comparable in scale to the annual investment program: they restored 1,121 miles of OTL 6 / 110 kV.
In the epicenter of hurricanes the wind velocity is comparable to that of American tornadoes, with wind speed of 60-100 m/sec. At such wind speed, wooden and reinforced concrete support of transmission lines, designed to sustain storms (25 m/sec), break like a match. A considerable part of overhead lines of 6-10 kV were completely destroyed. Thousand of pylons were tumbled down. If we connect all the wires torn by the hurricane, their length shall exceed 600 km.
The headquarters for emergency response of the Government of the Leningrad Region was in control at eliminating the consequences of hurricanes. The Company’s maintenance team worked in a round-the-clock mode for prompt restoration of the power supply system to other power companies of the Northwest. As a result, JSC "Lenenergo" recovered 2,131 pylons in the shortest possible term, as well as 2,900 km of wires, which is the distance from St. Petersburg to Chelyabinsk. JSC "Lenenergo" re-established 60 transformer substations of 35 - 110 kV, and renewed work of 4,141 substations of 6-10 kV. Thanks to the operative actions of power engineering specialists electric power was provided to 1,074 settlements with a population of 293,806 people. Experts noted that the Company regained power in the Leningrad Region in the shortest possible time. A significant part of electrical networks were virtually rebuilt.
A satellite system for monitoring the Company’s vehicle location became the most innovative exhibit at the St. Petersburg show of special equipment. This system allows the dispatcher to find out vehicles position with several meters accuracy.
JSC "Lenenergo" implemented navigation modules for machines operational outreach. Now the route, fuel consumption, report on the stops and even information about the speeding effect is delivered on the control monitor. The company also showed an emergency repair car GAZ - 3309, truck tractor with semi-heavy trucks, an excavator - loader JCB 3SH Super, crane-based vehicle-terrain Ural - 4320 and an electrical engineering laboratory. The Company has 1,098 vehicles at its disposal and machines for operational activity and the emergency situation support. Since 2007, the Company’s transport stock was updated by 30 percent. Each year, the company gets from 80 to 100 transport units to enhance the Company’s provision with modern vehicles.
SEPTEMBER 2010
Company’s team participated in the All-Russian competition for professional skills teams servicing high-voltage power lines.
Power engineering specialists from Volgograd, Syktyvkar, St. Petersburg, Perm, Kaliningrad, Moscow, Kuzbass, Udmurtia, Smolensk, Stavropol, Surgut, and Samara replaced garlands of porcelain insulators on the glass, put together 12 pieces of torn wire of pylon on air lines of 110 kV, put out the "fire" at the site 36 times, and answered nearly 2,000 questions on computer tests. They took more than a dozen foreign objects with wires, and "Gosha", the victim of electrocution, was saved four times in the one day competition. Oleg Mizinin, an electrician maintenance power specialist of transmission lines of 5 OL electrical network affiliate of Lenenergo - "Regional Power Grids", was recognized by the judicial team as the best participant.
JSC "Lenenergo" implemented new methods of wooden pylon diagnostics. These new methods will considerably increase the speed of elimination of technological failures in networks of the power complex.
The Company’s specialist tested devices based on an acoustic method for determining the status and quality of wood. The device is called a linear state-meter Universal or PIM-U.
Andrey Sorochinskiy, Director General of JSC "Lenenergo", conducted a number of meetings with the heads of contracts organizations. New principles of interaction were proclaimed: rigid control, timely obligation fulfillment.
Encouraging competition in all phases of construction, repair, maintenance and power distribution networks became one of the main Company management principles in relationships with contractors. Determining the timeliness of execution is a contractor of its obligations to build the distribution network in accordance with the parameters of the Company’s business plan, which affects the quality of work on technological connection.
JSC "Lenenergo" revives the tradition of mentoring. The company will pay for training promising students of profile colleges and universities. In addition, a "reboot" of the overall human resources policy was started.
JSC "Lenenergo" is reviving the practice of professional coaching. The return of this tradition is intended to address a number of strategic goals. Nowadays the number of young professionals under the age of 25 years is 9.2% of the total number of Company staff. Communication between generations and the transfer of skills should bring a qualitatively new level of rationalization and innovative activity, technological innovations and implementation of advanced technologies as well.
JSC "Lenenergo" proposed developing temporary rules for cutting down trees near power lines.
The Company’s top management initiated the development of the Provisional Rules for design work on the clearing of timber land in protected areas of overhead power lines, cutting down trees that threaten power lines to fall from the forest outside of protected areas. The Company’s Director General Andrey Sorochinskiy acted with such a proposal at a meeting of the Leningrad Region Government.
Cutting down trees within the protected zones of overhead lines, not only within the project rides, will significantly increase the reliability of electricity supply.
JSC "Lenenergo" developed an extensive program of tele-mechanization of substations. Within a year and a half emergency repair teams should be able to start the location process of possible failures in the network remotely with the use of laptops.
The program will provide the opportunity to respond quickly to emergency situations that will allow considerably reducing the time of removal technology failures in the network. The Company’s program involved the installation of tele-mechanization systems - 21 substations of the Leningrad Region, the modernization of the operational and information management systems (OIMS), and the organization of 221 communication channels.
OCTOBER 2010
JSC "Lenenergo" plans to enter 100% electric power accounting. The basic theses of the program of power savings and increase of power efficiency of the Company were sounded at the First inter-regional conference “Power efficiency in the industry»”.
The program of power savings and increase of power efficiency of JSC "Lenenergo" for the period 2010 - 2015 provided the introduction of Smart Grid modern technologies, application of intellectual systems of accounting of power resources - Smart metering, increase of efficiency, reliability and adaptability of work of electric networks of JSC "Lenenergo" and stimulation of end users to power savings. The Company plans to modernize and establish 466,350 complexes of commercial accounting in 2010-2015. This will make it possible not only to receive trustworthy information about the volumes of transferred electric power, but also to lower commercial losses in networks.
The Company’s Board of Directors formed a new composition of the Board.
Four new board members were elected to the Board of Directors. They are the deputy general directors Grigory Kharenko, Vladimir Khrenov, Artem Petrov and Maxim Artemyev.
JSC "Lenenergo" held the Second St. Petersburg power forum "Technological connection: modern aspects" from October 25-27, 2010, a professional platform for power engineering specialists supported by JSC "IDGC Holding" and the Committee on Power and Engineering of St. Petersburg.
Gennady Binko, Deputy Director General of JSC "IDGC Holding", Andrey Sorochinskiy the Director General of JSC "Lenenergo", Sergey Podkolzin, Head of the Department of Ministry of Energy of Russia for NWFD, , Alexander Kukhmaj, Director General of JSC "Northwest IDGC", , Michael Kolesnikov, Member of the Presidium of the all-Russian public organization of small and medium business SUPPORT of Russia, and others took part in the plenary session of the Forum.
JSC "Lenenergo" launched the "Neva DSK" substation after reconstruction.
On October 21, 2010 the Governor of St. Petersburg, Valentina Matvienko, and the General Director of JSC "Lenenergo" opened the renewed power source of the Frunze area – substation 110 kV "Neva DSK" No.145. The substation has been almost newly constructed. Modern methods of design and substation equipment using highly effective equipment made it possible to increase the capacity of the power source more than in 4 times, and also considerably improved the reliability of the power supply of consumers providing accomplishment of modern rates on labor safety, raising efficiency of management of the substation in various operating modes. Substation ¹ 145 was completely automated. Among its consumers there are a number of large city industrial enterprises, such as JSC "Obuhovsky Factory", State Unitary Enterprise "Vodokanal" branch, JSC "LEMZ-OBUHOVO", and JSC "Zapstroykomplekt". The total cost of the project totaled RUR 776 mln.
JSC "Lenenergo" presented the GIS system - the electronic atlas of all Petersburg communications with tight coupling to districts.
The geo-information system was developed in the Company based on a database grid infrastructure of St. Petersburg. With this system, new schematics are displayed in "real time" on an electronic map. Also, the system can calculate network modes i.e., it can make the best choice of equipment for technological and technical parameters.
JSC "Lenenergo" Board of Directors approved the corrected business plan of JSC "Lenenergo" for 2010. The target for the Company’s net income for 2010 was increased by 78%. As a part of the Company’s business plan the investment program for 2010 with adjustments was also approved.
Financing of the Company’s investment program was increased by RUR 2,796 mln and totaled RUR 15,183 mln, which is 22% higher than the previously planned target. Accomplishment of the Company’s investment program was also increased up to RUR 3.21 mln with 22.6% growth. This was the main cause of the Company's BP adjustments.
NOVEMBER 2010
JSC "Lenenergo" connected a sandpit of the "Cement" factory in the Slantsy District of the Leningrad Region. The power supply is 110/10 kV substation No. 209 "Rodina".
The factory Cement already extracted limestone for cement production. It equipped the crushing-sorting complex, pumping stations and mechanical repair area. The Company developed a specification for the factory technological connection. To create an external power supply scheme a new power supply line 10 kV from a new cell switchgear 110/10 kV "Rodina" was installed to the transformer substation. The Company provided for a sandpit area of more than 100 hectares 800 kVa. The mineral deposit "Duboyem" is located 16 km to the north-east of the city Slantsy and 1.5 km to the south of the railway station Vervenka in the direction of St. Petersburg - Gdov (Pskov region).
JSC "Lenenergo" participated in the IV Annual international conference "Best practices of Investor Relations".
The conference “Best practices of Investor Relations” is an international platform which annually collects specialists and experts in the IR-area, where forecasts of development of an economic situation, experience of modernization of the investment concept (investment story), modern practice of information disclosure, and advantages and disadvantages of M&A of public companies are discussed.
On November 09, 2010 a conference call of the Company’s top management with investment analysts took place. Adjustments to the Company's Business Plan, such as the investment program revision and net profit increase of 78% were discussed via the conference call.
JSC "Lenenergo" received a passport of readiness for the autumn-winter period 2010-2011. The document officially confirmed that the Company was ready for the winter period. For power engineering specialists this event is a kind of annual examination of the quality of carrying out the maintenance program as well.
Network-wide response exercises were held in all Company’s branches. Successfully completed joint exercises were held with the Ministry of Emergency Measures, the municipal administrations, Leningrad RDO, including JSC "Northwest MES", and generating companies. The Company repaired more than 4,000 km of overhead lines 110-0,4 kV and nearly 3,000 110-0.4 kV cables, replaced more than 22,000 insulators on overhead lines 110-0,4 kV transformer substations rehabilitated in 1525 and almost 700 switches 6 - 110 kV over 10 months. In order to be able to quickly find the damaged power lines, a contract for helicopter over flights of IL 35 - 110 kV was signed. Thus, in 2010, using laser aero-scanning, a helicopter surveyed nearly 200 kilometers of overhead lines 35 - 110 kV.
To support the operation of electrical networks in emergency situations, schemes of diesel generators use were developed. The Company’s balance has 15 such plants with a total capacity of 3.9 MW. The emergency stock of materials is formed at 100%.
The Governor of St. Petersburg, Valentina Matvienko, handed over to Andrey Sorochinskiy, Director General of JSC "Lenenergo", the diploma of the winner of the Competition "Made in St. Petersburg-2010".
The Company proposed a new method for determining the state of the cable line. Previously the Company used the easiest way - high voltage cable test DC, since only the estimated state of isolation. The draft of JSC "Lenenergo" features the assessment of technical condition of cable lines with advanced technology: the method of partial discharge is the reverse voltage. According to the results of such measurements, one can predict the state of the cable line (CL) for a certain period of time.
RTS stock exchange awarded JSC "Lenenergo" for information disclosure.
The results of the XIII Competition of Annual Reports organized by the RTS Stock Exchange were tallied on November 19, 2010. JSC "Lenenergo" won first place in the nomination for the best disclosure of information in the Annual Report among companies with capitalization from RUR 10 to 100 bln".
A record quantity of Russian and foreign companies, 138, participated in the Competition of Annual Reports in 2010, from practically all sectors of economy: oil-extracting, metallurgy, financial, telecommunications, FMCG and others. The Competition organizers made special mention of the grid network (IDGC) companies as the basic driver in the field of information disclosure increase by Russian public companies.
The Vice-governor of St. Petersburg, Alexey Sergeev, and Director General of JSC "Lenenergo", Andrey Sorochinskiy opened the renewed power source of the Vyborg area – 110 kV substation "Parnas-Communal" No. 89 on November 25, 2010.
Works at the substation were conducted in three phases. In 2007, the open distribution system of 110 kV was reconstructed using modern high-voltage equipment produced by ABB. In 2008-2009, power cable 110 kV fiber-optic line was laid, a new control building was built – a management point which has equipment installation DC, relay protection and automation, energy metering, telemetry, and communications. In 2010, the power engineering specialists control management point enclosed to Switchgear 10 kV to accommodate cells of complete switchgear 10 kV, to reschedule existing building control equipment installation of automated process control systems (APCS). The project cost totaled RUR 710 mln.
JSC "Lenenergo" published consolidated results under international standards of financial reporting (IFRS) for the first half of the year 2010.
The financial report of JSC "Lenenergo" for the 1st half-year of 2010 was prepared according to IFRS standards, and checked by the independent auditor company Ernst&Young, and was considered by the Company’s Audit Committee on November 23, 2010.
The profit on ordinary shares – base and diluted – increased to RUR 0.23 (following the results of the 1st half-year 2009) to RUR 2.54 (the data following the results of 1st half-year 2010). For the first half of the year 2010, sales revenue grew by RUR 3,251,778 thousand, or by 32% in comparison with the similar period of 2009, and totaled RUR 13,285,112 thousand.
The size of shareholders profit of the parent company for six months as of June 30, 2010 reached a peak of RUR 2,586,336 thousand, which is RUR 2,348,108 thousand, or 985.6% more than for the similar period of 2009.
DECEMBER 2010
JSC “Lenenergo” and a branch of JSC "UES FGC" MES North-West agreed to synchronize investment programs. The agreement was signed at a meeting of the Governor of St. Petersburg with JSC "Lenenergo".
The Company General Director Andrey Sorochinskiy and Director General of JSC "FGC UES" MEA Northwest Valery Ageyev signed a five-year agreement of cooperation. The document provided for the synchronization of investment programs in order to improve operational control and development of power grid facilities of St. Petersburg until 2015.
The JSC "Lenenergo" Board of Directors approved the Business plan on December 27, 2010, including the investment program of the Company for 2011.
The planned operational revenue for 2011, according to the Business plan, edged up RUR 42,475 mln, which is 29% higher than the similar indicator for 2010. As a result of such growth, JSC "Lenenergo" should get total profit about RUR 8,058 mln, which is higher than 2010 data by 56%. The investment program for 2011 picked up by RUR 22,662 mln.
On December 28, 2010 FTS of Russia approved JSC "Lenenergo" transition (including the St. Petersburg and the Leningrad Region) to the new method of tariff regulation (RAB) from January 01, 2011.
JSC "Lenenergo" started reconstruction of substation 110 kV ¹ 720 in the settlement Mga. The project will be finished by the end of 2011.
Reconstruction of 110 kV substation ¹ 720 "Mga" will take place in two stages. The first - the installation of the transformer capacity of 16 MVA - ends in July 2011. Implementation of the project will be completed by the end of 2011. Power engineering specialists will install a second transformer capacity of 16 MVA to increase the total capacity of 12.6 MVA substations to 32 MVA. This greatly improves the quality of electricity supply and enables the connection of new consumers. Also in the second half of 2011 on the reconstructed energy sources switchgear KRUN 10 kV should be completely replaced, introductory high-voltage equipment, installing modern gas-insulated breakers 35 kV device telemetry, communications, and RZA on the basis of microprocessor protection. The final goal is to provide residents of Mga with a new source of energy.
Substation ¹ 720 is completely automated and does not require the constant presence of staff. Control and management is carried out remotely using equipment automated process control systems and transmission of telemetry data in the Network Center of the Company.
JSC "Lenenergo" connected the new station of the St. Petersburg underground "Obvodnoy Canal" to electric networks.
The power supply for the new station is substation 110 kV ¹ 542 "Borovaja". The allocated capacity is 2850 kVa. For creation of the external scheme of an electrical supply of power established modern vacuum switches in several cells of substation ¹ 542, on the basis of digital relays adjusted relay protection and automatics, equipped counters of accounting of the electric power. A distribution transformer substation (RTP) was built as well as two cable line 10 kV on the embankment "Obvodnoy Canal", laid from the power supply to the new RTP according to technical specifications.
The Minister of Energy of the Russian Federation, Sergey Shmatko, awarded the General Director of JSC "Lenenergo" Andrey Sorochinskiy with the government award.
The Department of Energy of the Russian Federation noted General Director of JSC "Lenenergo" Andrey Sorochinskiy with the "Rising star". The award was handed over by the Minister of Energy Sergey Shmatko in Moscow at a ceremony devoted to the Day of power engineering specialists and the 90th anniversary of creation of the GOERLO Plan.
JSC "Lenenergo" developed special regulations on technological connection to electric networks in the Leningrad Region.
JSC "Lenenergo" modernized the mechanism of technological joining to electric networks – the special regulations on technological connection in the Leningrad Region were developed. The process of connection to electric networks of JSC "Lenenergo" became more transparent and effective. The regulations on technological connection, which accurately structured all stages of this process, were brought into accordance with the existing legislation.
JANUARY 2011
Starting from January 01, 2011 JSC "Lenenergo" works according to a new method of tariffs regulation (RAB regulation).
Taking into account that the tariff was established for five years, JSC "Lenenergo" can predict both its expenses and incomes for some years forward. Transition to RAB first of all allowed implementing the investment program for St. Petersburg and the Leningrad Region necessary for development in a total amount of more than RUR 100 bln, which will raise the reliability and quality of electricity supplies to consumers. Borrowed funds with low interest rates and profit which was accounted in tariffs are the sources of financing for implementation of the investment program.
JSC "Lenenergo" completed technological connection of the "Cement" plant in the Slantsy area of the Leningrad Region.
Power supply source for the new plant became 110/10 kV substation No.219 "Slantsy-Cement". The Company provided 50,000 kVa to the whole plant. The Company developed a specification for connecting to the power grids of the plant. To create an external power supply scheme, a new substation "Slantsy-Cement" was constructed, with total capacity of 126 MVA 110/10 kV voltage.
Modern relay protection and automation at the new substation was executed on a microprocessor-bases. In addition, power sources were installed sensors and telemetry was the transfer of data to the regional dispatching power systems of St. Petersburg and the Leningrad Region. For reference - in November 2010 the Company connected the "Cement" quarry plant, located on the limestone deposits "Duboem".
A telephone conference of JSC "Lenenergo" top-management with investment analysts took place on January 26, 2011.
FEBRUARY 2011
JSC "Lenenergo" took part in the Forum "Russia-2011" on February 02-04, 2011.
This annual event of the investment society of Russia and the CIS countries was set as a meeting place of leaders of business community, investors, heads of official bodies and the ministries, and well-known experts and scientists.
Among speakers were the Vice-president of the Government, Minister of Finance of the Russian Federation, Alexey Kudrin, the assistant to the President of the Russian Federation, Arcady Dvorkovich, Mayor of Moscow, Sergey Sobjanin, Chairman of the Board of Sberbank of Russia Herman Gref, Deputy Director General on finance and investments of JSC "Aeroflot" Shamil Kurmashov.
The Company was represented by General director Andrey Sorochinsky, Deputy Director General on corporate governance Grigory Kharenko, Director on Economy Tatyana Sudakova and Director on Finance Victor Punov.
On February, 3rd, 2011 the Company’s top management carried out one-on-one meetings with representatives of Uralsib Asset Management, Prosperity AM, Troika Dialogue, Templton AM, Vermut AM, SPRING, and East Capital and discussed forecasts for the Company’s development and additional issue of ordinary shares in 2011-2013 as well. The management highlighted key drivers of Company’s value growth in 2011.
The Forum’s primary subject was changing the paradigm of world and Russian economy. The Forum organizer was Troika Dialogue investment company .
JSC "Lenenergo" started reconstruction of substation ¹719 "Shapki" in the Tosno area of the Leningrad Region.
JSC "Lenenergo" tripled the capacity of substation 35/10 kV "Shapki" in the Tosno area of the Leningrad Region. Reconstruction was started; the project will be finished by the end of 2011.
JSC "Lenenergo" declared the winners of the inter-regional competition in journalism "Energy of the word".
More than 30 nominees (about 60 publications) who are journalists of St. Petersburg and the Leningrad Region participated. "The best publication on the theme of technological connection" (technological connection to electric networks of JSC "Lenenergo") was won by correspondent Olga Loskutova who presented materials published in the magazines "Prigorod" and "Federal infrastructure and economy".
In the nomination "Dynamical economy" (financial and economic news about JSC "Lenenergo") there were two winners: Andrey Zhukov, the editor-in-chief of RBC daily St. Petersburg, and Mikhail Muravev, correspondent of "Interfax" news agency.
JSC "Lenenergo" started building a new distribution network in the Osmino settlement of the Leningrad Region.
JSC "Lenenergo" started construction of a new distribution electric network in the Osmino settlement in the Luga area of the Leningrad Region. Power engineering specialists established 372 ferro-concrete pylons and paved more than 10 kilometers of air-lines of 0.4 kV. Another two kilometers will be paved by the project end.
Reconstruction of networks of 0.4 kV was continued in the Luga district of the Leningrad Region. In the Osmino village specialists of the Company’s business unit "Luga PDN" implemented an additional transformer substation kiosk type and two transformer substations (TS) were modernized. As a result, the total capacity of power sources doubled and reached 1.7 MVA. By the summer of 2011, two complete TP will be constructed in the village, and the total capacity will reach a peak of 2 MVA. The updated electrical network provides uninterrupted power supply for 2,000 inhabitants of the village and allows providing connection to new consumers. It also boasts several socially important objects: the House of Sisterly Living, first aid station, and Recreation Centre.
On February 18, 2011 St. Petersburg and Leningrad region recorded a new high of daily current consumption in 2011. JSC "Lenenergo" fixed a new maximum indicator – 7,469 MW.
The previous record had been established on January 28, 2010 – 7,402 MW. In general, in January 2010, the Leningrad power supply system beat the record of daily consumption with a mark of 7,135 MW. The electrical supply to consumers was carried out without serious technology failures and outages.
MARCH 2011
Lenenergo and Social Council for Small Business Development under the Governor of St. Petersburg opened a public reception at the St. Petersburg "House of the Entrepreneur".
Every Thursday at the House of the Entrepreneur the leaders of energy companies meet with representatives of small businesses. The Company organized the so-called "remote workplace" - access to the customer base of the Company, which allows solving problematic issues of technological connection of small businesses to the power grids in on-line mode.
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