Investment Activity

• 6.1 Investment Program Parameters
• 6.2 Key Investment Projects of 2010
• 6.3 Investment Activities up to 2015

Key Investment Projects of 2010

With a view of implementation of events for provision of reliable electrical supply and creation of conditions on connection of consumers to electric networks, the Agreement on interaction between the Leningrad region, JSC "IDGC Holding" and JSC "Lenenergo" was concluded on 25.06.2010, and on 20.05.2010 - the Agreement on interaction between St. Petersburg, JSC "IDGC Holding" and JSC "Lenenergo" where there was defined the list of power supply network facilities of JSC "Lenenergo" subject to building and reconstruction in 2011-2015.

The volume of disbursement of capital investments according to the Agreements with the Administrations of St. Petersburg and the Leningrad Region constituted RUR 12,939 mln. There was commissioned RUR 13,664 mln of fixed assets, or 643 МVА of transformer capacity, and 1,268 km of transmission lines.

The largest investment projects of the Investment program for 2010 for St. Petersburg:

The Company performed works on the following objects within the program of technical upgrade and retrofit:

• For possibility of connection of new consumers in the Vyborg district of St. Petersburg on substation No.190 the replacement of the transformer of 16 МVА on 40 МVА was executed.
• For strengthening of the existing network of 0.4-10 kV in St. Petersburg the lining of 0.4-10 kV cable lines of the total of 43.2 km was performed.
• Reconstruction of 110 kV substation No.89 with cutting of the existing OTL 110 kV (building of CSW-10 kV, ODO, SB, ATMS, APCS and AFAD), which allowed providing reliable electrical supply of enterprises and population of northern areas of St. Petersburg was executed (including connection to power networks of "MEGA-Parnas" trading-commercial centre) was completed.
• Reconstruction of SS No.319 (ТМ and ATMS works), which improved reliable electrical supply of consumers of the Krasnogvardeyskiy district of St. Petersburg was completed.
• Works on reconstruction of SWG 110 kV SS No.14 (telemechanics equipment, RPAE, communications and AIMSPB were established) were completed.
• Reconstruction of SS 110 kV No.145 and transfer of SS from LR-1/2 for the supply from LR-3/4 (work on building of ODO combined with CSG 10 kV, installation and adjustment of ATMS, AIMSPB, communication equipment, RPAE) was completed that will provide possibility of connection of new loadings and raise reliability of electrical supply of consumers in the Frunze District of St. Petersburg.
• Development, production and installation of modular mobile substations of 110/10/6 kV of 25 MVA on SS No.90 - 1 piece, on SS No.92 - 1 piece for enhancement of reliability of electrical supply of consumers of the Vyborg and Krasnogvardeyskiy districts of St. Petersburg was performed.
• On SS 35/10 kV No.621 reconstruction with replacement of two transformers of a total capacity of 32 MVA for reliability enhancement and connection of new consumers of the actively developing infrastructure of the Kurort area was completed.

The Company proceeds with works on reconstruction of the objects in St. Petersburg, including the most significant ones:

• On SS 110 kV No.17 works on installation of RPAE panels, and repair of the roof of building were performed. The complete reconstruction of SS No.17 is expected in 2012.
• On SS 110 kV No.185 "Pushkin-Yuzhnaya" there were executed BAW and DSW of the 2^nd stage: there was commissioned T-1 transformer of the capacity 80 MVA, 5 cells of GISWG 110 kV, 4 sections of 6 kV and 4 sections of 10 kV, 2 current-limiting reactors of 10 kV and 2 current-limiting reactors of 6 kV, ATMS, AFED, external drainage, and load transfer crosspiece. The complete reconstruction of SS No.185 is expected in December, 2011.
• On SS No.223 construction works were executed, works on installation of equipment came to an end. Commissioning of the object input is expected in quarter 3, 2011.

In 2010, the Company launched design works on reconstruction of 110 kV substation No. 321 with the replacement of power transformers of T-1 and Т-2.

The largest investment projects of the Investment program for 2010 in the Leningrad Region:

The Company performed the works on the following facilities within the program of technical upgrade and retrofit:

• Pre-schedule commissioning in FA of SS 35/10kV No.40 "CRP" Kirishi after reconstruction, which improved electrical supply of consumers of the Volkhov and Kirishi areas of the Leningrad Region was performed.
• Reconstruction of SS 110 kV No.539 with input of transformer capacity of 25 MVA, providing improvement of electrical supply of consumers of Gatchina, Tosno, and Lomonosov areas of the Leningrad Region was completed.
• Reconstruction of SS 110/35/10 kV No.143 "Tikhvin-city", which allowed raising electrical supply of consumers of Tikhvin and Boksitogorsk areas of the Leningrad Region, was completed.
• Installation and connection of MMS 110 kV of 25 MVA on SS 110 kV No.525, caused by necessity of connection of new consumers and increases of reliability of electrical supply of existing consumers of Vsevolozhsk area of the Leningrad Region was executed.
• Pre-schedule reconstruction of OTL-110 kV HPP-10-HPP-11 (Severnaya-10) of 4.6 km which resulted in increase of capacity of electric power transit, and increase in reliability of electricity supply of consumers of Vyborg area.
• Reconstruction of SS-201 "Podporozhskaya", which allowed improving electrical supply of consumers of Podporozhsky area of the Leningrad Region, was completed.

The following facilities on new construction were commissioned into fixed assets:

• In the city of Slantsy there was commissioned SS 110/10 kV "Cement" of 126 MVA, which resulted in the possibility of connection of electric loadings of the "Cement" plant. Reliability of the electrical supply of the existing consumers of electric energy was improved, and there appeared the possibility of connection of new consumers of electric power in the Slantsy area and the city of Slantsy.
• The second CL 110 kV (K-157) of 0.79 km was laid on SS 110 kV "Kudrovo", which allowed implementing projects on building "KudrovoGrad", social facilities, facilities of small and medium-sized businesses and connecting LLC "IKEA Kudrovo".

The Company proceeds with the works on reconstruction and building of facilities in the Leningrad Region, including the most significant ones:

• Objects of technological connection of LLC "Gazprom Invest West":
  • Building of new OTL 110 kV from SS 110/35/10 kV No.26 to the projected SS "Portovaya" and reconstruction of SS No.26 (on OTL 110 kV there were installed 194 pylons out of 225, wires of 38 km out of 57 km were suspended. On SS No.26 there was installed a cell of 35 kV.
  • Building of OTL 35 kV SS No.603 - SS "Elizavetinskaya" and SS "Elizavetinskaya" - SS No.604 (there was constructed OTL 35 kV SS No.604 – SS " Elizavetinskaya " (167 pylons, 37 km), on OTL 35 kV SS No.603 – SS " Elizavetinskaya " there were installed 43 pylons out of 65. On SS No. 603 there was installed a cell of 35 kV).
  • Reconstruction of SS 110/10kV "Gazokompressornaya" with OTL 110kV, (there was installed the transformer of 6.3 MVA, ODO premises were constructed, there were installed the following equipment: OSG 110 kV, GISWG 10 kV).
  • Reconstruction of SS 110 kV "Berezhki" with OTL 110 kV (there was installed the transformer of 6.3 MVA, ODO premises were constructed, there were installed the following equipment: OSG 110 kV, GISWG 10 kV).
• Building of SS 110/10 kV "Leninskoe" with OTL-110kV (2 transformers of 40 MVA were installed, the building was constructed and the following equipment was mounted: OSG 110 kV, ODO 10 kV, and CSG 10 kV.
• SS 110kV "MEGA-Parnas" with setting of OTL 110kV (installed one transformer (temporary) of 25 MVA and one transformer of 63 MVA, the premises of SS were constructed, and the following equipment installed: CSG 110 kV, CSG 10 kV, constructed OTL 110 kV 2x0.5 km. The substation is supplied by one OTL 110 kV, connected by a tap to OTL 110kV "Pargolovskaja-2".)

In 2010, for provision of electricity supply of passenger high-speed movement on the direction of St. Petersburg – Vyborg – State border, JSC "Lenenergo" concluded contracts on technological connection of JSC "RZhD" objects, and launched pre-design and design works on the following facilities:

• OTL-110 kV "Kolpino-2". Reconstruction of sites (2^nd stage) – the agreement was concluded, the initial data for designing was given out;
• Installation of 2 cells of 35 kV on SS-110 kV No.159 – the project is executed, and is passing coordination;
• Installation of semi-complete sets of RPAE OTL-110 kV "Rocshinskaya" 1/4 on SS-110 kV No.56 and No.375 – contract draught coordination, issue of the initial data to the design organization.

The increase in commissioning of capital investments into fixed assets in relation to the fact of 2009 constituted 137% in 2010, which is associated with the statement on the balance of works executed within 2010 on o.4-10 kV distribution network on connection of consumers in the volume of RUR 3,657 mln, in 2009 – RUR 2,187 mln. The growth constituted RUR 1,470 mln. Besides, there were put on the balance the facilities under property contracts for a sum of RUR 5,477 mln, which exceeds the indicator of 2009 by RUR 2,565 mln.

The structure of the investment program changed with a growth tendency in all focus areas of capital investments that is associated with the increase in volumes of the investment program in general. Essential growth of capital investments on new construction is associated with the increase in reception of property under technological connection contracts, the increase in amounts of works on construction and reconstruction of 0.4-10 kV distribution network on connection of consumers.