Investment Activity

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

Investment Activities up to 2015

The investment program of the Company for 2011-2015 was formed taking into account the receipt of federal funds in accordance with the RF Government Decree as of 01.12.2009 No. 977 "On investment programs of subjects of electric power industry" and approved by executive authorities of subjects of the Russian Federation:

• St. Petersburg – on 14.08.2010
• The Leningrad Region – on 31.08.2010

The investment program for 2011-2015 was formed in the amount of disbursement of capital investments of RUR 102.8 bln, and commissioning of fixed assets – in the amount of RUR 108.6 bln that constitutes 5,923 МVА of transformer capacity and 4,885 km of transmission lines in physical terms.

The company developed the plan of actions providing for the stage-by-stage modernization and replacement of the equipment, and revealed "bottlenecks" (overhang of crowns of trees on OTL-6-110 kV wires, discrepancy of 6-110 kV switches to SC currents, overload of power transformers and OTL-6-110 kV, emergency condition of AB, insufficient quantity of measuring devices and devices for electric power billing), liquidation of which will raise stability of work of the power supply system and reliability of power supply of consumers.

The largest and significant investment projects planned for implementation in 2011-2015:

- 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 with commissioning of 70 km of overhead transmission lines.
• Building of OTL 35 kV SS No.603 - SS "Elizavetinskaya" and SS "Elizavetinskaya" - SS No.604 with commissioning of 47 km of overhead transmission lines
• Reconstruction of SS 110 kV "Berezhki" with OTL 110 kV in the Volkhov area with installation of transformers of the total capacity of 12.6 MVA;
• Reconstruction of SS 110/10kV "Gazokompressornaya" with OTL 110kV, in Tikhvin area with installation of transformers of the total capacity of 12,6 MVA.

The investment program for 2011-2015 is focused on implementation of goals and objectives of the Unified technical policy in the electricity distribution complex. Following the results of execution of the Investment Program for 2011-2015, the increase in fixed assets will amount to RUR 108.6 bln, additional transformer capacity of 4,197 MVA will be commissioned, the length of transmission lines will be increased by 1,725 km, which will influence the increase in the capacity, reduction of accidents, and improvement of reliability of the power supply system.

Long-term plans of development of St. Petersburg and the Leningrad region

In accordance with the RF Government Decree № 823 as of 17.10.2009, the Company is implementing a set of programs to develop the electric power industry of St. Petersburg and the Leningrad Region.

Commissioned by the Government of St. Petersburg, in December 2010 there was completed the third adjustment of the "General Scheme for power supply of the city of St. Petersburg for the period up to 2015 with the perspective up to 2025". On the basis of this study commissioned by the Government of St. Petersburg in accordance with the Government Decree № 823 as of 17.10.2009, there is performed the work "Electric power industry development program of St. Petersburg" with the date of termination in July, 2011.

In the Leningrad region, the scheme of development of 35-110 kV networks was commissioned by JSC "Lenenergo" in 2007 for the period up to 2010. Commissioned by the Government of the Leningrad Region in accordance with Government Decree № 823 as of 17.10.2009, there is performed the work "Scheme and program of development of the electric power industry of the Leningrad Region for five years" with a date of termination in April, 2011.

Capacity shortage of the existing supply centers of 35 kV and above, with limitation of TC at the beginning of the year and up to the implementation of the investment program for the period of 2010-2015 in part of reconstruction of 35-110 kV substation was designed for the regime "N-1" with regard to the existing contracts on network connection with the term of capacity commissioning in 2010 and taking into account the long-term permissible loading of transformers by 105%.

Data on commissioning of 35-110 kV substations after reconstruction with increase in transformer capacity is cited.

Insufficient funding caused restrictions following the results of implementation of the investment program for the period of 2010-2015.

Implementable regional (federal) target programs

In 2010 JSC "Lenenergo" implemented the address program of the Committee on Construction of St. Petersburg "Capital repairs of educational institutions of St. Petersburg" within the frameworks of which there were connected and reconstructed 14 objects with the addition of capacity.