Annual Report of the Open Joint-Stock Company «Yenisei Territorial Generation Company (ТGC-13)»” for 2006 (стр. 7 )

SEAL

January 2007

Profit Distribution and Dividend Policy 35

PROFIT DISTRIBUTION

AND DIVIDEND POLICY

Company’s dividend distribution, thousand rubles	GOSA following the results of 2005
Net surplus (loss):	19 401
Contingency fund	970
Accumulation fund	3 144
Dividends	15 287
Investments	-
Settlement of losses of last years	-
Other purposes	-

On June, 10th, 2006 the Annual General Meeting of Shareholders (Management Board of OJSC RAO “UES of Russia”, minutes № 000 min/2) made the decision on dividend payments under the Company’s ordinary shares by the results of the 1st quarter of 2006 at a rate of 19,835588 rubles per one ordinary share of the Company in the monetary form within 60 days from the date of payment decision-making.

Dividend payment for 2005 and 1st quarter of 2006 was made within the scheduled dates (60 days from the date of payment decision-making ) in full amount.

The general amount of the dividends paid under all shares of the emitter of one category (type) on each reporting period for which the decision on dividend payment was made:

15 ,00 rubles paid for 2005 ;

10 ,00 rubles paid for the 1st quarter of 2006 .

Investment Activity 36

INVESTMENT ACTIVITY

JSC “Yenisei TGC (TGC-13) “

(OJSC “Khakass Generation Company”)

Modernization and reconstruction of capital equipment in 2005, *****bles

Investment directed	Plan	Actual	Fulfillment, %
Reconstruction and modernization	68,34	67,8	99,2
New construction	5,52	6,0	109

*****bl plan actual Investments of OJSC KhGC

in 2005

Investments total Reconstruction New construction

and modernization

Direction of investments

Investment Activity 37

Modernization and reconstruction of capital equipment in 2006, *****bles

Investments directed	Plan	Actual	Fulfillment, %
Reconstruction and modernization	52,69	54,95	104,3
New construction	33,94	31,67	93,3

*****bles plan actual Investments of OJSC KhGC

in 2006

Investments total Reconstruction New construction

and modernization

Direction of investments

Sources of financing of investment programs of the Company

Sources of financing in 2005

Source of financing investment programs - depreciation charges.

Sources of financing in 2006

The business plan of the Company for the reporting period forsaw financing of the investment program at the expense of depreciation charges at a rate ofthousand rubles and from profit thousand rubles.

The created program considered industrial necessity and possibilities of suppliers on equipment deliveries and contractors on fulfillment of civil and erection works.

Actually for the investment program financing have been used:

·  depreciation charges in the amount of,5 thousand rubles without the VAT;

·  the profit in the amount of 3 144 thousand rubles, without the VAT, was used on modernization.

Investment Activity 38

Financing total amount - ,3 thousand rubles with the allowance for the VAT.

Including financing:

·  objects of modernization and reconstruction ( TPiR,7 thousand rubles with the VAT, among them:

·  acqusition of the equipment not entered into estimates and capital assets under 10 thousand of rubles ,9 thousand rubles.

·  design and exploration works ( PIR) of the next years - 831,3 thousand rubles.

·  new construction -,6 thousand rubles with the VAT.

Structure of capital investments of the Company in 2005

·  reconstruction of objects of capital assets;

·  modernization of objects of capital assets;

·  construction of new objects;

·  investments in design and exploration works of the next years;

·  acquisition of the equipment not entered into the estimates of construction sites.

Basic directions of

capital investments of

the Company in 2005

64% Reconstruction

25,2% Modernization

6,4% Equipment not entered

into the estimates

0,4% PIR of the next years

1,3% CA under 10 thousand rubles

2,7% New construction

Basic directions of the Company’s capital investments in 2005

Structure of the Company’s capital investments in 2006:

1. Construction of new objects -,8 6 thousand rubles.

2. Reconstruction and modernization of objects of capital assets - 41511 thousand rubles.

3. Design and exploration works for reconstruction in the future periods - 763,9 thousand rubles.

·  Acquisition of the equipment not entered into the estimates and capital assets under 10 thousand rubles,9 thousand rubles, including:

·  means of transportation ,9 thousand rubles;

·  electronic computer facilities - 953,9 thousand rubles:

·  furniture, tools, stock, etc,1 thousand rubles:

·  creation of Automatic information-measuring system of commercial accounting of electricity

( AIISKUE) -5682,1 thousand rubles.

Investment Activity 39

Basic directions of

capital investments of the

Company in 2006

47% Reconstruction and modernization

37% Construction

7% AIISKUE

8% Acquisition of CA

1% PIR of the next years

Basic directions of capital investments of the Company in 2006

The Company did not make non profile financial investments in , credit resources under investment projects were not involved.

OJSC “Krasnoyarsk Generation”

Investment activity of OJSC “Krasnoyarsk Generation” in 2006 was carried out in conformity with the program of industrial development of the Company.

The total amount of the investment program of OJSC “Krasnoyarsk generation” was formed within the limits of depreciation of capital assests.

Capital investments in the 4th quarter of 2005 and in 2006 had been planned in the amount of thousand rubles.

The investment plan for 2006, thousand rubles without the VAT

Period	Total	Reconstruction and modernization	New construction
4th quarter 2005			20 519
2006 - plan total	828 333	692 861
plan
-  including:
2006 – depreciation
2006 - profit

Investment Activity 40

Actual fulfillment of the investment program, thousand rubles without the VAT

Indicators	Total	Reconstruction and modernization	New construction
Investments into the fixed capital
% to the plan	75,8	72,1	95,4
Besides, NIOKR (Research and Development works) and NMA (non-material assets)	15 053	15053	0
Capital assets total			148816

Paid: the VAT - thousand rubles, besides, the VAT for NIOKR and NMA thousand rubles.

The program for had been fulfilled on 75,8 %, including reconstruction - 72,1 %, new construction - 95,47 %.

Fulfillment of the investment

thousand rubles plan actual program for

Investments total Reconstruction New construction

and modernization

Direction of investments

Sources of financing of the investment program

The business plan of the Company for the reporting period forsaw financing of the investment program at the expense of depreciation charges at a rate of 807 718 million rubles and from profit - 170 million rubles.

The created program considered industrial necessity and possibilities of suppliers on equipment deliveries and contractors on fulfillment of civil and erection works.

Actually the investment program was financed in the amount of 705 627 thousand rubles without the VAT; besides, the VAT – 113 896 thousand rubles.

The profit used on reconstruction amounted to 27 659 thousand rubles, besides, the VAT – 4978 thousand rubles.

Total spent: 852 160 thousand rubles, including the VAT paid.

Investment Activity 41

Including financing:

·  objects of modernization and reconstruction - thousand rubles excluding the VAT. Among them:

·  acquisition of capital assets -thousand rubles excluding the VAT;

·  design and exploration work of the next years -thousand rubles excluding the VAT.

·  new construction - thousand rubles excluding the VAT

Structure of investments

Within the framework of the program of the Company’s industrial development on the reporting period investments were directed to:

1.  Construction of new objects - thousand rubles.

2.  Reconstruction and modernization of CA objects - thousand rubles.

3.  Design and exploration works for construction and reconstruction in the future periods -thousand rubles.

4.  Acquisition of capital assets -thousand rubles, including:

·  cars and special machinery -thousand rubles;

·  devices, computing, climatic, home appliances, phone sets and office equipment -thousand rubles;

·  tools and stock - ofthousand rubles;

·  furniture - 1 I 541 thousand rubles.

5.  Creation of AISKUE -thousand rubles

Basic directions of

capital investments of

OJSC “Krasnoyarsk Generation”

in the 4th quater of 2

436 121 Reconstruction and modernization

Construction

42 567 AISKUE

acquisition of CA

15 168 PIR of the next years

Basic directions of capital investments of

OJSC “Krasnoyarsk Generation” in the 4th quarter of 2

In the reporting period OJSC “Krasnoyarsk Generation” did not invest money in objects of non-productive sphere, there were no non-profile financial investments.

Credit sources for investment projects were not involved in the reporting period.

Investment Activity 42

Information on investment projects of JSC “Yenisei TGC (TGC-13)” for

Project name	Cost of the project in current prices including the VAT, million rbl.	Increase (input) of capacity	Designed capacity	Year of input
Completion of generating set № 1 of Krasnoyarsk CHP-3	3 158	185 MW 270 Gcal/h	185 MW 270 Gcal/h	2009
Completion of generating set № 2 of Krasnoyarsk CHP-3	3 664	185 MW 270 Gcal/h	185 MW 270Gcal/h	2010
Reconstruction of turbine PT-80 of Minusinsk CHP	50	30 MW	110 MW	2008
Reconstruction of turbine unit of Kansk CHP	72	7 MW	12 MW	2008
Reconstruction of generating set № 7 of Nazarovo SDPP	795	30 MW	400 MW	2010
Modernization of turbine unit st. № 8 of Krasnoyarsk CHP-1	250	5 MW	65 MW	2013
Construction of turbine PT-30 in Minusinsk CHP	174	30 MW	30 MW	2010
Construction of heating main № 1 in Krasnoyarsk from CHP-3 (a section from PNS-1-4 up to the central part of Krasnoyarsk, Gorky Street)	2 000			2011
Construction of heating main № 2 in Krasnoyarsk (a section from the cutting-in in the existing heating main № 8 over the Yenisei river till the cutting-in in the existing heating main № 1)	1 500			2011
TOTAL	11 663	472 MW 540 Gcal

Modernization of the Company 43