Quarterly report Open Joint Stock Company “Interregional Distribution Grid Company of the South" Issuer’s code: 34956 - Е for quarter III, 2010 (стр. 12 )

creating of grid and technological infrastructures to enable efficient functioning of the competitive electric power market within the Russian Federation and ensuring international power market integration; renewal of funds and electric grid facilities through increase of efforts volume on their reconstruction and technical restructuring (substations modernization, high voltage power transmission lines reconstruction, data infrastructure modernization and development).

Data on investment projects

Main directions of realization of investment program of “IDGC of the South”, JSC 2010 (planned and actual as per 9 months of 2010) are given in the table:

Name of “IDGC of the South”, JSC Branch	9 months of 2010 as planned	9 months of 2010 Actual
	Assimilation, *****b.	Input	Assimilation of capital investments	Input
		*****b.	MVA	km	*****b.	%	*****b.	%	MVA	%	Km	%
Executive office	24 145	25 225	0.0	0.0	16 591	69	15 472	61	0.0	0	0.0	0
“Astrakhanenergo”			1.6	20.1		42	46 148	30	1.6	100	6.0	30
“Volgogradenergo”			6.7	41.9		74		86	10.8	161	37.7	90
“Kalmenergo”		41 643	0.0	0.0		44	54 264	130	16.5	0	183.0	0
“Rostovenergo”			2.9	59.5		64	89 947	43	2.7	91	15.9	27
Total for “IDGC of the South”, JSC	1		11.2	121.5		54		56	31.6	281	242.6	200

Main objectives of “IDGC of the South”, JSC for 2010 in the part of power transmission service are:

1. Up-to-date software product development and selection for the volume forming of rendered services in power transmission assessment with possibility of information interchange with electric power selling companies.

2. Development and introduction of a uniform method of forming domestic user service volume for cases of non-payment and Public Utilities Payment. Development of offers on changes in the current legislation to set uniform conditions of tariff and declared capacity, agreement on the methods described in contracts with sale companies.

3. Organization and modernization of power instrument recording pursuant to Federal Law No. 261-FL (Federal Law) “On power safe and power capacity effectiveness increase, and on changes in some legislative acts of the Russian Federation” dated 23 November 2009, including

- additional services rendering (on installation, change and maintenance of consumers registration equipment and systems);

- settling in agreement with the Russian Federation Subjects and bodies of local self-government of issue concerning budget funds apportionment for the purposes of consumer connections equipping with power recording devices.

4. Initiation of changes and addenda in the RF Legislation on issues concerning:

- assistance in improvement of objective methods in power consuming norms calculating;

- affirmation of Regulations for power consuming;

- affirmation of Regulations for power consumption accounting;

3.4. Participation of the Issuer in Industrial, Bank and Financial Groups, Holdings, Concerns and Associations.

Name of group, holding, concern or association: The Issuer is part of the group of companies headed by “IDGC Holding”, JSC.

Beginning of participation: 2008

Role (place) and functions of the Issuer in the organization:

Place of the Issuer in the structure of group of companies: subsidiary of “IDGC Holding”, JSC.

Functions of the Issuer in the group of companies:

implementation of unified energy policy on the regional level; providing performance reliability of power grid complex in responsibility area; fulfillment of long-term investment programmes in electric power industry.

Results of the Issuer’s finance and economic activity depend considerably on other participants of industrial, bank, finance group, holding, concern, associations.

Detailed description of dependence type of the Issuer’s finance and economic activity on other participants of industrial, bank, finance group, holding, concern, associations:

The Issuer’s activity is considered to be naturally monopolistic, state-controlled; tariffs on services in electric power transmission through distribution grids, as well as fee amount for technological connection to electrical grids are regulated by state tariff bodies.

3.5. The Issuer's Subsidiaries and Affiliated Companies

Full company name:

in Russian: Открытое акционерное общество “Астраханьэлектросетьремонт”;

in English: Open Joint Stock Company “Astrakhanelektrosetremont”

Short company name:

in Russian: ОАО “Астраханьэлектросетьремонт”;

in English: “Astrakhanelektrosetremont”, JSC

Location

204 Kramatorskaya St, Astrakhan, Russia, 414032

TIN:

PSRN:

Subsidiary: Yes

Affiliated company: Yes

Basis for company’s recognition as the Issuer’s subsidiary or affiliated company: Due to prevailing participation in the authorized capital of JSC “Astrakhanelektrosetremont” “IDGC of the South”, JSC has a possibility to determine the decisions made by “Astrakhanelektrosetremont”, JSC.

Stake held by the Issuer in the authorized capital of the Company, %: 100

Percentage of ordinary shares of the Company owned by the Issuer, %: 100

Stake held by the subsidiary in the authorized capital of the Issuer, %: 0

Percentage of ordinary shares of the Issuer owned by the subsidiary, %: 0

Company’s main activity description. The company’s importance for the Issuer’s activity: Activities on capital and routine maintenance of the equipment, transfer devices, buildings and facilities, modernization, reconstruction and power grids maintenance.

The Company has a right to fulfill other activities not prohibited by the law.

Structure of the Company’s Board of Directors (supervision committee)

Surname, name, patronymics	Year of birth	Stake of the person’s participation in the Issuer’s authorized capital, %	Stake of the Issuer’s ordinary shares held by the person, %
Sultanov Georgy Akhmedovich (Chairman)	1954	0	0
Goncharov Pavel Victorovich	1966	0	0
Stolyarov Victor Mikhailovich	1977	0	0
Yeryomina Yelena Petrovna	1985	0	0
Matveeva Svetlana Mikhailovna	1971	0	0

Sole executive authority of the Company

Surname, name, patronymics	Year of Birth	Stake of the person’s participation in the Issuer’s authorized capital, %	Stake of the Issuer’s ordinary shares held by the person, %
Matveeva Svetlana Mikhailovna	1971	0	0

Structure of collegiate executive authority of the Company

Structure of collegiate executive authority is not stipulated

Data on Financial and Economical Activity of

“Astrakhanelektrosetremont”, JSC as of 30.09.2010.

Assets cost of “Astrakhanelektrosetremont”, JSC equals 60 540 thousand rubles according to its accountancy for the previous reported quarter (as of 30 September 2010.).

Indicators of Financial and Economical Activity of “Astrakhanelektrosetremont”, JSC

Indicator	2010, 9 months
Clear assets cost, thousand rub.	38 556.00
Sum of funds attached ratio to capital and reserves, %	57.02
Sum of current liabilities ratio to capital and reserves, %	57.02
Cover of debt service payment, %	-11.95
Overdue liabilities rate, %	0.00
Accounts receivable turnover,	0.08
Labour productivity, rub/person	83 000.25
Amortization ratio to proceeds value, %	255.46
Own resources ratio to borrowed current assets, %	0.57

Indicator Characteristics of profitability and unprofitability