Quarterly report Open Joint Stock Company “Interregional Distribution Grid Company of the South" Issuer’s code: 34956 - Е for quarter III, 2010 (стр. 28 )

Organizational pattern of executive establishment of “IDGC of the South” JSC was approved; Item “On Introduction of Alterations into the List of Executive Establishment Positions in “IDGC of the South” JSC, Approval of Candidacies for Which Was Attributed to the Competence of the Board of Directors” was considered; Item “On Introduction of Alterations into the List of Top Managers’ Positions in “IDGC of the South” JSC” was considered; Regulations of Audit Committee and Personnel and Remuneration Committee at the Board of Directors of “Interregional Distribution Grid Company of the South” Joint Stock Company were approved as amended; Item “On Determination of (Volumes of) Property Transactions Subject to Preliminary Approval by the Board of Directors” was considered. Item on “Determination of Priority Areas of the Company’s Activity viz., on Measures to Enhance Counterterrorism and Counter Sabotage Security of the Company’s Electric Grid Facilities” was considered.

Board of Directors of “IDGC of the South” JSC dated 31.08.2010, in absentia form (Minutes No. 53/2010 dated 01.09.2010):

Manning of Central Tender Committee of “IDGC of the South” JSC was approved; Amount of remuneration to “Audit inform”, Joint-Stock Audit Firm” CJSC, the auditor of “IDGC of the South” JSC was determined according to Audit Service Agreement (with auditable period starting on January 1, 2010 and ending on December 31, 2010) as amounting to 2 600 000 (two million and six hundred thousand) rubles, inclusive of 396 610 (three hundred and ninety six thousand six hundred and ten) rubles and 17 kopeks (18%) VAT. Target values of key performance indicators of the Company in quarter I of 2010 were approved; Report on performance of cash flow benchmarks by “IDGC of the South” JSC in the 2nd quarter of 2010 was taken note of; Report of the CEO of the Company on observance of Corporate Governance Code of “IDGC of the South” JSC in the fist half-year period in 2010 was taken note of; Program of measurements for 2010 – 2012 to reduce risk of outsiders’ injury at the facilities of “IDGC of the South” JSC was approved; Terms of agreements concluded with Tsindik Y. A., Rokhlina O. V., Perminov Y. V., Arkhipov Y. V., Kuzyanova E. I., Filippova I. A., specialists which had been involved in audit of financial and economic activity of “IDGC of the South” JSC at 2009 year-end by the revision commission of the Company, were approved; Movable property lease contract concluded between “IDGC of the South” JSC and “TSO UES” JSC was approved as a transaction of interest; Powers of Lunev I. A., Pestov D. V., Golovakha L. A., Goncharov P. V., Alaev T. U., Trunin V. N., the members of Management Board of the Company were terminated. Decision on electing Vosmirko A. V., deputy CEO in charge of security and controlling of “IDGC of the South” JSC, a member of Management Board of the Company was; Positions of the Company regarding items of agendas for Meetings of the Board of Directors at “Astrakhanelektrosetremont” JSC, “Energetik” Recreation Center” JSC, “Volgogradsetremont” JSC, “Agricultural Enterprise Sokolovskoye” JSC and “Agricultural Enterprise n. a. Grechko A. A.” JSC, the Companies which are subsidiaries of “IDGC of the South” JSC, were determined as follows “On Approval of Agenda for Extraordinary General Meeting of Shareholders of the Company”; Positions of the Company regarding items of agendas for extraordinary general meetings of shareholders of “Astrakhanelektrosetremont” JSC, “Energetik” Recreation Center” JSC, “Volgogradsetremont” JSC, “Agricultural Enterprise Sokolovskoye” JSC and “Agricultural Enterprise n. a. Grechko A. A.” JSC, the Companies which are subsidiaries of “IDGC of the South” JSC, were determined as follows “On Approval of the Charter of the Company as Amended”. Schedule of priority activities to Enhance Counterterrorism and Counter Sabotage Security of the Company’s Electric Power Facilities” was approved; Regulation on dividend policy of “IDGC of the South” JSC was approved as amended; Regulation on procedure for acquisition of ownership of or right to use power supply facilities by “IDGC of the South” JSC was approved; Termination of contract No. ЦМД/МРСКЮ - No. 1 dd. December 25, 2007 concluded with “Moscow CSD” JSC, the register of the Company, by 20.12.2010 was considered useful.

Board of Directors of “IDGC of the South” JSC dated 30.04.2010, in absentia form (Minutes No. 45/2010 dated 04.05.2010):

·  Report of CEO of “IDGC of the South” JSC on affiliates management in quarter II of 2010 was taken note of;

·  Report of CEO of “IDGC of the South” JSC on credit policy of the Company in quarter II of 2010 was taken note of;

·  Report of the CEO of the Company on observance of Regulation on data policy of “IDGC of the South” JSC in Quarter II of 2010 was taken note of.

·  Take note of the report of CEO of “IDGC of the South” JSC on activities performed to optimize rental cost of executive office building of “IDGC of the South” JSC;

·  Decision to nominate Arkhipov Sergey Aleksandrovich for official award recommendation was taken; the official award being Letter of Award issued by Ministry of Energy of the Russian Federation.

·  Positions of “IDGC of the South” JSC regarding items of agendas for Meetings of Boards of Directors at ”Energetik” Recreation Center” JSC, “Agricultural Enterprise n. a. Grechko A. A.” JSC and “Sokolovskoe Agricultural Enterprise” JSC, business entities, which are subsidiaries of the Company, were determined; the item being as follows: “On Approval of the Report on Results of the Company’s Business Plan Implementation in Quarter II, 2010”;

·  Contact for drinking water supply and wastewater reception concluded between “IDGC of the South” JSC and “Astrakhanelektrosetremont” JSC was approved as an interested party transaction;

·  Lease contract concluded between ‘IDGC of the South” JSC and “Kubanenergo” JSC (hereinafter referred to as Contract) was approved as an interested party transaction;

·  Voucher sale contract between ‘IDGC of the South” JSC and “Energetik” Recreation Center” JSC was approved as an interested party transaction;

·  Additional agreements to motor vehicle rental agreement No. 407/30-1371/418.4 dd. 29.10.2008 and No. 407/30-1334/418.5 dd. 29.10.2008 between “IDGC of the South” JSC and “Kubanenergo” JSC were approved as interested parties transactions;

·  Supplementary contract to voucher sale contract No. 248 dd. 20.05.2010 between “IDGC of the South” JSC and “Energetik” Recreation Center” JSC was approved as an interested party transaction.

Minutes of Meetings of Board of Directors of “IDGC of the South” JSC are made available on the Company’s website in the Internet at: http://www. mrsk-yuga.

5.2.2. Information on Sole Executive Body of the Issuer

Surname, name, patronymics: Arkhipov Sergey Aleksandrovich

Year of birth: 1967

Education:

Alma-Ata Power Engineering Institute with a specialization in “Electric Systems and Power Grids”

Extended education: Occupational retraining at the Academy of National Economy under the Government of the Russian Federation, after the training program “Company’s Development Control”.

“Institution of Further Training for Executives and Specialists of Fuel and Energy Complex” Federal state educational institution for continuing professional education, related subject: “Protection of State Secrets”.

All positions held by the person at the Issuer Company and other entities within the last five years and now, including part-time job

Period	Entity name	Position
From	up to
2003	2006	“Khabarovskenergo” JSC	Deputy Director General in charge of Heat and Electric Energy Sales
2006	2007	“Energosbyt Rostovenergo” JSC	Executive Director, General Director
2006	2007	“IDGC of Center and North Caucasus” JSC	Managing Director of “Rostovenergo” JSC, Deputy General Director, Managing Director of “Rostovenergo” JSC
2007	2007	“IDGC of the South” JSC	Deputy CEO, ManagingDirector of “Rostovenergo” JSC
2007	2007	“Territorial Generating Company (TГK-8) Southern Generating Company” JSC	Acting First Deputy Director General in charge of Economy and Finance, First Deputy Director General
2008	2010	“IDGC of the Center” JSC	Executive Director of “Smolenskenergo” JSC; Deputy CEO, Director of “Smolenskenergo” branch of “IDGC of the Center” JSC, First Deputy CEO
2010	now	“IDGC of the South” JSC	CEO, Chairman of the Management Board
2010	now	“Kubanenergo” JSC	Chairman of the Management Board

The person has no participation shares/ordinary shares in authorized capital of the Issuer

Number of shares of the Issuer of each category (class) that may be purchased by the person as a result of exercise of rights for owned options of the issuer: the issue did not issue options

Participation shares of the person in authorized (share) capital (unit investment fund) of subsidiaries and associated companies of the issuer

The person does not own the specified shares

Data on character of any family relations with other persons who are members of the management authorities of the issuer and/or authorities auditing the financial and economic activity of the issuer:

No specified family relations

Data on bringing the person to administrative responsibility for breaches of law related to finance, taxes and charges, securities market or to criminal responsibility (previous conviction) for crimes referring to economy or crimes against the state power:

The person was not brought to the specified kinds of responsibility

Data on positions held by the person in management authorities of commercial entities in periods when stated entities were prosecuted for insolvency and/or insolvency proceedings were started in conformity with the legislation of the Russian Federation on Insolvency (Bankruptcy):

The person did not hold the specified positions

5.2.3. Structure of Collegial Executive Body of the Issuer

Surname, name, patronymics: Arkhipov Sergey Aleksandrovich

(Chairman)

Year of birth: 1967

Education:

Alma-Ata Power Engineering Institute with a specialization in “Electric Systems and Power Grids”

Extended education: Occupational retraining at the Academy of National Economy under the Government of the Russian Federation, after the training program “Company’s Development Control”

“Institution of Further Training for Executives and Specialists of Fuel and Energy Complex” Federal state educational institution for continuing professional education, related subject: “Protection of State Secrets”.

All positions held by the person at the Issuer Company and other entities within the last five years and now, including part-time job

Period	Entity name	Position
From	up to
2003	2006	“Khabarovskenergo” JSC	Deputy Director General in charge of Heat and Electric Energy Sales
2006	2007	“Energosbyt Rostovenergo” JSC	Executive Director, General Director
2006	2007	“IDGC of Center and North Caucasus” JSC	Managing Director of “Rostovenergo” JSC, Deputy General Director, Managing Director of “Rostovenergo” JSC
2007	2007	“IDGC of the South” JSC	Deputy CEO, ManagingDirector of “Rostovenergo” JSC
2007	2007	“Territorial Generating Company (TГK-8) Southern Generating Company” JSC	Acting First Deputy Director General in charge of Economy and Finance, First Deputy Director General
2008	2010	“IDGC of the Center” JSC	Executive Director of “Smolenskenergo” JSC; Deputy CEO, Director of “Smolenskenergo” branch of “IDGC of the Center” JSC, First Deputy CEO
2010	now	“IDGC of the South” JSC	CEO, Chairman of the Management Board
2010	now	“Kubanenergo” JSC	Chairman of the Management Board

The person has no participation shares/ordinary shares in authorized capital of the Issuer

Number of shares of the Issuer of each category (class) that may be purchased by the person as a result of exercise of rights for owned options of the issuer: the issue did not issue options

Participation shares of the person in authorized (share) capital (unit investment fund) of subsidiaries and associated companies of the issuer

The person does not own the specified shares

Data on character of any family relations with other persons who are members of the management authorities of the issuer and/or authorities auditing the financial and economic activity of the issuer:

No specified family relations

Data on bringing the person to administrative responsibility for breaches of law related to finance, taxes and charges, securities market or to criminal responsibility (previous conviction) for crimes referring to economy or crimes against the state power:

The person was not brought to the specified kinds of responsibility

Data on positions held by the person in management authorities of commercial entities in periods when stated entities were prosecuted for insolvency and/or insolvency proceedings were started in conformity with the legislation of the Russian Federation on Insolvency (Bankruptcy):

The person did not hold the specified positions

Surname, name, patronymics: Brizhan Vitaliy Vasilyevich

Year of birth: 1974

Education:

Kuban State University: Department of Law and Department of Economics

All positions held by the person at the Issuer Company and other entities within the last five years and now, including part-time job

Period	Entity name	Position
From	Up to
2006	2007	“Kubanenergo”, JSC	Deputy Director General in charge of Enforceability and Corporate Affairs
2006	2008	“Kubanenergo”, JSC	Member of the Management Board
2007	2008	“Rostovenergo”, JSC	Member of the Board of Directors
2007	now	“IDGC of the South”, JSC	Deputy CEO in charge of Corporate Management
2008	2009	“Kubanenergo”, JSC	Member of the Board of Directors
2008	now	“IDGC of the South”, JSC	Member of the Management Board
2009	now	“IDGC of the South”, JSC	Member of the Committee for Technological Connection to the Grids at the Board of Directors
2009	now	“Volgogradsetremont”, JSC	Member of the Board of Directors
28.06.2010	08.07.2010	“IDGC of the South”, JSC	Acting CEO, Chairman of the Management Board
28.06.2010	08.07.2010	“Kubanenergo”, JSC	Chairman of the Management Board
Since 01.10.2010	now	“Kubanenergo” branch of “IDGC of the South” JSC	Deputy CEO of “IDGC of the South” JSC, Director of the branch (as a part-time job)
2010	now	“Agricultural Enterprise n. a. Grechko A. A.” JSC, “Sokolovskoe Agricultural Enterprise” JSC	Chairman of the Board of Directors

The person has no participation shares/ordinary shares in authorized capital of the Issuer