Quarterly report Open Joint Stock Company “Interregional Distribution Grid Company of the South" Issuer’s code: 34956 - Е for quarter III, 2010 (стр. 9 )

Tariffs	HV	MV -1	MV -2	LV
“Boiler” tariffs set by Decree of Tariff Service of the Astrakhan Region dated 16 October, 2008 No.79. The source of publication is “Astrakhan Region Legal Acts Collection”, art.65, No. 56, 30 October, 2008	Rate (tariff) for electric power grids maintenance (rub/MW/ months)	142 139.62	193 217.48	411 058.82	616 542.41
	Rate (tariff) for technological consumption (losses) of electric power for transmission via grids (rub/MW/h)	268.30	314.44	376.53	104
	one-part tariff, rub/MWh	532.80	691.76	1 113.46	1 263.58

“Boiler” Model in “IDGC of the South,” JSC Branches, Approved by Regulating Authorities in 2010

In 2010, the unified (“boiler”) method of electric power transmission service tariff calculation is used in the service area of all RF subjects which are recognized as responsibility zone of “IDGC of the South”, JSC. Peculiarity of the “boiler” method consists in providing all users of the same voltage class with unified tariff electric power transmission regardless of the organization of their grid attachment.

“Astrakhanenergo”, branch of “IDGC of the South,” JSC

“Boiler” model acting in the region – “upper boiler”. The holder of the “Boiler” is “Astrakhanenergo” Branch of “IDGC of the South,” JSC. “Astrakhanenergo” Branch of “IDGC of the South,” JSC brings under control the whole grid Indispensable Gross Receipt of the four power selling companies (hereinafter – PSC) of the region on “Boiler” tariffs and pays traffic through local grid organizations networks (hereinafter – LGO) on individual tariffs.

“Boiler” tariffs for 2010 are scheduled by the Decree of Regional Tariff Service of the Astrakhan Region No. 79, dated 16 October, 2008.

“Volgogradenergo” Branch of “IDGC of the South,” JSC

“Boiler” acting model is “mixed boiler”. “Volgogradenergo”- “IDGC of the South”, JSC Branch gains profit from power transmission on “Boiler” and individual tariffs and shares part of its profit with its subordinate LGO on individual tariffs.

“Boiler” tariffs for 2010 are approved by the Decree No. 42/1 of Management of Regional Tariffs in Volgograd region dated 24 December, 2009. Individual tariffs for mutual settlement of accounts between “Volgogradenergo”, branch of “IDGC of the South”, JSC and Municipal unitary production enterprise “Volgogradskie Interregional Electric Grids”, “Volgogradoblenergo”, Municipal public enterprise “Volzhskie Interregional Electric Grids” are approved by the Decree No. 42/2 Management of Regional Tariffs dated 24 December, 2009.

“Kalmenergo” - Branch of “IDGC of the South,” JSC

The scheme of contract relations at which the payments for services of electric energy transmission are made to only one organization is used in the region. “Kalmenergo”, branch of “IDGC of the South,” JSC compiles its income for supply of “Kalmenergosbyt” consumers using “Boiler” tariffs in calculations. The abovementioned consumers were joined to “Kalmenergo”, branch of “IDGC of the South,” JSC. The Company compiles its receipt on individual tariffs for supply its consumers with electricity from “Kalmenergo”, branch of “IDGC of the South” in grids of Regional Grid Organization.

“Boiler” and individual tariffs are approved by the Order No. 80-п/э of Regional Tariff Service of Kalmykiya Republic dated 16 December, 2009.

“Rostovenergo” Branch of “IDGC of the South,” JSC

“Mixed Boiler”. There are two big grid companies in the region regarded as Boiler holders: “Rostovenergo”, branch of “IDGC of the South,” JSC and “Donenergo,” JSC. “Rostovenergo” collects its share of “Net Boiler” from all power supply companies on “Boiler” tariffs and on individual tariffs from “Donenergo” JSC. The company shares part of its income with its subordinate Regional Grid Organizations on individual tariffs.

“Boiler” tariffs for 2010 are approved by the Rostov Region RTS regulation No. 16/3 dated 29 December, 2009, individual tariffs for accounts between “Rostovenergo”, branch of “IDGC of the South”, JSC and “Donenergo”, JSC are approved by the Rostov Region Tariffs Service regulation No. 16/5 dated 29 December, 2009.

Data on electric power transmission for 3rd quarter of 2010:

Branch Names of “IDGC of the South”, JSC	Release in Grid	Productive Supply	General Losses
	thousand kWh	thousand kWh	thousand kWh	%
“Astrakhanenergo”	929 333.9	237 997.5	16 948.5	6.65
“Volgogradenergo”	2 910 570.4	842 258.2	22 636.1	2.62
“Kalmenergo”	115 529.0	27 210.6	5 065.4	16.31
“Rostovenergo”	3 169 829.5	891 018.9	46 085.1	4.92
TOTAL for “IDGC of the South", JSC	7 125 262.8	6 657 106.3	468 156.6	6.57

Note:

grid generation – electric power volume delivered to the electric grid of the grid company from other grids or electric power producers;

productive supply – electric power volume consumed by power receivers of the Consumer connected to this grid along with electric power transmitted by other grid companies;

power loss – difference between power grid output and productive supply.

According to the results of activity, “IDGC of the South,” JSC in the 3rd quarter, 2010 with grid generation of 7 125.3 mln kWh, productive supply comprised 6 657.1 mln kWh. Actual losses for the 3rd quarter, 2010 comprised 468.2 mln kWh or 6.57 % in recalculation to grid generation.

Total of Services Rendered in 3rd Quarter of 2010:

No.	Indicator	Measurement units	Plan for quarter 3, 2010	Actual for quarter 3, 2010	Deviations, %
1	Total of services rendered, including:	mln KWh	6 033.0	6 597.7	9.4 %
	“Astrakhanenergo”	mln KWh	697.1	774.0	11.0
	“Volgogradenergo”	mln KWh	2 465.3	2 800.9	13.6
	“Kalmenergo”	mln KWh	80.4	95.3	18.5
	“Rostovenergo”	mln KWh	2 790.5	2 927.5	4.9
2	Revenue, including:	*****bles	4 992 105.5	5 074 624.8	1.7
	“Astrakhanenergo”	*****bles	689 781.4	757 004.9	9.7
	“Volgogradenergo”	*****bles	1 948 667.9	1 952 173.6	0.2
	“Kalmenergo”	*****bles	244 167.9	2 239 962.3	-0.2
	“Rostovenergo”	*****bles		125 484.0	14.6

In the 3rd quarter of 2010 actual volume of the service rendered on electric power transmission comprised 6 597.7 mln kWh, that is higher of the planned figure for 564.4 mln kWh or 9.4%. Revenue from the service realization on electric power transmission – 5 074.6 mln rubles exluding VAT.

Information on Technological Connection Tariffs

In accordance with the current legislation of the Russian Federation, the amount of fee for technological connection is set by the regulation authorities independently for each region. As there is no unified methodology, the order of technological connection tariff implementation, as well as tariff differentiation criteria, the Company’s Branches differ in the form of tariffs differentiation.

Tariff Menu for Technological Connection in 2010

Branch Names of “IDGC of the South”, JSC	Date of Tariff Decision	Connection Category	Fee, rub. for 1 kW, VAT * excluding
		Power range, kW	Voltage level in the point of connection, kV
“Volgogradenergo” Branch of “IDGC of the South”, JSC	Decision of Regional Tariffs Managemnt at Volgograd region No.6/2 dated 17.02.2010, published in newspaper “Volgogradskaya Pravda”, No.34, 26.	For connecting the users’ energy recevinf devices if it is technically possible
		“City Zone” (Volgograd)
		Up to 100 kW	0.4	1209.64
		Higher 100 kW	0.4	57.6
		Up to 100 kW	6-10	345.46
		From 100 to 750 kW	6-10	119.79
		Higher 750 kW	6-10	58.92
		“Region Zone” (Volgograd Region, except Volgograd)
		Up to 100 kW	0.4	1043.71
		Higher 100 kW	0.4	55.52
		Up to 100 kW	6-10	323.73
		From 100 to 750 kW	6-10	118
		Higher 750 kW	6-10	70.61
		Payment rates for technological connection to the electric grids of “Volgogradenergo”, branch of “IDGC of the South”, JSC with absence of technical possibility to connect energy receiving units of the Consumers in relation with necessity of a new construction and reconstruction of feeding centers of the grid company
		“City Zone” ( Volgograd)
		Other consumers of technical connection service		4125.7
		“Region Zone” (Volgograd Region, except Volgograd)
		Other consumers of technical connection service		2280.48
		Payment rate for technological connection to the electric grids of “Volgogradenergo”, branch of “IDGC of the South”, JSC with absence of technical possibility to connect energy receiving units of the Consumers in relation with necessity of a new construction and reconstruction of distribution electric grids of the grid company
		“City Zone” (Volgograd)
		Up to 100 kW	0.4	2858
		Higher 100 kW	0.4	10614.84
		Up to 100 kW	6-10	4087.28
		From 100 to 750 kW	6-10	6347.51
		Higher 750 kW	6-10	6699.08
		“Region Zone” ( the Volgograd Region, except of the City of Volgograd)
		Up to 100 kW	0.4	3439.26
		Higher 100 kW	0.4	9105.27
		Up to 100 kW	6-10	4118
		From 100 to 750 kW	6-10	6
		Higher 750 kW	6-10	6177.54
		For individuals and legal entities with purpose of electric power consumption for public living needs with connected capacity up to 15 kW inclusively	Per connection	466.1
		Payment rates for technological connection to the electric grids of “Volgogradenergo”, branch of “IDGC of the South”, JSC of subordinate adjacent Territorial Grid Organization if technical opportunity exists
		Municipal Public Enterprise “Volzhskiy Interregional Electric Grids”	Applicants for technical connection to grids of Territorial Grid Organization with supply load higher 15 kW	68.26
		“Volgogradoblelectro”, JSC		68.26
		Municipal Unitary Public Enterprise “Volgograd Interregional Electric Grids”		147.55
		Payment rates for technological connection to electric grids of “Volgogradenergo”, branch of “IDGC of the South”, JSC of subordinate adjacent Territorial Grid Organization with absence of technical possibility in relation to necessity of construction and reconstruction of the feeding centers
		Municipal Public Enterprise “Volzhskiy Interregional Electric Grids”	Applicants, for technological connection to the ТСО grids with supply load higher than 15 kW	2348.73
		“Volgogradoblelectro”, JSC		2348.73
		Municipal Unitary Public Enterprise “Volgograd Interregional Electric Grids”		4273.25
“IDGC of the South”, JSC – “Astrakahnenergo”	Decision of Regional Tariffs Service dated 16 December, 2009 No.135. Source of publication: "Collection of Laws and Normative Legal Acts of the Astrakhan Region", No. 58, 24 December, 2009	Higher than 15 up to 100	Up to 10	82.10
		from 100 to 637.5	Up to 10	16.30
		More 637.5	Up to 10	7.00
		For Applicants– legal entities– non-commercial companies for electric power supply to citizens – members of the present company, calculated by general calculator at income*		466,1*N
		Applicant for tech. connection with maximum connection capacity not more than 15 kW, inclusively	Per connection	466.1
“IDGC of the South”, JSC – "Kalmenergo"	Order of Region Tariffs Service of Kalmykia Republic No.23-п/э dated 17.02.2006, by order No. 29-п/э dated 08.04.2008 period of validly is prolonged	For individuals with connected load higher than 15 kW and legal entities, connected along 0.4-10 kW, payment rate for technological connection to the electric grids	0.4-10 kW	126.96
	Order of Region Tariffs Service of Kalmykia Republic No. 56-п/э dated 2106.2009, Published in “Governmental Newspaper” No. 61(737) dated 28.07.09	Applicants for peak capacity, not higher than 15 kW inclusively (with consideration of earlier connected in the given connection point of capacity)	Per connection	466.1
“IDGC of the South”, JSC – "Rostovenergo”	Decision of Regional Tariffs Service of Rostov Region No. 7/1dated 27.05.2009. Initial text of the document published in edition "Nashe Vremya" No. 180-181, 09.07.2009	3 reliability grade	Medium voltage2 (6-10 kW)	14 615.4
			LV (0.4 kV)	18 639.33
		For applicants – legal entities (noncommercial organizations) for electric power supply to citizens - members of this company, calculated by common meter at income*		466.1*N
		Applicant, for technical connection with peak connection capacity not higher than 15 kW inclusively	Per connection	466.1
	Decision of Regional Tariffs Service of Rostov Region No. 7/2 dated 27.05.2009. Initial text of the document published in edition "Nashe Vremya", No. 180-181, 09 June, 2009	Payment rate for technological connection of the electric grid facilities "Donenergo," JSC to the “IDGC of the South,”JSC Branch grids - "Rostovenergo". The 3rd reliability grade of electric supply.	Medium voltage 2 (6-10 kW)	2295.48

*N – quantity of members (subscribers) of the Company, under condition of connection by each member of this Company no more than 15 kW.