2.4

Network exploitation and consolidation of grid assets

As of 01.01.2016 overall length of aerial power lines, owned Company’s branches (routes) totaled 119,251 km.
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As of 01.01.2016 overall length of aerial power lines (circuits) totald 128,425 km. Total length of cable power lines at the turn of 2016 was 6,365 km.

Voltage class
35 kV and beyond 0.4-20 kV Total APL 35 kV and beyond 0.4-20 kV Total CPL
Permenergo 8,290 35,608 43,897 148 2,649 2,798
Sverdlovenergo 9,900 27,579 37,479 20 827 846
Chelyabenergo 8,035 29,841 37,875 18 2,703 2,721
IDGC of Urals 26,224 93,027 119,251 186 6,179 6,365
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As of 01.01.2016 the Company’s branches had 1 042 substations, installed capacity of power transformers amounting to 21,639 MVA.

35 kV substations 110-220 kV substations Total substations
Quantity, pcs Capacity, MVA Quantity, pcs Capacity, MVA Quantity, pcs Capacity, MVA
Permenergo 182 1,775 174 6,060 356 7,835
Sverdlovenergo 100 716 276 6,645 376 7,361
Chelyabenergo 124 1,018 186 5,425 310 6,443
IDGC of Urals 406 3,509 636 18,130 1,042 21,639
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As of 01.01.2016 the Company’s branches had 30,674 6-20/0.4 kV substations with 8,754 MVA installed capacity.

6-20/0.4 kV transformer substations TOTAL
Pole-mounted, pcs Package, pcs Indoor, pcs Quantity, pcs Capacity, MVA
Permenergo 240 10,208 1,716 12,164 3,447
Sverdlovenergo 1,903 6,046 911 8,860 2,332
Chelyabenergo 1,816 5,629 2,205 9,650 2,974
IDGC of Urals 3,959 21,883 4,832 30,674 8,754

Repair program

RUB thous. Target Actual % completed
Permenergo 659 982 714 452 108%
Sverdlovenergo 521 049 550 481 106%
Chelyabenergo 447 550 477 792 107%
IDGC of Urals 1 630 021 1 745 843 107%

Repair expense target for 2015 was RUB 1,630,021 thous.
Actual repair expenses totaled RUB 1,745,843 thous or 107%.

Branch expense breakdown is presented in the table below:

RUB thous. Repair types
35-220 kV power line 35-220 kV substation 0.4-20 kV substations Other TOTAL
Permenergo 132,233 88,239 372,333 121,647 714,452
Sverdlovenergo 114,847 90,026 215,823 129,785 550,481
Chelyabenergo 98,951 74,384 226,942 77,515 477,792
IDGC of Urals 346,032 252,649 815,098 332,064 1,745,843

Total repair expenses of our branches in 2015 are RUB 369,098 thous. (outsourcing) and RUB 1,376,744 thous. (in-house).

Outsourcing In-house TOTAL
Permenergo 191,802 522,650 714,452
Sverdlovenergo 94,887 455,594 550,481
Chelyabenergo 79,292 398,501 477,792
IDGC of Urals 369,098 1,376,744 1,745,843

Total repair expenses of the Company for 2016 are RUB 1,710,966 thous., incl. RUB 395,059 thous. (outsourcing) and RUB 1,315,907 thous. (in-house).

Outsourcing In-house TOTAL
Permenergo 197,443 483,314 680,757
Sverdlovenergo 106,335 465,729 572,064
Chelyabenergo 88,661 366,864 455,525
IDGC of Urals 395,059 1,315,907 1,710,966

Preparation of equipment for special period operations

During 2015 there were a range of decrees regarding preparation of our equipment for special period operations (floods, thunderstorm seasons, hot weather period, autumn-winter period, cold weather period, single voting day) to maintain reliable energy supply. All compulsory and extra tasks were completed. During the reported period every operating employee had quarterly emergency response drills. All scheduled drills were conducted. Alongside with this, backup power stations underwent equipment operation tests. In May and June of 2015 we conducted several professional contests among RPA crews in our branches and EESK (OAO) as well as among best RPA crews of the branches and EESK (OAO), also featuring Kurganenergo team. The contest, conducted at Education Center of IDGC of Urals (OAO), was won by the Chelyabenergo team. On Sept. 09-10, 2015 we arranged joint team exercises on emergency recovery of damaged grid facilities to engage our branches, EESK (OAO), Urals Regional Center of Russian Emergency Ministry and its Main Directorates in the Sverdlovsk and Chelyabinsk regions. Overall score of the Company is “good”.

Recovery resources of the Company are presented below:

  1. Mobile recovery units, able to travel long distances (up to 1,500 km) to neighboring production units, branches, EESK, IDGCs, energy systems:
    • 75 units (403 workers, 120 vehicles and machinery).
  2. Own recovery units working in production units:
    • 537 units (2,813 workers, 989 vehicles and machinery);
    • 214 “on-day” units (711 workers, 210 vehicles and machinery);
  3. Outsource resources:
    • 104 units (1,009 workers, 167 vehicles and machinery).
  4. Backup power stations owned by the Company:
    • 34 stations.
  5. Emergency supply
    • Fully stocked, overall value - RUB 80,401,200;
    • we have all required equipment and materials to restore power lines of any voltage class, substations, transformers, RPA and DOCS devices.

GRID ASSET CONSOLIDATION PROGRESS IN 2015.

The Company’s program of grid asset consolidation for 2011-2015 was adopted by the Board of Directors. The program’s primary goals are: i) creation of a single grid space on the Company’s zone of operations; ii) reduction of the amount of regional grid operators with a view to establish single center, liable for reliable and high-quality energy supply and connection of new consumers to consolidated networks. IDGC of Urals (OAO) limited its asset acquisitions for the reported period, since its investment program slumped, with funding channeled to other action programs. Rental contracts, voluntary transfer of ownership or free use and other kinds of consolidation were primary means of grid asset consolidation in 2015.

Progression of the grid asset consolidation program:

2013 2014 2015
Progress in grid asset consolidation
MVA km c.u. MVA km c.u. MVA km c.u.
COMPANY’S TOTAL, incl: 1,039 5,902 34,564 1,557 4,321 28,728 1,684 4,806 31,321
Acquisition of grid facilities 84 427 2,161 40 22 305 6 29 183
Rentals of grid facilities 920 4,552 27,825 1,482 3,345 23,776 1,649 3,832 26,587
Other (permanent rights of ownership and use) 5 10 43 6 41 112 0 3 9
Other (temporary rights of ownership and use) 29 913 4,535 29 913 4,535 29 942 4,543
Sverdlovenergo 606 1,967 13,906 607 1,698 12,976 560 1,711 12,712
Acquisition of grid facilities 39 158 779 40 22 305 5 28 123
Rentals of grid facilities 567 1,809 13,127 567 1,653 12,620 555 1,683 12,589
Other (permanent rights of ownership and use) 0 0 0 0 23 51 0 0 0
Other (temporary rights of ownership and use) 0 0 0 0 0 0 0 0 0
Permenergo 184 2,616 13,899 916 1,797 13,339 1,095 2,267 16,154
Acquisition of grid facilities 22 186 832 0 0 0 1.3 1.1 60.0
Rentals of grid facilities 132 1,517 8,532 887 883 8,799 1,065 1,324 11,552
Other (permanent rights of ownership and use) 0 0 0 0.4 1.0 5.2 0 0 0
Other (temporary rights of ownership and use) 29 913 4,535 29 913 4,535 29 942 4,543
Chelyabenergo 249 1,319 6,760 34 826 2,412 28 828 2,455
Acquisition of grid facilities 23 82 551 0 0 0 0 0 0
Rentals of grid facilities 221 1,226 6,166 28 809 2,356 28 825 2,446
Other (permanent rights of ownership and use) 5 10 43 5 17 56 0.04 3 9
Other (temporary rights of ownership and use)                  

NOTES:
Acquisition – all acquired grid assets for the reported period;
Rentals – all rented grid assets as of the year-end (i.e. all running contracts, incl. contracts concluded earlier, amount of existing transactions as of the year-end);
Other (permanent rights of ownership and use) - all acquisition of property during the calendar period;
Other (temporary rights of ownership and use) – all running contracts as of the year-end, incl. contracts concluded earlier.