Annual Report 2006 - Enel.com

Bulgaria. Enel had already acquired 60% of Maritza East III Power Holding from Entergy
in 2003, taking the lead in modernizing and operating the lignite-fired Maritza East
III power plant, one of the country’s largest power plants with a capacity of 840 MW.
Enel also acquired from Entergy the entire share capital of Maritza O&M Holding
Netherlands BV, a Dutch company that owns 73% of Maritza East 3 Operating
Company (now Enel Operations Bulgaria), a Bulgarian company that operates and
maintains the Maritza East III power plant.
The remaining 27% of both Bulgarian companies is still owned by NEK, the Bulgarian
national electricity company.
Enel paid Entergy a total of €47.5 million to buy the stakes in Maritza East III Power
Holding (40%) and Maritza O&M Holding Netherlands (100%).
Acquisition of holding in RusEnergoSbyt, a Russian
electricity trader
On June 21, 2006, in execution of the Memorandum of Understanding (MoU) of
March 2, 2006, Enel completed the acquisition of half of RusEnergoSbyt LLC (RES),
a Russian company active in the energy trading market and controlled by Grigory
Berezkin, chairman of the ESN Group. In the transaction, Enel, acting through the
Dutch subsidiary Enel Investment Holding, acquired 49.5% of RES Holdings BV, a
Dutch company that owns 100% of RES, for $105 million, in line with the terms
of the MoU.
Disposal of power distribution and sale assets
On June 27, 2006, Enel and Hera signed the final contract for the disposal of the
power distribution and sale grid of 18 municipalities in the Province of Modena
to Hera. The price was set at €107.5 million.
The acquisition represents the execution of a preliminary agreement signed on
March 13, 2006 and has been effective since the end of June. The business unit
includes more than 3,700 kilometers of network, about 80,000 customers and 42
employees. The transaction marks the completion of the agreement reached in
the protocol of understanding signed in February 2005 between Enel and Meta
Modena, which has been merged into Hera since January 1, 2006.
Acquisition of wind plants in France
On July 13, 2006, Enel finalized the acquisition of 100% of Erelis SAS, a French
company specialized in the development of wind plants, for €14.2 million. Erelis,
which is based near Lyon, was established in 2002. Projects under development
amount to about 500 MW of power, of which 14 MW will become operational
in 2007, 196 MW are at an intermediate or advanced stage and about 290 MW at
an initial development stage. The projects are located in various regions in France.
Erelis is also developing about 110 MW for third parties.
22 Enel Annual Report 2006 Report on operations