RAO “UES OF RUSSIA” ANNUAL REPORT 2006

26 Corporate Governance System
2 0 0 6 ANNUAL REPORT OF RAO “UES OF RUSSIA”
Governance
System
Governance Structure
and Methods
The underlying principle of the Company’s
Property
Management
The property management system at RAO
the immovable properties were written off or
dismantled.
2006 saw major changes in the sharehold-
Company’s Governance Structure
General Meeting
of Shareholders
governance structure is to identify the respon-
“UES of Russia” is designed to ensure ef-
ings in other companies owned by OAO RAO
sibility centers and strictly determine their
goals and the resources available to those
centers.
The goals of the Corporate Center are to
shape the overall development and reorganization
strategy for the Company; set the KPI
targets for Business Units, Reform Management
Center and the SDCs of RAO “UES of
Russia”; perform the coordination and control
functions; prepare the Company’s financial
statements, and develop the standards and
policies for energy companies.
The goals of the Reform Management
Center are to formulate and implement a
common policy for reforming the electricity
ficient use of the Company’s assets and increase
shareholder value.
As of December 31, 2006, OAO RAO “UES
of Russia” owned the following property:
shareholdings in 298 joint-stock companies
(compared to 421 at end-2005), ownership
interests in 4 limited liability companies, the
power grid and dispatching facilities (those not
transferred to OAO “UES FGC” and OAO “UES
SO-CDA”, respectively), and the property of
three power plants (to the extent not transferred
or contributed to the capital of the WGCs).
Over 2006, the share of property, plant
and equipment in the structure of assets of
OAO RAO “UES of Russia” significantly de-
“UES of Russia”:
part of the WGCs and TGCs completed their
establishment; RAO “UES of Russia” transferred
its shares in the generation companies
and AO-power plants as capital contributions
to the respective WGCs and TGCs;
some regional energos completed unbundling
by line of business, which resulted in
RAO “UES of Russia” receiving shares in the
newly established (spin-off) companies;
the Company embarked on the strategy to
sell off its services businesses and noncore
assets.
The capital contributions made by OAO RAO
“UES of Russia” were applied to the Com-
BOARD OF DIRECTORS
ALEXANDER VOLOSHIN, Chairman of the Board of Directors
MANAGEMENT BOARD
Anatoly Chubais, Chairman of Management Board
Corporate Center
YaKOV
Urinson
Reform
Management
Center
YURY
UDALTSOV
Business Unit 1
ALEXANDER
CHIKUNOV
Business Unit 2
VLADIMIR
AVETISYAN
Hydrogeneration
Business Unit
VYACHESLAV
SINYUGIN
Networks
Business Unit
ANDREY
RAPPOPORT
Services
Business Unit
VYACHESLAV
VORONIN
industry and make the policy for RAO “UES of
clined due to the following changes in the
pany’s financial results in connection with
Russia” in the course of the electricity market
liberalization.
The goals of the Business Units are to improve
the efficiency of the subsidiaries under
their charge while maintaining and improving
the reliability and safety of electricity and heat
supply to consumers, and to ensure implementation
of the strategy reform at the subsidiaries
and establishment of companies of
the intended final sector structure.
In 2006, RAO “UES of Russia” created
the Project Center for Pre-sale Preparation
and Disposal of Assets, which is responsible
for ensuring efficient disposal of noncore,
repair and maintenance, and retail
Company’s property:
acquisition by OAO “UES FGC” of the power
grids from RAO “UES of Russia”;
transfer of the property of the Novosibirskaya
HPP, Nizhegorodskaya HPP, and
Saratovskaya HPP as capital contributions
to OAO “HydroWGC”;
sale of the property of the Reftinskaya
TPP and Sredneuralskaya TPP to OAO
“WGC-5”;
sale of the property of the Nizhnevartovskaya
TPP to OAO “WGC-1”;
acquisition of power grids from OAO “Kubanenergo”.
In connection with the sale or transfer to
the liquidation of the following companies:
OAO “Informenergo”, OAO “Energostroitel”,
OAO “Biyskaya CHPP-1”, OAO “DSK”,
OAO “Dalnie Electroperedachi”, and 34 regional
management companies established in
the course of regional energos’ restructuring.
As part of the non-core divestiture process,
RAO “UES of Russia” sold its holdings
of shares in the following companies
in 2006: OAO “NBD-Bank”, OAO “Yurenergo-UES”,
OAO “Severovostokenergostroy”,
OAO “TEMBR-Bank”, OAO “Mikhailovskoe Resort”,
ZAO “East-West Energy Agency”, and
OAO “Rostopenergo”.
Information on the ownership and voting in-
OAO “UES SO-CDA”
BORIS
AUYEV
NP “ATS”
WGC 3, 5, 6
TGC 1, 2, 3, 4,
5, 8, 9, 14
FEEC AND Energy
companies in the
Russian Far East
Energy Retail
Companies
WGC 1, 2, 4
TGC 6, 7, 10,
11, 12, 13
Energy Retail
Companies
HydroWGC
ао-HPPs
Hydropower
plants under
construction
AO-institutes
OAO “UES FGC”,
IDCs,
TCs and DCs
3 Regional
Energos
ZAO “INTER RAO
UES” and
Foreign assets
OAO “MUS
Energetiki”
Services
companies
AO-institutes
Power plants
under
construction
(CCGT)
assets of RAO “UES of Russia” and generate
subsidiaries of the immovable properties lo-
terests of OAO RAO “UES of Russia” in other
maximum proceeds.
cated on the land plots leased by RAO “UES
companies is set forth in Appendix 3.
of Russia”, the Company surrendered the
lease of those land plots and terminated the
relevant lease agreements. It also took steps
to terminate the lease of the land plots where