Annual report 2010

14. Operating ActivitiesNetwork Connection TariffsThe amount of connection fee is established by theregional regulatory bodies in accordance with theGuidelines of the federal regulator, i.e. the FederalTariff Service of the Russian Federation (Order ofthe Federal Tariff Service of the Russian Federation“Approval of the Guidelines for Determining theAmount of Fee for Connection to Electric Grids (for2010, No. 201-e/1 of August 21, 2009; for 2011,No. 365-e/5 of November 30, 2010).The connection fee should offset economicallyreasonable expenses associated with the operationsfor connecting a facility to electric gridsthrough the calculation of the necessary grossrevenue (NGR) from network connection. Inaccordance with the provisions of subparagraph 4of paragraph 2 of Article 23.2 of Federal Law No.35-FZ of March 26, 2003, “On the ElectricityIndustry” since January 1, 2011, the connectionfee may not include the investment componentfor the coverage of expenses associated with theexisting infrastructure development, includinglinks between the facilities of territorial gridorganizations and the facilities of the UnifiedNational (All-Russian) Electric Grid, with theexception of expenses associated with the constructionof electric grid facilities ranging fromthe existing electric grid facilities to the connectedpower receivers and/or electricity industryfacilities.The transition of branches of the SDCs of JSC IDGCHolding to RAB-based tariff regulation and theremoval of the investment component for the coverageof expenses associated with the existinginfrastructure development from the connectionfee will subsequently lead to a decrease in therevenue from network connections.Monitoring of Network Connection OperationsIn 2010, the SDCs of JSC IDGC Holding received278,429 requests for the network connection ofpower receivers with a capacity of 20,144 MW;227,802 agreements for the network connectionof power receivers were executed. The totalcapacity was 7,624.4 MW. Actually, 134,471 statementsof the network connection of powerreceivers with the aggregate capacity of 4,198.6MW were executed.123