Annual report 2010

Voting results:“FOR” - 8 persons D. I. Rizhinashvili,A. V. Demidov, V. V. Kuznetsov,S. N. Ivanov, andA. V. Sannikov“AGAINST”- none“ABSTAINED” - 1 person W. SkribotBallots were submitted by:“FOR” - 1 person S. Remes“AGAINST”- none“ABSTAINED” - noneApproved by a majority of votes.2. Determination of the priority of activities: approval of the Strategy of JSC IDGC Holdinguntil 2030.Issue 2: “Determination of the priority of activities: approval of the Strategy of JSC IDGCHolding until 2030.”The following person reported: K. Yu. P etukhov, Director for Strategy and Developmentof JSC IDGC Holding.The following persons were heard:S. N. Ivanov, D. I. Rizhinashvili, G. F. Binko, and S. G. Bednyakov.It was noted as follows:1. Territorial focus of activities of distribution grid companies. Incompliance of tariffregulation mechanisms with the current structure of IDGCs.2. Need for deep development of issues related to the following areas:- programs of i nteraction a nd pa rtnership wi th ot her gove rnmental c ompanies, i ncludingwith JSC RusHydro in relation to small-scale generation facilities and compensation of losses;- programs f or e ncouragement of e nergy a udit, a chievement of c onformity of a ccounting(uniformity of measurements), including through organization of the billing metering operator;- mechanisms of organization of the partnership with regional and municipal authorities inthe area of management of grid companies or integration thereof in SDCs of JSC IDGC Holding;- scenarios of a pos sible m erger of t he s ales and gr id bus iness, “ pickup” of f unctions ofguaranteeing suppliers.3. Absence in the Strategy of JSC IDGC Holding of:- basic i ndicators de fining m ilestones of t he C ompany’s s trategic de velopment a ndelectricity distribution grid facilities on the whole;- urgent issues for the distribution grid sector and their solution mechanisms.4. The Strategy of JSC IDGC Holding is to be formed as an addition to the state strategyof management of the distribution grid sector. In this regard, the consideration of the Strategy ofJSC IDGC Holding is deemed premature before the solution of the issue of a further model formanagement of the distribution grid sector by the government. It is necessary to develop severalcrucially different development models of JSC IDGC Holding:- to k eep t he hol ding s tructure wi th de legation of pa rt of t he gove rnment f unctionality ofmanagement of grid companies;- to c entralize op erating a nd ot her f unctions of I DGCs on t he ba sis of t he H olding. T oincrease the role of JSC IDGC Holding as a key competence of the state in relation to the issues ofmanagement of the distribution grid sector;- to decentralize management with further sale of interregional grid companies for raisingprivate investments.4