There are seven branches of the company in the territory of seven Russian North-West regions. The branches are: “Arkhenergo”, “Vologdaenergo”, “Karelenergo”, “Kolenergo”, “Komienergo”, “Novgorodenergo”, and “Pskovenergo”.

The united operational company of IDGC of North-West was formed one year ago, on 1 April 2008.Seven companies joined IDGC of North-West as grid branches: “Arkhenergo”, “Vologdaenergo”, “Karelenergo”, “Kolenergo”, “Komienergo”, “Novgorodenergo”, and “Pskovenergo”.Authorized capital stock of IDGC of North-West consists of 95,787 bn registered ordinary shares with par value of RUR 0.1 each for a total of RUR 9,5787.

Since May 2008 shares of IDGC of North-West have been trading on Russian stock exchanges (RTS, MICEX).

The main shareholder of IDGC of North-West is the State. Its shares are controlled by JSC “IDGC Holding” created as a result of reorganization of RAO “UES of Russia” on 1 July 2008. Blocks of regional distributional grid companies’ shares belonging to RAO “UES of Russia” were assigned to “IDGC Holding”.

IDGC of North-West attends seven regions of North-West Federal district of 1.5859 million sq.m total area and the population of 6.69 m people.Total length of overhead and cable power transmission lines is 169.3 thousand km.

Amount of substations of 35 kV and above in the Company’ property is 1,141; installed capacity of power transformers is 17.5 MVA.Amount of 6-10/0.4 kV transformer substations is 35.4 thousand with capacity of 6.7 MVA.

The personnel of IDGC of North-West are 13.9 thousand people.

The main events of United Company

April 2008

• On 1 April 2008 reorganization of IDGC of North-West in a form of accession of seven distributional grid companies of the region was completed. Seven companies became the grid branches of IDGC of North-West: “Arkhenergo”, “Vologdaenergo”, “Karelenergo”, “Kolenergo”, “Komienergo”, “Novgorodenergo”, and “Pskovenergo”.

• Vladimir Bloschitsyn was appointed Deputy General Director for Capital Development of IDGC of North-West. It was a new position in the structure of the company.

• The Management Board of IDGC of North-West was formed in the number of seven members. The General Director of the company Veniamin Pinkhasik became its Head.

• Georgy Turlov was appointed Deputy Senior Engineer on Exploitation and Technical Development of IDGC of North-West. Previously, he held the position of the Head of the Department for Technical Development.

• The Head of the Department for Operative Technical Grid Management Yuriy Borison was appointed Deputy Senior Engineer for Operative Technical Management – the Head of the Department for Operative Technical Management. It has become a new position in the structure of the company since 1 April 2008.

• A brochure “Safe Electricity” was published on the eve of Universal Labor Protection Day by IDGC of North-West. It generalizes experience of the PR action “Mind the electricity!” which was carried out by power engineering specialists together with authorities and educational bodies, bodies of civil defense and emergency, and students.

• Top-managers of “Kolenergo” were among winners of the competition “Manager 2007”. The Director of “Kolenergo” Ivan Medvedev and the Head of Production department of “South Electric Grids” Nikolay Kashin were awarded.

May 2008

• First Deputy General Director – Senior Engineer Alexander Kukhmay was appointed Deputy Chairman of the Management Boars of IDGC of North-West.

• First Deputy Director of the branch “Komienergo” – Senior Engineer Viktor Fink was given a Certificate of Merit of Komi Republic for long-term and conscientious work. The awarding decree was signed by the Head of the Republic Vladimir Torlopov.

• Sports Games for power engineering specialists of IDGC of North-West took place in Great Novgorod. Teams of seven branches competed in athletics, mini-football and volleyball. The team of “Komienergo” became the winner.

• Seventy two years have passed since establishment of “Kolenergo”. On 22 May 1936 a regional energy management of “Kolenergo” was founded.

• Press service of IDGC of North-West was awarded a Certificate from JSC RAO “UES of Russia” for professionalism and a major contribution to informational support of energy reform. Awarding was held in frameworks of Russian Conference of Energy Holding PR specialists in Moscow.

• Since May 2008 shares of IDGC of North-West have been trading on Russian stock exchanges (RTS, MICEX).

• Competition of professional skills of operation and maintenance personnel of distribution grid teams of regional grid companies in the structure of IDGC of North-West took place in Vologda; “Vologdaenergo” became the winner.

• III Regional Competition of PR Departments of IDGC of North-West took place in Vologda. Olga Shapovalova from “Pskovenergo” has become the best PR specialist in IDGC of North-West.

June 2008

• An annual General Shareholders Meeting of IDGC of North-West took place for the first time in a form of joint presence. The shareholders of the company approved the Company annual report and annual accounting report for the year 2007.

• A book about “Pskovenergo” was published in Pskov. It tells about origins of energy sector in Pskov at the turn of XIX-XX centuries up to completion of the company’s reorganization within the energy reform of the country.

 • All repair and maintenance companies of IDGC of North-West were sold in frameworks of the program on reduction of affiliation. The company got RUR 170.8 m for sold shares.

• The first publication of a corporate edition of IDGC of North-West “Karelenergo” appeared. The paper was named “Vesti Karelenergo”.

July 2008

• Alexander Kukhmay was appointed General Director of IDGC of North-West. Earlier, he had supervised technical policy for three years on the position of First Deputy General Director – Senior Engineer.

• IDGC of North-West concluded an agreement on transfer agent relations with “Moscow Central Depositary” Inc. to simplify interrelation of a shareholder with the registrar.

• IDGC of North-West started to work out a draft collective agreement for 2009 and the following years.

August 2008

•  General Director of IDGC of North-West Alexander Kukhmay and Governor of Murmansk Region Yuriy Evdokimov met at the bargaining table on principal issues of grid complex development at the Kola Peninsula. Specialists of IDGC of North-West were proposed to join a working group on building of Murmansk CHP-2.

• Georgiy Turlov was appointed Deputy General Director – Senior Engineer of IDGC of North-West.

• The Board of Directors of the Company approved client service standard. The document contains demands to organization and implementation of the process and technical equipment during provision of electric power supply services.

• The Federal Financial Markets Service gave a registration number 1-01-03347-D to shares of IDGC of North-West. Not a single region within IDGC of North-West responsibility zone entered the list of maximum load regions.

• The Director of the branch “Novgorodenergo” Vladimir Chistyakov was given a Certificate of Merit from the State Duma.

September 2008

• Sergey Dubich was appointed the Director of the branch “Kolenergo”. Earlier, he held the position of Deputy Director for Logistics and Material and Technical Supply.

• CJSC “Deloitte and Touche of CIS” became the winner in the competition on services in financial reports preparation for IDGC of North-West in accordance with International Financial Reporting Standards (IFRS) in 2008.

• Electricity in Komi Republic is 100 years old. The branch of IDGC of North-West - “Komienergo”, initiated setting up of a monument in a form of a figure “one”. It was set up at the square of Vodny settlement close to the city Ukhta of Komi Republic. The figure symbolized the first power plant and the first generated kWh – reference point of electric power industry in The Komi Republic.

• IDGC of North-West got a certificate on registration of dangerous industrial objects according to the Federal Law “About Industrial Safety of Dangerous Industrial Objects”. Two hundred and sixty seven dangerous industrial objects exploited by the company in North-West territories were recorded in the register.

• The team “Vologdaenergo” represents IDGC of North-West at All-Russian Competition of Operation and Maintenance Personnel of Electric Grids Substations of DGCs and IDGCs in Pyatigorsk. The team of IDGC of North-West finished seventh among twelve participants following the result of eight stages.

• “Pskovenergo”, a branch of IDGC of North-West, became for the third time a cofounder of a regional competition “Me and Fire Safety” for high school students of the Pskov Region.

• Specialist from CJSC “KPMG International” started to conduct an obligatory audit of financial accounting for the year 2008 and accounting on international standards of comparative indicators for the year 2007 at IDGC of North-West. The specialists will complete the works in 2009.

• “Komienergo”, a branch of IDGC of North-West, was entitled “The Honest Supplier of the Year”. According to the certification procedures in 2008, the company was recorded in the list of honest suppliers.

October 2008

• Four committees were formed under the Board of Directors of IDGC of North-West: Audit Committee, Committee for Personnel and Remuneration, Committee for Strategy and Development, Reliability Committee.

•  General Director of IDGC of North-West Alexander Kukhmay participated in the tenth International Conference “Energopromservice – 2008” in Prague.

• One hundred and sixty joint exercises with participation of the Ministry for Emergency Situations, authorities, and contractors were carried out during preparation for autumn and winter period 2008-2009 in branches of IDGC of North-West.

• Meeting of General Director of IDGC of North-West and Governor of Pskov Region took place for the first time. Alexander Kukhmay and Mikhail Kuznetsov discussed development of electric grid complex of the region.

•  General Director of IDGC of North-West Alexander Kukhmay participated in a new project programme “Company” by the Saint-Petersburg TV channel RBC-TV.

• “Novgorodenergo”, a branch of IDGC of North-West, was given certificates of compliance of Quality Management System with demands of International Standard ISO 9001:2000. “Novgorodenergo” was the first branch of IDGC of North-West to be given certificates of QMS.

•  General Director of IDGC of North-West Alexander Kukhmay participated in a Finland-Russia-China Economical Forum. One of the topics was “Energy Sector and Protection of Environment”.

• Centers of Client Services at every branch of IDGC of North-West started a survey on the quality of client services on 1 October. The survey will be ongoing.

• International Rating Agency Standard & Poor's (S&P) was involved in analysis of corporate activities of IDGC of North-West to set the corporate governance rating to the company.

November 2008

• IDGC of North-West received the certificate of readiness to work in the autumn and winter period of 2008-2009. The company complied with the planned amounts of repair program of the current year. Costs exceeded RUR 1 bn.

• Yuriy Yampolsky was appointed Director of “Arkhenergo”, a branch of IDGC of North-West. The previous Director Igor Fedorov transferred to work with government authorities.

• A press conference of General Director Alexander Kukhmay with participation of regional media took place in IDGC of North-West. The topic of the conference is “Readiness of IDGC of North-West for working during the autumn and winter period 2008-2009”.

• A grand launch of the substation “Zavelichie” (110 kV) took place in Pskov. Costs of “Pskovenergo”, a branch of IDGC of North-West, for reconstruction of the object exceeded RUR 230 m.

• Five special PR projects of IDGC of North-West were awarded the diplomas by the Grand Expert Council at the National Competition of Mass Media Sources “Silver Clue 2008”.

• “Komienergo”, a branch of IDGC of North-West, placed in operation a new substation “Voy-Vodge” (110 KV). The aggregate cost of the project was RUR 615 m. Four regions of The Komi Republic got a reliable reserve of electric supply.

• The team of “Pskovenergo” became for the first time the winner of the winter Sports Games accompanied by IDGC of North-West prizes. The competition took place in Arkhangelsk.

• The First Corporate Presentation Day took place in IDGC of North-West. Twenty two companies presented equipment, accessories, overalls, special food and services to representatives of management and specialists of the distribution grid company.

• The quality policy of IDGC of North-West was approved. It was one of the documents signed by the Company General Director Alexander Kukhmay within the frameworks of implementation of Quality Management System (QMS).

December 2008

• The first in Russia medal of JSC “IDGC Holding” was granted to Senior Engineer of “Arkhenergo” Mikhail Rosavitsky. He was given an honorary title “Veteran of Distribution and Grid Complex of IDGC Holding” for long-term and effective work in electric and energy power sector and in connection with the professional holiday.

• Personnel of “IDGC of North-West allocated more than RUR 2 m to the “Regional Community Trust of Assistance to Social Protection of Power Specialists” to help injured population of South Ossetia.

• A register of non-core assets was formed in IDGC of North-West according to the Statement on organization of non-sore assets sale.

• The project of the branch “Komienergo” on lines reconstruction was certificated in the nomination “The Best Innovative Project in the Field of Generating and Distribution of Electric Power”. The competition “Innovations in Economy, Management and Education of Komi Republic” was organized by the regional Ministry of Economic Development.

• The team of the branch “Karelenergo” named “Energetic People” again became the winner of the Second Festival “Club of the Cheerful and Sharp-Witted” of IDGC of North-West.

• Gennady Alexandrov was appointed Deputy Senior Engineer of IDGC of North-West. Earlier, he was Head of the Production Department of “North Electric Grids” at “Korelenergo”, a branch of IDGC of North-West.

• The substation “Emwahl” (110 kV) was launched in Komi Republic. The launch was attended by the Head of Komi Republic Vladimir Torlopov. IDGC of North-West spent more than RUR 130 m for realization of the project.

• A new high-voltage power line “Chagoda-Steklozavod” (110 kV) was energized at “Vologdaenergo”, a branch of IDGC of North-West. Cost of the project is RUR 210 m.

• The method of fire-proof training at IDGC of North-West was worked out. The developer of the method is the Department for Operative Grid Management of IDGC of North-West.

• Substation “Shuya” (110 kV) was put into operation in Karelia. “Karelenergo”, a branch of IDGC of North-West, started reconstruction of the substation in 2006.• Two hundred and five employees of IDGC of North-West were granted different prizes from the Ministry of Industry and Energy of RF, “IDGC Holding” and operational company in honor of the professional holiday “Day of Power Engineer”.

• The first among all Russian energy companies Uniform Collective Agreement of an Integrated Company without any regional attachments was signed at IDGC of North-West. The document was to come into effect since 1 January 2009 and be valid up to the year 2011.

January 2009

• IDGC of North-West went through listing. Ordinary registered uncertificated shares of the company were admitted to MICEX trading.

• Sergey Shestakov, Deputy Head of Loukh regional power plant at “Karelenergo’, was honored the title “Laureate of the Year 2008 in Karelia Republic”. A commemorative certificate and an award pin were granted by the Head of Karelia Sergey Katanandov.

• Senior Engineer of South Electric Grids of “Komienergo” Vladimir Usov was granted a certificate of honour of Komi Republic. The Decision on awarding for long-term honest work was signed by the Head of Komi Republic Vladimir Torlopov.

February 2009

• The team of IDGC of North-West participated in the first Winter Sports Games of JSC “IDGC Holding”. The select team of IDGC of North-West was composed from thirteen employees from “Arlhenergo”, “Kolenergo”, “Novgorodenergo” and “Pskovenergo”.

• South Karelia electric grids of “Karelenrgo”, a branch of IDGC of North-West, celebrated the forty fifth anniversary. South Karelia electric grids were established on 6 February 1964 by the Decision of the Chairman of the State Production Committee for Energy and Electrification of the USSR in the structure of “Karelenergo”.

• Uniform “Order of working with personnel of the Company” was implemented in IDGC of North-West.

• Eight workers of “Karelenergo”, a branch of IDGC of North-West, were honored a commemorative medals “Twenty Years of Withdrawal of Soviet Troops from Afghanistan”.

• The General Director of IDGC of North-West Alexander Kukhmay became a participant of International Training Conference “Regional Peculiarities of Power Industry Reforming at North-Western Europe: Russian Practice and Foreign Experience” in Finland.

• Two positions of top managers appeared in the structure of IDGC of North-West. Aslan Chekhov was appointed Deputy General Director for Investment. Vladimir Shestov held the position of Deputy General Director for Security.

• Oleg Rodev, the Head of the Department for Regulatory Support of “Komienergo”, a branch of IDGC of North-West, was presented with the supreme judicial prize of Komi Republic “Femida” in 2008. Oleg Rodev became a laureate in the nomination “Legal Service”.

March 2009

• Nikolay Fedotov was appointed First Deputy Director – Senior Engineer of “Arkhenergo”, a branch of IDGC of North-West. Earlier, he was Head the Production Department “Arkhangelsk Electric Grids”.

• Director of “Vologdaenergo”, a branch of IDGC of North-West, Alexander Klimanov was elected a Vologda Municipal Duma deputy. More than 40% of electors from one of constituencies voted for him.

• The Second Corporate Presentation Day took place in IDGC of North-West on 4 March. Twenty two companies from Russia and Latvia and representatives of joint ventures from Moscow and Saint Petersburg became its participants. They were recorded in a new catalog specially published by organizing committee of CPD.

The list of main events was prepared on basis of press releases published by the Press Service of IDGC of North-West during the period from 1 April 2008 to 1 April 2009.