Moscow. 10 January 2006. OAO "Volzhskaya Territorial Generation Company" (OAO "TGC-7") started operations effective 1 January 2006.

OAO "Volzhskaya TGC" was co-founded by OAO "Samaraenergo", OAO "Saratovenergo", and OAO "Ulyanovskenergo", which contributed their generating and heating network assets to the TGC's authorized capital. Later on, 100% shares in OAO "Orenburg Heat Generation Company" owned by RAO "UES of Russia" will be contributed to the authorized capital of OAO "Volzhskaya Territorial Generation Company".

The generation companies spun off from the above regional energos—OAO "Samara GC", OAO "Saratov GC", and OAO "Ulyanovsk GC" owning shares in OAO "Volzhskaya TGC" will merge with and into OAO "Volzhskaya TGC". Shareholders of these regional energos will become shareholders of OAO "Volzhskaya TGC".

The configuration of OAO "Volzhskaya TGC" will include the generating assets in the Samara Region (8 thermal power plants and 2 heating network enterprises), Saratov Region (6 thermal power plants and one heating network enterprise), Ulyanovsk Region (3 thermal power plants and one heating network enterprise), and Orenburg Region (3 thermal power plants and one heating network enterprise). OAO "TGC-7" has taken over the operational dispatch and technological management of the thermal power plants located in these regions. The Company is engaged in the generation of electric power and heat, and transmission and retailing of heat to consumers in those regions.

By 1 January 2006, OAO "TGC-7" had completed all corporate procedures required to start operations.

Thus, Volzhskaya TGC is the first among the TGCs to have started operations as a single operational company, without resorting to lease arrangements.

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OAO "Volzhskaya Territorial Generation Company" (TGC-7) was registered on 1 August 2005 in the city of Samara. The Director General of OAO "TGC-7" is Vasily Nikonov. Vladimir Avetisyan, member of the Management Board and Executive Director of Business Unit 2 of RAO "UES of Russia", was appointed Chairman of the Board of Directors of OAO "TGC-7". The installed capacity of OAO "TGC-7" is 6,869 MW of electricity and 26,427 Gcal/h of heat.