Moscow. 1 June 2007. RAO "UES of Russia" has released a progress report on the implementation of the Investment Programme by the RAO UES companies in May 2007.

On 24 May 2007, a project was kicked off to build power unit No. 9 of 330 MW at the Novocherkasskaya TPP (WGC-6 branch). The new power unit will become Russia's first unit using the advanced fluidized-bed combustion (FBC) technology of coal-burning. The use of FBC will increase the unit's efficiency to 40 percent and save up to 20 percent of fuel. Moreover, the facility will meet all environmental safety standards. The power unit is scheduled for commissioning in 2011.

A large amount of construction and modernization work was done in the transmission facilities. On 11 May 2007, the North-West Transmission Grids, branch of OAO "UES FGC", brought on line a new 330 kV Novgorodskaya substation in the city of Veliky Novgorod. This is the first new 330 kV facility built in the North-West of Russia over the past twenty years. The substation was built in less than two years and has the aggregate capacity of 450 MVA. At the project design stage, the engineers took into account the electricity load growth forecasts for the substation until 2030. The new substation site has distribution switchgear of 330, 110, 35 and 10 kV. Also, the substation has advanced equipment produced by Russian and foreign manufacturers. The investments in the project totalled in excess of RUB1.5 billion.

Now that the new substation is on line it will help improve the reliability and quality of electricity supply to customers in the city of Veliky Novgorod and the surrounding Novgorod Region, and reduce the number of accidents and cut transmission losses.

On 18 May 2007, the Center Transmission Grids, branch of OAO "UES FGC", launched a project to revamp the 220 kV transmission lines "Kurkino - Radishchevo" and "Kurkino - Shmelevo" in the Moscow Region. These steps will help address the capacity shortage in the 220 kV network of the Moscow Energy System and improve the reliability of electricity supply to consumers in the Northern and North-Western Administrative Districts (Okrugs) of Moscow, as well as the Krasnogorsk District and Istra District of the Moscow Region. The power lines are due to come on line in late 2007.

On 24 May 2007, the Urals Transmission Grids, a branch of OAO "UES FGC" started the modernization project at 500/110 kV power unit No. 2 having a capacity of 250 MVA at the 500 kV Zlatoust substation in the Chelyabinsk Region. The work currently underway is the final phase of the modernization project at the Zlatoust substation, the first substation of the 500 kV network to be modernized in the Urals area. To date, three transformers with an aggregate capacity of 750 MVA have been installed at the power plant. The project cost is about RUB1,600 million. By end-2007, OAO "UES FGC" will spend RUB681.8 million in funds on the overhaul and modernization projects in the 500 kV network of the Urals Transmission Grids branch, a 2.3-fold increase over 2006.

On 29 May 2007, OAO "Chelyabenergo" put into operation a new 400 KVA transformer substation and a 10 kV transmission line in the Chebarkul District of the Chelyabinsk Region. The new power facilities in the region are being built within the framework of the Cooperation Agreement between the Chelyabinsk Region Government and RAO "UES of Russia".

OAO "Moscow United Electricity Distribution Company" is continuing the modernization project at the 110 kV Babushkin substation which supplies power to the North-Western Administrative District of Moscow. This substation will be switched to a new voltage class, 220 kV. The project will cost about RUB2 billion and is expected to be completed in 2008.

Also, in May 2007, the RAO UES distribution grid companies started modernization at ten 110 kV substations and brought on line about 100 km of 110 kV overhead and cable lines.