Recommendations to the general meeting of shareholders of IDGC of the North-West were developed.

The Board of Directors of IDGC of the North-West at the meeting of November 2, 2007 recommended the general meeting of shareholders of IDGC of the North-West to make a decision on joining of distribution network companies to IDGC of the North-West and to approve the contract for the joining.

The Board of Directors of the management company recommended the meeting of shareholders approval of additional issue of securities in the amount of 95 687 000 000 ordinary registered shares for a total sum of 9 568 700 000 rubles with a view of converting the shares of RGC in the shares of IDGC during the reorganization.

Besides, in case of non-alignment of one or several RGC to IDGC of the North-West, the Board of Directors of IDGC of the North-West made a decision to recommend the general meeting of shareholders carrying out floatation of additional shares of the company by the closed subscription with the purpose of exchange of shares of RGC (the general meetings of which did not took the decision on reorganization) belonging to RAO UES of Russia, for the shares of IDGC.

The limiting amount of additional issue in this case is defined in the amount of 5 294 659 290 rubles 80 kopecks, or 52 946 592 908 shares.

Besides, the price of the additional ordinary shares of IDGC was determined, which were placed by means of the closed subscription in the amount of 0.18521 rubles for one additional share of IDGC of the North-West.

On October 26, 2007 within the limits of reforming the distribution network complex, the Board of Directors of RAO UES of Russia approved key indicators of formation of JSC IDGC of the North-West, and also indices of converting the shares of RGC in additional shares of JSC IDGC of the North-West.

According to this decision, the following is converted into one ordinary share of JSC IDGC of the North-West:

18 521/95 911 of the ordinary share of JSC Arkhenergo;
18 521/87 835 of the preferred class A share of JSC Arkhenergo;
18 521/24 932 387 of the ordinary share of JSC Vologdaenergo; 18 521/57 033 of the ordinary share of JSPC Komienergo;
18 521/52 231 of the preferred share of JSPC Komienergo;
18 521/268 758 of the ordinary share of JSC Karelenergo;
18 521/394 400 of the ordinary share of JSC Kolenergo;
18 521/361 192 of the preferred class A share of JSC Kolenergo;
18 521/874 757 of the ordinary share of JSC Novgorodenergo;
18 521/801 102 of the preferred class A share of JSC Novgorodenergo;
18 521/2 176 473 of the ordinary share of JSC Pskovenergo.

For reference

Interregional Distribution Grid Company of the North-West Joint Stock Company is 100 % affiliated company of RAO UES of Russia; it was registered in December, 2004 and during the transition period of reforming it is under control of JSC Federal Grid Company.
The capital stock of IDGC of the North-West at the moment of its creation equaled 10 million rubles and it is divided into 100 million ordinary shares.
The initial structure of JSC IDGC of the North-West was approved by RAO UES of Russia on 23 April 2004. According to it, the zone of responsibility of IDGC of the North-West included JSC Arkhenergo, JSC Karelenergo, JSC Kolenergo, JSPC Komienergo, JSC Lenenergo, JSC Novgorodenergo, and JSC Pskovenergo.
The new structure was approved by the Board of Directors of RAO UES of Russia on 27 April 2007, according to which JSC Lenenergo was spun off as a separate IDGC, and the structure of IDGC of the North-West included JSC Vologdaenergo.
The Board of Directors of RAO UES of Russia took a decision on 27April 2007 on approval of a new configuration of the interregional distribution grid companies (IDGC).
According to this decision, the target pattern of IDGC functioning is the uniform operational company formed by connection to it of the DGC (distribution grid companies) forming a part of IDGC. Connection will be carried out by converting DGC shares into the shares of additional issue of IDGC.
On 26 October 2007, the Board of Directors of RAO UES of Russia made a decision on transfer of the share holding of JSC Yantarenergo within the limits of the second finishing reorganization of RAO UES of Russia into JSC Holding IDGC, which will be created during the finishing reorganization of RAO UES of Russia.
It is planned to finish measures on formation of IDGC of the North-West, and also to place shares of the operational company on the stock exchanges in the second quarter 2008.
The primary goal of JSC IDGC of the North-West is maintenance of efficient control over the distribution grid companies for the period of their reorganization (connection to IDGC of the North-West).
The structure of IDGC of the North-West includes 7 distribution grid companies; JSC IDGC of the North-West carries out functions of the sole executive body: JSC Arkhenergo, JSC Karelenergo, JSC Kolenergo, JSPC Komienergo, JSC Lenenergo, JSC Novgorodenergo, JSC Pskovenergo. 
General Director of JSC IDGC of the North-West is Pinkhasik Veniamin Shmuilovich.
Total length of electricity transmission lines is 187 452 km.
Amount of substations of 35 kV and above is 1184.
Installed transformer capacity of Sb 35 kV and above is 21628 MVA.
Amount of the personnel is 16637 people.
Now functions of the meeting of shareholders of JSC IDGC of the North-West are performed by the Management Board of JSC RAO UES of Russia.