OREANDA-NEWS. On 21 March 2008 was announced, that PJSC "Territorial Generating company # 2" (TGC-2) have summarized the results of its activity on the wholesale electricity (capacity) market in the year 2007.

The electric power sales volume of TGC-2 within the first pricing zone amounted to 5.766 bln kW/h, inclusive of: amount sold at regulated electric power prices (tariffs) -4.427 bln kW/h, at free (unregulated) prices -1.339 bln kW/h. Volumetrically weighted free price level for electric power at the TGC-2 buses equaled to RUR 628/MW/h, which by 23% tops the weighted average regulated tariff, set for the company by the Federal Tariff Service (FST). The sales of electric power and capacity in 2007 amounted to RUR3.914 bln.

The economy effect, achieved by the company within the passed year due to activity on WECM in the first pricing zone, is estimated to be RUR155m. The accomplished result is primarily due to the reduction of the regulated sector share and growth of competitive market share. Other factors include the overall substantial price increase on the market in H2 2007. The increase constituted 43 % in relation to H1 and hit its maximum since the launch of the new WECM model (NWECM). The internal influential factors comprise competitiveness of TGC-2 CHPPs, their additional load, as well as operating on the "day-ahead" (DAM) and "balancing" markets (BM).

On the territory of the first non-pricing zone where Arkhangelsk CAB CHPPs are located, in 2007 the wholesale market received 1.918 bln kW/h amounting to RUR3.532 bln. The average selling price (considering the capacity) constitutes 1,743 RUR/MWh or 99.55% of FST tariff.

We remind that TGC-2 operates on the wholesale energy and capacity market since July 1, 2006 and participates in the NWECM operations since September 1, 2006 -starting the moment the new model was launched.

Company profile
Public JSC Territorial Generation Company # 2 (TGC-2) was established in February 2005. The Company"s Director General is Andrey Vagner. TGC-2 comprises generating capacity of 6 regions -Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl.

Since July 1, 2006 TGC-2 functions as a unified Company. TGC-2 operates 16 heat power stations, 11 boiler-houses, 5 enterprises of thermal networks (excluding rented assets). The aggregate electric capacity of TGC-2 enterprises is 2,582.5 MW, the installed thermal capacity constitutes 12, 471 Gcal/h.

The Authorized Capital of PJSC TGC-2 amounts to RUR11, 124, 968, 918 and 18 kopeks and is spread over 1, 095, 996, 358, 137 ordinary shares and 16, 500, 533, 681 preferred shares with the face value of 1 kopek. The main shareholder of the Company is RAO UES of Russia which owns 49.36% of shares.