Implementation of the investment program in 2013

The investment program for 2013 was formed pursuant to requirements of the Resolution of the Government # 977 of 01.12.2009, coordinated by subjects of the Russian Federation and approved in the structure of the investment program for 2012-2017 by the Order of the Ministry of Power Industry of Russia # 240 of 05.05.2012.

Capex under the investment program for 2013 totaled RUB 18.7 bn.

In 2013 within investments 907 MVA of transformer capacity and 1,846 km of power lines were put in operation. The gain of capacity made 709 MVA and 1,159 km.

Dynamics of execution of the investment program
Name Capex Input of fixed assets Financing Capacity input Capacity gain
RUB mln w/o VAT RUB mln RUB mln with VAT МVA km МVA km
2011
St. Petersburg 10,829 11,246 11,446 623 935 513 740
Leningrad Region 4,232 5,077 4,101 373 778 279 341
JSC Lenenergo, total 15,061 16,323 15,547 996 1,713 792 1,081
2012
St. Petersburg 11,515 12,424 12,337 1,409 716 951 657
Leningrad Region 3,377 3,651 3,663 502 864 314 355
JSC Lenenergo, total 14,891 16,075 16,000 1,911 1,581 1,265 1,012
2013
St. Petersburg 13,158 14,355 13,940 603 764 529 620
Leningrad Region 5,570 4,299 5,405 304 1,082 181 539
JSC Lenenergo, total 18,729 18,653 19,345 907 1,846 709 1,159
Gain 2013/2012, %
St. Petersburg 14 16 13 −57 7 −44 −6
Leningrad Region 65 18 48 −39 25 −42 52
JSC Lenenergo, total 26 16 21 −53 −17 −44 15

In relation to the level of 2012 for the reporting period the volume of Capex increased by 26%. It was caused by:

  • works under contracts on technological connection under obligations – this is one of the main directions of investment activity of the Company which purpose is execution of accumulated obligations on technological connection, including towards a preferential category of consumers of St. Petersburg and the Leningrad Region pursuant to the concept of execution of accumulated obligations on technological connection, approved by the Company’s Board of Directors.
  • execution of actions under the signed contract on technological connection on the individual tariff on a title “New DS-110 kV with CL-110 kV for connection of new substations 110 kV of “Kamennogorsk-tyagovaya”, “12 km”, “29h km”, “46” of FSUE Uniform Group of Customers of the Federal Agency of Railroad Transport.

Decrease in the rates of input of transformer capacity in 2013 (–53%) is connected with early input of equipment in 2012 that is reflected in the report on execution of the investment program for 2012, +51% to the plan (under the approved investment program the input of facilities was planned in 2013):

  • In St. Petersburg – substation # 127 (126 MVA), substation # 33 (32 MVA), substation # 93 (126 MVA), substation # 185 (160 MVA – leasing), substation # 369 (63 MVA – leasing), 161.4 MVA – property for payment of additional issue of JSC Lenenergo shares;
  • In the Leningrad Region – substation # 484 (50 MVA), substation # 158 (80 MVA), substation # 98 (63 MVA – leasing).

In 2013 the growth of input of power lines made 17% that is also caused by works on construction and reconstruction of distributive grid 0.4–10 kV under contracts on technological connection of consumers on accumulated obligations, including of a preferential category of applicants.

Actual implementation of the investment program in comparison with the plan
2011 Change, % 2012 Change, % 2013 Change, %
Plan Fact Plan Fact Plan Fact
Capex, RUB mln w/o VAT 15,633 15,061 −4 14,100 14,891 6 13,039 18,729 44
Input of fixed assets, RUB mln 17,105 16,323 −5 16,023 16,075 0 13,934 18,653 34
Financing, RUB mln with VAT 19,463 15,547 −20 16,327 16,000 −2 15,954 19,345 21
Input of fixed assets

transformer capacity, MVA

744 996 34 1,267 1,911 51 1,051 907 −14

power lines, km

1,444 1,713 19 1,363 1,581 16 696 1,846 165

Decrease in the growth rates of input of transformer capacity in 2013 (–14%) is caused by early input of equipment in 2012 that is reflected in the report on execution of the investment program for 2012 (+51%). According to the approved investment program input of objects was planned in 2013.

   

Sources of financing of the investment program

The main sources of Capex financing of JSC Lenenergo in 2013 are: amortization, additional issue of shares, or technological connection fees, debt funds, and VAT refund.

 
2011 2012 2013

RUB mln w/o VAT

Sources of investments (on financing), total 15,547 16,000 19,345
Own funding sources
Amortization 4,415 2,826 1,903
Net profit 377 0 0
Additional issue of shares 0 1,204 1,770
Other own sources (calculations by property, lost income) 1,916 1,386 1,319
VAT refund 2,251 2,119 2,533
Debt funding sources
Borrowings (credits and loans) 2,838 5,174 7,032
Technological connection fee – advance payments 3,751 3,290 4,788

Directions and structure of Capex

Structure of Capex, RUB mln w/o VAT
2011 2012 2013 Change, 2013/2012, %
St. Petersburg 10,829 11,515 13,158 14
Retrofitting and renovation 4,510 3,156 3,430 9
New construction 6,242 7,344 9,704 32
Other 77 1,015 25 −98
Leningrad Region 4,232 3,377 5,570 65
Retrofitting and renovation 2,242 2,141 3,084 44
New construction 1,982 1,213 2,463 103
Other 8 23 23 1
JSC Lenenergo, total 15,061 14,891 18,729 26
Retrofitting and renovation 6,753 5,297 6,513 23
New construction 8,223 8,557 12,167 42
Other 85 1,037 48 −95
Including under the programs

Technological connection

9,196 10,417 11,860 14

Renovation of basic equipment and auxiliaries

10,530 6,320 4,899 −22

Energy saving and increase of power efficiency

13,631 3,523 6,873 95

Creation of systems of anti-emergency and regime automatic equipment

53 68 89 31

Creation of telemechanics and communication systems

170 580 532 −8

Installation of devices for voltage regulation and compensation of circulating power

12

Application of innovative technologies and equipment

5,933 1,408 2,833 101

Actions for anti-terrorist security of facilities

61 55 125 129

Replenishment of emergency stock

22 79 42 −47%

In the structure of the investment program for 2013 34.8% of total amount of investments is the share of retrofitting and renovation. The growth of volumes of retrofitting and renovation by 2012 makes 23%.

Negative dynamics of decrease in other directions of Capex in 2013 is associated with property transfer from administration of St. Petersburg to the Company regarding electronetwork facilities in the amount of RUB 1.0 bn for payment of additional issue of JSC Lenenergo shares in 2012. Without the accepted property the dynamics and the share of this item of expenditures did not essentially change.

Decrease in the share of renovation of basic equipment and auxiliaries during the reporting period was caused by early input of equipment (including leasing equipment) in 2012.

Works on telemechanization and communication in 2013 were executed according to the planned parameters.

Negative dynamics of decrease regarding replenishment of emergency stock in 2013 concerning the level of 2012 was associated with reduction of large-scale technological violations.

In 2013 technological connection had the greatest weight in the total amount of Capex (RUB 10.9 bn, 58%); this is one of the main directions of investment activity of the Company which purpose is execution of accumulated obligations on technological connection.

Main directions of Capex in 2013
  • The program of special importance is the Program of renovation of CL 6–110 kV financed with attraction of federal funds, and it is also a priority task amounting to RUB 2.2 bn (12%).
  • RUB 1.6 bn (8%) were directed on retrofitting and renovation of facilities 35–110 kV in 2013.
  • New construction of facilities 35–110 kV totaled RUB 0.9 bn (5%).
  • RUB 1.3 bn (7%) were directed on development of distributive networks 0.4–10 KV.
  • The program of technological management automation was carried out according to ITT strategy of the Company and constituted RUB 0.7 bn (4%) in 2013.
  • The cost of program of introduction of AIMSEM systems totaled RUB 0.3 bn (1%).
The most important and priority projects of the investment program put in operation in 2013
Project name Purpose of the project Planned terms of construction Date of object commissioning Cost of fixed assets put in operation, RUB mln Input of capacity, MVA/km Structure of capital equipment

Reconstruction of substation 110 kV # 184

Increase of power supply reliability of consumers of Krasnogvardeysky district of St. Petersburg. Commissioning of capital equipment of substation and CL 110 kV (0.21 km) was carried out in 2012. In 2013 works on external networks of water supply and sewerage, system of security and fire alarm, and substation protection were complete.

2007–2012

Q4 2013

31

Outdoor switchgear 110 kV: PASS MO-145 (12 pieces);
PASS MO(SBB)
(13 pieces);
RPAE cases; indoor switchgear 10 kV: (TLSh-10-5- UZ)
(15 pieces)

Reconstruction of substation 110 kV # 17

Increase of power supply reliability of consumers and elimination of electronetwork restrictions in Kirovskiy district of St. Petersburg. The transformer capacity of 63 MVA was put in operation in 2008. In 2013 input of substation protection (0.8 km) was carried out.

2006–2013

Q4 2013 (partial input)

7

TDTN 63000/110-U1 power transformer (1 piece)

Reconstruction of substation 110 kV # 127 – increase of transformer capacity

Technological connection of consumers of Kurortny district of St. Petersburg. In 2012 input of two power transformers was carried out. In 2013 CDDEI equipment of 35 kV, the system of relay protection and automatic equipment of 35 kV, and substation control building were commissioned.

2007–2013

Q4 2013 (partial input)

180

U1 TRDN 63000/110 power transformer (2 pieces), KRUN-35kv UHL1 (1 to - t)

Substation # 124A with CL 110 kV

Technological connection of consumers of Kalininsky district of St. Petersburg. In 2013 a new building of substation was commissioned.

2007–2014

Q4 2013 (partial input)

182

Renovation of 6–110 kV, including

The target program on reconstruction of oil-filled CL

2013

2013

3,638

0/57

Reconstruction of CL 6–110 kV: CL 110 kV K-103, K-104

Decrease in the level of accident rate of grids. Ensuring reliability of power supply of industrial facilities and household enterprises of Vasilyevsky island and Petrograd part of St. Petersburg.

2010–2012

Q4 2013

643

0/8

Reconstruction of CL 6–110 kV; CL 110 kV K-105, K-106

Decrease in the level of accident rate of grids. Increase of power supply reliability of consumers of Central and Krasnogvardeysky districts of St. Petersburg. Input of CL 110 kV K-105, K-106 was carried out in 2012. In 2013 the equipment of temperature monitoring for the purpose of control over temperature parameters of cable lines was commissioned.

2010–2011

Q4 2012, Q2 2013

8

Reconstruction of CL 6–110 kV: CL 110 kV K-126, K-127

Increase in capacity of power lines with a view of increase of power supply reliability of consumers of Central district of St. Petersburg and creation of conditions for connection of additional loading.

2010–2012

Q4 2013

1,085

0/18

Reconstruction of CL 6–110 kV: CL 110 kV K-119, K-120

Decrease in the level of accident rate of grids. Increase of power supply reliability of industrial and household enterprises, and social and significant subscribers of Petrogradsky, Vyborgsky and Kalininsky districts of St. Petersburg

2013

Q4 2013

364

0/6

Reconstruction of CL 6–110 kV: CL 110 kV K-101, K-102

Decrease in the level of accident rate of grids. Increase of power supply reliability of industrial and household enterprises of Vyborgsky and Kalininsky districts of St. Petersburg

2013

Q4 2013

711

0/12

Reconstruction of CL 6–110 kV: CL 110 kV K-117, K-118

Decrease in the level of accident rate of grids. Ensuring increase of power supply reliability of consumers of Vyborgsky and Kalininsky districts of St. Petersburg.

2013

Q4 2013

357

0/6

Reconstruction of CL 6–110 kV: CL 110 kV K-140, K-141

Increase of power supply reliability of industrial and household enterprises of Vyborgsky and Kalininsky district of St. Petersburg, including consumers of 1 category of power supply reliability and socially significant facilities.

2013

Q4 2013

469

0/8

The most important and priority projects of the investment program launched in 2013
Project name Purpose of the project Planned terms of construction Input of capacity, MVA/km Structure of capital equipment

Complex development of electric networks of Petrogradsky district of St. Petersburg

Formation of the optimum scheme of power supply of Petrogradsky district providing possibility of connection of applicants in the terms required under contracts on technological connection taking into account declared category of reliability for the general capacity of 40.8 MW, and connection of future consumers on applications for the general capacity of 37.9 MW. Creation of a supplementary reserve of capacity and ensuring further development of grids of Petrogradsky district. Ensuring power safety at simultaneous decrease in specific expenses, increase of environmental safety of the historical downtown of St. Petersburg. Replacement of CL sites and substations’ worn out equipment.

2013–2016

511/85

9 x CDTS 35/6/0.4 kV in capacity of 2 x 12,5 MVA each; new substation 110 kV with transformers of capacity 2 x 63 MVA; reconstruction of existing substation 110 kV with installation of transformers of capacity 2 x 80 MVA

Reconstruction of CL 6–110 kV: CL 110 kV K-128, K-129

The project is implemented within the target program “Renovation
of CL 6–110 kV” on reconstruction of oil-filled CL. The reconstruction will provide increase of power supply reliability of consumers of Vasilyevsky Island and Kirovskiy district of St. Petersburg, increase in capacity, connection of additional loadings to substation of JSC Lenenergo, increase of reliability of transits providing increase of stability of the power supply system in emergency operation, reduction of the volume of abortively interruptible loadings.

2013–2014

0/7

Reconstruction of CL 6–110 kV: CL 110 kV K-29, K-30

The project is implemented within the target program “Renovation of CL 6–110 kV” on reconstruction of oil-filled CL. The reconstruction will provide increase of power supply reliability of consumers of Admiralteysky and Moskovskiy districts of St. Petersburg, increase in capacity, connection of additional loadings to substation of JSC Lenenergo,, increase of reliability of transits providing increase of stability of the power supply system in emergency operation, reduction of the volume of abortively interruptible loadings.

2010–2013

0/2

The program of renovation of the cable network 6–110 kV in St. Petersburg financed by the federal budget

The program of priority actions on renovation of cable lines 6-110 kV financed with attraction of budgetary funds was developed with a view of increase of reliability of work of the cable network in St. Petersburg and provision of uninterrupted power supply of city districts.

Initial term of implementation of the program according to the agreement between JSC Rosseti, Ministry of Power Industry of the Russian Federation and St. Petersburg was planned for 2013. Subsequently there was signed a tripartite agreement between St. Petersburg, JSC Lenenergo and JSC Rosseti (approved by Minutes # 1, # 42-s of 21.08.2013), and supplementary agreements on implementation of the renovation program between Ministry of Power Industry and JSC  Rosseti under which the deadline of implementation of the program was prolonged till 2014.

By results of 2013 execution of the plan of Capex under the program of renovation of CL 6-110 kV totaled 89%. The deviation from planned indicators is connected with existence of savings of budget cost by results of trading and procurement procedures.

In 2013 within implementation of the program “Renovation of CL 6-110 kV” input of CL 110 kV K-103, K-104; K-126, K-127; K-101, K-102, K-117, K-118; K-119, K-120; K-140, K-141 was carried out with the general length of 57.1 km in the districts of St. Petersburg.

As a result of the renovation of CL 110 kV the capacity of power lines increased that contributed to increase of power supply reliability of consumers of Petrogradsky, Central, Vyborgsky, Kalininsky, and Vasileostrovsky districts, including consumers of 1 category of power supply reliability and socially significant facilities, and to creation of conditions for connection of additional loading. The share of equipment with above-level time-frame after implementation of the projects made 0% at the indicator before implementation of the project of 100%.

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