UESR Annual Report 1997
Contents

Financial Results

Address to Shareholders from the RAO UESR Executive Office

Company's Business Results

Asset Structure

Volume of Products, Subscriber Fees, Revenues' Structure

Production Cost, Profit and its use

Accounts Receivable and Payable

Balance Sheet

Profit and Loss Account

RAO UESR Stock in the Securities Market

Summary of UES of Russia Coordination and Management Results

Electric Power Production and Transfer

Electric and Heat Power Markets

UES of Russia Dispatch Manegement

Subsidiary Management

Investments

Foreign Business Activity

Scientific and Technical Development of UESR

Audit Report

Information for Shareholders

Appendix

• • • • • • • • • • •

Report's Home Page

Shareholder

UESR Home

Scientific and Technical Development of UESR

A strategic priority of UESR’s scientific and technical development is overseeing the development of new types of equipment and technology with which the electric power industry will start the 21st century. Specific attention is being paid to ensuring high economic and environmental efficiency of production and to creating conditions for stable development of the industry and maintaining safe power supplies in the country.

In spite of the dire shortage of funds in 1997, assembly of the first 110 MWt gas turbine engine with specifications up to international standards was completed. 325 MWt steam and gas plants will be developed from this base allowing the start of large-scale refurbishment of the industry and ensuring its higher economic and environmental efficiency.

In 1998 a research programme under “Fuel and Energy”, a dedicated federal programme, will be continued; one of the objective of this programme is to develop a number of environmentally “clean” technologies of burning low grade types of solid fuel at heat power stations, as well as new technologies for the boiler flue gas treatment to remove pollutants and recover ash and slag production waste.

Particular attention is being paid to the intensification of research aimed at the development of 300-500 MWt coal power units intended for operation with supercritical steam parameters; the development of such units will lead to efficiency comparable to the efficiency of steam and gas units which consume natural gas.

Provisions have been made for activities to develop measures for extending the park life of operating high pressure energy equipment which is particularly important under the conditions of the protracted financial crisis and investment decline which slowed down the required renewal of fixed production assets.

One of the most important tasks is to preserve the industry’s scientific research and design infrastructure, and to improve it by implementing measures to restructure the scientific and design system, to create conditions necessary for strengthening scientific staff units and for increasing the technical level of scientific research units.

UESR has looked at various options aimed at iincreasing the efficiency of the system: an increase in the share of fuel-free power stations in the overall capacity structure; technical re-equipment and construction of new heat power stations with the use of advanced technology; and equipment utilisation optimisation.

The strategy adopted by the company provides for an increase in the share of gas in the fuel structure to 68%, preserving the share of coal at 27% and reducing the share of fuel oil to 5%.

In order to optimise the operating modes of the UES of Russia, to engage cheap “locked-in” capacity and to reduce losses, provisions are made for commissioning 16 thousand km of power lines with the voltage of 330 kV and above until 2005. The construction of the inter-system power links Siberia-Urals-Centre with the voltage of 500-1150 kV will result in cheaper power of Siberian power stations in the balance of Russia. The construction of a 500 kV power line from the Pechora State District Power Station to the Vologda Power System, a 500 kV Ilkovo-BAZ-Severnaya Vyatka power line, a 330 kV Kolskaya Nuclear Power Station - Petrozavodsk - Kirishi State District Power Station power line will permit the use of the “locked-in” capacity of the Pechora State District Power Station, the power stations of Tyumenenergo Joint Stock Company and Kolskaya Nuclear Power Station.

ââåðõ