Glossary

Annual report 2013
OJSC Kubanenergo
English (United Kingdom)Russian


Glossary

Abbreviations and Terms

AMIS EPFA

shall mean automated measuring and information system for electric power fiscal accounting.

AMIS EPFA WEM

shall mean automated measuring and information system for electric power fiscal accounting for wholesale electricity market .

AMIS EPFA REM

shall mean automated measuring and information system for electric power fiscal accounting for retail electricity market .

AEPCAS

shall mean automated electric power control and accounting system.

OHTL

shall mean overhead transmission line.

FOCL

shall mean fiber optic communication line.

Shortfall in income due to granting connection allowance to consumers of up to 15 kW

shall mean regulated entity’s shortfall in income resulted from the difference of actual grid connection charges from reduced payment for the grid connection as established by applicable law.

Default (Power) Provider

shall mean a commercial entity that is bound, according to Federal Law No. 35-FZ dated 3/26/2003 “On Electric Power Sector” or by virtue of voluntarily assumed responsibilities, to enter into the power purchase agreement with any applying electricity consumer or any person acting for and on behalf of any electricity consumer and willing to purchase electric power.

GTPP

shall mean gas turbine power plant.

S&A

shall mean Subsidiaries and Affiliates of the Company.

ISG

shall mean any switchgear with its equipment installed indoor, or secured from any contact with environment by means of special purpose shrouds.

CL

shall mean cable power line.

Compliance Risks

shall mean profit risk or risk of loss resulting from the noncompliance of the employees’ actions with internal and external regulatory documents.

Required “Boiler” Gross Proceeds

shall mean an economically feasible amount of funds required by an organization to perform regulated activities during an accounting regulatory period, taking into consideration any costs incurred for the payment of the services rendered by territorial grid companies, FGC UES, as well as for the purchase of electric power needed to compensate for losses.

“Boiler” Transmission Tariffs

shall mean all-in power transmission tariffs graded by the voltage level applicable within the area of the Krasnodar Region and the Republic of Adygeya for all consumers of the power transmission services, irrespective of which grid company’s grids they are connected to.

ECSG

shall mean external complete switchgear, i.e. an electric installation designed to collect and distribute electric power.

ELT

shall mean electric transmission line.

RAB (Regulatory Asset Base

) shall mean a tariff regulation method for distribution grid companies, according to which required gross proceeds taken for the calculation of the tariffs shall be determined through the return on investment and shall be imposed for a long-run period. One of the key RAB parameters is imposed tariffs’ longevity, recoverability of investment, which reduces investors’ risks and allows executing long-term loans. Furthermore, the method secures preservation of investment, which also encourages investing in the business. At the same time, RAB implies fair return on investment made in the regulated company comparable with return on investment made in other assets with similar risks.

Undersupply

shall mean undesupply of electric power to consumers due to the power grid operating failure.

Non-Influenceable Costs

shall mean any costs free of any influence, that would not change upon administerial decisions of the Company management within given period of time. Non-Influencable Costs, inter-alia, include: purchased electricity intended for the compensation for losses; grid distribution companies’ services; services rendered by FGC UES; wear and tear; leasing; taxes, including, but not limited to, insurance payments; rent.

R&D

shall mean Research and development, as well as engineering.

OJSC Kubanenergo, Company, Issuer

shall mean the Open Joint-Stock Company of Power Industry and Electrification of the Kuban Region.

Scope of Services Rendered

shall mean the amount of the electric power transmitted through the technical facilities of the power grids owned by OJSC Kubanenergo or otherwise possessed by it in compliance with the laws of the Russian Federation.

Olympic Venues

for the purposes of this document, shall mean power distribution facilities of federal significance specified in the Program of Construction of Olympic Venues and Development of Sochi as a Mountain Climate Resort approved by the Decree of the Government of the Russian Federation No. 991 of 12/29/2007 (as amended).

OSG

shall mean outdoor switchgear, i.e. an electric facility designed to collect and distribute electric power, with power conductors installed open-air without any protection from the environmental exposure.

Supplies to the Grid

shall mean the amount of the electric power collected by the distribution grid through the supply points from the Unified National Power Grid, from the generation and other related systems, realized by the voltage level against the inventory responsibility interface.

AR

shall mean Accounting Regulations.

Influencable Costs

shall mean any costs exposed by the management of the Company.

Net Supplies

 shall mean the amount of the electric power transmitted (supplied) by the distribution grids through the power supply points controlled by consumers and/or downstream grid companies, realized by the voltage level against the inventory responsibility interface. It corresponds to the physical electric power transmission by the power grids.

Electric Power Losses:

 

Actual (Reported) Electric Power Losses

shall mean the difference between the amount of the electric power supplied to the power grid from other grids or by electric power producers and the amount of the electric power consumed by the power receivers connected to this grid, as well as transmitted to other grid companies.

Reference Electric Power Losses

shall mean estimated amount of losses determined by a competent federal executive authority in relation to any cluster of electric transmission lines and other power grid facilities owned by respective grid company, graded by the grid voltage level. The cost of Reference Electric Power Losses shall be included in the transmission payment (tariff).

Excessive (Market) Electric Power Losses

shall mean the difference between Actual and Reference Electric Power Losses; it shall be fully paid by the grid company that owns the grids where the Excessive Electric Power Losses occurred.

Electric Power Losses Under Load

shall mean the losses that depend on transformer loads and line loads arising during the transmission process.

SS

shall mean Substation.

PGDA

shall mean Power Distribution Grid Areas within OJSC Kubanenergo branches comprised of several grid sites and the following teams: operative dispatching team, mechanization and transportation team, electric power transport team, and operating management team (performing via the PGDA Leader).

RAS

shall mean Russian Accounting Standards.

REC-PTD KT

shall mean Regional Energy Commission - Pricing and Tariff Department of the Krasnodar Region, i.e. an executive authority of the Krasnodar Region in the field of the state regulation of tariffs.

PGA

shall mean Power Grid Areas within OJSC Kubanenergo branches.

Grid Company, Distribution Grid Company

shall mean a Company that performs electric power transmission and/or distribution through power grids.

SSIW

shall mean self-supporting insulated wire.

Related Grid Company

shall mean any grid company that owns or otherwise legally possesses power grid facilities directly connected to power grids of any other grid company (it is related to).

Required In-House Gross Proceeds

of the Company shall mean an economically feasible amount of funds required by an organization to perform regulated activities during an accounting regulatory period, without taking into consideration any costs incurred for the payment of the services rendered by territorial grid companies, FGC UES, as well as for the purchase of electric power needed to compensate for losses.

Average Staff Headcount

shall be determined by summing headcount for each calendar day of the period, including public holidays (days-off) and weekends, and dividing the total sum by the quantity of calendar days of the period.

Staff Headcount

shall mean the number of full time employees, seasonable employees, temporary employees and other employees on the rolls of the company. The Staff Headcount comprises of the employees at work and those who are absent due to whatever reason but have not terminated their employment contracts with the company, and get wages in this company.

Technical Losses

shall mean electric power losses on the lines and the grid facilities resulting from any physical processes occurring during electric power transmission in accordance with technical parameters and operating modes established for such lines and facilities, taking into consideration substation in-house power consumption.

Process Upset

shall mean unauthorized power grid disturbance.

TSS

shall mean Transforming Substation.

Technological Connection

shall mean the connection of any entity’s and person’s power receivers (power systems) to power grids of the companies that render electric power transmission services.

TGC

shall mean territorial grid company, i.e. any commercial entity that owns or otherwise, in compliance with the federal law, possesses power grid facilities used by such company in order to render electric power transmission services and duly perform the connection of any entity’s and person’s power receivers (power systems) to service, and that exercises its right to enter into electric power transmission contracts through any power grid facilities not pertaining to the Unified National (All-Russian) Power Grid.

TPS

shall mean Thermal Power Station.

Power Supply Center

shall mean substation bus bars for 110, 35, 6/10 kV.

ES

shall mean emergency situation.

EBITDA

(Earnings before Interest, Taxes, Depreciation and Amortization) shall mean an indicator equal to the amount of earnings before the payment of taxes, depreciation and amortization expense, and interest on loans.

ROE

shall mean Return on Equity ensured by cash flows; it shall be calculated for the period of one year and shall be denominated in percent:
ROE = NPcf / EQb,
wherein: EQb means equity (line 1300 of the Balance Sheet at the beginning of the planning year);
NPcf = NP - G1 - G2 - G3 - G4
wherein:  NP means net profit (line 2400 of the Profit and Loss Statement (Form 2 of the annual accounts for shipments for the reported year);
G1 means profit of prior years recognized during the reported period (total amount for lines 8009, 8010, 8011, 8012 of Form 2 less profit tax 24% through 2008 and 20% since 2009);
G2 means accounts payable write-off (line 8014 of the Form 2 less profit tax 20%);
G3 means financial investment and market equity securities revaluation surplus (other income, line 8020 of Form 2);
means writing off of the restructured tax penalties and fines that can be accounted in any other income line, including the line “miscellaneous”;
Quarterly figures represent estimations and shall be calculated as year to date accruals.

ROTA

shall mean Return on Total Assets; it is a performance indicator determined as quotient of net profit (or profit before tax) for the reported period by the total amount of the company’s assets for the reported period.

SGS S.A.  

shall mean Societe Generale de Surveillance S.A., a global leader in the field of control, examination, testing and certification.

Units of measurement

VA

 volt-ampere

W

 watt

yr.

year

yrs.

 years

Gcal

 gigacalorie

kV

 kilovolt

kVA

 kilovolt-ampere

sq. km

 square kilometer

sq. m

 square meter

kW

 kilowatt

kWh

 kilowatt hour

km

 kilometer

kop.

 kopeck

m

 meter

MVA

 megavolt-ampere

MW

 megawatt

mln

 million

bn

 billion

RUB

 Russian Ruble

s

 second

d.

 day

t

 ton

ths

 thousand

h

 hour

person

 person

pcs.

 pieces