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      1. 2.2.1 Network exploitation
      2. 2.2.2 Electricity transmission
      3. 2.2.3 Technological connection
      4. 2.2.4 Development of telecommunications and it systems
      5. 2.2.5 Investments
      6. 2.2.6 Innovations
      7. 2.2.7 Efficacy enhancement

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2.2.1 Network exploitation

Core production assets in 2016-2018

Assets MU 2016 2017 2018
6-220 kV substations pcs 32,068 32,501 32,913
Total capacity installed MVA 30,611 30,859 31,110
35-220 kV substations pcs 1,048 1,047 1,049
MVA 21,738 21,784 21,863
6-10(35)/0.4 kV transformer substations pcs 31,002 31,438 31,864
MVA 8,873 9,075 9,228
6-10 kV distribution stations pcs 18 16 19
0.4-10 kV aerial power lines kmkilometer 120,206 121,310 122,733
220 kV and over 220 kV kmkilometer 27 27 27
110-150 kV kmkilometer 18,131 18,132 18,084
35 kV kmkilometer 8,061 8,005 7,930
6-10 kV kmkilometer 51,004 51,258 51,586
0.4 kV kmkilometer 42,983 43,888 45,107
0.4-110 kV cable power lines kmkilometer 6,476 6,641 7,244
220 kV and over 220 kV kmkilometer - - -
110 kV kmkilometer 77 78 78
35 kV kmkilometer 110 108 114
6-10 kV kmkilometer 3,736 3,845 4,216
0.4 kV kmkilometer 2,553 2,610 2,836

Planning of Repairs

We plan repairs and put equipment under repair after analyzing its real technical status identified by preliminary omnibus inspections, expert valuations and technical diagnostics in compliance with regulatory and administrative documents. Restitution of equipment life through replacement of key parts and components (defect porcelain isolators for glass ones, worn-out or missing overhead protection cable for a brand-new wire, etc.) is the primary aim of the repair campaign. A special attention is also paid to renovation of buildings and structures in compliance with exposed exploitation defects as well as to enforcement of orders issued by state watchdog agencies.

Repair and Maintenance Program

The Company’s repair and maintenance target for 2018 totaled RUBruble 3,410 million. Real expenses in 2018 reached RUBruble 3,560 million (104%).

Target value Real value Percentage completion
Permenergo 1,288 1,339 104%
Sverdlovenergo 1,192 1,190 100%
Chelyabenergo 923 1,025 111%
IDGCInterregional Distribution Grid Company of Urals (plus HQheadquarters) 3,410 3,560 104%

The overrun was mainly influenced by recovery and unscheduled works. Total costs of the branches spent on outsourcing repair works totaled RUBruble 536 million or 15%, with RUBruble 3,024 million or 85% spent on in-house repair works.

Repair program in 2016-2018

MU 2016 2017 2018 2018 2018 percentage completion
real values real values target values real values
Power line corridor clearing ha 10,825 11,070 9,927 12,665 128%
Groundwire replacement kmkilometer 91.1 169.4 148.0 169.7 115%
Insulator replacement pcs 78,387 81,830 69,586 75,533 109%
Transformer overhaul pcs 41 42 34 40 118%
Switch overhaul pcs 1,618 1,611 1,661 1,770 107%
Overhaul of isolating switches, short circuitors, disconnecting switches pcs 1,348 1,530 1,593 1,623 102%
Total repair costs RUBruble mln 4,002 4,184 3,410 3,560 104%

The repair target value for 2019 is RUBruble 3,766 million or +10% YoYyear on year, with RUBruble 3,153 million (84%) to be spent on in-house works and RUBruble 613 million (16%) to be spent on outsourcing works.

Description of per-unit incident rates in 2016-2018. Primary incident factors.

The number of incidents on 110kV+ networks of the Company’s branches remains almost the same as in previous years: +1.5% on 2017 and -1.4% on 2016. Primary factors of incidents on 110kV+ networks in 2018 are lightning overvoltage (thunderstorms); aging of equipment; wind load; impact of outside parties and firms; impact of animals and birds. Other factors contribute less than 5%. In 2018, all branches of the Company achieved long-term reliability targets set by the regional regulators.

Incidents on 110kV+ networks in 2016-2018

 

Primary incident factors in 2018

 

In 2016, for the purposes of incident rate reduction and enforcement of reliable grid performance, the Company has approved(16) a set of 25 special-purpose programs on technical development (incl. refurbishment of 35-110 kV substations, 35-110 kV power lines, 10-6 kV backbone power lines, 0.4-10 kV distribution power lines, replacement of 6-10 kV bare wires, liquidation of injury-risk equipment, widening of 35-110 kV power line corridors, greenfield construction of 35-110 kV substations, 35-110 kV power lines, 0.4-10 kV distribution power lines, expansion of production and repair depots, development of telecommunications and ASTMautomated system for technical management, R&D, RPArelay protection automation upgrade, perspective development of metering systems, etc.). The primary expected effect from the special-purpose programs lies in retention of the level of incident rates and achievement of the reliability targets set by the regulators.

Property portfolio management:

Asset Physical terms:nAerials and cable power lines (kmkilometer),nSubstations and other facilities (pcs) Book (residual) value as of 01.01.2018, (RUBruble thousand) In 01.01.2018n- 31.12.2018, (RUBruble thousand) Out 01.01.2018 - 31.12.2018 (RUBruble thousand) Accrued amortization 01.01.2018 - 31.12.2018, (RUBruble thousand) Book (residual) value as of 31.12.2018, (RUBruble thousand)
2 3 4 5 6 7 8
Assets, classified as grid facilities, namely: 44,000,377 6,949,343 220.471 4,968,070 45,761,179
220+ kV aerial power lines 49 121,237 0 0 50,177 71.060
110 kV aerial power lines 26,015 8,224,099 456,639 6,089 753,423 7,921,226
35 kV aerial power lines 9,102 1,335,478 148,099 7,597 126,106 1,349,874
0-10 kV aerial power lines 96,693 9,318,251 2,706,472 78,840 1,092,721 10,853,162
220+ kV substations 3 199,839 620 0 46,768 153,691
110 kV substations 635 4,349,660 607,794 6,017 611,634 4,339,803
35 kV substations 408 744,298 96,657 2,007 114,765 724,183
0-10 kV substations 31,864 7,549,673 1,183,764 18,144 780.018 7,935,275
Cable power lines (all voltage classes) 7,244 6,095,879 40,236 5,886 239,361 5,890,868
Other assets, designed for electric connection 6,061,963 1,709,062 95,891 1,153,097 6,522,037
Non-core assets enlisted in the non-core asset register 36 132,522 25,397 16,566 2,464 138,890
Other assets, namely: 5,378,196 1,044,761 173,640 555,174 5,694,142
Owned land plots 501 81,494 10,963 366 0 92,091
Fixed assets (line 1150 in the balance sheet) 49,511,095 8,019,501 410,677 5,525,708 51,594,211
Rented assets, classified as grid facilities, namely: 3,175,122 396,154 359,412 1,490 3,210,374
220+ kV aerial power lines 0 3,548 0 1,028 0 2,520
110 kV aerial power lines 88 28.047 0 137 0 27,910
35 kV aerial power lines 43 1.79 0 0 20 1,770
0-10 kV aerial power lines 4,109 268,110 27,530 24,688 583 270,369
220+ kV substations 1 116,149 93,410 8 0 209,551
110 kV substations 18 132,087 6,048 24,943 0 113,192
35 kV substations 7 327 338 0 12 653
0-10 kV substations 1,977 1,822,954 52,030 118,942 0 1,756,042
Cable power lines (all voltage classes) 2,178 407,087 23,874 105,825 187 324,949
Other assets, designed for electric connection 395,023 192,924 83,841 688 503,418
Other rented assets, namely: 6,242,339 1,723,898 990,239 0 6,975,998
Land plots 23,579 5,566,929 1,663,838 624,545 0 6,606,221
Assets, used under leasing agreements, classified as grid facilities, namely: 0 0 0 0 0 0
220+ kV aerial power lines 0 0 0 0 0 0
110 kV aerial power lines 0 0 0 0 0 0
35 kV aerial power lines 0 0 0 0 0 0
0-10 kV aerial power lines 0 0 0 0 0 0
220+ kV substations 0 0 0 0 0 0
110 kV substations 0 0 0 0 0 0
35 kV substations 0 0 0 0 0 0
0-10 kV substations 0 0 0 0 0 0
Cable power lines (all voltage classes) 0 0 0 0 0 0
Other assets, used under leasing agreements, designed for electric connection 0 0 0 0 0 0
Other assets, used under leasing agreements 0 0 0 0 0 0
Total rented assets, including those used under leasing agreements 0 9,417,461 2,120,052 1,349,651 1,490 10,186,371
TOTAL: 0 58,928,556 10,139,553 1,760,328 5,527,198 61,780,582

Changes in property portfolio:

Asset Physical terms:nAerials and cable power lines (kmkilometer),nSubstations and other facilities (pcs) Book (residual) value as of 01.01.2018, (RUBruble thousand) In 01.01.2018n- 31.12.2018, (RUBruble thousand) Out 01.01.2018 - 31.12.2018 (RUBruble thousand) Accrued amortization 01.01.2018 - 31.12.2018, (RUBruble thousand) Book (residual) value as of 31.12.2018, (RUBruble thousand)
2 3 4 5 6 7 8
Non-core assets enlisted in the non-core asset register 36 132,521.75 25,397.50 16,565.77 2,463.57 138,889.90
For reference: + financial investments:
Non-core assets enlisted in the non-core asset register 41 198,935.21 25,397.50 80,001.83 2,463.57 141,867.30

Pursuant to the President’s Edict(17), Russian Government Directive(18) and Russian Government Decree(19), the Board of Directors(20) has adopted the OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals Non-Core Asset Sale Blueprint. The Blueprint stipulates principal approaches, philosophy and mechanism of identification and sale of OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ non-core assets, sets criteria for counting OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ assets as non-core assets, management of the non-core asset register, approaches to assessment of non-core assets, principal provisions on non-core asset sale and reporting on the register progress. The Board of Directors(21) has also adopted the up-to-date register prepared in compliance with the program.

Sale of non-core assets in 2018:

Asset Book value, RUBruble thousand Real sales value, RUBruble thousand Spread, RUBruble thousand Spread factors
Part of a heating pump line in Artemovsky 0.00 0.00 0.00 The property was transferred to the municipality without compensation
Repair depot (Leninsk) 162.11 720.34 558.23 The sales value was defined as a result of the public offering sale
Serviceman depot (Pozhva) 2.73 360.63 357.90 The sales value was defined as a result of the auction
Apartment in Kamensk Uralsky 86.06 742.50 656.44 The sales value was defined as a result of the public offering sale
Property complex located at: 2 6th Ippodromnaya Ulitsa, Perm 9,282.58 24,639.00 15,356.42 The sales value was defined as a result of the auction
Non-residential building – Kuyash substation duty room (Bolshoi Kuyash) 0.00 42.53 42.53 The sales value was defined as a result of the auction
Land plot (Perm) 20.20 981.75 961.55 The sales value was defined as a result of the public offering sale
2-story brick building of a reinforcement shop (Gubakha) 236.14 0.00 -236.14 The property was removed from the Company’s books.
Facility – railway track (Yekaterinburg) 0.00 402.38 402.38 The sales value was defined as a result of the public offering sale
A group of non-residential buildings (Reftinsky) 897.20 3,348.31 2,451.11 The sales value was defined as a result of the public offering sale
Total: 10,687.02 31,237.44 20,550.42
Interest in OOOLimited Liability Company Uralenergotrans 63,411.02 0.00* -63,411.02* The long-term financial investment was removed from the Company’s books due to the dissolution of the firm
Shares of OAOOpen Joint-Stock Company Uralenergostroy 0.00 0.00 0.00 The long-term financial investment was removed from the Company’s books due to the dissolution of the firm and its exclusion from the USRLE
* — Following the dissolution of OOOLimited Liability Company Uralenergotrans OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals, as the sole shareholder, has entered movables and immovables, remaining after settlements with creditors, into the Company’s books at the market prices.

Consolidation of grid assets

OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals consolidates grid assets to shape a unified network area on the territory of the Company’s operations helping create a single point of responsibility for reliable and high-quality electricity supply and providing additional possibility to connect new consumers to the consolidated networks. The volume of grid facilities obtained through consolidation in 2018 totaled 4,142 c.u.conventional units Primary means of consolidation in 2018 were acquisition (877 c.u.conventional units), donation (2,566 c.u.conventional units) and rental (699 c.u.conventional units). Grid assets were consolidated pursuant to the consolidation plans approved on a quarterly basis in line with the Grid Asset Consolidation Roadmap(22) and Company’s investment program for 2018-2022.

Consolidation of grid assets.

2016 2017 2018
Consolidation of grid assets
MVA kmkilometer c.u.conventional units MVA kmkilometer c.u.conventional units MVA kmkilometer c.u.conventional units
OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals 2,158 5,666 38,232 2,117 5,627 38,586 2,141 5,528 38,947
Acquisition of grid facilities 34 40 352 16 71 244 27 21 493
Rented grid facilities 2,103 5,397 37,243 2,072 5,335 37,543 2,072 4,753 35,844
Other (permanent rights of ownership and use) 13 103 329 18 193 585 31 734 2,411
Other (temporary rights of ownership and use) 8 126 308 11 28 214 11 19 199
AOJoint-Stock Company EESKYekaterinburg Electric Grid Company 431 1,162 7,880 443 1,173 7,338 467 1,184 7,617
Acquisition of grid facilities 164.4 0.3 723 0.88 0 12 25 2 384
Rented grid facilities 255 1,162 6,966 435 1,173 7,233 423 1,180 7,077
Other (permanent rights of ownership and use) 11.56 0 191 7 0 93 19 2 155
Other (temporary rights of ownership and use) 0 0 0 0 0 0 0 0 0