Glossary

AEPCAS

 shall mean automated electric power control and accounting system.

ASTM

 shall mean automated system of technological management.

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 26.03.2003 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 or OJSC Russian Grids.

UNPG

 shall mean the Unified National (All-Russian) Power Grid.

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.

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 Territory 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.

Regional RGP, Required Gross Proceeds of the region

 shall mean an economically feasible amount of funds required by grid organizations operating within the area of the Krasnodar Territory and the Republic of Adygeya to perform regulated activities for the electric power transmission during an accounting regulatory period.

Company’s GRP, 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, JSC FGC UES, as well as for the purchase of electric power needed to compensate for losses.

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 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.

Scope of Services Rendered

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

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.

PJSC Kubanenergo, OJSC Kubanenergo, Company, Issuer

Kuban power and electrification public joint stock company

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.

RPEA

  shall mean relay protection and emergency automation;

PGDA 

 shall mean power distribution grid areas within PJSC 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

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

PGA 

 shall mean power grid areas within PJSC 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).

Mass Media 

 shall mean mass communication media.

Average Staff Headcount

 shall mean the total sum of headcount for each calendar day of the period, including public holidays (days-off) and weekends divided 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 transformer 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.

EMR

shall mean equipment maintenance and repair.

Preset value of RPEA

 shall mean operating (reset) value or operating (reset) time which the relay is adjusted to.

C.u., conditional unit 

 equipment conditional units.

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 and person’s power receivers (power systems) to service, and that exercises its right to enter into electric power transmission agreements through any power grid facilities not pertaining to the Unified National (All-Russian) Power Grid.

TPP 

 shall mean thermal power plant.

Feeder

shall mean the power line connecting the busbars of the switchgear with distribution and consumer power grids fed by these busbars.

Power Supply Center

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

EBITDA

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

ROE

  (Return On Equity) is a performance indicator representing a quotient of the division of the net profit obtained in the period by equity of the organization.

ROTA 

 (Return on Total Assets) 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.

Units of Measurement

VA

 volt-ampere

W

 watt

yr.

 year

yrs.

 years

Gcal

 gigacalorie

kV

 kilovolt

kVA

  kilovolt-ampere

kW

 kilowatt

kWh

 kilowatt hour

km

kilometer

kop.

 kopecks

m

 meter

MVA

 megavolt-ampere

MW

 megawatt

mln

 million

bn

 billion

RUB

 Russian Ruble

% point

 percentage point

s

 second

d

 day

t

 ton

ths

 thousand

h

 hour

ppl

 people

pcs

 pieces