The Ministry for Energy Industry and the housing and public utilities of the Murmansk Region have approved the long-term investment program of the branch “Kolenergo” for 2011-2015.

The Ministry for Power Industry and the housing and public utilities of the Murmansk Region have approved the long-term investment program of IDGC of North-West’s branch “Kolenergo” for 2011-2015.

The total amount of capital investments into development of the electric grid facilities of the region for five years will equal RUR 5 billion 909 million.
According to Marat Araslanov, Chief of the Capital Construction Department of IDGC of North-West’s branch “Kolenergo” (in the photo), “A large-scale set of actions is planned to be performed at the facilities of the regional center, where serious shortage of capacity is experienced today. In particular, a large volume of works will be carried out in respect of reconstruction of substations S-64 (110 kV), S-4 (110 kV) and S-53 (150 kV) located in Murmansk. Installation of the second autotransformer is planned at substation S-53, which will allow for increase in reliability of electric power supply of consumers. Significant reconstruction will be held at substation S-8 (110 kV) in the city of Kola as well.”

The long-term investment program also provides for reconstruction of several 35 kV substations.

The 2011-2015 investment program has been generated subject to the expected adoption by IDGC of North-West’s branch “Kolenergo” of a new long-term tariff regulation system with application of the return on invested capital method (RAB - Regulatory Asset Base) since January 2011.

Adoption by electric grid companies of the regulation under the new tariff generation method is determined by federal laws #35-FZ, #41-FZ and amendments to Governmental Order of the Russian Federation #109.