4. SIGNIFICANT EVENTS

February

The international rating agency Standard & Poor’s awarded TGC-1 a corporate governance score of “5.0” according to the international scale (“5.3” according to the Russian scale).

Маrch

The Board of Directors approved Company’s Development Strategy for the period from 2006 to 2015.

Маy

TGC-1 put into operation the new electric power plant in Saint-Petersburg –
Pravoberezhnaya CHPP-5.

The Company’s first AGM elected a new Board of Directors and approved the Annual Report for 2005.

June

The Board of Directors approved TGC-1 Investment Program for the period from 2006 to 2010.

July

Shareholders of JSC “TGC-1” resolved to restructure JSC “TGC-1” by means of adjoining to it JSC “Petersburg Generating Company”, JSC “Kola Generating Company”, JSC “Karelenergogeneratsiya”, and JSC “Apatity CHPP”. Besides, the shareholders resolved to increase JSC “TGC-1” capital stock by disposing additional Company’s shares by means of the adjoining Companies’ shares to TGC-1 shares. Also it was decided to increase the capital stock of JSC “TGC-1” by disposing additional Company’s shares by means of private offering of TGC-1 shares to JSC “Murmansk CHPP” shareholders.

The Governor of St.Petersburg Valentina Matvienko and RAO “UES of Russia” Chairman of the Board Anatoly Chubais signed an Agreement on realization of prior arrangements on construction and modernization of electric power facilities in St.Petersburg.

September

Valery Rodin was elected General Director of TGC-1.

The construction of a new diesel power plant at Valaam Island was set up.

October

The concept for the presentation of JSC “TGC-1” Annual Report was chosen as the best for 2005 at the International Economic Forum “Kuban — 2006” in the city of Sochi.

November

On November 1, 2006 the merger of JSC “Kola Generating Company”, JSC “Petersburg Generating Company”, JSC “Karelenergogeneratsiya”, and JSC “Apatity CHPP” was completed to create a unified operating company.

December

Within the framework of Kyoto protocol TGC-1 initiated activity for the inventory of greenhouse gas emissions.
Ordinary shares of JSC “TGC-1” admitted to trading on the RTS Exchange Market.