Results of nature conservation in JSC "Grid Company" for 2006

Сondition and protection of atmospheric air
Соndition and protection of water basin
Handling of production and consumption wastes
Аnalysis of charges for negative impact
Implementation of nature conservation plans

JSC "Grid Company" effects its activities according to requirements of applicable laws and normative acts in the area of nature conservation according to agreed limits as part of valid licenses and permissions.

In 2006 nature conservation was done according to basic directions of environmental policy of JSC "Grid Company":

• conformity of production to requirements of nature conservation laws,
• reduction of negative impact on environment and resource conservation,
• formation of company image as environmentally safe production.

In 2006 inventory of objects of atmosphere pollution in JSC "Grid Company" revealed 588 stationary sources (machine-tools, facilities, welding posts etc.), the figure is by 119 sources higher compared to 2005, that is explained by connection of branches of JSC "Tatelektroset" to JSC "Grid Company". At 7 stationary sources of emissions (woodworking facilities) there is the dust-gas-catchers (PGU), average operation efficiency of which is 90.8%, at the other sources there is no need in PGU.

In 2006 the gross polluting emissions volume in air was 71.46 tons. Compared to 2005 the increase was by 5.755 tons or by 8.7%, because of connection of branches of JSC " Tatelektroset", their share is 5.48 tons or 7.7%.

Volumes and composition of emissions by stationary sources of JSC "Grid Company" into the air do not make toxic, cancer gene and mutation impact, as for 2006 results there were no exceed of limit-permissible concentrations of polluting emissions in the land layer of the air. As at 1 January, 2007 in branches of JSC "Gridc Сompany" were 1,238 units of auto- transport that are the source of air polluting. Compared to 2005 reduced the number of auto- transport by 92 cars or by 6.9% because of writing off and utilization of the old techniques.

To the aim of compliance with GOST and as part of production control over polluting emissions from movable sources in each branch of JSC "Grid Company" on the quarter basis the carbon oxide, hydrocarbon and technical carbon content is controlled in exhaust gases of combustions engines (ТО -2).

Сondition and protection of water basin

In 2006 as a result of production and business activity of total amount of taken water was used:

• for production needs – 17.12 th. m³ (13.4%);
• for economical.-drinking needs – 110.30 th. m³ (86.6%).

• reduction of water consumption for production needs by 2.78 th. m³ (14%), basically, caused by water saving and regulated metering;
• increase of water consumption for economical.-drinking needs by 9.07 th. m³ (9%) because of connection to JSC "Grid Company" of JSC "Tatelektroset" entities and increased water consumption in Buinsk EG because of contract signing for water supply to transportation base.

• transferred to other entities after use – 99.51 th. m³ (78.1%);
• household –sewage drainage to cesspits – 27.91 th. m³ (21.9%).

Amounts of recurred –successive water supply were 8.29 th.m³ a year. Compared to 2005 amount of recurred –successive water supply increased by 0.5 th.m³ through refill the system of automatic fire extinguishing in Kazan EG.

In 2006 branch of JSC "Grid Company" used the underground wells on base of 22 licenses for the use of the underground waters. Limit of annual water consumption from natural sources set forth by JSC "Grid Company" in amount of 187.6 th. m³, was not exceeded.

In 2006 were realized the terms of Permission for drainage the wastes from surface drainage to lay of ground, issued by Office for Technological and Environmental Inspection Rostehnadzor for Republic of Tatarstan. For branches of JSC "Grid Сompany" were developed the projects of collection and purification of the surface rain and melted drainage from the territory of auto transport parts. As a result of realization of the projects will be liquidated the major flows of the contaminated surface drainage and reduced the environmental payments of branches for organized wastes to territory.

Handling of production and consumption wastes

In 2006 as a result of production and business activity of JSC "Grid Company" were formed 4,995,957 tons of wastes of production and consumption (ОPP). The OPP reduced compared to 2005 by 306.07 tons or by 6.1%. Considering the balance for 2005 the amount of OPP in JSC "Grid Company" in the reporting year were 5,031,763 , of them:

• used in the own production – 126,647 t (2.5%);
• transferred to outside organizations – 4,890,721 t (97.2%), including:
  - placed on the grounds TBО – 3,537,432 t (72.3%),
  - transferred for recycling to specialized organizations on contract basis - 1,353,289 t (27,7%);
• balance as of the end of the year was 14.395 t (0.3%).

Basic input in reduction of wastes formation in JSC "Grid Company" was made by Nizhnekamsk, N. Chelny and Privolzhskie electrical grids.

Amount of ОPP formed in 2006 in each branch are within the set limits.

In structure of the formed production and consumption wastes the volume falls upon the wastes of the IV and V hazardous wastes class (94.9%):

• wastes of IV class constitute 56.3%, basic part are construction, household wastes, from territory, deposit of household drainage,
• wastes of V class are 38.5% - ferrous metal, reinforced concrete and wood wastes.

In 2006 the JSC "Grid Company" utilized 5,017.374 tons of ОPP:

• used in own production 126.65 tons (2.53%) wastes of production, exceeds the 2005 figure by 67.53 tons (87.5%)
• transferred to outside organizations - 4 ,890.721 tons, the figure is 346.9 tons or by 6.6% less than in 2005, including:
  - for use – 1,046.15 t (21.4%);
  - for disposal – 307.139 t (6.3%);
  - for burying on grounds ТBО – 3,537.432 t (72.3%),

Аnalysis of charges for negative impact

For resuts of production –economical activities in 2006 for negative impact on environment was charged the amount of 6,155.88 th. rubles, including:

• within normative – 4,98.2 th. rubles;
• above established normatives – 1,557.68 th. rubles.

Total charging compared to 2005 reduced by 894.1 th. rubles (12.7%):

• reduction of normative charges was 1,131.7 th. rubles (19.7%),
• growth of extra- normative charges was 237.6 th. rubles (18%).

• for throw of polluting agents with surface drainage – 4,750.7 th. rubles (77.2%);
• for placement of production and consumption wastes – 1,374.2 (22.3%).
• for polluting emissions in air - 31 th. rubles (0.5%).

Reduction of payments for negative impact on environment is explained by reduction of charges for drainage of wastes with surface drainage by 15.9% as a result of revaluation of the land, on balance of the branches in accordance with documents proving the right of property for land and for placement of production and consumption wastes by 0.4%.

However, the charges for polluting emission in air increased by 35% (8.1 th. rubles), which is related to connection of auto transport and entities of JSC "Tatelektroset" .

Extra normative payments for 2006 were 1,557.6 th. rubles, the figure exceeds the 2005 figure by 237.6 th. rubles or 18%. Basic part of extra normative payments were the charges for cars washing. Growth of extra normative payments was due to merger to JSC "Grid Company" the JSC "Tatelektroset" entities and recalculation according the extra normative rates the drainage of storm and melting waters from territory of branches of JSC "Tatelektroset" for 3 qur. of 2006 because of changed law requirements.

One of the parameters of the branches environment protection activities is the change of payment for negative impact on the unit of transferred electricity (th. kW/h). According to 2006 data this parameter remains on the 2005 level – on each transferred th. kW/h of electricity the payment was 32 cop.

Implementation of nature conservation plans

In 2006 the current and capital expenditures directed for realization of nature conservation were 11,552.3 th. rubles, the figure exceeds the 2005 values by 4,419.16 th. rubles or 61.9%.

Increase in 2006 of investments in nature conservation allowed to reduce the total payments for negative impact by 1,131.7 th. rubles or 19.7%.

Total of prevented environmental damage on base of nature conservation results in 2006 constituted 11,971 th. rubles, of them:

• water basin protection – 9,640 th. rubles or 80.5%,
• production and consumption waste handling – 2,331 th. rubles or 19.5%.

• development of system of collection and purification of storm water drainage from territory of auto-transport territory (Almetievsk EG, Buinsk EG, Naberezhnye Chelny EG, Privolzhskie EG, Chistopol EG);
• purchase of devices for measuring the dynamic level of water (Almetievsk EG, Yelabuga EG, Nizhnekamsk EG, Privolzhskie EG, Chistopol EG);
• repair of sites of oil farm (Kazan EG, Nizhnekamsk EG, Privolzhskie EG, Chistopol EG);
• replacement of oil switches with vacuum and SF6 ones in each branch of JSC "Grid Company".