1.1. Key Indicators

1.2. Overview

Territorial Generating Company No. 1 (TGC-1) is the leading producer of electricity and heat in the North-West region of Russia.

TGC-1 was founded in 2005 in the course of reforming the electric energy industry of Russia, and the Company now incorporates generating enterprises from the Baltic Sea to the Barents Sea. TGC-1 generating assets are 55 electric power plants of various types in four parts of the Russian Federation, namely Saint Petersburg, the Republic of Karelia, and the Leningrad and Murmansk Oblasts.

Electricity is generated and delivered to the domestic wholesale electricity market and is exported to Finland and Norway. TGC-1 is a strategic supplier of heat in Saint Petersburg, Petrozavodsk, Murmansk, Kirovsk in the Leningrad Oblast, and Apatity in the Murmansk Oblast.

TGC-1's structure includes the following affiliates: JSC Murmansk CHPP (energy supply to Murmansk and surrounding areas; a 90.34 % share in the authorized capital), Khibiny Heating Company (renovation of heat supply in the Apatity-and-Kirovsk region; a 50 % share in the authorized capital), Saint Petersburg Heating Grid (an association of the heating grids within the area of the Company’s CHPPs operation, a 74.99 % share in the authorized capital), and the affiliated company TGC-1–Service (a specialized repair and maintenance enterprise, a 26 % share in the authorized capital).

TGC-1 is part of the Gazprom Group. Gazprom’s generating assets are consolidated in the special-purpose affiliate Gazprom Energoholding established within the framework of the Gazprom Strategy implementation in the electricity industry. That allows an effective management system based on unified corporate standards. The Group consolidates the controlling stakes of Mosenergo, OGK-2, and TGC-1 through Gazprom Energoholding. Gazprom is the largest owner of generating assets in Russia and one of ten major global electricity producers.

The principal shareholders of TGC-1 are:

TGC-1 shares are traded on the RTS and MICEX stock exchanges.

The second biggest shareholder, Fortum Power and Heat Oy, is Scandinavia's leading energy concern with the highest standards of business conduct. It makes a valuable contribution to enhancing the Company’s management efficiency.

Operating an environmentally responsible production and implementing an innovative social policy based on international standards of business conduct, TGC-1 is striving to take the leading position in the energy market, be a reliable partner for investors, take care of the shareholders’ interests, and satisfy the customers’ highest requirements.

1.3. Company’s Organizational Structure as of 1 May 2012

1.4. Events in 2011


TGC-1 in cooperation with Electrocentromontage established a specialized repair and maintenance enterprise: TGC-1-Service.

Vladimir Putin, the Prime Minister of the Russian Government visited the Yuzhnaya CHPP to discuss the results of the energy industry performance in 2010.

The inauguration ceremony for the 29.5-MW hydro generating unit No. 2 was held at the Lesogorskaya HPP of the Vuoksinskiye HPPs Cascade.


On 1 March 2011, a new 180-MW CCGT unit of the Pervomayskaya CHPP, which was commissioned under the capacity supply contract, began providing capacity supplies to the wholesale market.

Ural Turbine Plant and LLC TGC-1-Service signed a cooperation agreement.


Alexey Miller, Chairman of Gazprom and Alexander Kerzhakov, striker of the Zenith Football Club took part in inaugurating the 450-MW CCGT unit at the Yuzhnaya CHPP. On 1 April 2011, the new unit started providing capacity supplies under the capacity supply contract.

Following TGC-1’s request, the RTS Stock Exchange transferred the Company’s shares from Quotation List “B” to “Securities admitted for trading without listing procedure”.


On 1 May 2011, Andrey Filippov was elected TGC-1’s General Director by the decision of the Company’s Board of Directors.

TGC-1 celebrated the 75th anniversary of the Kola energy system.


TGC-1’s Board of Directors approved formation of the Murmansk CHPP subsidiary – Kola Heating Company LLC.

During the 80th anniversary of the energy industry of the Republic of Karelia, an Alley of Power Engineers was opened in the city of Petrozavodsk at the initiative of TGC-1.

At the International Economic Forum held in Saint Petersburg, representatives of Gazprom Energoholding subsidiaries took part in the forum.


On 1 July 2011, the 29.5-MW hydro generating unit No. 2 at the Lesogorskaya HPP of the Vuoksinskiye HPPs Cascade started providing capacity supplies to the wholesale market under the capacity supply contract.

The Petersburg energy system celebrated the 125th anniversary of the founding of “Company of Electric Lighting in 1886”.


Following a testing period, the first gas turbine of the second 180-MW CCGT unit at the Pervomayskaya CHPP was synchronized with the energy system.

Further development of the electric energy industry was discussed during the meeting of the specialized Government committee. A programme of electricity energy industry modernization for the period through 2020 was presented.


A working meeting between Alexey Miller, Chairman of the Management Board of Gazprom, and Georgy Poltavchenko, Governor of Saint Petersburg, was held in Saint Petersburg. Gazprom made a presentation of the company’s operations in Saint Petersburg.


TGC-1’s Board of Directors approved the prospectus of series 03-06 bonds.

The Ministry for Energy of the Russian Federation submitted to the Russian Government draft regulations on allocation of subsidies from the federal budget for implementing regional energy saving and energy efficiency programmes.


Finalization of corporate procedures for restructuring of OGK-2 by incorporating OGK-6.

Grand ceremony for the start of construction of the heating mains from the Apatitskaya CHPP to the city of Kirovsk was held in the city of Kirovsk in the Murmansk Oblast.

A new 30.5-MW hydro generating unit No. 4 was commissioned at the Svetogorskaya HPP of the Vuoksinskiye HPPs Cascade. Sergey Naryshkin, Head of Administration of the President of the Russian Federation commissioned the new hydro generating unit during an online teleconference.


TGC-1’s series 03-06 bonds were registered by FFMS of Russia.

A Christmas Fair was opened in Saint Petersburg. For the first time TGC-1 became the fair's general organizer.

A virtual museum of the history of the North-Western energy industry was opened.

TGC-1 placed series 03 bonds for funding its investment programme.