Operating risk

The Company operates on a wide territory with various climatic conditions. There is a possibility of emergencies due to natural disasters (hurricanes, showers and ice storms, floods, snow storms, etc.) that may lead to systematic failures in grid efficiency and shortages. Operating and technological risks influencing supply reliability are related mainly to high depreciation of facilities, failures in exploitation and operating modes of equipment, failures to execute repair in full. Besides, exploitation and technological risks may include incidents of natural and technogenic character, decreased efficiency of our asset management system (shift in priorities to ensure exploitation reliability and wrong ranging of facilities subject to repair), transition to constrained emergency modes as well as factors related to equipment exploitation. In case the risks occur, we can encounter both economic and reputation consequences. Besides, these risk factors influence losses increasing our expenses on energy purchase to compensate losses.

To decrease the possible operating and technological risks we take measures aimed at the increase of supply reliability and prevention of technological violation risks, including line widening and clearing; facilities reconstruction; expansion of reserve power centers, enlargement of the fleet of automotive and special-purpose vehicles for accident recovery work; grid update program; switchgear and telematics update; improvement of systems for data collection and transmission and operating problem analysis, emergency consequences forecast, including the implementation of automated system for resource administration during restoration works; improvement of emergency stock system; increased number of mobile restoration teams and equipment quality; programs dealing with traumatism decrease on grid facilities; education, control and performance review of the personnel using technological equipment; insurance program; energy-saving and efficiency increase program.