AO Lenenergo

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Lenergo is the regional electricity supplier and distributor for St. Petersburg. It possesses 5,333 MW in generating capacity. It was corporatized in 1992 and privatized in 1994. Shareholders are RAO EES Rossii (49%), employees (24%), St. Petersburg (17%) and a shareholding fund for employees of Lenenergo (10%). Lenenergo is the only utility exporting electricity (to Finland). By 1997, the only foreign investor in the company was Prussen, a German utility which held a 5.9% equity stake. Current projects include the building of a 900-MW power plant in St. Petersburg by a consortium of Lenenergo and Siemens AG, IVO Energy International and Polar, which will export power to Finland. Two power plants are in construction: a 450 MW Block One whose completion was scheduled in July 1999 and a 450 MW Block II whose completion was schedule for July 2000). The cash payment was secured by power supply to Finland. Finish power company Fortum Oyi had acquired an additional 9.3% in Lenenergo in an asset swap worth nearly 800million euros with Germany's E.ON energy company. The deal brings Fortums's total stake in Lenenergo to 15.7%. In the swap, Fotum traded power plants in Germany and Ireland, as well as shares in a Swedish power distribution company, for the Lenenergo share and major stakes in number of Norwegian power companies. Fortum also paid 150 million euros to E.ON in the deal. In June 2003, EBRD and Lenenergo signed an agreement for Lenenergo to get a 40 million euro loan. The funds obtained under the 7-year loan were to go to complete construction of a 180MW new unit of TETs-5 heating plant. Total project value was 60 million euros. In August 2004, Fortum Oyi increased its stake in Lenenergo to 30.7% while its voting stock holding became 29.6%. Unified Energy System (UES), the state monopoly electricity company, remained as the main shareholder with 49%. As a result of RAO UES led power sector restructuring in Russia over 2003-2008, AO Lenenergo merged with Territorial Generating Company TGK-1. updated 2004 info.