AGREEMENT

of November 25, 1998

About ensuring parallel work of electric utility systems of the State Parties of the Commonwealth of Independent States

The State Parties of this Agreement on behalf of the governments which are hereinafter referred to as with the Parties

considering great value of power industry for development of economies, growth in prosperity and level of social security of the population of the states,

for the purpose of increase in reliability and profitability of providing the national economy and the population with electrical energy on the basis of use of economic, technical and technological benefits of parallel work of electric utility systems,

in view of mutual aspiration to cooperation in the field of power industry on the basis of equality, mutual advantage, observance of the sovereign rights to energy objects and resources,

for the purpose of increase in energy security of the states of members of the Commonwealth,

being guided by provisions of the Energy charter of December 17, 1991 and the Agreement to the Energy charter of December 17, 1994,

based on the intergovernmental agreement about coordination of the interstate relations in the field of power industry of the Commonwealth of Independent States of February 14, 1992,

agreed as follows:

Article 1

For the purposes of this Agreement the terms applied in it mean:

parallel work of electric utility systems of the states of participants of this Agreement - joint operation of electric utility systems with single frequency in electric utility system of the State Parties of this Agreement;

electric utility system of the state - set of the power generation facilities, means of operation and management of them connected by single production process, transfers and electricity distributions;

overflows of electrical energy - quantity of the electrical energy moved between in parallel the working electric utility systems of the State Parties of this Agreement;

unplanned (technological) overflows of electrical energy quantity of the electrical energy which is off-schedule moved between in parallel the working power supply systems of the State Parties of this Agreement including the electric power overflows arising:

as a result of regulation and maintenance of parameters in the set limits;

under the terms of mutual assistance in emergencies;

deliveries of electrical energy - the quantity of electrical energy transferred under the relevant contracts between business entities from electric utility system of one state to power supply system of other state during the settlement period

accident, emergency - the violation of the normal mode of all or considerable part of electric utility system connected with the inadmissible modes of its work or operating modes of the equipment, damage to machinery, temporary inadmissible quality degradation of electrical energy or break in electric utility service of consumers.

Article 2

Parallel work of electric utility systems of the Parties is the important factor of reliable work of electric utility systems of the Parties creating base of mutually beneficial cooperation of the Parties in the field of power industry.

Article 3

The basic principles of parallel work of electric utility systems of the State Parties of this Agreement are:

Organization-legal principles

determination of the authorized electrical power organizations of the Parties performing activities, including for technological and economic support of parallel work of electric utility systems of the State Parties of this Agreement with the notification of other Parties in accordance with the established procedure about such organizations;

conclusion authorized electrical power organizations of the Parties of agreements on ensuring parallel work of electric utility systems of the State Parties of this Agreement;

monitoring of accomplishment of terms of this agreement and other documents on ensuring parallel work of electric utility systems of the State Parties of this Agreement;

creation in need of joint bodies for coordination of parallel work of electric utility systems of the State Parties of this Agreement.

Technological principles

the coordinated regulation of the frequency (capacity) performed by combined action of systems of regulation of power supply systems of the states of participants of this Agreement;

the approved placement and mutual provision of reserves of capacity;

the coordinated operational antiemergency control;

the agreed principles of functioning of the complexes of antiemergency automatic equipment exerting impact on work of power supply systems of the states of participants of this Agreement;

the coordinated supervisory control of the modes of parallel work of electric utility systems, including distribution of obligations and responsibility between dispatching personnel of the electric utility systems interacting in the conditions of parallel work;

exchange of technological information in agreed volumes;

accomplishment of the approved requirements of reliability and safety of work;

responsibility of authorized organizations of the Parties for regulation of frequency, maintenance of the approved balances of overflows and sizes of reserves of capacity.

Economic principles

satisfaction of demand for electrical energy and capacity in each of electric utility systems of the State Parties of this Agreement at the expense of own power plants and/or deliveries of electrical energy from electric utility systems of other State Parties of this Agreement on contractual basis;

not causing damage by electric utility systems of the states of participants of this Agreement in the course of their activities to electric utility systems of other State Parties of this Agreement;

responsibility of each of electric utility systems of the State Parties of this agreement for electric utility service of the consumers and accomplishment of the undertaken obligations;

introduction of hourly commercial accounting of electrical energy on interstate power lines on the basis of the Parties of rules approved by authorized organizations;

use of the approved settlement mechanisms of separation and customs clearance of balance of overflows of electrical energy on the components caused by execution of electric power supply agreements, rendering emergency mutual assistance, settlement of variations from the plan (unplanned overflows) and other agreements;

ensuring free transit (transfer/movement) of electrical energy and capacity within the available technical capabilities through the territories of the State Parties of this Agreement;

rendering on contractual basis of services in placement in other electric utility systems of mutually approved sizes of reserves of capacity and payment of deliveries of electrical energy when using of the specified reserves;

responsibility of authorized organizations of the Parties performing activities for ensuring parallel work of electric utility systems of the State Parties of this Agreement for non-execution of the obligations, including for variations of the actual values of interstate balances of overflows of electrical energy from the approved dispatching schedules (within the agreements signed between them).

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