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. Last Updated: 07/27/2016

Power Generator to Keep Proceeds From Sale

Power generator OGK-3, which is selling stock this month, will keep all proceeds rather than share them with other affiliated utilities, after advisers Deutsche Bank and Goldman Sachs said that idea made "no sense."

OGK-3 will use the money raised to cover its 2007 investment program, and any excess will go toward future spending, said a statement by Unified Energy Systems, its parent company, e-mailed Friday after a board meeting.

UES, which is overseeing share sales by its generators, had considered redistributing proceeds to those units that lacked funds for planned investments. Its advisers, Merrill Lynch and Alfa Bank, also recommended scrapping that plan, said the statement from UES.

Enel, Italy's biggest utility, is considering a bid for some of the 18 billion shares OGK-3 is seeking to sell this month.

On Monday, Mosenergo, the Moscow utility that will soon be controlled by Gazprom, announced profits of 1.5 billion rubles ($60 million) in 2006 as it expanded power production.

Electricity generation advanced 4.6 percent in 2006 from the previous year, the company said. The utility company recorded a 289 million ruble loss the previous year.

Mosenergo posted a profit even as it experienced capacity strains on the power system from January to April and lower demand in December because of unusually warm weather, the utility said in a statement.

Mosenergo generated 64 billion kilowatt hours of electricity and 70.2 million gigacalories of heat last year, the company said in the statement. Mosenergo plans to add another 530 megawatts of capacity this year.