Prykarpatoblenergo’s 2008 investment program raised 5.6% by NERC

The National Electricity Regulatory Commission announced yesterday increased the low-voltage transmission tariff of Prykarpatoblenergo (PREN: BUY) by 8.54% in 4Q08. The change in tariffs allowed for the NERC to revise the company’s 2008 investment program upward by USD 0.9 mln to USD 16.6 mln. Prykarpatoblenergo applied to the NERC to raise its tariffs to raise money for repairing low-voltage power lines in Kosiv district, which was damaged by flooding in August 2008. Alexander Paraschiy: This is the second increase in Prykarpatoblenergo’s tariffs to increase expenditures on repairing flood damage. In late August, the NERC raised the company’s investment program by USD 3.0 mln via a tariff revision. The tariff growth will allow the company to compensate for most of its losses, and report 2008 net income in line with our forecast (about USD 3.4 mln).