Reorganization
The reorganization of RAO UES started in 2006. The first stage of the reorganization was completed on September 3, 2007, during which subsidiary generating companies, WGC-5 and TGC-5, were individually spun-off from the parent RAO UES. During a second stage of reorganization, all remaining subsidiaries of RAO UES were spun-off (by July 1, 2008).
This reorganization was seen as a massive privatization of the power industry, with the goal of attaining about US$79 billion in investments. As a result, RAO UES ceased to exist after its merger into UES FGC, a Federal Grid Company. Altogether, six wholesale generation companies (WGC), 14 territorial generation companies (TGC), RusHydro, FGC UES (Federal Grid Company), SO-CDA (System Operator), IDC Holding, RAO ES of the East, and Inter RAO UES continue to operate as independent entities.
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