1. 0 Vladas Paškevičius Power System Director Lietuvos energija AB Vilnius, 5 th of October 2007 International Seminar “Prospects for the co-operation between Poland, Lithuania, Latvia and Estonia in the process of preparation to the connection of Baltic States’ power systems with the UCTE system” Meeting of BALTSO representatives with UCTE top management Brussels, 13th of September, 2007

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3. 2 11th of June, 2007 Communiqué

4. 3 Application of the BALTSO to UCTE on the future actions On the 6 th of July 2007 BALTSO applied to the UCTE on the future actions

5. 4 Meeting of BALTSO representatives with UCTE top management, Brussels, 13th of September, 2007 Agenda: Extension of the UCTE Synchronous Area for the Synchronization of Baltic Power Systems Participation: UCTE: G.Maas – Chairman of SC, M.Bial – Secretary General, J.Fijalkowski - TSO Manager Representatives of OU Pohivork, AS Augstsprieguma Tikls, Lietuvos energija AB

6. 5 Procedure of Extension of the UCTE Synchronous area Step 1 Application of Baltic TSO to “Supporting Party” (UCTE Member) Application of “Supporting Party” to SC of UCTE Decision of SC to continue the procedure

7. 6 Procedure of Extension of the UCTE Synchronous area Step 2 Contractual agreement to specify the rights and obligations between: 1.Two Members of UCTE (chosen by UCTE) 2.“Supporting Party” 3.Requesting Party – OU Pohivork, AS Augstsprieguma Tikls, Lietuvos energija AB.

8. 7 Procedure of Extension of the UCTE Synchronous area Step 3 Appointment of Project Leader by UCTE Establishment of the project group from contractual parties to work out technical conditions for the Extension, in accordance with the relevant UCTE rules and recommendations

9. 8 Next steps Baltic TSOs have to decide whether they apply for full integration as one block or on an individual basis Presentation of electrical solution envisaged in this context for Kaliningrad (approved by Russian Side) A formal application to UCTE should include: 1)A supporting letter of involved governments 2)Technical description of Baltic and Kaliningrad systems 3)The support of UCTE Member

10. 9 Next steps Time table Application of Baltic TSO to PSE-Operator on agreement to become the “Supporting Party” – 5 October 2007 Supporting letter of involved governments – 30 October 2007 Preparation of description of Baltic and Kaliningrad systems and application to PSE-Operator – 30 October 2007 Transfer of Baltic TSOs application to UCTE Secretariat by PSE-Operator with the supporting letter – 14 November 2007

11. 10 Present activities of cooperation between PSE-Operator and BALTSO 23 August 2007 – decision to establish the task force for preparation of Cooperation agreement between PSE-Operator and BALTSO and a study for the synchronous interconnection with UCTE (to be signed on the 5 th of October) 14 September 2007 – decision to perform a pre-feasibility study of steady-state estimation of synchronous interconnected Polish-Baltic systems (first results on technical feasibility and very rough estimation of investments by the end of December 2007) From the beginning of 2008 – preparation of dynamic model, investigation of dynamic behavior of the synchronous systems, revision of investments needed (hopefully in parallel and in cooperation with investigation of the UCTE project group)

12. 11 Thank you!