The company informed that its appeals against the energy market regulator URE's decisions on the annual correction of 2011 stranded costs for power plants in Turow and Rzeszow was approved. This means a reduction of the sum of costs to PLN 86.14 m from PLN 529.6 m previously. The costs, related to termination of long-term contracts, were reduced from PLN 425.56 m to PLN 84.95 m for the Turow power plant and from PLN 104.03 m to PLN 1.19 m for the Rzeszow heat and power plant. At the same time, PGE's appeal for the correction of annual costs of natural gas in 2011 for Rzeszow heat and power plant was sent to the court of competition and consumer protection SOKiK. The sum of claims amounts to around PLN 6 m. According to the August 2 decision, PGE was supposed to return PLN 537 m in stranded costs, including some PLN 84 m in the difference between the downpayments and the actual results achieved by the PGE units in 2011, about PLN 446 m due to a different interpretation of legal regulations by URE and some PLN 7 m in a correction of costs related to natural gas use and gas not accepted by PGE. Our view: The news is positive for the company. We believe that the recent verdict by URE is likely to lower cash outflow from PGE down from PLN 537m to PLN 84m in 2012 related to stranded costs settlement. For the moment we expect the verdict not to bring any impact on the P&L.