Frequently Asked Questions

    I. Financial questions

    Taxes and similar charges

    Was there a reduction in the rate of Cofins in the 2nd quarter of 2005?

    No. But the company made an adjustment in the second quarter to the Cofins expenses posted in the first quarter – reducing the expense originally posted in the 1 st quarter by R$44,616.

    Hence, when calculating the effective rate of Cofins in 1Q 2005, the amount of this adjustment (R$44,616) should be deducted

    What is the amount of the license fee for the use or occupation of the zones of public domain along the highways ("TFDR") and when will it be booked?

    The Board of Directors of Companhia Energética de Minas Gerais - CEMIG, at a meeting held on October 27, 2005, authorized the payment to the State of Minas Gerais of the amount of approximately R$26 million referring to the license fee for the use or occupation of the zones of public domain along the highways ("TFDR").

    The above amount is being booked in the results of the 3rd quarter of 2005, under operating expenses. We would also inform that CEMIG is negotiating with the ANEEL (National Electric Power Agency) for the costs related to this amount to be passed through to its tariffs.

    What is the impact on Cemig of the Federal Supreme Court's decision on the basis for calculating the amount that is subject to the PIS/Pasep and Cofins taxes?

    Law 9718 of November 27, 1998 amended the federal legislation governing the PIS/Pasep and Cofins contributions, expanding the basis for the calculation, by defining as sales revenue the revenue from sales of merchandise and provision of services, and equating it with gross revenue, that is to say, the totality of revenues including financial revenues.

    This law came into effect on the date of its publication (November 28, 1998), but this was not in accordance with the Constitution, due to the fact that Constitutional Amendment No. 20 is dated December 15, 1998. Thus, at the moment when it was created it was not in accordance with the provisions of the Constitution that governed its creation and its content.

    With the advent of Law 10637 of December 30, 2002, which contains provisions governing the non-cumulative application of (PIS/Pasep), and Law 10833, of December 29, 2003, on the non-cumulative application of Cofins, the composition of the amounts to be used as the basis for calculation were reaffirmed, supported by the text of the Constitution then in force, and Law 9718/98 did not have Constitutional support during the period in which was in force.

    On the basis of updating of the credits for the Cofins and Pasep contributions on financial revenues up to October 31, 2005, less the effects, on these amounts, of corporate income tax and the Social Contribution on Net Profit, the net effect of this action is R$134,768,044.98, as follows:

    Tax Historic contribution Updated contribution Period
    Cofins R$111,826,345.49 R$178,463,629.04 Feb. 1999 to Jan. 2004
    PASEP R$14,955,490.38 R$25,730,378.50 Feb. 1999 to Jan. 2002
    Corporate income tax and Social Contribution - R$(69,425,962.56) -
    Impact - R$134,768,044.98 -

     In terms of the immediate future, however, the decision of November 9 benefits only those companies that have filed extraordinary appeals on which final judgment has been given, although those who have pending actions, and also taxpayers who still intend to bring cases in the future, are likely to be successful.

    Cemig filed a legal action on June 8, 2005, and we are awaiting the decision of the courts, to enable us to make the resulting offsets and post them in our accounting records.

    Tariff increases

    Are there any changes expected in the methodology used to calculate rises in electric power tariffs? What are the dates and percentages of the latest tariff rises?
    On what dates are further rises expected? What are CEMIG's estimates for such rises?

    Answer: The dates and percentages for the latest tariff adjustments are shown in the table below:

    Tariff Adjustments - CEMIG
    1995 / 2005
    Month / Year Average Rate Resolution / Directive Date Tariff Others Rates
    Apr/00 12.23% Resolution 87 06/04/2000 180.23    
    Apr/01 16.49% Resolution 126 05/04/2001 209.95    
    Dec/01 2.90% Resolution 628 21/12/2001 216.04 Residential. Rural and Public Lighting  
    Dec /01 7.90% Resolution 628 21/12/2001 216.04 Other Categories  
    Apr/02 10.51% Resolution 176 04/04/2002 238.70    
    Apr/03 31.53% Resolution 165 08/04/2003 311.05 Per Group:  
              A1 (230 kV) 34.52%
              A2 (88 to 138 kV) 34.88%
              A3 (69 kV) 34.24%
              A4 (92.3 to 25 kV) 30.22%
              Low Tension
    (below 2.3 kV)
    30.54%
    Apr/04 14.00% Resolution 83 Republished 07/04/2004 344.18 Per Group:  
              A1 (230 kV) 21.91%
              A2 (88 to 138 kV) 22.27%
              A3 (69 kV) 21.59%
              A4 (92.3 to 25 kV) 16.44%
              Low Tension
    (below 2.3 kV)
    11.84%
    Apr/05 23.88% Resolution 87 06/04/2005 406.36 Per Group:  
              A1 (230 kV) 17.58%
              A2 (88 to 138 kV) 29.12%
              A3 (69 kV) 29.87%
              A4 (92.3 to 25 kV) 21.57%
              Low Tension
    (below 2.3 kV)
    18.07%

     

    The novelty that exists in relation to tariff adjustments is Normative Resolution no. 166, dated October 10, 2005, which can be obtained in the Legislation area within ANEEL's website (www.aneel.gov.br).

    In relation to the time schedule for tariff adjustments at CEMIG Distribuição S.A., the date is always April 7 of each year; these adjustments will only be put into force on the following day.

    With regard to estimates for tariff adjustments, the Company does not publish any forecast.

    The presentation that deals with the 2006 tariff adjustment says that the amount of the CVA does not represent cash flow for the company. I would like to know why, since the CVA covers operational costs of the previous year – which are, thus, costs which have in fact already been paid.

    The CVA for the current year is only accounted as an expense at the moment when it becomes part of revenue. Until that moment, it is provisioned as a receivable, and does not go to the income statement.

    Within the annual adjustment of Cemig Distribution, in April 2009, I would like to know what was the average adjustment of the Distribution System Usage Tariff - TUSD.

    The average adjustment of TUSD in April 2009 was -3.81%.

    Payments to stockholders

    Are there any provisions in the bylaws on differentiated distribution of dividends between the holders of preferred and common shares?

    Cemig's dividend policy is established by Clauses 5, 6, 7, 28, 29, 30 and 31 of its bylaws.

    Clause 5 of the bylaws establishes that the preferred shares have right of preference in the event of reimbursement, and have the right to a minimum annual dividend equal to the greater of:

    1. 10% (ten percent) of their par value; or
    2. 3% (three percent) of the value of stockholders' equity corresponding to the shares.

    Clause 7 states that in the business years in which the company does not obtain sufficient profit to pay dividends to its stockholders, the State of Minas Gerais shall guarantee to those shares that were issued by the company up to 5 August 2004 and are now held by individual persons a minimum dividend of 6% (six percent) per year, in accordance with Clause 9 of State Law 828 of 14 December 1951, and State Law 15290 of 4 August 2004.

    Clause 29 requires that the dividends must be distributed in the following order:

    1. the annual minimum dividend guaranteed to the preferred shares;
    2. the dividend for the common shares, up to a percentage equal to that guaranteed to the preferred shares;

    and further states that in addition to these dividends the general meeting of stockholders may allocate additional dividends, provided that the preferred shares shall have equality of rights with the common shares in any such distribution.

    Clause 28 requires that 50% of the net profit of each business year shall be distributed as an obligatory dividend to the stockholders, subject to the other terms of the bylaws and the applicable legislation.

    Clause 30 requires that, without prejudice to the obligatory dividend, every two years, starting from the business year of 2005, or with a shorter periodicity if the company's availability of cash so permits, the company shall use the profit reserve provided for in Clause 28 for the distribution of extraordinary dividends, up to the limit of cash available, as determined by the Board of Directors, in obedience to the company's Strategic Guidelines Plan and the Dividend Policy.

    It should be noted that although the preferred shares have a minimum dividend established in the bylaws, the company has in practice given equality of conditions to the common shares in the distribution of dividends.

    What are the amounts of the dividends to be decided at the Ordinary and Extraordinary General Meetings of Stockholders to be held on April 26, 2007?

    The proposal by the Board of Directors to those meetings is for distribution, in the form of dividends, of R$1,381,781,000, based on the net profit for 2006 of R$1,718,841,000, as follows:

    1. R$884,781,000 as the obligatory dividend, made up of the following portions:

      1.1. Interest on Equity in the amount of R$169,067,000, corresponding to R$1.0430781547 per thousand shares. This was decided by the meeting of the Board of Directors held on April 27, 2006, and is payable to stockholders whose names were on the company’s Nominal Share Registry on May 11, 2006.

      1.2. Complementary dividends in the amount of R$715,714,000, corresponding to R$2.943786152 5000 shares

    2. R$497,000,000 as extraordinary dividends, corresponding to R$2.0441988247 per thousand shares.

    Items 1.2 and 2 above are payable to stockholders whose names are on the company’s Nominal Share Register on the day of the General Meeting, that is to say, April 26, 2007. We emphasize that the amounts per thousand shares given for the complimentary and extraordinary dividends were calculated taking into account the bonus of 50% in shares, of the same type as those held, on the date of the General Meetings of Stockholders referred to.

    The shares will trade ex-dividend and ex- the stock bonus on April 27, 2007.

     The proposal by the Board of Directors to the Ordinary and Extraordinary General Meetings of Stockholders to be held on April 26, 2007, proposes a payout of 80.39% for payment of dividends and an amount of R$10.60 per thousand shares, but this is incompatible with the amount in the Statement of Changes in Stockholders’ Equity. Could you please explain this?

    There is in fact no incongruity in the amounts contained in the Proposal by the Board of Directors and the Statement of Changes in Stockholders’ Equity. The reason is that the amounts contained in the Statement of Changes in Stockholders’ Equity allude to the calculation based on the composition of the company’s registered capital on December 31, 2006.

    In the Proposal by the Board of Directors, the amount of R$10.60 thousand shares refers to the total value of the profit per thousand shares.

    What are the sources of funds for the Luz para Todos (“Light for All ”) project, and how much will come from each?

    This table shows the sources of funding for the Luz para Todos project:

    (*) Preliminary figures. (**) Investment with own funds to be offset in future years from 5% of net profit, as allocated for social-benefit projects by the Ordinary and Extraordinary General Meetings of stockholders of 30 April 2002. Note: In the capex program for 2005, which totals R$ 1,289.7 million, the amount of R$ 127.7 million for the Luz para Todos project is included in the R$ 552.7 million allocated to Expansion of Distribution .
      R$ million Up to 2004(*) 2005 2006 Total %
    Total investment 85.0 779.5 776.8 1,641.3 100.0
    Funding sources          
    – RGR 26.6 172.9 211.9 411.4 25.1
    – CDE 31.2 203.3 249.5 484.0 29.5
    – Advances against net profit (Social Investment) (**) 209.3 209.3 12.7
    – Exemption from ICMS 8.3 76.7 75.8 160.8 9.8
    – Own funds 18.9 117.3 239.6 375.8 22.9

    The Luz para Todos ( “Light for Everyone” ) project aims to bring forward compliance with the electricity service universalization targets from 2010 to 2006, as proposed by the federal government, and is conditional upon use of subsidy from the Energy Development Account (CDE) and financing from the RGR (Global Reversion Reserve) fund in this period. 

    What amounts of the CVA are included in the Consolidated Income Statement at 31 December 2004?

    (*) Non-manageable costs which are part of the CVA and were transferred to the result due to their inclusion in the calculation of Cemig's tariff adjustment. (**) Changes in non-manageable costs of the CVA which are not part of Cemig's tariff and were thus excluded from the result.
      Operational expense prior to CVA adjustment CVA amounts transferred to result for the period ( * ) CVA amounts excluded from result for the period ( * * ) Actual expense recognized in results for the period ( * )
       R$ R$ R$  R$
    Personnel 805,718 805,718
    Personnel – managers and board members 3,279 3,279
    Employee profit shares 110,101 110,101
    Post-employment obligations 106,909 106,909
    Materials 82,961 82,961
    Outsourced services 333,508 333,508
    Energy purchased for resale 1,279,219 174,757 25,823 1,479,799
    Depreciation and amortization 583,652 583,652
    Royalties 81,837 38,967 (12,781) 108,023
    Operational provisions 158,866 158,866
    Fuel Consumption Account – CCC 406,645 (34,030) (80,468) 292,147
    Charges for use of the network 555,518 105,026 (74,656) 585,888
    Gas purchased for resale 259,795 259,795
    Energy Development Account – CDE 215,969 36,341 (14,447) 237,863
    RTE – Reversal of provision 104,271 104,271
    Other net expenses 205,905 205,905
    Total 5,294,153 321,061 (156,529) 5,458,685

    Post-employment obligations increased from approximately R$26 million in 04 to R$ 38 million in 1Q05. What is the recurring part?

    As mentioned on page 68 of our ITR for 2Q05, the change, on December 31, 2004, in the discount rate on future obligations, from 8% to 6%, resulted in an increase in the present value of the actuarial obligations, justifying the increase in the amount of post-employment obligation expenses. The recurring level should now remain close to the figures for the second quarter of 2005, though it should be noted that the figure does depend on the returns on assets and the actual inflation rate.

    What is the recurring level for outsourced services?

    The recurring level will be close to that of the second quarter of 2005. The figure for the first quarter was lower than normal because, due to the unbundling, and the changes made to the SAP system, there were operational difficulties in contracting and making payments in this period.

    What is the recurring level for operational provisions?

    1Q04 2Q04 3Q04 4Q04 1Q05 2Q05
    84.473 16.705 (3.712) 61.400 39.073 (23.818)

    In the second quarter there was a reversal of provisions for labor lawsuits, as can be seen above. It is difficult to predict a recurring level because the amount of the operational provisions varies greatly and is very unpredictable.

    When do the energy purchase and sale agreements currently in force expire? How are the prices of these contracts adjusted for inflation?

    The energy purchase contracts of CEMIG-D, their periods of duration and the inflation correction indices to be applied, are as follows:

    (a) Contracts result from “Existing Energy Auctions” – auctions for purchase of electricity from existing enterprises:

    Type Duration Inflation indexor
    CCEAR 2005 until December 2012 IPCA
    CCEAR 2006 until December 2013 IPCA
    CCEAR 2008 until December 2015 IPCA

    (b) Contracts resulting from the “New Energy Auction” (of energy to be produced by new generation enterprises):

    Type Duration Inflation indexor
    CCEAR 2008 varying from 15 to 30 years IPCA
    CCEAR 2009 varying from 15 to 30 years IPCA
    CCEAR 2010 varying from 15 to 30 years IPCA

    The periods are different for the different generation sources: 15 years for thermal generation and 30 years for hydroelectric generation. For the bilateral contracts:

    Contract Duration Inflation indexor Comments
    Ponte de Pedra* To 2025 IGP-M * Price (base: April 2001) falls from R$ 69.00/MWh to R$ 62.00/MWh from August 2008.
    Capim Branco I Jan. 31, 2016 IGP-M  
    Capim Branco II 20 years from first delivery (until early 2027) IGP-M  

    Other energy purchases:

    Contract Duration Inflation indexor Comments
    Itaipu No duration limit (purchase is obligatory)   Tariff is regulated in US$
    Proinfa There is no contract.   Cemig-D pays these amounts compulsorily and receives corresponding amounts of energy

    What was the average generation tariff in the first half of the year - itemizing, if possible, the average for Free Consumers?

    Cemig's average tariff for all generation in the first half of 2006 (public service + independent production) was R$67/MWh, and the same average for Free Consumer was R$71/MWh.

     Please give a reconciliation for the amount published for Ebitda using only the figures for the third quarter.

    Up to June the financial updating of the RTE provision was accounted in Operational costs and expenses; starting in August it began to be accounted in Financial expenses.

    To show the calculation of Ebitda for the third quarter of 2006, as a complement to the information in Explanatory Note 2, we advise you that the amounts accounted in the first and second quarters of 2006 relating to the Provision for Losses on Recovery of Amounts of the RTE, in the amount of R$47,149,000, were reclassified to Financial Expenses. Hence the Ebitda of the third quarter of 2006 in isolation, with adjustment relating to Ebitda for the period January through June 2006, can be calculated as shown in this table:

    EBITDA (calculation procedure not reviewed by the company’s external auditors)

    Ebitda - R$ ’000 30/09/2006 30/06/2006 adjusted IN THE 3RD QUARTER
    Net profit 1,113,267 665,077 448,190
    + Provision for current and deferred income tax and Social Contribution 456,121 255,611 200,510
    + Non-operational revenue (expenses) 13,005 19,971 (6,966)
    + Financial revenue (expenses) 208,082 170,620 37,462
    – Reversion of Interest on Equity (169,067) (169,067)
    + Amortization and depreciation 479,389 302,812 176,577
    + – Minority shares 1,437 (143) 1,580
    = Adjusted Ebitda 2,102,234 2,394,124 857,353
    + Financial variations on RTE provisions for the first half of the year     47,149
    = Ebitda without adjustment     904,502

    Does Cemig have amounts of energy arising from discontinuation of contracts, for the years 2007 and 2008, which will be subject to settlement on the CCEE?

    Cemig sold power supply averaging 355 MW in the “New Energy” auction, in a single contract for 30 years, with delivery starting in 2009. For the years 2007 and 2008, part of this energy was sold in bilateral contracts and part may be settled through the CCEE. The figures for Cemig’s average sale prices for generation presented in the forecasts for the company’s results published on November 9, 2006 take into account prices of bilateral contracts already signed, estimates of prices for new contracts, and contract renewals, and also the estimates of Differences Settlement Prices (PLDs) relating to the portions to be settled through the CCEE. For the purposes of long-term forecasts, we assume a technical reserve of 100 MW average, to cover hydroelectric risks.

    It is not yet clear, after today’s video webcast on the results for 2007, whether achievement of the internal rate of return of 14.48%, on the investment in employees’ profit shares, which led to extinction of the special bonus of 16.67%, depends on the Voluntary Retirement Program (“Programa de Prêmio por Desligamento – PPD”). Could you please clarify.

    The IRR of 14.48% does not depend on the Voluntary Dismissal Program. This return was calculated assuming Cemig’s historic level of employee turnover of 300 employees/year, who will be replaced without the cost of 16.67% on their base salary. The Voluntary Dismissal Program will only accelerate this rate of turnover in the next 3 years, helping to make the return referred to even higher.

    II.  Operational questions

    Where do I find the Sources and uses of electricity statement?

    Our statements of sources and uses of electricity can be found, as soon as they are published, under “Sources and uses of electricity”.

    Cemig has a stake in the Capim Branco I hydro plant. Does Cemig buy the rest of the energy? What item in the Statement of Sources and Uses of Electricity corresponds to the electricity of Capim Branco that represents Cemig’s stake?

    Cemig’s stake in Capim Branco is 21.0526%. And, no, the rest of the electricity generated by Capim Branco is used by the other members of the Consortium in their own industrial processes. Capim Branco started commercial operation on February 21, 2006 – and thus is not in the Statement of Sources and Uses of Electricity for 2005

    Is it possible to list what amounts of electricity in the Statement of Sources and Uses of Electricity for 2005 correspond to Cemig D and Cemig GT? What is the direct flow of electricity from Cemig GT to Cemig D?

    CEMIG D:

    • From Itaipu, under obligatory contract: 12,143,511 MWh
    • Initial contract with Cemig GT: 7,587,102 MWh – Direct flow
    • Initial Contract through the Grid (with Furnas): 709,560 MWh
    • Initial Contracts with the Isolated System (Furnas): 10,130 MWh
    • Bilateral Contract (Ponte de Pedra): 444,780 MWh
    • Bought in the Regulated Market (ACR): 4,644,324 MWh
    • Bought under co-generation: 228,099 MWh
    • Bought in the CCEE: 1,020,183 MWh
    • Received from Furnas but through our own Distribution Network: 24,326 MWh
    • Generators within our own Distribution Network: 21,195 GWh

    CEMIG GT:

    • Net generation at the “Center of Gravity”: 31,042,503 MWh
    • Bought under the MRE: 335,522 MWh
    • Bought in the CCEE: 110,247 MWh

    What precisely is meant by “self-production”?

    This refers to the situation when a company – usually an industrial company –produces electricity for its own consumption. Some large consumers, with authorizations from Aneel, build generation plants to supply their own consumption needs. This electricity can replace, or complement, the volume acquired from the electricity distributor – and any excess from time to time can be sold, under authorization from Aneel.

    “Electricity bought from affiliated companies”… – which are these companies?

    Sá Carvalho S.A., Usina Térmica Ipatinga S.A., Central Termelétrica de Cogeração S.A., Horizontes Energia S.A., Usina Hidrelétrica Pai Joaquim S.A. and Rosal Energia S.A.

    What does the “take” from self-production mean

    With the self-producers who built the Igarapava hydroelectric power plant, Cemig entered into a so-called operating agreement. Under this agreement Cemig would operate the plant, receive the electricity produced, and in exchange, would guarantee continuous provision of an amount of electricity, and/or level of power (jointly referred to as the “take”) to these self-producers at the point where the Igarapava plant is linked to Cemig’s Distribution System.

    What was the amount of energy sold by Cemig D on the first quarter 2006?

    Breakdown MWH 1Q06
    Residential 1.656.875
    Industrial 1.149.179
    Retailing, Services, Others 989.765
    Rural 404.227
    Public Power 138.851
    Public Illumination 261.216
    Public Service 248.113
    Total 4.848.224

    What was the amount of energy sold by Cemig GT on the first quarter 2006?

    Consumer Category GWh 1Q06
    Free Consumers 4.593
    Wholesale Supply 2.310
    – To Cemig Group 225
    – Under Bilateral Contracts 2.085
    Total 6.903

     What is the energy carried by Cemig D?

    (1) Refers to the quantity of electricity for calculation of the regulatory charges charged to free consumer clients ("Portion A") (2) Total electricity distributed (3) Sum of the demand on which the TUSD is invoiced, according to demand contracted ("Portion B")
    CEMIG D Market
    Quarter Captive Consumers (GWh) TUSD ENERGY1 T.E.D2 TUSD PICK3 (GW)
    1Q 08 5.179 4.082 9.261 21
    2Q 08 5.525 4.364 9.889 21
    3Q 08 5.793 4.597 10.390 21
    4Q 08 5.857 4.368 10.225 21
    1Q 09 5.448 3.269   8.717 21
    2Q 09 5.478 3.593   9.071 21
    3Q 09  5.666 3.915   9.581 22
    4Q 09 5.740 4.304 10.043 22
    1Q 10 5.613 4.385  9.998 23
    2Q 10 5.710 4.914  10.625 24
    3Q 10 5.841 5.047  10.888 25
    4Q 10 5.938 4.927  10.865 25
    1Q 11 6.034 4.797  10.831 25

    Production and purchase of electricity

    How much electricity has Cemig D bought for resale this year?

    Source GWh
    Up to March 2014 Up to March 2013  
    Itaipu 1.541 2,047
    Sold under Proinfa program 144 148
    Nuclear energy quotas (Angra I and II) 271 273
    Physical guarantee quota contracts 1,756 1,740
    ‘Bilateral contracts’ prior to Law 10.848/2004 438 420
    Auctions in Regulated Market 2,885 2,797
    Spot Market (CCEE) 1,264 274
    TOTAL SUPPLY BOUGHT 8,299 7,699

    How much capital expenditure is planned for the Capim Branco I, Capim Branco II, Aimorés and Irapé plants?

    Plant Planned capex (July 2005 R$ '000)
      2005 2006 2007
    Capim Branco I 9,943 4,545 28
    Capim Branco II 11,780 9,835 3,056
    Aimorés 84,746    
    Irapé 344,700 12,737 3,700

    When do the energy purchase and sale agreements currently in force expire? How are the prices of these contracts adjusted for inflation?

     The energy purchase contracts of CEMIG-D, their periods of duration and the inflation correction indices to be applied, are as follows:

    (a) Contracts result from “Existing Energy Auctions” – auctions for purchase of electricity from existing enterprises:

    • CCEARs 2005 Until December 2012 IPCA
    • CCEARs 2006 Until December 2013 IPCA
    • CCEARs 2008 Until December 2015 IPCA

    (b) Contracts resulting from the “New Energy Auction” (of energy to be produced by new generation enterprises):

    • CCEARs 2008 varying from 15 to 30 years IPCA
    • CCEARs 2009 varying from 15 to 30 years IPCA
    • CCEARs 2010 varying from 15 to 30 years IPCA

    The periods are different for the different generation sources: 15 years for thermal generation and 30 years for hydroelectric generation. For the bilateral contracts:

    • Ponte de Pedra* to 2025 IGP-M * Price (base: April 2001) falls from R$69.00/MWh to R$62.00/MWh from August 2008.
    • Capim Branco I Jan.31,2016 IGP-M
    • Capim Branco II 20 years from first delivery (until early 2027) IGP-M

    Other energy purchases:

    • Itaipu No duration limit (purchase is obligatory) Tariff is regulated in US$
    • Proinfa There is no contract. Cemig-D pays these amounts compulsorily and receives corresponding amounts of energy

    Can you please state the assured energy and date of expiration of the Company's concession, for each of Cemig's power plants?

    **In accordance with Article 12 of CVM Instruction 358, of January 3, 2002, the concession contracts of the Jaguara and São Simão hydroelectric plants have clauses of guarantee of the right to renewal of the concession, in the terms of Law 9074 of July 7, 1995, as amended by Laws 9648/98 and 10848/04; these two concessions will expire for the first time in 2013 and 2015, respectively. * Plants of which the concessions have already been renewed by the Mining and Energy Ministry, under Law 9074 of July 7, 1995: Emborcação and Nova Ponte: Assured average 773 MW; installed capacity 1,702 MW; concessions renewed up to 2025; Camargos, Itutinga, Salto Grande and Três Marias: Assured average 363 MW; installed capacity 596 MW; concessions renewed until 2015; Volta Grande: Assured average 773 MW; installed capacity 380 MW; concessions renewed up to 2017; 13 Small Hydroelectric Plants: Total assured average 44.242 MW; installed capacity 87.9 MW; concessions renewed up to 2015.
    Plant Installed
    capacity
    (MW)
    Assured
    energy (1)
    (average MW)
    Start of operation Installed
    capacity as
    % of total
    Expiry of
    concession or
    authorization
    Cemig
    stake
    Principal hydroelectric plants
    São Simão ** 1,710 1,281  1978  24.80 January 2015 100.0%
    Emborcação * 1,192 497 1982 17.29 July 2025 100.0%
    Nova Ponte * 510 276 1994 7.40 July 2025 100.0%
    Jaguara ** 424 336 1971 6.15 August 2013 100.0%
    Miranda 408 202 1998 5.92 December 2016 100.0%
    Três Marias * 396 239 1962 5.74 July 2015 100.0%
    Volta Grande * 380 229 1974 5.51 February 2017 100.0%
    Irapé 360 206 2006 5.22 February 2035 100.0%
    Aimorés 162 84 2005 2.35 December 2035 49.0%
    Salto Grande * 102 75 1956 1.48 July 2015 100.0%
    Funil 88 44 2002 1.28 December 2035 49.0%
    Queimado 87 48 2004 1.26 January 2033 82.5%
    Sá Carvalho 78 58 2000 1.13 December 2024 100.0%
    Rosal Energia 55 30 2004 0.80 May 2032 100.0%
    Itutinga * 52 28 1955 0.75 July 2015 100.0%
    Baguari 48 27 2009 0.69 August 2041 34.0%
    Amador Aguiar I 51 33 2006 0.73 August 2036 21.1%
    Amador Aguiar II 44 28 2007 0.64 August 2036 21.1%
    Camargos * 46 21 1960 0.67 July 2015 100.0%
    Porto Estrela 37 19 2001 0,54 July 2032 33.3%
    Igarapava 30 24 1999 0.44 December 2028 14.5%
    Small hydro plants 183 96 2.66
    Plants operated by Light
    Fonte Nova 34 27 0.49 25.5%
    Ilha dos Pombos 48 29 0.69 25.5%
    Nilo Peçanha 97 86 1.41 25.5%
    Pereira Passos 26 13 0.37 25.5%
    Santa Branca 14 8 0.21 25.5%
    Thermoelectric plants
    Igarapé 131 71 1978 1.90 August 2024 100.0%
    Ipatinga 40 40 2000  0.58 December 2014 100.0%
    Barreiro 13 11 2004 0.19 April 2023 100.0%
    Wind plants
    Morro do Camelinho 1 0 1994 0.01 Not defined 100.0%
    Praias do Parajuru 14 6 2009 0.20 September 2032 49.0%
    Praia de Morgado 14 5 2010 0.20 September 2032 49.0%
    Volta do Rio 21 5 2010 0.30 September 2032 49.0%
    TOTAL 6,895 4,182 100

     What is the evolution of the Cemig's  staff  since 2008?

    Year Month Cemig H Cemig GT Cemig D Total
    2008 MARCH 222 2,265 8,311  10,798
    JUNE 215 2,193 8,050  10,458
    SEPTEMBER 215 2,186 8,041  10,442
    DECEMBER 225 2,166 8,031  10,422
    2009 MARCH 230 2,136 7,844  10,210
    JUNE 231 2,117 7,796  10,144
    SEPTEMBER 230 2,056 7,551  9,837
    DECEMBER 244 2,041 7,461 9,746
    2010
     
    MARCH 252 2,136 7,844  10,210
    JUNE 231 2,117 7,796  10,144
    SEPTEMBER 242 1,860 6,847  8,949
    DECEMBER 229 1,823 6,807  8,859
    2011 MARCH 234 1,805 6,743  8,782
    JUNE 236 1,805 6,702  8,743
    SEPTEMBER 236 1,803 6,691 8,730
    DECEMBER 233 1,798 6,675 8,706
    2012 MARCH 231 1,786 6,601 8,618
    JUNE 229 1,759 6,480 8,468
    SEPTEMBER 227 1,737 6,437 8,401
    DECEMBER 229 1,724 6,415 8,368
    2013 MARCH 221 1,712 6,398 8,331
    JUNE 204 1,561 5,974 7,739

    Regarding the Material Announcement about the acquisition of MDU shares in the companies ENTE, ERTE and ECTE, I would like to know what is the amount that Cemig expects to pay for this acquisition.

     The total amount is roughly R$ 100 million (one hundred million reais), in prices as of September, 30th 2009. However, the final amount will only be determined on the closing date, after the other partners exercise their rights of first refusal. In due course, Cemig will make public the final amount of this acquisition.

    I request an explanation on the percentage of the capital of Light S.A. that Cemig will be acquiring for the price of US$340,455,675.00, as mentioned in the Material Announcement of March 24, 2010, if the option referred to is exercised.

     If the sale option is exercised, Cemig will acquire 100% of the share units of LUCE INVESTMENT FUND, which holds 75% (seventy five per cent) of the shares of LUCE BRASIL FUNDO DE INVESTIMENTO EM PARTICIPAÇÕES. The result would be that Cemig would acquire 19,932,112 (nineteen million nine hundred thirty two thousand one hundred twelve) common shares in Light S.A., representing 9.75% (nine point seven five per cent) of its total and voting capital for the price of US$340,455,675.00 (three hundred forty million four hundred fifty five thousand six hundred seventy five United States dollars), from which would be deducted any dividends and Interest on Equity paid or declared by Light S.A. in the period starting on December 1, 2009 up to and including the date of the exercise of the option, if any.

    What were Cemig's generation portfolios in MW on December 31, 2015 , including the projects in development?

    CEMIG – Generation portfolio, in MW*
    Stage Hydro Plants Small Hydro Plants Wind Power Solar Thermal Plants Total
    In operation 7,195 257 158 31 144 7,785
    Under construction/contracted 1,699 29 658 45 2,431
    In developing 10,802 392 42 1,000 12,236
    Total 19,696 286 1,208 118 1,144 22,452
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