REGISTRATION WITH CVM SHOULD NOT BE CONSTRUED AS AN EVALUATION OF THE COMPANY. COMPANY MANAGEMENT IS RESPONSIBLE FOR THE INFORMATION PROVIDED.

Transcription

1 (A free translation of the original in Portuguese) Brazilian Corporation Law REGISTRATION WITH CVM SHOULD NOT BE CONSTRUED AS AN EVALUATION OF THE COMPANY. COMPANY MANAGEMENT IS RESPONSIBLE FOR THE INFORMATION PROVIDED IDENTIFICATION 1 - CVM CODE 2 - COMPANY NAME 3 - CNPJ (Corporate Taxpayer s ID) CESP CIA ENERGETICA SÃO PAULO / NIRE (Corporate Registry ID) HEADQUARTERS 1 - ADDRESS AVENIDA NOSSA SENHORA DO SABARÁ, DISTRICT PEDREIRA 3 - ZIP CODE CITY SÃO PAULO 5 - STATE SP 6 - AREA CODE TELEPHONE TELEPHONE TELEPHONE TELEX 11 - AREA CODE FAX FAX FAX presiden@cesp.com.br INVESTOR RELATIONS OFFICER (Company Mailing Address) 1- NAME JORGE LUIZ AVILA DA SILVA 2 - ADDRESS AVENIDA NOSSA SENHORA DO SABARÁ, DISTRICT PEDREIRA 4 - ZIP CODE CITY SÃO PAULO 6 - STATE SP 7 - AREA CODE TELEPHONE TELEPHONE TELEPHONE TELEX 12 - AREA CODE finance@cesp.com.br 13 - FAX FAX FAX ITR REFERENCE AND AUDITOR INFORMATION CURRENT YEAR CURRENT QUARTER PREVIOUS QUARTER 1 - BEGINNING 2 - END 3 - QUARTER 4 - BEGINNING 5 - END 6 - QUARTER 7 - BEGINNING 8 - END 1/1/ /31/ /1/2010 3/31/ /1/ /31/ INDEPENDENT AUDITOR DELOITTE TOUCHE TOMATSU AUDITORES INDEPENDENTES 10 - CVM CODE TECHNICIAN IN CHARGE IARA PASIAN 12 TECHNICIAN S CPF (Individual Taxpayer s Register)

2 (A free translation of the original in Portuguese) Brazilian Corporation Law IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / CAPITAL STOCK Number of Shares 1 CURRENT QUARTER 2 PREVIOUS QUARTER 3 SAME QUARTER, PREVIOUS YEAR (in thousands) 3/31/ /13/2009 3/31/2009 Paid-up Capital 1 - Common 109, , , Preferred 218, , , Total 327, , ,503 Treasury Stock 4 - Common Preferred Total COMPANY PROFILE 1 - TYPE OF COMPANY Commercial, Industrial and Other Types of Company 2 - STATUS Operational 3 - NATURE OF OWNERSHIP State-owned company 4 - ACTIVITY CODE Electricity 5 - MAIN ACTIVITY ELECTRICITY GENERATION 6 - CONSOLIDATION TYPE Not presented 7 - TYPE OF REPORT OF INDEPENDENT AUDITORS Unqualified Opinion COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS 1 - ITEM 2 - CNPJ (Corporate Taxpayer s ID) 3 - COMPANY NAME CASH DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER 1 - ITEM 2 - EVENT 3 - APPROVAL 4 - TYPE 5 - DATE OF PAYMENT 6 - TYPE OF SHARE 7 - AMOUNT PER SHARE 01 AGO* 4/30/2010 Dividends Common AGO 4/30/2010 Dividends Class B Preferred RCA* 5/11/2010 Interest on Own Capital Class A Preferred RCA 5/11/2010 Interest on Own Capital Common RCA 5/11/2010 Interest on Own Capital Class B Preferred * AGO Annual General Meeting * RCA Board of Directors Meeting 2

3 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR 1 - ITEM 2 - DATE OF CHANGE 3 - CAPITAL STOCK INVESTOR RELATIONS OFFICER (In R$ thousand) 4 - AMOUNT OF CHANGE (In R$ thousand) 5 - NATURE OF CHANGE 7 - NUMBER OF SHARES ISSUED 8 - SHARE PRICE WHEN ISSUED (thousand) (in R$) 1 - DATE 5/14/ SIGNATURE 3

4 (A free translation of the original in Portuguese) IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / BALANCE SHEET - ASSETS (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 3/31/ /31/ Total Assets 16,155,324 16,315, Current Assets 839, , Cash and Cash Equivalents 203, , Available Cash 8,613 4, Financial Investments 195, , Credits 353, , Clients 324, , Consumers 73,478 73, Distributors 250, , Sundry Credits 29,488 34, Accounts Receivable Free Energy/RTE Accounts Receivable - CCEE 33,726 16, Allowance for Doubtful Accounts (14,322) (14,322) Accounts Receivable (EMURB/DAEE) 9,721 31, Inventories 46,993 48, Other 235, , Recoverable Taxes and Contributions 44,859 45, Pledges and Restricted Deposits 120, , Expenses Paid in Advance - Insurance Claims 3, Other 66,192 70, Non-Current Assets 15,315,627 15,463, Long-term Assets 1,328,214 1,340, Sundry Credits Credits with Related Parties Direct and Indirect Associated Companies Subsidiaries Other Related Parties Other 1,328,214 1,340, Deferred Income Tax and Social Contribution 1,152,064 1,167, Pledges and Restricted Deposits 86,005 83, Other 90,145 90, Permanent Assets 13,987,413 14,122, Investments 8,172 8, In Direct and Indirect Associated Companies In Direct and Indirect Associated Companies - Goodwill In Subsidiaries In Subsidiaries Goodwill Other Investments 8,172 8, Property, Plant and Equipment 13,979,241 14,114, Intangible Assets Deferred Charges 0 0 4

5 (A free translation of the original in Portuguese) IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / BALANCE SHEET - LIABILITIES (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 3/31/ /31/ Total Liabilities 16,155,324 16,315, Current Liabilities 1,472,724 1,610, Loans and Financing 254, , Debentures Suppliers 41,268 39, Taxes, Fees and Contributions 86,767 98, COFINS 18,834 16, PIS 4,172 3, ICMS 2,658 2, Income Tax 10,441 17, Social Contribution 4,024 9, Withheld Income Tax - Interest on Own Capital 3, Income Tax on Remittance Abroad 3,464 8, Social Charges on Payroll 3,686 3, Taxes and Social Contributions - REFIS 35,094 35, Other 1,135 1, Dividends Payable 34,618 34, Provisions 185, , Estimated Liabilities and Payroll 35,882 36, Provision for Contingencies 149, , Debts with Related Parties 96,840 92, Accounts Payable Eletrobrás/Furnas 55,309 51, Employees Pension Entity 41,531 41, Other 773, , Receivables Securitization Fund 526, , Regulatory Fees 43,439 41, Electric Network Usage Charge 54,290 54, Interest on Own Capital 21,922 32, Other Liabilities 127, , Non-Current Liabilities 6,107,097 6,182, Long-Term Liabilities 6,107,097 6,182, Loans and Financing 2,764,644 2,738, Foreign Currency 1,721,585 1,699, Domestic Currency 1,043,059 1,038, Debentures Provisions 1,272,904 1,304, Provisions for Contingencies 1,272,904 1,304, Debts with Related Parties 192, , Accounts Payable Eletrobrás/Furnas 124, , Employees Pension Entity 68,360 71, Advance for Future Capital Increase 0 0 5

6 (A free translation of the original in Portuguese) IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / BALANCE SHEET - LIABILITIES (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 3/31/ /31/ Other 1,876,980 1,938, Receivables Securitization Fund 1,156,458 1,169, Deferred Income Tax and Social Contribution 435, , Taxes and Social Contributions - REFIS 137, , Electric Network Usage Charges 11,334 17, Other 136, , Deferred Income Shareholders Equity 8,575,503 8,522, Paid-in Capital Stock 5,975,433 5,975, Capital Reserves 1,929,098 1,929, Remuneration -Construction in Progress Own Capital 1,929,098 1,929, Revaluation Reserves Own Assets Subsidiaries/Direct and Indirect Associated Companies Profit Reserves 618, , Legal 38,136 38, Statutory For Contingencies Unrealized Profit 579, , Profit Retention Special Reserve for Undistributed Dividends Other Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Retained Earnings/Accumulated Losses 52, Advance for Future Capital Increase 0 0 6

7 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / INCOME STATEMENT (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 1/1/2010 to 3/31/ /1/2010 to 3/31/ /1/2009 to 3/31/ /1/2009 to 3/31/ Gross Revenue from Sales and/or Services 793, , , , Gross Revenue Deductions (98,138) (98,138) (133,557) (133,557) 3.03 Net Revenue from Sales and/or Services 695, , , , Cost of Goods and/or Services Sold (360,263) (360,263) (319,523) (319,523) Personnel (46,240) (46,240) (41,489) (41,489) Employees Pension Entity Plan Agreement (1,893) (1,893) (1,610) (1,610) Supplies (3,014) (3,014) (2,779) (2,779) Third-Party Services (20,685) (20,685) (15,194) (15,194) Financ. Purchase Use of Water Resources (47,142) (47,142) (42,242) (42,242) Spot Market Energy (22,339) (22,339) (3,381) (3,381) Charges on Usage of Transmission/Service System (82,353) (82,353) (80,758) (80,758) Electricity Sector Tariffs (4,025) (4,025) (3,722) (3,722) COFINS/PIS Credits on Network Usage Charges 9,229 9,229 7,201 7, Depreciation (120,110) (120,110) (120,007) (120,007) Operating Provisions (15,632) (15,632) (9,757) (9,757) Other Expenses (6,059) (6,059) (5,785) (5,785) 3.05 Gross Income 335, , , , Operating Revenues/Expenses (253,398) (253,398) (190,604) (190,604) Selling General and Administrative Financial (208,461) (208,461) (153,904) (153,904) Financial Revenues 15,846 15,846 30,281 30, Financial Expenses (224,307) (224,307) (184,185) (184,185) Debt Charges/Other (104,272) (104,272) (108,153) (108,153) Interest on Own Capital (25,000) (25,000) (30,000) (30,000) Monetary Variations, Net (50,608) (50,608) (74,342) (74,342) Exchange Variations, Net (44,427) (44,427) 28,310 28,310 7

8 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / INCOME STATEMENT (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 1/1/2010 to 3/31/ /1/2010 to 3/31/ /1/2009 to 3/31/ /1/2009 to 3/31/ Other Operating Revenues Other Operating Expenses (44,937) (44,937) (36,700) (36,700) Employees Pension Entity CVM Resolution 371/00 (11,325) (11,325) (6,778) (6,778) Other (expenses) revenue, net (33,612) (33,612) (29,922) (29,922) Equity in the Earnings of Subsidiary and Associated Companies Operating Income 82,064 82, , , Non-Operating Income Revenues Expenses Income before Taxes/Holdings 82,064 82, , , Provision for Income Tax and Social Contribution (34,857) (34,857) (30,357) (30,357) Income Tax (25,052) (25,052) (21,966) (21,966) Social Contribution (9,805) (9,805) (8,391) (8,391) 3.11 Deferred Income Tax 5,670 5,670 (19,716) (19,716) Deferred Income Tax 4,416 4,416 (14,639) (14,639) Deferred Social Contribution 1,254 1,254 (5,077) (5,077) 3.12 Statutory Holdings/Contributions Holdings Contributions Reversal of Interest on Own Capital 25,000 25,000 30,000 30, Income/Loss for the Period 77,877 77, , ,997 NUMBER OF SHARES EX-TREASURY (in thousands) 327, , , ,503 EARNINGS PER SHARE (Reais) LOSS PER SHARE (Reais) 8

9 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CASH FLOWS INDIRECT METHOD (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 1/1/2010 to 3/31/ /1/2010 to 3/31/ /1/2009 to 3/31/ /1/2009 to 3/31/ Net Cash from Operating Activities 354, , , , Cash Generated in Operations 391, , , , Net Income for the Period 77,877 77, , , Depreciation 121, , , , Interest, Monetary and Exchange Variations 174, , , , Write-Off of Investments due to Sales Write-Off of Fixed Assets due to Sales Deferred Income Tax and Social Contribution (Liabilities) (20,611) (20,611) 7,103 7, Deferred Income Tax and Social Contribution (Assets) 14,941 14,941 12,613 12, Provision for Reversals of Expropriations Spun-Off Companies 24,248 24,248 15,616 15, Provision for Contingency COFINS (Restatement) 0 0 4,814 4, Other Variation in Assets and Liabilities (37,229) (37,229) (72,233) (72,233) Accounts Receivable from Consumers and Distributors (18,334) (18,334) (21,912) (21,912) Amounts Receivable Free Energy/RTE (16,788) (16,788) (16,808) (16,808) Amounts Receivable 21,486 21,486 5,011 5, Recoverable Taxes and Social Contributions ,979 1, Inventories 1,174 1,174 (2,914) (2,914) Prepaid Expenses (3,461) (3,461) 20,457 20, Pledges and Restricted Deposits (2,019) (2,019) (5,055) (5,055) Other Credits 4,861 4,861 (10,246) (10,246) Suppliers (5,800) (5,800) (4,914) (4,914) Electricity Suppliers 1,515 1,515 (2,594) (2,594) Employee Payroll (912) (912) (1,236) (1,236) Taxes and Social Contributions (11,874) (11,874) (5,101) (5,101) Payments to Employee Pension Entities (8,297) (8,297) (6,294) (6,294) Regulatory Fees 1,458 1,458 (11,836) (11,836) 9

10 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CASH FLOW INDIRECT METHOD (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 1/1/2010 to 3/31/ /1/2010 to 3/31/ /1/2009 to 3/31/ /1/2009 to 3/31/ Payment of Contingencies (13,018) (13,018) (2,366) (2,366) Provision for Contingencies 8,554 8,554 (363) (363) Estimated Liabilities - Payroll (1,284) (1,284) Other 2,463 2,463 (6,757) (6,757) Other Net Cash from Investment Activities (35,414) (35,414) (26,141) (26,141) Property, Plant and Equipment (35,414) (35,414) (26,141) (26,141) 4.03 Net Cash from Financing Activities (344,863) (344,863) (318,259) (318,259) Payment of Loans and Financing (296,782) (296,782) (308,998) (308,998) Payment of Principal - REFIS (12,501) (12,501) (9,261) (9,261) Dividends and Interest on Own Capital (35,580) (35,580) Exchange Variation on Cash and Cash Equivalents Increase (Decrease) in Cash and Cash Equivalents (25,621) (25,621) (5,475) (5,475) Opening Balance of Cash and Cash Equivalents 229, , , , Closing Balance of Cash and Cash Equivalents 203, , , ,331 10

11 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM 1/1/2010 TO 3/31/2010 (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 - CAPITAL STOCK 4 CAPITAL RESERVES 5 REVALUATION RESERVES 6 PROFIT RESERVES 7 - RETAINED EARNINGS/ ACCUMULATED LOSSES 8 ASSETS VALUATION ADJUSTMENTS 9 - TOTAL SHAREHOLDER S EQUITY 5.01 Opening Balance 5,975,433 1,929, , ,522, Adjustments of Previous Years Adjusted Balance 5,975,433 1,929, , ,522, Net Income/Loss for the Period , , Allocations (25,000) 0 (25,000) Dividends Interest on Own Capital (25,000) 0 (25,000) Other Allocations Realization of Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Increase/Reduction in Capital Stock Recording/Realization of Capital Reserves Treasury Shares Other Capital Transactions Other Closing Balance 5,975,433 1,929, ,095 52, ,575,503 11

12 (A free translation of the original in Portuguese) CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION QUARTERLY INFORMATION ITR IDENTIFICATION 1 - CVM CODE COMPANY NAME CESP - CIA ENERGETICA SÃO PAULO 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM 1/1/2010 TO 3/31/2010 (in R$ thousand) 1 - CODE 2 - DESCRIPTION 3 - CAPITAL STOCK 4 CAPITAL RESERVES 5 REVALUATION RESERVES 6 PROFIT RESERVES 7 - RETAINED EARNINGS/ ACCUMULATED LOSSES 8 ASSETS VALUATION ADJUSTMENTS 9 - TOTAL SHAREHOLDER S EQUITY 5.01 Opening Balance 5,975,433 1,929, , ,522, Adjustments of Previous Years Adjusted Balance 5,975,433 1,929, , ,522, Net Income/Loss for the Period , , Allocations (25,000) 0 (25,000) Dividends Interest on Own Capital (25,000) 0 (25,000) Other Allocations Realization of Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Increase/Reduction in Capital Stock Recording/Realization of Capital Reserves Treasury Shares Other Capital Transactions Other Closing Balance 5,975,433 1,929, ,095 52, ,575,503 12

13 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS OPERATIONS AND ACCOUNTING PRACTICES (Data related to power and electricity was unrevised by the independent auditors) 1.1. Operations CESP - Companhia Energética de São Paulo ( CESP or the Company ) is a publicly-held mixed capital corporation, controlled by the State of São Paulo Government and headquartered in the City of São Paulo. The Company s main activities are the planning, construction and operation of electricity generation and trading systems. It maintains other supplementary operating activities, such as forestation, reforestation and fish farming as a way of protecting the environmental areas modified by the construction of its reservoirs and facilities. The Company shares are mainly traded at the São Paulo Stock Exchange - Bovespa and since July 28, 2006, they started to be traded at Level 1 of Special Corporate Governance Practices of Bovespa. As a consequence, the Company s Management has been continuously improving the disclosure of information to the market. CESP has installed generation facilities of 7,456 MW (Note 12.2), fully hydraulic, corresponding to 53% of the State of São Paulo installed hydraulic capacity, consisting of the Ilha Solteira, Três Irmãos, Jupiá, Engenheiro Sérgio Motta (Porto Primavera), Jaguari and Paraibuna power plants. As an electricity public utility, CESP s activities are regulated and inspected by the Brazilian Electricity Regulatory Agency (ANEEL), connected to the Ministry of Mines and Power, and operates its power plants on an integrated basis with the National Electric System Operator (ONS), being authorized to trade an average of 3,916 MW during the year, equivalent to approximately 34,000 GWh, which is nearly 8.4% of Brazil s assured hydraulic power. Production (MWh) 1 st Quarter Plants Ilha Solteira 4,655,590 4,307,694 Três Irmãos 1,172, ,979 Jupiá 2,288,820 2,328,732 Porto Primavera 2,464,573 2,603,426 Paraibuna 176,145 81,486 Jaguari 38,555 38,878 Total 10,796,152 10,040,195 In the quarter ended, 71% (62% on March 31, 2009) of the Company s operating revenues was related to the sale of electricity to Distributors (power purchase agreements, trading agents and customers from power auctions) and 24% (30% on March 31, 2009) from electricity supply (free consumers), as well as from the spot market power traded in the Electric Power Trade Chamber (CCEE) (Note 26.3). 13

14 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS 1.2. Power Trading Power Auctions CESP has taken part in auctions for the electricity sales to distribution concessionaries operating in the Regulated Contracting Environment ( ACR ), four of which were auctions of power purchase from existing generation projects and two from new projects. CESP sold at auctions 2,288 average MW of existing power and 230 average MW of new power, broken down into groups of agreements, as follows: EXISTING Energy sold CESP Weighted average Reference UNDERTAKINGS Supply period by CESP price price of auction date ENERGY AUCTIONS (in MWm) (R$) participants (*) Product to Jan Product to , Jan Product to Jan Product to May Product to Nov ,288.0 EXISTING Energy sold CESP Weighted average Reference UNDERTAKINGS Supply period by CESP price price of auction date ENERGY AUCTIONS (in MWm) (R$) participants (*) Product 2009 Hydro 2009 to Jul Product 2010 Hydro 2010 to Jan The prices obtained in auctions are being adjusted based on the IPCA (extended consumer price index) on the date of tariff adjustment of the distribution companies with ANEEL (Note 26.2). (*) Information unrevised by the independent auditors Presentation of the Quarterly Information and Summary of the Main Accounting Practices The information herein must be analyzed jointly with the Company s financial statements for fiscal year ended December 31, They are presented in accordance with the accounting standards adopted in Brazil effective up to December 31, 2009, and in compliance with the provisions of the Brazilian Corporation Law and the Brazilian Securities and Exchange Commission (CVM), and include the changes introduced by Laws 11,638/07 and 11,941/ New Accounting Pronouncements Issued in 2009 and effective as of 2010 The enactment of Law 11,638/07 updated the in order to enable the process of convergence of BR GAAP with the international financial reporting standards (IFRS). As a result, the CPC (Accounting Pronouncements Committee) has been issuing new accounting rules and technical pronouncements pursuant to the international accounting standards. 14

15 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS Until the preparation of this quarterly information, new technical pronouncements and technical interpretations had been issued by CPC and approved by CVM Resolutions, becoming effective as of January 1, The CPCs and ICPCs applicable to the Company, considering its operations, are the following: CPC Title 20 Borrowing Costs 21 Interim Statements 23 Accounting Policies, Changes in Estimates e Correction of Errors 24 Subsequent Event 25 Provisions, Contingent Liabilities and Contingent Assets 26 Presentation of the Financial Statements 27 Fixed Assets 30 Revenues 32 Taxes on Income 33 Employees Benefits 37 First-Time Adoption of International Financial Reporting Standards 38 Financial Instruments: Recognition and Measurement 39 Financial Instruments: Presentation 40 Financial Instruments: Disclosures 43 First-Time Adoption of Technical Pronouncements CPC 15 through CPC 40 ICPC Title 01 Concession Agreements 03 Supplementary Aspects of Leasing Operations 08 Dividend Payment Proposal Accounting Interpretation on the First-Time Adoption of Technical Pronouncements CPC 27, 28, 37 and on Fixed Assets and Properties for Investment The Company s Management continues to analyze all impacts of changes introduced by these pronouncements, which was not possible to be concluded until the date of closure of the Quarterly Information (ITR), i.e.. In addition, CVM Resolution 603 authorized publicly-held companies to present the Quarterly Information (ITR) in accordance with the Accounting Standards applicable up to December 31, 2009, and extended the adoption of the CPC s Pronouncements, Interpretations and Dispositions approved by the CVM to December

16 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS 2. CASH AND CASH EQUIVALENTS Type of investment Cash Demand deposits... 8,613 4,409 Cash equivalents Banco Nossa Caixa S.A. - SIAFEM... Fund 179, ,717 Banco Nossa Caixa S.A.... CDB / CDI 10, Banco Bradesco S.A.... CDB / CDI 1, Other financial institutions... CDB / CDI 4, , , , ,457 Short-term financial investments are readily convertible into a known cash amount and are subject to an insignificant risk of change in value. These investments refer to Bank Deposit Certificates (CDBs), characterized by the sale of the security with the financial institution s commitment to repurchasing it and the purchaser s commitment to reselling it in the future, and which pay interest at rates of 95% and 100% of the Interbank Deposit Certificate (CDI) variation, and the Integrated System of Financial Management for States and Municipalities (SIAFEM), a fund 95% indexed to Federal Treasury Bonds and 5% to State Treasury Bills, which pay interest at rates of 95% and 100% of the CDI variation. 3. CONSUMERS AND DISTRIBUTORS Total Total Consumers Industrial (a)... 58,495 59,319 Commercial Public services... 14,983 14,132 73,478 73,740 Distributors Electric power purchase contracts... 17,667 15,623 Market agents... 69,837 10,779 Energy auctions , , , , , ,010 (a) The Company has recorded an allowance for doubtful accounts of R$4,172 to cover any losses from trade accounts receivable, in addition to R$10,150 related to other receivables recorded as other credits (Note 10 (a)). 16

17 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS 4. RECEIVABLES - FREE POWER/SPOT MARKET ENERGY - CCEE Free energy CCEE... 33,726 16,690 34,089 17, Free Power The General Agreement for the Electric Power Sector was made up by the period of the Emergency Electric Power Rationing Program, occurred between June 2001 and February 2002, which in turn was implemented due to unfavorable hydrological conditions and the low level of reservoirs in various Brazilian regions, including the Southeast, where CESP is located, in which ONS restricted the generation of hydroelectric power and activated Free Generators (producers that had non-contracted power). The payment of Free Power was based on the prices charged at the Wholesale Power Market - MAE (currently the Electric Power Trade Chamber - CCEE), and this cost was split among the system generators, proportionally to each one s assured energy. At that time, CESP accounted for 12% of Brazil s assured energy. Part of this payment was made with funds from the National Bank for Economic and Social Development BNDES. This cost is being recovered through the Extraordinary Tariff Adjustment (RTE), a tariff increase that distributors collect monthly from their consumers and transfer in part to generators. The effectiveness period of the RTE for each distributor was determined by ANEEL Resolution 84/2002 (as of December 2001). CESP currently updates the balances of distributors in accordance with ANEEL Directive Release 2,212 of December 20, 2005 and ANEEL Directive Release 74 of January 23, 2006, which set forth the Selic (Central Bank overnight rate) accrued at the simple rate capitalized on a monthly basis, plus 1% p.a. for the amount financed by the BNDES; the Selic rate alone accrues on the remaining non-financed amount. With funds transferred by distributors, CESP amortized installments of the agreements signed with BNDES, balances of which were settled in advance on August 14, Breakdown: Free energy (RTE) Current Restated balance , ,165 Write-offs... (346,085) (338,731) Provision for credit realization (accumulated)... (9,528) (9,822) Total The balance receivable from this credit, R$355,976 on March 31, 2009 (R$349,165 on December 31, 2009) is being adjusted according to the amounts receivable from distributors whose terms for recovery determined by ANEEL have expired, as well as the reversal of the corresponding provision, in compliance with the SFF/ANEEL Official Letter 2,409/2007, item 16. For the other distributors, CESP has provisions recorded in the amount of R$9,528, based on internal projections, to meet the installments that are estimated not to be realized within the terms established by ANEEL. 17

18 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS 4.2. Spot Market Energy - CCEE It represents the monthly ascertained variations resulting from the balance managed by the Electricity Trade Chamber - CCEE, among commitments taken on by the Company with its market and other CCEE Agents versus the actual behavior of each member of the system. In the period ended, the Company sold the amount of R$42,504 (R$62,517 in 2009), referring to uncontracted power (revenues) available for sale within the scope of the CCEE, and power expenses in the amount of R$22,339 (R$3,381 in 2009), resulting from power acquisition and apportionment among the country s generators (Notes 26.3 and 26.4). 5. ACCOUNTS RECEIVABLE Debtor Description EMURB - Lawsuit 413/ ,147 DAEE - Credit assignment... 9,721 16,060 9,721 31, EMURB It referred to the balance of an agreement entered into with the city of São Paulo s Urbanization Company (EMURB) on January 10, 2003, receivable in 8 annual installments, monetarily restated according to the extended consumer price index (IPCA) variation plus interest of 6% p.a., arising from an indemnity lawsuit for expropriation. The balance was settled on March 25, DAEE Agreement executed on July 21, 2006, with the Water and Electricity National Department - DAEE, for receipt of 24 monthly installments, restated by CDI, plus 0.3% interest p.m., related to the loan assignment for settlement of agreement debt between CESP and Empresa Metropolitana de Águas e Energia S.A. EMAE, with final maturity on November 30, 2009 and August 31, On March 26 and April 25, 2007, addenda to this agreement were executed changing the term of receipt to 40 monthly installments, besides riders in the amount of R$11.2 million, executed on January 21, 2008, and of R$ 10 million, executed on April 30, RECOVERABLE TAXES AND CONTRIBUTIONS Current Income tax (a)... 5,300 5,112 Social contribution (b)... 1, COFINS to offset... 1,722 2,808 PIS to offset (c)... 36,730 36,964 44,859 45,851 18

19 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS (a) Balance of income tax credits arising from withholdings, restated based on the SELIC rate, and from collection by estimate, used to pay taxes and social contributions. (b) Refers to balances of social contribution originating from withholdings, restated based on the SELIC rate, and from collection by estimate, used to pay taxes and social contributions. (c) Refers to PIS tax credits in the amount of R$2,999 resulting from withholdings and tax overpayments. With these credits, the Company will offset maturing debits; and to the court decision issued in favor of the Company on a lawsuit filed on June 8, 2005, in the amount of R$33,731 claiming repetition of undue payment referring to PIS collection on financial and not operating revenues (extension of the calculation basis), from June 2000 to December 2002, to be used for offsetting taxes and social contributions. 7. GUARANTEES AND RESTRICTED DEPOSITS Current Guarantees Subordinated quotas - FIDC (a) , ,394 Non-current Judicial deposits Civil lawsuits... 3,672 1,499 Labor lawsuits - appealable... 5,699 5,428 Other... 2,096 1,575 11,467 8,502 Guarantees Subordinated quotas - FIDC (a)... 74,538 75,122 86,005 83, , ,018 (a) Refers to pledged receivables equivalent to quotas belonging to CESP, linked to the Receivables Securitization Fund - FIDC (II and III 100 quotas each and IV 72 quotas), which can only be redeemed upon maturity of the last installments, simultaneously to the settlement of each fund, and in December 2009, FIDC I was paid, in August and October 2010, FIDC II and III will be paid and in May 2017, FIDC IV will be paid. The balances of the quotas are adjusted on a monthly basis according to market s quoted value (Note 17). 8. DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION The Company has total (nominal) tax credits in the amount of R$3,194,221, of which: R$2,387,242 from tax losses (comprised of income tax of R$1,446,121 and non-deductible temporary differences of R$941,121), and social contribution tax loss carryforward of R$806,979 (comprised of social contribution of R$468,175 and non-deductible temporary differences of R$338,804). Under prevailing legislation, taxes losses and social contribution tax loss can be carryforward with future taxable income up to the limit of 30% of each year s result, not being subject to any limitation period. In 2000 and 2001, based on the analyses related to the multi-annual operating projections, the Company recognized tax credits related to tax losses and social contribution tax loss carryforward, as well as over temporary differences, pursuant to CVM Resolution 273/98. 19

20 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS On December 27, 2002, guidelines were established by CVM Rule 371, for the accounting recognition of credits derived from tax losses and temporarily nondeductible expenses. Balances recorded up to December 31, 2009 of deferred income tax and social contribution assets are supported by financial projections for the next ten years prepared and reviewed by the Company s Management, as recommended by the Concession Authority and set forth by the Brazilian Securities and Exchange Commission CVM, which solidly state the realization of the balances of tax losses, social contribution tax loss carryforward and temporary differences. The projections adopt as basic assumptions for billing the physical amount of power (MWh) and prices agreed upon with distributors through power auctions (held from 2004 to 2006), with start of supply/billing from 2009 to 2016 and from 2009 to 2039 (Note 1.2), agreements for the purchase and sale of power with small distributors, power supply to free consumers, with services/supply terms until 2019, maintenance of operating expenses levels and take into account the reduction in financial expenses, which evidence the earning of future taxable income. Breakdown of balances: ASSETS LIABILITIES Income tax Recorded tax losses (a) , , Tax losses (unrecorded) , , Temporary differences (unrecorded) , , Net exchange variations on loans and financing , ,187 2,387,242 2,394, , ,187 Social contribution Recorded negative basis (a) , , Negative basis (unrecorded) , , Temporary differences (unrecorded) , , Net exchange variations on loans and financing , , , , , ,667 Allowance for unrecorded tax credits... (2,042,157) (2,037,906) - - 1,152,064 1,167, , ,854 As of 2003, the Company adopted the cash basis for the taxation of exchange variations accrued. As a result, the Company recognized in Liabilities the deferred income tax and social contribution at the rates of 25% and 9%, respectively, on taxable temporary differences represented by said unrealized exchange variations on loans and financing not settled (Note 29). (a) In the first quarter of 2010, the amount of R$14,941 was realized and offset with collections, with tax loss of R$10,739 and negative basis of R$4,202, due to taxable income verified and the addition of (positive) exchange variations and exclusion of (negative) exchange variations, due to the amortization of principal installments of foreign currency-denominated loan agreements (cash basis for taxation) in the year, at the expense of income. Tax credits recorded in the amount of R$1,152,064, shall be realized within 10 years, as outlined below: Years Up to 2019 Fiscal year to and 2019 Total Estimated realization installment 77, , , , , ,459 98,940 1,152,064 The estimated realization of tax claims arising from tax losses, social contribution tax loss carryforward and temporarily nondeductible provisions (see chart above) is supported by projections on the Company s 20

21 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS taxable income, which are periodically reviewed and approved by Management bodies. Since those projections are based on assumptions, actual results may significantly differ from those projections. 21

22 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS 9. PREPAID EXPENSES Current Insurance premium... 3, , OTHER CREDITS Current Credits from sale of assets and rights... 1,453 1,563 Sundry credits (a)... 13,645 12,565 Restricted deposits - FIDC... 20,811 26,015 Project orders - R & D... 22,915 21,961 RGR quota difference credits (Eletrobrás)... 4,720 4,720 Other... 2,648 3,762 66,192 70,586 Non-current Credits from sale of assets and rights... 6,768 6,698 Assets for sale (b)... 70,058 70,058 Project orders... 13,319 13,319 90,145 90, , ,661 (a) Balance of credits with various companies and entities with which the Company maintains operations. In order to cover possible risks in the realization of some receivables, an allowance for doubtful accounts at the total amount of R$10,150 was recorded (Note 3). (b) Commercial buildings, available for sale, not bound by concession (Note 33). 11. INVESTMENTS Other investments Funds invested in projects with FINAM funding... 7,857 7,857 Other investments ,172 8,172 22

23 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS 12. PROPERTY, PLANT AND EQUIPMENT Average annual depreciation Total Accumulated rates (%) cost depreciation Net Net In service Generation % 22,067,567 (6,655,946) 15,411,621 15,529,253 Management % 208,191 (140,830) 67,361 68,172 22,275,758 (6,796,776) 15,478,982 15,597,425 In progress Generation... 1,024,098-1,024,098 1,040,235 Management... 1,199-1,199 1,564 1,025,297-1,025,297 1,041,799 Subtotal 23,301,055 (6,796,776) 16,504,279 16,639,224 Provision for impairment (2,525,038) - (2,525,038) (2,525,038) Total 20,776,017 (6,796,776) 13,979,241 14,114,186 On June 2, 2009, the Brazilian Electricity Regulatory Agency (ANEEL) issued the Normative Resolution 367, which approves the Manual on Equity Control of the Electricity Sector MCPSE to be used by concessionaries, licensees and electricity authorized companies, whose assets and facilities, pursuant to prevailing laws are subject to reversal to the federal government. Annual depreciation rates adopted in the electricity public utility for generation assets range between 2% and 7.1%. In addition, property, plant and equipment in service are classified by type of asset, comments of which are included in Notes 12.1 to 12.4: In service Total Accumulated Cost Depreciation Net Net Land , , ,982 Reservoirs, dams and w ater mains... 14,575,335 (4,110,090) 10,465,245 10,539,062 Buildings, civil construction and improvements... 2,862,737 (1,346,545) 1,516,192 1,534,733 Machinery and equipment... 4,073,929 (1,309,569) 2,764,360 2,790,852 Vehicles... 19,744 (15,594) 4,150 4,710 Furniture and fixtures... 28,032 (14,978) 13,054 12,086 In progress 22,275,758 (6,796,776) 15,478,982 15,597,425 Reservoirs, dams and w ater mains , , ,204 Buildings, civil construction and improvements... 50,021-50,021 48,792 Machinery and equipment in maintenance... 78,802-78,802 74,576 Machinery and equipment being assembled , , ,379 Judicial deposits... 87,090-87,090 85,513 Expropriation, civil and environmental law suits , , ,839 Other... 15,452-15,452 12,496 1,025,297-1,025,297 1,041,799 Subtotal 23,301,055 (6,796,776) 16,504,279 16,639,224 Provision for impairment... (2,525,038) - (2,525,038) (2,525,038) Total 20,776,017 (6,796,776) 13,979,241 14,114,186 The breakdown of property, plant and equipment balances is represented by: 23

24 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS In service Balance on Additions Depreciation Activation Reclassification (Reversal) Balance on Land , ,910 Reservoirs, dams and w ater mains... 10,540,224 - (73,819) ,466,405 Buildings, civil construction and improvements.. 1,534,733 - (18,540) - - 1,516,193 Machinery and equipment... 2,789,771 - (27,638) 1,147 (2) 2,763,278 Vehicles... 4,701 - (560) - - 4,141 Furniture and fixtures... 12,086 - (489) 1,458-13,055 In progress 15,597,425 - (121,046) 2,605 (2) 15,478,982 Land Reservoirs, dams and w ater mains ,685 18, ,130 Buildings, civil construction and improvements.. 48,792 1, ,952 Machinery and equipment in maintenance... 74,576 3, ,415 Machinery and equipment being assembled ,379 6,957 - (1,147) - 143,189 Judicial deposits... 85,513 1, ,090 Expropriation, civil and environmental law suits.. 580, (49,311) 531,528 Other... 12,015 3,436 - (1,458) - 13,993 1,041,799 35,414 - (2,605) (49,311) 1,025,297 Subtotal 16,639,224 35,414 (121,046) - (49,313) 16,504,279 Provision for impairment... (2,525,038) (2,525,038) Total 14,114,186 35,414 (121,046) - (49,313) 13,979, Property, plant and equipment in progress CESP s works in the Engenheiro Sérgio Motta (Porto Primavera) power plant and locks are completed, and the last generation unit (14 th ) of current expansion program started to operate in October Property, plant and equipment in progress mainly include balances of construction in progress and expenses on reservoir works, balances of the power plants machinery and equipment which are relevant for the generating plant maintenance, measurement values of advances to suppliers of materials and work contractors, replacement materials in inventory and purchases in progress. This account also includes judicial deposits of R$87,090, initial and as guarantee for civil, environmental lawsuits or other expropriations, involving mainly Engenheiro Sérgio Motta (Porto Primavera) power plant and other lawsuits involving CESP s power plants, in addition to provision balances for civil lawsuits, expropriations and environmental lawsuits, up to, in the amount of R$531,528 (civil R$334,231, expropriations R$95,886 and environmental R$101,411). Certain properties necessary for the implementation of the Company s projects, specifically for the construction of reservoirs or other projects related to its activities were expropriated pursuant to specific legislation and, in certain cases, have been discussed with their owners. In cases accurate estimates are difficult to reach, due to the time necessary to obtain court decisions or the unpredictability of the outcome of the negotiations, the Company records estimated cost of expropriation as part of property, plant and equipment. Late costs exceeding the recoverable amount of assets of Porto Primavera plant as of fiscal year 2009 are no longer capitalized and are now recorded directly in the income (note 28). 24

25 (Free translation of the original document in Portuguese) March 31, 2009 Brazilian Corporation Law CESP COMPANHIA ENERGÉTICA DE SÃO PAULO / NOTES TO THE FINANCIAL STATEMENTS Electricity concessions CESP s generation concessions were granted by Decrees related to each power plant at the time the studies and construction works started, and were grouped into a concession agreement executed on November 12, 2004, comprising all the Company s generation facilities: Total Installed Assured Hydroelectric operating capacity energy Place in Expiration of Basin plant machines (in MW) average MW (1) service (2) concession Paraná Ilha Solteira (3) 20 3,444 1, Jupiá 14 1, Três Irmãos (4) Engenheiro Sérgio Motta (5) 14 1,540 1, Paraíba Jaguari Paraibuna ,456 3,916 (5) (1) It is the power available for trading in the power plants of an interconnected system, verified in the plant s bar, connected with the National Interconnected System (Note 1.1). (2) Operation date of the first Generator Group. (3) Três Irmãos assured energy is included in Ilha Solteira s. (4) Located on Tietê River, but operates on an integrated manner with Ilha Solteira power plant, through Pereira Barreto Channel. (5) CESP s assured energy shall deduct consumption in power plants and transmission losses to the system s gravity center. These deductions vary each year, but they can be estimated by up to 3%. Data related to the power and power has not been revised by the independent auditors Assets linked to concession In accordance with Articles 63 and 64 of Decree 41,019 of February 26, 1957, assets and facilities used in the production, transmission and distribution of electricity, including trading, are connected with these services and cannot be withdrawn, sold or pledged as guarantee without the prior express consent of the Regulatory Agency. ANEEL Resolution 20/99 regulates the removal of assets from electricity public utility concessions, granting previous authorization for the removal of assets unworthy to concession, when intended for sale, and also determining that the proceeds from the sale of these assets be deposited in a restricted bank account and invested in the concession Asset impairment CESP s property, plant and equipment items were recorded in strict conformity with Brazilian accounting practices and specific rules for the electricity sector issued by the Brazilian Electricity Regulatory Agency (ANEEL). Brazilian legislation, particularly Decrees 24,643 of July 10, 1934, and 41,019 of February 26, 1957, both in effect and the basis for granting the concessions of the Company, guarantees that, at the end of the concession term, the residual value of assets will be the purpose of indemnification in the reversal process of these assets to the Concession Authority. 25