In December 2012, CTEEP signed the extension of the term for the Concession Agreement No 059/2001 with ANEEL (the Brazilian Electric Power Agency), leading the Company to start a new cycle for its operations.

The new rules set out in 2012 by the Brazilian Federal Government have impacted the regulatory framework for the electric power industry in the country, giving way to a broader scope for the Company`s operations. The existing remuneration scheme for electric power transmission companies remain the same, subject to ANEEL`s periodic review of revenue. The Allowed Annual Revenue (RAP), as of January 2013, will remunerate administrative, operation and maintenance services. Within this scenario, CTEEP reiterates its purpose of keeping ahead of the electric power transmission segment, by excelling as an outstanding service provider to the society, alongside a sound economic and financial condition that ensures a suitable return to the shareholders, in addition to providing a safe and trustworthy operational environment.

In order to provide support to its decision, the Company hired independent experts to conduct an economic and financial assessment, which involved a study of the economic and financial model, by taking into account a number of parameters, such as financial leverage, capital expenditures, contractual obligations and personnel planning, in addition to probable future scenarios. During the same period, two other consulting companies carried out analyses considering corporate, regulatory and legal aspects.

At the Extraordinary General Meeting held on December 3, 2012, the Company’s shareholders unanimously approved extension of the concession agreement No. 059/2001, based on the results of studies conducted and in the light of the growth potential of the Brazilian economy, as well as on the ability of the Company`s professional team to become engaged in processes of change, with commitment and dedication.

With the purpose of keeping its stakeholders abreast of the unfolding events related to the question of concessions, during 2012, CTEEP maintained a communication taskforce aimed to publish notices and material announcements throughout the different stages of the negotiation process. Thus, the Company has reinforced its commitment to a transparent, ethical and responsible management.

In light of this new scenario, CTEEP has been seeking to adapt to the changing requirements, while at the same time maintaining both the high level of quality and effectiveness of its operations, as well as preserving its commitment to all its stakeholders.