Permitted Annual Revenue (PAR)

In 2008, the company’s Permitted Annual Revenue (PAR) reached R$ 1,802.4 million, representing a growth of 15.3% in relation to 2007. PAR is the company’s main source of income, derived from the use of its transmission system by other public electricity concessionaires, other agents in the sector and consumers. According to ANEEL Homologating Resolution nº 670, the company’s PAR was readjusted by 11.53% for the 2008/2009 period, in accordance with the accumulated change in the IGP-M inflation index for the period from June 2007 to May 2008.

On an annual basis, the forecast impact of Resolution 670 on the company’s PAR will be an increase of R$ 390.1 million for the next twelve months, or R$ 1,869.0 million up to the end of the 2008/2009 period, representing a growth of 26.4% in relation to the previous period.