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CTEEP runs several initiatives to assure sustainability when performing its activities. In 2010, R$2.3 million was invested in initiatives of prevention, management, mitigation and treatment – an increase of 45% compared with 2009.

Such increase was driven, particularly by the Company´s commitment to meeting its Mission and Environmental Policy and by an environmental management based on ISO 14001 Standard requisites. [GRI EN30]

To mitigate the environmental impacts of its installations, CTEEP made a number of improvements to its substations in 2010, such as: construction of eight oil collector basins, four water/oil separator boxes, three firewalls and containments in the battery rooms and GAE (Auxiliary Emergency Group) rooms. Furthermore, it is a common practice in the Company to periodically raise awareness among its employees about the Standard Operating Procedures (POPs) to perform critical activities of the Environmental Management System - SGA. [GRI EN26]

Impacts and Waste

At CTEEP, all waste disposal is carried out in compliance with the environmental Law in force and effect, regarding transportation, handling and methods of disposal. The Company disposes of and transports the waste properly, including those contaminated with polychlorinated biphenyls (PCBs), that are classified as Class I – Hazardous waste.

In such cases, the certificate of handling wastes of environmental interest (CADRI) required is obtained by a specialized company, licensed by an environmental authority, which performs handling, packing and transportation of wastes and the final disposal of cloths, EPIs (Individual Protection Equipment), soil, sand and insulating mineral oil contaminated with PCBs.

In 2010, it was performed the final disposal of 30,342 kg of materials contaminated with PCBs, a growth of 12% compared with the volume of 2009 (27,120 kg).

The other Class II – Inert and Non-inert wastes are stored temporarily in special areas for such type of storage, until they reach a minimum quantity for transportation and proper final disposal. [GRI EN24]

Final disposal of 18,312 kg of lead acid batteries was also properly carried out over 2010, according to the environmental Law, by an innovative partnership with a specialized material recycling company that properly carried out the disposal of this volume, with no costs to CTEEP.

Biodiversity and Legislation

Some CTEEP electricity transmission lines run through environmental protection areas with great biodiversity [GRI EN11]. In 2010, the Company invested in environmental restoration of some of these locations, as such, for example, planting of 33 hectares of native tree species in the areas of the Forest Institute of Batatais (SP).

To meet the environmental commitments, CTEEP carried out the reforestation of 19 thousand m2, in the area of the 345 kV BSA-TP transmission line (tower 70) and 345 kV ITE –TP transmission line (tower 54), planting 2 thousand seedlings, in accordance with TCRA 232. [GRI EN13]

In 2010, CTEEP was not monetarily fined and/or sanctioned, nor are there any lawsuits filed by way of arbitration related to the environmental matters. The Company was served on two notices of violation:

• R$ 322,500.00 fine, due to activity of packaging of soil in bags by a trespasser of an area owned by CTEEP that filed its administrative defense (to date, still pending judgment).
• Simple fine, at the amount of R$ 1,000.00, and stay of vegetation supression activity, by elimination of vegetation without consent (area of relevant ecological interest), between the cities of Matão and Cosmopólis, presumedly made by CTEEP, that filed its administrative defense (to date, still pending judgement). [GRI EN28]

In 2010, three processes for compliance with TCRAs 159/05, 177/06 and 100/05 were submitted and completed, with 3.710 tree seedlings planted.

Energy

CTEEP substations have their own electrical energy supply. Through equipment named Auxiliary Service Transformers, the Company obtains the electricity used in its activities out of the electricity it transports.

Where such sources are unavailable, there are other options, among them the engine driven GAEs (Auxiliary Emergency groups),which uses the direct nonrenewable energy (diesel oil) to assure the reinstatement of energy supply for the priority loads of the auxiliary service of the installations. It should be pointed out that even though said equipment is rarely operated, CTEEP controls the equipment diesel oil by controlling the level of the reservoirs. [GRI EN3]

Altogether, CTEEP has 105 substations, but the consumption data disclosed in this report are from 40 substations that are monitored due to implantation of the Environmental Management System.

CTEEP also has a continuous electricity saving program, which contemplates the replacement of less efficient lamps, and actions to raise awareness among our employees, which contribute to 2,011.71 joules energy saving in the year. [GRI EN5]

Water

CTEEP has no processes generating effluents nor does it have programs allowing water reuse and recycling. Even then, a pilot-project for Rainwater catchment is under study, that would be used to wash the metal bases (holders) of electrical equipment of the substations. [GRI EN10]

In 2010, out of the 63 substations with Environmental Management System implanted, CTEEP monitored the water consumption at 43 substations, which consumed 30,604 m3. The considerable variation in the consumption compared with 2009 is explained by performance of temporary works at the substations and by the respective increase in the number of personnel in the substations. [GRI EN8]

Water consumption evolution (m³)