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São Paulo, February 28^th, 2008 – CPFL Energia S.A. (Bovespa: CPFE3 and NYSE: CPL), announces the 4Q07 results. The following financial and operational information, unless otherwise indicated, is presented in a consolidated form and is in accordance with Company Legislation. Comparisons are relative to 4Q06, unless otherwise stated.

CPFL ENERGIA ANNOUNCES NET INCOME OF R$ 373 MILLION IN 4Q07

Indicators (R$ Million)		4Q07		4Q06		Var.		2007		2006		Var.
Sales within the Concession Area - GWh		12,205		10,917		11.8%		46,475		41,363		12.4%
Captive Market		9,256		8,326		11.2%		35,245		31,778		10.9%
TUSD		2,949		2,590		13.8%		11,230		9,585		17.2%
Sales in the Free Market - GWh		2,358		2,397		-1.6%		8,951		9,334		-4.1%
Gross Operating Revenue		3,829		3,280		16.8%		14,207		12,227		16.2%
Net Operating Revenue		2,628		2,133		23.2%		9,410		7,912		18.9%
EBITDA		781		684		14.2%		3,345		2,789		19.9%
EBITDA Margin		29.7%		32.1%		-2.4%		35.5%		35.3%		0.3%
Net Income		373		345		7.9%		1,643		1,404		17.0%
Net Income per Share - R$		0.78		0.72		7.9%		3.42		2.93		17.0%
Investments		268		241		11.2%		1,133		797		42.2%

HIGHLIGHTS 4Q07

• Growth of 11.8% in electric power sales within the concession area;
• Growth of 23.2% in net operating revenue and 14.2% in EBITDA⁽¹⁾;
• Increase of 88.5% in the average daily trading volume of CPFL Energia shares in 2007 compared to 2006, reaching R$ 32.6 million.

Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions plus adjustments for extraordinary items.

Teleconference in Portuguese with Simultaneous Translation in English	Investor Relations
(Bilingual Q&A)	Department
• Friday, February 29, 2008 – 02:00 pm (SP), 12:00 am (EST)
Portuguese: 55-11-4688-6301 – Code: CPFL	55 19 3756-6083
English: 1-888-700-0802 (US) and 1-786-924-6977 (Other Countries) – Code: CPFL	ri@cpfl.com.br
• Webcast: www.cpfl.com.br/ir	www.cpfl.com.br/ir

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	4Q07 Results | February 28th, 2008

INDEX
1) ENERGY SALES		3
1.1)Sales within the Concession Area		3
1.1.1) Sales to the Captive Market		3
1.1.2) Sales by Consumer Class – Captive Market		4
1.2)Sales to the Free Market		4
2) ECONOMIC-FINANCIAL PERFORMANCE		5
2.1)Operating Revenue		5
2.2)Cost of Electric Power		5
2.3)Operating Costs and Expenses		6
2.4)EBITDA		7
2.5)Financial Result		7
2.6)Taxation		7
2.7)Net Income		7
3) DEBT		8
4) INVESTMENTS		10
5) CASH FLOW		11
6) DIVIDENDS		12
7) STOCK MARKET		13
7.1)Share Performance		13
7.2)Ratings		14
7.3)Corporate Governance		14
8) SHAREHOLDING STRUCTURE		15
8.1)Migration of RGE Minority Shareholders to CPFL Energia		15
9) PERFORMANCE OF THE BUSINESS SEGMENTS		16
9.1)Distribution Segment		16
9.1.1) Economic-Financial Performance		16
9.1.2) Tariff Revisions		19
9.2)Commercialization Segment		21
9.3)Generation Segment		22
10) ANNEXES		25
10.1) Sales to the Captive Market by Distributors		25
10.2) Economic-Financial Performance by Distributors (Pro-forma)		26
10.3) Statement of Assets – CPFL Energia		28
10.4) Statement of Liabilities – CPFL Energia		29
10.5) Income Statement – CPFL Energia		30
10.6) Income Statement – Distribution - Consolidated (Pro-forma)		31
10.7) Income Statement – Generation – Consolidated (Pro-forma)		32

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1) ENERGY SALES

1.1) Sales within the Concession Area

In 4Q07, sales within the concession area by the distributors totaled 12,205 GWh, an increase of 11.8%, due mainly to organic growth in the CPFL Energia concession area and the acquisitions of Santa Cruz and CMS Energy Brasil (now denominated as CPFL Jaguariúna). Disregarding this effect, the increase would have been 6.4% .

Sales within the Concession Area - GWh
		4Q07		4Q06		Var.		2007		2006		Var.
Captive Market		9,256		8,326		11.2%		35,245		31,778		10.9%
TUSD		2,949		2,590		13.8%		11,230		9,585		17.2%
Total		12,205		10,917		11.8%		46,475		41,363		12.4%

Sales to the captive market totaled 9,256 GWh, an increase of 11.2%, due to the organic growth and the acquisitions mentioned above.

The volume corresponding to the Tariff for the Use of the Distribution System (TUSD), by free customers who left the CPFL Energia captive customer base, reached 2,949 GWh, an increase of 13.8% .

1.1.1) Sales to the Captive Market

Captive Market - GWh
		4Q07		4Q06		Var.		2007		2006		Var.
Residential		2,773		2,470		12.3%		10,766		9,489		13.5%
Industrial		3,003		2,827		6.2%		11,401		10,882		4.8%
Commercial		1,698		1,525		11.3%		6,437		5,724		12.5%
Rural		709		527		34.5%		2,511		1,966		27.7%
Others		1,072		976		9.8%		4,130		3,717		11.1%
Total		9,256		8,326		11.2%		35,245		31,778		10.9%

Note: The captive market sales tables by distributor are annexed to this report in item 10.1.

In the captive market, the residential, commercial and industrial classes representing 81% of the total energy consumed by CPFL Energia captive customers, presented growth of 12.3%, 6.2% and 11.3%, respectively. It is important to emphasize that these gains were influenced by the acquisitions of Santa Cruz and CMS Energy Brasil.

Disregarding the effect of the Santa Cruz and CMS Energy Brasil acquisitions, the evolution would have been as follows:

• Residential and commercial classes grew by 6.7% and 7.1% respectively. This increase in volume, when compared to the same period last year, is due to the higher temperatures recorded in the CPFL Energia concession area (resulting in higher consumption), combined with the performance of the economy as demonstrated by the following factors: expansion in earning power and credit availability, extended hire-purchase terms, lower interest rates and a more favorable exchange rate;
  
  
• Industrial class: an increase of 0.3%, owing to the migration of captive customers to the free market, albeit with less intensity than in previous quarters.

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1.1.2) Sales by Consumer Class – Captive Market

As a consequence of the different sales evolutions by consumer class, a shift in the captive market sales profile can be observed, demonstrated by the reduction in the industrial class segment, which shrank from 34.0% to 32.4%, and the increase in the residential class share from 29.7% to 30.0% .

1.2) Sales to the Free Market

Sales to the free market through the commercializing segment fell slightly by 1.7%, due to the reduction of short-term contract sales. In 2005, sales to the free market grew 113.8% and, in 2006, the growth was 31.1% . In 2007, there was a decrease of 4.1% .

Sales to the Free Market - GWh
		4Q07		4Q06		Var.		2007		2006		Var.
Free Market		2,358		2,397		-1.7%		8,951		9,334		-4.1%

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2) ECONOMIC-FINANCIAL PERFORMANCE

Consolidated Income Statement - CPFL ENERGIA (R$ Thousands)
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		3,829,404		3,279,887		16.8%		14,207,384		12,227,052		16.2%
Net Operating Revenues		2,628,307		2,132,713		23.2%		9,409,535		7,911,950		18.9%
Cost of Electric Power		(1,320,107)		(1,148,666)		14.9%		(4,755,061)		(4,193,274)		13.4%
Operating Costs & Expenses		(602,979)		(378,868)		59.2%		(1,632,925)		(1,308,077)		24.8%
EBIT		705,221		605,179		16.5%		3,021,549		2,410,599		25.3%
EBITDA		780,994		684,076		14.2%		3,344,887		2,789,041		19.9%
Financial Income (Expense)		(127,345)		(118,618)		7.4%		(514,388)		(289,345)		77.8%
Operating Income		577,876		486,561		18.8%		2,507,161		2,121,254		18.2%
Income Before Taxes		562,028		479,336		17.3%		2,476,514		2,171,091		14.1%
NET INCOME		372,622		345,354		7.9%		1,643,436		1,404,096		17.0%
EPS - R$		0.78		0.72		7.9%		3.42		2.93		17.0%

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

2.1) Operating Revenue

Gross operating revenue in 4Q07 reached R$ 3,829 million, representing growth of 16.8% (R$ 550 million), while net operating revenue increased to R$ 2,628 million, equivalent to growth of 23.2% (R$ 496 million).

The main contributing factors to this evolution in operating revenue were:

(i) Increase in sales to the captive market by 11.2%, due mainly to the organic growth in the concession area and the acquisitions of Santa Cruz and CMS Energy Brasil;

(ii) Distributor Tariff Readjustments: CPFL Paulista (7.06%) and RGE (6.05%), in April 2007;

(iii) Other revenue increases adding up to R$ 231 million, mainly due to the increases of R$ 136 million at CPFL Paulista and R$ 53 million at CPFL Piratininga, resulting from the write-down of the balance of free energy liability due to the termination of RTE charges in 4Q07. (In compensation, the asset write-down was registered in the account “other operating expenses” and the liability write-down in “other operating revenues”, without affecting the net income).

In 2007, gross operating revenue reached R$ 14,207 million, representing growth of 16.2% (R$ 1,980 million), while net operating revenue was R$ 9,410 million, representing growth of 18.9% (R$ 1,498 million).

2.2) Cost of Electric Power

The cost of electric power comprised of the purchase of power for resale and charges for the use of the distribution and transmission systems amounted to R$ 1,320 million in 4Q07, representing an increase of 14.9% (R$ 171 million):

• The cost of power purchased for resale in 4Q07 was R$ 1,145 million, which represents an increase of 20.0% (R$ 191 million). The main contributing factors to this variation are:

(i) Increase of 17.5% (R$ 175 million) in the cost of power purchased in both the regulated and free contracting ambient; 

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(ii) Net effect of the recalculation of the 2005/2006 IRT and the amortization and deferment of CVA (R$ 58 million). The recalculation of IRT is a non-recurring event, which does not affect the net income. However, its compensation is included in the item Amortization and Deferment of CVA. 

The increase in the cost of purchased power was partially offset by the following factors: 

(i) PIS and Cofins tax credits, generated by the purchase of power (R$ 21 million); 

(ii) An increase in the items Power Surplus and Shortage, which represented an expense of R$ 4 million in 4Q06 but now represents revenue of R$ 17 million in 4Q07, implying a R$ 21 million reduction in costs. 

• Charges for the use of the transmission and distribution system were R$ 175 million in 4Q07, a reduction of 10.1% (R$ 20 million), due mainly to the reduction of R$ 41 million in the amount referring to the net effect of the amortization and deferral of CVA.

The reduction in the charges for the use of the transmission and distribution system was partially compensated by the increase of R$ 18 million in connection charges, due mostly to the acquisition of Santa Cruz (R$ 17 million).

2.3) Operating Costs and Expenses

Operating costs and expenses were R$ 603 million in 4Q07, registering an increase of 59.2% (R$ 224 million).

Discounting the effects of the Santa Cruz and CMS Energy Brasil acquisitions, the start-up of Enercan and the null and non-recurring effect from the write-down of the free energy assets at CPFL Paulista and CPFL Piratininga, the total operating costs and expenses in 4Q07 would have been R$ 381 million, an increase of 0.5% (R$ 2 million).

The main factors contributing to this variation in operating costs and expenses are the following:

(i) The item PMSO registered an increase of 73.9% (R$ 216 million). Disregarding the items mentioned above, the item PMSO would have shown a reduction of 2.0% (R$ 6 million).

The contributing factors are the following:

• Spending on personnel registered an increase of 15.3% (R$ 16 million), due mainly to the acquisition of Santa Cruz and CMS Energy Brasil (R$ 13 million);

• Spending on outsourced services was up 27.6% (R$ 22 million), due to, among other factors, the acquisitions of Santa Cruz and CMS Energy Brasil (R$ 7 million), and the increase in outsourced services at CPFL Piratininga (R$ 6 million). This increase at CPFL Piratininga is a result of the reclassifications applied in 4Q06, owing to the new classifications requested by ANEEL, in accordance to order No. 3,073 precipitating alterations in the Public Service Electric Power Accounting Manual. In compensation, this reclassification has been considered in the Operating Revenue deductions;

• Other Operating Costs and Expenses registered an increase of 212.3% (R$ 179 million), mainly due to the increases of R$ 136 million at CPFL Paulista and R$ 53 million at CPFL Piratininga, resulting from the asset write-down of the free energy balance due to the end of RTE charges in 4Q07. (In compensation, the asset write-down was registered in “other operating expenses” and the liability write-down in “other operating revenues”, without impacting the net income).

Note: PMSO considers Personnel, Material, Outsourced Services and Others.

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(ii) The item Depreciation and Amortization registered an increase of 17.5% (R$ 15 million), due to the acquisitions of Santa Cruz and CMS Energy Brasil (R$ 5 million) and the operational start-up of Enercan (R$ 4 million);

The increase in operating costs and expenses was partially offset by the following factor: 

(i) The Private Pension Fund, which in 4Q06 represented revenue of R$ 2 million, is now providing revenue of R$ 9 million in 4Q07, due to the impact from the expected real earnings of the plan’s assets, as defined by the Actuary Report of December 2006.

2.4) EBITDA

Based on the factors described above, CPFL Energia EBITDA, in 4Q07, was R$ 781 million, registering an increase of 14.2% (R$ 97 million). In 2007, EBITDA was R$ 3,345 million, registering a 19.9% (R$ 556 million) increase.

2.5) Financial Result

In 4Q07, the financial result, or the net financial expense was R$ 127 million, up 7.4% (R$ 9 million) compared to the R$ 119 million registered in 4Q06. Items that help explain this variation are:

(i) Financial Revenue: reduction of 9.8% (R$ 11 million), falling from R$ 113 million in 4Q06 to R$ 102 million in 4Q07;

(ii) Financial Expenses: decrease of 1.1% (R$ 2 million), falling from R$ 232 million in 4Q06 to R$ 230 million in 4Q07.

2.6) Taxation

In 4Q07, social contribution and income tax were R$ 187 million, an increase of 48.8% (R$ 61 million) compared to 4Q06. This difference is mainly due to the fiscal benefits obtained by the controlled companies CPFL Paulista and CPFL Piratininga in 4Q06, which were higher than obtained in 4Q07, due to the larger pay-out on interest on own capital (R$ 61 million).

2.7) Net Income

Net income in 4Q07, was R$ 373 million, an increase of 7.9% (R$ 27 million) with net income per share at R$ 0.78. Over the year 2007, net income was R$ 1.643 million, representing an increase of 17.0% (R$ 239 million), with net income per share working out at R$ 3.42.

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3) DEBT

CPFL Energia’s financial debt was R$ 6,248 million in 4Q07, an increase of 20.9% . Although the financial debt may have increased in nominal terms, its average cost has fallen from 13.4% p.a. in 4Q06 to 12.1% p.a. in 4Q07, due to the fall in Selic interest rates (from 15.03% p.a. to 11.82% p.a.) and the TJLP (from 7.87% p.a. to 6.38% p.a.) over the period.

The main factors contributing to the fluctuation in the balance of financial debt are the following:

(i) Funding (BNDES and other financial institutions), net of amortizations, obtained by CPFL Paulista, CPFL Piratininga, RGE, CPFL Brasil, CPFL Geração and generation projects, totalizing R$ 503 million, as follows:

•  R$ 380 million to Foz do Chapecó;

•  R$ 112 million to RGE, mainly due to the debt roll over.

(ii) Debenture issue by CPFL Energia, to the acquisition of CMS Energy Brasil, in the amount of R$ 450 million;

(iii)Incorporation of the CPFL Jaguariúna debt portfolio (R$ 6 million).

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As a consequence of funding operations and amortizations carried out, a shift in the financial debt profile can be observed, demonstrated by the increase in the volume of debt linked to CDI (from 41.2% to 50.9%), and by the reduction in the volume of debt linked to IGP-M/IGP-DI (from 21.6% to 15.8%) and TJLP (from 30.7% to 29.2%) .

Financial Debt - 4Q07 (R$ Thousands)
		Charges				Principal				Total
		Short Term		Long Term		Short Term		Long Term		Short Term		Long Term		Total
Local Currency
BNDES - Repowering		124		-		7,057		26,521		7,181		26,521		33,702
BNDES - Investment		6,164		-		237,672		1,637,143		243,836		1,637,143		1,880,979
BNDES - RTE, Parcel "A" and Free Energy		663		-		142,216		-		142,879		-		142,879
BNDES - Bens de Renda		16		-		-		869		16		869		885
Furnas Centrais Elétricas S.A.		-		-		47,519		111,665		47,519		111,665		159,184
Financial Institutions		45,418		-		233,752		143,032		279,170		143,032		422,202
Others		607		-		28,913		26,416		29,520		26,416		55,936
Subtotal		52,992		-		697,129		1,945,646		750,121		1,945,646		2,695,767
Foreign Currency
IDB		669		-		3,133		59,394		3,802		59,394		63,196
Financial Institutions		11,605		19,926		162,443		860,064		174,048		879,990		1,054,038
Subtotal		12,274		19,926		165,576		919,458		177,850		939,384		1,117,234
Debentures
CPFL Energia		15,983		-		-		450,000		15,983		450,000		465,983
CPFL Paulista		19,805		-		-		914,897		19,805		914,897		934,702
CPFL Piratininga		22,641		-		-		400,000		22,641		400,000		422,641
RGE		10,132		-		-		330,000		10,132		330,000		340,132
SEMESA		1,720		-		150,416		80,758		152,136		80,758		232,894
BAESA		1,243		-		4,201		32,817		5,444		32,817		38,261
Subtotal		71,524		-		154,617		2,208,472		226,141		2,208,472		2,434,613
Total		136,790		19,926		1,017,322		5,073,576		1,154,112		5,093,502		6,247,614
Percentage on Total Financial Debt (%)		-		-		-		-		18.5%		81.5%		100%

When considering CPFL Energia´s financial debt, it is important to note that R$ 5,094 million (81.5% of the total) is considered long-term and R$ 1,154 million, (18.5% of the total) is considered short-term.

R$ Thousands		4Q07		4Q06		Var.
Total Debt (1)		(6,771,761)(2)		(6,103,476)		10.9%
(+) Regulatory Asset/(Liability)		572,847		1,057,247		-45.8%
(+) Available Funds		1,106,308		630,250		75.5%
(=) Adjusted Net Debt		(5,092,606)		(4,415,979)		15.3%

Note:	(1) Financial Debt + Derivatives + Private Pension Plan (Fundação CESP);
	(2) Total Debt in 4Q07 Net of Judicial Deposit in the Amount of R$ 373 million.

In 4Q07, adjusted net debt, after the exclusion of regulatory assets/(liabilities) and receivables, reached R$ 5,093 million, an increase of 15.3% (R$ 677 million).

The company closed 4Q07 with a net debt / EBITDA ratio of 1.5x.

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4) INVESTMENTS

In 4Q07, R$ 268 million was invested in the maintenance and expansion of business, of which, R$ 155 million was channeled to distribution, R$ 5 million to commercialization, R$ 106 million to generation and R$ 2 million to other investments. The total amount of CPFL Energia’s investments over 2007 were R$ 1,133.

Some of the main investments made in 4Q07 are highlighted below:

• Distribution Sector: investments were made in the expansion of the electric system to keep pace with consumer growth. Investments were also made in maintenance and improvements in the electric system, in operational infrastructure, operational support systems and the research and development program;
  
  
• Commercializing Sector: improvements in management and risk portfolio systems;
  
  
• Generation Sector: Investments were made mainly in projects under construction – The Ceran Complex (Castro Alves and 14 de Julho hydroelectric facilities) and the Foz do Chapecó hydroelectric facility.

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5) CASH FLOW

The table below shows the cash flow evolution over 4Q07:

Consolidated Cash Flow - 4Q07 (R$ - In Thousands)
Beginning Balance - 06/30/2007		378,788
Net Income		372,622
Depreciation and Amortization		140,322
Cash Investments		(167,588)
Deferment of Tariff Costs		90,823
Judicial Deposits		(7,509)
Accrued Interest on Debts		(33,255)
Consumers and Dealerships		128,842
Others		(6,121)
		145,514
Investment Activities
Acquisition of Property, Plant and Equipment		(267,854)
Others		(47,865)
		(315,719)
Financing Activities
Loans, Financing and Debentures		941,982
Principal Amortization of Loans, Financing and Debentures		(674,781)
Dividends Paid		(3,377)
Advance for Future Capital Increase		82,597
Payment of Capital		271
		346,692
Cash Flow Generation		549,109
Ending Balance - 12/31/2007		927,897

The cash flow balance at 4Q07 closing was R$ 928 million, representing an increase of 145.0% (R$ 549 million) in relation to the starting balance. We highlight the following factors that contributed to this fluctuation in cash flow:

(i) Cash increase:

• Cash generated by operational activities in the amount of R$ 518 million;

• Funds raised by loans, financing and debentures, which surpassed amortizations by R$ 267 million.

(ii) Cash decrease:

• Acquisition of fixed assets in the amount of R$ 268 million (previously shown in item 4, “Investments”).

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6) DIVIDENDS

The Board proposed the distribution of R$ 1,561 million in dividends, which represents the net income balance for the year after the 5% statutory legal reserve, resulting in R$ 3.25 per share. The amount proposed corresponds to 95% of net income for the period.

Discounting the R$ 842 million paid in 1H07, the amount to be paid will be R$ 719 million, equivalent to R$ 1,497964530 per share.

CPFL Energia's Dividend Yield
		1H06		2H06		1H07		2H07
Dividend Yield - last 12 months (1)		8.7%		9.6%		10.9%		9.7%

Note: (1) Based on the average share price over the period.

The 2H07 dividend yield, calculated from the average price of the period (R$ 35.99) is 9.7% .

The declared sums comply with the CPFL Energia “dividend policy”, which establishes that earnings distribution – in the form of dividends and/or interest on own capital (JCP) – should be at least 50% of half-yearly adjusted net income.

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7) STOCK MARKET

7.1) Share Performance

CPFL Energia, currently running a free float of 27.6%, trades shares in Brazil (Bovespa), on the New York Stock Exchange (NYSE).

In 2007, CPFL Energia shares appreciated 23.9% on Bovespa and 52.6% on the NYSE, closing the period priced at R$ 33.67 per share and US$ 56.66 per ADR, respectively.

The average daily trading volume in 2007 was R$ 32.6 million, of which R$ 19.8 million was on Bovespa and R$ 12.8 million was on the NYSE, representing an increase of 88.5% . The number of trades made on Bovespa increased 114.3%, rising from a daily average of 345 in 2006 to 738 in 2007.

Note: Considers the sum of the average daily volume on Bovespa and NYSE.

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7.2) Ratings

The table below shows the evolution of CPFL Energia’s Corporate Ratings:

Ratings of CPFL Energia - National Scale
Agency				2007		2006		2005
Standard & Poor's		Rating		brAA-		brA+		brA
		Outlook		Stable		Positive		Positive
Fitch Ratings		Rating		AA (bra)		A+ (bra)		A- (bra)
		Outlook		Stable		Stable		Stable

Note: considers position at closing.

7.3) Corporate Governance

CPFL Energia is the only publicly-held company in the Brazilian electric sector to simultaneously trade shares on the Novo Mercado – Bovespa and on the New York Stock Exchange (NYSE) with ADR’s level III.

The Company is also included in:

• The major indexes that list companies practicing differentiated corporate governance, sustainability and corporate responsibility, such as the Corporate Governance index — IGC, the index of tag-along differentiated shares — ITAG and the index of Corporate Sustainability - ISE, of Bovespa;

• A select group of fourteen Latin-American companies recognized for their adoption of differentiated corporate governance practices – The Companies Circle - , which was constituted through the initiative of the Organization for Economic Cooperation and Development (OECD) and the International Finance Corporation (IFC), with the aim of promoting and encouraging good corporate governance practices in Latin-America. In October 2007, CPFL Energia participated in the Latin American Corporate Governance Roundtable, sponsored by the OECD, in cooperation with the IFC and the World Bank, held in the city of Medellín, Colombia.

The CPFL Energia model of corporate governance focuses on refining the decision-making process and in order to achieve this, three Board Advisory Committees were created: the Management Process Committee, the Committee of Related Parties and the Human Resources Management Committee.

The company Board of Directors is composed of seven members (one of which is independent) and can call on the advice of three permanent committees and six ad hoc committees, whose attributions are determined by the Board with a view to lend support in matters that require in-depth consideration and analysis. The Board is central forum of decision-making, defining long- term planning and focusing on the creation of value for the company and the controlled companies.

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8) SHAREHOLDING STRUCTURE

CPFL Energia is a holding company with stock participations in other companies and its results depend directly on the results of the controlled companies.

Note: (1) Includes 0.2% of others.

8.1) Migration of RGE Minority Shareholders to CPFL Energia

In accordance with Shareholder Memos of December 18 and 20, 2007 and January 28, 2008, jointly issued by RGE and CPFL Energia, and accordingly approved at the shareholders General Meetings of the two companies on December 18, 2007, RGE was transformed into a fully merged subsidiary of CPFL Energia.

The stock merger involved the transference to CPFL equity, through an increase in capital, of all ordinary and preferential shares (all indentured and without nominal value), issued by RGE, in the non-controlling shareholders names, resulting in the transformation of RGE into a subsidiary of CPFL Energia. The new CPFL Energia ordinary shares issued as a result of the increase in capital were handed over to the original non-controlling shareholders of RGE.

The objectives of the merger were: (i) to align shareholder interests of both companies; (ii) to raise the float of CPFL Energia, through the migration of current RGE non-controlling shareholders to the shareholding base of CPFL Energia; (iii) to raise the shareholding base of CPFL Energia; and (iv) to reduce the number of group companies trading shares on Bovespa, concentrating liquidity in CPFL Energia shares.

Since CPFL Energia is listed in BOVESPA “Novo Mercado” (New Market) and the shares issued by it are traded in US Stock Market (NYSE – New York Stock Exchange), the stock merger brought unquestionable benefits to RGE´s non-controlling shareholders, as they became holders of CPFL

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Energia’s shares that entitle to rights and advantages not attributed to the shares issued by RGE and, mainly, they henceforth enjoyed a shareholding with a liquidity substantially higher than that ascertained as to the shares issued by RGE.

9) PERFORMANCE OF THE BUSINESS SEGMENTS

9.1) Distribution Segment

9.1.1) Economic-Financial Performance

Consolidated Income Statement - Distribution (R$ Thousands)
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		3,454,064		3,019,814		14.4%		12,979,547		11,253,212		15.3%
Net Operating Revenues		2,317,250		1,907,588		21.5%		8,382,098		7,059,765		18.7%
Cost of Electric Power		(1,269,615)		(1,133,929)		12.0%		(4,766,623)		(4,146,176)		15.0%
Operating Costs & Expenses		(528,511)		(330,958)		59.7%		(1,399,336)		(1,156,101)		21.0%
EBIT		519,124		442,701		17.3%		2,216,139		1,757,488		26.1%
EBITDA		583,976		500,916		16.6%		2,472,332		2,011,486		22.9%
Financial Income (Expense)		(120,255)		(119,828)		0.4%		(279,123)		(261,140)		6.9%
Operating Income		398,869		322,873		23.5%		1,937,016		1,496,348		29.4%
Income Before Taxes		387,976		316,231		22.7%		1,908,929		1,486,881		28.4%
NET INCOME		342,629		268,865		27.4%		1,380,281		1,073,508		28.6%

Notes:

1) Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

2) The economic-financial performance tables by distributor are annexed to this report in item 10.2

Operating Revenue

Gross operating revenue in 4Q07 was R$ 3,454 million, representing growth of 14.4% (R$ 434 million), with net operating revenue at R$ 2,317 million, equivalent to growth of 21.5% (R$ 410 million).

The main contributing factors to this growth in operating revenue were:

(i) An increase of 11.2% in sales to the captive market due mainly to organic growth in the concession area and the acquisitions of Santa Cruz and CMS Energy Brasil;

(ii) Readjustment of distributor tariffs: CPFL Paulista (7.06%) and RGE (6.05%), in April, 2007;

(iii) Increase in other revenues of R$ 195 million, mainly due to the increases of R$ 136 million at CPFL Paulista and R$ 53 million at CPFL Piratininga, resulting from the write-down of the balance of free energy liability, due to the termination of RTE charges in 4Q07. (In compensation, the asset write-down was registered in the account “other operating expenses” and the liability write-down in “other operating revenues”, without affecting the net income)

In 2007, gross operating revenue reached R$ 12,980 million, representing growth of 15.3% (R$ 1,726 million). At the same time, net operating revenue was R$ 8,382 million, equivalent to growth of 18.7% (R$ 1,322 million).

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Cost of Electric Power

The cost of electric power comprised of the cost of power for resale and the charges for the use of the transmission and distribution system totaled R$ 1,270 million in 4Q07, representing an increase of 12.0% (R$ 136 million):

• The cost of purchased energy for resale in 4Q07 was R$ 1,101 million, which represents an increase of 16.9% (R$ 159 million). The main contributing factors to this variation are:

(i) An increase of 14.1% (R$ 139 million) in the cost of purchased power in the regulated and free contracting ambient:

(ii) The net effect of the recalculation of IRT 2005/2006 and the Amortization and Deferral of CVA (R$ 54 million). The IRT recalculation is a non-recurring event, which does not affect the net income, although it is included in the item Amortization and Deferral of CVA.

The increase in the cost of purchased power was partially offset by the following factors:

(i) PIS and Cofins tax credits, generated by the purchase of power (R$ 13 million);

(ii) An increase in the item Power Surplus and Shortage, which represented a cost of R$ 4 million in 4Q06 but now represents revenue of R$ 17 million in 4Q07, with the resultant cost reduction of R$ 21 million.

• Charges for the use of the transmission and distribution system reached R$ 169 million in 4Q07, a reduction of 12.1% (R$ 23 million), due to the R$ 35 million reduction in the amount referring to the net effect of the amortization and deferral of CVA.

Operating Costs and Expenses

Operating costs and expenses reached R$ 529 million in 4Q07, registering an increase of 59.7% (R$ 198 million).

Disregarding the effects of the Santa Cruz and CMS Energy Brasil acquisitions, and the null and non-recurring effect from the write-down of the free energy assets at CPFL Paulista and CPFL Piratininga, the total operating costs and expenses in 4Q07 would have been R$ 319 million, a reduction of 3.6% (R$ 12 million).

The main contributing factors to this variation in operating costs and expenses are:

(i) The item PMSO registered an increase of 77.1% (R$ 197 million). Disregarding the effects mentioned above, PMSO would have been R$ 243 million, a reduction of 4.8%.

The variation of PMSO resulted from the following factors:

•  Spending on personnel registered an increase of 14.4% (R$ 14 million), due mainly to the acquisition of Santa Cruz and CMS Energy Brasil (R$ 10 million);

•  Spending on outsourced services was up 28.8% (R$ 18 million), due to, among other factors, the acquisitions of Santa Cruz and CMS Energy Brasil (R$ 7 million), and the increase in outsourced services at CPFL Piratininga (R$ 6 million). This increase at CPFL Piratininga is a result of the reclassifications applied in 4Q06, owing to the new classifications requested by ANEEL, in accordance to order No. 3,073 with the resultant alterations in the Public Service Electric Power Accounting Manual. In compensation, this reclassification has been considered in the Operating Revenue deductions;

•  Other operating costs and expenses registered an increase of 219.4% (R$ 168 million), mainly due to the increases of R$ 136 million at CPFL Paulista and R$ 53 million at CPFL Piratininga, resulting from the asset write-down of the free energy balance, due to the end of RTE charges in 4Q07. (In compensation, the asset write-down was registered in “other operating expenses” and the liability write-down in “other operating revenues”, without affecting the net income).

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The increase in spending on personnel, outsourced services and other operating costs/expenses was partially offset by the 14.3% (R$ 3 million) reduction in spending on materials.

Note: PMSO considers Personnel, Material, Outsourced Services and Others 

(ii) The item depreciation and amortization registered an increase of 8.9% (R$ 7 million), mainly due to the acquisitions of Santa Cruz and CMS Energy Brasil (R$ 5 million). 

The increase in operating costs and expenses was partially offset by: 

(i) The Private Pension Fund, which represented revenue of R$ 2 million in 4Q06, but now in 4Q07 represents revenue of R$ 9 million, due mainly to the impact from the expected real earnings of the plan’s assets, as defined by the Actuary Report of December 2006. 

EBITDA

Based on the factors described above, EBITDA, in 4Q07, was R$ 584 million, registering an increase of 16.6% (R$ 83 million).

In 2007, EBITDA was R$ 2,472 million, registering an increase of 22.9% (R$ 461 million).

Financial Result

In 4Q07, the financial result or the net financial expense was R$ 120 million, a variation of 0.4% compared to the net financial expense in 4Q06 (R$ 120 million).

Taxation

In 4Q07, social contribution and income tax were R$ 132 million, an increase of 47.9% (R$ 43 million) compared to 4Q06. This difference is mainly due to the fiscal benefits obtained by the controlled companies CPFL Paulista and CPFL Piratininga in 4Q06, which were higher than that obtained in 4Q07, due to the larger pay-out on interest on own capital (R$ 61 million).

Net Income

Net income in 4Q07 was R$ 343 million, representing an increase of 27.4% (R$ 74 million).

In 2007, net income was R$ 1,380 million, an increase of 28.6% (R$ 307 million).

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9.1.2) Tariff Revisions

The objective of the tariff revision is to reassess the economic-financial equilibrium of the concession and to pass onto the consumers the concessionaire’s productivity gains. Projected sales volume data over the subsequent 12 months are utilized, and each item of controllable costs (Parcel B) is verified, establishing criteria and limits for the definition of efficient costing, using as a parameter a reference company defined by the regulatory authority (ANEEL).

The following table demonstrates the periodicity and the date of the next tariff revision for each CPFL group distributor:

Tariff Revisions
Distribution Company	Period			Date of next Tariff Revision
CPFL Paulista		Each 5 years		April 2008
RGE		Each 5 years		April 2008
CPFL Piratininga		Each 4 years		October 2011
CPFL Santa Cruz		Each 4 years		February 2012
CPFL Jaguariúna
CPFL Leste Paulista		Each 4 years		February 2012
CPFL Jaguari		Each 4 years		February 2012
CPFL Sul Paulista		Each 4 years		February 2012
CPFL Mococa		Each 4 years		February 2012

Second Periodic Tariff Revision

9.1.2.1) CPFL Piratininga

On October 22, 2007, through Homologated Resolution No. 553, Aneel established a provisional result for the second periodic tariff revision for CPFL Piratininga, to take effect from October 23, 2007.

In this second cycle of tariff revisions, the CPFL Piratininga electric power tariffs were readjusted by -10,11%, of which -10.94% referred to tariff repositioning and +0,83% referred to financial components outside the scope of the periodic tariff revision.

The preliminary value of Factor Xe established by Aneel was 0.73%, to be applied as a reduction factor in Parcel B in real terms, on the next tariff readjustments.

9.1.2.2) CPFL Santa Cruz and CPFL Jaguariúna Distributors

On January 29, 2008, Aneel established the provisional result of the second periodic tariff revision of five distributors of the CPFL Group, to take effect from February 3, 2008. The distributors that had their revisions announced on this date were: CPFL Santa Cruz and the four CPFL Jaguariúna distributors, namely; Companhia Paulista de Energia Elétrica (CPFL Leste Paulista), Companhia Jaguari de Energia (CPFL Jaguari), Companhia Sul Paulista de Energia (CPFL Sul Paulista) and Companhia Luz e Força Mococa (CPFL Mococa).

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CPFL Santa Cruz

In this second cycle of tariff revisions, the electric power tariff revisions of CPFL Santa Cruz were readjusted by -7.13%, of which -9.73% referred to tariff repositioning and +2.60% referred to financial components outside the periodic tariff revision.

The value of factor Xe, established by Aneel was 0.22%, to be applied as a reduction factor in Parcel B in real terms, on the next tariff readjustments.

CPFL Leste Paulista

The electric power tariffs of CPFL Leste Paulista were readjusted by -1,65%, of which -2,69% referred to tariff repositioning and +1,04% referred to financial components outside the periodic tariff revision.

The value of factor Xe, established by Aneel was 1.07%, to be applied as a reduction factor in Parcel B, in real terms, on the next tariff readjustments.

CPFL Jaguari

The electric power tariffs of CPFL Jaguari were readjusted by -1.58%, of which -0.35% referred to tariff repositioning and -1.23% referred to financial components outside the periodic tariff revision.

The value of factor Xe, established by Aneel was 2.10%, to be applied as a reduction factor in Parcel B, in real terms, on the next tariff readjustments.

CPFL Sul Paulista

The electric power tariffs of CPFL Sul Paulista were readjusted by –3.57%, of which -2.98% referred to tariff repositioning and -0.58% referred to financial components outside the periodic tariff revision.

The value of factor Xe, established by Aneel was 1.3%, to be applied as a reduction factor in Parcel B, in real terms, on the next tariff readjustments.

CPFL Mococa

The electric power tariffs of CPFL Mococa were readjusted by –5.65%, of which -8.4% referred to tariff repositioning and +2.75% referred to financial components outside the periodic tariff revision.

The value of factor Xe, established by Aneel was 0.24%, to be applied as a reduction factor in Parcel B, in real terms, on the next tariff readjustments.

9.1.2.3) CPFL Paulista

On February 27, 2008, Aneel held the Public Audience regarding the second cicle of CPFL Paulista tariff review, which is part of the distributors tariff review process. The repositioning index, which is still preliminary, was -10.28%, including financial components.

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9.1.2.4) RGE

On February 13, 2008, Aneel announced the provisional repositioning index of the RGE second periodic tariff revision. The index, which is still preliminary was 1.44%, including financial components. A Public Audience is scheduled for March 13, 2008.

The items that make up the readjustments authorized by Aneel are shown, for each distributor, in the table below:

Date of the Second Tariff Review		Oct/07		Feb/08		Feb/08		Feb/08		Feb/08		Feb/08
Amounts by Company (R$ Million)		CPFL  Piratininga		CPFL Santa  Cruz		CPFL Jaguariúna
						CPFL Leste  Paulista		CPFL  Jaguari		CPFL Sul  Paulista		CPFL  Mococa
Verified Revenue		2,136.9		213.3		77.1		88.0		92.4		54.1
Parcel A		1,423.9		124.3		42.9		68.6		58.7		31.0
Parcel B
Reference Company		244.2		42.6		16.6		11.8		19.6		13.4
Delinquency		12.6		1.5		0.2		0.2		0.2		0.1
Gross Remuneration Base		154.5		14.9		11.7		4.9		7.7		3.7
Depreciation		81.1		10.6		4.3		2.5		4.2		1.8
Total Parcel B		492.5		69.5		32.8		19.4		31.8		19.0
Required Revenue (Parcels A + B)		1,916.4		193.8		75.6		88.0		90.5		50.0
(-) Other Revenues		(13.2)		(1.3)		(0.6)		(0.3)		(0.9)		(0.4)
Net Required Revenue		1,903.2		192.5		75.1		87.7		89.6		49.6
Financial Components		15.8		5.0		0.8		(1.1)		(0.5)		1.4
Periodic Tariff Revision		-10.94%		-9.73%		-2.69%		-0.35%		-2.98%		-8.40%
Financial Components		0.83%		2.60%		1.04%		-1.23%		-0.58%		2.75%
Periodic Tariff Revision - with Financial Components		-10.11%		-7.13%		-1.65%		-1.58%		-3.57%		-5.65%
Xe Factor		0.73%		0.22%		1.07%		2.10%		1.30%		0.24%

9.2) Commercialization Segment

Consolidated Income Statement - CPFL BRASIL (R$ Thousands)
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		480,361		476,357		0.8%		1,881,337		1,831,155		2.7%
Net Operating Revenues		407,472		409,070		-0.4%		1,612,421		1,578,150		2.2%
EBITDA		76,474		62,559		22.2%		356,575		275,890		29.2%
NET INCOME		50,817		41,290		23.1%		241,315		188,398		28.1%

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

Operating Revenue

In 4Q07, gross operating revenue was R$ 480 million, representing growth of 0.8% (R$ 4 million), and net operating revenue reached R$ 407 million, a reduction of 0.4% (R$ 2 million).

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In 2007, gross operating revenue was R$ 1,881 million, an increase of 2.7% (R$ 50 million), while net operating revenue was R$ 1,612 million, an increase of 2.2% (R$ 34 million).

EBITDA

In 4Q07, EBITDA was R$ 76 million, registering an increase of 22.2% (R$ 14 million).
In 2007, EBITDA was R$ 357 million, an increase of 29.2% (R$ 81 million).

Net Income

In 4Q07, net income was R$ 51 million, registering an increase of 23.1% (R$ 10 million).
In 2007, net income was R$ 241 million, an increase of 28.1% (R$ 53 million).

9.3) Generation Segment

Consolidated Income Statement - Generation (R$ Thousands)
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		194,168		143,897		34.9%		718,626		506,223		42.0%
Net Operating Revenues		177,022		143,009		23.8%		663,397		510,904		29.8%
Cost of Electric Power		(12,984)		(6,497)		99.8%		(32,236)		(18,678)		72.6%
Operating Costs & Expenses		(43,065)		(27,260)		58.0%		(155,942)		(95,973)		62.5%
EBIT		120,973		109,252		10.7%		475,219		396,253		19.9%
EBITDA		138,432		119,706		15.6%		545,288		436,839		24.8%
Financial Income (Expense)		(70,793)		(35,394)		100.0%		(224,948)		(137,121)		64.1%
Operating Income		50,180		73,858		-32.1%		250,271		259,132		-3.4%
Income Before Taxes		50,154		73,634		-31.9%		249,486		258,202		-3.4%
NET INCOME		69,906		47,822		46.2%		281,810		165,252		70.5%

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

Operating Revenue

Gross operating revenue in 4Q07 was R$ 194 million, representing growth of 34.9% (R$ 50 million), due mainly to the operational start-up of the Campos Novos plant (Enercan), in February 2007, contributing with R$ 46 million and 555 GWh.

Net operating revenue reached R$ 177 million, representing growth of 23.8% (R$ 34 million).

In 2007, gross operating revenue was R$ 719 million, an increase of 42.0% (R$ 212 million). Net operating revenue reached R$ 663 million, up 29.8% (R$ 152 million).

Cost of Electric Power

The cost of electric power service in 4Q07 was R$ 13 million, representing an increase of 99.8% (R$ 6 million), mostly a result of the start of operations at Enercan (R$ 4 million).

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Operating Costs and Expenses

Operating costs and expenses in 4Q07 were R$ 43 million, representing an increase of 58.0% (R$ 16 million). The main reasons for this variation are:

(i)	Increase of 72.9% (R$ 8 million) in the item Depreciation and Amortization, resulting from the merger of the controlled company Semesa with CPFL Geração (merger goodwill);
(ii)	Increase of 172.9% (R$ 7 million) in expenditure on other operating costs, mainly a result of the stock participation in Paulista Lajeado, which was acquired with CMS Energy Brasil assets (R$ 4 million), and the operational start-up of Enercan (R$ 3 million);
(iii)	Increase of 18.7% (R$ 1 million) in outsourced service spending, due mainly to the start-up of Enercan.

EBITDA

Based on the above data, EBITDA, in 4Q07, was R$ 138 million, an increase of 15.6% (R$ 19 million).

In 2007, EBITDA was R$ 545 million, registering an increase of 24.8% (R$ 108 million).

Financial Result

In 4Q07, the financial result, or the net financial expense was, R$ 71 million, against the result of R$ 35 million in 4Q06, due mainly to the payment of interest on capital, in the amount of R$ 35 million.

Net Income

In 4Q07, net income was R$ 70 million, an increase of 46.2% (R$ 22 million).
In 2007, net income was R$ 282 million, an increase of 70.5% (R$ 117 million).

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Status of Generation Projects

Castro Alves Hydroelectric Facility (Ceran Complex)

The Castro Alves Hydroelectric Plant is currently in the final stages of construction (completed: 99% of civil works, 100% of equipment supply and 88% of electro-mechanical installation). The start of commercial operation is forecast for 1Q08. CPFL’s participation in this undertaking is 65%, which represents installed capacity and secured power of 84.5 MW and 41.6 median MW, respectively.

On January 16, 2008, the Companhia Energética Rio das Antas (Ceran) started to fill the reservoir which will permit the start of plant operations.

14 de Julho Hydroelectric Facility (Ceran Complex)

The 14 de Julho Hydroelectric Plant is still in the construction phase (79% of works completed). The start of commercial operations of this plant is forecast for 4Q08. CPFL’s participation in this undertaking is 65%, which represents installed capacity and secured power of 65.0 MW and 32.5 median MW, respectively.

Foz do Chapecó Hydroelectric Facility

The Foz do Chapecó Hydroelectric Plant is currently in the early stages of construction (24% of works completed). The start of commercial operation is forecast for 3Q10. CPFL’s participation in this undertaking is 51%, which represents installed capacity and secured power of 436.1 MW and 220.3 median MW, respectively.

Power from the Foz do Chapecó Hydroelectric Plant is already 100% contracted:

•	172.8 median MW already contracted by the CPFL Group at a price close to 100% of the Standard Value;
•	47.5 median MW (11% acquired in August 2006) sold on the ANEEL auction at the price of R$ 131.49/MWh.

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10) ANNEXES

10.1) Sales to the Captive Market by Distributors
(In GWh)

Sales to the Captive Market by Distribution Segment - GWh
CPFL Paulista
		4Q07		4Q06		Var.		2007		2006		Var.
Residential		1,575		1,467		7.4%		6,111		5,711		7.0%
Industrial		1,446		1,445		0.1%		5,557		5,737		-3.1%
Commercial		1,000		931		7.5%		3,767		3,528		6.8%
Rural		310		262		18.2%		1,061		1,026		3.4%
Others		615		587		4.7%		2,372		2,294		3.4%
Total		4,946		4,691		5.4%		18,868		18,295		3.1%
CPFL Piratininga
		4Q07		4Q06		Var.		2007		2006		Var.
Residential		658		621		5.9%		2,644		2,485		6.4%
Industrial		753		745		1.1%		2,945		2,943		0.1%
Commercial		399		377		5.7%		1,550		1,465		5.8%
Rural		46		43		7.4%		180		173		3.9%
Others		174		171		2.0%		696		674		3.2%
Total		2,030		1,957		3.7%		8,015		7,742		3.5%
RGE
		4Q07		4Q06		Var.		2007		2006		Var.
Residential		403		382		5.6%		1,612		1,492		8.0%
Industrial		637		638		-0.2%		2,507		2,547		-1.6%
Commercial		235		217		8.4%		936		849		10.3%
Rural		240		223		7.6%		955		897		6.4%
Others		220		224		-1.8%		875		876		-0.1%
Total		1,735		1,684		3.0%		6,886		6,661		3.4%
CPFL Santa Cruz
		4Q07		4Q06		Var.		2007		2006		Var.
Residential		64		61		5.3%		254		238		6.8%
Industrial		33		31		6.4%		129		126		2.9%
Commercial		32		29		7.7%		123		112		9.5%
Rural		48		44		8.8%		180		164		10.3%
Others		32		31		4.4%		124		120		3.8%
Total		209		197		6.5%		810		759		6.8%
CPFL Jaguariúna
		4Q07		4Q06		Var.		2007		2006		Var.
Residential		73		69		4.9%		289		276		5.0%
Industrial		134		127		5.0%		520		482		7.8%
Commercial		33		31		5.9%		125		119		5.0%
Rural		66		56		18.2%		247		244		1.4%
Others		31		30		3.4%		121		118		2.4%
Total		335		313		7.3%		1,301		1,238		5.1%

Note: Sales volume on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated and consolidated by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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10.2) Economic-Financial Performance by Distributors (Pro-forma)
(R$ Thousands)

Income Statement Summary by Distribution Company (R$ Thousands)(1)

CPFL PAULISTA
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		1,893,228		1,646,470		15.0%		6,868,418		6,298,146		9.1%
Net Operating Revenues		1,270,755		1,060,313		19.8%		4,460,696		4,021,086		10.9%
Cost of Electric Power		(641,650)		(623,503)		2.9%		(2,421,859)		(2,348,156)		3.1%
Operating Costs & Expenses		(301,691)		(189,128)		59.5%		(743,051)		(650,152)		14.3%
EBIT		327,414		247,682		32.2%		1,295,786		1,022,778		26.7%
EBITDA		358,217		284,718		25.8%		1,419,139		1,179,390		20.3%
Financial Income (Expense)		(29,260)		(81,727)		-64.2%		(117,638)		(169,156)		-30.5%
Operating Income		298,154		209,067		42.6%		1,178,148		950,691		23.9%
Income Before Taxes		297,243		208,215		42.8%		1,177,110		956,446		23.1%
NET INCOME		212,056		197,642		7.3%		818,889		767,347		6.7%
CPFL PIRATININGA
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		782,651		752,806		4.0%		3,174,524		2,891,233		9.8%
Net Operating Revenues		519,136		464,296		11.8%		1,976,945		1,760,727		12.3%
Cost of Electric Power		(300,350)		(266,403)		12.7%		(1,152,047)		(977,158)		17.9%
Operating Costs & Expenses		(120,985)		(66,295)		82.5%		(309,526)		(267,526)		15.7%
EBIT		97,801		131,598		-25.7%		515,372		516,043		-0.1%
EBITDA		107,963		143,855		-25.0%		562,652		566,779		-0.7%
Financial Income (Expense)		(10,366)		(22,182)		-53.3%		(43,687)		(36,991)		18.1%
Operating Income		87,435		109,416		-20.1%		471,685		479,052		-1.5%
Income Before Taxes		85,617		107,750		-20.5%		468,051		474,427		-1.3%
NET INCOME		63,725		71,223		-10.5%		323,088		306,161		5.5%
RGE
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		598,854		621,414		-3.6%		2,454,227		2,067,635		18.7%
Net Operating Revenues		402,406		383,774		4.9%		1,612,047		1,281,402		25.8%
Cost of Electric Power		(262,268)		(244,023)		7.5%		(1,016,181)		(820,862)		23.8%
Operating Costs & Expenses		(80,755)		(76,330)		5.8%		(273,978)		(241,873)		13.3%
EBIT		59,383		63,421		-6.4%		321,888		218,667		47.2%
EBITDA		78,481		82,907		-5.3%		393,615		288,874		36.3%
Financial Income (Expense)		(78,351)		(15,919)		392.2%		(124,847)		(54,993)		127.0%
Operating Income		(18,968)		47,502		-139.9%		197,041		163,674		20.4%
Income Before Taxes		(26,901)		43,378		-162.0%		174,319		153,077		13.9%
NET INCOME		40,484		53,676		-24.6%		172,575		120,626		43.1%

Note: (1)

Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia  consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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Income Statement Summary by Distribution Company (R$ Thousands)(1)

CPFL SANTA CRUZ
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		72,332		67,491		7.2%		273,647		253,395		8.0%
Net Operating Revenues		51,630		53,384		-3.3%		190,511		168,655		13.0%
Cost of Electric Power		(24,777)		(24,841)		-0.3%		(99,517)		(91,227)		9.1%
Operating Costs & Expenses		(12,957)		(19,952)		-35.1%		(48,899)		(46,490)		5.2%
EBIT		13,896		8,591		61.8%		42,095		30,938		36.1%
EBITDA		16,223		11,086		46.3%		50,957		40,140		26.9%
Financial Income (Expense)		(3,315)		1,532		-316.4%		4,826		3,599		34.1%
Operating Income		10,581		10,122		4.5%		46,921		34,537		35.9%
Income Before Taxes		10,496		9,874		6.3%		46,263		33,709		37.2%
NET INCOME		12,788		6,620		93.2%		38,038		22,293		70.6%

CPFL JAGUARINA(2)
		4Q07		4Q06		Var.		2007		2006		Var.
Gross Operating Revenues		109,569		96,496		13.5%		409,932		368,341		11.3%
Net Operating Revenues		75,806		61,722		22.8%		279,315		236,839		17.9%
Cost of Electric Power		(42,342)		(32,753)		29.3%		(149,483)		(129,591)		15.3%
Operating Costs & Expenses		(12,834)		(12,154)		5.6%		(64,744)		(53,718)		20.5%
EBIT		20,630		16,815		22.7%		65,088		53,530		21.6%
EBITDA		23,190		19,360		19.8%		75,756		63,532		19.2%
Financial Income (Expense)		1,037		(7,183)		-114.4%		4,406		(12,744)		-134.6%
Operating Income		21,667		9,632		125.0%		69,494		40,786		70.4%
Income Before Taxes		21,521		9,656		122.9%		69,551		41,352		68.2%
NET INCOME		13,674		14,120		-3.2%		44,765		42,840		4.5%

Notes:
(1)		Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization)as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.
(2)		CPFL Jaguariúna = pro forma information referring to the consolidated of the distributors: CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa.

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10.3) Statement of Assets – CPFL Energia
(R$ Thousands)

		Consolidated
ASSETS		12/31/2007		09/30/2007
CURRENT ASSETS
Cash and Banks		1,106,308		389,611
Consumers, Concessionaries and Licensees		1,817,788		2,006,111
Financial Investments		35,039		33,007
Recoverable Taxes		181,754		182,050
Allowance for Doubtful Accounts		(95,639)		(102,424)
Prepaid Expenses		202,721		209,233
Deferred Taxes		168,485		189,158
Materials and Supplies		14,812		15,874
Deferred Tariff Cost Variations		532,449		556,668
Derivative Contracts		995		282
Other Credits		111,352		114,836
TOTAL CURRENT ASSETS		4,076,064		3,594,406
NON-CURRENT ASSETS
Long-Term Liabilities
Consumers, Concessionaries and Licensees		215,014		203,798
Judicial Deposits		498,044		477,934
Financial Investments		97,521		97,757
Recoverable Taxes		99,947		98,821
Prepaid Expenses		43,111		49,683
Deferred Taxes		1,163,976		1,147,288
Deferred Tariff Cost Variations		205,894		259,282
Derivative Contracts		-		44
Other Credits		231,820		154,869
		2,555,327		2,489,476
Permanent Assets
Investments		2,705,692		2,781,957
Property, Plant and Equipment		7,115,143		6,936,297
Special Obbligation Linked to Concession		(919,097)		(891,250)
Deferred Charges		62,640		56,468
		8,964,378		8,883,472
TOTAL NON-CURRENT ASSETS		11,519,705		11,372,948
TOTAL ASSETS		15,595,769		14,967,354

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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10.4) Statement of Liabilities – CPFL Energia
(R$ Thousands)

		Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY		12/31/2007		09/30/2007
LIABILITIES
CURRENT LIABILITIES
Suppliers		867,954		871,745
Accrued Interest on Debts		59,135		65,100
Accrued Interest on Debentures		71,524		71,547
Loans and Financing		862,705		1,284,852
Debentures		154,617		143,329
Employee Pension Plans		64,484		82,231
Regulatory Charges		68,696		79,347
Taxes and Social Contributions		604,093		630,237
Dividends and Interest on Equity		743,628		22,828
Accrued Liabilities		43,987		56,590
Deferred Tariff Gains Variations		230,038		227,039
Derivative Contracts		18,187		17,973
Other Accounts Payable		427,723		455,939
TOTAL CURRENT LIABILITIES		4,217,536		4,008,757
NON-CURRENT LIABILITIES
Suppliers		223		699
Accrued Interest on Debts		26,057		21,163
Loans and Financing		2,865,104		2,671,603
Debentures		2,208,472		1,730,890
Employee Pension Plans		656,040		676,354
Taxes and Social Contributions		16,529		20,771
Reserve for Contingencies		116,412		107,861
Deferred Tariff Gains Variations		68,389		62,125
Derivative Contracts		158,552		138,329
Other Accounts Payable		219,492		135,159
TOTAL NON-CURRENT LIABILITIES		6,335,270		5,564,954
NON-CONTROLLING SHAREHOLDERS' INTEREST		88,129		98,927
SHAREHOLDERS' EQUITY
Capital		4,741,175		4,734,790
Capital Reserves		16		16
Profit Reserves		213,643		131,471
Retained Earnings		-		428,439
TOTAL SHAREHOLDERS' EQUITY		4,954,834		5,294,716
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		15,595,769		14,967,354

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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10.5) Income Statement – CPFL Energia
(R$ Thousands)

Consolidated
		4Q07		4Q06		Variation		2007		2006		Variation
OPERATING REVENUES
Eletricity Sales to Final Consumers		3,174,518		2,929,045		8.38%		12,355,216		10,899,280		13.36%
Eletricity Sales to Distributors		197,301		124,058		59.04%		682,942		500,529		36.44%
Other Operating Revenues		457,585		226,784		101.77%		1,169,226		827,243		41.34%
		3,829,404		3,279,887		16.75%		14,207,384		12,227,052		16.20%
DEDUCTIONS FROM OPERATING REVENUES		(1,201,097)		(1,147,174)		4.70%		(4,797,849)		(4,315,102)		11.19%
NET OPERATING REVENUES		2,628,307		2,132,713		23.24%		9,409,535		7,911,950		18.93%
COST OF ELETRIC ENERGY SERVICES
Eletricity Purchased for Resale		(1,145,472)		(954,410)		20.02%		(4,052,280)		(3,419,197)		18.52%
Eletricity Network Usage Charges		(174,635)		(194,256)		-10.10%		(702,781)		(774,077)		-9.21%
		(1,320,107)		(1,148,666)		14.93%		(4,755,061)		(4,193,274)		13.40%
OPERATING COSTS AND EXPENSES
Personnel		(120,892)		(104,888)		15.26%		(434,046)		(397,910)		9.08%
Material		(21,230)		(22,520)		-5.73%		(59,409)		(66,884)		-11.18%
Outsourced Services		(103,185)		(80,846)		27.63%		(348,000)		(277,674)		25.33%
Other Operating Costs/Expenses		(263,601)		(84,413)		212.28%		(432,291)		(236,831)		82.53%
Employee Pension Plans		8,914		1,942		359.01%		45,973		7,522		511.19%
Depreciation and Amortization		(99,125)		(84,387)		17.46%		(386,651)		(323,338)		19.58%
Merged Goodwill Amortization		(3,860)		(3,756)		2.77%		(18,501)		(12,962)		42.73%
		(602,979)		(378,868)		59.15%		(1,632,925)		(1,308,077)		24.83%
EBITDA		780,994		684,076		14.17%		3,344,887		2,789,041		19.93%
EBIT		705,221		605,179		16.53%		3,021,549		2,410,599		25.34%
FINANCIAL INCOME (EXPENSE)
Financial Income		102,317		113,445		-9.81%		380,013		637,635		-40.40%
Financial Expenses		(229,521)		(232,063)		-1.10%		(894,260)		(926,980)		-3.53%
Interest on Equity		(141)		-				(141)		-
		(127,345)		(118,618)		7.36%		(514,388)		(289,345)		77.78%
OPERATING INCOME		577,876		486,561		18.77%		2,507,161		2,121,254		18.19%
NONOPERATING INCOME (EXPENSE)
Nonoperating Income		1,280		2,370		-45.99%		6,387		73,877		-91.35%
Nonoperating Expenses		(17,128)		(9,595)		78.51%		(37,034)		(24,040)		54.05%
		(15,848)		(7,225)		119.35%		(30,647)		49,837		-161.49%
INCOME BEFORE TAXES ON INCOME		562,028		479,336		17.25%		2,476,514		2,171,091		14.07%
Social Contribution		(54,733)		(29,258)		87.07%		(232,473)		(187,818)		23.78%
Income Tax		(132,364)		(96,506)		37.16%		(595,552)		(546,445)		8.99%
INCOME BEFORE EXTRAORDINARY ITEM AND NON-
CONTROLLING SHAREHOLDERS' INTEREST		374,931		353,572		6.04%		1,648,489		1,436,828		14.73%
Non-Controlling Shareholders' Interest		(2,450)		(79)		0.00%		(5,194)		(173)		0.00%
Extraordinary Item net of Tax Effects		-		(8,139)		0.00%		-		(32,559)		0.00%
Reversal of Interest on Equity		141		-				141		-
NET INCOME		372,622		345,354		7.90%		1,643,436		1,404,096		17.05%
EARNINGS PER SHARE (R$)		0.78		0.72		7.86%		3.42		2.93		17.01%

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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10.6) Income Statement – Distribution - Consolidated (Pro-forma)
(R$ Thousands)

Consolidated
		4Q07		4Q06		Variation		2007		2006		Variation
OPERATING REVENUES
Eletricity Sales to Final Consumers		3,021,122		2,784,421		8.50%		11,810,914		10,393,848		13.63%
Eletricity Sales to Distributors		19,445		17,376		11.91%		66,903		58,853		13.68%
Other Operating Revenues		413,497		218,017		89.66%		1,101,730		800,511		37.63%
		3,454,064		3,019,814		14.38%		12,979,547		11,253,212		15.34%
DEDUCTIONS FROM OPERATING REVENUES		(1,136,814)		(1,112,226)		2.21%		(4,597,449)		(4,193,447)		9.63%
NET OPERATING REVENUES		2,317,250		1,907,588		21.48%		8,382,098		7,059,765		18.73%
COST OF ELETRIC ENERGY SERVICES
Eletricity Purchased for Resale		(1,100,549)		(941,517)		16.89%		(4,083,627)		(3,379,250)		20.84%
Eletricity Network Usage Charges		(169,066)		(192,412)		-12.13%		(682,996)		(766,926)		-10.94%
		(1,269,615)		(1,133,929)		11.97%		(4,766,623)		(4,146,176)		14.96%
OPERATING COSTS AND EXPENSES
Personnel		(108,603)		(94,940)		14.39%		(391,373)		(363,291)		7.73%
Material		(17,944)		(20,936)		-14.29%		(51,758)		(61,001)		-15.15%
Outsourced Services		(81,002)		(62,915)		28.75%		(282,794)		(227,857)		24.11%
Other Operating Costs/Expenses		(245,119)		(76,746)		219.39%		(388,714)		(216,930)		79.19%
Employee Pension Plans		8,914		1,942		359.01%		45,973		7,522		511.19%
Depreciation and Amortization		(80,132)		(73,607)		8.86%		(312,169)		(281,582)		10.86%
Merged Goodwill Amortization		(4,625)		(3,756)		23.14%		(18,501)		(12,962)		42.73%
		(528,511)		(330,958)		59.69%		(1,399,336)		(1,156,101)		21.04%
EBITDA		583,976		500,916		16.58%		2,472,332		2,011,486		22.91%
EBIT		519,124		442,701		17.26%		2,216,139		1,757,488		26.10%
FINANCIAL INCOME (EXPENSE)
Financial Income		87,481		101,423		-13.75%		323,259		504,168		-35.88%
Financial Expenses		(121,019)		(160,751)		-24.72%		(481,427)		(623,308)		-22.76%
Interest on Equity		(86,717)		(60,500)		43.33%		(120,955)		(142,000)		-14.82%
		(120,255)		(119,828)		0.36%		(279,123)		(261,140)		6.89%
OPERATING INCOME		398,869		322,873		23.54%		1,937,016		1,496,348		29.45%
NONOPERATING INCOME (EXPENSE)
Nonoperating Income		1,271		2,330		-45.45%		2,995		11,032		-72.85%
Nonoperating Expenses		(12,164)		(8,972)		35.58%		(31,082)		(20,499)		51.63%
		(10,893)		(6,642)		64.00%		(28,087)		(9,467)		196.68%
INCOME BEFORE TAXES ON INCOME		387,976		316,231		22.69%		1,908,929		1,486,881		28.38%
Social Contribution		(37,153)		(22,859)		62.53%		(172,656)		(131,376)		31.42%
Income Tax		(94,813)		(66,365)		42.87%		(476,530)		(368,126)		29.45%
INCOME BEFORE EXTRAORDINARY ITEM AND NON-
CONTROLLING SHAREHOLDERS' INTEREST		256,010		227,007		12.78%		1,259,743		987,379		27.58%
Extraordinary Item net of Tax Effects		-		(8,078)		100.00%		-		(32,314)		100.00%
Non-Controlling Shareholders' Interest		(98)		(10,564)		-99.07%		(417)		(23,557)		-98.23%
Reversal of Interest on Equity		86,717		60,500		43.33%		120,955		142,000		-14.82%
NET INCOME		342,629		268,865		27.44%		1,380,281		1,073,508		28.58%

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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10.7) Income Statement – Generation – Consolidated (Pro-forma)
(R$ Thousands)

Consolidated
		4Q07		4Q06		Variation		2007		2006		Variation
OPERATING REVENUES
Eletricity Sales to Final Consumers		787		880		-10.57%		3,438		1,777		93.47%
Eletricity Sales to Distributors		163,923		141,168		16.12%		681,260		498,917		36.55%
Other Operating Revenues		29,458		1,849		1493.19%		33,928		5,529		513.64%
		194,168		143,897		34.94%		718,626		506,223		41.96%
DEDUCTIONS FROM OPERATING REVENUES		(17,146)		(888)		1830.86%		(55,229)		4,681		-1279.85%
NET OPERATING REVENUES		177,022		143,009		23.78%		663,397		510,904		29.85%
COST OF ELETRIC ENERGY SERVICES
Eletricity Purchased for Resale		(5,770)		(3,876)		48.86%		(7,608)		(8,862)		-14.15%
Eletricity Network Usage Charges		(7,214)		(2,621)		175.24%		(24,628)		(9,816)		150.90%
		(12,984)		(6,497)		99.85%		(32,236)		(18,678)		72.59%
OPERATING COSTS AND EXPENSES
Personnel		(5,390)		(5,840)		-7.71%		(21,367)		(19,492)		9.62%
Material		(507)		(577)		-12.13%		(2,039)		(1,615)		26.25%
Outsourced Services		(6,959)		(5,863)		18.69%		(28,457)		(21,931)		29.76%
Other Operating Costs/Expenses		(11,742)		(4,302)		172.94%		(31,279)		(11,419)		173.92%
Employee Pension Plans		-		-				-		-
Depreciation and Amortization		(18,467)		(10,678)		72.94%		(72,800)		(41,516)		75.35%
Merged Goodwill Amortization		-		-				-		-
		(43,065)		(27,260)		57.98%		(155,942)		(95,973)		62.49%
EBITDA		138,432		119,706		15.64%		545,288		436,839		24.83%
EBIT		120,973		109,252		10.73%		475,219		396,253		19.93%
FINANCIAL INCOME (EXPENSE)
Financial Income		13,915		5,074		174.24%		24,596		25,723		-4.38%
Financial Expenses		(49,879)		(40,468)		23.26%		(178,489)		(162,844)		9.61%
Interest on Equity		(34,829)		-		100.00%		(71,055)		-		100.00%
		(70,793)		(35,394)		100.02%		(224,948)		(137,121)		64.05%
OPERATING INCOME		50,180		73,858		-32.06%		250,271		259,132		-3.42%
NONOPERATING INCOME (EXPENSE)
Nonoperating Income		24		25		-4.00%		29		83		-65.06%
Nonoperating Expenses		(50)		(249)		-100.00%		(814)		(1,013)		-100.00%
		(26)		(224)		-88.39%		(785)		(930)		-15.59%
INCOME BEFORE TAXES ON INCOME		50,154		73,634		-31.89%		249,486		258,202		-3.38%
Social Contribution		(3,929)		(6,452)		-39.10%		(20,591)		(22,869)		-9.96%
Income Tax		(10,165)		(19,299)		-47.33%		(16,194)		(69,836)		-76.81%
INCOME BEFORE EXTRAORDINARY ITEM AND NON-
CONTROLLING SHAREHOLDERS' INTEREST		36,059		47,883		-24.69%		212,701		165,497		28.52%
Non-Controlling Shareholders' Interest		(982)		-				(1,946)		-
Extraordinary Item net of Tax Effects		-		(61)				-		(245)
Reversal of Interest on Equity		34,829		-				71,055		-
NET INCOME		69,906		47,822		46.18%		281,810		165,252		70.53%

Note: Financial information on the companies RGE, CPFL Santa Cruz and CPFL Jaguariúna are considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from the following months: June/2006 for RGE, January/2007 for CPFL Santa Cruz and July/2007 for CPFL Jaguariúna.

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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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