cplitr1q10_6k.htm - Provided by MZ Technologies
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of May, 2010

Commission File Number 32297
 

 

CPFL Energy Incorporated
(Translation of Registrant's name into English)

 
Rua Gomes de Carvalho, 1510, 14º andar, cj 1402
CEP 04547-005 - Vila Olímpia, São Paulo – SP
Federative Republic of Brazil
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_________________

.


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Registration with CVM SHOULD not BE CONSTRUED AS AN EVALUATION oF the company.

company management is responsible for the information provided.

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

2 - COMPANY NAME

3 - CNPJ (Federal Tax ID)

01866-0

CPFL ENERGIA S.A.

02.429.144/0001-93

 

 

 

4 - NIRE (State Registration Number)

35300186133

 

01.02 - HEAD OFFICE

 

1 - ADDRESS

Rua Gomes de Carvalho, 1510 -  14º– Cj 2

2 - DISTRICT

Vila Olímpia

3 - ZIP CODE

04547-005

4 - CITY

São Paulo

5 - STATE

SP

6 - AREA CODE

019

7 - TELEPHONE

3756-8018

8 - TELEPHONE

-

9 - TELEPHONE

-

10 - TELEX

 

11 - AREA CODE

019

12 - FAX

3756-8392

13 - FAX

-

14 - FAX

-

 

15 - E-MAIL

ri@cpfl.com.br

 

01.03 - INVESTOR RELATIONS OFFICER (Company Mailing Address)

 

1- NAME

Wilson P. Ferreira Junior

2 – ADDRESS

Rodovia Campinas Mogi-Mirim, 1755, Km 2,5

3 - DISTRICT

Jardim Santana

4 - ZIP CODE

13088-900

5 - CITY

Campinas

6 - STATE

SP

7 - AREA CODE

019

8 - TELEPHONE

3756-8704

9 - TELEPHONE

-

10 - TELEPHONE

-

11 - TELEX

 

12 - AREA CODE

019

13 - FAX

3756-8777

14 - FAX

-

15 - FAX

-

 

16 - E-MAIL

wferreira@cpfl.com.br

 

01.04 –REFERENCE / AUDITOR INFORMATION

 

CURRENT YEAR

CURRENT QUARTER

PREVIOUS QUARTER

1 - BEGINNING

2. END

3 - NUMBER

4 - BEGINNING

5 - END

6 - NUMBER

7 - BEGINNING

8 - END

01.01.2010

12.31.2010

1

01.01.2010

03.31.2010

4

10.01.2009

12.31.2009

 

09 - INDEPENDENT ACCOUNTANT

KPMG Auditores Independentes

10 - CVM CODE

00418-9

11. PARTNER IN CHARGE

Jarib Brisola Duarte Fogaça

12 - CPF (INDIVIDUAL TAX ID)

012.163.378-02

1

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

01.05 - CAPITAL STOCK

 

Number of Shares

(in units)

1 CURRENT QUARTER

03/31/2010

2 PREVIOUS QUARTER

12/31/2009

3 SAME QUARTER PREVIOUS YEAR

03/31/2009

Paid-in Capital

1 – Common

479,910,938

479,910,938

479,910,938

2 – Preferred

0

0

0

3 – Total

479,910,938

479,910,938

479,910,938

Treasury Stock

4 - Common

0

0

0

5 - Preferred

0

0

0

6 – Total

0

0

0

 

01.06 - COMPANY PROFILE

 

1 - TYPE OF COMPANY

Commercial, Industrial and Other

2 - STATUS

Operational

3 - NATURE OF OWNERSHIP

Private National

4 - ACTIVITY CODE

3120– Administration and Participation Company - Electric Energy

5 - MAIN ACTIVITY

Holding

6 - CONSOLIDATION TYPE

Full

7 – TYPE OF INDEPENDENT ACCOUNTANTS REPORT

Unqualified

 

 

01.07 - COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

 

1 – ITEM

2 - CNPJ (Federal Tax ID)

3 - COMPANY NAME

 

01.08 - CASH DIVIDENDS

 

1 – ITEM

2 – EVENT

3 – APPROVAL

4 – TYPE

 

5 - DATE OF PAYMENT

6 - TYPE OF SHARE

7 - AMOUNT PER SHARE

01

AGO/E

04/26/2010

Dividend

04/30/2010

ON (Common shares)

1.3648720650

2

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

 

01.09 - SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR

 

1 - ITEM

2 - DATE OF CHANGE

3 - CAPITAL STOCK

(IN THOUSANDS OF REAIS)

4 - AMOUNT OF CHANGE

(IN THOUSANDS OF REAIS)

5 - NATURE OF CHANGE

7 - NUMBER OF SHARES ISSUED

(IN UNITS)

8 -SHARE PRICE WHEN ISSUED

(IN REAIS)

 

 

 

01.10 - INVESTOR RELATIONS OFFICER

 

 

1- DATE

 

2 – SIGNATURE

 

3

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

02.01 - BALANCE SHEET - ASSETS (in thousands of Brazilian  reais – R$)

 

1 – Code

2 – Description

3 – 03/31/2010

4 – 12/31/2009

1

Total assets

6,611,563

6,229,184

1.01

Current assets

1,223,467

1,230,785

1.01.01

Cash and cash equivalents

217,958

219,126

1.01.02

Credits

1,003,175

1,009,333

1.01.02.01

Accounts receivable

0

0

1.01.02.02

Other receivables

1,003,175

1,009,333

1.01.02.02.01

Dividends and interest on shareholders’ equity

901,882

908,881

1.01.02.02.02

Financial investments

39,615

39,253

1.01.02.02.03

Recoverable taxes

44,763

44,310

1.01.02.02.04

Deferred taxes

16,320

16,320

1.01.02.02.05

Prepaid expenses

317

317

1.01.02.02.06

Derivatives

278

252

1.01.03

Materials and supplies

0

0

1.01.04

Other

2,334

2,326

1.02

Noncurrent assets

5,388,096

4,998,399

1.02.01

Long-term assets

244,727

248,486

1.02.01.01

Other receivables

218,641

223,244

1.02.01.01.01

Financial investments

57,338

62,179

1.02.01.01.02

Recoverable taxes

2,787

2,787

1.02.01.01.03

Deferred taxes

157,200

157,068

1.02.01.01.04

Prepaid expenses

1,119

1,200

1.02.01.01.05

Escrow deposits

197

10

1.02.01.02

Related parties

26,086

25,242

1.02.01.02.01

Associated companies

0

0

1.02.01.02.02

Subsidiaries

26,086

25,242

1.02.01.02.03

Other related parties

0

0

1.02.01.03

Other

0

0

1.02.02

Permanent assets

5,143,369

4,749,913

1.02.02.01

Investments

5,138,834

4,745,444

1.02.02.01.01

Associated companies

0

0

1.02.02.01.02

Associated companies - goodwill

0

0

1.02.02.01.03

Permanent equity interests

3,678,260

3,249,508

1.02.02.01.04

Permanent equity interests - goodwill

1,473,402

1,508,764

1.02.02.01.05

Other investments

0

0

1.02.02.01.06

Permanent equity interests – negative goodwill

(12,828)

(12,828)

1.02.02.02

Property, plant and equipment

125

1

1.02.02.03

Intangible assets

4,410

4,468

1.02.02.04

Deferred charges

0

0

4

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

02.02 - BALANCE SHEET - LIABILITIES (in thousands of Brazilian reais – R$)

 

1 – Code

2 - Description

3 – 03/31/2010

4 – 12/31/2009

2

Total liabilities

6,611,563

6,229,184

2.01

Current liabilities

686,787

695,166

2.01.01

Loans and financing

0

0

2.01.02

Debentures

3,122

12,788

2.01.02.01

Interest on debentures

3,122

12,788

2.01.03

Suppliers

2,665

2,658

2.01.04

Taxes and social contributions payable

178

102

2.01.05

Dividends

672,013

672,053

2.01.06

Reserves

0

0

2.01.07

Related parties

0

0

2.01.08

Other

8,809

7,565

2.01.08.01

Accrued liabilities

100

78

2.01.08.02

Other

8,709

7,487

2.02

Noncurrent liabilities

451,635

451,076

2.02.01

Long-term liabilities

451,635

451,076

2.02.01.01

Loans and financing

0

0

2.02.01.02

Debentures

450,000

450,000

2.02.01.03

Reserves

187

0

2.02.01.03.01

Reserve for contingencies

187

0

2.02.01.04

Related parties

0

0

2.02.01.05

Advance for future capital increase

0

0

2.02.01.06

Other

1,448

1,076

2.02.01.06.01

Derivatives

1,430

1,056

2.02.01.06.02

Other

18

20

2.03

Deferred income

0

0

2.05

Shareholders’ equity

5,473,141

5,082,942

2.05.01

Capital

4,741,175

4,741,175

2.05.02

Capital reserves

16

16

2.05.03

Revaluation reserves

0

0

2.05.03.01

Own assets

0

0

2.05.03.02

Subsidiary/associated companies

0

0

2.05.04

Profit reserves

341,751

341,751

2.05.04.01

Legal reserves

341,751

341,751

2.05.04.02

Statutory reserves

0

0

2.05.04.03

For contingencies

0

0

2.05.04.04

Unrealized profits

0

0

2.05.04.05

Profit retention

0

0

5

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

2.05.04.06

Special reserve for undistributed dividends

0

0

2.05.04.07

Other profit retention

0

0

2.05.05

Equity valuation adjustments

0

0

2.05.05.01

Adjustments of financial investments

0

0

2.05.05.02

Adjustments of cumulative translation

0

0

2.05.05.03

Adjustments of business combinations

0

0

2.05.06

Accumulated profit or loss

390,199

0

2.05.07

Advance for future capital increase

0

0

 

6

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

03.01 - INCOME STATEMENT (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - 01/01/2010 to 03/31/2010

4 - 01/01/2010 to 03/31/2010

5 - 01/01/2009 to 03/31/2009

6 - 01/01/2009 to 03/31/2009

3.01

Gross operating revenues

0

0

0

0

3.02

Deductions

0

0

0

0

3.03

Net operating revenues

0

0

0

0

3.04

Cost of sales and/or services

0

0

0

0

3.05

Gross operating income

0

0

0

0

3.06

Operating income (expense)

390,067

390,067

282,536

282,536

3.06.01

Selling

0

0

0

0

3.06.02

General and administrative

(4,796)

(4,796)

(3,812)

(3,812)

3.06.03

Financial

1,470

1,470

(7,609)

(7,609)

3.06.03.01

Financial income

12,624

12,624

8,230

8,230

3.06.03.02

Financial expense

(11,154)

(11,154)

(15,839)

(15,839)

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expense

(35,362)

(35,362)

(37,187)

(37,187)

3.06.05.01

Amortization of intangible asset of concession

(35,362)

(35,362)

(37,187)

(37,187)

3.06.06

Equity in subsidiaries

428,755

428,755

331,144

331,144

3.07

Operating income

390,067

390,067

282,536

282,536

3.08

Non operating income

0

0

0

0

3.08.01

Income

0

0

0

0

3.08.02

Expense

0

0

0

0

7

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

1 - Code

2 – Description

3 - 01/01/2010 to 03/31/2010

4 - 01/01/2010 to 03/31/2010

5 - 01/01/2009 to 03/31/2009

6 - 01/01/2009 to 03/31/2009

3.09

Income before taxes on income and profit sharing

390,067

390,067

282,536

282,536

3.10

Income tax and social contribution

0

0

0

0

3.11

Deferred income tax

132

132

167

167

3.11.01

Deferred social contribution

23

23

(70)

(70)

3.11.02

Deferred income tax

109

109

237

237

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders equity

0

0

0

0

3.15

Net income

390,199

390,199

282,703

282,703

 

SHARES OUTSTANDING EX-TREASURY STOCK (in units)

479,910,938

479,910,938

479,910,938

479,910,938

 

NET INCOME PER SHARE (Reais)

0.81307

0.81307

0.58907

0.58907

 

NET LOSS PER SHARE (Reais)

 

 

 

 

8

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

04.01 – STATEMENTS OF CASH FLOW – INDIRECT METHOD  (in thousands of Brazilian  reais – R$)

 

1 - Code

2 - Description

3 - 01/01/2010 to 03/31/2010

4 - 01/01/2010 to 03/31/2010

5 - 01/01/2009 to 03/31/2009

6 - 01/01/2009 to 03/31/2009

4.01

Net cash from operating activities

(10,023)

(10,023)

(19,883)

(19,883)

4.01.01

Cash generated from operations

1,203

1,203

(587)

(587)

4.01.01.01

Net income, including income tax and social contribution

390,067

390,067

282,536

282,536

4.01.01.02

Depreciation and amortization

35,392

35,392

37,217

37,217

4.01.01.03

Interest and monetary and exchange restatement

4,499

4,499

10,804

10,804

4.01.01.04

Equity in subsidiaries

(428,755)

(428,755)

(331,144)

(331,144)

4.01.02

Variation on assets and liabilities

(11,226)

(11,226)

(19,296)

(19,296)

4.01.02.01

Dividend and interest on shareholders’ equity received

6,999

6,999

11,000

11,000

4.01.02.02

Recoverable taxes

(453)

(453)

(1,190)

(1,190)

4.01.02.03

Other operating assets

76

76

84

84

4.01.02.04

Suppliers

7

7

(288)

(288)

4.01.02.05

Other taxes and social contributions

76

76

(26)

(26)

4.01.02.06

Interest on debts - paid

(19,398)

(19,398)

(29,818)

(29,818)

4.01.02.07

Other operating liabilities

1,467

1,467

942

942

4.01.03

Other

0

0

0

0

4.02

Net cash in investing activities

9,093

9,093

67,325

67,325

4.02.01

Decrease of capital in subsidiaries

0

0

60,236

60,236

4.02.02

Acquisition of property, plant and equipment

(124)

(124)

0

0

4.02.03

Financial investments

10,060

10,060

9,742

9,742

4.02.04

Acquisition of intangible assets – other

0

0

(29)

(29)

4.02.05

Sale of noncurrent assets

(45)

(45)

(10)

(10)

4.02.06

Intercompany loans with subsidiaries and associated companies

(799)

(799)

(2,614)

(2,614)

9

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

4.02.07

Other

1

1

0

0

4.03

Net cash in financing activities

(238)

(238)

(263)

(263)

4.03.01

Loans, financing and debentures obtained

0

0

0

0

4.03.02

Payment of loans, financing and debentures (principal), net of derivatives

(198)

(198)

(239)

(239)

4.03.03

Dividend and interest on shareholders’ equity paid

(40)

(40)

(24)

(24)

4.04

Exchange variation on cash and cash equivalents

0

0

0

0

4.05

Increase (decrease) in cash and cash equivalents

(1,168)

(1,168)

47,179

47,179

4.05.01

Cash and cash equivalents at beginning of period

219,126

219,126

15,702

15,702

4.05.02

Cash and cash equivalents at end of period

217,958

217,958

62,881

62,881

 

10

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

05.01 –STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

0

341,751

0

0

5,082,942

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

341,751

0

0

5,082,942

5.04

Net income / Loss for the period

0

0

0

0

390,199

0

390,199

5.05

Distribution

0

0

0

0

0

0

0

5.05.01

Dividend

0

0

0

0

0

0

0

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

0

0

0

0

0

0

0

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

 

11

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

0

0

0

5.13

Final balance

4,741,175

16

0

341,751

390,199

0

5,473,141

 

12

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

05.02 –STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

0

341,751

0

0

5,082,942

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

341,751

0

0

5,082,942

5.04

Net income / Loss for the period

0

0

0

0

390,199

0

390,199

5.05

Distribution

0

0

0

0

0

0

0

5.05.01

Dividend

0

0

0

0

0

0

0

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

0

0

0

0

0

0

0

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

 

13

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

0

0

0

5.13

Final balance

4,741,175

16

0

341,751

390,199

0

5,473,141

14

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

08.01 – CONSOLIDATED BALANCE SHEET – ASSETS (in thousands of Brazilian  reais – R$)

 

1 - Code

2 – Description

3 – 03/31/2010

4 – 12/31/2009

1

Total assets

17,278,753

16,869,991

1.01

Current assets

4,527,925

4,244,432

1.01.01

Cash and cash equivalents

1,684,702

1,473,175

1.01.02

Credits

2,671,464

2,608,842

1.01.02.01

Accounts receivable

1,801,794

1,758,133

1.01.02.01.01

Consumers, concessionaires and licensees

1,882,494

1,840,107

1.01.02.01.02

Allowance for doubtful accounts

(80,700)

(81,974)

1.01.02.02

Other credits

869,670

850,709

1.01.02.02.01

Financial investments

39,615

39,253

1.01.02.02.02

Recoverable taxes

174,406

190,983

1.01.02.02.03

Deferred taxes

163,148

162,779

1.01.02.02.04

Deferred tariff cost variations

337,309

332,813

1.01.02.02.05

Prepaid expenses

145,353

124,086

1.01.02.02.06

Derivatives

9,839

795

1.01.03

Materials and supplies

16,735

17,360

1.01.04

Other

155,024

145,055

1.02

Noncurrent assets

12,750,828

12,625,559

1.02.01

Long-term assets

2,435,211

2,464,061

1.02.01.01

Other credits

2,272,171

2,303,301

1.02.01.01.01

Consumers, concessionaires and licensees

216,139

226,314

1.02.01.01.02

Financial investments

75,394

79,836

1.02.01.01.03

Recoverable taxes

109,284

110,014

1.02.01.01.04

Deferred taxes

1,103,699

1,117,736

1.02.01.01.05

Deferred tariff cost variations

30,765

42,813

1.02.01.01.06

Prepaid expenses

50,442

64,201

1.02.01.01.07

Escrow deposits

686,348

654,506

1.02.01.01.08

Derivatives

100

7,881

1.02.01.02

Related parties

0

0

1.02.01.02.01

Associated companies

0

0

1.02.01.02.02

Subsidiaries

0

0

1.02.01.02.03

Other related parties

0

0

1.02.01.03

Other

163,040

160,760

1.02.02

Permanent assets

10,315,617

10,161,498

1.02.02.01

Investments

104,858

104,801

1.02.02.01.01

Associated companies

0

0

1.02.02.01.02

Interest in subsidiaries

0

0

1.02.02.01.03

Other investments

117,686

117,629

1.02.02.01.06

Permanent equity interests – negative goodwill

(12,828)

(12,828)

1.02.02.02

Property, plant and equipment

7,671,249

7,487,216

1.02.02.03

Intangible assets

2,525,301

2,554,400

1.02.02.04

Deferred charges

14,209

15,081

15

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

08.02 – CONSOLIDATED BALANCE SHEET – LIABILITIES AND SHAREHOLDRES’ EQUITY (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 – 03/31/2010

4 – 12/31/2009

2

Total liabilities

17,278,753

16,869,991

2.01

Current liabilities

5,455,725

4,585,034

2.01.01

Loans and financing

1,396,670

723,766

2.01.01.01

Accrued interest on debts

84,687

26,543

2.01.01.02

Loans and financing

1,311,983

697,223

2.01.02

Debentures

574,669

600,309

2.01.02.01

Accrued interest on debentures

74,838

101,284

2.01.02.02

Debentures

499,831

499,025

2.01.03

Suppliers

994,669

1,021,348

2.01.04

Taxes and social contributions payable

532,616

489,976

2.01.05

Dividends and interest on equity

681,185

684,185

2.01.06

Reserves

0

0

2.01.07

Related parties

0

0

2.01.08

Other

1,275,916

1,065,450

2.01.08.01

Employee pension plans

41,954

44,484

2.01.08.02

Regulatory charges

100,028

62,999

2.01.08.03

Accrued liabilities

50,384

50,620

2.01.08.04

Deferred tariff gain variations

487,668

313,463

2.01.08.05

Deferred tax debts

200

2,258

2.01.08.06

Derivatives

-

7,012

2.01.08.07

Other

595,682

584,614

2.02

Noncurrent liabilities

6,262,692

7,116,974

2.02.01

Long-Term liabilities

6,262,692

7,116,974

2.02.01.01

Loans and financing

2,979,976

3,577,663

2.02.01.01.01

Accrued Interest on debts

14,424

62,427

2.02.01.01.02

Loans and financing

2,965,552

3,515,236

2.02.01.02

Debentures

2,551,198

2,751,169

2.02.01.03

Reserves

42,259

38,181

2.02.01.03.01

Reserve for contingencies

42,259

38,181

2.02.01.04

Related parties

0

0

2.02.01.05

Advance for future capital increase

0

0

2.02.01.06

Other

689,259

749,961

2.02.01.06.01

Suppliers

31,992

42,655

2.02.01.06.02

Employee pension plans

383,894

425,366

2.02.01.06.03

Taxes and social contributions payable

1,476

1,639

2.02.01.06.04

Deferred tax debts

4,677

4,376

2.02.01.06.05

Deferred tariff gain variations

64,647

108,691

2.02.01.06.06

Derivatives

10,767

5,694

2.02.01.06.07

Other

191,806

161,540

16

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

2.03

Deferred revenue

0

0

2.04

Noncontrolling shareholders’ interest

87,195

85,041

2.05

Shareholders’ equity

5,473,141

5,082,942

2.05.01

Capital

4,741,175

4,741,175

2.05.02

Capital reserves

16

16

2.05.03

Revaluation reserves

0

0

2.05.03.01

Own assets

0

0

2.05.03.02

Subsidiary/associated companies

0

0

2.05.04

Profit reserves

341,751

341,751

2.05.04.01

Legal

0

0

2.05.04.02

Statutory

0

0

2.05.04.03

For contingencies

0

0

2.05.04.04

Unrealized profits

0

0

2.05.04.05

Profit retention

341,751

341,751

2.05.04.06

Special reserve for undistributed dividends

0

0

2.05.04.07

Other revenue reserves

0

0

2.05.05

Equity valuation adjustments

0

0

2.05.05.01

Adjustment of financial investments

0

0

2.05.05.02

Adjustment of cumulative translation

0

0

2.05.05.03

Adjustment of business combinations

0

0

2.05.06

Accumulated profit or loss

390,199

0

2.05.07

Advance for future capital increase

0

0

 

 

 

17

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

09.01 – CONSOLIDATED INCOME STATEMENT (in thousands of Brazilian reais – R$)

 

1 – Code

2 - Description

3 - 01/01/2010 to 03/31/2010

4 - 01/01/2010 to 03/31/2010

5 - 01/01/2009 to 03/31/2009

6 - 01/01/2009  to 03/31/2009

3.01

Operating revenues

4,108,807

4,108,807

3,587,755

3,587,755

3.02

Deductions from operating revenues

(1,323,743)

(1,323,743)

(1,201,685)

(1,201,685)

3.02.01

ICMS (State VAT)

(679,463)

(679,463)

(610,623)

(610,623)

3.02.02

PIS (Tax on Revenue)

(66,088)

(66,088)

(57,117)

(57,117)

3.02.03

COFINS (Tax on Revenue)

(304,456)

(304,456)

(263,097)

(263,097)

3.02.04

ISS (Tax on Service Revenue)

(793)

(793)

(902)

(902)

3.02.05

Global reversal reserve – RGR

(15,370)

(15,370)

(12,671)

(12,671)

3.02.06

Fuel consumption account  - CCC

(100,276)

(100,276)

(130,165)

(130,165)

3.02.07

Energy development account - CDE

(119,161)

(119,161)

(98,779)

(98,779)

3.02.08

Research and Development and Energy Efficiency Programs

(27,235)

(27,235)

(22,705)

(22,705)

3.02.09

PROINFA

(10,898)

(10,898)

(5,626)

(5,626)

3.02.10

Emergency Charges (ECE/EAEE)

(3)

(3)

0

0

3.03

Net operating revenues

2,785,064

2,785,064

2,386,070

2,386,070

3.04

Cost of electric energy services

(1,856,989)

(1,856,989)

(1,666,070)

(1,666,070)

3.04.01

Electric energy purchased for resale

(1,324,515)

(1,324,515)

(1,205,720)

(1,205,720)

3.04.02

Electric energy network usage charges

(312,587)

(312,587)

(236,970)

(236,970)

3.04.03

Personnel

(87,564)

(87,564)

(75,895)

(75,895)

3.04.04

Employee pension plans

21,799

21,799

(919)

(919)

3.04.05

Material

(13,365)

(13,365)

(12,071)

(12,071)

3.04.06

Outsourced services

(35,415)

(35,415)

(33,626)

(33,626)

3.04.07

Depreciation and amortization

(88,977)

(88,977)

(87,352)

(87,352)

3.04.08

Other

(15,196)

(15,196)

(12,170)

(12,170)

3.04.09

Cost of services rendered to third parties

(1,169)

(1,169)

(1,347)

(1,347)

3.05

Gross operating income

928,075

928,075

720,000

720,000

3.06

Operating income (expense)

(312,783)

(312,783)

(266,282)

(266,282)

18

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

3.06.01

Sales and marketing

(63,910)

(63,910)

(47,692)

(47,692)

3.06.02

General and administrative

(118,341)

(118,341)

(97,941)

(97,941)

3.06.03

Financial income (expense)

(75,995)

(75,995)

(62,960)

(62,960)

3.06.03.01

Financial income

98,896

98,896

115,941

115,941

3.06.03.02

Financial expenses

(174,891)

(174,891)

(178,901)

(178,901)

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expenses

(54,537)

(54,537)

(57,689)

(57,689)

3.06.05.01

Amortization of intangible asset of concession

(44,688)

(44,688)

(46,724)

(46,724)

3.06.05.02

Other operating expense

(9,849)

(9,849)

(10,965)

(10,965)

3.06.06

Equity in subsidiaries

0

0

0

0

3.07

Operating income

615,292

615,292

453,718

453,718

3.08

Nonoperating income (expense)

0

0

0

0

3.08.01

Nonoperating income

0

0

0

0

3.08.02

Nonoperating expense

0

0

0

0

3.09

Income before taxes on income and profit sharing

615,292

615,292

453,718

453,718

3.10

Income tax and social contribution

(210,642)

(210,642)

(136,340)

(136,340)

3.10.01

Social contribution

(55,560)

(55,560)

(36,831)

(36,831)

3.10.02

Income tax

(155,082)

(155,082)

(99,509)

(99,509)

3.11

Deferred income tax and social contribution

(12,032)

(12,032)

(32,589)

(32,589)

3.11.01

Social contribution

(3,979)

(3,979)

(8,344)

(8,344)

3.11.02

Income tax

(8,053)

(8,053)

(24,245)

(24,245)

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders’ equity

0

0

0

0

19

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

3.14

Noncontrolling shareholders’ interest

(2,419)

(2,419)

(2,086)

(2,086)

3.15

Net income

390,199

390,199

282,703

282,703

 

SHARES OUTSTANDING EX-TREASURY STOCK (units)

479,910,938

479,910,938

479,910,938

479,910,938

 

NET INCOME PER SHARE (Reais)

0.81307

0.81307

0.58907

0.58907

 

LOSS PER SHARE (Reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

10.01 – CONSOLIDATED STATEMENTS OF CASH FLOW – Indirect method  (in thousands of Brazilian  reais – R$)

1 - Code

2 - Description

3 – 01/01/2010 to 03/31/2010

4 – 01/01/2010 to 03/31/2010

5 – 01/01/2009 to 03/31/2009

6 – 01/01/2009 to 03/31/2009

4.01

Net cash from operating activities

666,036

666,036

292,781

292,781

4.01.01

Cash generated from operations

871,067

871,067

753,952

753,952

4.01.01.01

Net income, including income tax and social contribution

612,873

612,873

451,632

451,632

4.01.01.02

Interest of noncontrolling shareholders

2,419

2,419

2,086

2,086

4.01.01.03

Depreciation and amortization 

141,621

141,621

143,018

143,018

4.01.01.04

Reserve for contingencies

3,593

3,593

200

200

4.01.01.05

Interest and monetary and exchange restatement

131,053

131,053

151,390

151,390

4.01.01.06

Gain / (loss) on pension plan

(21,799)

(21,799)

919

919

4.01.01.07

Losses on disposal of noncurrent assets

1,431

1,431

3,504

3,504

4.01.01.08

Deferred taxes - PIS and COFINS

(124)

(124)

1,203

1,203

4.01.01.09

Other

0

0

0

0

4.01.02

Variation on assets and liabilities

(205,031)

(205,031)

(461,171)

(461,171)

4.01.02.01

Consumers, Concessionaires and Licensees

(33,486)

(33,486)

(81,305)

(81,305)

4.01.02.02

Recoverable Taxes

17,307

17,307

(1,862)

(1,862)

4.01.02.03

Deferred Tariff Costs Variations

7,552

7,552

(83,143)

(83,143)

4.01.02.04

Escrow deposits

(22,518)

(22,518)

1,412

1,412

4.01.02.05

Overcontracting

29,574

29,574

6,628

6,628

4.01.02.06

Other operating assets

(39,090)

(39,090)

7,885

7,885

4.01.02.07

Suppliers

(37,342)

(37,342)

5,196

5,196

4.01.02.08

Taxes and social contributions paid

(178,805)

(178,805)

(174,601)

(174,601)

4.01.02.09

Other taxes and social contributions

17,132

17,132

18,259

18,259

4.01.02.10

Deferred Tariff Gains Variations

130,161

130,161

5,602

5,602

4.01.02.11

Employee Pension Plans

(22,203)

(22,203)

(24,072)

(24,072)

4.01.02.12

Interest paid on debt

(146,155)

(146,155)

(133,529)

(133,529)

4.01.02.13

Regulatory Charges

37,029

37,029

(16,786)

(16,786)

4.01.02.14

Overcontracting

28,578

28,578

(2,289)

(2,289)

21

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

4.01.02.15

Tariff review

(39,946)

(39,946)

32,529

32,529

4.01.02.16

Other operating liabilities

47,181

47,181

(21,095)

(21,095)

4.01.03

Other

0

0

0

0

4.02

Net cash in investing activities

(277,270)

(277,270)

(242,736)

(242,736)

4.02.01

Addition to property, plant and equipment

(274,269)

(274,269)

(261,148)

(261,148)

4.02.02

Financial investments

3,191

3,191

10,991

10,991

4.02.03

Increase of special obligations

13,210

13,210

14,138

14,138

4.02.04

Acquisition of intangible assets – other

(23,576)

(23,576)

(11,509)

(11,509)

4.02.05

Sale of noncurrent assets

2,852

2,852

3,849

3,849

4.02.06

Other

1,322

1,322

943

943

4.03

Net cash in financing activities

(177,239)

(177,239)

80,998

80,998

4.03.01

Loans, financing and debentures obtained

159,561

159,561

236,466

236,466

4.03.02

Payments of Loans, financing and debentures , net of derivatives

(333,800)

(333,800)

(155,439)

(155,439)

4.03.03

Dividend and interest on shareholders’ equity paid

(3,000)

(3,000)

(29)

(29)

4.04

Exchange variation on cash and cash equivalents

0

0

0

0

4.05

Increase (decrease) in cash and cash equivalents

211,527

211,527

131,043

131,043

4.05.01

Cash and cash equivalents at beginning of period

1,473,175

1,473,175

737,847

737,847

4.05.02

Cash and cash equivalents at end of period

1,684,702

1,684,702

868,890

868,890

22

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

11.01 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

341,751

0

0

0

5,082,942

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

341,751

0

0

0

5,082,942

5.04

Net income / Loss for the period

0

0

0

0

390,199

0

390,199

5.05

Distribution

0

0

0

0

0

0

0

5.05.01

Dividend

0

0

0

0

0

0

0

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

0

0

0

0

0

0

0

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

0

0

0

5.13

Final balance

4,741,175

16

341,751

0

390,199

0

5,473,141

 

23

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

11.02 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

341,751

0

0

0

5,082,942

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

341,751

0

0

0

5,082,942

5.04

Net income / Loss for the period

0

0

0

0

390,199

0

390,199

5.05

Distribution

0

0

0

0

0

0

0

5.05.01

Dividend

0

0

0

0

0

0

0

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

0

0

0

0

0

0

0

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

0

0

0

5.13

Final balance

4,741,175

16

341,751

0

390,199

0

5,473,141

24

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

                                                                      

06.01 – NOTES TO THE INTERIM FINANCIAL STATEMENTS

 

 

 

CPFL ENERGIA S.A.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2010

 

(Amounts stated in thousands of Brazilian reais, except where otherwise indicated)

 

( 1 )     OPERATIONS

CPFL Energia S.A. (“CPFL Energia” or “Company”) is a publicly quoted corporation incorporated for the principal purpose of acting as a holding company, participating in the capital of other companies primarily dedicated to electric energy distribution, generation and sales activities.

The Company has direct and indirect interests in the following subsidiaries, allocated by line of business:

25

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

        March 31, 2010    December 31, 2009 
    Consolidation Method    Equity Interest - %    Equity Interest - % 
Subsidiary      Direct    Indirect    Direct    Indirect 
 
Energy Distribution                     
   Companhia Paulista de Força e Luz ("CPFL Paulista")    Full    100.00      100.00   
   Companhia Piratininga de Força e Luz ("CPFL Piratininga")    Full    100.00      100.00   
   Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz")    Full    99.99      99.99   
   Rio Grande Energia S.A. ("RGE")    Full    100.00      100.00   
   Companhia Paulista de Energia Elétrica ("CPFL Leste Paulista")    Full    95.92      95.92   
   Companhia Jaguari de Energia ("CPFL Jaguari")    Full    87.27      87.27   
   Companhia Sul Paulista de Energia ("CPFL Sul Paulista")    Full    86.73      86.73   
   Companhia Luz e Força de Mococa ("CPFL Mococa")    Full    86.73      86.73   
 
Energy Generation                     
   CPFL Geração de Energia S.A. ("CPFL Geração")    Full    100.00      100.00   
   CPFL Sul Centrais Elétricas Ltda. ("CPFL Sul Centrais Elétricas")    Full      100.00      100.00 
   CPFL Bioenergia S.A. ("CPFL Bioenergia")    Full      100.00      100.00 
   CPFL Bio Formosa S.A. ("CPFL Bio Formosa")    Full      100.00      100.00 
   CPFL Bio Buriti S.A. ("CPFL Bio Buriti")    Full      100.00     
   CPFL Bio Ipê S.A. ("CPFL Bio Ipê")    Full      100.00     
   CPFL Bio Pedra S.A. ("CPFL Bio Pedra")    Full      100.00     
   Paulista Lajeado Energia S.A. ("Paulista Lajeado")    Full      52.34      52.34 
   Santa Clara I Energias Renováveis Ltda. ("Santa Clara I")    Full      100.00      100.00 
   Santa Clara II Energias Renováveis Ltda. ("Santa Clara II")    Full      100.00      100.00 
   Santa Clara III Energias Renováveis Ltda. ("Santa Clara III")    Full      100.00      100.00 
   Santa Clara IV Energias Renováveis Ltda. ("Santa Clara IV")    Full      100.00      100.00 
   Santa Clara V Energias Renováveis Ltda. ("Santa Clara V")    Full      100.00      100.00 
   Santa Clara VI Energias Renováveis Ltda. ("Santa Clara VI")    Full      100.00      100.00 
   Eurus VI Energias Renováveis Ltda. ("Eurus VI")    Full      100.00      100.00 
   BAESA - Energética Barra Grande S.A. ("BAESA")    Proportionate      25.01      25.01 
   Campos Novos Energia S.A. ("ENERCAN")    Proportionate      48.72      48.72 
   CERAN - Companhia Energética Rio das Antas ("CERAN")    Proportionate      65.00      65.00 
   Foz do Chapecó Energia S.A. ("Foz do Chapecó")    Proportionate      51.00      51.00 
   Centrais Elétricas da Paraíba S.A.- EPASA ("EPASA")    Proportionate      51.00      51.00 
Energy Commercialization and Services                     
   CPFL Comercialização Brasil S.A. ("CPFL Brasil")    Full    100.00      100.00   
   Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional")    Full      100.00      100.00 
   CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul")    Full      100.00      100.00 
   Sul Geradora Participações S.A. ("Sul Geradora")    Full      99.95      99.95 
   CPFL Planalto Ltda. ("CPFL Planalto")    Full    100.00      100.00   
   CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende")    Full    100.00      100.00   
   CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços")    Full    87.82      87.82   
 
Holding Company                     
   Chumpitaz Participações S.A. ("Chumpitaz")    Full    100.00      100.00   
   CPFL Jaguariuna S.A. ("CPFL Jaguariuna")    Full    100.00      100.00   
   Companhia Jaguari de Geração de Energia ("Jaguari Geração")    Full    87.34      87.34   
   Chapecoense Geração S.A. ("Chapecoense")    Proportionate      51.00      51.00 

 

 

( 2 )     PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS

The individual (Parent Company) and consolidated quarterly financial statements are presented in thousands of Brazilian reais, except where otherwise indicated, and were prepared in accordance with (i) generally accepted accounting principles in Brazil, and the standards published by the Brazilian Securities Commission (“CVM”) applicable to quarterly financial statements, having fully complied with all the concepts introduced by Law nº 11,638/07 and Law 11,941/09, (ii) the Accounting Manual of the Public Electric Energy Service and other regulations laid down by ANEEL.

The Company and its subsidiaries opted to apply Article 1 of CVM Decision nº 603/09, which allows publicly-held companies to present their Quarterly Financial Statements - ITR in accordance with the accounting standards in force as of December 31, 2009, without yet reflecting the full effects of the process of adjustment to international accounting standards.

26

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

Accordingly, the accounting practices and criteria adopted in preparation of these quarterly financial statements are consistent with those followed in preparing the Financial Statements at December 31, 2009, and should therefore be analyzed as a whole.

 

The main changes in accounting practices to be introduced by the Pronouncements, Interpretations and Guidelines issued by the Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis – CPC) and approved by the Brazilian Securities Commission - CVM in 2009 are currently being analyzed by the Company and its subsidiaries, while awaiting market decisions as to the application of certain standards. However, the preliminary results of this analysis indicate that the standards that will have the greatest impact on the Financial Statements are:

 

 i.    ICPC 01 – Concession Contracts: This Interpretation defines the form of accounting for the assets of concessions when certain conditions are met. The Company’s preliminary understanding is that this Interpretation is applicable to the concessions relating to electric energy distribution services. The most likely impact on the Financial Statements will be the transfer of the balances of Fixed Assets and Special Obligations to (a)  the Intangible Asset in relation to the right to charge consumers a tariff (right to exploit the concession), and/or (b) recording of a Financial Asset, representing the Company’s unconditional right to receive payment.

   Due to the complexity of these changes, the Company and its subsidiaries are evaluating the impacts of applying the Interpretation in their Financial Statements; they have also taken part in discussions and debates with other agents from the electric energy sector, regulatory bodies and class associations.

ii.    CPC 26 – Presentation of the Financial Statements: This Pronouncement establishes guidelines and minimum requirements for structure, content and presentation of the financial statements. The Company and its subsidiaries are examining any possible impacts of this Pronouncement, particularly as regards changes in individual accounting statements, such as, for example, the inclusion of “Other Comprehensive Income” in the Income Statement and the Statement of Changes in Shareholders’ Equity and separating the participation of controlling shareholders from that of noncontrolling shareholders in these statements.

iii.    CPC 27 – Fixed Assets: This Pronouncement establishes the main points to be considered in accounting for a fixed asset, including the composition of the costs and methods permitted for calculating depreciation. The Company and its subsidiaries are also analyzing ICPC Interpretation 10 “Interpretation regarding Initial Adoption of Technical Pronouncements CPCs 27, 28, 37 e 43 to the Fixed Assets and Investment Properties” and the possible impacts on the balance of Fixed Assets at the transition date. 

iv.    CPC 33 – Employee Benefits: This Pronouncement concerns  accounting for and disclosure of the benefits granted to employees. Due to the complexity of the accounting procedures defined in this regulation, the Company and its subsidiaries are analyzing the best alternative accounting methods, as required by the Pronouncement.

v.    CPC 18 – Investment in Associated and Subsidiary Companies and CPC 19 – Joint Ventures: these Pronouncements deal with the classification and subsequent recording of the permanent corporate interests held by an entity. Certain of our ventures which, under the current rules, are regarded as “Joint Ventures” and accordingly consolidated proportionally, may need to be registered as “Associated Companies”, and their income recorded by the equity accounting method.

27

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

As mentioned above, due to the uncertainties as to the application of certain standards, reliable estimates of the impacts are at present impracticable.

 

2.1 Consolidation Principles

The consolidated quarterly financial statements include the balances and transactions of the Company and its subsidiaries. The asset, liability, income and expense balances were fully consolidated.

Prior to consolidation into the Company's financial statements, the financial statements of CPFL Geração and CPFL Brasil are consolidated with those of their subsidiaries, fully or proportionally (in the case of jointly-controlled subsidiaries).

In compliance with the conditions described above, the portion relating to the noncontrolling shareholders is stated separately in liabilities and income statements for the periods presented.

All significant intercompany balances and transactions have been eliminated.

 

( 3 )     REGULATORY ASSETS AND LIABILITIES

    Consolidated
    March 31, 2010   December 31, 2009
    Current    Noncurrent    Total    Current    Noncurrent    Total 
Assets                         
Consumers, Concessionaires and Licensees (note 5)
Free energy    3,594    23    3,617    3,506    38    3,544 
Discounts TUSD (*) and Irrigation    11,990    4,838    16,828    11,343    1,410    12,753 
Other financial components          182    17    199 
    15,584    4,861    20,445    15,031    1,465    16,496 
Deferred Costs Variations                         
Parcel "A"    1,333      1,333    1,290      1,290 
CVA (**)    335,976    30,765    366,741    331,523    42,813    374,336 
    337,309    30,765    368,074    332,813    42,813    375,626 
Prepaid Expenses (note 9)                         
Increase in PIS and COFINS    259      259    259      259 
Overcontracting    68,353    2,399    70,752    77,191    23,135    100,326 
Low income consumers' subsidy - Losses    21,642    35,807    57,449    28,027    33,500    61,527 
Other financial components    29,685    6,523    36,208    10,304    993    11,297 
    119,939    44,729    164,668    115,781    57,628    173,409 
Liabilities                         
Suppliers (note 17)                         
Free energy    (66,077)    -    (66,077)    (61,341)    -    (61,341) 
Deferred Gains Variations                         
Parcel "A"    (45,685)    (87)    (45,772)    (44,419)      (44,419) 
CVA    (441,983)    (64,560)    (506,543)    (269,044)    (108,691)    (377,735) 
    (487,668)    (64,647)    (552,315)    (313,463)    (108,691)    (422,154) 
Other Accounts Payable (note 22)                         
Tariff review    (49,315)      (49,315)    (89,261)      (89,261) 
Discounts TUSD and Irrigation    (3,024)    (249)    (3,273)    (965)    (26)    (991) 
Reimbursal to consumers - Recalculation IRT    (14,528)      (14,528)       
Increase in PIS and COFINS    (126,129)      (126,129)    (122,792)      (122,792) 
Overcontracting    (20,888)    (25,231)    (46,119)    (17,541)      (17,541) 
Low income consumers' subsidy - Gains    (5,890)      (5,890)    (6,011)      (6,011) 
Other financial components    (22,025)    (3,304)    (25,329)    (10,236)    (1,902)    (12,138) 
    (241,799)    (28,784)    (270,583)    (246,806)    (1,928)    (248,734) 
Total net    (322,712)    (13,076)    (335,788)    (157,985)    (8,713)    (166,698) 
 
(*) Network Usage Charge - TUSD
(**) Deferred Tariff Costs and Gains Variations from Parcel "A" itens - ("CVA")

 

 

28

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

a) Rationing (“RTE”, “Free Energy” and Parcel “A”)

 

At the end of 2001, as a result of the Emergency Program for the Reduction of Electric Energy Consumption, in effect between June 2001 and February 2002, the generators, the power distributors and the Federal Government signed the "Overall Agreement for the Electric Energy Sector".  This agreement introduced the mechanism to reimburse the energy sector for the losses incurred as a result of this program, an Extraordinary Tariff Increase of 2.9% on energy supplied to residential consumers (except those regarded as "low income consumers") rural consumers and for public lighting, and 7.9% for all other consumers.

This adjustment was used to offset the following regulatory assets resulting from the rationing. As of March 31, 2010, these assets recorded by the subsidiaries are as follows:

 

a.1)   Electric energy from Independent Suppliers (“Free Energy”)

Corresponds to the energy produced and made available to the consumer market during the rationing period by the independent producers and own-power producers of energy.

The distribution utilities collected the funds from the consumer through the extraordinary tariff adjustment and passed them on to the generators, according to percentages established for each concessionaire, recording an asset and a liability. These amounts were restated in accordance with ANEEL’s instructions.

As of March 31, 2010, the subsidiaries CPFL Geração and RGE have balances of Free Energy amounting to R$ 131 and R$ 177 respectively, net of the reserve for losses on realization of Free Energy amounting to a total of R$ 13,175.

On December 15, 2009, ANEEL issued Regulatory Resolution nº 387/2009 which establishes a new method for calculating the outstanding balances of Loss of Revenue and Free Energy after expiry of the RTE charge, with the objective of distributing the amounts of RTE charged to the final consumer fairly, so as spread the losses incurred evenly between generators and distributors of electric energy.

On the basis of this new calculation, the subsidiaries CPFL Paulista, CPFL Piratininga and CPFL Sul Paulista increased the liability relating to free energy by R$ 32,592. In this quarter, the subsidiaries CPFL Paulista and CPFL Piratininga recorded additional adjustments of R$ 48 and R$ 2,479 as Other Operating Expenses, in respect of the principal.

Using the same methodology, the subsidiaries CPFL Jaguari and CPFL Santa Cruz recorded assets of R$ 3,244 in 2009, the outstanding balance of which is R$ 3,309 at March 31, 2010.

After these adjustments and the amortization and restatement for the quarter, the net balance at March 31, 2010 stood at R$ 62,460 (R$ 57,797 as of December 31, 2009).

The results of the new calculation were sent to ANEEL, which will validate the figures and issue a dispatch with the final value, for subsequent settlement with the generators.

a.2)   Parcel “A”

Corresponds to the variation in the non-manageable costs representing Parcel "A" of the concession contracts, between January 1 and October 25, 2001.

In the case of the subsidiaries CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari and RGE, the balances of Parcel “A” were totally amortized in November 2009, May 2008, November 2007, September 2005, March 2007, August 2005 and July 2004, respectively.

29

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

The subsidiaries CPFL Paulista, CPFL Sul Paulista, CPFL Leste Paulista and CPFL Mococa, overcharged in the billing period, resulting in liabilities to consumers of R$ 43,956, R$ 327, R$ 105 and R$ 51, respectively, (R$ 42,573, R$ 393, R$ 103 and R$ 60 as of December 31, 2009). These amounts are restated at the SELIC rate and R$ 77 was amortized in the quarter by negative financial components included in the tariffs of the tariff adjustments in 2010.

 

b)      Tariff Review and Tariff Adjustment

b.1) 2nd cycle of Tariff Review

ANEEL provisionally established the tariff adjustment and the financial components for the tariff review on February 3, 2008 for the subsidiaries CPFL Santa Cruz, CPFL Jaguari, CPFL Mococa, CPFL Leste Paulista and CPFL Sul Paulista, on April 8, 2008 for the subsidiary CPFL Paulista, on April 19, 2008 for RGE and on October 23, 2007 for the subsidiary CPFL Piratininga.

 

In the case of all the companies, the provisional nature of the tariff review is due to the “Reference Company” and the “Xe factor”. Additionally, the remuneration bases of the subsidiaries RGE and CPFL Santa Cruz were also on a provisional basis, while the financial component for the subsidiaries CPFL Paulista and CPFL Piratininga were linked to overcontracting.

 

The final approval occurred in the subsequent tariff adjustments, when ANEEL recalculated the adjustments and decided to reposition the tariff review of the distributors. As a result, the distributors recognized regulatory liabilities totaling R$ 165,707 between 2008 and 2009, in respect of amounts that are already being refunded to consumers. This repositioning caused a negative impact of R$ 32,529 in the first quarter of 2009, mainly as a result of the liabilities recorded for RGE and CPFL Paulista, amounting to R$ 22,428 and R$ 11,979, respectively. In the first quarter of 2010, R$ 39,946 was refunded (amortized) and the balance as of March 2010 is R$ 49,315.

 

b.2) Tariff Adjustment 2009 and 2010

The result for the first quarter of 2010 was impacted by the 2009 and 2010 tariff adjustments for the distribution subsidiaries, as follows:

 

Tariff Adjustment 2009 (“IRT 2009”):

 

In 2009, ANEEL established the Annual Tariff Review of the subsidiaries CPFL Paulista, CPFL Piratininga and RGE, and these tariffs came into effect on March 31 2010. Since the tariffs of the subsidiaries CPFL Santa Cruz, CPFL Jaguari, CPFL Mococa, CPFL Leste Paulista and CPFL Sul Paulista are adjusted on February 3 each year, the income for the first quarter of 2010 is also impacted by the 2009 tariff adjustment applied until that date. These adjustments are shown in the following table:

 

30

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

    CPFL Santa Cruz    CPFL Jaguari    CPFL Mococa    CPFL Leste Paulista    CPFL Sul Paulista    CPFL Paulista    RGE    CPFL Piratininga 
 
Verified Revenue    192,302    77,004    47,999    73,724    87,327    4,640,667    1,902,839    2,267,755 
   Sector Charges    23,419    13,993    5,932    9,573    13,090    690,911    222,227    341,928 
   Purchase of Electric Energy    97,221    41,213    23,441    29,413    42,637    2,793,363    1,089,099    1,098,860 
   Energy Transmission    19,238    9,647    5,594    8,727    11,092    425,052    201,789    266,754 
Parcel A    139,878    64,853    34,967    47,713    66,819    3,909,326    1,513,115    1,707,542 
Parcel B    72,974    20,626    18,083    33,810    30,810    1,361,615    588,468    623,920 
Income Required (Parc. A + B)    212,852    85,479    53,050    81,523    97,629    5,270,941    2,101,583    2,331,462 
Financial Components    28,530    300    351    1,924    (149)    402,812    178,722    73,878 
   CVA    5,310    1,735    1,305    (1,709)    1,306    232,828    113,340    110,116 
   Overcontracting              28,125    (1,949)    7,865 
   Advances    25,375    126    422    1,527    399    117,093    138,013    41,809 
   Low Income Subsidy              33,047    1,519    1,090 
   Discounts on TUSD and Irrigation Subsidy    (771)      22    852    43    6,122    1,625    3,010 
   Connection and Frontier Charges / CUST    (81)    (199)    (76)    2,358    (119)    3,932    (2,073)    357 
   Recalculation of 2008 Tariff Review    (3,546)    (1,058)    (1,089)    (780)    (1,694)    (11,979)    (50,899)    (93,540) 
   Provision Subsidy for Cooperatives                (16,178)    4,417 
   CCEAR exposure    (56)            (5,534)      (577) 
   Other components    2,290    (304)    (233)    (324)    (84)    (822)    (4,676)    (669) 
Financial Repositioning    10.69%    11.01%    10.52%    10.58%    11.80%    13.58%    10.44%    2.81% 
Financial Components    13.40%    0.35%    0.66%    2.36%    -0.16%    7.64%    8.50%    3.17% 
Total Repositioning    24.09%    11.36%    11.18%    12.94%    11.64%    21.22%    18.95%    5.98% 
X Factor    1.05%    2.81%    1.14%    1.44%    1.43%    1.19%    0.18%    -1.36% 
Effect perceived by consumers (*)    11.85%    9.40%    5.59%    10.61%    10.23%    21.56%    3.43%    -2.12% 
Ratification Resolution - ANEEL    770/2009    767/2009    768/2009    771/2009    769/2009    795/2009    810/2009    896/2009 
Tariff Adjustment date    Feb 3, 2009    Feb 3, 2009    Feb 3, 2009    Feb 3, 2009    Feb 3, 2009    Apr 8, 2009    Apr 19, 2009    Oct 23, 2009 

 

 

(*)  The average effect perceived by consumers, as a result of removal from the tariff base of the financial components added in the previous tariff adjustment.

 

On March 30, 2010, in Ratification Resolution nº 957, ANEEL changed the contractual date for the tariff adjustment and review of the subsidiary RGE, and extended the effective term of this concessionaire’s electric energy tariffs, stated in ratification resolution 810/2009, to June 18, 2010. This change was proposed by ANEEL in order for RGE's adjustment to be made on a more suitable date in the annual tariff adjustment calendar, to align the date of RGE's tariff adjustment in the annual tariff adjustment calendar with those of the concessionaires it supplies.

 

 

Tariff Adjustment 2010 (“IRT 2010”):

 

On February 3, 2010, ANEEL established the 2010 Annual Tariff Adjustment of the subsidiaries CPFL Santa Cruz, CPFL Jaguari, CPFL Mococa, CPFL Leste Paulista and CPFL Sul Paulista, which accordingly impacted the result of the first quarter of 2010 as from that date. The table below shows a breakdown of these IRT, and the result of the annual tariff adjustment of the subsidiary CPFL Paulista, applicable as from April 8, 2010.

 

31

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

  CPFL Santa Cruz    CPFL Jaguari    CPFL Mococa    CPFL Leste Paulista    CPFL Sul Paulista    CPFL Paulista 
 
Verified Revenue  221,437    88,633    56,218    91,434    101,099    5,427,276 
  Sector Charges  31,038    18,405    7,646    11,843    16,653    916,487 
  Purchase of Electric Energy  93,597    41,422    23,124    11,730    41,132    2,663,385 
  Energy Transmission  25,155    12,919    7,356    27,784    14,641    505,917 
Parcel A  149,790    72,746    38,126    51,357    72,426    4,085,789 
Parcel B  75,845    21,036    20,425    34,301    33,026    1,425,548 
Income Required (Parc. A + B)  225,635    93,782    58,551    85,658    105,452    5,511,337 
Financial Components  18,485    (608)    (101)    (5,904)    1,432    63,508 
  Advances  23,504    124    374    1,223    1,644    130,359 
  Financial adjustment previous tariff adjustment  (21)    (247)    (110)    (123)    137    (14,225) 
  Financial adjustment TUSD-G            (11,747) 
  Additional R&D financial adjustment            4,242 
  CVA  (1,851)    (299)    (154)    (2,534)    120    (89,180) 
  Discounts on TUSD and Irrigation Subsidy  (315)      (101)    (115)    544    2,062 
  Connection and Frontier Charges/CUSD  (154)    122    (49)    (178)    (112)    6,870 
  Parcel "A" liability to be offset            (43,956) 
  Neutrality of Sector Charges            (1,628) 
  Recovery of subsidies  2,478    91    262    234    277    8,618 
  Overcontracting  (1,591)    (418)    (274)    (922)    (349)    67,619 
  Other components  (3,565)    19    (49)    (3,489)    (829)    4,474 
Financial Repositioning  1.90%    5.81%    4.15%    -6.32%    4.30%    1.55% 
Financial Components  8.19%    -0.65%    -0.17%    -6.89%    1.36%    1.15% 
Total Repositioning  10.09%    5.16%    3.98%    -13.21%    5.66%    2.70% 
X Factor  -2.15%    -0.34%    -2.33%    -1.12%    -1.30%    0.08% 
Effect perceived by consumers (*)  -2.53%    3.67%    3.24%    -8.47%    4.94%    -5.69% 
Ratification Resolution - ANEEL  935/2010    937/2010    936/2010    939/2010    933/2010    961/2010 
Tariff review date  Feb 3, 2010    Feb 3, 2010    Feb 3, 2010    Feb 3, 2010    Feb 3, 2010    Apr 8, 2010 

 

 

(*)  The average effect perceived by consumers, as a result of removal from the tariff base of the financial components added in the previous tariff adjustment.

 

On account of the process of approval of the financial components in the tariff adjustments, the following main adjustments were recorded in the quarters:

 

i)  2009

 

CPFL Paulista - a CVA liability of R$ 24,118 in respect of recalculation of the K factor (the lower of regulatory and actual losses), reversal of energy overcontracting of R$ 14,263, and other regulatory liabilities of R$ 9,133, mainly in respect of the CCEAR exposure and discounts for TUSD and Irrigation.

 

RGE - liabilities in relation to the subsidy to cooperatives of R$ 5,156 and TUSD of R$ 5,495.

 

ii)     2010

 

CPFL Paulista – a regulatory asset of R$ 5,314 in respect of recalculation of energy overcontracting in 2008 and a regulatory liability of R$ 14,225 in respect of adjustment of the financial components (CVA and other regulatory assets and liabilities) overestimated by ANEEL in 2008.

 

 

 

 

c)   Financial components

32

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

c.1) Tariff review

As mentioned in note 3b.1, the 2nd cycle of tariff reviews for distributors was finally ratified by ANEEL during 2009. As such, liabilities have been recorded relating to the reimbursements that are being made to consumers, and these will be amortized in the accounts until the next Tariff Adjustment.

 

 

c.2)  Discounts TUSD and Irrigation

The subsidiaries record regulatory assets and liabilities for the special discounts applied on the TUSD to the free consumers, in respect of electric energy supplied from alternative sources and on the tariffs for energy supplied for irrigation and aquaculture.

 

As tariff advances are granted in relation to the estimated discounts for the next tariff period, the difference between the forecast and the discount actually realized is recorded and offset in the next tariff adjustment.

 

c.3) CVA

Relates to the mechanism for offsetting the variations in unmanageable costs incurred by the electric energy distribution concessionaires. These variations are calculated in accordance with the difference between the expenses effectively incurred and the expenses estimated at the time of establishing the tariffs in the annual tariff adjustments. The amounts taken into consideration in the CVA are restated at the SELIC rate.

 

The net balances of CVA assets and liabilities, separated by type and accrual period, are shown below:

 

    Consolidated
    March 31, 2010   December 31, 2009
    Ratified   Not Ratified   Total   Ratified   Not Ratified   Total
             
    2010    2009    2008    2010    2009      2009    2008    2009   
Itaipu pass-through    (104,850)    (15,609)    (3,490)    (40,790)    (23,936)    (188,675)    (38,409)    8,858    (90,376)    (119,927) 
Electric Energy Costs    (83,241)    56,655    3,061    (47,973)    (88,466)    (159,964)    87,205    (11,780)    (159,132)    (83,707) 
Proinfa    6,028    14,610    412    (2,052)    3,976    22,974    23,734    289    (4,583)    19,440 
CCC    33,141    11,521    500    16,842    37,708    99,712    24,827    1,193    49,782    75,802 
Transmission from Itaipu    1,952    952      294    925    4,132    1,900    84    2,577    4,561 
Basic Network    63,815    9,985    466    7,534    16,621    98,421    15,607    772    61,797    78,176 
ESS    (41,956)    29,951    1,375    (4,545)    (25,774)    (40,949)    65,078    2,384    (67,198)    264 
CDE    7,970    7,232    98    2,009    6,054    23,363    11,297    (39)    10,732    21,990 
EER - Reserve energy charge          384    798    1,184         
    (117,139)    115,297    2,431    (68,297)    (72,094)    (139,802)    191,239    1,761    (196,399)    (3,399) 

 

 

c.4) Increase in PIS and COFINS

Refers to the difference between PIS and COFINS costs calculated in accordance with the current legislation, and those incorporated in the tariff until April 2005 for the subsidiary CPFL Paulista and October 2005 for the subsidiary CPFL Piratininga. These differences were recorded as a regulatory asset, which has been fully amortized.  

 

In view of the discussions in respect of the nature of this credit, the Company conservatively opted to record a liability of the same amount, posted in the account “Other Accounts Payable” (note 22).

 

c.5) Overcontracting

Electric energy distribution concessionaires are obliged to guarantee 100% of their energy and power market through contracts approved, registered and ratified by ANEEL, and are also assured that costs or income derived from overcontracting will be passed on to the tariffs, limited to 3% of the energy load requirement.

33

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

In relation to the 2009 Tariff Reviews of the subsidiaries CPFL Paulista and CPFL Piratininga, ANEEL regarding the transactions relating to the acquisition of electric energy in the CCEE, in 2008, as voluntary exposure, and therefore provisionally approved the amounts of R$ 32,006 and R$ 7,865, respectively, for CPFL Paulista and CPFL Piratininga, of the Overcontracting Asset, but did not recognize the other amounts of R$ 19,503 and R$ 52,302, originally recorded by the subsidiaries.  While not agreeing with the Agency's position, the subsidiaries, conservatively, decided to reverse these amounts, crediting "Prepaid Expenses" and setting against "Costs - Cost of Electric Energy" (R$ 18,583 in the first quarter of 2009 and R$ 49,621 in the third quarter of 2009 and "Financial income" (R$ 920 in the first quarter of 2009 and R$ 2,681 in the third quarter of 2009).  The amounts used in the tariff adjustments were provisionally adopted by ANEEL.

 

On April 6, 2010, in Order nº 899, ANEEL acknowledged the Application for Reconsideration filed by the subsidiaries to resume the discussions on analysis of the merit of the involuntary nature of the exposure to the short-term market, in 2008. Accordingly, the subsidiaries will have an opportunity to present its explanations and prove the involuntary exposure.

 

c.6) Low Income Consumers’ Subsidy

 

Law no 12,212, of January 20, 2010, establishes the most recent guidelines for classification of consumers for the Social Electric Energy Tariff (Low Income).

 

The main change is that, under the new Law, consumers will be entitled to the Social Electric Energy Tariff (Low Income) if they are enrolled in the Sole Register for Federal Government Social (Cadastro Único para Programas Sociais do Governo Federal – CadÚnico), irrespective of their energy consumption.

 

The Law establishes that ANEEL is to regulate (i) classification of new consumers within 180 days after enactment of the Law and (ii) the exclusion from the roster of beneficiaries of the Social Electric Energy Tariff of consumer units that will cease to be entitled as result of the Law within 24 months after enactment of the law. Accordingly, most general effects of the Law will only be felt after regulation by ANEEL.

 

Since the subsidies granted to consumers are to be identified as from the second cycle of tariff reviews, ANEEL decided that, whenever possible, part of this subsidy will be reimbursed through the tariff in the sphere of the concessionaire itself, by taking the financial component into account in the tariff. If it is not possible to make the full reimbursement through the tariff, CDE funds will be transferred to complement the subsidy.

 

As tariff advances are made to cover in full the subsidies granted to consumers, the difference between the subsidy actually granted and the advance received will be calculated monthly for accounting purposes and included in the next tariff adjustment.

 

c.7) Neutrality of the Sector Charges

On account of approval by the ANEEL Executive Board of the Addendum to the Concession Contracts of the electric energy distributors, in order to change the tariff adjustment methodology in accordance with ANEEL Order nº 245, published in the Official Gazette of the Federal Executive on February 5, 2010, the sector charges will no longer affect the tariff. The monthly differences between the amounts billed and the amounts considered in the previous tariff adjustment will be recorded as regulatory assets and liabilities, bearing interest at the SELIC rate. The subsidiaries are recording the amounts in the Other Financial Components account for future ratification.

34

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

c.8) TUSD G Financial Adjustment

The discounts on TUSD granted to the generators based on Regulatory Resolution n° 77/2004 are reimbursed annually at the time of each tariff adjustment or review. As in the case of other financial components, tariff advances are granted to cover the subsidies. The difference between the actual subsidy and the advance received will be calculated monthly for accounting purposes and included in the next tariff adjustment. The subsidiaries are recording such amounts as “Other Financial Components”.

 

 

 

 

c.9) Other financial components

 

Mainly refers to CCEAR exposure, financial guarantees, subsidies to cooperatives and licensees and services related to the periodical tariff review (measures to be taken and remuneration basis etc), as well as the effects of the neutrality of the sector charges and of the TUSD G financial adjustment, described above.

 

 

 

35

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Changes in regulatory assets and liabilities during the quarters ended March 31, 2010 and 2009:

 

    Consolidated
    December 31, 2009   Operating reveue (note 24)   Cost of electric energy services (note 25)    Deductions from operating revenue   Operating expense   Cash   Financial income (expense)   March 31, 2010
      Deferral    Amort.    Deferral    Amort.    Deferral    Amort.    Deferral    Amort.    Provision for losses    Amort.    Deferral    Remuner.  
Free energy    (57,797)                (2,527)      17    (34)      (2,119)    (62,460) 
Parcel "A"    (43,129)      77    (3)      (1)                (1,383)    (44,439) 
Tariff review    (89,261)      39,946                        (49,315) 
Discounts TUSD and Irrigation    11,762    8,530    (7,160)                      423    13,555 
CVA    (3,399)        (81,374)    (79,958)    42,108    (18,369)            1,319    (129)    (139,802) 
Increase in PIS and COFINS    (122,533)                          (3,337)    (125,870) 
Overcontracting    82,785        (52,844)    (6,972)                  1,664    24,633 
Low Income Consumers’ Subsidy    55,516    11,286    (10,334)                  (5,350)      441    51,559 
Return to consumer - IRT Recalculation      (14,319)    61                      (270)    (14,528) 
Other financial components    (642)    8,094    (273)    (11,170)    1,589    10,807    (1)      589    219    (51)      1,718    10,879 
Total net    (166,698)    13,591    22,317    (145,391)    (85,341)    52,914    (18,370)    (2,527)    589    236    (5,435)    1,319    (2,992)    (335,788) 
 
    Consolidated
    December 31, 2008   Operating reveue (note 24)   Cost of electric energy services (note 25)    Deductions from operating revenue   Operating expense    Cash    Financial income (expense)    March 31, 2009
      Deferral    Amort.    Deferral    Amort.    Deferral    Amort.    Deferral    Amort.    Provision for losses    Amort.    Deferral    Remuner,   
Extraordinary tariff adjustment    3,904      (3,542)                (638)        604    328 
Free energy    (33,428)      (1,058)                (162)    5,664      370    (28,614) 
Parcel "A"    496,391    393        (253,791)      (63,075)      274          40,755    220,947 
Tariff review    14,590    (32,849)    (15,340)            (1,115)            21    (34,693) 
Discounts TUSD and Irrigation    83,872    36,366    (82,001)                      2,927    41,164 
CVA    (56,475)        256,888    (39,488)    99,487    58,729      (19)        43,980    4,965    368,067 
Increase in PIS and COFINS    (88,867)              (24,916)              (10,847)    (124,630) 
Overcontracting    110,167        34,020    (95,136)    (7,427)                (2,249)    39,375 
Low Income Consumers’ Subsidy    47,343    65,299    (2,356)                  (48,934)      (118)    61,234 
Return to consumer - IRT Recalculation    (26,213)          26,213                   
Other financial components    21,563    146    (14,511)    180    (1,865)    6,839    (3,825)    134    (2,250)      (6,167)    149    (574)    (181) 
Total net    572,847    69,355    (118,808)    291,088    (364,067)    98,899    (33,087)    (981)    (1,995)    (800)    (49,437)    44,129    35,854    542,997 

 

 

 

36

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

( 4 )       CASH AND CASH EQUIVALENTS

  Parent Company    Consolidated 
  March 31, 2010    December 31, 2009    March 31, 2010    December 31, 2009 
Bank deposits  1,235    5,029    38,683    311,527 
Short-term financial investments  216,723    214,097    1,646,019    1,161,648 
Total  217,958    219,126    1,684,702    1,473,175 

The short-term financial investments refer to short term operations with national financial institutions under normal market conditions and rates, with daily liquidity, low credit risk and average interest of 100% of the Interbank Deposit rate (CDI).

 

 

 

( 5 )     CONSUMERS, CONCESSIONAIRES AND LICENSEES

In the consolidated financial statements, the balance derives mainly from the supply of electric energy.  The following table shows the breakdown as of March 31, 2010 and December 31, 2009:

 

    Consolidated
      Past due    Total 
    Balances Coming due     Up to 90 days    More than 90 days    March 31, 2010    December 31, 2009 
Current                     
Consumer Classes                     
   Residential    290,177    203,558    19,448    513,183    485,541 
   Industrial    126,870    83,220    37,780    247,870    264,798 
   Commercial    109,190    58,142    17,794    185,126    189,080 
   Rural    24,757    7,452    1,274    33,483    32,671 
   Public Administration    51,701    6,307    889    58,897    60,943 
   Public Lighting    32,903    2,666    16,365    51,934    60,557 
   Public Service    28,366    4,992    271    33,629    35,380 
Billed    663,964    366,337    93,821    1,124,122    1,128,970 
   Unbilled    476,447        476,447    388,162 
   Financing of Consumers' Debts    63,443    9,537    30,016    102,996    91,437 
   Regulatory assets (note 3)    15,584        15,584    15,031 
   CCEE Transactions    12,819        12,819    14,174 
   Concessionaires and Licensees    156,304        156,304    182,973 
   Collection in process of classification    (26,971)        (26,971)    1,116 
   Other    19,231    165    1,797    21,193    18,244 
Total    1,380,821    376,039    125,634    1,882,494    1,840,107 
 
Noncurrent                     
   Financing of Consumers' Debts    137,986        137,986    140,893 
   Regulatory assets (note 3)    4,861        4,861    1,465 
   CCEE Transactions    41,301        41,301    41,301 
   Concessionaires and Licensees    31,991        31,991    42,655 
Total    216,139    -    -    216,139    226,314 

 

 

Collection in process of Classification - This refers to amounts received that are pending identification, mainly related to accounts receivable from electric energy consumers. The credit balance of R$ 26,971 at March 31, 2010 refers to amounts received where the accounts receivable were not written off due to the implementation of the new billing system – “CCS”.

37

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

( 6 )     FINANCIAL INVESTMENTS

In 2005, through a Private Credit Agreement, the Company acquired the credit arising from the Purchase and Sale of Electric Energy Agreement between Companhia Energética de São Paulo (“CESP”) (seller) and CPFL Brasil (purchaser), referring to the supply of energy for a period of 8 years. The amounts handed over by the Company to CESP will be settled by CPFL Brasil using the funds derived from the acquisition of energy produced by that company.

As of March 31, 2010, the current assets balance of the parent company is R$ 39,615 (R$ 39,253 as of December 31, 2009), and the noncurrent assets balance is R$ 57,338 (R$ 62,179 as of December 31, 2009).  The operation is subject to interest of 17.5% p.a., plus the annual variation of the IGP-M, and is amortized in monthly installments of amounts corresponding to the purchase of energy.

 

 

( 7 )     RECOVERABLE TAXES

    Parent Company    Consolidated 
    March 31, 2010    December 31, 2009    March 31, 2010    December 31, 2009 
Current                 
Social Contribution Prepayments - CSLL      42    336    7,857 
Income Tax Prepayments - IRPJ      3,023    545    19,222 
Social Contribution and Income Tax    42,983    9,367    82,239    25,451 
Withholding Income Tax - IRRF    1,737    31,867    25,237    64,165 
ICMS (State VAT)        41,247    49,288 
PIS (Tax on Revenue)        4,025    3,785 
COFINS (Tax on Revenue)    42      12,338    12,980 
INSS (Social Security)        1,144    1,142 
Other        7,295    7,093 
Total    44,763    44,310    174,406    190,983 
 
Noncurrent                 
Social Contribution Tax - CSLL        30,854    29,999 
Income Tax - IRPJ        1,001    1,001 
PIS (Tax on Revenue)    2,787    2,787    2,787    2,787 
ICMS (State VAT)        68,814    70,992 
Other        5,828    5,235 
Total    2,787    2,787    109,284    110,014 

 

 

( 8 )     ALLOWANCE FOR DOUBTFUL ACCOUNTS

    Consolidated 
Balance at December 31, 2009    (81,974) 
Additional Allowance Recorded    (21,349) 
Recovery of Revenue    9,576 
Write-off of Accounts Receivable    13,047 
Balance at March 31, 2010    (80,700) 

 

38

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

( 9 )     PREPAID EXPENSES 

    Consolidated
    Current    Noncurrent 
    March 31, 2010    December 31, 2009    March 31, 2010    December 31, 2009 
Regulatory assets - (note 3)    119,939    115,781    44,729    57,628 
Other    25,414    8,305    5,713    6,573 
Total    145,353    124,086    50,442    64,201 

 

 

( 10 )  DEFERRED TAXES

 

10.1- Composition of the tax credits:

    Parent Company    Consolidated 
    March 31, 2010    December 31, 2009    March 31, 2010    December 31, 2009 
Social Contribution Credit on:                 
Tax Loss Carryforwards    42,048    42,048    50,240    52,174 
Tax Benefit on Merged Goodwill        186,485    191,183 
Temporarily Nondeductible Differences    112    89    71,193    69,231 
Subtotal    42,160    42,137    307,918    312,588 
Income Tax Credit on:                 
Tax Loss Carryforwards    128,552    128,553    132,347    132,471 
Tax Benefit of Merged Goodwill        627,265    641,758 
Temporarily Nondeductible Differences    2,808    2,698    197,691    192,196 
Subtotal    131,360    131,251    957,303    966,425 
Credits of PIS and COFINS on:                 
Temporarily Nondeductible Differences        1,626    1,502 
Total    173,520    173,388    1,266,847    1,280,515 
Current    16,320    16,320    163,148    162,779 
Noncurrent    157,200    157,068    1,103,699    1,117,736 
Total    173,520    173,388    1,266,847    1,280,515 

 

The estimates of recovery of deferred tax credits recorded in noncurrent assets, derived from tax losses, negative bases, temporary non-deductible differences and tax benefit of merged goodwill, are based on projections of future income, approved by the Board of Directors and examined by the Fiscal Council.

 

 

10.2 - Tax Benefit on Merged Goodwill:

 

The tax benefit on merged goodwill refers to the tax credit calculated on the merged goodwill on acquisition of permanent interests and is recorded in accordance with CVM Instructions nº 319/99 and nº 349/01. The benefit is realized in proportion to amortization of the merged goodwill, in accordance with the projected net income of the subsidiaries during the remaining term of the concession, as shown in Note 14.

39

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

    Consolidated
    March 31, 2010    December 31, 2009 
    Social Contribution Tax (CSLL)    Income Tax (IRPJ)    Social Contribution Tax (CSLL)    Income Tax (IRPJ) 
CPFL Paulista    101,447    281,798    103,735    288,152 
CPFL Piratininga    22,724    77,973    23,207    79,631 
RGE    43,563    179,903    44,378    183,269 
CPFL Santa Cruz    5,342    17,756    5,862    18,435 
CPFL Leste Paulista    3,301    9,133    3,451    9,586 
CPFL Sul Paulista    4,813    13,299    5,020    13,943 
CPFL Jaguari    2,896    8,013    3,027    8,411 
CPFL Mococa    1,884    5,208    1,966    5,461 
CPFL Geração      32,753      33,379 
CPFL Serviços    515    1,429    537    1,491 
Total    186,485    627,265    191,183    641,758 

 

10.3 – Accumulated balances on temporary nondeductible differences:

 

  Consolidated
  March 31, 2010   December 31, 2009
  Social Contribution Tax (CSLL)   Income Tax (IRPJ)    PIS and COFINS    Social Contribution Tax (CSLL)    Income Tax (IRPJ)    PIS and COFINS 
Reserve for Contingencies  11,762    32,791      11,434    31,833   
Pension Plan Expenses  3,823    11,619      4,097    12,377   
Allowance for Doubtful Accounts  6,837    18,993      6,943    19,291   
Free energy adjustment (note 3a.1)  3,351    9,307      2,928    8,129   
Research and Development and Energy Efficiency Programs  16,759    46,546      16,297    45,263   
Profit Sharing  2,666    8,153      1,986    6,267   
Differences in Depreciation Rates - RGE  9,679    26,886      9,898    27,494   
Regulatory liability - Increase in PIS and COFINS  11,122    30,892      10,821    30,058   
Provision for overcontracting (Note 3 c.5)  933    2,593    878    933    2,593    876 
Effects of Law nº 11,638/07  754    2,095    596    792    2,197    474 
Other  3,507    7,816    152    3,102    6,694    152 
Total  71,193    197,691    1,626    69,231    192,196    1,502 

 

40

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

10.4 - Reconciliation of the amounts of income tax and social contribution reported in the quarters ended March 31, 2010 and 2009:

  Parent Company
  1st quarter 2010    1st quarter 2009 
  Social Contribution Tax (CSLL)    Income Tax (IRPJ)    Social Contribution Tax (CSLL)    Income Tax (IRPJ) 
Income before taxes  390,067    390,067    282,536    282,536 
Adjustments to Reflect Effective Rate:               
   - Equity on subsidiaries  (428,755)    (428,755)    (331,144)    (331,144) 
   - Intangible asset (goodwill) amortization  28,945    35,362    30,330    37,187 
   - Other Permanent Additions, net  420    468    452    492 
   Calculation base  (9,323)    (2,858)    (17,826)    (10,929) 
    Statutory Tax Rate  9%    25%    9%    25% 
Tax Credit Result  839    715    1,604    2,732 
- Tax Credit Not Recorded  (816)    (606)    (1,674)    (2,495) 
Total  23    109    (70)    237 
 
  Consolidated
  1st quarter 2010    1st quarter 2009 
  Social Contribution Tax (CSLL)    Income Tax (IRPJ)    Social Contribution Tax (CSLL)    Income Tax (IRPJ) 
Income before taxes  615,292    615,292    453,718    453,718 
Adjustments to Reflect Effective Rate:               
   - Intangible asset (goodwill) amortization  28,945    35,765    30,330    37,586 
   - CMC Realization  3,190      3,542   
   - Effect of Presumed Profit System  (6,890)    (7,979)    (9,274)    (10,916) 
   - Other Permanent Additions (Exclusions), net  1,795    (3,060)    3,541    4,110 
  Calculation base  642,332    640,018    481,857    484,498 
   Statutory Tax Rate  9%    25%    9%    25% 
Tax Debit Result  (57,810)    (160,005)    (43,367)    (121,125) 
 - Tax Credit Not Recorded  (1,729)    (3,130)    (1,808)    (2,629) 
Total  (59,539)    (163,135)    (45,175)    (123,754) 

 

 

 

( 11 )  OTHER CREDITS

    Consolidated
    Current    Noncurrent 
    March 31,    December    March 31,    December 
    2010    31, 2009    2010    31, 2009 
Receivables from CESP      8,923     
Receivables from BAESA's shareholders    15,777    15,503    11,832    15,503 
Advances - Fundação CESP    6,344    6,299     
Advance to suppliers    9,642    6,134     
Pledges, Funds and Tied Deposits    2,868    1,696    42,715    36,883 
Fund Tied to Foreign Currency Loans        19,621    19,148 
Orders in Progress    10,185    4,420     
Services Rendered to Third Parties    46,931    48,845     
Reimbursement RGR    4,817    5,504    1,611    1,611 
Advance Energy Purchase Agreements    15,111    13,989    55,742    57,537 
Lease    3,189    2,949    22,688    21,243 
Other    40,160    30,793    8,831    8,835 
Total    155,024    145,055    163,040    160,760 

41

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

( 12 )   INVESTMENTS

    Parent Company    Consolidated 
    March 31,    December 31,    March 31,    December 31, 
    2010    2009    2010    2009 
Permanent Equity Interests:                 
At equity method    3,678,260    3,249,508     
At cost method        117,686    117,629 
Negative goodwill    (12,828)    (12,828)    (12,828)    (12,828) 
Goodwill    1,473,402    1,508,764     
Total    5,138,834    4,745,444    104,858    104,801 

 

12.1 - Permanent Equity Interests:

The main information on the investments in direct permanent equity interests is as follows:

                        March 31,    December 31,    1st quarter    1st quarter 
            March 31, 2010   2010    2009    2010    2009 
Investment    Number of
(thousand)
Shares held 
  Interest - %    Capital    Shareholders
Equity
 
  Net Income    Shareholders Equity Interest   Equity in Subsidiaries
CPFL Paulista    72,650    100%    72,650    644,294    146,906    644,294    497,388    146,906    85,279 
CPFL Piratininga    53,031,259    100%    62,735    318,556    88,018    318,556    230,538    88,018    66,010 
RGE    807,168    100%    851,861    1,156,910    51,299    1,156,910    1,105,611    51,299    48,339 
CPFL Santa Cruz    371,772    99.99%    45,330    85,790    5,655    85,783    80,129    5,654    5,746 
CPFL Leste Paulista    895,373    95.92%    12,217    42,465    2,245    41,539    39,386    2,153    1,929 
CPFL Jaguari    211,844    87.27%    5,716    33,803    2,813    31,759    29,304    2,455    1,421 
CPFL Sul Paulista    445,317    86.73%    10,000    45,059    3,041    42,664    40,022    2,642    2,746 
CPFL Mococa    116,989    86.73%    9,850    30,662    1,768    28,015    26,481    1,534    1,458 
CPFL Geração    205,487,716    100%    1,039,618    1,220,333    63,339    1,220,333    1,156,994    63,339    70,026 
CPFL Brasil    2,999    100%    2,999    65,705    62,107    65,705    3,598    62,107    46,532 
CPFL Atende (*)      100%      (1,286)    (27)    (1,286)    (1,259)    (27)    (386) 
CPFL Planalto (*)    630    100%    630    3,208    2,578    3,208    630    2,578    1,752 
CPFL Serviços    1,443,141    87.82%    5,800    989    (1,335)    1,177    2,350    (1,173)    (786) 
CPFL Jaguariuna    189,620    100%    2,481    2,122    (58)    2,122    2,180    (58)    (231) 
CPFL Jaguari Geração    40,072    87.34%    40,108    42,915    1,520    37,481    36,156    1,328    1,309 
Total                        3,678,260    3,249,508    428,755    331,144 
(*) Number of quotes
The capital and shareholders' equity of the subsidiary Chumpitaz is R$ 100.00 (one hundred reais)

 

12.2 – Interest on Shareholders’ Equity and Dividends Receivable:

 

    Parent Company
    Dividend    Interest on Shareholders’ Equity    Total 
    March 31,    December 31,    March 31,    December 31,    March 31,    December 31, 
Subsidiaries    2010    2009    2010    2009    2010    2009 
CPFL Paulista    255,308    255,308    12,683    12,683    267,991    267,991 
CPFL Piratininga    169,938    169,938    12,002    12,002    181,940    181,940 
RGE    91,391    91,391    30,045    30,045    121,436    121,436 
CPFL Santa Cruz    17,332    24,331    2,044    2,044    19,376    26,375 
CPFL Geração    121,936    121,936    29,072    29,072    151,008    151,008 
CPFL Brasil    109,466    109,466        109,466    109,466 
CPFL Leste Paulista    11,528    11,528    2,361    2,361    13,889    13,889 
CPFL Sul Paulista    10,551    10,551    1,965    1,965    12,516    12,516 
CPFL Jaguari    5,069    5,069    694    694    5,763    5,763 
CPFL Mococa    5,047    5,047    639    639    5,686    5,686 
CPFL Serviços    3,648    3,648        3,648    3,648 
CPFL Planalto    4,152    4,152        4,152    4,152 
CPFL Jaguari Geração    5,011    5,011        5,011    5,011 
    810,377    817,376    91,505    91,505    901,882    908,881 

 

42

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

In the first quarter of 2010, the Company received R$ 6,999 in relation to interim dividends declared in 2009.

 

12.3 – Investment at cost

 

Refers mainly to the participation of the indirect subsidiary Paulista Lajeado Energia S.A. of 5.94% in the total capital of Investco S/A, comprising 28,154 common shares and 18,529 preferred shares. This investment is recorded on a cost basis. Due to the participation of minority shareholders in the form of (i) preferred shares representing 39.69% of the total capital of Paulista Lajeado, and (ii) beneficiaries (founder-shares) which assign the right to 10% of net income before profit sharing, these effects, totaling R$ 73,930, were registered in the liabilities of the consolidated financial statements under Noncontrolling Shareholders Interest.

 

 

12.4 – Goodwill

 

The goodwill refers mainly to the acquisition of investments (right to operate the concessions).  In the quarterly consolidated financial statements, these amounts are shown under Intangible Assets, as described in Note 14.

 

 

( 13 )   PROPERTY, PLANT AND EQUIPMENT

 

        Consolidated     
    March 31, 2010   December 31, 
2009
    Historical Cost    Accumulated
Depreciation
  Net Value    Net Value 
In Service                 
- Distribution    8,529,289    (4,377,389)    4,151,900    4,126,985 
- Generation    2,161,433    (262,328)    1,899,105    1,911,270 
- Commercialization    163,455    (77,865)    85,590    89,176 
- Administration    145,724    (90,420)    55,304    54,595 
- Leased assets    943,351    (269,858)    673,493    679,232 
    11,943,252    (5,077,860)    6,865,392    6,861,258 
In Progress                 
- Distribution    380,842      380,842    329,017 
- Generation    1,436,036      1,436,036    1,307,776 
- Commercialization    13,623      13,623    13,173 
- Administration    39,161      39,161    29,975 
    1,869,662    -    1,869,662    1,679,941 
Subtotal    13,812,914    (5,077,860)    8,735,054    8,541,199 
Special obligations linked to the concession            (1,063,805)    (1,053,983) 
Total            7,671,249    7,487,216 

 

The average depreciation rate of the assets is 4.8% p.a. for the distributors and 2.6% p.a. for the generators.

 

43

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

The balance of construction in progress in the generation segment mainly refers to work in progress on the projects of the operating subsidiaries and/or those under development, particularly the Foz do Chapecó and EPASA generation projects, with total property, plant and equipment of R$ 2,215,865 and R$ 382,034, respectively (R$ 1,130,091 and R$ 194,837, in proportion to the Company’s participation).

 

 

( 14 )  INTANGIBLE ASSETS

 

 

    Parent Company    Consolidated 
    March 31, 2010    December 31, 2009   March 31, 2010    December 31, 2009
Intangible concession asset        2,138,273    2,182,961 
Other intangible assets    4,410    4,468    387,028    371,439 
Total    4,410    4,468    2,525,301    2,554,400 

 

14.1 Breakdown of the Intangible Concession Asset

 

44

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

    Consolidated
    March 31, 2010   December 31,
2009
 
   Annual amortization rate
    Historical
Cost
 
  Accumulated
Amortization
  Net Value    Net Value    March 31, 2010    December 31,
2009
INTANGIBLE CONCESSION ASSET                         
Intangible asset acquired. not merged                         
  Parent Company                         
  CPFL Paulista    304,861    (85,896)    218,965    223,937    5.93%    6.38% 
  CPFL Piratininga    39,065    (10,649)    28,416    29,019    6.19%    6.65% 
  CPFL Geração    54,555    (15,448)    39,107    39,898    5.83%    5.99% 
  RGE    3,150    (436)    2,714    2,765    6.53%    6.14% 
    401,631    (112,429)    289,202    295,619         
  Subsidiaries                         
  ENERCAN    10,233    (1,784)    8,449    8,626    6.93%    5.78% 
  Barra Grande    3,081    (875)    2,206    2,252    5.92%    5.85% 
  Chapecoense    7,376      7,376    7,376     
  EPASA    498      498    498     
  Santa Clara I    4,571      4,571    4,571     
  Santa Clara II    4,571      4,571    4,571     
  Santa Clara III    4,571      4,571    4,571     
  Santa Clara IV    4,571      4,571    4,571     
  Santa Clara V    4,571      4,571    4,571     
  Santa Clara VI    4,571      4,571    4,571     
  Eurus VI    1,147      1,147    1,147     
  Other    14,488    (10,688)    3,800    3,980    6.22%    6.06% 
    64,249    (13,347)    50,902    51,305         
Subtotal    465,880    (125,776)    340,104    346,924         
Intangible asset acquired and merged – Deductible                     
   Subsidiaries                         
  RGE    1,120,266    (725,339)    394,927    399,666    3.76%    4.03% 
  CPFL Geração    426,450    (207,408)    219,042    223,226    6.22%    6.03% 
Subtotal    1,546,716    (932,747)    613,969    622,892         
Intangible asset acquired and merged – Reassessed                     
Parent Company                         
CPFL Paulista    1,074,026    (367,744)    706,282    722,207    5.93%    6.38% 
CPFL Piratininga    115,762    (31,557)    84,205    85,995    6.19%    6.65% 
RGE    310,128    (52,175)    257,953    262,839    6.33%    5.96% 
CPFL Santa Cruz    61,685    (22,858)    38,827    40,843    13.07%    14.26% 
CPFL Leste Paulista    27,034    (5,388)    21,646    22,693    15.48%    16.06% 
CPFL Sul Paulista    38,168    (7,522)    30,646    32,090    15.14%    15.92% 
CPFL Jaguari    23,600    (4,511)    19,089    20,018    15.76%    15.18% 
CPFL Mococa    15,124    (3,140)    11,984    12,588    15.96%    16.77% 
CPFL Jaguari Geração    15,275    (1,707)    13,568    13,872    7.94%    9.19% 
    1,680,802    (496,602)    1,184,200    1,213,145         
 
Subtotal    1,680,802    (496,602)    1,184,200    1,213,145         
 
Total    3,693,398    (1,555,125)    2,138,273    2,182,961         

 

 

·         Intangible assetsConcession

The differences between the amount paid and the equity of acquired companies on the acquisition dates.  Correspond to the parent company’s future benefit of the right to exploit the concession and are classified as intangible assets with a fixed useful life, amortized in proportion to the concessionaires’ projected net income curves for the remaining term of the concession contract. The intangible concession assets are as follows:

- Intangible assets acquired, not merged

In the parent company, refer mainly to the remaining goodwill on the acquisition of shares held by the noncontrolling shareholders of CPFL Geração in June 2005, CPFL Paulista and CPFL Piratininga in November 2005 and RGE in December 2007.

45

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

- Intangible assets acquired and merged – Deductible

Relates to the goodwill on the acquisition of the subsidiaries that was merged with the respective net equities, without application of CVM Instructions nº 319/99 and nº 349/01, that is, without segregation of the amount corresponding to the tax benefit.

- Intangible asset acquired and merged – Reassessed

In order to comply with ANEEL instructions and avoid the goodwill amortization resulting from the merger of a parent company causing a negative impact on dividends paid to the shareholders, the subsidiaries applied the concepts of CVM Instructions nº 319/99 and nº 349/01 on the acquisition goodwill. A reserve was therefore recorded to adjust the goodwill, set against the equity reserves of the subsidiaries, so that the effect on the equity reflects the tax benefit of the merged goodwill. These changes affected the Company's investment in the subsidiaries, and in order to adjust this, non-deductible goodwill was recorded for tax purposes.

 

14.2  - Other Intangible assets

The Other Intangible Assets balance comprises mainly software with a defined useful life, amortized at 20% p.a., and easement rights, with an indefinite useful life, recovery of which is analysed in accordance with CPC 01 “Impairment of Assets”.

 

The changes in the balance of corporate interests in the quarter ended March 31, 2010 are as follows:

 

 

  Consolidated
  December 31, 2009    Addition    Disposal    Amortization    March 31, 2010 
Intangible asset acquired, not merged                   
Historical cost  465,880          465,880 
Accumulated Amortization  (118,956)        (6,820)    (125,776) 
  346,924        (6,820)    340,104 
Intangible asset acquired and merged – Deductible                   
Historical cost  1,546,716          1,546,716 
Accumulated Amortization  (923,824)        (8,923)    (932,747) 
  622,892        (8,923)    613,969 
Intangible asset acquired and merged – Reassessed                   
Historical cost  1,680,802          1,680,802 
Accumulated Amortization  (467,657)        (28,945)    (496,602) 
  1,213,145        (28,945)    1,184,200 
         
Subtotal  2,182,961    -    -    (44,688)    2,138,273 
Other intangible assets  371,439    23,576    (110)    (7,877)    387,028 
         
Total  2,554,400    23,576    (110)    (52,565)    2,525,301 

 

14.3 - Concession Agreements

 

On signing their respective Concession Agreements, the jointly-controlled subsidiaries CERAN, ENERCAN, BAESA and Foz do Chapecó and the indirect subsidiary Paulista Lajeado assumed obligations to the Federal Government in relation to the granting of the concession, as “Public Utilities”. The liabilities are restated annually by the variation in the General Market Price Index – IGP-M.

 

The subsidiaries record the grant amounts in expense, according to the contractual maturity dates.

 

46

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

( 15 )  INTEREST, LOANS AND FINANCING

 

    Consolidated
    March 31, 2010   December 31, 2009
    Interest Current and Noncurrent    Principal    Total   Interest Current and Noncurrent    Principal    Total
      Current   Noncurrent       Current   Noncurrent  
At cost                                 
LOCAL CURRENCY                                 
BNDES - Power Increases    76    6,814    11,959    18,849    86    7,321    13,538    20,945 
BNDES - Investment    10,488    325,095    2,322,434    2,658,017    10,168    344,048    2,262,436    2,616,652 
BNDES - Purchase of assets    47    966    5,331    6,344    49    661    5,628    6,338 
BNDES - Working Capital    233    4,172    45,887    50,292         
Furnas Centrais Elétricas S.A.      15,769      15,769    379    46,028      46,407 
Financial Institutions    8,994    275,105    62,823    346,922    10,325    181,922    164,054    356,301 
Other    558    22,404    29,056    52,018    554    22,181    30,693    53,428 
Subtotal    20,396    650,325    2,477,490    3,148,211    21,561    602,161    2,476,349    3,100,071 
FOREIGN CURRENCY                                 
IDB    271    3,814    51,571    55,656    260    3,652    51,379    55,291 
Financial Institutions    1,215    4,009    47,566    52,790    541    3,920    46,503    50,964 
Subtotal    1,486    7,823    99,137    108,446    801    7,572    97,882    106,255 
Total at cost    21,882    658,148    2,576,627    3,256,657    22,362    609,733    2,574,231    3,206,326 
At Fair Value                                 
FOREIGN CURRENCY                                 
Financial Institutions    77,229    653,835    388,925    1,119,989    66,608    87,490    941,005    1,095,103 
Total    77,229    653,835    388,925    1,119,989    66,608    87,490    941,005    1,095,103 
Total    99,111    1,311,983    2,965,552    4,376,646    88,970    697,223    3,515,236    4,301,429 

 

47

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

    Consolidated             
    March 31, 2010   December 31, 2009    Remuneration    Amortization    Collateral 
At cost                 
Local currency                     
BNDES - Power Increases                     
CPFL Geração    18,793    20,847    TJLP + 3.1% to 4.3% p.a.    36 to 84 monthly installments from February 2003 to December 2008    Guarantee of CPFL Paulista and CPFL Energia 
CPFL Geração    56    98    UMBND + 4.0% p.a.    72 monthly installments from September 2004    Guarantee of CPFL Paulista and CPFL Energia 
BNDES - Investment                     
CPFL Paulista - FINEM II    47,741    63,655    TJLP + 5.4% p.a.    48 monthly installments from January 2007    Guarantee of CPFL Energia and receivables 
CPFL Paulista - FINEM III    100,888    107,614    TJLP + 3.3% p.a.    72 monthly installments from January 2008    Guarantee of CPFL Energia and receivables 
CPFL Paulista - FINEM IV    234,312    237,325    TJLP + 3.28% to 3.4% p.a.    60 monthly installments from January 2010    Guarantee of CPFL Energia and receivables 
CPFL Piratininga - FINEM I    17,777    23,702    TJLP + 5.4%p.a.    48 monthly installments from January 2007    Guarantee of CPFL Energia and receivables 
CPFL Piratininga - FINEM II    59,931    63,927    TJLP + 3.3%p.a.    72 monthly installments from January 2008    Guarantee of CPFL Energia and receivables 
CPFL Piratininga - FINEM III    99,741    104,990    TJLP + 3.28% to 3.4% p.a.    60 monthly installments from January 2010    Guarantee of CPFL Energia and receivables 
RGE - FINEM III    61,678    67,285    TJLP + 5.0% p.a.    60 monthly installments from January 2008    Receivables / Reserve account 
RGE - FINEM IV    164,753    173,424    TJLP + 3.28 to 3.40% p.a.    60 monthly installments from January 2010    receivables / Fiança da CPFL Energia 
CPFL Santa Cruz    9,320    2,255    TJLP + 2.00% to 2.90% p.a.    54 monthly installments from December 2010    Guarantee of CPFL Energia 
CPFL Mococa    3,018    3,018    TJLP + 2.9% p.a.    54 monthly installments from January 2011    Guarantee of CPFL Energia and receivables 
CPFL Jaguari    2,497    2,498    TJLP + 2.9% p.a.    54 monthly installments from December 2010    Guarantee of CPFL Energia and receivables 
CPFL Leste Paulista    2,022    2,024    TJLP + 2.9% p.a.    54 monthly installments from June 2011    Guarantee of CPFL Energia and receivables 
CPFL Sul Paulista    3,347    3,350    TJLP + 2.9% p.a.    54 monthly installments from June 2011    Guarantee of CPFL Energia and receivables 
BAESA    132,120    136,045    TJLP + 3.125% to 4.125%p.a.    144 monthly installments from September 2006    Pledge of shares, credit rights and revenue 
BAESA    27,882    28,058    UMBND + 3.125% p.a. (1)    144 monthly installments from November 2006    Pledge of shares, credit rights and revenue 
ENERCAN    298,901    307,203    TJLP + 4% p.a.    144 monthly installments from April 2007    Letters of Credit 
ENERCAN    18,459    18,557    UMBND + 4% p.a.    144 monthly installments from April 2007    Letters of Credit 
CERAN    265,696    271,336    TJLP + 5% p.a.    168 monthly installments from December 2005    Guarantee of CPFL Energia 
CERAN    40,018    39,638    UMBND + 5% p.a. (1)    168 monthly installments from February 2006    Guarantee of CPFL Energia 
CERAN    120,668    123,034    TJLP + 3.69% p.a. (Average of percentage)    168 monthly installments from November 2008    Guarantee of CPFL Energia 
Foz do Chapecó    901,115    792,209    TJLP + 2.49% to 2.95% p.a.    192 monthly installments from October 2011    Pledge of Shares, credit rights and those arising from the Concession, blocked income and guarantee of CPFL Energia 
CPFL Bioenergia    15,540    15,248    TJLP + 1.9% p.a.    144 monthly installments from June 2011    Trust property, credit rights and guarantee of CPFL Energia 
CPFL Bioenergia    30,593    30,257    4.5% p.a.    102 monthly installments from June 2011    Trust property, credit rights and guarantee of CPFL Energia 
BNDES - Other                     
CPFL Brasil - Purchase of assets    6,344    6,338    TJLP + from 1.94% to 2.84% p.a.    36 monthly installments from May 2009    Linked to the asset acquired 
CPFL Piratininga - Working capital    50,292       TJLP + 5.0%     24 monthly installments from February 2011    No guarantee 
Furnas Centrais Elétricas S.A.                     
CPFL Geração    15,769    46,407    IGP-M + 10% p.a. (2)    24 monthly installments from June 2008    Energy produced by plant 
Financial Institutions                     
CPFL Paulista                     
Banco do Brasil - Law 8727    38,410    39,314    IGP-M + 7.42% p.a.    240 monthly installments from May 1994    Receivables 
CPFL Piratininga                     
Banco Alfa    50,000    50,017    105.1% of CDI    1 installment in April 2010    No guarantee 
CPFL Santa Cruz                     
HSBC    41,681    40,747    CDI + 1.10% p.a.    1 installment in June 2011    Guarantee of CPFL Energia 
CPFL Geração                     
Banco Itaú BBA    100,557    102,750    106.0% of CDI    1 installment in March 2011    Guarantee of CPFL Energia 
Banco Alfa    99,485    99,485    105.1% of CDI    1 installment in April 2010    Guarantee of CPFL Energia 
CERAN                     
Banco Bradesco    16,789    23,988    CDI + 2% p.a.    24 monthly installments from November 2008    No guarantee 
                 
Other                     
Eletrobrás                     
CPFL Paulista    7,554    8,648    RGR + 6.0% to 9.0% p.a.    Monthly installments until July 2016    Receivables and Notas Promissórias 
CPFL Piratininga    1,292    1,415    RGR + 6% p.a.    Monthly installments until July 2016    Receivables and Notas Promissórias 
RGE    11,921    12,095    RGR + 6% p.a.    Monthly installments until June 2020    Receivables and Notas Promissórias 
CPFL Santa Cruz    4,482    4,660    RGR + 6% p.a.    Monthly installments until April 2018    Receivables and Notas Promissórias 
CPFL Leste Paulista    1,190    1,011    RGR + 6% p.a.    Monthly installments until February 2022    Receivables and Notas Promissórias 
CPFL Sul Paulista    1,730    1,779    RGR + 6% p.a.    Monthly installments until July 2018    Receivables and Notas Promissórias 
CPFL Jaguari    30    31    RGR + 6% p.a.    Monthly installments until May 2017    Receivables and Notas Promissórias 
CPFL Mococa    430    285    RGR + 6% p.a.    Monthly installments until February 2022    Receivables and Notas Promissórias 
Other    23,389    23,504             
Local Currency - At cost    3,148,211    3,100,071             
Foreign currency                     
IDB - Enercan    55,656    55,291    US$ + Libor + 3.5% p.a.    49 quarterly installments from June 2007    Guarantee of CPFL Energia 
Financial Institutions                     
CPFL Paulista (7)                     
Debt Conversion Bond    5,363    5,207    US$ + Libor 6 months + 0.875% p.a.    17 semiannual installments from April 2004    Revenue/Government SP guaranteed 
C-Bond    8,830    8,462    US$ + 8% p.a.    21 semiannual installments from April 2004    Revenue/Government SP guaranteed 
Discount Bond    15,717    15,264    US$ + Libor 6 months+ 0.8125% p.a.    1 installment in April 2024    Escrow deposits and revenue/ Gov.SP guarantee 
PAR-Bond    22,880    22,031    US$ + 6% p.a.    1 installment in April 2024    Escrow deposits and revenue/ Gov.SP guarantee 
Foreign currency - At cost    108,446    106,255             
Total at cost    3,256,657    3,206,326             
Foreign currency                     
At fair Value                     
Financial institution                     
CPFL Paulista                     
Banco do Brasil    103,996    101,233    Yen + 5.7778% p.a. (3)    1 installment in January 2011    No guarantee 
Banco ABN AMRO Real    392,651    385,969    Yen +1.49% p.a.(4)    1 installment in January 2012    No guarantee 
CPFL Geração                     
Banco do Brasil    104,141    101,332    Yen + 5.8% p.a. (5)    1 installment in April 2010    Guarantee of CPFL Energia 
Banco do Brasil    519,201    506,569    Yen + 2.5% to 5.8% p.a. (6)    1 installment in January 2011    Guarantee of CPFL Energia 
Foreign currency - Fair value    1,119,989    1,095,103             
Total - Consolidated    4,376,646    4,301,429             

48

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

The Company and its subsdiaries hold swaps converting the local cost of currency variation to interest tax variation in reais, corresponding to 
(1) 169% of CDI    (3) 104.5% of CDI    (5) 104.2% of CDI 
(2) 106.5% to 107.0% of CDI    (4) 104.98% of CDI    (6) 104.5% of CDI 
(7) As certain assets are dollar indexed, a partial swap of R$ 32.049 was contracted, converting the currency variation to 113% and 113.7 % of the CDI.

 

As shown in the breakdown in the figures above, the Company and its subsidiaries, in compliance with CPC 14 Financial Instruments, classified their debts as (i) financial liabilities not measured at fair value (or measured at cost), and (ii) financial liabilities calculated at fair value through profit or loss.

The objective of classification as financial liabilities measured at fair value is to compare the effects of recognition of income and expenses derived from marking to market the  derivatives used as a hedge tied to the respective debts in order to obtain more relevant and consistent accounting information. The following figure provides additional information as to the cost value of the debts and the comparison with the respective fair values:

 

    March 31, 2010
    Value at cost   Fair value (accounting balance)
    Interest - Current and noncurrent    Principal    Total  
Foreign Currency     Current    Noncurrent     
 
At fair value                     
CPFL Paulista                     
Banco do Brasil    11,233    93,196      104,429    103,996 
Banco ABN AMRO Real    3,726      391,420    395,146    392,651 
CPFL Geração                     
Banco do Brasil    62,270    562,688      624,958    623,342 
Total Foreign currency - Consolidated    77,229    655,884    391,420    1,124,533    1,119,989 

 

 

The changes in the fair values of these debts are recorded in the financial income (expense) of the Company and its subsidiaries. The gains obtained by marking these debts to market (R$ 4,544) are offset by the effects of R$ 10,725 obtained by marking to market the derivative financial instruments contracted as a hedge against exchange and interest variations (Note 28), generating a net loss of R$ 6,181.

 

 

Main funding in the period:

Local currency

 

BNDES –FINEM IV Investment (CPFL Paulista) - The subsidiary obtained a financing of R$ 345,990 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. The amount of R$ 8,837 was received in the quarter and the remaining estimated balance of R$ 101,025 is scheduled for release by the end of the second quarter of 2010.

 

BNDES – Working Capital (CPFL Piratininga) – The subsidiary obtained a BNDES financing of R$ 50,000 in 2010, part of a BNDES pass-through credit line from Banco Bradesco, to reinforce its cash position. The interest will be capitalized monthly during the grace period, which runs until January 15, 2011, and the principal and interest will be amortized in 24 installments from February 15, 2011. There are no restrictive conditions.

 

 

49

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

BNDES – Investimento (Foz do Chapecó) – in 2007, the subsidiary obtained a BNDES financing of R$ 1,633,155 (R$ 832,909 in proportion to the participation of the subsidiary CPFL Geração), for investment in the construction on the Foz do Chapecó Hydropower Plant. The subsidiary received the amount of R$ 180,927 in the quarter, (R$ 92,273 in proportion to the participation of CPFL Geração), and the estimated remaining balance of R$ 70,000 (R$ 35,700 in proportion to the participation of CPFL Geração) is scheduled for release by the first semester of 2010.  The interest and principal will be paid monthly from October 2011.

 

BNDES – Investment (Santa Cruz) – The Company obtained approval for financing of R$ 20,985 by Unibanco in 2008, part of a credit line to be used to acquire equipment and expansion and to upgrade the Electricity System. The Company received R$ 7,063 in the first quarter of 2010 and the estimated balance of R$ 11,692 is scheduled for release by the end of 2010. The interest is paid quarterly during the grace period, after which it will be amortized on a monthly basis, in until 54 installments, together with the principal.

 

RESTRICTIVE COVENANTS

The loan and financing agreements are subject to certain restrictive covenants, containing clauses that, among other conditions, require the subsidiaries to maintain certain financial ratios within predefined parameters. Details of these restrictive covenants are presented in the financial statements as of December 31, 2009.

The Management of the Company and its subsidiaries monitor these indices systematically and constantly to ensure that the contractual conditions are complied with. In the opinion of Management of the Company and its subsidiaries, all restrictive covenants and clauses are being adequately complied with.

50

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

( 16 )  DEBENTURES

 

                        Consolidated
                        March 31, 2010   December 31, 2009
    Issued    Remuneration    Effective rate    Amortization Conditions    Collateral    Interest    Current    Noncurrent    Total    Interest    Current    Noncurrent    Total 
Parent Company                                                     
3rd Issue                                                     
Single series    45,000    CDI + 0.45% p.a. (1)    CDI + 0.53% p.a.    3 annual installments from September 2012    Unsecured    3,122      450,000    453,122    12,788      450,000    462,788 
CPFL Paulista                                                     
3rd Issue                                                     
1st series    64,000    104.4% of CDI p.a.    104.4% CDI + 0.05% p.a.    3 annual installments from December 2011    CPFL Energia guarantee    18,224      640,000    658,224    4,618      640,000    644,618 
4th Issue                                                     
Single series    175,000    110.3% of CDI p.a.    110.3% CDI + 0.79% p.a.    2 annual installments from July 2010    CPFL Energia guarantee    3,840    64,301    109,774    177,915    8,285    64,303    109,601    182,189 
                        22,064    64,301    749,774    836,139    12,903    64,303    749,601    826,807 
CPFL Piratininga                                                     
1st Issue                                                     
1st series    40,000    104.0% of CDI p.a.    104.0% CDI + 0.16% p.a.    2 annual installments from January 2010    CPFL Energia guarantee    4,136    200,000      204,136    17,690    200,000    200,000    417,690 
2nd Issue                                                     
Single series      106.45% of CDI p.a.    106.45% CDI + 0.3% p.a.    May 2. 2011    Unsecured    4,389      100,000    104,389    2,189      100,000    102,189 
                        8,525    200,000    100,000    308,525    19,879    200,000    300,000    519,879 
RGE                                                     
2nd Issue                                                     
1st series    2,620    IGP-M + 9.6% p.a.    IGP-M + 9.73% p.a.    April 1st. 2011    Unsecured    2,474    555    26,200    29,229    1,630      26,200    27,830 
3rd Issue                                                     
1st series      CDI + 0.60% p.a. (2)    CDI + 0.71% p.a.    3 annual installments from December 2011    CPFL Energia
guarantee 
  2,926      100,000    102,926    741      100,000    100,741 
2nd series      CDI + 0.60% p.a. (3)    CDI + 0.71% p.a.    3 annual installments from December 2011    CPFL Energia
guarantee 
  2,986      140,000    142,986    6,437      140,000    146,437 
3rd series      CDI + 0.60% p.a. (4)    CDI + 0.71% p.a.    3 annual installments from December 2011    CPFL Energia
guarantee 
  567      40,000    40,567    1,491      40,000    41,491 
4th series      CDI + 0.60% p.a. (5)    CDI + 0.84% p.a.    3 annual installments from December 2011    CPFL Energia
guarantee 
  2,211      50,000    52,211    1,103      50,000    51,103 
5th series      CDI + 0.60% p.a. (5)    CDI + 0.84% p.a.    3 annual installments from December 2011    CPFL Energia
guarantee 
  2,211      50,000    52,211    1,103      50,000    51,103 
4th Issue                                                     
Single series    185,000    110.30% of CDI p.a.    110.3% CDI + 0.82% p.a.    July 1st. 2011    Unsecured    4,060      183,990    188,050    8,758      183,804    192,562 
                        17,435    555    590,190    608,180    21,263    -    590,004    611,267 
CPFL Leste Paulista                                                     
1st Issue                                                     
Single series    2,400    111.90% of CDI p.a.    111.9% CDI + 0.65% p.a.    July 1st. 2011    CPFL Energia
guarantee 
  534      23,911    24,445    1,153      23,894    25,047 
CPFL Sul Paulista                                                     
1st Issue                                                     
Single series    1,600    111.00% of CDI p.a.    111% CDI + 0.6%p.a.    July 1st. 2011    CPFL Energia
guarantee 
  353      15,946    16,299    762      15,936    16,698 
CPFL Jaguari                                                     
1st Issue                                                     
Single series    1,000    111.90% of CDI p.a.  111.9% CDI +
0.79% p.a. 
  July 1st. 2011   CPFL Energia guarantee    223      9,956    10,179    480      9,948   10,428
CPFL Brasil                                                 
1st Issue                                                 
Single series    16,500    111% of CDI p.a.    111% CDI + 0.57% p.a.    July 1st. 2011   CPFL Energia guarantee    3,644      164,336    167,980    7,862      164,221  172,083 
CPFL Geração                                                 
2nd Issue                                                 
Single series    425,250    109.8% of CDI    109.8% CDI+ 0.58% p.a.    July 1st. 2011 CPFL Energia guarantee     9,289      423,600    432,889    20,039      423,295    443,334 
EPASA                                                 
1st Issue                                                 
Single series    450    112.6% of CDI p.a.  116.9% of CDI
p.a. 
  December 1st. 2010   CPFL Energia guarantee     8,812   228,726   -   237,538   3,504   228,473    231,977 
BAESA                                                 
1st series    9,000    CDI + 0.3% p.a.    CDI + 0.43% p.a.    Quarterly with settlement in August 2016    Letters of Guarantee   289    3,164    17,403    20,856    308    3,164    18,195  21,667 
2nd series    9,000    CDI + 0.4% p.a.    106% CDI + 0.12% p.a.    Annually with settlement in August 2016     Letters of Guarantee   548    3,085    6,082    9,715    343    3,085    6,075  9,503 
                    837    6,249    23,485    30,571    651    6,249    24,270    31,170 
                    74,838    499,831    2,551,198    3,125,867    101,284    499,025    2,751,169    3,351,478 
The Company and its subsdiaries hold swap converting the local cost of currency variation to interest tax variation in reais. corresponding to
(1) 104,4% of CDI

(3) 104,85% of CDI

(5) 104,87% of CDI                          
(2) 105,07% of CDI (4) 104,9% of CDI                                  

 

The interest on the debentures of subsidiaries will be paid half yearly, except for: (i) the 1st series of the indirect subsidiary BAESA, which will be paid quarterly; (ii) the 1st issue of the subsidiary CPFL Piratininga and 1st series of 2nd issue of the subsidiary RGE, which will be paid annually.

 

 

RESTRICTIVE COVENANTS

The debentures are subject to certain restrictive covenants and include clauses that require the Company and its subsidiaries to maintain certain financial ratios within pre-established parameters.     The details of these restrictive covenants are set forth in the December 31, 2009 financial statements.

51

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

The Management of the Company and its subsidiaries monitor these ratios systematically and constantly to ensure that the conditions are complied with.

In the opinion of the managements of the subsidiaries, these restrictive conditions and clauses are being adequately complied with.

52

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

( 17 )  SUPPLIERS

 

  Consolidated 
Current  March 31, 2010    December 31, 2009 
System Service Charges  47,851    34,556 
Energy Purchased  637,052    635,148 
Electricity Network Usage Charges  133,250    145,317 
Materials and Services  107,492    142,480 
Regulatory Liability (note 3)  66,077    61,341 
Other  2,947    2,506 
Total  994,669    1,021,348 
 
Noncurrent       
Electricity Network Usage Charges  31,992    42,655 
Total  31,992    42,655 

 

( 18 )  TAXES AND CONTRIBUTIONS PAYABLE

 

  Consolidated
  Current    Noncurrent 
  March 31, 2010    December 31, 2009    March 31, 2010    December 31, 2009 
ICMS (State VAT)  333,334    315,906     
PIS (Tax on Revenue)  12,584    11,712     
COFINS (Tax on Revenue)  58,762    54,746    1,476    1,639 
IRPJ (Corporate Income Tax)  76,271    63,238     
CSLL (Social Contribution Tax)  23,549    16,600     
Other  28,116    27,774     
Total  532,616    489,976    1,476    1,639 

 

( 19 )  EMPLOYEE PENSION PLANS

The subsidiaries CPFL Paulista, CPFL Piratininga and CPFL Geração, through Fundação CESP, the subsidiary RGE, through Fundação CEEE de Seguridade Social - ELETROCEEE, the subsidiary CPFL Santa Cruz through BB Previdência – Fundo de Pensão Banco do Brasil and the subsidiary CPFL Jaguariúna through IHPREV Fundo de Pensão, sponsor supplementary retirement and pension plans for their employees. The main characteristics of these plans are as follows:

 

I – CPFL Paulista

 

The plans currently in effect for the employees of the subsidiary CPFL Paulista are a “Proportional Paid-Up Supplementary Benefit Plan” and a “Mixed Benefit Plan”.

On modification of the Pension Plan in October 1997, the subsidiary recognized an obligation to pay in respect of the plan deficit determined at the time by the external actuaries of Fundação CESP. This deficit will be liquidated in 240 monthly installments and 20 annual installments, maturing in October 2017, plus interest of 6% p.a. and restatement based on the IGP-DI (FGV). Through the addendum to the agreement with Fundação CESP dated January 17, 2008, the payment terms were changed to 238 monthly payments and 19 annual installments, in relation to the base date of December 31, 2007, with final maturity on October 31, 2027. The balance of the liability as of March 31, 2010 is R$ 510,858 (R$ 508,706 as of December 31, 2009). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CVM Decision no 371/00.

53

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Managers may opt for a Free Benefit Generator Plan – PGBL (Defined Contribution), operated by either Banco do Brasil or Bradesco.

 

II – CPFL Piratininga

A Proportional Supplementary Defined Benefit (“BSPS”) and a Mixed Benefit Plan are currently in effect for CPFL Piratininga’s employees.

 

In September 1997, through a contractual instrument of adjustment of reserves to be amortized, Eletropaulo Metropolitana Eletricidade São Paulo S.A. (the predecessor of Bandeirante) recognized an obligation to pay in respect of the plan deficit determined at the time by the external actuaries of  Fundação CESP, to be liquidated in 240 monthly installments and 20 annual installments, maturing in October 2017, plus interest of 6% p.a. and restatement based on the IGP-DI (FGV). Under the Contractual Amendment, signed with Fundação CESP on January 17, 2008, the payment terms were amended to 221 monthly payments and 18 annual installments, in relation to the base date of December 31, 2007, with final maturity on May 31, 2026. The balance of the liability as of March 31, 2010 is R$ 151,034 (R$ 150,444 as of December 31, 2009).  The contract amount differs from the accounting entries made by the subsidiary, which are in conformity with CVM Decision no 371/00.

 

Managers may opt for a Free Benefit Generator Plan – PGBL (Defined Contribution), operated by either Banco do Brasil or Bradesco.

 

III – RGE

In the case of employees whose work contracts were transferred from CEEE to RGE, the plan is a defined benefit type plan, with a benefit level equal to 100% of the adjusted average of the most recent salaries, including the presumed Social Security benefit, with a Segregated Net Asset administered by ELETROCEEE.

For employees admitted as from 1997, a defined contribution Benefit Generating Plan (PGBL – Plano Gerador de Benefício Livre e de Contribuição Definida) private pension plan was set up with Bradesco Vida e Previdência in January 2006. This plan does not generate any actuarial responsibility for the company.

 

IV – CPFL Santa Cruz

The benefits plan of the subsidiary CPFL Santa Cruz, administered by BB Previdência - Fundo de Pensão do Banco do Brasil, is a defined contribution plan.

 

V – CPFL Geração

The plans currently in force for the employees of subsidiary CPFL Geração are a Proportional Supplementary Defined Benefit (“BSPS”) and a Mixed Benefit Plan, along the same lines as the CPFL Paulista plan.

With the modification of the Retirement Plan, at that point maintained by CPFL Paulista, in October 1997, a liability was recognized as payable by the subsidiary CPFL Geração, relating to the plan deficit calculated by the external actuaries of Fundação CESP, which is being amortized on a 240 monthly installments and 20 annual installments, maturing in October 2017, plus interest of 6% p.a. and restatement according to the IGP-DI (FGV). Under the Contractual Amendment, signed with Fundação CESP on January 17, 2008, the payment terms were amended to 238 monthly installments and 19 annual installments, in relation to the base date of December 31, 2007, with final maturity on October 31, 2027. The balance of the obligation, as of March 31, 2010, is R$ 10,278 (R$ 10,236 as of December 31, 2009). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CVM Decision no 371/00.

54

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Managers may opt for a Free Benefit Generator Plan – PGBL (Defined Contribution), operated by either Banco do Brasil or Bradesco.

 

VI – CPFL Jaguariúna

In November 2005, the companies joined the CMSPREV private pension plan, administered by IHPREV Pension Fund. The plan is a defined contribution plan.

 

VII – Changes in the defined benefit plans

 

  March 31, 2010
  CPFL Paulista    CPFL Piratininga    RGE    CPFL Geração    Consolidated 
Net actuarial liability at the beginning of the period  351,574    102,610    (10,311)    5,656    449,529 
Income recognized in income statement  (17,692)    (3,514)    (294)    (299)    (21,799) 
Sponsor's Contributions during the year  (15,841)    (4,573)    (398)    (339)    (21,151) 
Net actuarial liability at the end of the year  318,041    94,523    (11,003)    5,018    406,579 
Other contributions  13,312    47    5,691    219    19,269 
Total  331,353    94,570    (5,312)    5,237    425,848 
Current  29,119    9,356    2,779    700    41,954 
Noncurrent  302,234    85,214    (8,091)    4,537    383,894 
Total  331,353    94,570    (5,312)    5,237    425,848 

 

Expense and income recognized as operating cost in the actuarial report are shown below:

 

 

  1st quarter 2010
  CPFL Paulista    CPFL Piratininga    RGE    CPFL Geração    Consolidated 
Cost of service  275    1,202    288    36    1,801 
Interest on actuarial liabilities  73,114    18,883    4,587    1,586    98,170 
Expected return on assets  (91,072)    (23,288)    (5,929)    (1,921)    (122,210) 
Unrecognized cost of past service         
Subtotal  (17,683)    (3,200)    (1,054)    (299)    (22,236) 
Expected contributions from participants  (9)    (314)    467      144 
Subtotal  (17,692)    (3,514)    (587)    (299)    (22,092) 
Decrease of 50% on Prepaid Pension Expense (*)      293      293 
Total Income  (17,692)    (3,514)    (294)    (299)    (21,799) 
 
  1st quarter 2009
  CPFL Paulista    CPFL Piratininga    RGE    CPFL Geração    Consolidated 
Cost of service  361    1,367    314    41    2,083 
Interest on actuarial liabilities  75,754    19,245    4,407    1,633    101,039 
Expected return on assets  (76,088)    (19,389)    (4,597)    (1,617)    (101,691) 
Unrecognized cost of past service         
Amortization of unrecognized actuarial gains        16    16 
Subtotal  27    1,226    124    73    1,450 
Expected contributions from participants  (8)    (324)    (274)      (606) 
Subtotal  19    902    (150)    73    844 
Decrease of 50% on Prepaid Pension Expense (*)      75      75 
Total (Income) Expense  19    902    (75)    73    919 
(*) As the sponsor, RGE matches the participants’ contributions to this plan, only 50% was recorded, 

 

55

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

The principal premises considered in the actuarial calculations were:

 

 

 

    CPFL Paulista, CPFL Piratininga and CPFL         
    Geração    RGE
    2010    2009    2010    2009 
 
 
Nominal discount rate for actuarial liabilities:    10.24% p.a.    10.24% p.a.    10.24% p.a.    10.24% p.a. 
Nominal Return Rate on Assets:    (*)    (**)    11.28% p.a.    10.24% p.a. 
Estimated Rate of nominal salary increase:    6.08% p.a.    6.08% p.a.    6.08% p.a.    6.08% p.a. 
Estimated Rate of nominal benefits increase:    0.0% p.a.    0.0% p.a.    0.0% p.a.    0.0% p.a. 
Estimated long-term inflation rate (basis for establishing                 
nominal rates above)    4.0% p.a.    4.0% p.a.    4.0% p.a.    4.0% p.a. 
General biometric mortality table:    AT-83    AT-83    AT-83    AT-83 
Biometric table for the onset of disability:    TÁBUA MERCER    TÁBUA MERCER    Light-Average    Light-Average 
Expected turnover rate:    0.30 / (Service time + 1)    0.30 / (Service time + 1)    null    null 
Likelihood of reaching retirement age:    100% when a beneficiary of the Plan first become eligible    100% when a beneficiary of the Plan first become eligible         
 

(*) CPFL Paulista and CPFL Geração 14.36% p.a. and CPFL Piratininga 14.05% p.a.

(**) CPFL Paulista and CPFL Geração 13.05% p.a. and CPFL Piratininga 12.84% p.a.




( 20 )  REGULATORY CHARGES

 

  Consolidated 
  March 31, 2010    December 31, 2009 
Fee for the Use of Water Resources  3,377    3,549 
Global Reverse Fund - RGR  10,468    9,876 
ANEEL Inspection Fee  1,934    1,923 
Fuel Consumption Account - CCC  44,216    9,392 
Energy Development Account - CDE  40,033    38,259 
Total  100,028    62,999 

 

 

( 21 )  RESERVE FOR CONTINGENCIES

 

  Consolidated
  March 31, 2010   December 31, 2009
 
  Reserve for contingencies - Gross    Escrow Deposits related to Contingencies (1)    Reserve for Contingencies,  net   Other escrow deposits (2)    Reserve for contingencies - Gross    Escrow Deposits related to Contingencies (1)    Reserve for Contingencies,  net   Other escrow deposits (2) 
Labor                               
Various  42,864    39,108    3,756    92,724    42,752    40,870    1,882    86,880 
Civil                               
General Damages  10,526    10,526      72,816    9,897    9,517    380    49,917 
Tariff Increase  12,805    3,736    9,069    5,420    12,249    3,736    8,513    5,332 
Energy Purchased               
Other  13,398    6,196    7,202    9,381    11,966    6,196    5,770    9,478 
  36,729    20,458    16,271    87,617    34,112    19,449    14,663    64,727 
Tax                               
FINSOCIAL  18,614    18,614      34,420    18,601    18,601      34,397 
Increase in basis - PIS and COFINS  795    721    74    428    866    721    145    301 
Interest on Shareholders’ Equity - PIS and COFINS  9,987    9,800    187    187    9,800    9,800     
Income Tax  67,184    47,601    19,583    459,961    63,914    44,537    19,377    453,804 
Other  7,979    5,591    2,388    11,011    7,807    5,693    2,114    14,397 
  104,559    82,327    22,232    506,007    100,988    79,352    21,636    502,899 
Total  184,152    141,893    42,259    686,348    177,852    139,671    38,181    654,506 

 

The change in the balances related to reserve for contingencies and escrow deposits are shown below:

56

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

  Consolidated
  December 31, 2009    Addition    Reversal    Payment    Monetary Restatement    March 31, 2010 
Labor  42,752    2,273    (168)    (1,993)      42,864 
Civil  34,112    3,408    (355)    (436)      36,729 
Tax  100,988    3,086        485    104,559 
Reserve for Contingencies - Gross  177,852    8,767    (523)    (2,429)    485    184,152 
 
Escrow Deposits (1) + (2)  794,177    36,095    (3,721)    (7,634)    9,324    828,241 

 

The reserves for contingencies were based on appraisal of the risks of losing litigation to which the Company and its subsidiaries are parties, where a loss is probable in the opinion of the legal advisers and the management of the Company and its subsidiaries.

Details of the nature of the provisions for contingencies and judicial deposits are presented in the financial statements as of December 31, 2009.

Possible Losses - The Company and its subsidiaries are parties to other suits processes and risks in which management, supported by its legal advisers, believes that the chances of a successful outcome are possible, due to a solid defensive base in these cases. These questions do not yet indicate a trend in the decisions of the courts or any other decision in similar proceedings considered probable or remote, and therefore no provision has been established for these. As of March 31, 2010, the claims relating to possible losses were as follows: (i) R$ 306,018 for labor suits (R$ 294,825 as of December 31, 2009); (ii) R$ 486,710 for civil suits, mainly for suits for personal injuries, environmental damages and tariff increases (R$ 472,710 as of December 31, 2009); and (iii) R$ 700,299 in respect of tax suits, relating basically to Income Tax, ICMS, FINSOCIAL and PIS and COFINS (R$ 625,369 as of December 31, 2009).

 

Based on the opinion of their legal advisers, Management of the Company and of its subsidiaries consider that there are no significant contingent risks that are not covered by adequate provisions in the Financial Statements, or that might result in the significant impact on future earnings.

57

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

( 22 )   OTHER ACCOUNTS PAYABLE

 

  Consolidated
  Current    Noncurrent 
  March 31, 2010    December 31, 2009    March 31, 2010    December 31, 2009 
 
Consumers and Concessionaires  55,417    50,974     
Regulatory Liability (note 3 )  241,799    246,806    28,784    1,928 
Energy Efficiency Program - PEE  63,986    55,889    53,931    56,915 
Research & Development - P&D  103,165    99,623    16,569    12,636 
National Scientific and Technological Development               
Fund - FNDCT  4,711    4,655     
Energy Research Company - EPE  2,005    1,983     
Fund for Reversal      17,750    17,751 
Advances  7,359    8,940    62,738    60,772 
Interest on Compulsory Loan  1,740    2,917     
Provision for Environmental Expenses  2,455    2,483    3,859    2,628 
Payroll  6,634    8,064     
Profit sharing  40,082    32,433     
TAC ANEEL fine (DEC/FEC and voltage level)  8,755    10,877     
Other  57,574    58,970    8,175    8,910 
Total  595,682    584,614    191,806    161,540 

 

 

( 23 )  SHAREHOLDERS’ EQUITY

The shareholders' participations in the Company's equity as of March 31, 2010 and December 31, 2009 are distributed as follows:

 

    Amount of shares
    March 31, 2010    December 31, 2009 
Shareholders    Common Shares    Interest %    Common Shares    Interest % 
VBC Energia S.A.    122,948,720    25.62    122,948,720    25.62 
BB Carteira Livre I FIA    149,233,727    31.10    149,233,727    31.10 
Bonaire Participações S.A.    60,713,511    12.65    60,713,511    12.65 
BNDES Participações S.A.    40,526,739    8.44    40,526,739    8.44 
Board Members    112      112   
Executive Officers    14,759      6,450   
Other Shareholders    106,473,370    22.19    106,481,679    22.19 
Total    479,910,938    100.00    479,910,938    100.00 

 

Dividends payable

58

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

  Parent Company 
  March 31, 2010    December 31, 2009 
Dividends payable       
VBC Energia S.A.  167,809    167,809 
BB Carteira Livre I FIA  203,685    203,685 
Bonaire Participações S.A.  82,866    82,866 
BNDES Participações S.A.  55,314    55,314 
Brumado Holdings S.A.  23,545    23,545 
Other Shareholders  138,794    138,834 
Total  672,013    672,053 

 

 

( 24 )  GROSS SALES AND SERVICES INCOME

  

    Consolidated
    No, of Consumers (*)    GWh (*)    R$ Thousand 
Revenue from Eletric Energy Operations    1st quarter   1st quarter    1st quarter   1st quarter    1st quarter   1st quarter 
     2010   2009    2010    2009     2010   2009 
Consumer class                         
  Residential    5,737,724    5,601,323    3,284    3,138    1,390,914    1,206,906 
  Industrial    77,785    77,943    3,781    3,468    998,491    878,316 
  Commercial    496,614    494,599    2,020    1,886    730,678    637,243 
  Rural    236,137    235,707    555    565    110,091    101,420 
  Public Administration    44,208    42,949    266    253    91,278    80,837 
  Public Lighting    8,008    7,311    355    348    75,502    67,414 
  Public Services    6,974    6,586    423    416    115,353    102,839 
  Billed    6,607,450    6,466,418    10,684    10,074    3,512,307    3,074,975 
  Own Consumption    757    646         
  Unbilled (Net)            46,759    27,232 
  Emergency Charges - ECE/EAEE             
Regulatory assets and liabilities (note 3)            34,956    (60,884) 
Reclassification to Network Usage Charge - TUSD -            (1,595,493)    (1,472,433) 
Captive Consumers                         
Electricity sales to final consumers    6,608,207    6,467,064    10,693    10,082    1,998,532    1,568,890 
 
Furnas Centrais Elétricas S.A.            746    746    85,718    87,218 
  Other Concessionaires, Licensees and Authorized            1,540    1,579    123,742    174,811 
  Current Electric Energy            321    214    1,631    22,516 
Electricity sales to wholesaler            2,607    2,539    211,091    284,545 
 
  Revenue due to Network Usage Charge - TUSD - Captive Consumers                1,595,493    1,472,433 
  Revenue due to Network Usage Charge - TUSD - Free Consumer                240,479    180,554 
  Regulatory assets and liabilities (note 3) - Low Income Consumer´s Subsidy                952    17,111 
  Other Revenue and Income                    62,260    64,222 
Other operating revenues                    1,899,184    1,734,320 
Total                    4,108,807    3,587,755 
(*) Information not reviewed by the independent accountants

 

In compliance with ANEEL Order 4,722 of December 18, 2009, which sets out the basic procedures for preparing financial statements, the subsidiaries reclassified certain revenue amounts posted under the heading  “Electric Energy Supplied (a sales operation)”, to “Other Operating Revenue” (a distribution operation), under the heading of “Revenue due to Network Usage Revenue – TUSD – Captive Consumer”.

 

 

( 25 )  COST OF ELECTRIC ENERGY

 

59

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

    Consolidated
    GWh (*)    R$ Thousand 
    1st quarter 2010    1st quarter    1st quarter 2010    1st quarter 
Electricity Purchased for Resale        2009        2009 
Energy Purchased in Restricted Framework - ACR                 
    Itaipu Binacional    2,733    2,720    260,761    337,623 
    Furnas Centrais Elétricas S.A.    406    425    36,997    36,908 
    CESP - Cia Energética de São Paulo    421    471    41,220    43,459 
    Cia de Geração Térmica Energia Elétrica - CGTEE    38    56    3,906    5,358 
    Duke Energy Inter, Ger, Paranapanema S.A.    23    22    1,932    1,777 
    Tractebel Energia S.A.    2,019    1,553    294,664    215,590 
    Petróleo Brasileiro S.A. Petrobrás    418    415    52,368    47,069 
    CHESF - Cia Hidro Elétrica do São Francisco    314    342    28,488    28,541 
    CEMIG - Cia Energética de Minas Gerais    288    299    35,669    35,870 
    Termorio S.A.    61    100    20,345    24,050 
    Enguia Gen        2,163    1,781 
    AES Uruguaiana Ltda,      128      5,171 
    Câmara de Comercialização de Energia Elétrica - CCEE    1,014    962    7,885    51,757 
    Copel Geração e Transmissão S.A.    185    85    18,414    16,675 
    COOMEX Empresa Operadora do Mercado Energético Ltda,      11      1,619 
    Companhia Energética Santa Clara - CESC    37    37    4,749    5,088 
    Queiroz Galvão Energética S.A.    59    83    8,340    11,676 
    PROINFA    286    123    49,580    46,559 
    Other    1,076    1,182    126,556    144,057 
    9,380    9,014    994,037    1,060,628 
Energy Purchased in the Free Market - ACL    3,443    3,353    264,922    293,759 
    12,823    12,367    1,258,959    1,354,387 
Regulatory assets and liabilities (note 3)        197,631    (27,796) 
Credit of PIS and COFINS        (132,075)    (120,871) 
Subtotal    12,823    12,367    1,324,515    1,205,720 
 
Electricity Network Usage Charge                 
    Basic Network Charges         229,230     219,801 
    Transmission from Itaipu           20,426    19,537 
    Connection Charges           12,931    11,913 
    Charges of Use of the Distribution System           6,728    9,947 
    System Service Charges - ESS      39,045  49,458 
    Reserve Energy charges      1,680 
      310,040  310,656 
    Regulatory assets and liabilities (note 3)      33,101  (48,885) 
    Credit of PIS and COFINS      (30,554)  (24,801) 
Subtotal      312,587  236,970 
Total      1,637,102  1,442,690 
 
 
(*) Information not reviewed by the independent accountants         

In compliance with ANEEL Order no 4,722/2009, the subsidiaries reclassified amounts relating to the PROINFA quota, in relation to amounts billed to free consumers and own-power producers, from “Cost of the Electric Energy Service, Energy Purchased for Resale” to “Deductions from Operating Income, Consumer Charges – Other – PROINFA”, amounting to R$ 10,898 and R$ 5,626, respectively, for the first quarter of 2010 and the first quarter of 2009.

 

( 26 )  OPERATING EXPENSES

60

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

  

    Parent Company    Consolidated 
    1st quarter    1st quarter    1st quarter    1st quarter 
    2010    2009    2010    2009 
 
Sales Expenses                 
Personnel        17,671    16,252 
Materials        630    527 
Outside Services        17,220    16,757 
Allowance for Doubtful Accounts        11,773    (3,109) 
Depreciation and Amortization        2,187    2,767 
Collection Tariffs and Services        11,309    11,478 
Other        3,120    3,020 
Total    -    -    63,910    47,692 
 
General and Administrative Expenses                 
Personnel    870    638    41,502    31,899 
Materials    15      2,710    1,451 
Outside Services    2,802    1,813    44,518    39,931 
Leases and Rentals    23    39    1,387    1,074 
Depreciation and Amortization    30    30    5,604    6,016 
Publicity and Advertising      35    499    520 
Legal, Judicial and Indemnities      372    10,832    6,773 
Donations, Contributions and Subsidies        1,131    1,188 
Other    1,056    877    10,158    9,089 
Total    4,796    3,812    118,341    97,941 
 
Other Operating Expenses                
Inspection Fee        5,423    6,119 
Loss on the write-off of noncurrent assets        1,431    4,490 
Free Energy adjustment (note 3 a,2)        2,527   
Other        468    356 
Total    -    -    9,849    10,965 
Intangible of concession amortization    35,362    37,187    44,688    46,724 
Total operating expenses    40,158    40,999    236,788    203,322 

 

 

( 27 )  FINANCIAL INCOME AND EXPENSES

 

61

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

  

    Parent Company    Consolidated 
    1st quarter    1st quarter    1st quarter    1st quarter 
    2010    2009    2010    2009 
Financial Income                
 
Income from Financial Investments    9,861    4,471    29,882    22,850 
Arrears of interest and fines    22      32,923    28,773 
Restatement of tax credits    169    1,060    1,187    1,270 
Restatement of Escrow Deposits    187      9,324    12,926 
Monetary and Exchange Variations        9,706    19,914 
Interest - CVA and Parcel "A" (Note 3)        (1,512)    17,359 
Discount on purchase of ICMS credit        2,003    1,029 
Other    2,385    2,696    15,383    11,820 
Total    12,624    8,230    98,896    115,941 
Financial Expense                
Debt Charges    (9,843)    (13,992)    (125,777)    (143,463) 
Monetary and Exchange Variations    (153)    694    (31,109)    (25,480) 
Other    (1,158)    (2,541)    (18,005)    (9,958) 
Total    (11,154)    (15,839)    (174,891)    (178,901) 
 
Net financial income (expense)    1,470    (7,609)    (75,995)    (62,960) 

 

 

( 28 )  FINANCIAL INSTRUMENTS AND OPERATING RISKS

a) Classification of the financial instruments

The financial instruments are classified as:

Financial assets, in the categories: (i) loans and receivables, (ii) calculated at fair value through profit or loss, (iii) held-to-maturity investments and, (iv) available for sale. Classification is based on the following criteria:

           i.   Loans and receivables

These are financial assets with fixed or calculable payments that are not quoted in an active market. These financial assets are recorded at historic cost by the amortized cost method.

 

The main financial assets of the Company and its subsidiaries classified in this category are: (i) consumers, concessionaires and licensees (Note 5), (ii) dividends and interest on capital (Note 12) and (iii) other credits (Note 11).

 

          ii.   Calculated at fair value through profit or loss

These are financial assets that are (i) maintained for short-term trading, (ii) designated at fair value with the objective of comparing the effects of recognition of income and expenses in order to obtain more relevant and consistent accounting information or, (iii) derivatives. These assets are recorded at their fair values and, in the case of any subsequent change in these fair values, they are set against the income statement of the Company.

 

The main financial assets of the Company and its subsidiaries classified in this category are: (i) cash and cash equivalents and short-term financial investments (Note 4) and (ii) derivatives.

 

 

         iii.   Held-to-maturity investments

62

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

These are non derivative financial assets with fixed or calculable payments and defined maturities, which the Company and its subsidiaries intend to maintain until maturity. The financial assets in this classification are recorded at historic cost by the amortized cost method.

 

The Company classifies the in this category the security receivable from CESP (Note 6).

 

 

        iv.   Available for sale

Refers to the financial assets that do not fall into any of the above classifications or that are designated as available for sale. These financial assets are recorded at the respective fair values and, in the case of any subsequent change in these fair values, they are set against the Company’s equity.

 

The Company and its subsidiaries do not have financial assets classified in this category.

 

Financial liabilities, in the categories: (i) calculated at fair value through profit or loss, (ii) not calculated at fair value through profit or loss. They are classified in accordance with the following criteria:

 

           i.   Calculated at fair value through profit or loss

These are financial liabilities that are: (i) maintained for short-term trading, (ii) denominated at fair value with the objective of comparing the effects of recognition of income and expenses in order to obtain more relevant and consistent accounting information or, (iii) derivatives. These liabilities are recorded at their fair values and, in the case of any change in the calculation of these subsequent fair values, they are set against the income statement of the Company.

 

The Company and its subsidiaries classified the following financial liabilities in this category: (i) certain debts in foreign currencies (Note 15) and, (ii) derivatives.

 

          ii.   Not calculated at fair value through profit or loss

These are other financial liabilities that do not fall into the above category. The financial liabilities in this category are recorded and amortized basically by the amortized cost method.

 

The main financial liabilities classified in this category are: (i) suppliers (note 17), (ii) loans and financing (Note 15), (iii) debt charges (Note 15), (iv) debenture charges (Note 16), (v) debentures (Note 16) and (vi) other accounts payable (Note 22).

 

 

b) Risk Considerations:

The business of the Company and its subsidiaries comprises principally generation, sale and distribution of electric energy. As public service concessionaires, the operations and/or tariffs of its principal subsidiaries are regulated by ANEEL.

 

The principal market risk factors that affect the business are the following:

Exchange rate risk: This risk derives from the possibility of the subsidiaries incurring losses and cash constraints on account of fluctuations in exchange rates, increasing the balances of foreign currency denominated liabilities. The exposure in relation to raising funds in foreign currency is largely covered by contracting swap operations, which allow the Company and its subsidiaries to exchange the original risks of the operation for the cost of the variation in the CDI.

63

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

The Company’s subsidiaries are also exposed in their operations to exchange variations on the purchase of electric energy from Itaipu. The compensation mechanism - CVA protects the companies against possible losses.

Interest Rate Risk: This risk derives from the possibility of the Company and its subsidiaries incurring losses due to fluctuations in interest rates that increase financial expenses on loans, financing and debentures. The subsidiaries have also tried to increase the portion of loans tied to the variation in the TJLP, an index less susceptible to the oscillations of the financial market.

Credit Risk: This risk arises from the possibility of the subsidiaries incurring losses resulting from difficulties in receiving amounts billed to customers. This risk is evaluated by the subsidiaries as low, as it is spread over the number of customers and in view of the collection policy and cancellation of supply to defaulting consumers.

Risk of Energy Shortages: The energy sold by the subsidiaries is basically generated by hydropower plants. A prolonged period of low rainfall, together with an unforeseen increase in demand, could result in a reduction in the volume of water in the power plants’ reservoirs, compromising the recovery of their volume, and resulting in losses due to the increase in the cost of purchasing energy or a reduction in revenue due to the introduction of another rationing program, as in 2001. According to the Annual Energy Operation Plan – PEN 2009, drawn up by the National Electricity System Operator, the risk of any energy deficit for 2010 is very low, which eliminates any possibility of another energy rationing program.

Risk of Acceleration of Debts: The Company and its subsidiaries have loan agreements, financing and debentures with restrictive clauses (covenants) normally applicable to these kinds of operation, related to compliance with economic and financial ratios, cash generation, etc. These covenants are monitored appropriately and do not restrict the capacity to operate normally.

 

Management of Risks on Financial instruments

The Company and its subsidiaries maintain certain operating and financial policies and strategies with a view to ensuring the liquidity, security and profitability of their assets. As a result, control and follow-up procedures are in place on the transactions and balances of financial instruments, for the purpose of monitoring the risks and current rates in relation to those used in the market.

Risk management controls: In order to manage the risks inherent to the financial instruments and to monitor the procedures established by management, the Company and its subsidiaries use the MAPS software system to calculate the VaR - Value at Risk, and Mark to Market, Stress Testing and Duration of the instruments, and assesses the risks to which the Company and its subsidiaries are exposed. Historically, the financial instruments contracted by the Company and the subsidiaries supported by these tools have produced adequate risk mitigation results. We stress that the Company and its subsidiaries contract derivatives, always with the appropriate levels of approval, only in the event of exposure that management regards as a risk. The Company and its subsidiaries do not enter into transactions involving exotic or speculative derivatives. Furthermore, the Company and its subsidiaries meet the requirements of the Sarbanes-Oxley Law, and accordingly have internal control policies that aim for a strict control environment to minimize the exposure to risks.

 

c) Valuation of Financial Instruments

The estimates of the market value of the financial instruments were based on pricing models, applied individually for each transaction, taking into consideration the future payment flows, based on the conditions contracted, discounted to present value at market interest rates, based on information obtained from the BM&F, BOVESPA and ANDIMA websites.

64

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

Accordingly, the market value of a security corresponds to its maturity value (redemption value) marked to present value by the discount factor (relating to the maturity date of the security) obtained from the market interest graph.

 

In the case of specific electricity sector operations, where there are no similar transactions in the market and with low liquidity, mainly related to regulatory aspects and credits receivable from CESP, the subsidiaries assumed that the market value is represented by the respective book value. This is due to the uncertainties reflected in the variables which have to be taken into consideration in creating a pricing model.

 

In addition to the assets and financial liabilities calculated at fair value through profit or loss, the Company and its subsidiaries have other financial liabilities not calculated at fair value. The market values of these financial instruments as of March 31, 2010 and December 31, 2009, applying the above methodology, presented only for comparison, are shown below:

 

    Parent Company
    March 31, 2010    December 31, 2009 
    Accounting
balance
  Fair value     Accounting
balance
  Fair value 
 
Debentures (note 16)    (453,122)    (458,997)    (462,788)    (468,993) 
Total    (453,122)    (458,997)    (462,788)    (468,993) 
 
    Consolidated
    March 31, 2010    December 31, 2009 
    Accounting
balance
  Fair value     Accounting
balance
  Fair value 
Loans and financing (note 15)    (3,256,657)    (3,036,021)    (3,206,326)    (2,958,353) 
Debentures (note 16)    (3,125,867)    (3,164,007)    (3,351,478)    (3,392,071) 
Total    (6,382,524)    (6,200,028)    (6,557,804)    (6,350,424) 

 

d) Derivatives

 

As previously mentioned, the Company and its subsidiaries use derivatives as a hedge against the risks of variations in exchange and interest rates, without any speculative purposes. The Company and its subsidiaries have an exchange hedge compatible with the net exposure to exchange risks, including all the assets and liabilities tied to exchange variation.

 

The hedge instruments contracted by the Company and its subsidiaries are currency or interest rate swaps with no leverage component, margin call requirements or daily or periodical adjustments. As terms of the majority of the derivatives contracted by the Company and its subsidiaries are fully aligned with the debts protected, and in order to obtain more relevant and consistent accounting information through the recognition of income and expenses, the respective debts were denominated, for accounting purposes, at fair value. Other debts with different terms from the derivatives contracted as a hedge continue to be recorded at cost. Furthermore, the Company and its subsidiaries do not use hedge accounting for derivative operations.

 

As of March 31, 2010, the Company and its subsidiaries had the following swap operations:

 

65

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

   

    Market values (book values)                         
 Company / strategy / Counterparts    Asset    (Liability)     Market values, 
net 
   Values at cost, 
net 
  Gain (Loss) on 
marking to 
market 
   Currency / 
index 
  Maturity range    Notional    Trading market 
Derivatives for protection of debts designated at fair value
 
Exchange variation hedge                                     
 
CPFL Paulista                                     
ABN      (9,326)    (9,326)    (2,783)    (6,543)    yen    Jan 2012    376,983    Over-the-counter 
Banco do Brasil    4,539      4,539    5,317    (778)    yen    Jan 2011    79,466    Over-the-counter 
 
CPFL Geração                                     
Banco do Brasil    4,591      4,591    7,995    (3,404)    yen    Apr 2010 to Jan 2011    486,760    Over-the-counter 
Subtotal    9,130    (9,326)    (196)    10,529    (10,725)                 
 
Derivatives for protection of debts not designated at fair value
 
Exchange variation hedge                                     
 
CPFL Paulista                                     
HSBC    (42)      (42)    (46)      dollar    Apr 2010    22,474    Over-the-counter 
Santander    56      56    54      dollar    Apr 2010    8,646    Over-the-counter 
 
CPFL Geração                                     
HSBC    (525)      (525)    (541)    16    dollar    Apr 2010 to Sep 2010    68,436    Over-the-counter 
 
Hedge interest rate variation (1)                                     
 
CPFL Energia                                     
Citibank    278    (1,430)    (1,152)    31    (1,183)    CDI + spread   Mar 2010 to Sep 2014    450,000    Over-the-counter 
 
RGE                                     
Santander    493      493    159    334    CDI    Jan 2010 to Dec 2013    280,000    Over-the-counter 
Citibank    136    (11)    125    60    65    CDI    Jun 2010 to Dec 2013    100,000    Over-the-counter 
 
Hedge interest rate variation (2)
 
CPFL Geração                                     
Unibanco    139      139    91    48    IGP-M    Jun 2010    25,701    Over-the-counter 
Santander    137      137    88    49    IGP-M    Jun 2010    25,701    Over-the-counter 
HSBC    137      137    89    48    IGP-M    Jun 2010    25,701    Over-the-counter 
Subtotal    809    (1,441)    (632)    (15)    (617)                 
 
Total    9,939    (10,767)    (828)    10,514    (11,342)                 
 
Current    9,839                               
Noncurrent    100    (10,767)                             
Total    9,939    (10,767)                             
For further details of terms and informationa bout debts and debentures, see Notes 15 and 16 
(1) The interest rate hedge swaps have half-yearly validity, so the notional value reduces in accordance with amortization of the debt.
(2) The interest rate hedge swaps have monthly validity, so the notional value reduces in accordance with amortization of the debt.

 

In spite of the net losses determined by marking the derivatives shown above to market, the effects were minimized by the option exercised by the Company and its subsidiaries also to mark to market the debts tied to hedge instruments (note 15).

 

The Company and its subsidiaries have recorded gains and losses on their derivatives. However, as these derivatives are used as a hedge, these gains and losses minimized the impact of variations in exchange and interest rates on the protected indebtedness. For the quarter ended in March 31, 2010 and 2009, the derivatives resulted in the following impacts on the consolidated result:

  

            Gain (loss) 
Company    Hedged risk / Operation    Account    March 31,   March 31, 
             2010   2009 
CPFL Energia    Interest rate variation    Financial expense - Swap transactions    98    (84) 
CPFL Energia    Mark to market    Financial expense - Adjustment to fair value    (251)    778 
CPFL Paulista    Exchange variation    Financial expense - Swap transactions    (789)    (76,453) 
CPFL Paulista    Mark to market    Financial expense - Adjustment to fair value    685    30,758 
CPFL Piratininga    Exchange variation    Financial expense - Swap transactions      (218) 
CPFL Piratininga    Mark to market    Financial expense - Adjustment to fair value      (126) 
CPFL Geração    Exchange variation    Financial expense - Swap transactions    2,793    (85,427) 
CPFL Geração    Interest rate variation    Financial expense - Swap transactions    458    (1,088) 
CPFL Geração    Mark to market    Financial expense - Adjustment to fair value    832    9,365 
RGE    Exchange variation    Financial expense - Other financial exp      (4,820) 
RGE    Interest rate variation    Financial expense - Other financial exp    182    17 
RGE    Mark to market    Financial expense - Derivatives adjust fair value    106    732 
            4,114    (126,566) 

66

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

Other exchange exposure

 

It should be noted that the indirect subsidiary ENERCAN has no swaps, as an exchange hedge, in relation to the debt of R$ 152,115 (R$ 74,115 in proportion to the participation of the subsidiary CPFL Geração) to the BID and BNDES of the portion tied to the basket of currencies, since a percentage of its tariff adjustments covers the exchange variation in the tariff period. In spite of the existence of a natural hedge against this exposure, the effect of exchange variations on these debts generated a loss of R$ 3,559 (R$ 1,734 in proportion to the participation of CPFL Geração) in the first quarter of 2010 and a loss of R$ 2,469 (R$ 1,203 in proportion to the participation of CPFL Geração) in the same period of 2009

 

The subsidiary CPFL Paulista also has a total indebtedness in foreign currency of R$ 549,437.  As a hedge against exchange exposure, it contracted derivatives used as a hedge directly tied to the indebtedness of R$ 496,647. To minimize the exchange exposure, the subsidiary also contracted a non tied derivative of R$ 32,049 and also has sufficient assets indexed in dollars (fund tied to foreign currency loans – Note 11) to offset any exchange impact.

 

 

e) Sensitivity Analysis

 

In compliance with CVM Instruction n° 475/08, the Company and its subsidiaries performed sensitivity analyses of the main risks to which their financial instruments (including derivatives) are exposed, mainly comprising variations in exchange and interest rates, as shown below:

 

 

Exchange variation

 

If the level of exchange exposure at March 31, 2010 were maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:

 

  

    Consolidated
            Exchange    Exchange    Exchange 
Instruments    Exposure    Risk    depreciation of    depreciation of    depreciation of 
            9%*    25%**    50%** 
Financial asset instruments    19,621    apprec,dollar    1,807    4,905    9,811 
Financial liability instruments    (194,861)    apprec,dollar    (17,943)    (48,720)    (97,431) 
Derivatives - Plain Vanilla Swap    102,122    apprec,dollar    9,404    25,532    51,062 
    (73,118)        (6,732)    (18,283)    (36,558) 
 
Financial liability instruments    (1,119,989)    apprec,yen    (103,132)    (280,015)    (559,995) 
Derivatives - Plain Vanilla Swap    1,119,989    apprec,yen    103,132    280,015    559,995 
    -        -    -    - 
 
    (73,118)        (6,732)    (18,283)    (36,558) 
* In accordance with exchange graphs contained in information provided by the BM&F
**In compliance with CVM Instruction 475/08

 

 

Variation in interest rates

 

Supposing that (i) the scenario of exposure of the financial instruments indexed to variable interest rates as of March 31, 2010 were to be maintained, and (ii) the respective accumulated annual indexes as of that date were to remain stable (CDI of 8.96% p.a.; IGP-M of 1.94% p.a.; TJLP of 6.06% p.a.), the effects on the consolidated financial statements for the next 12 months would be a net financial expense of R$ 401,844. In the event of fluctuations in the indexes in accordance with the three scenarios described, the effect on the net financial expense would as follows:

67

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

 

    Consolidated
Instruments    Exposure    Risk    Scenario I*    Raising index by    Raising index by 
                25%**    50%** 
Financial asset instruments    2,491,106    CDI variation    47,331    55,801    111,600 
Financial liability instruments    (3,961,989)    CDI variation    (75,277)    (88,748)    (177,499) 
Derivatives - Plain Vanilla Swap    (1,235,011)    CDI variation    (23,465)    (27,665)    (55,328) 
    (2,705,894)        (51,411)    (60,612)    (121,227) 
 
Financial asset instruments    96,953    IGP-M variation    5,972    470    940 
Financial liability instruments    (83,409)    IGP-M variation    (5,138)    (405)    (810) 
Derivatives - Plain Vanilla Swap    12,073    IGP-M variation    744    59    117 
    25,617        1,578    124    247 
 
Financial liability instruments    (2,615,775)    TJLP variation    4,970    (39,628)    (79,258) 
Financial liability instruments  (30,596)  Interest at pre-fixed rates (1,377)  (1,377)  (1,377) 
(5,326,648) (46,240)  (101,493)  (201,615) 
* The CDI, IGP-M and TJLP indexes considered of 10.86%, 8.10% and 5.87%, respectively, were obtained from information available in the market
**In compliance with CVM Instruction 475/08 

 

( 29 )  RELEVANT FACT

 

CPFL Bio Buriti, CPFL Bio Ipê and CPFL Bio Pedra

The subsidiaries CPFL Bio Buriti, CPFL Bio Ipê and CPFL Bio Pedra were set up in March, 2010, in the State of São Paulo, to develop three thermal power plants powered by sugarcane waste and straw (biomass), through a partnership agreement with Grupo Pedra Agroindustrial. The aggregate potential installed capacity is 145 MW, of which 88.63 MW will be exported to CPFL in the harvest period.

The investments in the three projects are estimated at approximately R$ 366 million. The operations are scheduled to commence in June 2011 for the UTEs Bio Buriti and Bio Ipê, and April 2012 for the UTE Bio Pedra. The subsidiary CPFL Brasil holds 100% of the total capital of these subsidiaries.

 

 

 

( 30 )  SUBSEQUENT EVENT

 

30. 1 Capital Increase

 

The EGM/AGM held on April 8, 2010, approved capital increases of R$ 37,160, R$ 7,852 and R$ 15,743, respectively, for the subsidiaries CPFL Paulista, CPFL Piratininga and  RGE in relation to capitalization of the tax benefit of the premium determined in 2009. Issue of 13,785,137 new common shares and 23,374,669 preferred shares was approved for  CPFL Paulista.

 

The EGM/AGM of CPFL Energia held on April 26, 2010, approved the merger of all the shares held by the minority shareholders of the subsidiaries CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz with the equity of CPFL Energia and conversion of these companies into wholly-owned subsidiaries. Accordingly, the CPFL Energia capital increased by R$ 52,249, from R$ 4,741,175 to R$ 4,793,424 with the issue of 1,226,192 new common shares.

 

68

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

The Share Merger provides for the possibility for shareholders of the Companies that disagree with the decision to exercise the right to withdraw, provided this intention is stated by May 26, 2010.

 

 

30. 2 Distribution of Dividend and Interest on Capital

 

The EGM/AGM  held on April 26, 2010 approved the allocation of net income for 2009, by (i) recording a statutory reserve of R$ 64,323; (ii) declaration of an interim dividend of R$ 571,671, already paid to the shareholders on September 30, 2009, and (iii) declaration of an additional dividend of R$ 655,017. The additional dividend was paid in full on April 30.

 

 

30.3  Public Distribution of Debentures

 

As agreed in a Meeting of the Board of Directors held on April 1, 2010, the subsidiary CPFL Piratininga issued in April, 2010, 260 simple subordinated debentures, not convertible into shares, in a single series, for public distribution, with restricted placement efforts and underwritten by the Company.  The debentures, with a unit par value of R$ 1,000, amounting a total of R$ 260,000, will bear interest at 107% of the CDI and will mature in full on April 1, 2015. The funds raised will be distributed as follows:

 

i)    Approximately 60% (sixty percent) to reinforce the subsidiary's working capital; and

ii)   Approximately 40% (forty percent) for early redemption of the subsidiary's second public issue of simple subordinated debentures, issued on October 1, 2008, with a debit balance at March 31, 2009 of R$104,389.

 

As approved in a Meeting of the Board of Directors held on April 1, 2010, the subsidiary CPFL Geração issued, in April 2010, 264 simple unsecured debentures, not convertible into shares, in a single series for public distribution, with restricted placement efforts and underwritten by the Company. The debentures, with a unit par value of R$ 1,000, amounting to a total of R$ 264,000, will bear interest at 107% of the CDI and will mature in full on April 1, 2015. The funds raised will be used to reinforce the subsidiary's working capital.

 

Interest payments on the two debentures above will be half-yearly from October 1, 2010.

 

69

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

07.01 – COMMENTS ON PERFORMANCE IN THE QUARTER

 

Analysis of Results – CPFL Energia (parent company)

 

Net income was R$ 390,199 in the quarter, a increase of 38.0% (R$ 107,496) compared to the same quarter of the previous year, due mainly to results of equity in subsidiaries, as shown below:

 

 

    1st quarter 2010    1st quarter 2009 
CPFL Paulista    146,906    85,279 
CPFL Piratininga    88,018    66,010 
RGE    51,299    48,339 
CPFL Santa Cruz    5,654    5,746 
CPFL Leste Paulista    2,153    1,929 
CPFL Jaguari    2,455    1,421 
CPFL Sul Paulista    2,642    2,746 
CPFL Mococa    1,534    1,458 
CPFL Geração    63,339    70,026 
CPFL Brasil    62,107    46,532 
CPFL Atende    (27)    (386) 
CPFL Planalto    2,578    1,752 
CPFL Serviços    (1,173)    (786) 
CPFL Jaguariúna    (58)    (231) 
CPFL Jaguari Geração    1,328    1,309 
    428,755    331,144 

70

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

12.01 – COMMENTS ON CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Analysis of Results – CPFL Energia Consolidated

 

The comments on performance are expressed in thousands of Brazilian reais, unless otherwise indicated.

 

 

    Consolidated   
 Information 1st quarter 2010  1st quarter 2009  Variation 
GROSS REVENUE  4,108,807  3,587,755  14.5% 
   Electricity sales to final consumers (¹)  3,594,025  3,041,323  18.2% 
   Electricity sales to wholesaler  211,091  284,545  -25.8% 
   Other operating revenues (¹)  303,691  261,887  16.0% 
DEDUCTION FROM OPERATING REVENUE  (1,323,743)  (1,201,685)  10.2% 
NET OPERATING REVENUE  2,785,064  2,386,070  16.7% 
ENERGY COST  (1,637,102)  (1,442,690)  13.5% 
   Electricity purchased for resale  (1,324,515)  (1,205,720)  9.9% 
   Electricity network usage charges  (312,587)  (236,970)  31.9% 
OPERATING COST/EXPENSE  (456,675)  (426,702)  7.0% 
   Personnel  (146,850)  (124,197)  18.2% 
   Employee pension plan  21,799  (919)  -2472.0% 
   Material  (16,894)  (14,363)  17.6% 
   Outsourced Services  (97,592)  (90,737)  7.6% 
   Depreciation and Amortization  (96,933)  (96,294)  0.7% 
   Amortization of intangible asset of concession  (44,688)  (46,724)  -4.4% 
   Other  (75,517)  (53,468)  41.2% 
OPERATING INCOME  691,287  516,678  33.8% 
FINANCIAL INCOME (EXPENSE)  (75,995)  (62,960)  20.7% 
   Income  98,896  115,941  -14.7% 
   Expense  (174,891)  (178,901)  -2.2% 
INCOME BEFORE TAX  615,292  453,718  35.6% 
   Social Contribution  (59,539)  (45,175)  31.8% 
   Income Tax  (163,135)  (123,754)  31.8% 
INCOME BEFORE INTERESTS  392,618  284,789  37.9% 
   Noncontrolling interest  (2,419)  (2,086)  0.0% 
NET INCOME FOR THE PERIOD  390,199  282,703  38.0% 
 
EBITDA  808,690  658,529  22.8% 

 

Net Income for the Period and EBITDA Reconciliation (²)     
   NET INCOME FOR THE PERIOD  390,199  282,703 
   Employee Pension Plan  (21,799)  919 
   Depreciation and Amortization  141,621  143,018 
   Financial Income (Expense)  75,995  62,960 
   Social Contribution  59,539  45,175 
   Income Tax  163,135  123,754 
EBITDA  808,690  658,529 

 

(¹) The reclassification of revenue from the Network Usage Charge - TUSD was not taken into account in presentation of the Comments on Consolidated Performance (note 24) 
(²) Information not reviewed by the independent accountants 

71

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Gross Operating Revenue

The Gross Operating Revenue in the first quarter of 2010 was R$ 4,108,807, up 14.5% (R$ 521,052) on the same period of the previous year.        

The main factors that contributed to this change were:

 

·         An increase of 14.2% (R$ 437,332) in the electric energy supply billed, as a result of the increase of 6.1% in the amount of energy billed to final consumers and of 7.7% in the average tariffs charged, mainly due to the adjustment to the distributors' tariffs;

·         An increase of R$ 95,840 in the regulatory assets and liabilities, mainly due to the effects of recording the regulatory liability generated by repositioning of the distributors' tariff review in 2009 and the related amortization in 2010 (Note 3.b.1);

·         A decrease of 25.8% (R$ 73,454) in the energy supplied, mainly due to the reduction of 27.8% in the average tariff charged.

·         An increase of R$ 41,804 in Other Operating Revenue, particularly due to the increase of R$ 59,925 in income from the Tariff for the Use of the Distribution System – TUSD for free customers, due to the revival of industrial activity and the effects of the tariff adjustment.

 

Ø  Quantity of Energy Sold

 

An increase of 6.1% was recorded in the quantity of energy billed to final consumers in the first quarter of 2010.

The residential, commercial and industrial classes, which account for 85.0% of the energy sold to end users in the quarter and have the highest average tariffs, registered growth of 4.7%, 7.1% and 9.0% respectively, compared with the same quarter of the previous year. The categories residential and commercial classes benefit from the accumulated effect of the expansion of total payroll and credit availability in recent years, which has resulted in increased purchases of household electrical goods and a dynamic retail trade.  Additionally, higher temperatures than those of the previous year boosted consumption. The amount sold to the industrial class shows that this category is overcoming the negative effects of the international crisis that affected the industry in our concession area until mid-2009, and resuming its industrial operations.

 

                                                                                                                        

Ø  Tariffs

 

In the first quarter of 2010, the energy supply tariffs applied increased by an average of 7.7%, mainly due to the impacts of the tariff adjustments of the distribution subsidiaries:

 

 

 

Deductions from Operating Revenue  

72

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Deductions from Operating Income in the first quarter of 2010 amounted to R$ 1,323,743, an increase of 10.2% (R$ 122,058) in relation to the same quarter of 2009, mainly as a result of the increase of 12.8% (R$ 119,170) on PIS, COFINS and ICMS, due to an increase in the supply billed.

 

Cost of Electric energy

Cost of Electric Energy in the quarter totaled R$ 1,637,102, an increase of 13.5% (R$ 194,412) in relation to the same period of the previous year: 

Ø  Electric energy purchased for Resale

 

The balance of electric energy purchased for resale was R$ 1,324,515, an increase of 9.9% (R$ 118,795), mainly due to the increase of 3.7%  in the amount of energy bought in the quarter and the effects of tariff adjustments of generators. The reduction in the cost of electric energy purchased for resale caused by the purchase of energy from Itaipu (in dollars) and acquisitions in the CCEE were duly offset by the effects of deferral and amortization of the regulatory CVA and Overcontracting assets and liabilities.

 

Ø  Tariff for the Use of the Distribution System

 

Increase of 31.9% (R$ 75,617) in the charges for use of the transmission and distribution system, mainly due to the reduction of the effects of deferral and amortization of CVA in relation to the inauguration of the thermal plants of generation in 2008.

 

 

Operating Costs and Expense

Operating costs and expenses in the quarter amounted to R$ 456,675, an increase of 7.0% (R$ 29,973) compared to the same period of the previous year, mainly due to:

 

Ø  Manageable Operating Expenses

 

Comprising costs for Personnel, Pension, Material, Third-party Services and Others, these expenses totaled R$ 315,054 in the quarter, an increase of 11.1% (R$ 31,370), mainly as a result of:

·         Increase of 18.2% (R$ 22,653) in Personnel, due mainly to the increase in the number of employees, the effects of the Collective Agreement (average of 6.4%), an increase in the cost of SAT (Work-related accident insurance), terminations and reduction of capitalized expenses in the subsidiary RGE;

·         Private Pension Fund: recorded income of R$ 21,799 in the quarter and expense of R$ 919 in the first quarter of 2009, largely as a result of the nominal earnings expected on the plan assets, based on an Actuarial Report;

·         Increase of 8.9% (R$ 9,386) in Material and Outsourced Services;

·         Increase of 41.2% (R$ 22,049) in Other Expense, due to: (i) the increase in the expense for Allowance for Doubtful Accounts (R$ 14,882) compared with the first quarter of 2009, when the subsidiary RGE recorded a reversal of R$ 16,774 and (ii) by the increase in Legal, Court and Indemnity expense (R$ 4,059).

 

73

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

Financial Income (Expense)

The net Financial Income (Expense) in the quarter was an expense of R$ 75,995, compared with R$ 62,960 in the same period of 2009, an increase of 20.7% (R$ 13,035):

 

Ø  The financial income decreased R$ 17,045 (14.7%), mainly due to:

 

·         A reduction in interest on CVA and Parcel “A” (R$ 18,871) due to liquidation of the parcel “A” assets and recording of regulatory liabilities, mainly by the subsidiary CPFL Paulista, and by the drop in the SELIC rate;

·         A decrease in monetary and exchange restatement (R$ 10,208), largely due to the amount of R$ 18,226 recorded in the first quarter of 2009 in relation to the recovery of overdue credits by the subsidiary RGE; and

·         Partially offset by the increase in the yield on investments (R$ 7,032) and an increase in arrears charges (R$ 4,150).

 

Ø  The financial expense decreased R$ 4,010 (2.2%) mainly due to:

·         The reduction of R$ 17,686 in interest on debt charges due to the drop in the CDI;

·         An increase of R$ 5,629 in monetary restatement, exchange variations and derivatives expense, largely due to the subsidiary ENERCAN's loan from BID and BNDES basket of currency of R$ 2,937;

·         A rise of R$ 8,047 in Other Financial Expense, in particular in relation to the issuance of bank guarantee.

 

 

Social Contribution and Income Tax

Taxes on income in the first quarter of 2010 totaled R$ 222,674, an increase of 31.8% (R$ 53,745) in relation to the same quarter of 2009, mainly as a result of the increase in pre-tax income (35.6%).

 

 

Net income and EBITDA

As a result of the above factors, the net income for the quarter was R$ 390,199, 38.0% (R$ 107,496) higher than in the same period of 2009.

The adjusted EBITDA (net income for the quarter, eliminating the effects of the private pension plan, depreciation, amortization, financial income (expense), equity accounting, social contribution and income tax) for the first quarter of 2010 was R$ 808,690, 22.8% (R$ 150,161) higher than the EBITDA for the same period of 2009.

 

 

74

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

13.01 INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES

 

1 - ITEM

2 - NAME OF SUBSIDIARY/ASSOCIATED COMPANY

3 - CNPJ (Federal Tax ID)

4 - CLASSIFICATION

5 - EQUITY IN CAPITAL OF INVESTEE - %

 

6 - SHAREHOLDERS' EQUITY - %

7 - TYPE OF COMPANY

8 - NUMBER OF SHARES HELD IN CURRENT QUARTER

(in units)

9 - NUMBER OF SHARES HELD IN PREVIOUS QUARTER

(in units)

 

01

COMPANHIA  PAULISTA DE FORÇA E LUZ - CPFL

33.050.196/0001-88

PUBLIC SUBSIDIARY

100.00

33.34

COMMERCIAL, INDUSTRIAL AND OTHER

72,650,091

72,650,091

 

02

CPFL GERAÇÃO DE ENERGIA S/A

03.953.509/0001-47

PUBLIC SUBSIDIARY

100.00

25.77

COMMERCIAL, INDUSTRIAL AND OTHER

205,487,715,790

205,487,715,790

 

03

CPFL COMERCIALIZAÇÃO BRASIL S/A

04.973.790/0001-42

PRIVATE SUBSIDIARY

100.00

3.20

COMMERCIAL, INDUSTRIAL AND OTHER

2,998,565

2,998,565

 

04

COMPANHIA PIRATININGA DE FORÇA E LUZ

04.172.213/0001-51

PUBLIC SUBSIDIARY

100.00

11.20

COMMERCIAL, INDUSTRIAL AND OTHER

53,031,258,896

53,031,258,896

 

05

RIO GRANDE ENERGIA S/A

02.016.439/0001-38

PUBLIC SUBSIDIARY

100.00

28.12

COMMERCIAL, INDUSTRIAL AND OTHER

807,168,578

807,168,578

 

 

75

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

14.01 CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES

 

1 - ITEM

01

2 - ISSUE ORDER NUMBER

3

3 - REGISTRATION NUMBER WITH CVM

CVM/SRE/DEB/2007/042

4 - DATE OF REGISTRATION WITH CVM

10/25/2007

5 - ISSUED SERIES

UN

6 - TYPE

SIMPLE

7 - NATURE

PUBLIC

8 - ISSUE DATE

09/03/2007

9 - DUE DATE

09/03/2014

10 - TYPE OF DEBENTURE

NO PREFERENCE

11 - REMUNERATION CONDITIONS PREVAILING

CDI + 0.45%

12 - PREMIUM/DISCOUNT

 

13 - NOMINAL VALUE (Reais)

10,000.00

14 - ISSUED AMOUNT (Thousands of Reais)

450,000

15 - NUMBER OF DEBENTURES ISSUED (UNIT)

45,000

16 - OUTSTANDING DEBENTURES (UNIT)

45,000

17 - TREASURY DEBENTURES (UNIT)

0

18 - REDEEMED DEBENTURES (UNIT)

0

19 - CONVERTED DEBENTURES (UNIT)

0

20 - DEBENTURES TO BE PLACED (UNIT)

0

21 - DATE OF THE LAST RENEGOTIATION

 

22 - DATE OF NEXT EVENT

09/03/2012

76

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

19.01 – CAPITAL EXPENDITURE

 

(Not reviewed by independent auditors)

 

 

Our principal capital expenditure in recent years has been on maintaining and upgrading our distribution network and generation projects. The following table sets forth our capital expenditure for the three month-period ended March 31, 2010, as well as the three years ended December 31, 2009, 2008 and 2007.

 

 

    In million of R$
        Year ended December 31,
    1st quarter
2010
 
  2009    2008    2007 
Distribution                 
CPFL Paulista    93    344    279    291 
CPFL Piratininga    35    132    123    144 
RGE    41    215    226    221 
CPFL Santa Cruz      20    18    11 
Other      34    19   
    179    745    665    676 
 
Generation    117    570    502    445 
 
Commercialization    2    10    8    9 
 
Other    -    2    3    2 
 
Total    298    1,327    1,178    1,132 

 

 

We plan to effect capital expenditure totaling approximately R$ 1,724 million in 2010 and approximately R$ 1,454 million in 2011. Of the total budgeted capital expenditure over this period, R$ 2,018 million is for distribution and R$ 1,160 million is for generation.

77

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

20.01 – OTHER IMPORTANT INFORMATION ON THE COMPANY

 

 

Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, as of March 31, 2010:

 

 

 Shareholders   Common shares    Interest - % 
VBC Energia S.A.    122,948,720    25.62 
BB Carteira Livre I FIA    149,233,727    31.10 
Bonaire Participações S.A.    60,713,511    12.65 
BNDES Participações S.A.    40,526,739    8.44 
Board of Directors    112   
Executive officers    14,759   
Other shareholders    106,473,370    22.19 
Total    479,910,938    100.00 

 

Quantity and characteristic of securities held by the Controlling Shareholders, Executive Officers,  Board of Directors, Fiscal Council and Free Float, as of March 31, 2010 and 2009:

 

 

    March 31, 2010    March 31, 2009 
 
    Common shares    Interest - %    Common shares    Interest - % 
Shareholders                 
Controlling shareholders    333,314,879    69.45    333,314,881    69.45 
Administrator                 
   Executive officers    14,759      31,152    0.01 
   Board of Directors    112      3,110   
Fiscal Council Members         
Other shareholders    146,581,188    30.54    146,561,795    30.54 
Total    479,910,938    100.00    479,910,938    100.00 
Outstanding shares    146,581,188    30.54    146,561,795    30.54 

 

78

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

Shareholders of VBC Energia S/A holding more than 5% of the shares of the same type and class, up to the individuals level, as of March 31, 2010.

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

(a)

Atila Holdings S.A.

1,815,927

50.00

70,530

50.00

1,886,457

50.00

(b)

Camargo Corrêa Energia S.A.

1,100,652

30.31

47,018

33.33

1,147,670

30.42

(c)

Camargo Corrêa S.A.

550,324

15.15

23,512

16.67

573,836

15.21

 

Other Shareholders

164,951

4.54

-

-

164,951

4.37

 

Total

3,631,854

100.00%

141,060

100.00

3,772,914

100.00

 

 

 

(a)

Átila Holdings S/A

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

(d)

Construções e Comércio Camargo Corrêa S.A.

280,767,655

38.91

 

 

 

 

 

Camargo Corrêa S.A.

440,877,607

61.09

 

 

 

 

 

Total

721,645,262

100.00

 

 

 

 

 

 

 

(b)

Camargo Corrêa Energia S.A.

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

(e)

Camargo Corrêa Investimento em Infra-Estrutura S.A.

518,860

100.00

518,854

100.00

1,037,714

100.00

 

Other Shareholders

-

-

6

-

6

-

 

Total

518,860

100.00

518,860

100.00

1,037,720

100.00

 

 

 

 

 

 

 

 

 

(c)

Camargo Corrêa S.A.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

(f)

Participações Morro Vermelho S.A.

48,941

99.99

93,099

100.00

142,040

100.00

 

Other Shareholders

5

0.01

1

-

6

-

 

Total

48,946

100.00

93,100

100.00

142,046

100.00

 

 

 

(d) Construções e Comércio Camargo Corrêa S.A.

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

(c)

Camargo Corrêa S.A.

290,108

100.00

87,772

99.99

377,880

99.99

 

Other Shareholders

5

-

8

0.01

13

0.01

 

Total

290,113

100.00

87,780

100.00

377,893

100.00

 

79

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

(e) 

 Camargo Corrêa Investimento em Infra- Estrutura S.A.

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

 

 

(c)

Camargo Corrêa S.A.

685,162,736

100.00

 

 

 

Other Shareholders

6

0.00

 

 

 

Total

685,162,742

100.00

 

 

 

 

(f)

Participações Morro Vermelho S.A.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

(g)

RCABON Empreendimentos e Participações S.A

749,998

33.33

-

-

749,998

11.11

(h)

RCNON Empreendimentos e Participações S.A

749,998

33.33

-

-

749,998

11.11

(i)

RCPODON Empreendimentos e Participações S.A

749,998

33.34

-

-

749,998

11.12

(j)

RCABPN Empreendimentos e Participações S.A

-

-

1,498,080

33.29

1,498,080

22.19

(k)

RCNPN Empreendimentos e Participações S.A

-

-

1,498,080

33.29

1,498,080

22.19

(l)

RCPODPN Empreendimentos e Participações S.A

-

-

1,498,080

33.29

1,498,080

22.19

(m)

RRRPN Empreendimentos e Participações S.A

-

-

5,760

0.13

5,760

0.09

 

Other Shareholders

6

-

-

-

6

-

 

Total

2,250,000

100.00

4,500,000

100.00

6,750,000

100.00

 

 

 

 

 

 

 

 

 

(g)

RCABON Empreendimentos e Participações S.A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

 

Rosana Camargo Arruda Botelho

749,850

100.00

-

 

749,850

99.98

 

Other Shareholders

-

-

150

100.00

150

0.02

 

Total

749,850

100.00

150

100.00

750,000

100.00

 

 

(h)

RCNON Empreendimentos e Participações S.A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

 

Renata Camargo Nascimento

749,850

100.00

-

-

749,850

99.98

 

Other Shareholders

-

-

150

100.00

150

0.02

 

Total

749,850

100.00

150

100.00

750,000

100.00

 

 

 

 

 

(i)

 

 

 

 

 

RCPODON Empreendimentos e Participações S.A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

Preferred

Shares

%

TOTAL

%

 

Regina Camargo Pires Oliveira Dias

749,850

100.00

-

 

749,850

99.98

 

Other Shareholders

-

-

150

100.00

150

0.02

 

Total

749,850

100.00

150

100.00

750,000

100.00

 

 

(j)

RCABPN Empreendimentos e Participações S.A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

 

Rosana Camargo Arruda Botelho

1,499,890

99.99

 

 

 

 

 

Other Shareholders

110

0.01

 

 

 

 

 

Total

1,500,000

100.00

 

 

 

 

 

 

(k)

RCNPN Empreendimentos e Participações S.A

 

 

 

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

 

Renata Camargo Nascimento

1,499,890

99.99

 

 

 

 

 

Other Shareholders

110

0.01

 

 

 

 

 

Total

1,500,000

100.00

 

 

 

 

80

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

 

(l)

RCPODPN Empreendimentos e Participações S.A

 

 

 

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

 

Regina Camargo Pires Oliveira Dias

1,499,850

99.99

 

 

 

 

 

Other Shareholders

150

0.01

 

 

 

 

 

Total

1,500,000

100.00

 

 

 

 

 

 

(m)

RRRPN Empreendimentos e Participações S.A

 

 

 

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

 

Rosana Camargo Arruda Botelho

1,980

33.33

 

 

 

 

 

Renata Camargo Nascimento

1,980

33.33

 

 

 

 

 

Regina Camargo Pires Oliveira Dias

1,980

33.34

 

 

 

 

 

Total

5,940

100.00

 

 

 

 

 

 

 

 

 

 

 

 

81

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

 

 

 

 

Shareholder’s composition of Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I holding more than 5% of the shares of the same type and class, up to the individuals level, as of March 31, 2010.

 

 

 

 

 

 

 

 

 

 

 

 

Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Quotes

%

 

 

 

 

 

 

Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI

130,163,542

100.00

 

 

 

 

 

 

Total

130,163,542

100.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of Bonaire Participações S.A. holding more than 5% of the shares of the same type and class, up to the individual level, as of March 31, 2010.

 

 

 

 

 

 

 

 

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

(a)

Energia São Paulo Fundo de Investimento em Participações

66,728,872

100.00

 

 

 

 

 

Other Shareholders

6

-

 

 

 

 

 

Total

66,728,878

100.00

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Energia São Paulo Fundo de Investimento em Participações

 

 

 

 

 

 

 

 

 

 

Shareholders

Quotes

%

 

 

 

 

(b)

Fundo de Investimento em Cotas de Fundos de Investimento em Participações 114

353,528,507

        44.39

 

 

 

 

 

Fundação Petrobrás de Seguridade Social - Petros

181,405,069

        22.78

 

 

 

 

 

Fundação Sabesp de Seguridade Social – Sabesprev

4,823,881

          0.61

 

 

 

 

 

Fundação Sistel de Seguridade Social

256,722,311

        32.22

 

 

 

 

 

Total

796.479.768

100.00

 

 

 

 

 

 

 

 

82

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

(b) Fundo de Investimento em Cotas de Fundos de Investimento em Participações 114

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

 

Fundação CESP

353,528,507

100.00

 

 

 

 

 

Total

353,528,507

100.00

 

 

 

 

 

 

 

 

 

 

 

Shareholders of BNDES Participações S.A. holding more than 5% of the shares of the same type and class, up to the individuals level, as of March 31, 2010.

 

 

 

Shareholders

Common

Shares

%

 

 

 

 

 

Banco Nacional de Desenv. Econômico e Social  ( * )

1

100.00

 

 

 

 

 

Total

1

100.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

( * )

State agency – Brazilian Federal. 

 

 

 

 

The quantity of shares are expressed in units.

 

 

 

 

 

Commitment to arbitrage

 

The Company is committed to arbitration in the Market Arbitration Chamber, in accordance with the Arbitration Clause in Article 44 of the Company’s By-Laws. 

 

83

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

Quarterly Social Report / 2010 / 2009 *             
Company: CPFL ENERGIA S.A.             
1 - Basis for Calculation  1st quarter 2010 Value (R$ 000)  1st quarter 2009 Value (R$ 000) 
Net Revenues (NR)  2,785,064  2,386,070 
Operating Result (OR)  615,292  453,718 
Gross Payroll (GP)  126,881  112,656 
2 - Internal Social Indicators  Value (000)  % of GP  % of NR  Value (000)  % of GP  % of NR 
Food  10,180  8.02%  0.37%  9,551  8.48%  0.40% 
Mandatory payroll taxes  34,622  27.29%  1.24%  29,490  26.18%  1.24% 
Private pension plan  6,278  4.95%  0.23%  6,461  5.74%  0.27% 
Health  7,422  5.85%  0.27%  6,166  5.47%  0.26% 
Occupational safety and health  428  0.34%  0.02%  336  0.30%  0.01% 
Education  433  0.34%  0.02%  427  0.38%  0.02% 
Culture  0.00%  0.00%  0.00%  0.00% 
Trainning and professional development  1,919  1.51%  0.07%  583  0.52%  0.02% 
Day-care / allowance  280  0.22%  0.01%  277  0.25%  0.01% 
Profit / income sharing  10,679  8.42%  0.38%  7,794  6.92%  0.33% 
Others  1,651  1.30%  0.06%  898  0.80%  0.04% 
Total - internal social indicators  73,893  58.24%  2.65%  61,983  55.02%  2.60% 
3 - External Social Indicators  Value (000)  % of OR  % of NR  Value (000)  % of OR  % of NR 
Education  53  0.01%  0.00%  407  0.09%  0.02% 
Culture  3,038  0.49%  0.11%  1,578  0.35%  0.07% 
Health and sanitation  62  0.01%  0.00%  36  0.01%  0.00% 
Sport  0.00%  0.00%  10  0.00%  0.00% 
War on hunger and malnutrition  0.00%  0.00%  0.00%  0.00% 
Others  147  0.02%  0.01%  273  0.06%  0.01% 
Total contributions to society  3,300  0.54%  0.12%  2,304  0.51%  0.10% 
Taxes (excluding payroll taxes)  1,347,622  219.02%  48.39%  1,171,558  258.21%  49.10% 
Total - external social indicators  1,350,922  219.56%  48.51%  1,173,862  258.72%  49.20% 
4 - Environmental Indicators  Value (000)  % of OR  % of NR  Value (000)  % of OR  % of NR 
Investments relalated to company production / operation  24,157  3.93%  0.87%  20,524  4.52%  0.86% 
Investments in external programs and/or projects  11,168  1.82%  0.40%  13,602  3.00%  0.57% 
Total environmental investments  35,325  5.75%  1.27%  34,126  7.52%  1.43% 
Regarding the establishment of "annual targets" to minimize             
residues, the consumption in production / operation and  ( ) do not have targets     ( ) fulfill from 51 to 75%  ( ) do not have targets    ( ) fulfill from 51 to 75% 
increase efficiency in the use of natural resources, the  ( ) fulfill from 0 to 50%    (X) fulfill from 76 to 100%  ( ) fulfill from 0 to 50%    (X) fulfill from 76 to 100% 
company:             
5 - Staff Indicators  1st quarter 2010 1st quarter 2009
Nº of employees at the end of period  7,376 7,206
Nº of employees hired during the period  293 165
Nº of outsourced employees  Not available 6,260
Nº of interns  212 199
Nº of employees above 45 years age  2,074 1,737
Nº of women working at the company  1,479 1,266
% of management position occupied by women  10.21% 12.04%
Nº of Afro-Brazilian employees working at the company  754 681
% of management position occupied by Afro-Brazilian employees  1.32% 1.98%
Nº of employees with disabilities  289 291
6 - Relevant information regarding the exercise of corporate citizenship 1st quarter 2010 1st quarter 2009
Ratio of the highest to the lowest compensation at company  74,49 71,48
Total number of work-related accidents  5 5
Social and environmental projects developed by the company were decided upon by:  ( ) directors  (X) directors and managers  ( ) all employees  ( ) directors  (X) directors and managers   ( ) all employees 
Health and safety standards at the workplace were decided upon by:  ( ) directors and managers  ( ) all employees  (X) all + Cipa  ( ) directors and managers  ( ) all employees  (X) all + Cipa 
Regarding the liberty to join a union, the right to a collective negotiation and the internal representation of the employees, the company:  ( ) does not get involved  ( ) follows the OIT rules  (X) motivates and follows OIT  ( ) does not get involved  ( ) follows the OIT rules  (X) motivates and follows OIT 
 The private pension plan contemplates:  ( ) directors  ( ) directors and managers  (X) all employees  ( ) directors  ( ) directors and managers   (X) all employees 
 The profit / income sharing contemplates:  ( ) directors  ( ) directors and managers  (X) all employees  ( ) directors  ( ) directors and managers   (X) all employees 
In the selection of suppliers, the same ethical standards and social / environmental responsibilities adopted by the company:  ( ) are not considered  (X) are suggested  ( ) are required  ( ) are not considered  (X) are suggested  ( ) are required 
Regarding the participation of employees in voluntary work programs, the company:  ( ) does not get involved  ( ) supports  (X) organizes and motivates  ( ) does not get involved  ( ) supports  (X) organizes and motivates 
Total number of customer complaints and criticisms:  in the company
276,462 
in Procon
342 
in the Courts
443 
in the company
208,075 
in Procon
429 
in the Courts
411 
% of complaints and criticisms attended to or resolved: in the company
100% 
in Procon
100% 
in the Courts
39.80% 
in the company
100% 
in Procon
100% 
in the Courts
50.45% 
Total value-added to distribute (R$ 000):  1st quarter 2010: 2,079,180  1st quarter 2009: 1,817,322 
  66% government   6% employees  66% government    7% employees 
  0% shareholders   9% third parties  0% shareholders    11% third parties 
Value-Added Distribution (VAD):  19% retained      16% retained     
7 - Other Information
In the financial items were utilized the percentage of stock paticipation. For the other information, as number of employees and legal lawsuits, the informations were available in full numbers.
Responsible: Antônio Carlos Bassalo, phone: 55-19-3756-8018, bassalo@cpfl.com.br
 
(*) Information not reviewed by the independent auditors

84

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

 

 

Added Value Statements
for the periods ended March 31, 2010 and 2009
(in thousands of Brazilian Reais)
        Parent Company    Consolidated 
        1st quarter    1st quarter    1st quarter    1st quarter 
        2010    2009    2010    2009 
 
1 - Revenues    0    29    4,414,019    3,797,086 
    1.1 - Operating revenues        4,108,807    3,587,756 
    1.2 - Revenues related to the construction of own assets      28    319,512    206,318 
    1.3 - Allowance for doubtful accounts        (11,773)    3,109 
    1.4 - Provision for losses on the realization of regulatory assets        (2,527)    (97) 
 
2-    ( - ) Inputs    (3,873)    (3,134)    (2,284,610)    (1,947,834) 
    2.1 - Electricity Purchased for Resale        (1,811,630)    (1,594,514) 
    2.2 - Material    (15)    (8)    (166,808)    (95,766) 
    2.3 - Outsourced Services    (2,802)    (1,841)    (223,669)    (182,881) 
    2.4 - Other    (1,056)    (1,285)    (81,450)    (73,488) 
    2.5 - Cost of Service Rendered        (1,053)    (1,185) 
 
3-    Gross Added Value (1 + 2)    (3,873)    (3,105)    2,129,409    1,849,252 
 
4-    Retentions    (35,392)    (37,217)    (148,209)    (148,794) 
    4.1 - Depreciation and Amortization    (30)    (30)    (103,521)    (102,070) 
    4.2 - Amortization of intangible assets    (35,362)    (37,187)    (44,688)    (46,724) 

 

5-    Net Added Value Generated (3 + 4)    (39,265)    (40,322)    1,981,200    1,700,458 
 
6-    Added Value Received in Transfer    441,379    339,374    97,980    116,864 
    6.1 - Financial Income    12,624    8,230    100,399    118,950 
    6.2 - Equity in Subsidiaries    428,755    331,144     
    6.3 - Non-Controlling Shareholder's Equity        (2,419)    (2,086) 
7-    Added Value to be Distributed (5 + 6)    402,114    299,052    2,079,180    1,817,322 
 
8-    Distribution of Added Value                 
    8.1 - Personnel and Charges    732    547    117,285    121,348 
    8.1.1 - Direct Remuneration    683    463    89,509    79,932 
    8.1.2 - Benefits    19    16    20,733    33,550 
    8.1.3 - Government severance indemnity fund for employees - F.G.T.S.    30    68    7,043    7,866 
    8.2 - Taxes, Fees and Contributions      (65)    1,376,377    1,220,793 
    8.2.1 - Federal      (65)    690,446    604,189 
    8.2.2 - State        680,908    611,902 
    8.2.3 - Municipal        5,023    4,702 
    8.3 - Interest and Rentals    11,178    15,867    195,319    192,478 
    8.3.1 - Interest    11,154    15,828    192,348    189,397 
    8.3.2 - Rental    24    39    2,971    3,081 
    8.4 - Interest on capital    390,199    282,703    390,199    282,703 
    8.4.1 - Retained profits    390,199    282,703    390,199    282,703 
        402,114    299,052    2,079,180    1,817,322 

85

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

21.01 – REPORT ON SPECIAL REVIEW-UNQUALIFIED

 

(Convenience Translation into English from the Original Previously Issued in Portuguese)

 

 

Independent auditors’ review report

 

To

The Shareholders and Management of

CPFL Energia S.A.

São Paulo - SP

 

 

1.     We have reviewed the accompanying quarterly financial information of CPFL Energia S.A. (“The Company”) and consolidated quarterly financial information of these Company and its’  subsidiaries as of March 31, 2010, comprising the balance sheets, the statements of income, shareholders’ equity, cash flows and added value, the footnotes and performance report, prepared under the responsibility of the Company’s Management.

 

2.     The quarterly financial information of the jointly-owned indirect subsidiary Chapecoense Geração S.A. as of March 31, 2010 were reviewed by other independent auditors, who issued an unqualified special review report on April 19, 2010. CPFL Energia S.A. values its indirect interest in Chapecoense Geração S.A. by the equity method of accounting and consolidates this investment by the proportional consolidation method. As of March 31, 2010, the balance of this investment is R$ 275,445 thousand, and the equity in income of this investment in the net income for this three-month period is a loss of  R$ 9 thousand. The quarterly financial information of this indirect investee included in the consolidated quarterly financial information presents proportional assets of R$ 1,252,871 thousand as of March 31, 2010. Our report, in relation to the amounts generated by this indirect investment is based exclusively on the report of the review conducted by the independent auditors of Chapecoense Geração S.A.

 

3.      Our review was conducted in accordance with specific standards established by the IBRACON - Brazilian Institute of Independent Auditors and the Federal Accounting Council (CFC), which consisted mainly of (a) inquiries of and discussions with persons responsible for the accounting, financial and operating areas of the Company and its subsidiaries about the main criteria adopted in preparing the quarterly financial information, and (b) review of the information and subsequent events that have or may have material effects on the financial position and operations of the Company and its subsidiaries.

 

4.     Based on our special review and the review report issued by other independent auditors, we are not aware of any material modifications that should be made to the quarterly financial information mentioned in the first paragraph, for it to be in conformity with accounting practices adopted in Brazil and regulations issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly financial information.

 

86

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                        Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: March 31, 2010

 

5.     The balance sheet of the jointly-owned indirect subsidiary BAESA - Energética Barra Grande S.A. as of December 31, 2009, presented for comparative purposes, were examined by other independent auditors, who issued an unqualified auditors’ report, dated January 22, 2010. The statements of income, cash flows and shareholders’ equity of this indirect subisiary, for the three-month period ended March 31, 2009, were reviewed by other independent auditors who issued an unqualified special review report thereon, dated April 24, 2009.

 

6.     The balance sheet of the jointly-owned indirect subsidiary Campos Novos Energia S.A.  as of December 31, 2009, presented for comparative purposes, were examined by other independent auditors, who issued an unqualified auditors’ report, dated January 22, 2010. The statements of income, cash flows and shareholders’ equity of this indirect subisiary, for the three-month period ended March 31, 2009, were reviewed by other independent auditors who issued an unqualified special review report thereon, dated April 24, 2009.

 

7.     As mentioned in footnote  n° 3 (c.5) to the quarterly financial information, as result of the 2009 tariff review established on the concession agreement, the Brazilian Electricity Agency - ANEEL ratified, on a temporary basis, the financial components of the power overcontracted of its direct subsidiaries Companhia Piratininga de Força e Luz and Companhia Paulista de Força e Luz. The possible effects resulting from this final review, if any, will be recorded in the Company’s equity and financial position in subsequent periods.

 

8.     As mentioned in footnote n° 2, during 2009, were approved by CVM, several pronouncements, interpretations and technical guidance issued by the Committee for Accounting Pronouncements (CPC) in effect for 2010, which changed the accounting practices adopted in Brazil. As authorized by the CVM Resolution 603/09, Company’s Management opted to present its Quarterly Financial Information (ITR) using the accounting practices adopted in Brazil up to December 31, 2009, i.e. did not apply these regulatory rules in effect for 2010.  As required by the aforementioned CVM Resolution 603/09, the Company disclosed this fact in footnote n° 2 to the ITR, the description of the main changes that may have an impact on the financial statements of the year end and the clarifications for the reasons that preclude the presentation of an estimate of their possible effects on equity and on the result, as required by the Resolution. 

 

Campinas, April 30, 2010

 

 

 

KPMG Auditores Independentes

CRC 2SP014428/O-6

 

 

 

 

 

Jarib Brisola Duarte Fogaça

Contador CRC 1SP125991/O-0

87

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: COMPANHIA PAULISTA DE FORÇA E LUZ - CPFL

 

The subsidiary Companhia Paulista de Força e Luz - CPFL is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of March 31, 2010, filed with the CVM (Brazilian Securities Commission).

88

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL GERAÇÃO DE ENERGIA S.A.

 

 

The subsidiary CPFL Geração de Energia S.A. is a public company and its Comments on the performance in this quarter (the Company and Consolidated) are attached to the Interim Financial Statements as of March 31, 2010, filed with the CVM (Brazilian Securities Commission).

89

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

2 - COMPANY NAME

3 - CNPJ (Federal Tax ID)

01866-0

CPFL ENERGIA S.A.

02.429.144/0001-93

 

SUBSIDIARY / ASSOCIATED

COMPANY NAME

CPFL COMERCIALIZAÇÃO BRASIL S/A

 

22.01 – STATEMENT INCOME OF SUBSIDIARY (in thousands of Brazilian reais – R$)

 

1 – Code

2 – Description

3 - 01/01/2010 to 03/31/2010

4 - 01/01/2010 to 03/31/2010

5 - 01/01/2009 to 03/31/2009

6 - 01/01/2009 to 03/31/2009

3.01

Operating revenues

384,318

384,318

410,161

410,161

3.02

Deductions from operating revenues

(41,432)

(41,432)

(60,705)

(60,705)

3.02.01

ICMS

(6,539)

(6,539)

(23,876)

(23,876)

3.02.02

PIS

(6,158)

(6,158)

(6,465)

(6,465)

3.02.03

COFINS

(28,369)

(28,369)

(29,782)

(29,782)

3.02.04

ISS

(366)

(366)

(582)

(582)

3.03

Net operating revenues

342,886

342,886

349,456

349,456

3.04

Cost of sales and/or services

(243,464)

(243,464)

(281,632)

(281,632)

3.04.01

Electric energy purchased for resale

(238,943)

(238,943)

(274,916)

(274,916)

3.04.02

Electric energy network usage charges

(17)

(17)

426

426

3.04.03

Material

(48)

(48)

(202)

(202)

3.04.04

Outsourced services

(4,456)

(4,456)

(6,940)

(6,940)

3.05

Gross operating income

99,422

99,422

67,824

67,824

3.06

Operating expenses/income

(6,834)

(6,834)

(783)

(783)

3.06.01

Sales and Marketing

(6,566)

(6,566)

(5,831)

(5,831)

3.06.02

General and administrative

(186)

(186)

(752)

(752)

3.06.03

Financial

(82)

(82)

5,800

5,800

3.06.03.01

Financial income

4,857

4,857

4,358

4,358

3.06.03.02

Financial expenses

(4,939)

(4,939)

1,442

1,442

90

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expense

0

0

0

0

3.06.06

Equity in subsidiaries

0

0

0

0

3.07

Income from operations

92,588

92,588

67,041

67,041

3.08

Nonoperating income (expense)

0

0

0

0

3.08.01

Income

0

0

0

0

3.08.02

Expenses

0

0

0

0

3.09

Income before taxes on income and noncontrolling interest

92,588

92,588

67,041

67,041

3.10

Income tax and social contribution

(30,789)

(30,789)

(19,019)

(19,019)

3.10.01

Social contribution

(8,165)

(8,165)

(5,100)

(5,100)

3.10.02

Income tax

(22,624)

(22,624)

(13,919)

(13,919)

3.11

Deferred income tax and social contribution

308

308

(1,490)

(1,490)

3.11.01

Social contribution

82

82

(395)

(395)

3.11.02

Income tax

226

226

(1,095)

(1,095)

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders’ equity

0

0

0

0

3.15

Net income (loss) for  the period

62,107

62,107

46,532

46,532

 

SHARES OUTSTANDING EX-TREASURY STOCK (in units)

2,998,565

2,998,565

2,998,565

2,998,565

 

EARNINGS PER SHARE (Reais)

20.71224

20.71224

15.51809

15.51809

 

LOSS PER SHARE (Reais)

 

 

 

 

91

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL COMERCIALIZAÇÃO BRASIL S.A.

 

Net Operating Revenue

 

Net Operating Revenue for the first quarter of 2010, which includes the operations of the subsidiaries CLION, Sul Geradora and Cone Sul, was R$ 342,886, a decrease of R$ 6,570 (1.9%) in relation to the same quarter of 2009. This decrease is basically explained by: i) the decrease of 6.2% in the volume of energy sales (R$ 23,354); ii) the decrease of R$6,536 in services income; and iii) recording in the first quarter of 2010 of additional income of R$ 21,486 in relation to compensation for cancellation of energy contracts.

 

 

 

Net Income and EBITDA

 

Net income of R$ 62,107 was recorded in the first quarter of 2010, an increase of R$ 15,575 (33.5%), compared with the same quarter of 2009.

 

EBITDA (net income before Financial Income (Expense), income tax and social contribution, depreciation and amortization) for the first quarter of 2010 was R$ 93,261, 51.1% higher than the   R$ 61,713 recorded in the same quarter of 2009 (information not reviewed by the Independent Auditors). 

92

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL PIRATININGA DE FORÇA E LUZ

 

The subsidiary CPFL Piratininga de Força e Luz is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of March 31, 2010, filed with the CVM (Brazilian Securities Commission).

93

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: RIO GRANDE ENERGIA S.A.

 

The subsidiary Rio Grande Energia S.A. is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of March 31, 2010, filed with the CVM (Brazilian Securities Commission).

94

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

SUMMARY

Group

Table

Description

Page

01

01

IDENTIFICATION

1

01

02

HEAD OFFICE

1

01

03

INVESTOR RELATIONS OFFICER (Company Mailing Address)

1

01

04

ITR REFERENCE

1

01

05

CAPITAL STOCK

2

01

06

COMPANY PROFILE

2

01

07

COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

2

01

08

CASH DIVIDENDS

2

01

09

SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR

3

01

10

INVESTOR RELATIONS OFFICER

3

02

01

BALANCE SHEET – ASSETS

4

02

02

BALANCE SHEET - LIABILITIES

5

03

01

INCOME STATEMENT

7

04

01

STATEMENTS OF CASH FLOW

9

05

01

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010

11

05

02

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010

13

08

01

CONSOLIDATED BALANCE SHEET - ASSETS

15

08

02

CONSOLIDATED BALANCE SHEET - LIABILITIES

16

09

01

CONSOLIDATED INCOME STATEMENT

18

10

01

CONSOLIDATED STATEMENTS OF CASH FLOW

21

11

01

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010

23

11

02

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO MARCH 31, 2010

24

06

01

NOTES TO THE INTERIM FINANCE STATEMENTS

25

07

01

COMMENTS ON PERFORMANCE IN THE QUARTER

70

12

01

COMMENTS ON CONSOLIDATED PERFORMANCE OF THE QUARTER

71

13

01

INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES

75

14

01

CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES

76

19

01

CAPITAL EXPENDITURES

77

20

01

OTHER IMPORTANT INFORMATION ON THE COMPANY

78

21

01

REPORT ON  SPECIAL REVIEW-UNQUALIFIED

86

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

88

 

 

COMPANHIA PAULISTA DE FORÇA E LUZ – CPFL

 

22

 01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

89

 

 

CPFL GERAÇÃO DE ENERGIA S.A.

 

95

 


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)                                                                                                                    

STANDARD FINANCIAL STATEMENTS – DFP                                                                       Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                                               Date: March 31, 2010

 

 

22

01

INCOME STATEMENT OF SUBSIDIARIES

90

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

92

 

 

CPFL COMERCIALIZAÇÃO BRASIL S.A.

 

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

93

 

 

COMPANHIA PIRATININGA DE FORÇA E LUZ

 

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

94

 

 

RIO GRANDE ENERGIA S.A.

 

 

96

 


SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 11, 2010

 
CPFL ENERGIA S.A.
 
By:  
         /S/  WILSON P. FERREIRA JÚNIOR

  Name:
Title:  
  Wilson P. Ferreira Júnior
  Chief Financial Officer and Head of Investor Relations
 

 
FORWARD-LOOKING STATEMENTS

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.