3. TRANSMISSÃO PAULISTA - OPERATING REGION
S/E BRAGANÇA
PAULISTA
S/E ARARAQUARA
S/E BOM
(CEMIG) JARDIM
(FURNAS)
MINAS GERAIS
UHE JOSÉ ERMÍRIO DE MORAES
(ÁGUA VERMELHA) UHE JAGUARI
MOGI
CABREÚVA (FURNAS) S/E S. J. DOS
(ELEKTRO) MAIRIPORÃ CAMPOS
(SABESP)
RIO GRANDE S/E BOTUCATU
CARDOSO GUARULHOS
(FURNAS) MOGI S/E TAUBATÉ
(ELEKTRO) PIRITUBA NORDESTE
ANHANGUERA ITAPETI
NORTE
JALES
UHE ILHA (ELEKTRO) EDGARD DE R. REBERTE F.
SOLTEIRA IBIÚNA S/E RIO
SOUZA
S/E BAURU (FURNAS) CENTRO PARDO
STO. ÂNGELO
ILHA ANHANGUERA ETR
SOLTEIRA VOTUPORANGA II PROVISÓRIA
CENTRO
MATO GROSSO M. FORNASARO M. REALE LESTE
TIJUCO PRETO
(FURNAS)
DO SUL (CPFL)
XAVANTES BANDEIRANTES
UHE ENG. BERTIOGA II
SOUZA DIAS SUL
(JUPIÁ) UHE S. JOSÉ DO INTERLAGOS
JUPIÁ TRÊS RIO PRETO PIRATININGA S/E SÃO
TRÊS IRMÃOS SEBASTIÃO
IRMÃOS (CNEE)
RIO
(ENERSUL) PA
UHE NOVA RD
(CPFL) (ELEKTRO) O HENRY
AVANHANDAVA
(CPFL) (CPFL) BORDEN
(CNEE) EMBU GUAÇU
BAIXADA
UBARANA
CATANDUVA SANTISTA
VALPARAÍSO VICENTE DE
RIBEIRÃO
CARVALHO
PRETO (ELMA) P. TAQUES
UHE MÁRIO
(BE)
LOPES LEÃO
PENÁPOLIS
(PROMISSÃO)
ITAIPAVA
(ELEKTRO) (CPFL) MOCOCA
UHE EUCLIDES
Á
(CPFL)
MONGAGUÁ
N
(CPFL) DA CUNHA
RA
UHE A. SALLES UHE CACONDE
PA
DRACENA (ELEKTRO)
RIO OLIVEIRA
RIO
TIE (LIMOEIRO)
FLÓRIDA TÊ
(CAIUÁ)
PAULISTA CASA
BRANCA S/E PERUÍBE
S. JOSÉ DO
SÃO CARLOS I RIO PARDO
(CPFL) DESCALVADO
UHE IBITINGA ARARAQUARA (CPFL) POÇOS DE CALDAS
PORTO FERREIRA (FURNAS)
PRES. PRUDENTE II
TUPÃ
(CAIUÁ)
(EEVP)
(CPFL)
(CAIUÁ)
UHE A. SOUZA LIMA SÃO JOÃO DA
PRES. PRUDENTE I (BARIRI) BOA VISTA II
RANCHARIA
(EEVP) SÃO CARLOS II PINHAL
(CPFL)
STA. LINA BAURU (CPFL)
DOURADOS
(EEVP) MOGI GUAÇU I
(ENERSUL)
UHE SERGIO MOTA (CESP) (ELEKTRO
(PTO. PRIMAVERA) (CPFL)
(CPFL) MOGI MIRIM II
(CESP)
(CTEO) ASSIS RIO CLARO I
(EEVP)
UHE BARRA MOGI MIRIM III
BONITA
RIO (CPFL)
PTO. PRIMAVERA PA RAN (CTEO)
APA LIMEIRA I
NEM ASSIS
UHE ESCOLA A
POLITÉCNICA
UHE ROSANA (TAQUARUÇU) (CPFL)
STA. CABEÇA
BERN. DE CAMPOS JAGUARIUNA
UHE ESCOLA DE (CLFSC) STA. BARBARA
ENG. MAK ENZIE (CPFL) D' OESTE
OURINHOS BOTUCATU (EEB) ÍBA
(CAPIVARA) (CLFSC) (CLFSC)
PA
RA RIO DE
(COPEL) (COPEL) RIO JANEIRO
(FURNAS) APARECIDA
UHE SUMARÉ BRAGANÇA
UHE (EPTE)
(BE) PAULISTA
CANOAS I UHE CHAVANTES TAUBATÉ
CANOAS II UHE LUCAS TIETÊ
N. GARCEZ UHE (BE)
AVARÉ (CPFL)
(COPEL) (SALTO GRANDE) JAGUARI
(CLFSC) BOM JARDIM
UHE ARMANDO (ELEKTRO)
CABREUVA MOGI
A. LAYDNER
CERQUILHO (FURNAS) UHE
(JURUMIRIM)
(COPEL) MOGI S. J. DOS PARAIBUNA
MAIRIPORÃ
CAMPOS
(COPEL) (SABESP)
ITAPETININGA I CBA
ITAPETI
(PETROBRÁS)
UBATUBA
EDGARD DE
ITAPETININGA II IBIÚNA SOUZA STO. ÂNGELO RIO PARDO
(ELEKTRO) TIJUCO (BE)
(FURNAS)
PRETO
LEGENDA TERMINAL TERMINAL (FURNAS)
CARAGUATATUBA
(CSPE) OESTE SUL
INTERLAGOS BERTIOGA II
(BE)
USINA HIDRELÉTRICA PARANÁ (ELEKTRO)
SÃO
SEBASTIÃO
ITAPEVA BAIXADA (PETROBRÁS)
CAPÃO BONITO EMBU GUAÇU
SANTISTA
USINA C/ SUBESTAÇÃO CTEEP ITARARÉ II
VICENTE DE CARVALHO
(ELMA)
ITARARÉ I P. TAQUES
SUBESTAÇÃO CTEEP (ELEKTRO)
(BE)
O
MONGAGUÁ TIC
SUBESTAÇÃO OUTRAS CIAS. ÂN
(COPEL)
A TL
SUBESTAÇÃO INDUSTRIAL NO
PERUÍBE
EA
OC
REGISTRO
LT FUTURA LT 230 kV
LT 500 kV LT 230 kV SUBTERRÂNEA
(ELEKTRO)
LT 440 kV LT 138 kV
LT 345 kV LT 88 kV
LT 345 kV SUBTERRÂNEA LT 69 kV
LT DE OUTRAS CONCESSIONÁRIAS
SETEMBRO / 2001
4. OPERATING INFORMATION
September/05
Transmission Lines
Lines length 11,837 km
Circuits length 18,267 km
Substations
Number of substations 100
Number of transformers 464
Number of reactors 70
Energy transmitted in 2004 120,722 GWh
Transforming capacity 38,515 MVA
Number of employees 2,948
4
5. OPERATING INFORMATION
September/05
Telecommunications
Microwave stations 145
Telephone stations 108
Optical fiber cables 1,400 km
Control Centers
System Operation Center 1
Bom Jardim
Regional Operation Centers 3
Bauru
Cabreúva
São Paulo
5
6. ENERGY TRANSMITTED IN 2004 (GWh)
65,792 ELETROPAULO
36,341 BANDEIRANTE
CESP ~ PIRATININGA
11,944
AES ~ 16,821 CPFL
11,167
DUKE ~ 11,549
ELEKTRO
1,424
PETROBRÁS
~ 3,682
731 CBA + Carbocloro
EMAE ~
471 2,471
Grupo Rede
CBA ~
55,171 2,323 CPEE+CSPE+
FURNAS (T) CJE+CLFM
6,303
3,222 1,855 Enersul (ESD+
CEMIG (T) PPR+Selvíria)
831 600 Cia Luz e Força
9 120,722 Santa Cruz
COPEL (T)
2,223 60 Petrobrás, R. Pardo
235 Outros
ELETROSUL (T)
416 4,829 Perdas, Cons. Pp.
7 Serv. Auxiliar
LIGHT (T)
967
~ GENERATING Co. TRANSMITTING Co. DISTRIBUTING Co. OTHERS 6
7. Ownership Structure
September 2005
Total: 149.3 billion shares
ON PN
42% 58%
Total OS: 62.6 billion Total PS: 86.7 billion
União
Metrô
15% Others
3% Individuals State of
22% São Paulo
6%
Eletrobrás 15%
10%
BNDES
Individuals 3%
5%
State of Others
São Paulo 6% Eletrobrás
61% 54%
7
9. INCOME STATEMENT
R$ Millions
09.30.05 09.30.04 Variation %
NET REVENUE 890.2 760.6 17.0
OPERATING EXPENSES (425.1) (362.9) 17.1
EBITDA 465.1 397.7 16.9
EBITDA MARGIN 52.3% 52.3% -
DEPRECIATION (127.0) (123.7) 2.7
OPERATING INCOME 338.1 274.0 23.4
OPERATING MARGIN 38.0% 36.0% -
FINANCIAL RESULT 101.0 57.7 75.0
NON OPERATING INCOME 0.5 7.1 -
INCOME BEFORE TAXES 439.6 338.8 29.8
IR AND CSLL (104.2) (108.1) (3.6)
NET INCOME 335.4 230.7 45.3
NET MARGIN 37.7% 30.3% -
Earnings per thousand shares – R$ 2.25 1.55 45.3
INTEREST ON CAPITAL 149.4 27.2 449.3
9
10. RATIOS
9 MONTHS PERIOD - %
2005 2004
OPER. EXPENSE/ NET REVENUE 62.0 64.0
PERSONNEL / NET REVENUE 28.2 30.1
SERVICE RESULT / NET REVENUE 38.0 36.0
EBITDA / NET REVENUE 52.3 52.3
NET INCOME / NET REVENUE 37.7 30.4
ANNUALIZED NET INCOME / EQUITY 11.5 8.5
10
11. BALANCE SHEETS - ASSETS
R$ Millions
09.30.05
CURRENT ASSETS 1,067
LONG TERM ASSETS 369
PERMANENT ASSETS 3,480
4,916
11
12. BALANCE SHEETS - LIABILITIES
R$ Millions
09.30.05
CURRENT LIABILITIES 350
LONG-TERM LIABILITIES 562
DEFERRED INCOME 122
SHAREHOLDERS´ EQUITY 3,882
4,916
12
13. FINANCIAL DEBT
R$ Millions
AMORTI- INTEREST BALANCE BALANCE
INSTITUTION TERM PAYMENTS
ZATION RATE 12.31.04 09.30.05
F CESP - CTEEP RES. 1997/2005 96 months IGPDI + 6.00% 18 14 5
F CESP - CTEEP BSPS 1997/2017 240 months IGPDI + 6.00% 84 1 84
F CESP - EPTE BSPS 1997/2017 240 months IGPDI + 6.00% 150 8 150
252 23 239
SOCIÉTÉ GÉNÉRALE 1998/2006 10 sem. EURO + 9.59% 40 11 20
ELETROBRÁS 1994/2021 80 quar. UFIR + 8.00% 1 - 1
41 11 21
TOTAL 293 34 260
13
15. TRANSMISSION MODEL
CONTRACTUAL RELATIONS
T R A N S M I TTING COMP.
BASIC
NETWORK CUST CPST
USERS
ONS (1)
CCT
No. of agents No. of agents
1998: 43 1998: 13
2005: 141 2005: 46
(1) ONS – National Electric System Operator
15
16. LEGAL BASIS: CONCESSION CONTRACT
! Annual adjustment in July 1st of each year
! index: IGP-M (FGV)
! revenue review every 4 years, only for new investments;
first review in July/2005 (postponed) for works energized
after December/99
16
17. PERMITTED ANNUAL REVENUE
RAP = RPB + RPC + PA
RAP = permitted annual revenue
RPB = basic network revenue
RPB = RBSE + RBNI + RBNIA
RBSE = basic network revenue of services existing on 12/31/99
RBNI = basic network revenue of investments concluded after
12/31/99 until 06/30/05
17
18. ALLOWED ANNUAL REVENUE
RAP = RPB + RPC + PA
RPC = permitted revenue of other installations of transmission (DIT’s)
and connection
DIT’s = transmission assets recognized by ANEEL as
integrating the fixed asset of the transmitting company,
that do not integrate the basic network and made available
to the distributing or generating companies
CONNECTION = set of maneuver, protection, control, measuring
necessary to connect the installation of one or more
users equipment necessary to connect one or more
users to the transmission system
PA = adjustment installment - revenue deficit ou superavit of the
transmitting company in the previous period (June / May)
18
19. ANEEL RESOLUTION # 149/2005
CRITERIA USED BY ANEEL
• Revenue Periodical Revision
Considering that the regulation on the subject was not
defined by ANEEL, the periodical revision will be made
in a future date
• Adjustment as from July 1st, 2005
9.0752% (IGP-M variation from June/04 to May/05)
19
20. PERMITTED ANNUAL REVENUE - RAP
07/01/05 to 06/30/06 cycle - R$ Millions
07/01/04 07/01/05 Variation
Res. 70/04 Res. 149/05 %
1. Basic Network - RB 785.7 1,030.2 31.12
1.1- RB – SE (existing assets) 670.9 903.3 34.64
1.1.1- Base value 687.7 750.1 9.07
1.1.2- Reclassification -16.8 153.2 -1,011.90
1.2- RB – NI (new investments) 114.8 126.9 10.54
1.2.1- Base value 33.5 93.3 178.51
1.2.2- Reclassification -12.4 - -
1.2.3- NI after 06/30/03 93.7 - -
1.2.4- NI after 06/30/04 - 33.6 -
2. Other Transmission Assets - DIT 399.8 291.5 -27.09
2.1- DIT – SE (existing assets) 379.7 285.0 -24.94
2.1.1- Generating companies 6.4 5.1 -20.31
2.1.2- Distributing companies 309.0 433.1 40.16
2.1.3- Reclassification 64.3 -153.2 -338.26
2.2- DIT – NI (new investments) 20.1 6.5 -67.66
2.2.1- Distributing companies 7.7 6.5 -15.58
2.2.2- Reclassification 12.4 - -
3. Adjustment Installment -7.4 5.8 -178.38
4. Total Revenue 1,178.1 1,327.5 12.68 20
22. EVOLUTION OF THE TRANSMISSION BASIC NETWORK
(in Km)
Present Model
Previous Model
Previous Model
Laws # 9.648/98 and 10.848/04
90,000
88,471
87,500
86,187
85,000
Average rate 0.8% pa
Average rate 0.8% pa Average rate 3.8% pa
Average rate 3.8% pa 82,012
82,500
80,022
80,000
77,642
77,500
75,000
72,506 Average Rate
Average Rate
72,500 3.4% pa
3.4% pa
70,033 (foreseen)
(foreseen)
70,000 69,034
67,048
67,500
65,000 63,971
63,110
62,486
62,500 61,571
60,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
2005 2006 2007
22
23. TRANSMISSION PLANNING SYSTEM
EXPANSION SECTORIAL PLANS TRANSMISSÃO
PAULISTA
CCPE ONS
ASSET
PDET PAR - PAM MANAGEMENT
(5 / 10 years) (3 years)
TRANSMISSÃO
IMPROVEMENTS
PAULISTA
CONSOLIDATED PLANS REINFORCEMENTS MULTI-YEAR
BUDGET
M.M.E. / ANEEL / ONS 2005 - 2008
EXPANSION
NEW
BIDDINGS
PAR - Enlargement and Reinforcement Plan
PAM - Adequacy and Improvement Plan
CCPE - Electric System Expansion Planning Coordination Committee
PDET - Transmission Expansion Determinating Plan 23
24. ANEEL CAPITAL MODEL (1)
Assumption: each project should be financed by 60% of debt and
40% of equity
the model assumes the fair return on equity is
10.99% pa for transmission business
ANEEL considers the cost of capital as follows:
Ke = 10.99% pa Kd = 10.12% pa
Consequence: WACC = (40% x 10.99%) + (60% x (1 – T) x 10.12%)
WACC = 8.40% pa
Considering the capex, the other expenses
connected to the project and using the capital
model above, ANEEL defines the permitted annual
revenue (RAP) for the project
(1) Currently used by ANEEL although not formally approved
e.g. ANEEL Vote Report # 48500.003924/05-03 24
25. ANEEL CAPITAL MODEL
Additional issues
The model is applied for auctions and expansion projects
authorized by ANEEL for a concessionary
Investment referring to equipment substitution in a
concessionary may be only partially considered by ANEEL for
revenue purposes
According to Resolution ANEEL # 158/05, certain reinforcement
projects will not be previously authorized, though they may be
considered for annual revenues purposes at the moment of the
revision of revenues to occur every 4 years
25
26. INVESTMENT BUDGET FOR 2006 (*)
R$ millions
1. Improvements 78.0
System modernization
2. Reinforcements (possible additional revenues) 56.0
ANEEL Resolution # 158/05
3. Reinforcements (defined additional revenues) 460.0
Specific ANEEL Resolutions published
4. Corporate Investments 1.3
TOTAL 595.3
(*) Approved by the Board of Directors on 12/05/2005
26
27. ANEEL RESOLUTION # 158/2005
MAY 23, 2005
SCOPE
IT ESTABLISHES DEFINITIONS FOR REINFORCEMENTS AND
IMPROVEMENTS TO BE APPLIED IN ANNUAL PROPOSALS FOR THE
TRANSMISSION SYSTEM EXPANSION, AS WELL AS RULES AS TO THE
NEED OF ANEEL’s PREVIOUS AUTHORIZATION AND BEGINNING OF
RECEIPT OF THE PERMITTED ANNUAL REVENUE
27
28. ANEEL RESOLUTION # 158/2005
" THE RESOLUTION ESTABLISHES THAT SOME REINFORCEMENTS
AND IMPROVEMENTS SHALL BE IMPLEMENTED BY TRANSMISSION
COMPANIES AND THE INVESTMENTS CONSIDERED FOR REVENUE
PURPOSES IN THE SUBSEQUENT PERIODICAL REVIEW OF
REVENUES
28
39. PRIVATIZATION
RELEVANT NOTICE - February 03, 2005
Project of Law on CTEEP privatization sent to the State Legislature
RELEVANT NOTICE - May 19, 2005
State Legislature approves the privatization project of law
NOTICE TO THE MARKET - May 24, 2005
Governor promulgates the privatization law of CTEEP
RELEVANT NOTICE - July 12, 2005
PED determines CESP to perform the activities necessary to the
privatization of CTEEP
RELEVANT NOTICE - October 14, 2005
CESP contracts advisors for the privatization process of CTEEP
39
40. PRIVATIZATION
NOTICE TO THE MARKET – December 2, 2005
São Paulo State Government publishes notice about CTEEP Privatization
Public Meeting to be held on 12/21/2005
NOTICE TO THE MARKET – December 5, 2005
São Paulo State Government announces the opening of CTEEP Data
Room
40
41. PRIVATIZATION
As a result of the procedures referred to in the notices published on the
subject, the valuation services of the Company and the sale model are being
developed, conducted by the consortiums contracted by CESP for such a
purpose
According to the tentative schedule of the process prepared by the advisers,
the sale auction of CTEEP’s share control is foreseen for February 8, 2006
According to the legislation in effect, the definition of minimum price and
other sale conditions shall be opportunely approved by the Directive Council
of the State Privatization Program - PED, that shall also establish a date for the
holding of the sale auction
Every future relevant information on the CTEEP’s privatization process shall
be opportunely given to the market by the Company
41