FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2010
Commission File Number 1-15224
Energy Company of Minas Gerais
(Translation of Registrants Name Into English)
Avenida Barbacena, 1200
30190-131 Belo Horizonte, Minas Gerais, Brazil
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
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): o
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): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
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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.
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COMPANHIA ENERGETICA DE MINAS | ||
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By: |
/s/ Luiz Fernando Rolla | |
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Name: |
Luiz Fernando Rolla |
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Title: |
Chief Financial Officer, Investor Relations Officer and Control of Holdings Officer |
Date: December 21, 2010
1. Summary of Principal Decisions of the 497th Meeting of the Board of Directors Companhia Energética de Minas Gerais CEMIG, December 6, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64 - NIRE 31300040127
SUMMARY OF PRINCIPAL DECISIONS
At its 497th meeting, held on December 6, 2010, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:
1- Alteration of the Bylaws.
2- Granting of an option to buy shares.
3- Partnership for acquisition of a stockholding interest.
4- Orientation of votes by the representative of Cemig in Extraordinary General Meetings of Stockholders of Cemig D and Cemig GT.
5- Calling of an Extraordinary General Meeting of Stockholders, to be held on December 22, 2010 at 11 a.m.
6- Alteration in the composition of the Executive Board, with Mr. Fernando Henrique Schüffner Neto becoming Chief New Business Development Officer, and Mr. José Carlos de Mattos becoming Chief Distribution and Sales Officer, no change being made to any other appointments on the Executive Board.
7- Signing of an amendment to a contract for provision of legal services, to extend its period of validity.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
2. Summary of Principal Decisions of the 125th Meeting of the Board of Directors Cemig Geração e Transmissão S.A., December 6, 2010
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
LISTED COMPANY
CNPJ 06.981.176/0001-58 - NIRE 31300020550
SUMMARY OF PRINCIPAL DECISIONS
At its 125th meeting, held on December 6, 2010, the Board of Directors of Cemig Geração e Transmissão S.A. decided the following:
1- Alteration of the Bylaws.
2- Calling of an Extraordinary General Meeting of Stockholders, to be held on December 22, 2010 at 3 p.m.
3- Alteration in the composition of the Executive Board, with Mr. Fernando Henrique Schüffner Neto becoming Chief New Business Development Officer, and Mr. José Carlos de Mattos becoming Director without specific designation, no change being made to any other appointments on the Executive Board.
4- Signing of an amendment to a contract for provision of legal services, to extend its period of validity.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
3. Summary of Principal Decisions of the 118th Meeting of the Board of Directors Cemig Distribuição S.A., December 6, 2010
CEMIG DISTRIBUIÇÃO S.A.
LISTED COMPANY
CNPJ 06.981.180/0001-16 NIRE 31300020568
SUMMARY OF PRINCIPAL DECISIONS
At its 118th meeting, held on December 6, 2010, the Board of Directors of Cemig Distribuição S.A. decided the following:
1- Alteration of the Bylaws.
2- Calling of an Extraordinary General Meeting of Stockholders, to be held on December 22, 2010 at 5 p.m.
3- Alteration in the composition of the Executive Board, with Mr. Fernando Henrique Schüffner Neto becoming Chief New Business Development Officer, and Mr. José Carlos de Mattos becoming Chief Distribution and Sales Officer, no change being made to any other appointments on the Executive Board.
4- Signing of an amendment to a contract for provision of legal services, to extend its period of validity.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
4. Market Announcement CEMIG included in Brazils new Carbon Efficiency Index, Companhia Energética de Minas Gerais CEMIG, December 3, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NIRE 33300266003
MARKET ANNOUNCEMENT
Cemig included in Brazils new Carbon Efficiency Index
Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, as part of its commitment to best corporate governance practices, hereby informs its stockholders and the market in general as follows:
Cemig has been included in the Brazilian ICO2 Carbon Efficiency Index.
This new stock index, created by the São Paulo stock, Commodities and Futures Exchange (BM&FBovespa), is an indicator to Brazilian and international capital markets of the commitment and alignment that Brazil and its listed companies have in relation to the most up-to-date positions and debate on climate change.
The ICO2 index is made up of the shares of those companies that are in the portfolio of the IBrX-50 index and have subscribed to this initiative, weighted by the greenhouse gas emissions of each of the companies.
Cemig has increased its participation in the IbrX-50 index from 1.196% to 2.275%; and its participation in the portfolio of the ICO2 index, for this year of 2010-2011, is 53.8% of the total of all electricity sector shares that are included in the ICO2.
Cemigs very significant position in the ICO2 index reflects its commitment to taking action to minimize greenhouse gas emissions highlighting its generation of electricity from renewable sources.
Belo Horizonte, December 3, 2010,
Luiz Fernando Rolla
Chief Officer for Finance, Investor Relations and Control of Holdings
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
5. Notice to Stockholders Payment of the 2nd installment of dividends year 2009, Companhia Energética de Minas Gerais CEMIG, December 1, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NOTICE TO STOCKHOLDERS
We hereby advise stockholders that Cemig will make payment to stockholders of R$ 465,350,000, being the second part of the stockholder remuneration for 2009, on December 21, 2010. This is 50% of the amount decided by the Ordinary and Extraordinary General Meetings of Stockholders held jointly on April 29, 2010.
Stockholders whose names were on the Companys Nominal Share Registry on April 29, 2010 have the right to this payment.
Stockholders whose bank details are up-to-date with the Custodian Bank for Cemigs nominal shares (Banco Bradesco S.A.) will have their credits posted automatically on the day of payment, on which occasion they will receive the advice of the corresponding credit. In the event of not receiving the notice of credit, the stockholder should visit a branch of Banco Bradesco S.A. to update his/her registry details. Proceeds from shares deposited in custody at CBLC (Companhia Brasileira de Liquidação e Custódia the Brazilian Settlement and Custody Company) will be credited to that entity and the Depository Brokers will be responsible for passing the amounts through to holders.
Belo Horizonte, December 1, 2010
Luiz Fernando Rolla
Chief Officer for Finance, Investor Relations and Control of Holdings
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
6. Market Announcement CEMIG included in Brazils Sustainability Index for 6th year running, Companhia Energética de Minas Gerais CEMIG, November 25, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NIRE 33300266003
MARKET ANNOUNCEMENT
Cemig in Brazil Sustainability Index for 6th year running
Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in accordance with its commitment to best corporate government practices, hereby publicly informs its stockholders and the market in general as follows:
Cemig has been selected for the sixth year running for inclusion in the Corporate Sustainability Index of the São Paulo Stock Exchange (BM&FBovespa).
Cemig has been included in this index since it was created in 2005.
The new portfolio of the index includes 47 shares of 38 companies, in 18 sectors, with aggregate market capitalization of R$ 1.17 trillion, or 46.1% of the total market capitalization of the companies traded on the BM&FBovespa on November 24, 2010.
The companies included in the new portfolio were selected from an initial group of 53, which responded to a questionnaire containing 495 questions to reflect, in addition to the companies characteristics and economic aspects, their activity in the areas of the environment and climate change, social activities, corporate governance, and the nature of their products.
Belo Horizonte, November 25, 2010
Marco Antonio Rodrigues da Cunha
Acting Chief Officer for Finance, Investor Relations and Control of Holdings
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
7. Summary of Principal Decision of the 126th Meeting of the Board of Directors Cemig Geração e Transmissão S.A., December 16, 2010
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
LISTED COMPANY
CNPJ 06.981.176/0001-58 - NIRE 31300020550
SUMMARY OF PRINCIPAL DECISIONS
At its 126th meeting, held on December 16, 2010, the Board of Directors of Cemig Geração e Transmissão S.A. decided the following:
1. Authorization to take part in Aneel Auction 04/2010, and to present a bid for the Teles Pires Hydroelectric Project.
Consequentially, was authorized to sign the following documents, all of them with CPFL, Andrade Gutierrez and Camargo Correa:
· Private Instrument of Constitution of the Centro Norte Energia Consortium;
· Consortium Members Agreement;
· Agreement for Participation in Auction and Implementation and Commercial Operation of the Teles Pires Hydroelectric Project.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
8. Summary of Principal Decisions of the 498th Meeting of the Board of Directors Companhia Energética de Minas Gerais CEMIG, December 13, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NIRE 31300040127
BOARD OF DIRECTORS
SUMMARY OF PRINCIPAL DECISIONS
At its 498th meeting, held on December 13, 2010, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:
1. Issuance of promissory notes.
2. Contracting services for promissory notes issuance.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
9. Summary of Minutes of the 498th Meeting of the Board of Directors Companhia Energética de Minas Gerais CEMIG, December 13, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64 NIRE 31300040127
BOARD OF DIRECTORS
SUMMARY OF MINUTES OF THE 498TH MEETING
Date, time and place: |
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December 13, 2010 at 11 a.m. at the companys head office, |
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Av. Barbacena 1200, 21th Floor, Belo Horizonte, Minas Gerais, Brazil. |
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Meeting Committee: |
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Chairman: Djalma Bastos de Morais; |
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Secretary: Anamaria Pugedo Frade Barros |
Summary of proceedings:
I The Chairman asked the Board Members present whether any of them had conflict of interest in relation to the matters on the agenda of this meeting, and all stated there was no such conflict of interest.
II The Board approved the minutes of this meeting.
III The Board authorized:
a) The third issue of commercial promissory notes by Cemig, for placement and public distribution in the local capital market, under CVM Instruction 476/2009, with the following features:
1) Issuer: Cemig.
2) Manager: BB Banco de Investimento S.A.
3) Value of the Issue: Up to five hundred million Reais.
4) Guarantees: The issue will have no guarantee or surety.
5) Use of proceeds: Replenishment of the Companys cash position following the investments made in 2010.
6) Number of series: In a single series.
7) Period and maturity: The notes will be issued on the date of their subscription and paying-up, and will have tenor of three hundred and sixty days.
8) Placement procedure and regime: Public distribution, with restricted placement efforts, on an organized over-the-counter market administered and operated by Cetip S.A. Balcão Organizado de Ativos e Derivativos (Cetip) under the regime of firm guarantee of subscription by the Manager.
9) Nominal Unit Value: Ten million Reais on the issue date.
10) Quantity of Promissory Notes: Up to fifty.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
11) Form: The Notes will be issued in physical form and be held on deposit at the Mandated Bank, a financial institution qualified to provide custody services, and will be transferable by signed endorsement simply transferring ownership. For all legal purposes the ownership of the promissory notes will be proven by the respective physical Note. Additionally, for the promissory notes held in custody electronically in the NOTA (Commercial Note Module) system administered and operated by Cetip, ownership of the promissory notes will be proven by the statement of account position, in the name of the holder, issued by Cetip.
12) Remuneration: Remuneratory interest shall accrue on the nominal unit value of the Promissory Notes corresponding to accumulated variation at 105.5% of the average daily rates on interbank deposits referred to as the DI over extra grupo Rate, expressed in the annual percentage form on the basis of two hundred and fifty business days, calculated and published daily by Cetip in the daily bulletin available on its website (http://www.cetip.com.br), capitalized by a spread of up to 105.5% per cent per year. The Remuneration shall be calculated exponentially and cumulatively pro rata tempore by business days elapsed, applying to the nominal unit value of each Promissory Note, from the date of its actual subscription and paying-up (the Issue Date) to the respective maturity date, calculated in accordance with the procedures defined by Cetip in its Formula Sourcebook (Caderno de Fórmulas), available for consultation on the same website.
13) Payment of the remuneration: In a single payment on the date of ordinary or early redemption of the promissory notes.
14) Amortizations of the nominal value: In a single payment on the date of ordinary or early redemption of the promissory notes.
15) Renegotiation: None.
16) Optional early redemption: The Company may effect early redemption of the promissory notes, in accordance with the applicable legislation, giving investors five days prior notice. In the event of partial early redemption, this shall be put into effect by a lottery mechanism, in accordance with Paragraph 4 of Article 7 of CVM Instruction 134/1990, as amended. At the time of subscription and paying-up or acquisition of the promissory note, the owner shall grant express irrevocable consent in advance to early unilateral redemption of the promissory note by the Company, in the terms of CVM Instruction 134/1990.
17) Subscription price: The promissory notes shall be subscribed at their respective nominal unit vale.
18) Procedure for subscription and paying-up: Subscription of the promissory notes will take place in accordance with the procedures adopted by Cetip through the NOTA system. The promissory notes will be paid up at sight simultaneously with subscription, in Brazilian currency, in accordance with the rules for settlement applicable to Cetip.
19) Place of payment: Payments relating to the Promissory Notes shall be made in accordance with the procedures adopted by Cetip, for the Promissory Notes registered in the NOTA system, or, for holders of Promissory Notes that are not linked to that system, at the Issuers head office.
20) Extension of periods: If the date of maturity of an obligation coincides with a day that is not a business or banking business day at the location of the head office of the Company, the date of payment shall be deemed automatically postponed to the next business day, without any addition to the amount to be paid, except in cases where the payment is to be made through Cetip, in which case the extension will take place only when the date of the payment coincides with a Saturday, Sunday or national public holiday.
21) Early maturity: Any holder of the promissory notes may declare all the obligations arising from the promissory notes which it holds to be due and payable, and demand immediate payment by the Company of the nominal unit value of the promissory notes, augmented by the remuneration and the charges, pro rata tempore, from the issue date, by letter delivered with advice of receipt or letter posted using advice of receipt service, addressed to the head office of the Company, in any of the following events:
i) Declaration of bankruptcy, dissolution and/or liquidation of the company or application for Judicial Recovery or out-of-court reorganization or application for bankruptcy made by the Company, or any analogous event that characterizes a state of insolvency of the Company, including an agreement with creditors, in accordance with the applicable legislation.
ii) Legitimate and reiterated protest proceedings on securities against the Company, the unpaid value of which is more than fifty million Reais, unless the protest proceedings have been lodged in error or due to bad faith of third parties, provided this is validly proven by the Company, or if cancelled or if validly contested in court, in any event, within a maximum period of 30 (thirty) calendar days from the date of the obligation becoming due.
(iii) Early maturity of any pecuniary obligation of the Company arising from default on an obligation to pay any individual or aggregate amount greater than fifty million Reais or its equivalent in other currencies.
(iv) Change, transfer or assignment, direct or indirect, of the stockholding control of the Company, unless by order of a Court, without the prior consent of holders of promissory notes representing at least seventy five percent of the promissory notes in circulation.
(v) Absorption of the Company by another company, or split or merger of the Company, unless this takes place by order of a court.
(vi) Privatization of the Company.
(vii) Any termination, for any reason, of any of the concession contracts held by the Company, that represents an adverse material impact on the Companys payment capacity.
(viii) Default unjustified by the Company on, or absence of legal and/or court measures required for non-payment of any debt or any obligation to pay, under any agreement to which it/they are a party as borrower or Guarantor, the value of which, individually or in aggregate, is greater than fifty million Reais or its equivalent in other currencies. Occurrence of any of the events specified in sub-items (i) and (iii) above shall result in immediate early
maturity of the promissory notes, independently of any consultation with their holders. In any of the other events indicated above, a General Meeting of holders of the promissory notes must be held, within 48 (forty-eight) hours from the date on which any of the holders of the promissory notes becomes aware of the event, to decide on non-declaration of early maturity of the promissory notes, which shall be decided by holders of the promissory notes representing at least 2/3 (two-thirds) of the promissory notes of the issue in circulation.
22) Monetary updating: There will be no monetary updating of the nominal value of the promissory notes.
b) Signature of the documents that are indispensable to the issue referred to above, such as:
the Mandate Document;
the Contract for Management, Placement and Public Distribution, under the regime of Firm Subscription Guarantee, of Commercial Promissory Notes of the 3rd Issue by Companhia Energética de Minas Gerais Cemig;
the physical Promissory Notes;
the Contract of the Mandated Bank;
and such other documents as are duly approved by the legal department and do not cause cost for the transaction.
c) Opening of Administrative Proceedings for Exemption from Tender, and contracting of BB Banco de Investimento S.A., as manager of the 3rd issue of commercial promissory notes by Cemig.
d) Contracting of Banco Bradesco S.A., as an integral part of the proposal for the 3rd issue of commercial promissory notes by Cemig, for the period of validity of the promissory notes, for provision of the service of mandates bank.
e) Payment of all the costs related to publications of market notices, announcements of start and closing of the distribution, the charge made by the Anbid, the charge for registry of the issue with the CVM, the registry charges for trading of the issue, among others indispensible to realization of the issues.
The following were present:
Board members: |
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Djalma Bastos de Morais, Antonio Adriano Silva, Arcângelo Eustáquio Torres Queiroz, Eduardo Borges de Andrade, Francelino Pereira dos Santos, Guy Maria Villela Paschoal, João Camilo Penna, Maria Estela Kubitschek Lopes, Paulo Roberto Reckziegel Guedes, |
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Saulo Alves Pereira Junior, Adriano Magalhães Chaves, Paulo Márcio de Oliveira Monteiro, Paulo Sérgio Machado Ribeiro, Renato Torres de Faria, Cezar Manoel de Medeiros, Fernando Henrique Schüffner Neto, Marco Antonio Rodrigues da Cunha. |
Secretary: |
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Anamaria Pugedo Frade Barros |
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Anamaria Pugedo Frade Barros
10. Notice to Shareholders Payment of extraordinary dividends Companhia Energética de Minas Gerais CEMIG, December 16, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NIRE 31300040127
NOTICE TO SHAREHOLDERS
We hereby advise our shareholders that the Meeting of the Board of Directors held on December 16, 2010 decided to distribute extraordinary dividends in the amount of R$ 900,000,000.00 (nine hundred million Reais), corresponding to R$ 1.319408855 per share, to be paid on December 29, 2010.
This benefit will be payable to shareholders whose names are in the Nominal Share Registry on December 16, 2010, for the purposes of Clause 205 of Law 6404/76.
The shares will trade ex-dividend on December 17, 2010.
We remind shareholders of the importance of updating their registration information. This can be done by visiting any branch of Banco Bradesco S.A. (the institution which administers Cemigs system of registered nominal shares), taking their personal documents with them.
Shareholders whose bank details are up-to-date with the Custodian Bank for Cemigs nominal shares (Banco Bradesco S.A.) will have their credits posted automatically on the day of payment, on which occasion they will receive the advice of the corresponding credit.
Proceeds from shares deposited in custody at CBLC (Companhia Brasileira de Liquidação e Custódia the Brazilian Settlement and Custody Company) will be credited to that entity and the Depository Brokers will be responsible for passing the amounts through to holders.
Belo Horizonte, December 16, 2010.
Luiz Fernando Rolla
Chief Officer for Finance, Investor Relations and Control of Holdings
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
11. Summary of Principal Decisions of the 499th Meeting of the Board of Directors Companhia Energética de Minas Gerais CEMIG, December 16, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NIRE 31300040127
MEETING OF THE BOARD OF DIRECTORS
SUMMARY OF PRINCIPAL DECISIONS
The Board of Directors of CEMIG (Companhia Energética de Minas Gerais), at its 499th meeting, held on December 16, 2010, decided the following:
1. Declaration of an extraordinary dividend, of R$ 900 million, equivalent to R$ 1.319408855 per share, using the profit reserve established under the Bylaws for this purpose. Payment of this dividend will take place on December 29, 2010. Stockholders entitled to this dividend will be those whose names are on the Companys Nominal Share Register on December 16, 2010.
2. Authorization for Cemig GT to take part in Aneel Auction 04/2010, and to present a bid for the Teles Pires Hydroelectric Project.
Consequentially, Cemig GT was authorized to sign the following documents, all of them with CPFL, Andrade Gutierrez and Camargo Correa:
· Private Instrument of Constitution of the Centro Norte Energia Consortium;
· Consortium Members Agreement;
· Agreement for Participation in Auction and Implementation and Commercial Operation of the Teles Pires Hydroelectric Project.
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
12. Market Announcement Declaration of extraordinary dividend Companhia Energética de Minas Gerais CEMIG, December 16, 2010
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
NIRE 31300040127
MARKET ANNOUNCEMENT
DECLARATION OF EXTRAORDINARY DIVIDEND
CEMIG (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the public as follows:
At a meeting held today, December 16, 2010, the Board of Directors decided to declare an extraordinary dividend of R$ 900 million, equivalent to R$ 1.319408855 per share, using the Profit Reserve established under the Bylaws for this purpose.
This dividend will be paid on December 29, 2010. Stockholders entitled to this dividend will be those whose names are on the Companys Nominal Share Register on December 16, 2010.
Belo Horizonte, December 16, 2010,
Luiz Fernando Rolla
Chief Officer for Finance, Investor Relations and Financial Control of Holdings
Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
13. Restated Quarterly Results for the Third Quarter Ended September 30, 2010 Cemig Geração e Transmissão S.A., December 14, 2010
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AT SEPTEMBER 30 AND JUNE 30, 2010
ASSETS
R$ 000
CEMIG Geração e Transmissão S.A
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Consolidated |
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Holding company |
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30/09/2010 |
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30/06/2010 |
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30/09/2010 |
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30/06/2010 |
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CURRENT |
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Cash and cash equivalents (Note 4) |
|
2,417,623 |
|
2,051,502 |
|
2,110,555 |
|
1,755,513 |
|
Consumers and traders (Note 5) |
|
366,978 |
|
330,518 |
|
361,008 |
|
326,583 |
|
Concession holders transport of energy |
|
112,660 |
|
118,024 |
|
62,016 |
|
70,243 |
|
Taxes subject to offsetting (Note 8) |
|
521,098 |
|
424,165 |
|
506,164 |
|
409,853 |
|
Traders Transactions in Free Energy (Note 6) |
|
47,678 |
|
46,141 |
|
47,678 |
|
46,141 |
|
Tax credits (Note 9) |
|
30,930 |
|
20,519 |
|
29,558 |
|
19,508 |
|
Inventories |
|
7,347 |
|
6,752 |
|
6,102 |
|
5,035 |
|
Regulatory assets Tariff Review (Note 7) |
|
68,468 |
|
91,954 |
|
68,468 |
|
91,954 |
|
Other credits |
|
108,994 |
|
117,020 |
|
92,649 |
|
93,767 |
|
TOTAL, CURRENT |
|
3,681,776 |
|
3,206,595 |
|
3,284,198 |
|
2,818,597 |
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT |
|
|
|
|
|
|
|
|
|
Long term assets |
|
|
|
|
|
|
|
|
|
Tax credits (Note 9) |
|
55,547 |
|
60,133 |
|
55,547 |
|
60,133 |
|
Taxes subject to offsetting (Note 8) |
|
11,243 |
|
13,372 |
|
7,869 |
|
10,518 |
|
Deposits linked to legal actions (Note 10) |
|
115,455 |
|
106,446 |
|
113,438 |
|
104,431 |
|
Receivable from related parties |
|
4,353 |
|
4,067 |
|
2,905 |
|
2,905 |
|
Regulatory assets Tariff Review (Note 7) |
|
4,043 |
|
1,055 |
|
4,043 |
|
1,055 |
|
Other credits |
|
52,241 |
|
23,124 |
|
6,950 |
|
7,010 |
|
|
|
242,882 |
|
208,197 |
|
190,752 |
|
186,052 |
|
|
|
|
|
|
|
|
|
|
|
Investments (Note 11) |
|
1,573 |
|
1,737 |
|
2,590,716 |
|
2,488,016 |
|
Fixed assets (Note 12) |
|
8,084,072 |
|
7,956,333 |
|
5,343,344 |
|
5,373,177 |
|
Intangible (Note 13) |
|
1,332,835 |
|
1,345,688 |
|
25,777 |
|
25,953 |
|
TOTAL, NON-CURRENT |
|
9,661,362 |
|
9,511,955 |
|
8,150,589 |
|
8,073,198 |
|
TOTAL ASSETS |
|
13,343,138 |
|
12,718,550 |
|
11,434,787 |
|
10,891,795 |
|
The Explanatory Notes are an integral part of the Quarterly Information.
This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.
BALANCE SHEETS
AT SEPTEMBER 30 AND JUNE 30, 2010
LIABILITIES
R$ 000
|
|
Consolidated |
|
Holding company |
| ||||
|
|
30/09/2010 |
|
30/06/2010 |
|
30/09/2010 |
|
30/06/2010 |
|
CURRENT |
|
|
|
|
|
|
|
|
|
Loans and financings (Note 16) |
|
693,000 |
|
943,528 |
|
585,353 |
|
508,221 |
|
Debentures (Note 16) |
|
203,126 |
|
119,809 |
|
196,470 |
|
121,927 |
|
Suppliers (Note 14) |
|
133,485 |
|
140,420 |
|
109,538 |
|
88,195 |
|
Taxes, charges and contributions (Note 15) |
|
433,600 |
|
317,533 |
|
426,060 |
|
308,435 |
|
Interest on Equity and dividends payable |
|
186,234 |
|
110,347 |
|
186,234 |
|
110,347 |
|
Regulatory liabilities Tariff Review (Note 7) |
|
58,576 |
|
75,568 |
|
58,576 |
|
75,568 |
|
Salaries and mandatory charges on payroll |
|
56,221 |
|
63,701 |
|
52,188 |
|
60,064 |
|
Regulatory charges (Note 17) |
|
49,410 |
|
47,794 |
|
42,248 |
|
40,793 |
|
Profit shares |
|
17,071 |
|
11,988 |
|
17,071 |
|
11,988 |
|
Debt to related parties |
|
188 |
|
528 |
|
188 |
|
16,907 |
|
Post-employment obligations (Note 18) |
|
17,526 |
|
18,340 |
|
17,526 |
|
18,340 |
|
Other obligations |
|
39,002 |
|
37,385 |
|
35,827 |
|
36,399 |
|
TOTAL, CURRENT |
|
1,887,439 |
|
1,886,941 |
|
1,727,279 |
|
1,397,184 |
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT |
|
|
|
|
|
|
|
|
|
Loans and financings (Note 16) |
|
3,135,844 |
|
3,154,322 |
|
1,948,104 |
|
2,005,480 |
|
Debentures (Note 16) |
|
3,527,220 |
|
3,185,870 |
|
3,013,074 |
|
3,013,049 |
|
Contingency provisions (Note 19) |
|
7,122 |
|
6,125 |
|
6,089 |
|
5,253 |
|
Post-employment obligations (Note 18) |
|
233,102 |
|
236,083 |
|
233,102 |
|
236,083 |
|
Taxes, charges and contributions (Note 15) |
|
156,295 |
|
146,538 |
|
156,295 |
|
146,532 |
|
Regulatory charges (Note 17) |
|
71,703 |
|
65,410 |
|
71,703 |
|
65,410 |
|
Other obligations |
|
87,531 |
|
55,329 |
|
42,259 |
|
40,872 |
|
TOTAL, NON-CURRENT |
|
7,218,817 |
|
6,849,677 |
|
5,470,626 |
|
5,512,679 |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS EQUITY (Note 20) |
|
|
|
|
|
|
|
|
|
Registered capital |
|
3,296,785 |
|
3,296,785 |
|
3,296,785 |
|
3,296,785 |
|
Profit reserves |
|
266,112 |
|
266,112 |
|
266,112 |
|
266,112 |
|
Valuation adjustment to Stockholders equity |
|
1,993 |
|
451 |
|
1,993 |
|
451 |
|
Retained earnings |
|
671,992 |
|
418,584 |
|
671,992 |
|
418,584 |
|
TOTAL STOCKHOLDERS EQUITY |
|
4,236,882 |
|
3,981,932 |
|
4,236,882 |
|
3,981,932 |
|
TOTAL LIABILITIES |
|
13,343,138 |
|
12,718,550 |
|
11,434,787 |
|
10,891,795 |
|
The Explanatory Notes are an integral part of the Quarterly Information.
FOR THE NINE-MONTH PERIODS ENDING SEPTEMBER 30, 2010 AND 2009
(R$ 000, except net profit per thousand shares)
|
|
Consolidated |
|
Holding company |
| ||||
|
|
|
|
30/09/2009 |
|
|
|
30/09/2009 |
|
|
|
30/09/2010 |
|
Reclassified |
|
30/09/2010 |
|
Reclassified |
|
OPERATIONAL REVENUE |
|
|
|
|
|
|
|
|
|
Revenue from supply of electricity (Note 21) |
|
2,686,817 |
|
2,631,903 |
|
2,665,967 |
|
2,621,283 |
|
Revenue from use of the grid (Note 22) |
|
707,576 |
|
636,403 |
|
437,890 |
|
636,403 |
|
Other operational revenues |
|
20,501 |
|
16,951 |
|
20,381 |
|
16,951 |
|
|
|
3,414,894 |
|
3,285,257 |
|
3,124,238 |
|
3,274,637 |
|
DEDUCTIONS FROM OPERATIONAL REVENUE (Note 23) |
|
(729,804 |
) |
(672,951 |
) |
(708,107 |
) |
(671,116 |
) |
NET OPERATIONAL REVENUE |
|
2,685,090 |
|
2,612,306 |
|
2,416,131 |
|
2,603,521 |
|
COST OF ELECTRICITY SERVICE |
|
|
|
|
|
|
|
|
|
COST OF ELECTRICITY (Note 24) |
|
|
|
|
|
|
|
|
|
Charges for the use of the basic transmission grid |
|
(192,809 |
) |
(208,356 |
) |
(199,287 |
) |
(208,356 |
) |
Electricity bought for resale |
|
(242,334 |
) |
(116,716 |
) |
(242,270 |
) |
(116,227 |
) |
|
|
(435,143 |
) |
(325,072 |
) |
(441,557 |
) |
(324,583 |
) |
COST OF OPERATION (Note 24) |
|
|
|
|
|
|
|
|
|
Personnel and managers |
|
(167,778 |
) |
(160,975 |
) |
(154,481 |
) |
(160,942 |
) |
Post-employment obligations |
|
(17,797 |
) |
(15,092 |
) |
(17,797 |
) |
(15,092 |
) |
Materials |
|
(12,401 |
) |
(9,620 |
) |
(11,348 |
) |
(9,582 |
) |
Raw materials and inputs for generation |
|
|
|
(4,070 |
) |
|
|
(4,070 |
) |
Outsourced services |
|
(99,459 |
) |
(65,325 |
) |
(75,466 |
) |
(65,003 |
) |
Depreciation and amortization |
|
(221,840 |
) |
(169,369 |
) |
(167,793 |
) |
(168,612 |
) |
Operational (provisions /) reversals |
|
5,777 |
|
(860 |
) |
5,542 |
|
(860 |
) |
Royalties for use of water resources |
|
(100,774 |
) |
(105,163 |
) |
(100,713 |
) |
(105,163 |
) |
Other costs of operation |
|
(48,606 |
) |
(23,786 |
) |
(43,292 |
) |
(23,506 |
) |
|
|
(662,878 |
) |
(554,260 |
) |
(565,348 |
) |
(552,830 |
) |
|
|
|
|
|
|
|
|
| |
TOTAL COST |
|
(1,098,021 |
) |
(879,332 |
) |
(1,006,905 |
) |
(877,413 |
) |
|
|
|
|
|
|
|
|
| |
GROSS PROFIT |
|
1,587,069 |
|
1,732,974 |
|
1,409,226 |
|
1,726,108 |
|
|
|
|
|
|
|
|
|
| |
OPERATIONAL EXPENSES (Note 24) |
|
|
|
|
|
|
|
|
|
Selling expenses |
|
453 |
|
(289 |
) |
453 |
|
(52 |
) |
General and administrative expenses |
|
(74,799 |
) |
(114,286 |
) |
(74,799 |
) |
(112,855 |
) |
Other operational expenses |
|
(6,946 |
) |
(2,811 |
) |
(5,385 |
) |
(2,707 |
) |
|
|
(81,292 |
) |
(117,386 |
) |
(79,731 |
) |
(115,614 |
) |
PROFIT FROM THE SERVICE (OPERATIONAL PROFIT BEFORE EQUITY GAINS/LOSSES AND FINANCIAL REVENUES/EXPENSES) |
|
1,505,777 |
|
1,615,588 |
|
1,329,495 |
|
1,610,494 |
|
Equity gain (loss) on subsidiaries |
|
|
|
|
|
79,370 |
|
(263 |
) |
Net financial expenses (Note 25) |
|
(318,090 |
) |
(147,934 |
) |
(252,181 |
) |
(142,979 |
) |
PROFIT BEFORE TAXATION AND PROFIT SHARES |
|
1,187,687 |
|
1,467,654 |
|
1,156,684 |
|
1,467,252 |
|
|
|
|
|
|
|
|
|
| |
Income tax and Social Contribution tax (Note 9 b) |
|
(350,611 |
) |
(393,773 |
) |
(319,673 |
) |
(393,371 |
) |
Deferred income tax and Social Contribution tax (Note 9 b) |
|
21,468 |
|
(48,085 |
) |
21,533 |
|
(48,085 |
) |
Employees and managers profit shares (Note 24) |
|
(27,396 |
) |
(21,947 |
) |
(27,396 |
) |
(21,947 |
) |
NET PROFIT FOR THE PERIOD |
|
831,148 |
|
1,003,849 |
|
831,148 |
|
1,003,849 |
|
NET PROFIT PER THOUSAND SHARES, R$ |
|
|
|
|
|
286.92 |
|
346.54 |
|
The Explanatory Notes are an integral part of the Quarterly Information.
STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2010
R$ 000
|
|
Registered |
|
Profit |
|
Valuation adjustment |
|
Retained |
|
|
|
|
|
capital |
|
reserves |
|
to Equity |
|
earnings |
|
Total |
|
BALANCES ON JUNE 30, 2010 |
|
3,296,785 |
|
266,112 |
|
451 |
|
418,584 |
|
3,981,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital increase |
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
|
|
|
|
|
|
|
342,686 |
|
342,686 |
|
Allocation of profit |
|
|
|
|
|
|
|
|
|
|
|
Interest on Equity |
|
|
|
|
|
|
|
(89,278 |
) |
(89,278 |
) |
Recording of Revaluation reserve |
|
|
|
|
|
1,542 |
|
|
|
1,542 |
|
BALANCES ON SEPTEMBER 30, 2010 |
|
3,296,785 |
|
266,112 |
|
1,993 |
|
671,992 |
|
4,236,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCES AT DECEMBER 31, 2009 |
|
2,896,785 |
|
666,112 |
|
|
|
|
|
3,562,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital increase |
|
400,000 |
|
(400,000 |
) |
|
|
|
|
|
|
Net profit for the period |
|
|
|
|
|
|
|
831,148 |
|
831,148 |
|
Interest on Equity |
|
|
|
|
|
|
|
(159,156 |
) |
(159,156 |
) |
Recording of Revaluation reserve |
|
|
|
|
|
1,993 |
|
|
|
1,993 |
|
BALANCES ON SEPTEMBER 30, 2010 |
|
3,296,785 |
|
266,112 |
|
1,993 |
|
671,992 |
|
4,236,882 |
|
The Explanatory Notes are an integral part of the Quarterly Information.
FOR THE NINE-MONTH PERIODS ENDING SEPTEMBER 30, 2010 AND 2009
R$ 000
|
|
CONSOLIDATED |
|
HOLDING COMPANY |
| ||||
|
|
30/09/2010 |
|
30/09/2009 |
|
30/09/2010 |
|
30/09/2009 |
|
CASH FLOW FROM OPERATIONS |
|
|
|
|
|
|
|
|
|
Net profit for the period |
|
831,148 |
|
1,003,849 |
|
831,148 |
|
1,003,849 |
|
Expenses (revenues) not affecting Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
222,150 |
|
169,904 |
|
168,104 |
|
168,838 |
|
Net write-offs of fixed assets |
|
(328 |
) |
2,541 |
|
(335 |
) |
2,541 |
|
Amortization of goodwill on acquisition |
|
17,389 |
|
|
|
(11,186 |
) |
|
|
Equity gains (losses) in subsidiaries |
|
|
|
|
|
(79,370 |
) |
263 |
|
Interest and Monetary updating Non-current |
|
40,433 |
|
10,877 |
|
40,766 |
|
4,086 |
|
Regulatory asset Transmission tariff review |
|
|
|
(136,657 |
) |
|
|
(136,657 |
) |
Deferred federal taxes |
|
(21,468 |
) |
48,085 |
|
(21,533 |
) |
48,085 |
|
Provisions (reversals) for operational losses |
|
(6,230 |
) |
911 |
|
(5,994 |
) |
911 |
|
Provisions for losses on Free Energy transactions |
|
|
|
(7,915 |
) |
|
|
(7,915 |
) |
Provision for losses (gains) on financial instruments |
|
(168 |
) |
37,486 |
|
(168 |
) |
37,486 |
|
Post-employment obligations |
|
23,183 |
|
21,999 |
|
23,183 |
|
21,999 |
|
Others |
|
2 |
|
(21 |
) |
|
|
(412 |
) |
|
|
1,106,111 |
|
1,151,059 |
|
944,615 |
|
1,143,074 |
|
|
|
|
|
|
|
|
|
|
|
(Increase) /reduction of assets |
|
|
|
|
|
|
|
|
|
Consumers and traders |
|
72,938 |
|
(33,037 |
) |
49,782 |
|
(31,530 |
) |
Traders Transactions in Free Energy |
|
(1,651 |
) |
3,317 |
|
(1,546 |
) |
3,317 |
|
Taxes offsetable |
|
(269,136 |
) |
(295,983 |
) |
(290,691 |
) |
(295,089 |
) |
Transport of electricity |
|
(23,553 |
) |
(18,836 |
) |
5,711 |
|
(18,836 |
) |
Tax credits |
|
20,903 |
|
(40,318 |
) |
21,721 |
|
(40,318 |
) |
Payments into Court |
|
(25,344 |
) |
(22,842 |
) |
(25,569 |
) |
(22,842 |
) |
Others |
|
31,881 |
|
(11,460 |
) |
33,487 |
|
(5,688 |
) |
|
|
(193,962 |
) |
(419,159 |
) |
(207,105 |
) |
(410,986 |
) |
|
|
|
|
|
|
|
|
|
|
Increase (reduction) of liabilities |
|
|
|
|
|
|
|
|
|
Suppliers |
|
9,971 |
|
(49,004 |
) |
25,555 |
|
(42,055 |
) |
Taxes and Social Contribution tax |
|
301,881 |
|
480,107 |
|
326,960 |
|
479,222 |
|
Salaries and mandatory charges on payroll |
|
(21,122 |
) |
13,739 |
|
(21,917 |
) |
13,301 |
|
Regulatory charges |
|
6,966 |
|
(5,343 |
) |
4,561 |
|
(5,343 |
) |
Loans and financings |
|
231,095 |
|
85,313 |
|
182,834 |
|
70,878 |
|
Post-employment obligations |
|
(33,408 |
) |
(30,374 |
) |
(33,408 |
) |
(30,374 |
) |
Losses on financial instruments |
|
(2,981 |
) |
1,884 |
|
168 |
|
1,884 |
|
Others |
|
13,570 |
|
(12,887 |
) |
2,096 |
|
8,203 |
|
|
|
505,972 |
|
483,435 |
|
486,849 |
|
495,716 |
|
|
|
|
|
|
|
|
|
|
|
NET CASH FROM OPERATIONAL ACTIVITIES |
|
1,418,121 |
|
1,215,335 |
|
1,224,359 |
|
1,227,804 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW OF FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Financings obtained |
|
3,367,826 |
|
449,105 |
|
2,755,316 |
|
127,605 |
|
Payments of loans and financings |
|
(3,268,636 |
) |
(21,500 |
) |
(2,849,945 |
) |
(20,074 |
) |
Interest on Equity, and dividends |
|
(889,977 |
) |
(500,775 |
) |
(889,977 |
) |
(500,775 |
) |
NET CASH USED IN FINANCING ACTIVITIES |
|
(790,787 |
) |
73,170 |
|
(984,606 |
) |
(393,244 |
) |
|
|
CONSOLIDATED |
|
HOLDING COMPANY |
| ||||
|
|
30/09/2010 |
|
30/09/2009 |
|
30/09/2010 |
|
30/09/2009 |
|
CASH FLOWS IN INVESTMENT ACTIVITIES |
|
|
|
|
|
|
|
|
|
Investments |
|
(355,163 |
) |
(378,412 |
) |
(73,490 |
) |
(91,397 |
) |
Fixed assets |
|
(458,505 |
) |
(4,392 |
) |
(521 |
) |
(2,133 |
) |
Intangible |
|
(439,758 |
) |
(206,555 |
) |
(889,663 |
) |
(294,038 |
) |
NET CASH USED IN INVESTMENT ACTIVITIES |
|
(1,253,426 |
) |
(589,359 |
) |
(963,674 |
) |
(387,568 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH POSITION |
|
(626,092 |
) |
552,806 |
|
(723,921 |
) |
446,992 |
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF CHANGES IN CASH POSITION |
|
|
|
|
|
|
|
|
|
At start of period |
|
3,043,715 |
|
862,098 |
|
2,834,476 |
|
852,213 |
|
At end of period |
|
2,417,623 |
|
1,414,904 |
|
2,110,555 |
|
1,299,205 |
|
|
|
(626,092 |
) |
552,806 |
|
(723,921 |
) |
446,992 |
|
The Explanatory Notes are an integral part of the Quarterly Information.
EXPLANATORY NOTES TO THE QUARTERLY INFORMATION (ITR)
FOR SEPTEMBER 30, 2010
(In R$ 000, except where otherwise stated)
1. OPERATIONAL CONTEXT
Cemig Geração e Transmissão S.A. (Cemig GT, or the Company) is a Brazilian corporation registered with the Brazilian Securities Commission (CVM) for listing, and a wholly-owned subsidiary of Companhia Energética de Minas Gerais Cemig (Cemig). It was created on September 8, 2004, and started operations on January 1, 2005, as a result of the process of segregation (unbundling) of Cemigs activities. Its shares are not traded on any exchange.
Cemig GTs objects are: to study, plan, project, build and commercially operate systems of generation, transmission and sale of electricity and related services for which concessions are granted, under any form of law, to it or to companies of which it maintains stockholding control; to operate in the various fields of energy, from whatever source, with a view to economic and commercial operation; iii) to provide consultancy services within its field of operation to companies in and outside Brazil; and iv) to carry out activities directly or indirectly related to its objects.
Cemig GT has 48 power plants, of which 43 are hydroelectric, 4 are wind power plants and one is a thermal plant, and their transmission lines, most of which are part of the Brazilian national generation and transmission grid system.
The company has stockholdings in the following subsidiaries:
· Hidrelétrica Cachoeirão S.A. (jointly controlled, 49.00% stake): Production and sale of electricity as an independent power producer, through the Cachoeirão hydroelectric power plant, at Pocrane, in the State of Minas Gerais, with installed capacity of 27MW (information not reviewed by external auditors). The plant began operating in 2009.
· Central Eólica Praias de Parajuru S.A. (jointly controlled, 49.00% stake): The Praias de Parajuru Wind Farm, in the municipality of Beberibe in the state of Ceará, Northern Brazil, with installed capacity of 28.8MW (information not reviewed by external auditors). The plant began operating in August 2009.
· Baguari Energia S.A. (jointly controlled, 69.39% stake): Construction, operation, maintenance and commercial operation of the Baguari Hydroelectric Plant, through its participation in the UHE Baguari Consortium (Baguari Energia 49.00%, Neoenergia 51.00%), with installed capacity of 140MW (information not reviewed by external auditors), on the Doce River in Governador Valadares, Minas Gerais State. The plant began operation of its units from September 2009 to May 2010.
· Transmissora Aliança de Energia Elétrica S.A. (Taesa), previously named Terna Participações S. A., (jointly controlled, 32.27% stake): Construction and operation of electricity transmission facilities in 11 states of Brazil through the following companies in which it has a controlling or other interest: TSN Transmissora Sudeste Nordeste S.A.; Novatrans Energia S.A.; ETEO Empresa de Transmissão de Energia do Oeste S.A.; ETAU Empresa de Transmissão do Alto Uruguai S.A.; Brasnorte Transmissora de Energia S.A. and Terna Serviços Ltda., which, jointly, control 3,712km of high voltage transmission lines, from 230kV to 500kV (information not reviewed by external auditors), components of the Brazilian National Grid.
· Transmissora Alvorada de Energia S.A. (Alvorada) (jointly controlled, 74.50% stake): Holding of 62.80% in Transmissora Alterosa de Energia S.A.
· Transmissora Alterosa de Energia S.A. (Alterosa) (jointly controlled, 36.23% stake): Holding of 29.42% in Transmissora Aliança de Energia S.A.
· Central Eólica Praias do Morgado S.A. (jointly controlled, 49% stake): The Praias do Morgado Wind Farm, in the municipality of Aracajú in the state of Ceará, Northern Brazil, with installed capacity of 28.8MW (information not reviewed by external auditors). The plant began operating in April 2010.
· Central Eólica Volta do Rio S.A. (jointly controlled, 49% stake): The Volta do Rio Wind Farm, also in the municipality of Aracajú in the state of Ceará, Northern Brazil, with installed capacity of 42MW (information not reviewed by external auditors). The plant began operating in September 2010.
Subsidiaries at pre-operational stage:
· Guanhães Energia S.A. (jointly controlled, 49.00% stake): Production and sale of electricity through building and commercial operation of the following Small Hydro Plants: Dores de Guanhães, Senhora do Porto and Jacaré, in the municipality of Dores de Guanhães; and Fortuna II, in the municipality of Virginópolis. All are in the State of Minas Gerais. The plants are scheduled to start operating in 2011, and will have total installed capacity of 44MW (information not reviewed by external auditors).
· Cemig Baguari Energia S.A. (subsidiary, 100.00% stake): Production and sale of electricity as an independent producer, in future projects.
· Madeira Energia S.A. (jointly controlled, 10.00% stake): Implementation, construction, operation and commercial operation, through its subsidiary Santo Antônio Energia S. A., of the Santo Antônio Hydroelectric Plant located in the basin of the Madeira River, in the State of Rondônia, with generation capacity of 3,150 MW (information not reviewed by external auditors) and commercial startup scheduled for 2012.
· Hidrelétrica Pipoca S.A. (jointly controlled, 49.00% stake): Independent production of electricity, through construction and commercial operation of the Pipoca Small Hydro Plant, with installed capacity of 20MW (information not reviewed by external auditors), on the Manhuaçu River, in the municipalities of Caratinga and Ipanema, in the State of Minas Gerais. The plant began commercial operation in October 2010.
· Lightger S.A. (jointly controlled, 49% stake): Independent power production through building and commercial operation of the hydroelectric potential referred to as the Paracambi Small Hydro Plant, with installed capacity of 25MW, on the Ribeirão das Lages river in the county of Paracambi, in the State of Rio de Janeiro. The first rotor is scheduled to start operation in October 2011.
· Empresa Brasileira de Transmissão de Energia (EBTE) (jointly controlled, 49% stake): Holder of public service electricity transmission concession for transmission lines in the State of Mato Grosso. Operational startup is scheduled for December 2010.
2. PRESENTATION OF THE QUARTERLY INFORMATION
2.1. PRESENTATION OF THE QUARTERLY INFORMATION
The individual and consolidated Quarterly Information (ITR) has been prepared according to Brazilian accounting practices, comprising: the Brazilian Corporate Law; the statements, orientations and interpretations issued by the Brazilian Accounting Statements Committee (CPC); rules of the Brazilian Securities Commission (CVM Comissão de Valores Mobiliários); and rules of the specific legislation applicable to holders of Brazilian electricity concessions, issued by the Brazilian National Electricity Agency (Aneel).
This Quarterly Information has been prepared according to principles, practices and criteria consistent with those adopted in the preparation of the annual accounting statements at December 31, 2009. Hence this Quarterly Information should be read in conjunction with those annual accounting statements.
The reclassifications made to the balances of September 30, 2009 for the purposes of comparability, in compliance with the change in the Electricity Public Service Accounting Manual (MCSPEE) are as follows:
|
|
|
|
Holding |
|
|
|
|
|
|
|
|
|
Consolidated |
|
company |
|
|
|
Consolidated |
|
Holding company |
|
Original line |
|
Amount, R$ |
|
Amount, R$ |
|
Reclassified to |
|
Amount, R$ |
|
Amount, R$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operational expenses |
|
|
|
|
|
Deductions from revenue |
|
|
|
|
|
Other operational expenses |
|
11,866 |
|
11,866 |
|
Emergency Acquisition Charge |
|
(11,866 |
) |
(11,866 |
) |
2.2. APPLICATION OF THE NEW ACCOUNTING RULES, STARTING IN 2010
In continuation of the process, begun in 2008, of harmonizing Brazilian accounting rules with International Financial Reporting Standards IFRS, issued by the IASB International Accounting Standards Board, during 2009 the CPC issued, and the CVM approved, several accounting statements, with obligatory application for the business years starting on or after January 1, 2010, backdated to 2009 for the purposes of comparability.
However, as allowed by CVM Decision 603, of November 10, 2009, as amended by CVM Decision 626, of March 31, 2010, the Company opted to present its quarterly information in accordance with the accounting rules adopted in Brazil up to December 31, 2009.
The Company is in the process of assessing the possible effects of application of the technical statements so far issued and has concluded, preliminarily, that the main effects will arise from the application of the following rules:
Technical Interpretation ICPC 01 Concession Contracts, which establishes the general principles for recognition and measurement of obligations and the respective rights of concession contracts. Under ICPC 01, the remuneration received or receivable by the concession holder is to be recorded at its fair value, corresponding to rights held in relation to a financial asset and/or an intangible asset. At present it is not possible to estimate the effects arising from the application of this rule, since the concepts introduced are still being studied for the purposes of application, but adjustments are expected, arising from the reclassification of fixed assets as intangible and/or financial assets, recognition of construction revenue, and treatment of obligations linked to the concession.
CPC Statement 17 Construction Contracts, which establishes the accounting treatment of revenues and expenses associated with construction contracts. The applicability of this accounting statement is directly related to the resolution of doubts arising from Technical Interpretation ICPC 01, since the recognition of this revenue is not provided for in the regulatory tariff environment. Thus, the company believes that it is not possible, in the present scenario, to securely quantify the impact of adoption of the said statement.
Statement CPC 30 Revenues, which sets out the accounting treatment of revenues that arise from certain types of transaction and event: sale of goods; provision of services; and use, by third parties, of other assets of the entity that generate profits, royalties and dividends. The applicability of this accounting statement is directly related to the resolution of doubts arising from Technical Interpretation ICPC 01, since the recognition of this revenue is not provided for in the regulatory tariff environment. Thus, the company believes that it is not possible, in the present scenario, to securely quantify the impact of adoption of the said statement.
Statement CPC 24 Subsequent event, and ICPC 08 Accounting of the proposal for payment of dividends: Management has the obligation to propose distribution of the profits at the end of the business year. This distribution can be changed by the stockholders. Hence, according to CPC 24 that part of the proposed dividends that is not declared and is in excess of the obligatory minimum dividend, and the interest on equity, must be maintained within Stockholders equity, and not be recognized as a liability at the end of the period. Dividends that are additional to the minimum are to be posted in liabilities as and when they are approved by the competent bodies of the company.
.
Statement CPC 43: This establishes the criteria for the initial adoption of CPCs 15 to 40, and specifies that the exceptions in relation to the international rules are limited to the maintenance of equity income, in the individual financial statements that have investments valued by the equity method, and maintenance of the deferred asset formed up to December 31, 2008, until its entire amortization. At present there is the practice in Brazil of recording of regulatory assets and liabilities, and when the regulator establishes criteria for allocation of revenue or expense to subsequent periods, a regulatory asset or liability is recognized. At present these regulatory assets and liabilities represent a difference in generally accepted accounting principles between the accounting principles adopted in Brazil, and IFRS. Until this moment there is no definition on the recognition of regulatory assets and liabilities, so, the management is awaiting to assess its possible effects on the financial statements prepared in accordance with accounting practices adopted in Brazil.
The Company is participating in the discussions and debates in the market, especially in the professional organizations of the accounting sector and with the regulators, in relation to the interpretations on the criteria for application of these Statements, among which we highlight Technical Interpretation ICPC 01, and these parties may possibly make a position statement on specific aspects for application in the electricity sector. At this moment, due to the conceptual doubts that have given rise to differing interpretations as to the correct application of these rules in the Brazilian regulatory environment, and until there is a better understanding on the practical application of the Statements, we believe it is not possible yet to assess and quantify the possible effects on the financial statements with a reasonable degree of certainty.
2.3. Transmission revenue Criterion for recognition
On October 14, 2009 the CVM, through a decision of its Council, ordered that the electricity transmission service concession holders controlled by Taesa should, as from the first disclosure of ITRs of 2010, change the accounting treatment to be adopted in accounting of the revenue, with effects backdated to 2009, only for the purposes of comparability, Taesa being exempted from having to restate its accounting statements for the previous business years.
Considering that Cemig GT and the transmission companies of the TBE Group have electricity transmission concession contracts similar to those of Taesa, they too should adopt the same procedures ordered by the CVM.
On May 4, 2010, the CVM, through its Official Letter SEP/GEA 189/10, authorized non-application of this New Practice for the ITRs to be published during the 2010 business year, allowing it to be adopted only as from the business year ending December 31, 2010, jointly with the other Accounting Pronouncements that are in effect in 2010.
It has not been possible to assess the impact on the Stockholders equity of concession holders arising from the linearization of revenue, due to the conceptual doubts that have given rise to differing interpretations as to the correct application of Technical Interpretation ICPC 01 Concession contracts, and its interaction with CPC 17 Construction contracts and CPC 30 Revenues, in the regulatory environment, as described above.
3. PRINCIPLES OF CONSOLIDATION
The Financial Information of the Subsidiary and the Jointly-controlled Subsidiaries mentioned in Explanatory Note 1 has been consolidated, and the Jointly-controlled subsidiaries are consolidated based on the method of Proportional Consolidation, applicable to each component of the ITRs of the Subsidiaries. All the subsidiaries, including those that are jointly controlled, follow accounting practices that are consistent with those of the holding company.
|
|
Direct stake in total capital, % |
| ||
|
|
30/09/2010 |
|
30/06/2010 |
|
Subsidiaries |
|
|
|
|
|
Cemig Baguari Energia S.A. |
|
100.00 |
|
100.00 |
|
|
|
|
|
|
|
Jointly-controlled subsidiaries |
|
|
|
|
|
Hidrelétrica Cachoeirão S.A. |
|
49.00 |
|
49.00 |
|
Guanhães Energia S.A. |
|
49.00 |
|
49.00 |
|
Hidrelétrica Pipoca S.A. |
|
49.00 |
|
49.00 |
|
Madeira Energia S.A. |
|
10.00 |
|
10.00 |
|
Baguari Energia S.A. |
|
69.39 |
|
69.39 |
|
Empresa Brasileira de Transmissão de Energia S.A. |
|
49.00 |
|
49.00 |
|
Central Eólica Praias de Parajuru S.A. |
|
49.00 |
|
49.00 |
|
Central Eólica Volta do Rio S.A. |
|
49.00 |
|
49.00 |
|
Central Eólica Praias de Morgado S.A. |
|
49.00 |
|
49.00 |
|
Transmissora Aliança de Energia Elétrica S.A. |
|
32.27 |
|
32.27 |
|
Transmissora Alterosa de Energia S.A. |
|
36.23 |
|
36.23 |
|
Transmissora Alvorada de Energia S.A. |
|
74.50 |
|
74.50 |
|
Lightger S.A. |
|
49.00 |
|
|
|
In the consolidation, the interests of the holding company in the Stockholders equity of the controlled companies, and the material balances of assets, liabilities, revenues and expenses arising from transactions effected between the companies, have been eliminated.
The references made in this Quarterly Information of the subsidiaries and of the jointly-controlled subsidiaries are made in proportion to the Companys stake.
The dates of the Quarterly Information of the subsidiary companies, used for calculation of equity gains (losses) and consolidation, coincide with those of the holding company.
As ordered by CVM Instruction 408, the consolidated Quarterly Information includes the balances and the transactions of the exclusive investment funds, comprising public and private debt securities and debentures of companies with minimum risk rating A+(bra) (Brazilian long-term rating), ensuring high liquidity of the securities.
The exclusive fund, the Quarterly Information of which is regularly reviewed, is subject to obligations, restricted to payment for services provided for administration of the assets, attributed to operation of the investments, such as custody fees, audit fees and other expenses. There are no significant financial obligations, nor assets of the unit holders to guarantee these obligations.
|
|
Consolidated |
|
Holding company |
| ||||
|
|
30/09/2010 |
|
30/06/2010 |
|
30/09/2010 |
|
30/06/2010 |
|
|
|
|
|
|
|
|
|
|
|
Bank accounts |
|
54,267 |
|
17,937 |
|
7,167 |
|
10,360 |
|
Cash investments |
|
|
|
|
|
|
|
|
|
Bank certificates of deposit |
|
2,078,126 |
|
1,748,075 |
|
2,018,477 |
|
1,647,349 |
|
National Treasury Notes (NTNs) |
|
149,090 |
|
|
|
|
|
|
|
Treasury Financial Notes (LFTs) |
|
47,684 |
|
183,882 |
|
13,353 |
|
13,354 |
|
National Treasury Notes (LTNs) |
|
20,287 |
|
|
|
20,287 |
|
|
|
Others |
|
68,169 |
|
101,608 |
|
51,271 |
|
84,450 |
|
|
|
2,363,356 |
|
2,033,565 |
|
2,103,388 |
|
1,745,153 |
|
|
|
2,417,623 |
|
2,051,502 |
|
2,110,555 |
|
1,755,513 |
|
Cash investments are transactions contracted with Brazilian institutions, and international financial institutions with branch offices in Brazil, at normal market prices and on normal market conditions. All the transactions are highly liquid, are promptly convertible into a known amount of cash, and are subject to insignificant risk of change in value. Bank Certificates of Deposit (CBDs), with fixed or floating rates, and Time Deposits with Special Guarantee (DPGEs) are remunerated at a percentage (varying from 100% to 110%) of the CDI rate published by Cetip (the Custody and Settlement Chamber).
|
|
|
|
Up to 90 |
|
Over 90 |
|
|
|
|
|
|
|
Balances |
|
days past |
|
days past |
|
Total |
| ||
Consumer type |
|
not yet due |
|
due |
|
due |
|
30/09/2010 |
|
30/06/2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Holding company |
|
|
|
|
|
|
|
|
|
|
|
Industrial |
|
175,723 |
|
7,918 |
|
6,099 |
|
189,740 |
|
171,994 |
|
Commercial, services and others |
|
785 |
|
11 |
|
|
|
796 |
|
756 |
|
Wholesale supply to other concession holders |
|
121,425 |
|
38,638 |
|
12,329 |
|
172,392 |
|
155,753 |
|
Provision for doubtful receivables |
|
|
|
|
|
(1,920 |
) |
(1,920 |
) |
(1,920 |
) |
|
|
297,933 |
|
46,567 |
|
16,508 |
|
361,008 |
|
326,583 |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Industrial |
|
706 |
|
|
|
|
|
706 |
|
665 |
|
Commercial, services and others |
|
5,264 |
|
|
|
|
|
5,264 |
|
3,270 |
|
|
|
|
|
|
|
|
|
5,970 |
|
3,935 |
|
Total, consolidated |
|
303,903 |
|
46,567 |
|
16,508 |
|
366,978 |
|
330,518 |
|
The Company makes the Provisions for Doubtful Receivables through an individual analysis of clients outstanding balances, taking into account the history of default, negotiations in progress and the existence of any real guarantees.
The Provision for Doubtful Receivables is considered to be sufficient to cover any losses in the realization of these assets.
6. TRADERS - TRANSACTIONS IN FREE ENERGY
Cemig GTs obligations and rights in relation to the transactions in free energy in the Electricity Trading Chamber (CCEE) during the Rationing Program are as follows:
|
|
Consolidated and |
| ||
|
|
Holding company |
| ||
|
|
30/09/2010 |
|
30/06/2010 |
|
CURRENT ASSETS |
|
|
|
|
|
Amounts to be received from distributors |
|
47,678 |
|
46,141 |
|
|
|
47,678 |
|
46,141 |
|
The Amounts receivable, in the above table, refer to the difference between the prices paid by the Company in the transactions in energy on the CCEE, during the period when the Rationing Program was in force, and the rate of R$ 49.26/MWh. This difference is to be reimbursed through the amounts raised by means of the Extraordinary Tariff Recomposition (RTE), as defined in the General Agreement for the Electricity Sector.
In accordance with Aneel Resolution 36 of January 29, 2003, the electricity distributors have since March 2003 raised the amounts obtained monthly by means of the RTE and passed them through to those generators and distributors who have amounts receivable which include the Company.
On January 12, 2010, Aneel published Normative Resolution 387, establishing that the balances of payments due for Free Energy and for Loss of Revenue, after completion of the process of collection of the RTE in distributors retail supply tariffs, should be recalculated using a new methodology.
The final passthrough of Free Energy amounts will be the sum of the monthly differences, positive or negative, between the passthroughs for Free Energy made in accordance with certain defined criteria, and the passthroughs already made, plus financial remuneration at the Selic rate, from the date of occurrence of the difference up to the date of completion of the charging of the RTE within retail supply tariffs.
As a result of the recalculation by Aneel of the amounts to be received by the Distributors, the Company recorded an amount of R$ 36,388, corresponding to the amounts to be received by the Distributors, of which, up to September 2010, the company received the amount of R$ 7,388.
The amounts to which Cemig GT is entitled are updated by the variation in the Selic rate plus 1.00% interest per year.
The conclusion of certain court proceedings in progress, brought by market agents, in relation to interpretation of the rules in force at the time of the transactions on the CCEE, could result in changes in the amounts recorded.
7. REGULATORY ASSETS AND LIABILITIES THE TARIFF REVIEW
FIRST TARIFF REVIEW
The first Review of the Transmission Tariff, for all of the Companys base of assets, was approved by the Council of Aneel on June 17, 2009. In it Aneel set the percentage for repositioning of the Companys Permitted Annual Revenue (RAP) at 5.35%, backdated to 2005.
On June 1, 2010, Aneel granted the Administrative Appeal filed by the Company, ordering repositioning of its first periodic Tariff Review from 5.35% to 6.96%, for the following reasons:
(i) costs incurred in preparation of the evaluation report, in the amount of R$ 978;
(ii) alteration of the Net Remuneration Basis by R$ 1,140;
(iii) inclusion of the Sector Charges on the difference of amounts in Revenues applied for, of the last four cycles, and Updating of the Financial Amount, due to the alteration of the profile of Remuneration of Authorized Facilities, of R$ 8,424.
Aneel additionally established a financial component, of R$ 168,632, to be paid to the Company as the Adjustment Portion (PA) in 24 months. This amount is the backdated effect of the tariff repositioning over the period from July 1, 2005 through June 30, 2009, increased by the R$ 10,542 arising from the Administrative Appeal. The first part, of R$ 85,732, was incorporated into the adjustment for the 200910 cycle, and has been received in full. The second part, of R$ 93,009, will be compensated in the 201011 adjustment.
SECOND TARIFF REVIEW
On June 8, 2010 Aneel homologated the result of the Companys Second Tariff Review, which set the repositioning of the Permitted Annual Revenue (RAP) at 15.88%, backdated to June 2009. This resulted in a requirement for reimbursement of R$ 75,568 to the users of the Transmission System during the July 2010 to July 2011 tariff cycle. The Company recorded this amount as a reduction of Revenue in the second quarter of 2010.
As and when amounts of the Adjustment Portion, relating to the first and second Tariff Reviews, are received/discounted in the tariff, the Company transfers the corresponding amounts recorded in Assets and Liabilities to the Income statement.
|
|
30/09/2010 |
|
30/06/2010 |
|
Revisão Tarifária da Transmissão 1a Revisão |
|
|
|
|
|
Valores Homologados |
|
158,090 |
|
158,090 |
|
Atualização Monetária pelo IGPM |
|
2,475 |
|
2,868 |
|
Valores arrecadados |
|
(96,557 |
) |
(78,932 |
) |
Total da 1a Revisão Tarifária da Transmissão |
|
64,008 |
|
82,026 |
|
|
|
|
|
|
|
Revisão Tarifária da Transmissão 2a Revisão |
|
|
|
|
|
Valores Homologados |
|
(64,585 |
) |
(64,585 |
) |
Atualização pelo IGPM |
|
(126 |
) |
|
|
Valores arrecadados |
|
14,638 |
|
|
|
Total da 2a Revisão Tarifária da Transmissão |
|
(50,073 |
) |
(64,585 |
) |
|
|
|
|
|
|
Ativo Circulante |
|
68,468 |
|
91,954 |
|
Ativo Não Circulante |
|
4,043 |
|
1,055 |
|
Passivo Circulante |
|
(58,576 |
) |
(75,568 |
) |
|
|
13,935 |
|
17,441 |
|
|
|
Consolidated |
|
Holding company |
| ||||
|
|
30/09/2010 |
|
30/06/2010 |
|
30/09/2010 |
|
30/06/2010 |
|
Current |
|
|
|
|
|
|
|
|
|
ICMS tax recoverable |
|
39,050 |
|
40,397 |
|
36,865 |
|
38,677 |
|
Income tax |
|
339,194 |
|
278,480 |
|
330,104 |
|
269,688 |
|
Social Contribution tax |
|
118,866 |
|
81,689 |
|
118,137 |
|
80,866 |
|
Pasep tax |
|
4,149 |
|
4,175 |
|
3,667 |
|
3,664 |
|
Cofins tax |
|
19,046 |
|
19,072 |
|
16,815 |
|
16,800 |
|
ers |
|
793 |
|
352 |
|
576 |
|
158 |
|
|
|
521,098 |
|
424,165 |
|
506,164 |
|
409,853 |
|
Non-current |
|
|
|
|
|
|
|
|
|
ICMS tax recoverable |
|
8,223 |
|
8,223 |
|
7,742 |
|
7,742 |
|
Income tax |
|
2,893 |
|
2,373 |
|
|
|
|
|
Pasep tax |
|
23 |
|
495 |
|
23 |
|
495 |
|
Cofins tax |
|
104 |
|
2,281 |
|
104 |
|
2,281 |
|
|
|
11,243 |
|
13,372 |
|
7,869 |
|
10,518 |
|
|
|
532,341 |
|
437,537 |
|
514,033 |
|
420,371 |
|
The balances of income tax and Social Contribution tax refer to tax credits in corporate income tax returns (DIPJs) of previous years, and to advance payments made in 2010, which will be offset against federal taxes payable to be calculated for the year 2010, posted in Taxes and contributions.
The credits of ICMS tax and Pasep and Cofins taxes recoverable arise from acquisitions of fixed assets, and can be used for offsetting over 48 months.
A) DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION TAX:
The company has recorded credits of income tax, constituted at the rate of 25.00%, and Social Contribution tax, at the rate of 9.00%, as follows:
|
|
Consolidated |
| ||
|
|
30/09/2010 |
|
30/06/2010 |
|
Tax credits on temporary differences: |
|
|
|
|
|
Post-employment obligations |
|
18,074 |
|
17,751 |
|
Provision for Pasep and Cofins taxes Extraordinary Tariff Recomposition |
|
2,392 |
|
1,741 |
|
Provision for doubtful receivables |
|
643 |
|
643 |
|
Financial instruments |
|
14,316 |
|
14,316 |
|
FX variation |
|
35,585 |
|
35,585 |
|
Contingencies |
|
2,070 |
|
1,786 |
|
Taxes with demandability suspended |
|
6,221 |
|
3,962 |
|
Others |
|
7,176 |
|
4,868 |
|
|
|
86,477 |
|
80,652 |
|
|
|
|
|
|
|
Current assets |
|
30,930 |
|
20,519 |
|
Non-current assets |
|
55,547 |
|
60,133 |
|
At a meeting on March 23, 2010 the Board of Directors approved the technical study prepared by the CFOs department on forecasts for future profitability adjusted to present value, which show capacity for realization of the deferred tax asset in a maximum period of 10 years, as specified in CVM Instruction 371. This study was also submitted to the Audit Board, on March 4, 2010.
According to the Companys estimates, future taxable profits enable the deferred tax asset existing on June 30, 2010 to be realized as follows:
|
|
Consolidated |
|
|
|
30/09/2010 |
|
2010 |
|
11,483 |
|
2011 |
|
25,702 |
|
2012 |
|
19,015 |
|
2013 |
|
13,084 |
|
2014 to 2015 |
|
9,965 |
|
2015 to 2017 |
|
3,614 |
|
2018 to 2020 |
|
3,614 |
|
|
|
86,477 |
|
B) RECONCILIATION OF THE EXPENSE ON INCOME TAX AND THE SOCIAL CONTRIBUTION TAX:
This table shows the reconciliation of the nominal expense on income tax (rate 25%) and Social Contribution tax (rate 9%) with the actual, expense shown in the Income statement:
|
|
Consolidated |
|
Holding company |
| ||||
|
|
30/09/2010 |
|
30/09/2009 |
|
30/09/2010 |
|
30/09/2009 |
|
Profit before income tax and Social Contribution tax |
|
1,187,687 |
|
1,467,654 |
|
1,156,684 |
|
1,467,252 |
|
Income tax and Social Contribution nominal expense |
|
(403,814 |
) |
(499,003 |
) |
(393,273 |
) |
(498,866 |
) |
Tax effects applicable to: |
|
|
|
|
|
|
|
|
|
Interest on Equity |
|
54,113 |
|
54,329 |
|
54,113 |
|
54,329 |
|
Employees profit shares |
|
9,315 |
|
7,462 |
|
9,315 |
|
7,462 |
|
Tax incentive amounts |
|
14,305 |
|
8,903 |
|
10,395 |
|
8,903 |
|
Equity gain (loss) on subsidiaries |
|
|
|
(89 |
) |
27,509 |
|
(89 |
) |
Non-deductible contributions and donations |
|
(2,630 |
) |
(1,796 |
) |
(2,630 |
) |
(1,796 |
) |
Adjustment in income tax and Social Contribution prior business year |
|
|
|
(11,423 |
) |
|
|
(11,423 |
) |
Tax credits not recognized |
|
690 |
|
384 |
|
690 |
|
384 |
|
Others |
|
(1,122 |
) |
(625 |
) |
(4,259 |
) |
(360 |
) |
Income tax and Social Contribution tax |
|
(329,143 |
) |
(441,858 |
) |
(298,140 |
) |
(441,456 |
) |
CORPORATE INCOME TAX INCENTIVES ENJOYED BY TRANSMISSORA ALIANÇA DE ENERGIA ELÉTRICA S.A. TAESA
The National Integration Ministry, through Adene, the federal Agency for Development of the Northeast; and Ada, the federal Agency for the Development of the Amazon Region, has issued official position statements granting some of the subsidiaries of Taesa tax benefits of reduction of 75% in income tax payable, for the activity carried out in the region to which the benefits apply.
10. DEPOSITS LINKED TO LEGAL ACTIONS
Deposits linked to legal actions are mainly related to contingencies for employment-law litigation and tax obligations.
The main payments into court in relation to tax obligations relate to income tax withheld at source on Interest on Equity, and to the ICMS tax relating to its exclusion from the amount taxable by PIS and Cofins tax.
|
|
Consolidated |
|
Holding company |
| ||||
|
|
30/09/2010 |
|
30/06/2010 |
|
30/09/2010 |
|
30/06/2010 |
|
|
|
|
|
|
|
|
|
|
|
Employment law cases |
|
34,505 |
|
34,440 |
|
34,427 |
|
34,362 |
|
|
|
|
|
|
|
|
|
|
|
Tax obligations |
|
|
|
|
|
|
|
|
|
Income tax on Interest on Equity |
|
8,014 |
|
8,014 |
|
8,014 |
|
8,014 |
|
Pasep and Cofins |
|
69,382 |
|
60,440 |
|
69,095 |
|
60,153 |
|
Others |
|
1,835 |
|
1,835 |
|
988 |
|
988 |
|
|
|
|
|
|
|
|
|
|
|
Others |
|
1,719 |
|
1,717 |
|
914 |
|
914 |
|
|
|
115,455 |
|
106,446 |
|
113,438 |
|
104,431 |
|
The balances of deposits paid into court in relation to the Pasep and Cofins taxes have a corresponding provision recorded in Taxes, charges and contributions. For more details, please see Explanatory Note 15.