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São Paulo, August 12^th, 2008 – CPFL Energia S.A. (Bovespa: CPFE3 and NYSE: CPL), announces the 2Q08 results. The following financial and operational information, unless otherwise indicated, is presented in a consolidated form and is in accordance with applicable legislation. Comparisons are relative to 2Q07, unless otherwise stated.

CPFL ENERGIA ANNOUNCES NET INCOME OF R$ 329 MILLION IN 2Q08

Indicators (R$ Million)		2Q08		2Q07		Var.		1H08		1H07		Var.
Sales within the Concession Area - GWh		12,067		11,476		5.1%		24,117		22,628		6.6%
Captive Market		9,121		8,687		5.0%		18,289		17,239		6.1%
TUSD		2,946		2,789		5.6%		5,828		5,390		8.1%
Sales in the Free Market - GWh		2,192		2,329		-5.9%		4,277		4,145		3.2%
Gross Operating Revenue		3,439		3,410		0.9%		7,121		6,751		5.5%
Net Operating Revenue		2,310		2,224		3.9%		4,795		4,377		9.5%
EBITDA		718		814		-11.8%		1,364		1,683		-19.0%
EBITDA Margin		31.1%		36.6%		-5.5%		28.4%		38.4%		-10.0%
Net Income		329		369		-11.1%		602		842		-28.6%
Net Income per Share - R$		0.68		0.77		-11.1%		1.25		1.76		-28.6%
Investments		254		312		-18.6%		483		549		-12.0%
Note: EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund  contributions plus adjustments for extraordinary items.

HIGHLIGHTS 2Q08

• Growth of 5.1% in energy sales within the concession area;
• Growth of 3.9% in net operating revenue;
• Increase of 15.1% in the average daily trading volume of CPFL Energia shares in 1H08, in relation to 2007, reaching R$ 37.5 million.

Teleconference in Portuguese with Simultaneous Translation in English (Bilingual Q&A)				Investor Relations
				Department
•		Wednesday, August 13th, 2008 – 11:00 am (SP), 10:00 am (EST)
		Portuguese: 55-11-4688-6301 – Code: CPFL		ri@cpfl.com.br
		English: 1-888-700-0802 (US) and 1-786-924-6977 (Other Countries) – Code: CPFL		www.cpfl.com.br/ir
•		Webcast: www.cpfl.com.br/ir

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	2Q08 Results | August 12th 2008

INDEX

1) ENERGY SALES		3
1.1) Sales within the Distributors’ Concession Area		3
1.1.1) Sales to the Captive Market		3
1.1.2) Sales by Consumer Class – Captive Market		4
1.2) Sales to the Free Market		4
2) ECONOMIC-FINANCIAL PERFORMANCE		5
2.1) Operating Revenue		5
2.2) Cost of Electric Power		6
2.3) Operating Costs and Expenses		6
2.4) EBITDA		6
2.5) Financial Result		7
2.6) Net Income		7
3) DEBT		8
4) INVESTMENTS		10
5) CASH FLOW		11
6) DIVIDENDS		12
7) STOCK MARKET		13
7.1) Shares Performance		13
7.2) Ratings		14
8) CORPORATE GOVERNANCE		14
9) SHAREHOLDING STRUCTURE		16
10) PERFORMANCE OF THE BUSINESS SEGMENTS		17
10.1) Distribution Segment		17
10.1.1) Economic-Financial Performance		17
10.1.2) Tariff Revisions		19
10.2) Commercialization Segment		22
10.3) Generation Segment		23
11) ATTACHMENTS		26
11.1) Sales to the Captive Market by Distributors (in GWh)		26
11.2) Economic-Financial Performance by Distributors		27
11.3) Statement of Assets - CPFL Energia		29
11.4) Statement of Liabilities - CPFL Energia		30
11.5) Income Statement - CPFL Energia		31
11.6) Income Statement - Consolidated Distribution Segment		32
11.7) Income Statement - Consolidated Generation Segment		33

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1) ENERGY SALES

1.1) Sales within the Distributors’ Concession Area

In 2Q08, sales within the concession area, achieved by the distribution segment, totaled 12,067 GWh, an increase of 5.1%, due mainly to organic growth in the distributors’ concession area and the acquisition of CMS Energy Brasil (now denominated as CPFL Jaguariúna). Disregarding the effect of this acquisition, the increase would have been 2.0% .

Sales within the Concession Area - GWh
	2Q08	2Q07	Var.	1H08	1H07	Var.
Captive Market	9,121	8,687	5.0%	18,289	17,239	6.1%
TUSD	2,946	2,789	5.6%	5,828	5,390	8.1%
Total	12,067	11,476	5.1%	24,117	22,628	6.6%

Sales to the captive market totaled 9,121 GWh, an increase of 5.0%, due to the organic growth and the acquisition mentioned above. Disregarding the effect of the acquisition, the increase would have been 1.2% . The quantity of energy, in GWh, corresponding to the consumption by free clients in the distributors’ areas of activity, billed through the Tariff of Use of the Distribution System (TUSD), reached 2,946 GWh, an increase of 5.6% . Disregarding the effect of the aforementioned acquisition, the increase would have been 4.4% .

1.1.1) Sales to the Captive Market

Captive Market - GWh
	2Q08	2Q07	Var.	1H08	1H07	Var.
Residential	2,848	2,635	8.1%	5,735	5,322	7.8%
Industrial	2,969	2,823	5.2%	5,804	5,504	5.5%
Commercial	1,654	1,607	2.9%	3,402	3,252	4.6%
Rural	579	587	-1.5%	1,207	1,133	6.6%
Others	1,072	1,035	3.5%	2,141	2,028	5.6%
Total	9,121	8,687	5.0%	18,289	17,239	6.1%
Note: The captive market sales tables by distributor are attached to this report in item 11.1.

In the captive market, emphasis is given to the growth in the residential class (8.1%) and industrial class (5.2%), which together account for 63.8% of the total consumption by the group distributors’ captive clients. If the acquisition of CMS Energy Brasil were not taken into account, the sales performances would be:

• Residential and commercial classes: increases of 5.3% and 0.9%, respectively. The performance by the commercial class was favored by the expansion in earning power and the ready availability of credit. These effects combined with the reduction in the price of domestic appliances have fuelled the expansion of the residential class. The temperatures over the period, which were below those registered in 2Q07, impeded even higher growth of these classes;

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• Industrial class: remained almost steady (increase of 0.4%), due mainly to the migration of captive clients to the free market and, most importantly the so called “special clients”, which have contracted demand over 500 kW and are qualified to purchase electric power from alternative generation sources, such as biomass and small hydroelectric plants (PCHs).

1.1.2) Sales by Consumer Class – Captive Market

1.2) Sales to the Free Market

Free Market - GWh
	2Q08	2Q07	Var.	1H08	1H07	Var.
Total	2,192	2,329	-5.9%	4,277	4,145	3.2%

Sales to the free market made by the commercialization segment were down 5.9%, due to the reduction in sales through short term contracts.

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2) ECONOMIC-FINANCIAL PERFORMANCE

Consolidated Income Statement - CPFL ENERGIA (R$ Thousands)
	2Q08	2Q07	Var.	1H08	1H07	Var.
Gross Operating Revenues	3,439,122	3,409,587	0.9%	7,121,137	6,751,315	5.5%
Net Operating Revenues	2,310,373	2,224,201	3.9%	4,794,857	4,377,395	9.5%
Cost of Electric Power	(1,293,041)	(1,149,388)	12.5%	(2,845,706)	(2,200,564)	29.3%
Operating Costs & Expenses	(377,342)	(348,809)	8.2%	(740,518)	(663,865)	11.5%
EBIT	639,990	726,004	-11.8%	1,208,633	1,512,966	-20.1%
EBITDA	717,933	814,100	-11.8%	1,363,553	1,682,989	-19.0%
Financial Income (Expense)	(140,978)	(156,145)	-9.7%	(258,785)	(263,191)	-1.7%
Operating Income	499,012	569,859	-12.4%	949,848	1,249,775	-24.0%
Income Before Taxes	499,298	567,534	-12.0%	943,699	1,244,611	-24.2%
NET INCOME	328,509	369,447	-11.1%	601,576	842,375	-28.6%
EPS - R$	0.68	0.77	-11.1%	1.25	1.76	-28.6%
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

2.1) Operating Revenue

Gross operating revenue in 2Q08 was R$ 3,439 million, representing growth of 0.9% (R$ 30 million). Net operating revenue reached R$ 2,310 million, equivalent to growth of 3.9% (R$ 86 million).

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

• Increase of 5.1% in sales within the concession area mostly due mainly to organic growth in the region and the acquisition of CMS Energy Brasil;
• RGE tariff revision (+4.77%), effective from April 2008;
• Net effect resulting from the amortization of the 2001 Parcel A (R$ 46 million). This amount is composed by the increase in the operating revenue of R$ 57 million net of taxes (R$ 73 million including taxes), partially offset by the increase of R$ 11 million in the deduction from operating revenues. The amortization of Parcel A affected the revenues, the deductions from operating revenues and the expenses, without affecting the net income;
• Increase of 34.6% (R$ 53 million) in electric power supply revenue, due, among other factors, to the R$ 38 million increase in revenue from other concessionaires/licensees despite the volume of energy remaining stable. This increase stems from, among other factors, the acquisition of CMS Energy Brasil (R$ 11 million), and the readjustment of energy prices.

The increase in operating revenue was partially offset by distributors’ tariff revision:

• CPFL Piratininga (-10.11%), effective from October 2007;
• CPFL Santa Cruz (-7.13%), effective from February 2008; and
• CPFL Paulista (-13.61%), effective from April 2008.

In 1H08, gross operating revenue was R$ 7,121 million, representing growth of 5.5% (R$ 370 million). Net operating revenue reached R$ 4,795 million, equivalent to growth of 9.5% (R$ 417 million).

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2.2) Cost of Electric Power

The cost of electric power, which consists of the purchase of electric power for resale and charges for the use of the distribution and transmission systems, amounted to R$ 1,293 million in 2Q08, representing an increase of 12.5% (R$ 144 million):

• The cost of energy purchased for resale in 2Q08 was R$ 1,096 million, which represents an increase of 12.4% (R$ 121 million). The main explanatory factors for this variation are:

(i) Increase of 6.9% (R$ 73 million) in the cost of purchased energy in both the free and regulated contracting markets;

(ii) Increase resulting from the amortization of the 2001 Parcel A, regarding purchased energy and charges (R$ 46 million). The amortization of Parcel A affected the revenues, the deductions from operating revenues and the expenses, without affecting the net income.

The increase in the cost of energy purchased for resale was partially offset by PIS and COFINS tax credits generated by the purchase of energy (R$ 16 million).

• Charges for the use of the transmission and distribution system reached R$ 198 million in 2Q08, an increase of 12.9% (R$ 23 million).

2.3) Operating Costs and Expenses

Costs and operating expenses were R$ 377 million in 2Q08, registering an increase of 8.2% (R$ 29 million).

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

• The item PMSO registered an increase of 14.8% (R$ 38 million), due mainly to the following factors:

(i) Spending on personnel which registered an increase of 26.3% (R$ 28 million), due, among other factors, to the acquisition of CMS Energy Brasil (R$ 8 million) and the increases at CPFL Paulista (R$ 11 million) and CPFL Piratininga (R$ 4 million), resulting from the 2007 collective agreement salary hikes together with the complement of the profit sharing referring to the same year, paid in April 2008;

(ii) Spending on outsourced services which registered an increase of 11.2% (R$ 9 million), due, among other factors, to the acquisition of CMS Energy Brasil (R$ 5 million).

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

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

• The item Private Pension Fund, which represented revenue of R$ 13 million in 2Q07, and now in 2Q08, represents revenue of R$ 21 million, due to the impact from the expected real earnings of the plan’s assets, as defined in the Actuary Report of December 2007.

2.4) EBITDA

Based on the factors herein described, CPFL Energia EBITDA, in 2Q08, was R$ 718 million, registering a reduction of 11.8% (R$ 96 million).

In 1H08, EBITDA was R$ 1,364 million, registering a fall of 19.0% (R$ 319 million).

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2.5) Financial Result

In 2Q08, the financial result, or the net financial expense was R$ 141 million, a reduction of 9.7% (R$ 15 million) compared to the R$ 156 million registered in 2Q07. Items that help explain this variation are:

• Financial Revenues: an increase of 11.7% (R$ 9 million), rising from R$ 77 million in 2Q07 to R$ 85 million in 2Q08, mainly due to:

(i) Increases in the items Earnings and Financial Investments (R$ 7 million), Surcharges and Default Fines (R$ 3 million), Write-up of Judicial Bonds (R$ 9 million) and Monetary and Foreign Exchange Updates (R$ 2 million);

The increase in financial revenues was partially offset by the following factors:

(i) Reduction of R$ 6 million in financial revenues stemming from the remuneration of regulatory assets, due mainly to the consummation of the Extraordinary Tariff Re-composition (RTE) and Parcel “A”;

(ii) Reduction of R$ 6 million in other financial revenues.

• Financial Expenses: a reduction of 2.7% (R$ 6 million), falling from R$ 233 million in 2Q07 to R$ 226 million in 2Q08, mainly due to:

(i) Hedge operations carried out during the acquisition of CMS Energy Brasil (R$ 23 million) – non-recurring events that caused an increase in financial expenses in 2Q07;

(ii) Reduction in Banking Expenses (R$ 22 million), mainly due to the discontinuity of CPMF charges.

The reduction in financial expenses was partially offset by the increase in the financial expenses from the issuance of debentures, in the amount of R$ 450 million, for the acquisition of CMS Energy Brasil, and from the increase in CPFL Geração debt portfolio (investments in the Ceran Complex and the Foz do Chapecó Hydroelectric Facility).

2.6) Net Income

Net income, in 2Q08, was R$ 329 million, a reduction of 11.1% (R$ 41 million) with net income per share standing at R$ 0.68.

In 1H08, net income was R$ 602 million, representing a reduction of 28.6% (R$ 241 million) with net income per share at R$ 1.25.

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3) DEBT

CPFL Energia debt reached R$ 6,228 million in 2Q08, an increase of 10.5% . The financial debt increased in absolute terms, and its average cost rose from 11.7% p.a., in 2Q07, to 12.8% p.a., in 2Q08, due to the elevation of the IGP-M/IGP-DI (from 0.5% to 4.6%, over the period) but partially offset by the fall in interest rates (from 12.6% p.a. to 11.4% p.a.), and the TJLP (from 6.50% p.a. to 6.25% p.a.), accrued over the period.

The main contributing factors to the variation in the balance of financial debt were:

(i) Issue of debentures by CPFL Energia, in the amount of R$ 450 million, for the acquisition of CMS Energy Brasil;

(ii) Issue of debentures by RGE, in the amount of R$ 380 million;

(iii) Issue of promissory notes by CPFL Piratininga, in the amount of R$ 100 million;

(iv) Funding (BNDES and other financial institutions), net of amortizations, obtained by Foz do Chapecó, totalizing R$ 207 million;

(v) Amortizations (BNDES and other financial institutions), net of funding, carried out by CPFL Energia, CPFL Paulista, CPFL Piratininga, RGE, CPFL Brasil, CPFL Geração and generation projects (except for Foz do Chapecó, mentioned in the prior item), totalizing R$ 357 million;

(vi) Principal amortization of debentures’ issues of CPFL Geração and Baesa (R$ 148 million).

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As a consequence of funding operations and amortizations carried out, a shift in the financial debt profile can be observed, demonstrated by the increase in the volume of debt linked to CDI (from 48.1% to 51.4%), and by the reduction in the volume of debt linked to IGP-M/IGP-DI (from 18.4% to 15.3%) .

Financial Debt - 2Q08 (R$ Thousands)
	Charges				Principal				Total
	Short Term		Long Term		Short Term		Long Term		Short Term		Long Term		Total
Local Currency
BNDES - Repowering	131		-		9,949		25,797		10,080		25,797		35,877
BNDES - Investment	5,496		10,726		231,145		1,721,565		236,641		1,732,291		1,968,932
BNDES - Regulatory Asset	6		-		1,330		-		1,336		-		1,336
BNDES - Income Assets	16		-		48		822		64		822		886
Furnas Centrais Elétricas S.A.	-		-		91,119		83,526		91,119		83,526		174,645
Financial Institutions	5,800		-		108,472		175,149		114,272		175,149		289,421
Others	495		-		30,127		41,201		30,622		41,201		71,823
Subtotal	11,944		10,726		472,190		2,048,060		484,134		2,058,786		2,542,920
Foreign Currency
IDB	432		-		2,882		51,934		3,314		51,934		55,248
Financial Institutions	1,218		15,552		44,387		898,040		45,605		913,592		959,197
Subtotal	1,650		15,552		47,269		949,974		48,919		965,526		1,014,445
Debentures
CPFL Energia	16,678		-		-		450,000		16,678		450,000		466,678
CPFL Paulista	28,995		-		-		925,475		28,995		925,475		954,470
CPFL Piratininga	22,247		-		-		400,000		22,247		400,000		422,247
RGE	20,058		-		204,912		406,200		224,970		406,200		631,170
SEMESA	1,175		-		157,946		-		159,121		-		159,121
BAESA	1,837		-		3,164		32,272		5,001		32,272		37,273
Subtotal	90,990		-		366,022		2,213,947		457,012		2,213,947		2,670,959
Total	104,584		26,278		885,481		5,211,981		990,065		5,238,259		6,228,324
Percentage on Total Financial Debt (%)	-		-		-		-		15.9%		84.1%		100%

With regard to financial debt, it should be noted that R$ 5,238 million (84.1% of the total) is considered long-term and R$ 990 million (15.9% of the total) is considered short-term.

R$ Thousands	2Q08	2Q07	Var.
Total Debt (1)	(6,623,681) (2)	(6,562,331)	0.9%
(+)Regulatory Asset/(Liability)	355,060	817,606	-56.6%
(+)Available Funds	869,611	828,589	5.0%
(=)Adjusted Net Debt	(5,399,010)	(4,916,136)	9.8%
Notes: (1) Financial Debt + Derivatives + Private Pension Plan (Fundação CESP);
(2) Total Debt in 2Q08 net of judicial deposit, in the amount of R$ 392 million.

In 2Q08, adjusted net debt, after the exclusion of the regulatory assets/(liabilities) and cash equivalents, reached R$ 5,399 million, an upturn of 9.8% (R$ 483 million).

The Company closed 2Q08 with a Net Debt / EBITDA ratio of 1.8x.

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4) INVESTMENTS

In 2Q08, R$ 254 million was invested in the maintenance and expansion of business, of which R$ 139 million was channeled to distribution, R$ 112 million to generation, R$ 2 million to commercialization, and R$ 1 million to other investments.

Listed below are some of the main investments made by CPFL Energia in each segment:

(i) Distribution: investments were made in the expansion and strengthening of the electric system, to keep pace with market growth, both in power sales and number of customers. Investments were also made in improvements in electric system maintenance, operational infrastructure, upgrading of operational administration support systems, customer help services and research and development programs, among others;

(ii) Generation: investments were earmarked principally for ongoing construction projects – 14 de Julho Hydroelectric Facility (Ceran Complex) and Foz do Chapecó Hydroelectric Facility.

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5) CASH FLOW

Consolidated Cash Flow (R$ Thousands)
		2Q08		Last 12M
Beginning Balance		783,899		700,385
Net Income		328,509		1,402,637
Depreciation and Amortization		140,553		563,604
Interest/Monetary and Foreign Exchange Variations		(173,494)		(157,765)
Derivative Instruments		178,620		24,621
Consumers, Concessionaries and Licensees		143,961		236,048
Cash Investments		244,505		9,360
Deferment of Tariff Costs		30,187		156,560
Judicial Deposits		(13,220)		(401,837)
Other Adjustments		(103,764)		80,849
		447,348		511,440
Investment Activities
Acquisition of Property, Plant and Equipment		(253,855)		(1,066,676)
Others		108,426		65,318
		(145,429)		(1,001,358)
Financing Activities
Loans, Financing and Debentures		532,583		3,014,555
Principal Amortization of Loans, Financing and Debentures		(475,349)		(2,396,351)
Dividends Paid		(720,793)		(1,563,409)
Others		-		82,868
		(663,560)		(862,337)
Cash Flow Generation		(33,132)		50,382
Ending Balance - 06/30/2008		750,767		750,767

The cash flow balance at 2Q08 closing was R$ 751 million, representing a reduction of 4.2% (R$ 33 million) in relation to the starting balance. We highlight the following factors that contributed to this fluctuation in cash flow:

(i) Cash increase:

• Cash generated by operational activities in the amount of R$ 776 million;

• Funds raised by loans, financing and debentures, which surpassed amortizations by R$ 57 million.

(ii) Cash decrease:

• Acquisition of fixed assets, in the amount of R$ 254 million (previously shown in item 4, “Investments”);

• Dividend payments related to 2H07, in the amount of R$ 721 million.

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6) DIVIDENDS

CPFL has announced an intermediate dividend distribution, for 1H08, in the amount of R$ 602 million, equivalent to R$ 1.253516809 per share. The proposed amount corresponds to 100% of net income for the period.

CPFL Energia's Dividend Yield
		2H06		1H07		2H07		1H08
Dividend Yield - last 12 months (1)		9.6%		10.9%		9.7%		7.6%
Note: (1) Based on the average share price over the period.

The 1H08 dividend yield, calculated from the average price of the period (R$ 36.11) is 7.6% (last 12 months).

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

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7) STOCK MARKET

7.1) Shares Performance

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

In 1H08, CPFL Energia shares appreciated 12.2% on Bovespa and 25.6% on NYSE, closing the period priced at R$ 36.30 per share and US$ 68.36 per ADR, respectively.

The average daily trading volume in 1H08 was R$ 37.5 million, of which R$ 17.1 million was on Bovespa and R$ 20.4 million was on NYSE, representing an increase of 15.1% . The number of trades made on Bovespa increased 1.6%, rising from a daily average of 738 in 2007 to 750 in 1H08.

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

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7.2) Ratings

On June 16, 2008, Standard & Poor’s Rating Services raised the corporate credit rating of the companies CPFL Energia, CPFL Paulista, CPFL Piratininga and RGE by two notches, from brAA- to brAA+.

Fitch reaffirmed the rating AA(bra) of CPFL Energia and CPFL Paulista, elevating their perspective from stable to positive.

The table below shows the evolution of CPFL Energia’s corporate ratings:

Ratings of CPFL Energia - National Scale
Agency				2008		2007		2006		2005
Standard & Poor's		Rating		brAA+		brAA-		brA+		brA
		Outlook		Stable		Stable		Positive		Positive
Fitch Ratings		Rating		AA (bra)		AA (bra)		A+ (bra)		A- (bra)
		Outlook		Positive		Stable		Stable		Stable
Note: Considers position at closing.

8) CORPORATE GOVERNANCE

CPFL Energia simultaneously trade shares on the most elevated levels of corporate governance of the São Paulo Stock Exchange (Bovespa) and on the New York Stock Exchange (NYSE), which are: Novo Mercado and ADR’s Level III.

The Company is also part of the select group of companies that comprise the following Bovespa indexes: the Corporate Governance Index — IGC, the Index of Tag-Along Differentiated Shares — ITAG and the Index of Corporate Sustainability – ISE.

The company also participates in the Companies Circle, a group made up of fourteen Latin American companies recognized for their adoption of differentiated corporate governance practices. The group was constituted through the initiative of the Organization for Economic Cooperation and Development (OECD) and the International Finance Corporation (IFC), with the aim of promoting and encouraging the betterment of good corporate governance practices in Latin America.

Rating AA+ of Corporate Governance

CPFL Energia has obtained the corporate governance rating AA+ conferred by Austing Rating, a credit risk classification agency. This is the best classification attributed to a Brazilian company since 2006, when the evaluation started to be applied in the country. The highest possible rating of AAA has yet to be applied in Brazil.

The Best Corporate Governance Company in Latin America

When it comes to corporate governance, CPFL Energia was voted the best company in Latin America by the LatinFinance Magazine together with the consultancy Management & Excellence.

On a scale from 0% to 100%, CPFL complied with 92.68% of the good practice requisites analyzed in the study, obtaining the highest score. Fifty of the highest market value, non-financial companies participated in the evaluation.

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Corporate Governance Model

The corporate governance model implemented in September 2006 represented an evolution in practices adopted by the company, with the objective of keeping pace with its current context, focusing on the identification of new opportunities, on the maintenance of sector leadership and on the rationalization of management processes.

In this model, the structure of governance was simplified. It was established that the Board of Directors would act as the central forum of strategic decision-making, with the support of three Advisory Committees (People Management, Management Processes and Related Parties). These committees act on decisions requiring in-depth analysis, in conjunction with the Board of Executive Officers.

The Board of Directors comprises seven members, of which six are nominated by the controlling block shareholders and one is an independent advisor. All were elected at the Annual General Meeting (AGM) held on April 9, 2008, with a unified mandate of one year.

Composition of the Board of Directors – Term 2008/2009:

• Luiz Anibal de Lima Fernandes – Chairman;
• Cecília Mendes Garcez Siqueira – Deputy Chairman;
• Carlos Alberto Cardoso Moreira;
• Francisco Caprino Neto;
• Milton Luciano dos Santos;
• Otávio Carneiro de Rezende;
• Ana Dolores Moura Carneiro de Novaes – Independent Member.

The workings, the competencies and the composition of the permanent advisory committees to the Board of Directors are defined by company statute. The Board can still appoint temporary ad hoc commissions to conduct relevant matters or specific topics, which are outside the competency of the committees, such as: fine-tuning corporate governance practices, new businesses and generation projects, financial policies and the commercialization of energy derived from alternative and competitive sources, as well as the Pluriannual (multiannual) plan and the Annual Budget.

The People Management Committee is active in the definition of targets and in the assessment of the Board of Executive Officers including overview of HR policies and the Succession Plan. The Committee of Management Processes accompanies the Annual Internal Auditing Plan and monitors corporate risks and soundness of management information. The Committee of Related Parties pre-analyzes all transactions involving parties related to controlling block shareholders, in order to verify compliance with usual market conditions.

The activities of the Committees and Commissions are carried out within the sphere of the holding company’s strategies, together with the controlled and associated companies.

The Fiscal Board operates full-time and carries out the attributes of the Audit Committee, in accordance with Securities and Exchange Commission (SEC) rules, which apply to foreign companies listed on the United States stock exchange. Two advisors were nominated as Financial Experts, as prescribed in Sarbanes-Oxley Act rulings.

The CPFL Energia Board of Executive Officers comprise seven officers, one of which is the Chief Executive Officer and the other six are Vice Presidents (Distribution, Generation, Energy Management, Financial and Investor Relations, Strategy and Regulation and finally Administration).

The vice presidents are responsible, in their respective operational areas, for the conducting of the controlled companies businesses, in a way that ensures that the governance guidelines are aligned with the holding company, thus providing an integrated and optimized structure. The Chief Executive Officer of CPFL Energia is the main executive and President of the Board of Directors of the controlled companies.

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9) SHAREHOLDING STRUCTURE

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

Note: (1) Includes 0.2% of others.

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10) PERFORMANCE OF THE BUSINESS SEGMENTS

10.1) Distribution Segment

10.1.1) Economic-Financial Performance

Consolidated Income Statement - Distribution (R$ Thousands)
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		3,063,119		3,133,405		-2.2%		6,382,138		6,244,683		2.2%
Net Operating Revenues		1,991,864		1,992,381		0.0%		4,170,454		3,952,464		5.5%
Cost of Electric Power		(1,259,805)		(1,165,169)		8.1%		(2,719,215)		(2,285,299)		19.0%
Operating Costs & Expenses		(310,566)		(297,994)		4.2%		(607,395)		(567,048)		7.1%
EBIT		421,493		529,218		-20.4%		843,844		1,100,117		-23.3%
EBITDA		482,667		596,249		-19.0%		964,912		1,231,585		-21.7%
Financial Income (Expense)		(102,766)		(83,011)		23.8%		(127,098)		(121,871)		4.3%
Operating Income		318,727		446,207		-28.6%		716,746		978,246		-26.7%
Income Before Taxes		319,990		442,545		-27.7%		712,557		970,262		-26.6%
NET INCOME		276,087		328,420		-15.9%		535,074		676,615		-20.9%

Notes:
(1) Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.
(2) The economic-financial performance tables by distributor are attached to this report in item 11.2.

Operating Revenue

Gross operating revenue in 2Q08 reached R$ 3,063 million, representing a reduction of 2.2% (R$ 70 million). Net operating revenue was R$ 1,992 million, the same amount as registered in 2Q07.

The reduction in operating revenue was caused by distributors’ tariff revision:

• CPFL Piratininga (-10.11%), effective from October 2007;
• CPFL Santa Cruz (-7.13%), effective from February 2008; and
• CPFL Paulista (-13.61%), effective from April 2008.

Partially offset by:

• Increase of 5.1% in sales within the concession area due mainly to organic growth in the region and the acquisition of CMS Energy Brasil;
• RGE tariff revision (+4.77%), effective from April 2008;
• Net effect resulting from the amortization of the 2001 Parcel A (R$ 46 million). This amount is composed by the increase in the operating revenue of R$ 57 million net of taxes (R$ 73 million including taxes), partially offset by the increase of R$ 11 million in the deduction from operating revenues. The amortization of Parcel A affected the revenues, the deductions from operating revenues and the expenses, without affecting the net income.

In 1H08, gross operating revenue was R$ 6,382 million, an increase of 2.2% (R$ 138 million). Net operating revenue was R$ 4,170 million, equivalent to growth of 5.5% (R$ 218 million).

Cost of Electric Power

The cost of electric power comprising the cost of power for resale and the charges for the use of the transmission and distribution system totaled R$ 1,260 million in 2Q08, representing an increase of 8.1% (R$ 95 million):

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• The cost of electric power purchased for resale in 2Q08 was R$ 1,069 million, which represents an increase of 7.1% (R$ 71 million). The main explanatory factors for this variation are:

(i) Increase of 1.6% (R$ 17 million) in the cost of energy purchased on both the free and regulated markets;

(ii) Increase resulting from the amortization of the 2001 Parcel A, regarding purchased energy and charges (R$ 46 million). The amortization of Parcel A affected the revenues, the deductions from operating revenues and the expenses, without affecting the net income.

The increase in the cost of energy purchased for resale was partially offset by PIS and COFINS tax credits, generated by the purchase of energy (R$ 11 million).

• Charges for the use of the transmission and distribution system were R$ 191 million in 2Q08, an increase of 14.4% (R$ 24 million).

Operating Costs and Expenses

Costs and operating expenses were R$ 311 million in 2Q08, registering an increase of 4.2% (R$ 13 million), due to the following factors:

• The item PMSO registered an increase of 10.3% (R$ 23 million).

The main contributing factors for this variation are the following:

(i) Spending on personnel which registered an increase of 22.3% (R$ 22 million), due mainly to the acquisition of CMS Energy Brasil (R$ 5 million) and the increases at CPFL Paulista (R$ 11 million) and CPFL Piratininga (R$ 4 million), resulting from the 2007 collective agreement pay increases together with the profit sharing complement referring to the same year, paid in April 2008;

(ii) Spending on outsourced services, which registered an increase of 13.0% (R$ 8 million), due to, among other factors, the acquisition of CMS Energy Brasil (R$ 4 million).

The increase in PMSO was partially offset by the reduction of 15.7% (R$ 9 million) in other costs and operating expenses, due to the contingency provisions made in the previous year, especially those related to the Civil Actions and Tariff Hike at CPFL Piratininga (R$ 6 million), and the Civil and Labor Actions at RGE (R$ 3 million).

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

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

• The item Private Pension Fund which represented revenue of R$ 12 million in 2Q07, and now in 2Q08, represents revenue of R$ 21 million, due to the impact from the expected real earnings of the plan’s assets, as defined by the Actuary Report of December 2007.

EBITDA

Based on the factors described herein, EBITDA in 2Q08, was R$ 483 million, registering a reduction of 19.0% (R$ 114 million).

In 1H08, EBITDA was R$ 965 million, a reduction of 21.7% (R$ 267 million).

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Financial Result

In 2Q08, the financial result, or the net financial expenses, was R$ 103 million, an increase of 23.8% (R$ 20 million) compared to the R$ 83 million registered in 2Q07, due mainly to the greater provisioning for interest on own capital (R$ 29 million).

The increase in net financial expenses was partially offset by the increase of 12.2% (R$ 8 million) in financial revenues, which rose from R$ 68 million in 2Q07 to R$ 76 million in 2Q08, due mainly to the variation in the item Update of Judicial Bonds (R$ 9 million).

Net Income

Net Income in 2Q08 was R$ 276 million, representing a reduction of 15.9% (R$ 52 million). In 1H08, net income was R$ 535 million, a reduction of 20.9% (R$ 142 million).

10.1.2) Tariff Revisions

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

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

Tariff Revisions
Distribution Company		Period		Date of Next Tariff Revision
CPFL Piratininga		Each 4 years		October 2011
CPFL Santa Cruz		Each 4 years		February 2012
CPFL Jaguariúna
CPFL Leste Paulista		Each 4 years		February 2012
CPFL Jaguari		Each 4 years		February 2012
CPFL Sul Paulista		Each 4 years		February 2012
CPFL Mococa		Each 4 years		February 2012
CPFL Paulista		Each 5 years		April 2013
RGE		Each 5 years		April 2013

Second Periodic Tariff Revision

10.1.2.1) CPFL Piratininga

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

In this second cycle of tariff revisions, the CPFL Piratininga electric power tariffs were readjusted by -10.11%, of which -10.94% referred to tariff repositioning and +0.83% referred to financial components outside the scope of the periodic tariff revision.

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

10.1.2.2) CPFL Santa Cruz and CPFL Jaguariúna Distributors

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

CPFL Santa Cruz

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

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

CPFL Leste Paulista

The electric power tariffs of CPFL Leste Paulista were readjusted by -1.65%, of which -2.69% referred to tariff repositioning and +1.04% referred to financial components outside the periodic tariff revision.

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

CPFL Jaguari

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

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

CPFL Sul Paulista

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

The value of factor Xe, established by Aneel was 1.31%, to be applied as a reduction factor in Parcel B, in real terms, on the next tariff readjustments.

 

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CPFL Mococa

The electric power tariffs of CPFL Mococa were readjusted by -5.65%, of which -8.40% referred to tariff repositioning and +2.75% referred to financial components outside the periodic tariff revision. The value of factor Xe, established by Aneel was 0.24%, to be applied as a reduction factor in Parcel B, in real terms, on the next tariff readjustments.

10.1.2.3) CPFL Paulista

On April 7^th 2008, through Homologated Resolution No. 627, Aneel established the provisional result of the second periodic tariff revision for CPFL Paulista, to take effect as of April 8^th 2008.

In this second cycle of tariff revisions, the electric power tariffs of CPFL Paulista were readjusted by -13.61%, of which -13.69% referred to tariff repositioning and +0.07% referred to financial components outside the periodic tariff revision.

The preliminary value of factor Xe, established by Aneel was 0.83%, to be applied as a reduction factor in Parcel B in real terms, on the next tariff readjustments.

10.1.2.4) RGE

On April 17^th 2008, through Homologated Resolution No. 636, Aneel established the provisional result of the second periodic tariff revision for RGE, to take effect as of April 19^th 2008.

In this second cycle of tariff revisions, the electric power tariffs of RGE were readjusted by +4.77%, of which -5.37% referred to tariff repositioning and +10.15% referred to financial components outside the periodic tariff revision.

The preliminary value of factor Xe, established by Aneel was 0.66%, to be applied as a reduction factor in Parcel B in real terms, on the next tariff readjustments.

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

Date of the Second Tariff Review		Oct/07		Feb/08		Feb/08		Feb/08		Feb/08		Feb/08		Apr/08		Apr/08
						CPFL Jaguariúna
Amounts by Company (R$ Million)		CPFL		CPFL Santa		CPFL Leste		CPFL		CPFL Sul		CPFL		CPFL
		Piratininga		Cruz		Paulista		Jaguari		Paulista		Mococa		Paulista		RGE
Verified Revenue		2,136.9		213.3		77.1		88.0		92.4		54.1		5,175.5		1,950.5
Parcel A		1,423.9		124.3		42.9		68.6		58.7		31.0		3,314.1		1,324.7
Parcel B
Reference Company		244.2		42.6		16.6		11.8		19.6		13.4		542.4		241.7
Delinquency		12.6		1.5		0.2		0.2		0.2		0.1		34.6		14.5
Gross Remuneration Base		154.5		14.9		11.7		4.9		7.7		3.7		351.3		179.7
Depreciation		81.1		10.6		4.3		2.5		4.2		1.8		252.1		97.1
Total Parcel B		492.5		69.5		32.8		19.4		31.8		19.0		1,180.4		533.1
Required Revenue (Parcels A + B)		1,916.4		193.8		75.6		88.0		90.5		50.0		4,494.5		1,857.8
(-) Other Revenues		(13.2)		(1.3)		(0.6)		(0.3)		(0.9)		(0.4)		(27.3)		(12.2)
Net Required Revenue		1,903.2		192.5		75.1		87.7		89.6		49.6		4,467.3		1,845.6
Financial Components		15.8		5.0		0.8		(1.1)		(0.5)		1.4		3.3		187.3
Periodic Tariff Revision		-10.94%		-9.73%		-2.69%		-0.35%		-2.98%		-8.40%		-13.69%		-5.37%
Financial Components		0.83%		2.60%		1.04%		-1.23%		-0.58%		2.75%		0.07%		10.15%
Periodic Tariff Revision - with Financial Components		-10.11%		-7.13%		-1.65%		-1.58%		-3.57%		-5.65%		-13.61%		4.77%
Xe Factor		0.73%		0.22%		1.07%		2.10%		1.31%		0.24%		0.83%		0.66%

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10.2) Commercialization Segment

Consolidated Income Statement - Commercialization (R$ Thousands)
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		486,365		460,627		5.6%		938,109		909,061		3.2%
Net Operating Revenues		414,293		396,351		4.5%		795,918		783,074		1.6%
EBITDA		76,136		80,275		-5.2%		118,874		193,463		-38.6%
NET INCOME		54,176		54,838		-1.2%		83,250		130,673		-36.3%
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

Operating Revenue

In 2Q08, gross operating revenue reached R$ 486 million, representing an increase of 5.6% (R$ 26 million). Net operating revenue was R$ 414 million, equivalent to an increase of 4.5% (R$ 18 million), due mainly to the acquisition of CMS Energy Brasil (R$ 17 million).

The added value service revenue (SVA), rendered by the companies CPFL Brasil and CPFL Serviços (company controlled by CPFL Jaguariúna), presented growth of 183%, rising from R$ 6 million in 2Q07 (CPFL Brasil) to R$ 17 million in 2Q08 (of which R$ 9 million was from CPFL Brasil and R$ 8 million was from CPFL Serviços).

In 1H08, gross operating revenue reached R$ 938 million, representing an increase of 3.2% (R$ 29 million). Net operating revenue was R$ 796 million, equivalent to growth of 1.6% (R$ 13 million).

EBITDA

In 2Q08, EBITDA was R$ 76 million, down 5.2% (R$ 4 million).

In 1H08, EBITDA was R$ 119 million, down 38.6% (R$ 75 million).

Net Income

In 2Q08, net income was R$ 54 million, a reduction of 1.2% (approximately R$ 1 million).

In 1H08, net income was R$ 83 million, a reduction of 36.3% (R$ 47 million).

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10.3) Generation Segment

Consolidated Income Statement - Generation (R$ Thousands)
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		216,433		180,250		20.1%		411,883		337,306		22.1%
Net Operating Revenues		201,810		166,517		21.2%		384,942		313,346		22.8%
Cost of Electric Power		(8,096)		(9,175)		-11.8%		(40,194)		(14,222)		182.6%
Operating Costs & Expenses		(45,019)		(36,377)		23.8%		(87,270)		(69,070)		26.4%
EBIT		148,695		120,965		22.9%		257,478		230,054		11.9%
EBITDA		166,397		140,459		18.5%		293,569		264,983		10.8%
Financial Income (Expense)		(83,873)		(75,795)		10.7%		(127,325)		(110,671)		15.0%
Operating Income		64,822		45,170		43.5%		130,153		119,383		9.0%
Income Before Taxes		63,955		45,170		41.6%		129,286		119,003		8.6%
NET INCOME		77,156		69,868		10.4%		118,320		158,568		-25.4%
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

Operating Revenue

Gross operating revenue in 2Q08 was R$ 216 million, representing growth of 20.1% (R$ 36 million).

Net operating revenue was R$ 202 million, representing growth of 21.2% (R$ 35 million), due mainly to the following factors:

(i) Start of operations of the Castro Alves Hydroelectric Facility (Ceran Complex), in March 2008, contributing with revenue gains of R$ 11 million;

(ii) Participation in Paulista Lajeado, acquired among the assets of CMS Energy Brasil (R$ 9 million);

(iii) Recognition of the agreement among Baesa shareholders (R$ 7 million);

(iv) Supplies by Furnas resulting from the 7.75% tariff updates in January (R$ 6 million);

(v) The transfer to CPFL Geração, in May 2008, of the energy contract produced by Baesa and commercialized by CPFL Paulista (R$ 2 million).

In 1H08, gross operating revenue was R$ 412 million, representing growth of 22.1% (R$ 75 million). Net operating revenue was R$ 385 million, equivalent to growth of 22.8% (R$ 72 million).

Cost of Electric Power

The cost of electric power service in 2Q08 was R$ 8 million, representing a reduction of 11.8% (R$ 1 million).

Operating Costs and Expenses

Operating costs and expenses in 2Q08 reached R$ 45 million, representing an increase of 23.8% (R$ 9 million). The main factors contributing to this variation are:

(i) Increase of 141.7% (R$ 6 million) in spending on other operating costs/expenses, mostly resulting from the participation in Paulista Lajeado, acquired together with the assets of CMS Energy Brasil;

(ii) Start of operations of the Castro Alves Hydroelectric Facility (Ceran Complex), in March 2008, contributing to an increase in costs of R$ 3 million.

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EBITDA

Based on the factors described, EBITDA, in 2Q08, was R$ 166 million, an increase of 18.5% (R$ 26 million).

In 1H08, EBITDA was R$ 294 million, an increase of 10.8% (R$ 29 million).

Financial Result

In 2Q08, the financial result, or the net financial expense was R$ 84 million, representing an increase of 10.7% (R$ 8 million) against the R$ 76 million registered in 2Q07. The main explanatory factors for this variation are:

(i) Financial Revenues: an increase of 13.4% (R$ 1 million), rising from R$ 4 million in 2Q07 to R$ 5 million in 2Q08, due mainly to increased earnings from financial investments;

(ii) Financial Expenses: an increase of 22.0% (R$ 10 million), rising from R$ 43 million in 2Q07 to R$ 53 million in 2Q08, due mainly to the following factors:

• Monetary and Foreign Exchange Updates item, which represented revenue of R$ 10 million in 2Q07, but in 2Q08 has turned into an expense of R$ 16 million, resulting in an expense increase of R$ 26 million, owing to the variation of the IGP-M which pegs the most important part of CPFL Geração’s debt, offset by the positive effect generated by the variation of the dollar to which the Enercan debt is pegged;

The increase in the Monetary and Foreign Exchange Updates item was partially offset by:

• Cost of Debt item, which registered a reduction of 24.2% (R$ 11 million);

• Banking Expenses item, which registered a reduction of R$ 3 million.

(iii) Interest on Own Capital: a reduction of 2.7% (R$ 1 million), falling from R$ 36 million in 2Q07 to R$ 35 million in 2Q08.

Net Income

In 2Q08, net income was R$ 77 million, an increase of 10.4% (R$ 7 million).

In 1H08, net income was R$ 118 million, a reduction of 25.4% (R$ 40 million), due to the acknowledgement in 1Q07 of the fiscal credit referring to the merger of Semesa into CPFL Geração, in the amount of R$ 40 million.

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Status of Generation Projects

14 de Julho Hydroelectric Facility (Ceran Complex)

The 14 de Julho Hydroelectric Facility is at the final stage of construction (95% of works completed: 97% of civil works and 100% of electro-mechanical equipment). The start of commercial operations is forecast for 4Q08. CPFL’s participation in the project is 65%, representing installed capacity and assured power of 65.0 MW and 32.5 median MW, respectively.

Foz do Chapecó Hydroelectric Facility

The Foz do Chapecó Hydroelectric Facility is still in the construction phase (41% of works completed: 43% of civil works and 35% of electro-mechanical equipment). The start of commercial operations is forecast for 3Q10. CPFL’s participation in the project is 51%, which represents installed capacity and assured power of 436.1 MW and 220.3 median MW, respectively. Energy from the Foz do Chapecó Hydroelectric Facility is 100% contracted:

• CPFL’s participation:

• 172.8 median MW already contracted with the CPFL Group at a price close to 100% of the Standard Value;

• 47.5 median MW (11% acquired in August 2006) traded on the Aneel auction on October 16^th 2007, at the price of R$ 131.49/MWh.

• Participation of other shareholders:

• 211.7 median MW sold on the Aneel auction on October 16^th 2007, at the price of R$ 131.49/MWh.

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11) ATTACHMENTS

11.1) Sales to the Captive Market by Distributors (in GWh)

CPFL Paulista
		2Q08		2Q07		Var.		1H08		1H07		Var.
		2Q08		2Q07		Var.		1H08		1H07		Var.
Residential		1,597		1,511		5.7%		3,200		3,039		5.3%
Industrial		1,400		1,387		0.9%		2,735		2,728		0.3%
Commercial		943		946		-0.3%		1,949		1,907		2.2%
Rural		182		256		-28.8%		388		461		-15.9%
Others		598		605		-1.0%		1,193		1,173		1.7%
Total		4,721		4,705		0.3%		9,465		9,308		1.7%
CPFL Piratininga
		2Q08		2Q07		Var.		1H08		1H07		Var.
Residential		694		654		6.0%		1,420		1,347		5.4%
Industrial		747		766		-2.5%		1,462		1,473		-0.7%
Commercial		396		391		1.3%		816		800		1.9%
Rural		40		46		-13.0%		84		90		-6.0%
Others		178		179		-0.7%		354		351		0.9%
Total		2,055		2,037		0.9%		4,136		4,061		1.9%
RGE
		2Q08		2Q07		Var.		1H08		1H07		Var.
Residential		418		405		3.1%		834		809		3.1%
Industrial		650		637		2.0%		1,264		1,240		1.9%
Commercial		251		238		5.3%		508		482		5.5%
Rural		265		243		8.9%		553		502		10.2%
Others		233		220		6.1%		469		442		6.0%
Total		1,817		1,743		4.2%		3,628		3,474		4.4%
CPFL Santa Cruz
		2Q08		2Q07		Var.		1H08		1H07		Var.
Residential		65		64		2.0%		133		127		4.4%
Industrial		38		32		16.8%		72		63		13.8%
Commercial		31		31		0.5%		64		63		1.3%
Rural		35		42		-17.5%		70		80		-12.7%
Others		32		32		-0.4%		63		62		1.7%
Total		201		202		-0.3%		402		396		1.5%
CPFL Santa Cruz
		2Q08		2Q07		Var.		1H08		1H07		Var.
Residential		74		72		2.3%		148		144		3.1%
Industrial		134		129		4.2%		271		258		5.1%
Commercial		32		31		3.7%		65		63		4.1%
Rural		57		60		-5.2%		112		111		1.3%
Others		31		30		1.3%		62		60		2.8%
Total		327		322		1.7%		658		635		3.7%
Note: Sales volume on the company CPFL Jaguariúna is considered in the CPFL Energia consolidated and consolidated by segment (distribution, generation and commercialization) as from July 2007.

Page 26 of 33

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11.2) Economic-Financial Performance by Distributors

(Pro-forma, R$ thousands)

Income Statement Summary by Distribution Company (R$ Thousands)
CPFL PAULISTA
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		1,556,628		1,652,589		-5.8%		3,352,683		3,275,167		2.4%
Net Operating Revenues		997,817		1,057,204		-5.6%		2,164,831		2,086,199		3.8%
Cost of Electric Power		(641,153)		(604,108)		6.1%		(1,400,227)		(1,153,263)		21.4%
Operating Costs & Expenses		(153,131)		(149,712)		2.3%		(295,466)		(289,746)		2.0%
EBIT		203,533		303,384		-32.9%		469,138		643,190		-27.1%
EBITDA		223,183		333,816		-33.1%		514,688		705,066		-27.0%
Financial Income (Expense)		(30,584)		(50,776)		-39.8%		(35,896)		(67,628)		-46.9%
Operating Income		172,949		252,608		-31.5%		433,242		575,562		-24.7%
Income Before Taxes		172,665		251,979		-31.5%		434,245		575,996		-24.6%
NET INCOME		127,909		193,431		-33.9%		299,971		406,848		-26.3%
CPFL PIRATININGA
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		705,600		791,901		-10.9%		1,429,021		1,600,129		-10.7%
Net Operating Revenues		461,314		478,651		-3.6%		942,156		973,413		-3.2%
Cost of Electric Power		(304,075)		(287,573)		5.7%		(669,918)		(582,589)		15.0%
Operating Costs & Expenses		(65,292)		(68,351)		-4.5%		(124,891)		(124,957)		-0.1%
EBIT		91,947		122,727		-25.1%		147,347		265,867		-44.6%
EBITDA		105,974		135,072		-21.5%		170,814		289,964		-41.1%
Financial Income (Expense)		(14,177)		(18,036)		-21.4%		(18,919)		(25,624)		-26.2%
Operating Income		77,770		104,691		-25.7%		128,428		240,243		-46.5%
Income Before Taxes		81,327		103,784		-21.6%		131,094		238,659		-45.1%
NET INCOME		61,201		75,475		-18.9%		93,983		164,487		-42.9%
RGE
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		635,467		621,757		2.2%		1,275,042		1,236,813		3.1%
Net Operating Revenues		417,205		410,266		1.7%		840,385		802,021		4.8%
Cost of Electric Power		(254,888)		(249,118)		2.3%		(529,626)		(499,917)		5.9%
Operating Costs & Expenses		(69,762)		(68,753)		1.5%		(135,839)		(130,816)		3.8%
EBIT		92,555		92,395		0.2%		174,920		171,288		2.1%
EBITDA		115,478		114,368		1.0%		217,697		212,371		2.5%
Financial Income (Expense)		(56,200)		(16,365)		243.4%		(72,065)		(31,422)		129.3%
Operating Income		36,355		76,030		-52.2%		102,855		139,866		-26.5%
Income Before Taxes		34,345		73,985		-53.6%		95,092		133,328		-28.7%
NET INCOME		62,525		48,852		28.0%		102,525		87,770		16.8%

Page 27 of 33

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Income Statement Summary by Distribution Company (R$ Thousands)(1)
CPFL SANTA CRUZ
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		68,187		68,054		0.2%		133,802		134,638		-0.6%
Net Operating Revenues		51,192		47,073		8.8%		97,477		92,704		5.1%
Cost of Electric Power		(24,407)		(24,370)		0.2%		(50,544)		(49,530)		2.0%
Operating Costs & Expenses		(10,707)		(11,991)		-10.7%		(25,476)		(23,402)		8.9%
EBIT		16,078		10,712		50.1%		21,457		19,772		8.5%
EBITDA		18,138		12,993		39.6%		25,716		24,184		6.3%
Financial Income (Expense)		(2,915)		2,166		-234.6%		(1,638)		2,803		-158.4%
Operating Income		13,163		12,878		2.2%		19,819		22,575		-12.2%
Income Before Taxes		13,165		12,797		2.9%		19,832		22,279		-11.0%
NET INCOME		12,219		10,661		14.6%		16,629		17,510		-5.0%
CPFL JAGUARIÚNA(2)
		2Q08		2Q07		Var.		1H08		1H07		Var.
Gross Operating Revenues		99,944		99,330		0.6%		196,946		194,067		1.5%
Net Operating Revenues		66,954		67,453		-0.7%		130,778		130,637		0.1%
Cost of Electric Power		(36,837)		(37,281)		-1.2%		(72,242)		(69,019)		4.7%
Operating Costs & Expenses		(12,737)		(20,706)		-38.5%		(27,554)		(37,530)		-26.6%
EBIT		17,380		9,466		83.6%		30,982		24,088		28.6%
EBITDA		19,894		12,125		64.1%		35,997		29,369		22.6%
Financial Income (Expense)		1,110		2,022		-45.1%		1,420		2,544		-44.2%
Operating Income		18,490		11,488		61.0%		32,402		26,632		21.7%
Income Before Taxes		18,488		11,349		62.9%		32,294		26,364		22.5%
NET INCOME		12,233		7,028		74.1%		21,966		16,656		31.9%

Notes:
(1) Financial information on the company CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007;
(2) CPFL Jaguariúna = information related to distributors’ consolidated: CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa.

Page 28 of 33

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11.3) Statement of Assets - CPFL Energia

(R$ thousands)

		Consolidated
ASSETS		06/30/2008		03/31/2008
CURRENT ASSETS
Cash and Banks		869,611		1,147,248
Consumers, Concessionaries and Licensees		1,734,280		1,880,053
Financial Investments		36,316		37,246
Recoverable Taxes		186,696		170,725
Allowance for Doubtful Accounts		(89,305)		(90,996)
Prepaid Expenses		96,641		69,383
Deferred Taxes		226,485		254,059
Materials and Supplies		15,351		14,817
Deferred Tariff Cost Variations		501,308		619,477
Derivative Contracts		-		5,609
Other Credits		94,139		106,099
TOTAL CURRENT ASSETS		3,671,522		4,213,720
NON-CURRENT ASSETS
Long-Term Liabilities
Consumers, Concessionaries and Licensees		186,190		191,975
Judicial Deposits		546,722		517,103
Financial Investments		103,870		102,493
Recoverable Taxes		96,903		99,281
Prepaid Expenses		14,615		13,969
Deferred Taxes		1,140,132		1,148,252
Deferred Tariff Cost Variations		277,103		173,802
Derivative Contracts		-		61,783
Other Credits		205,001		244,837
		2,570,536		2,553,495
Permanent Assets
Investments		2,617,536		2,661,497
Property, Plant and Equipment		7,374,944		7,240,127
Special Obbligation Linked to Concession		(962,354)		(943,140)
Deferred Charges		69,722		66,425
		9,099,848		9,024,909
TOTAL NON-CURRENT ASSETS		11,670,384		11,578,404
TOTAL ASSETS		15,341,906		15,792,124
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

Page 29 of 33

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11.4) Statement of Liabilities - CPFL Energia

(R$ thousands)

		Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY		06/30/2008		03/31/2008
LIABILITIES
CURRENT LIABILITIES
Suppliers		842,455		912,442
Accrued Interest on Debts		13,594		10,417
Accrued Interest on Debentures		90,990		85,074
Loans and Financing		519,459		639,001
Debentures		366,022		153,669
Employee Pension Plans		40,011		56,084
Regulatory Charges		72,760		73,454
Taxes, Fees and Contributions		492,299		527,061
Provision for Contingencies		15		780
Dividends and Interest on Equity		624,735		743,572
Accrued Liabilities		57,397		39,608
Deferred Tariff Gains Variations		231,027		310,602
Derivative Contracts		4,282		5
Other Accounts Payable		446,507		438,556
TOTAL CURRENT LIABILITIES		3,801,553		3,990,325
NON-CURRENT LIABILITIES
Accrued Interest on Debts		26,278		14,570
Loans and Financing		2,998,034		3,010,693
Debentures		2,213,947		2,392,539
Employee Pension Plans		590,726		611,158
Taxes, Fees and Contributions		26,908		14,393
Reserve for Contingencies		117,055		115,447
Deferred Tariff Gains Variations		111,345		32,166
Derivative Contracts		152,151		45,146
Other Accounts Payable		256,592		248,171
TOTAL NON-CURRENT LIABILITIES		6,493,036		6,484,283
NON-CONTROLLING SHAREHOLDERS' INTEREST		92,483		89,615
SHAREHOLDERS' EQUITY
Capital		4,741,175		4,741,175
Capital Reserves		16		16
Profit Reserves		213,643		213,643
Retained Earnings		-		273,067
TOTAL SHAREHOLDERS' EQUITY		4,954,834		5,227,901
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		15,341,906		15,792,124
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

Page 30 of 33

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11.5) Income Statement - CPFL Energia

(R$ thousands)

Consolidated
		2Q08		2Q07		Variation		1H08		1H07		Variation
OPERATING REVENUES
Eletricity Sales to Final Consumers		2,969,581		3,016,861		-1.57%		6,192,411		6,008,806		3.06%
Eletricity Sales to Distributors		206,565		153,500		34.57%		422,096		285,102		48.05%
Other Operating Revenues		262,976		239,226		9.93%		506,630		457,407		10.76%
		3,439,122		3,409,587		0.87%		7,121,137		6,751,315		5.48%
DEDUCTIONS FROM OPERATING REVENUES		(1,128,749)		(1,185,386)		-4.78%		(2,326,280)		(2,373,920)		-2.01%
NET OPERATING REVENUES		2,310,373		2,224,201		3.87%		4,794,857		4,377,395		9.54%
COST OF ELETRIC ENERGY SERVICES
Eletricity Purchased for Resale		(1,095,505)		(974,390)		12.43%		(2,446,044)		(1,845,573)		32.54%
Eletricity Network Usage Charges		(197,536)		(174,998)		12.88%		(399,662)		(354,991)		12.58%
		(1,293,041)		(1,149,388)		12.50%		(2,845,706)		(2,200,564)		29.32%
OPERATING COSTS AND EXPENSES
Personnel		(134,604)		(106,615)		26.25%		(254,074)		(203,952)		24.58%
Material		(15,224)		(12,156)		25.24%		(29,675)		(23,356)		27.06%
Outsourced Services		(86,729)		(78,015)		11.17%		(172,272)		(152,358)		13.07%
Other Operating Costs/Expenses		(59,883)		(61,485)		-2.61%		(118,555)		(108,801)		8.96%
Employee Pension Plans		21,016		12,581		67.05%		42,055		25,164		67.12%
Depreciation and Amortization		(92,373)		(94,953)		-2.72%		(188,908)		(184,232)		2.54%
Merged Goodwill Amortization		(9,545)		(8,166)		16.89%		(19,089)		(16,330)		16.90%
		(377,342)		(348,809)		8.18%		(740,518)		(663,865)		11.55%
EBITDA		717,933		814,100		-11.81%		1,363,553		1,682,989		-18.98%
EBIT		639,990		726,004		-11.85%		1,208,633		1,512,966		-20.11%
FINANCIAL INCOME (EXPENSE)
Financial Income		85,431		76,511		11.66%		194,496		178,655		8.87%
Financial Expenses		(226,409)		(232,656)		-2.69%		(453,281)		(441,846)		2.59%
Interest on Equity		-		-		-		-		-		-
		(140,978)		(156,145)		-9.71%		(258,785)		(263,191)		-1.67%
OPERATING INCOME		499,012		569,859		-12.43%		949,848		1,249,775		-24.00%
NONOPERATING INCOME (EXPENSE)
Nonoperating Income		6,627		2,700		145.44%		8,344		6,005		38.95%
Nonoperating Expenses		(6,341)		(5,025)		26.19%		(14,493)		(11,169)		29.76%
		286		(2,325)		-112.30%		(6,149)		(5,164)		19.07%
INCOME BEFORE TAXES ON INCOME		499,298		567,534		-12.02%		943,699		1,244,611		-24.18%
Social Contribution		(44,449)		(51,995)		-14.51%		(87,638)		(116,963)		-25.07%
Income Tax		(123,095)		(145,975)		-15.67%		(249,612)		(285,062)		-12.44%
INCOME BEFORE EXTRAORDINARY ITEM AND NON-
CONTROLLING SHAREHOLDERS' INTEREST		331,754		369,564		-10.23%		606,449		842,586		-28.03%
Non-Controlling Shareholders' Interest		(3,245)		(117)		2673.50%		(4,873)		(211)		2209.48%
Extraordinary Item net of Tax Effects		-		-		-		-		-		-
Reversal of Interest on Equity		-		-		-		-		-		-
NET INCOME		328,509		369,447		-11.08%		601,576		842,375		-28.59%
EARNINGS PER SHARE (R$)		0.68		0.77		-11.11%		1.25		1.76		-28.61%
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

Page 31 of 33

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11.6) Income Statement - Consolidated Distribution Segment

(Pro-forma, R$ thousands)

Consolidated
		2Q08		2Q07		Variation		1H08		1H07		Variation
OPERATING REVENUES
Eletricity Sales to Final Consumers		2,807,634		2,890,129		-2.85%		5,862,086		5,763,976		1.70%
Eletricity Sales to Distributors		16,768		11,693		43.40%		57,268		33,000		73.54%
Other Operating Revenues		238,717		231,583		3.08%		462,784		447,707		3.37%
		3,063,119		3,133,405		-2.24%		6,382,138		6,244,683		2.20%
DEDUCTIONS FROM OPERATING REVENUES		(1,071,255)		(1,141,024)		-6.11%		(2,211,684)		(2,292,219)		-3.51%
NET OPERATING REVENUES		1,991,864		1,992,381		-0.03%		4,170,454		3,952,464		5.52%
COST OF ELETRIC ENERGY SERVICES
Eletricity Purchased for Resale		(1,068,529)		(997,897)		7.08%		(2,331,768)		(1,941,786)		20.08%
Eletricity Network Usage Charges		(191,276)		(167,272)		14.35%		(387,447)		(343,513)		12.79%
		(1,259,805)		(1,165,169)		8.12%		(2,719,215)		(2,285,299)		18.99%
OPERATING COSTS AND EXPENSES
Personnel		(118,063)		(96,511)		22.33%		(224,427)		(184,712)		21.50%
Material		(12,823)		(10,830)		18.40%		(25,237)		(21,446)		17.68%
Outsourced Services		(73,322)		(64,869)		13.03%		(142,360)		(126,035)		12.95%
Other Operating Costs/Expenses		(46,447)		(55,091)		-15.69%		(90,114)		(95,403)		-5.54%
Employee Pension Plans		20,583		12,352		66.64%		41,161		24,706		66.60%
Depreciation and Amortization		(74,808)		(78,419)		-4.60%		(155,047)		(154,907)		0.09%
Merged Goodwill Amortization		(5,686)		(4,626)		22.91%		(11,371)		(9,251)		22.92%
		(310,566)		(297,994)		4.22%		(607,395)		(567,048)		7.12%
EBITDA		482,667		596,249		-19.05%		964,912		1,231,585		-21.65%
EBIT		421,493		529,218		-20.36%		843,844		1,100,117		-23.30%
FINANCIAL INCOME (EXPENSE)
Financial Income		75,761		67,548		12.16%		164,311		153,867		6.79%
Financial Expenses		(115,447)		(116,321)		-0.75%		(228,329)		(241,500)		-5.45%
Interest on Equity		(63,080)		(34,238)		84.24%		(63,080)		(34,238)		84.24%
		(102,766)		(83,011)		23.80%		(127,098)		(121,871)		4.29%
OPERATING INCOME		318,727		446,207		-28.57%		716,746		978,246		-26.73%
NONOPERATING INCOME (EXPENSE)
Nonoperating Income		6,609		1,362		385.24%		8,322		2,800		197.21%
Nonoperating Expenses		(5,346)		(5,024)		6.41%		(12,511)		(10,784)		16.01%
		1,263		(3,662)		-134.49%		(4,189)		(7,984)		-47.53%
INCOME BEFORE TAXES ON INCOME		319,990		442,545		-27.69%		712,557		970,262		-26.56%
Social Contribution		(29,198)		(39,787)		-26.61%		(62,843)		(87,673)		-28.32%
Income Tax		(77,785)		(108,576)		-28.36%		(177,720)		(240,212)		-26.02%
INCOME BEFORE EXTRAORDINARY ITEM AND NON-
CONTROLLING SHAREHOLDERS' INTEREST		213,007		294,182		-27.59%		471,994		642,377		-26.52%
Extraordinary Item net of Tax Effects		-		-		-		-		-		-
Non-Controlling Shareholders' Interest		-		-		-		-		-		-
Reversal of Interest on Equity		63,080		34,238		84.24%		63,080		34,238		84.24%
NET INCOME		276,087		328,420		-15.93%		535,074		676,615		-20.92%
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

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11.7) Income Statement - Consolidated Generation Segment

(Pro-forma, R$ thousands)

Consolidated
		2Q08		2Q07		Variation		1H08		1H07		Variation
OPERATING REVENUES
Eletricity Sales to Final Consumers		901		753		19.65%		1,835		1,724		6.44%
Eletricity Sales to Distributors		205,395		177,115		15.97%		397,776		333,716		19.20%
Other Operating Revenues		10,137		2,382		325.57%		12,272		1,866		557.66%
		216,433		180,250		20.07%		411,883		337,306		22.11%
DEDUCTIONS FROM OPERATING REVENUES		(14,623)		(13,733)		6.48%		(26,941)		(23,960)		12.44%
NET OPERATING REVENUES		201,810		166,517		21.19%		384,942		313,346		22.85%
COST OF ELETRIC ENERGY SERVICES
Eletricity Purchased for Resale		(669)		(704)		-4.97%		(25,196)		(1,260)		1899.68%
Eletricity Network Usage Charges		(7,427)		(8,471)		-12.32%		(14,998)		(12,962)		15.71%
		(8,096)		(9,175)		-11.76%		(40,194)		(14,222)		182.62%
OPERATING COSTS AND EXPENSES
Personnel		(6,616)		(6,445)		2.65%		(12,063)		(11,462)		5.24%
Material		(566)		(454)		24.67%		(1,057)		(840)		25.83%
Outsourced Services		(7,038)		(5,629)		25.03%		(14,283)		(11,610)		23.02%
Other Operating Costs/Expenses		(10,525)		(4,355)		141.68%		(20,491)		(9,849)		108.05%
Employee Pension Plans		447		229		95.20%		894		458		95.20%
Depreciation and Amortization		(16,862)		(16,183)		4.20%		(32,552)		(28,688)		13.47%
Merged Goodwill Amortization		(3,859)		(3,540)		9.01%		(7,718)		(7,079)		9.03%
		(45,019)		(36,377)		23.76%		(87,270)		(69,070)		26.35%
EBITDA		166,397		140,459		18.47%		293,569		264,983		10.79%
EBIT		148,695		120,965		22.92%		257,478		230,054		11.92%
FINANCIAL INCOME (EXPENSE)
Financial Income		4,555		4,017		13.39%		9,696		8,730		11.07%
Financial Expenses		(53,168)		(43,586)		21.98%		(101,761)		(83,175)		22.35%
Interest on Equity		(35,260)		(36,226)		-2.67%		(35,260)		(36,226)		-2.67%
		(83,873)		(75,795)		10.66%		(127,325)		(110,671)		15.05%
OPERATING INCOME		64,822		45,170		43.51%		130,153		119,383		9.02%
NONOPERATING INCOME (EXPENSE)
Nonoperating Income		17		1		-		17		5		-
Nonoperating Expenses		(884)		(1)		-		(884)		(385)		-
		(867)		-		-		(867)		(380)		-
INCOME BEFORE TAXES ON INCOME		63,955		45,170		41.59%		129,286		119,003		8.64%
Social Contribution		(5,410)		(2,782)		94.46%		(11,448)		(9,581)		19.49%
Income Tax		(14,944)		(8,746)		70.87%		(32,360)		12,920		-350.46%
INCOME BEFORE EXTRAORDINARY ITEM AND NON-
CONTROLLING SHAREHOLDERS' INTEREST		43,601		33,642		29.60%		85,478		122,342		-30.13%
Non-Controlling Shareholders' Interest		(1,705)		-		-		(2,418)		-		-
Extraordinary Item net of Tax Effects		-		-		-		-		-		-
Reversal of Interest on Equity		35,260		36,226		-2.67%		35,260		36,226		-2.67%
NET INCOME		77,156		69,868		10.43%		118,320		158,568		-25.38%
Note: Financial information on CPFL Jaguariúna is considered in the CPFL Energia consolidated statements and in the consolidated statements by segment (distribution, generation and commercialization) as from July 2007.

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

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