cplitr2q10_6k.htm - Provided by MZ Technologies
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

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

Commission File Number 32297
 

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

 
Rua Gomes de Carvalho, 1510, 14º andar, cj 1402
CEP 04547-005 - Vila Olímpia, São Paulo – SP
Federative Republic of Brazil
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

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

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

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

Yes _______ No ___X____

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

.


 

(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

company management is responsible for the information provided.

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

2 - COMPANY NAME

3 - CNPJ (Federal Tax ID)

01866-0

CPFL ENERGIA S.A.

02.429.144/0001-93

 

 

 

4 - NIRE (State Registration Number)

35300186133

 

01.02 - HEAD OFFICE

 

1 - ADDRESS

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

2 - DISTRICT

Vila Olímpia

3 - ZIP CODE

04547-005

4 - CITY

São Paulo

5 - STATE

SP

6 - AREA CODE

019

7 - TELEPHONE

3756-8018

8 - TELEPHONE

-

9 - TELEPHONE

-

10 - TELEX

 

11 - AREA CODE

019

12 - FAX

3756-8392

13 - FAX

-

14 - FAX

-

 

15 - E-MAIL

ri@cpfl.com.br

 

01.03 - INVESTOR RELATIONS OFFICER (Company Mailing Address)

 

1- NAME

Wilson P. Ferreira Junior

2 – ADDRESS

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

3 - DISTRICT

Jardim Santana

4 - ZIP CODE

13088-900

5 - CITY

Campinas

6 - STATE

SP

7 - AREA CODE

019

8 - TELEPHONE

3756-8704

9 - TELEPHONE

-

10 - TELEPHONE

-

11 - TELEX

 

12 - AREA CODE

019

13 - FAX

3756-8777

14 - FAX

-

15 - FAX

-

 

16 - E-MAIL

wferreira@cpfl.com.br

 

01.04 –REFERENCE / AUDITOR INFORMATION

 

CURRENT YEAR

CURRENT QUARTER

PREVIOUS QUARTER

1 - BEGINNING

2. END

3 - NUMBER

4 - BEGINNING

5 - END

6 - NUMBER

7 - BEGINNING

8 - END

01.01.2010

12.31.2010

2

04.01.2010

06.30.2010

1

01.01.2010

03.31.2010

 

09 - INDEPENDENT ACCOUNTANT

KPMG Auditores Independentes

10 - CVM CODE

00418-9

11. PARTNER IN CHARGE

Jarib Brisola Duarte Fogaça

12 - CPF (INDIVIDUAL TAX ID)

012.163.378-02

1


 

(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

01.05 - CAPITAL STOCK

 

Number of Shares

(in units)

1 CURRENT QUARTER

06/30/2010

2 PREVIOUS QUARTER

03/31/2010

3 SAME QUARTER PREVIOUS YEAR

06/30/2009

Paid-in Capital

1 – Common

481,137,130

479,910,938

479,910,938

2 – Preferred

0

0

0

3 – Total

481,137,130

479,910,938

479,910,938

Treasury Stock

4 - Common

0

0

0

5 - Preferred

0

0

0

6 – Total

0

0

0

 

01.06 - COMPANY PROFILE

 

1 - TYPE OF COMPANY

Commercial, Industrial and Other

2 - STATUS

Operational

3 - NATURE OF OWNERSHIP

Private National

4 - ACTIVITY CODE

3120– Administration and Participation Company - Electric Energy

5 - MAIN ACTIVITY

Holding

6 - CONSOLIDATION TYPE

Full

7 – TYPE OF INDEPENDENT ACCOUNTANTS REPORT

Unqualified

 

 

01.07 - COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

 

1 – ITEM

2 - CNPJ (Federal Tax ID)

3 - COMPANY NAME

 

01.08 - CASH DIVIDENDS

 

1 – ITEM

2 – EVENT

3 – APPROVAL

4 – TYPE

 

5 - DATE OF PAYMENT

6 - TYPE OF SHARE

7 - AMOUNT PER SHARE

01

AGO/E

04/26/2010

Dividend

04/30/2010

ON (Common shares)

1,3648726500

02

RCA

08/11/2010

Dividend

 

ON (Common shares)

1,6095795990

2


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

 

01.09 - SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR

 

1 - ITEM

2 - DATE OF CHANGE

3 - CAPITAL STOCK

(IN THOUSANDS OF REAIS)

4 - AMOUNT OF CHANGE

(IN THOUSANDS OF REAIS)

5 - NATURE OF CHANGE

7 - NUMBER OF SHARES ISSUED

(IN UNITS)

8 -SHARE PRICE WHEN ISSUED

(IN REAIS)

 

 

 

01.10 - INVESTOR RELATIONS OFFICER

 

 

1- DATE

 

2 – SIGNATURE

3


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

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

 

1 – Code

2 – Description

3 – 06/30/2010

4 – 03/31/2010

1

Total assets

6,433,621

6,611,563

1.01

Current assets

1,422,373

1,223,467

1.01.01

Cash and cash equivalents

70,972

217,958

1.01.02

Credits

1,348,610

1,003,175

1.01.02.01

Accounts receivable

0

0

1.01.02.02

Other receivables

1,348,610

1,003,175

1.01.02.02.01

Dividends and interest on shareholders’ equity

1,230,433

901,882

1.01.02.02.02

Financial investments

40,209

39,615

1.01.02.02.03

Recoverable taxes

61,265

44,763

1.01.02.02.04

Deferred taxes

16,320

16,320

1.01.02.02.05

Prepaid expenses

286

317

1.01.02.02.06

Derivatives

97

278

1.01.03

Materials and supplies

0

0

1.01.04

Other

2,791

2,334

1.02

Noncurrent assets

5,011,248

5,388,096

1.02.01

Long-term assets

228,660

244,727

1.02.01.01

Other receivables

204,927

218,641

1.02.01.01.01

Financial investments

51,675

57,338

1.02.01.01.02

Recoverable taxes

2,787

2,787

1.02.01.01.03

Deferred taxes

149,024

157,200

1.02.01.01.04

Prepaid expenses

1,038

1,119

1.02.01.01.05

Escrow deposits

403

197

1.02.01.02

Related parties

23,723

26,086

1.02.01.02.01

Associated companies

0

0

1.02.01.02.02

Subsidiaries

23,723

26,086

1.02.01.02.03

Other related parties

0

0

1.02.01.03

Other

10

0

1.02.02

Permanent assets

4,782,588

5,143,369

1.02.02.01

Investments

4,776,038

5,138,834

1.02.02.01.01

Associated companies

0

0

1.02.02.01.02

Associated companies - goodwill

0

0

1.02.02.01.03

Permanent equity interests

3,319,495

3,678,260

1.02.02.01.04

Permanent equity interests - goodwill

1,469,371

1,473,402

1.02.02.01.05

Other investments

0

0

1.02.02.01.06

Permanent equity interests – negative goodwill

(12,828)

(12,828)

1.02.02.02

Property, plant and equipment

170

125

1.02.02.03

Intangible assets

6,380

4,410

1.02.02.04

Deferred charges

0

0

4


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

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

 

1 – Code

2 - Description

3 – 06/30/2010

4 – 03/31/2010

2

Total liabilities

6,433,621

6,611,563

2.01

Current liabilities

844,444

686,787

2.01.01

Loans and financing

0

0

2.01.02

Debentures

13,673

3,122

2.01.02.01

Interest on debentures

13,673

3,122

2.01.03

Suppliers

1,590

2,665

2.01.04

Taxes and social contributions payable

28,060

178

2.01.05

Dividends

791,163

672,013

2.01.06

Reserves

0

0

2.01.07

Related parties

0

0

2.01.08

Other

9,958

8,809

2.01.08.01

Accrued liabilities

139

100

2.01.08.02

Derivatives

103

0

2.01.08.03

Other

9,716

8,709

2.02

Noncurrent liabilities

451,009

451,635

2.02.01

Long-term liabilities

451,009

451,635

2.02.01.01

Loans and financing

0

0

2.02.01.02

Debentures

450,000

450,000

2.02.01.03

Reserves

393

187

2.02.01.03.01

Reserve for contingencies

393

187

2.02.01.04

Related parties

0

0

2.02.01.05

Advance for future capital increase

0

0

2.02.01.06

Other

616

1,448

2.02.01.06.01

Derivatives

598

1,430

2.02.01.06.02

Other

18

18

2.03

Deferred income

0

0

2.05

Shareholders’ equity

5,138,168

5,473,141

2.05.01

Capital

4,793,424

4,741,175

2.05.02

Capital reserves

16

16

2.05.03

Revaluation reserves

0

0

2.05.03.01

Own assets

0

0

2.05.03.02

Subsidiary/associated companies

0

0

2.05.04

Profit reserves

341,751

341,751

2.05.04.01

Legal reserves

341,751

341,751

2.05.04.02

Statutory reserves

0

0

2.05.04.03

For contingencies

0

0

2.05.04.04

Unrealized profits

0

0

2.05.04.05

Profit retention

0

0

2.05.04.06

Special reserve for undistributed dividends

0

0

2.05.04.07

Other profit retention

0

0

2.05.05

Equity valuation adjustments

0

0

2.05.05.01

Adjustments of financial investments

0

0

2.05.05.02

Adjustments of cumulative translation

0

0

2.05.05.03

Adjustments of business combinations

0

0

2.05.06

Accumulated profit or loss

2,977

390,199

2.05.07

Advance for future capital increase

0

0

5


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

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

 

1 - Code

2 – Description

3 - 04/01/2010 to 06/30/2010

4 - 01/01/2010 to 06/30/2010

5 - 04/01/2009 to 06/30/2009

6 - 01/01/2009 to 06/30/2009

3.01

Gross operating revenues

2

2

0

0

3.02

Deductions

0

0

0

0

3.03

Net operating revenues

2

2

0

0

3.04

Cost of sales and/or services

0

0

0

0

3.05

Gross operating income

2

2

0

0

3.06

Operating income (expense)

509,879

899,946

414,908

697,444

3.06.01

Selling

0

0

0

0

3.06.02

General and administrative

(6,226)

(11,022)

(4,071)

(7,883)

3.06.03

Financial

92,775

94,245

87,805

80,196

3.06.03.01

Financial income

105,371

117,995

101,742

109,972

3.06.03.01.01

Interest on Shareholders’ Equity

98,669

98,669

102,134

102,134

3.06.03.01.02

Other Financial Income

6,702

19,326

(392)

7,838

3.06.03.02

Financial expense

(12,596)

(23,750)

(13,937)

(29,776)

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expense

(36,878)

(72,240)

(38,283)

(75,470)

3.06.05.01

Amortization of intangible asset of concession

(36,878)

(72,240)

(37,187)

(74,374)

3.06.05.02

Operating expesnse

0

0

(1.096)

(1.096)

3.06.06

Equity in subsidiaries

460,208

888,963

369,457

700,601

3.07

Operating income

509,881

899,948

414,908

697,444

3.08

Non operating income

0

0

0

0

3.08.01

Income

0

0

0

0

3.08.02

Expense

0

0

0

0

6


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

1 - Code

2 – Description

3 - 04/01/2010 to 06/30/2010

4 - 01/01/2010 to 06/30/2010

5 - 04/01/2009 to 06/30/2009

6 - 01/01/2009 to 06/30/2009

3.09

Income before taxes on income and profit sharing

509,881

899,948

414,908

697,444

3.10

Income tax and social contribution

(18,805)

(18,805)

(18,581)

(18,581)

3.10.01

Social Contribuition

(4,361)

(4,361)

(3,698)

(3,698)

3.10.02

Income Tax

(14,444)

(14,444)

(14,883)

(14,883)

3.11

Deferred income tax

(8,177)

(8,045)

(5,225)

(5,058)

3.11.01

Deferred social contribution

(1,913)

(1,890)

(1,583)

(1,653)

3.11.02

Deferred income tax

(6,264)

(6,155)

(3,642)

(3,405)

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders equity

(98,669)

(98,669)

(102,134)

(102,134)

3.15

Net income

384,230

774,429

288,968

571,671

 

SHARES OUTSTANDING EX-TREASURY STOCK (in units)

481,137,130

481,137,130

479,910,938

479,910,938

 

NET INCOME PER SHARE (Reais)

0,79859

1,60958

0,60213

1,19120

 

NET LOSS PER SHARE (Reais)

 

 

 

 

7


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

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

 

1 - Code

2 - Description

3 - 04/01/2010 to 06/30/2010

4 - 01/01/2010 to 06/30/2010

5 - 04/01/2009 to 06/30/2009

6 - 01/01/2009 to 06/30/2009

4.01

Net cash from operating activities

491,792

481,769

538,639

518,756

4.01.01

Cash generated from operations

(7,796)

(6,593)

(744)

(1,331)

4.01.01.01

Net income, including income tax and social contribution

411,212

801,279

312,774

595,310

4.01.01.02

Noncontrolling interest

0

0

0

0

4.01.01.03

Depreciation and amortization

36,914

72,306

37,216

74,433

4.01.01.04

Reserve for contingencies

0

0

9,447

9,447

4.01.01.05

Interest and monetary and exchange restatement

4,286

8,785

8,180

18,984

4.01.01.06

Equity in subsidiaries

(460,208)

(888,963)

(369,457)

(700,601)

4.01.01.07

Loss on the noncurrent assets disposal

0

0

1,096

1,096

4.01.02

Variation on assets and liabilities

499,588

488,362

539,383

520,087

4.01.02.01

Dividend and interest on shareholders’ equity received

493,015

500,014

540,768

551,768

4.01.02.02

Recoverable taxes

(1,691)

(2,144)

(1,016)

(2,206)

4.01.02.03

Escrow deposits

(206)

(393)

(2)

(2)

4.01.02.04

Other operating assets

(546)

(283)

69

153

4.01.02.05

Suppliers

(1,075)

(1,068)

232

(56)

4.01.02.06

Other taxes and social contributions

9,077

9,153

59

33

4.01.02.07

Interest on debts - paid

0

(19,398)

1

(29,817)

4.01.02.08

Other operating liabilities

1,014

2,481

(728)

214

4.01.03

Other

0

0

0

0

4.02

Net cash in investing activities

13,524

22,617

8,171

75,496

4.02.01

Decrease of capital in subsidiaries

0

0

0

60,236

4.02.02

Acquisition of property, plant and equipment

(45)

(169)

0

0

4.02.03

Financial investments

11,179

21,239

10,324

20,066

4.02.04

Acquisition of intangible assets – other

0

0

(83)

(112)

4.02.05

Sale of noncurrent assets

0

(45)

0

0

4.02.06

Advances for future capital increase

(95)

(95)

(90)

(100)

4.02.07

Intercompany loans with subsidiaries and associated companies

2,413

1,614

(1,980)

(4,594)

4.02.08

Other

72

73

0

0

4.03

Net cash in financing activities

(652,302)

(652,540)

(603,516)

(603,779)

4.03.01

Loans, financing and debentures obtained

0

0

0

0

4.03.02

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

0

(198)

0

(239)

4.03.03

Dividend and interest on shareholders’ equity paid

(652,302)

(652,342)

(603,516)

(603,540)

4.04

Exchange variation on cash and cash equivalents

0

0

0

0

4.05

Increase (decrease) in cash and cash equivalents

(146,986)

(148,154)

(56,706)

(9,527)

4.05.01

Cash and cash equivalents at beginning of period

217,958

219,126

62,881

15,702

4.05.02

Cash and cash equivalents at end of period

70,972

70,972

6,175

6,175

8


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

05.01 –STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM APRIL 01, 2010 TO JUNE 30, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

0

341,751

390,199

0

5,473,141

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

341,751

390,199

0

5,473,141

5.04

Net income / Loss for the period

0

0

0

0

384,230

0

384,230

5.05

Distribution

0

0

0

0

(774,429)

0

(774,429)

5.05.01

Dividend

0

0

0

0

(774,429)

0

(774,429)

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

52,249

0

0

0

0

0

52,249

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

 

9


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

2,977

0

2,977

5.13

Final balance

4,793,424

16

0

341,751

2,977

0

5,138,168

 

10


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

05.02 –STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO JUNE 30, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

0

341,751

0

0

5,082,942

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

341,751

0

0

5,082,942

5.04

Net income / Loss for the period

0

0

0

0

774,429

0

774,429

5.05

Distribution

0

0

0

0

(774,429)

0

(774,429)

5.05.01

Dividend

0

0

0

0

(774,429)

0

(774,429)

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

52,249

0

0

0

0

0

52,249

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

 

11


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

1 - CVM CODE

01866-0

2 - COMPANY NAME

CPFL ENERGIA S.A.

3 - CNPJ (Federal Tax ID)

02.429.144/0001-93

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

2,977

0

2,977

5.13

Final balance

4,793,424

16

0

341,751

2,977

0

5,138,168

12


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

1 - Code

2 – Description

3 – 06/30/2010

4 – 03/31/2010

1

Total assets

17,342,478

17,278,753

1.01

Current assets

4,261,514

4,527,925

1.01.01

Cash and cash equivalents

1,375,099

1,684,702

1.01.02

Credits

2,680,769

2,671,464

1.01.02.01

Accounts receivable

1,832,239

1,801,794

1.01.02.01.01

Consumers, concessionaires and licensees

1,918,149

1,882,494

1.01.02.01.02

Allowance for doubtful accounts

(85,910)

(80,700)

1.01.02.02

Other credits

848,530

869,670

1.01.02.02.01

Financial investments

40,209

39,615

1.01.02.02.02

Recoverable taxes

224,052

174,406

1.01.02.02.03

Deferred taxes

163,501

163,148

1.01.02.02.04

Deferred tariff cost variations

226,090

337,309

1.01.02.02.05

Prepaid expenses

194,274

145,353

1.01.02.02.06

Derivatives

404

9,839

1.01.03

Materials and supplies

17,631

16,735

1.01.04

Other

188,015

155,024

1.02

Noncurrent assets

13,080,964

12,750,828

1.02.01

Long-term assets

2,420,784

2,435,211

1.02.01.01

Other credits

2,254,487

2,272,171

1.02.01.01.01

Consumers, concessionaires and licensees

199,300

216,139

1.02.01.01.02

Financial investments

70,143

75,394

1.02.01.01.03

Recoverable taxes

119,935

109,284

1.02.01.01.04

Deferred taxes

1,059,493

1,103,699

1.02.01.01.05

Deferred tariff cost variations

46,645

30,765

1.02.01.01.06

Prepaid expenses

48,320

50,442

1.02.01.01.07

Escrow deposits

701,644

686,348

1.02.01.01.08

Derivatives

9,007

100

1.02.01.02

Related parties

0

0

1.02.01.02.01

Associated companies

0

0

1.02.01.02.02

Subsidiaries

0

0

1.02.01.02.03

Other related parties

0

0

1.02.01.03

Other

166,297

163,040

1.02.02

Permanent assets

10,660,180

10,315,617

1.02.02.01

Investments

104,916

104,858

1.02.02.01.01

Associated companies

0

0

1.02.02.01.02

Interest in subsidiaries

0

0

1.02.02.01.03

Other investments

117,744

117,686

1.02.02.01.06

Permanent equity interests – negative goodwill

(12,828)

(12,828)

1.02.02.02

Property, plant and equipment

8,012,355

7,671,249

1.02.02.03

Intangible assets

2,529,610

2,525,301

1.02.02.04

Deferred charges

13,299

14,209

13


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

1 - Code

2 – Description

3 – 06/30/2010

4 – 03/31/2010

2

Total liabilities

17,342,478

17,278,753

2.01

Current liabilities

4,633,854

5,455,725

2.01.01

Loans and financing

541,928

1,396,670

2.01.01.01

Accrued interest on debts

34,308

84,687

2.01.01.02

Loans and financing

507,620

1,311,983

2.01.02

Debentures

640,417

574,669

2.01.02.01

Accrued interest on debentures

114,217

74,838

2.01.02.02

Debentures

526,200

499,831

2.01.03

Suppliers

1,078,422

994,669

2.01.04

Taxes and social contributions payable

524,717

532,616

2.01.05

Dividends and interest on equity

799,318

681,185

2.01.06

Reserves

0

0

2.01.07

Related parties

0

0

2.01.08

Other

1,049,052

1,275,916

2.01.08.01

Employee pension plans

43,006

41,954

2.01.08.02

Regulatory charges

109,707

100,028

2.01.08.03

Accrued liabilities

63,824

50,384

2.01.08.04

Deferred tariff gain variations

336,713

487,668

2.01.08.05

Deferred tax debts

158

200

2.01.08.06

Derivatives

1,281

0

2.01.08.07

Other

494,363

595,682

2.02

Noncurrent liabilities

7,497,551

6,262,692

2.02.01

Long-Term liabilities

7,497,551

6,262,692

2.02.01.01

Loans and financing

3,748,114

2,979,976

2.02.01.01.01

Accrued Interest on debts

8,733

14,424

2.02.01.01.02

Loans and financing

3,739,381

2,965,552

2.02.01.02

Debentures

2,946,876

2,551,198

2.02.01.03

Reserves

127,655

42,259

2.02.01.03.01

Reserve for contingencies

127,655

42,259

2.02.01.04

Related parties

0

0

2.02.01.05

Advance for future capital increase

0

0

2.02.01.06

Other

674,906

689,259

2.02.01.06.01

Suppliers

21,328

31,992

2.02.01.06.02

Employee pension plans

344,620

383,894

2.02.01.06.03

Taxes and social contributions payable

1,309

1,476

2.02.01.06.04

Deferred tax debts

284

4,677

2.02.01.06.05

Deferred tariff gain variations

115,395

64,647

2.02.01.06.06

Derivatives

1,134

10,767

2.02.01.06.07

Other

190,836

191,806

2.03

Deferred revenue

0

0

2.04

Noncontrolling shareholders’ interest

72,905

87,195

2.05

Shareholders’ equity

5,138,168

5,473,141

2.05.01

Capital

4,793,424

4,741,175

2.05.02

Capital reserves

16

16

2.05.03

Revaluation reserves

0

0

2.05.03.01

Own assets

0

0

2.05.03.02

Subsidiary/associated companies

0

0

2.05.04

Profit reserves

341,751

341,751

2.05.04.01

Legal

0

0

2.05.04.02

Statutory

0

0

2.05.04.03

For contingencies

0

0

2.05.04.04

Unrealized profits

0

0

2.05.04.05

Profit retention

341,751

341,751

2.05.04.06

Special reserve for undistributed dividends

0

0

2.05.04.07

Other revenue reserves

0

0

2.05.05

Equity valuation adjustments

0

0

2.05.05.01

Adjustment of financial investments

0

0

2.05.05.02

Adjustment of cumulative translation

0

0

2.05.05.03

Adjustment of business combinations

0

0

2.05.06

Accumulated profit or loss

2,977

390,199

2.05.07

Advance for future capital increase

0

0

14


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

1 – Code

2 - Description

3 - 04/01/2010 to 06/30/2010

4 - 01/01/2010 to 06/30/2010

5 - 04/01/2009 to 06/30/2009

6 - 01/01/2009 to 06/30/2009

3.01

Operating revenues

4,009,550

8,118,357

3,926,774

7,514,529

3.02

Deductions from operating revenues

(1,369,541)

(2,693,284)

(1,278,301)

(2,480,088)

3.02.01

ICMS (State VAT)

(670,889)

(1,350,352)

(650,338)

(1,260,961)

3.02.02

PIS (Tax on Revenue)

(64,894)

(130,982)

(62,548)

(119,665)

3.02.03

COFINS (Tax on Revenue)

(298,914)

(603,370)

(288,099)

(551,196)

3.02.04

ISS (Tax on Service Revenue)

(724)

(1,517)

(874)

(1,776)

3.02.05

Global reversal reserve – RGR

(16,994)

(32,364)

(13,162)

(25,833)

3.02.06

Fuel consumption account  - CCC

(149,108)

(249,384)

(118,540)

(248,705)

3.02.07

Energy development account - CDE

(123,558)

(242,719)

(110,806)

(209,585)

3.02.08

Research and Development and Energy Efficiency Programs

(29,787)

(57,022)

(25,122)

(47,827)

3.02.09

PROINFA

(14,673)

(25,571)

(8,819)

(14,547)

3.02.10

Emergency Charges (ECE/EAEE)

0

(3)

7

7

3.03

Net operating revenues

2,640,009

5,425,073

2,648,473

5,034,441

3.04

Cost of electric energy services

(1,760,493)

(3,617,482)

(1,880,188)

(3,546,156)

3.04.01

Electric energy purchased for resale

(1,230,627)

(2,555,142)

(1,329,525)

(2,535,143)

3.04.02

Electric energy network usage charges

(298,289)

(610,876)

(309,228)

(546,198)

3.04.03

Personnel

(85,585)

(173,149)

(87,196)

(163,091)

3.04.04

Employee pension plans

21,800

43,599

(921)

(1,840)

3.04.05

Material

(15,704)

(29,069)

(13,205)

(25,276)

3.04.06

Outsourced services

(46,735)

(82,150)

(40,674)

(74,300)

3.04.07

Depreciation and amortization

(88,640)

(177,617)

(88,166)

(175,518)

3.04.08

Other

(15,446)

(30,642)

(10,038)

(22,208)

3.04.09

Cost of services rendered to third parties

(1,267)

(2,436)

(1,235)

(2,582)

3.05

Gross operating income

879,516

1,807,591

768,285

1,488,285

3.06

Operating income (expense)

(278,812)

(591,595)

(313,227)

(579,509)

3.06.01

Sales and marketing

(79,948)

(143,858)

(68,115)

(115,807)

3.06.02

General and administrative

(69,583)

(187,924)

(89,898)

(187,838)

3.06.03

Financial income (expense)

(73,988)

(149,983)

(93,835)

(156,795)

3.06.03.01

Financial income

107,277

206,173

73,853

193,128

3.06.03.02

Financial expenses

(181,265)

(356,156)

(167,688)

(349,923)

3.06.03.02.01

Financial expenses

0

0

(167,279)

(349,514)

3.06.03.02.02

Interest on Shareholders’ Equity

0

0

(409)

(409)

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expenses

(55,293)

(109,830)

(61,379)

(119,069)

3.06.05.01

Amortization of intangible asset of concession

(46,203)

(90,891)

(46,724)

(93,449)

3.06.05.02

Other operating expense

(9,090)

(18,939)

(14,655)

(25,620)

3.06.06

Equity in subsidiaries

0

0

0

0

3.07

Operating income

600,704

1,215,996

455,058

908,776

3.08

Nonoperating income (expense)

0

0

0

0

3.08.01

Nonoperating income

0

0

0

0

3.08.02

Nonoperating expense

0

0

0

0

3.09

Income before taxes on income and profit sharing

600,704

1,215,996

455,058

908,776

3.10

Income tax and social contribution

(174,348)

(384,990)

(117,980)

(254,320)

3.10.01

Social contribution

(46,520)

(102,080)

(31,000)

(67,831)

3.10.02

Income tax

(127,828)

(282,910)

(86,980)

(186,489)

3.11

Deferred income tax and social contribution

(39,703)

(51,735)

(45,820)

(78,409)

3.11.01

Social contribution

(10,268)

(14,247)

(11,885)

(20,229)

3.11.02

Income tax

(29,435)

(37,488)

 (33,935)

(58,180)

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders’ equity

0

0

409

409

3.14

Noncontrolling shareholders’ interest

(2,423)

(4,842)

(2,699)

(4,785)

3.15

Net income

384,230

774,429

288,968

571,671

 

SHARES OUTSTANDING EX-TREASURY STOCK (units)

481,137,130

481,137,130

479,910,938

479,910,938

 

NET INCOME PER SHARE (Reais)

0,79859

1,60958

0,60213

1,19120

 

LOSS PER SHARE (Reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

1 - Code

2 - Description

3 – 04/01/2010 to 06/30/2010

4 – 01/01/2010 to 06/30/2010

5 – 04/01/2009 to 06/30/2009

6 – 01/01/2009 to 06/30/2009

4.01

Net cash from operating activities

498,365

1,164,401

619,163

911,944

4.01.01

Cash generated from operations

816,356

1,687,423

745,062

1,499,014

4.01.01.01

Net income, including income tax and social contribution

598,281

1,211,154

452,768

904,400

4.01.01.02

Interest of noncontrolling shareholders

2,423

4,842

2,699

4,785

4.01.01.03

Depreciation and amortization 

142,822

284,443

143,736

286,754

4.01.01.04

Reserve for contingencies

(38,244)

(34,651)

6,471

6,671

4.01.01.05

Interest and monetary and exchange restatement

130,640

261,693

130,297

281,687

4.01.01.06

Gain / (loss) on pension plan

(21,800)

(43,599)

921

1,840

4.01.01.07

Equity in subsidiaries

0

0

0

0

4.01.01.08

Losses on disposal of noncurrent assets

2,513

3,944

7,784

11,288

4.01.01.09

Deferred taxes - PIS and COFINS

(279)

(403)

386

1,589

4.01.02

Variation on assets and liabilities

(317,991)

(523,022)

(125,899)

(587,070)

4.01.02.01

Consumers, Concessionaires and Licensees

(13,606)

(47,092)

(19,866)

(101,171)

4.01.02.02

Recoverable Taxes

(45,486)

(28,179)

1,173

(689)

4.01.02.03

Deferred Tariff Costs Variations

95,339

102,891

322,050

238,907

4.01.02.04

Escrow deposits

(4,944)

(27,462)

(5,913)

(4,501)

4.01.02.05

Overcontracting

(43,473)

(34,732)

(18,702)

(14,213)

4.01.02.06

Other operating assets

(33,949)

(52,206)

(5,430)

4,594

4.01.02.07

Suppliers

73,089

35,747

(26,930)

(21,734)

4.01.02.08

Taxes and social contributions paid

(154,672)

(333,477)

(130,213)

(304,814)

4.01.02.09

Other taxes and social contributions

(35,886)

(18,754)

(9,671)

8,588

4.01.02.10

Deferred Tariff Gains Variations

(100,207)

29,954

(54,183)

(48,581)

4.01.02.11

Employee Pension Plans

(16,422)

(38,625)

(11,440)

(35,512)

4.01.02.12

Interest paid on debt

(84,970)

(231,125)

(126,565)

(260,094)

4.01.02.13

Regulatory Charges

9,679

46,708

(5,146)

(21,932)

4.01.02.14

Overcontracting

(117,220)

(95,371)

(42,665)

153

4.01.02.15

Other operating liabilities

154,737

168,701

7,602

(26,071)

4.01.03

Other

0

0

0

0

4.02

Net cash in investing activities

(425,571)

(702,841)

(256,664)

(499,400)

4.02.01

Acquisition of  Interest in subsidiaries

(117)

(117)

(133)

(133)

4.02.02

Addition to property, plant and equipment

(433,624)

(707,893)

(265,350)

(526,498)

4.02.03

Financial investments

14,555

17,746

30,948

41,939

4.02.04

Increase of special obligations

17,794

31,004

10,248

24,386

4.02.05

Acquisition of intangible assets – other

(22,538)

(46,114)

(21,263)

(32,772)

4.02.06

Sale of noncurrent assets

1,857

4,709

3,605

7,454

4.02.07

Other

(3,498)

(2,176)

(14,719)

(13,776)

4.03

Net cash in financing activities

(382,397)

(559,636)

(500,333)

(419,335)

4.03.01

Loans, financing and debentures obtained

640,541

800,102

667,864

904,330

4.03.02

Payments of Loans, financing and debentures , net of derivatives

(366,860)

(700,660)

(560,547)

(715,986)

4.03.03

Dividend and interest on shareholders’ equity paid

(656,078)

(659,078)

(607,650)

(607,679)

4.04

Exchange variation on cash and cash equivalents

0

0

0

0

4.05

Increase (decrease) in cash and cash equivalents

(309,603)

(98,076)

(137,834)

(6,791)

4.05.01

Cash and cash equivalents at beginning of period

1,684,702

1,473,175

868,890

737,847

4.05.02

Cash and cash equivalents at end of period

1,375,099

1,375,099

731,056

731,056

16


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

11.01 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM APRIL 01, 2010 TO JUNE 30, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

0

341,751

390,199

0

5,473,141

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

341,751

390,199

0

5,473,141

5.04

Net income / Loss for the period

0

0

0

0

384,230

0

384,230

5.05

Distribution

0

0

0

0

(774,429)

0

(774,429)

5.05.01

Dividend

0

0

0

0

(774,429)

0

(774,429)

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

52,249

0

0

0

0

0

52,249

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

2,977

0

2,977

5.13

Final balance

4,793,424

16

0

341,751

2,977

0

5,138,168

 

17


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

11.02 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO JUNE 30, 2010 (in thousands of Brazilian reais – R$)

 

1 - Code

2 – Description

3 - Capital

4 – Capital Reserves

5 – Revaluation Reserves

6 – Profit Reserves

7 – Retained earnings

8 – Equity valuation adjustments

9 – Shareholders’ Equity Total

5.01

Opening balance

4,741,175

16

0

341,751

0

0

5,082,942

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

341,751

0

0

5,082,942

5.04

Net income / Loss for the period

0

0

0

0

774,429

0

774,429

5.05

Distribution

0

0

0

0

(774,429)

0

(774,429)

5.05.01

Dividend

0

0

0

0

(774,429)

0

(774,429)

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

0

0

0

0

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

0

0

0

5.07.01

Adjustment of financial Investments

0

0

0

0

0

0

0

5.07.02

Adjustment of cumulative translation

0

0

0

0

0

0

0

5.07.03

Adjustment of business combinations

0

0

0

0

0

0

0

5.08

Increase/Decrease on capital

52,249

0

0

0

0

0

52,249

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

2,977

0

2,977

5.13

Final balance

4,793,424

16

0

341,751

2,977

0

5,138,168

18


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

06.01 – NOTES TO THE INTERIM FINANCIAL STATEMENTS

 

CPFL ENERGIA S.A.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2010

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

 

( 1 )        OPERATIONS

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

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

 

June 30, 2010

March 31, 2010

Subsidiary

Consolidation Method

Equity Interest - %

Equity Interest - %

 

Direct

Indirect

Direct

Indirect

Energy Distribution

 Companhia Paulista de Força e Luz ("CPFL Paulista")

Full

      100.00

              -  

         100.00

                    -  

 Companhia Piratininga de Força e Luz ("CPFL Piratininga")

Full

      100.00

              -  

         100.00

                    -  

 Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz")

Full

      100.00

              -  

           99.99

                    -  

 Rio Grande Energia S.A. ("RGE")

Full

      100.00

              -  

         100.00

                    -  

 Companhia Leste Paulista de Energia ("CPFL Leste Paulista")

Full

      100.00

              -  

           95.92

                    -  

 Companhia Jaguari de Energia ("CPFL Jaguari")

Full

      100.00

              -  

           87.27

                    -  

 Companhia Sul Paulista de Energia ("CPFL Sul Paulista")

Full

      100.00

              -  

           86.73

                    -  

 Companhia Luz e Força de Mococa ("CPFL Mococa")

Full

      100.00

              -  

           86.73

                    -  

Energy Generation

 CPFL Geração de Energia S.A. ("CPFL Geração")

Full

      100.00

              -  

         100.00

                    -  

 CPFL Sul Centrais Elétricas Ltda. ("CPFL Sul Centrais Elétricas")

Full

             -  

        100.00

                -  

             100.00

 CPFL Bioenergia S.A. ("CPFL Bioenergia")

Full

             -  

        100.00

                -  

             100.00

 CPFL Bio Formosa S.A. ("CPFL Bio Formosa")

Full

             -  

        100.00

                -  

             100.00

 CPFL Bio Buriti S.A. ("CPFL Bio Buriti")

Full

             -  

        100.00

                -  

             100.00

 CPFL Bio Ipê S.A. ("CPFL Bio Ipê")

Full

             -  

        100.00

                -  

             100.00

 CPFL Bio Pedra S.A. ("CPFL Bio Pedra")

Full

             -  

        100.00

                -  

             100.00

 Paulista Lajeado Energia S.A. ("Paulista Lajeado")

Full

             -  

         52.34

                -  

               52.34

 Santa Clara I Energias Renováveis Ltda. ("Santa Clara I")

Full

             -  

        100.00

                -  

             100.00

 Santa Clara II Energias Renováveis Ltda. ("Santa Clara II")

Full

             -  

        100.00

                -  

             100.00

 Santa Clara III Energias Renováveis Ltda. ("Santa Clara III")

Full

             -  

        100.00

                -  

             100.00

 Santa Clara IV Energias Renováveis Ltda. ("Santa Clara IV")

Full

             -  

        100.00

                -  

             100.00

 Santa Clara V Energias Renováveis Ltda. ("Santa Clara V")

Full

             -  

        100.00

                -  

             100.00

 Santa Clara VI Energias Renováveis Ltda. ("Santa Clara VI")

Full

             -  

        100.00

                -  

             100.00

 Eurus VI Energias Renováveis Ltda. ("Eurus VI")

Full

             -  

        100.00

                -  

             100.00

 BAESA - Energética Barra Grande S.A. ("BAESA")

Proportionate

             -  

         25.01

                -  

               25.01

 Campos Novos Energia S.A. ("ENERCAN")

Proportionate

             -  

         48.72

                -  

               48.72

 CERAN - Companhia Energética Rio das Antas  ("CERAN")

Proportionate

             -  

         65.00

                -  

               65.00

 Foz do Chapecó Energia S.A. ("Foz do Chapecó")

Proportionate

             -  

         51.00

                -  

               51.00

 Centrais Elétricas da Paraíba S.A.- EPASA ("EPASA")

Proportionate

             -  

         51.00

                -  

               51.00

Energy Commercialization and Services

 CPFL Comercialização Brasil S.A. ("CPFL Brasil")

Full

      100.00

              -  

         100.00

                    -  

 Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional")

Full

             -  

        100.00

                -  

             100.00

 CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul")

Full

             -  

        100.00

                -  

             100.00

 Sul Geradora Participações S.A. ("Sul Geradora")

Full

             -  

         99.95

                -  

               99.95

 CPFL Planalto Ltda.  ("CPFL Planalto")

Full

      100.00

              -  

         100.00

                    -  

 CPFL Atende Centro de Contatos e Atendimento Ltda.  ("CPFL Atende")

Full

      100.00

              -  

         100.00

                    -  

 CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços")

Full

      100.00

              -  

           87.82

                    -  

Holding Company

 Chumpitaz Participações S.A. ("Chumpitaz")

Full

      100.00

              -  

         100.00

                    -  

 CPFL Jaguariuna S.A.  ("CPFL Jaguariuna")

Full

      100.00

              -  

         100.00

                    -  

 Companhia Jaguari de Geração de Energia  ("Jaguari Geração")

Full

      100.00

              -  

           87.34

                    -  

 Chapecoense Geração S.A. ("Chapecoense")

Proportionate

             -  

         51.00

                -  

               51.00

 

19


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 2 )     PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS

 

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

 

The Company and its subsidiaries opted to apply Article 1 of CVM Decision nº 603/09, which allows publicly-held companies to present their 2010 Quarterly Financial Statements – ITR in accordance with the accounting standards in force as of December 31, 2009, without yet reflecting the full effects of the process of adjustment to international accounting standards.

 

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

 

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

 

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

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

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

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

20


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

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

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

 

2.1 Consolidation Principles

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

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

The portion relating to the noncontrolling shareholders is stated separately in liabilities and income statements for the periods presented.

All significant intercompany balances and transactions have been eliminated.

 

 

21


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 3 )     REGULATORY ASSETS AND LIABILITIES

 

Consolidated

June 30, 2010

March 31, 2010

Current

Noncurrent

Total

Current

Noncurrent

Total

Assets

 

Consumers, Concessionaires and Licensees (note 5)

 Free energy

3,673

-  

3,673

3,594

23

3,617

 Discounts TUSD (*) and Irrigation

15,453

6,658

22,111

11,990

4,838

16,828

19,126

6,658

25,784

15,584

4,861

20,445

Deferred Costs Variations

Parcel "A"

999

-  

999

               1,333

                 -  

1,333

CVA (**)

225,091

46,645

271,736

            335,976

           30,765

366,741

226,090

46,645

272,735

            337,309

           30,765

368,074

Prepaid Expenses (note 9)

Increase in PIS and COFINS

-  

-  

-  

259

-  

259

Overcontracting

51,844

2,188

54,032

68,353

2,399

70,752

Low income consumers' subsidy - Losses

26,094

37,816

63,910

21,642

35,807

57,449

Neutrality of the sector charges

374

523

897

483

-  

483

Tariff adjustment

30,560

-  

30,560

-  

-  

-  

Other financial components

55,694

3,048

58,742

29,202

6,523

35,725

164,566

43,575

208,141

119,939

44,729

164,668

Liabilities

Suppliers (note 17)

Free energy

(67,547)

-  

(67,547)

(66,077)

-  

(66,077)

Deferred Gains Variations

Parcel "A"

(34,276)

(62)

(34,338)

(45,685)

(87)

(45,772)

CVA

(302,437)

(115,333)

(417,770)

(441,983)

(64,560)

(506,543)

(336,713)

(115,395)

(452,108)

(487,668)

(64,647)

(552,315)

Other Accounts Payable (note 22)

Tariff review

(23,385)

-  

(23,385)

(49,315)

-  

(49,315)

Discounts TUSD and Irrigation

(2,599)

(455)

(3,054)

(3,024)

(249)

(3,273)

Tariff adjustment

(10,882)

-  

(10,882)

(14,530)

-  

(14,530)

Increase in PIS and COFINS

-  

-  

-  

(126,129)

-  

(126,129)

Overcontracting

(27,879)

(19,800)

(47,679)

(20,888)

(25,231)

(46,119)

Low income consumers' subsidy - Gains

(6,022)

-  

(6,022)

(5,890)

-  

(5,890)

Neutrality of the sector charges

(14,630)

(12,826)

(27,456)

(5,320)

(2,588)

(7,908)

Other financial components

(34,103)

(782)

(34,885)

(16,703)

(716)

(17,419)

(119,500)

(33,863)

 

(153,363)

(241,799)

(28,784)

(270,583)

Total net

(113,978)

(52,380)

(166,358)

(322,712)

(13,076)

(335,788)

(*)   Network Usage Charge - TUSD

(**)  Deferred Tariff Costs and Gains Variations from Parcel "A" itens - ("CVA")

 

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

 

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

 

22


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

This adjustment was used to offset the following regulatory assets resulting from the rationing. As of June 30, 2010, these assets recorded by the subsidiaries are as follows:   

 

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

Free Energy corresponds to the energy produced and made available to the consumer market during the rationing period by the generators, independent producers and own-power producers of energy.

The distribution utilities collected the funds from the consumer through the extraordinary tariff adjustment and passed them on to the suppliers of electric energy, according to percentages established for each concessionaire. Accordingly, a regulatory asset and liability were recorded and these amounts restated in accordance with ANEEL’s instructions.

On December 15, 2009, ANEEL issued Regulatory Resolution nº 387/2009 which establishes a new method for calculating the outstanding balances of Loss of Revenue and Free Energy after expiry of the RTE charge, with the objective of ensuring fairness to generators and distributors of electric energy as regards the calculation of the losses resulting from the collection of RTE from the final consumer.

On the basis of this new calculation, the subsidiaries CPFL Paulista, CPFL Piratininga and CPFL Sul Paulista increased, in 2009, the liability relating to free energy by R$ 32,592. In the quarter ending March 31, 2010, the subsidiaries CPFL Paulista and CPFL Piratininga recorded additional adjustments of R$ 48 and R$ 2,479 as Other Operating Expenses, in respect of the principal.

Using the same methodology, the subsidiaries CPFL Jaguari and CPFL Santa Cruz recorded assets of R$ 3,244 in 2009.

After these adjustments and the amortization and restatement for the period, the net balance at June 30, 2010 stood at R$ 63,874 (R$ 62,460 as of March 31, 2010).

The results of the new calculation were sent to ANEEL, which published Dispatch No. 1,450 on May 19, 2010, requesting reconciliation of the free energy figures from the distributors and generators. ANEEL will issue a final dispatch, which will serve as the basis for the financial settlement to be made with the generators.

 

a.2)   Parcel “A”

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

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

In view of the need for billing to cover the full monthly cycle, the subsidiaries CPFL Paulista, CPFL Sul Paulista, CPFL Leste Paulista and CPFL Mococa charged more than the balances due, and the reimbursement of these amounts has been taken into consideration in the next tariff adjustments. As of June 30, 2010, the net liability to consumers stood at R$ 33,339 (R$ 44,439 as of March 31, 2010).

 

b)      Tariff Review and Tariff Adjustment

b.1) 2nd cycle of Tariff Review

23


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

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

The final approval occurred in the subsequent tariff adjustments, when ANEEL recalculated the adjustments and decided to reposition the tariff review of the distributors. As a result, the distributors recognized regulatory liabilities totaling R$ 165,707 between 2008 and 2009, in respect of amounts that are already being refunded to consumers.

This repositioning caused a negative impact of R$ 32,529 in the first quarter of 2009, mainly as a result of the liabilities recorded for RGE and CPFL Paulista, amounting to R$ 22,428 and R$ 11,979, respectively, and in the 3rd quarter it caused an adverse impact of R$ 90,721 (pro-rata as of September 30, 2009 of the amount relating to two tariff periods of R$ 93,540), as a result of the liabilities recorded for CPFL Piratininga

 

b.2) Tariff Adjustment 2009 and 2010

The 2009 and 2010 tariff adjustments for the distribution subsidiaries that impacted the result for the quarter ended June 30, 2010 are as follows:

 

Tariff Adjustment 2009 (“IRT 2009”):

 

  

CPFL Santa Cruz

CPFL Jaguari

CPFL Mococa

CPFL Leste Paulista

CPFL Sul Paulista

CPFL Paulista

RGE

CPFL Piratininga

Verified Revenue

 192,302

 77,004

 47,999

 73,724

 87,327

4,640,667

1,902,839

2,267,755

 Sector Charges

 23,419

 13,993

 5,932

 9,573

 13,090

 690,911

 222,227

 341,928

 Purchase of ElectricEnergy

 97,221

 41,213

 23,441

 29,413

 42,637

2,793,363

1,089,099

1,098,860

 Energy Transmission

 19,238

 9,647

 5,594

 8,727

 11,092

 425,052

 201,789

 266,754

Parcel A

 139,878

 64,853

 34,967

 47,713

 66,819

3,909,326

1,513,115

1,707,542

Parcel B

 72,974

 20,626

 18,083

 33,810

 30,810

1,361,615

 588,468

 623,920

Income Required (Parc. A + B)

 212,852

 85,479

 53,050

 81,523

 97,629

5,270,941

2,101,583

2,331,462

Financial Components

 28,530

 300

 351

 1,924

(149)

 402,812

 178,722

 73,878

CVA

 5,310

 1,735

 1,305

(1,709)

 1,306

 232,828

 113,340

 110,116

Overcontracting

 9

-

-

-

-

 28,125

(1,949)

 7,865

Advances

 25,375

 126

 422

 1,527

 399

 117,093

 138,013

 41,809

Low income subsidy

-

-

-

-

-

 33,047

 1,519

 1,090

Discounts on TUSD and Irrigation Subsidy

(771)

-

 22

 852

 43

 6,122

 1,625

 3,010

Connection and Frontier Charges / CUSD

(81)

(199)

(76)

 2,358

(119)

 3,932

(2,073)

 357

Tariff review recalculation - 2008

(3,546)

(1,058)

(1,089)

(780)

(1,694)

(11,979)

(50,899)

(93,540)

Provision Subsidy for Cooperatives

-

-

-

-

-

-

(16,178)

 4,417

CCEAR exposure

(56)

-

-

-

-

(5,534)

-

(577)

Other

 2,290

(304)

(233)

(324)

(84)

(822)

(4,676)

(669)

Financial Repositioning

10.69%

11.01%

10.52%

10.58%

11.80%

13.58%

10.44%

2.81%

Financial Components

13.40%

0.35%

0.66%

2.36%

-0.16%

7.64%

8.50%

3.17%

Total Repositioning

24.09%

11.36%

11.18%

12.94%

11.64%

21.22%

18.95%

5.98%

XFactor

1.05%

2.81%

1.14%

1.44%

1.43%

1.19%

0.18%

-1.36%

Effect perceived by consumers (*)

11.85%

9.40%

5.59%

10.61%

10.23%

21.56%

3.43%

-2.12%

Ratification Resolution - ANEEL

770/2009

767/2009

768/2009

771/2009

769/2009

795/2009

810/2009

896/2009

Tariff review date

Feb 3, 2009

Feb 3, 2009

Feb 3, 2009

Feb 3, 2009

Feb 3, 2009

Apr 8, 2009

Apr 19, 2009

Oct 23, 2009

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

 

24


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

Tariff Adjustment 2010 (“IRT 2010”):

 

 

CPFL Santa Cruz

CPFL Jaguari

CPFL Mococa

CPFL Leste Paulista

CPFL Sul Paulista

CPFL Paulista

RGE

Verified Revenue

       221,437

         88,633

         56,218

         91,434

       101,099

      5,427,276

      2,147,707

   Sector Charges

         31,038

         18,405

           7,646

         11,843

         16,653

        916,487

        286,131

   Purchase of Electric  Energy

         93,597

         41,422

         23,124

         11,730

         41,132

      2,663,385

      1,057,095

   Energy Transmission

         25,155

         12,919

           7,356

         27,784

         14,641

        505,917

        224,595

Parcel A

       149,790

         72,746

         38,126

         51,357

         72,426

      4,085,789

      1,567,821

Parcel B

         75,845

         21,036

         20,425

         34,301

         33,026

      1,425,548

        616,742

Income Required (Parc. A + B)

       225,635

         93,782

         58,551

         85,658

       105,452

      5,511,337

      2,184,563

Financial Components

         18,485

            (608)

            (101)

          (5,904)

           1,432

          63,508

        232,719

  Advances

         23,504

             124

             374

           1,223

           1,644

        130,359

        161,669

  Financial adjustment previous tariff adjustment

              (21)

            (247)

            (110)

            (123)

             137

         (14,225)

          22,174

  Financial adjustment TUSD-G

                -  

                -  

                -  

                -  

                -  

         (11,747)

           (5,236)

  Additional R&D financial adjustment

                -  

                -  

                -  

                -  

                -  

            4,242

            3,023

  CVA

          (1,851)

            (299)

            (154)

          (2,534)

             120

         (89,180)

         (36,189)

  Discounts on TUSD and Irrigation Subsidy

            (315)

                -  

            (101)

            (115)

             544

            2,062

          11,319

  Discounts for Cooperatives

                -  

                -  

                -  

                -  

                -  

            3,365

          35,898

  Connection and Frontier Charges/CUSD

            (154)

             122

              (49)

            (178)

            (112)

            6,870

                 -  

  Parcel "A" liability to be offset

                -  

                -  

                -  

                -  

                -  

         (43,956)

                 -  

  Neutrality of Sector Charges

                -  

                -  

                -  

                -  

                -  

           (1,628)

           (2,716)

  Recovery of subsidies

           2,478

               91

             262

             234

             277

                 -  

            9,546

  Overcontracting

          (1,591)

            (418)

            (274)

            (922)

            (349)

          67,619

          28,314

  Other components

          (3,565)

               19

              (49)

          (3,489)

            (829)

            9,727

            4,917

Financial Repositioning

1.90%

5.81%

4.15%

-6.32%

4.30%

1.55%

1.72%

Financial Components

8.19%

-0.65%

-0.17%

-6.89%

1.36%

1.15%

10.65%

Total Repositioning

10.09%

5.16%

3.98%

-13.21%

5.66%

2.70%

12.37%

X  Factor

-2.15%

-0.34%

-2.33%

-1.12%

-1.30%

0.08%

-0.68%

Effect perceived by consumers (*)

-2.53%

3.67%

3.24%

-8.47%

4.94%

-5.69%

3.96%

Ratification Resolution - ANEEL

935/2010

937/2010

936/2010

939/2010

933/2010

961/2010

1009/2010

Tariff review date

Feb 3, 2010

Feb 3, 2010

Feb 3, 2010

Feb 3, 2010

Feb 3, 2010

Apr 8, 2010

June 19, 2010

 

On account of the process of approval of the financial components in the tariff adjustment, the following main adjustments were recorded in the first quarter of 2010 by CPFL Paulista:

 

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

 

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

 

25


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

As such, as a result of the tariff adjustment, RGE recorded the following main adjustments in the second quarter of 2010: (i) a regulatory asset (composed of R$ 22,174 in respect of recalculation of the 2009 tariff adjustment as a result of ANEEL’s revision of the average pass-on price to be considered for energy purchases, and R$ 9,546, in respect of the increase in the subsidy to granted to the Cooperatives in the 2009 Tariff Adjustment; (ii) Subsidies Granted (Supplied, TUSD, Irrigation, Low Income Consumers’) of R$ 8,169; and (iii) a liability in respect of the TUSD-G financial adjustment (R$ 5,236).

 

 

 

c)   Financial components

c.1) Tariff review

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

 

c.2) Tariff Adjustment

As mentioned in note 3b.2, in the tariff adjustments of 2009 and 2010, some distributors had financial components granted in order to adjust earlier tariff adjustments. As such, assets and liabilities were recorded that are being amortized in the accounts until the next Tariff Adjustment for each distributor.

 

c.3) Discounts TUSD and Irrigation

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

 

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

 

c.4) CVA

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

 

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

 

Consolidated

June 30, 2010

March 31, 2010

Ratified

Not Ratified

Total

Ratified

Not Ratified

Total

2010

2009

2008

2010

2010

2009

2008

2010

Itaipu pass-through

 (149,316)

(10,584)

 (1,941)

(131,157)

(292,998)

(104,850)

 (15,609)

 (3,490)

(152,846)

(276,795)

Electric energy costs

 (36,004)

 27,392

1,702

(7,173)

(14,083)

 (83,241)

56,655

3,061

(48,319)

 (71,844)

Proinfa

 7,396

 7,562

 229

(22,045)

(6,858)

6,028

14,610

 412

 1,924

22,974

CCC

44,017

 5,085

 278

 40,528

 89,908

33,141

11,521

 500

 54,550

99,712

Transmission from Itaipu

 2,276

 433

5

 600

 3,314

1,952

 952

 9

 1,219

4,132

Basic network

70,379

 4,354

 259

 5,130

 80,122

63,815

9,985

 466

 24,155

98,421

ESS

 (53,809)

 13,264

 765

 4,504

(35,276)

 (41,956)

29,951

1,375

(30,319)

 (40,949)

CDE

 8,830

 3,675

55

 7,845

 20,405

7,970

7,232

 98

 8,063

23,363

EER - Reserve energy charge

 1,317

-

 -

 8,115

 9,432

2

 -

 -

 1,182

1,184

 (104,914)

 51,181

1,352

(93,653)

(146,034)

(117,139)

 115,297

2,431

(140,391)

(139,802)

 

26


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

c.5) Increase in PIS and COFINS – Non-Cumulative Method

Refers to the difference between PIS and COFINS costs calculated in accordance with the current legislation, as understood by the subsidiaries and those effectively incorporated in the tariff. 

 

In view of the taxation discussions involved, the subsidiaries conservatively opted to record in 2006 and 2007 a liability posted in “Other Accounts Payable” (note 22).

 

In light of the fiscal discussions on this topic, in June 2010 the subsidiaries decided to reclassify these amounts to Provisions for Contingencies (note 21).

 

 

c.6) Overcontracting

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

 

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

 

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

 

c.7) Low Income Consumers’ Subsidy

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

 

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

 

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

 

27


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

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

 

c.8) Neutrality of the Sector Charges

On account of the Addendum to the Concession Contracts of the electric energy distributors, approved by the ANEEL Executive Board, which changed the tariff adjustment methodology in accordance with ANEEL Order nº 245, published in the Official Gazette of the Federal Executive on February 5, 2010, the sector charges will no longer affect the tariff. The monthly differences between the amounts billed and the amounts considered in the tariff adjustment will be recorded as regulatory assets and liabilities, bearing interest at the SELIC rate.

 

c.9) Other financial components

Mainly refers to CCEAR exposure, financial guarantees, subsidies to cooperatives and licensees and the TUSD G financial adjustment.

28


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Changes in regulatory assets and liabilities during the quarters ended June 30, 2010 and 2009 are shown in the tables below:

 

2010

Consolidated

March 31, 2010

Operating reveue
(note 24)

Cost of electric energy services
(note 25)

Deductions from operating revenue

Operating expense

Cash

Financial income (expense)

June 30, 2010

Deferral

 

Amort.

Deferral

 

Amort.

Deferral

 

Amort.

Deferral

 

Amort.

 

Provision for losses

Amort.

Deferral

 

Remuner.

Transfer

 Free energy

 (62,460)

-

-

-

 -

-

-

-

-

 (16)

 (35)

-

 (1,363)

 -

(63,874)

 Parcel "A"

 (44,439)

-

 98

-

8,843

-

 2,178

-

(17)

 -

-

-

 (2)

 -

(33,339)

 Tariff review

 (49,315)

-

 25,930

-

 -

-

-

-

-

 -

-

-

 -

 -

(23,385)

 Discounts TUSD and Irrigation

13,555

 8,267

(3,109)

-

 -

-

-

-

-

 -

-

-

344

 -

 19,057

 CVA

 (139,802)

-

-

 20,138

 (15,007)

 5,793

(21,044)

-

-

 -

-

 3,443

 (2,091)

2,536

(146,034)

 Increase in PIS and COFINS

 (125,870)

-

-

-

 -

-

-

-

-

 -

-

-

 (3,503)

129,373

-

 Overcontracting

24,633

-

  -

(10,411)

 (5,389)

-

-

-

-

 -

34

-

22

 (2,536)

 6,353

 Low Income Consumers’ Subsidy

51,559

 9,610

(3,347)

-

 -

-

-

-

-

 -

-

-

66

 -

 57,888

 Neutrality of sector charges

 (7,425)

(19,351)

 633

-

 -

-

-

-

-

 -

-

-

 (416)

 -

(26,559)

 Tariff adjustment

 (14,530)

 28,367

 1,005

-

 -

-

-

-

-

 -

-

-

4,836

 -

 19,678

 Other financial components

18,306

 27,390

(6,461)

(16,802)

 (1,461)

 1,960

(1,061)

-

 249

684

 (336)

-

1,500

(111)

 23,857

Total net

 (335,788)

 54,283

 14,749

(7,075)

 (13,014)

 7,753

(19,927)

-

 232

668

 (337)

 3,443

 (607)

129,262

(166,358)

 

2009

Consolidated

March 31, 2009

Operating reveue
(note 24)

Cost of electric energy services
(note 25)

Deductions from operating revenue

Operating expense

Cash

Financial income (expense)

June 30, 2009

Deferral

 

Amort.

Deferral

 

Amort.

Deferral

 

Amort.

Deferral

 

Amort.

 

Provision for losses

Amort.

Deferral

 

Remuner.

Free energy

 (28,704)

-

-

-

 -

-

-

-

-

15

 (37)

-

 (6)

 (28,732)

Parcel "A"

167,563

-

 790

-

 (56,521)

-

(13,771)

-

 130

 -

-

-

4,593

102,784

 Tariff review

 (67,222)

(2,510)

 15,213

-

 -

-

-

-

-

 -

-

-

 -

 (54,519)

 Discounts TUSD and Irrigation

24,602

(2,614)

(6,749)

-

 -

-

-

-

-

 -

-

-

 (17)

15,222

 CVA

498,992

-

-

(79,364)

 (62,789)

(24,392)

(18,267)

-

-

 -

-

(25,515)

7,239

295,904

 Increase in PIS and COFINS

 (123,503)

-

-

-

 -

-

-

-

-

 -

-

-

387

 (123,116)

 Overcontracting

35,876

-

-

 51,055

 (3,403)

-

-

-

-

 -

-

-

235

83,763

 Low Income Consumers’ Subsidy

70,229

 11,552

(8,617)

-

 -

-

-

-

-

 -

(8,405)

-

 (18)

64,741

 Other financial components

 (22,331)

 30,411

(28,806)

-

1,579

 5,490

(4,646)

-

 229

 -

116

-

 (65)

 (18,023)

Total net

555,502

 36,839

(28,169)

(28,309)

 (121,134)

(18,902)

(36,684)

-

 359

15

(8,326)

(25,515)

12,348

338,024

 

29


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 4 )       CASH AND CASH EQUIVALENTS

 

Parent Company

Consolidated

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

Bank deposits

625

 1,235

156,666

38,683

Short-term financial investments

70,347

216,723

 1,218,433

 1,646,019

 

 

Total

70,972

217,958

 1,375,099

 1,684,702

 

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

 

( 5 )     CONSUMERS, CONCESSIONAIRES AND LICENSEES

In the consolidated financial statements, the balance derives mainly from the supply of electric energy.  The following table shows the breakdown as of June 30 and March 31, 2010:

 

Consolidated

Past due

Total

 Balances Coming due

Up to 90 days

More than 90 days

 June 30, 2010

 March 31, 2010

 Current

 Consumer Classes

Residential

 279,081

193,683

20,645

493,409

 531,711

Industrial

 206,831

 65,865

43,782

316,478

 263,479

Commercial

 105,661

 43,211

20,697

169,569

 192,283

Rural

 28,937

 6,729

1,532

37,198

39,334

Public Administration

 29,589

 5,298

1,137

36,024

33,909

Public Lighting

 24,305

 2,646

17,006

43,957

35,439

Public Service

 37,008

 6,292

1,012

44,312

34,974

 Billed

 711,412

323,724

105,811

 1,140,947

1,131,129

Unbilled

 434,572

-

 -

434,572

 476,447

Financing of Consumers' Debts

 60,975

 13,170

33,228

107,373

94,475

Regulatory assets (note 3)

 19,126

-

 -

19,126

15,584

CCEE Transactions

 21,073

-

 -

21,073

12,819

Concessionaires and Licensees

 164,705

-

 -

164,705

 158,258

 Collection in process of classification

 7,985

-

 -

7,985

 (27,193)

Other

 18,525

 3,169

674

22,368

20,975

 Total

1,438,373

340,063

139,713

 1,918,149

1,882,494

 Noncurrent

Financing of Consumers' Debts

 130,014

-

 -

130,014

 137,986

Regulatory assets (note 3)

 6,658

-

 -

6,658

4,861

CCEE Transactions

 41,301

-

 -

41,301

41,301

Concessionaires and Licensees

 21,327

-

 -

21,327

31,991

 Total

 199,300

-

 -

199,300

 216,139

 

30


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

Collection in process of Classification - The credit balance of R$ 27,193 at March 31, 2010 refers to amounts received where the accounts receivable had not been written off due to the implementation of the new billing system – “CCS”.

 

( 6 )     FINANCIAL INVESTMENTS

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

As of June 30, 2010, the current assets balance of the parent company is R$ 40,209 (R$ 39,615 as of March 31, 2010), and the noncurrent assets balance is R$ 51,675 (R$ 57,338 as of March 31, 2010).  The operation is subject to interest of 17.5% p.a., plus the annual variation of the IGP-M, and is amortized in monthly installments of amounts corresponding to the purchase of energy.

 

( 7 )     RECOVERABLE TAXES

 

Parent Company

Consolidated

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

Current

Social Contribution Prepayments - CSLL

-

-

365

336

Income Tax Prepayments - IRPJ

-

-

 1,176

545

Social Contribution and Income Tax

 44,245

 42,983

 83,901

 82,239

Withholding Income Tax- IRRF

 16,978

 1,737

 47,391

 25,237

ICMS (State VAT)

-

-

 64,071

 41,247

PIS (Tax on Revenue)

-

-

 4,208

 4,025

COFINS (Tax on Revenue)

 42

 42

 13,168

 12,338

INSS (Social Security)

-

 1

882

 1,144

Other

-

-

 8,890

 7,295

Total

 61,265

 44,763

 224,052

 174,406

Noncurrent

Social Contribution Tax - CSLL

-

-

 31,543

 30,854

Income Tax - IRPJ

-

-

 1,001

 1,001

PIS (Tax on Revenue)

 2,787

 2,787

 2,787

 2,787

ICMS (State VAT)

-

-

 78,424

 68,814

Other

-

-

 6,180

 5,828

Total

 2,787

 2,787

 119,935

 109,284

 

( 8 )     ALLOWANCE FOR DOUBTFUL ACCOUNTS

31


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

 Balance at March 31, 2010

 (80,700)

 Additional Allowance Recorded

 (32,113)

 Recovery of Revenue

13,805

 Write-off of Accounts Receivable

13,098

 Balance at June 30, 2010

 (85,910)

 

 

( 9 )     PREPAID EXPENSES

 

 

 

Consolidated

 

 

Current

 

Noncurrent

 

 

June 30, 2010

 

March 31, 2010

 

June 30, 2010

 

March 31, 2010

Regulatory assets - (note 3)

 

                164,566

 

                119,939

 

                  43,575

 

                  44,729

Other

 

                  29,708

 

                  25,414

 

                    4,745

 

                    5,713

Total

 

                194,274

 

                145,353

 

                  48,320

 

                  50,442

 

 

( 10 )  DEFERRED TAXES

 

10.1- Composition of the tax credits:

 

32


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

Parent Company

Consolidated

 June 30, 2010

 March 31, 2010

 June 30, 2010

 March 31, 2010

 Social Contribution Credit on

 Tax Loss Carryforwards

40,179

42,048

47,525

50,240

 Tax Benefit on Merged Goodwill

-

-

182,003

186,485

 Temporarily Nondeductible Differences

69

112

66,947

71,193

 Subtotal

40,248

42,160

296,475

307,918

 Income Tax Credit on

 Tax Loss Carryforwards

122,357

128,552

126,152

132,347

 Tax Benefit of Merged Goodwill

-

-

612,501

627,265

 Temporarily Nondeductible Differences

 2,739

 2,808

185,961

197,691

 Subtotal

125,096

131,360

924,614

957,303

PIS e COFINS credit on

 Temporarily Nondeductible Differences

-

-

 1,905

 1,626

 Total

165,344

173,520

 1,222,994

 1,266,847

 Current

16,320

16,320

163,501

163,148

 Noncurrent

149,024

157,200

 1,059,493

 1,103,699

 Total

165,344

173,520

 1,222,994

 1,266,847

 

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

 

 

10.2 - Tax Benefit on Merged Goodwill:

 

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

33


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

June 30, 2010

March 31, 2010

Social Contribution Tax
(CSLL)

Income Tax (IRPJ)

Social Contribution Tax
(CSLL)

Income Tax (IRPJ)

CPFL Paulista

 99,159

 275,444

 101,447

 281,798

CPFL Piratininga

 22,240

 76,318

 22,724

 77,973

RGE

 42,748

 176,537

 43,563

 179,903

CPFL Santa Cruz

 5,053

 16,848

 5,342

 17,756

CPFL Leste Paulista

 3,152

 8,680

 3,301

 9,133

CPFL Sul Paulista

 4,604

 12,655

 4,813

 13,299

CPFL Jaguari

 2,764

 7,616

 2,896

 8,013

CPFL Mococa

 1,798

 4,940

 1,884

 5,208

CPFL Geração

-

 32,128

-

 32,753

CPFL Serviços

 485

 1,335

 515

 1,429

Total

 182,003

 612,501

 186,485

 627,265

 

10.3 – Accumulated balances on temporary nondeductible differences:

 

Consolidated

June 30, 2010

March 31, 2010

Social Contribution Tax
(CSLL)

Income Tax (IRPJ)

PIS/COFINS

Social Contribution Tax
(CSLL)

Income Tax (IRPJ)

PIS/COFINS

Reserve for Contingencies

19,252

53,651

 -

11,762

32,791

 -

Pension Plan Expenses

3,555

10,875

 -

3,823

11,619

 -

Allowance for Doubtful Accounts

7,302

20,291

 -

6,837

18,993

 -

Free energy adjustment (note 3a.1)

3,492

9,698

 -

3,351

9,307

 -

Research and Development and Energy Efficiency Programs

16,344

45,393

 -

16,759

46,546

 -

Profit Sharing

1,700

5,415

 -

2,666

8,153

 -

Differences in Depreciation Rates - RGE

9,551

26,530

 -

9,679

26,886

 -

Regulatory liability - Increase in PIS and COFINS

 -

 -

 -

11,122

30,892

 -

Provision for overcontracting

 933

2,593

 878

 933

2,593

 878

Effects of Law nº 11,638/07

 608

1,690

 739

 754

2,095

 596

Other

4,210

9,825

 288

3,507

7,816

 152

Total

66,947

 185,961

1,905

71,193

 197,691

1,626

 

34


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

10.4 - Reconciliation of the amounts of income tax and social contribution reported in the quarters and half-years ended June 30, 2010 and 2009:

 

Parent Company

2nd quarter 2010

1st quarter 2010

2nd quarter 2009

1st quarter 2009

Social Contribution Tax
(CSLL)

Income Tax(IRPJ)

Social Contribution Tax
(CSLL)

Income Tax(IRPJ)

Social Contribution Tax

(CSLL)

Income Tax(IRPJ)

Social Contribution Tax
(CSLL)

Income Tax

(IRPJ)

Income before taxes

509,881

509,881

899,948

899,948

414,908

414,908

697,444

697,444

Adjustments to Reflect Effective Rate:

 - Equity on subsidiaries

 (460,208)

 (460,208)

 (888,963)

 (888,963)

 (369,457)

 (369,457)

 (700,601)

 (700,601)

 - Intangible asset (goodwill) amortization

28,946

36,878

57,891

72,240

30,330

37,186

60,660

74,374

 - Other Permanent Additions, net

158

(1,296)

578

 (828)

 1,492

 1,482

 1,947

 1,969

  Calculation base

78,777

85,255

69,454

82,397

77,273

84,119

59,450

73,186

    Statutory Tax Rate

9%

25%

9%

25%

9%

25%

9%

25%

Tax Credit Result

(7,090)

 (21,314)

(6,251)

 (20,599)

(6,955)

 (21,030)

(5,351)

 (18,297)

- Tax Credit Recorded (Not Recorded)

816

606

-

-

 1,674

 2,505

-

9

Total

(6,274)

 (20,708)

(6,251)

 (20,599)

(5,281)

 (18,525)

(5,351)

 (18,288)

Consolidated

2nd quarter 2010

1st quarter 2010

2nd quarter 2009

1st quarter 2009

Social Contribution Tax
(CSLL)

Income Tax
(IRPJ)

Social Contribution Tax
(CSLL)

Income Tax
(IRPJ)

Social Contribution Tax
(CSLL)

Income Tax
(IRPJ)

Social Contribution Tax
(CSLL)

Income Tax

(IRPJ)

Income before taxes

600,704

600,704

 1,215,996

 1,215,996

455,058

455,058

908,776

908,776

Adjustments to Reflect Effective Rate:

 - Intangible asset (goodwill) amortization

28,946

37,281

57,891

72,686

30,330

37,585

60,660

75,171

 - CMC Realization

 2,951

-

 6,141

-

 3,536

-

 7,079

-

 - Effect of Presumed Profit System

(1,932)

(2,637)

(8,822)

 (10,616)

 (10,543)

 (12,342)

 (19,815)

 (22,369)

 - Other Permanent Additions (Exclusions), net

(2,415)

 (15,756)

 (620)

 (18,456)

 6,518

 4,078

10,053

 7,288

  Calculation base

628,254

619,592

 1,270,586

 1,259,610

484,899

484,379

966,753

968,866

    Statutory Tax Rate

9%

25%

9%

25%

9%

25%

9%

25%

Tax Debit Result

 (56,543)

 (154,898)

 (114,353)

 (314,903)

 (43,641)

 (121,095)

 (87,008)

 (242,217)

- Tax Credit Recorded (Not Recorded)

 (245)

(2,365)

(1,974)

(5,495)

756

180

(1,052)

(2,452)

Total

 (56,788)

 (157,263)

 (116,327)

 (320,398)

 (42,885)

 (120,915)

 (88,060)

 (244,669)

 

( 11 )  OTHER CREDITS

 

 

 

Consolidated

 

 

Current

 

Noncurrent

 

 

June 30, 2010

 

March 31, 2010

 

June 30, 2010

 

March 31, 2010

Receivables from BAESA's shareholders

 

                16,251

 

                15,777

 

                  7,908

 

                11,832

Advances - Fundação CESP

 

                  7,432

 

                  6,344

 

                        -  

 

                        -  

Advance to suppliers

 

                16,091

 

                  9,642

 

                        -  

 

                        -  

Pledges, Funds and Tied Deposits

 

                  3,318

 

                  2,868

 

                38,300

 

                42,715

Fund Tied to Foreign Currency Loans

 

                        -  

 

                        -  

 

                22,945

 

                19,621

Orders in Progress

 

                  7,737

 

                10,185

 

                        -  

 

                        -  

Services Rendered to Third Parties

 

                57,893

 

                46,931

 

                        -  

 

                        -  

Reimbursement RGR

 

                  4,830

 

                  4,817

 

                  1,611

 

                  1,611

Advance Energy Purchase Agreements

 

                10,209

 

                15,111

 

                63,399

 

                55,742

Lease

 

                  3,253

 

                  3,189

 

                22,817

 

                22,688

Collection Agreements

 

                25,979

 

                  4,561

 

                        -  

 

                        -  

Other

 

                35,022

 

                35,599

 

                  9,317

 

                  8,831

Total

 

              188,015

 

              155,024

 

              166,297

 

              163,040

 

Collection Agreements – Refer to agreements entered into with local government authorities and companies to collect taxes and charges by means of the electricity bill and to later pass on the amounts collected relating to the public lighting contribution, newspapers, healthcare, home insurance, etc.. As from 2010, with the implementation of the new billing system – “CCS”, the subsidiaries changed how these are recorded (previously recorded based on the charges collected and now recorded based on billing), affecting both the records of accounts receivable and accounts payable (Note 22).

35


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM) 

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

( 12 )   INVESTMENTS

 

Parent Company

Consolidated

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

Permanent Equity Interests:

At equity method

 3,319,493

3,678,260

-

 -

At cost method

-

 -

117,744

 117,686

Negative goodwill

(12,828)

(12,828)

 (12,828)

(12,828)

Goodwill

 1,469,373

1,473,401

-

 -

Total

 4,776,038

5,138,833

104,916

 104,858

 

12.1 - Permanent Equity Interests:

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

 

June 30, 2010

June 30, 2010

March 31, 2010

2nd quarter 2010

2nd quarter 2009

Investment

Number of (thousand) Shares held

Capital

Shareholders Equity

Net Income

 Shareholders Equity  Interest

Equity in Subsidiaries

  CPFL Paulista

72,650

109,810

497,388

327,229

497,388

644,294

180,323

102,343

  CPFL Piratininga

53,031,259

70,587

230,538

148,050

230,538

318,556

60,032

73,900

  RGE

807,168

867,604

1,108,154

131,418

1,108,154

1,156,910

80,119

33,796

  CPFL Santa Cruz

371,772

45,330

80,135

12,589

80,135

85,783

6,936

4,809

  CPFL Leste Paulista

895,373

12,217

40,252

6,908

40,252

41,539

4,630

3,271

  CPFL Jaguari

211,844

5,716

31,045

6,098

             31,045

               31,759

                       3,197

                       1,183

  CPFL Sul Paulista

445,317

10,000

44,333

7,638

44,333

42,664

4,444

3,288

  CPFL Mococa

 116,989

 9,850

 29,936

 5,072

 29,936

 28,015

3,248

1,883

  CPFL Geração

205,487,716

1,039,618

1,209,765

134,256

1,209,765

1,220,333

70,917

95,307

  CPFL Brasil

 2,999

 2,999

 3,598

 103,475

 3,598

 65,705

 41,368

54,411

  CPFL Atende (*)

1

1

(1,892)

(633)

(1,892)

(1,286)

(606)

(653)

  CPFL Planalto (*)

 630

 630

 630

5,394

630

 3,208

2,815

 1,627

  CPFL Serviços

1,443,141

5,800

2,107

(355)

2,107

1,177

898

(7,665)

  CPFL Jaguariuna

 189,620

 2,481

 2,068

 (112)

 2,068

2,122

 (54)

 (61)

  CPFL Jaguari Geração

40,072

40,108

41,436

3,556

41,436

37,481

1,941

2,018

Total

3,319,493

3,678,260

460,208

369,457

(*) Number of quotes

The capital and shareholders' equity of the subsidiary Chumpitaz is R$ 100.00 (one hundred reais)

At June 30, 2010 the parent company held 100% interest in the total capital of all of these subsidiaries

 

a) Migration of noncontrolling shareholders in CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz to the equity of CPFL Energia

The EGM/AGM of CPFL Energia held on April 26, 2010, approved the merger of all the shares held by the noncontrolling shareholders of the subsidiaries CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz with the equity of CPFL Energia and conversion of these companies into wholly-owned subsidiaries. This was carried out with the issue of 1,226,192 new common shares of CPFL Energia, resulting in an increase in Shareholders’ Equity of R$ 52,249, offset by R$ 17,393 relating to the increase of the holdings in these subsidiaries, and R$ 34,856 regarding the increase in intangible assets relating to concession rights (R$ 32,848) and goodwill (R$2,008).  The exchange ratios were established based on economic reports.

 

36


 

(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

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

 

 

12.2 – Interest on Shareholders’ Equity and Dividends Receivable:

 

Parent Company

Dividend

Interest on Shareholders’ Equity

Total

Subsidiaries

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

CPFL Paulista

462,308

255,308

12,683

12,683

474,991

267,991

CPFL Piratininga

191,134

169,938

 5,879

12,002

197,013

181,940

RGE

173,962

91,391

30,044

30,045

204,006

121,436

CPFL Santa Cruz

23,687

17,332

 2,043

 2,044

25,730

19,376

CPFL Geração

146,775

121,936

29,503

29,072

176,278

151,008

CPFL Brasil

103,367

109,466

92

-

103,459

109,466

CPFL Leste Paulista

10,701

11,528

 1,025

 2,361

11,726

13,889

CPFL Sul Paulista

 6,378

10,551

 1,071

 1,965

 7,449

12,516

CPFL Jaguari

 5,168

 5,069

790

694

 5,958

 5,763

CPFL Mococa

 9,252

 5,047

 1,376

639

10,628

 5,686

CPFL Serviços

 3,648

 3,648

-

-

 3,648

 3,648

CPFL Planalto

 5,394

 4,152

-

-

 5,394

 4,152

CPFL Jaguari Geração

 4,153

 5,011

-

-

 4,153

 5,011

Total

 1,145,927

810,377

84,506

91,505

 1,230,433

901,882

 

In the second quarter of 2010, the Company received R$ 493,015 in relation to dividends and interest on shareholders’ equity declared in 2009. In this quarter, the subsidiaries declared (i) R$ 737,698 as interim dividends, and (ii) R$98,669 (R$ 83,868 net of income tax retained at source) as interim interest on shareholders’ equity, both relating to earnings in the first 6 months of 2010.

 

12.3 – Investment at cost

 

Refers mainly to the participation of the indirect subsidiary Paulista Lajeado Energia S.A. of 5.94% in the total capital of Investco S/A, comprising 28,154 common shares and 18,529 preferred shares. This investment is recorded on a cost basis. Due to the participation of minority shareholders in the form of (i) preferred shares representing 39.69% of the total capital of Paulista Lajeado, and (ii) beneficiaries (founder-shares) which assign the right to 10% of net income before profit sharing, these effects, totaling R$ 75,425, were registered in the liabilities of the consolidated financial statements under Noncontrolling Shareholders Interest.

 

12.4 – Goodwill

 

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

37


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 13 )  PROPERTY, PLANT AND EQUIPMENT

 

         

Consolidated

June 30, 2010

March 31, 2010

Historical Cost

Accumulated Depreciation

Net Value

Net Value

In Service

 - Distribution

8,698,726

 (4,455,554)

 4,243,172

 4,151,900

 - Generation

2,162,232

(275,140)

 1,887,092

 1,899,105

 - Commercialization

 163,362

(79,460)

 83,903

 85,590

 - Administration

 147,216

(92,542)

 54,674

 55,304

 - Leased assets

 943,351

(275,595)

 667,756

673,493

12,114,887

 (5,178,291)

 6,936,597

 6,865,392

In Progress

 - Distribution

 455,522

-

 455,522

380,842

 - Generation

1,620,110

-

 1,620,110

 1,436,036

 - Commercialization

33,710

-

 33,710

 13,623

 - Administration

46,369

-

 46,369

 39,161

2,155,711

-

 2,155,711

 1,869,662

Subtotal

14,270,598

 (5,178,291)

 9,092,308

 8,735,054

Special obligations linked to the concession

(1,079,953)

(1,063,805)

Total

 8,012,355

 7,671,249

 

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

 

The balance of construction in progress in the generation segment mainly refers to work in progress on the projects of the operating subsidiaries and/or those under development, particularly the Foz do Chapecó and EPASA generation projects, with total property, plant and equipment of R$ 401,036 and R$ 457,050, respectively (R$ 1,224,529 and R$ 233,096, in proportion to the Company’s participation).

 

 

( 14 )  INTANGIBLE ASSETS

 

Parent Company

Consolidated

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

Intangible concession asset

 -

 -

2,124,918

2,138,273

Other intangible assets

6,380

4,410

 404,692

 387,028

Total

6,380

4,410

2,529,610

2,525,301

 

14.1 Breakdown of the Intangible Concession Asset

 

38


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

  

               

Consolidated

June 30, 2010

March 31, 2010

Annual amortization rate (*)

Historical Cost

Accumulated Amortization

Net Value

Net Value

June 30, 2010

INTANGIBLE CONCESSION ASSET

Intangible asset acquired, not merged

Parent Company

CPFL Paulista

          304,861

              (90,869)

        213,992

        218,965

5.93%

CPFL Piratininga

            39,065

              (11,253)

          27,812

          28,416

6.19%

CPFL Geração

            54,555

              (16,239)

          38,316

          39,107

5.83%

RGE

             3,150

                   (488)

            2,662

            2,714

6.53%

CPFL Santa Cruz

                    9

                      -  

                  9

                 -  

19.75%

CPFL Leste Paulista

             3,333

                   (158)

            3,175

                 -  

18.83%

CPFL Sul Paulista

             7,288

                   (433)

            6,855

                 -  

18.03%

CPFL Jaguari

             5,212

                   (495)

            4,717

                 -  

19.13%

CPFL Mococa

             9,110

                   (252)

            8,858

                 -  

19.52%

CPFL Jaguari Geração

             7,896

                   (173)

            7,723

                 -  

8.74%

          434,479

            (120,360)

        314,119

        289,202

Subsidiaries

CPFL Jaguariúna

                  -  

                      -  

                 -  

                 -  

-

ENERCAN

            10,233

                (1,961)

            8,272

            8,449

6.93%

Barra Grande

             3,081

                   (920)

            2,161

            2,206

5.92%

Chapecoense

             7,376

                      -  

            7,376

            7,376

-

EPASA

                498

                      -  

               498

               498

-

Santa Clara I

             4,571

                      -  

            4,571

            4,571

-

Santa Clara II

             4,571

                      -  

            4,571

            4,571

-

Santa Clara III

             4,571

                      -  

            4,571

            4,571

-

Santa Clara IV

             4,571

                      -  

            4,571

            4,571

-

Santa Clara V

             4,571

                      -  

            4,571

            4,571

-

Santa Clara VI

             4,571

                      -  

            4,571

            4,571

-

Eurus VI

             1,147

                      -  

            1,147

            1,147

-

Other

            14,488

              (10,870)

            3,618

            3,800

6.22%

            64,249

              (13,751)

          50,498

          50,902

Subtotal

          498,728

            (134,111)

        364,617

        340,104

Intangible asset acquired and merged – Deductible

Subsidiaries

RGE

       1,120,266

            (730,078)

        390,188

        394,927

3.76%

CPFL Geração

          426,450

            (211,591)

        214,859

        219,042

6.22%

Subtotal

       1,546,716

            (941,669)

        605,047

        613,969

Intangible asset acquired and merged – Reassessed

Parent Company

CPFL Paulista

       1,074,026

            (383,671)

        690,355

        706,282

5.93%

CPFL Piratininga

          115,762

              (33,347)

          82,415

          84,205

6.19%

RGE

          310,128

              (57,060)

        253,068

        257,953

6.33%

CPFL Santa Cruz

            61,685

              (24,875)

          36,810

          38,827

13.07%

CPFL Leste Paulista

            27,034

                (6,434)

          20,600

          21,646

15.48%

CPFL Sul Paulista

            38,168

                (8,967)

          29,201

          30,646

15.14%

CPFL Jaguari

            23,600

                (5,441)

          18,159

          19,089

15.76%

CPFL Mococa

            15,124

                (3,743)

          11,381

          11,984

15.96%

CPFL Jaguari Geração

            15,275

                (2,010)

          13,265

          13,568

7.94%

       1,680,802

            (525,548)

      1,155,254

      1,184,200

Total

       3,726,246

          (1,601,328)

      2,124,918

      2,138,273

(*) Relates to the proportionate rate for the amortized period

 

39


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

·          Intangible assets – Concession

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

- Intangible assets acquired, not merged

In the parent company, refer mainly to (i) the remaining goodwill on the acquisition of shares held by the noncontrolling shareholders of CPFL Geração in June 2005, CPFL Paulista and CPFL Piratininga in November 2005 and RGE in December 2007 and to (ii) the goodwill of R$ 32,848 generated on the merger in this quarter of all the shares held by the minority shareholders of the subsidiaries CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz (note 12).

- Intangible assets acquired and merged – Deductible

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

- Intangible asset acquired and merged – Reassessed

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

 

14.2  - Other Intangible assets

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

 

The changes in the balance of corporate interests in the quarter ended June 30, 2010 are as follows:

40


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

March 31, 2010

Addition

Disposal

Amortization

June 30, 2010

Intangible asset acquired, not merged

Historical cost

           465,880

               32,848

                  -  

                  -  

          498,728

Accumulated Amortization

          (125,776)

                      -  

                  -  

            (8,335)

         (134,111)

           340,104

               32,848

                  -  

            (8,335)

          364,617

Intangible asset acquired and merged – Deductible

Historical cost

         1,546,716

                      -  

                  -  

                  -  

       1,546,716

Accumulated Amortization

          (932,747)

                      -  

                  -  

            (8,922)

         (941,669)

           613,969

                      -  

                  -  

            (8,922)

          605,047

Intangible asset acquired and merged – Reassessed

Historical cost

         1,680,802

                      -  

                  -  

                  -  

       1,680,802

Accumulated Amortization

          (496,602)

                      -  

                  -  

          (28,946)

         (525,548)

         1,184,200

                      -  

                  -  

          (28,946)

       1,155,254

Subtotal

         2,138,273

               32,848

                  -  

          (46,203)

       2,124,918

Other intangible assets

           387,028

               24,773

                 (57)

            (7,052)

          404,692

Total

         2,525,301

               57,621

                 (57)

          (53,255)

       2,529,610

 

14.3 - Concession Agreements

 

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

 

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

41


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 15 )  INTEREST, LOANS AND FINANCING

 

Consolidated

June 30, 2010

March 31, 2010

Interest
Current and Noncurrent

Principal

Total

Interest
Current and Noncurrent

Principal

Total

Current

Noncurrent

Current

Noncurrent

At cost

LOCAL CURRENCY

 BNDES - Power Increases

                    64

              6,515

          10,381

          16,960

                   76

          6,814

            11,959

          18,849

 BNDES - Investment

              10,035

          304,767

      2,295,489

     2,610,291

             10,488

       325,095

        2,322,434

     2,658,017

 BNDES - Purchase of assets

                    44

              1,382

            5,048

            6,474

                   47

             966

              5,331

            6,344

 BNDES - Working Capital

                  664

            21,773

        130,786

        153,223

                 233

          4,172

            45,887

          50,292

 Furnas Centrais Elétricas S.A.

                    -  

                   -  

                 -  

                 -  

                   -  

         15,769

                   -  

          15,769

 Financial Institutions

              25,353

          143,698

        759,047

        928,098

              8,994

       275,105

            62,823

        346,922

 Other

                  565

            21,487

          27,198

          49,250

                 558

         22,404

            29,056

          52,018

 Subtotal

              36,725

          499,622

      3,227,949

     3,764,296

             20,396

       650,325

        2,477,490

     3,148,211

FOREIGN CURRENCY

 IDB

                  265

              3,943

          51,144

          55,352

                 271

          3,814

            51,571

          55,656

 Financial Institutions

                  491

              4,055

          46,087

          50,633

              1,215

          4,009

            47,566

          52,790

 Subtotal

                  756

              7,998

          97,231

        105,985

              1,486

          7,823

            99,137

        108,446

Total at cost

              37,481

          507,620

      3,325,180

     3,870,281

             21,882

       658,148

        2,576,627

     3,256,657

At Fair Value

FOREIGN CURRENCY

 Financial Institutions

               5,560

                   -  

        414,201

        419,761

             77,229

       653,835

          388,925

     1,119,989

Total

               5,560

                   -  

        414,201

        419,761

             77,229

       653,835

          388,925

     1,119,989

Total

              43,041

          507,620

      3,739,381

     4,290,042

             99,111

    1,311,983

        2,965,552

     4,376,646

 

42


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

At cost

 June 30, 2010

 March 31, 2010

Remuneration

Amortization

Collateral

Local currency

 BNDES - Power Increases

   CPFL Geração

 16,937

18,793

TJLP + 3.1% to 4.3% p.a.

36 to 84 monthly installments from February 2003 to December 2008

Guarantee of CPFL Paulista and CPFL Energia

   CPFL Geração

 23

56

 UMBND + 4.0% p.a.

 72 monthly installments from September 2004

Guarantee of CPFL Paulista and CPFL Energia

 BNDES - Investment

CPFL Paulista - FINEM II

 31,818

47,741

TJLP + 5.4% p.a.

48 monthly installments from January 2007

Guarantee of CPFL Energia and receivables

CPFL Paulista - FINEM III

 94,138

100,888

TJLP + 3.3% p.a.

72 monthly installments from January 2008

Guarantee of CPFL Energia and receivables

CPFL Paulista - FINEM IV

 221,943

234,312

TJLP + 3.28% to 3.4% p.a.

60 monthly installments from January 2010

Guarantee of CPFL Energia and receivables

CPFL Paulista - FINAME

 1,640

-

Fixed rate 4.5% p.a

96 monthly installments from January 2012

Guarantee of CPFL Energia

CPFL Piratininga - FINEM I

 11,847

17,777

TJLP + 5.4%p.a.

48 monthly installments from January 2007

Guarantee of CPFL Energia and receivables

CPFL Piratininga - FINEM II

 55,923

59,931

TJLP + 3.3%p.a.

72 monthly installments from January 2008

Guarantee of CPFL Energia and receivables

CPFL Piratininga - FINEM III

 94,468

99,741

TJLP + 3.28% to 3.4% p.a.

60 monthly installments from January 2010

Guarantee of CPFL Energia and receivables

CPFL Piratininga - FINAME

 649

-

Fixed rate 4.5% p.a

96 monthly installments from January  2012

Guarantee of CPFL Energia

RGE - FINEM III

 56,055

 61,678

TJLP + 5.0% p.a.

60 monthly installments from January 2008

Receivables / Reserve account

RGE - FINEM IV

 156,043

 164,753

TJLP + 3.28 to 3.40% p.a.

60 monthly installments from January 2010

Receivables / Guarantee of CPFL Energia

RGE - FINAME

 1,655

-

Fixed rate 4.5% p.a

96 monthly installments from January 2012

Guarantee of CPFL Energia

CPFL Santa Cruz

 9,390

 9,320

TJLP + 2.00% to 2.90% p.a.

54 monthly installments from December 2010

Guarantee of CPFL Energia

CPFL Mococa

 3,018

 3,018

TJLP + 2.9% p.a.

54 monthly installments from January 2011

Guarantee of CPFL Energia and receivables

CPFL Jaguari

 2,499

 2,497

TJLP + 2.9% p.a.

54 monthly installments from December 2010

Guarantee of CPFL Energia and receivables

CPFL Leste Paulista

 3,261

 2,022

TJLP + 2.9% p.a.

54 monthly installments from June 2011

Guarantee of CPFL Energia and receivables

CPFL Sul Paulista

 4,735

 3,347

TJLP + 2.9% p.a.

54 monthly installments from June 2011

Guarantee of CPFL Energia and receivables

BAESA

 128,151

 132,120

TJLP + 3.125% to 4.125%p.a.

144 monthly installments from September 2006

Pledge of shares, credit rights and revenue

BAESA

 27,462

 27,882

UMBND + 3.125% p.a. (1)

144 monthly installments from November 2006

Pledge of shares, credit rights and revenue

ENERCAN

 290,520

 298,901

TJLP + 4% p.a.

144 monthly installments from April 2007

Letters of Credit

ENERCAN

 18,195

 18,459

UMBND + 4% p.a.

144 monthly installments from April 2007

Letters of Credit

CERAN

 259,980

 265,696

TJLP + 5% p.a.

168 monthly installments from December 2005

Guarantee of CPFL Energia

CERAN

 39,521

 40,018

UMBND + 5% p.a. (1)

168 monthly installments from February 2006

Guarantee of CPFL Energia

CERAN

 118,271

 120,668

TJLP + 3.69% p.a. (Average of percentage)

168 monthly installments from November 2008

Guarantee of CPFL Energia

Foz do Chapecó

 920,263

 901,115

TJLP + 2.49% to 2.95% p.a.

192 monthly installments from October 2011

Pledge of Shares, credit rights and those arising from the Concession, blocked income and guarantee of CPFL Energia

CPFL Bioenergia

 22,891

 15,540

TJLP + 1.9% p.a.

144 monthly installments from June 2011

Trust property, credit rights and guarantee of CPFL Energia

CPFL Bioenergia

 35,955

 30,593

Fixed rate 4.5% p.a

102 monthly installments from June 2011

Trust property, credit rights and guarantee of CPFL Energia

 BNDES - Other

CPFL Brasil - Purchase of assets

 6,474

 6,344

TJLP + de 1.94% à 2.84% p.a.

36 monthly installments from May 2009

 Linked to the asset acquired

CPFL Piratininga - Working capital

 51,635

 50,292

TJLP + 5.0% (2)

24 monthly installments from February 2011

 No guarantee

   CPFL Geração - FINEM - Working capital

 50,479

-

TJLP + 4.95% p.a.

24 monthly installments from February 2011

Guarantee of CPFL Energia

   CPFL Geração - FINAME - Working capital

 51,109

-

TJLP + 4.95% p.a. (3)

23 monthly installments from February 2011

Guarantee of CPFL Energia

 Furnas Centrais Elétricas S.A.

  CPFL Geração

-

 15,769

IGP-M + 10% p.a.

24 monthly installments from June 2008

 Energy produced by plant

Financial Institutions

CPFL Paulista

   Banco do Brasil - Law 8727

 37,409

 38,410

IGP-M + 7.42% p.a.

240 monthly installments from May 1994

Receivables

   Banco do Brasil

 104,628

-

107% of CDI

1 installment in April 2015

Guarantee of CPFL Energia

CPFL Piratininga

  Banco Alfa

-

 50,000

105.1% of CDI

1 installment in April 2010

No guarantee

CPFL Santa Cruz

   HSBC

 42,719

 41,681

CDI + 1.10% p.a.

1 installment in June 2011

Guarantee of CPFL Energia

CPFL Geração

   Banco Itaú  BBA

 102,920

 100,557

106.0% of CDI

1 installment in March 2011

Guarantee of CPFL Energia

   Banco Alfa

-

 99,485

105.1% of CDI

1 installment in April 2010

Guarantee of CPFL Energia

   Banco Brasil

 625,865

-

107.0% of CDI

1 installment in April 2015

Guarantee of CPFL Energia

CERAN

   Banco Bradesco

 14,557

 16,789

CDI + 2% p.a.

24 monthly installments from November 2008

No guarantee

 Other

    Eletrobrás

       CPFL Paulista

 6,461

 7,554

RGR + 6.0% to 9.0% p.a.

Monthly installments until July 2016

 Receivables/Promissory notes

       CPFL Piratininga

 1,170

 1,292

RGR + 6% p.a.

Monthly installments until July 2016

 Receivables/Promissory notes

       RGE

 11,749

 11,921

RGR + 6% p.a.

Monthly installments until June 2020

 Receivables/Promissory notes

       CPFL Santa Cruz

 4,304

 4,482

RGR + 6% p.a.

Monthly installments until April 2018

 Receivables/Promissory notes

       CPFL Leste Paulista

 1,158

 1,190

RGR + 6% p.a.

Monthly installments until February 2022

 Receivables/Promissory notes

       CPFL Sul Paulista

 1,681

 1,730

RGR + 6% p.a.

Monthly installments until July 2018

 Receivables/Promissory notes

       CPFL Jaguari

 118

 30

RGR + 6% p.a.

Monthly installments until May 2017

 Receivables/Promissory notes

       CPFL Mococa

 434

 430

RGR + 6% p.a.

Monthly installments until February 2022

 Receivables/Promissory notes

    Other

 22,175

 23,389

Local Currency - At cost

3,764,296

3,148,211

Foreign currency

 IBD - Enercan

 55,352

 55,656

 US$ + Libor + 3.5% p.a.

 49 quarterly installments from June 2007

 Guarantee of CPFL Energia

Financial Institutions

CPFL Paulista (5)

Debt Conversion Bond

 4,300

 5,363

 US$ + Libor 6 months+ 0.875% p.a.

 17 semiannual installments from April 2004

 Revenue/Government SP guaranteed

C-Bond

 7,783

 8,830

 US$ + 8% p.a.

 21 semiannual installments from April 2004

 Revenue/Government SP guaranteed

Discount Bond

 15,756

 15,717

 US$ + Libor 6 months+ 0.8125% p.a.

 1 installment in April 2024

 Escrow deposits and revenue/ Gov.SP guarantee

PAR-Bond

 22,794

 22,880

 US$ + 6% p.a.

 1 installment in April 2024

 Escrow deposits and revenue/ Gov.SP guarantee

Foreign currency - At cost

 105,985

 108,446

Total at cost

3,870,281

3,256,657

Foreign currency

At fair Value

Financial institution

CPFL Paulista

Banco do Brasil

-

 103,996

 Yen + 5.7778% p.a. 

 1 installment in January 2011

 No guarantee

Banco ABN AMRO Real

 419,761

 392,651

 Yen +1.49% p.a.(4)

 1 installment in January 2012

 No guarantee

CPFL Geração

Banco do Brasil

-

 104,141

 Yen + 5.8% p.a. 

 1 installment in April 2010

 Guarantee of CPFL Energia

Banco do Brasil

-

 519,201

 Yen + 2.5% to 5.8% p.a. 

 1 installment in January 2011

 Guarantee of CPFL Energia

Foreign currency - Fair value

 419,761

1,119,989

Total - Consolidated

4,290,042

4,376,646

The subsdiaries hold  swaps converting the local cost of currency variation to interest tax variation in reais, corresponding to

(1) 169.0% of CDI

(3) 106% of CDI

(2) 106% to 106.5% of CDI

(4) 104.98% of CDI

(9) As certain assets are dollar indexed, a partial swap of R$ 30,841 was contracted, converting the currency variation to 112.9 % of the CDI.

 

43


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

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

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

June 30, 2010

Value at cost

Fair value (accounting balance)

Interest

Principal

Total

Foreign currency

Noncurrent

At fair value

CPFL Paulista

Banco ABN AMRO Real

 5,560

 418,528

 424,088

419,761

Total Foreign currency - Consolidated

 5,560

 418,528

 424,088

419,761

 

The change in the fair value of this debt is recorded in the financial income (expense) of the subsidiaries. The gain obtained by marking this debt to market (R$ 4,327) is offset by the effect of R$ 8,020 obtained by marking to market the derivative financial instrument contracted as a hedge against exchange and interest variations (Note 28), generating a net loss of R$ 3,693.

 

Main funding in the period:

Local currency

 

BNDES – Investment:

 

FINEM IV (CPFL Paulista) - The subsidiary obtained approval for financing of R$ 345,990 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. No funds were released during this quarter and the remaining estimated balance of R$ 101,025 is scheduled for release by the end of 2010.

 

FINEM III (CPFL Piratininga) – The subsidiary obtained approval for financing of R$ 155,178 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. No funds were received during this quarter and the remaining balance of R$ 50,733 is scheduled for release by of the end of 2010. 

44


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

FINAME (CPFL Paulista) – The subsidiary obtained approval for financing of R$ 92,183 from the BNDES in 2009, part of a FINAME credit line to be used to acquire equipment for the Electricity System in 2010 and 2011. The subsidiary received R$ 1,637 in this quarter and the remaining balance of R$ 90,546 is scheduled for release by the end of 2011. The interest will be paid quarterly and as from January 15, 2012, it will be amortized on a monthly basis. There are no restrictive covenants.

 

FINAME (CPFL Piratininga) – The subsidiary obtained approval for financing of R$ 48,116 from the BNDES in 2009, part of a FINAME credit line to be used to acquire equipment for the Electricity System in 2010 and 2011. The subsidiary received R$ 648 in this quarter and the remaining balance of R$ 47,468 is scheduled for release by the end of 2011. The interest will be paid quarterly and as from January 15, 2012, it will be amortized on a monthly basis.

 

FINAME (RGE) – The subsidiary obtained approval for financing of R$ 32,419 from the BNDES in 2009, part of a FINAME credit line to be used to acquire equipment for the Electricity System in 2010 and 2011. The subsidiary received R$ 1,652 in this quarter and the remaining balance of R$ 30,767 is scheduled for release by the end of 2011. The interest will be paid quarterly and as from January 15, 2012, it will be amortized on a monthly basis.

 

 

BNDES – Working Capital:

 

FINEM/FINAME – (CPFL Geração) – A credit line was obtained from Banco do Brasil during this quarter, with FINEM/FINAME funding, the purpose of which is to reinforce working capital. The interest will be capitalized and incorporated to the principal during the grace period and paid monthly thereafter. There are no restrictive covenants.

 

Financial Institutions:

 

CPFL Paulista and CPFL Geração – In this quarter, the subsidiaries CPFL Paulista and CPFL Geração novated loans held by Banco do Brasil. The objective of these novations was to extend the due dates of these loans, which also resulted in changes in the indexes used, becoming tied to the Interbank Deposit rate (CDI). The interest is to be paid half-yearly as from October 2010.

 

 

RESTRICTIVE COVENANTS

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

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

 

( 16 )  DEBENTURES

 

45


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

  

Consolidated

June 30, 2010

March 31, 2010

Issued

Remuneration

Effective rate

Amortization Conditions

Collateral

Interest

Current

Noncurrent

Total

Interest

Current

Noncurrent

Total

Parent Company

 

 

 

 

 

 

 

 

3rd Issue

Single series

45,000

CDI + 0.45% p.a. (1)

CDI + 0.53% p.a.

3 annual installments from September 2012

Quirografária

13,673

-

 450,000

 463,673

3,122

 -

450,000

 453,122

CPFL Paulista

 3rd Issue

 1st series

64,000

104.4% of CDI p.a.

104.4% CDI  + 0.05% p.a.

3 annual installments from December 2011

CPFL Energia guarantee

5,027

-

 640,000

 645,027

18,224

 -

640,000

 658,224

4th Issue

Single series

175,000

110.3% of CDI p.a.

110.3% CDI +
0.79% p.a.

2 annual installments from July 2010

CPFL Energia guarantee

8,216

 64,301

 109,947

 182,464

3,840

64,301

109,774

 177,915

13,243

 64,301

 749,947

 827,491

22,064

64,301

749,774

 836,139

CPFL Piratininga

 1st Issue

   1st series

40,000

104.0% of CDI p.a.

104.0% CDI +
0.16% p.a.

2 annual installments from January 2010

CPFL Energia guarantee

8,841

 199,738

 -

 208,579

4,136

 200,000

-

 204,136

 2nd issue

Single series

1

106.45% of CDI p.a.

106.45% CDI +
0.3% p.a.

May 2, 2011

Unsecured

 -

-

 -

 -

4,389

 -

100,000

 104,389

 3rd issue

Single series

260

 107.0% of CDI p.a.

107.0% CDI + 0.67% p.a.

 April 1st, 2015

CPFL Energia guarantee

6,075

-

 258,997

 265,072

 -

 -

-

-

14,916

 199,738

 258,997

 473,651

8,525

 200,000

100,000

 308,525

RGE

 2nd issue

   1st series

2,620

IGP-M + 9.6% p.a.

IGP-M + 9.73% p.a.

April 1st, 2011

Unsecured

604

 26,930

 -

27,534

2,474

 555

26,200

 29,229

 3rd issue

   1st series

1

CDI + 0.60% p.a. (2)

CDI + 0.71% p.a.

3 annual installments from December 2011

CPFL Energia guarantee

800

-

 100,000

 100,800

2,926

 -

100,000

       102,926

   2nd series

1

CDI + 0.60% p.a. (3)

CDI + 0.71% p.a.

3 annual installments from December 2011

CPFL Energia guarantee

6,369

-

 140,000

 146,369

2,986

 -

140,000

       142,986

   3rd series

1

CDI + 0.60% p.a. (4)

CDI + 0.71% p.a.

3 annual installments from December 2011

CPFL Energia guarantee

1,527

-

40,000

41,527

 567

 -

40,000

         40,567

   4th series

1

CDI + 0.60% p.a. (5)

CDI + 0.84% p.a.

3 annual installments from December 2011

CPFL Energia guarantee

1,165

-

50,000

51,165

2,211

 -

50,000

         52,211

   5th series

1

CDI + 0.60% p.a. (5)

CDI + 0.84% p.a.

3 annual installments from December 2011

CPFL Energia guarantee

1,165

-

50,000

51,165

2,211

 -

50,000

         52,211

4th issue

   Single series

185,000

110.30% of CDI p.a

110.3% CDI +
0.82% p.a.

July 1st, 2011

Unsecured

8,685

-

 184,242

 192,927

4,060

 -

183,990

       188,050

20,315

 26,930

 564,242

 611,487

17,435

 555

590,190

       608,180

CPFL Leste Paulista

 1st Issue

   Single series

2,400

111.90% of CDI p.a.

111.9% CDI +
0.65% p.a.

July 1st, 2011

CPFL Energia guarantee

1,143

-

23,929

25,072

 534

 -

23,911

         24,445

CPFL Sul Paulista

 1st Issue

   Single series

1,600

111.00% of CDI p.a.

111% CDI +
0.6% p.a.

July 1st, 2011

CPFL Energia guarantee

756

-

15,957

16,713

 353

 -

15,946

         16,299

CPFL Jaguari

 1st Issue

   Single series

1,000

111.90% of CDI p.a.

111.9% CDI +
0.79% p.a.

July 1st, 2011

CPFL Energia guarantee

476

-

9,965

10,441

 223

 -

 9,956

         10,179

CPFL Brasil

 1st Issue

July 1st, 2011

   Single series

16,500

111% of CDI p.a.

111% CDI +
0.57% p.a.

July 1st, 2011

CPFL Energia guarantee

7,796

-

 164,493

 172,289

3,644

 -

164,336

       167,980

CPFL Geração

2nd issue

   Single series

425,250

109.8% of CDI

109.8% CDI +
0.58% p.a.

July 1st, 2011

CPFL Energia guarantee

19,872

-

423,908

 443,780

9,289

 -

423,600

       432,889

3rd issue

   Single series

264,000

 107.0% of CDI

 107.0% of CDI + 0.67% p.a.

 1 installment in April 2015

CPFL Energia guarantee

6,168

-

262,738

 268,906

 -

 -

-

                -  

EPASA

1st Issue

   Single series

450

112.6% of CDI p.a.

116.9% of CDI p.a.

December 1st, 2010

CPFL Energia guarantee

14,765

 228,982

 -

 243,747

8,812

 228,726

-

       237,538

BAESA

   1st series

9,000

CDI + 0.3% p.a.

CDI + 0.43% p.a.

Quarterly with settlement in August 2016

Letters of Guarantee

316

 3,139

16,479

19,934

 289

3,164

17,403

         20,856

   2nd series

9,000

CDI + 0.4% p.a

106% CDI +
0.12% p.a.

Quarterly with settlement in August 2016

Letters of Guarantee

778

 3,110

6,221

10,109

 548

3,085

 6,082

           9,715

1,094

 6,249

22,700

30,043

 837

6,249

23,485

         30,571

114,217

 526,200

2,946,876

3,587,293

74,838

 499,831

 2,551,198

3,125,867

The Company and its subsdiaries hold  swap converting the local cost of currency variation to interest tax variation in reais, corresponding to

(1) 104.4% of CDI

(3) 104.85% of CDI

(5) 104.87% of CDI

(2) 105.07% of CDI

(4) 104.9% of CDI

 

 

 

 

46


 

(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

Funding in the period:

CPFL Piratininga

260 non-convertible, subordinated, registered book-entry debentures in a single series were subscribed and paid up in April 2010. The unit par value on the date of issue was R$ 1,000, which generated total funding of R$ 260,000 (R$ 258,692 net of issuing costs). Interest on these debentures is payable half yearly as from October 1, 2010. The funding raised was used to reinforce the Company’s working capital and for early redemption of the subordinated ordinary debentures from the Company’s 2nd public issue of October 1, 2008.

 

The funds raised were distributed as follows: (i) approximately 60% (sixty percent) to reinforce the Company’s working capital; and (ii) approximately 40% (forty percent) for early redemption of the subsidiary's second public issue of simple subordinated debentures, issued on October 1, 2008, with a debit balance at March 31, 2010 of R$ 104,389.

 

 

CPFL Geração

The subsidiary issued 264 non-convertible unsecured debentures in a single series on April 1, 2010. The unit face value on the date of issue was R$ 1,000, which generated total funding of R$ 264,000 (R$ 262,672 net of issuing costs). Interest on the debentures will be paid half yearly as from October 1, 2010. The funding raised by this debenture issue was used to reinforce working capital

 

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

 

 

RESTRICTIVE COVENANTS

The debentures issued during this quarter by the subsidiaries CPFL Piratininga and CPFL Geração are subject to certain restrictive covenants and include clauses that require the subsidiaries to maintain certain financial ratios within pre-established parameters. The financial ratios demanded for the funding raised in this period are as follows:

 

CPFL Piratininga:

·         Net indebtedness divided by EBITDA – maximum of 3.0;

·         EBITDA divided by Financial Income (Expense) – minimum of 2.25;

 

CPFL Geração:

·         Net indebtedness divided by EBITDA – maximum of 4.5;

·         EBITDA divided by Financial Income (Expense) – minimum of 2.

 

The other debentures are subject to certain restrictive covenants, the details of which are set forth in the December 31, 2009 financial statements.

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

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

47


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 17 )  SUPPLIERS

 

 

 

Consolidated

Current

 

June 30, 2010

 

March 31, 2010

 

 

 

 

 

System Service Charges

 

                53,037

 

                47,851

Energy Purchased

 

              647,881

 

              637,052

Electricity Network Usage Charges

 

              140,556

 

              133,250

Materials and Services

 

              167,176

 

              107,492

Regulatory Liability (note 3)

 

                67,547

 

                66,077

Other

 

                  2,225

 

                  2,947

Total

 

           1,078,422

 

              994,669

 

 

 

 

 

Noncurrent

 

 

 

 

Electricity Network Usage Charges

 

                21,328

 

                31,992

Total

 

                21,328

 

                31,992

 

( 18 )  TAXES AND CONTRIBUTIONS PAYABLE

 

 

 

Consolidated

 

 

Current

 

Noncurrent

 

 

June 30, 2010

 

March 31, 2010

 

June 30, 2010

 

March 31, 2010

ICMS (State VAT)

 

             281,782

 

             333,334

 

                       -  

 

                       -  

PIS (Tax on Revenue)

 

               14,338

 

               12,584

 

                       -  

 

                       -  

COFINS (Tax on Revenue)

 

               67,238

 

               58,762

 

                 1,309

 

                 1,476

IRPJ (Corporate Income Tax)

 

               93,881

 

               76,271

 

                       -  

 

                       -  

CSLL (Social Contribution Tax)

 

               23,285

 

               23,549

 

                       -  

 

                       -  

IRRF Interest on Shareholders' Equity

 

               13,798

 

                       -  

 

                       -  

 

                       -  

Other

 

               30,395

 

               28,116

 

                       -  

 

                       -  

Total

 

             524,717

 

             532,616

 

                 1,309

 

                 1,476

 

( 19 )  EMPLOYEE PENSION PLANS

The subsidiaries sponsor supplementary retirement and pension plans for their employees, with the following characteristics:

 

I – CPFL Paulista

 

The plans currently in effect for the employees of the subsidiary CPFL Paulista through the CESP Foundation are Supplementary Pension Plans, with a defined benefit plan in place up to October 31, 1997, after which a mixed benefit plan was adopted.

On modification of the Pension Plan in October 1997, the subsidiary recognized an obligation to pay in respect of the plan deficit determined at the time by the external actuaries of Fundação CESP. This deficit will be liquidated in 240 monthly installments and 20 annual installments, maturing in October 2017, plus interest of 6% p.a. and restatement based on the IGP-DI (FGV). Through the addendum to the agreement with Fundação CESP dated January 17, 2008, the payment terms were changed to 238 monthly payments and 19 annual installments, in relation to the base date of December 31, 2007, with final maturity on October 31, 2027. The balance of the liability as of June 30, 2010 is R$ 522,485 (R$ 510,858 in March 31, 2010). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CVM Decision no 371/00.

48


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

II – CPFL Piratininga

A Supplementary Retirement and Pension Plan is currently in effect for CPFL Piratininga’s employees, through the CESP Foundation with a defined benefit plan (Proportional Paid-Up Supplementary Benefit Plan – BSPS) in effect up to March 31, 1998, and after that date, a plan with a defined benefit component and a defined contribution component.

 

In September 1997, through a contractual instrument of adjustment of reserves to be amortized, Eletropaulo Metropolitana Eletricidade de São Paulo S.A. (the predecessor of Bandeirante) recognized an obligation to pay in respect of the plan deficit determined at the time by the external actuaries of  Fundação CESP, to be liquidated in 240 monthly installments and 20 annual installments, maturing in October 2017 and amortized monthly, plus interest of 6% p.a. and restatement based on the IGP-DI (FGV). Under the Contractual Amendment, signed with Fundação CESP on January 17, 2008, the payment terms were amended to 221 monthly payments and 18 annual installments, in relation to the base date of December 31, 2007, with final maturity on May 31, 2026. The balance of the liability as of June 30, 2010 is R$ 154,308 (R$ 151,034 as of March 31, 2010).  The contract amount differs from the accounting entries made by the subsidiary, which are in conformity with CVM Decision no 371/00.

 

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

 

III – RGE

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

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

 

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

 

IV – CPFL Santa Cruz

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

 

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

49


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

V – CPFL Geração

The plan currently in force for the employees of subsidiary CPFL Geração through the CESP Foundation is a Supplementary Pension Plan, along the same lines as the CPFL Paulista plan.

With the modification of the Retirement Plan, at that point maintained by CPFL Paulista, in October 1997, a liability was recognized as payable by the subsidiary CPFL Geração, relating to the plan deficit calculated by the external actuaries of Fundação CESP, which is being amortized on a 240 monthly installments and 20 annual installments, until October 2017, plus interest of 6% p.a. and restatement according to the IGP-DI (FGV). Under the Contractual Amendment, signed with Fundação CESP on January 17, 2008, the payment terms were amended to 238 monthly installments and 19 annual installments, in relation to the base date of December 31, 2007, with final maturity on October 31, 2027. The balance of the obligation, as of June 30, 2010 is R$ 10,512 (R$ 10,278 as of March 31, 2010). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CVM Decision no 371/00.

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

 

VI – CPFL Jaguariúna

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

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

 

VII – Changes in the defined benefit plans

In accordance with CVM Decision Nº 371/00, the changes in the net actuarial liability in this quarter are as follows:

 

 

 

June 30, 2010

 

 

 CPFL

 

 CPFL

 

RGE

 

 CPFL

 

Consolidated

 

 

Paulista

 

Piratininga

 

 

 

Geração

 

 

Net actuarial liability at the beginning of the period

 

       318,041

 

         94,523

 

        (11,003)

 

           5,018

 

             406,579

Income recognized in income statement

 

        (17,692)

 

          (3,516)

 

             (293)

 

             (299)

 

             (21,800)

Sponsor's contributions during the year

 

        (11,461)

 

          (3,396)

 

             (343)

 

             (251)

 

             (15,451)

Net actuarial liability at the end of the year

 

       288,888

 

         87,611

 

        (11,639)

 

           4,468

 

             369,328

Other contributions

 

         13,384

 

             (232)

 

           4,992

 

              154

 

               18,298

Total

 

       302,272

 

         87,379

 

          (6,647)

 

           4,622

 

             387,626

 

 

 

 

 

 

 

 

 

 

 

Current

 

         30,183

 

           9,698

 

           2,470

 

              655

 

               43,006

Noncurrent

 

       272,089

 

         77,681

 

          (9,117)

 

           3,967

 

             344,620

Total

 

       302,272

 

         87,379

 

          (6,647)

 

           4,622

 

             387,626

 

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

 

 

 

50


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

2nd quarter 2010

 

 

 CPFL

 

 CPFL

 

RGE

 

 CPFL

 

Consolidated

 

 

Paulista

 

Piratininga

 

 

 

Geração

 

 

Cost of service

 

              275

 

           1,202

 

              288

 

                36

 

                 1,801

Interest on actuarial liabilities

 

         73,114

 

         18,883

 

           4,587

 

           1,586

 

               98,170

Expected return on assets

 

        (91,072)

 

        (23,288)

 

          (5,929)

 

          (1,921)

 

           (122,210)

Unrecognized cost of past service

 

                 -  

 

                  3

 

                 -  

 

                 -  

 

                        3

Subtotal

 

        (17,683)

 

          (3,200)

 

          (1,054)

 

             (299)

 

             (22,236)

Expected contributions from participants

 

                 (9)

 

             (316)

 

              468

 

                 -  

 

                    143

Subtotal

 

        (17,692)

 

          (3,516)

 

             (586)

 

             (299)

 

             (22,093)

Decrease of 50% on Prepaid Pension Expense (*)

 

                 -  

 

                 -  

 

              293

 

                 -  

 

                    293

Total Income

 

        (17,692)

 

          (3,516)

 

             (293)

 

             (299)

 

             (21,800)

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd quarter 2009

 

 

 CPFL

 

 CPFL

 

RGE

 

 CPFL

 

Consolidated

 

 

Paulista

 

Piratininga

 

 

 

Geração

 

 

Cost of service

 

              361

 

           1,367

 

              314

 

                41

 

                 2,083

Interest on actuarial liabilities

 

         75,755

 

         19,245

 

           4,407

 

           1,633

 

             101,040

Expected return on assets

 

        (76,088)

 

        (19,388)

 

          (4,597)

 

          (1,617)

 

           (101,690)

Unrecognized cost of past service

 

                 -  

 

                  3

 

                 -  

 

                 -  

 

                        3

Amortization of unrecognized actuarial gains

 

                 -  

 

                 -  

 

                 -  

 

                16

 

                      16

Subtotal

 

                28

 

           1,227

 

              124

 

                73

 

                 1,452

Expected contributions from participants

 

                 (8)

 

             (324)

 

             (274)

 

                 -  

 

                  (606)

Subtotal

 

                20

 

              903

 

             (150)

 

                73

 

                    846

Decrease of 50% on Prepaid Pension Expense (*)

 

                 -  

 

                 -  

 

                75

 

                 -  

 

                      75

Total (Income) Expense

 

                20

 

              903

 

               (75)

 

                73

 

                    921

 

 

 

 

 

 

 

 

 

 

 

 (*) As the sponsor, RGE matches the participants’ contributions to this plan, only 50% was recorded.

 

 

 

 

 

 

 

The principal premises considered in the actuarial calculations were:

 

 

 

CPFL Paulista, CPFL Piratininga e

CPFL Geração

 


RGE

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nominal discount rate for actuarial liabilities:

10.24% p.a.

 

10.24% p.a.

 

10.24% p.a.

 

10.24% p.a.

Nominal Return Rate on Assets:

(*)

 

(**)

 

11.28% p.a.

 

10.24% p.a.

Estimated Rate of nominal salary increase:

6.08% p.a.

 

6.08% p.a.

 

6.08% p.a.

 

6.08% p.a.

Estimated Rate of nominal benefits increase:

0.0% p.a.

 

0.0% p.a.

 

0.0% p.a.

 

0.0% p.a.

Estimated long-term inflation rate (basis for establishing nominal rates above)

4.0% p.a.

 

4.0% p.a.

 

4.0% p.a.

 

4.0% p.a.

General biometric mortality table:

AT-83

 

AT-83

 

AT-83

 

AT-83

Biometric table for the onset of disability:

TÁBUA MERCER

 

TÁBUA MERCER

 

Light-Average

 

Light-Average

Expected turnover rate:

0.30 / (Service time + 1)

 

0.30 / (Service time + 1)

 

null

 

null

 

 

 

 

 

 

 

 

Likelihood of reaching retirement age:

100% when a beneficiary of the Plan first becomes eligible

 

100% when a beneficiary of the Plan first becomes eligible

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

 

51


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 20 )  REGULATORY CHARGES

 

 

 

Consolidated

 

 

June 30, 2010

 

March 31, 2010

Fee for the Use of Water Resources

 

4,000

 

3,377

Global Reverse Fund - RGR

 

14,860

 

10,468

ANEEL Inspection Fee

 

 2,113

 

1,934

Fuel Consumption Account - CCC

 

48,690

 

44,216

Energy Development Account - CDE

 

40,044

 

40,033

Total

 

109,707

 

100,028

 

 

( 21 )  RESERVE FOR CONTINGENCIES

 

 

Consolidated

 

June 30, 2010

 

March 31, 2010

 

 Reserve for contingencies - Gross

 

 Escrow Deposits related to Contingencies (1)

 

 Reserve for Contingencies, net

 

 Other escrow deposits

(2)

 

 Reserve for contingencies - Gross

 

 Escrow Deposits related to Contingencies (1)

 

 Reserve for Contingencies, net

 

 Other deposits, Judicial

(2)

Labor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Various

41,336

 

39,069

 

2,267

 

96,757

 

42,864

 

39,108

 

3,756

 

92,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Civil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Damages

 10,992

 

 10,962

 

 30

 

74,967

 

10,526

 

10,526

 

-  

 

72,816

Tariff Increase

 13,185

 

3,364

 

9,821

 

5,903

 

12,805

 

3,736

 

9,069

 

5,420

Energy Purchased

 -  

 

 -  

 

-  

 

-  

 

-  

 

-  

 

-  

 

-  

Other

12,989

 

6,333

 

6,656

 

8,882

 

13,398

 

6,196

 

7,202

 

9,381

 

 37,166

 

 20,659

 

 16,507

 

 89,752

 

 36,729

 

 20,458

 

 16,271

 

87,617

Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINSOCIAL

18,638

 

18,638

 

-  

 

34,467

 

18,614

 

18,614

 

-  

 

34,420

Increase in basis - PIS and COFINS

830

 

721

 

109

 

127

 

795

 

721

 

74

 

428

Interest on  Shareholders’ Equity - PIS and COFINS

10,193

 

9,800

 

393

 

393

 

9,987

 

9,800

 

187

 

187

PIS and COFINS - Non-Cumulative Method

85,994

 

-  

 

85,994

 

-  

 

-  

 

-  

 

-  

 

-  

Income Tax

69,398

 

49,471

 

19,927

 

468,351

 

67,184

 

47,601

 

19,583

 

459,961

Other

8,153

 

5,695

 

2,458

 

11,797

 

7,979

 

5,591

 

2,388

 

11,011

 

193,206

 

84,325

 

108,881

 

515,135

 

104,559

 

82,327

 

22,232

 

506,007

Total

271,708

 

144,053

 

127,655

 

701,644

 

184,152

 

141,893

 

 42,259

 

686,348

 

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

 

Consolidated

March 31, 2010

Addition

Reversal

Payment

Monetary Restatement

June 30, 2010

Labor

42,864

1,993

 (192)

 (3,329)

 -

41,336

Civil

36,729

1,729

 (211)

 (1,219)

138

37,166

Tax

104,559

131,719

 (39,502)

 -

 (3,573)

193,206

Reserve for Contingencies - Gross

184,152

135,441

 (39,905)

 (4,548)

 (3,435)

271,708

Escrow Deposits (1) + (2)

828,241

13,906

 (742)

 (6,266)

10,558

845,697

 

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

52


 

(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

Fiscal: PIS and COFINS – Non-cumulative method

 

In the understanding of the subsidiaries’ management, and as commented in Note 3.c.5, the subsidiaries reclassified the consolidated amount of R$ 129,632 recorded as a regulatory liability to Provisions for Contingencies. This reclassification was decided in light of the taxation discussions regarding the non-cumulative incidence of PIS and COFINS on certain sectorial charges. After the reclassification of these amounts considering current tax legislation in force, the subsidiaries posted adjustments by (i) reversing a contingency of R$ 39,502 and posting to the “General and Administrative Expenses – Legal, Judicial and Indemnities” account and (ii) reversing a monetary restatement of a consolidated amount of R$4,136 to set against “Financial Expense – Monetary restatements and exchange variations”.

Possible Losses - The Company and its subsidiaries are parties to other suits processes and risks in which management, supported by its legal advisers, believes that the chances of a successful outcome are possible, due to a solid defensive base in these cases. These questions do not yet indicate a trend in the decisions of the courts or any other decision in similar proceedings considered probable or remote, and therefore no provision has been established for these. As of June 30, 2010, the claims relating to possible losses were as follows: (i) R$ 313,548 for labor suits (R$ 306,018 as of March 31, 2010); (ii) R$ 545,152 for civil suits, mainly for suits for personal injuries, environmental damages and tariff increases (R$ 504,512 as of March 31, 2010); and (iii) R$ 639,813 in respect of tax suits, relating basically to Income Tax, ICMS, FINSOCIAL and PIS and COFINS (R$ 700,299 as of March 31, 2010).

 

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

53


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 22 )  OTHER ACCOUNTS PAYABLE

 

Consolidated

Current

Noncurrent

June 30, 2010

March 31, 2010

June 30, 2010

March 31, 2010

Consumers and Concessionaires

54,352

55,417

 -

 -

Regulatory Liability (note 3 )

119,500

241,799

33,863

28,784

Energy Efficiency Program - PEE

60,124

63,986

51,272

54,213

Research & Development - P&D

112,049

103,165

14,630

16,287

National Scientific and Technological Development Fund - FNDCT

4,504

4,711

 -

 -

Energy Research Company - EPE

1,921

2,005

 -

 -

Fund for Reversal

 -

 -

17,750

17,750

Advances

7,509

7,359

63,884

62,738

Interest on Compulsory Loan

1,380

1,740

 -

 -

Provision for Environmental Expenses

1,851

2,455

372

3,859

Payroll

6,097

6,634

 -

 -

Profit sharing

29,003

40,082

 -

 -

TAC ANEEL fine (DEC/FEC and voltage level)

 -

8,755

 -

 -

Collections agreement (note 11)

44,533

22,826

 -

 -

Other

51,540

34,748

9,065

8,175

Total

494,363

595,682

190,836

191,806

 

( 23 )  SHAREHOLDERS’ EQUITY

The shareholders' participations in the Company's equity as of June 30, 2010 and March 31, 2010 are distributed as follows:

 

Amount of shares

June 30, 2010

March 31, 2010

Shareholders

Common Shares

Interest %

Common Shares

Interest %

VBC Energia S.A.

122,948,720

 25.55

 122,948,720

 25.62

BB Carteira Livre I FIA

149,233,727

 31.02

 149,233,727

 31.10

Bonaire Participações S.A.

60,713,511

 12.62

 60,713,511

 12.65

BNDES Participações S.A.

40,526,739

 8.42

 40,526,739

 8.44

Board Members

 112

-

 112

-

Executive Officers

5,624

-

 14,759

-

Other Shareholders

107,708,697

 22.39

 106,473,370

 22.19

Total

481,137,130

 100.00

 479,910,938

 100.00

 

23.1 –Capital Increase

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

 

23.2 – Dividends and Interest on Shareholders’ Equity

54


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Parent Company

June 30, 2010

March 31, 2010

Dividends payable

VBC Energia S.A.

 197,896

167,809

BB Carteira Livre I FIA

 240,204

203,685

Bonaire Participações S.A.

 97,723

82,866

BNDES Participações S.A.

 65,231

55,314

Brumado Holdings S.A.

 27,767

23,545

Other Shareholders

 162,342

138,794

Total

 791,163

672,013

 

In this quarter, the Company paid out R$ 652,302 relating to dividends declared and provisioned as of December 31, 2009. In addition, the Company’s Board of Directors proposed interim dividends of R$ 774,429 corresponding to R$1.609579599 per share, on the results in the first half year of 2010.

 

 

 

 

( 24 )  GROSS SALES AND SERVICES INCOME

 

55


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

2010

2009

Revenue from Eletric Energy Operations

2nd quarter

6 months

2nd quarter

6 months

Consumer class

  Residential

1,314,494

2,705,408

1,248,234

2,455,140

  Industrial

1,049,963

2,048,454

1,031,083

1,915,063

  Commercial

 682,915

1,413,593

 665,975

1,303,218

  Rural

 102,033

 212,124

 109,492

 210,913

  Public Administration

 97,728

 189,006

 96,966

 177,802

  Public Lighting

 74,301

 149,803

 73,704

 141,119

  Public Services

 116,394

 231,747

 116,800

 219,639

  Billed

3,437,828

6,950,135

3,342,254

6,422,894

  Unbilled (Net)

(57,882)

(11,123)

 17,243

 44,475

  Emergency Charges - ECE/EAEE

-

 3

(7)

(7)

  Regulatory assets and liabilities (note 3)

 62,769

 97,725

 5,735

(55,148)

  Reclassification to Network Usage Charge - TUSD - Captive Consumers

 

 (1,426,149)

 (3,021,642)

 (1,415,708)

 (2,888,140)

Electricity sales to final consumers

2,016,566

4,015,098

1,949,517

3,524,074

   Furnas Centrais Elétricas S.A.

 86,630

 172,348

 88,146

 175,364

   Other Concessionaires and Licensees

 146,497

 270,240

 197,096

 366,243

   Current Electric Energy

 15,361

 16,991

 30,514

 53,028

Electricity sales to wholesaler

 248,488

 459,579

 315,756

 594,635

   Revenue due to Network Usage Charge - TUSD - Captive Consumers

 

1,426,149

3,021,642

1,415,708

2,888,140

   Revenue due to Network Usage Charge - TUSD - Free Consumer

 

261,702

 502,180

 196,336

 376,890

   Regulatory assets and liabilities (note 3) - Low Income Consumer´s Subsidy

 6,263

 7,215

 2,935

 20,045

   Other Revenue and Income

 50,382

 112,643

 46,522

 110,745

Other operating revenues

1,744,496

3,643,680

1,661,501

3,395,820

Total

4,009,550

8,118,357

3,926,774

7,514,529

 

Consolidated

2010

2009

Revenue from Eletric Energy Operations  - in GWh (*)

2nd quarter

6 months

2nd quarter

6 months

Consumer class

  Residential

3,187

6,471

3,002

6,139

  Industrial

3,910

7,691

3,627

7,095

  Commercial

1,892

3,912

1,772

3,658

  Rural

485

1,041

574

1,140

  Public Administration

285

550

273

526

  Public Lighting

359

715

352

699

  Public Services

431

854

414

830

  Billed

10,549

21,234

10,014

20,087

  Own Consumption

8

17

8

17

Electricity sales to final consumers

10,557

21,251

10,022

20,104

  Furnas Centrais Elétricas S.A.

754

1,501

754

1,501

   Other Concessionaires, Licensees and Authorized

1,626

3,166

1,789

3,368

   Current Electric Energy

625

904

819

1,032

Electricity sales to wholesaler

3,005

5,571

3,362

5,901

(*) Information not reviewed by the independent auditors

 

 

56


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

Consolidated

No. of Consumers (*)

June 30, 2010

June 30, 2009

Consumer class

  Residential

5,785,107

5,629,474

  Industrial

78,063

77,832

  Commercial

494,855

495,186

  Rural

236,846

237,048

  Public Administration

44,512

42,912

  Public Lighting

7,908

7,402

  Public Services

7,158

6,714

Total

6,654,449

6,496,568

(*) Information not reviewed by the independent auditors

 

 

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

57


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 25 )  COST OF ELECTRIC ENERGY

 

Consolidated

2010

2009

Electricity Purchased for Resale

2nd quarter

6 months

2nd quarter

6 months

Energy Purchased in Restricted Framework - ACR

   Itaipu Binacional

255,320

 516,081

 295,658

633,281

   Furnas Centrais Elétricas S.A.

 35,907

 72,904

 38,084

74,992

   CESP - Cia Energética de São Paulo

 43,437

 84,657

 43,052

86,511

   Cia de Geração de Energia Elétrica do Tietê

-

 7,975

-

 -

   Cia de Geração Témica Energia Elétrica - CGTEE

 4,069

-

 5,678

11,036

   Duke Energy Inter. Ger. Paranapanema S.A.

 1,785

 3,717

 1,744

3,521

   Tractebel Energia S.A.

282,799

 588,351

 289,418

519,477

   Petróleo Brasileiro S.A. Petrobrás

 48,457

 100,819

 47,310

94,379

   CHESF - Cia Hidro Elétrica do São Francisco

 29,046

 57,593

 29,448

57,989

   CEMIG  - Cia  Energética de Minas  Gerais

 31,757

 67,426

 63,562

104,899

   Termorio S.A.

 25,971

 46,316

 17,566

25,305

   Enguia Gen

 3,249

 5,412

 1,145

2,926

   EMAE - Empresa Metropolitana de Águas e Energia

154

 327

 69

 138

   Cia Estadual Energia Elétrica - CEEE

157

 315

207

 417

   Santa Cruz Geração de Energia S/A

 7,618

 15,023

 7,401

13,954

   AES Uruguaiana Ltda.

-

-

 6,571

11,742

   Câmara de Comercialização de Energia Elétrica - CCEE

 8,854

 16,734

 13,508

65,265

   Copel Geração e Transmissão S.A.

 16,395

 35,449

 17,303

34,828

   COOMEX Empresa Operadora do Mercado Energético Ltda.

-

-

 22,772

32,166

   PROINFA

 45,005

 94,585

 42,690

88,931

   Companhia Energética Santa Clara - CESC

 5,430

 9,537

 4,380

9,468

   Queiroz Galvão Energética S.A.

 11,718

 20,058

 9,321

20,997

Other

123,895

 235,889

 58,867

187,976

981,023

1,979,168

 1,015,754

2,080,198

Energy Purchased in the Free Market - ACL

358,845

 619,678

 373,873

663,719

 1,339,868

2,598,846

 1,389,627

2,743,917

Regulatory assets and liabilities (note 3)

 13,374

 211,005

 70,078

42,282

 Credit of PIS and COFINS

 (122,615)

(254,709)

(130,180)

 (251,056)

Subtotal

 1,230,627

2,555,142

 1,329,525

2,535,143

Electricity Network Usage Charge

 Basic Network Charges

225,793

 455,023

 217,536

436,712

 Transmission from Itaipu

 22,380

 42,807

 19,620

39,157

 Connection Charges

 12,508

 25,438

 12,326

24,239

 Charges of Use of the Distribution System

 6,927

 13,653

 6,018

12,329

 System Service Charges - ESS

 39,731

 78,776

 5,346

55,846

 Reserve Energy charges

 14,836

 16,517

-

3,219

322,175

 632,214

 260,846

 

571,502

Regulatory assets (note 3)

 6,715

 39,815

 79,365

30,480

 Credit of PIS and COFINS

(30,601)

(61,153)

(30,983)

 (55,784)

Subtotal

298,289

 610,876

 309,228

546,198

Total

 1,528,916

3,166,018

 1,638,753

3,081,341

 

 

58


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

2010

2009

Electricity Purchased for Resale - in GWh (*)

2nd quarter

6 months

2nd quarter

6 months

Energy Purchased in Restricted Framework - ACR

   Itaipu Binacional

 2,620

 5,353

 2,757

5,476

   Furnas Centrais Elétricas S.A.

404

 810

424

 849

   CESP - Cia Energética de São Paulo

435

 855

450

 920

   Cia de Geração Térmica Energia Elétrica - CGTEE

37

 75

 56

 112

   Duke Energy Inter. Ger. Paranapanema S.A.

20

 42

 20

42

   Tractebel Energia S.A.

 1,939

 4,068

 2,055

3,725

   Petróleo Brasileiro S.A. Petrobrás

407

 825

381

 795

   CHESF - Cia Hidro Elétrica do São Francisco

338

 653

341

 683

   CEMIG  - Cia  Energética de Minas  Gerais

248

 536

422

 762

   Termorio S.A.

101

 162

 50

 102

   Enguia Gen

15

 17

-

 -

   EMAE - Empresa Metropolitana de Águas e Energia

 1

 3

 1

2

   Cia Estadual Energia Elétrica - CEEE

 2

 4

 3

6

   Santa Cruz Geração de Energia S/A

62

 123

 60

 115

   AES Uruguaiana Ltda.

-

-

 35

70

   Câmara de Comercialização de Energia Elétrica - CCEE

485

 1,499

 1,341

2,331

   Copel Geração e Transmissão S.A.

161

 354

178

 364

   COOMEX Empresa Operadora do Mercado Energético Ltda.

-

-

157

 222

   PROINFA

264

 495

207

 388

   Companhia Energética Santa Clara - CESC

40

 70

 32

69

   Queiroz Galvão Energética S.A.

84

 143

 66

 149

Other

 1,130

 2,175

544

1,489

 8,793

 18,262

 9,580

18,671

Energy Purchased in the Free Market - ACL

 3,926

 7,369

 4,033

7,343

 12,719

 25,631

 13,613

26,014

(*) Information not reviewed by the independent auditors

 

In compliance with ANEEL Order no 4,722/2009, the subsidiaries reclassified amounts relating to the PROINFA quota, in relation to amounts billed to free consumers and own-power producers, from “Cost of the Electric Energy Service, Energy Purchased for Resale” to “Deductions from Operating Income, Consumer Charges – Other – PROINFA”, amounting to R$ 14,673 and R$ 8,819, respectively, for the second quarter of 2010 and the second quarter of 2009.

 

59


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 26 )  OPERATING EXPENSES

 

Parent Company

2010

2009

2nd quarter

6 months

2nd quarter

6 months

General and Administrative Expenses

 Personnel

 971

1,841

 601

 1,240

 Materials

24

39

4

 12

 Outside Services

3,778

6,580

1,896

 3,709

 Leases and Rentals

25

47

30

 69

 Depreciation and Amortization

36

66

30

 59

 Publicity and Advertising

 130

 501

58

 93

 Legal, Judicial and Indemnities

15

 361

34

 405

 Other

1,247

1,587

1,418

 2,296

Total

6,226

11,022

4,071

 7,883

Other Operating Expenses

 Loss  on the write-off of noncurrent assets

-  

 -

1,096

 1,096

Total

 -

 -

1,096

 1,096

 Intangible of concession amortization

36,878

72,240

37,187

 74,374

Total

43,104

83,262

42,354

 83,353

 

60


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

2010

2009

2nd quarter

6 months

2nd quarter

6 months

Sales Expenses

  Personnel

20,603 

38,274 

18,284 

34,535 

  Materials

955 

1,585 

 

2,246 

 

2,773 

  Outside Services

21,100 

38,320 

17,572 

34,328 

  Allowance for Doubtful Accounts

18,308 

30,079 

 

11,921 

8,812 

  Depreciation and Amortization

2,230 

4,417 

2,753 

5,520 

  Collection Tariffs and Services

11,731 

23,040 

12,969 

24,447 

  Other

5,021 

8,143 

2,370 

5,392 

 Total

79,948 

143,858 

68,115 

115,807 

General and Administrative Expenses

 Personnel

39,380

80,883

40,067

71,967

 Materials

2,134

4,844

1,849

3,299

 Outside Services

40,970

85,319

32,655

72,586

 Leases and Rentals

2,751

4,136

1,320

2,395

 Depreciation and Amortization

5,533

11,138

5,939

11,953

 Publicity and Advertising

1,767

2,717

643

1,163

 Legal, Judicial and Indemnities

(29,635)

(18,448)

2,049

8,821

 Donations, Contributions and Subsidies

1,489 

2,573 

1,223 

2,411 

 Other

5,194

14,762

4,153

13,243

Total

69,583

187,924

89,898

187,838

Other Operating Expenses

  Inspection Fee

6,278 

12,081 

5,562 

11,680 

 Loss  on the write-off of noncurrent assets

2,513

3,944

6,799

11,288

Free Energy adjustment (note 3 a.1) 2,527 
  Other

299 

387 

2,294 

2,652 

Total

9,090

18,939

14,655

25,620

 Intangible of concession amortization

46,203

90,891

46,724

93,449

Total

204,824

441,612

219,392

422,714

 

The increase in Legal, Judicial and Indemnities refers mainly to the reversal of part of the provision relating to the contingency for PIS and COFINS as described in Note 21.

61


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

( 27 )  FINANCIAL INCOME AND EXPENSES

 

Parent Company

2010

2009

2nd quarter

6 months

2nd quarter

6 months

Financial Income

Income from Financial Investments

 8,464

18,325

 5,405

 9,876

Arrears of  interest and fines

-

22

-

-

Restatement of tax credits

186

355

936

 1,996

Restatement of Escrow Deposits

206

393

-

-

PIS and COFINS of Interest on Shareholders' Equity

(9,117)

 (9,117)

(9,447)

(9,447)

Other

 6,963

9,348

 2,714

 5,413

Subtotal

 6,702

19,326

 (392)

 7,838

Interest on shareholder´s equity

98,669

98,669

102,134

102,134

Total

105,371

117,995

101,742

109,972

Financial Expense

Debt Charges

 (10,745)

 (20,588)

(11,430)

 (25,422)

Monetary and Exchange Variations

548

395

 (230)

 (314)

Other

(2,399)

 (3,557)

(2,277)

(4,040)

Subtotal

 (12,596)

 (23,750)

(13,937)

 (29,776)

Total

 (12,596)

 (23,750)

(13,937)

 (29,776)

Net financial income (expense)

92,775

94,245

 87,805

80,196

 

 

62


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Consolidated

2010

2009

2nd quarter

6 months

2nd quarter

6 months

Financial Income

Income from Financial Investments

34,631

64,513

17,863

40,712

Arrears of  interest and fines

32,921

65,844

34,861

64,925

Restatement of tax credits

82

 1,269

1,179

 2,446

Restatement of Escrow Deposits

10,558

19,878

11,493

24,419

Monetary and Exchange Variations

17,951

27,657

 (4,132)

19,114

Interest - CVA and Parcel "A" (Note 3)

1,536

24

11,832

29,191

Discount on purchase of ICMS credit

1,566

 3,569

1,738

 2,766

PIS and COFINS of Interest on Shareholders' Equity

 (9,117)

(9,117)

 (9,447)

(9,447)

Other

17,149

32,536

8,466

19,002

Subtotal

107,277

206,173

73,853

193,128

Interest on shareholder´s equity

-  

-

 -

-

Total

107,277

206,173

73,853

193,128

Financial Expense

Debt Charges

 (150,759)

 (276,536)

(128,621)

 (272,082)

Monetary and Exchange Variations

 (12,669)

 (43,777)

 (13,840)

 (43,428)

Interest - CVA and Parcel "A" (Note 3)

 (3,627)

(3,627)

 -

-

Other

 (14,210)

 (32,216)

 (24,818)

 (34,004)

Subtotal

 (181,265)

 (356,156)

(167,279)

 (349,514)

Interest on shareholder´s equity

-  

-

(409)

 (409)

Total

 (181,265)

 (356,156)

(167,688)

 (349,923)

Net financial income (expense)

 (73,988)

 (149,983)

 (93,835)

 (156,795)

 

( 28 )  FINANCIAL INSTRUMENTS AND OPERATING RISKS

a) Classification of the financial instruments

The financial instruments are classified as:

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

           i.   Loans and receivables

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

 

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

 

          ii.   Calculated at fair value through profit or loss

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

63


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

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

 

         iii.   Held-to-maturity investments

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

 

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

 

 

        iv.   Available for sale

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

 

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

 

 

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

 

           i.   Calculated at fair value through profit or loss

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

 

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

 

          ii.   Not calculated at fair value through profit or loss

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

 

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

 

b) Risk Considerations:

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

 

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

64


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

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

Interest Rate Risk: This risk derives from the possibility of the Company and its subsidiaries incurring losses due to fluctuations in interest rates that increase financial expenses on loans, financing and debentures. The subsidiaries have also tried to increase the portion of pre-indexed loans or loans tied to indexes with lower rates and little fluctuation in the short and long term.

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

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

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

 

Management of Risks on Financial instruments

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

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

 

c) Valuation of Financial Instruments

65


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

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

 

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

 

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

 

In addition to the assets and financial liabilities calculated at fair value through profit or loss, the Company and its subsidiaries have other financial liabilities not calculated at fair value. The market values of these financial instruments as of June 30 and March 31, 2010, applying the above methodology, presented for comparison purposes only, are shown below:

 

Parent Company

June 30, 2010

March 31, 2010

Accounting balance

Fair value

Accounting balance

Fair value

Debentures (note 16)

 (463,673)

 (469,168)

 (453,122)

 (458,997)

Total

 (463,673)

 (469,168)

 (453,122)

 (458,997)

Consolidated

June 30, 2010

March 31, 2010

Accounting balance

Fair value

Accounting balance

Fair value

Loans and financing (note 15)

(3,870,281)

(3,680,874)

(3,256,657)

(3,036,021)

Debentures (note 16)

(3,587,293)

(3,637,464)

(3,125,867)

(3,164,007)

Total

(7,457,574)

(7,318,338)

(6,382,524)

(6,200,028)

 

d) Derivatives

 

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

 

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

66


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

As of June 30, 2010, the Company and its subsidiaries had the following swap operations:

 

Market values (book values)

Company / strategy / counterparts

Asset

 

(Liability)

 

Market values, net

Values at cost, net

 

Gain (Loss) on marking to market

 

Currency / index

 

Maturity range

 

Notional

 

Negotiation market

Derivatives for protection of debts designated at fair value

Exchange variation hedge

CPFL Paulista

 ABN

8,880

-

8,879

 16,899

(8,020)

 yen

 Jan 2012

376,983

 Over the counter

Subtotal

8,880

-

8,879

 16,899

(8,020)

Derivatives for protection of debts  not designated at fair value

Exchange variation hedge

CPFL Paulista

 Itau BBA

 -

(71)

 (71)

(22)

 (49)

 dollar

 Oct 2010

30,121

 Over the counter

CPFL Geração

HSBC

 -

(1,107)

 (1,107)

(908)

 (199)

 dollar

Jul 2010 to Sep 2010

65,237

 Over the counter

Hedge interest rate variation (1)

CPFL Energia

 Citibank

97

(701)

 (604)

 96

 (700)

CDI + spread

Sep 2010 to Sep 2014

450,000

 Over the counter

RGE

 Santander

 388

-

388

 144

244

 CDI

 Jul 2010 to Dec 2013

280,000

 Over the counter

 Citibank

46

-

46

 9

37

 CDI

 Dec 2010 to Dec 2013

100,000

 Over the counter

Hedge interest rate variation (2)

CPFL Piratininga

HSBC

 -

(128)

 (128)

 25

 (153)

 TJLP

 Jan 2013

25,453

 Over the counter

Santander

 -

(151)

 (151)

 24

 (175)

 TJLP

 Jan 2013

25,453

 Over the counter

CPFL Geração

 HSBC

 -

(257)

 (257)

 43

 (300)

 TJLP

 Dec 2012

50,377

 Over the counter

Subtotal

 531

(2,415)

 (1,884)

(589)

(1,295)

Total

9,411

(2,415)

6,995

 16,310

(9,315)

Current

 404

(1,281)

Noncurrent

9,007

(1,134)

Total

9,411

(2,415)

* For further details of terms and informationa bout debts and debentures, see Notes 15 and 16

(1) The interest rate hedge swaps have half-yearly validity, so the notional value reduces in accordance with amortization of the debt.

(2) The interest rate hedge swaps have monthly validity, so the notional value reduces in accordance with amortization of the debt.

 

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

 

The Company and its subsidiaries have recorded gains and losses on their derivatives. However, as these derivatives are used as a hedge, these gains and losses minimized the impact of variations in exchange and interest rates on the protected indebtedness. For the periods ended in June 30, 2010 and 2009, the derivatives resulted in the following impacts on the consolidated result:

 

Gain (loss)

 

2010

 

2009

Company

Hedged risk / Operation

Account

2nd quarter

6 months

2nd quarter

6 months

CPFL Energia

Interest rate variation

Financial expense - Swap transactions

 (14)

164

 24

(60)

CPFL Energia

Marking to market

Financial expense - Adjustment to fair value

20

 (231)

 (253)

 525

CPFL Paulista

Exchange variation

Financial expense - Swap transactions

 (17,752)

 (16,962)

(95,017)

(171,470)

CPFL Paulista

Marking to market

Financial expense - Adjustment to fair value

 (754)

 (69)

 12,469

 43,227

CPFL Piratininga

Exchange variation

Financial expense - Swap transactions

-

-

-

(218)

CPFL Piratininga

Interest rate variation

Financial expense - Swap transactions

49

49

-

 -

CPFL Piratininga

Marking to market

Financial expense - Adjustment to fair value

 (328)

 (328)

-

(126)

CPFL Geração

Exchange variation

Financial expense - Swap transactions

 (11,031)

(8,238)

(119,386)

(204,924)

CPFL Geração

Interest rate variation

Financial expense - Swap transactions

161

619

 (230)

 (1,207)

CPFL Geração

Marking to market

Financial expense - Adjustment to fair value

754

 1,586

215

9,580

RGE

Exchange variation

Financial expense - Adm other financial exp

-

-

(5,955)

(10,774)

RGE

Interest rate variation

Financial expense - Adm other financial exp

159

341

116

 133

RGE

Marking to market

Financial expense - Derivative adjustment to fair value

 (118)

 (12)

 (156)

 577

 (28,854)

 (23,081)

 

(208,173)

(334,737)

 

67


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

Other exchange exposure

 

It should be noted that the indirect subsidiary ENERCAN has no swaps, as an exchange hedge, in relation to the debt of R$ 150,949 (R$ 73,543 in proportion to the participation of the subsidiary CPFL Geração) to the BID and BNDES of the portion tied to the basket of currencies, since a percentage of its tariff adjustments covers the exchange variation in the tariff period. In spite of the existence of a natural hedge against this exposure, the effect of exchange variations on these debts generated a loss of R$ 1,850 (R$ 901 in proportion to the participation of CPFL Geração) in the second quarter of 2010 and a loss of R$ 32,913 (R$ 16,035 in proportion to the participation of CPFL Geração) in the same period of 2009

 

The subsidiary CPFL Paulista also has a total indebtedness in foreign currency of R$ 470,394.  As a hedge against exchange exposure, it contracted derivatives used as a hedge directly tied to the indebtedness of R$ 419,761. To minimize the exchange exposure, the subsidiary also contracted a non tied derivative of R$ 30,841 and also has sufficient assets indexed in dollars (fund tied to foreign currency loans – Note 11) to offset any exchange impact.

 

 

e) Sensitivity Analysis

 

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

 

 

Exchange variation

 

If the level of exchange exposure at June 30, 2010 were maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:

 

Consolidated

Instruments

Exposure

Risk

Exchange depreciation of
9.6%*

Exchange depreciation of 25%**

Exchange depreciation of  50%**

Financial asset instruments

22,945

 apprec. dollar

 2,203

5,736

 11,473

Financial liability instruments

 (191,174)

 apprec. dollar

(18,353)

 (47,793)

(95,587)

Derivatives - Plain Vanilla Swap

98,657

 apprec. dollar

 9,471

24,664

 49,329

 (69,572)

(6,679)

 (17,393)

(34,785)

Financial liability instruments

 (419,761)

 apprec. yen

(40,297)

 (104,940)

(209,881)

Derivatives - Plain Vanilla Swap

419,761

 apprec. yen

 40,297

104,940

 209,881

-

-

 -

-

 (69,572)

(6,679)

 (17,393)

(34,785)

* In accordance with exchange graphs contained in information provided by the BM&F

**In compliance with CVM Instruction 475/08

 

 

Variation in interest rates

 

Supposing that (i) the scenario of exposure of the financial instruments indexed to variable interest rates

68


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

as of June 30, 2010 were to be maintained, and (ii) the respective accumulated annual indexes as of that date were to remain stable (CDI of 8.75% p.a.; IGP-M of 5.17% p.a.; TJLP of 6.00% p.a.), the effects on the consolidated financial statements for the next 12 months would be a net financial expense of R$ 462,765. In the event of fluctuations in the indexes in accordance with the three scenarios described, the effect on the net financial expense would as follows:

 

Consolidated

Instruments

Exposure

Risk

Scenario I*

Raising index by 25%**

Raising index by 50%**

Financial asset instruments

 1,976,203

CDI variation

 61,657

43,230

 86,459

Financial liability instruments

(4,912,096)

CDI variation

 (153,258)

 (107,453)

(214,905)

Derivatives - Plain Vanilla Swap

 (614,566)

CDI variation

(19,174)

 (13,443)

(26,887)

(3,550,459)

 (110,775)

 (77,666)

(155,333)

Financial assets instruments

91,884

IGP-M variation

781

1,188

 2,375

Financial liability instruments

 (64,943)

IGP-M variation

 (552)

 (840)

(1,679)

26,941

229

348

696

Financial liability instruments

(2,661,362)

TJLP variation

 3,459

 (39,920)

(79,840)

Derivatives - Plain Vanilla Swap

103,144

TJLP variation

 (134)

1,548

 3,094

(2,558,218)

 3,325

 (38,372)

(76,746)

Total increase

(6,081,736)

 (107,221)

 (115,690)

(231,383)

* The CDI, IGP-M and TJLP indexes considered of 11.87%, 6.02% and 5.87%, respectively, were obtained from information available in the market

**In compliance with CVM Instruction 475/08

 

 

 

( 29 )  SUBSEQUENT EVENT

Loans and Financing


The Meeting of the Board of Directors held on July 28, 2010 approved that the distribution subsidiaries CPFL Paulista, CPFL Piratininga, RGE, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari and CPFL Santa Cruz take all measures necessary to obtain rural credit financing from Banco do Brasil of a total of up to R$ 500 million, with a term of up to 5 years and at a cost of 98.5% of the CDI plus structuring commission. The Company will be the guarantor for all these operations by providing sureties or aval guarantees. 

 

 

69


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

07.01 – COMMENTS ON PERFORMANCE IN THE QUARTER

 

Analysis of Results – CPFL Energia (parent company)

 

Net income was R$ 384,230 in the second quarter of 2010, an increase of 33.0% (R$ 95,262) compared to the same quarter of the previous year, due mainly to results of equity in subsidiaries, as shown below:

 

2nd quarter 2010

2nd quarter 2009

CPFL Paulista

 180,323

 102,343

CPFL Piratininga

 60,032

 73,900

RGE

 80,119

 33,796

CPFL Santa Cruz

6,936

4,809

CPFL Leste Paulista

4,630

3,271

CPFL Jaguari

3,197

1,183

CPFL Sul Paulista

4,444

3,288

CPFL Mococa

3,248

1,883

CPFL Geração

 70,917

 95,307

CPFL Brasil

 41,368

 54,411

CPFL Atende

(606)

(653)

CPFL Planalto

2,815

1,627

CPFL Serviços

 898

 (7,665)

CPFL Jaguariúna

(54)

(61)

CPFL Jaguari Geração

1,941

2,018

Total

 460,208

 369,457

 

70


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

12.01 – COMMENTS ON CONSOLIDATED PERFORMANCE IN THE QUARTER

 

 

Information

Consolidated

2nd
quarter 2010

2nd
quarter 2009

Variation

1st
Half 2010

1st
Half 2009

Variation

GROSS REVENUE

4,009,550

3,926,774

2.1%

8,118,357

7,514,529

8.0%

Electricity sales to final consumers (¹)

3,442,715

3,365,225

2.3%

7,036,739

6,412,214

9.7%

Electricity sales to wholesaler

248,488

315,756

-21.3%

 459,579

594,635

-22.7%

Other operating revenues (¹)

318,347

245,793

29.5%

 622,039

507,680

22.5%

DEDUCTION  FROM OPERATING REVENUE

 (1,369,541)

 (1,278,301)

7.1%

 (2,693,284)

 (2,480,088)

8.6%

NET OPERATING REVENUE

2,640,009

2,648,473

-0.3%

5,425,073

5,034,441

7.8%

ENERGY COST

 (1,528,916)

 (1,638,753)

-6.7%

 (3,166,018)

 (3,081,341)

2.7%

Electricity purchased for resale

 (1,230,627)

 (1,329,525)

-7.4%

 (2,555,142)

 (2,535,143)

0.8%

Electricity network usage charges

 (298,289)

 (309,228)

-3.5%

(610,876)

 (546,198)

11.8%

OPERATING COST/EXPENSE

 (436,401)

 (460,827)

-5.3%

(893,076)

 (887,529)

0.6%

Personnel

 (145,687)

 (144,102)

1.1%

(292,537)

 (268,299)

9.0%

Employee pension plan

21,800

(921)

-2467.0%

43,599

 (1,840)

-2469.5%

Material

 (19,219)

 (17,501)

9.8%

 (36,113)

 (31,864)

13.3%

Outsourced Services

 (109,020)

 (91,875)

18.7%

(206,612)

 (182,612)

13.1%

Depreciation and Amortization

 (96,618)

 (97,022)

-0.4%

(193,551)

 (193,316)

0.1%

Merged Goodwill Amortization

 (46,204)

 (46,725)

-1.1%

 (90,892)

 (93,449)

-2.7%

Other

 (41,453)

 (62,681)

-33.9%

(116,970)

 (116,149)

0.7%

INCOME FROM ELECTRIC UTILITY SERVICES

674,692

548,893

22.9%

1,365,979

1,065,571

28.2%

FINANCIAL INCOME (EXPENSE)

 (73,988)

 (93,835)

-21.2%

(149,983)

 (156,795)

-4.3%

 Income

107,277

73,853

45.3%

 206,173

193,128

6.8%

 Expense

 (181,265)

 (167,279)

8.4%

(356,156)

 (349,514)

1.9%

Interest on Shareholders' Equity

 -

(409)

0.0%

 -

(409)

0.0%

INCOME BEFORE TAX

600,704

455,058

32.0%

1,215,996

908,776

33.8%

Social Contribution

 (56,788)

 (42,885)

32.4%

(116,327)

 (88,060)

32.1%

Income Tax

 (157,263)

 (120,915)

30.1%

(320,398)

 (244,669)

31.0%

INCOME BEFORE  INTERESTS

386,653

291,258

32.8%

 779,271

576,047

35.3%

    Noncontrolling interest

 (2,423)

 (2,699)

-10.2%

 (4,842)

 (4,785)

1.2%

Reversal of Interest on Shareholders'  Equity

 -

 409

 -

 -

 409

 -

NET INCOME FOR THE PERIOD

384,230

288,968

33.0%

 774,429

571,671

35.5%

 

 

 

 

 

 

 

EBITDA

793,291

690,862

14.8%

1,601,981

1,349,391

18.7%

 

 

 

 

 

 

 

Net Income for the Period and  EBITDA  Reconciliation (2)

 

 

   NET INCOME FOR THE PERIOD

384,230

288,968

 774,429

571,671

 

  Employee Pension Plan

 (21,800)

 921

 (43,599)

1,840

 

  Depreciation and Amortization

142,822

143,747

 284,443

286,765

 

  Financial Income (Expense)

73,988

93,835

 149,983

156,795

 

  Social Contribution

56,788

42,885

 116,328

88,060

 

  Income Tax

157,263

120,915

 320,398

244,669

 

  Reversal of Interest on Net Equity

 -

(409)

 -

(409)

 

EBITDA

793,291

690,862

1,601,982

1,349,391

 

 

 

 

 

 

 

 

 (¹) The reclassification of revenue from the Network Usage Charge - TUSD - Captive Consumers was not taken into account in presentation of the Comments on Consolidated Performance (note 24)

 (²) Information not reviewed by the independent accountants

 

 

 

 

 

 

 

 

Gross Operating Revenue

The Gross Operating Revenue in the second quarter of 2010 was R$ 4,009,550, up 2.1% (R$ 82,776) on the same period of the previous year.        

The main factors that contributed to this change were:

71


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

·         An increase of R$ 20,449 in the electric energy supply billed, as a result of the increase of 5.3% in the amount of energy billed to final consumers and of 2.4% in the average tariffs charged, mainly due to the adjustment to the distributors' tariffs;

·         An increase of R$ 57,034 in the regulatory assets and liabilities, mainly due to the effects of recording the regulatory asset resulting from RGE’s tariff readjustment (Note 3.b.2) in 2010 and the amortization of the regulatory liability generated by repositioning of the distributors' tariff review in 2009, particularly that of CPFL Piratininga (Note 3.b.1);

·         A decrease of R$ 67,268 in the energy supplied, mainly due to the reduction of 10.6% in the quantity of energy supplied and a 12.0% decrease in the average tariff charged.

·         An increase of R$ 72.554 in Other Operating Revenue, particularly due to the increase of R$ 65,366 in income from the Tariff for the Use of the Distribution System – TUSD for free customers, due to the revival of industrial activity, the effects of the tariff adjustment and the migration of captive clients to the free market.

 

Ø  Quantity of Energy Sold

 

An increase of 5.3% was recorded in the quantity of energy billed to final consumers in the second quarter of 2010.

The residential, commercial and industrial classes, which account for 85.1% of the energy sold to end users in the quarter and have the highest average tariffs, registered growth of 6.2%, 6.8% and 7.8% respectively, compared with the same quarter of the previous year.

The categories residential and commercial classes benefit from the accumulated effect of the expansion of total payroll and credit availability in recent years and the reduced IPI incentive in effect up to January 31, 2010, which resulted in increased purchases of household electrical goods and a dynamic retail trade.  Additionally, higher temperatures than those of the previous year boosted consumption.

The amount sold to the industrial class shows that this category is overcoming the negative effects of the international crisis that affected the industry in our concession area until mid-2009. Resumption of industrial operations was fueled by a series of tax exemptions, which encouraged bringing forward scheduled production to reduce costs. Growth in the second quarter was less than in the first quarter, on account of the withdrawal of these tax incentives.

The quantity of energy supplied fell 10.6%, mainly in the sales to the CCEE as a result of the lower energy balances, and the decrease in CPFL Brasil’s sales to other concessionaires.

 

                                                                                                                        

Ø  Tariffs

 

In the second quarter of 2010, the energy supply tariffs applied fell by an average of 2.4%, mainly due to the impacts of the tariff adjustments of the distribution subsidiaries:

 

72


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

 

Deductions from Operating Revenue  

Deductions from Operating Income in the second quarter of 2010 amounted to R$ 1,369,541, an increase of 7.1% (R$ 91,240) in relation to the same quarter of 2009, mainly due to an increase of R$ 33,712 in taxes on revenue (PIS, COFINS and ICMS) and the increase of R$ 43,320 in CCC and CDE charges.

 

Cost of Electric energy

Cost of Electric Energy in the quarter totaled R$ 1,528,916, a decrease of 6.7% (R$ 109,837) in relation to the same period of the previous year: 

Ø  Electric energy purchased for Resale

 

The balance of electric energy purchased for resale was R$ 1,230,627, a decrease of 7.4% (R$ 98,898), mainly due to the 6.5% decrease in the amount of energy bought in the quarter and tariff adjustments.

 

Ø  Tariff for the Use of the Distribution System

 

The balance of tariff for the Use of the Distribution System was R$ 298,289, falling 3.5% (R$ 10,939) in the second quarter of 2010, basically due to the effects of deferral and amortization of regulatory assets and liabilities, particularly those relating to the activation of thermoelectric power plants in 2008 and energy supply risk, amortized in 2009.

 

Operating Costs and Expense

Operating costs and expenses in the quarter amounted to R$ 436,401, a decrease of 5.3% (R$ 24,426) compared to the same period of the previous year, mainly due to:

·         Private Pension Fund: recorded income of R$ 21,800 in the quarter and expense of R$ 921 in the second quarter of 2009, largely as a result of the nominal earnings expected on the plan assets, based on an Actuarial Report;

·         Increase of 18.7% (R$ 17,145) in Outsourced Services as a result of price increases; maintenance expenses relating to the electric system, increase on expenses related to hardware and software due to system changes and telephone services;

·         Reduction of 33.9% (R$ 21,228) in Other Expense, due to:

(i)   a decrease in Legal, Court and Indemnity expenses (R$ 31,684), explained mainly by CPFL Paulista having reversed R$39,502 from the provision in respect of the discussion involving PIS/COFINS (Note 21), which is offset by the reversal of R$4,850 in 2009 and by the increase in expenses in the period of R$ 2,993;

(ii)  an increase in the expense for Allowance for Doubtful Accounts of R$ 6,387 due to the combined effect of expenses posted in the quarter and the recovery of credits in 2009.

 

73


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

Financial Income (Expense)

The net Financial Income (Expense) in the second quarter of 2010 was an expense of R$ 73,988, compared with R$ 93,835 in the same period of 2009, a decrease of 21.2% (R$ 19,847):

 

Ø  The financial income increased R$ 33,424 (45.3%), mainly due to:

 

·         An increase of R$ 16,768 in earnings on short-term financial investments as a result of the higher balance of cash and cash equivalents in the second quarter of 2010;

·         A reduction in interest on CVA and Parcel “A” (R$ 10,296) due to liquidation of the assets balances;

·         An increase in monetary and exchange restatement (R$ 22,083), largely due to the effect of R$ 7,994 in respect of restatement of the fund tied to CPFL Paulista’s loan in foreign currency and the increase of R$ 10,209 relating to restatement of the regulatory assets generated in RGE’s 2010 tariff adjustment.

 

Ø  The financial expense increased R$ 13,986 (8.4%) mainly due to:

·         An increase of R$ 22,138 in interest on debt charges mainly due to the increase in indebtedness as a result of the new investments by CPFL Geração;

·         A reduction of R$ 13,579 in Other Financial Expense, mainly as a result of RGE recording the fine in respect of the DEC and FEC indicators in the second quarter of 2009.

 

Social Contribution and Income Tax

Taxes on income in the second quarter of 2010 totaled R$ 214,051, an increase of 30.7% (R$ 50,251) in relation to the same quarter of 2009, mainly as a result of the 32.0% increase in pre-tax income.

 

 

Net income and EBITDA

As a result of the above factors, the net income for the quarter was R$ 384,230, 33.0% (R$ 95,262) higher than in the same period of 2009.

The adjusted EBITDA (net income for the quarter, eliminating the effects of the private pension plan, depreciation, amortization, financial income (expense), equity accounting, social contribution and income tax) for the second quarter of 2010 was R$ 793,291, 14.8% (R$ 102,429) higher than the EBITDA for the same period of 2009.

74


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

13.01 INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES

 

 

 

1 - ITEM

2 - NAME OF SUBSIDIARY/ASSOCIATED COMPANY

3 - CNPJ (Federal Tax ID)

4 - CLASSIFICATION

5 - EQUITY IN CAPITAL OF INVESTEE - %

 

6 - SHAREHOLDERS' EQUITY - %

7 - TYPE OF COMPANY

8 - NUMBER OF SHARES HELD IN CURRENT QUARTER

(in units)

9 - NUMBER OF SHARES HELD IN PREVIOUS QUARTER

(in units)

 

01

COMPANHIA  PAULISTA DE FORÇA E LUZ - CPFL

33.050.196/0001-88

PUBLIC SUBSIDIARY

100.00

36.48

COMMERCIAL, INDUSTRIAL AND OTHER

72,650,091

72,650,091

 

02

CPFL GERAÇÃO DE ENERGIA S/A

03.953.509/0001-47

PUBLIC SUBSIDIARY

100.00

27.72

COMMERCIAL, INDUSTRIAL AND OTHER

205,487,715,790

205,487,715,790

 

03

CPFL COMERCIALIZAÇÃO BRASIL S/A

04.973.790/0001-42

PRIVATE SUBSIDIARY

100.00

2.08

COMMERCIAL, INDUSTRIAL AND OTHER

2,998,565

2,998,565

 

04

COMPANHIA PIRATININGA DE FORÇA E LUZ

04.172.213/0001-51

PUBLIC SUBSIDIARY

100.00

10.47

COMMERCIAL, INDUSTRIAL AND OTHER

53,031,258,896

53,031,258,896

 

05

RIO GRANDE ENERGIA S/A

02.016.439/0001-38

PUBLIC SUBSIDIARY

100.00

30.51

COMMERCIAL, INDUSTRIAL AND OTHER

807,168,578

807,168,578

75


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

14.01 CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES

 

1 - ITEM

01

2 - ISSUE ORDER NUMBER

3

3 - REGISTRATION NUMBER WITH CVM

CVM/SRE/DEB/2007/042

4 - DATE OF REGISTRATION WITH CVM

10/25/2007

5 - ISSUED SERIES

UN

6 - TYPE

SIMPLE

7 - NATURE

PUBLIC

8 - ISSUE DATE

09/03/2007

9 - DUE DATE

09/03/2014

10 - TYPE OF DEBENTURE

NO PREFERENCE

11 - REMUNERATION CONDITIONS PREVAILING

CDI + 0.45%

12 - PREMIUM/DISCOUNT

 

13 - NOMINAL VALUE (Reais)

10,000.00

14 - ISSUED AMOUNT (Thousands of Reais)

450,000

15 - NUMBER OF DEBENTURES ISSUED (UNIT)

45,000

16 - OUTSTANDING DEBENTURES (UNIT)

45,000

17 - TREASURY DEBENTURES (UNIT)

0

18 - REDEEMED DEBENTURES (UNIT)

0

19 - CONVERTED DEBENTURES (UNIT)

0

20 - DEBENTURES TO BE PLACED (UNIT)

0

21 - DATE OF THE LAST RENEGOTIATION

 

22 - DATE OF NEXT EVENT

09/03/2012

 

76


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

19.01 – CAPITAL EXPENDITURE

 

(Not reviewed by independent auditors)

 

 

Our principal capital expenditure in recent years has been on maintaining and upgrading our distribution network and generation projects. The following table sets forth our capital expenditure for the six month-period ended June 30, 2010, as well as the three years ended December 31, 2009, 2008 and 2007.

 

In millions of R$

 

Year Ended December 31,

6 months
2010

2009

2008

2007

Distribution

  CPFL Paulista

223

 344

279

291

  CPFL Piratininga

107

 132

123

144

  RGE

 99

 215

226

221

  CPFL Santa Cruz

 14

 20

18

11

  Other

 11

 34

19

9

454

 745

665

676

Generation

262

 570

502

445

Commercialization

 38

 10

 8

9

Other

-

 2

 3

2

 

 

 

 

Total

754

1,327

 1,178

1,132

 

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

 

77


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

20.01 – OTHER IMPORTANT INFORMATION ON THE COMPANY

 

 

Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, as June 30, 2010

 

Shareholders

Common
Shares

Interest - %

VBC Energia S.A.

 122,948,720

 25.55

BB Carteira Livre I FIA

 149,233,727

 31.02

Bonaire Participações S.A.

 60,713,511

 12.62

BNDES Participações S.A.

 40,526,739

8.42

Board of directors

112

-

Executive officers

 5,624

-

Other shareholders

 107,708,697

 22.39

Total

 481,137,130

 100.00

 

Quantity and characteristic of securities held by the Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of June 30, 2010 and 2009:

June 30, 2010

June 30, 2009

Shareholders

Common
Shares

%

Common
Shares

%

Controlling shareholders

 333,314,879

 69.28

 333,314,881

69.45

Administrator

   Executive officers

 5,624

0.00

 31,152

0.01

   Board of directors

112

0.00

 3,110

0.00

Fiscal Council Members

-

-

-

 -

Other shareholders – Free float

 147,816,515

 30.72

 146,561,795

30.54

Total

 481,137,130

 100.00

 479,910,938

100.00

Outstanding shares

 147,816,515

 30.72

 146,561,795

30.54

 

 

78


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Shareholders of VBC Energia S/A holding more than 5% of the shares of the same type and class, up to the individuals level, as of June 30, 2010:

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

(a)

Átila Holdings S/A

1,815,927

49.58

70,530

50.00

1,886,457

49.59

(b)

Camargo Corrêa Energia S.A.

1,100,652

30.05

47,018

33.33

1,147,670

30.17

(c)

Camargo Corrêa S.A.

581,201

15.87

23,512

16.67

604,713

15.90

Other shareholders

164,951

4.50

                            -  

             -  

164,951

4.34

Total

3,662,731

100.00

141,060

100.00

3,803,791

100.00

(a)

Átila Holdings S/A

Shareholders

Common Shares

%

(d)

Construções e Comércio Camargo Corrêa S.A.

280,767,655

38.91

Camargo Corrêa S.A

440,877,607

61.09

Total

721,645,262

100.00

(b)

Camargo Corrêa Energia S.A.

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

(e)

Camargo Corrêa Investimento em Infra-Estrutura S.A.

518,860

100.00

518,854

100.00

1,037,714

100.00

Other shareholders

                            -  

-  

6

-  

6

-  

Total

518,860

100.00

518,860

100.00

1,037,720

100.00

(c)

Camargo Corrêa S.A.

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

(f)

Participações Morro Vermelho S.A.

48,941

99.99

93,099

100.00

142,040

100.00

Other shareholders

5

0.01

1

-  

6

-  

Total

48,946

100.00

93,100

100.00

142,046

100.00

(d)

Contruções e Comércio Camargo Corrêa S.A.

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

(c)

Camargo Corrêa S.A.

317,865

100.00

87,772

99.99

405,637

99.99

Other shareholders

5

-  

8

0.01

13

0.01

Total

317,870

100.00

87,780

100.00

405,650

100.00

(e)

Camargo Corrêa Investimento em Infra-Estrutura S.A.

Shareholders

Common Shares

%

(c)

Camargo Corrêa S.A.

685,162,736

100.00

Other shareholders

6

-  

Total

685,162,742

100.00

(f)

Participações Morro Vermelho S.A.

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

(g)

RCABON Empreendimentos e Participações S.A

                    750,000

33.33

                              -

-  

750,000

11.11

(h)

RCNON Empreendimentos e Participações S.A

                    750,000

33.33

                              -

-  

750,000

11.11

(i)

RCPODON Empreendimentos e Participações S.A

                    750,000

33.34

                              -

-  

750,000

11.12

(j )

RCABPN Empreendimentos e Participações S.A

                              -

-  

                 1,498,080

33.29

1,498,080

22.19

(k)

RCNPN Empreendimentos e Participações S.A

                              -

-  

                 1,498,080

33.29

1,498,080

22.19

(l)

RCPODPN Empreendimentos e Participações S.A

                              -

-  

                 1,498,080

33.29

1,498,080

22.19

(m)

RRRPN Empreendimentos e Participações S.A

                              -

-  

                       5,760

0.13

5,760

0.09

Other shareholders

0

-  

                              -

-  

0

-  

Total

2,250,000

100.00

4,500,000

100.00

6,750,000

100.00

 

79


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

(g)

RCABON Empreendimentos e Participações S.A

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

Rosana Camargo Arruda Botelho

749,850

 100.00

-

 -

749,850

99.98

Other shareholders

-

 -

150

 100

150

0.02

Total

749,850

 100.00

150

 100.00

750,000

 100.00

(h)

RCNON Empreendimentos e Participações S.A

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

Renata de Camargo Nascimento

749,850

 100

-

 -

749,850

99.98

Other shareholders

-

 -

150

 100

150

0.02

Total

749,850

 100

150

 100

750,000

 100.00

(i)

RCPODON Empreendimentos e Participações S.A

Shareholders

Common Shares

%

Preferred shares

%

TOTAL

%

Regina de Camargo Pires Oliveira Dias

749,850

 100.00

-

 -

749,850

99.98

Other shareholders

-

 -

150

 100

150

0.02

Total

749,850

 100.00

150

 100.00

750,000

 100.00

( j )

RCABPN Empreendimentos e Participações S.A

Shareholders

Common Shares

%

Rosana Camargo Arruda Botelho

1,499,890

99.99

Other shareholders

110

0.01

Total

1,500,000

 100.00

(k)

RCNPN Empreendimentos e Participações S.A

Shareholders

 Common Shares

 %

Renata de Camargo Nascimento

 1,499,890

99.99

Other shareholders

110

0.01

Total

 1,500,000

 100

(l)

RCPODPN Empreendimentos e Participações S.A

Shareholders

Common Shares

%

Regina de Camargo Pires Oliveira Dias

1,499,850

99.99

Other shareholders

150

0.01

Total

1,500,000

 100.00

(m)

RRRPN Empreendimentos e Participações S.A

Shareholders

Common Shares

%

Rosana Camargo Arruda Botelho

1,980

33.33

Renata de Camargo Nascimento

1,980

33.33

Regina de Camargo Pires Oliveira Dias

1,980

33.34

Total

5,940

 100.00

Shareholder’s composition of Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I holding more than 5% of the shares of the same type and class, up to the individuals level, as of June 30, 2010.

Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I

Shareholders

Cotas

%

Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI

130,163,542

100.00

Total

130,163,542

100.00

 

80


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Shareholders of Bonaire Participações S.A. holding more than 5% of the shares of the same type and class, up to the individual level, as of June 30, 2010

Shareholders

Common Shares

%

(a)

Energia São Paulo Fundo de Investimento em Participações

66,728,872

100.00

Other shareholders

6

 -

Total

66,728,878

100.00

(a)

Energia São Paulo Fundo de Investimento em Participações

Shareholders

Cotas

%

(b)

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

353,528,507

44.39

Fundação Petrobrás de Seguridade Social - Petros

181,405,069

22.78

Fundação Sabesp de Seguridade Social – Sabesprev

4,823,881

0.61

Fundação Sistel de Seguridade Social

256,722,311

32.22

Total

796,479,768

100.00

(b)

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

Shareholders

Common Shares

%

Fundação CESP

353,528,507

100.00

Total

353,528,507

100.00

Shareholders of BNDES Participações S.A. holding more than 5% of the shares of the same type and class, up to the individuals level, as of June 30, 2010

Shareholders

Common Shares

%

Banco Nacional de Desenv. Econômico e Social  ( * )

1

100.00

Total

1

100.00

( * )

State agency – Brazilian Federal

 The quantity of shares are expressed in units.

 

Commitment to arbitrage

 

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

 

81


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

Social Report / Six-month period ended in June 2010 and 2009 (*)

Company: CPFL ENERGIA S.A.

1 - Basis for Calculation

6 month-period ended June 2010 Value (R$ thousand)

6 month-period ended June 2009 Value (R$ thousand)

Net Revenues (NR)

5,425,073

5,034,441

Operating Result (OR)

1,215,996

908,776

Gross Payroll (GP)

258,418

241,752

2 - Internal Social Indicators

Value (000)

% of GP

% of NR

Value (000)

% of GP

% of NR

Food

19,799

7.66%

0.36%

18,870

7.81%

0.37%

Mandatory payroll taxes

69,810

27.01%

1.29%

61,975

25.64%

1.23%

Private pension plan

12,399

4.80%

0.23%

12,132

5.02%

0.24%

Health

14,535

5.62%

0.27%

13,310

5.51%

0.26%

Occupational safety and health

1,006

0.39%

0.02%

917

0.38%

0.02%

Education

893

0.35%

0.02%

930

0.38%

0.02%

Culture

0

0.00%

0.00%

0

0.00%

0.00%

Trainning and professional development

4,465

1.73%

0.08%

1,648

0.68%

0.03%

Day-care / allowance

544

0.21%

0.01%

548

0.23%

0.01%

Profit / income sharing

20,532

7.95%

0.38%

21,560

8.92%

0.43%

Others

2,964

1.15%

0.05%

1,940

0.80%

0.04%

Total - internal social indicators

146,948

56.86%

2.71%

133,830

55.36%

2.66%

3 - External Social Indicators

Value (000)

% of OR

% of NR

Value (000)

% of OR

% of NR

Education

420

0.03%

0.01%

1,313

0.14%

0.03%

Culture

4,408

0.36%

0.08%

2,039

0.22%

0.04%

Health and sanitation

801

0.07%

0.01%

282

0.03%

0.01%

Sport

0

0.00%

0.00%

115

0.01%

0.00%

War on hunger and malnutrition

0

0.00%

0.00%

0

0.00%

0.00%

Others

1,084

0.09%

0.02%

482

0.05%

0.01%

Total contributions to society

6,713

0.55%

0.12%

4,231

0.47%

0.08%

Taxes (excluding payroll taxes)

2,740,622

225.38%

50.52%

2,423,759

266.71%

48.14%

Total - external social indicators

2,747,335

225.93%

50.64%

2,427,990

267.17%

48.23%

4 - Environmental Indicators

Value (000)

% of OR

% of NR

Value (000)

% of OR

% of NR

Investments relalated to company production / operation

52,923

4.35%

0.98%

42,168

4.64%

0.84%

Investments in external programs and/or projects

34,787

2.86%

0.64%

26,002

2.86%

0.52%

Total environmental investments

87,710

7.21%

1.62%

68,171

7.50%

1.35%

Regarding the establishment of "annual targets" to minimize residues, the consumption in production / operation and increase efficiency in the use of natural resources, the company:

(  ) do not have targets    (  ) fulfill from 51 to 75%
(  ) fulfill from 0 to 50%   (X) fulfill from 76 to 100%

(  ) do not have targets    (  ) fulfill from 51 to 75%
(  ) fulfill from 0 to 50%   (X) fulfill from 76 to 100%

5 - Staff Indicators

1st half 2010

1st half 2009

Nº of employees at the end of period

7,515

7,240

Nº of employees hired during the period

658

416

Nº of outsourced employees

NA

7,203

Nº of interns

230

214

Nº of employees above 45 years age

2,081

2,007

Nº of women working at the company

1,577

1,315

% of management position occupied by women

9.58%

9.54%

Nº of Afro-Brazilian employees working at the company

781

701

% of management position occupied by Afro-Brazilian employees

1.30%

1.69%

Nº of employees with disabilities

296

296

6 - Relevant information regarding the exercise of corporate citizenship

1st half 2010

1st half 2009

Ratio of the highest to the lowest compensation at company

74.49

74.85

Total number of work-related accidents

9

8

Social and environmental projects developed by the company were decided upon by:

(  ) directors

(X) directors
and managers

(  ) all
employees

(  ) directors

(X) directors
and managers

(  ) all
employees

Health and safety standards at the workplace were decided upon by:

(  ) directors
and managers

(  ) all
employees

(X) all + Cipa

(  ) directors
and managers

(  ) all
employees

(X) all + Cipa

Regarding the liberty to join a union, the right to a collective negotiation and the internal representation of the employees, the company:

(  ) does not
get involved

(  ) follows the
OIT rules

(X) motivates
and follows OIT

(  ) does not
get involved

(  ) follows the
OIT rules

(X) motivates
and follows OIT

The private pension plan contemplates:

(  ) directors

(  ) directors
and managers

(X) all
employees

(  ) directors

(  ) directors
and managers

(X) all
employees

The profit / income sharing contemplates:

(  ) directors

(  ) directors
and managers

(X) all
employees

(  ) directors

(  ) directors
and managers

(X) all
employees

In the selection of suppliers, the same ethical standards and social / environmental responsibilities adopted by the company:

(  ) are not
considered

(X) are
suggested

( ) are
required

(  ) are not
considered

(X) are
suggested

( ) are
required

Regarding the participation of employees in voluntary work programs, the company:

(  ) does not
get involved

(  ) supports

(X) organizes
and motivates

(  ) does not
get involved

(  ) supports

(X) organizes
and motivates

Total number of customer complaints and criticisms:

in the company

790,497

in Procon

433

in the Courts
873

in the company
347,965

in Procon
747

in the Courts
906

% of complaints and criticisms attended to or resolved:

in the company
100%

in Procon
100%

in the Courts
53.21%

in the company
100%

in Procon
100%

in the Courts
54.54%

Total value-added to distribute (R$ 000):

Six-month-period 2010:

4,219,322

Six-month-period 2009:

3,713,767

Value-Added Distribution (VAD):

 66% government

 6% employees
 18% shareholders

 10% third parties  
  % retained

 68% government

 7% employees                                  
 15% shareholders

 10% third parties  
 % retained

7 - Other Information

 

 

 

 

 

 

In the financial items were utilized the percentage of stock paticipation. For the other information, as number of employees and legal lawsuits, the informations were available in full numbers.

Responsible: Antônio Carlos Bassalo, phone: 55-19-3756-8018, bassalo@cpfl.com.br

(*) Information not reviewed by the independent auditors

 

82


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

  

CPFL Energia S.A.

Added Value Statements

For the periods ended June 30, 2010 and 2009

( in thousands of Brazilian Reais )

Parent Company

Consolidated

2010

2009

2010

2009

2nd quarter

1st half

2nd quarter

1st half

2nd quarter

1st half

2nd quarter

1st half

1 -

Revenues

2

2

83

112

4,557,671

8,971,588

4,193,329

7,990,415

1.1  - Operating revenues

2

2

-

-

4,009,550

8,118,357

3,926,774

7,514,529

1.2 - Revenues related to the construction of own assets

-

-

83

112

566,429

885,839

278,512

484,831

1.3 - Allowance for doubtful accounts

-

-

-

-

(18,308)

(30,081)

(11,921)

(8,812)

1.4 - Provision for losses on the realization of regulatory assets

-

-

-

-

-

(2,527)

(36)

(133)

2-

 ( - ) Inputs

(5,187)

(9,060)

(4,588)

(7,722)

(2,383,780)

(4,668,288)

(2,232,881)

(4,180,714)

2.1 - Electricity Purchased for Resale

-

-

-

-

(1,698,061)

(3,509,854)

(1,809,531)

(3,404,044)

2.2 - Material

(24)

(39)

(4)

(12)

(371,046)

(537,799)

(140,278)

(236,045)

2.3 - Outsourced Services

(3,778)

(6,580)

(1,981)

(3,822)

(262,308)

(485,925)

(207,680)

(390,562)

2.4 - Other

(1,385)

(2,441)

(2,603)

(3,888)

(51,217)

(132,508)

(74,286)

(147,770)

2.5 - Cost of Service Rendered

-

-

-

-

(1,148)

(2,202)

(1,106)

(2,293)

3-

Gross Added Value (1 + 2)

(5,185)

(9,058)

(4,505)

(7,610)

2,173,891

4,303,300

1,960,448

3,809,701

4-

Retentions

(36,914)

(72,306)

(37,216)

(74,433)

(149,569)

(297,776)

(149,777)

(298,572)

4.1 - Depreciation and Amortization

(36)

(66)

(29)

(59)

(103,365)

(206,885)

(103,053)

(205,123)

4.2 - Amortization of intangible assets

(36,878)

(72,240)

(37,187)

(74,374)

(46,204)

(90,891)

(46,724)

(93,449)

5-

Net Added Value Generated (3 + 4)

(42,099)

(81,364)

(41,721)

(82,043)

2,024,322

4,005,524

1,810,671

3,511,129

6-

Added Value Received in Transfer

476,027

917,406

378,512

717,886

115,835

213,815

82,436

202,637

6.1 - Financial Income

15,819

28,443

9,055

17,285

118,258

218,657

85,135

207,422

6.2 - Equity in Subsidiaries

460,208

888,963

369,457

700,601

-

-

-

-

6.3 - Non-Controlling Shareholder's Equity

-

-

-

-

(2,423)

(4,842)

(2,699)

(4,785)

7-

Added Value to be Distributed (5 + 6)

433,928

836,042

336,791

635,843

2,140,157

4,219,339

1,893,107

3,713,766

8-

Distribution of Added Value

8.1 - Personnel and Charges

834

1,566

404

951

120,453

237,734

141,673

262,961

8.1.1 - Direct Remuneration

770

1,453

389

852

95,082

184,756

90,619

177,047

8.1.2 - Benefits

33

52

12

28

17,807

38,372

44,336

70,695

8.1.3 - Government severance indemnity fund for employees - F.G.T.S.

31

61

3

71

7,564

14,606

6,718

15,219

8.2 - Taxes, Fees and Contributions

36,251

36,256

33,486

33,421

1,419,582

2,795,963

1,281,123

2,501,976

8.2.1 - Federal

36,245

36,250

33,486

33,421

747,461

1,437,891

629,359

1,233,608

8.2.2 - State

-

-

-

-

671,045

1,351,953

650,593

1,262,495

8.2.3 - Municipal

6

6

-

-

1,076

6,119

1,171

5,873

8.3 - Interest and Rentals

12,613

23,791

13,933

29,800

215,892

411,213

181,343

377,158

8.3.1 - Interest

12,588

23,744

13,903

29,731

211,989

404,340

177,832

370,566

8.3.2 - Rental

25

47

30

69

3,903

6,873

3,511

6,592

8.3.3 - Other

-

-

-

-

-

-

-

-

8.4 - Interest on capital

384,230

774,429

288,968

571,671

384,230

774,429

288,968

571,671

8.4.1 - Interest on net equity

-

-

-

-

-

-

-

-

8.4.2 - Dividends

384,230

774,429

288,968

571,671

384,230

774,429

288,968

571,671

8.4.3 - Retained profits

-

-

-

-

-

-

-

-

433,928

836,042

336,791

635,843

2,140,157

4,219,339

1,893,107

3,713,766

 

83


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

21.01 – REPORT ON SPECIAL REVIEW-UNQUALIFIED

 

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

 

 

Independent auditors’ review report

 

To

The Shareholders and Management of

CPFL Energia S.A.

São Paulo - SP

 

 

1.     We have reviewed the accompanying quarterly financial information of CPFL Energia S.A. (“The Company”) and consolidated quarterly financial information of the Company and its’ subsidiaries as of June 30, 2010. The financial information is comprised of the balance sheets, the statements of income, shareholders’ equity, cash flows and added value, and the footnotes and performance report, which were prepared under the responsibility of the Company’s Management

 

2.     The quarterly financial information of the jointly-owned indirect subsidiary Chapecoense Geração S.A. as of June 30, 2010 was reviewed by other independent auditors, who issued an unqualified special review report on July 19, 2010. CPFL Energia S.A. reports its indirect interest in Chapecoense Geração S.A. using the equity method of accounting and consolidates this investment using the proportional consolidation method. As of June 30, 2010, the balance of this investment is R$ 341,200 thousand, and the equity in income of this investment in the net income for this three-month period is a R$15 thousand loss. The quarterly financial information of this indirect investee included in the consolidated quarterly financial information presents proportional assets of R$ 1,275,443 thousand as of June 30, 2010. Our report, in relation to the amounts generated by this indirect investment is based exclusively on the report of the review conducted by the independent auditors of Chapecoense Geração S.A.

 

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

 

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

 

84


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

5.     The statements of income, cash flows and shareholders’ equity, for of the jointly-owned indirect BAESA – Energética Barra Grande the three-month period ended June 30, 2009, were reviewed by other independent auditors who issued an unqualified special review report thereon, dated July 21, 2009. Our report for that time does not refer to the amounts and values related to the indirect investment, it is based exclusively on the review report issued by the Independent Auditors of BAESA - Energetica Barra Grande S.A.

 

6.     The statements of income, cash flows and shareholders’ equity, of the jointly-owned indirect Campos Novos Energia S.A. for the three-month period ended June 30, 2009, were reviewed by other independent auditors who issued a qualified special review report thereon, dated July 21, 2009, due to the fact that the Company used depreciation taxes determined by Ordinance DNAEE 815/1994, for the good of concession, and not considering the limits of the concession. The administration concluded, based on communication received from the regulatory agent, that the adopted treatment should be maintained, using the depreciation taxes, determined by the referred Ordinance. Our report for that time does not refer to the amounts and the values related to the indirect investment, it is based exclusively on the review report issued by the Independent Auditors of Campos Novos Energia S.A.

 

7.     As mentioned in footnote n° 3 (c.6) to the quarterly financial information, as result of the 2009 tariff review established on the concession agreement, the Brazilian Electricity Agency - ANEEL ratified, on a temporary basis, the financial components of the power overcontracted of its direct subsidiaries Companhia Piratininga de Força e Luz and Companhia Paulista de Força e Luz. The possible effects resulting from this final review, if any, will be recorded in the Company’s equity and financial position in subsequent periods.

 

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

 

Campinas, July 29, 2010

 

 

 

KPMG Auditores Independentes

CRC 2SP014428/O-6

 

 

 

Jarib Brisola Duarte Fogaça

Contador CRC 1SP125991/O-0

 

 

 

 

85


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: COMPANHIA PAULISTA DE FORÇA E LUZ - CPFL

 

The subsidiary Companhia Paulista de Força e Luz - CPFL is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).

86


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL GERAÇÃO DE ENERGIA S.A.

 

 

The subsidiary CPFL Geração de Energia S.A. is a public company and its Comments on the performance in this quarter (the Company and Consolidated) are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).

87


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

01.01 - IDENTIFICATION

 

1 - CVM CODE

2 - COMPANY NAME

3 - CNPJ (Federal Tax ID)

01866-0

CPFL ENERGIA S.A.

02.429.144/0001-93

 

SUBSIDIARY / ASSOCIATED

COMPANY NAME

CPFL COMERCIALIZAÇÃO BRASIL S/A

 

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

 

1 – Code

2 – Description

3 - 04/01/2010 to 06/30/2010

4 - 01/01/2010 to 06/30/2010

5 - 04/01/2009 to 06/30/2009

6 - 01/01/2009 to 06/30/2009

3.01

Operating revenues

455,010

839,328

512,434

922,595

3.02

Deductions from operating revenues

(49,038)

(90,470)

(70,183)

(130,888)

3.02.01

ICMS

(7,668)

(14,207)

(24,021)

(47,897)

3.02.02

PIS

(7,308)

(13,466)

(8,133)

(14,598)

3.02.03

COFINS

(33,662)

(62,031)

(37,457)

(67,239)

3.02.04

ISS

(400)

(766)

(572)

(1,154)

3.03

Net operating revenues

405,972

748,858

442,251

791,707

3.04

Cost of sales and/or services

(334,916)

(578,380)

(357,569)

(639,201)

3.04.01

Electric energy purchased for resale

(328,006)

(566,949)

(351,107)

(626,023)

3.04.02

Electric energy network usage charges

-

(17)

(4)

422

3.04.03

Material

(29)

(77)

(184)

(386)

3.04.04

Outsourced services

(6,881)

(11,337)

(6,274)

(13,214)

3.05

Gross operating income

71,056

170,478

84,682

152,506

3.06

Operating expenses/income

(9,530)

(16,364)

(5,460)

(6,243)

3.06.01

Sales and Marketing

(9,166)

(15,732)

(6,608)

(12,439)

3.06.02

General and administrative

(790)

(976)

(291)

(1,043)

3.06.03

Financial

426

344

1,439

7,239

3.06.03.01

Financial income

5,396

10,253

2,582

6,940

3.06.03.02

Financial expenses

(4,970)

(9,909)

(1,143)

299

3.06.03.02.01

Financial expenses

(4,862)

(9,801)

(1,143)

299

3.06.03.02.02

Interest on shareholders' equity

(108)

(108)

-

-

 

88


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

3.06.04

Other operating income

-

-

-

-

3.06.05

Other operating expense

-

-

-

-

3.06.06

Equity in subsidiaries

-

-

-

-

3.07

Income from operations

61,526

154,114

79,222

146,263

3.08

Nonoperating income (expense)

-

-

-

-

3.08.01

Income

-

-

-

-

3.08.02

Expenses

-

-

-

-

3.09

Income before taxes on income and noncontrolling interest

61,526

154,114

79,222

146,263

3.10

Income tax and social contribution

(21,132)

(51,921)

(24,631)

(43,650)

3.10.01

Social contribution

(5,635)

(13,800)

(6,588)

(11,688)

3.10.02

Income tax

(15,497)

(38,121)

(18,043)

(31,962)

3.11

Deferred income tax and social contribution

866

1,174

(180)

(1,670)

3.11.01

Social contribution

229

311

(47)

(442)

3.11.02

Income tax

637

863

(133)

(1,228)

3.12

Statutory profit sharing/contributions

-

-

-

-

3.12.01

Profit sharing

-

-

-

-

3.12.02

Contributions

-

-

-

-

3.13

Reversal of interest on shareholders’ equity

108

108

-

-

3.15

Net income (loss) for  the period

41,368

103,475

54,411

100,943

 

SHARES OUTSTANDING EX-TREASURY STOCK (in units)

2,998,565

2,998,565

2,998,565

2,998,565

 

EARNINGS PER SHARE (Reais)

13.79593

34.50817

18.14568

33.66377

 

LOSS PER SHARE (Reais)

 

 

 

 

 

89


 

(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL COMERCIALIZAÇÃO BRASIL S.A.

 

Net Operating Revenue

 

Consolidated Net Operating Revenue for the second quarter of 2010 was R$ 405,972, a decrease of R$ 36,279 (8.2%) in relation to the same quarter of 2009. This decrease is basically explained by the decrease in the parent company’s revenue from energy sales, which fell R$ 34,742 impacted by the 110 GWh decrease in volume of energy sales and a 4.7% reduction in the average price.

 

 

 

Net Income and EBITDA

 

Net income of R$ 41,368 was recorded in the second quarter of 2010, a decrease of R$ 13,043 (24.0%), compared with the same quarter of 2009.

 

EBITDA (net income before Financial Income (Expense), income tax and social contribution, depreciation and amortization) for the second quarter of 2010 was R$ 41,368, 21.1% lower than the R$ 78,258 recorded in the same quarter of 2009 (information not reviewed by the Independent Auditors). 

90


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL PIRATININGA DE FORÇA E LUZ

 

The subsidiary CPFL Piratininga de Força e Luz is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).

 

91


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: RIO GRANDE ENERGIA S.A.

 

The subsidiary Rio Grande Energia S.A. is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).

92


(Free Translation of the original in Portuguese)

FEDERAL GOVERNMENT

BRAZILIAN SECURITIES COMMISSION (CVM)    

QUARTERLY INFORMATION – ITR                                                                           Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                    Date: June 30, 2010

 

 

SUMMARY

Group

Table

Description

Page

01

01

IDENTIFICATION

1

01

02

HEAD OFFICE

1

01

03

INVESTOR RELATIONS OFFICER (Company Mailing Address)

1

01

04

ITR REFERENCE

1

01

05

CAPITAL STOCK

2

01

06

COMPANY PROFILE

2

01

07

COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

2

01

08

CASH DIVIDENDS

2

01

09

SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR

3

01

10

INVESTOR RELATIONS OFFICER

3

02

01

BALANCE SHEET – ASSETS

4

02

02

BALANCE SHEET - LIABILITIES

5

03

01

INCOME STATEMENT

6

04

01

STATEMENTS OF CASH FLOW

8

05

01

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM APRIL 01, 2010 TO JUNE 30, 2010

9

05

02

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO JUNE 30, 2010

11

08

01

CONSOLIDATED BALANCE SHEET - ASSETS

13

08

02

CONSOLIDATED BALANCE SHEET - LIABILITIES

14

09

01

CONSOLIDATED INCOME STATEMENT

15

10

01

CONSOLIDATED STATEMENTS OF CASH FLOW

16

11

01

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM APRIL 01, 2010 TO JUNE 30, 2010

17

11

02

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO JUNE 30, 2010

18

06

01

NOTES TO THE INTERIM FINANCE STATEMENTS

19

07

01

COMMENTS ON PERFORMANCE IN THE QUARTER

70

12

01

COMMENTS ON CONSOLIDATED PERFORMANCE OF THE QUARTER

71

13

01

INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES

75

14

01

CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES

76

19

01

CAPITAL EXPENDITURES

77

20

01

OTHER IMPORTANT INFORMATION ON THE COMPANY

78

21

01

REPORT ON  SPECIAL REVIEW-UNQUALIFIED

84

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

86

 

 

COMPANHIA PAULISTA DE FORÇA E LUZ – CPFL

 

22

 01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

87

 

 

CPFL GERAÇÃO DE ENERGIA S.A.

 

22

01

INCOME STATEMENT OF SUBSIDIARIES

88

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

90

 

 

CPFL COMERCIALIZAÇÃO BRASIL S.A.

 

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

91

 

 

COMPANHIA PIRATININGA DE FORÇA E LUZ

 

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

92

 

 

RIO GRANDE ENERGIA S.A.

 

 

 

93


SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 11, 2010
 
CPFL ENERGIA S.A.
 
By:  
         /S/  WILSON P. FERREIRA JÚNIOR

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

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